Financial Performance - The company reported revenue of RMB 349,490,000 for the six months ended June 30, 2022, representing a 70.7% increase compared to RMB 204,537,000 for the same period in 2021[8]. - The cost of sales increased to RMB 355,468,000, up from RMB 196,152,000, resulting in a gross loss of RMB 5,978,000 for the first half of 2022[8]. - Other income rose significantly to RMB 12,763,000, compared to RMB 3,036,000 in the previous year, indicating a 320.5% increase[8]. - The company incurred a loss before tax of RMB 14,523,000, compared to a loss of RMB 6,283,000 in the same period last year, reflecting a 131.5% increase in losses[8]. - The net loss for the period was RMB 12,984,000, which is a 140.3% increase from RMB 5,392,000 in the first half of 2021[8]. - Basic and diluted loss per share for the period was RMB 1.31, compared to RMB 0.65 for the same period in 2021[10]. - The total comprehensive loss for the period amounted to RMB 12,954,000, compared to RMB 5,691,000 in the previous year, marking a 127.5% increase[10]. - The company reported a foreign exchange gain of RMB 30,000 from the translation of overseas operations, contrasting with a loss of RMB 299,000 in the previous year[8]. Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 445,716,000, a decrease of 5.1% from RMB 469,811,000 as of December 31, 2021[12]. - Non-current assets increased to RMB 165,131,000 from RMB 159,051,000, primarily due to an increase in property, plant, and equipment, which rose to RMB 142,849,000 from RMB 137,017,000[12]. - Current liabilities decreased to RMB 291,011,000 from RMB 303,345,000, with trade payables increasing significantly to RMB 99,526,000 from RMB 65,545,000[12]. - Total equity decreased to RMB 148,137,000 from RMB 161,091,000, reflecting a loss of RMB 12,013,000 during the period[13]. - Cash and cash equivalents decreased to RMB 2,112,000 from RMB 6,668,000, indicating a net decrease of RMB 4,556,000[18]. - The company’s borrowings increased to RMB 160,345,000 from RMB 166,658,000, indicating a slight reduction in debt levels[12]. - The total trade payables as of June 30, 2022, were RMB 99,526,000, an increase of 51.7% from RMB 65,545,000 as of December 31, 2021[62]. Revenue Breakdown - Revenue from wire and cable production and sales was RMB 113,224,000 for the six months ended June 30, 2022, compared to RMB 204,376,000 for the same period in 2021, indicating a decrease of about 44.6%[39]. - Revenue from aluminum product sales significantly increased to RMB 236,266,000 for the six months ended June 30, 2022, from RMB 161,000 for the same period in 2021, marking a substantial growth[39]. - The significant revenue growth was primarily driven by new product sales of cast rolled coils from Yaan Baosheng Metal Materials Co., Ltd., contributing approximately RMB 235.0 million[80]. Expenses and Costs - Financing costs increased to RMB 7,830,000, up from RMB 4,649,000, indicating a rise of 68.8%[8]. - The total employee costs for the six months ended June 30, 2022, amounted to RMB 8,024,000, representing a 33.2% increase from RMB 6,025,000 in the same period of 2021[48]. - Selling and distribution expenses rose by RMB 1.7 million or 106.6% due to increased sales activities during the period[85]. - Administrative and other expenses decreased to RMB 10,242,000 from RMB 11,489,000, showing a reduction of 10.9%[8]. - The financing costs increased from approximately HKD 4.6 million to HKD 7.8 million, primarily due to an increase in average borrowings during the period[87]. Cash Flow and Operating Activities - The company reported a net cash inflow from operating activities of RMB 15,569,000, compared to a cash outflow of RMB 14,482,000 in the same period last year[18]. - The current portion of secured bank borrowings increased to RMB 105,097,000 from RMB 98,300,000, reflecting a growth of 6.9%[64]. Shareholder Information - The chairman and CEO, Mr. Dang Fei, holds a 38.18% stake in the company, representing 351,280,000 shares[111]. - The major shareholder Red Fly Investment Limited holds 351,280,000 shares, representing 38.18% of the total issued share capital[114]. - The company has confirmed that there are no competing interests from its controlling shareholders or directors as of June 30, 2022[116]. Governance and Compliance - The group has adopted corporate governance principles in line with GEM listing rules, ensuring a balance of power and authority within the board[106]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, and believes they comply with applicable accounting standards and GEM Listing Rules[120]. Future Outlook and Strategy - The company is actively seeking opportunities to expand its influence in Southwest China, particularly in the aluminum industry, to reduce regional concentration[76]. - The company anticipates a gradual decrease in metal costs, benefiting from a 30% immediate VAT refund and local government subsidies[76]. - The company is developing a metal recycling system in collaboration with a licensed aluminum recycler, which is expected to attract more government subsidies in the future[77]. - The company’s financial performance for the second half of 2022 may be impacted by uncertainties related to the pandemic and economic recovery[77].
中国蜀塔(08623) - 2022 - 中期财报