福田股份(08196) - 2022 - 中期财报

Financial Highlights The Group's revenue significantly increased by 139.6% year-on-year, with a notable reduction in loss attributable to owners of the company Financial Highlights for the Six Months Ended June 30, 2022 | Indicator | H1 2022 (RMB '000) | H1 2021 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 61,734 | 25,761 | +139.6% | | Gross Profit | 11,362 | 5,557 | +104.5% | | Loss Attributable to Owners of the Company | 3,580 | 6,192 | -42.2% | - The Board does not recommend the payment of an interim dividend for the period[7] Condensed Consolidated Financial Statements This section presents the Group's financial performance, position, equity changes, and cash flows for the period Condensed Consolidated Statement of Comprehensive Income The Group's revenue significantly increased by 139.6% year-on-year to RMB 61.734 million, primarily driven by substantial increases in revenue from equipment and EPC projects, leading to a narrowed loss for the period Overview of Results for the Six Months Ended June 30 (RMB '000) | Item | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 61,734 | 25,761 | +139.6% | | Gross Profit | 11,362 | 5,557 | +104.5% | | Administrative Expenses | (14,838) | (11,872) | +25.0% | | Loss Before Tax | (3,764) | (6,720) | -44.0% | | Loss for the Period | (3,580) | (6,192) | -42.2% | - Basic and diluted loss per share attributable to owners of the Company narrowed from RMB 0.021 in the prior period to RMB 0.012 in the current period[11] Condensed Consolidated Statement of Financial Position As of June 30, 2022, total assets increased to RMB 393 million, but current liabilities outpaced current assets, resulting in a net current liability of RMB 7.168 million, while total equity slightly decreased Summary of Statement of Financial Position (RMB '000) | Item | June 30, 2022 | December 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 83,007 | 86,485 | -4.0% | | Current Assets | 310,454 | 258,067 | +20.3% | | Current Liabilities | 317,622 | 264,770 | +19.9% | | Net Current Liabilities | (7,168) | (6,703) | +7.0% | | Net Assets/Total Equity | 71,221 | 74,823 | -4.8% | Condensed Consolidated Statement of Changes in Equity As of June 30, 2022, total equity decreased from RMB 74.823 million at the beginning of the year to RMB 71.221 million, primarily due to the RMB 3.580 million loss and RMB 0.022 million exchange difference recorded during the period - Total comprehensive loss for the period was RMB 3.602 million, comprising a loss for the period of RMB 3.580 million and an exchange difference of RMB 0.022 million, leading to a decrease in total equity[17] Condensed Consolidated Statement of Cash Flows Net cash generated from operating activities significantly decreased to RMB 6.444 million for the period, but cash and cash equivalents at period-end still increased to RMB 57.621 million due to financing activities Overview of Cash Flows for the Six Months Ended June 30 (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 6,444 | 47,475 | | Net Cash Used in Investing Activities | (125) | (62) | | Net Cash Generated from Financing Activities | 5,315 | 2,883 | | Net Increase in Cash and Cash Equivalents | 11,634 | 50,296 | | Cash and Cash Equivalents at End of Period | 57,621 | 96,627 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes on the Group's operating segments, revenue, other income, and share option scheme Operating Segment Information The Group's total revenue growth for the period was primarily driven by equipment and EPC projects, with equipment projects contributing over half of the revenue and segment results, while service concession arrangements revenue slightly decreased Segment Revenue for the Six Months Ended June 30 (RMB '000) | Segment | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | EPC Projects | 14,416 | 246 | +5760.2% | | Construction Projects | 1,268 | 598 | +112.0% | | Equipment Projects | 32,916 | 6,607 | +398.2% | | Service Concession Arrangements | 10,731 | 11,698 | -8.3% | | Others | 2,403 | 6,612 | -63.7% | | Total | 61,734 | 25,761 | +139.6% | Segment Results for the Six Months Ended June 30 (RMB '000) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | EPC Projects | 4,157 | (50) | | Construction Projects | 108 | 73 | | Equipment Projects | 6,307 | 2,184 | | Service Concession Arrangements | 182 | 467 | | Others | 608 | 2,883 | | Total | 11,362 | 5,557 | Revenue, Other Income and Gains Revenue composition for the period is consistent with segment reporting, with equipment and EPC projects being the primary income sources, and other income increased year-on-year mainly due to an exchange gain of RMB 0.725 million - Other income and gains increased from RMB 1.379 million in the prior period to RMB 1.885 million, with an exchange gain of RMB 0.725 million being the main contributing factor to the increase[36] Share Option Scheme The company adopted a new share option scheme on June 17, 2022, granting 18,000,000 share options to directors and employees with an exercise price of HKD 1.19 per share, aiming to incentivize and reward contributors - The Company adopted a new share option scheme on June 17, 2022, and granted 18,000,000 share options during the period[42][50] - The granted share options have an exercise price of HKD 1.19 per share and vest over three years with vesting percentages of 40%, 30%, and 30% respectively[46][52] - The fair value of share options granted on June 29, 2022, was approximately HKD 9.154 million, with related expenses of HKD 31,960 recognized during the period[52] Management Discussion and Analysis This section provides an overview of the Group's business performance, financial review, capital structure, and other significant disclosures Business Review and Outlook The Group's first-half performance significantly improved, with revenue growth of 139.6% and a 42.2% reduction in loss, primarily due to approximately RMB 30 million in revenue from a large municipal equipment project in the Greater Bay Area - The core driver for performance improvement was the recognition of approximately RMB 30 million in progress revenue from a large municipal wastewater treatment equipment project in the Greater Bay Area[77] - The future outlook remains cautious, with operating strategies including: - Mitigating pandemic risks, carefully selecting customers, and controlling costs - Establishing a stable foothold in the Guangdong-Hong Kong-Macao Greater Bay Area and securing more municipal projects - The Vietnam project is expected to commence in the second half of 2022[78][80] - The Group has begun exploring the big health market and signed a non-legally binding Memorandum of Understanding with Jilin City Wutian Health Services Co., Ltd. to jointly develop the Chinese market[81] Financial Review This section details the Group's financial performance, highlighting strong revenue and gross profit growth driven by equipment projects, which effectively offset increased expenses and led to a narrowed net loss Business Revenue Total revenue increased by 139.6% year-on-year to RMB 61.734 million, primarily contributed by equipment and EPC projects, with equipment project revenue surging by 398.2% to become the most significant income source Revenue Breakdown by Segment (RMB '000) | Segment | H1 2022 | H1 2021 | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | EPC Projects | 14,416 | 246 | +5760.2% | From three EPC projects, compared to only one small project in the prior period | | Construction Projects | 1,268 | 598 | +112.0% | Increased revenue | | Equipment Projects | 32,916 | 6,607 | +398.2% | From a large municipal equipment project in the Greater Bay Area and two other projects | | Service Concession Arrangements | 10,731 | 11,698 | -8.3% | Slight decrease in revenue | | Others | 2,403 | 6,612 | -63.7% | Reduced contributions from technical consulting and O&M projects | Cost of Sales and Gross Profit Cost of sales increased by 149.3% year-on-year in line with revenue growth, while gross profit increased by 104.5% to RMB 11.362 million, primarily due to contributions from a large municipal equipment project in the Greater Bay Area - Cost of sales increased by 149.3% from approximately RMB 20.204 million in the prior period to RMB 50.372 million, largely consistent with the revenue growth trend[92] - Gross profit increased by 104.5% from approximately RMB 5.557 million in the prior period to RMB 11.362 million, primarily due to the recognition of progress revenue from a large municipal equipment project in the Greater Bay Area[93] Operating Expenses and Loss for the Period Both selling and distribution expenses and administrative expenses increased during the period, with administrative expenses rising by 25.0% due to increased R&D investment, yet the loss for the period successfully narrowed by 42.2% to RMB 3.580 million - Selling and distribution expenses increased by 83.1% year-on-year to RMB 0.985 million[94] - Administrative expenses increased by 25.0% year-on-year to RMB 14.838 million, primarily due to an increase in R&D expenses of approximately RMB 2.917 million[95] - Loss for the period decreased by 42.2% from RMB 6.192 million in the prior period to RMB 3.580 million[96] Capital Structure, Liquidity and Financial Resources As of June 30, 2022, the Group's capital structure remained stable with total equity of approximately RMB 71.221 million, cash and bank balances increased, but the company was in a net current liability position, with the gearing ratio rising to 70% Capital and Liquidity Ratios | Indicator | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Equity Attributable to Shareholders | RMB 71.221 million | RMB 74.823 million | | Cash and Bank Balances | RMB 57.621 million | RMB 46.009 million | | Net Current (Liabilities)/Assets | (RMB 7.168 million) | (RMB 6.703 million) | | Total Bank Borrowings | RMB 45.088 million | RMB 38.497 million | | Gearing Ratio | 70% | 67% | Other Disclosures During the period, the Group had no significant investment or acquisition activities, with operating commitments amounting to approximately RMB 123 million, and the company's name was changed post-period - As of June 30, 2022, the Group's contracted commitments for EPC and construction projects amounted to approximately RMB 123 million[71][102] - Certain of the Group's buildings, investment properties, and leasehold land have been pledged to secure bank facilities granted[106] - Subsequent to the reporting period, the Company's name was changed from "Jianyu Group Holdings Limited" to "China TianYF Holdings Group Limited", effective from July 27, 2022[118] Corporate Governance and Other Information This section covers the company's corporate governance practices, directors' and major shareholders' interests, and the audit committee's review Corporate Governance Practices The company is committed to maintaining good corporate governance, complying with all provisions of the Corporate Governance Code during the period, with the only deviation being the combined roles of Chairman and CEO - The Company complied with the Corporate Governance Code of the GEM Listing Rules, with the only deviation being that the roles of Chairman and Chief Executive Officer were not segregated, both held by Mr. Xie Yang[122] Directors' and Major Shareholders' Interests The report discloses the shareholdings of directors and major shareholders, with Chairman Mr. Xie Yang holding 30.45% of the company's shares through his controlled corporation, making him the controlling shareholder Major Shareholders' Shareholdings as of June 30, 2022 | Shareholder Name/Person | Capacity | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Xie Yang | Interest in Controlled Corporation | 91,350,000 | 30.45% | | Mr. Zhao Yanwei | Beneficial Owner | 15,000,000 | 5.00% | | Mr. Song Xiaoxing | Interest in Controlled Corporation | 44,032,500 | 14.68% | Audit Committee Review The Audit Committee, comprising three independent non-executive directors, has reviewed the accounting policies and unaudited condensed consolidated financial statements for the six months ended June 30, 2022, deeming them compliant with applicable accounting standards and Listing Rules requirements - The Audit Committee has reviewed the interim results and interim report for the period and is of the opinion that adequate disclosures have been made and comply with relevant requirements[140]