Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 280,258,000, an increase of 18.7% compared to RMB 236,020,000 in the same period of 2022[11] - The company reported a loss before tax of RMB 48,151,000, compared to a profit of RMB 55,112,000 in the previous year[11] - Net loss for the period was RMB 62,573,000, a significant decline from a profit of RMB 37,591,000 in the first half of 2022[11] - Basic and diluted loss per share for the period was RMB 0.25, compared to earnings of RMB 0.16 per share in the same period last year[11] - The group’s gross profit decreased by RMB 34.7 million or 36.3% to approximately RMB 61.0 million, with a gross margin decline from 40.6% to 21.8%[31] - The company reported a post-tax loss of approximately RMB 62.6 million, compared to a post-tax profit of RMB 37.6 million for the same period last year, resulting in a post-tax loss rate of 22.3%[31] - The company declared a final dividend of RMB 0.075 per share, totaling RMB 15,000,000, compared to RMB 34,000,000 in 2022[92] - The net loss attributable to equity holders of the parent for the six months ended June 30, 2023, was RMB (50,354,000), compared to a profit of RMB 31,597,000 in 2022[95] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 5,699,103,000, a slight decrease from RMB 5,737,648,000 at the end of 2022[12] - Total liabilities increased to RMB 4,610,899,000 from RMB 4,571,077,000 at the end of 2022[12] - The company's equity attributable to owners of the parent decreased to RMB 877,756,000 from RMB 943,904,000 at the end of 2022[12] - The asset-liability ratio increased to 305.3% from 273.4% due to additional borrowings for the construction of the new water supply systems[34] - Total borrowings amounted to approximately RMB 3,322.6 million, an increase from RMB 3,189.6 million as of December 31, 2022, with 86.2% of borrowings subject to floating interest rates[34] - Non-current liabilities rose to RMB 3,383,515,000, compared to RMB 3,237,206,000 at the end of 2022, reflecting an increase of 4.5%[67] Revenue Sources - Raw water sales revenue rose by RMB 10.1 million or 16.9% to approximately RMB 69.8 million, up from approximately RMB 59.7 million for the six months ended June 30, 2022[28] - Municipal water supply revenue increased by RMB 40.9 million or 28.8% to approximately RMB 183.0 million, primarily due to the operation of the Phase III and Phase IV water supply systems starting in the second half of 2022[28] - The company sold 64.5 million tons of raw water during the reporting period, an increase of 5.6 million tons compared to 58.9 million tons for the six months ended June 30, 2022[17] - Municipal water supply sales volume was 76.0 million tons, an increase of 17.3 million tons from 58.7 million tons for the six months ended June 30, 2022[18] - Water sales accounted for RMB 276,207 thousand of the total revenue, up from RMB 224,087 thousand, reflecting a growth of 23.3%[88] Operational Efficiency and Development - Ongoing development of new technologies and products is a priority to improve operational efficiency and service delivery[9] - The company is actively pursuing potential construction projects to enhance its water supply infrastructure in the region[9] - The company is actively promoting the construction and management of water resource allocation projects to enhance water security in the southern region of Taizhou[14] - The total sales cost increased by RMB 79.0 million or 56.3% to approximately RMB 219.3 million, primarily due to increased depreciation after the operation of Phase III and Phase IV water supply systems[27] - Depreciation of property, plant, and equipment rose to RMB 94,841,000, compared to RMB 26,452,000 in the first half of 2022, indicating a 258% increase[71] Corporate Governance and Shareholding - The company has adopted and complied with the corporate governance code since its listing date, ensuring adherence to legal and professional standards as of June 30, 2023[46] - The company has confirmed that all directors and supervisors have complied with the standard code of conduct for securities trading during the reporting period[47] - Major shareholders include Taizhou State-owned Capital Operation Group Co., Ltd. with 43,250,855 domestic shares, accounting for 28.83% of the issued domestic shares and 21.63% of the total issued shares[52] - The company has undergone changes in its board and senior management, with several appointments and resignations noted since the last annual report[48] - The company is committed to enhancing its corporate governance practices to align with business operations and growth[46] Cash Flow and Financial Costs - Operating cash flow for the six months ended June 30, 2023, was RMB 56,262,000, a decrease of 40% compared to RMB 93,930,000 in the same period of 2022[71] - Cash flow from investment activities was negative RMB 128,787,000, a significant improvement from negative RMB 360,564,000 in the first half of 2022[73] - Financing activities generated a net cash flow of RMB 62,769,000, down from RMB 308,578,000 in the same period of the previous year[73] - The company incurred financial costs of RMB 61,198,000, a significant increase from RMB 7,512,000 in the same period of 2022[71] - Financial costs surged by RMB 53.7 million or 716.0% to approximately RMB 61.2 million, mainly due to the capitalization of interest expenses being recognized as costs after the commencement of the new water supply systems[31] Joint Ventures and Strategic Partnerships - The company established a joint venture with Zhejiang Yong'an Water Group to commercialize bottled water using natural spring water reserves, holding a 51% stake in the joint venture[39] - The company has established a new joint venture, Xian Zhi Quan Water Industry Co., Ltd., with a registered capital of RMB 50,000,000, focusing on natural mineral water production and supply[76]
台州水务(01542) - 2023 - 中期财报