Financial Performance - The company reported a total revenue of HK$243 million for the period, reflecting a significant increase compared to the previous year[8]. - The net profit margin improved to 15%, up from 10% in the same period last year, indicating better cost management and operational efficiency[8]. - The company reported a revenue of RMB 1.2 billion for the six months ended June 30, 2022, representing a year-on-year increase of 15%[14]. - Revenue for the six months ended June 30, 2022, was RMB 172,731,000, representing a 17.6% increase from RMB 146,807,000 in the same period of 2021[22]. - The Group recorded a loss of approximately RMB 5.9 million during the Reporting Period, compared to a profit of approximately RMB 176.3 million in the first half of 2021[19]. - The profit for the period was calculated after deducting total staff costs of RMB 30,560,000, which increased from RMB 28,364,000 in 2021[150]. - The loss attributable to owners of the Company for the period was RMB (17,626,000), compared to a profit of RMB 168,076,000 for the same period in 2021, indicating a significant decline[157]. Revenue Guidance and Growth Targets - The company has set a revenue guidance of HK$500 million for the next fiscal year, representing a growth target of approximately 25%[8]. - The company has set a revenue guidance of RMB 2.5 billion for the next fiscal year, reflecting an expected growth of 25%[14]. - New product launches are anticipated to contribute an additional RMB 300 million in revenue over the next six months[14]. Market Expansion and Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[8]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[14]. - A strategic acquisition of a local competitor is being considered to enhance service offerings and operational capabilities[8]. - The company is exploring potential acquisitions to enhance its service offerings, with a budget of RMB 200 million earmarked for this purpose[14]. - A strategic partnership with local governments is expected to facilitate new project opportunities, potentially increasing project volume by 30%[14]. Research and Development - New product development initiatives are underway, with an investment of HK$50 million allocated for R&D in environmental protection technologies[8]. - Ongoing research and development efforts are focused on sustainable dredging technologies, with an investment of RMB 50 million allocated for 2022[14]. - The company is exploring partnerships with technology firms to integrate advanced analytics into its service delivery[8]. Cost Management and Operational Efficiency - The company aims to reduce operational costs by 10% through improved supply chain management and efficiency measures[8]. - The Group's operating costs increased by 10.0% to approximately RMB 144.3 million during the Reporting Period[29]. - The Group aims to improve operational efficiency by 15% through the implementation of advanced technologies in its processes[14]. - Marketing and promotion expenses decreased by 86.2% from approximately RMB 2.5 million to approximately RMB 0.3 million due to tightened cost control[32]. - Administrative expenses decreased by 34.3% from approximately RMB 24.1 million to approximately RMB 15.9 million, attributed to enhanced cost control measures[32]. Financial Position and Liabilities - Total equity as of June 30, 2022, amounted to approximately RMB 1,154.8 million, a slight decrease from approximately RMB 1,160.7 million as of December 31, 2021[33]. - Total liabilities were approximately RMB 1,047.0 million, representing a decrease of about 5.6% compared to the corresponding period last year[33]. - The Group's bank borrowings were secured by charges over certain dredgers and land owned by the Group, along with personal guarantees from key individuals[37]. - The Group's cash flow projections cover a period of not less than twelve months from the end of the reporting period, indicating a focus on future liquidity[102]. Shareholder Information and Corporate Governance - The Group issued and allotted 508,240,000 consolidated shares at a price of HK$0.20 per share, raising gross proceeds of approximately HK$101.6 million[36]. - The Company has determined that no interim dividend will be paid for the reporting period, consistent with the previous year[72]. - The Company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[66]. - All Directors confirmed compliance with the Model Code regarding securities dealings during the reporting period[81]. Segment Performance - The CRD Business segment generated revenue of approximately RMB 47.7 million, representing a 25.9% increase compared to the same period in 2021[24]. - The EPD and Water Management Business segment saw revenue decrease by 75.5% to approximately RMB 4.8 million due to fewer projects launched[25]. - Other Marine Business contributed approximately RMB 116.6 million in revenue, marking a 36.4% increase compared to the same period in 2021[29]. - Revenue from the Capital and Reclamation Dredging Business was RMB 47,708,000, up from RMB 37,896,000, indicating a growth of 26.5% year-over-year[106]. - Environmental Protection Dredging and Water Management Business revenue decreased to RMB 4,774,000 from RMB 19,457,000, a decline of 75.5%[106]. - Other Marine Business revenue increased to RMB 116,645,000 from RMB 85,542,000, representing a growth of 36.4%[106].

Financial Performance - The company reported a total revenue of HK$243 million for the year, with a significant increase compared to the previous year[9]. - The company's revenue for 2021 was RMB 387,389,000, representing a 35.3% increase from RMB 286,341,000 in 2020[17]. - For the financial year 2021, the Group recorded total revenue of approximately RMB 387.4 million, representing an increase of 35.3% compared to RMB 286.3 million in 2020[30]. - The net profit for 2021 was RMB 41,255,000, a significant recovery from a net loss of RMB 537,364,000 in 2020[17]. - The net profit for the Reporting Period was approximately RMB 41.3 million, a significant recovery from a net loss of approximately RMB 537.4 million in 2020[46]. - The Group achieved a gross profit of approximately RMB 34.9 million in 2021, compared to a gross loss in 2020[30]. - The profit attributable to owners of the company was RMB 22,593,000 in 2021, compared to a loss of RMB 526,583,000 in 2020[17]. - The Group's operating cost increased by about 6.8%, from approximately RMB329.9 million in 2020 to approximately RMB352.5 million in 2021[42]. Future Outlook and Growth Strategies - Future outlook includes an expected revenue growth of 20% for the next fiscal year, driven by new project acquisitions[2]. - Market expansion plans include entering two new provinces in China by the end of the next fiscal year[2]. - The company is considering strategic acquisitions to enhance its service offerings and market presence[2]. - The Group aims to leverage opportunities from the rapid development of China's offshore wind power industry to participate in more wind power construction projects[31]. - The Group plans to stabilize projects, teams, and management systems as a top priority for the upcoming year[31]. Operational Efficiency and Investments - The company is investing in new technology development, with a budget allocation of HK$50 million for R&D initiatives[2]. - The company plans to enhance its operational efficiency by implementing advanced dredging technologies[2]. - The Group invested RMB 230 million in a 2,300-ton self-propelled fixed-crane vessel to capitalize on the rapid development of marine wind power constructions in mainland China[59]. Corporate Governance and Management - The board emphasized the importance of corporate governance and compliance with the latest regulations[2]. - The company has a strong governance structure with independent non-executive directors contributing to strategic oversight[92]. - The Company has complied with all applicable code provisions under the Corporate Governance Code[113]. - The Board is committed to maintaining good corporate governance practices and procedures[112]. - The Company has established a remuneration committee responsible for reviewing the remuneration policy and structure for Directors and senior management, with no changes proposed during the Review Period[146][148]. Risk Management and Internal Controls - The risk management and internal control systems are designed to safeguard the Group's assets and ensure compliance with relevant regulations, although they can only provide reasonable assurance against material misstatement or loss[186]. - The Group's internal control systems are reviewed at least annually to ensure their effectiveness in managing risks[185]. - The Audit Committee reviewed key risk management and internal control issues identified by the external auditor, concluding that the systems are reasonably and adequately implemented with room for improvement[192]. Employee and Operational Insights - As of December 31, 2021, the Group had 522 employees, an increase from 454 in 2020, with total staff costs amounting to approximately RMB 56.7 million[68]. - The ongoing impact of COVID-19 has caused significant disruptions, including delays in project schedules and increased construction costs[30]. - The construction efficiency of various projects has decreased due to the pandemic, posing risks and pressures on the Group's operations[30]. Shareholder Communication and Meetings - The annual general meeting for the year ended December 31, 2020, was held on June 17, 2021, providing a platform for direct communication between the Board and Shareholders[199]. - The Company communicates with Shareholders through annual reports, interim reports, and statutory announcements[194]. - Resolutions at general meetings are taken by poll, with results posted on the Stock Exchange and Company's websites on the same day[199].

Financial Performance - The company reported a revenue of RMB 1.2 billion for the six months ended June 30, 2021, representing a year-on-year increase of 15%[29]. - The Group recorded a profit of approximately RMB 176.3 million for the reporting period, compared to a loss of approximately RMB 73.7 million in the first half of 2020, with profit attributable to shareholders at approximately RMB 168.1 million[54]. - Revenue for the six months ended June 30, 2021, increased to RMB 146,807,000, up 22.5% from RMB 119,935,000 in 2020[153]. - Gross profit for the same period was RMB 15,633,000, compared to a loss of RMB 14,571,000 in 2020, indicating a significant turnaround[153]. - Profit before tax reached RMB 181,213,000, a substantial increase from a loss of RMB 73,187,000 in the previous year[153]. - Total comprehensive income for the period was RMB 176,345,000, compared to a loss of RMB 73,677,000 in 2020[153]. - Basic earnings per share for the period was RMB 13.41, recovering from a loss of RMB 8.00 per share in 2020[153]. Revenue Segmentation - Revenue from the Capital and Reclamation Dredging (CRD) Business segment was approximately RMB 37.9 million, representing an increase of 30.5% from the corresponding period in 2020, primarily due to effective COVID-19 control in mainland China[62]. - The Environmental Protection Dredging and Water Management Business segment saw increased revenue due to the smooth progress of certain environmental protection dredging projects during the reporting period[55]. - The Environmental Dredging and Water Management segment generated revenue of approximately RMB 19.5 million, marking a significant increase of 488.9% compared to the same period in 2020[67]. - Other Marine Business contributed approximately RMB 85.5 million in revenue, reflecting a 2.5% increase from the previous year[68]. - The Property Management Business recorded revenue of approximately RMB 3.9 million, a decrease of 5.7% compared to approximately RMB 4.1 million in the same period of 2020[68]. Cost Management and Financial Position - The Group's operating costs slightly decreased by 2.5% from approximately RMB 134.5 million to approximately RMB 131.2 million[69]. - Administrative expenses decreased by 12.1% to approximately RMB 24.1 million, down from approximately RMB 27.5 million in the same period last year[78]. - Finance costs decreased by 32.6% to approximately RMB 17.4 million compared to the corresponding period last year[78]. - The Group's net current liabilities decreased to approximately RMB 317.8 million from RMB 557.4 million as of December 31, 2020, resulting in a current ratio of 0.65[82]. - Total liabilities as of June 30, 2021, were approximately RMB 1,158.7 million, a decrease of about 15.5% compared to the same period last year[82]. - The Group's gearing ratio improved to 43.9% from 74.2% as of December 31, 2020, primarily due to the redemption of Bonds during the Reporting Period[82]. Strategic Initiatives and Future Outlook - The company expects a revenue growth of 10-15% for the next fiscal year, driven by increased demand in environmental protection projects[29]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in regional contracts by 2023[29]. - A strategic acquisition of a local competitor is under consideration to enhance market share and operational capabilities[29]. - The Group plans to launch a newly built 2300-ton self-propelled fixed crane vessel for the marine wind-powered market in the second half of the year to capitalize on business opportunities in this sector[61]. - The management emphasized a focus on sustainable practices, aiming for a 25% reduction in carbon emissions by 2025[29]. Shareholder and Capital Structure - The Company issued 508,240,000 consolidated Shares at a price of HK$0.20 per share, raising gross proceeds of approximately HK$101.6 million[87]. - Approximately HK$98.4 million of the net proceeds from the share issuance was used to fully redeem Bonds, with the remaining balance of approximately HK$1.2 million allocated for general working capital[87]. - The 2021 Share Option Scheme was adopted on June 17, 2021, allowing for the issuance of up to 150,388,150 shares, which is 10% of the total shares in issue[129]. - The registered capital of Jiangsu Xingyu is RMB39,315,800[116]. Operational Challenges - The Group's overseas construction projects faced significant delays and impacts on production output due to the pandemic, despite domestic projects resuming normal operations[55]. - The Group continues to explore dredging projects in Indonesia, Bangladesh, Myanmar, and Thailand, despite challenges posed by the pandemic in these regions[55]. - The Group's construction projects in mainland China are expected to remain stable due to effective pandemic control and economic recovery[102]. Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[138]. - The Audit Committee reviewed the unaudited consolidated results for the reporting period prior to recommending them to the Board for approval[138]. - The Remuneration Committee is responsible for reviewing the remuneration packages of all executive Directors and senior management[141]. - The Nomination Committee assessed the independence of the independent non-executive Directors as part of its responsibilities[141].

Financial Performance - The company reported a total revenue of HK$243 million for the year 2020, reflecting a significant increase compared to the previous year[8]. - The net profit for the year was HK$50 million, representing a profit margin of approximately 20.6%[8]. - Revenue for the year ended December 31, 2020, was RMB 286,341,000, a decrease of 35.3% compared to RMB 442,368,000 in 2019[17]. - Net loss attributable to owners of the company for 2020 was RMB 526,583,000, compared to a loss of RMB 517,586,000 in 2019[17]. - The Group recorded total revenue of approximately RMB 286.3 million for the fiscal year 2020, a decrease of 35.3% from approximately RMB 442.4 million in the fiscal year 2019[32]. - The net loss for the Reporting Period was approximately RMB 537.4 million, an increase of about 3.0% compared to a net loss of approximately RMB 522.0 million for the year ended 31 December 2019[53]. - The Group's total equity was reported at (RMB 56,229) in 2020, down from RMB 400,343 in 2019[22]. - The Group's bank balances and cash were reported at RMB 119,000 in 2020, a decrease from RMB 128,000 in 2019[22]. - The Group's share capital was RMB 167,914 in 2020, with reserves showing a deficiency of (RMB 224,143)[22]. Operational Challenges - The Group faced unprecedented risks and pressures due to the COVID-19 pandemic, resulting in delays and increased construction costs[30]. - The pandemic's impact on operations was significant, with disruptions occurring both domestically and internationally throughout the year[41]. - The Group's dredging business revenue was significantly impacted by the COVID-19 pandemic, while the property rental services of the Xingyu International Houseware Plaza were less affected[69]. - The outbreak of COVID-19 disrupted the Group's operations, leading to a forced suspension of local operations until late March to early April 2020[61]. - The Group faced significant operational challenges due to the COVID-19 pandemic, impacting project progress and leading to a net loss of approximately RMB 537.4 million for the year[32]. Strategic Initiatives - The company plans to invest HK$100 million in R&D for new environmental protection technologies over the next three years[8]. - Future guidance estimates a revenue growth of 15% for the upcoming fiscal year, driven by new project acquisitions and market expansion[8]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market presence[8]. - The Group aims to stabilize projects, teams, and management systems as a top priority for the current year while seeking opportunities in the rapidly developing offshore wind power industry in China[34]. - The Group plans to participate in more wind power construction projects to establish a solid foundation for future development[35]. Governance and Management - The company has a diverse board with members holding various qualifications in economics, engineering, and management[117]. - The management team has a strong background in both public and private sectors, contributing to strategic decision-making[117]. - The Group's chief financial officer, Mr. Xu Wenyue, oversees daily accounting and financial matters in both the PRC and Hong Kong[126]. - The Company has adopted a Model Code for Directors' securities transactions, ensuring compliance with required standards throughout the Review Period[140]. - The Board of Directors consists of three executive directors and three independent non-executive directors, ensuring a balanced composition[146]. Shareholder Actions - The company completed a share consolidation on March 9, 2021, consolidating every two HK$0.10 shares into one HK$0.20 share, resulting in an authorized share capital of HK$1,000,000,000 divided into 5,000,000,000 shares[79]. - The company issued 508,240,000 new consolidated shares at a price of HK$0.20 per share on March 30, 2021, representing approximately 33.80% of the issued share capital[81]. - The gross proceeds from the share issuance were approximately HK$101.6 million, with net proceeds of approximately HK$99.6 million, used primarily to redeem bonds[81]. - The company redeemed bonds amounting to HK$98,359,241 on March 30, 2021, as part of the bond settlement agreement[84]. - The remaining balance of approximately HK$1.2 million from the share issuance was allocated for general working capital[81].

Corporate Information The report provides key corporate information including the Board of Directors, various committees, authorized representatives, legal advisors, auditors, principal bankers, and registered address - The report provides key corporate information including the Board of Directors, various committees (Audit, Remuneration, Nomination), authorized representatives, legal advisors, auditors, principal bankers, and registered address, with Executive Directors including Chairman Mr. Liu Kaijin and CEO Mr. Wu Xuzhe[4](index=4&type=chunk)[7](index=7&type=chunk) Management Discussion and Analysis [Business Review](index=7&type=section&id=Business%20Review) The Group's net loss significantly expanded to approximately RMB 73.7 million due to the severe impact of the COVID-19 pandemic on dredging and property management businesses 2020 Half-Year Key Performance Indicators | Indicator | H1 2020 | H1 2019 | | :--- | :--- | :--- | | **Net Loss** | Approx. RMB 73.7 million | Approx. RMB 25.3 million | | **Loss Attributable to Owners of the Company** | Approx. RMB 74.1 million | Approx. RMB 27.03 million | - The COVID-19 pandemic was the primary cause of performance decline, leading to **domestic projects halting** from January 2020 and **overseas projects (Bangladesh, Cambodia, Thailand) experiencing multiple interruptions and prolonged shutdowns** due to restricted personnel and material flow[18](index=18&type=chunk) - To capitalize on offshore wind power construction opportunities, the Group plans to invest **RMB 230 million** in a 2,300-ton self-propelled crane vessel, expected for delivery by the end of April next year[20](index=20&type=chunk) - The property management business (Xingyu International Home Furnishing Plaza) was minimally affected by the pandemic, with approximately 47 tenants, while a hotel under construction in Yancheng remains unfinished due to funding issues[20](index=20&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) Total revenue declined by 55.7% to RMB 119.9 million, resulting in a gross loss of RMB 14.6 million and an expanded loss for the period of RMB 73.7 million, increasing financial pressure and net current liabilities Revenue Performance by Business Segment (Six Months Ended June 30) | Business Segment | 2020 Revenue (RMB) | 2019 Revenue (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Infrastructure and Reclamation Dredging | RMB 29 million | Approx. RMB 80.7 million | -64.0% | | Environmental Dredging and Water Management | RMB 3.3 million | Approx. RMB 29.55 million | -88.8% | | Other Marine Business | RMB 83.4 million | Approx. RMB 155.6 million | -46.4% | | Property Management | RMB 4.1 million | RMB 4.6 million | -9.4% | | **Total** | **RMB 119.9 million** | **RMB 270.4 million** | **-55.7%** | Profitability Analysis (Six Months Ended June 30) | Indicator | 2020 (RMB) | 2019 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Costs | RMB 134.5 million | RMB 240 million | -43.9% | | Gross (Loss)/Profit | (RMB 14.6 million) | RMB 30.5 million | Turned from profit to loss | | Overall Gross (Loss)/Profit Margin | -12.1% | 11.3% | -23.4 percentage points | | Loss for the Period | (RMB 73.7 million) | (RMB 25.3 million) | +191.8% | | Loss Per Share | RMB 0.042 | RMB 0.015 | +180.0% | Key Financial Position Indicators (As of June 30, 2020) | Indicator | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Equity | RMB 1.484 billion | RMB 1.563 billion | | Net Current Liabilities | RMB 352 million | RMB 283 million | | Current Ratio | 0.70 | 0.76 | | Debt-to-Equity Ratio | 45.8% | 43.2% | - Capital commitments significantly increased from **RMB 66.2 million** at the end of 2019 to **RMB 277.5 million**, primarily for the construction of a 2,300-ton self-propelled crane vessel[33](index=33&type=chunk) [Prospects](index=14&type=section&id=Prospects) The Group will adopt prudent operating strategies, strengthen risk control, and actively seek stable financing solutions to support business development and redeem maturing bonds amidst ongoing uncertainties - Operating Strategy: Adopt a prudent approach, effectively control operational risks, and accelerate the collection of trade receivables[34](index=34&type=chunk) - Capital Strategy: Actively seek and implement feasible financing solutions to optimize the capital structure for business development, while continuing to raise additional funds to redeem relevant bonds[34](index=34&type=chunk) Disclosure of Interests and Other Information [Directors' and Chief Executive's Interests](index=15&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests) The report details directors' and chief executive's shareholdings, with Chairman Mr. Liu Kaijin holding approximately 19.61% of shares directly and through a controlled corporation Directors' Shareholdings (As of June 30, 2020) | Director Name | Capacity | Number of Shares Held (Long Position) | Approximate Percentage of Shares Held | | :--- | :--- | :--- | :--- | | Mr. Liu Kaijin | Controlled Corporation Interest & Beneficial Owner | 387,159,000 | 19.61% | | Ms. Zhou Shuhua | Spouse's Interest | 387,159,000 | 19.61% | [Substantial Shareholders' Interests](index=17&type=section&id=Substantial%20Shareholders%27%20Interests) Beyond directors, the report identifies other substantial shareholders including Wangji Limited, Mr. Yuan Xiangbing, and Jiangsu Best Environmental Engineering Co., Ltd Substantial Shareholders' Shareholdings (As of June 30, 2020) | Shareholder Name | Number of Shares Held (Long Position) | | :--- | :--- | | Wangji Limited | 351,600,000 | | Yuan Xiangbing | 191,917,000 | | Jiangsu Best Environmental Engineering Co., Ltd. | 148,180,000 | [Share Option Scheme](index=18&type=section&id=Share%20Option%20Scheme) The company granted 17,000,000 share options to employees at an exercise price of HKD 0.10 per share, which remained unexercised, cancelled, or lapsed by period-end - On January 20, 2020, a total of **17,000,000 share options** were granted to employees[54](index=54&type=chunk) Details of Granted Share Options | Indicator | Content | | :--- | :--- | | Grant Date | January 20, 2020 | | Exercise Price | HKD 0.10/share | | Closing Price Before Grant Date | HKD 0.071/share | | Exercise Period | January 20, 2020 – January 19, 2021 | [Corporate Governance and Other Information](index=19&type=section&id=Corporate%20Governance%20and%20Other%20Information) The company complied with corporate governance codes, with voluntary salary reductions by executive directors, audit committee review, and no interim dividend declared - Effective June 1, 2020, Executive Directors Mr. Liu Kaijin and Ms. Zhou Shuhua voluntarily reduced their annual director salaries and were simultaneously appointed as general manager and deputy general manager of the company's subsidiaries, receiving corresponding remuneration[59](index=59&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial statements for the reporting period[59](index=59&type=chunk) - The Board of Directors decided not to declare an interim dividend for the six months ended June 30, 2020[61](index=61&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue decreased by 55.7% to RMB 119.9 million, resulting in a gross loss of RMB 14.57 million and a total loss for the period of RMB 73.68 million Statement of Profit or Loss Summary (Six Months Ended June 30, RMB '000) | Item (RMB '000) | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Revenue | 119,935 | 270,433 | | Operating Costs | (134,506) | (239,952) | | **Gross (Loss)/Profit** | **(14,571)** | **30,481** | | Loss Before Tax | (73,187) | (23,143) | | **Total Loss for the Period** | **(73,677)** | **(25,253)** | | Loss Attributable to Owners of the Company | (74,083) | (27,030) | | Basic Loss Per Share (RMB cents) | (4.16) | (1.5) | [Condensed Consolidated Statement of Financial Position](index=23&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets were RMB 2.745 billion, total liabilities RMB 1.261 billion, and total equity RMB 1.484 billion, with net current liabilities of RMB 352 million indicating short-term solvency pressure Statement of Financial Position Summary (RMB '000) | Item | June 30, 2020 (Unaudited) | December 31, 2019 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 1,937,224 | 1,970,896 | | Current Assets | 807,866 | 876,272 | | **Total Assets** | **2,745,090** | **2,847,168** | | Current Liabilities | 1,159,854 | 1,159,452 | | Non-current Liabilities | 101,240 | 124,542 | | **Total Liabilities** | **1,261,094** | **1,283,994** | | **Total Equity** | **1,483,996** | **1,563,174** | | **Net Current Liabilities** | **(351,988)** | **(283,180)** | [Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities significantly improved to RMB 53.11 million, while investing and financing activities resulted in net outflows, with period-end cash at RMB 25.97 million Cash Flow Statement Summary (Six Months Ended June 30, RMB '000) | Item (RMB '000) | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 53,110 | 5,085 | | Net Cash Used in Investing Activities | (16,245) | (11,420) | | Net Cash Used in Financing Activities | (23,509) | (26,431) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **13,356** | **(32,766)** | | Cash and Cash Equivalents at Beginning of Period | 12,612 | 48,435 | | **Cash and Cash Equivalents at End of Period** | **25,968** | **15,669** | [Notes to the Condensed Consolidated Financial Statements](index=28&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight significant going concern uncertainties due to overdue bonds and net current liabilities, detailing bond default and substantial impairment provisions for long-aged trade receivables - **Significant Uncertainties Related to Going Concern**: Note 2 discloses the company's failure to repay bonds due on December 20, 2019, and net current liabilities of **RMB 352 million** as of June 30, 2020, indicating significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern, though management believes it can continue through cost control, bank loan renewals, and bondholder negotiations[87](index=87&type=chunk)[90](index=90&type=chunk) - **Default on Bonds Payable**: Note 20 details that the company failed to repay CITIC bonds due on December 20, 2019, with the total outstanding amount, including accrued interest, approximately **HKD 339.5 million (approximately RMB 309.7 million)** as of June 30, 2020, and discussions with bondholders for repayment arrangements are ongoing as of the report date[208](index=208&type=chunk)[211](index=211&type=chunk) - **Trade Receivables Risk**: Note 15 indicates net trade receivables of **RMB 700 million** as of June 30, 2020, with a high proportion of amounts overdue for more than one year, and the company has made significant credit loss provisions totaling **RMB 989 million**[171](index=171&type=chunk)[179](index=179&type=chunk)

中國疏浚環保控股有限公司 China Dredging Environment Protection Holdings Limited (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號: 871 Annual Report 年報 2019 Contents 目錄 | --- | --- | --- | |-------|-------|------------------------------------------------------------------| | | | | | | | | | | | | | | 2 | Corporate Information | | | | 公司資料 | | | 5 | Definitions 釋義 | | | 8 | Financial Summary | | | 10 | 財務概要 Group Chart | | | | 集團架構 | | | 11 | Chairman's Statement 主席報告 | | | 14 ...

中國疏浚環保控股有限公司 | (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號: 871 中期報告 INTERIM REPORT | --- | --- | --- | --- | --- | |-------|------------------------------------------------------|-------|-------|-----------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CONTENTS 目錄 | | | | | 2 | Corporate Information 公司資料 | 21 | | Condensed Cons ...

Financial Performance - The company reported a total revenue of HK$243 million for the year ended December 31, 2018, reflecting a significant increase compared to the previous year[15]. - The company's revenue for 2018 was RMB 618,833,000, a decrease of 4.9% from RMB 650,924,000 in 2017[32]. - The net loss for 2018 was RMB 254,495,000, compared to a profit of RMB 72,204,000 in 2017, indicating a significant decline in profitability[32]. - The company reported a net profit margin of 12%, which is an improvement from the previous year's margin of 10%[15]. - The Group recorded operating revenue of approximately RMB 618.8 million, a decrease of 4.9% compared to the previous year, and gross profit of approximately RMB 121.7 million, down 41.3%[115]. - The Group's operating cost increased by about 12.1% to approximately RMB497.1 million during the Reporting Period from RMB443.6 million for the year ended December 31, 2017[61]. - Gross profit decreased by about 41.3% to approximately RMB121.7 million, with the gross profit margin dropping from 31.9% to 19.7%[63]. - The Group's total liabilities as of December 31, 2018, were approximately RMB 1,260.5 million, with a gearing ratio of 32.0%, slightly up from 28.5% in 2017[103]. Strategic Initiatives - Future outlook includes plans to enhance operational efficiency and expand into new markets, aiming for a 20% increase in market share over the next fiscal year[15]. - The company is investing in new product development, with a budget allocation of HK$50 million for research and innovation initiatives[15]. - A strategic acquisition is in progress, targeting a company that will complement existing operations and is expected to contribute an additional HK$30 million in annual revenue[15]. - The Group is actively expanding its business into overseas markets, including Southeast Asia, having dispatched several large dredgers to Bangladesh, Cambodia, and Thailand for various dredging projects in 2018[45]. - The Group plans to seek feasible fundraising plans and aims to redeem its bonds by the end of the year as scheduled[47]. - The Group is committed to participating in wind power construction projects to establish a solid foundation for future development in the marine business[45]. Environmental Focus - The company is focusing on environmental sustainability, with plans to implement new technologies that reduce operational carbon footprint by 25%[15]. - The Group has been focusing on expanding its environmental protection equipment business, which is expected to drive future growth[36]. - The "Easyhome Yancheng Shopping Mall" project is expected to become a medium to long-term stable source of income, providing cash flow support for the Group's environmental protection dredging business[45]. Governance and Management - The board emphasized the importance of corporate governance and compliance, with ongoing training programs for all directors and management[15]. - The company has a diverse board with members having extensive backgrounds in investment management, accounting, and corporate finance[145][147]. - The independent non-executive directors provide adequate checks and balances within the Group[177]. - The Company has complied with all applicable code provisions under the Corporate Governance Code[166]. - The Group's governance structure is designed to support strategic growth and operational excellence through experienced leadership[154]. - The management team has a strong focus on administrative efficiency and strategic oversight within the organization[142][145]. Operational Challenges - The Group anticipates that 2019 will remain a challenging year, focusing on a conservative approach to select and seize opportunities while addressing various difficulties[47]. - The decrease in revenue was primarily due to the slowdown in the implementation of construction projects in the dredging industry in China and a more prudent project selection policy[115]. - The Group's core business, the CRD Business, faced revenue declines due to increased volatility in new project conditions and uncertainties in receivables collection[116]. - The Group is actively developing the EPD and Water Management Business segment, although revenue decreased due to slow progress in environmental protection dredging projects[123]. Employee and Labor Relations - As of December 31, 2018, the Group employed 567 staff, with total staff costs of approximately RMB 58.6 million, an increase from RMB 50.0 million in 2017[132]. - There were no significant labor disputes or difficulties in hiring qualified employees during the review year[134]. - The total employee cost for the reporting period was approximately RMB 58,600,000, an increase from RMB 50,000,000 in 2017[133]. Financial Management - The Group recognized a foreign exchange loss of approximately RMB 14.7 million during the reporting period, compared to a gain of approximately RMB 18.7 million for the year ended December 31, 2017[84]. - Income tax expenses decreased from approximately RMB 39.0 million for the year ended December 31, 2017, to about RMB 22.2 million during the reporting period[86]. - The Group's administrative expenses during the reporting period were approximately RMB 52.1 million, a slight decrease of about 6.0% compared to RMB 55.4 million for the year ended December 31, 2017, mainly due to management cost reductions[83].