Financial Performance - The Group recorded a 68.8% decrease in copper sales in 2022 compared to 2021, resulting in a net loss of approximately RMB 4,763.2 million[5]. - The Group recorded a significant decrease in copper product sales by 68.8% in 2022 compared to 2021, resulting in a net loss of approximately RMB 4,763.2 million, with a loss per share of RMB 1.10[11]. - Revenue for the year ended 31 December 2022 amounted to approximately RMB 2,391.7 million, representing a decrease of 69.02% from approximately RMB 7,719.5 million for the year ended 31 December 2021[29]. - Revenue from recycled copper products amounted to approximately RMB 2,383.3 million for the year ended 31 December 2022, representing a decrease of 66.4% from approximately RMB 7,089.8 million for the year ended 31 December 2021[29]. - Gross loss was approximately RMB 288.1 million for the year ended 31 December 2022, compared to a gross profit of approximately RMB 151.6 million for the year ended 31 December 2021[30]. - Loss for the year ended 31 December 2022 was RMB 4,763.2 million, compared to a loss of RMB 95.5 million for the year ended 31 December 2021[30]. - The total revenue for 2022 was RMB 2,391,709, down from RMB 7,719,448 in 2021, reflecting significant declines in various product sales[28]. - Revenue from recycled copper products in 2022 was RMB 2,383,263, a decrease from RMB 7,089,775 in 2021[28]. Bankruptcy and Restructuring - The bankruptcy reorganization applications for some subsidiaries have been approved by relevant courts, aiming to restructure and reduce their debts[7]. - The immediate priority for the Group is to successfully complete the bankruptcy reorganizations of its subsidiaries as soon as possible[8]. - The Company filed a Bankruptcy Reorganisation Application for its wholly-owned subsidiaries on June 6, 2022, to restructure existing indebtedness[12]. - The Debt Restructuring aims to reduce debts, release the intrinsic value of quality assets, and enhance revenue generation capabilities of the Relevant Subsidiaries[12]. - On May 25, 2023, the Company announced that another subsidiary, Taiyue, also intended to restructure its existing indebtedness through bankruptcy reorganization[13]. - Yinlian Xiangbei, another indirect wholly-owned subsidiary, faced a civil ruling for winding-up due to debts of approximately RMB 11.9 million but opposed the petition and applied for bankruptcy reorganization instead[14]. - The company announced the bankruptcy reorganization applications for its subsidiaries, including a debt of approximately RMB 11.9 million related to Yinlian Xiangbei[16][22]. - The court accepted the bankruptcy reorganization application for Yinlian Xiangbei after considering the situation of the company and its other subsidiaries[17][22]. - Hubei Rongsheng Copper Co., Ltd. received approval for pre-restructuring to prepare for its intended bankruptcy reorganization application[18][19]. - The company expects short-term operational and financial results to be adversely affected during the bankruptcy reorganizations, but remains confident in long-term business prospects[20][23]. Market Outlook and Demand - Despite short-term operational and financial challenges, the Group is confident in long-term business prospects, particularly in sectors like new infrastructure construction and new energy vehicles[8]. - Future demand for copper products is expected to remain strong, especially in high-tech home appliances and electronic devices[8]. - The company is well-positioned to benefit from the expected increase in demand for copper as the manufacturing industry undergoes transformation[24][25]. - The company anticipates strong demand for copper due to the strategic advancements in "carbon dioxide reaching the peak" and "carbon dioxide neutralization" initiatives[24][25]. Operational Challenges - The impact of COVID-19 and regional lockdowns has significantly disrupted industrial activities and supply chains, adversely affecting the Group's business[5]. - The sales volume of recycled copper products decreased from 131,864 metric tons for the year ended 31 December 2021 to 44,241 metric tons for the year ended 31 December 2022, a decrease of 66.4%[29]. - Sales of communication cables dropped to RMB 700 in 2022 from RMB 32,201 in 2021, highlighting challenges in the market[28]. Financial Position and Capital Structure - As at 31 December 2022, the capital structure of the Group mainly consisted of shareholder's equity, note payables, interest-bearing bank and other borrowings, lease liabilities, and liability component of convertible bonds[31]. - As of December 31, 2022, total fixed rate borrowings amounted to RMB 1,595,831,000, a decrease from RMB 1,799,964,000 as of December 31, 2021[32]. - The current ratio and quick ratio both dropped to 0.3 as at 31 December 2022, down from 1.2 in 2021[47]. - The debt to equity ratio was -59.1% as at 31 December 2022, compared to 105.3% in 2021, reflecting net liabilities of RMB 2,702.0 million due to losses of RMB 4,763.2 million for the year[48]. - The Group's cash and cash equivalents amounted to approximately RMB 2.4 million, a decrease from approximately RMB 12.0 million in 2021[44]. - The Group's inventories decreased by RMB 88.6 million to approximately RMB 100.9 million, compared to approximately RMB 189.5 million in 2021[44]. - Trade and bills receivables decreased by approximately RMB 2,075 million to RMB 236.5 million as at 31 December 2022, with turnover days increasing to 176.4 days from 105.0 days in 2021 due to tight liquidity among customers caused by COVID-19[46]. - Total interest-bearing borrowings decreased by RMB 204.2 million to RMB 1,595.8 million as at 31 December 2022, mainly due to the settlement of principal and accrued interests under convertible bonds[46]. Corporate Governance - The Company was in compliance with the Corporate Governance Code for the year ended December 31, 2022[127]. - The Company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in the Model Code[135]. - The Board is responsible for overall management and control of the Company, aiming to enhance shareholder value[135]. - The Company emphasizes the importance of good corporate governance for its success and sustainability[135]. - The Company expresses gratitude to shareholders and staff for their support and contributions during the year[129]. Shareholder Information - The Company does not recommend or declare any dividends for the years ended December 31, 2022, and 2021[87]. - The Company has a significant concentration of shareholdings among a few substantial shareholders, indicating potential influence on corporate decisions[80]. - The largest customer contributed 29% of the revenue, and the five largest customers together accounted for 62% of the revenue[94]. Environmental and Social Responsibility - The Group is committed to maintaining high environmental and social standards, complying with relevant laws and regulations impacting its business[122]. - The Group operates in the environmental protection industry by recycling scrap metal, contributing to pollution reduction in the vicinity of its plants[123]. - The Group encourages employees to participate in environmental and social activities benefiting the community[126]. Management and Leadership - Mr. Yu Jianqiu is the founder and Chairman, with over 20 years of experience in corporate operations and management in petrochemical, automobile, and renewable energy sectors[58]. - The management team has a strong educational background, with Mr. Yu holding an Executive MBA from Hautes Etudes Commerciales de Paris[58]. - The leadership team has experience in various industries, which may contribute to innovative strategies and market adaptability[58]. Risk Management - The Group engaged an external consultant in 2022 to assist in developing a structured approach to risk management and perform an internal control review, with no material internal control defects identified[186]. - The Group's risk governance structure includes the Board, Audit and Corporate Governance Committee, and Management, each with defined responsibilities for risk management and internal control[189]. - Management is responsible for identifying, evaluating, and managing risks that may impact operations, and for confirming the effectiveness of risk management and internal control systems to the Board[191].
中国金属利用(01636) - 2024 - 年度财报