兴业控股(00132) - 2023 - 中期财报

Corporate Information Corporate Basic Information This chapter provides the company's basic information, including board and committee members, registered office, principal place of business, share registrar, principal bankers, auditor, and company secretary - The company made several adjustments to its board and committee members during the reporting period, including the resignation of executive directors Huang Zhihe, Wang Xin, Cheng Weidong on April 1, 2023, and the appointment of non-executive director Shi Xuguang and independent non-executive director Lin Junxian on June 28, 2023[3] Management Discussion and Analysis Results Overview For the six months ended June 30, 2023, the Group's total revenue increased by 17.1% to approximately HKD 414 million, with net profit growing 10% to approximately HKD 51.24 million 2023 H1 Key Financial Indicators | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Total Revenue | Approx. 414,276,000 | +17.1% | | Net Profit | Approx. 51,237,000 | +10% | Revenue Growth Contribution by Key Business Segments | Business Segment | YoY Increase (HKD) | | :--- | :--- | | Elderly Care and Wellness Business | Approx. 21,843,000 | | Civil Explosives Business | Approx. 15,816,000 | | Financial Leasing Business | Approx. 12,147,000 | | New Energy Industrial Park | Approx. 7,668,000 | - Despite the absence of a non-recurring fair value gain of approximately HKD 41.84 million from extended equity repurchase contracts in the prior period, overall profit still grew due to improved operating performance across various business segments[7][9] Business Review This chapter reviews the Group's key business segments' operating performance in H1 2023, highlighting significant revenue growth and reduced losses in elderly care, steady growth in financial leasing, and increased profit in civil explosives Elderly Care and Wellness Business Elderly care and wellness business revenue increased by 42.1% to HKD 73.7 million, with operating loss significantly narrowing by 69.7% to HKD 4.68 million Elderly Care and Wellness Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | Approx. 73,695,000 | +42.1% | | Operating Loss | Approx. 4,682,000 | -69.7% | - As of June 30, 2023, the total number of institutional elderly care beds reached 2,200 with an occupancy rate of 79%; rehabilitation and nursing beds totaled 300 with a utilization rate of 78%, an 8% increase from the end of last year[11][13] Financial Leasing Business The financial leasing business, focusing on environmental protection industries, achieved steady growth with revenue up 7.6% to HKD 173 million and operating profit up 17.2% to HKD 70.93 million Financial Leasing Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | Approx. 173,031,000 | +7.6% | | Operating Profit | Approx. 70,925,000 | +17.2% | Big Data Business Big data business revenue slightly increased by 1.5% to HKD 4.91 million, while operating loss significantly narrowed by 64.6% to HKD 0.31 million due to strict cost control Big Data Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | Approx. 4,909,000 | +1.5% | | Operating Loss | Approx. 308,000 | -64.6% | - The company expanded its business in manufacturing lean digital transformation services by acquiring a 51% equity stake in Guangdong Xinruizhi'an Technology Co., Ltd. to generate synergistic effects[21][22] Civil Explosives Business Despite a sluggish market, civil explosives business revenue grew 18.3% to HKD 102.2 million and operating profit increased 29.8% to HKD 10.63 million by extending into blasting operations Civil Explosives Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | Approx. 102,236,000 | +18.3% | | Operating Profit | Approx. 10,627,000 | +29.8% | Investments in Properties and Industrial Parks Revenue from industrial parks and property development increased by 19% to HKD 48.05 million, but operating profit decreased by 9.3% to HKD 22.01 million due to reduced subsidies Industrial Park and Property Development Business Financial Performance | Indicator | Amount (HKD) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | Approx. 48,047,000 | +19% | | Operating Profit | Approx. 22,009,000 | -9.3% | - Other property rental income decreased by 11.1% to approximately HKD 4.97 million, primarily due to RMB depreciation and Hong Kong property vacancies[29][31] Hotel Business Benefiting from tourism market recovery, hotel business revenue surged 95.2% to HKD 7.39 million, and operating loss significantly narrowed by 67.7% to HKD 1.48 million Hotel Business Financial Performance | Indicator | 2023 H1 | YoY Change | | :--- | :--- | :--- | | Occupancy Rate | Approx. 63.93% | +52.32% | | Operating Revenue | Approx. 7,392,000 HKD | +95.2% | | Operating Loss | Approx. 1,479,000 HKD | -67.7% | Profit from Investments in Associates Associate company Changhai Power's operating performance significantly improved, contributing approximately HKD 27.26 million in profit to the Group, a substantial increase of about 2.3 times year-on-year - Associate company Changhai Power contributed profit of approximately HKD 27,261,000, a substantial increase of about 2.3 times compared to the same period last year[35][37] Financial Position and Analysis As of June 30, 2023, the Group's total assets increased to HKD 9.62 billion, total liabilities to HKD 7.64 billion, and the gearing ratio slightly rose to 79.5% Financial Position Summary (As of June 30, 2023) | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | Approx. 9.62 billion HKD | Approx. 9.07 billion HKD | | Total Liabilities | Approx. 7.64 billion HKD | Approx. 6.98 billion HKD | | Gearing Ratio | 79.5% | 76.9% | | Net Assets | Approx. 1.97 billion HKD | Approx. 2.09 billion HKD | | Net Current Assets | Approx. 0.26 billion HKD | Approx. 0.05 billion HKD | | Current Ratio | Approx. 1.11x | Approx. 1.02x | | Bank Balances and Cash | Approx. 1.30 billion HKD | Approx. 0.999 billion HKD | - The Group's total pledged assets amounted to approximately HKD 4.61 billion, primarily financial lease receivables, used as collateral for bank borrowings[41][43] - Due to the depreciation of RMB against HKD, the Group recorded an exchange loss of approximately HKD 3.09 million during the reporting period[46][47] Outlook Facing an unstable global economic environment, the Group will continue to steadily develop its core businesses and actively seek investment and M&A opportunities in new growth areas - Elderly Care and Wellness Business: Plans to expand light-asset entrusted operation models, increase operational beds, and introduce strategic investors[50][52] - Big Data Business: Aims to become a "first-class industrial internet full-chain service provider in the Greater Bay Area" and will actively pursue M&A integration[55][57] - Financial Leasing Business: Aims to become a leading domestic specialized environmental protection financial leasing company and strive for an AA credit rating[56][58] - Civil Explosives Business: Will strive to complete the construction and cooperation of mixed explosive production capacity to significantly improve future performance[60][62] - New Growth Points: The Group will actively seek investment and M&A opportunities in biomedicine and high-tech fields to achieve leapfrog business development[62][63] Disclosure of Interests and Other Information Interests Disclosure This chapter discloses the shareholdings of directors and substantial shareholders, including Chairman Mr. He Xiangming's beneficial ownership and Glories Holdings (HK) Limited's significant stake - Director Mr. He Xiangming holds 1,441,000 ordinary shares of the company, representing approximately 0.08% of the total share capital[67] - Substantial shareholder Glories Holdings (HK) Limited is deemed to hold 1,441,439,842 shares/relevant share interests, representing 84.18% of the total share capital[71] Other Information This chapter covers information on share option schemes, employees, dividend policy, share repurchases, corporate governance, and connected transactions - The company's share option scheme expired on April 26, 2023, with no options granted during the period[76][81] - The Board resolved not to declare an interim dividend for the six months ended June 30, 2023[79][84] - As of the end of the reporting period, the Group had approximately 1,289 employees, an increase from 1,189 at the end of 2022[78][83] - During the reporting period, the company complied with all provisions of the Corporate Governance Code, and there were no disclosable connected transactions[87][90][95] Additional Information on the Group's Financial Leasing Business This chapter details the financial leasing business model, target customers, and risk management strategies, with a focus on environmental protection industries - The financial leasing business primarily targets customers in environmental protection industries, such as sewage treatment and waste incineration, which contributed 59% of the segment's total revenue as of June 30, 2023[98][100] - The company established a tiered credit risk assessment policy covering seven stages: project initiation, investigation, review and decision-making, implementation, disbursement, post-lease supervision, and risk early warning[105][107] - The company implements strict internal controls and continuous monitoring measures, including setting credit limits, conducting credit approvals, and performing monthly off-site and quarterly on-site inspections of leased assets[110][113][115] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2023, the Group's revenue was HKD 414.3 million, gross profit HKD 157.8 million, and profit for the period HKD 51.24 million 2023 H1 Statement of Profit or Loss Summary | Indicator (HKD million) | 2023 H1 | 2022 H1 | | :--- | :--- | :--- | | Revenue | 414.3 | 353.7 | | Gross Profit | 157.8 | 132.4 | | Profit Before Tax | 71.2 | 70.8 | | Profit for the Period | 51.2 | 46.6 | | Profit Attributable to Owners of the Company | 8.9 | 12.9 | | Basic Earnings Per Share (HK cents) | 0.52 | 0.75 | Condensed Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets were HKD 9.62 billion, total liabilities HKD 7.64 billion, and total equity HKD 1.97 billion Statement of Financial Position Summary (HKD million) | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Non-current Assets | 6,962.2 | 6,802.1 | | Current Assets | 2,655.5 | 2,267.5 | | Total Assets | 9,617.7 | 9,069.6 | | Current Liabilities | 2,393.0 | 2,221.2 | | Non-current Liabilities | 5,250.5 | 4,755.6 | | Total Liabilities | 7,643.5 | 6,976.8 | | Total Equity | 1,974.2 | 2,092.8 | Condensed Consolidated Statement of Cash Flows In H1 2023, the Group reported a net cash outflow from operating activities of HKD 373.6 million, net cash outflow from investing activities of HKD 262.4 million, and net cash inflow from financing activities of HKD 923.9 million Cash Flow Statement Summary (HKD million) | Indicator | 2023 H1 | 2022 H1 | | :--- | :--- | :--- | | Net Cash Outflow from Operating Activities | (373.6) | (273.6) | | Net Cash (Outflow)/Inflow from Investing Activities | (262.4) | 202.7 | | Net Cash Inflow from Financing Activities | 923.9 | 812.7 | | Net Increase in Cash and Bank Balances | 287.9 | 741.9 | Notes to the Condensed Consolidated Financial Statements The financial statement notes provide detailed explanations and supplementary information for various items, offering crucial context for understanding the company's financial position and operating results Note 5: SEGMENT INFORMATION Financial leasing is the Group's largest revenue and profit source, contributing HKD 173 million in revenue and HKD 70.93 million in segment results in H1 2023 2023 H1 Segment Revenue and Results (HKD million) | Segment | Revenue | Results | | :--- | :--- | :--- | | Big Data Business | 4.9 | (0.3) | | Civil Explosives Business | 102.2 | 10.6 | | Financial Leasing | 173.0 | 70.9 | | Hotel Business | 7.4 | (1.5) | | Industrial Park and Property Development | 48.0 | 22.0 | | Property Investment | 5.0 | 1.7 | | Elderly Care and Wellness Business | 73.7 | (4.7) | | Total | 414.3 | 98.8 | Segment Assets (HKD million) | Segment | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Financial Leasing | 4,301.9 | 4,002.2 | | Industrial Park and Property Development | 2,325.7 | 2,403.9 | | Civil Explosives Business | 383.3 | 417.4 | | Property Investment | 275.4 | 285.6 | | Elderly Care and Wellness Business | 206.8 | 113.4 | | Hotel Business | 113.9 | 119.0 | | Big Data Business | 27.4 | 25.6 | Note 18: BORROWINGS As of June 30, 2023, the Group's total borrowings increased to HKD 5.84 billion, primarily consisting of HKD 4.74 billion in bank loans, mostly secured Borrowings Composition (HKD million) | Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Asset-backed Securities | 488.2 | 339.4 | | Bank Borrowings | 4,741.6 | 4,003.2 | | Loans from Direct Holding Company | 136.0 | 136.0 | | Other Bonds | 324.0 | 339.4 | | Other Loans | 119.2 | 243.6 | | Total | 5,836.9 | 5,090.8 | Note 22: PLEDGE OF ASSETS To secure bank loans and general banking facilities, the Group pledged assets with a total carrying value of approximately HKD 4.61 billion as of June 30, 2023 Carrying Value of Pledged Assets (HKD million) | Asset Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Investment Properties | 347.8 | 363.4 | | Property, Plant and Equipment | 383.6 | 402.7 | | Pledged Financial Lease Receivables | 3,651.6 | 2,782.6 | | Pledged Paid-up Capital of Non-wholly Owned Subsidiaries | 219.2 | 229.6 | | Pledged Bank Deposits | 7.0 | 25.0 | Note 27: EVENT AFTER REPORTING PERIOD After the reporting period, the Group's non-wholly owned subsidiary Green Gold Leasing entered into new financial leasing agreements totaling approximately RMB 200 million (HKD 216 million) - From July to August 2023, Green Gold Leasing, a non-wholly owned subsidiary, entered into five new financial leasing agreements with a total consideration of RMB 200 million (approximately HKD 216 million)[337][341][343][347] - On July 10, 2023, Funeng Power, another non-wholly owned subsidiary, signed an EPC agreement for a photovoltaic project with a consideration of approximately RMB 33.46 million[338]