重庆机电(02722) - 2025 - 中期业绩

Performance Highlights and Dividend Policy Performance Highlights For the six months ended June 30, 2025, the Group achieved strong growth with turnover increasing by 9.2% to approximately RMB 4.658 billion, gross profit by 10.4% to approximately RMB 800 million, and profit attributable to equity holders of the Company significantly rising by 53.8% to approximately RMB 416 million, driving basic earnings per share up by 57.1% to RMB 0.11 Key Performance Indicators for H1 2025 | Indicator | H1 2025 | Year-on-Year Change | | :--- | :--- | :--- | | Turnover | Approx. 4,658.1 Million RMB | ▲ 9.2% | | Gross Profit | Approx. 799.8 Million RMB | ▲ 10.4% | | Profit Attributable to Equity Holders of the Company | Approx. 416.0 Million RMB | ▲ 53.8% | | Basic Earnings Per Share | Approx. 0.11 RMB Yuan | ▲ 57.1% | | Net Asset Per Share | Approx. 2.41 RMB Yuan | ▲ 5.2% | Interim Dividend The Board recommends an interim dividend of RMB 0.01 per share (tax inclusive) for the six months ended June 30, 2025, compared to no dividend distributed in the prior corresponding period, reflecting enhanced profitability and commitment to shareholder returns - The Board recommends an interim dividend of RMB 0.01 per share (tax inclusive), totaling approximately RMB 36.85 million, with no dividend declared for the same period last year[3] - The dividend distribution is subject to approval at an extraordinary general meeting and is planned for November 25, 2025, to shareholders on record as of November 11[3] Consolidated Financial Statements Consolidated Income Statement During the reporting period, the Group's total operating revenue increased by 9.2% to RMB 4.658 billion, operating profit significantly grew by 36.0% to RMB 451 million, primarily driven by a substantial increase in investment income, and net profit attributable to owners of the parent company rose by 53.8% to RMB 416 million, with basic earnings per share increasing from RMB 0.07 to RMB 0.11 Key Items from Consolidated Income Statement (Unit: RMB Yuan) | Item | Jan-Jun 2025 | Jan-Jun 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 4,658,076,541.58 | 4,265,890,940.36 | ▲ 9.2% | | Operating Profit | 451,447,300.24 | 332,056,505.13 | ▲ 36.0% | | Total Profit | 453,202,467.35 | 338,411,918.63 | ▲ 33.9% | | Net Profit Attributable to Owners of the Parent Company | 415,972,007.93 | 270,407,916.25 | ▲ 53.8% | | Basic Earnings Per Share (RMB Yuan/share) | 0.11 | 0.07 | ▲ 57.1% | - Investment income was a key driver of profit growth, increasing by 41.3% from RMB 282 million in the prior period to RMB 398 million, primarily from investments in associates and joint ventures[7] Consolidated Balance Sheet As of June 30, 2025, the Group's total assets increased by 6.5% to RMB 18.833 billion, total liabilities increased by 9.7% to RMB 9.947 billion, and total equity attributable to owners of the parent company increased by 3.3% to RMB 8.372 billion, maintaining a stable asset-liability structure Key Items from Consolidated Balance Sheet (Unit: RMB Yuan) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 18,832,647,128.50 | 17,686,757,262.53 | ▲ 6.5% | | Total Current Assets | 12,297,185,193.02 | 11,314,638,741.05 | ▲ 8.7% | | Total Liabilities | 9,947,279,293.63 | 9,068,374,825.01 | ▲ 9.7% | | Total Current Liabilities | 8,795,065,919.78 | 7,422,677,256.86 | ▲ 18.5% | | Total Equity Attributable to Owners of the Parent Company | 8,372,117,091.17 | 8,101,862,288.65 | ▲ 3.3% | Consolidated Cash Flow Statement During the reporting period, net cash flow from operating activities was a net outflow of RMB 517 million, an increase from RMB 252 million outflow in the prior period, while net cash flow from investing activities turned positive with a net inflow of RMB 151 million, and net cash flow from financing activities also turned positive with a net inflow of RMB 66 million, with cash and cash equivalents at period-end totaling RMB 1.803 billion Summary of Consolidated Cash Flow Statement (Unit: RMB Yuan) | Item | Jan-Jun 2025 | Jan-Jun 2024 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -516,663,588.73 | -251,757,496.73 | | Net Cash Flow from Investing Activities | 151,468,034.35 | -120,654,783.12 | | Net Cash Flow from Financing Activities | 65,998,281.00 | -431,685,424.36 | | Net Increase in Cash and Cash Equivalents | -297,870,919.19 | -803,605,388.56 | | Cash and Cash Equivalents at Period-End | 1,803,247,577.77 | 1,378,084,325.25 | Notes to the Financial Statements Company Overview and Basis of Preparation The Company, a joint stock limited company registered in the PRC, listed on the Hong Kong Stock Exchange in 2008, with Chongqing Machinery & Electronics Group as its parent and Chongqing Yufu Holding Group as its ultimate controlling company, primarily engages in the manufacturing, sales, and services of clean energy and high-end intelligent equipment, with financial statements prepared on a going concern basis in accordance with China Accounting Standards for Business Enterprises and Hong Kong Listing Rules - The Company's principal business segments are the manufacturing, sales, and services of clean energy equipment and high-end intelligent equipment[20] - Financial statements are prepared in accordance with China Accounting Standards for Business Enterprises and Hong Kong Listing Rules, on a going concern basis[22][23] Significant Accounting Policies and Estimates The Group adopts the calendar year as its accounting period, with a 12-month operating cycle and RMB as its functional currency, recognizing revenue when control of goods or services is transferred, either at a point in time or over a period, with no significant changes in accounting policies or estimates during the reporting period - Revenue is recognized when the customer obtains control of the related goods or services, distinguishing between performance obligations satisfied at a point in time or over a period[36][38] - During the reporting period, there were no significant changes in accounting policies, significant changes in accounting estimates, or significant prior period accounting error adjustments[43] Taxation The Group's main taxes include corporate income tax and value-added tax, with some subsidiaries enjoying preferential tax policies, such as the Western Development Policy and High-tech Enterprise status, applying a 15% preferential income tax rate compared to the standard 25% rate, based on their business location and nature - Several subsidiaries within the Group enjoy a 15% preferential corporate income tax rate due to qualifying for the Western Development encouraged industries or being recognized as High-tech Enterprises[47][48] Notes to Key Items and Supplementary Information During the reporting period, revenue from principal activities was RMB 4.555 billion, a 9.1% year-on-year increase, non-recurring gains and losses totaled RMB 65.53 million, positively impacting net profit, and net profit attributable to ordinary shareholders of the parent company after deducting non-recurring gains and losses was RMB 350 million, with a weighted average return on net assets of 4.25% Operating Revenue by Business Segment (Jan-Jun 2025) | Business Segment | Operating Revenue (RMB Yuan) | | :--- | :--- | | High-end Intelligent Equipment Business | 880,896,050.15 | | Clean Energy Equipment Business | 3,738,135,999.77 | | Industrial Services Business | 31,910,363.02 | | Head Office and Others | 7,134,128.64 | - Total non-recurring gains and losses for the reporting period amounted to RMB 65.526 million, primarily from government grants and asset disposal gains[60][61] Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB Yuan/share) | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Parent Company | 5.05 | 0.11 | | Net Profit Attributable to Ordinary Shareholders of the Parent Company After Deducting Non-recurring Gains and Losses | 4.25 | 0.10 | Management Discussion and Analysis Segment Business Performance The Group's business is divided into three segments: Clean Energy Equipment, the primary source of revenue and profit, saw revenue increase by 11.3% and segment results by 241.1%; High-end Intelligent Equipment revenue slightly increased by 1.1% but turned from profit to loss due to UK subsidiary performance and trade friction; Industrial Services revenue and results declined due to lower financial business interest rates Overview of Segment Performance (For the period ended June 30, Million RMB) | Business Segment | Revenue (2025) | Revenue (2024) | Segment Results (2025) | Segment Results (2024) | | :--- | :--- | :--- | :--- | :--- | | Clean Energy Equipment | 3,738.2 | 3,359.4 | 152.8 | 44.8 | | High-end Intelligent Equipment | 880.9 | 871.1 | (37.7) | 38.3 | | Industrial Services | 31.9 | 34.8 | 11.9 | 24.8 | Clean Energy Equipment Business This segment performed strongly in the first half, with operating revenue increasing by 11.3% to RMB 3.738 billion and segment results surging by 241.1% to RMB 153 million, driven by strong market performance and order acquisition in wind power blades, industrial pumps, and wires and cables, alongside significant loss reduction in hydropower equipment, with stable growth expected in the second half through overseas market expansion and technological innovation - The Clean Energy Equipment segment's revenue grew by 11.3%, and segment results increased by 241.1%, primarily due to a significant reduction in losses from the hydropower equipment business[65][66] - Joint venture Chongqing Cummins Engine Co., Ltd. achieved substantial performance growth, significantly contributing to the Group's investment income[68] High-end Intelligent Equipment Business This segment's revenue slightly increased by 1.1% to RMB 881 million, but segment results turned from a profit of RMB 38.3 million in the prior period to a loss of RMB 37.7 million, mainly due to project delays and financial constraints at UK subsidiary PTG, coupled with the impact of overseas trade friction on intelligent manufacturing business, which high-end CNC machine tools growth could not offset - The High-end Intelligent Equipment segment turned from profit to loss, primarily due to increased losses from UK subsidiary PTG's business decline and the impact of overseas trade friction on the intelligent manufacturing business[69][70] Industrial Services Business Industrial Services revenue decreased to RMB 31.9 million in the first half, with segment results declining by 52.0% to RMB 11.9 million, mainly due to lower interest rates in the financial business, while the company continues to advance 'Digital Electromechanical' construction and treasury management systems to enhance efficiency and risk control - The Industrial Services segment's results decreased by 52.0% year-on-year, primarily due to the impact of lower interest rates in the financial business[72] Overall Financial Review The Group's total sales increased by 9.2% and gross profit by 10.4%, with operating profit significantly growing by 36.0%, mainly driven by improvements in the hydropower equipment business and a 41.3% increase in investment income, particularly from Chongqing Cummins' contribution, while significantly reduced finance costs and income tax expenses collectively led to a strong 53.8% growth in profit attributable to equity holders - Total operating revenue increased by 9.2% to RMB 4.658 billion, and gross profit increased by 10.4% to RMB 800 million[74][75] - Operating profit increased by 36.0%, primarily driven by operational improvements in the hydropower equipment business and growth in investment income[79] - Investment income increased by 41.3% year-on-year, mainly benefiting from the performance growth of joint venture Chongqing Cummins[81] - Profit attributable to equity holders increased by 53.8% to RMB 416 million, with earnings per share rising from RMB 0.07 to RMB 0.11[83] Liquidity and Capital Resources At the end of the reporting period, the Group's cash and bank balances were approximately RMB 2.423 billion, total assets increased to RMB 18.833 billion, and total liabilities increased to RMB 9.947 billion, with the current ratio decreasing from 1.52:1 to 1.40:1 and the gearing ratio slightly decreasing from 20.3% to 19.3%, indicating a stable financial position, while total bank and other borrowings slightly decreased - Net cash outflow from operating activities was RMB 517 million, compared to an outflow of RMB 252 million in the prior period[85] Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.40 : 1 | 1.52 : 1 | | Gearing Ratio | 19.3% | 20.3% | Other Significant Information Significant Events During the reporting period, the Company underwent several significant events, including an internal reorganization at the controlling shareholder level, resulting in Yufu Holding becoming the indirect controlling shareholder, the acquisition of 100% equity in Chongqing Panlian Transmission Technology Co., Ltd., the renewal of multiple continuing connected transaction agreements with the parent group, the completion of re-election for the Board of Directors and Supervisory Committee, and the deconsolidation of subsidiary Chongqing Smart Manufacturing Co., Ltd. - An internal reorganization at the controlling shareholder level resulted in Yufu Holding becoming the Company's indirect controlling shareholder[92] - The Company completed the acquisition of 100% equity in Chongqing Panlian Transmission Technology Co., Ltd. and renewed multiple continuing connected transaction agreements with the parent company[94][95][96] - Subsidiary Chongqing Smart Manufacturing Co., Ltd. is no longer consolidated, with no significant financial impact expected on the Group[102][104] - The Company completed the re-election of its Seventh Board of Directors and Supervisory Committee[107][108] Capital Commitments, Expenditures, and Risk Management At the end of the reporting period, the Group's total capital commitments were approximately RMB 44.8 million, with total capital expenditures of approximately RMB 86 million during the period, primarily for plant expansion and technical equipment upgrades, and the Group manages financial resources through treasury policies and foreign exchange hedging systems to mitigate currency fluctuation risks mainly involving HKD, GBP, and USD - Total capital expenditures during the period were approximately RMB 86 million, an increase of over 100% year-on-year, primarily for capacity enhancement and technological upgrades[113] - The Group manages financial and exchange rate risks through treasury policies and a foreign exchange hedging system[114][115] Staffing Situation As of June 30, 2025, the Group had 6,188 employees, a decrease from 6,720 in the prior corresponding period, and continues to promote technical talent upgrading and improve its remuneration system - As of June 30, 2025, the Group had 6,188 employees, a year-on-year decrease of approximately 8%[116] Major Shareholders' Interests As of June 30, 2025, the Company's major shareholders include controlling shareholder Chongqing Machinery & Electronics Holding (Group) Co., Ltd., holding approximately 54.74% of the Company's shares (domestic shares + H shares), and Chongqing SASAC is deemed to hold approximately 67.34% interest in the Company due to equity relationships Major Shareholders' Shareholding (Percentage of Total Issued Shares) | Shareholder Name | Shareholding Percentage (%) | | :--- | :--- | | Chongqing Machinery & Electronics Holding (Group) Co., Ltd. | 54.74% | | Chongqing State-owned Assets Supervision and Administration Commission (Interests in controlled corporations) | 67.34% | | Chongqing Construction Engineering Group Co., Ltd. | 6.30% | | China CITIC Financial Asset Management Co., Ltd. | 5.32% | Corporate Governance During the reporting period, the Company adopted and complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Hong Kong Listing Rules, adopted procedures for directors' securities transactions, and confirmed compliance by all directors, with no purchase, sale, or redemption of any of the Company's listed securities during the period - The Company complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period[122][123] - During the period, the Group did not purchase, sell, or redeem any of the Company's listed securities, had no significant acquisitions or disposals, and no new significant litigations[124][125][126]