Financial Performance - Total revenue from operations amounted to RMB19.9 million, a decrease of 16.4% compared to RMB23.7 million in the same period last year[17]. - Sales of water treatment products and equipment generated RMB19.3 million for the Group[17]. - Gross profit decreased by 10.0% to RMB1.0 million, while gross profit margin increased to 5.2% from 4.8%[17]. - The Group achieved a net profit of RMB15.6 million, turning around from a net loss of RMB12.2 million in the previous period[17]. - Basic earnings per share was RMB1.85 cents[17]. - Revenue for the six months ended 30 June 2021 was RMB 19,857,000, a decrease of 16.5% compared to RMB 23,717,000 for the same period in 2020[68]. - Gross profit for the same period was RMB 1,029,000, down from RMB 1,149,000, resulting in a gross margin of approximately 5.2%[68]. - Profit before taxation for the six months ended 30 June 2021 was RMB 15,550,000, a significant recovery from a loss of RMB 12,237,000 in the prior year[68]. - Total comprehensive income for the period attributable to owners of the Company was RMB 16,397,000, compared to a loss of RMB 13,555,000 in the same period of 2020[68]. - Basic and diluted earnings per share for the six months ended 30 June 2021 was RMB 1.85, compared to a loss per share of RMB 1.46 in the previous year[68]. Market and Industry Outlook - The Company is positioned to benefit from China's commitment to peak carbon emissions before 2030 and achieve carbon neutrality by 2060, providing strong market prospects for the environmental protection industry[16]. - The Ministry of Ecology and Environment has set targets for nationwide greenhouse gas emission controls, enhancing the regulatory framework for the industry[16]. - The environmental protection industry is expected to see significant growth opportunities as major cities align their five-year plans with national emission reduction goals[16]. - The Company continues to focus on sustainable development and green recovery measures in response to the post-pandemic economic landscape[15]. Assets and Liabilities - The Group's total assets as of June 30, 2021, amounted to RMB1,227.4 million, compared to RMB1,265.0 million as of December 31, 2020[22]. - The Group's total liabilities decreased to RMB91.9 million as of June 30, 2021, down RMB54.0 million from RMB145.9 million as of December 31, 2020[22]. - The Group's total equity increased to RMB1,135.5 million as of June 30, 2021, from RMB1,119.1 million as of December 31, 2020[22]. - The Group's cash and cash equivalents were RMB1,219.1 million as of June 30, 2021, slightly down from RMB1,219.8 million as of December 31, 2020[22]. - As of 30 June 2021, total assets less current liabilities amounted to RMB 1,138,524,000, an increase from RMB 1,122,436,000 as of 31 December 2020[71]. - Current liabilities decreased to RMB 88,842,000 from RMB 142,586,000 as of 31 December 2020, indicating improved liquidity[71]. Shareholder Information - As of June 30, 2021, Mr. Jiang Xin holds a beneficial interest of 356,568,000 shares, representing approximately 42.45% of the issued share capital[38]. - Mr. Jiang Xin also has a short position of 266,568,000 shares, which accounts for about 31.73% of the issued share capital[38]. - Mr. Fan Yajun holds a beneficial interest of 2,500,000 shares, representing approximately 0.3% of the issued share capital[38]. - Mr. Lai Wing Lee has a beneficial interest of 500,000 shares, which is about 0.06% of the issued share capital[38]. - Mr. Leung Shu Sun holds a beneficial interest of 500,000 shares, also representing approximately 0.06% of the issued share capital[38]. - The total number of issued shares in Praise Fortune Limited as of June 30, 2021, was 129,215 shares[41]. - Praise Fortune Limited holds a beneficial interest of 356,568,000 shares, representing approximately 42.45% of the issued share capital, and a short position of 266,568,000 shares, representing approximately 31.73%[60]. - Caitong International Asset Management Co., Limited has a long position of 250,000,000 shares, accounting for approximately 29.76% of the issued share capital[60]. - The company’s shareholding structure includes interests held by the Ministry of Finance of Zhejiang Province, reflecting government involvement[60]. Employee and Remuneration - The total remuneration cost for employees, including Directors' remuneration, was RMB6.4 million for the six months ended June 30, 2021, compared to RMB5.9 million for the same period in 2020[26]. - The Group has approximately 87 employees and maintains competitive salary levels, reviewed annually[26]. - Key management personnel remuneration for the six months ended June 30, 2021, was RMB 1,030,000, a decrease of approximately 4.7% from RMB 1,081,000 in 2020[199]. - Short-term employee benefits for the six months ended June 30, 2021, were RMB 1,016,000, down from RMB 1,072,000 in 2020, indicating a decline of approximately 5.2%[199]. - Post-employment benefits increased to RMB 14,000 in the first half of 2021, compared to RMB 9,000 in the same period of 2020, representing a growth of approximately 55.6%[199]. Compliance and Governance - The Company has confirmed compliance with its Securities Dealing Code by all Directors throughout the six months ended June 30, 2021[31]. - No incidents of noncompliance with the Company's Securities Dealing Code by employees were noted[31]. - The audit committee has reviewed the interim results and report for the six months ended June 30, 2021, ensuring compliance with financial reporting standards[64]. - The financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with applicable disclosure requirements[87]. Segment Information - The company is primarily engaged in the sales of environmental protection products and equipment, as well as undertaking environmental construction engineering services in China[86]. - The revenue from contracts with customers is disaggregated into two main segments: EP products and equipment, and EP construction engineering services[107]. - The Group's operating segments are organized into two main divisions: (i) EP products and equipment and (ii) EP construction engineering services, all located in the PRC[107]. - The adjusted EBITDA for the reportable segments was RMB 22,675,000, resulting in a total adjusted EBITDA of RMB 22,704,000[112]. - The company provided segment information concerning revenue, depreciation, amortization, and impairment losses to assess segment performance and allocate resources[112]. Cash Flow and Investments - Net cash used in operating activities for the six months ended June 30, 2021, was RMB (2,444), a significant decline from RMB 16,270 generated in the same period of 2020[78]. - The company reported a net cash generated from investing activities of RMB 2,169 for the six months ended June 30, 2021, compared to RMB 1,907 in the same period of 2020, indicating a growth of 13.7%[78]. - The Group acquired property, plant, and equipment with a total cost of approximately RMB 5,000 for the six months ended June 30, 2021, compared to nil for the same period in 2020[165]. Impairment and Provisions - The net impairment loss recognized on trade receivables for the six months ended June 30, 2021 was RMB 21,720,000[112]. - The Group's provision for impairment loss on trade receivables was RMB 219 as of June 30, 2021, compared to RMB 21,939 as of December 31, 2020[167].
泛亚环保(00556) - 2021 - 中期财报