Financial Performance - The company's revenue for the first half of 2022 was RMB 6,528.8 million, representing a 115.1% increase compared to RMB 3,035.4 million in the same period of 2021[7]. - Gross profit increased by 36.1% to RMB 825.2 million, up from RMB 606.5 million year-on-year[7]. - Net profit for the period was RMB 484.1 million, a 41.2% increase from RMB 342.9 million in the previous year[7]. - Total assets as of June 30, 2022, reached RMB 10,262.0 million, reflecting a 20.4% increase from RMB 8,525.3 million at the end of 2021[7]. - Revenue increased by approximately RMB 3,493.4 million or 115.1% year-on-year, primarily due to the full production of a new 1.8 million ton coking oven[43]. - Cost of sales increased by approximately RMB 3,274.8 million or 134.8%, in line with the revenue increase[43]. - Gross profit increased by approximately RMB 218.6 million or 36.0%, but the gross margin decreased from about 20.0% in 2021 to about 12.6% in 2022[43]. - Total comprehensive income for the period increased by approximately RMB 143.5 million or 41.9%[52]. Operational Developments - The company is actively expanding its LNG and hydrogen production and sales business to enhance its vertical integration model[4]. - The company is focusing on maximizing the value of coking by-products through its integrated business model[4]. - The company aims to expand its coal chemical industry by actively seeking projects with substantial profit margins and development potential, including joint ventures[27]. - The company completed a project to upgrade two 4.3-meter high coke ovens to advanced 7.65-meter high ovens, increasing capacity from 1.2 million tons to 1.8 million tons per year, with total investment of approximately RMB 3.2 billion[28]. - A joint venture was established with Xinyang Steel to produce and sell coke, with the first phase of the coke oven expected to commence operations in December 2022, and total investment nearing RMB 1.8 billion[29]. - The company invested approximately RMB 1.78 billion in a new wastewater treatment project, utilizing advanced Israeli reverse osmosis technology with a processing capacity of 180 cubic meters per hour[33]. Market Conditions - The demand for the company's products is primarily driven by the domestic steel and chemical industries, with coke being a key raw material for steel production[12]. - The geopolitical situation in Eastern Europe has led to increased global energy commodity prices, contributing to inflation and downward pressure on the economy[21]. - In the first half of 2022, the average selling price of coke increased by 44.8% to approximately RMB 3,034 per ton, while the average cost of coking coal rose by 93.4% to approximately RMB 2,094 per ton, resulting in a narrowing of the average price spread by about 7.2%[21]. Financial Position - As of June 30, 2022, the group had total bank borrowings of RMB 2,579.0 million, an increase of RMB 778.2 million compared to the end of 2021[69]. - The group's cash and cash equivalents at the end of the period were RMB 868.7 million, an increase of RMB 292.0 million from the beginning of the year[63]. - The debt-to-equity ratio increased to 0.55 times as of June 30, 2022, from 0.42 times at the end of 2021[83]. - The return on equity (annualized) decreased to 9.3% for the six months ended June 30, 2022, down from 15.9% in 2021, primarily due to reduced profits[87]. - The return on assets (annualized) fell to 5.2% from 6.8%, attributed to a significant increase in asset investment despite a slight profit increase[89]. - The company pledged assets with a total book value of approximately RMB 3,518.7 million as of June 30, 2022, compared to RMB 1,024.6 million at the end of 2021[82]. Corporate Governance - The company adheres to a robust corporate governance framework, continuously improving its internal control systems through internal and third-party audits[126]. - The company has complied with all provisions of the listing rules and corporate governance code as of June 30, 2022[128]. - The company has adopted the standard code for securities transactions by directors, confirming compliance by all directors and supervisors during the reporting period[129]. - The second board of directors was appointed on May 23, 2022, consisting of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[132]. - The third board of supervisors was also appointed on May 23, 2022, comprising six members, including two shareholder representatives, two employee supervisors, and two independent supervisors[135]. Employee and Social Responsibility - The total employee cost for the six months ended June 30, 2022, was approximately RMB 110.8 million, an increase of 29.9% compared to RMB 85.3 million in the same period last year[182]. - The company has a total of 2,710 employees as of June 30, 2022, including 11 senior management and 105 middle management personnel[182]. - The company is committed to providing comprehensive training programs for all employees, including long-term and short-term training in management and production[183]. - The company emphasizes a commitment to social responsibility and harmonious development, integrating economic and social benefits[126]. - The company plans to continue advancing technological progress in the industry while fulfilling its social responsibilities[126]. Dividend and Shareholder Information - The company declared a cash dividend of RMB 0.20 per share for the year-end 2021, totaling RMB 107.084 million, fully paid in July 2022[115]. - The company plans to distribute at least 25% of its annual profit as dividends, in accordance with relevant laws and regulations in China and Hong Kong[115]. - The company plans to distribute an interim dividend of RMB 0.05 per share for the six months ended June 30, 2022, with a total payout of approximately RMB 26.8 million[186]. - As of June 30, 2022, Mr. Rao Chaofei holds a 30.26% equity interest in the company through controlled entities, with 162,000,000 H shares[157]. - Major shareholders include Jinma Hong Kong and Jinma Coking, each holding 30.26% of the H shares[164].
金马能源(06885) - 2022 - 中期财报