Company Overview - SIIC Environment Holdings Ltd. operates over 200 water treatment and supply projects, 8 waste incineration projects, and 10 sludge treatment projects across 19 municipalities and provinces in China[6]. - The company aims to expand its market share in water and solid waste treatment, and explore opportunities in industrial wastewater treatment, seawater desalination, and soil remediation[6]. - SIIC Environment is backed by strong mergers and acquisitions capabilities, positioning itself as a leading investor and operator in the environmental industry in China[5]. - The company has shown tremendous growth and continues to increase its market share in China's environmental sector[6]. - SIIC Environment's strategic investor, China Energy Conservation and Environmental Protection Group, is a state-owned enterprise focused on energy conservation and environmental protection[6]. - The company is committed to protecting the planet and conserving natural resources while pursuing growth[5]. - SIIC Environment was successfully listed on the Mainboard of SEHK in 2018, enhancing its visibility and market presence[6]. - The company has a strong operational history of over 15 years in the environmental protection industry in China[6]. - SIIC Environment's headquarters is located in Singapore, with significant operations in Hong Kong[7]. Project Operations - The company reported a daily capacity of 12,500 tonnes for the Anxi County Longmen Town WWTP BOT Project, which is currently in operation[26]. - The Dongguan City Dalang Songshanhu Southern WWTP Project has a daily capacity of 100,000 tonnes and is currently operational, with upgrades under construction by the government[26]. - The company holds a 75.5% effective interest in the Dongguan City Shijie Shayao WINTP Project 1st Phase, which is also in operation[26]. - The Anxi County Longmen Town WWTP BOT Project 2nd Phase, with a capacity of 12,500 tonnes, is planned for construction[26]. - The company is expanding its wastewater treatment projects in Guangdong Province, with multiple projects under various stages of construction and operation[26]. - The company aims to meet Class I water quality standards across its wastewater treatment projects[26]. - The Dongguan City Fenggang Yantian WWNP Project 2nd Phase has a capacity of 50,000 tonnes and is under construction by the government[26]. - The company is focused on enhancing its market presence through the development of new wastewater treatment facilities[26]. - The company is committed to sustainable practices in its wastewater treatment operations, aligning with environmental standards[26]. - The company is actively pursuing opportunities for expansion in the wastewater treatment sector across various provinces in China[26]. Financial Performance - The Group's revenue decreased from approximately RMB2,921.8 million in 1HFY2019 to RMB2,639.6 million in 1HFY2020, representing a decrease of 9.7%[64]. - Gross profit remained stable at RMB915.8 million in 1HFY2020 compared to RMB927.4 million in 1HFY2019[64]. - Profit for the period amounted to RMB391.3 million, up 4.8% compared to 1HFY2019[64]. - Profit after tax attributable to owners decreased from RMB300.2 million in 1HFY2019 to RMB281.2 million in 1HFY2020, a decrease of 6.3%[64]. - Operating and maintenance income and financial income from service concession arrangements surged by 9.0% in 1HFY2020 due to increased wastewater treatment volume and average treatment tariff[64]. - Construction revenue decreased by 30.6% in 1HFY2020 compared to 1HFY2019, primarily due to restrictions on projects during the Covid-19 outbreak[64]. - Total operating and maintenance income and financial income from service concession arrangements amounted to RMB1,692.4 million in 1HFY2020[68]. - Service income from non-service concession arrangements was RMB66.3 million in 1HFY2020, down from RMB90.2 million in 1HFY2019[69]. - Other revenue amounted to RMB66.1 million in 1HFY2020, a decrease from RMB105.4 million in 1HFY2019[70]. Assets and Liabilities - As of June 30, 2020, current assets amounted to RMB5.51 billion, a decrease from RMB5.94 billion as of December 31, 2019, primarily due to net cash outflows during 2QFY2020 and 1HFY2020[87]. - Non-current assets increased to RMB27.05 billion as of June 30, 2020, up from RMB26.43 billion as of December 31, 2019, mainly due to investments in wastewater treatment projects[87]. - Current liabilities rose to RMB9.30 billion as of June 30, 2020, compared to RMB9.25 billion as of December 31, 2019, due to new borrowings due within one year[87]. - Total borrowings increased to approximately RMB14.47 billion as of June 30, 2020, from RMB14.35 billion as of December 31, 2019, with 27.9% being unsecured credit facilities[90]. - The Group's cash and cash equivalents stood at RMB1.80 billion as of June 30, 2020, down from RMB2.37 billion as of December 31, 2019, with net cash used in operating activities amounting to RMB370.8 million in 1HFY2020[88]. - Equity attributable to owners of the Company reached RMB8.46 billion as of June 30, 2020, primarily due to net profit for the first half of the year, partially offset by dividends declared[89]. Risk Management - The Group is exposed to financial risks including foreign currency risk, interest rate risk, liquidity risk, and credit risk, with policies reviewed by the Board of Directors[191]. - There have been no changes in the risk management policies since the year-end, indicating stability in the Group's approach to financial risk management[195]. - Credit risk is minimized by dealing exclusively with high credit rating counterparties, aiming for continual revenue growth while reducing potential losses[99]. - The maximum exposure to credit risk is represented by the carrying amount of recognized financial assets, which includes trade receivables and cash equivalents[102]. Corporate Governance - The Company has confirmed compliance with the Singapore Code of Corporate Governance and the HK Corporate Governance Code throughout the reporting period[145][148]. - The Group has not entered into any hedging due to limited transactional foreign currency exposure, with all sales and costs primarily denominated in RMB[131][135]. - The Group's financial results for the six months ended 30 June 2020 have not been found to be false or misleading in any material aspect[163]. Employee and Director Information - The total employee benefits expenses for the six months ended June 30, 2020, were approximately RMB296.7 million, compared to RMB287.4 million for the same period in 2019[124]. - The Group employed 6,024 individuals as of June 30, 2020, a slight decrease from 6,038 employees in the previous year[124]. - Mr. Yang Jianwei was appointed as an Executive Director on May 13, 2020, responsible for overseeing financial matters and capital market affairs[103]. - Mr. Yang will receive an annual salary of SGD 50,000, determined based on his duties, responsibilities, qualifications, experience, and prevailing market conditions[107].
上海实业环境(00807) - 2020 - 中期财报