中国疏浚环保(00871) - 2020 - 中期财报

Corporate Information The report provides key corporate information including the Board of Directors, various committees, authorized representatives, legal advisors, auditors, principal bankers, and registered address - The report provides key corporate information including the Board of Directors, various committees (Audit, Remuneration, Nomination), authorized representatives, legal advisors, auditors, principal bankers, and registered address, with Executive Directors including Chairman Mr. Liu Kaijin and CEO Mr. Wu Xuzhe[4][7] Management Discussion and Analysis Business Review The Group's net loss significantly expanded to approximately RMB 73.7 million due to the severe impact of the COVID-19 pandemic on dredging and property management businesses 2020 Half-Year Key Performance Indicators | Indicator | H1 2020 | H1 2019 | | :--- | :--- | :--- | | Net Loss | Approx. RMB 73.7 million | Approx. RMB 25.3 million | | Loss Attributable to Owners of the Company | Approx. RMB 74.1 million | Approx. RMB 27.03 million | - The COVID-19 pandemic was the primary cause of performance decline, leading to domestic projects halting from January 2020 and overseas projects (Bangladesh, Cambodia, Thailand) experiencing multiple interruptions and prolonged shutdowns due to restricted personnel and material flow[18] - To capitalize on offshore wind power construction opportunities, the Group plans to invest RMB 230 million in a 2,300-ton self-propelled crane vessel, expected for delivery by the end of April next year[20] - The property management business (Xingyu International Home Furnishing Plaza) was minimally affected by the pandemic, with approximately 47 tenants, while a hotel under construction in Yancheng remains unfinished due to funding issues[20] Financial Review Total revenue declined by 55.7% to RMB 119.9 million, resulting in a gross loss of RMB 14.6 million and an expanded loss for the period of RMB 73.7 million, increasing financial pressure and net current liabilities Revenue Performance by Business Segment (Six Months Ended June 30) | Business Segment | 2020 Revenue (RMB) | 2019 Revenue (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Infrastructure and Reclamation Dredging | RMB 29 million | Approx. RMB 80.7 million | -64.0% | | Environmental Dredging and Water Management | RMB 3.3 million | Approx. RMB 29.55 million | -88.8% | | Other Marine Business | RMB 83.4 million | Approx. RMB 155.6 million | -46.4% | | Property Management | RMB 4.1 million | RMB 4.6 million | -9.4% | | Total | RMB 119.9 million | RMB 270.4 million | -55.7% | Profitability Analysis (Six Months Ended June 30) | Indicator | 2020 (RMB) | 2019 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Costs | RMB 134.5 million | RMB 240 million | -43.9% | | Gross (Loss)/Profit | (RMB 14.6 million) | RMB 30.5 million | Turned from profit to loss | | Overall Gross (Loss)/Profit Margin | -12.1% | 11.3% | -23.4 percentage points | | Loss for the Period | (RMB 73.7 million) | (RMB 25.3 million) | +191.8% | | Loss Per Share | RMB 0.042 | RMB 0.015 | +180.0% | Key Financial Position Indicators (As of June 30, 2020) | Indicator | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Equity | RMB 1.484 billion | RMB 1.563 billion | | Net Current Liabilities | RMB 352 million | RMB 283 million | | Current Ratio | 0.70 | 0.76 | | Debt-to-Equity Ratio | 45.8% | 43.2% | - Capital commitments significantly increased from RMB 66.2 million at the end of 2019 to RMB 277.5 million, primarily for the construction of a 2,300-ton self-propelled crane vessel[33] Prospects The Group will adopt prudent operating strategies, strengthen risk control, and actively seek stable financing solutions to support business development and redeem maturing bonds amidst ongoing uncertainties - Operating Strategy: Adopt a prudent approach, effectively control operational risks, and accelerate the collection of trade receivables[34] - Capital Strategy: Actively seek and implement feasible financing solutions to optimize the capital structure for business development, while continuing to raise additional funds to redeem relevant bonds[34] Disclosure of Interests and Other Information Directors' and Chief Executive's Interests The report details directors' and chief executive's shareholdings, with Chairman Mr. Liu Kaijin holding approximately 19.61% of shares directly and through a controlled corporation Directors' Shareholdings (As of June 30, 2020) | Director Name | Capacity | Number of Shares Held (Long Position) | Approximate Percentage of Shares Held | | :--- | :--- | :--- | :--- | | Mr. Liu Kaijin | Controlled Corporation Interest & Beneficial Owner | 387,159,000 | 19.61% | | Ms. Zhou Shuhua | Spouse's Interest | 387,159,000 | 19.61% | Substantial Shareholders' Interests Beyond directors, the report identifies other substantial shareholders including Wangji Limited, Mr. Yuan Xiangbing, and Jiangsu Best Environmental Engineering Co., Ltd Substantial Shareholders' Shareholdings (As of June 30, 2020) | Shareholder Name | Number of Shares Held (Long Position) | | :--- | :--- | | Wangji Limited | 351,600,000 | | Yuan Xiangbing | 191,917,000 | | Jiangsu Best Environmental Engineering Co., Ltd. | 148,180,000 | Share Option Scheme The company granted 17,000,000 share options to employees at an exercise price of HKD 0.10 per share, which remained unexercised, cancelled, or lapsed by period-end - On January 20, 2020, a total of 17,000,000 share options were granted to employees[54] Details of Granted Share Options | Indicator | Content | | :--- | :--- | | Grant Date | January 20, 2020 | | Exercise Price | HKD 0.10/share | | Closing Price Before Grant Date | HKD 0.071/share | | Exercise Period | January 20, 2020 – January 19, 2021 | Corporate Governance and Other Information The company complied with corporate governance codes, with voluntary salary reductions by executive directors, audit committee review, and no interim dividend declared - Effective June 1, 2020, Executive Directors Mr. Liu Kaijin and Ms. Zhou Shuhua voluntarily reduced their annual director salaries and were simultaneously appointed as general manager and deputy general manager of the company's subsidiaries, receiving corresponding remuneration[59] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial statements for the reporting period[59] - The Board of Directors decided not to declare an interim dividend for the six months ended June 30, 2020[61] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue decreased by 55.7% to RMB 119.9 million, resulting in a gross loss of RMB 14.57 million and a total loss for the period of RMB 73.68 million Statement of Profit or Loss Summary (Six Months Ended June 30, RMB '000) | Item (RMB '000) | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Revenue | 119,935 | 270,433 | | Operating Costs | (134,506) | (239,952) | | Gross (Loss)/Profit | (14,571) | 30,481 | | Loss Before Tax | (73,187) | (23,143) | | Total Loss for the Period | (73,677) | (25,253) | | Loss Attributable to Owners of the Company | (74,083) | (27,030) | | Basic Loss Per Share (RMB cents) | (4.16) | (1.5) | Condensed Consolidated Statement of Financial Position Total assets were RMB 2.745 billion, total liabilities RMB 1.261 billion, and total equity RMB 1.484 billion, with net current liabilities of RMB 352 million indicating short-term solvency pressure Statement of Financial Position Summary (RMB '000) | Item | June 30, 2020 (Unaudited) | December 31, 2019 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 1,937,224 | 1,970,896 | | Current Assets | 807,866 | 876,272 | | Total Assets | 2,745,090 | 2,847,168 | | Current Liabilities | 1,159,854 | 1,159,452 | | Non-current Liabilities | 101,240 | 124,542 | | Total Liabilities | 1,261,094 | 1,283,994 | | Total Equity | 1,483,996 | 1,563,174 | | Net Current Liabilities | (351,988) | (283,180) | Condensed Consolidated Statement of Cash Flows Net cash from operating activities significantly improved to RMB 53.11 million, while investing and financing activities resulted in net outflows, with period-end cash at RMB 25.97 million Cash Flow Statement Summary (Six Months Ended June 30, RMB '000) | Item (RMB '000) | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 53,110 | 5,085 | | Net Cash Used in Investing Activities | (16,245) | (11,420) | | Net Cash Used in Financing Activities | (23,509) | (26,431) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 13,356 | (32,766) | | Cash and Cash Equivalents at Beginning of Period | 12,612 | 48,435 | | Cash and Cash Equivalents at End of Period | 25,968 | 15,669 | Notes to the Condensed Consolidated Financial Statements Notes highlight significant going concern uncertainties due to overdue bonds and net current liabilities, detailing bond default and substantial impairment provisions for long-aged trade receivables - Significant Uncertainties Related to Going Concern: Note 2 discloses the company's failure to repay bonds due on December 20, 2019, and net current liabilities of RMB 352 million as of June 30, 2020, indicating significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern, though management believes it can continue through cost control, bank loan renewals, and bondholder negotiations[87][90] - Default on Bonds Payable: Note 20 details that the company failed to repay CITIC bonds due on December 20, 2019, with the total outstanding amount, including accrued interest, approximately HKD 339.5 million (approximately RMB 309.7 million) as of June 30, 2020, and discussions with bondholders for repayment arrangements are ongoing as of the report date[208][211] - Trade Receivables Risk: Note 15 indicates net trade receivables of RMB 700 million as of June 30, 2020, with a high proportion of amounts overdue for more than one year, and the company has made significant credit loss provisions totaling RMB 989 million[171][179]