中油洁能控股(01759) - 2021 - 中期财报

Company Information Company Basic Information The report details Sinopec Clean Energy Holdings Group Limited's registration, headquarters, board composition, and key governance contacts - The company is registered in the Cayman Islands, stock code 1759, with main business locations in Hong Kong and Guangzhou, China[2][14] - Board members include Chairman Mr. Ji Guang, Vice Chairman and CEO Ms. Ji Ling, and independent non-executive director Mr. Sheng Yuhong[9][13] - KPMG is the company's auditor, and Wun's Lawyers is the Hong Kong legal counsel[10][13] Management Discussion and Analysis Industry Review H1 2021 saw global economic recovery, China's GDP growth, increased energy demand, and a natural gas surge, driven by national strategic goals - China's GDP grew by 12.7% in H1 2021, with an average growth of 5.3% over the past two years[15] - LPG apparent consumption was 28.3211 million tonnes, up 15.15% YoY, with prices showing wide fluctuations[16] - Natural gas market demand was strong, up 21.2% in H1, expected to maintain stable growth driven by the "14th Five-Year Plan" and "carbon peak/neutrality" targets[17] Business Review The Group's H1 2021 revenue grew to RMB 761.5 million from increased CNG sales and LPG prices, with one station closing for potential hydrogen conversion - The Group is a comprehensive LPG and natural gas supplier in China with over 15 years of experience, operating in Guangdong and Henan[22] 2021 H1 Revenue Overview | Indicator | H1 2021 (RMB million) | H1 2020 (RMB million) | YoY Growth (RMB million) | | :--- | :--- | :--- | :--- | | Revenue | 761.5 | 631.3 | 130.2 | - LPG business affected by structural adjustments in transportation energy policy and the pandemic, leading to the closure of one gas station and an attempt to convert it into a hydrogen refueling station[23] Revenue by Business Segment (H1 2021 vs H1 2020) | Business Segment | H1 2021 (RMB million) | H1 2020 (RMB million) | Growth (RMB million) | | :--- | :--- | :--- | :--- | | LPG Sales | 614.0 | 523.7 | 90.3 | | CNG Sales | 113.6 | 74.2 | 39.4 | | LNG Sales | 29.3 | 27.8 | 1.5 | Number of Operating Gas Stations as of June 30, 2021 | Type | Quantity | | :--- | :--- | | LPG Gas Stations | 5 | | CNG Gas Stations | 12 | | LNG Gas Stations | 2 | | LPG-CNG Gas Stations | 1 | | CNG Mother Stations | 3 | | Total Gas Stations | 23 | | Petrol Stations | 3 | | Total | 26 | Outlook and Prospects The Group will focus on LPG demand, expand sales, and explore new energy, including hydrogen stations, driven by national "14th Five-Year Plan" and "dual carbon" goals - H2 focus on LPG residential and industrial demand, expanding sales channels, and seeking innovative sales models[42] - Driven by the "14th Five-Year Plan" and "dual carbon" targets, the proportion of natural gas will increase, and the Group will integrate upstream, midstream, and downstream business models, deepening services and products[47] - The Group actively responds to national hydrogen energy policies, attempting to convert terminal gas stations into hydrogen refueling stations, with 4 hydrogen station layout applications submitted[47] Financial Review H1 2021 revenue grew to RMB 761.5 million, but profit for the period decreased to RMB 2.1 million due to higher finance costs and reduced other income 2021 H1 Key Financial Data Comparison | Indicator | H1 2021 (RMB million) | H1 2020 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Revenue | 761.5 | 631.3 | +130.2 | | Cost of Sales | 712.4 | 584.6 | +127.8 | | Gross Profit | 49.2 | 46.8 | +2.4 | | Other Income | 9.2 | 10.1 | -0.9 | | Staff Costs | 18.2 | 19.2 | -1.0 | | Depreciation | 11.2 | 11.0 | +0.2 | | Finance Costs | 8.4 | 3.5 | +4.9 | | Profit Before Tax | 4.7 | 7.2 | -2.5 | | Profit for the Period | 2.1 | 4.3 | -2.2 | - Revenue growth primarily due to increased CNG sales volume and higher average selling prices for LPG[48] - Profit for the period decreased mainly due to increased finance costs from bank loans and reduced government subsidies[56][58] Financial Position As of June 30, 2021, total assets increased to RMB 1,027.9 million, with short-term borrowings rising to RMB 555.6 million, increasing the gearing ratio to 63.0% Financial Position Overview (As of June 30, 2021 vs December 31, 2020) | Indicator | June 30, 2021 (RMB million) | December 31, 2020 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Total Assets | 1,027.9 | 666.8 | +361.1 | | Short-term Borrowings | 555.6 | 196.6 | +359.0 | | Gearing Ratio | 63.0% | 43.1% | +19.9% | - The increase in gearing ratio is primarily attributable to the increase in bank loans[67] Employees and Remuneration Policy As of June 30, 2021, the Group had 482 employees, a decrease of 57, with remuneration based on market practice, performance, and experience, supported by training - As of June 30, 2021, the Group had 482 employees, a decrease from 539 as of June 30, 2020[68] - Remuneration policy is based on employee performance, qualifications, and experience, with regular safety and skills training and encouragement for industry seminars[68] Use of Proceeds from Listing Of HKD 120.3 million net listing proceeds, HKD 63.7 million was used for new CNG stations and working capital, with other projects delayed by the pandemic Use of Proceeds from Listing Overview (As of June 30, 2021) | Use | Original Allocation (HKD million) | Revised Allocation (HKD million) | Utilized (HKD million) | Remaining Balance (HKD million) | Expected Timeframe for Full Utilization of Remaining Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Acquisition of operating rights for an LPG residential station | 20.5 | 20.5 | 0 | 20.5 | Before end of 2021 | | Strengthening our LPG logistics and storage capacity by constructing storage facilities | 21.7 | 21.7 | 0 | 21.7 | Before end of 2021 | | Completing construction of new CNG mother stations, purchasing land, equipment and machinery, and installation | 27.7 | 14.5 | 14.5 | 0 | Not applicable | | Constructing new gas stations, purchasing and assembling required equipment and machinery, and maintaining existing gas stations | 24.1 | 16.1 | 16.1 | 0 | Not applicable | | Purchasing additional vehicle fleet to increase our logistics capacity | 14.4 | 14.4 | 0 | 14.4 | Before end of 2023 | | Funding for acquisitions | - | 21.1 | 21.1 | 0 | Not applicable | | General working capital | 12.0 | 12.0 | 12.0 | 0 | Not applicable | | Total | 120.3 | 120.3 | 63.7 | 56.6 | | - Unutilized proceeds are mainly for acquiring LPG residential station operating rights, strengthening logistics and storage capacity, and purchasing additional vehicle fleets, with delays due to the pandemic and failure to identify suitable targets[71][72] Foreign Exchange Risk All Group operations are in China, with RMB as the reporting currency; HKD-denominated financial instruments pose the primary currency risk, managed via spot or forward contracts - All Group operations and revenue are located in China, with the reporting currency being RMB[79] - The primary currency risk arises from HKD-denominated financial instruments, managed by the Group through spot foreign currency transactions or forward contracts[79] Treasury Policy The Group maintains a prudent financial management strategy and sound liquidity, with the finance department overseeing treasury management, investment research, and monitoring - The Group adopts a prudent financial management strategy, maintaining a sound liquidity position[80] - The finance department is responsible for treasury management, including researching investment options for management consideration and continuous monitoring of investments[80] Material Investments and Future Plans As of June 30, 2021, the Group held RMB 16.4 million in unlisted equity and acquired a RMB 20.0 million interest in an associate, with no other material investment plans - As of June 30, 2021, the Group held approximately RMB 16.4 million in unlisted equity securities[81] - On April 9, 2021, the Group subscribed for a RMB 20.0 million interest in Guangzhou Qiande Education Consulting Partnership (Limited Partnership), making it an associate[81][82] Material Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures For H1 2021, the Group acquired a RMB 20.0 million interest in Guangzhou Qiande Education Consulting Partnership, making it an associate, with no other material acquisitions or disposals - On April 9, 2021, the Group subscribed for a RMB 20.0 million interest in Guangzhou Qiande Education Consulting Partnership (Limited Partnership), making it an associate[82] - For the six months ended June 30, 2021, other than the aforementioned disclosure, the Group had no other material acquisitions or disposals[83] Contingent Liabilities A subsidiary faces a RMB 64.4 million debt dispute, won in 2020 but under appeal; directors deem liability unlikely, so no provision was made - A Group subsidiary is involved in a debt dispute of approximately RMB 64.4 million, won in 2020, with the plaintiff appealing[86] - Directors believe the subsidiary is unlikely to be liable, and no provision was made as of June 30, 2021[86] Pledged Assets As of June 30, 2021, RMB 15.5 million cash, RMB 399.0 million time deposits, and RMB 70.0 million CDs were pledged for bank loans - As of June 30, 2021, RMB 15.5 million in cash was pledged as collateral for bank loans[87] - As of June 30, 2021, RMB 399.0 million in time deposits and RMB 70.0 million in certificates of deposit were pledged as collateral for bank loans[87] Tax Relief and Exemptions The Company is unaware of any tax relief or exemptions for shareholders holding its shares - The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their shareholdings[88] Other Information Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2021, Chairman Mr. Ji Guang held 75% of issued shares through controlled corporations linked to the Ji Yang Family Trust Directors' and Chief Executive's Shareholdings (As of June 30, 2021) | Director Name | Capacity/Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Ji Guang | Settlor of discretionary trust, interest in controlled corporation | 162,000,000 (L) | 75% | - Mr. Ji Guang's interests are held by Creative Rich, Petrochemical Gas Energy Group Limited, and Petrochemical Gas Energy Limited, and are associated with the Ji Yang Family Trust[98] Substantial Shareholders' Interests in Shares and Underlying Shares As of June 30, 2021, several entities held 56.25% of shares, with Ms. Yang Ling, Mr. Ji's spouse, deemed to hold 75% through spousal interest Substantial Shareholders' Shareholdings (As of June 30, 2021) | Shareholder Name/Name | Capacity/Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | UBS Trustee | Trustee of a trust | 121,500,000 (L) | 56.25% | | UBS Nominees Limited | Interest in controlled corporation | 121,500,000 (L) | 56.25% | | VISTA Company | Interest in controlled corporation | 121,500,000 (L) | 56.25% | | Sinopec Clean Energy Holdings | Interest in controlled corporation | 121,500,000 (L) | 56.25% | | Creative Rich | Beneficial owner | 121,500,000 (L) | 56.25% | | Petrochemical Gas Employee BVI | Beneficial owner | 24,300,000 (L) | 11.25% | | Petrochemical Gas BVI | Beneficial owner | 16,200,000 (L) | 7.50% | | Yang Ling | Spouse's interest | 162,000,000 (L) | 75% | - UBS Trustee indirectly owns all equity in Creative Rich through VISTA Company and is associated with the Ji Yang Family Trust[104] - Ms. Yang Ling, as Mr. Ji's spouse, is deemed to have an interest in the shares held by Mr. Ji[106] Share Option Scheme A share option scheme, adopted in 2018, allows up to 30% of issued capital for eligible participants, with no options granted as of the reporting date - The share option scheme was adopted on November 22, 2018, to incentivize and reward eligible participants who have contributed to the Group[110][111] - The maximum number of shares that may be issued under the scheme is 30% of the issued share capital, with a 1% limit per participant within 12 months[113][114][115] - The subscription price for share options shall not be less than the highest of the closing price, the average closing price for five days, and the nominal value of the shares, with no options granted as of the reporting date[118] Compliance with Corporate Governance Code The Company complies with the Corporate Governance Code, having separated Chairman and CEO roles since January 8, 2021, with Mr. Ji as Chairman and Ms. Ji Ling as CEO - The Company has consistently complied with the Corporate Governance Code in Appendix 14 of the Listing Rules[121] - To comply with Code Provision A.2.1, Mr. Ji resigned as CEO on January 8, 2021, and Ms. Ji Ling was appointed CEO, separating the roles of Chairman and CEO[121] Compliance with the Model Code for Securities Transactions by Directors The Company's director securities trading code, no less stringent than the Model Code, was complied with by all directors during the reporting period - The Company has adopted its own code for securities transactions by directors, the terms of which are no less stringent than the Model Code in Appendix 10 of the Listing Rules[122] - All directors have confirmed compliance with the securities transaction code during the reporting period[122] Changes in Directors' Information Key director changes include Mr. Ji's CEO resignation and new directorship, Ms. Ji Ling's CEO appointment and subsidiary directorships, and other board member changes - Mr. Ji resigned as CEO on January 8, 2021, and was appointed director of Sinopec New Energy Investment Co., Ltd. on February 3[123] - Ms. Ji Ling was appointed CEO on January 8, 2021, and also serves as a director for several subsidiaries[123] - Ms. Cui Meijian and Mr. Zhou Feng also had changes in their directorships[123][124] Repurchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries repurchased, sold, or redeemed any listed securities during the six months ended June 30, 2021 - During the reporting period, neither the Company nor its subsidiaries conducted any repurchase, sale, or redemption of listed securities[125] Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[126] Public Float As of the reporting date, the Company maintained the public float percentage specified under the Listing Rules - As of the reporting date, the Company has maintained the public float percentage specified under the Listing Rules[127] Review by Audit Committee The Audit Committee reviewed the unaudited interim results and report, agreeing with the Company's adopted accounting principles and practices - The Audit Committee has reviewed the interim results report and agreed with the Company's accounting principles and practices[128] Material Events After Reporting Period Post-reporting period, guarantees were provided for Jiangmen Xinjiang Coal Gas's bank loans, with no other material events disclosed - On August 3, 2021, Guangdong Petrochemical, Henan Yonghui, and Mr. Ji provided guarantees for bank loans to Jiangmen Xinjiang Coal Gas (a jointly controlled entity)[129] - As of the reporting date, other than the above, the Group had no other material post-reporting period events[130] Consolidated Statement of Profit or Loss Consolidated Statement of Profit or Loss H1 2021 revenue grew to RMB 761.5 million, but profit for the period decreased by 52.3% to RMB 2.1 million due to higher costs and finance expenses Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2021 (RMB thousand) | 2020 (RMB thousand) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 761,521 | 631,333 | +130,188 | +20.6% | | Cost of Sales | (712,369) | (584,553) | (127,816) | +21.9% | | Gross Profit | 49,152 | 46,780 | +2,372 | +5.1% | | Other Income | 9,249 | 10,114 | -865 | -8.6% | | Staff Costs | (18,224) | (19,153) | +929 | -4.8% | | Finance Costs | (8,411) | (3,471) | (4,940) | +142.3% | | Profit Before Tax | 4,720 | 7,168 | -2,448 | -34.2% | | Profit for the Period | 2,059 | 4,316 | -2,257 | -52.3% | | Earnings Per Share (Basic and Diluted) | 0.02 | 0.03 | -0.01 | -33.3% | Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Profit or Loss and Other Comprehensive Income H1 2021 profit was RMB 2.1 million, but total comprehensive income significantly decreased to RMB 724 thousand due to negative exchange differences Consolidated Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2021 (RMB thousand) | 2020 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Profit for the Period | 2,059 | 4,316 | -2,257 | | Exchange differences on translation to the Group's presentation currency | (1,335) | 2,660 | -3,995 | | Total Comprehensive Income for the Period | 724 | 6,976 | -6,252 | - In H1 2021, total comprehensive income for the period significantly decreased due to negative exchange differences[216] Consolidated Statement of Financial Position Consolidated Statement of Financial Position As of June 30, 2021, total assets grew to RMB 1,027.9 million, driven by current assets, while current liabilities significantly increased due to higher bank loans Consolidated Statement of Financial Position Key Data (As of June 30, 2021 vs December 31, 2020) | Indicator | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 337,455 | 313,358 | +24,097 | +7.7% | | Property, Plant and Equipment | 204,996 | 214,635 | -9,639 | -4.5% | | Interests in Associates | 19,932 | - | +19,932 | N/A | | Time deposits with financial institutions | 399,000 | - | +399,000 | N/A | | Bank and Cash Balances | 76,389 | 109,354 | -32,965 | -30.1% | | Current Assets | 690,492 | 353,439 | +337,053 | +95.4% | | Current Liabilities | 614,916 | 251,236 | +363,680 | +144.7% | | Bank Loans | 555,597 | 196,597 | +359,000 | +182.6% | | Net Assets | 380,502 | 379,488 | +1,014 | +0.3% | - The significant increase in current assets is primarily due to a substantial growth in time deposits with financial institutions[146] - The substantial increase in bank loans is the main reason for the growth in current liabilities and total liabilities[146] Consolidated Statement of Changes in Equity Consolidated Statement of Changes in Equity H1 2021 total equity attributable to equity holders increased to RMB 352.7 million, driven by profit, with total comprehensive income at RMB 724 thousand Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | January 1, 2021 (RMB thousand) | June 30, 2021 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total equity attributable to equity holders of the Company | 350,019 | 352,718 | +2,699 | | Non-controlling interests | 29,469 | 27,784 | -1,685 | | Total Equity | 379,488 | 380,502 | +1,014 | | Profit for the Period | N/A | 4,034 (Equity holders of the Company) | N/A | | Other Comprehensive Income for the Period | N/A | (1,335) (Equity holders of the Company) | N/A | - The increase in total equity attributable to equity holders of the Company is primarily due to profit for the period[216] Condensed Consolidated Statement of Cash Flows Condensed Consolidated Statement of Cash Flows H1 2021 saw net cash from operations turn positive at RMB 4.8 million, with significant increases in both investing cash outflow and financing cash inflow Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2021 (RMB thousand) | 2020 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 4,849 | (51,946) | +56,795 | | Net cash (used in)/from investing activities | (382,315) | 10,141 | -392,456 | | Net cash from/(used in) financing activities | 382,204 | (1,939) | +384,143 | | Net increase/(decrease) in cash and cash equivalents | 4,738 | (43,744) | +48,482 | | Cash and cash equivalents at June 30 | 60,889 | 107,974 | -47,085 | - Operating cash flow turned from negative to positive, indicating improved operational efficiency[219] - A significant increase in cash outflow from investing activities and a substantial increase in cash inflow from financing activities indicate the company undertook large-scale investment and financing activities[219] Notes to the Unaudited Interim Financial Report Company Information (Note 1) Sinopec Clean Energy Holdings Group Limited, incorporated in Cayman Islands in 2018 and listed on HKEX, primarily retails and wholesales LPG, CNG, and LNG in China - The Company was incorporated in the Cayman Islands on March 26, 2018, and listed on the HKEX on December 28, 2018[224] - Its main business is the retail and wholesale of LPG, CNG, and LNG in China[224] Principal Accounting Policies (Note 2) This interim report follows HKEX Listing Rules and IAS 34, using 2020 annual accounting policies, with IFRS 16 and 9 amendments having no material impact - The interim financial report is prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34[225] - Amendments to IFRS 16 and IFRS 9 have been adopted but have no material impact on the financial position for the current or prior periods[226] Revenue and Segment Reporting (Note 3) The Group's revenue comes from LPG, CNG, and LNG retail and wholesale, with H1 2021 retail gross profit at RMB 41.8 million and wholesale at RMB 7.4 million - Revenue primarily comes from the retail and wholesale of LPG, CNG, and LNG[229] 2021 H1 Revenue by Major Product or Service Line | Product/Service | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | | LPG | 614,000 | 523,653 | | CNG | 113,600 | 74,232 | | LNG | 29,300 | 27,769 | | Others | 4,621 | 5,679 | | Total | 761,521 | 631,333 | 2021 H1 Gross Profit by Segment | Segment | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | | Retail | 41,775 | 29,351 | | Wholesale | 7,377 | 17,429 | | Total Reportable Segment Gross Profit | 49,152 | 46,780 | Other Income (Note 4) H1 2021 other income decreased to RMB 9.2 million from RMB 10.1 million, mainly due to reduced government subsidies Other Income Details (For the six months ended June 30) | Item | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | | Net gain on obtaining control of a joint venture | - | 2,656 | | Rental income from operating leases | - | 1,799 | | Government grants | - | 4,130 | | Interest income | - | 435 | | Fair value changes of other financial assets and liabilities at fair value through profit or loss | - | 1,704 | | Net gain/(loss) on disposal of property, plant and equipment | - | 768 | | Net exchange gain/(loss) | - | (1,730) | | Others | - | 352 | | Total | 9,249 | 10,114 | - The decrease in other income is primarily due to reduced government subsidies, although interest income increased[50] Profit Before Tax (Note 5) H1 2021 profit before tax decreased to RMB 4.7 million from RMB 7.2 million, mainly due to significantly higher finance costs and reduced staff costs Finance Costs Details (For the six months ended June 30) | Item | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank loans | 7,347 | 2,302 | | Interest on lease liabilities | 1,064 | 1,169 | | Total Finance Costs | 8,411 | 3,471 | Staff Costs Details (For the six months ended June 30) | Item | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 17,119 | 17,577 | | Contributions to defined contribution retirement plans | 1,105 | 1,576 | | Total Staff Costs | 18,224 | 19,153 | - The decrease in profit before tax is mainly due to a significant increase in finance costs and a reduction in government subsidy income[56] Income Tax (Note 6) H1 2021 income tax expense was RMB 2.7 million, with varying tax rates for subsidiaries in different jurisdictions Income Tax Expense Details (For the six months ended June 30) | Item | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | | Current tax - Provision for the period | 2,701 | 4,762 | | Deferred tax - Origination and reversal of temporary differences | (2,101) | 151 | | Total Income Tax Expense | 2,661 | 2,852 | - PRC (excluding Hong Kong) subsidiaries are subject to enterprise income tax at 25%, while Hong Kong subsidiaries are taxed at 16.5%[253][254] Earnings Per Share (Note 7) H1 2021 basic EPS decreased to RMB 0.02 from RMB 0.03, calculated based on profit attributable to ordinary equity holders, with no dilutive shares Earnings Per Share (For the six months ended June 30) | Indicator | 2021 | 2020 | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share (RMB) | 0.02 | 0.03 | - Basic earnings per share decreased, calculated based on profit attributable to ordinary equity holders of the Company and the weighted average number of ordinary shares[255] - There were no potential dilutive shares issued for the six months ended June 30, 2021 and 2020[256] Property, Plant and Equipment (Note 8) H1 2021 saw RMB 2.3 million in owned property, plant, and equipment additions, a significant decrease YoY, with no right-of-use asset additions - In H1 2021, there were no additions to right-of-use assets, and additions to owned property, plant, and equipment were approximately RMB 2.3 million, a significant decrease YoY[260][261] - During the period, property, plant, and equipment with a net book value of approximately RMB 15,000 were disposed of, resulting in a disposal loss of approximately RMB 1,000[261] Trade Receivables (Note 9) As of June 30, 2021, net trade receivables increased to RMB 144.4 million, with most due within one month and all expected to be recovered within one year Trade Receivables (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 144,374 | 119,786 | | Less: Loss allowance | - | (1,846) | | Net | 144,374 | 117,940 | Ageing Analysis of Trade Receivables (As of June 30, 2021 vs December 31, 2020) | Ageing | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 108,032 | 81,702 | | 1 to 3 months | 17,866 | 17,553 | | 3 to 6 months | 18,244 | 18,067 | | 6 to 12 months | 305 | 545 | | Total | 144,374 | 117,940 | Prepayments, Deposits and Other Receivables (Note 10) As of June 30, 2021, net prepayments, deposits, and other receivables decreased to RMB 59.7 million, mainly comprising inventory prepayments, third-party loans, and recoverable VAT Prepayments, Deposits and Other Receivables (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Recoverable VAT | 8,755 | 8,482 | | Prepayments for purchase of inventories | 40,013 | 33,604 | | Loans to third parties | 12,036 | 11,342 | | Others | 9,333 | 10,398 | | Less: Loss allowance | (8,083) | (8,083) | | Net | 59,741 | 67,120 | Bank and Cash Balances (Note 11) As of June 30, 2021, bank and cash balances decreased to RMB 76.4 million, with RMB 15.5 million pledged, and remittances subject to PRC foreign exchange controls Bank and Cash Balances (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Bank and cash balances | 76,389 | 56,304 | | Pledged and restricted bank deposits | 15,500 | 53,050 | | Bank and Cash Balances in Consolidated Statement of Financial Position | 76,389 | 109,354 | - RMB 15.5 million was pledged as collateral for bank loans[271] - RMB is not freely convertible, and remittances outside China are subject to PRC government foreign exchange controls[271] Bank Loans (Note 12) As of June 30, 2021, short-term bank loans significantly increased to RMB 555.6 million, collateralized by deposits, with no covenant breaches Short-term Bank Loans (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Secured | 555,597 | 196,597 | - Bank loans are collateralized by time deposits, certificates of deposit, and bank deposits with financial institutions[272] - The Group regularly monitors covenant compliance, with no defaults during the period[272] Trade Payables (Note 13) As of June 30, 2021, trade payables decreased to RMB 833 thousand, with most due within one month and all expected to be settled within one year Trade Payables (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 833 | 1,546 | Ageing Analysis of Trade Payables (As of June 30, 2021 vs December 31, 2020) | Ageing | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 431 | 444 | | 1 to 3 months | 241 | 495 | | 3 to 6 months | 161 | 601 | | 6 to 12 months | - | 6 | | Total | 833 | 1,546 | Accruals and Other Payables (Note 14) As of June 30, 2021, accruals and other payables increased to RMB 51.5 million, mainly comprising accrued logistics, customer advances, and PPE payables Accruals and Other Payables (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Accrued logistics expenses | 18,125 | 18,125 | | Payables for construction of property, plant and equipment | 1,852 | 4,126 | | Customer advances (contract liabilities) | 18,812 | 10,012 | | Others | 9,248 | 6,912 | | Total | 51,508 | 42,834 | Dividends (Note 15) The Board does not recommend an interim dividend for the six months ended June 30, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[281] Fair Value Measurement of Financial Instruments (Note 16) Financial instruments are measured using a three-level fair value hierarchy; Level 3 unlisted equity securities were RMB 16.35 million, increasing by RMB 13.0 million due to acquisitions - Fair value measurement of financial instruments is categorized into three levels, with Level 3 utilizing significant unobservable inputs[282] Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | Fair Value Level | | :--- | :--- | :--- | :--- | | Unlisted equity securities | 16,350 | 3,350 | Level 3 | | Foreign exchange forward contracts | - | 133 | Level 2 | | Structured products | - | 50,827 | Level 2 | - In H1 2021, Level 3 fair value measured unlisted equity securities increased by RMB 13.0 million due to acquisitions[333] Commitments (Note 17) As of June 30, 2021, unprovided capital commitments for property, plant, and equipment were RMB 1,461 thousand, a decrease from end-2020 Capital Commitments (As of June 30, 2021 vs December 31, 2020) | Item | June 30, 2021 (RMB thousand) | December 31, 2020 (RMB thousand) | | :--- | :--- | :--- | | Commitments for property, plant and equipment - Contracted | 1,461 | 1,925 | Contingent Liabilities (Note 18) A subsidiary faces a RMB 64.4 million debt dispute, won in 2020 but under appeal; directors deem liability unlikely, so no provision was made - A Group subsidiary is involved in a debt dispute of approximately RMB 64.4 million, won in 2020, with the plaintiff appealing[339] - Directors believe the subsidiary is unlikely to be liable, and no provision was made as of June 30, 2021[339] Significant Related Party Transactions (Note 19) H1 2021 saw significant related party transactions with a joint venture, including product sales of RMB 277.7 million and transportation services Significant Related Party Transactions (For the six months ended June 30) | Transaction Type | Related Party | 2021 (RMB thousand) | 2020 (RMB thousand) | | :--- | :--- | :--- | :--- | | Sales of products | A joint venture | 277,738 | 280,213 | | Purchases of products | A joint venture | 22 | - | | Provision of transportation services | A joint venture | 354 | 389 | Impact of COVID-19 Pandemic (Note 20) The COVID-19 pandemic negatively impacted H1 2021 operations and demand for LPG, CNG, and LNG, but directors expect a temporary impact and business recovery - The COVID-19 pandemic negatively impacted the Group's operations and financial position, leading to decreased demand for LPG, CNG, and LNG[345][346] - The Group implemented contingency measures, including re-evaluating inventory, enhancing customer monitoring, and accelerating debtor settlements[345] - Directors believe the pandemic's impact is likely temporary, with business expected to recover after the pandemic[346]