中集安瑞科(03899) - 2024 - 中期业绩

Financial Highlights The company's first-half 2024 financial performance shows revenue growth of 6.7% but a decline in net profit by 11.6% and basic EPS by 14.8% 2024 H1 Key Financial Data (Unaudited) | Metric | H1 2024 (Unaudited) (RMB '000) | H1 2023 (Unaudited) (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11,479,938 | 10,756,489 | 6.7% | | Net Profit | 503,829 | 570,032 | (11.6%) | | Profit attributable to equity holders | 486,141 | 568,673 | (14.5%) | | Core Profit | 604,208 | 625,944 | (3.5%) | | Basic Earnings Per Share | RMB 0.241 | RMB 0.283 | (14.8%) | | Gross Margin | 14.3% | 16.5% | (2.2) percentage points | Consolidated Financial Statements This section presents the company's consolidated income statement, comprehensive income statement, balance sheet, and statement of changes in equity for the reporting period Consolidated Income Statement During the reporting period, the company achieved revenue of approximately RMB 11.48 billion, a 6.7% year-on-year increase, but gross profit decreased to RMB 1.64 billion and profit for the period fell by 11.6% due to higher cost of sales Consolidated Income Statement Key Data (For the six months ended June 30) | Item | 2024 (RMB '000) | 2023 (RMB '000) | | :--- | :--- | :--- | | Revenue | 11,479,938 | 10,756,489 | | Gross Profit | 1,635,940 | 1,771,166 | | Operating Profit | 702,106 | 751,497 | | Profit Before Tax | 650,685 | 730,318 | | Profit for the Period | 503,829 | 570,032 | | Basic Earnings Per Share | RMB 0.241 | RMB 0.283 | Consolidated Statement of Comprehensive Income Total comprehensive income for the period decreased to RMB 434 million, a 30.7% year-on-year reduction, primarily due to an exchange difference loss of approximately RMB 69.57 million from translating overseas operations - Total comprehensive income for the period was RMB 434 million, a significant decrease from RMB 626 million in the prior year, mainly due to the exchange difference from overseas operations turning from a gain to a loss[3] Consolidated Balance Sheet As of June 30, 2024, total assets increased to RMB 29.68 billion, total liabilities rose to RMB 17.23 billion, and net assets slightly increased to RMB 12.45 billion, driven by growth in current assets and liabilities Balance Sheet Summary | Item | As at June 30, 2024 (RMB '000) | As at December 31, 2023 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 29,679,098 | 27,587,424 | | Total Liabilities | 17,230,106 | 15,213,780 | | Net Assets | 12,448,992 | 12,373,644 | Consolidated Statement of Changes in Equity As of June 30, 2024, equity attributable to equity holders decreased to RMB 10.93 billion from RMB 11.23 billion at the beginning of the year, influenced by profit for the period, payment of 2023 final dividends, and exchange differences - During the reporting period, the company paid RMB 563.5 million in final dividends for 2023 to its shareholders[8] Notes to the Financial Statements This section provides detailed notes on the basis of financial statement preparation, accounting policies, revenue segmentation, key income statement items, earnings per share, and receivables and payables Basis of Preparation and Accounting Policies This interim financial report is prepared in accordance with HKAS 34, reviewed by KPMG, and incorporates newly adopted HKFRS standards which had no material impact on the Group - The financial report is prepared in accordance with Hong Kong Accounting Standards and incorporates newly revised standards, which have not had a material impact on the Group[9][10] Revenue and Segment Reporting The Group's revenue primarily derives from goods sales and engineering contracts across three segments: Clean Energy, Chemicals & Environment, and Liquid Food, with Clean Energy being the largest and fastest-growing contributor while Chemicals & Environment revenue significantly declined Revenue Performance by Segment (For the six months ended June 30) | Segment | 2024 Revenue (RMB '000) | 2023 Revenue (RMB '000) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Clean Energy | 7,876,340 | 6,293,551 | +25.1% | | Chemicals & Environment | 1,296,698 | 2,450,832 | -47.1% | | Liquid Food | 2,306,900 | 2,012,106 | +14.7% | | Total | 11,479,938 | 10,756,489 | +6.7% | Key Income Statement Items During the period, finance costs increased from RMB 38.43 million to RMB 48.07 million, R&D costs rose to RMB 331 million, and share-based payment expenses significantly increased to RMB 78.43 million, impacting profitability - Finance costs increased by 25.1% year-on-year to RMB 48.07 million[21] - Research and development costs totaled RMB 331 million, an increase from RMB 319 million in the prior year[22] - Share-based payment expenses were RMB 78.43 million, a significant increase of 120% from RMB 35.62 million in the prior year[22] Earnings Per Share During the reporting period, basic earnings per share decreased by 14.8% to RMB 0.241 from RMB 0.283 in the prior year, while diluted earnings per share fell by 11.9% to RMB 0.222 Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Basic Earnings Per Share | RMB 0.241 | RMB 0.283 | | Diluted Earnings Per Share | RMB 0.222 | RMB 0.252 | Receivables and Payables As of period-end, total trade and bills receivables were RMB 3.71 billion, stable from year-start, while total trade and bills payables increased by 16.1% to RMB 5.16 billion, with most due within three months - Total trade and bills receivables amounted to RMB 3.71 billion, with 83% being current[30][32] - Total trade and bills payables amounted to RMB 5.16 billion, with 75% due within three months[32] Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2024, having already paid the 2023 final dividend totaling RMB 563.5 million during the period - The Board decided not to declare an interim dividend for 2024[33] Management Discussion and Analysis This section provides an in-depth analysis of the Group's financial performance, operational highlights, and strategic outlook across its key business segments Financial Review In H1 2024, the Group's total revenue grew by 6.7%, driven by Clean Energy and Liquid Food segments, despite a decline in Chemicals & Environment, while new and on-hand orders reached record highs, though overall gross margin decreased to 14.3% and core profit slightly declined by 3.5% Revenue Analysis Total revenue increased by 6.7% to RMB 11.48 billion, primarily driven by a 25.1% surge in the Clean Energy segment due to domestic natural gas consumption recovery, while Chemicals & Environment revenue significantly declined by 47.1% - The Clean Energy segment's revenue contribution increased from 58.5% to 68.6%, becoming the Group's most significant revenue source[37] - The Chemicals & Environment segment's revenue contribution decreased from 22.8% to 11.3%, mainly due to the sluggish chemical industry and slowing tank container demand[38] New and On-hand Orders The Group achieved strong growth and record highs in both new and on-hand orders, primarily driven by the Clean Energy segment's 70.7% surge in on-hand orders, despite year-on-year declines in Chemicals & Environment and Liquid Food new orders Order Status (RMB million) | Order Type | H1 2024 | H1 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total New Orders | 16,399 | 12,666 | +29.5% | | - Clean Energy | 12,919 | 7,912 | +63.3% | | - Chemicals & Environment | 1,688 | 2,309 | -26.9% | | - Liquid Food | 1,792 | 2,445 | -26.7% | | Total On-hand Orders (Period-end) | 29,351 | 20,602 | +42.5% | | - Clean Energy | 22,933 | 13,438 | +70.7% | | - Chemicals & Environment | 1,522 | 2,095 | -27.4% | | - Liquid Food | 4,896 | 5,069 | -3.4% | Gross Margin and Profitability Overall gross margin decreased from 16.5% to 14.3%, primarily due to lower margins in the Chemicals & Environment segment from reduced capacity utilization and slight declines in Liquid Food due to rising overseas project costs, while Clean Energy's margin slightly increased - The Group's overall gross margin decreased by 2.2 percentage points to 14.3%[41] - The effective tax rate increased from 21.9% to 22.6%, due to a decreased profit contribution from high-tech enterprises enjoying preferential tax rates[44] Liquidity and Financial Resources The company maintains a sound financial position with RMB 7.25 billion in cash and equivalents at period-end, while the gearing ratio increased from 21.2% to 24.7%, and operating activities generated a net cash inflow of RMB 617 million Key Financial Ratios | Metric | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB '000) | 7,246,810 | 6,998,191 | | Interest-bearing Liabilities (RMB '000) | 3,078,491 | 2,626,935 | | Gearing Ratio | 24.7% | 21.2% | - Operating activities recorded a net cash inflow of RMB 617 million, primarily due to an increase in contract liabilities[47] Assets and Liabilities As of period-end, total assets increased to RMB 29.68 billion and total liabilities to RMB 17.23 billion, resulting in a slight net asset increase to RMB 12.45 billion, with net assets per share rising from RMB 6.101 to RMB 6.138 - Total assets increased by 7.6% from the beginning of the year, while total liabilities increased by 13.3%[50] Other Disclosures The Group's contingent liabilities, primarily performance guarantees, significantly increased to RMB 6.67 billion at period-end, capital expenditure rose to RMB 392 million, and total employees grew to approximately 11,000 - Capital expenditure was RMB 392 million, a 21.5% year-on-year increase, primarily for capacity enhancement and general maintenance[54] - Total employees numbered approximately 11,000, with total staff costs of RMB 1.36 billion, a 14.3% year-on-year increase[55] Business Review and Outlook This section provides a detailed review of the performance, strategic outlook, and research and development initiatives for each of the Group's core business segments Clean Energy Segment The Clean Energy segment, a core business, showed strong performance in H1 2024 with significant revenue and order growth, driven by high demand in natural gas heavy trucks, green shipping trends, and accelerated hydrogen energy development, with an optimistic outlook for transitioning into a comprehensive service provider amidst global LNG demand growth and energy transition Business Review Driven by the economic advantages of natural gas, LNG vehicle cylinder sales revenue surged by 711% due to increased natural gas heavy truck sales, while overseas land-based clean energy new orders grew by 48.8%, and hydrogen energy projects advanced with policy support - Domestic natural gas heavy truck sales increased by 104% year-on-year, driving the Group's LNG vehicle cylinder sales revenue to approximately RMB 720 million, a 711% surge year-on-year[59] - The marine clean energy business secured 16 new vessel orders during the period and is actively developing green methanol fuel solutions[60] - Hydrogen energy projects are accelerating with policy support, as the Group secured or delivered projects in hydrogen production, storage, transportation, and refueling stations[61][62] Outlook and Strategy Global LNG demand, particularly in China, is expected to drive opportunities for the Group's LNG equipment and engineering, while green shipping and inland waterway 'oil-to-gas' conversions offer vast potential for marine business, and hydrogen energy's inclusion in national energy systems accelerates industrialization, leading the Group to extend its strategy from 'equipment + engineering' to a 'comprehensive service provider' - Goldman Sachs forecasts global LNG investment to grow by over 50% by 2029, and Shell predicts global LNG demand to increase by over 50% by 2040, with China as a key driver[63][64] - The Group's strategic positioning will gradually extend from 'equipment + engineering' to a 'comprehensive service provider', transforming into a technology-driven, low-carbon, smart new energy solution provider[67] Research and Development Significant R&D achievements include developing new products and upgrading technologies, participating in national and industry standards, completing international underwater CO2 storage tank container development, delivering the world's first large vertical marine fuel tank, and making major strides in hydrogen energy, with commercial liquid hydrogen storage tanks entering type testing and Type IV hydrogen cylinder production lines entering commissioning - Breakthroughs in hydrogen energy R&D include commercial liquid hydrogen storage tanks and tank trucks entering type testing, with Type IV hydrogen cylinders expected to achieve mass production in the second half of the year[74] - The development of international underwater CO2 storage tank containers has been completed, with mass sales achieved[71] Chemicals & Environment Segment Affected by the weak global chemical industry recovery, the tank container market demand slowed, leading to a significant revenue decline for this segment in H1, yet the company maintained its global market leadership, with long-term growth supported by multimodal transport policies and stricter chemical safety requirements, while future focus includes emerging industries and aftermarket services Business Review Due to global economic impacts, the chemical industry is experiencing a weak recovery, leading to a slowdown in tank container market demand compared to previous high growth, yet the segment maintained its global market share leadership, with steady development in medical equipment components and ongoing progress in aftermarket services - According to ITCO statistics, the global tank container fleet's compound annual growth rate was 8% (2013-2023), maintaining a long-term upward trend[76] Outlook and Strategy National policies promoting multimodal transport and shifting bulk cargo from road to rail and water offer long-term benefits for the tank container industry, while the segment will focus on new energy and high-tech industries, enhance product intelligence, and accelerate global expansion of aftermarket services - National policies emphasize reducing logistics costs, optimizing transport structures, and supporting the development of multimodal transport with 'single bill' and 'single container' systems, benefiting the tank container industry[77] - Strategic focus is on new application scenarios, including high-tech industries such as battery electrolytes and semiconductor chips, and actively entering the biopharmaceutical industry[78] Research and Development R&D focuses on providing comprehensive logistics solutions, successfully developing and mass-producing the world's largest 52-foot tank container as a rail tank car alternative, operating over ten thousand devices on its smart IoT platform with remote upgrade capabilities, and advancing in eco-friendly coating and welding automation technologies - Successfully developed and mass-produced the world's largest 52-foot tank container, which can be used to replace rail tank cars[80] Liquid Food Segment The Liquid Food segment achieved steady revenue growth in H1, with its business entity 'CIMC ENRIC Alcohol Technology' successfully listed on the New Third Board, despite a year-on-year decline in new orders due to rising overseas costs and weak consumption, while future strategy focuses on consolidating leadership in beer and spirits, seizing domestic market transformation opportunities, and expanding into diversified fields like biomanufacturing Business Review The segment's business entity, CIMC ENRIC Alcohol Technology Co Ltd, was officially listed on the New Third Board on August 8, 2024, while the company mitigates challenges from rising overseas costs and changing consumer behavior by focusing on domestic market opportunities - The segment's business entity, CIMC ENRIC Alcohol Technology Co Ltd (CIMC ENRIC Alcohol Technology), was officially listed on the New Third Board on August 8, 2024, with stock code: 872914[81][83] Outlook and Strategy Global population growth, expanding middle class, and focus on sustainable production are key industry drivers, prompting the company to consolidate its leadership in beer and spirits, expand into other advantageous sectors, and capitalize on market growth from clients' carbon neutrality transitions - Future focus will be on carbon neutrality transformation and upgrade opportunities for global and domestic breweries, solid fermentation, distilleries, and biopharmaceutical plants, aiming to increase the revenue contribution from China operations[84] Research and Development R&D activities continue, including exploring industrial-grade complex distillation systems, developing energy-efficient mechanical vapor recompression solutions for the whiskey industry, deeply participating in China's Baijiu industry technological upgrades, and engaging in multiple collaborative public research projects with universities - R&D directions include industrial-grade distillation systems, energy-saving solutions for the whiskey industry, and technological equipment upgrades for China's Baijiu industry chain[87] Corporate Governance and Other Information This section outlines the company's adherence to corporate governance principles and details securities transactions during the reporting period Corporate Governance The company consistently complied with all code provisions of the HKEX Corporate Governance Code during the reporting period, and the Audit Committee reviewed the interim financial report - The company confirmed compliance with all corporate governance code provisions during the reporting period[88] Securities Transactions During the reporting period, the trustee of the 2020 Share Award Scheme purchased 300,000 company shares on the Stock Exchange, with no other trading or redemption of listed securities by the company or its subsidiaries - Under the 2020 Share Award Scheme, the trustee purchased 300,000 company shares during the period[89]