青岛中程(300208) - 2020 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report's structure, and defines key terms for clarity Important Notice The board, supervisory board, and senior management guarantee the accuracy and completeness of the semi-annual report, highlighting risks for the Philippine integrated wind-solar project and the company's dividend policy - The Philippine photovoltaic project is affected by the pandemic, preventing personnel and equipment deployment, slowing national grid approval, and causing road closures, making on-schedule grid connection (before September 30, 2020) unlikely[4] - The Philippine wind power project faces construction issues due to terrain; if the owner fails to re-site by September 30, 2020, the company may unilaterally terminate the contract, risking settlement or reversal of 1.017 billion yuan in completed output value[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for this semi-annual period[7] Table of Contents This section lists the complete report structure, providing navigation from important notices to financial reports and reference documents Definitions This section defines common terms used in the report, including company abbreviations, regulatory bodies, laws, reporting periods, and key overseas projects and subsidiaries, ensuring accurate understanding Part II Company Profile and Key Financial Indicators This section provides essential company information and a summary of its key financial performance metrics 1. Company Profile This section provides the company's basic information, including stock abbreviation, code, listing exchange, full and abbreviated names in Chinese and English, and legal representative Company Profile | Stock Abbreviation | Qingdao Zhongcheng | | :--- | :--- | | Stock Code | 300208 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | 青岛中资中程集团股份有限公司 | | Company's Chinese Abbreviation (if any) | 青岛中程 | | Company's English Name (if any) | Qingdao Zhongzi Zhongcheng Group Co.,Ltd. | | Company's English Abbreviation (if any) | QDZC | | Legal Representative | Li Xianggang | 2. Contact Person and Information This section lists the name, address, phone, fax, and email of the company's Board Secretary for investor and stakeholder communication Contact Information | | Board Secretary | | :--- | :--- | | Name | Zhao Ziming | | Contact Address | 36th Floor, Block B, Yongxin International Financial Center, No. 6 Qinling Road, Laoshan District, Qingdao | | Phone | 0532-68004136 | | Fax | 0532-87712839 | | Email | hengshunzqb@188.com | 3. Other Information This section states that the company's registered address, office address, website, email, information disclosure newspaper, and filing locations remained unchanged during the reporting period - The company's contact information, information disclosure and filing locations, and registration changes remained unchanged during the reporting period[15][16][17] 4. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the current and prior reporting periods, showing significant improvement in net profit and operating cash flow, but a decline in revenue and total assets Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (CNY) | Prior Year Same Period (CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 363,750,124.71 | 535,728,565.21 | -32.10% | | Net Profit Attributable to Shareholders of Listed Company | 28,801,910.68 | -22,240,298.88 | 229.50% | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Items | 30,932,890.84 | -30,412,007.37 | 201.71% | | Net Cash Flow from Operating Activities | 129,428,369.59 | -580,466,466.93 | 122.30% | | Basic Earnings Per Share (CNY/share) | 0.04 | -0.03 | 233.33% | | Diluted Earnings Per Share (CNY/share) | 0.04 | -0.03 | 233.33% | | Weighted Average Return on Net Assets | 1.54% | -1.06% | 2.60% | | Period-End Indicators | Current Period-End (CNY) | Prior Year-End (CNY) | Period-End Change from Prior Year-End (%) | | Total Assets | 5,204,545,254.68 | 5,746,807,951.29 | -9.44% | | Net Assets Attributable to Shareholders of Listed Company | 1,877,365,926.30 | 1,868,356,276.84 | 0.48% | 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards This section states that there are no differences in net profit and net assets between financial reports disclosed under international or overseas accounting standards and Chinese accounting standards during the reporting period - The company's net profit and net assets showed no differences under domestic and overseas accounting standards during the reporting period[19][20] 6. Non-Recurring Gains and Losses and Amounts This section lists the company's non-recurring gains and losses and their amounts for the reporting period, primarily government subsidies and other non-operating income/expenses, totaling negative 2.13 million yuan Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Government subsidies included in current profit and loss (excluding those closely related to the company's business and enjoyed at fixed or quantitative standards set by the state) | 1,596,073.40 | | Other non-operating income and expenses apart from the above items | -3,335,256.78 | | Less: Income tax impact | 391,796.78 | | Total | -2,130,980.16 | Part III Business Overview This section outlines the company's strategic direction, core business activities, and key competitive advantages 1. Company's Main Business Activities During the Reporting Period The company actively responds to the "Belt and Road" initiative, pursuing a "one body, two wings, domestic and international dual-driven" strategy, with core businesses in green grid construction, new energy development, overseas industrial park operations, and mineral resource management - The company's main businesses include green grid construction, power and new energy development, overseas industrial park development and operation, concession rights, and mineral resource management, actively expanding into "Belt and Road" countries[26] - The overseas industrial park operation model integrates mining areas, power, factories, roads, docks, administrative offices, and residential facilities, providing comprehensive value-added services and attracting strategic investment partners[27] - The overseas general contracting project operation model leverages the company's core strengths in power construction to undertake power projects in "Belt and Road" countries, driving the export of complete sets of equipment[29] - The company drives performance growth through industrial development (e.g., utilizing local mineral resources in the Indonesian Integrated Industrial Park), management reforms (hiring industry experts, optimizing teams), and business expansion (focusing on integrated industrial park construction and new energy markets, exploring big data, blockchain, and artificial intelligence)[31][32][34] - The Qingdao Indonesia Comprehensive Industrial Park is listed as a national-level overseas economic and trade cooperation zone and an Indonesian "national industrial park," receiving "green channel" service permits, representing a significant achievement in China-Indonesia economic and trade cooperation[36] - The Philippine integrated wind-solar project is the largest of its kind in the Philippines and the largest wind and solar EPC project undertaken by a Chinese enterprise in the country, serving as a demonstration for the company's business expansion in the Philippine market[37] 2. Significant Changes in Major Assets During the reporting period, major assets saw significant changes, with cash, notes receivable, inventory, and other current assets decreasing, while prepayments and other non-current assets increased, notably a 92.46% reduction in inventory due to reclassification to contract assets under new revenue standards Significant Changes in Major Assets | Major Asset | Explanation of Significant Change | | :--- | :--- | | Monetary Funds | Decreased by 46.56% at the end of the reporting period compared to the beginning, mainly due to repayment of maturing borrowings in the current period | | Notes Receivable | Decreased by 65.81% at the end of the reporting period compared to the beginning, mainly due to a decrease in endorsed but unmatured notes receivable in the current period | | Prepayments | Increased by 71.51% at the end of the reporting period compared to the beginning, mainly due to an increase in prepaid purchases in the current period | | Inventory | Decreased by 92.46% at the end of the reporting period compared to the beginning, mainly due to the company's adoption of new revenue standards, reclassifying inventory from construction contracts to contract assets | | Other Current Assets | Decreased by 50.60% at the end of the reporting period compared to the beginning, mainly due to a reclassification decrease from received export tax refunds in the current period | | Other Non-Current Assets | Increased by 96.69% at the end of the reporting period compared to the beginning, mainly due to an increase in prepaid engineering costs in the current period | 3. Analysis of Core Competencies The company's core competencies include technological advantages, extensive overseas project operation experience, a stable and efficient management team, robust talent development, advanced information management, and the synergistic benefits of its mixed-ownership reform - The company holds over 60 independent intellectual property rights (9 invention patents, 48 utility model patents, 6 software copyrights) covering power equipment manufacturing, waste heat power generation, RKEF smelting, wind power, and photovoltaic power generation, and operates the "Qingdao Laterite Nickel Ore Research and Development Expert Workstation"[40] - The company has accumulated rich project operation experience and political and business resources in overseas markets such as Indonesia, the Philippines, and Zimbabwe, and holds exploration and mining rights for multiple coal and nickel mines in Indonesia, establishing a first-mover and resource advantage[41] - The company boasts an experienced board of directors and management team, implements a "people-oriented" talent development strategy, establishes an "internal training and external recruitment" mechanism, and carries out equity incentive plans[42] - The company vigorously promotes informatization, adopting automated office management systems to enhance work efficiency and management control capabilities[43] - The "state-owned + private" mixed-ownership reform model combines the resources and management advantages of Qingdao City Investment Group with Qingdao Zhongcheng's overseas industrial park development experience, effectively resolving funding challenges and promoting enterprise development[44] Part IV Discussion and Analysis of Operations This section analyzes the company's operational performance, financial position, and risk management strategies during the reporting period 1. Overview In the first half of 2020, the company's operating revenue decreased by 32.10% to 363.75 million yuan, but net profit attributable to shareholders increased by 229.50% to 28.80 million yuan, driven by lower operating costs and reduced credit impairment losses 2020 First Half Key Financial Data | Indicator | Amount (10,000 CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 36,375.01 | -32.10% | | Operating Cost | 28,474.55 | -38.14% | | Operating Profit | 4,949.85 | 241.53% | | Net Profit Attributable to Parent Company Shareholders | 2,880.19 | 229.50% | - Severe overseas pandemic conditions led to insufficient project commencement rates, resulting in a year-on-year decrease in construction business output value and equipment package business revenue and gross profit[46] - Engineering consulting and agency construction business saw significant growth, with multiple projects launched and revenue recognized[46] - The company actively advanced the Qingdao Indonesia Comprehensive Industrial Park construction, with nickel-power project equipment and material procurement 99.68% complete and engineering construction 38% complete; RKEF special smelting project phase one equipment and material procurement 91% complete and engineering construction 11% complete[47] - The photovoltaic field construction for the Philippine integrated wind-solar project has reached over 90% completion, with the wind power project actively under negotiation[48] - Subsidiary Qingdao Hengshun Zhongcheng International Trade Co., Ltd. achieved operating revenue of approximately 83.9617 million yuan and innovated its supply chain financing model[49] - Holding subsidiary Jiaojian Chengtou Holdings (Shandong) Co., Ltd. achieved operating revenue of 20.4214 million yuan, promoting the company's external business expansion[50] 2. Analysis of Main Business The company's main business revenue decreased by 32.10% due to EPC project cycles, overseas pandemic impacts, and the absence of bulk commodity trade, though construction business revenue significantly grew by 148.37% from new Indonesian projects Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (CNY) | Prior Year Same Period (CNY) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 363,750,124.71 | 535,728,565.21 | -32.10% | EPC project cyclical factors, impact of overseas pandemic on project progress, and no bulk commodity trade business conducted | | Operating Cost | 284,745,489.39 | 460,275,448.60 | -38.14% | | | Selling Expenses | 5,043,138.35 | 2,904,803.27 | 73.61% | Increase in non-fixed selling miscellaneous expenses | | Administrative Expenses | 39,233,379.32 | 44,441,761.10 | -11.72% | | | Financial Expenses | 67,027,402.27 | 42,030,561.55 | 59.47% | Increase in interest expenses due to increased operational financing | | Income Tax Expense | 10,107,270.19 | 767,799.54 | 1,216.39% | Increase in profit for the current reporting period | | R&D Investment | 1,762,379.08 | 3,602,144.66 | -51.07% | Slowdown in R&D project progress | | Net Cash Flow from Operating Activities | 129,428,369.59 | -580,466,466.93 | 122.30% | Increase in sales collections and export tax refunds | | Net Cash Flow from Financing Activities | -362,036,605.48 | 599,694,460.04 | -160.37% | Decrease in short-term financing compared to the previous year | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Mechanical Equipment Packages | 80,694,406.55 | 49,692,102.47 | 38.42% | -6.61% | | EPC - Engineering | 29,890,455.11 | 23,233,588.92 | 22.27% | -33.16% | | Construction Business | 143,058,737.90 | 122,321,040.90 | 14.50% | 148.37% | | Trade Business | 83,961,747.92 | 81,783,754.26 | 2.59% | -67.53% | | Consulting Services | 18,066,037.81 | 1,822,646.15 | 89.91% | New Business | - Construction business revenue increased by 148.37% year-on-year, primarily due to new Indonesian project construction[57] - Trade business revenue decreased by 67.53% year-on-year, mainly because bulk commodity trade business was not conducted in the current period and some business progress was slowed by the pandemic[58] Operating Revenue by Industry/Product/Region | Category | Current Period Amount (CNY) | Proportion of Operating Revenue (%) | Prior Year Same Period Amount (CNY) | Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | Mechanical Equipment Packages | 80,694,406.55 | 22.18% | 86,403,048.37 | 16.13% | -6.61% | | Photovoltaic Industry | 34,631,655.50 | 9.52% | 78,661,430.92 | 14.68% | -55.97% | | Construction Business | 143,058,737.90 | 39.33% | 57,598,630.55 | 10.75% | 148.37% | | Trade Business | 83,961,747.92 | 23.08% | 258,597,409.72 | 48.27% | -67.53% | | Consulting Services | 18,066,037.81 | 4.97% | | | | | By Region | | | | | | | Domestic | 104,835,949.76 | 28.82% | 306,707,624.15 | 57.25% | -65.82% | | International | 258,914,174.95 | 71.18% | 229,020,941.06 | 42.75% | 13.05% | 3. Analysis of Non-Main Business This section states that there was no analysis of non-main business activities during the reporting period 4. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets decreased by 9.44%, primarily due to inventory reclassification to contract assets, while long-term borrowings and contract assets significantly increased Significant Changes in Asset Composition | Item | Current Period-End Amount (CNY) | Proportion of Total Assets (%) | Prior Year Same Period-End Amount (CNY) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 259,413,299.62 | 4.98% | 274,438,113.02 | 5.01% | -0.03% | | | Inventory | 198,750,584.50 | 3.82% | 2,642,088,006.14 | 48.19% | -44.37% | Adoption of new revenue standards, reclassifying inventory from construction contracts to contract assets | | Contract Assets | 2,315,311,618.83 | 44.49% | | | 44.49% | | | Short-Term Borrowings | 614,065,296.09 | 11.80% | 845,489,607.25 | 15.42% | -3.62% | | | Long-Term Borrowings | 601,000,000.00 | 11.55% | | | 11.55% | | | Accounts Payable | 758,809,251.77 | 14.58% | 1,118,664,335.67 | 20.40% | -5.82% | | | Other Payables | 1,003,651,953.82 | 19.28% | 908,741,781.11 | 16.58% | 2.70% | | Restricted Asset Status | Item | Period-End Book Value (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 83,086,502.62 | Bank bill deposits, frozen funds, certificate of deposit pledges | 5. Analysis of Investment Status During the reporting period, the company's investment amount significantly decreased by 58.07%, with no major equity or non-equity investments, derivative investments, or entrusted loans, but it held 8.7 million yuan in outstanding bank wealth management products Investment Amount Changes | Investment Amount in Reporting Period (CNY) | Investment Amount in Prior Year Same Period (CNY) | Change (%) | | :--- | :--- | :--- | | 69,260,000.00 | 165,199,589.54 | -58.07% | Overview of Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (10,000 CNY) | Unmatured Balance (10,000 CNY) | Overdue Unrecovered Amount (10,000 CNY) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 16,080 | 870 | 0 | - The company had no derivative investments or entrusted loans during the reporting period[70][71] 6. Major Asset and Equity Sales This section states that the company did not undertake any major asset or equity sales during the reporting period - The company did not sell any major assets or significant equity during the reporting period[72][73] 7. Analysis of Major Holding and Participating Companies This section lists the financial data for the company's major holding subsidiaries and participating companies significantly impacting net profit, and notes the addition of three new subsidiaries through investment during the reporting period Major Subsidiaries and Participating Companies with Over 10% Impact on Company Net Profit | Company Name | Company Type | Main Business | Registered Capital | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Heng Shun Tian Cheng EPC Pte. Ltd. | Subsidiary | Coal trade, EPC | 3.4219 million USD | 746,916,559.51 | 383,017,831.45 | 34,636,630.60 | -780,979.91 | -624,237.75 | | Jiaojian Chengtou Holdings (Shandong) Co., Ltd. | Subsidiary | Construction engineering, municipal landscape engineering, financial services, etc. | 100 million CNY | 26,706,286.98 | 23,642,550.48 | 20,421,371.66 | 15,482,319.95 | 14,473,120.35 | | PT. W & H Brothers Mining | Subsidiary | Mining and other excavation services | 29.69232 million USD | 34,365,739.80 | 1,583,267.48 | | 957,706.26 | 957,706.26 | | PT. Transon Bumindo Resources | Subsidiary | Production and construction | 220 million USD | 1,120,233,724.46 | 863,375,497.68 | 143,588,112.90 | 76,365,206.29 | 58,198,474.38 | | Qingdao Hengshun Zhongcheng International Trade Co., Ltd. | Subsidiary | Trade | 50 million CNY | 154,082,714.88 | 71,742,149.10 | 83,961,747.92 | 6,575,201.04 | 4,933,019.00 | | PT. Bumi Morowali Utama | Subsidiary | Mining | 100,155,464,618 IDR | 42,706,016.46 | 29,631,924.02 | | -1,455,063.13 | -1,091,345.87 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During the Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Qingdao Zhongzi Zhongcheng Technology Development Co., Ltd. | Established by investment | None | | Jiaojian Chengtou (Shandong) Real Estate Co., Ltd. | Established by investment | None | | Tai'an Zhongqian Mining Co., Ltd. | Established by investment | None | 8. Structured Entities Controlled by the Company This section states that the company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[76] 9. Risks Faced by the Company and Countermeasures The company faces multiple risks including the global pandemic, overseas political environments, management challenges, and project implementation, which it addresses through organizational adjustments, talent optimization, policy alignment, government communication, and diversified business development - The overseas pandemic (COVID-19) has led to a global economic recession, impacting the company's exports and international EPC business, with project delays being a risk; the company will adjust its organizational structure, human resource strategy, business systems and processes, and fully cooperate with prevention and control efforts[76] - Overseas investment projects (Indonesia, Philippines, Zimbabwe) face risks from complex political environments, limited market openness, policy changes, and commercial disputes; the company addresses these by maintaining good communication with local governments and Chinese embassies, obtaining local government support (e.g., Indonesia's "green channel" service permit), and establishing scholarships in Zimbabwe[77] - The company's asset scale expansion brings management risks, including strategic planning, organizational design, operational management, resource integration, market development, internal control, mechanism establishment, and post-merger business, personnel, and cultural integration; the company responds by improving organizational structure, strengthening talent teams, innovating management mechanisms, and implementing equity incentives[78] - Investment project implementation faces risks such as market changes, policy adjustments, cultural environment incompatibility, ineffective market expansion, and insufficient human resources, which could lead to project delays or lower-than-expected returns; the company will track project progress, actively seek financing and partners, and gradually develop mineral businesses to mitigate risks[80] - Overseas investments face risks from inconsistent laws and regulations and exchange rate fluctuations; the company mitigates these by collaborating with experienced Chinese companies, improving overseas business contracts, partnering with law firms familiar with cross-border laws, and strengthening exchange rate analysis and matching foreign currency receipts and payments[81] 10. Registration Form for Research, Communication, and Interview Activities During the Reporting Period This section states that the company did not host any research, communication, or interview activities during the reporting period - The company did not host any research, communication, or interview activities during the reporting period[82] Part V Significant Matters This section details important events and decisions that significantly impacted the company during the reporting period 1. Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period The company held its 2019 Annual General Meeting on May 8, 2020, with 53.54% investor participation, and no requests for extraordinary general meetings from preferred shareholders with restored voting rights Shareholder Meetings During the Reporting Period | Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | | 2019 Annual General Meeting | Annual General Meeting | 53.54% | May 08, 2020 | May 08, 2020 | Juchao Information Network (http://www.cninfo.com.cn) | 2. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period This section states that the company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for the semi-annual period[86] 3. Commitments Fulfilled or Overdue by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period This section states that there were no commitments fulfilled or overdue by the actual controller, shareholders, related parties, acquirers, or the company during or as of the end of the reporting period - The company had no commitments fulfilled or overdue by the actual controller, shareholders, related parties, acquirers, or the company during or as of the end of the reporting period[87] 4. Appointment and Dismissal of Accounting Firms This section states that the company's semi-annual financial report was not audited - The company's semi-annual report was unaudited[88] 5. Board of Directors' and Supervisory Board's Explanations on the "Non-Standard Audit Report" for the Current Period This section states that there were no explanations from the Board of Directors or Supervisory Board regarding a "non-standard audit report" for the current reporting period 6. Board of Directors' Explanations on the "Non-Standard Audit Report" for the Previous Year This section states that there were no explanations from the Board of Directors regarding a "non-standard audit report" for the previous year 7. Bankruptcy and Reorganization Matters This section states that the company did not undergo any bankruptcy or reorganization matters during the reporting period - The company did not undergo any bankruptcy or reorganization matters during the reporting period[90] 8. Litigation Matters The company had no major litigation or arbitration matters during the reporting period, but faced several other lawsuits, including contract disputes and investor securities misrepresentation liability cases, with 69 investor cases settled and 4.57375 million yuan paid to 36 investors - The company had no major litigation or arbitration matters during the reporting period[91] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (10,000 CNY) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Company vs. Yunnan Haijun Commercial Trade Co., Ltd. Sales Contract Dispute | 43.83 | No | Case filed | Not yet heard | | Yicheng County Jintong Mining and Metallurgy Machinery Manufacturing Co., Ltd. vs. Company Contract for Work Dispute | 245.15 | Yes, 2.4894 million CNY | Second instance hearing held | Not yet ruled | | China Power Construction Group Jiangxi Electric Power Construction Co., Ltd. vs. Company/ASI Construction Contract Dispute | 856.33 | No | Received lawsuit documents, ASI has not received court documents, no progress | No trial notice, not yet ruled | | Investor vs. Company Securities Misrepresentation Liability Dispute | 3,843.42 | Yes, 904,400 CNY | 69 cases settled in this reporting period, remaining unsettled cases are under review | Of the 69 settled cases, the company is not liable for compensation to 33 individuals; the total compensation amount for the remaining 36 individuals is 4.57375 million CNY | 9. Media Scrutiny This section states that the company did not face widespread media scrutiny during the reporting period - The company did not face widespread media scrutiny during the reporting period[93] 10. Penalties and Rectification This section states that the company did not incur any penalties or require rectification during the reporting period - The company did not incur any penalties or require rectification during the reporting period[94] 11. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller This section states that there were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period 12. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section states that the company did not have any equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[95] 13. Significant Related Party Transactions The company engaged in related party transactions related to daily operations, primarily involving sales of mechanical equipment and engineering services to PT. Metal Smeltindo Selaras, and intercompany borrowings with Qingdao City Investment Financial Holdings Group Co., Ltd., with a supplementary agreement reducing borrowing interest rates Related Party Transactions Related to Daily Operations (Sales of Goods/Provision of Services) | Related Party | Related Party Transaction Type | Related Party Transaction Content | Related Party Transaction Amount (10,000 CNY) | Proportion of Similar Transactions (%) | | :--- | :--- | :--- | :--- | :--- | | PT.Metal Smeltindo Selaras | Sales of Goods | RKEF Special Smelting Equipment Package | 522.22 | 6.47% | | PT.Metal Smeltindo Selaras | Engineering Construction | RKEF Project Phase I General Contract | 3,202.92 | 67.75% | | PT.Metal Smeltindo Selaras | Sales of Goods | RKEF Special Smelting Equipment Package Supplement | 1,990.57 | 24.67% | | PT.Metal Smeltindo Selaras | Sales of Goods | 265MW Coal-Fired Power Plant Equipment Package | 3,304.99 | 40.96% | | PT.Metal Smeltindo Selaras | Sales of Goods | 265MW Coal-Fired Power Plant Equipment Package Supplement | 2,251.66 | 27.90% | | PT.Metal Smeltindo Selaras | Engineering Construction | 2*65MW Coal-Fired Power Plant Project Infrastructure | 1,524.98 | 32.25% | Related Party Creditor-Debtor Transactions (Payables to Related Parties) | Related Party | Related Party Relationship | Reason for Formation | Beginning Balance (10,000 CNY) | Amount Newly Added in Current Period (10,000 CNY) | Amount Repaid in Current Period (10,000 CNY) | Interest Rate | Interest in Current Period (10,000 CNY) | Ending Balance (10,000 CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qingdao City Investment Financial Holdings Group Co., Ltd. | Shareholder holding over 5% | Ordinary operating loan | 97,800 | 2,000 | | 5.70% | 2,823.02 | 99,800 | | Qingdao Chengtou International Trade Co., Ltd. | Controlled by the same indirect holding legal entity | Deposit | 611 | | 611 | | | 0 | - The company signed a supplementary agreement with Chengtou Financial Holdings, adjusting the annual interest rate for loans signed in 2019 and maturing in 2020 from 6.5% to 5.7%; all loans applied for from Chengtou Financial Holdings in 2020 will also be executed at an annual interest rate of 5.7% to reduce financing costs[101] 14. Significant Contracts and Their Performance The company had no entrustment, contracting, leasing, or major guarantee situations during the reporting period, but engaged in several significant operational contracts, mainly EPC projects and equipment sales with PT. Metal Smeltindo Selaras and ENERGY LOGICS PHILIPPINES, INC., with some projects reaching 99.68% completion - The company had no entrustment, contracting, leasing, or major guarantee situations during the reporting period[103][104][105][106] Significant Contracts in Ordinary Operations | Company Party to Contract | Counterparty to Contract | Total Contract Amount (10,000 CNY) | Contract Performance Progress | Sales Revenue Recognized in Current Period (10,000 CNY) | Cumulative Sales Revenue Recognized (10,000 CNY) | Accounts Receivable Collection Status (10,000 CNY) | Significant Risk of Contract Non-Performance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qingdao Zhongzi Zhongcheng Group Co., Ltd. | PT.Metal Smeltindo Selaras | 92,814.00 | 91% | 522.22 | 84,353.34 | 60,948.17 | No | | Qingdao Zhongzi Zhongcheng Group Co., Ltd. | PT.Metal Smeltindo Selaras | 11,230.00 | 18% | 1,990.57 | 1,990.57 | - | No | | PT. Transon Bumindo Resources | PT.Metal Smeltindo Selaras | 48,628.68 | 11% | 3,202.92 | 5,175.29 | - | No | | Qingdao Zhongzi Zhongcheng Group Co., Ltd. | PT.Metal Smeltindo Selaras | 49,465.37 | 99.68% | 3,304.99 | 49,306.52 | 32,998.75 | No | | Qingdao Zhongzi Zhongcheng Group Co., Ltd. | PT.Metal Smeltindo Selaras | 11,230.00 | 57% | 2,251.66 | 6,391.16 | - | No | | PT. Transon Bumindo Resources | PT.Metal Smeltindo Selaras | 58,450.00 | 38% | 1,524.98 | 22,449.03 | 863.01 | No | | Heng Shun Tian Cheng EPC Pte. Ltd. | ENERGY LOGICS PHILIPPINES,INC | 299,879.30 | 73% | 3,463.17 | 219,244.67 | - | Yes | 15. Social Responsibility The company is not a key polluter and holds an environmental management system certification, but did not undertake targeted poverty alleviation efforts during the reporting period and has no future plans for such initiatives - The company and its subsidiaries are not classified as key polluting units by environmental protection authorities and have obtained an "Environmental Management System Certification"[110] - The company did not undertake targeted poverty alleviation work during the semi-annual reporting period and has no subsequent plans for such initiatives[111] 16. Explanation of Other Significant Matters The company signed a third amendment to the Philippine integrated wind-solar project EPC contract with ELPI, clarifying cost and schedule responsibilities, and terminated a major asset restructuring for Baobab Mining and Exploration (Holdings) Co., Ltd. due to disagreements on core terms, without adverse impact on operations - The company signed a third amendment to the Philippine integrated wind-solar project EPC contract with ELPI, clarifying the responsible parties for costs and schedule matters incurred during project implementation[112] - The company terminated a major asset restructuring for Baobab Mining and Exploration (Holdings) Co., Ltd. due to the failure of all transaction parties to reach an agreement on core terms such as transaction price and performance commitments[114] - The termination of the major asset restructuring will not have an adverse impact on the company's operating performance and financial condition[114] 17. Significant Matters of Company Subsidiaries This section states that there were no significant matters concerning the company's subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[115] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure 1. Share Capital Changes During the reporting period, the company's restricted shares decreased by 47,601,746 shares, while unrestricted shares increased by the same amount, with the total share capital remaining unchanged, primarily due to the lifting of restrictions on shares held by departing senior executives Share Capital Changes | | Quantity Before This Change (shares) | Proportion Before This Change (%) | Increase/Decrease in This Change (total) (shares) | Quantity After This Change (shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 109,682,424 | 14.63% | -47,601,746 | 62,080,678 | 8.28% | | II. Unrestricted Shares | 639,792,576 | 85.37% | 47,601,746 | 687,394,322 | 91.72% | | III. Total Shares | 749,475,000 | 100.00% | 0 | 749,475,000 | 100.00% | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Jia Quanchen | 46,083,971 | 46,083,971 | 0 | 0 | Departure of Senior Executive | | Mo Baixin | 1,570,500 | 1,570,500 | 0 | 0 | Departure of Senior Executive | | Jia Xiaoyu | 57,727,593 | 0 | 0 | 57,727,593 | Senior Executive Locked Shares | | Jia Yulan | 4,279,735 | 0 | 0 | 4,279,735 | Senior Executive Locked Shares | | Yuan Ruifeng | 20,625 | 0 | 0 | 20,625 | Senior Executive Locked Shares | | Dong Dong | 0 | 0 | 52,725 | 52,725 | Senior Executive Locked Shares | | Total | 109,682,424 | 47,654,471 | 52,725 | 62,080,678 | -- | 2. Issuance and Listing of Securities This section states that there were no new issuances or listings of securities by the company during the reporting period 3. Number of Shareholders and Shareholding Structure As of the end of the reporting period, the company had 22,480 common shareholders, with Qingdao City Investment Financial Holdings Group Co., Ltd. as the largest shareholder at 22.19%, and several top ten shareholders having pledged or frozen shares - The total number of common shareholders at the end of the reporting period was 22,480[123] Shareholding of Top 10 Shareholders or Shareholders Holding Over 5% of Common Shares | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qingdao City Investment Financial Holdings Group Co., Ltd. | State-owned Legal Entity | 22.19% | 166,315,691 | 0 | 166,315,691 | Pledged | 77,870,000 | | Dai Yiming | Domestic Natural Person | 10.48% | 78,572,882 | 0 | 78,572,882 | Pledged | 78,500,000 | | Jia Xiaoyu | Domestic Natural Person | 10.27% | 76,970,124 | 57,727,593 | 19,242,531 | Pledged | 76,962,600 | | | | | | | | Frozen | 76,970,124 | | Qingdao Chengyuan Investment Management Co., Ltd. | State-owned Legal Entity | 7.81% | 58,526,809 | 0 | 58,526,809 | | | | Jia Quanchen | Domestic Natural Person | 7.09% | 53,123,814 | 0 | 53,123,814 | Pledged | 52,973,190 | | | | | | | | Frozen | 53,123,814 | | Ningbo Meishan Bonded Port Area Huijin Investment Management Co., Ltd. - Huijin No. 2 Private Securities Investment Fund | Other | 4.57% | 34,259,263 | 0 | 34,259,263 | | | | Ningbo Meishan Bonded Port Area Huijin Investment Management Co., Ltd. - Huijin No. 1 Private Securities Investment Fund | Other | 2.43% | 18,204,000 | 0 | 18,204,000 | | | | Jia Yulan | Domestic Natural Person | 0.77% | 5,749,875 | 4,279,735 | 1,470,140 | Pledged | 5,000,000 | | Yan Dongmei | Domestic Natural Person | 0.58% | 4,374,000 | 0 | 4,374,000 | | | | Cheng Shanjie | Domestic Natural Person | 0.40% | 3,035,150 | 0 | 3,035,150 | | | - Qingdao Chengyuan Investment Management Co., Ltd. is a wholly-owned subsidiary of Qingdao City Investment Financial Holdings Group Co., Ltd., and they are acting in concert; Jia Quanchen and Jia Yulan are siblings, Jia Quanchen and Jia Xiaoyu are father and son, and Jia Yulan and Dai Yiming are mother and son; Ningbo Meishan Bonded Port Area Huijin Investment Management Co., Ltd. - Huijin No. 1 Private Securities Investment Fund and Ningbo Meishan Bonded Port Area Huijin Investment Management Co., Ltd. - Huijin No. 2 Private Securities Investment Fund are acting in concert[124] - The 76,970,124 shares held by shareholder Jia Xiaoyu that were judicially frozen were unfrozen on July 23, 2020[125] 4. Changes in Controlling Shareholder or Actual Controller This section states that there were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder and actual controller remained unchanged during the reporting period[127] Part VII Preferred Shares This section states that the company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[130] Part VIII Convertible Corporate Bonds This section states that the company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[133] Part IX Information on Directors, Supervisors, and Senior Management This section provides details on the shareholdings and changes in the company's directors, supervisors, and senior management 1. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, the total shareholdings of the company's directors, supervisors, and senior management remained unchanged at 82,817,799 shares, with specific individuals like Jia Yulan, Jia Xiaoyu, Yuan Ruifeng, and Dong Dong holding company shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jia Yulan | Vice Chairman | Current | 5,749,875 | 0 | 0 | 5,749,875 | | Jia Xiaoyu | Director | Current | 76,970,124 | 0 | 0 | 76,970,124 | | Yuan Ruifeng | Employee Supervisor | Current | 27,500 | 0 | 0 | 27,500 | | Dong Dong | Vice President | Current | 70,300 | 0 | 0 | 70,300 | | Total | -- | -- | 82,817,799 | 0 | 0 | 82,817,799 | 2. Changes in Directors, Supervisors, and Senior Management During the reporting period, there was a change in senior management, with Dong Dong appointed as Vice President and Xun Chunyang resigning as Vice President due to work adjustments Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Dong Dong | Vice President | Appointment | June 16, 2020 | | | Xun Chunyang | Vice President | Resignation | July 09, 2020 | Resigned due to work adjustments | Part X Corporate Bonds This section states that the company has no publicly issued and listed corporate bonds on a stock exchange that are either unexpired or not fully redeemed as of the approval date of the semi-annual report - The company has no publicly issued and listed corporate bonds on a stock exchange that are either unexpired or not fully redeemed as of the approval date of the semi-annual report[141] Part XI Financial Report This section presents the company's comprehensive financial statements and related notes for the reporting period 1. Audit Report This section states that the company's semi-annual financial report was not audited - The company's semi-annual financial report was unaudited[144] 2. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2020, offering a comprehensive view of its financial position, operating results, and cash flows 1. Consolidated Balance Sheet As of June 30, 2020, the company's consolidated total assets were 5.205 billion yuan, a 9.44% decrease from year-end 2019, with contract assets of 2.315 billion yuan newly introduced and inventory significantly reduced Consolidated Balance Sheet (Summary) | Item | June 30, 2020 (CNY) | December 31, 2019 (CNY) | | :--- | :--- | :--- | | Total Assets | 5,204,545,254.68 | 5,746,807,951.29 | | Total Liabilities | 3,302,457,989.51 | 3,864,284,350.37 | | Total Owners' Equity | 1,902,087,265.17 | 1,882,523,600.92 | | Total Current Assets | 3,823,738,438.88 | 4,391,611,215.53 | | Total Non-Current Assets | 1,380,806,815.80 | 1,355,196,735.76 | | Total Current Liabilities | 2,692,063,653.63 | 3,450,517,148.68 | | Total Non-Current Liabilities | 610,394,335.88 | 413,767,201.69 | - Contract assets at period-end were 2,315,311,618.83 yuan, with a beginning balance of 0, mainly due to the reclassification of inventory from construction contracts to contract assets under new revenue standards[147] - Inventory at period-end was 198,750,584.50 yuan, significantly reduced from 2,635,367,730.55 yuan at the beginning of the period[146] 2. Parent Company Balance Sheet As of June 30, 2020, the parent company's total assets were 4.644 billion yuan, an 8.44% decrease from year-end 2019, with inventory significantly reduced and contract assets substantially increased due to new revenue standards Parent Company Balance Sheet (Summary) | Item | June 30, 2020 (CNY) | December 31, 2019 (CNY) | | :--- | :--- | :--- | | Total Assets | 4,643,545,364.68 | 5,071,463,478.98 | | Total Liabilities | 3,139,898,927.86 | 3,534,393,875.80 | | Total Owners' Equity | 1,503,646,436.82 | 1,537,069,603.18 | | Total Current Assets | 2,554,709,721.42 | 3,055,364,110.46 | | Total Non-Current Assets | 2,088,835,643.26 | 2,016,099,368.52 | | Total Current Liabilities | 2,529,504,591.98 | 3,120,626,674.11 | | Total Non-Current Liabilities | 610,394,335.88 | 413,767,201.69 | - Parent company contract assets at period-end were 1,622,440,300.95 yuan, with a beginning balance of 0, mainly due to the reclassification of inventory from construction contracts to contract assets under new revenue standards[151] - Parent company inventory at period-end was 32,606,937.10 yuan, significantly reduced from 1,633,272,066.63 yuan at the beginning of the period[151] 3. Consolidated Income Statement 2020 semi-annual, the company achieved total operating revenue of 363.75 million yuan, a 32.10% year-on-year decrease, but realized a net profit of 36.1472 million yuan, turning around from a 26.202 million yuan loss in the prior year Consolidated Income Statement (Summary) | Item | 2020 Semi-Annual (CNY) | 2019 Semi-Annual (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 363,750,124.71 | 535,728,565.21 | | II. Total Operating Costs | 398,550,443.74 | 554,430,832.46 | | III. Operating Profit (Loss indicated by "－") | 49,498,486.09 | -34,972,736.61 | | IV. Total Profit (Total loss indicated by "－") | 46,254,502.71 | -25,434,223.14 | | Less: Income Tax Expense | 10,107,270.19 | 767,799.54 | | V. Net Profit (Net loss indicated by "－") | 36,147,232.52 | -26,202,022.68 | | Net Profit Attributable to Parent Company Owners | 28,801,910.68 | -22,240,298.88 | | Minority Interest Income/Loss | 7,345,321.84 | -3,961,723.80 | | VII. Total Comprehensive Income | 19,414,230.02 | -1,743,879.92 | | Total Comprehensive Income Attributable to Parent Company Owners | 8,860,215.23 | -4,552,097.49 | | Total Comprehensive Income Attributable to Minority Shareholders | 10,554,014.79 | 2,808,217.57 | | VIII. Earnings Per Share: Basic Earnings Per Share (CNY/share) | 0.04 | -0.03 | | VIII. Earnings Per Share: Diluted Earnings Per Share (CNY/share) | 0.04 | -0.03 | 4. Parent Company Income Statement 2020 semi-annual, the parent company's operating revenue was 86.6346 million yuan, a 48.26% year-on-year decrease, with a net loss of 33.5726 million yuan, indicating increased operating pressure Parent Company Income Statement (Summary) | Item | 2020 Semi-Annual (CNY) | 2019 Semi-Annual (CNY) | | :--- | :--- | :--- | | I. Operating Revenue | 86,634,637.06 | 167,427,079.01 | | Less: Operating Cost | 54,596,381.31 | 128,541,431.76 | | II. Operating Profit (Loss indicated by "－") | -40,197,050.97 | -43,595,171.20 | | III. Total Profit (Total loss indicated by "－") | -43,455,131.86 | -34,049,056.47 | | Less: Income Tax Expense | -9,882,531.26 | -4,458,298.22 | | IV. Net Profit (Net loss indicated by "－") | -33,572,600.60 | -29,590,758.25 | | VI. Total Comprehensive Income | -33,572,600.60 | -29,590,758.25 | 5. Consolidated Cash Flow Statement 2020 semi-annual, the company's net cash flow from operating activities was 129.428 million yuan, a significant improvement year-on-year, driven by increased sales collections and export tax refunds, while financing activities saw a net outflow of 362.036 million yuan Consolidated Cash Flow Statement (Summary) | Item | 2020 Semi-Annual (CNY) | 2019 Semi-Annual (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 129,428,369.59 | -580,466,466.93 | | II. Net Cash Flow from Investing Activities | -39,041,876.12 | -41,980,419.00 | | III. Net Cash Flow from Financing Activities | -362,036,605.48 | 599,694,460.04 | | V. Net Increase in Cash and Cash Equivalents | -267,989,130.42 | -22,754,781.43 | | VI. Cash and Cash Equivalents at End of Period | 176,326,797.00 | 151,878,924.87 | - Net cash flow from operating activities increased by 122.30% year-on-year, primarily due to increased sales collections and received export tax refunds[54][163] - Net cash flow from financing activities decreased by 160.37% year-on-year, mainly because short-term financing received in the current reporting period was less than the previous year[54][164] 6. Parent Company Cash Flow Statement 2020 semi-annual, the parent company's net cash flow from operating activities was 16.7344 million yuan, an improvement from the prior year, with net cash outflows from investing and financing activities, resulting in a period-end cash and cash equivalents balance of 10.4372 million yuan Parent Company Cash Flow Statement (Summary) | Item | 2020 Semi-Annual (CNY) | 2019 Semi-Annual (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 16,734,406.86 | -307,686,038.88 | | II. Net Cash Flow from Investing Activities | -69,298,000.00 | -165,405,486.54 | | III. Net Cash Flow from Financing Activities | -362,181,605.48 | 545,390,710.05 | | V. Net Increase in Cash and Cash Equivalents | -413,669,469.81 | 72,580,138.86 | | VI. Cash and Cash Equivalents at End of Period | 10,437,162.87 | 80,195,377.48 | 7. Consolidated Statement of Changes in Owners' Equity 2020 semi-annual, the company's consolidated owners' equity increased from 1.883 billion yuan to 1.902 billion yuan, primarily due to increased net profit attributable to the parent company, despite a reduction in other comprehensive income from foreign currency translation differences Consolidated Statement of Changes in Owners' Equity (Summary) | Item | 2020 Semi-Annual End Balance (CNY) | 2019 Semi-Annual End Balance (CNY) | | :--- | :--- | :--- | | Total Owners' Equity | 1,902,087,265.17 | 2,118,565,054.29 | | Total Owners' Equity Attributable to Parent Company | 1,877,365,926.30 | 2,101,330,235.52 | | Minority Interests | 24,721,338.87 | 17,234,818.77 | | Retained Earnings | 835,981,902.30 | 1,066,789,964.46 | | Other Comprehensive Income | -26,222,140.20 | -32,787,703.87 | - Total comprehensive income attributable to parent company owners for the current period was 8,860,215.22 yuan[169] - Foreign currency financial statement translation differences led to a 19,941,695.46 yuan decrease in other comprehensive income[170] 8. Parent Company Statement of Changes in Owners' Equity 2020 semi-annual, the parent company's owners' equity decreased from 1.537 billion yuan to 1.504 billion yuan, primarily due to the net loss incurred Parent Company Statement of Changes in Owners' Equity (Summary) | Item | 2020 Semi-Annual End Balance (CNY) | 2019 Semi-Annual End Balance (CNY) | | :--- | :--- | :--- | | Total Owners' Equity | 1,503,646,436.82 | 1,704,257,109.53 | | Retained Earnings | 439,928,404.28 | 640,817,266.26 | | Special Reserves | 11,464,211.57 | 11,186,022.30 | - Total comprehensive income for the current period was -33,572,600.60 yuan[175] 3. Company Basic Information This section details the company's basic information, historical evolution, financial report approval, and consolidated scope, including its establishment in March 1998, registered capital of 749.475 million yuan, diverse business scope, and the addition of three new subsidiaries during the reporting period - The company was established in March 1998, with a registered capital of 749.475 million yuan, and its legal representative is Li Xianggang[1