Company Operations and Market Position - The company operates as a global manufacturer of ultra-high power graphite electrodes, serving over 25 countries, including major electric arc furnace steel manufacturers in the Americas, EMEA, Asia-Pacific, and China[7]. - The company has a total production capacity of 46,000 metric tons across its facilities in Italy and China, allowing it to flexibly meet global demand for graphite electrodes[7]. - The company has established regional sales teams focused on the Americas, EMEA, Asia-Pacific, and China to support customer needs[8]. - The company is strategically positioned to address current challenges in the graphite electrode market through its investments and technological advancements[8]. Investment and Development - In mid-April 2024, the company held a groundbreaking ceremony for its anode production facility in Italy, aiming to establish advanced production technology comparable to Chinese standards[8]. - The company is investing in the development of silicon-based anode materials in China, positioning itself as part of the next generation of anode material production technology[8]. - The company is committed to diversifying investments in graphite anode materials as a natural business expansion, with a groundbreaking ceremony for a production facility held in Italy in the first half of 2024[14]. - The company is advancing the Narni graphite anode materials project to capitalize on opportunities in the European new energy market, with an allocation of approximately HKD 15 million for development and expansion[45]. Financial Performance - Revenue decreased from approximately 32.1 million in the first half of 2024, primarily due to a drop in average selling price of graphite electrodes from approximately 3,316 per ton[15]. - The average selling price of graphite electrodes fell by approximately 27.1% year-on-year, while sales volume slightly increased to 9,682 tons from 9,603 tons[15]. - Cost of sales increased from approximately 40.2 million in the first half of 2024, with average cost per ton rising from approximately 4,154[16]. - Gross loss amounted to approximately 5.3 million in the same period of 2023, resulting in a gross loss margin of approximately 25.3%[17]. - The company reported a loss attributable to owners of approximately 4.2 million in the same period of 2023[21]. - The company reported revenue of 43,685 thousand for the same period in 2023[56]. - The company incurred a loss attributable to ordinary equity holders of 4,224 thousand for the same period in 2023[86]. Cash Flow and Financial Position - In the first half of 2024, the operating cash flow was approximately 4.7 million in the first half of 2023[22]. - As of June 30, 2024, cash and cash equivalents were approximately 29.6 million as of December 31, 2023[22]. - The company reported a pre-tax loss from operating activities of 5,423,000 for the six months ended June 30, 2024[65]. - The company incurred a total cash outflow from financing activities of 28.4 million, down from 8,827,000 in 2023 to 5.8 million in the first half of 2024, mainly due to ongoing development costs for graphite anode material expansion projects[18]. - The company has maintained strict control over outstanding receivables, with overdue balances reviewed regularly by senior management[91]. - The company aims to minimize credit risk through a dedicated credit monitoring department[91]. Corporate Governance and Compliance - The audit committee confirmed the completeness and accuracy of the interim report and financial statements for the first half of 2024[50]. - The company has complied with the corporate governance code throughout the reporting period[49]. Shareholder Information - The company’s stock is listed on the Hong Kong Stock Exchange under the stock code 2459[5]. - The company did not declare any interim dividends for the first half of 2024 and 2023[48]. - The company did not issue any potential dilutive ordinary shares during the reporting period[86].
昇能集团(02459) - 2024 - 中期财报