Financial Performance - Steel product sales volume increased by 16.8% to 3.88 million tons, while trading volume rose by 12.7% to 3.98 million tons compared to the same period last year[2]. - Revenue from self-produced steel products decreased by 4.6% to RMB 13.97 billion, while revenue from power equipment sales increased by 8.1% to RMB 1.62 billion[2]. - EBITDA dropped by 53.8% to RMB 1.05 billion, with an EBITDA margin of 4.8% compared to 9.1% in the previous year[3]. - Net profit for the period fell by 77.6% to RMB 276.14 million, with earnings per share decreasing by 75.0% to RMB 0.08[3]. - For the six months ended June 30, 2023, total sales amounted to RMB 22,058,731 thousand, a decrease from RMB 24,998,775 thousand for the same period in 2022, representing a decline of approximately 7.8%[20]. - The company reported a net profit of RMB 276,135 thousand for the six months ended June 30, 2023, compared to RMB 1,230,020 thousand for the same period in 2022, reflecting a significant decrease[22]. - The profit before tax for the six months ended June 30, 2023, was RMB 266,002 thousand, a significant decrease from RMB 1,490,097 thousand in the same period of 2022, representing a decline of approximately 82.1%[31]. - The basic earnings per share for the six months ended June 30, 2023, was RMB 0.08, down from RMB 0.32 in the same period of 2022, indicating a decrease of 75%[32]. - Revenue for the first half of 2023 was approximately RMB 22.06 billion, down about 11.8% year-on-year[58]. Assets and Liabilities - Total assets increased by 3.0% to RMB 49.46 billion as of June 30, 2023, compared to RMB 48.02 billion at the end of 2022[3]. - Total liabilities as of June 30, 2023, were RMB 24,011,717 thousand, up from RMB 22,738,943 thousand at the end of 2022, indicating an increase of about 5.6%[10]. - The company's equity attributable to owners increased to RMB 25,447,565 thousand from RMB 25,284,647 thousand, showing a growth of approximately 0.65%[10]. - Cash and cash equivalents at the end of the period increased to RMB 4,666,094 thousand from RMB 2,124,697 thousand, marking a significant rise of approximately 119.5%[11]. - The company's long-term bank deposits decreased to RMB 1,590,000 thousand from RMB 2,090,000 thousand, a decline of approximately 23.9%[9]. - The total borrowings as of June 30, 2023, reached RMB 14.60 billion, up from RMB 13.44 billion as of December 31, 2022, representing an increase of approximately 8.7%[48]. Revenue Breakdown - The total revenue from the steel division was RMB 21,975,108 thousand, while the real estate division contributed RMB 83,623 thousand to the total revenue[22]. - The revenue from H-beam steel products was RMB 7,055,205 thousand, down from RMB 8,422,123 thousand in the previous year, reflecting a decrease of about 16.2%[20]. - The iron ore revenue decreased to RMB 4,570,854 thousand from RMB 6,182,948 thousand, marking a decline of approximately 26.0%[20]. - The real estate segment generated revenue of RMB 83,623 thousand, significantly up from RMB 32,206 thousand, indicating an increase of approximately 159.0%[20]. Cost and Profitability - The gross profit margin for self-produced steel products decreased by 64.4% to RMB 145 per ton[2]. - The company reported a significant decline in gross profit from trading steel products and related materials, down 92.5% to RMB 0.19 billion[2]. - Gross profit for the first half of 2023 was approximately RMB 562 million, a decrease of about 58.5% from RMB 1.35 billion in the same period of 2022, with a gross margin of 4.0%[65]. - The average selling price of self-produced steel products fell by 18.3% to approximately RMB 3,599 per ton[58]. - The average cost per ton of steel products was RMB 3,454, leading to a gross profit per ton of RMB 145, a decrease of 64.4% from RMB 407 in the same period of 2022[66]. Dividends and Shareholder Returns - The company did not declare an interim dividend, compared to HKD 0.07 per share in the same period last year[3]. - The total dividend paid for the six months ended June 30, 2023, was RMB 101,521 thousand, compared to RMB 284,532 thousand in the same period of 2022, reflecting a reduction of approximately 64.3%[34]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, contrasting with the interim dividend of approximately RMB 2.29 billion paid in the same period of 2022[35]. Research and Development - Research and development expenses increased to RMB 167.24 million from RMB 156.17 million, reflecting a focus on innovation[6]. - The company’s research and development expenses remained relatively stable, with a slight decrease from RMB 35,067 thousand in 2022 to RMB 35,002 thousand in 2023[31]. Market Outlook and Strategy - The outlook for the second half of 2023 indicates a complex international environment with slowing economic growth and inflation pressures, but infrastructure construction is expected to continue to drive demand[69]. - The group anticipates a slight decline in both steel supply and demand in 2023, with a cautious optimism for gradual improvement in the overall development trend[70]. - The company is focusing on cost reduction and efficiency improvement through various measures, including procurement and logistics optimization[59]. - The company is currently evaluating the comprehensive impact of new accounting standards and interpretations that will take effect from January 1, 2024[18]. Cash Flow and Operating Activities - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 598,770 thousand, compared to RMB 563,267 thousand for the same period in 2022, reflecting an increase of about 6.5%[11]. - The company reported a net cash inflow from financing activities of RMB 1,370,715 thousand for the first half of 2023, compared to RMB 1,163,405 thousand in the same period of 2022, an increase of about 17.9%[11]. Inventory and Receivables - Inventory decreased to RMB 4,704,751 thousand from RMB 6,089,732 thousand, representing a decline of approximately 22.7%[9]. - Trade receivables increased to RMB 3,188,592 thousand from RMB 2,818,200 thousand, reflecting a growth of about 13.1%[9]. - The accounts receivable and contract assets as of June 30, 2023, totaled RMB 4,070,106 thousand, an increase from RMB 3,460,253 thousand as of December 31, 2022, indicating a growth of about 17.6%[37]. Investment and Financial Assets - The total fair value of financial assets measured at fair value through profit or loss is RMB 4,844,270 thousand as of June 30, 2023, slightly up from RMB 4,828,414 thousand as of December 31, 2022[40]. - The company has not disclosed any significant events affecting its operations since the balance sheet date[81]. - The company has reallocated its currency assets to reduce the impact of RMB/USD exchange rate fluctuations[78]. Corporate Governance - The company has complied with the corporate governance code during the six months ended June 30, 2023, with the exception of the separation of the roles of Chairman and CEO[189]. - The audit committee reviewed the group's financial information for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards and regulations[192].
中国东方集团(00581) - 2023 - 中期业绩