沈阳公用发展股份(00747) - 2024 - 中期财报

Corporate Information This section provides an overview of the company's foundational details Management Discussion and Analysis This section provides a comprehensive review of the Group's financial performance, business operations, and future outlook FINANCIAL REVIEW The Group achieved a significant turnaround, reporting a pre-tax profit of RMB 1.86 million and substantial revenue growth to RMB 5.47 million, driven by infrastructure and property development income and asset disposal gains 2024 H1 Key Financial Indicators | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | Approx. RMB 5,465 thousand | RMB 744 thousand | | Profit (Loss) Before Tax | RMB 1,864 thousand | (RMB 4,632 thousand) | | Earnings (Loss) Per Share | Approx. RMB 0.0021 | Approx. (RMB 0.0026) | BUSINESS REVIEW The Group's business review highlights significant revenue from infrastructure construction and property development, alongside stable rental income from property investment and leasing activities Construction of Infrastructure and Development of Properties The core infrastructure construction segment recorded significant revenue from the completed Chaozhou Jingnan Industrial Park project, while the Shennongjia Hotel development progresses despite minor delays - The settlement of the China Real Estate Chaozhou Jingnan Industrial Park project was completed, recording approximately RMB 4.71 million in infrastructure construction business revenue for this period[11] - The Shennongjia Hotel project is under construction and is expected to be fully completed and begin decoration within the current year, though construction progress is slightly delayed due to restrictions on construction material transportation during the local peak tourist season[11] Property Investment and Leasing Business The Group's diversified property investment and leasing portfolio across multiple cities generated stable rental income, with plans for further operational expansion Rental Income | Period | Rental Income (RMB) | | :--- | :--- | | H1 2024 | 755,000 | | H1 2023 | 744,000 | - The Group currently owns 11 shop units and 60 parking spaces in Sanhe, one shop unit in Guangzhou, 125 offices in the Beijing Fangshan project, and one commercial property in Beijing Shunyi[13] BUSINESS PROSPECTS The Group anticipates future growth from advancing existing infrastructure projects and new ventures, including the Shennongjia Hotel, Shenzhen Dongchong Hotel, and Shenzhen amusement projects, expected to commence operations from H2 2024 to 2025 - The Shennongjia Hotel project is expected to commence operations in 2025, becoming the largest high-end hotel by room count within the scenic area[17][18] - The Shenzhen Dongchong Hotel project is undergoing renovation and is expected to be fully operational in 2025[17][18] - The amusement project (including indoor skiing, surfing, etc.) located in Shenzhen Shenyun Sports and Culture Park is undergoing decoration and is expected to officially commence operations in H2 2024[20][21] LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE The Group's financial position shifted to net current liabilities of RMB 58 million, impacting liquidity, while total assets and gearing ratio remained relatively stable Key Financial Ratios and Data | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | RMB 642,370,000 | RMB 632,689,000 | | Net Current (Liabilities) Assets | (RMB 57,995,000) | RMB 79,002,000 | | Cash and Cash Equivalents | RMB 7,890,000 | RMB 3,741,000 | | Current Ratio | 0.71x | 1.38x | | Gearing Ratio | 0.34x | 0.33x | MATERIAL ACQUISITION AND DISPOSAL OF SUBSIDIARIES AND ASSOCIATES The Group completed a significant asset disposal, recognizing gains from the sale of Chaozhou Rural Commercial Bank shares, while a long-standing Beijing property pre-acquisition remains in progress Pre-acquisition of property in Beijing PRC A 2016 pre-acquisition of a Beijing commercial property, though completed, is still pending finalization due to ongoing filing procedures - A Beijing property pre-acquisition transaction, initiated in 2016, although completed, is still undergoing completion filing procedures, and the transaction has not been finalized[25] Disposal of 0.19% of the Total Issued Share Capital of Chaozhou Rural Commercial Bank The Group completed the sale of a 0.19% stake in Chaozhou Rural Commercial Bank, recognizing a gain of approximately RMB 6.9 million from the disposal - The disposal of Chaozhou Rural Commercial Bank shares was completed on March 22, 2024, and a gain on disposal of approximately RMB 6.9 million from assets classified as held for sale was recognized in the profit or loss for this period[27] Other Financial and Operational Information This section details changes in employee numbers, a significant increase in capital commitments for property construction, and new litigation impacting a subsidiary's bank balances NUMBER OF EMPLOYEES, EMOLUMENTS The Group's employee count decreased to 44, with total salaries and emoluments amounting to RMB 2.802 million for the period Employee and Emolument Overview | Indicator | June 30, 2024 | Same Period 2023 | | :--- | :--- | :--- | | Number of Employees | 44 | 51 | | Total Salaries and Emoluments | RMB 2,802,000 | RMB 3,073,000 | CAPITAL COMMITMENTS Total capital commitments significantly increased to RMB 125.8 million, primarily driven by new construction costs for investment properties and other fixed assets - The Group's total capital commitments increased from approximately RMB 62.16 million at the end of 2023 to approximately RMB 125.8 million as of June 30, 2024, with the primary increase stemming from construction costs of investment properties[32] LITIGATION A subsidiary, China Real Estate Chaozhou, faces new litigation from subcontractors totaling RMB 8.28 million, resulting in the freezing of its bank balances - Subsidiary China Real Estate Chaozhou is facing litigation from subcontractors, involving a total amount of approximately RMB 8.28 million, leading to the freezing of corresponding bank balances for one year[34][35] Interim Financial Information This section presents the condensed consolidated interim financial statements, including key statements and explanatory notes Condensed Consolidated Statement of Profit or Loss The Group achieved a turnaround to a profit of RMB 1.86 million, driven by a significant increase in revenue and substantial other income from asset disposals Condensed Consolidated Statement of Profit or Loss Summary (RMB thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 5,465 | 744 | | Gross Profit | 1,305 | 702 | | Other Income | 8,741 | 1,911 | | Profit (Loss) Before Tax | 1,864 | (4,632) | | Profit (Loss) for the Period | 1,861 | (4,633) | | Profit (Loss) Attributable to Owners of the Company | 3,099 | (3,856) | Condensed Consolidated Statement of Financial Position The Group's total assets and equity slightly increased, with a shift to net current liabilities of RMB 58 million, reflecting changes in asset and liability structure Condensed Consolidated Statement of Financial Position Summary (RMB thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 500,031 | 344,283 | | Current Assets | 142,339 | 288,406 | | Total Assets | 642,370 | 632,689 | | Current Liabilities | 200,334 | 209,404 | | Net Current (Liabilities) Assets | (57,995) | 79,002 | | Net Assets | 424,689 | 422,849 | | Total Equity | 424,689 | 422,849 | Condensed Consolidated Statement of Cash Flows The Group's cash flow significantly improved, with net inflows from operating and investing activities, leading to an increase in cash and cash equivalents Cash Flow Statement Summary (RMB thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,218 | (106) | | Net Cash from Investing Activities | 6,090 | 7 | | Net Cash from Financing Activities | (4,138) | (346) | | Net Increase in Cash and Cash Equivalents | 4,170 | (445) | | Cash and Cash Equivalents at Period End | 7,890 | 6,087 | Notes to the Condensed Consolidated Financial Statements These notes provide detailed insights into the Group's financial performance, highlighting revenue sources and significant gains from asset disposals REVENUE AND OPERATING SEGMENTS The Group's total revenue of RMB 5.47 million was primarily driven by infrastructure construction and property development, though both operating segments recorded losses before head office expenses Segment Revenue and Results (RMB thousands) | Segment | H1 2024 Revenue | H1 2024 Results | | :--- | :--- | :--- | | Infrastructure Construction and Property Development | 4,710 | (254) | | Property Investment and Leasing Business | 755 | (3,017) | | Total | 5,465 | (3,271) | ASSETS CLASSIFIED AS HELD FOR SALE The successful disposal of Chaozhou Rural Commercial Bank shares, previously classified as held for sale, resulted in a recognized gain of approximately RMB 6.9 million - The disposal of Chaozhou Rural Commercial Bank shares was completed on March 22, 2024, and a gain on disposal of approximately RMB 6.9 million from assets classified as held for sale was recognized in the profit or loss[93][95] Other Information This section provides additional disclosures on corporate governance, substantial shareholders' interests, and other relevant information Corporate Governance and Dividends The company largely complied with corporate governance codes, with one exception regarding director insurance, and the board decided against an interim dividend - The company did not arrange insurance for directors related to legal proceedings as per Corporate Governance Code provision C.1.8[118][123] - The Board does not recommend the payment of an interim dividend for this period[122][127] SUBSTANTIAL SHAREHOLDERS' INTERESTS The company's substantial shareholder structure remained stable as of June 30, 2024, with Beijing Huaxia Ding Technology Co., Ltd. as the largest shareholder Substantial Shareholder Holdings (as of June 30, 2024) | Shareholder Name | Share Type | Holding Percentage | | :--- | :--- | :--- | | Beijing Huaxia Ding Technology Co., Ltd. | Domestic Shares | 28.58% | | Beijing Lichuang Future Technology Co., Ltd. | Domestic Shares | 12.25% | | Shenzhen Wanzhong Runlong Investment Co., Ltd. | Domestic Shares | 9.53% | | HKSCC Nominees Limited | H Shares | 40.80% | Glossary This section provides definitions for key terms and abbreviations used within the report