南海控股(00680) - 2023 - 年度业绩

Financial Highlights Financial Highlights In FY2023, total revenue grew 7.5% to RMB 1,178.4 million, while profit attributable to equity holders declined 18.0% to RMB 91.2 million, with a declared final dividend of HK 10 cents per share Key Financial Indicators for FY2023 | Metric | FY2023 (RMB thousand) | FY2022 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,178,414 | 1,095,791 | +7.5% | | Profit from Operations | 254,265 | 253,671 | +0.2% | | Profit Attributable to Equity Holders | 91,167 | 111,235 | -18.0% | | Basic Earnings Per Share (RMB) | 0.08 | 0.10 | -20.0% | | Total Assets | 4,934,102 | 4,372,118 | +12.8% | | Net Assets | 1,242,575 | 1,365,453 | -9.0% | - The Board resolved to declare a final dividend of HK 10 cents per share, double the HK 5 cents per share in 2022[2] Consolidated Financial Statements Consolidated Income Statement In 2023, the company's revenue reached RMB 1,178.4 million, a 7.5% increase, but increased expenses including depreciation, inventory costs, and finance costs led to a 24.5% decrease in profit for the year, from RMB 109 million to RMB 82.1 million Key Data from Consolidated Income Statement for FY2023 | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,178,414 | 1,095,791 | +7.5% | | Profit from Operations | 254,265 | 253,671 | +0.2% | | Finance Costs | (136,957) | (101,460) | +35.0% | | Profit Before Tax | 117,308 | 152,211 | -22.9% | | Profit for the Year | 82,092 | 108,705 | -24.5% | | Profit Attributable to Equity Holders | 91,167 | 111,235 | -18.0% | Consolidated Statement of Financial Position As of end-2023, total assets grew to RMB 4,934.1 million, driven by non-current assets, while total liabilities also increased, with current liabilities exceeding current assets, expanding net current liabilities to RMB 937.3 million, and total equity decreased 9.0% to RMB 1,242.6 million Key Data from Statement of Financial Position as of End 2023 | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current Assets | 4,111,352 | 3,871,144 | +6.2% | | Current Assets | 822,750 | 500,974 | +64.2% | | Total Assets | 4,934,102 | 4,372,118 | +12.8% | | Liabilities and Equity | | | | | Current Liabilities | 1,760,055 | 1,355,963 | +29.8% | | Non-current Liabilities | 1,931,472 | 1,650,702 | +17.0% | | Total Liabilities | 3,691,527 | 3,006,665 | +22.8% | | Net Assets (Total Equity) | 1,242,575 | 1,365,453 | -9.0% | | Net Current Liabilities | (937,305) | (854,989) | +9.6% | Summary of Notes to Financial Statements Revenue and Segment Reporting In 2023, total revenue increased 7.5% to RMB 1,178.4 million, with growth across all three business segments: facility usage and management services, wastewater treatment and utilities, and sales of goods and ancillary services, while the 'Leasing and Facility Usage' segment contributed the majority of adjusted EBITDA Revenue by Business Line | Business Line | 2023 (RMB thousand) | 2022 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Facility Usage and Management Services | 310,461 | 291,652 | +6.4% | | Wastewater Treatment and Utilities | 443,290 | 433,322 | +2.3% | | Sales of Goods and Ancillary Services | 294,210 | 249,915 | +17.7% | | Gross Rental Income from Investment Properties | 130,453 | 120,902 | +7.9% | | Total | 1,178,414 | 1,095,791 | +7.5% | Segment Results (Adjusted EBITDA) | Segment | 2023 (RMB thousand) | 2022 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Leasing and Facility Usage | 401,422 | 397,824 | +0.9% | | Wastewater Treatment and Utilities | 114,883 | 88,552 | +29.7% | | Sales of Goods and Ancillary Services | 28,502 | 14,752 | +93.2% | | Total Reportable Segment Profit | 544,807 | 501,128 | +8.7% | Costs and Expenses In 2023, several key costs increased significantly, with finance costs rising 35.0% to RMB 137.0 million due to increased borrowings, depreciation and amortization increasing 20.6% to RMB 264.3 million from new asset operations, and staff and inventory costs also growing Key Cost and Expense Items | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 136,957 | 101,460 | +35.0% | | Staff Costs | 139,622 | 133,404 | +4.7% | | Depreciation and Amortization | 264,263 | 219,213 | +20.6% | | Cost of Inventories | 362,791 | 342,189 | +6.0% | Income Tax Income tax expense decreased 19.0% to RMB 35.2 million in 2023, primarily due to reduced taxable income, preferential 15% high-tech enterprise tax rates for some subsidiaries, and a refund of prior-year withholding tax due to a Hong Kong subsidiary obtaining resident status - Three of the Group's subsidiaries, Huizhou Jinmaoyuan, Tianjin Bingang, and Jingzhou Jinyuan, qualified as high-tech enterprises, enjoying a 15% preferential income tax rate[35] - Due to a Hong Kong subsidiary obtaining a Hong Kong resident certificate, the withholding tax rate on profit distribution from mainland China to Hong Kong decreased from 10% to 5%, resulting in a refund of prior-year withholding tax totaling RMB 7.245 million[36] Dividends The Board proposed a final dividend of HKD 0.10 per share for 2023, totaling approximately RMB 101.0 million, double the HKD 0.05 per share in 2022, reflecting a commitment to shareholder returns despite profit pressure, pending shareholder approval Proposed Final Dividends | Year | Dividend Per Ordinary Share (HKD) | Estimated Total Amount (RMB thousand) | | :--- | :--- | :--- | | 2023 | 0.10 | 100,514 | | 2022 | 0.05 | 49,289 | Management Discussion and Analysis Business Review and Outlook In 2023, the company operated five surface treatment circular economy industrial parks, increasing total leasable area to 1,178 thousand square meters with an 82.3% occupancy rate, and completed Phase I of the East China Park, while wastewater treatment capacity rose to 23,500 tons per day, though overall utilization decreased to 41.5% due to new park infancy, with future plans for expansion and new hazardous solid waste businesses Occupancy Rates by Park (as of Year-End) | Park | 2023 Occupancy Rate | 2022 Occupancy Rate | | :--- | :--- | :--- | | Guangdong Huizhou | 95.8% | 94.6% | | Tianjin Bingang | 90.9% | 91.8% | | Central China | 39.2% | 32.9% | | Qingshen | 46.7% | 38.7% | | East China | 86.7% | N/A | | Total | 82.3% | 79.9% | Wastewater Treatment Capacity and Utilization Rate | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Daily Wastewater Treatment Capacity (tons) | 23,500 | 18,500 | | Annual Average Daily Treatment Volume (tons) | 9,747 | 9,471 | | Annual Average Utilization Rate | 41.5% | 51.2% | - The company's fifth industrial park, 'East China Park', completed Phase I in October 2023 and entered trial production, adding 120 thousand square meters of leasable factory space and 5,500 tons per day of wastewater treatment capacity[57][68][69] - The company plans to actively explore other businesses related to the electroplating industry and environmental protection, including hazardous solid waste, to achieve green, low-carbon, and circular development[66][67] Operating Performance Analysis In 2023, total revenue grew 7.5% to RMB 1,178.4 million, driven by all segments, especially sales of goods and ancillary services at 17.7%, but increased depreciation from new park operations and a 35.0% surge in finance costs from bank borrowings reduced operating profit margin from 23.1% to 21.6%, leading to an 18.0% decline in profit attributable to equity holders to RMB 91.2 million - Revenue growth was primarily driven by three factors: a 6.9% increase in leasing and facility usage service income due to expanded leasing area; a 2.7% increase in wastewater treatment fees from higher freshwater consumption; and an 18.9% increase in consumable sales income due to tenant demand and higher selling prices[72][74][77] - Operating costs increased 9.2% from RMB 862.0 million to RMB 941.0 million, with depreciation and amortization rising by RMB 45.1 million due to new property and equipment operations, and inventory costs increasing by RMB 20.6 million due to higher sales and improved treatment standards[78][79][80] - Finance costs significantly increased by 35.0% from RMB 102.0 million to RMB 137.0 million due to higher average bank loan balances, representing a major factor eroding profit[88] - Ultimately, profit attributable to equity holders decreased 18.0% from RMB 111.0 million to RMB 91.2 million[91] Liquidity and Capital Resources As of end-2023, the company's financial leverage significantly increased, with net current liabilities rising to RMB 937.3 million, total interest-bearing loans reaching RMB 2,751.0 million (up 23.2%), the debt-to-asset ratio climbing from 163.6% to 221.4%, and the adjusted net debt-to-equity ratio increasing from 1.46x to 1.96x, reflecting increased debt financing for business expansion Liquidity Position | Item | December 31, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Current Assets | 822,750 | 500,974 | | Current Liabilities | 1,760,055 | 1,355,963 | | Net Current Liabilities | (937,305) | (854,989) | Leverage Ratios | Ratio | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Debt-to-Asset Ratio | 221.4% | 163.6% | | Adjusted Net Debt-to-Equity Ratio | 1.96 | 1.46 | - Capital expenditure in 2023 was approximately RMB 592.0 million, primarily for the acquisition of investment properties, plant, and equipment, funded by cash from operating activities and bank loans[97] Significant Transactions and Share Repurchases During the reporting period, the company acquired an additional 38.72% equity interest in its subsidiary Tianjin Bingang for RMB 194.0 million, increasing its stake to 89.72%, and repurchased 3.386 million shares for approximately HKD 3.46 million, with post-period events including a CEO change and further land acquisition in Jiangsu Taixing for East China Park expansion - The company acquired a 38.72% equity interest in Tianjin Bingang for approximately RMB 193.6 million, increasing its stake to 89.72%, with Tianjin Bingang remaining a subsidiary[102] Details of Share Repurchases in 2023 | Date | Number of Shares (shares) | Total Consideration (HKD) | | :--- | :--- | :--- | | March 30, 2023 | 310,000 | 297,140.00 | | March 31, 2023 | 1,650,000 | 1,666,500.00 | | November 15, 2023 | 746,000 | 782,360.00 | | November 16, 2023 | 680,000 | 713,440.00 | | Total | 3,386,000 | 3,459,440.00 | - Post-reporting period events include the appointment of Mr. Huang Qiyang as Executive Director and CEO effective January 1, 2024, and the successful bid for land use rights in Taixing City, Jiangsu Province, in March 2024, for further development of the East China Park[118][120]