中国水务(00855) - 2022 - 中期财报

Corporate Information This section provides core corporate details including registration information, board members, committee members, principal office addresses, legal advisors, auditors, and principal bankers - This section provides core corporate details including registration information, board members (executive, non-executive, and independent non-executive directors), committee members, principal office addresses, legal advisors, auditors, and principal bankers[4] Financial Highlights Overall Performance For the six months ended September 30, 2021, the Group's total revenue increased by 26.1% to approximately HKD 6.47 billion, gross profit grew by 19.7% to HKD 2.53 billion, and profit attributable to owners of the company rose by 23.4% to HKD 1.02 billion, with total assets increasing by 11.2% Performance Summary (For the Six Months Ended September 30) | Indicator | 2021 (Unaudited) | 2020 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Revenue (Thousand HKD) | 6,472,791 | 5,131,231 | +26.1% | | Gross Profit (Thousand HKD) | 2,525,327 | 2,110,482 | +19.7% | | Profit for the Period (Thousand HKD) | 1,578,777 | 1,267,490 | +24.6% | | Profit Attributable to Owners of the Company (Thousand HKD) | 1,019,696 | 826,479 | +23.4% | | Basic Earnings Per Share (HK cents) | 63.61 | 51.68 | +23.1% | | Interim Dividend (HK cents) | 16 | 15 | +6.7% | Balance Sheet Summary and Ratios | Indicator | September 30, 2021 (Unaudited) | March 31, 2021 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets (Thousand HKD) | 52,323,847 | 47,038,047 | +11.2% | | Total Liabilities (Thousand HKD) | 33,535,061 | 30,088,019 | +11.5% | | Net Assets (Thousand HKD) | 18,788,786 | 16,950,028 | +10.8% | | Gearing Ratio | 64.1% | 64.0% | - | Segment Analysis During the reporting period, both water supply and environmental protection segments achieved robust growth, with water supply revenue increasing by 21.4% and profit by 18.5%, while environmental protection revenue grew by 19.2% and profit significantly by 42.0% Water Supply Segment Analysis (For the Six Months Ended September 30) | Indicator | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Revenue (Million HKD) | 5,145.7 | 4,240.2 | +21.4% | | Profit (Million HKD) | 1,927.4 | 1,626.4 | +18.5% | - Water supply revenue primarily comprises water supply construction services (44.6%), water supply operation services (32.7%), and water supply connection income (20.9%)[16] Environmental Protection Segment Analysis (For the Six Months Ended September 30) | Indicator | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Revenue (Million HKD) | 596.1 | 500.2 | +19.2% | | Profit (Million HKD) | 188.6 | 132.8 | +42.0% | - Environmental protection revenue mainly derives from wastewater treatment and water environment management construction services (62.6%) and wastewater treatment operation services (29.5%)[19] Interim Financial Information Condensed Consolidated Statement of Profit or Loss For the six months ended September 30, 2021, the company's revenue was HKD 6.47 billion, a 26.1% year-on-year increase, with gross profit at HKD 2.53 billion, up 19.7%, and profit attributable to owners of the company at HKD 1.02 billion, up 23.4% Key Items from Statement of Profit or Loss (For the Six Months Ended September 30) | Item | 2021 (Thousand HKD) | 2020 (Thousand HKD) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Revenue | 6,472,791 | 5,131,231 | 26.1% | | Gross Profit | 2,525,327 | 2,110,482 | 19.7% | | Profit from Operations | 2,169,782 | 1,834,602 | 18.3% | | Profit Before Income Tax | 2,091,365 | 1,714,050 | 22.0% | | Profit for the Period | 1,578,777 | 1,267,490 | 24.6% | | Profit Attributable to Owners of the Company | 1,019,696 | 826,479 | 23.4% | Condensed Consolidated Statement of Comprehensive Income During the reporting period, total comprehensive income for the period significantly increased to HKD 2.22 billion from HKD 1.45 billion in the prior year, primarily driven by profit for the period and HKD 610 million from currency translation - Other comprehensive income for the period was HKD 644 million, primarily contributed by HKD 606 million from exchange differences on translation[23] - Total comprehensive income attributable to owners of the company was HKD 1.52 billion, an approximate 60% increase from HKD 950 million in the prior year[23] Condensed Consolidated Statement of Financial Position As of September 30, 2021, the Group's total assets were HKD 52.32 billion, an 11.2% increase from March 31, 2021, with total liabilities at HKD 33.54 billion and net assets at HKD 18.79 billion, while net current liabilities narrowed from HKD 1.67 billion to HKD 840 million Key Items from Statement of Financial Position | Item | September 30, 2021 (Thousand HKD) | March 31, 2021 (Thousand HKD) | | :--- | :--- | :--- | | Non-current Assets | 37,397,399 | 34,161,262 | | Current Assets | 14,926,448 | 12,876,785 | | Total Assets | 52,323,847 | 47,038,047 | | Current Liabilities | 15,770,495 | 14,547,158 | | Non-current Liabilities | 17,764,566 | 15,540,861 | | Total Liabilities | 33,535,061 | 30,088,019 | | Net Assets | 18,788,786 | 16,950,028 | | Total Equity | 18,788,786 | 16,950,028 | Condensed Consolidated Statement of Cash Flows During the reporting period, net cash inflow from operating activities was HKD 1.68 billion, a 45.5% year-on-year increase, with net cash outflow from investing activities at HKD 2.06 billion, net cash inflow from financing activities at HKD 1.13 billion, and cash and cash equivalents at period-end at HKD 4.67 billion Cash Flow Statement Summary (For the Six Months Ended September 30) | Item | 2021 (Thousand HKD) | 2020 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,683,923 | 1,157,337 | | Net Cash Outflow from Investing Activities | (2,062,490) | (2,475,058) | | Net Cash Inflow from Financing Activities | 1,131,082 | 672,617 | | Increase/(Decrease) in Cash and Cash Equivalents | 752,515 | (645,104) | | Cash and Cash Equivalents at End of Period | 4,672,012 | 5,018,130 | Notes to the Condensed Consolidated Financial Information The financial statements are prepared under HKAS 34 on a going concern basis, with notes detailing revenue composition by segment, significant acquisitions, dividend policy, and related party transactions Note 5: Revenue and Other Income Total revenue for the period was HKD 6.47 billion, primarily from water supply construction services (HKD 2.12 billion), water supply operation services (HKD 1.64 billion), and water supply connection income (HKD 1.05 billion) Revenue Composition (For the Six Months Ended September 30) | Revenue Source | 2021 (Thousand HKD) | 2020 (Thousand HKD) | | :--- | :--- | :--- | | Water Supply Construction Services | 2,120,025 | 1,891,837 | | Water Supply Operation Services | 1,642,254 | 1,342,587 | | Water Supply Connection Income | 1,052,154 | 905,698 | | Wastewater Treatment and Water Environment Management Construction Services | 373,479 | 291,942 | | Property Sales | 368,481 | 282,323 | | Others | 916,398 | 816,377 | | Total | 6,472,791 | 5,131,231 | Note 6: Segment Information The Group's operations are categorized into three main segments: urban water supply operation and construction, environmental protection, and property development and investment, with urban water supply being the core segment contributing the majority of revenue and profit Segment Results (For the Six Months Ended September 30, 2021) | Segment | Revenue (Thousand HKD) | Profit/(Loss) (Thousand HKD) | | :--- | :--- | :--- | | Urban Water Supply Operation and Construction | 5,145,701 | 1,927,368 | | Environmental Protection | 596,075 | 188,648 | | Property Development and Investment | 386,482 | 91,082 | | All Other Segments | 344,533 | (6,878) | | Total | 6,472,791 | 2,200,220 | Note 11: Dividends The Board resolved to declare an interim dividend of HKD 0.16 per ordinary share for the six months ended September 30, 2021, an increase from HKD 0.15 in the prior year - The interim dividend is HKD 0.16 per ordinary share, totaling approximately HKD 261 million[57] Note 22: Business Combination During the period, the Group acquired approximately 23.2% equity in Nanjing Shuibeizi Technology Co., Ltd. for approximately HKD 42.03 million to gain board control, as part of its strategy to promote domestic piped direct drinking water business, resulting in goodwill of approximately HKD 16.52 million - The Group acquired approximately 23.2% equity interest in Nanjing Shuibeizi Technology Co., Ltd. ("Nanjing Shuibeizi") for a total consideration of RMB 34.89 million (approximately HKD 42.03 million)[71] - This acquisition aims to promote the Group's piped direct drinking water business development in China, recognizing goodwill of HKD 16.52 million[71][72] Business Review, Corporate Governance and Other Information Business Review During the reporting period, the Group's total revenue significantly increased by 26.1% to HKD 6.47 billion, with core segments 'Urban Water Supply Operation and Construction' and 'Environmental Protection' growing by 21.1% combined, driven by increased construction and connection projects, improved operational efficiency, water price adjustments, and M&A activities - Revenue from the Urban Water Supply Operation and Construction segment increased by 21.4% year-on-year to HKD 5.15 billion, with profit growing by 18.5% to HKD 1.93 billion, primarily due to increased water sales volume, integrated urban-rural water supply, and direct drinking water business contributions[89] - Revenue from the Environmental Protection segment increased by 19.2% year-on-year to HKD 596 million, with profit significantly growing by 42.0% to HKD 189 million, mainly driven by increased construction projects from integrated water supply and drainage[90] - Revenue from the Property Development segment was HKD 387 million, with profit increasing by 41.7% to HKD 91.1 million, primarily due to increased property project sales[91] Future Prospects The Group elevates piped direct drinking water business as a core strategic focus for the next five years, aiming for a dual-main business structure alongside traditional tap water supply, while leveraging new national water pricing policies to enhance service levels and competitiveness for higher shareholder returns - Strategic Focus: Elevating the piped direct drinking water business as a core main business, developing it in parallel with traditional tap water supply to create new profit growth points[92] - Policy Opportunity: Leveraging the new 'Urban Water Supply Pricing Management Measures' issued by the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development to secure reasonable returns through incentive and restraint mechanisms, ensuring healthy development of the water supply business[92] Liquidity and Financial Resources As of September 30, 2021, the Group held approximately HKD 5.11 billion in cash and deposits, with a gearing ratio of 64.1%, and despite net current liabilities of HKD 840 million, the Board deems working capital sufficient given internal resources, available loans, and issued preference notes Liquidity Indicators | Indicator | September 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Cash and Cash Equivalents and Pledged Deposits (Million HKD) | 5,112.7 | 4,416.3 | | Gearing Ratio | 64.1% | 64.0% | | Net Current Liabilities (Million HKD) | (844.0) | (1,670.4) | - In May 2021, the company successfully issued USD 200 million of 4.85% senior notes due 2026, using part of the proceeds to redeem USD 150 million of senior notes due 2022[93]