中国交通建设(01800) - 2020 - 中期财报

Performance Summary In H1 2020, assets and liabilities grew, but profit attributable to owners fell sharply by 37.2% despite a 2.5% revenue increase, while new contract value showed solid growth Key Financial Indicators for H1 2020 | Indicator | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,232,556 | 1,123,414 | 9.7 | | Total Liabilities | 925,322 | 827,004 | 11.9 | | Total Equity | 307,234 | 296,410 | 3.7 | | Equity attributable to owners of the parent | 228,056 | 229,916 | (0.8) | Key Income Statement Data for H1 2020 | Indicator | As of June 30, 2020 (RMB million) | As of June 30, 2019 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 245,410 | 239,461 | 2.5 | | Gross Profit | 28,511 | 28,100 | 1.5 | | Operating Profit | 13,543 | 15,726 | (13.9) | | Profit attributable to owners of the parent | 5,517 | 8,781 | (37.2) | | Basic Earnings Per Share (RMB) | 0.28 | 0.48 | (41.7) | New Contracts and Uncompleted Contracts for H1 2020 | Indicator | As of June 30, 2020 (RMB million) | Percentage (%) | As of June 30, 2019 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | New Contract Value | 533,094 | 100.0 | 496,975 | 7.3 | | Infrastructure Construction | 478,051 | 89.7 | 440,729 | 8.5 | | Infrastructure Design | 15,888 | 3.0 | 19,328 | (17.8) | | Dredging | 34,735 | 6.5 | 30,854 | 12.6 | | Other Businesses | 4,420 | 0.8 | 6,064 | (27.1) | | Uncompleted Contract Value | 2,259,504 | 100.0 | 2,001,886 | 12.9 | Chairman's Statement The Chairman reviews H1 performance, noting revenue growth despite the pandemic but a significant profit decline due to work stoppages and toll-free policies, while outlining challenges and strategic measures for H2 - H1 revenue was RMB 245.41 billion, a year-on-year increase of 2.5%, with significant acceleration in Q2[21] - Net profit attributable to company shareholders was RMB 5.517 billion, a year-on-year decrease of 37.2%, with EPS at RMB 0.28, mainly due to work stoppages and the domestic toll-free road policy[21] - New contract value reached RMB 533.094 billion, a year-on-year increase of 7.3%; as of June 30, the value of uncompleted contracts was RMB 2.26 trillion, indicating a sufficient order backlog[21] - The company faces challenges including the pandemic's impact, a heavy asset structure (long-cycle operational assets, high investment ratio), an unbalanced profit structure (low margins in traditional businesses, high financing costs for investment businesses), and insufficient vitality[22] - In H2, the company will focus on risk prevention, stable growth, reform, innovation, and integrating party building with business operations to conclude the 13th Five-Year Plan successfully[22][23] Business Overview This section details the company's core businesses, operating model, competitive strengths, and market strategies as a leading transportation infrastructure enterprise, along with a business outlook for H2 Main Businesses and Operating Model The company is a leading transportation infrastructure enterprise with core businesses in construction, design, and dredging, transitioning from a contractor to an investor and operator - The company's core businesses are infrastructure construction, infrastructure design, and dredging, providing integrated solutions covering all stages of infrastructure projects[26] - The operating model includes project information gathering, pre-qualification, bidding, execution, and delivery, supported by a comprehensive project management system[27] - Since 2007, the company has been developing infrastructure investment projects, aiming to transform into an investor and operator, with steady growth in the scale and profitability of its investment business[27] Core Competencies in the Reporting Period The company holds a leading global position in port, highway, bridge, and dredging construction, driven by technological innovation and extensive high-level qualifications - The company is the world's largest port, highway, and bridge design and construction company, the world's largest dredging company, China's largest international engineering contractor, and China's largest highway investor, owning the world's largest fleet of engineering vessels[28] - Technological innovation enhances core competitiveness, with major breakthroughs in technologies for highway construction in complex natural conditions, long-span bridges, and deep-water immersed tube tunnels, achieving domestic production of ultra-large diameter shield tunneling machines[30] - The company has made continuous breakthroughs in business qualifications, holding 33 special-grade qualifications (including 9 for port and waterway engineering and 22 for highway engineering) and 8 comprehensive Grade-A engineering design qualifications[31] Business Review and Market Strategy In H1, the company's business gradually recovered from the pandemic, achieving a 7.3% increase in new contracts by capitalizing on domestic infrastructure opportunities and focusing on the "Belt and Road" initiative overseas - In H1, new contract value was RMB 533.094 billion, a year-on-year increase of 7.3%; the value of uncompleted contracts in execution was RMB 2.26 trillion[32] - Overseas new contract value was RMB 116.338 billion (approx US$16.88 billion), a year-on-year increase of 3.7%, accounting for 22% of the total; the company operates in 139 countries and regions with 855 ongoing overseas contracted projects totaling approximately US$141.1 billion[32] - The confirmed contract value for PPP investment projects was RMB 77.777 billion, a year-on-year increase of 15.7%, accounting for 15% of the total, with an expected construction contract value of RMB 87.484 billion[32] Domestic Market The domestic market saw a recovery in Q2, supported by favorable government policies, as the company focused on key strategic areas and expanded into new sectors like "new infrastructure" - The domestic economy shifted from negative to positive growth in Q2, with the decline in fixed asset investment in infrastructure narrowing; investment in road and railway transportation grew by 0.8% and 2.6%, respectively[33] - Favorable national policies, such as special government bonds, tax and fee reductions, lower capital requirements for PPP projects, and pilot infrastructure REITs, created new opportunities for the industry[33] - The company focused on five strategic directions: "going overseas," "entering bay areas," "advancing into cities," "networking," and "pleasing people," seizing opportunities in major projects like new urbanization, transportation, and water conservancy, while expanding into new fields such as urban construction, environmental protection, and "new infrastructure"[33] Overseas Market Despite pandemic-related project delays and increased risks, the overseas market maintained stable new contract values by securing major projects and implementing reform initiatives for high-quality development - The spread of the pandemic overseas led to shutdowns in many countries, delaying international bidding activities and increasing project risks, but infrastructure investment remains a primary choice for global economic stimulus[34] - The company's overseas new contract value remained largely flat year-on-year, securing several major projects each exceeding US$300 million, including the Tuas Integrated Waste Management Facility EPC project in Singapore and the Sihanoukville land reclamation project in Cambodia[34] - The company planned and implemented an "Overseas Reform Year" program, introducing a series of reform measures to continuously promote high-quality overseas development[34] Segment Performance This section details the H1 2020 performance of key business segments, highlighting growth in infrastructure construction and dredging new contracts, while infrastructure design and other businesses saw declines Infrastructure Construction Business The infrastructure construction business achieved an 8.5% year-on-year growth in new contracts, driven by strong performance in port construction and municipal & environmental engineering Breakdown of New Contract Value for Infrastructure Construction | Project Type | H1 2020 New Contract Value (RMB million) | % of Infrastructure Construction New Contracts | H1 2019 New Contract Value (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Port Construction | 22,032 | 5 | 12,155 | 81.3 | | Road and Bridge Construction | 117,430 | 25 | 138,303 | (15.1) | | Railway Construction | 1,164 | 0.2 | 2,879 | (59.6) | | Municipal & Environmental Engineering | 222,329 | 46 | 181,650 | 22.4 | | Overseas Projects | 115,096 | 24 | 105,742 | 8.8 | - As of June 30, 2020, the infrastructure construction business held RMB 2.05 trillion in uncompleted contracts[35] Infrastructure Design Business The infrastructure design business experienced a 17.8% decline in new contracts, although the scale of domestic survey and design projects increased due to new infrastructure initiatives New Contract Value for Infrastructure Design Business | Indicator | H1 2020 (RMB million) | Change (%) | | :--- | :--- | :--- | | New Contract Value | 15,888 | (17.8) | | New Contract Value in Overseas Regions | 434 | - | | Confirmed Contract Value from PPP Projects | 823 | - | | Expected Construction Contract Value | 790 | - | - As of June 30, 2020, the infrastructure design business held RMB 85.852 billion in uncompleted contracts[43] - The scale of domestic survey and design projects increased year-on-year, benefiting from the launch of new infrastructure projects and "stable growth" policies[43] Dredging Business The dredging business saw a 12.6% increase in new contracts, maintaining its traditional market leadership while significantly expanding its market share in environmental projects through the EOD model New Contract Value for Dredging Business | Indicator | H1 2020 (RMB million) | Change (%) | | :--- | :--- | :--- | | New Contract Value | 34,735 | 12.6 | | New Contract Value in Overseas Regions | 765 | - | | Confirmed Contract Value from PPP Projects | 1,090 | - | | Expected Construction Contract Value | 1,033 | - | - As of June 30, 2020, the dredging business held RMB 113.33 billion in uncompleted contracts[44] - The company actively explored the EOD model, securing several landmark environmental projects and significantly increasing its market share[44] Other Businesses The other businesses segment reported a 27.1% year-on-year decrease in new contracts, with an uncompleted contract value of RMB 10.293 billion by the end of H1 2020 New Contract Value for Other Businesses | Indicator | H1 2020 (RMB million) | Change (%) | | :--- | :--- | :--- | | New Contract Value | 4,420 | (27.1) | - As of June 30, 2020, other businesses held RMB 10.293 billion in uncompleted contracts[46] Operating Plan and Business Outlook H1 new contracts and revenue met expectations, and for H2, the company will focus on the domestic market, national strategic integration, and new business development while strengthening overseas risk management - In H1, new contract value reached RMB 533.094 billion, achieving 51% of the annual target; revenue was RMB 245.41 billion, achieving 41% of the annual target, both in line with expectations[55] - In H2, the domestic market will be the primary focus to offset the pandemic's impact and promote stable, high-quality growth, consolidating core competitiveness in traditional businesses and increasing resource allocation to national central cities, metropolitan areas, and city clusters[56] - The overseas market strategy will involve a comprehensive review of the existing development landscape and a re-evaluation, refinement, and upgrade of the risk control system to firmly uphold the baseline of high-quality development[56] Key Operating Data This section provides detailed data on completed, ongoing, and investment projects, highlighting the company's plans to participate in infrastructure REITs to revitalize existing assets Completed Projects in Reporting Period In H1, the total value of completed and accepted projects was RMB 163.55 billion, with the infrastructure construction business contributing the largest share at RMB 132.78 billion Completed and Accepted Projects in H1 2020 | Indicator | Quantity (units) | Amount (RMB million) | | :--- | :--- | :--- | | Total Contract Value | N/A | 163,550 | | Domestic | N/A | 140,231 | | Overseas | N/A | 23,319 | | Infrastructure Construction | 399 | 132,780 | | Infrastructure Design | 1,247 | 9,882 | | Dredging | 160 | 12,175 | | Other | N/A | 8,713 | Projects Under Construction in Reporting Period As of the end of the reporting period, the total value of projects under construction was RMB 3.58 trillion, with the infrastructure construction business accounting for the largest portion at RMB 3.22 trillion Projects Under Construction in H1 2020 | Indicator | Quantity (units) | Amount (RMB million) | | :--- | :--- | :--- | | Total Project Value | N/A | 3,584,921 | | Domestic | N/A | 2,752,538 | | Overseas | N/A | 832,383 | | Infrastructure Construction | 4,727 | 3,223,821 | | Infrastructure Design | 20,011 | 187,928 | | Dredging | 1,961 | 159,511 | | Other | N/A | 13,661 | Investment Projects While investment project approvals slowed in H1, financing channels eased due to counter-cyclical policies, and the company plans to participate in infrastructure REITs to revitalize existing assets - PPP projects have gradually entered a phase of standardized, high-quality development, with a significant increase in the proportion of green, environmental, and public welfare projects[59] - The company is expanding into new fields, business formats, and models such as wellness and cultural tourism, characteristic towns, cold chain logistics, and smart parking, with projects like the Yichang Cultural Tourism Town and Guangzhou Railway Container Center Cold Chain Zone[59] - The company plans to actively participate in the first batch of pilot infrastructure REITs to revitalize existing assets, improve its asset structure, reduce financing costs, and create a model case for PPP+REITs[59] New Investment Projects Signed in H1 2020 | Project Type | Confirmed Contract Value (RMB million) | % of PPP Investment Project Confirmed Contract Value | | :--- | :--- | :--- | | BOT Projects | 26,356 | 34 | | Government-Payment Projects | 41,846 | 54 | | Urban Comprehensive Development Projects | 9,575 | 12 | | Total | 77,777 | 100 | - There were 20 concession right projects in the operational phase (plus 12 equity-participating projects), which generated RMB 1.401 billion in operating revenue and a net loss of RMB 2.72 billion in H1, mainly due to the toll-free policy for domestic highways during the early stages of the pandemic[62] Management Discussion and Analysis This chapter analyzes H1 2020 financial performance, where revenue grew slightly but profits fell sharply due to pandemic impacts, increased impairments, and losses from associates, alongside rising debt levels Overview In H1 2020, revenue grew 2.5% to RMB 245.41 billion, but operating profit fell 13.9% and profit attributable to owners dropped 37.2%, with a notable recovery in Q2 domestic performance Key Financial Overview for H1 2020 | Indicator | H1 2020 (RMB million) | H1 2019 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 245,410 | 239,461 | 2.5 | | Overseas Market Revenue | 37,939 | 45,259 | (16.2) | | Gross Profit | 28,511 | 28,100 | 1.5 | | Gross Profit Margin | 11.6% | 11.7% | (0.1)pp | | Operating Profit | 13,543 | 15,726 | (13.9) | | Profit attributable to owners of the parent | 5,517 | 8,781 | (37.2) | | Earnings Per Share (RMB) | 0.28 | 0.48 | (41.7) | Consolidated Operating Results Revenue grew 2.5% in H1, but operating profit declined 13.9% due to reduced other income and increased impairment losses, leading to a 20.8% drop in profit before tax - Revenue increased by 2.5% to RMB 245.41 billion, with growth across all business segments[73] - Gross profit grew by 1.5% to RMB 28.511 billion, but the gross profit margin slightly decreased from 11.7% to 11.6%, with the infrastructure design business's gross profit falling by 12.0%[74] - Administrative expenses increased by 2.4% to RMB 14.288 billion, mainly due to higher employee benefit expenses and R&D expenditures[75] - Net other income decreased by 80.5% to RMB 246 million, primarily due to a reduction in gains from the disposal of subsidiaries[76] - Net impairment losses on financial and contract assets increased by 120.1% to RMB 1.985 billion, mainly due to the aging of trade and other receivables[77] - Operating profit decreased by 13.9% to RMB 13.543 billion, with the operating profit margin falling from 6.6% to 5.5%[78] - Net finance income and costs decreased by 13.4% to RMB 3.472 billion, as the increase in interest income from investment projects outpaced the rise in borrowing interest expenses[79] - Share of losses from joint ventures was RMB 395 million and from associates was RMB 138 million, both increasing due to pandemic-related losses on highway concession projects[80][81] - Profit before income tax decreased by 20.8% to RMB 9.538 billion, with the effective tax rate rising to 28.2%[82] Segment Operating Performance Discussion This section analyzes the operating performance of each business segment, where infrastructure construction revenue grew but margins fell, and dredging saw higher gross margins but lower operating profit margins Segment Operating Performance for H1 2020 | Business | Revenue (RMB million) | Gross Profit (RMB million) | Gross Profit Margin (%) | Operating Profit (RMB million) | Operating Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Infrastructure Construction | 218,839 | 24,005 | 11.0 | 11,980 | 5.5 | | Infrastructure Design | 13,628 | 1,938 | 14.2 | 663 | 4.9 | | Dredging | 16,122 | 2,043 | 12.7 | 522 | 3.2 | | Other Businesses | 4,791 | 479 | 10.0 | 206 | 4.3 | | Total | 245,410 | 28,511 | 11.6 | 13,543 | 5.5 | - The gross profit margin for the infrastructure construction business decreased from 11.2% in H1 2019 to 11.0%, and the segment operating profit margin fell from 6.3% to 5.5%, mainly due to the pandemic's impact and expected losses on certain overseas projects[87][88] - The gross profit margin for the infrastructure design business decreased from 16.7% in H1 2019 to 14.2%, and the segment operating profit margin fell from 7.1% to 4.9%, primarily due to an increased revenue contribution from lower-margin comprehensive projects[91][93] - The gross profit margin for the dredging business increased from 11.0% in H1 2019 to 12.7%, but the segment operating profit margin decreased from 4.4% to 3.2%, mainly due to a significant increase in provisions for losses on certain customers with credit risks[96][97] - The gross profit margin for other businesses increased from 9.1% in H1 2019 to 10.0%[99] Liquidity and Capital Resources The company's net cash outflow from investing activities increased significantly, while financing inflows grew substantially from perpetual securities and bank borrowings, leading to a higher gearing ratio of 50.6% Cash Flow Data for H1 2020 | Indicator | H1 2020 (RMB million) | H1 2019 (RMB million) | | :--- | :--- | :--- | | Net cash used in operating activities | (40,565) | (40,304) | | Net cash used in investing activities | (42,226) | (29,014) | | Net cash generated from financing activities | 84,520 | 44,169 | | Net increase/(decrease) in cash and cash equivalents | 1,729 | (25,149) | | Cash and cash equivalents at end of period | 120,873 | 102,697 | - Net cash used in investing activities increased by 45.5% to RMB 42.226 billion, mainly due to increased expenditures on intangible and long-term assets and financial assets at FVTPL[102] - Net cash generated from financing activities grew by 91.4% to RMB 84.52 billion, primarily due to proceeds from perpetual securities and bank and other borrowings[103] Capital Expenditure for H1 2020 | Business | H1 2020 (RMB million) | H1 2019 (RMB million) | | :--- | :--- | :--- | | Infrastructure Construction Business | 21,418 | 19,128 | | Infrastructure Design Business | 232 | 333 | | Dredging Business | 658 | 476 | | Other Businesses | 517 | 853 | | Total | 22,825 | 20,790 | - The average turnover period for trade and notes receivables extended from 62 days in 2019 to 75 days in H1 2020[107] - Total borrowings increased to RMB 435.887 billion, and the gearing ratio rose from 42.9% as of December 31, 2019, to 50.6% as of June 30, 2020[113][114] - Contingent liabilities totaled RMB 8.62 billion, including RMB 1.273 billion in pending litigation and RMB 7.347 billion in outstanding loan guarantees[115] Market Risks The company faces multiple market risks, including macroeconomic downturns, geopolitical instability, and fluctuations in interest and foreign exchange rates, which are actively monitored and managed - Macroeconomic Risk: The business is closely tied to macroeconomic performance; a global downturn or significant slowdown in China's economy could adversely affect operating results[117] - Market Risk: Operating in 139 countries and regions, the company's overseas business is exposed to risks from adverse political and economic changes in these locations[118] - Interest Rate Risk: Primarily arising from floating-rate borrowings, rising interest rates would increase financing costs; management uses interest rate swap agreements to mitigate this risk[119] - Foreign Exchange Risk: Overseas revenue and some expenditures are settled in foreign currencies, and the RMB is not freely convertible; the company uses derivative financial instruments to hedge against currency fluctuations[120] - Force Majeure Risk: Outdoor operations are susceptible to natural disasters and public health events like the COVID-19 pandemic, which can delay projects; the company is strengthening control measures and promoting the orderly resumption of work[122] Independent Review Report Ernst & Young reviewed the interim financial information and concluded that nothing suggests it was not prepared in all material respects in accordance with International Accounting Standard 34 - Ernst & Young conducted their review of the interim financial information in accordance with International Standard on Review Engagements 2410[125] - Review Conclusion: Nothing has come to their attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[126] Interim Condensed Consolidated Statement of Profit or Loss This statement shows a 2.5% revenue increase in H1 2020, but significant declines in operating profit and profit attributable to owners, with basic EPS falling from RMB 0.48 to RMB 0.28 Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2020 (RMB million) | H1 2019 (RMB million) | | :--- | :--- | :--- | | Revenue | 245,410 | 239,461 | | Gross Profit | 28,511 | 28,100 | | Operating Profit | 13,543 | 15,726 | | Profit before tax | 9,538 | 12,047 | | Profit for the period | 6,846 | 9,776 | | Profit attributable to owners of the parent | 5,517 | 8,781 | | Basic earnings per share (RMB) | 0.28 | 0.48 | Interim Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for H1 2020 fell sharply to RMB 4.985 billion from RMB 14.796 billion in H1 2019, driven by fair value losses on equity investments and increased currency translation losses Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2020 (RMB million) | H1 2019 (RMB million) | | :--- | :--- | :--- | | Profit for the period | 6,846 | 9,776 | | Net other comprehensive income/(loss) | (1,861) | 5,020 | | Total comprehensive income for the period | 4,985 | 14,796 | | Comprehensive income attributable to owners of the parent | 3,652 | 13,794 | - The fair value change of equity investments designated at FVTOCI shifted from a RMB 5.257 billion gain in H1 2019 to a RMB 1.01 billion loss in H1 2020[129] - Exchange differences on translation of foreign operations resulted in an other comprehensive loss of RMB 847 million, compared to just RMB 36 million in H1 2019[129] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2020, total assets and liabilities increased, driven by growth in intangible assets and receivables, while a significant rise in current borrowings expanded net current assets Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Total non-current assets | 652,859 | 594,045 | | Total current assets | 579,697 | 529,369 | | Total assets | 1,232,556 | 1,123,414 | | Total current liabilities | 574,698 | 528,339 | | Total non-current liabilities | 350,624 | 298,665 | | Total liabilities | 925,322 | 827,004 | | Total equity | 307,234 | 296,410 | | Equity attributable to owners of the parent | 228,056 | 229,916 | | Non-controlling interests | 79,178 | 66,494 | - Intangible assets (mainly concession assets) increased from RMB 219.227 billion to RMB 236.802 billion[130] - Under current assets, trade and other receivables grew from RMB 223.768 billion to RMB 244.296 billion, and contract assets increased from RMB 116.236 billion to RMB 132.748 billion[130] - Under current liabilities, interest-bearing bank and other borrowings increased significantly from RMB 76.379 billion to RMB 120.952 billion[130] Interim Condensed Consolidated Statement of Changes in Equity Equity attributable to owners of the parent decreased due to lower profits, fair value losses, and dividend distributions, while non-controlling interests grew significantly from the issuance of perpetual securities - Equity attributable to owners of the parent decreased from RMB 229.916 billion as of December 31, 2019, to RMB 228.056 billion as of June 30, 2020[132] - Profit for the period was RMB 5.517 billion, but a fair value loss of RMB 1.01 billion was recognized on equity investments designated at FVTOCI[132] - The company declared a 2019 final dividend of RMB 3.765 billion and made distributions of RMB 663 million to perpetual securities holders and RMB 718 million to preference shareholders[132] - Non-controlling interests increased from RMB 66.494 billion to RMB 79.178 billion, mainly due to the issuance of perpetual securities (RMB 17.715 billion) and the acquisition of subsidiaries (RMB 1.706 billion)[132] - The company repurchased 9.024 million H shares for a total consideration of approximately HK$44.19 million, which were recorded as treasury shares[133][271] Interim Condensed Consolidated Statement of Cash Flows Net cash used in operating activities remained stable, while net cash used in investing activities rose sharply by 45.5%, and net cash from financing activities grew significantly by 91.4% Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | H1 2020 (RMB million) | H1 2019 (RMB million) | | :--- | :--- | :--- | | Net cash used in operating activities | (40,565) | (40,304) | | Net cash used in investing activities | (42,226) | (29,014) | | Net cash generated from financing activities | 84,520 | 44,169 | | Net increase/(decrease) in cash and cash equivalents | 1,729 | (25,149) | | Cash and cash equivalents at end of period | 120,873 | 102,697 | - Net cash used in investing activities increased by 45.5%, mainly due to increased purchases of intangible assets, long-term assets, and financial assets at FVTPL[102][136] - Net cash generated from financing activities grew by 91.4%, primarily due to proceeds from perpetual securities and bank and other borrowings[103][136] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes covering accounting policies, segment data, financial instrument valuations, commitments, and other key disclosures for the interim financial statements Company and Group Information China Communications Construction Company Limited was established in 2006, with its H-shares and A-shares listed in 2006 and 2012 respectively, and its ultimate holding company is China Communications Construction Group (Limited) - The Company was established on October 8, 2006, with its H-shares listed on December 15, 2006, and A-shares listed on March 9, 2012[137] - The Company and its subsidiaries are principally engaged in infrastructure construction, infrastructure design, and dredging businesses[137] - The Company's immediate and ultimate holding company is China Communications Construction Group (Limited)[137] Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and presented in RMB, and should be read with the 2019 annual financial statements - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[138] - The financial information is presented in RMB, and all values are rounded to the nearest million[138] Changes in Accounting Policies and Disclosures The company adopted several amended IFRSs, including those related to the definition of a business and COVID-19-related rent concessions, with no material impact on the interim financial statements - The company adopted amended IFRSs for the first time, including changes to the definition of a business, interest rate benchmark reform, COVID-19-related rent concessions, and the definition of material[139][140] - The amendment to IFRS 16 regarding COVID-19-related rent concessions was early adopted but had no material impact on the interim condensed consolidated financial information[141] Operating Segment Information The company identifies four operating segments, with infrastructure construction being the largest, contributing 86.3% of revenue and 89.6% of operating profit, primarily from Mainland China - The company's operating segments include infrastructure construction, infrastructure design, dredging, and other businesses, with performance evaluated based on operating profit[142] Total Revenue and Operating Profit by Segment for H1 2020 | Segment | Total Segment Revenue (RMB million) | Percentage (%) | Segment Results (RMB million) | Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Infrastructure Construction | 218,839 | 86.3 | 11,980 | 89.6 | | Infrastructure Design | 13,628 | 5.4 | 663 | 5.0 | | Dredging | 16,122 | 6.4 | 522 | 3.9 | | Other Businesses | 4,791 | 1.9 | 206 | 1.5 | | Total | 253,380 | 100.0 | 13,371 | 100.0 | Revenue from External Customers by Geographical Location for H1 2020 | Region | Revenue (RMB million) | Percentage (%) | | :--- | :--- | :--- | | Mainland China | 207,471 | 84.5 | | Other regions | 37,939 | 15.5 | | Total | 245,410 | 100.0 | Revenue, Other Income and Net Other Gains Total revenue for H1 2020 was RMB 245.41 billion, while net other gains decreased significantly due to reduced gains from the disposal of subsidiaries Revenue from Contracts with Customers by Segment for H1 2020 | Segment | Revenue (RMB million) | | :--- | :--- | | Infrastructure Construction | 218,839 | | Infrastructure Design | 13,628 | | Dredging | 16,122 | | Other | 4,791 | | Inter-segment elimination | (7,970) | | Total | 245,410 | Other Income for H1 2020 | Item | Amount (RMB million) | | :--- | :--- | | Rental income | 319 | | Consulting service income | 168 | | Dividend income | 682 | | Government grants | 318 | | Others | 721 | | Total | 2,323 | Net Other Gains for H1 2020 | Item | Amount (RMB million) | | :--- | :--- | | Gain on disposal of items of property, plant and equipment | 46 | | Gain on disposal of subsidiaries | 2 | | Gain on disposal of joint ventures and associates | 9 | | Net fair value gains/(losses) | (188) | | Net foreign exchange differences | 428 | | Others | (223) | | Total | 246 | - Net other gains decreased by 80.5% from RMB 1.26 billion in H1 2019, mainly due to reduced gains from the disposal of subsidiaries[76][171] Profit Before Tax Profit before tax for H1 2020 was RMB 9.538 billion, a decrease of 20.8% from the prior year, with major costs including raw materials, subcontracting, and employee benefits - Profit before tax was RMB 9.538 billion, a decrease of 20.8% from RMB 12.047 billion in H1 2019[82][128] Major Costs and Expenses for H1 2020 | Item | Amount (RMB million) | | :--- | :--- | | Raw materials and consumables used | 72,627 | | Subcontracting costs | 85,147 | | Employee benefit expenses | 25,438 | | Research and development costs | 5,565 | | Depreciation of property, plant and equipment and investment properties | 4,265 | | Net impairment of financial and contract assets | 1,985 | Finance Income Finance income for H1 2020 was RMB 5.143 billion, an increase of 42.2% from the prior year, primarily driven by interest from PPP contract receivables and fund lending Breakdown of Finance Income for H1 2020 | Item | Amount (RMB million) | | :--- | :--- | | Interest on bank deposits | 370 | | Interest on PPP contract receivables | 2,343 | | Interest on fund lending | 1,292 | | Other interest | 1,138 | | Total | 5,143 | - Finance income increased by 42.2% from RMB 3.616 billion in H1 2019[79][173] Net Finance Costs Net finance costs for H1 2020 were RMB 8.615 billion, an increase of 13.0% from the prior year, with total interest expenses reaching RMB 9.421 billion before capitalization Breakdown of Net Finance Costs for H1 2020 | Item | Amount (RMB million) | | :--- | :--- | | Net interest expenses | 7,923 | | Net foreign exchange losses on borrowings | 49 | | Others | 643 | | Total | 8,615 | - Net finance costs increased by 13.0% from RMB 7.627 billion in H1 2019[79][174] - Total interest expenses were RMB 9.421 billion, of which RMB 1.498 billion was capitalized, mainly for inventories, concession assets, and construction in progress[174][175] Income Tax Income tax expense for H1 2020 was RMB 2.692 billion, an increase of 18.5%, with the effective tax rate rising to 28.2% due to factors including fewer deferred tax assets on concession projects Income Tax Expense for H1 2020 | Item | Amount (RMB million) | | :--- | :--- | | Current income tax | 3,349 | | Deferred income tax | (657) | | Total | 2,692 | - Income tax expense increased by 18.5% from RMB 2.271 billion in H1 2019[82][177] - The effective tax rate rose from 18.9% in H1 2019 to 28.2%, mainly due to fewer deferred tax assets on concession projects, increased taxes on certain urban development projects, and higher non-taxable investment losses from joint ventures and associates[82] Dividends The 2019 final dividend of RMB 0.23276 per share, totaling RMB 3.765 billion, was approved in June 2020, and the Board did not declare an interim dividend for H1 2020 - The 2019 final dividend, totaling RMB 3.765 billion, was approved by shareholders on June 17, 2020[179] - The Board of Directors did not declare an interim dividend for H1 2020[179] Earnings Per Share Attributable to Ordinary Equity Holders of the Parent Basic earnings per share for H1 2020 was RMB 0.28, down from RMB 0.48 in H1 2019, after deducting interest on perpetual securities and preference share dividends Calculation of Basic Earnings Per Share for H1 2020 | Indicator | H1 2020 (RMB million) | H1 2019 (RMB million) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 5,517 | 8,781 | | Less: Interest on perpetual securities | (332) | (264) | | Less: Dividends on preference shares | (718) | (718) | | Profit for EPS calculation | 4,467 | 7,799 | | Weighted average number of ordinary shares in issue (million shares) | 16,174 | 16,175 | | Basic earnings per share (RMB) | 0.28 | 0.48 | - Basic earnings per share decreased to RMB 0.28, mainly due to the reduction in profit attributable to owners of the parent[182] - As there were no potential dilutive ordinary shares, diluted earnings per share was the same as basic earnings per share[183] Property, Plant and Equipment The net book value of property, plant and equipment was RMB 60.828 billion as of June 30, 2020, a slight increase from year-end 2019, with ownership certificates for properties worth RMB 3.043 billion pending Net Book Value Movement of Property, Plant and Equipment | Item | Amount (RMB million) | | :--- | :--- | | As at December 31, 2019 | 60,400 | | Additions | 5,066 | | Disposals | (323) | | Depreciation charge for the period | (4,179) | | As at June 30, 2020 | 60,828 | - As of June 30, 2020, the company was in the process of applying for ownership certificates for properties with a total carrying amount of approximately RMB 3.043 billion[189] Intangible Assets The net book value of intangible assets was RMB 236.802 billion as of June 30, 2020, an increase from year-end 2019, primarily comprising concession assets, of which RMB 217.218 billion were pledged Net Book Value Movement of Intangible Assets | Item | Amount (RMB million) | | :--- | :--- | | As at January 1, 2020 | 219,227 | | Additions | 15,862 | | Acquisition of subsidiaries | 7,880 | | Disposal of subsidiaries | (1,749) | | Disposals | (3,595) | | Amortisation charge for the period | (803) | | As at June 30, 2020 | 236,802 | - Concession assets represent assets under "Build-Operate-Transfer" service concession arrangements, mainly consisting of toll roads in Mainland China[194] - Approximately RMB 217.218 billion of concession assets and trade receivables have been pledged to secure bank and other borrowings[194] Financial Assets at Fair Value Through Profit or Loss Financial assets at FVTPL totaled RMB 10.598 billion as of June 30, 2020, an increase from year-end 2019, primarily composed of unlisted investments and financial products Financial Assets at Fair Value Through Profit or Loss | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Listed equity investments | 550 | 383 | | Unlisted investments and financial products | 10,048 | 6,755 | | Total | 10,598 | 7,138 | - Unlisted investments mainly comprise unlisted equity investments, which are classified as at FVTPL as the company did not elect to recognise fair value changes through other comprehensive income[195] Equity Investments Designated at Fair Value Through Other Comprehensive Income Equity investments at FVTOCI totaled RMB 24.238 billion as of June 30, 2020, a slight decrease from year-end 2019, comprising strategic investments in listed and unlisted equity instruments Equity Investments Designated at Fair Value Through Other Comprehensive Income | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Listed equity instruments | 20,564 | 21,756 | | Unlisted equity instruments | 3,674 | 3,262 | | Total | 24,238 | 25,018 | - These equity investments are considered strategic and have therefore been irrevocably designated as at FVTOCI[196] Inventories Total inventories were RMB 70.173 billion as of June 30, 2020, an increase from year-end 2019, mainly consisting of raw materials and properties under development, with RMB 1.611 billion pledged for bank loans Breakdown of Inventories | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Raw materials | 22,168 | 18,667 | | Work in progress | 2,063 | 1,187 | | Properties under development | 39,514 | 35,537 | | Completed properties held for sale | 4,911 | 5,944 | | Total | 70,173 | 62,613 | - Approximately RMB 1.611 billion of properties under development and completed properties held for sale have been pledged to secure bank loans[197] Contract Assets and Contract Liabilities As of June 30, 2020, total contract assets increased to RMB 163.714 billion, while total contract liabilities slightly decreased to RMB 79.37 billion, both primarily from the infrastructure construction business Contract Assets and Contract Liabilities | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Total contract assets | 163,714 | 146,501 | | Of which: Infrastructure Construction | 144,531 | 129,595 | | Total contract liabilities | 79,370 | 82,992 | | Of which: Infrastructure Construction | 71,437 | 74,015 | Trade and Other Receivables Total trade and other receivables increased to RMB 454.891 billion as of June 30, 2020, with an increase in impairment provisions for trade receivables and an extended turnover period Breakdown of Trade and Other Receivables | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Trade and notes receivables (net of impairment) | 104,891 | 99,411 | | Long-term receivables (net of impairment) | 250,119 | 215,024 | | Other receivables (net of impairment) | 99,881 | 87,370 | | Total | 454,891 | 401,805 | - The impairment provision for trade and notes receivables increased from RMB 13.904 billion at year-end 2019 to RMB 14.868 billion[110][203] - Approximately RMB 6.642 billion of outstanding trade and other receivables (excluding PPP project receivables) have been pledged to secure bank loans[203] Cash and Bank Balances Total cash and bank balances were RMB 128.428 billion as of June 30, 2020, a slight increase from year-end 2019, with the majority denominated in RMB Breakdown of Cash and Bank Balances | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Restricted bank deposits | 4,412 | 4,308 | | Time deposits with original maturity over three months | 3,143 | 2,322 | | Cash and cash equivalents | 120,873 | 118,908 | | Total | 128,428 | 125,538 | - The majority of cash and bank balances, RMB 84.525 billion, are denominated in RMB[205] Trade and Other Payables Total trade and other payables increased to RMB 394.811 billion as of June 30, 2020, with an extended turnover period for trade and notes payables Breakdown of Trade and Other Payables | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Trade and notes payables | 268,367 | 277,959 | | Deposits from suppliers | 28,994 | 27,984 | | Quality retention money | 30,533 | 28,042 | | Deposits taken by the finance company | 11,697 | 5,374 | | Total | 394,811 | 386,644 | - The average turnover period for trade and notes payables extended from 196 days in 2019 to 227 days in H1 2020[107][108] Interest-bearing Bank and Other Borrowings Total interest-bearing borrowings increased significantly to RMB 435.887 billion as of June 30, 2020, primarily denominated in RMB and partially secured by various assets Total Interest-bearing Bank and Other Borrowings | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Total non-current borrowings | 314,935 | 265,048 | | Total current borrowings | 120,952 | 76,379 | | Total borrowings | 435,887 | 341,427 | - Borrowings are mainly denominated in RMB (RMB 415.821 billion), followed by USD, JPY, EUR, and HKD[213] - The effective annual interest rates on borrowings range from 0.21% to 8.34%, with higher rates for some subsidiaries in Colombia[213] - Certain borrowings are secured by investment properties, right-of-use assets, intangible assets (concession assets), inventories, and trade and other receivables[214] Other Reserves Total other reserves decreased to RMB 33.749 billion as of June 30, 2020, mainly due to fair value losses on investment revaluation reserves and negative currency translation differences Movement in Other Reserves | Item | 2019-12-31 (RMB million) | 2020-06-30 (RMB million) | | :--- | :--- | :--- | | Capital reserve | 10,746 | 10,701 | | Statutory surplus reserve | 5,945 | 5,945 | | General risk reserve | 957 | 957 | | Investment revaluation reserve | 14,210 | 13,190 | | Exchange reserve | 1,145 | 294 | | Total | 35,267 | 33,749 | - The investment revaluation reserve decreased by RMB 1.01 billion due to fair value changes[215] - The exchange reserve decreased by RMB 851 million due to exchange differences on the translation of foreign operations[215] Contingent Liabilities As of June 30, 2020, total contingent liabilities were RMB 8.62 billion, comprising pending litigation and loan guarantees, with additional obligations for mortgage guarantees and asset-backed securities Contingent Liabilities | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Pending litigation | 1,273 | 1,201 | | Outstanding loan guarantees | 7,347 | 6,944 | | Total | 8,620 | 8,145 | - The company provides mortgage guarantees to banks for property purchasers, with an outstanding balance of approximately RMB 3.776 billion[218] - The company has liquidity support obligations for asset-backed securities and notes totaling RMB 10.857 billion, but the directors assess the probability of fulfilling these obligations as low[218] Business Combinations In H1 2020, the company acquired control of several subsidiaries through non-common control acquisitions for RMB 2.583 billion and gained control of CCCC Tianhe through a capital increase treated as a common control combination - In H1, the total consideration for acquiring subsidiaries not under common control was RMB 2.583 billion, contributing RMB 1 million to consolidated profit[219][222] - The company gained control of CCCC Tianhe by increasing its capital by RMB 1 billion, resulting in a total group holding of 83.48%; this transaction was treated as a business combination under common control, and comparative figures have been restated[223] Disposal of Subsidiaries In H1 2020, the company disposed of its controlling interests in several subsidiaries, generating a gain of RMB 2 million and a net cash inflow of RMB 137 million - In H1, the company disposed of its controlling interests in several subsidiaries, including CCCC Yulin, Guangxi Puqing, Guangxi CCCC Urban Investment, Haikou CCCC Guoxing, Huizhou Huitong, and Huizhou Zhaole[226][227] - The disposal of subsidiaries generated a gain of RMB 2 million and a net cash inflow of RMB 137 million[229][231] Commitments As of June 30, 2020, capital expenditure contracted but not yet incurred totaled RMB 144.944 billion, a significant increase from year-end 2019, mainly for concession assets Capital Expenditure Contracted but Not Yet Incurred | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Intangible assets – Concession assets | 143,697 | 100,846 | | Property, plant and equipment | 1,247 | 1,231 | | Total | 144,944 | 102,077 | - Capital expenditure contracted but not yet incurred increased significantly, primarily concentrated in concession assets[232] Pledge of Assets As of June 30, 2020, a total of RMB 232.955 billion in assets were pledged to secure interest-bearing bank and other borrowings, primarily consisting of concession assets and trade receivables from PPP projects Total Pledged Assets | Item | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Property, plant and equipment | 96 | 110 | | Investment properties | 1,041 | 1,079 | | Right-of-use assets | 6,347 | 6,040 | | Concession assets and trade receivables from PPP projects | 217,218 | 183,235 | | Inventories | 1,611 | 2,408 | | Trade and other receivables | 6,642 | 15,989 | | Total | 232,955 | 208,861 | - Restricted deposits amounted to RMB 4.412 billion[233] Related Party Transactions The company engaged in numerous related party transactions with CCCG and its affiliates, including construction services, financial services, and equity transactions, all conducted on agreed terms - The company conducted various related party transactions with CCCG, fellow subsidiaries, joint ventures, and associates, including construction services, sales of goods, rent, deposits with the finance company, loans, and subcontracting fees[236] - As of June 30, 2020, outstanding trade and notes receivables from related parties were RMB 9.539 billion, and long-term trade receivables and contract assets were RMB 22.098 billion[238] - The company provided outstanding loan guarantees totaling RMB 3.571 billion to related parties, while CCCG provided outstanding loan guarantees of RMB 6.301 billion to the company[240] - The company engaged in several equity transactions with related parties, including the acquisition of shares in CR-Land (Tianjin), the disposal of shares in Guangxi CCCC Urban Investment, and capital increases for Haikou CCCC Guoxing and CCCC Tianhe[244] - Derivative financial instrument transactions with related party Greentown China Holdings Limited resulted in a fair value loss of RMB 182 million and investment income of RMB 105 million[245] Financial Instruments by Category As of June 30, 2020, total financial assets were RMB 566.361 billion, mainly comprising assets at amortized cost, while total financial liabilities were RMB 804.336 billion, primarily borrowings and payables Financial Assets by Category as at June 30, 2020 | Category | Amount (RMB million) | | :--- | :--- | | Financial assets at fair value through profit or loss | 10,598 | | Equity investments designated at fair value through other comprehensive income | 24,238 | | Derivative financial instruments | 665 | | Debt investments at amortised cost | 186 | | Trade and other receivables (excluding prepayments and other non-financial assets) | 402,246 | | Cash and bank balances | 128,428 | | Total | 566,361 | Financial Liabilities by Category as at June 30, 2020 | Category | Amount (RMB million) | | :--- | :--- | | Borrowings (excluding lease liabilities) | 433,487 | | Lease liabilities | 2,400 | | Derivative financial instruments | 2 | | Trade and other payables (excluding statutory and other non-financial liabilities) | 368,447 | | Total | 804,336 | Fair Value and Fair Value Hierarchy of Financial Instruments The company uses a three-level hierarchy for fair value measurement, with assets measured at fair value totaling RMB 38.304 billion, primarily valued using market quotes and discounted cash flow models - The fair value of the company's financial instruments is the amount for which an instrument could be exchanged in a current transaction between willing parties[254] - Fair value estimation methods include market quotes, discounted cash flow models, and market comparable company models[254] Assets Measured at Fair Value as at June 30, 2020 | Category | Level 1 (RMB million) | Level 2 (RMB million) | Level 3 (RMB million) | Total (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Notes receivable | – | 2,803 | – | 2,803 | | Equity investments designated at FVTOCI | 20,564 | – | 3,674 | 24,238 | | Financial assets at FVTPL | 3,363 | – | 7,235 | 10,598 | | Derivative financial instruments | – | 12 | 753 | 765 | | Total | 23,927 | 2,815 | 11,562 | 38,304 | - Level 3 fair value measurements are determined using the discounted cash flow method, with unobservable inputs being the weighted average cost of capital and long-term revenue growth rate[255] - During the six months ended June 30, 2020, there were no transfers of fair value measurements between Level 1 and Level 2 and no transfers into or out of Level 3 for both financial assets and financial liabilities[262] Capital Risk Management The company manages capital to ensure continuous operation and shareholder returns, monitoring its capital structure through a gearing ratio, which rose to 50.6% as of June 30, 2020 - The company's capital management objectives are to safeguard its ability to continue as a going concern, provide returns for shareholders, and maintain an optimal capital structure to reduce the cost of capital[267] - The company monitors capital using a gearing ratio, which is calculated as net debt divided by total capital[267] Capital Risk Management Indicators | Indicator | 2020-06-30 (RMB million) | 2019-12-31 (RMB million) | | :--- | :--- | :--- | | Total borrowings | 435,887 | 341,427 | | Less: Cash and cash equivalents | (120,873) | (118,908) | | Net debt | 315,014 | 222,519 | | Total equity | 307,234 | 296,410 | | Total capital | 622,248 | 518,929 | | Gearing ratio | 50.6% | 42.9% | - The gearing ratio was 50.6% as of June 30, 2020, an increase of 7.7% from year-end 2019[268] Events After the Reporting Period After the reporting period, the Board approved the full redemption of RMB 14.5 billion in preference shares, with the first tranche of RMB 9 billion redeemed on August 26, 2020 - The Board of Directors has approved a proposal for the full redemption of the RMB 14.5 billion preference shares issued non-publicly in 2015[269] - The first tranche of preference shares with a face value of RMB 9 billion was redeemed on August 26, 2020, at a redemption price of RMB 9.459 billion, including the principal amount and current period dividends[269] Approval of Interim Condensed Consolidated Financial Information The interim condensed consolidated financial information for the six months ended June 30, 2020, was approved for issue by the Board of Directors on August 28, 2020 - The interim condensed consolidated financial information was approved for issue by the Board of Directors on August 28, 2020[270] Other Information This section provides supplementary information, including securities transactions, director and shareholder interests, employee details, corporate governance compliance, and details of connected transactions Purchase, Sale or Redemption of Securities In H1 2020, the company repurchased 9,024,000 H shares for approximately HK$44.19 million and approved the redemption of RMB 14.5 billion in preference shares Details of H Share Repurchases in H1 2020 | Month | Number of H Shares Repurchased | Highest Price Paid per H Share (HK$) | Lowest Price Paid per H Share (HK$) | Total Consideration (HK$) | | :--- | :--- | :--- | :--- | :--- | | 05/2020 | 5,000,000 | 4.93 | 4.77 | 24,206,700 | | 06/2020 | 4,024,000 | 4.99 | 4.94 | 19,983,645 | | Total | 9,024,000 | / | / | 44,190,345 | - The Board of Directors has approved a proposal for the full redemption of the RMB 14.5 billion preference shares issued non-publicly in 2015, with the first tranche of RMB 9 billion redeemed on August 26, 2020[273] [Directors', Supervisors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=98&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%