Financial Performance - Revenue decreased by 17.1% to RMB 10.794 billion compared to RMB 13.021 billion in the previous year[2] - Gross margin fell by 17.3 percentage points to 2.4% from the previous year's margin[2] - Net loss amounted to RMB 740.2 million, with a loss attributable to equity holders of RMB 747.2 million[2] - Basic loss per share was RMB 0.81, down from a profit of RMB 1.08 per share in the previous year[3] - The company reported a total comprehensive loss of RMB 667.8 million compared to a profit of RMB 1.051 billion in the previous year[4] - For the six months ended June 30, 2023, total revenue was RMB 10,794,419 thousand, a decrease from RMB 13,020,846 thousand for the same period in 2022, representing a decline of approximately 17%[14] - The company reported a net loss from foreign exchange of RMB 80,316 thousand for the six months ended June 30, 2023, compared to a loss of RMB 111,672 thousand in 2022, showing an improvement[19] - The company reported a basic loss attributable to owners of RMB 747,197,000 for the six months ended June 30, 2023, compared to a profit of RMB 991,972,000 for the same period in 2022, resulting in a basic loss per share of RMB (0.81) versus a profit of RMB 1.08[26] Assets and Liabilities - Total assets decreased to RMB 24.483 billion from RMB 26.151 billion year-on-year[5] - Non-current liabilities increased to RMB 4.813 billion from RMB 3.883 billion in the previous year[7] - Cash and cash equivalents decreased to RMB 2.086 billion from RMB 2.468 billion[5] - The company's asset-liability ratio as of June 30, 2023, was 61%, remaining consistent with the end of the previous year[41] - Accounts payable increased to RMB 666.975 million from RMB 562.329 million year-over-year, while accounts payable and notes payable totaled RMB 3.139 billion, down from RMB 4.597 billion[35] - As of June 30, 2023, the company’s financial assets measured at fair value were RMB 356,973,000, compared to RMB 380,615,000 as of December 31, 2022[31] - The group’s total borrowings increased by RMB 693.8 million to RMB 9.2371 billion as of June 30, 2023, from RMB 8.5434 billion as of December 31, 2022[59] Inventory and Trade Receivables - Inventory decreased to RMB 6.407 billion from RMB 7.590 billion year-on-year[5] - The company's inventory as of June 30, 2023, was RMB 6,823,569,000, a decrease from RMB 8,194,991,000 as of December 31, 2022, with a provision for inventory write-down of RMB (416,974,000)[30] - Trade receivables amounted to RMB 1,060,925,000 as of June 30, 2023, slightly down from RMB 1,090,423,000 as of December 31, 2022, with a provision for impairment of RMB (17,791,000)[32] - The company reported a decrease in trade receivables, with net accounts receivable at RMB 1.324 billion, down from RMB 1.363 billion year-over-year[34] Revenue Breakdown - The group reported that revenue from external customers in Asia accounted for 91.3% of total revenue, while revenue from the Americas accounted for 8.0%[12] - Yarn sales revenue reached approximately RMB 8.0916 billion, a decrease of about 12.4%, with yarn sales accounting for 75.0% of total revenue, up from 71.0% in the same period last year[43] - The sales revenue for fabric reached approximately RMB 245 million, with a gross margin of 4.4%, reflecting a decrease from the previous year[45] - The sales volume of woven fabrics decreased from approximately 64.2 million meters to about 44.3 million meters, resulting in a sales revenue drop of about 22.8% to approximately RMB 1.024 billion[46] - The sales volume of knitted fabrics declined from approximately 8,900 tons to about 7,700 tons, leading to a sales revenue decrease of 19.4% to approximately RMB 401 million[47] - The sales revenue from denim clothing fell to approximately RMB 19.2 million, a significant drop of 95.3% due to the sale of most equity in the Vietnam denim factory[48] - Trade business revenue decreased from approximately RMB 1.097 billion to about RMB 979 million, with a gross margin decline from 6.4% to 5.7%[49] - Non-woven fabric sales revenue increased to approximately RMB 34.1 million, up 31.9% compared to the previous year[51] Operational Challenges - The ongoing geopolitical tensions and rising raw material prices have negatively impacted the textile industry's development and market demand[41] - The company is facing challenges in the market due to low demand for non-essential goods, affecting the textile industry's recovery and profitability[41] - The textile industry in China saw a revenue decline of 4.9% year-on-year, with net profit down 23.8% for the first half of 2023[42] Corporate Governance - The board consists of three executive directors and three independent non-executive directors, adhering to the corporate governance code as per the Stock Exchange's Listing Rules[66] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, with no disagreements on accounting treatments[69] - The remuneration committee is responsible for formulating the remuneration policies for the board and senior management, ensuring alignment with corporate governance standards[70] - The nomination committee evaluates the board's structure and composition, assessing the independence of non-executive directors and making recommendations for appointments[71] - The environmental, social, and governance committee oversees compliance with relevant laws and regulations related to ESG matters[72] Future Outlook - The group plans to sell approximately 400,000 tons of yarn, 44 million meters of woven fabric, and 5,000 tons of knitted fabric in the second half of 2023[58] - The group aims to optimize its regional product mix and strengthen local supply capabilities to mitigate risks from international trade fluctuations[57] - The group will focus on enhancing or divesting low-efficiency assets to concentrate on core business segments and strengthen industry partnerships for better economies of scale[57] - The company plans to continue optimizing its product mix and developing new products aligned with market trends, focusing on sustainable materials[55]
天虹国际集团(02678) - 2023 - 中期业绩