中船科技(600072) - 2020 Q4 - 年度财报

Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance indicators for the past three years Company Information This chapter provides basic information about CSSC Science & Technology Co., Ltd., including its name, stock code, legal representative, contact details, registered and office addresses, and information disclosure channels Company Basic Information | Item | Information | | :--- | :--- | | Chinese Name | CSSC Science & Technology Co., Ltd. | | Chinese Abbreviation | CSSC Technology | | Stock Abbreviation | CSSC Technology | | Stock Code | 600072 | | Legal Representative | Zhou Hui | | Board Secretary | Huang Laihe | | Office Address | 13th Floor, Jiangnan Shipyard Building, No. 600 Luban Road, Shanghai | Key Financial Indicators In 2020, the company's operating revenue was 1.875 billion yuan, a significant year-on-year decrease of 43.67% due to new revenue recognition standards, while net profit attributable to shareholders increased by 4.14% to 143.46 million yuan, primarily driven by non-recurring gains from equity disposal Key Accounting Data for the Past Three Years (Unit: Yuan) | Key Accounting Data | 2020 | 2019 | Year-on-year Change (%) | 2018 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,874,937,663.65 | 3,328,387,821.20 | -43.67 | 3,264,373,125.15 | | Net Profit Attributable to Shareholders of Listed Company | 143,459,993.44 | 137,750,838.39 | 4.14 | 65,427,430.33 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | -28,195,594.52 | -74,182,215.06 | N/A | -78,412,167.69 | | Net Cash Flow from Operating Activities | 656,312,067.54 | 256,063,314.56 | 156.31 | -333,901,731.36 | | Total Assets | 9,052,054,033.92 | 9,195,870,028.85 | -1.56 | 10,527,625,393.33 | Key Financial Indicators for the Past Three Years | Key Financial Indicators | 2020 | 2019 | Change | 2018 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.195 | 0.187 | 4.28% | 0.089 | | Weighted Average Return on Net Assets (%) | 3.69 | 3.62 | Increased by 0.07 percentage points | 1.78 | - Operating revenue decreased primarily due to the adoption of new revenue recognition standards, changing some project revenue recognition from gross to net method, or from period to point-in-time recognition[19] - Net profit attributable to shareholders (excluding non-recurring gains/losses) narrowed its loss due to increased revenue and gross margin from engineering design, survey, consulting, and supervision services at subsidiary CSSC No. 9 Institute, coupled with reduced R&D and financial expenses[19] - Net cash flow from operating activities increased due to improved collections from engineering contracting business at subsidiary CSSC No. 9 Institute[19] 2020 Non-recurring Gains and Losses Items (Unit: Yuan) | Item | Amount (Yuan) | Notes | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 156,247,749.76 | Primarily investment income of 156 million yuan from the disposal of 20% equity in Xuzhou Sunshine | | Government Grants | 41,004,279.20 | - | | Other Non-operating Income and Expenses | -4,343,339.10 | - | | Income Tax Impact | -28,824,374.46 | - | | Total | 171,655,587.96 | - | Business Overview This section details the company's principal businesses, operating models, industry conditions, significant asset changes, and core competencies Principal Business, Operating Model, and Industry Overview The company's principal businesses remain unchanged, primarily conducted through its wholly-owned subsidiaries CSSC No. 9 Institute and CSSC Huahai, focusing on engineering services and marine equipment, respectively, while navigating a growing but less profitable construction sector and a challenging shipbuilding industry - The company's principal businesses are divided into two major segments: - Engineering Services (via CSSC No. 9 Institute): Including engineering design, survey, consulting, supervision, EPC (Engineering, Procurement, and Construction) general contracting, and land consolidation services[24] - Marine Equipment (via CSSC Huahai): Including hatch covers, passages, ramps, and other marine equipment[24] - CSSC No. 9 Institute is actively advancing its "3+2" strategic layout, focusing on design consulting, EPC general contracting, and urbanization construction (investment and financing) as foundations, while expanding into technology industrialization and smart factory digital platform construction as two new businesses[24][31] - In 2020, CSSC No. 9 Institute signed 742 new projects with a total contract value of approximately 3.09 billion RMB[26][35] - Industry analysis indicates that the total output value of the construction industry increased by 6.24% year-on-year, but the industry's profit margin on output value has declined for four consecutive years[27] - In the shipbuilding industry, national shipbuilding completion volume increased by 4.9% year-on-year, but new orders and order backlog both decreased[27] Significant Changes in Major Assets During the reporting period, the company executed two significant equity disposals, including the transfer of 20% equity in Xuzhou CSSC Sunshine Investment Development Co., Ltd. for 128 million yuan and initiating the public listing for 100% equity in Jiangnan Dairuisi (Nantong) Marine Equipment Manufacturing Co., Ltd - The company publicly listed and transferred 20% equity in Xuzhou CSSC Sunshine, which was successfully acquired by Shanghai Haichuan Real Estate Co., Ltd. for 127.65 million yuan[28][29] - The company initiated the public listing process for 100% equity in Jiangnan Dairuisi, with an appraised value of 305 million yuan[30] Analysis of Core Competencies The company's core competencies are rooted in its subsidiary CSSC No. 9 Institute's comprehensive engineering service capabilities and technological innovation, expanding from traditional shipyard design to green building, BIM, and smart manufacturing, supported by its '3+2' strategic layout and significant patent applications - The company's core competencies are reflected in five major business areas: - Design Consulting Business: Leveraging its overall shipyard design advantages to expand into green building and smart city domains[31] - General Contracting Business: Building integrated design, procurement, and construction service capabilities[31] - Investment and Financing Business: Extending the industry chain through PPP and other models[31] - Technology Industrialization Business: Promoting the commercialization of technological achievements in hydraulic engineering, environmental protection, and interior decoration[31] - Smart Factory Digital Platform: Applying big data and AI to shipyard planning, construction, and operation and maintenance[31] - During the reporting period, the company applied for 176 patents (including 133 invention patents) in areas such as smart shipyards and engineering equipment, with 61 granted; it also led the compilation of 1 international standard and 5 national standards[33] Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial position, industry trends, and future outlook Overview of Operations In 2020, the company's operating revenue decreased by 43.67% to 1.875 billion yuan due to new revenue recognition standards for engineering general contracting, while net profit attributable to shareholders increased to 143 million yuan, primarily driven by a 156 million yuan investment gain from equity disposal 2020 Key Operating Data (Unit: Billion Yuan) | Indicator | 2020 | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 1.875 | -43.67% | | Net Profit Attributable to Parent Company | 0.143 | +4.14% | | Net Profit Attributable to Parent Company (Excluding Non-recurring Gains/Losses) | -0.028 | Loss narrowed | - The significant decrease in operating revenue was primarily due to the adoption of new revenue recognition standards, which changed the revenue recognition method for some engineering general contracting projects from the gross method to the net method, or from period-based to point-in-time recognition[35] - The growth in net profit attributable to the parent company mainly stemmed from non-recurring gains and losses, specifically an investment income of approximately 156 million yuan from the disposal of 20% equity in Xuzhou CSSC Sunshine[36][47] Analysis of Principal Business Operating costs decreased by 47.15% in line with revenue, while R&D and financial expenses significantly declined by 44.50% and 24.36% respectively, leading to a 156.31% increase in net cash flow from operating activities and a 569.87% increase in net cash flow from investing activities, despite a 56.06% drop in engineering general contracting revenue due to accounting changes Changes in Key Income Statement and Cash Flow Statement Items (Unit: Yuan) | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,874,937,663.65 | 3,328,387,821.20 | -43.67 | | Operating Cost | 1,610,835,265.69 | 3,048,016,914.76 | -47.15 | | Research and Development Expenses | 60,895,832.50 | 109,713,680.59 | -44.50 | | Financial Expenses | 41,134,560.62 | 54,382,707.99 | -24.36 | | Net Cash Flow from Operating Activities | 656,312,067.54 | 256,063,314.56 | 156.31 | | Net Cash Flow from Investing Activities | 674,371,127.50 | 100,671,364.73 | 569.87 | Principal Business by Product (Unit: Yuan) | Product Segment | Operating Revenue (Yuan) | Year-on-year Change in Operating Revenue (%) | Gross Margin (%) | Gross Margin Change Year-on-year | | :--- | :--- | :--- | :--- | :--- | | Engineering Design, Survey, Consulting, and Supervision | 557,471,602.64 | 6.43 | 18.10 | Increased by 0.49 percentage points | | Engineering General Contracting | 1,189,519,048.50 | -56.06 | 9.40 | Increased by 3.46 percentage points | | Marine Accessories | 67,017,766.91 | 20.69 | 22.61 | Increased by 8.11 percentage points | - Total R&D investment amounted to 60.90 million yuan, accounting for 3.25% of operating revenue[45] Analysis of Assets and Liabilities As of the reporting period end, total assets slightly decreased by 1.56% to 9.052 billion yuan, with significant structural changes including the addition of 1.447 billion yuan in contract assets and a 43.97% increase in inventory due to new revenue standards, while liabilities decreased with a 66.31% reduction in short-term borrowings and a 39.31% reduction in long-term borrowings - The adoption of new revenue recognition standards led to significant changes in the balance sheet structure: - Assets: New "Contract Assets" item with an ending balance of 1.447 billion yuan; "Inventories" increased by 43.97%; "Advances from Customers" decreased by 99.79%[48][49] - Liabilities: New "Contract Liabilities" item with an ending balance of 741 million yuan; "Other Current Liabilities" decreased by 80.77%[48][49] - The completion and capitalization of the industrial building under subsidiary CSSC No. 9 Institute resulted in "Construction in Progress" being cleared, and "Fixed Assets" and "Investment Properties" significantly increasing by 256.60% and 256.94%, respectively[48][49] - The company's debt scale decreased, with "Short-term Borrowings" down by 66.31% and "Long-term Borrowings" down by 39.31%, primarily due to loan repayments by subsidiary CSSC No. 9 Institute[49] Industry Operating Information Analysis During the reporting period, the company's construction business completed 1,157 projects totaling 582.89 million yuan, had 144 projects under construction valued at 1.028 billion yuan, and signed 742 new projects worth 3.09 billion yuan, resulting in a total order backlog of 3.671 billion yuan at period-end Construction Industry Operating Data (Unit: Ten Thousand Yuan) | Item | Quantity (Units) | Total Amount (Ten Thousand Yuan) | | :--- | :--- | :--- | | Projects Completed During Reporting Period | 1,157 | 58,289 | | Projects Under Construction During Reporting Period | 144 | 102,814 | | New Projects Signed During Reporting Period | 742 | 309,000 | | Order Backlog at End of Reporting Period | - | 367,065 | Significant Asset and Equity Disposals During the reporting period, the company completed two significant equity disposals: the successful transfer of 20% equity in Xuzhou CSSC Sunshine for 127.65 million yuan, generating substantial investment income, and the initiation of public listing for 100% equity in Jiangnan Dairuisi based on an appraised value of 304.58 million yuan - Publicly listed and transferred 20% equity in Xuzhou CSSC Sunshine, with a transaction price of 127.65 million yuan[63] - Publicly listed and transferred 100% equity in Jiangnan Dairuisi, with an appraised value of 304.58 million yuan[64] Discussion and Analysis of Future Development The company anticipates a rebound in the global marine market in 2021 but expects continued pressure from raw material costs and exchange rates, while domestic infrastructure and urbanization plans offer opportunities for the construction sector, with a 2021 revenue target of approximately 2 billion yuan, despite facing risks in project management, market competition, cash flow, external investments, and legal disputes - The company's development strategy remains consistent with the previous year, adhering to the "CSSC Science & Technology Co., Ltd. 2018-2025 Development Strategic Plan (Outline)"[68] - The 2021 operating plan targets achieving approximately 2 billion yuan in operating revenue[68] - The company faces several key risks, including: - Project Management Risk: Increased difficulty in managing project progress, quality, and safety[68][69] - Market Change and Competition Risk: Macroeconomic uncertainties and intense market competition[68][69] - Cash Flow Risk: Long payback periods for investment and financing projects, leading to significant working capital pressure[68][69] - External Investment Risk: Suboptimal returns from some external equity investments[68][69] - Legal Dispute Risk: Increasingly complex legal relationships in projects[68][69] Significant Matters This section covers the company's profit distribution plan, changes in accounting policies, and significant litigation or arbitration cases Profit Distribution Plan The board proposes a 2020 profit distribution of 0.60 yuan cash dividend (tax inclusive) per 10 shares, totaling 44.17 million yuan, representing 30.79% of net profit attributable to shareholders, with no capital reserve conversion to share capital Cash Dividend Distribution for the Past Three Years | Dividend Year | Dividend Per 10 Shares (Yuan, Tax Inclusive) | Cash Dividend Amount (Yuan, Tax Inclusive) | Ratio to Net Profit Attributable to Parent Company (%) | | :--- | :--- | :--- | :--- | | 2020 | 0.60 | 44,174,992.98 | 30.79 | | 2019 | 0.57 | 41,966,243.33 | 30.47 | | 2018 | 0.20 | 14,724,997.66 | 22.50 | Changes in Accounting Policies and Estimates During the reporting period, the company adopted new revenue standards from January 1, 2020, leading to retrospective adjustments impacting accounts receivable, inventory, contract assets, and liabilities, and also changed its accounting estimate for bad debt provisions for receivables from October 1, 2020, increasing credit impairment losses by 45.90 million yuan - The company adopted new revenue recognition standards effective January 1, 2020, without adjusting comparative period information, applying retrospective adjustment to opening retained earnings and related financial statement items[78] Major Impacts of New Revenue Standards on January 1, 2020 Balance Sheet (Unit: Yuan) | Item | Adjustment Impact Amount (Yuan) | | :--- | :--- | | Accounts Receivable | -139,826,991.85 | | Inventories | -99,481,108.48 | | Contract Assets (New) | 1,607,698,171.37 | | Advances from Customers | -151,520,244.26 | | Contract Liabilities (New) | 443,267,289.76 | | Retained Earnings | -1,708,857.43 | - The company changed its accounting estimate for bad debt provisions for receivables, which resulted in an increase of 45,895,809.97 yuan in credit impairment losses for 2020[80][81] Significant Litigation and Arbitration Matters During the reporting period, the company was involved in several significant lawsuits, including a final judgment by the Supreme People's Court in the Beijing Zhongguancun construction contract dispute, where the company was awarded 26.49 million yuan in engineering fees and interest, while a construction contract dispute with Shandong Construction Group involving approximately 95.53 million yuan remains ongoing - In the engineering payment dispute with Beijing Zhongguancun, the Supreme People's Court's final judgment ruled in favor of the company, awarding 26.49 million yuan in engineering fees and corresponding interest[86] - The construction engineering contract dispute with Shandong Construction Group is still under trial, with the plaintiff seeking payment of 95.53 million yuan in engineering fees and interest[87] Share Changes and Shareholder Information This section details the company's ordinary share changes, total shareholder count, and information on the top ten shareholders and actual controller Shareholders and Actual Controller Information As of the end of 2020, the company had 101,675 ordinary shareholders, with China State Shipbuilding Corporation Limited and its subsidiary Jiangnan Shipyard (Group) Co., Ltd. collectively holding 41.28% as the controlling shareholder Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-End | Proportion (%) | | :--- | :--- | :--- | | China State Shipbuilding Corporation Limited | 275,204,726 | 37.38 | | Jiangnan Shipyard (Group) Co., Ltd. | 28,727,521 | 3.90 | | Liang Shengyi | 6,000,000 | 0.81 | | Fang Guowei | 6,000,000 | 0.81 | | HKSCC Nominees Limited | 4,092,748 | 0.56 | Directors, Supervisors, Senior Management, and Employees This section provides information on the shareholdings and remuneration of directors, supervisors, and senior management, as well as overall employee statistics Changes in Holdings and Remuneration of Directors, Supervisors, and Senior Management During the reporting period, none of the company's directors, supervisors, or senior management held company shares, with their total pre-tax remuneration amounting to 8.4006 million yuan, including 1.1407 million yuan for Chairman and General Manager Zhou Hui Remuneration of Selected Directors, Supervisors, and Senior Management (Unit: Ten Thousand Yuan) | Name | Position | Total Pre-tax Remuneration Received from Company During Reporting Period (Ten Thousand Yuan) | | :--- | :--- | :--- | | Zhou Hui | Chairman, General Manager | 114.07 | | Gao Kang | Director (Resigned) | 124.37 | | Wang Rui | Chief Accountant | 112.35 | | Xu Jian | Independent Director | 8.00 | | Total | / | 840.06 | Employee Information As of the reporting period end, the company and its major subsidiaries employed 1,609 staff, with production personnel forming the largest group at 1,018, and over 78% of employees holding a bachelor's degree or higher, reflecting a highly qualified workforce Employee Professional Structure | Professional Category | Number of Employees | | :--- | :--- | | Production Personnel | 1,018 | | Technical Personnel | 292 | | Administrative Personnel | 201 | | Sales Personnel | 51 | | Financial Personnel | 47 | | Total | 1,609 | Corporate Governance This section outlines the company's corporate governance structure, compliance with regulations, and internal control effectiveness Overview of Corporate Governance During the reporting period, the company's corporate governance structure complied with the Company Law and CSRC regulations, with no significant discrepancies, maintaining effective internal controls over financial reporting as confirmed by an unqualified audit report - The company's actual corporate governance situation has no discrepancies with the requirements of the Company Law and relevant regulations of the China Securities Regulatory Commission[156] - The company disclosed its self-evaluation report on internal control and obtained a standard unqualified internal control audit report from Tianjian Certified Public Accountants (Special General Partnership), which concluded that the company maintained effective internal controls over financial reporting in all material respects as of December 31, 2020[165][166][167] Financial Report This section presents the company's audited financial statements, including the audit report and detailed notes to the financial statements Audit Report Tianjian Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements, highlighting accounts receivable impairment and revenue recognition as key audit matters due to their materiality and significant management judgment - The auditing firm is Tianjian Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion[3][169] - Key audit matters include: - Impairment of Accounts Receivable: Due to the significant amount and the substantial management judgment involved in impairment assessment[171] - Revenue Recognition: As operating revenue is a key performance indicator, and revenue recognition for engineering general contracting business involves significant management judgment[171][173] Financial Statements This chapter presents the company's audited consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the year 2020 Consolidated Balance Sheet This section presents the company's consolidated balance sheet as of December 31, 2020, detailing its assets, liabilities, and owners' equity Consolidated Balance Sheet Summary (December 31, 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 9,052,054,033.92 | | Total Current Assets | 6,701,420,946.56 | | Total Non-current Assets | 2,350,633,087.36 | | Total Liabilities | 4,799,879,425.75 | | Total Current Liabilities | 3,427,767,534.44 | | Total Non-current Liabilities | 1,372,111,891.31 | | Total Owners' Equity | 4,252,174,608.17 | | Owners' Equity Attributable to Parent Company | 3,923,608,083.05 | Consolidated Income Statement This section presents the company's consolidated income statement for the year 2020, detailing its revenues, expenses, and net profit Consolidated Income Statement Summary (2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 1,874,937,663.65 | | Operating Profit | 170,345,478.77 | | Total Profit | 165,841,735.21 | | Net Profit | 139,673,695.78 | | Net Profit Attributable to Owners of Parent Company | 143,459,993.44 | | Basic Earnings Per Share (Yuan/Share) | 0.195 | Consolidated Cash Flow Statement This section presents the company's consolidated cash flow statement for the year 2020, detailing cash flows from operating, investing, and financing activities Consolidated Cash Flow Statement Summary (2020) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 656,312,067.54 | | Net Cash Flow from Investing Activities | 674,371,127.50 | | Net Cash Flow from Financing Activities | -1,269,583,456.50 | | Net Increase in Cash and Cash Equivalents | 59,780,397.47 | Notes to Consolidated Financial Statements This section provides detailed explanations for key items in the financial statements, including a 56.06% decrease in engineering general contracting revenue due to accounting standard changes, a significant increase in investment income to 182 million yuan from equity disposal, and the initial recognition of 1.447 billion yuan in contract assets and 741 million yuan in contract liabilities - Due to the adoption of new revenue recognition standards, the company initially recognized contract assets with an ending balance of 1.447 billion yuan and contract liabilities with an ending balance of 741 million yuan[317][318][372] - Investment income totaled 182 million yuan, of which 156 million yuan was generated from the disposal of long-term equity investment (Xuzhou CSSC Sunshine)[425] - The company has 1.027 billion yuan in restricted monetary funds, primarily consisting of time deposits and letter of guarantee deposits[447]