GDTC(688186)2024-09-04 09:36Financial Performance - Net profit attributable to shareholders for the first half of 2024 was RMB 42.78 million, a decrease of 50.06% year-on-year [3] - Revenue for the first half of 2024 was RMB 1.88 billion, a decrease of 8.37% year-on-year [3] - Operating cash flow for the first half of 2024 was negative RMB 418 million, mainly due to cash payments for daily procurement, employee salaries, and taxes, as well as increased inventory and long-term asset purchases [4] - Investment cash flow for the first half of 2024 was negative RMB 234 million, primarily due to investments in convertible bond projects [4] Profit Distribution - The company plans to distribute a cash dividend of RMB 0.5 per 10 shares, totaling RMB 10.71 million [1] - The profit distribution plan has been approved by the board of directors and requires approval by two-thirds of the shareholders at the general meeting [2] Subsidiary Performance - Deyang Guangda Dongqi New Materials Co, Ltd, a subsidiary, achieved revenue of RMB 617 million and a net profit of RMB 25.39 million in the first half of 2024 [2] Industry and Product Strategy - The company focuses on high-end equipment special steel materials and new energy wind power components, serving industries such as wind power, rail transit, mechanical equipment, military equipment, aerospace, energy power equipment, and marine petrochemicals [2] - The company is adjusting its product structure to reduce reliance on wind power castings and increase the production of high-value-added products such as basic materials, wind power spindles, and cast steel parts [2][3] Capacity Expansion - The special alloy material expansion project is under construction, with partial equipment already in use, and is expected to be operational by December 2024 [3] Convertible Bonds - The company's RMB 1.55 billion convertible bonds have not yet been converted, with a current premium rate of 127% [3] - The board of directors has decided not to lower the conversion price of the convertible bonds for the next six months [4] Market and Investor Relations - The company's stock price has fallen by 47% this year, and the convertible bond price has dropped by 34% to RMB 64.766 [3] - The company is actively managing its operations to improve cash flow and believes that the convertible bond price will gradually reflect its value in the long term [4]