Financial Performance - Revenue increased by approximately 15.0% year-on-year, reaching approximately RMB 131.70 billion[2] - Gross profit decreased by approximately 40.1% year-on-year, amounting to approximately RMB 18.24 billion[2] - Annual profit decreased by approximately 41.8% year-on-year, totaling approximately RMB 9.81 billion[2] - Net profit attributable to shareholders decreased by approximately 45.9% year-on-year, reaching approximately RMB 8.70 billion[2] - Basic earnings per share decreased by approximately 47.2% year-on-year, recorded at approximately RMB 0.9358[2] - Total comprehensive income for the year (after tax) was RMB 10.48 billion, down from RMB 16.64 billion in the previous year[4] - The overall gross profit margin for the group was approximately 13.8%, down about 12.8 percentage points from the previous year[51] - The company reported a significant decrease in net profit attributable to shareholders of approximately 45.9%, amounting to RMB 8,701,953,000 for the year ended December 31, 2022, compared to RMB 16,073,342,000 in the previous year[57] Assets and Liabilities - The asset-liability ratio decreased by approximately 2.7 percentage points year-on-year, to approximately 48.2%[2] - Non-current assets increased to approximately RMB 98.17 billion from RMB 84.89 billion year-on-year[6] - Cash and cash equivalents decreased to approximately RMB 27.38 billion from RMB 49.23 billion year-on-year[7] - Current liabilities decreased from RMB 71,373,124 thousand in 2021 to RMB 63,066,632 thousand in 2022, a reduction of approximately 11.5%[8] - Non-current liabilities decreased from RMB 32,915,461 thousand in 2021 to RMB 18,062,890 thousand in 2022, a decline of approximately 45.0%[8] - The company's net asset value increased from RMB 92,438,829 thousand in 2021 to RMB 96,305,777 thousand in 2022, an increase of approximately 4.7%[8] - The company's equity attributable to owners increased from RMB 81,307,795 thousand in 2021 to RMB 84,498,853 thousand in 2022, reflecting a growth of about 4.5%[8] - The company's total liabilities decreased from RMB 63,066,632 thousand in 2021 to RMB 71,373,124 thousand in 2022, a decrease of approximately 11.5%[8] Revenue Breakdown - Revenue from aluminum product sales for 2022 reached RMB 131,699,427 thousand, an increase of 15% compared to RMB 114,490,941 thousand in 2021[19] - Revenue from liquid aluminum alloy sales was RMB 85,833,912 thousand in 2022, up from RMB 79,471,503 thousand in 2021, representing a growth of 8.5%[19] - The company reported a significant increase in revenue from alumina sales, which rose to RMB 21,404,782 thousand in 2022 from RMB 16,966,928 thousand in 2021, marking a growth of 26.5%[19] - The total revenue from the Chinese market was RMB 123,249,928 thousand in 2022, compared to RMB 109,884,370 thousand in 2021, reflecting an increase of 12.1%[20] - The company’s revenue from steam supply increased to RMB 765,353 thousand in 2022 from RMB 687,141 thousand in 2021, showing a growth of 11.3%[19] - The company’s revenue from aluminum alloy ingots surged to RMB 10,393,059 thousand in 2022, a substantial increase from RMB 4,841,490 thousand in 2021, indicating a growth of 115.5%[19] Expenses and Costs - For the year ended December 31, 2022, the group's sales and distribution expenses were approximately RMB 597,679,000, an increase of about 13.7% compared to RMB 525,709,000 in the same period last year, primarily due to increased sales volume of aluminum alloy and alumina products[52] - Administrative expenses for the year ended December 31, 2022, were approximately RMB 5,933,759,000, up about 3.9% from RMB 5,708,346,000 in the previous year, mainly due to increased foreign exchange losses included in administrative expenses[53] - Financial expenses decreased by approximately 16.7% to RMB 3,019,544,000 for the year ended December 31, 2022, compared to RMB 3,625,974,000 in the previous year, due to the repayment of certain medium-term notes and a decrease in debt interest rates[54] - Employee costs totaled approximately RMB 5,127,969,000 for the year, an increase of about 29.0% from RMB 3,974,429,000 in the previous year, attributed to salary increases and a rise in employee numbers[60] Cash Flow and Investments - The net cash inflow from operating activities for the year ended December 31, 2022, was approximately RMB 7,621,836,000, while the net cash outflow from investing activities was approximately RMB 16,772,532,000[55] - As of December 31, 2022, the group's cash and cash equivalents were approximately RMB 27,384,542,000, a decrease of about 44.4% from RMB 49,227,282,000 a year earlier, primarily due to debt repayment and dividend payments[55] Dividends - The company declared an interim dividend of HKD 0.41 per share for 2022, compared to HKD 0.45 per share in 2021[28] - The company plans to propose a final dividend of HKD 0.10 per share, subject to shareholder approval at the upcoming annual general meeting[28] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.10 per share, which, combined with the interim dividend of HKD 0.41 per share, results in a total dividend of HKD 0.51 per share for the year[79] Corporate Governance - The board of directors consists of four executive directors, four non-executive directors, and four independent non-executive directors as of the announcement date[67] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[81] - The company confirmed that all directors complied with the standards of the corporate governance code regarding securities transactions during the year ended December 31, 2022[94] - The company adhered to the principles of the corporate governance code, with the exception of the separation of roles between the Chairman and the CEO, which is held by Mr. Zhang Bo due to his extensive management experience[95] Market Outlook and Strategy - In 2023, the global economy is expected to progress slowly amid geopolitical conflicts, energy crises, and high inflation, impacting the aluminum industry[62] - The company aims to enhance its internal capabilities and optimize its energy, industrial, and product structures while promoting orderly project construction[63] - The company plans to focus on renewable energy developments, including solar and wind power, and increase collaboration with leading enterprises in the industry[63] - The company plans to leverage its strong technical support and industry synergy to capture new opportunities in aluminum applications and consumption in the coming year[44] Debt and Financing - The group issued a total of RMB 8 billion in corporate bonds, short-term financing bills, and medium-term notes during the year, optimizing its debt structure and reducing capital costs[44] - On February 16 and March 10, 2023, the company completed the issuance of short-term financing bonds in the domestic market, each with a scale of RMB 1,000,000,000 and a maturity of 1 year, with interest rates of 4.60% and 4.50% respectively[64] - The company issued a total of $300,000,000 in 7.125% senior unsecured notes due in 2022, which were fully redeemed at maturity along with accrued interest[83] - A total of $200,000,000 in 7.375% senior unsecured notes due in 2023 was issued, with net proceeds of approximately $197,300,000 after expenses[83] - The company issued $500,000,000 in 6.25% senior unsecured notes due in 2024, with net proceeds of approximately $493,900,000 after expenses[83] Shareholder Information - As of December 31, 2022, the total number of shares held by major shareholders includes 6,076,513,573 shares (64.13%) held by Shih Ping Trust Company and 6,085,383,573 shares (64.22%) held by Ms. Zhang Hongxia and Ms. Zhang Yanhong as part of a concerted action[75] - The company has not made any arrangements for directors to acquire shares or debt securities of the company or any other corporation during the year ended December 31, 2022[78] - The company maintains sufficient public float as approved by the stock exchange and complies with listing rules[65]
中国宏桥(01378) - 2022 - 年度业绩