青建国际(01240) - 2024 - 中期财报

Company and Financial Overview Company Information This chapter provides fundamental corporate details of CNQC International Holdings Limited, including its board, committees, and professional advisors - The company's Chairman is Mr. Wang Congyuan, CEO is Mr. Li Jun, and Co-CEO is Mr. Du Dexiang[12] - The company's auditor is Deloitte Touche Tohmatsu[13] Review Report Deloitte Touche Tohmatsu has reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2024, concluding that nothing indicates the statements are not prepared in all material respects in accordance with HKAS 34 'Interim Financial Reporting' - Auditor Deloitte issued an unmodified review conclusion on these interim financial statements[17] - The scope of a review is significantly narrower than an audit, thus no audit opinion is expressed, and comparative figures for the corresponding period in 2023 were not reviewed[15][16] Interim Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the Group returned to profitability with total revenue increasing by 15.5% to HKD 4.88 billion, gross profit surging by 258% to HKD 280 million, and a net profit of HKD 29.63 million reversing a prior-year loss of HKD 138 million Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD Thousands) | Metric (HKD Thousands) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 4,883,569 | 4,228,508 | +15.5% | | Gross Profit | 280,681 | 78,413 | +258.0% | | Operating Profit/(Loss) | 204,316 | (15,097) | Turned to Profit | | Profit/(Loss) for the Period | 29,628 | (138,122) | Turned to Profit | | Profit/(Loss) Attributable to Owners of the Company | 23,831 | (147,263) | Turned to Profit | | Basic Earnings/(Loss) Per Share (HKD) | 0.014 | (0.090) | Turned to Profit | Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets decreased to HKD 10.41 billion from HKD 11.12 billion at year-end 2023, with total liabilities falling to HKD 7.56 billion primarily due to reduced current borrowings, while total equity slightly increased to HKD 2.85 billion Consolidated Statement of Financial Position (HKD Thousands) | Metric (HKD Thousands) | As at June 30, 2024 (Unaudited) | As at Dec 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 10,410,841 | 11,121,372 | -6.4% | | Non-current Assets | 2,737,401 | 2,827,771 | -3.2% | | Current Assets | 7,673,440 | 8,293,601 | -7.5% | | Total Liabilities | 7,558,144 | 8,294,410 | -8.9% | | Non-current Liabilities | 2,395,029 | 1,242,017 | +92.8% | | Current Liabilities | 5,163,115 | 7,052,393 | -26.8% | | Total Equity | 2,852,697 | 2,826,962 | +0.9% | Consolidated Statement of Changes in Equity For the six months ended June 30, 2024, equity attributable to owners of the company slightly increased from HKD 2.379 billion to HKD 2.383 billion, primarily driven by a HKD 23.83 million profit for the period, partially offset by HKD 19.82 million in exchange differences - Total equity attributable to owners of the company slightly increased from HKD 2.379 billion at the beginning of 2024 to HKD 2.383 billion by the end of June[24] - The change in equity was primarily influenced by the combined effect of profit for the period (+HKD 23.83 million) and exchange differences (-HKD 19.82 million)[24] Consolidated Statement of Cash Flows During the reporting period, the Group's net cash and cash equivalents decreased by HKD 661 million, with operating activities generating a net cash inflow of HKD 116 million (a significant improvement from a HKD 370 million outflow), while investing activities used HKD 150 million and financing activities used HKD 627 million due to higher bank loan repayments Consolidated Statement of Cash Flows (HKD Thousands) | Cash Flow Item (HKD Thousands) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 116,480 | (369,958) | | Net Cash (Used in) Investing Activities | (150,174) | 343,104 | | Net Cash Used in Financing Activities | (627,025) | (359,815) | | Net Decrease in Cash and Cash Equivalents | (660,719) | (386,669) | | Cash and Cash Equivalents at End of Period | 932,694 | 1,119,320 | Notes to the Financial Statements Note 6 Segment Information The Group operates four segments, with 'Construction - Singapore & Southeast Asia' significantly increasing revenue and adjusted segment profit, driving overall performance improvement, while 'Property Development - Singapore & Southeast Asia' also contributed substantial profit, and 'Foundations and Building - Hong Kong & Macau' maintained profitability despite a slight revenue decrease Segment Performance (HKD Thousands) | Segment (HKD Thousands) | H1 2024 Revenue | H1 2023 Revenue | H1 2024 Adjusted Segment Profit/(Loss) | | :--- | :--- | :--- | :--- | | Foundations and Building - Hong Kong & Macau | 1,478,610 | 1,543,822 | 35,901 | | Property Development - Hong Kong | - | - | (2) | | Construction - Singapore & Southeast Asia | 2,770,578 | 1,735,537 | 62,654 | | Property Development - Singapore & Southeast Asia | 634,381 | 949,149 | 120,833 | | Total | 4,883,569 | 4,228,508 | 219,386 | Note 18 Borrowings As of June 30, 2024, the Group's total borrowings decreased to HKD 4.335 billion from HKD 5.049 billion at year-end 2023, reflecting a debt structure adjustment with current borrowings significantly reduced to HKD 2.135 billion while non-current borrowings increased to HKD 2.200 billion, with most being secured bank loans Borrowings Classification (HKD Thousands) | Loan Classification (HKD Thousands) | As at June 30, 2024 | As at Dec 31, 2023 | | :--- | :--- | :--- | | Current Borrowings | 2,134,998 | 3,979,159 | | Non-current Borrowings | 2,200,264 | 1,069,359 | | Total Borrowings | 4,335,262 | 5,048,518 | - Total secured bank borrowings amounted to HKD 1.55 billion, collateralized by properties held for sale, property, plant and equipment, shares in subsidiaries, and bank deposits[104][105] Note 25 Disposal of a Subsidiary During the reporting period, the Group disposed of its entire 66.7% equity interest in CNQC Smart Manufacturing (Hong Kong) Limited and its subsidiaries (CIC Group), which are engaged in modular integrated construction, resulting in a gain of HKD 43.225 million for the Group - The Group disposed of its entire 66.7% equity interest in CIC Group, recording a gain on disposal of HKD 43,225 thousand[118][120] - This transaction resulted in a net cash outflow of HKD 7,387 thousand (due to cash and cash equivalents disposed of)[120] Management Discussion and Analysis Business Review During the reporting period, the Group's construction and property development businesses advanced, with strong performance in Singapore and Southeast Asia construction, significant new contracts, successful sales in Singapore property projects, new land acquisitions, and ongoing progress in pharmaceutical fund investments - Construction Business: - Singapore and Southeast Asia: Secured 3 public housing and 2 private projects with a total contract value of approximately HKD 5.07 billion during the period, with outstanding contracts totaling approximately HKD 12.37 billion at period-end[123] - Hong Kong and Macau: Undertook 6 new projects with a total contract value of approximately HKD 1.61 billion, with outstanding contracts totaling HKD 5.38 billion at period-end[123] - Property Development Business: - Singapore projects achieved strong sales progress, with Forett At Bukit Timah reaching 100% sales rate and The Reef at King's Dock reaching 99%[124][131] - Successfully bid for land parcels in Singapore's Media Circle and Pasir Ris, expanding land reserves[132] - Pharmaceutical Fund Investment: All four new drugs invested have obtained clinical Phase I trial approvals, but research and development procedures have been delayed due to unfavorable market conditions[136][139] Financial Review The Group achieved significant financial improvement and returned to profitability during the period, with total revenue growing 15.5% to HKD 4.88 billion driven by strong Singapore construction business, gross margin increasing from 1.9% to 5.7% due to efficient cost management, and reduced finance costs contributing to a net profit of HKD 29.6 million - Total revenue increased by 15.5% year-on-year, primarily driven by a significant increase in Singapore construction revenue[140] - Gross profit margin improved from 1.9% to 5.7%, mainly due to efficient cost management in Singapore construction projects[141] - The Group turned from a loss of HKD 138 million in the prior period to a net profit of HKD 29.6 million, primarily attributable to improved gross profit margin and reduced finance costs[145] Outlook Management anticipates favorable prospects in key markets despite a complex global economic environment, with sustained public sector construction demand in Singapore, growth opportunities in Malaysia from data center and industrial plant demand, and Hong Kong's public housing and Northern Metropolis initiatives providing construction growth, where the Group will leverage its MiC experience to focus on public housing and maintain competitive advantages - Singapore: The economy is expected to develop steadily, with public housing and infrastructure projects contributing most of the construction demand[146] - Malaysia: The data center market and industrial plant demand present unprecedented development opportunities[147] - Hong Kong: Government public housing initiatives and the promotion of Modular Integrated Construction (MiC) offer development opportunities, with the Group focusing on the public housing construction market[148] Liquidity and Capital Structure The Group maintains a prudent financial policy, holding approximately HKD 900 million in cash and cash equivalents as of June 30, 2024, with a stable gearing ratio of approximately 54.3% (net debt / (total equity + net debt)), largely consistent with 54.9% at year-end 2023, primarily funding operations through bank borrowings and operating cash flow Liquidity and Capital Structure Metrics | Metric | As at June 30, 2024 | As at Dec 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | Approx. HKD 900 million | Approx. HKD 1.6 billion | | Gearing Ratio | Approx. 54.3% | Approx. 54.9% | - The Group's total interest-bearing borrowings decreased from approximately HKD 5.1 billion at year-end 2023 to approximately HKD 4.4 billion at the end of the reporting period[149] Other Disclosures Disclosure of Interests This section details the shareholdings of directors, chief executives, and substantial shareholders, with Dr. Du Bo deemed to hold approximately 74.08% of the company's issued share capital through controlled entities, making him the controlling shareholder, while other executive directors also hold varying interests - Dr. Du Bo is deemed to have an interest in 1,124,759,528 shares, representing approximately 74.08% of the company's issued share capital, making him the controlling shareholder[162][164] - Guoqing Holdings Limited and its associated companies constitute a major shareholder group of the company, holding substantial shares directly or indirectly[166][167] Corporate Governance and Other Information During the reporting period, the company complied with all applicable Corporate Governance Code provisions, with the Audit Committee reviewing the interim financial report, and financial assistance to affiliated companies totaling approximately HKD 2.764 billion disclosed in accordance with Listing Rule 13.22 - The company complied with all applicable Corporate Governance Code provisions during the reporting period[169] - Financial assistance totaling approximately HKD 2.764 billion provided to affiliated companies was disclosed in accordance with Listing Rule 13.22[168] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[159]