Anchun International Holdings (BTX) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 9% YoY to RMB74.7m; gross profit declined 22% to RMB15.2m and net profit to RMB0.7m from RMB7.0m.

• Non-fertiliser industries generated 97.7% of revenue, up from 87% in H1 2022; order book was RMB129.0m at 30 June 2023.

Financial highlights

• Revenue was RMB74.734m, cost of sales RMB59.504m and gross profit RMB15.230m; finance and other income was RMB2.677m.

• Profit before tax was RMB0.672m, income tax RMB0.013m and net profit attributable to owners RMB0.659m, versus RMB7.454m, RMB0.521m and RMB6.933m in H1 2022.

• Operating cash flow was negative RMB2.873m versus positive RMB16.668m in H1 2022; cash and cash equivalents ended at RMB65.172m.

Outlook and guidance

• Remaining performance obligations totalled RMB128.984m; RMB65.200m was expected to be recognized as revenue in FY 2023 and RMB63.784m in FY 2024.

• Order book was RMB129.0m at 30 June 2023, including RMB103.8m from non-fertiliser industries; prior year-end order book was RMB136.3m.

• Priorities include cost vigilance, continued R&D and exploring applications for patented technologies, including in green ammonia, green methanol and green hydrogen.