Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,998,558 thousand, a decrease of 24.9% compared to RMB 5,321,033 thousand in the same period of 2022[2] - Gross profit for the same period was RMB 940,131 thousand, down 35.1% from RMB 1,448,998 thousand year-on-year[2] - Profit attributable to owners of the company was RMB 150,521 thousand, representing a decline of 67.0% from RMB 456,536 thousand in the previous year[2] - Basic earnings per share decreased to RMB 0.05, down 67.0% from RMB 0.16 in the prior year[2] - The company reported a pre-tax profit of RMB 155,619 thousand, a significant decrease from RMB 610,023 thousand in the same period last year[4] - The group reported a net foreign exchange loss of RMB (23,301) thousand for the six months ended June 30, 2023, compared to a loss of RMB (101,907) thousand in 2022, indicating an improvement[18] - The group's gross profit for the first half of 2023 was approximately RMB 940.1 million, a decrease of RMB 508.9 million or 35.1% from approximately RMB 1,449.0 million in the same period of 2022[38] - The gross margin decreased to 23.5% in the first half of 2023 from 27.2% in the same period of 2022, primarily due to a greater decline in cement selling prices compared to the decrease in unit production costs[38] Revenue Breakdown - Cement sales amounted to RMB 3,077,482 thousand, down 29% from RMB 4,329,912 thousand in the previous year[14] - Clinker sales were RMB 188,509 thousand, a decline of 59% from RMB 458,644 thousand year-on-year[14] - Limestone aggregate sales increased to RMB 732,567 thousand, up 38% from RMB 532,477 thousand in the prior year[14] - Revenue from sales of limestone aggregates was approximately RMB 732.6 million, an increase of RMB 200.1 million or 37.6% compared to RMB 532.5 million in the same period of 2022[35] - The sales revenue from clinker was approximately RMB 188.5 million, a decrease of RMB 270.1 million or 58.9% compared to RMB 458.6 million in the same period of 2022[35] Assets and Liabilities - Total assets as of June 30, 2023, increased by 1.5% to RMB 32,826,801 thousand from RMB 32,343,592 thousand at the end of 2022[2] - Total liabilities rose to RMB 16,081,317 thousand, an increase of 2.1% from RMB 15,753,498 thousand at the end of 2022[2] - Current liabilities decreased by 8.4% to RMB 12,382,942 thousand from RMB 13,521,730 thousand at the end of 2022[2] - The company's net current assets improved to RMB 5,183,964 thousand, compared to RMB 3,352,372 thousand at the end of 2022[6] - Trade receivables as of June 30, 2023, amounted to RMB 241,881 thousand, an increase from RMB 159,599 thousand as of December 31, 2022[26] - Trade payables as of June 30, 2023, were RMB 853,148 thousand, down from RMB 993,114 thousand as of December 31, 2022[27] - Total borrowings and bonds amounted to approximately RMB 10,430.2 million as of June 30, 2023, an increase of approximately RMB 807.5 million from RMB 9,622.7 million as of December 31, 2022[50] Cost Management and Expenses - The company's sales and distribution expenses were approximately RMB 164.3 million, an increase of RMB 6.2 million or 3.9% compared to approximately RMB 158.1 million in the same period of 2022[40] - The financial expenses for the first half of 2023 were approximately RMB 409.3 million, a decrease of RMB 100.5 million or 19.7% from approximately RMB 509.8 million in the same period of 2022[42] - The group capitalized borrowing costs at an annual rate of 5.71% for the six months ended June 30, 2023, compared to 6.01% in the same period of 2022[19] - The total depreciation and amortization for the six months ended June 30, 2023, was RMB 432,459 thousand, a decrease from RMB 462,799 thousand in 2022[22] Market Conditions and Strategy - The national cement market showed signs of weakening demand, with a 2.4% decrease in total cement production compared to the previous year, amounting to a reduction of approximately 2.4 million tons[32] - The average price of cement in various regions showed significant declines, with the East China region experiencing a drop of RMB 49 to 76 per ton, representing a decrease of approximately 10% to 15%[33] - The overall profitability of the national cement industry is expected to decline by around 60% compared to the same period last year[33] - The company actively adjusted its market strategy and strengthened cost management to mitigate the impact of declining demand and prices in the cement industry[29] - The outlook for the second half of 2023 indicates a slight improvement in cement demand, supported by infrastructure investments and favorable real estate policies[63] Corporate Governance - The company has not appointed a new CEO since the resignation of the previous one in December 2015 and has established an executive committee to manage daily operations[66] - The company has adopted the corporate governance code and has ensured compliance with all relevant regulations during the reporting period[67] - The board of directors includes a mix of executive and independent non-executive members, ensuring a diverse governance structure[70] - The financial data for the interim results ending June 30, 2023, has been discussed and reviewed by the board's audit committee but has not been audited or reviewed by the company's auditors[69] - The board of directors did not recommend the declaration of an interim dividend for the reporting period[68] Investments and Future Plans - The company aims to expand its financing channels to improve its capital structure while ensuring sufficient cash flow for ongoing business needs[51] - The company is closely monitoring exchange rate fluctuations and plans to implement appropriate hedging measures as needed[59] - The company continues to focus on cost management across various operations, including mining, material procurement, and production processes, to enhance efficiency and reduce costs[65] - The company is committed to developing key projects and maintaining relationships with important clients while expanding into rural markets to enhance customer loyalty and create enterprise value[65] - No significant investments, acquisitions, or disposals occurred during the reporting period[57]
中国天瑞水泥(01252) - 2023 - 中期业绩