远航港口(08502) - 2025 - 中期业绩

Report Statements and GEM Characteristics This section outlines disclaimers regarding the announcement's content and highlights the higher investment risks associated with the GEM market Disclaimer and GEM Market Risks Hong Kong Exchanges and the Stock Exchange are not responsible for this announcement's content, noting GEM's higher investment risks and potential for significant market volatility - Hong Kong Exchanges and the Stock Exchange are not responsible for the accuracy or completeness of this announcement's content and assume no liability for any losses arising from it[1] - The GEM market is positioned as a listing platform for small and medium-sized companies, which carry higher investment risks, and their securities may experience significant market volatility with no guarantee of high liquidity[3] Directors' Responsibility Statement The company's directors collectively and individually assume full responsibility for this announcement, confirming its accuracy, completeness, and absence of misleading information - The company's directors collectively and individually assume full responsibility for this announcement, confirming the information is accurate, complete, not misleading or fraudulent, and without omissions[4] Financial Highlights This section provides a concise overview of the company's key financial performance indicators for the period Financial Highlights Overview For the six months ended June 30, 2025, revenue decreased by 8.2% to RMB 80,368 '000, while profit attributable to owners declined significantly by 34.6% to RMB 20,490 '000 Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | -8.2 | | Profit for the period attributable to owners of the Company | 20,490 | 31,336 | -34.6 | | Basic earnings per share | RMB 2.56 cents | RMB 3.92 cents | -34.6 | Interim Results This section presents the unaudited condensed consolidated statements of comprehensive income and financial position for the interim period Unaudited Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group reported revenue of RMB 80,368 '000 and gross profit of RMB 48,669 '000, with profit attributable to owners at RMB 20,490 '000 Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | | Cost of services | (31,699) | (35,443) | | Gross profit | 48,669 | 52,110 | | Other income and gains, net | 5,675 | 9,097 | | Selling and distribution expenses | (227) | (591) | | Administrative expenses | (14,044) | (9,441) | | Finance costs | (29) | (44) | | Profit before income tax | 40,044 | 51,131 | | Income tax expense | (11,474) | (8,756) | | Profit for the period | 28,570 | 42,375 | | Profit for the period attributable to owners of the Company | 20,490 | 31,336 | | Profit for the period attributable to non-controlling interests | 8,080 | 11,039 | Unaudited Condensed Consolidated Statement of Financial Position As at June 30, 2025, total assets were RMB 926,708 '000, with total liabilities of RMB 170,000 '000, resulting in net assets of RMB 756,721 '000 and total equity attributable to owners of RMB 569,145 '000 Condensed Consolidated Statement of Financial Position as at June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 516,486 | 502,972 | | Current assets | 410,222 | 405,662 | | Total assets | 926,708 | 908,634 | | Liabilities | | | | Current liabilities | 132,210 | 143,679 | | Non-current liabilities | 37,777 | 36,229 | | Total liabilities | 170,000 | 179,908 | | Net assets | 756,721 | 728,726 | | Equity | | | | Equity attributable to owners of the Company | 569,145 | 552,078 | | Non-controlling interests | 187,576 | 176,648 | | Total equity | 756,721 | 728,726 | Notes to the Financial Statements This section provides detailed explanations and disclosures supporting the interim financial statements, covering general information, accounting policies, and specific financial items General Information The company, incorporated in the Cayman Islands, primarily engages in investment holding, with its subsidiaries operating port services in Chizhou, Anhui Province, China, and listed on GEM in 2018 - The Company was incorporated in the Cayman Islands on October 30, 2017, and listed on GEM of the Stock Exchange of Hong Kong on July 10, 2018[11] - The Company's principal business is investment holding, with its subsidiaries primarily engaged in port operations in Chizhou, Anhui Province, China[11] - The unaudited condensed consolidated financial statements are presented in RMB and have been reviewed by the audit committee[13][14] Basis of Preparation The interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, consistent with annual financial statements, except for new HKFRSs effective January 1, 2025 - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the GEM Listing Rules[15] - The accounting policies used are consistent with those in the annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new and revised Hong Kong Financial Reporting Standards effective January 1, 2025[16] Segment Information The Group operates solely in port services, thus no segment information is presented, with all revenue and major non-current assets originating from China - The Group has only one operating segment, which is the provision of port services, and therefore no segment information is presented in the condensed consolidated financial statements[18] - The Group provides port services in China, and all revenue for the six months ended June 30, 2025, and 2024, was derived from China[19] Revenue Revenue, primarily from port services, decreased to RMB 80,368 '000 for the six months ended June 30, 2025, with bulk and general cargo handling services contributing the largest share - Revenue refers to income derived from the provision of port services (excluding value-added tax)[20] Revenue Composition (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Port service income | 80,368 | 87,553 | | Provision of stevedoring services - bulk and general cargo | 73,368 | 78,100 | | Provision of stevedoring services - containers | 1,689 | 1,433 | | Provision of ancillary port services | 5,311 | 8,020 | Profit Before Income Tax Profit before income tax for the six months ended June 30, 2025, decreased to RMB 40,044 '000, primarily due to various operating expenses including employee benefits and depreciation Items Deducted/(Credited) in Arriving at Profit Before Income Tax (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 1,067 | 1,926 | | Employee benefit expenses | 13,598 | 14,073 | | Direct operating expenses from investment properties that generated rental income | 631 | 373 | | Depreciation of property, plant and equipment | 12,751 | 12,359 | | Repair and maintenance expenses | 2,413 | 3,078 | | Subcontracting fees | 6,541 | 9,022 | | Amortisation of deferred government grants | (445) | (445) | | Gain on land resumption | – | (924) | - For the six months ended June 30, 2025, the Group's research and development expenses were approximately RMB 2,584,000, of which employee benefit expenses were approximately RMB 1,736,000[25] - A gain on land resumption of approximately RMB 924,000 was recorded in the corresponding period of 2024, due to Chizhou Port Holdings entering into a compensation agreement with Chizhou Economic and Technological Development Zone Management Committee for the resumption of certain leased land[25] Income Tax Expense Income tax expense increased to RMB 11,474 '000 for the six months ended June 30, 2025, primarily due to the expiration of a tax holiday for Chizhou Port Holdings, despite Chizhou Niutoushan enjoying a preferential tax rate Income Tax Expense (For the Six Months Ended June 30) | Tax Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 9,183 | 7,191 | | Deferred tax charged to profit or loss | 2,291 | 1,565 | | Total income tax expense | 11,474 | 8,756 | - Chizhou Port Holdings' eligible projects concluded their three-year 50% tax reduction incentive on December 31, 2024, resulting in the cessation of this benefit in 2025[27] - Chizhou Port Holdings and Chizhou Niutoushan, as high-tech enterprises, enjoy a preferential tax rate of 15% in specific fiscal years[27][28] Earnings Per Share Basic earnings per share for the six months ended June 30, 2025, decreased to RMB 2.56 cents, with diluted earnings per share being identical due to no potential dilutive shares Earnings Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 20,490 (RMB '000) | 31,336 (RMB '000) | | Weighted average number of ordinary shares in issue during the period | 800,000,000 shares | 800,000,000 shares | | Basic and diluted earnings per share | RMB 2.56 cents | RMB 3.92 cents | Dividends The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[32] Trade Receivables Net trade receivables decreased to RMB 7,118 '000 as at June 30, 2025, with most receivables falling within a 30-day credit period Net Trade Receivables | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 7,119 | 7,867 | | Less: Impairment allowance | (1) | (1) | | Net trade receivables | 7,118 | 7,866 | - The credit period for trade receivables generally ranges from 10 to 55 days[35] Aging Analysis of Trade Receivables (Net of Impairment Allowance) | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 7,118 | 6,117 | | 31 to 90 days | – | 1,082 | | 91 to 120 days | – | 667 | | 121 to 365 days | – | – | | Over one year | – | – | | Total | 7,118 | 7,866 | Trade Payables Total trade payables increased to RMB 6,768 '000 as at June 30, 2025, with a typical credit period of 30 days - The credit period for trade payables is generally 30 days[36] Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 2,932 | 2,833 | | 31 to 90 days | 1,783 | 428 | | 91 to 120 days | 106 | 39 | | 121 to 365 days | 282 | 122 | | Over one year | 1,665 | 1,990 | | Total | 6,768 | 5,412 | Management Discussion and Analysis This section reviews the Group's business performance, financial results, and future outlook, including key influencing factors and strategic initiatives Business Review As an inland port operator in China, the Group experienced an 8.7% decrease in bulk and general cargo throughput but a 5.0% increase in container throughput for H1 2025, leading to an 8.2% revenue decline - The Group is an inland port operator in China, primarily providing port logistics services, operating JiangKou Port Area and Niutoushan Port Area, and is the largest public port operator in Chizhou City[38] Business Performance for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 | June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Total bulk and general cargo throughput | 12.7 million tons | 13.9 million tons | -8.7 | | Total container throughput | 8,825 TEUs | 8,406 TEUs | +5.0 | | Revenue | RMB 80.4 million | RMB 87.6 million | -8.2 | | Profit | RMB 28.6 million | RMB 42.4 million | -32.6 | Influencing Factors and Outlook Analysis Port throughput is affected by global economic pressures, adverse weather, and domestic economic downturns, but the Group anticipates stable freight volumes and new growth from major projects in H2 2025 - Key factors affecting port throughput include: global economic recovery pressure in the international environment, leading to decreased demand for dry bulk shipping; increased domestic economic downturn pressure, sluggish real estate and infrastructure, and a weak market for non-metallic mineral building materials[40][43] - Looking ahead to H2 2025, the Chinese economy is expected to remain relatively subdued but generally stable, with governments at all levels promoting high-quality development, and total port freight volume maintaining a relatively stable and normal range[41] - The Group is advancing major projects such as the dedicated railway line to the port and the JiangKou Terminal Phase IV, anticipating new rapid development after the railway line becomes operational[42] Financial Review This financial review details the Group's revenue decline, stable gross margin, increased administrative and income tax expenses, and a decrease in profit for the period and net profit margin Revenue Total revenue for the six months ended June 30, 2025, decreased by 8.2% to RMB 80,368 '000, primarily due to reduced cargo throughput and a decline in logistics agency business Revenue Composition and Changes (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | Increase/(Decrease) (RMB '000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Stevedoring services - bulk and general cargo | 73,368 | 78,100 | (4,732) | (6.1) | | Stevedoring services - containers | 1,689 | 1,433 | 256 | 17.9 | | Subtotal | 75,057 | 79,533 | (4,476) | (5.6) | | Ancillary port services | 5,311 | 8,020 | (2,709) | (33.8) | | Total revenue | 80,368 | 87,553 | (7,185) | (8.2) | Changes in Cargo Throughput and Container Throughput (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Total cargo throughput ('000 tons) | 12,711 | 13,915 | (1,204) | (8.7) | | Container throughput (TEUs) | 8,825 | 8,406 | 419 | 5.0 | - The decrease in revenue was primarily due to reduced cargo handling income (a 1.2 million tons decrease in cargo throughput) and a decline in logistics agency business[45] Cost of Services Cost of services decreased by 10.5% to approximately RMB 31.7 million for the six months ended June 30, 2025, mainly due to reduced staff costs, subcontracting fees, and maintenance expenses - Cost of services primarily includes depreciation of property, plant and equipment, staff costs, subcontracting fees, fuel and oil, consumables, electricity, and repair and maintenance expenses[46] - For the six months ended June 30, 2025, cost of services was approximately RMB 31.7 million, a decrease of RMB 3.7 million or approximately 10.5% compared to the same period last year[46] - The decrease in cost of services was mainly due to a combined reduction of approximately RMB 2.7 million in staff costs and subcontracting fees (due to an 8.7% decrease in cargo throughput), and a decrease of approximately RMB 0.7 million in repair and maintenance expenses[46] Gross Profit and Gross Margin Gross profit decreased by 6.6% to approximately RMB 48.7 million for the six months ended June 30, 2025, while the gross margin remained stable at approximately 60.6% Changes in Gross Profit and Gross Margin (For the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Increase/(Decrease) (RMB '000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 48,669 | 52,110 | (3,441) | (6.6) | | Gross margin (%) | 60.6 | 59.5 | 1.1 | N/A | - The decrease in gross profit was primarily due to an 8.2% reduction in total revenue compared to the same period last year[47] Administrative Expenses Administrative expenses increased by 48.8% for the six months ended June 30, 2025, primarily due to higher other taxes from land use rights acquisition and increased legal and professional fees - Administrative expenses increased by approximately RMB 4.6 million or 48.8%[48] - Key reasons include: an increase of approximately RMB 2.5 million in other taxes due to related taxes from a subsidiary's acquisition of land use rights; and an increase of approximately RMB 1.7 million in legal and professional fees due to more compliance activities during the period[48] Income Tax Expense Income tax expense increased by 30.7% to approximately RMB 11.5 million for the six months ended June 30, 2025, mainly due to the expiration of a tax holiday for Chizhou Port Holdings - Income tax expense was approximately RMB 11.5 million, an increase of RMB 2.7 million or approximately 30.7% compared to the same period last year[49] - The increase in income tax was mainly due to the expiration of Chizhou Port Holdings' eligible projects' three-year 50% tax reduction incentive on December 31, 2024, resulting in taxation at the standard rate of 25% in 2025[49] - For the six months ended June 30, 2025, the effective tax rate was approximately 28.7%, and the adjusted effective tax rate after excluding deferred tax expense was approximately 22.9%, which was lower than the standard tax rate mainly due to the high-tech enterprise tax incentive for Chizhou Niutoushan[49] Profit for the Period The Group recorded a profit of approximately RMB 28.6 million for the six months ended June 30, 2025, a decrease from the prior year, with the net profit margin falling to 35.5% Profit for the Period and Net Profit Margin (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | RMB 28.6 million | RMB 42.4 million | | Net profit margin | 35.5% | 48.4% | Capital Structure, Liquidity, and Financial Resources The Group's capital structure remains unchanged since listing, funded by operating cash and equity, with strong financial health, RMB 373.3 million in cash, no outstanding debt, and foreign exchange risk monitoring - The Company's share capital consists solely of ordinary shares, and its capital structure has remained unchanged since its listing on July 10, 2018[51] - The Group primarily funds its liquidity and capital requirements through cash generated from operations, bank borrowings (if any), and equity contributions from shareholders[51] Liquidity and Financial Resources (As at June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Bank and cash balances | 373.3 | 379.9 | | Total equity attributable to owners of the Company | 569.1 | 552.1 | | Outstanding debt | Nil | Nil | - The Directors believe the Group's financial position is sound, sufficient to expand its business and achieve its business objectives[53] - The Group monitors foreign exchange risks and plans to enter into foreign currency options or forward contracts when appropriate[55] Significant Investments and Commitments The Group committed RMB 10 million to Chizhou Tiehang for a 5% stake in November 2024, with an additional RMB 66.765 million capital commitment approved in March 2025, and no other major acquisitions or disposals during the period - Chizhou Port Holdings entered into a joint venture agreement with four investors on November 9, 2024, to inject RMB 10,000,000 into Chizhou Tiehang in exchange for a 5% equity interest[58] - On March 12, 2025, Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitment of approximately RMB 1,335,303,000, requiring Chizhou Port Holdings to contribute an additional approximately RMB 66,765,000[58] - As at June 30, 2025, Chizhou Port Holdings had injected RMB 17,365,000 into Chizhou Tiehang[58] - For the six months ended June 30, 2025, the Group did not acquire or hold any significant investments, nor were there any significant acquisitions or disposals involving subsidiaries, associates, and joint ventures[59][60] Employees and Remuneration (As at June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | Approximately 200 | 205 | | Total staff costs (for six months) | RMB 13.6 million | RMB 14.1 million | Asset Pledges and Subsequent Events As at June 30, 2025, the Group pledged property, plant, and equipment totaling RMB 123.6 million and investment properties totaling RMB 14.5 million, with no significant subsequent events or interim dividend recommendations Pledged Assets (As at June 30) | Asset Category | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Property, plant and equipment | 123.6 | 127.4 | | Investment properties | 14.5 | 14.1 | - As at June 30, 2025, the Group had no contingent liabilities[57] - No significant events affecting the Group have occurred since the end of the reporting period and up to the date of this announcement[65] - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[66] Latest Business Developments Recent business developments include a construction contract for JiangKou Terminal Phase IV, increased capital commitment to Chizhou Tiehang, and the transfer of land use rights to Chizhou Haishun - Chizhou Haishun (a subsidiary in which the Company indirectly holds a 43.2% effective equity interest) entered into a construction contract with an independent contractor for the JiangKou Terminal Phase IV project, with a consideration of RMB 146,485,000[67] - Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitment of approximately RMB 1,335,303,000, requiring Chizhou Port Holdings to contribute an additional approximately RMB 66,765,000 to Chizhou Tiehang, with a further injection of RMB 5,850,000 for the six months ended June 30, 2025[67] - Chizhou Port Holdings transferred the project land use rights, covering an area of approximately 74,798 square meters, to Chizhou Haishun for a consideration of approximately RMB 17,952,000, and Chizhou Haishun has obtained the property ownership certificate[68] Other Information This section covers details on listed securities transactions, competitive interests, and changes in director information Listed Securities Transactions and Competing Interests Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and directors confirmed no competing interests with the Group's business - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025[69] - The Directors confirm that none of the Company's controlling shareholders or Directors and their respective close associates have any interests in any business that competes directly or indirectly with the Group's business[70] Changes in Directors' Information Ms. Zhang Huifeng, a non-executive director, was appointed as a member of the Board's Nomination Committee, effective June 16, 2025 - Ms. Zhang Huifeng, a non-executive director, has been appointed as a member of the Board's Nomination Committee, effective June 16, 2025[71] Corporate Governance This section details the company's adherence to corporate governance codes, directors' securities dealing code, and the audit committee's review of financial statements Corporate Governance Code The company fully complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period - The Company has complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period, with no deviations[72] Code of Conduct for Securities Transactions by Directors The Group adopted the Model Code for Securities Transactions by Directors as per GEM Listing Rules, and all directors confirmed compliance during the reporting period - The Group has adopted the required standards for dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for directors' securities transactions in the Company's shares[73] - Following specific enquiries with the Directors, all Directors have confirmed their compliance with the required standards set out in the code of conduct throughout the reporting period[73] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim financial statements and found them compliant with accounting standards and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Mr. Zhang Shimin (Chairman), Mr. Nie Rui, and Mr. Zheng Yanbin[74] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the results comply with applicable accounting standards, the GEM Listing Rules, other applicable legal requirements, and provide adequate disclosures[74] Board Members and Report Publication As of the announcement date, the Board consists of two executive, one non-executive, and three independent non-executive directors, with this announcement published on the Stock Exchange and company websites - As of the date of this announcement, the executive directors are Mr. Gui Sihai and Mr. Huang Xueliang; the non-executive director is Ms. Zhang Huifeng; and the independent non-executive directors are Mr. Nie Rui, Mr. Zhang Shimin, and Mr. Zheng Yanbin[76] - This announcement will be published on the Stock Exchange's website and the Company's website for at least seven days from the date of publication[76]