Company Overview - Yunnan Water Investment Co., Limited is a joint stock limited liability company established in the PRC, with H Shares listed on the Main Board of the Stock Exchange (stock code: 6839)[5] - The company's headquarters and principal place of business in the PRC is located at 2089 Haiyuan Bei Road, Gaoxin District, Kunming, Yunnan[3] - The principal place of business in Hong Kong is Suite 3110–11, 31/F, Tower 1, The Gateway, Harbour City, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong[3] - The company's principal bankers include Industrial Bank Co., Ltd., China Development Bank, Agricultural Bank of China Limited, and China Construction Bank Corporation[4] - The auditor of the company is Moore CPA Limited, located at 801-806 Silvercord Tower 1, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong[4] - The company's website is http://www.yunnanwater.cn[4] - The company's legal advisers include Jingtian & Gongcheng LLP for Hong Kong law and DeHeng Law Offices (Kunming) for PRC law[3] - The company's H Share registrar in Hong Kong is Tricor Investor Services Limited, located at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong[3] Board of Directors - The company's executive directors include Mr. Zheng Guangfeng (Vice Chairman, General Manager), Mr. Liu Hui, and Mr. Zhou Zhimi[2] - The company's non-executive directors include Mr. Mei Wei (Chairman), Mr. Dai Richeng, and Mr. Chen Yong[2] - Mr. Zheng Guangfeng was appointed as General Manager and Vice Chairman of the Board effective from 27 March 2024[40] - Mr. Liu Jianjun resigned as General Manager and executive Director effective from 27 March 2024 and 5 June 2024 respectively[40] Financial Performance - Revenue for the six months ended 30 June 2024 decreased by 15.90% to RMB 1,242,466 thousand compared to RMB 1,477,335 thousand in the same period in 2023[8] - Gross profit for the six months ended 30 June 2024 decreased by 32.36% to RMB 201,184 thousand compared to RMB 297,451 thousand in the same period in 2023[8] - Loss before income tax for the six months ended 30 June 2024 increased by 259.38% to RMB (880,192) thousand compared to RMB (244,920) thousand in the same period in 2023[8] - EBITDA for the six months ended 30 June 2024 decreased by 74.74% to RMB 159,734 thousand compared to RMB 632,474 thousand in the same period in 2023[8] - Loss attributable to ordinary shareholders of the Company for the six months ended 30 June 2024 increased by 286.47% to RMB (743,144) thousand compared to RMB (192,289) thousand in the same period in 2023[8] - Basic loss per share for the six months ended 30 June 2024 increased by 286.96% to RMB (0.623) compared to RMB (0.161) in the same period in 2023[8] - Revenue decreased by 15.9% to RMB1,242.5 million compared to RMB1,477.3 million in the same period last year[20] - Net loss increased to RMB923.9 million from RMB248.8 million in the previous year[20] - Wastewater treatment segment revenue decreased by 29.3% to RMB544.9 million[20] - Water supply segment revenue increased by 5.3% to RMB370.2 million[20] - Solid waste treatment segment revenue decreased by 2.3% to RMB261.1 million[20] - Cost of sales and services decreased by 11.8% to RMB1,041.3 million[22] - Gross profit margin decreased by 3.9% to 16.2%[25] - Other income decreased by 73.5% to RMB26.7 million[25] - Selling expenses decreased by RMB3.8 million (20.8%) to RMB14.5 million compared to the previous period[26] - Administrative expenses increased by RMB60.0 million (37.1%) to RMB221.8 million, primarily due to impairment of long-term assets[26] - Net finance costs increased by RMB125.1 million (25.5%) to RMB616.7 million, driven by exchange loss and higher borrowing costs[26] - The average interest rate on borrowings rose to 3.76% per annum from 3.40% per annum[26] - Loss before income tax increased to RMB880.2 million from RMB244.9 million in the previous period[26] - Income tax expenses rose to RMB43.8 million from RMB3.9 million[26] - Net loss increased by RMB675.1 million to RMB923.9 million[26] - Receivables under service concession arrangements decreased by RMB172.2 million (2.3%) to RMB7,187.9 million[27] - Total cash balance decreased by RMB174.0 million (19.4%) to RMB725.2 million[27] - Borrowings totaled RMB31,013.5 million, with RMB18,123.5 million unsecured and RMB12,890.0 million secured[27] - The Group's capital commitments increased by approximately RMB246.7 million, from RMB7,267.5 million as at 31 December 2023 to RMB7,514.2 million as at 30 June 2024, representing an increase of approximately 3.4%[28] - The Group's gearing ratio increased from approximately 89.71% as at 31 December 2023 to approximately 92.29% as at 30 June 2024, representing an increase of approximately 2.58%[28] - No significant investments and acquisitions activities occurred during the Reporting Period[28] - Revenue for the six months ended 30 June 2024 decreased to RMB 1,242,466 thousand from RMB 1,477,335 thousand in the same period in 2023, representing a decline of 15.9%[54] - Gross profit for the six months ended 30 June 2024 was RMB 201,184 thousand, down from RMB 297,451 thousand in the same period in 2023, a decrease of 32.4%[54] - Operating loss for the six months ended 30 June 2024 was RMB 289,385 thousand, compared to an operating profit of RMB 222,598 thousand in the same period in 2023[54] - Loss before income tax for the six months ended 30 June 2024 was RMB 880,192 thousand, significantly higher than the loss of RMB 244,920 thousand in the same period in 2023[54] - Loss for the period ended 30 June 2024 was RMB 923,942 thousand, compared to a loss of RMB 248,816 thousand in the same period in 2023[54] - Total comprehensive expense for the period ended 30 June 2024 was RMB 930,572 thousand, compared to RMB 283,155 thousand in the same period in 2023[54] - Loss attributable to ordinary shareholders of the Company for the six months ended 30 June 2024 was RMB 743,144 thousand, compared to RMB 192,289 thousand in the same period in 2023[55] - Basic and diluted loss per share for the six months ended 30 June 2024 was RMB 0.623, compared to RMB 0.161 in the same period in 2023[55] - Total assets as of 30 June 2024 were RMB 46,241,039 thousand, slightly down from RMB 46,844,467 thousand as of 31 December 2023[57] - Property, plant and equipment as of 30 June 2024 decreased to RMB 4,155,807 thousand from RMB 4,257,167 thousand as of 31 December 2023[57] - Total equity decreased to RMB 2,531,246,000 from RMB 3,451,455,000 at the end of 2023[58] - Accumulated losses increased to RMB (2,496,195,000) from RMB (1,753,051,000) at the end of 2023[58] - Non-current liabilities decreased to RMB 27,588,168,000 from RMB 31,351,166,000 at the end of 2023[58] - Current liabilities increased to RMB 43,709,793,000 from RMB 43,393,012,000 at the end of 2023[59] - Total liabilities slightly increased to RMB 43,709,793,000 from RMB 43,393,012,000 at the end of 2023[59] - Total equity and liabilities decreased to RMB 46,241,039,000 from RMB 46,844,467,000 at the end of 2023[59] - Loss for the period amounted to RMB 743,144,000[61] - Non-controlling interests decreased to RMB 1,294,290,000 from RMB 1,465,281,000 at the end of 2023[61] - Currency translation differences resulted in a loss of RMB 6,074,000[61] - Capital contribution by non-controlling interests was RMB 10,363,000[61] - Operating cash flow increased to RMB 24,219 thousand in 2024 from a negative RMB 223,387 thousand in 2023[65] - Cash generated from operations rose to RMB 257,141 thousand in 2024 compared to RMB 94,561 thousand in 2023[65] - Income tax paid decreased to RMB 33,336 thousand in 2024 from RMB 70,548 thousand in 2023[65] - Interest paid reduced to RMB 199,586 thousand in 2024 from RMB 247,400 thousand in 2023[65] - Net cash from investing activities increased to RMB 241,223 thousand in 2024 from RMB 233,388 thousand in 2023[65] - Proceeds from borrowings dropped significantly to RMB 47,626 thousand in 2024 from RMB 1,366,000 thousand in 2023[66] - Repayments of borrowings decreased to RMB 468,024 thousand in 2024 from RMB 1,427,607 thousand in 2023[66] - Cash and cash equivalents at the end of the period stood at RMB 725,168 thousand in 2024 compared to RMB 523,815 thousand in 2023[66] - The company's registered capital increased to RMB 1,193,213,000[67] - The interim financial statements were approved by the board of directors on 30 August 2024[67] - The company reported a net loss of RMB 923,942,000 for the six months ended 30 June 2024[69] - The company's current liabilities exceeded its current assets by RMB 6,656,230,000 as of 30 June 2024[69] - Total borrowings amounted to RMB 31,013,528,000, with current borrowings at RMB 5,623,214,000 and cash and cash equivalents at RMB 725,168,000 as of 30 June 2024[69] - The company has capital commitments of approximately RMB 7,514,151,000, mainly related to concession and construction projects[69] - The company plans to divest certain concession and construction projects and seek strategic investors to enhance capital structure and reduce financing expenses[69] - Unutilized project loan facilities from banks provide financing of up to RMB 3,129,384,000 to cover construction costs and committed capital expenditure for the next twelve months[70] - The company has initiated the process to obtain new project loans for existing and new concession and construction projects[70] - The company will actively seek additional financing sources as needed[70] - The company's cash flow projections cover a period of not less than twelve months from 30 June 2024[70] - The application of amended HKFRS standards had no material impact on the company's financial performance and positions[76] - The application of revised Hong Kong Financial Reporting Standards did not significantly impact the company's financial performance or condition during the period[77] - 47% of the company's revenue was recognized in the first half of 2023, while 53% was recognized in the second half[78] - The company is exposed to financial risks including market risk, credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2023[78] - The company is organized into five business segments: wastewater treatment, water supply, construction and sales of equipment, solid waste treatment, and others[79] - Management monitors the results of each operating segment separately for resource allocation and performance assessment[79] - Gross segment revenue for the six months ended 30 June 2024 was RMB 1,249,591 thousand, with the largest contribution from the wastewater treatment project construction and operation segment at RMB 544,856 thousand[81] - Revenue from external customers for the six months ended 30 June 2024 was RMB 1,242,466 thousand, with RMB 544,856 thousand from the wastewater treatment segment[81] - Gross profit for the six months ended 30 June 2024 was RMB 201,184 thousand, with the wastewater treatment segment contributing RMB 182,020 thousand[81] - Loss for the period ended 30 June 2024 was RMB 923,942 thousand, with income tax expenses of RMB 43,750 thousand[81] - Depreciation and amortization for the six months ended 30 June 2024 totaled RMB 423,208 thousand, with the highest amount from the water supply project segment at RMB 208,212 thousand[81] - Segment assets as of 30 June 2024 totaled RMB 46,844,467 thousand, with the largest portion from the wastewater treatment segment at RMB 18,268,626 thousand[84] - Segment liabilities as of 30 June 2024 were RMB 43,393,012 thousand, with the highest amount from the water supply project segment at RMB 17,694,390 thousand[84] - Revenue from contracts with customers recognized over time for the six months ended 30 June 2024 was RMB 770,931 thousand, with the largest contribution from the wastewater treatment segment at RMB 428,536 thousand[81] - Finance income for the six months ended 30 June 2024 was RMB 131,694 thousand, primarily from the wastewater treatment segment at RMB 116,320 thousand[81] - Share of profit/(loss) of investments accounted for using the equity method for the six months ended 30 June 2024 was RMB 25,911 thousand, with the largest contribution from the "Others" segment at RMB 22,274 thousand[81] - Segment assets for wastewater treatment project construction and operation amounted to RMB 17,372,232,000, representing 37.6% of total segment assets[85] - Total segment liabilities reached RMB 43,709,793,000, with water supply project construction and operation contributing the highest at RMB 18,007,207,000[85] - Revenue from operating services decreased by 2.3% to RMB 936,475,000 compared to the same period in 2023[87] - Contract assets related to wastewater treatment services stood at RMB 9,659,920,000, showing a slight increase from the previous year[88] - Government grants decreased by 14.3% to RMB 20,839,000 in the first half of 2024[89] - Net other losses improved to RMB 5,352,000, compared to RMB 16,609,000 in the same period last year[90] - Impairment losses on financial assets totaled RMB 275,518,000, primarily driven by trade receivables[91] - Employee benefit expenses decreased to RMB 224,095 thousand from RMB 247,264 thousand year-over-year[93] - Depreciation of property, plant and equipment increased to RMB 175,395 thousand from RMB 91,610 thousand year-over-year[93] - Impairment of goodwill was recorded at RMB 68,475 thousand for the six months ended 30 June 2024[93] - Finance costs - net increased to RMB 616,718 thousand from RMB 491,596 thousand year-over-year[94] - Current income tax expenses rose to RMB 24,062 thousand from RMB 855 thousand year-over-year[95] - Deferred income tax expenses increased to RMB 19,688 thousand from RMB 3,041 thousand year-over-year[95] - The basic loss per share increased to RMB 0.623 from RMB 0.161 year-over-year[103] - The weighted average number of ordinary shares in issue remained constant at 1,193,213 thousand[103] - The subsidiary in Thailand is subject to a corporate income tax rate of 20%[96] - The subsidiaries in Indonesia are subject to a corporate income tax rate of 22%[98] - Diluted loss per share is the same as basic loss per share for the six months ended 30 June 2024, with no potential diluted ordinary shares outstanding[104] - No final dividend was recommended for the year ended 31 December 2023, and no interim dividend was proposed for the six months ended 30 June 2024[106] - Investments accounted for using the equity method totaled RMB 1,129,002 thousand as of 30 June 2024, including RMB 26,950 thousand in joint ventures and RMB 1,102,052 thousand in associates[108] - Share of profit from associates and joint ventures accounted for using the equity method was RMB 25,911 thousand for the six months ended 30 June 2024, with RMB 25,969 thousand from associates and a loss of RMB 58 thousand from joint ventures[109] - The closing balance of investments in joint ventures was RMB 26,950 thousand as of 30 June 2024, with a share of loss of RMB 58 thousand for the period[110] - The closing balance of investments in associates was RMB 1,102,052 thousand as of 30 June 2024, with a share of profit of RMB 25,969 thousand for the period[111] - As of 30 June 2024, the company's 1.28% equity interest in Qianjiang Biochemical, with a carrying value of RMB 63,857 thousand, remained under property preservation[113] - An open-bid auction for the property preservation of 0.93% equity interest in Qianjiang Biochemical was still in progress as of 15 August 2024[113] - Property, plant and equipment net book value decreased to RMB 4,155,807,000 as of
云南水务(06839) - 2024 - 中期财报