中国储能科技发展(01143) - 2021 - 中期财报

Corporate Information - The report details the company's core management, board members, registered office, Hong Kong and mainland China office addresses, and principal bankers[4][6] Management Discussion and Analysis Business Overview In H1 2021, the Group's mainland China operations remained stable amid a challenging global environment, achieving significant revenue growth and a narrowed loss Key Performance Indicators for H1 2021 | Indicator | H1 2021 | H1 2020 | Change YoY | | :--- | :--- | :--- | :--- | | Total Revenue | HK$324.8 million | HK$260.0 million | +24.9% | | Loss Attributable to Equity Holders | HK$32.0 million | HK$69.9 million | -54.2% | | Bank and Cash Balances (at period end) | HK$208.6 million | - | - | Revenue Performance by Business Segment | Business Segment | H1 2021 Revenue | H1 2020 Revenue | Change YoY | | :--- | :--- | :--- | :--- | | Electronic Manufacturing Services (EMS) | HK$298.0 million | HK$231.2 million | +28.9% | | Distribution of Communication Products | HK$23.9 million | HK$15.8 million | +51.3% | | Real Estate Supply Chain Services | HK$2.6 million | HK$12.7 million | -79.5% | | Investment in Securities and Other Assets | HK$0.3 million | HK$0.3 million | 0% | - The company strategically entered the high-end healthcare services sector by establishing a joint venture in June 2021 to develop the endometrial stem cell business[11] Geographical Analysis The Group's revenue is primarily derived from the European market, with a significant increase in contribution from the US market Revenue Distribution by Geographical Region | Region | H1 2021 Revenue | % of Total Revenue (2021) | % of Total Revenue (2020) | | :--- | :--- | :--- | :--- | | Major European Countries | HK$178.0 million | 54.8% | 53.8% | | The United States | HK$34.3 million | 10.6% | 6.4% | | China (including Hong Kong) | HK$37.7 million | 11.6% | 17.3% | | Other Countries | HK$74.7 million | 23.0% | 22.5% | Financial Highlights Driven by revenue growth, the Group's gross profit increased while key expenses were controlled, leading to a significant reduction in net loss Key Items in Statement of Profit or Loss | Financial Metric | H1 2021 | H1 2020 | Change YoY | | :--- | :--- | :--- | :--- | | Revenue | HK$324.8 million | HK$260.0 million | +24.9% | | Cost of Sales | HK$254.2 million | HK$201.5 million | +26.2% | | Gross Profit | HK$70.6 million | HK$58.5 million | +20.7% | | Gross Profit Margin | 21.7% | 22.5% | -0.8 ppt | | Selling and Distribution Expenses | HK$17.0 million | HK$27.6 million | -38.4% | | Administrative Expenses | HK$71.7 million | HK$72.6 million | -1.2% | | Finance Costs | HK$1.8 million | HK$3.0 million | -40.0% | | Loss Attributable to Owners | HK$32.0 million | HK$69.9 million | -54.2% | Liquidity and Financial Resources As of June 30, 2021, the Group maintained a sound financial position with increased cash reserves and an improved gearing ratio Liquidity and Financial Position Indicators (as of June 30, 2021) | Indicator | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HK$208.6 million | HK$167.7 million | | Current Ratio | 1.6 times | 1.6 times | | Total Borrowings | HK$20.6 million | HK$18.6 million | | Gearing Ratio | 52.1% | 55.0% | Capital Structure and Financing Activities The company successfully raised capital through two share placements during the period to fund operations and new business development - On January 11, 2021, the company successfully placed 85.58 million shares at HK$0.35 per share, raising net proceeds of HK$29.2 million[36] - On June 30, 2021, the company successfully placed 102.7 million shares at HK$0.224 per share, raising net proceeds of HK$22.21 million[37] - As of June 30, 2021, the total number of issued shares increased to 616,242,570 from 427,958,570 at the end of 2020[35] Prospects The Group is cautiously optimistic about its future, focusing on new growth in high-end healthcare services and leveraging policy changes - The Group has established a joint venture to engage in endometrial stem cell storage and fertility health management, marking a substantial move into the high-end medical field[62] - Management anticipates that China's 'three-child policy' will create opportunities in the assisted reproduction and stem cell therapy markets, and the Group will actively integrate resources to capitalize on this trend[62] Corporate Governance and Other Information Corporate Governance The company complied with most Corporate Governance Code provisions but deviated by not separating the Chairman and CEO roles - The company deviated from Code Provision A.2.1 of the Corporate Governance Code, as the roles of Chairman and Chief Executive Officer were not separated and were both held by Mr. Lin Dailian[67][68] Share Option Scheme A new share option scheme was adopted in March 2020, under which over 35 million options were granted during the reporting period Details of Share Options Granted in H1 2021 | Category of Grantee | Name | Number of Options Granted | Exercise Price per Share (HK$) | Date of Grant | | :--- | :--- | :--- | :--- | :--- | | Director | Lin Dailian | 5,135,380 | 0.359 | January 28, 2021 | | Director | Xia Xiaobing | 5,135,380 | 0.359 | January 28, 2021 | | Director | Wang Guozhen | 5,135,380 | 0.359 | January 28, 2021 | | Employee | - | 20,265,710 | 0.359 | January 29, 2021 | | Total | - | 35,671,850 | - | - | - As of June 30, 2021, there were 35,671,850 outstanding share options under the new share option scheme[84] Interests of Directors and Major Shareholders As of June 30, 2021, three executive directors held long positions through share options, while Power Port Holdings Limited was the largest shareholder Major Shareholders' Interests (as of June 30, 2021) | Name of Shareholder | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | | Power Port Holdings Limited (Ms. Yang Changrong) | 75,817,000 | 12.30% | | Keywan Global Limited (Mr. He Xiaoming) | 49,500,000 | 8.03% | | Mr. Cao Longbing | 36,358,000 | 5.90% | | Hearts Capital SPC — Hearts SP2 | 35,930,000 | 5.83% | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2021, the company's revenue grew 24.9% year-on-year, leading to a significantly narrowed operating and total loss Summary of Statement of Profit or Loss for H1 2021 | Item (HK$'000) | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Revenue | 324,797 | 260,005 | | Gross Profit | 70,586 | 58,499 | | Operating loss | (28,274) | (61,705) | | Loss before tax | (30,060) | (67,762) | | Loss for the period | (32,129) | (69,922) | | Loss attributable to owners of the Company | (32,042) | (69,918) | | Basic loss per share (HK cents) | 7.02 | 20.52 | Condensed Consolidated Statement of Financial Position As of June 30, 2021, the Group's total assets stood at HK$669.3 million, with total equity increasing due to new share issuance Summary of Statement of Financial Position (as of June 30, 2021) | Item (HK$'000) | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total non-current assets | 141,241 | 145,901 | | Total current assets | 528,017 | 511,504 | | Total assets | 669,258 | 657,405 | | Total current liabilities | 339,328 | 330,549 | | Total liabilities | 348,366 | 361,471 | | Total equity | 320,892 | 295,934 | Condensed Consolidated Statement of Cash Flows In H1 2021, net cash from financing and investing activities offset operating outflows, resulting in a net increase in cash and cash equivalents Summary of Cash Flows for H1 2021 | Item (HK$'000) | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | (19,969) | (44,801) | | Net cash from/(used in) investing activities | 21,342 | (90,957) | | Net cash from financing activities | 39,117 | 27,988 | | Net increase/(decrease) in cash and cash equivalents | 40,490 | (47,115) | | Cash and cash equivalents at end of period | 208,621 | 194,226 | Notes to the Condensed Financial Statements Note 4: Revenue and Segment Information The Group's operations are divided into four segments, with Electronic Manufacturing Services (EMS) being the primary contributor to revenue and profit Performance by Business Segment for H1 2021 | Business Segment (HK$'000) | Revenue from external customers | Segment profit/(loss) | | :--- | :--- | :--- | | Electronic Manufacturing Services (EMS) | 297,985 | 10,635 | | Distribution of communication products | 23,909 | 310 | | Investment in securities and other assets | 340 | (17,257) | | Real estate supply chain services | 2,563 | (21,860) | | Total | 324,797 | (28,172) | Note 23: Share Capital During the period, the company's issued and fully paid-up share capital increased following the placement of 188,284,000 new shares - On January 11, 2021, the company placed 85,580,000 new shares, raising net proceeds of approximately HK$29.35 million[281] - On June 30, 2021, the company placed 102,704,000 new shares, raising net proceeds of approximately HK$22.32 million[282] Note 27: Events After the Reporting Period Subsequent to the reporting period, the Group completed the disposal of its entire equity interest in one associate company in July 2021 - On March 23, 2021, the Group entered into agreements to dispose of its entire equity interests in associate companies Zhan Ju and Rong Shu[300] - The disposal of Zhan Ju was completed on July 5, 2021, after which the Group lost significant influence over the company[301] Information for Investors - The company is listed on The Stock Exchange of Hong Kong Limited with the stock code 1143[310]