CIMC ENRIC(HK:03899)2020-09-07 09:48Financial Performance - Total revenue for the first half of 2020 was RMB 5,319,352 thousand, a decrease of 19.2% compared to RMB 6,584,418 thousand in the same period of 2019[7]. - Net profit attributable to equity holders was RMB 215,993 thousand, down 43.6% from RMB 382,879 thousand in 2019[7]. - Basic earnings per share decreased by 44.4% to RMB 0.109 from RMB 0.196 in the previous year[7]. - The company's profit for the six months ended June 30, 2020, was RMB 205,230 thousand, a decrease of 47% compared to RMB 387,433 thousand for the same period in 2019[11]. - Total comprehensive income for the period was RMB 188,391 thousand, down 51% from RMB 388,400 thousand in the previous year[11]. - The reported segment profit for the first half of 2020 was RMB 308,332, a decrease of 50.7% compared to RMB 625,085 in 2019[28]. - Revenue from the sale of goods was RMB 4,058,090, down 6.5% from RMB 4,340,974 in the same period of 2019[31]. - Revenue from engineering project contracts was RMB 1,261,262, a decline of 43.8% from RMB 2,243,444 in 2019[31]. - The overall gross profit margin declined by 1.1 percentage points to 14.2% from 15.3% in 2019[69]. - Operating profit margin decreased by 2.3 percentage points to 5.4% from 7.7% in the same period last year, with operating profit down by 43.1%[69]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 15,758,966 thousand, a slight decrease of 0.9% from RMB 15,900,033 thousand at the end of 2019[6]. - The company's total liabilities were RMB 7,606,083 thousand, an increase from RMB 7,397,817 thousand at the end of 2019[13]. - The net asset value of the company was RMB 7,237,044 thousand as of June 30, 2020, down from RMB 7,384,511 thousand at the end of 2019[13]. - The total assets of the reporting segments as of June 30, 2020, were RMB 13,821,084 thousand, slightly down from RMB 14,091,345 thousand as of December 31, 2019[26]. - The total liabilities as of June 30, 2020, were RMB 8,521,922, which is relatively stable compared to RMB 8,515,522 at the end of 2019[29]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 227,466,000, compared to a cash outflow of RMB 296,124,000 for the same period in 2019[17]. - The company reported a net cash outflow from investing activities of RMB 214,663,000 for the first half of 2020, compared to RMB 258,613,000 in the previous year[17]. - The net cash used in financing activities was RMB 217,585,000 for the first half of 2020, a significant decrease from RMB 527,633,000 in the same period of 2019[17]. - The company's cash and cash equivalents decreased by RMB 204,782,000 during the first half of 2020, compared to a decrease of RMB 1,082,370,000 in the same period of 2019[17]. - Cash and cash equivalents as of June 30, 2020, were RMB 2,330,622,000, a decrease of 8.0% from RMB 2,534,752,000 as of December 31, 2019[44]. Inventory and Receivables - Inventory turnover days increased to 149 days from 116 days, indicating a longer holding period for inventory[7]. - Total inventory as of June 30, 2020, was RMB 3,856,692,000, an increase of 4.9% compared to RMB 3,676,319,000 as of December 31, 2019[40]. - Trade receivables as of June 30, 2020, amounted to RMB 2,634,336,000, a decrease of 3.0% from RMB 2,715,828,000 as of December 31, 2019[41]. - Trade payables as of June 30, 2020, were RMB 2,241,025,000, a decrease of 7.4% from RMB 2,420,392,000 as of December 31, 2019[46]. Subsidiaries and Acquisitions - The company has over 20 subsidiaries globally, with production bases and advanced R&D centers in multiple countries[4]. - The company acquired 100% of Lindenau Full Tank Services GmbH for €3,010,000 (approximately RMB 23,328,000) on January 1, 2020[61]. - The company also acquired 100% of McMillan (Coppersmiths & Fabricators) Ltd. for £3,800,000 (approximately RMB 33,223,000) on April 3, 2020[61]. - Total cash outflow for acquisitions amounted to RMB 52,280 thousand after accounting for cash held by acquired subsidiaries[62]. Research and Development - The research and development costs for the first half of 2020 were RMB 130,088, an increase of 4.3% from RMB 125,015 in 2019[35]. - The clean energy division has successfully completed multiple R&D projects, including the development of an active intelligent gas supply system for LNG vehicles, ensuring stable pressure and power output[83]. - The division has developed the world's first 45-foot LNG tank container with a lightweight frame structure and large volume design, which has already secured export orders[83]. - The division is actively expanding into the environmental industry, focusing on industrial hazardous waste management, which has high technical and qualification barriers, and significant growth potential[87]. Market and Segment Performance - The clean energy segment generated revenue of RMB 2,993,243 thousand from external customers, while the chemical environment segment generated RMB 1,072,219 thousand[26]. - The clean energy segment's revenue fell by 4.1% to RMB 2,993,243,000, accounting for 56.3% of total revenue, up from 47.4% in 2019[67]. - The chemical environment segment's revenue dropped by 44.5% to RMB 1,072,219,000, representing 20.2% of total revenue, down from 29.4% in 2019[67]. - The liquid food segment's revenue decreased by 32.2% to RMB 1,021,611,000, making up 19.2% of total revenue, down from 22.9% in 2019[68]. Shareholder Information - As of June 30, 2020, the total issued A-shares of the company amounted to 1,526,182,872 shares, with the percentage calculations based on this figure[109]. - Major shareholder 中集 holds 1,371,016,211 shares, representing 68.20% of the total issued share capital[111]. - The company has granted stock options for a total of 76,620,000 shares under its incentive plan as of June 30, 2020[113]. - The exercise price for the stock options is set at RMB 8.06 per share, with 75% of the options exercisable from September 28, 2014, to September 27, 2020[108]. Legal and Compliance - CIMC Enric Holdings Limited's subsidiary, CIMC Enric Investment Holdings Shenzhen Co., Ltd., is involved in a lawsuit where SOEG PTE LTD claims RMB 153,456,000 for equity transfer payment and RMB 50,000 for legal fees[126]. - The Jiangsu Provincial High People's Court ruled against SOEG's claims, requiring SOEG to bear litigation costs of RMB 809,330[126]. - The company has complied with the Corporate Governance Code as per the listing rules for the six months ending June 30, 2020[128].