泛亚环保(00556) - 2024 - 中期财报

Corporate Information Corporate Information This section outlines the company's basic registration, governance, and key personnel, including the recent CEO transition - Company senior management change: Mr. Guo Jiannan resigned as CEO on April 12, 2024, and was succeeded by Mr. Zhu Duke Li[4] Management Discussion and Analysis Business Review The company expanded into AI and Web 3.0 via Pan Asia USA, complementing its stable environmental business operations - Environmental Products and Equipment Segment: Completed 4 water treatment and 1 flue gas treatment projects in H1, achieving sales revenue of RMB 115.4 million; 3 projects remain with RMB 223.6 million uncompleted contract value[10] - New Business Expansion: Established Pan Asia USA, a non-wholly owned US subsidiary, to develop Web 3.0 and AI businesses, including a decentralized disaster recovery storage network and GPU computing power leasing agency services[10] Initial AI Business Revenue | Business Type | Revenue (USD) | | :--- | :--- | | Decentralized Disaster Recovery Storage Network | 11,000 | | GPU Computing Power Leasing Agency | 240,000 | Financial Review The company's H1 2024 financial performance was strong, with revenue growth and a substantial increase in profit attributable to owners Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue (RMB million) | 115.4 | 108.9 | +5.9% | | Gross Profit (RMB thousand) | 17,855 | - | +10.3% | | Gross Margin | 15.5% | 14.9% | +0.6pp | | Profit Attributable to Owners (RMB thousand) | 6,390 | 2,070 | +208.2% | | Basic and Diluted EPS (RMB cents) | 0.66 | 0.25 | +164% | - Revenue from AI businesses, including RMB 1.71 million in agency fees and RMB 75 thousand net income from decentralized disaster recovery storage solutions, is classified under "Net Other Income"[12] Prospects The Group plans to deepen its low-carbon economy and AI focus, enhancing environmental services and expanding Web 3.0 and GPU computing power businesses - The company proposes changing its Chinese name to "圖靈人工智能科技集團有限公司" and English name to "Turing AI Technologies Group Limited" to emphasize its commitment to AI and Web 3.0 development[16][17] - For Web 3.0 business, the company will collaborate with PowerMeta to build up to 28 disaster recovery nodes, with 14 nodes already deployed on the mainnet[15][17] - In early August 2024, Pan Asia USA signed an exclusive agency agreement with PowerMeta for GPU computing power leasing services in Southeast Asia and Australia[15][17] Liquidity and Financial Resources As of June 30, 2024, the Group maintains a robust financial position with ample liquidity, low leverage, and substantial cash reserves Financial Position Summary (As of June 30, 2024) | Indicator | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Total Assets | 1,330.7 | 1,292.7 | | Total Liabilities | 175.0 | 155.2 | | Total Equity | 1,155.7 | 1,137.5 | | Cash and Cash Equivalents | 1,248.9 | 1,235.8 | | Equity-to-Debt Ratio | 7.9% | 8.3% | - As of June 30, 2024, the Group pledged approximately RMB 23.72 million in cryptocurrency for joint operations[26] - The Group maintains a prudent financial policy, with most transactions, liabilities, and bank deposits denominated in RMB and HKD, holding no financial derivatives for hedging purposes[23][24] Other Information Corporate Governance and Compliance This section details the company's compliance and corporate governance practices, including adherence to securities trading codes and board meeting frequency - The company previously deviated from the corporate governance code requiring separation of Chairman and CEO roles, but compliance was achieved with the new CEO appointment on April 12, 2024[39] - The company deviated from the code requiring at least four annual board meetings, citing no necessity for quarterly meetings due to non-disclosure of quarterly results[39] Major Shareholder Holdings (As of June 30, 2024) | Shareholder Name | Number of Shares (Long Position) | Percentage of Issued Share Capital | | :--- | :--- | :--- | | Mr. Jiang Xin | 358,568,000 | 36.22% (Combined) | | Praise Fortune Limited | 356,568,000 | 36.02% | | China Sky Global Investment Limited | 250,000,000 | 25.25% | | Hongkong Jinggangshan International Co. Limited | 80,000,000 | 8.08% | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the company's profitability significantly improved, with a substantial increase in profit for the period Key Items from Statement of Profit or Loss (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 115,410 | 108,938 | | Gross Profit | 17,855 | 16,193 | | Profit Before Tax | 11,954 | 4,995 | | Profit for the Period | 7,058 | 2,073 | | Profit Attributable to Owners of the Company | 6,389 | 2,073 | | Total Comprehensive Income/(Loss) for the Period | 6,402 | (1,297) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the company's balance sheet is robust, with total assets and net assets steadily improving Key Items from Statement of Financial Position (RMB thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | ASSETS | | | | Non-current Assets | 29,170 | 4,362 | | Current Assets | 1,301,521 | 1,288,363 | | TOTAL ASSETS | 1,330,691 | 1,292,725 | | LIABILITIES | | | | Current Liabilities | 128,279 | 133,637 | | Non-current Liabilities | 46,711 | 21,595 | | TOTAL LIABILITIES | 174,990 | 155,232 | | NET ASSETS | 1,155,701 | 1,137,493 | | TOTAL EQUITY | 1,155,701 | 1,137,493 | Condensed Consolidated Statement of Changes in Equity During the reporting period, total equity increased, primarily driven by profit for the period and new share issuance - Total equity increased from RMB 1,137,493 thousand to RMB 1,155,701 thousand[50] - Key drivers for the equity increase include: profit for the period (RMB 6,389 thousand) and new share issuance (RMB 11,806 thousand)[50] Condensed Consolidated Statement of Cash Flows In H1 2024, the company's cash flow significantly improved, with operating activities generating a net inflow and increased cash equivalents Cash Flow Statement Summary (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 4,666 | (3,647) | | Net Cash from Investing Activities | 1,056 | 1,597 | | Net Cash from Financing Activities | 6,953 | 4,298 | | Net Increase in Cash and Cash Equivalents | 12,675 | 2,248 | | Cash and Cash Equivalents at End of Period | 1,248,889 | 1,204,941 | Notes to the Condensed Consolidated Interim Financial Statements 2. Basis of Preparation This section details the financial statements' preparation basis under HKAS 34, including new accounting policies for AI and cryptocurrency - Agency Fee Revenue: The Group recognizes agency fee revenue only after the introduced client signs an agreement and pays fees to the partner, PowerMeta[58] - Cryptocurrency Accounting Treatment: Held cryptocurrencies are treated as intangible assets with indefinite useful lives, measured at cost less accumulated impairment losses[64] - Cryptocurrency Borrowings: Cryptocurrencies borrowed from related parties are classified as "financial liabilities at fair value through profit or loss," with fair value changes recognized in current profit or loss[64][145] 3. Critical Accounting Judgements and Key Sources of Estimation Uncertainty This section outlines management's key accounting judgments, particularly for new businesses like cryptocurrency and decentralized storage solutions - Cryptocurrency Accounting Judgment: Given the absence of specific HKFRSs guidance for cryptocurrency, management judged to treat it as an indefinite-lived intangible asset using the cost model[88] - Cryptocurrency Mining Revenue Recognition Judgment: Lacking specific guidance, management exercised significant judgment in recognizing revenue from decentralized disaster recovery storage solutions (mining), measuring it based on the fair value of cryptocurrencies received[90] 4. Revenue and Segment Reporting During the reporting period, the Group's total revenue was entirely from the "Environmental Products and Equipment" segment in Mainland China Segment Revenue and Profit (For the six months ended June 30, 2024, RMB thousand) | Segment | Revenue | Profit (Adjusted EBITDA) | | :--- | :--- | :--- | | Environmental Products and Equipment | 115,410 | 17,941 | | Environmental Construction Services | 0 | 0 | | Total | 115,410 | 17,941 | - All revenue from external customers originated from China (place of registration)[105] 11. Cryptocurrencies As of June 30, 2024, the company reported Filecoins as a new asset, with a carrying value after impairment losses Changes in Cryptocurrency Carrying Value (RMB thousand) | Item | Amount | | :--- | :--- | | Cost | 30,747 | | Accumulated Impairment | (6,988) | | Exchange Differences | 33 | | Carrying Value (June 30, 2024) | 23,792 | - The company recognized an impairment loss of RMB 6.988 million due to Filecoins' market price being significantly below cost[128][130] - Approximately RMB 23.723 million in cryptocurrency (743,012 Filecoins) was pledged to the Mainnet network for 540-day joint operations supporting decentralized disaster recovery storage solutions[123][124] 18. Material Related Party Transactions The Group engaged in significant related party transactions, including agency fee income, cryptocurrency borrowings, and payables to its ultimate controlling party - Received agency fee income of RMB 1.708 million from related company PowerMeta[160] - Borrowed cryptocurrency from related company 3 Body, resulting in a RMB 25.927 million financial liability at fair value through profit or loss[162] Key Balances with Related Parties (RMB thousand) | Related Party | Item | June 30, 2024 | | :--- | :--- | :--- | | PowerMeta | Amounts Receivable from Related Companies | 1,453 | | Praise Fortune Limited | Amounts Payable to Ultimate Controlling Party | (70,005) | | 3 Body | Financial Liabilities at Fair Value Through Profit or Loss | (25,927) | 21. Events After the Reporting Period Post-reporting period, the company proposed a name change to "Turing AI Technologies Group Limited" and secured an exclusive GPU computing power agency agreement - On August 13, 2024, the Board proposed changing the company name from "Pan Asia Environmental Group Limited" to "Turing AI Technologies Group Limited"[174] - On August 5, 2024, a company subsidiary entered into an exclusive agency agreement with PowerMeta for GPU computing power leasing services in Southeast Asia and Australia[174]