绿色动力环保(01330) - 2024 - 中期财报

Definitions Company Profile and Key Financial Indicators Corporate Information This section provides basic information about Green Dynamics Environmental Group Co, Ltd, including its name, legal representative, contact details, addresses, website, and stock listing information - The company's shares are dual-listed on the Shanghai Stock Exchange (A-share, code 601330) and the Hong Kong Stock Exchange (H-share, code 1330)[15] Key Accounting Data and Financial Indicators In H1 2024, revenue and net profit declined due to reduced construction activities, while operating cash flow significantly improved from increased subsidy collections and lower construction spending Key Accounting Data for H1 2024 | Key Accounting Data | Current Period (Jan-Jun) | Prior-Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,660,506,740.32 Yuan | 2,141,513,147.31 Yuan | -22.46% | | Net Profit Attributable to Shareholders | 303,026,018.30 Yuan | 364,057,245.61 Yuan | -16.76% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 301,480,353.86 Yuan | 358,887,623.29 Yuan | -16.00% | | Net Cash Flow from Operating Activities | 543,371,427.14 Yuan | 287,718,294.22 Yuan | 88.86% | | Asset Status | End of Current Period | End of Prior Year | YoY Change (%) | | Net Assets Attributable to Shareholders | 7,913,311,756.42 Yuan | 7,807,439,716.26 Yuan | 1.36% | | Total Assets | 22,515,212,843.20 Yuan | 22,537,265,642.95 Yuan | -0.10% | Key Financial Indicators for H1 2024 | Key Financial Indicators | Current Period (Jan-Jun) | Prior-Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.22 | 0.26 | -15.38% | | Diluted Earnings Per Share (Yuan/Share) | 0.21 | 0.24 | -12.50% | | Weighted Average Return on Equity (%) | 3.80 | 4.84 | Decrease of 1.04 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 3.79 | 4.77 | Decrease of 0.98 percentage points | - During the reporting period, total non-recurring gains and losses amounted to 1.5457 million yuan, primarily from government grants and other non-operating income and expenses[21] Management Discussion and Analysis Industry and Core Business Overview The company is a leading waste-to-energy enterprise in China operating under a BOT model, with the industry now entering a stable phase supported by new green certificate trading mechanisms - The company's core business is waste-to-energy generation under a BOT concession model, typically for 25 to 30 years; as of June 30, 2024, it operated 37 projects with a daily processing capacity of 40,300 tons and an installed capacity of 857MW, ranking among the top in the industry[23][24] - The waste-to-energy industry has entered a stable development phase after meeting its "14th Five-Year Plan" targets, with green certificate trading providing a new revenue stream as national subsidies are phased out[27][28] - The industry benefits from preferential policies like benchmark electricity tariffs and tax incentives, but also faces the challenge of declining national subsidies[29] Core Competency Analysis The company's core competencies remain strong, centered on its extensive national market presence, deep industry experience, proprietary advanced technologies, and a seasoned management team - The company's market network covers over 20 provinces and municipalities, with a strategic focus on the Yangtze River Delta, Pearl River Delta, and Bohai Rim regions, which helps mitigate regional risks[31] - The company's proprietary "multi-drive reverse-push mechanical grate furnace" is a leading core technology in the industry, protected by a national invention patent and promoted as a key technology during the "11th Five-Year Plan" period[33] - The company possesses an experienced management team with core members having collaborated for nearly two decades, ensuring deep industry insight and strong operational and market development capabilities[34] Discussion and Analysis of Operations In H1 2024, revenue and net profit declined due to fewer construction projects, but the company's core operations remained robust with record-high performance indicators and continued efficiency improvements Key Financial Performance for H1 2024 | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 1.661 billion yuan | -22.46% | | Net Profit Attributable to Shareholders | 303 million yuan | -16.76% | | Total Assets | 22.515 billion yuan | - | | Equity Attributable to Shareholders | 7.913 billion yuan | - | Key Operational Data for H1 2024 | Indicator | Volume | YoY Growth | | :--- | :--- | :--- | | Total Municipal Solid Waste Processed | 7.0073 million tons | 11.27% | | Total Power Generation | 2,498.69 million kWh | 12.85% | | On-grid Power Generation | 2,072.02 million kWh | 12.90% | | Total Steam Supply | 239,000 tons | 22.51% | | Operating Revenue | 1.440 billion yuan | 10.66% | - The company enhanced operational efficiency through multiple initiatives, including expanding synergistic waste treatment, securing new steam supply contracts, completing its first green certificate transaction, and leveraging centralized procurement to reduce costs[39] - The company advanced its technological and digital capabilities through collaborations like the smart power plant project with Alibaba Cloud, development of new sludge injection processes, and strengthening industry-academia-research partnerships[40] - Looking ahead, the waste-to-energy market is expected to expand into county-level regions, with green certificate trading, carbon markets, and improved waste treatment fee mechanisms offering new revenue growth opportunities[41][42] Core Business Analysis Analysis of financial statement variances reveals that declines in revenue and costs were driven by reduced construction activities, while operating cash flow grew substantially due to improved subsidy collection Analysis of Major Financial Statement Items | Item | Current Period (Yuan) | Prior-Year Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,660,506,740.32 | 2,141,513,147.31 | -22.46 | Decrease in construction projects led to a 619 million yuan drop in construction revenue | | Operating Costs | 919,438,857.60 | 1,371,722,378.79 | -32.97 | Construction costs decreased by 568 million yuan | | Net Cash Flow from Operating Activities | 543,371,427.14 | 287,718,294.22 | 88.86 | Increased collection of national subsidies and reduced spending on PPP project construction | | Net Cash Flow from Investing Activities | -205,918,818.39 | -413,739,621.84 | N/A | Reduced investment in construction | | Net Cash Flow from Financing Activities | -352,743,054.33 | -598,828,719.83 | N/A | Increased borrowings were offset by higher debt and interest repayments | Analysis of Assets and Liabilities As of June 30, 2024, the company's total assets were 22.515 billion yuan and total liabilities were 14.114 billion yuan, with a debt-to-asset ratio of 62.69% and restricted assets of 11.113 billion yuan Status of Major Restricted Assets (Period-End) | Item | Book Value at Period-End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,039,180.00 | For issuing performance bonds | | Other Non-current Assets | 3,990,797,573.58 | Pledged for loans | | Intangible Assets | 5,104,550,440.42 | Pledged for loans | | Accounts Receivable | 1,723,763,980.12 | Pledged for loans | | Contract Assets | 291,976,946.71 | Pledged for loans | | Total | 11,113,128,120.83 | - | Financial Review (as required by the Stock Exchange of Hong Kong) The company's debt-to-asset ratio was 62.69%, with a revenue decline driven by a sharp drop in construction income, while gross margin improved significantly due to a favorable revenue mix Revenue Composition Analysis for H1 2024 | Revenue Type | H1 2024 (Yuan) | H1 2023 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Construction Revenue | 22,954,459.10 | 641,720,109.79 | -96.42% | | Operating Revenue | 1,440,317,386.59 | 1,301,588,175.06 | +10.66% | | Interest Income | 197,234,894.63 | 198,204,862.46 | -0.49% | | Total Operating Revenue | 1,660,506,740.32 | 2,141,513,147.31 | -22.46% | - Gross profit for the period was 741 million yuan, a year-on-year decrease of 3.73%; the gross profit margin was 44.63%, a significant increase from 35.95% in the prior year, primarily due to the reduced proportion of lower-margin construction revenue[53] - As of June 30, 2024, the company's total outstanding borrowings were approximately 9.71 billion yuan, with 3.525 billion yuan of its 18.379 billion yuan total credit facility remaining unused; most borrowings are at floating interest rates[61] Analysis of Major Subsidiaries and Investees This section analyzes the performance of five key subsidiaries, all of which are profitable waste treatment and power generation entities contributing significantly to the company's total assets Operating Performance of Major Subsidiaries in H1 2024 (Unit: 10,000 Yuan) | Company Name | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Tongzhou Company | 143,178.99 | 55,701.89 | 9,833.08 | 3,852.05 | 2,870.17 | | Shantou Company | 115,296.07 | 43,826.89 | 10,245.89 | 4,630.35 | 4,000.59 | | Haining Expansion Co | 114,401.44 | 56,087.26 | 8,679.94 | 4,176.15 | 4,125.60 | | Huizhou Phase II Co | 146,365.21 | 72,448.71 | 13,906.65 | 6,896.62 | 6,623.05 | | Wuhan Company | 124,853.55 | 44,871.33 | 11,093.07 | 4,002.41 | 3,803.85 | Potential Risks The company faces risks from policy changes in renewable energy subsidies, stricter environmental regulations, public opposition (NIMBY effect), and operational challenges like project delays and receivables collection - Changes in national renewable energy subsidy policies represent a core risk, as the phase-out of subsidies could adversely affect profitability and cash flow; mitigation strategies include expanding heat supply services and participating in green certificate trading[69] - The company faces risks from public opposition due to the "Not In My Back Yard" (NIMBY) effect, which can complicate project site selection, extend development timelines, and increase costs[70] - As business expands, extended settlement cycles for national subsidies and local waste treatment fees may lead to growing accounts receivable, which, if not collected promptly, could negatively impact cash flow and performance[73] Corporate Governance Changes in Directors, Supervisors, and Senior Management The company experienced several changes in its board and senior management during the period, including retirements and resignations, with new appointments made for key positions Changes in Directors and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | Zhong Xia | General Manager, Executive Director | Resigned | | Fu Jie | Independent Director | Resigned | | Ouyang Jiejiao | Independent Director | Elected | | Yue Peng | Non-executive Director | Resigned | | Luo Zhaoguo | Supervisor | Resigned | | Zhao Zhixiong | Non-executive Director | Elected | | Tian Yingying | Supervisor | Elected | Profit Distribution Proposal The board proposes a cash dividend of RMB 0.1 per share (pre-tax) for the first half of 2024, pending shareholder approval H1 2024 Profit Distribution Proposal | Item | Details | | :--- | :--- | | Distribution or Capitalization | Yes | | Cash Dividend per 10 Shares (Yuan) (pre-tax) | 1 | | Bonus Shares per 10 Shares | 0 | | Capitalization Shares per 10 Shares | 0 | Compliance with the Corporate Governance Code The company complied with most of the Corporate Governance Code, with a deviation noted where the Chairman also serves as the acting General Manager to ensure operational continuity - The company deviated from Code Provision C.2.1, which requires the roles of chairman and chief executive to be separate, as Chairman Mr. Qiao Dewei has also served as the acting General Manager since February 8, 2024, an arrangement the board deems appropriate for stability[83] Environment and Social Responsibility Environmental Information The company, with its main subsidiaries listed as key pollutant-discharging units, details its environmental protection measures and confirms compliance with all standards during the reporting period - Key subsidiaries are designated as major pollutant-discharging units, with primary pollutants including SO2, NOx, dust, and COD; all emissions complied with national and local standards during the period, with no instances of non-compliance[84][85][89] Estimated Total Emissions of Key Pollutants from Major Discharging Units (H1 2024) | Pollutant Name | Actual Emissions (tons) | Emission Limit (tons/year) | | :--- | :--- | :--- | | Sulfur Dioxide | 136.63 | 880.37 | | Nitrogen Oxides | 565.73 | 2,456.38 | | Particulate Matter (Dust) | 16.39 | 251.41 | | COD | 1.837 | 16.537 | - All projects are equipped with comprehensive pollution control facilities, including advanced flue gas treatment systems and wastewater recycling processes, which operated normally throughout the reporting period[91] - The company's waste-to-energy business directly contributes to carbon reduction by replacing landfill disposal, which reduces methane emissions, and substituting fossil fuel-based power generation[98] Significant Matters Material Related-Party Transactions Material related-party transactions involved service procurement from an affiliate for project promotion and financial assistance from the controlling shareholder, which has been fully repaid - The company engaged in a framework agreement with affiliate Shenzhen Crystal Digital Technology for promotional services, with transactions totaling 0.4576 million yuan in H1 2024 against a yearly cap of 20 million yuan[103] - Financial assistance previously provided by the controlling shareholder, Beijing State-owned Assets Management Co, Ltd, and its subsidiaries has been fully repaid as of the end of the reporting period[105] Material Contracts and Guarantees The company had no material contracts for custody or leasing, while total guarantees for subsidiaries amounted to 7.42 billion yuan, representing 93.80% of the company's net assets Summary of Company Guarantees (as of the end of the reporting period) | Guarantee Item | Amount (Yuan) | | :--- | :--- | | Total Outstanding Guarantees for Subsidiaries (B) | 7,422,857,703.52 | | Total Guarantees (A+B) | 7,422,857,703.52 | | Total Guarantees as a Percentage of Net Assets | 93.80% | | Guarantees for Subsidiaries with Debt-to-Asset Ratio >70% (D) | 1,428,147,240.00 | | Portion of Total Guarantees Exceeding 50% of Net Assets (E) | 3,466,201,825.31 | Progress on the Use of Raised Funds As of the period end, 93.15% of the 2.345 billion yuan raised from convertible bonds in 2022 has been utilized, with 138 million yuan of surplus funds reallocated to other projects Overall Utilization of Convertible Bond Proceeds (Unit: 10,000 Yuan) | Item | Amount | | :--- | :--- | | Net Proceeds Raised | 234,476.64 | | Total Committed Investment | 234,476.64 | | Cumulative Investment as of Period-End | 218,410.35 | | Unused Amount as of Period-End | 26,402.46 | | Cumulative Investment Progress | 93.15% | - To improve capital efficiency, the company reallocated 138 million yuan in surplus funds from completed projects to the Wuhan Phase II and Huludao waste-to-energy projects for finalization and rectification work[115][116] Changes in Share Capital and Shareholders Changes in Share Capital The company's total share capital increased slightly due to the conversion of "GDT-CB" convertible bonds, adding 1,144 A-shares - During the reporting period, the company's total share capital increased from 1,393,450,734 to 1,393,451,878 shares due to the conversion of 1,144 A-shares from the "GDT-CB" convertible bonds[118][119] Shareholder Information As of the period end, the company had 41,925 shareholders, with the top two being Beijing State-owned Assets Management Co, Ltd (42.63%) and HKSCC Nominees Limited (27.23%) Top Ten Shareholders' Holdings (as of the end of the reporting period) | Shareholder Name | Number of Shares | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Beijing State-owned Assets Management Co, Ltd | 594,085,618 | 42.63 | State-owned legal person | | HKSCC NOMINEES LIMITED | 379,460,000 | 27.23 | Overseas legal person | | China Three Gorges Capital Holdings Co, Ltd | 84,265,896 | 6.05 | State-owned legal person | | Beijing State-owned Assets (Hong Kong) Co, Ltd | 24,859,792 | 1.78 | Overseas legal person | | Beijing Huitai Hengrui Investment Co, Ltd | 16,890,707 | 1.21 | Domestic non-state-owned legal person | - The controlling shareholder, Beijing State-owned Assets Management Co, Ltd, and its wholly-owned subsidiary, Beijing State-owned Assets (Hong Kong) Co, Ltd, are related parties and collectively hold approximately 44.41% of the company's shares[123] Human Resources and Policies The group employed 3,370 people as of June 30, 2024, supported by a competitive compensation system and a comprehensive employee training and development framework - As of June 30, 2024, the group had a total of 3,370 employees[129] Information on Preference Shares Not Applicable The company had no preference shares during the reporting period Information on Bonds Information on Convertible Bonds The company's 2.36 billion yuan "GDT-CB" convertible bond's conversion price was adjusted due to dividend distribution, and the board decided against a downward revision despite meeting the criteria - The conversion price of the 2.36 billion yuan "GDT-CB" A-share convertible bond (code "113054"), issued in February 2022, was adjusted from 9.60 yuan/share to 9.45 yuan/share on June 26, 2024, due to the 2023 dividend payment[132] "GDT-CB" Conversion Status during the Reporting Period | Item | Amount/Quantity | | :--- | :--- | | Amount Converted during Period (Yuan) | 11,000 | | Shares Converted during Period | 1,144 | | Cumulative Shares Converted | 11,878 | | Outstanding Amount (Yuan) | 2,359,884,000 | | Unconverted Portion of Total Issuance (%) | 99.9951 | - China Chengxin International maintained the company's corporate credit rating at "AA+" with a stable outlook and the "GDT-CB" bond rating at "AA+" in its May 2024 report[139] - Although the company's stock price triggered the downward revision clause for the conversion price, the board decided not to propose a downward revision between September 6, 2023, and September 5, 2024[141] Financial Report Consolidated Balance Sheet As of June 30, 2024, the company's total assets stood at 22.52 billion yuan, with total liabilities at 14.11 billion yuan and equity attributable to parent company shareholders at 7.91 billion yuan Consolidated Balance Sheet - Key Items (Unit: Yuan) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Assets | | | | Total Current Assets | 4,168,970,905.64 | 3,863,574,113.53 | | Total Non-current Assets | 18,346,241,937.56 | 18,673,691,529.42 | | Total Assets | 22,515,212,843.20 | 22,537,265,642.95 | | Liabilities and Equity | | | | Total Current Liabilities | 3,074,913,962.38 | 3,991,164,536.87 | | Total Non-current Liabilities | 11,039,186,594.42 | 10,272,144,211.14 | | Total Liabilities | 14,114,100,556.80 | 14,263,308,748.01 | | Equity Attributable to Parent Company | 7,913,311,756.42 | 7,807,439,716.26 | | Total Shareholders' Equity | 8,401,112,286.40 | 8,273,956,894.94 | Consolidated Income Statement In H1 2024, the company generated revenue of 1.66 billion yuan and net profit attributable to parent company shareholders of 303 million yuan, representing year-on-year declines of 22.46% and 16.76% respectively Consolidated Income Statement - Key Items (Unit: Yuan) | Item | Jan-Jun 2024 (Unaudited) | Jan-Jun 2023 (Unaudited) | | :--- | :--- | :--- | | Operating Revenue | 1,660,506,740.32 | 2,141,513,147.31 | | Less: Operating Costs | (919,438,857.60) | (1,371,722,378.79) | | Operating Profit | 390,013,727.65 | 434,249,599.86 | | Total Profit | 391,058,983.14 | 435,089,543.71 | | Net Profit | 323,733,601.98 | 380,095,083.50 | | Net Profit Attributable to Parent Company | 303,026,018.30 | 364,057,245.61 | | Basic Earnings Per Share (Yuan) | 0.22 | 0.26 | | Diluted Earnings Per Share (Yuan) | 0.21 | 0.24 | Consolidated Statement of Cash Flows The company's net cash flow from operating activities surged by 88.86% to 543 million yuan in H1 2024, driven by improved collections and reduced construction spending Consolidated Statement of Cash Flows - Key Items (Unit: Yuan) | Item | Jan-Jun 2024 (Unaudited) | Jan-Jun 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 543,371,427.14 | 287,718,294.22 | | Net Cash Used in Investing Activities | (205,918,818.39) | (413,739,621.84) | | Net Cash Used in Financing Activities | (352,743,054.33) | (598,828,719.83) | | Net Decrease in Cash and Cash Equivalents | (15,284,786.34) | (724,824,722.19) | | Cash and Cash Equivalents at End of Period | 1,017,250,170.59 | 1,139,958,571.40 |