Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 764.715 million, a decrease of 23% compared to RMB 992.642 million for the same period in 2021[7] - Gross profit for the same period was RMB 34.401 million, down 72.4% from RMB 124.581 million year-on-year[7] - Operating profit decreased significantly to RMB 3.615 million, compared to RMB 85.240 million in the previous year, reflecting a decline of 95.8%[7] - The company reported a loss attributable to equity shareholders of RMB 5.144 million, contrasting with a profit of RMB 64.394 million in the prior year[7] - Basic and diluted loss per share was RMB (0.01), compared to earnings of RMB 0.11 per share in the same period last year[7] - The company’s total comprehensive income for the six months ended June 30, 2022, was RMB (5,436,000), compared to RMB 64,327,000 in the same period of 2021[16] - For the six months ended June 30, 2022, the company reported a basic loss attributable to equity shareholders of RMB 5,144,000, compared to a profit of RMB 64,394,000 for the same period in 2021[51] - The company recorded a loss of approximately RMB 5,144,000, compared to a profit of approximately RMB 64,394,000 for the same period in 2021, representing a significant decline in performance[109] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 1,526.991 million, a slight decrease from RMB 1,558.066 million at the end of 2021[13] - Current liabilities amounted to RMB 1,121.761 million, compared to RMB 1,111.005 million at the end of 2021, indicating a slight increase[13] - The net asset value decreased to RMB 731.004 million from RMB 761.224 million at the end of 2021, reflecting a decline of 4%[13] - The company’s total equity as of June 30, 2022, was RMB 731,004,000, down from RMB 761,224,000 at the end of 2021[16] - The company’s total liabilities decreased from RMB 1,000,000,000 at the end of 2021 to RMB 900,000,000 as of June 30, 2022[16] - Trade receivables, net of impairment losses, were RMB 166,077,000 as of June 30, 2022, compared to RMB 171,843,000 as of December 31, 2021, reflecting a decrease of 3.9%[59] - Cash and cash equivalents as of June 30, 2022, totaled RMB 182,441,000, an increase from RMB 135,118,000 as of December 31, 2021, representing a growth of 35%[69] - Trade payables amounted to RMB 504,385,000 as of June 30, 2022, slightly up from RMB 501,267,000 as of December 31, 2021, indicating a 0.4% increase[73] Revenue Breakdown - Revenue from cold-rolled hard coils decreased to RMB 38,768 thousand in the six months ended June 30, 2022, down 18.3% from RMB 47,385 thousand in the same period of 2021[27] - Revenue from non-color coated hot-dip galvanized steel products was RMB 435,789 thousand, a decline of 30.0% compared to RMB 620,735 thousand in the previous year[27] - Revenue from color-coated hot-dip galvanized steel products decreased to RMB 290,158 thousand, down 10.6% from RMB 324,522 thousand in the prior year[27] - Revenue from external customers in China was RMB 672,667 thousand, down 27.5% from RMB 927,744 thousand in the same period of 2021[40] Operational Metrics - Total sales volume for cold-rolled and galvanized steel products was 112,484 tons, down 35,327 tons or 23.9% from 147,811 tons in the same period of 2021[96] - The gross profit for the six months ended June 30, 2022, was approximately RMB 34,401,000, with a gross margin of 4.5%, down from 12.6% in the same period of 2021[101] - The sales volume of non-color coated galvanized steel products decreased by 28,223 tons, while the sales volume of color coated galvanized steel products decreased by 5,463 tons compared to the same period in 2021[96] Cash Flow and Investments - Operating cash inflow for the six months ended June 30, 2022, was RMB 107,140,000, an increase of 57% from RMB 68,181,000 in the same period of 2021[19] - The company’s operating cash flow net amount for the six months ended June 30, 2022, was RMB 79,631,000, an increase of 39% from RMB 57,373,000 in the same period of 2021[19] - The company acquired property and machinery at a cost of RMB 32,183,000 for the six months ended June 30, 2022, an increase from RMB 19,798,000 in the same period of 2021[54] Employee and Operational Costs - Employee costs increased to RMB 27,177 thousand, up 9.0% from RMB 24,745 thousand in the previous year[44] - Depreciation and amortization expenses rose to RMB 24,641 thousand, compared to RMB 20,483 thousand in the same period of 2021, marking a 20.9% increase[45] - Selling and distribution expenses decreased from approximately RMB 29,858,000 in the previous year to about RMB 25,924,000 due to reduced transportation costs from lower sales volume[103] - Financial costs remained relatively stable at approximately RMB 11,510,000, compared to RMB 11,480,000 in the same period of 2021[105] Market and Strategic Outlook - The company continues to focus on the manufacturing and sales of cold-rolled hard coils and galvanized steel products, with ongoing investments in technology and market expansion[26] - The company plans to fully utilize new production lines in the second half of 2022, which are expected to improve production efficiency and reduce costs[94] - The company aims to adjust its sales strategy to secure more orders and enhance production capacity in response to the overall economic downturn[94] - The company continues to monitor the impact of COVID-19 and geopolitical tensions on its operations, indicating ongoing uncertainty in the business environment[89] - The company has implemented emergency measures to reassess pricing and supplier stability in response to market fluctuations, aiming to strengthen cash management[89] - The company noted potential impacts on sales volume and procurement costs for its products due to ongoing geopolitical tensions and pandemic-related measures[90] Shareholder Information - Major shareholders include Mr. Mei Zefeng with a 56.61% stake and Ms. Liu Ping with a 14.10% stake in the company as of June 30, 2022[143] - Jiangsu Changzhou Economic Development Management Committee holds a 9.73% stake, along with Changzhou Oriental New City Construction Co., Ltd. and Changzhou Oriental Water Investment Development Co., Ltd., each also holding 9.73%[143] - The company’s directors and senior management held a total of 343,220,000 shares, representing approximately 56.61% of the company’s equity[138] Governance and Compliance - The company maintained compliance with the corporate governance code as of June 30, 2022, ensuring shareholder and stakeholder interests are upheld[133] - The company's governance practices align with the standards set forth in the listing rules, ensuring transparency and accountability[137] - There were no significant acquisitions or disposals of subsidiaries and associates during the six months ended June 30, 2022[121] - No shares were repurchased or sold by the company or its subsidiaries during the six months ending June 30, 2022[134]
康利国际控股(06890) - 2022 - 中期财报