Financial Performance - The company's revenue for the six months ended June 30, 2021, was approximately RMB 433.0 million, an increase of about RMB 114.8 million compared to RMB 318.2 million for the same period in 2020[5]. - The profit attributable to equity shareholders for the same period was approximately RMB 36.9 million, a decrease of about RMB 11.3 million from RMB 48.2 million in the previous year[5]. - Revenue for the period was approximately RMB 433.0 million, representing an increase of about 36.1% compared to the same period in 2020, driven by growth across all three business segments[22]. - Operating profit increased by approximately RMB 11.5 million or 15.6% from approximately RMB 73.4 million in the six months ended June 30, 2020, to approximately RMB 84.9 million, while the operating profit margin decreased from 23.1% to 19.6% due to increased operating costs[39]. - Net profit for the period was RMB 30,995 thousand, a decrease of 17.5% compared to RMB 37,697 thousand in 2020[88]. - The company reported a total comprehensive income of RMB 36,839,000 for the six months ended June 30, 2021, compared to RMB 48,039,000 for the same period in 2020, showing a decline of about 23.2%[95]. Revenue Breakdown - Revenue from leasing and facility usage increased by approximately RMB 21.0 million or 15.1% to about RMB 159.6 million compared to RMB 138.6 million for the six months ended June 30, 2020[24]. - Wastewater treatment fees rose by approximately RMB 24.1 million or 40.6% to about RMB 83.6 million from RMB 59.5 million for the six months ended June 30, 2020[26]. - Steam fees increased by approximately RMB 14.4 million or 41.2% to about RMB 49.4 million from RMB 35.0 million for the six months ended June 30, 2020[27]. - Utility system maintenance fees grew by approximately RMB 8.9 million or 37.1% to about RMB 32.9 million from RMB 24.0 million for the six months ended June 30, 2020[28]. - Sales of chemicals increased by approximately RMB 41.9 million or 85.1% to about RMB 91.0 million from RMB 49.2 million for the six months ended June 30, 2020[29]. Operational Metrics - The total leasable area across three plating industrial parks is 732,000 square meters, with a total occupancy rate of 84.8% as of June 30, 2021[8]. - The Guangdong Huizhou Park has a total leasable area of 400,000 square meters with a 100.0% occupancy rate[9]. - The Tianjin Binhai Park has a total leasable area of 260,000 square meters with a 78.5% occupancy rate[9]. - The Hubei Jingzhou Park has a total leasable area of 72,000 square meters with a 23.6% occupancy rate[9]. - The average daily wastewater treatment capacity across the three parks is 18,500 tons, with a utilization rate of 45.9%[10]. - The average daily wastewater treatment volume for the six months ended June 30, 2021, was 8,491 tons[10]. Costs and Expenses - Operating costs rose by approximately RMB 101.6 million or 40.6% to about RMB 352.0 million from RMB 250.4 million for the six months ended June 30, 2020[30]. - Depreciation and amortization increased by approximately RMB 13.7 million or 16.3% to about RMB 97.4 million from RMB 83.8 million for the six months ended June 30, 2020[32]. - Inventory costs surged by approximately RMB 58.7 million or 76.5% to about RMB 135.5 million from RMB 76.8 million for the six months ended June 30, 2020[33]. - Employee costs increased by approximately RMB 16.5 million or 57.5% to about RMB 45.2 million from RMB 28.7 million for the six months ended June 30, 2020[34]. - Utility costs rose by approximately RMB 4.2 million or 53.2% to about RMB 12.1 million from RMB 7.9 million for the six months ended June 30, 2020[35]. - Other expenses increased by approximately RMB 8.5 million or 16.0% from RMB 53.2 million in the six months ended June 30, 2020, to approximately RMB 61.7 million in the current period, primarily due to increased wastewater treatment costs and higher professional service fees[37]. Financing and Debt - As of June 30, 2021, total bank loans and borrowings amounted to approximately RMB 1,574.2 million, with a debt-to-equity ratio of approximately 1.3 times[49]. - The adjusted net debt-to-equity ratio as of June 30, 2021, is 1.19, compared to 1.01 as of December 31, 2020[51]. - Financing costs rose by approximately RMB 12.8 million or 46.3% from approximately RMB 27.7 million in the six months ended June 30, 2020, to approximately RMB 40.5 million, attributed to increased average bank loans and rising interest rates[40]. - The company raised RMB 523,964,000 from bank loans and other borrowings during the six months ended June 30, 2021, compared to RMB 154,077,000 in the same period of 2020, indicating a substantial increase in financing activities[99]. - The group’s bank loans of RMB 1,574,205,000 are subject to covenants, with no breaches reported as of June 30, 2021[138]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2021, amounted to approximately RMB 263.5 million, an increase from RMB 231.1 million for the same period in 2020[52]. - The company incurred a net cash outflow from investing activities of RMB 392,809,000 for the six months ended June 30, 2021, compared to RMB 171,869,000 in the same period in 2020, indicating a significant increase in investment expenditures[99]. - The cost of property, plant, and equipment acquired during the six months ended June 30, 2021, was RMB 324,884,000, up from RMB 199,864,000 for the same period in 2020, representing an increase of approximately 62.6%[126]. Employee and Management - The company has 687 full-time employees as of June 30, 2021, an increase of approximately 28.5% from 535 employees as of June 30, 2020[64]. - The total remuneration for key management personnel for the six months ended June 30, 2021, was RMB 2,806,000, slightly up from RMB 2,731,000 in the same period of 2020[144]. Future Plans and Developments - The group plans to expand its Guangdong Huizhou Park with a total construction area of approximately 48,000 square meters in the first phase, with an estimated cost of RMB 88.8 million[19]. - The construction of the Sichuan Qingshen Park is underway, with a planned maximum wastewater treatment capacity of 20,000 tons per day, and the first phase expected to add 5,000 tons per day upon completion[17]. - The second phase of the Hubei Jingzhou Park is under construction, with a total building area of 71,000 square meters and an estimated cost of RMB 161.0 million, expected to be completed in the second half of 2022[20]. Legal and Compliance - The interim financial report for the period ending June 30, 2021, was prepared in accordance with Hong Kong Accounting Standard 34[150]. - The review did not identify any matters that would lead to a belief that the interim financial report was not prepared in all material respects[150]. - The review was conducted by an independent auditor in compliance with the Hong Kong Institute of Certified Public Accountants' standards[149].
南海控股(00680) - 2021 - 中期财报