C ZENITH CHEM(00362)

Search documents
中国天化工(00362) - 2020 - 中期财报
2020-04-01 08:43
Financial Performance - For the six months ended December 31, 2019, the turnover decreased by 23.3% to HK$149,647,000 compared to HK$195,168,000 in the same period of 2018[2]. - The loss for the period narrowed by 9.5% to HK$51,448,000 from HK$56,841,000 year-on-year[5]. - Basic loss per share improved by 30.5% to HK(3.51) cents from HK(5.05) cents in the previous year[7]. - Gross profit increased to HK$67,963,000, up from HK$60,701,000, reflecting a positive trend despite lower turnover[5]. - The total comprehensive income for the period was a loss of HK$89,418,000, compared to a loss of HK$91,356,000 for the same period in 2018, showing a slight improvement[16]. - For the six months ended December 31, 2019, the company reported a loss attributable to owners of approximately HK$46,768,000, a decrease from HK$57,394,000 in the same period of 2018, representing a reduction of about 18.4%[52][54]. Assets and Liabilities - Total assets as of December 31, 2019, were HK$2,211,834,000, a decrease from HK$2,266,842,000 as of June 30, 2019[10]. - The company's equity attributable to owners decreased to HK$712,679,000 from HK$801,122,000, indicating a reduction in shareholder value[10]. - Non-current assets decreased to HK$1,936,093,000 from HK$2,014,529,000, primarily due to a decline in fixed assets[10]. - As of December 31, 2019, total liabilities amounted to HK$1,444,881,000, an increase from HK$1,401,933,000 as of June 30, 2019, representing a growth of approximately 3.1%[12]. - The company's total equity decreased to HK$766,953,000 as of December 31, 2019, down from HK$864,909,000 at the beginning of the period, reflecting a decline of approximately 11.3%[14]. Cash Flow and Financing - For the six months ended December 31, 2019, the net cash generated from operating activities was HK$28,563,000, a significant recovery compared to a cash outflow of HK$80,315,000 in the same period of 2018[18]. - The net cash used in financing activities was HK$17,553,000, contrasting with a cash inflow of HK$67,687,000 in the same period of 2018[18]. - Cash and cash equivalents at the end of the period were HK$7,639,000, a decrease from HK$71,212,000 at the beginning of the period, indicating a cash reduction of approximately 89.3%[18]. - The company's bank loans decreased to HK$49,522,000 from HK$52,440,000, a reduction of about 5.5%[12]. - The bonds payable increased to HK$937,460,000 from HK$895,111,000, representing a rise of approximately 4.7%[12]. Revenue Segments - Heat supplying services generated revenue of HK$135,843,000, up from HK$124,392,000, reflecting an increase of 9.7%[35]. - Electricity supplying services revenue increased significantly to HK$4,809,000 from HK$2,521,000, representing a growth of 90.2%[35]. - The segment profit for the heat and power division was HK$51,839,000, while the calcium carbide division reported a loss of HK$24,678,000[41]. - The calcium carbide segment recorded revenue of approximately HK$8 million, a significant decrease of approximately 88% compared to the last corresponding period[162]. Employee and Operational Metrics - As of December 31, 2019, the Group had 682 full-time employees, an increase from 678 as of June 30, 2019[190]. - Staff costs (excluding Directors' emoluments) were reported at HK$17,177,000, slightly up from HK$17,083,000 in 2018, reflecting a marginal increase of about 0.55%[50]. - The company incurred factory overhead of HK$20,642,000 during the suspension of production, down from HK$23,314,000 in the previous year, a decrease of about 11.5%[50]. Strategic Acquisitions and Investments - The company entered into a memorandum of understanding on January 23, 2020, for a possible acquisition of My Cloud Technology (Shenzhen) Co. Ltd, which focuses on mobile internet integrated platform development[105]. - The management believes that the potential acquisition will create favorable business opportunities and enhance competitive advantages in the market[105]. - The total consideration for a previous acquisition of Xinyang Maojian International Holding Limited was HK$85,800,000, with 220,000,000 new shares issued at an issue price of HK$0.39 per share[111]. Legal and Compliance Matters - The Group has made sufficient provision for a legal action regarding a contract dispute, with a potential liability of approximately RMB42,700,000 plus interest[90]. - The management believes a favorable settlement could be reached regarding the legal dispute, which may allow part of the damages to be absorbed in construction costs[94].
中国天化工(00362) - 2019 - 年度财报
2019-10-30 08:45
Financial Performance - The Group recorded a loss of approximately HK$698 million for the year, with a loss attributable to the owners of the Company of approximately HK$667 million, representing an increase of 235% compared to the previous financial year [14]. - Revenue for the year amounted to approximately HK$323 million, a decrease of 12% compared to approximately HK$368 million in the previous financial year [26]. - The Group recorded a loss of approximately HK$698 million due to a one-off write-off of idle production lines in Mudanjiang, which had been inactive for several years [31]. - Loss attributable to shareholders was approximately HK$667 million, an increase of 235% from HK$199 million in the previous year [31]. - The heat and power division generated revenue of approximately HK$173 million, down 6% from HK$185 million in the previous year, with segment profit decreasing to approximately HK$20 million from HK$31 million [35]. - The calcium carbide segment recorded revenue of approximately HK$76 million, a slight increase of 1%, but incurred a segment loss of approximately HK$398 million, up 272% from HK$107 million [38]. - The PVC and VA segments reported losses of approximately HK$129 million and HK$58 million, representing increases of 486% and 87%, respectively, primarily due to the one-off write-off [39]. - The construction services division's revenue fell to approximately HK$74 million from HK$108 million, with segment profit dropping to approximately HK$3 million from HK$16 million [44]. Cost Management - Selling and distribution costs increased by approximately 11% to approximately HK$20 million, primarily due to expenditures on a newly set up fee collection station [28]. - Administrative expenses decreased by approximately 15% to approximately HK$163 million, as a one-off amortization of approximately HK$26 million from the previous year did not recur [29]. - Other operating expenses increased by approximately 25% to approximately HK$75 million, attributed to the suspension of Heihe Longjiang Chemical Limited since March 2019 [30]. Market Conditions - The industrial sector in the PRC experienced a sustained downturn due to the Sino-US trade war, impacting the Group's operations [15]. - The tea division suffered losses due to the impact of the Sino-US trade war on commodity products [56][61]. Strategic Initiatives - The Group is exploring opportunities to transform the Heihe plant into producing high carbon ferromanganese due to the low market price of calcium carbide [15]. - The management is actively seeking new business opportunities to diversify revenue sources and mitigate risks in light of the ongoing economic uncertainties [16]. - The Group aims to broaden its revenue sources and diversify business risks in the best interest of shareholders [16]. - Management is exploring opportunities to convert the facilities and equipment for calcium carbide production into high-carbon ferromanganese, with low conversion costs anticipated [52]. Financial Position - The total assets of the Group as of June 30, 2019, were approximately HK$2,266.8 million, down from approximately HK$3,176.8 million in 2018 [64][68]. - Current liabilities decreased to approximately HK$276.5 million in 2019 from approximately HK$386.3 million in 2018 [64][68]. - The Group's current ratio remained stable at approximately 0.9, while the gearing ratio increased to approximately 61.8% from 47.2% in the previous year [65][69]. - The Group's cash and cash equivalents dropped to approximately HK$7.2 million in 2019 from approximately HK$62.2 million in 2018 [65][69]. Corporate Governance - The Board of Directors consists of seven members, including Ms. Chan Yuk Foebe as both Chairman and Chief Executive Officer, which deviates from the Corporate Governance Code's recommendation for separation of these roles [119]. - The Board has a balanced composition with skills in management, accounting, finance, marketing, manufacturing, and procurement, ensuring effective oversight of the Group's strategic planning [120]. - All independent non-executive Directors confirmed compliance with independence guidelines throughout the year, with specific qualifications in accounting and financial management [122]. - The Group provides training and support for Directors to ensure they are aware of their responsibilities and the latest regulatory developments [128]. - The Board regularly reviews its structure and practices to ensure effective governance and compliance with corporate governance standards [115]. - The Group is committed to high standards of corporate governance to safeguard shareholder interests and enhance corporate value [113]. Board Committees and Meetings - The Audit Committee reviewed the audited financial statements for the year and the unaudited financial statements for the six months ended December 31, 2018 [167]. - The Audit Committee met twice with the external auditor during the year [168]. - The Remuneration Committee is responsible for advising on the remuneration policy and structure for all Directors and senior management, ensuring no Director decides their own remuneration [174]. - The Company has established three Board committees: the Remuneration Committee, the Audit Committee, and the Nomination Committee, each with defined written terms of reference [158]. - The Remuneration Committee met four times during the year to assess the performance of executive Directors [177]. - The Nomination Committee met four times during the year to review the structure, size, and composition of the Board [186]. Shareholder Matters - The company completed a subscription agreement for 220,000,000 new shares at a price of HK$0.315 per share, raising approximately HK$69.3 million in gross proceeds [73]. - The largest shareholder agreed to sell 146,000,000 shares, representing approximately 10.97% of the total issued shares, at a price of HK$0.915 per share [93]. - The completion of the sale and purchase agreement is conditional upon certain conditions being fulfilled by December 15, 2019 [94]. Risk Management - The Company has arranged appropriate liability insurance for Directors to indemnify them against liabilities arising from corporate activities [123]. - The Company ensures that all Board committees have sufficient resources to discharge their duties and can seek independent professional advice when necessary [159]. - The Company’s governance structure includes regular reviews of the internal controls of various corporate structures and business processes to ensure effective operations [167].
中国天化工(00362) - 2019 - 中期财报
2019-03-28 08:42
Financial Performance - For the six months ended December 31, 2018, the turnover increased by 22.7% to HK$205,162,000 compared to HK$167,150,000 in the same period of 2017[2]. - The loss for the period was HK$47,907,000, representing a 73.6% increase from the loss of HK$27,598,000 in 2017[2]. - Basic loss per share increased by 82.8% to HK(4.26) cents from HK(2.33) cents in the previous year[2]. - Total comprehensive income for the period was a loss of HK$91,356,000, compared to a loss of HK$9,079,000 in the previous year[8]. - The total loss for the period was HK$47,907,000, compared to a loss of HK$27,598,000 in the same period last year, representing an increase of 73.8%[95]. - Loss attributable to the owners of the Company for the Period was approximately HK$48 million, representing an increase of 74% compared to the last corresponding period[184]. Revenue and Segment Performance - For the six months ended December 31, 2018, total revenue was HK$205,162,000, an increase of 22.7% compared to HK$167,150,000 for the same period in 2017[82]. - Revenue from heat supplying services was HK$124,392,000, a slight decrease of 1.1% from HK$126,731,000 in 2017[82]. - Sales of calcium carbide increased significantly to HK$66,594,000, up 88.7% from HK$35,280,000 in 2017[82]. - The beverage business generated revenue of HK$9,994,000, with no prior year comparison available[82]. - Segment profit for heat and power was HK$41,889,000, while calcium carbide reported a loss of HK$12,590,000[92]. - The heat and power division recorded revenue of HK$127 million from external customers, with income from residential users at approximately HK$115 million, a decrease of about 1% compared to the last corresponding period[192]. - The calcium carbide segment recorded revenue of HK$67 million from external customers, with a segment loss of approximately HK$13 million, a decrease of about 31% compared to the last corresponding period[197]. - The construction services division, acquired in January 2018, recorded revenue of HK$2 million and a segment loss of HK$2 million during the Period[199]. - The beverage division, acquired in October 2018, recorded revenue of HK$10 million and a segment loss of HK$2 million during the Period[200]. Assets and Liabilities - Non-current assets decreased to HK$2,719,372,000 from HK$2,819,057,000, indicating a reduction in long-term asset value[9]. - The company's total assets decreased to HK$3,101,839,000 from HK$3,176,789,000, reflecting a decline in overall asset base[9]. - Total equity as of December 31, 2018, decreased to HK$1,648,350, down from HK$1,676,915 as of June 30, 2018, representing a decline of approximately 1.7%[11]. - Total liabilities as of December 31, 2018, were HK$1,453,489, a decrease from HK$1,499,874 as of June 30, 2018, indicating a reduction of about 3.1%[11]. - The Group's financial assets and liabilities' carrying amounts approximate their fair values as of 31 December 2018[74]. Cash Flow and Financing Activities - Net cash used in operating activities for the six months ended December 31, 2018, was HK$80,315, compared to HK$58,533 for the same period in 2017, reflecting an increase in cash outflow of approximately 37.2%[16]. - Net cash generated from financing activities for the six months ended December 31, 2018, was HK$67,687, a decrease from HK$100,900 in the previous year, showing a decline of about 33%[16]. - Cash and cash equivalents at the end of the period were HK$71,212, an increase from HK$70,916 at the end of the previous year, showing a slight growth of about 0.4%[16]. - The company issued shares under a placement, raising HK$22,000 during the six months ended December 31, 2018[12]. - The carrying amount of bonds payable rose from HK$820,458,000 at the beginning of the period to HK$861,719,000 by December 31, 2018, indicating an increase of 5.0%[127]. - The total bank loans payable decreased from HK$97,775,000 on June 30, 2018, to HK$86,829,000 by December 31, 2018, a reduction of about 11.5%[133]. Accounting Policies and Standards - The Group adopted new and revised HKFRSs effective from July 1, 2018, which did not result in significant changes to accounting policies or financial statement presentation[28]. - HKFRS 15 was adopted, establishing a five-step model for revenue recognition, but it did not materially impact the Group's revenue recognition[24]. - HKFRS 9 was also adopted, introducing new requirements for classification and measurement of financial instruments, which resulted in adjustments to amounts recognized in financial statements[28]. - The adoption of new HKFRSs did not have a material impact on the amounts and disclosures reported in the interim financial statements[28]. - The Group's financial statements for the six months ended December 31, 2018, are unaudited and prepared in accordance with HKAS 34[18]. Legal and Contingent Liabilities - The Group has contingent liabilities amounting to approximately RMB42,700,000 related to a construction contract dispute[150]. - The Group's management has been seeking legal advice regarding the aforementioned dispute since December 2012[151]. - During the period, Mudanjiang BD Power was ordered by the Heilongjiang High Court to compensate approximately RMB 36,700,000 to the Plaintiff[153]. - The management has made sufficient provision for the legal action and believes a favorable settlement could be reached with the Plaintiff[154]. - The Company obtained a stay of execution of the Enforcement Order for 6 months, conditional upon paying a security sum of RMB 19,818,046[158]. Capital Expenditures and Commitments - Capital expenditure for the period was approximately HK$16.39 million, up from HK$10.11 million, reflecting a 62.0% increase[112]. - Capital commitments at the end of the reporting period include contracted but not provided for buildings and construction in progress amounting to HK$ 565,773,000[167].