Financial Performance - In the first half of 2023, the company reported a loss of HKD 70,000 from its joint ventures, compared to a profit of HKD 346,000 in the same period of 2022[5]. - The group reported a profit attributable to owners of HKD 134.9 million for the first half of 2023, down from HKD 383.2 million in the same period of 2022[43]. - Revenue for the first half of 2023 was HKD 7,732.5 million, a decrease of 14.2% compared to HKD 9,008.6 million in the first half of 2022[67]. - Gross profit for the first half of 2023 was HKD 655.0 million, with a gross margin of 8.5%, down from 12.6% in the first half of 2022, representing a decline of 4.1 percentage points[67]. - Operating profit for the first half of 2023 was HKD 184.1 million, a decrease of 70.8% from HKD 630.5 million in the first half of 2022[67]. - The company reported a net profit of HKD 133.6 million for the first half of 2023, compared to HKD 397.7 million in the same period last year[68]. - The effective tax rate for the first half of 2023 was 24.7%, higher than the 21.6% in the same period of 2022[42]. - Other income and gains for the first half of 2023 were HKD 64.0 million, down from HKD 102.4 million in the first half of 2022[67]. - Financial expenses for the first half of 2023 were HKD 119.6 million, compared to HKD 106.9 million in the previous year[67]. - The total tax expense for the period was HKD 43,821, down from HKD 109,507 in the previous year, indicating a reduction of 60%[94]. Assets and Liabilities - As of June 30, 2023, the company's net current liabilities decreased to HKD 648.1 million from HKD 746.3 million as of December 31, 2022[9]. - The group's total borrowings decreased to HKD 4,316.6 million from HKD 4,460.4 million as of December 31, 2022[30]. - The group's trade receivables and notes decreased by HKD 321.2 million to HKD 1,162.8 million as of June 30, 2023, primarily due to an increase in discounted notes[26]. - The current ratio improved to 0.91 as of June 30, 2023, compared to 0.89 as of December 31, 2022[34]. - The net debt ratio decreased to 82.6% as of June 30, 2023, from 90.1% as of December 31, 2022[34]. - The group's total liabilities decreased to HKD 7,036,533 thousand from HKD 7,073,730 thousand, a reduction of approximately 0.53%[72]. - The company reported a slight increase in net assets to HKD 2,833,612 thousand from HKD 2,832,286 thousand, reflecting stable equity[72]. - The non-controlling interests decreased slightly to HKD 3,159,479 thousand from HKD 3,168,078 thousand, indicating minor changes in subsidiary performance[72]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was HKD 7,732,538 thousand, with significant contributions from manganese mining and production[88]. - Revenue from mainland China accounted for HKD 7,402,396 thousand, representing a substantial portion of total sales[88]. - Manganese mining revenue was HKD 581,908, down from HKD 639,561, representing a decline of 9%[114]. - Electrolytic manganese and alloy materials production revenue was HKD 1,615,881, a decrease of 29% from HKD 2,263,223[114]. - Battery materials production revenue was HKD 926,713, down from HKD 1,054,924, reflecting a decline of 12%[114]. - Other businesses generated revenue of HKD 4,608,036, a decrease of 9% from HKD 5,050,886[114]. Operational Insights - The company is optimistic about the battery materials production sector and continues to enhance its leading position through ongoing R&D efforts[4]. - The company anticipates challenges in the second half of 2023 for its electrolytic manganese segment due to oversupply and rising production costs faced by steel manufacturers[3]. - The company plans to enhance manganese resource exploration and strategic control through acquisitions[22]. - The company aims to improve operational efficiency and profitability as part of its long-term growth strategy[22]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic investments in non-wholly owned subsidiaries[74]. - The company remains optimistic about the battery materials segment and plans to focus on market share expansion and product development[155]. Governance and Compliance - The company has appointed an independent internal control consultant to review its internal control procedures, which has identified several deficiencies that have since been rectified[180]. - The board of directors and audit committee have discussed the rotation of auditors, resulting in the resignation of Ernst & Young and the appointment of PwC as the new auditor effective October 19, 2022[190]. - The company is taking appropriate steps to rectify issues that led to the suspension of trading and is committed to complying with listing rules to regain trading approval[195]. - The company has adhered to the corporate governance code principles and applicable provisions, except for a deviation from code provision A.2.1[181]. - All directors have confirmed compliance with the securities trading code during the six months ended June 30, 2023[199].
南方锰业(01091) - 2023 - 中期业绩