Financial Performance - The company reported revenue of RMB 881.83 million for the six months ended June 30, 2021, an increase of 40.06% compared to the same period in 2020[5]. - The pre-tax profit was RMB 156.96 million, up 29.22% year-on-year[5]. - Profit attributable to equity holders was RMB 117.45 million, reflecting a growth of 31.12% compared to 2020[5]. - For the six months ended June 30, 2021, the group's revenue was RMB 88,182.52 million, an increase of 40.06% compared to RMB 62,959.56 million for the same period in 2020[44]. - The heating business revenue for the same period was RMB 84,339.42 million, up 51.81% from RMB 55,555.79 million in 2020, primarily due to the consolidation of Yatai Thermal and Xixing Energy[44]. - Other income and net other gains for the six months ended June 30, 2021, amounted to RMB 1,460.73 million, a 76.09% increase from RMB 829.52 million in 2020[51]. - The group's gross profit for the six months ended June 30, 2021, was RMB 209.97 million, an increase of 37.20% compared to RMB 153.04 million in the same period of 2020[63]. - The net profit for the period was RMB 117.45 million, reflecting a 31.12% increase from RMB 89.58 million in the same period last year[66]. - The total comprehensive income for the first half of 2021 reached RMB 117,451,614.44, a significant increase from RMB 89,575,243.99 in the same period of 2020, representing a growth of approximately 31.1%[138]. Customer and Service Expansion - The number of heating customers increased to 505,788, a rise of 45.10% from 348,570 in 2020[9]. - The total heating area served reached 60.2 million square meters, an increase of 40.88% from 42.73 million square meters in 2020[9]. - Heating business revenue was RMB 843.39 million, up 51.81% from RMB 555.56 million in the same period last year[9]. - Xixing Energy's heating area reached 3.46 million square meters with a total of 30,829 customers, including 27,921 residential users and 2,908 non-residential users, generating a total heat output of 0.61 million GJ in the first half of 2021[24]. - Yatai Heating's heating area was 16.47 million square meters with 154,507 customers, including 135,937 residential users and 18,570 non-residential users, producing a total heat output of 3.79 million GJ in the first half of 2021[24]. Cost and Expenditure - Operating costs for the group were RMB 67,185.99 million, reflecting a 40.98% increase from RMB 47,656.00 million in the previous year[52]. - The cost of heating business was RMB 63,947.89 million, which is a 54.07% increase from RMB 41,505.13 million in 2020[52]. - The purchase cost for heating was RMB 39,005.23 million, up 54.18% from RMB 25,297.70 million in the same period last year[58]. - The maintenance and repair costs for the group were RMB 2,191.14 million, a 7.27% increase from RMB 2,042.59 million in 2020[61]. - Capital expenditures for the six months ended June 30, 2021, were RMB 70.71 million, a significant increase of 857.62% from RMB 7.38 million in 2020[66]. Research and Development - The company plans to continue investing in technology research and development to enhance heating service levels and efficiency[9]. - The company established a smart heating network inspection system in collaboration with Jilin University, aiming to improve leak detection accuracy by over 20%[33]. - The company obtained 2 utility model patents and 24 software copyrights in the first half of 2021, enhancing its technological capabilities[38]. - Research and development expenses for the first half of 2021 were RMB 898,082.67, indicating ongoing investment in innovation[133]. Governance and Compliance - The company has established a modern corporate governance structure to enhance shareholder value and accountability, adhering to the Corporate Governance Code[80]. - The audit committee has reviewed and confirmed the interim financial results for the six months ending June 30, 2021, prepared in accordance with Chinese accounting standards[89]. - The remuneration committee has held two meetings to review the remuneration policies and structures for directors and senior management during the reporting period[90]. - The nomination committee has evaluated the board structure and diversity, as well as the independence of independent non-executive directors[93]. Financial Position and Assets - As of June 30, 2021, the company's total assets amounted to RMB 1,952.7 million, a decrease from RMB 3,230.4 million as of December 31, 2020[124]. - The company's current assets totaled RMB 663.9 million, down from RMB 1,876.8 million in the previous year[124]. - The group's total equity as of June 30, 2021, was RMB 949.78 million, an increase of RMB 71.63 million compared to December 31, 2020[68]. - The total liabilities reported were 840,451,077.37 RMB, which the company is managing effectively[149]. Shareholder and Capital Structure - As of June 30, 2021, the total share capital of the company was 466,700,000 shares, consisting of 350,000,000 domestic shares and 116,700,000 H shares, with a par value of RMB 1.00 per share[97]. - The board of directors did not recommend the distribution of an interim dividend for the six months ended June 30, 2021[98]. - The company raised approximately HKD 274.2 million through the global offering of H shares at HKD 2.35 per share, with a net amount of approximately HKD 220.5 million available for use[114]. - The company has not issued any convertible securities, options, or warrants during the reporting period, indicating a stable capital structure[100]. Taxation and Compliance - The company benefits from a reduced corporate income tax rate of 15% due to its status as a high-tech enterprise, valid for three years from September 2019[184]. - The company has a tax rate of 25% for corporate income tax, with a reduced rate of 15% applicable to high-tech enterprises[184]. - The value-added tax rates applicable to the company include 13% for domestic sales and 9% for real estate leasing services[181]. Accounts Receivable and Bad Debts - The company reported accounts receivable of RMB 286.31 million as of June 30, 2021, a decrease of 7.3% from RMB 308.83 million as of December 31, 2020[191]. - The provision for bad debts increased to RMB 53.16 million, representing 18.57% of total accounts receivable as of June 30, 2021[191]. - The company's accounts receivable aging analysis shows that 22.50% of receivables are from heating services, with a provision for bad debts of 20.61%[191]. - The total accounts receivable amounted to 308,826,241.60, with a provision for bad debts of 41,731,225.64, resulting in a net value of 267,095,015.96[193].
春城热力(01853) - 2021 - 中期财报