天地科技(600582) - 2020 Q2 - 季度财报

Glossary Definitions of Common Terms This chapter provides definitions of common terms used in the report, including company name, controlling shareholder, major subsidiaries, and reporting period, ensuring a clear understanding of the report content - “Tiandi Science & Technology/The Company” refers to Tiandi Science & Technology Co., Ltd[5] - “China Coal Technology & Engineering Group/Controlling Shareholder” refers to China Coal Technology & Engineering Group Co., Ltd[5] - “Reporting Period, This Reporting Period” refers to January 1, 2020 to June 30, 2020[5] Company Profile and Key Financial Indicators Company Information This section outlines the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative, providing investors with an overview of the company's identity - The company's Chinese name is Tiandi Science & Technology Co., Ltd., abbreviated as Tiandi Science & Technology[7] - The company's legal representative is Hu Shanting[7] - The company's registered and office address is at No. 5, Qingnian Gou Road, Heping Street, Chaoyang District, Beijing[9] Contact Persons and Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, facilitating information inquiries and communication for investors - The Board Secretary is Fan Jian, contact number 010-84262803[8] - The Securities Affairs Representative is Gao Xiang, contact number 010-84264277[8] Brief Introduction to Information Disclosure and Location Changes This section details the company's designated information disclosure newspaper and the website specified by the China Securities Regulatory Commission, as well as the location for the semi-annual report, ensuring transparent information disclosure - The company's designated information disclosure newspaper is China Securities Journal[10] - The website designated by the China Securities Regulatory Commission for publishing the semi-annual report is http://www.sse.com.cn[10](index=10&type=chunk) Company Stock Overview This section briefly introduces the company's stock information, including stock type, listing exchange, stock abbreviation, and code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[11] - The stock abbreviation is Tiandi Science & Technology, and the stock code is 600582[11] Company's Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the reporting period, reflecting a net profit and operating cash flow increase despite a decline in operating revenue, while return on net assets decreased Key Accounting Data (Jan-Jun 2020 vs. Prior Year Period) | Item | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 8,519,943,532.28 | 9,128,095,077.73 | -6.66 | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 556,787,534.47 | 554,465,575.80 | 0.42 | | Net Cash Flow from Operating Activities (CNY) | 892,734,471.89 | 690,116,820.78 | 29.36 | Key Financial Indicators (Jan-Jun 2020 vs. Prior Year Period) | Item | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.135 | 0.134 | 0.75 | | Diluted Earnings Per Share (CNY/share) | 0.135 | 0.134 | 0.75 | | Weighted Average Return on Net Assets (%) | 3.20 | 3.46 | Decrease 0.26 percentage points | Non-Recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the reporting period, totaling CNY 16,744,207.39, primarily including disposal gains/losses of non-current assets and government subsidies Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 19,715,418.22 | | Government Subsidies Recognized in Current Profit/Loss | 6,952,543.42 | | Debt Restructuring Gains and Losses | -4,699,997.95 | | Other Gains and Losses Meeting the Definition of Non-Recurring | 636,355.16 | | Total | 16,744,207.39 | Business Overview Explanation of Company's Main Business, Business Model, and Industry Situation during the Reporting Period The company's main business covers the entire professional field of the coal industry, providing integrated services including R&D, design, manufacturing, engineering contracting, operation, sales, and financial support, aiming to solve technical problems in safe, efficient, green, and intelligent mining and clean, efficient, low-carbon, intensive utilization of coal - The company's business activities integrate scientific research, design, product manufacturing and sales, engineering contracting, production operations, coal production and sales, technical services, and financial tool support[17] - The company leads the industry in green mines, smart mines, and transparent mine construction, deeply integrating technologies such as 5G, artificial intelligence, industrial internet, big data, and cloud computing[17] - The business model adheres to an integrated marketing approach supported by technology services, product development, sales, branding, after-sales service, and financial tools[19] Main Business The company provides integrated smart mine solutions for the entire coal industry chain, covering basic theoretical research, product technology innovation, intelligent design, mining, tunneling, transportation, safety, and washing - The company's business covers the entire professional field of the coal industry, providing integrated smart mine solutions including equipment, technology, and services for intelligent design, mining, tunneling, transportation, safety, and washing across the entire industry chain[17] Leading Industries The company's leading industries include intelligent coal machinery manufacturing, safety technology equipment, clean energy, design and construction, demonstration projects, and emerging industries, all providing professional technology, equipment, and services for the coal sector - The intelligent coal machinery manufacturing segment primarily relies on technological innovation and smart manufacturing for R&D and production of mining, tunneling, transportation, support, and lifting equipment, open-pit mining equipment, and coal mine automation and electro-hydraulic control equipment[18] - The safety technology equipment segment focuses on geological assurance, disaster prevention, mine ventilation, mine communication, and safety monitoring, providing safety technology, equipment, engineering, and professional services[18] - The clean energy segment's core businesses include high-efficiency coal-fired boilers, coal-water slurry, briquettes, clean coal conversion technology, flue gas purification, wastewater treatment technical services, coalbed methane enrichment technology, and new energy development[18] - The emerging industries segment explores areas such as ecological environment restoration and governance in subsidence areas, disaster management, smart city construction, and new materials[18] Business Model The company adopts an integrated marketing model supported by technology services, product development, sales, branding, after-sales service, and financial tools, providing solutions to customers through technological innovation to enhance value creation - The company adheres to an integrated marketing model supported by technology services, product development, sales, branding, after-sales service, and financial tools[19] - Through technological innovation, the company proactively provides problem-solving solutions and high-quality services to customers, enhancing value creation[19] Industry Overview The company belongs to the special equipment manufacturing industry, which was impacted by the COVID-19 pandemic during the reporting period but benefited from domestic new infrastructure, expanding domestic demand, work resumption, and national policies accelerating intelligent coal mine development, leading to steady improvement in industry development quality - The company belongs to the special equipment manufacturing industry, with main products including complete sets of intelligent coal machinery equipment, safety equipment, washing and sorting equipment, high-efficiency energy-saving and environmental protection equipment, and monitoring systems[19] - The COVID-19 pandemic impacted the macro economy and the industry, but domestic new infrastructure, expanding domestic demand, work resumption, and effective pandemic control promoted the optimization of industry capacity and market structures[19] - The 'Guiding Opinions on Accelerating the Intelligent Development of Coal Mines' jointly issued by the National Development and Reform Commission and seven other ministries brought both opportunities and challenges to the industry[20] Explanation of Significant Changes in Company's Major Assets during the Reporting Period During the reporting period, the company's major assets and liabilities underwent significant changes, with development expenditures and dividends payable increasing substantially, while goodwill, advances from customers, and other current liabilities decreased significantly, mainly due to new development projects, disposal of subsidiaries, and adjustments to presentation items under new revenue standards Changes in Major Assets and Liabilities | Item | Period-end Amount (CNY 10,000) | Change from Period-start (%) | Main Reasons | | :--- | :--- | :--- | :--- | | Development Expenditures | 182 | 136.36 | New development projects in the reporting period | | Goodwill | 347 | -50.71 | Due to disposal of subsidiaries in the reporting period | | Advances from Customers | 627 | -99.78 | Implementation of new revenue standards, adjustment of presentation items | | Dividends Payable | 43,698 | 874.10 | Company's dividends payable for 2019 | | Other Current Liabilities | 4,625 | -57.67 | Commercial acceptance bills derecognized in the reporting period | Analysis of Core Competitiveness during the Reporting Period The company's core competitiveness lies in technological innovation, professional talent, full industry chain layout, industry brand influence, and strong support from its controlling shareholder, collectively driving its continuous development in safe and efficient coal mining and clean, low-carbon utilization - The company regards technological innovation as the core driving force for high-quality development, possessing numerous internationally leading scientific and technological achievements, and leading the direction of intelligent longwall mining development in China[22] - The company has 3 academicians of the Chinese Academy of Engineering and 34 employees enjoying government special allowances, gathering renowned experts and academic leaders in various professional technical fields within the industry[22] - The company's industrial segments basically cover the entire coal industry chain, making it one of the most comprehensively laid out enterprises in the global coal industry chain[22] - The stability and reliability of the company's product and service quality, along with its core technological advantages in intelligent coal machinery manufacturing, have established a strong brand influence[23] - The controlling shareholder, China Coal Technology & Engineering Group Co., Ltd., as a central enterprise, provides stable assurance and strong support for the company in technological innovation and talent development[24] Discussion and Analysis of Operations Discussion and Analysis of Operations In the first half of 2020, despite a complex and severe domestic and international economic environment, the company achieved overall stable economic operations through various measures and overcoming difficulties, making significant progress in market expansion, integrated marketing model construction, technological innovation, and safety production management, laying a foundation for high-quality development - The company's management closely focused on annual operating targets, implemented multiple measures, and overcame difficulties, achieving stable operation in both pandemic prevention and control and production and operations[25] - Through deep cultivation of strategic clients and increased high-end marketing, the company signed new contracts worth CNY 10.76 billion, with five enterprises including Tiandi Bengniu and Shanghai Coal Science signing new contracts exceeding CNY 1 billion each[27] - The company clarified the '14th Five-Year Plan' work program for integrated marketing model, initially establishing a '11223' integrated marketing model[28] - R&D investment in the first half of the year was CNY 330 million, a 7.9% year-on-year increase, with 334 patent applications, including 330 invention patents, and breakthroughs in a number of cutting-edge technologies and equipment[29] - The company used special actions for quality improvement and efficiency enhancement as a starting point, strengthening comprehensive budget management, accounts receivable control, and cost and expense control to improve management efficiency[30] - The company diligently carried out safety production work under normalized pandemic prevention and control conditions, strictly implemented corporate safety production responsibilities, and strengthened supervision and inspection[31] Overall Stable Economic Operation Despite a 6.66% year-on-year decrease in operating revenue, net profit attributable to shareholders of the listed company increased by 0.42%, and net cash flow from operating activities increased by 29.36%, indicating overall stable economic operation Key Economic Operation Indicators | Item | H1 2020 (CNY 100 million) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 85.20 | -6.66 | | Net Profit Attributable to Shareholders of Listed Company | 5.57 | 0.42 | | Net Cash Flow from Operating Activities | 8.93 | 29.36 | Diversified Market Expansion The company achieved significant market expansion results by deeply cultivating strategic clients and high-end marketing, overcoming the impact of the pandemic, with new contract signings totaling CNY 10.76 billion, and several subsidiaries exceeding CNY 1 billion in contract value - Company leaders led visits to Shandong Energy, National Energy Shenning Coal Industry, and other key clients to deepen cooperative relationships[27] - During the reporting period, the company signed new contracts worth CNY 10.76 billion[27] - Tiandi Bengniu, Shanghai Coal Science, Xi'an Research Institute, Shanxi Coal Machinery, and Chongqing Research Institute all signed new contracts exceeding CNY 1 billion in the first half of the year[27] Continuously Strengthening the Foundation for Integrated Marketing Model Construction The company defined its '14th Five-Year Plan' for integrated marketing model, initially establishing a '11223' integrated marketing model, and continuously improving its system and mechanisms through information platform construction, clear marketing levels, and talent engineering - The company clarified the '14th Five-Year Plan' work program and specific ideas for integrated marketing model[28] - Initially established a '11223' integrated marketing model, which means adhering to one business philosophy of 'market-oriented, customer-centric', using 'marketing information management platform' as one carrier, building two marketing levels of 'group and enterprise', developing two major projects of 'marketing culture and marketing talent', and achieving three major goals of 'integrated marketing culture and behavior, integrated marketing, production, technology, and service, and integrated industry chain synergy and co-existence'[28] Innovation-Driven "Accelerated Momentum" The company continued to increase R&D investment, with CNY 330 million invested in the first half of the year, a 7.9% year-on-year increase, achieving multiple technological breakthroughs in intelligent mining, such as the transparent mine 3D geological modeling system and integrated longwall automation coal discharge system - R&D investment in the first half of the year was CNY 330 million, a 7.9% year-on-year increase[29] - In the first half of the year, 334 patent applications were filed, including 330 invention patents; 277 patents were granted, including 131 invention patents[29] - Xi'an Research Institute developed a transparent mine 3D geological modeling system and a transparent working face digital twin system[29] - Tianma Company developed an integrated longwall automation coal discharge system, realizing new modes such as automatic coal discharge, memory-based coal discharge, machine-following coal discharge, and remote coal discharge[29] Multiple Measures to Promote High-Quality Development The company comprehensively improved management levels and efficiency, and reduced sales expenses and financing costs through special actions for quality improvement and efficiency enhancement, optimizing comprehensive budget management, strengthening accounts receivable control, and cost and expense control - The company used special actions for quality improvement and efficiency enhancement as a starting point, continuously improving management levels and efficiency[30] - Optimized top-level design, improved the specific indicator approval system, and strengthened the leading role of comprehensive budgeting[30] - Formulated annual work plans, clarified control targets, established a 'Dual Clearance' working group, and systematically promoted accounts receivable collection[30] - Utilized online office meeting software for 'cloud' business communication and 'cloud' market expansion, reducing sales expenses, and controlled financing costs through centralized fund management[31] Sustained High-Pressure Management of Safety Production Under the triple pressure of pandemic prevention and control, work resumption, and safety precautions, the company strictly implemented safety production responsibilities, strengthened supervision and inspection in key areas, and established a sound safety basic management system to enhance overall safety awareness - The company diligently carried out safety production work under normalized pandemic prevention and control conditions, strictly implemented corporate safety production responsibilities[31] - Emphasized key areas, strengthened supervision and inspection, and conducted 15 safety supervision and inspection activities for 11 enterprises[31] - Established and improved the safety basic management system, steadily promoted the construction of a safety supervision information platform, and extensively carried out 'Safety Production Month' activities[31] Key Operating Performance during the Reporting Period During the reporting period, the company's operating revenue decreased by 6.66% due to the pandemic, but R&D expenses increased by 7.90%, net cash flow from operating activities significantly grew by 29.36%, and financial expenses sharply decreased by 192.32%, reflecting the company's optimized financial structure through cost reduction, efficiency improvement, and enhanced collection management despite revenue pressure Key Operating Performance (Jan-Jun 2020 vs. Prior Year Period) | Item | Current Period Amount (CNY) | Prior Year Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,519,943,532.28 | 9,128,095,077.73 | -6.66 | | Operating Cost | 5,937,382,005.97 | 6,197,268,279.95 | -4.19 | | Selling Expenses | 400,209,600.49 | 506,369,992.59 | -20.96 | | Administrative Expenses | 922,869,637.31 | 936,912,008.16 | -1.50 | | Financial Expenses | -25,681,128.82 | 27,816,114.96 | -192.32 | | R&D Expenses | 329,627,732.08 | 305,495,422.22 | 7.90 | | Net Cash Flow from Operating Activities | 892,734,471.89 | 690,116,820.78 | 29.36 | - The change in operating revenue was mainly due to the decrease in revenue affected by the COVID-19 pandemic[32] - The change in financial expenses was mainly due to the company's reduction in interest-bearing debt scale[33] - The change in net cash flow from operating activities was mainly due to increased collections during the reporting period[33] Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders of the listed company both increased. The asset and liability structure underwent several significant changes, such as substantial increases in development expenditures and dividends payable, and significant decreases in advances from customers and goodwill, mainly influenced by new revenue standard adjustments, dividend distribution, and subsidiary disposals Assets and Liabilities Status (Period-end vs. Prior Year Period-end) | Item Name | Current Period-end Amount (CNY 10,000) | Proportion of Total Assets at Current Period-end (%) | Prior Year Period-end Amount (CNY 10,000) | Proportion of Total Assets at Prior Year Period-end (%) | Change from Prior Year Period-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Development Expenditures | 182 | - | 77 | - | 136.36 | New development projects in the reporting period | | Goodwill | 347 | 0.01 | 704 | 0.02 | -50.71 | Due to disposal of subsidiaries in the reporting period | | Advances from Customers | 627 | 0.02 | 279,275 | 7.60 | -99.78 | Implementation of new revenue standards, adjustment of presentation items | | Dividends Payable | 43,698 | 1.15 | 4,486 | 0.12 | 874.10 | Company's dividends payable for 2019 | Major Asset Restrictions as of the End of the Reporting Period As of the end of the reporting period, some of the company's monetary funds, financing receivables, fixed assets, and intangible assets were restricted, totaling over CNY 1 billion, primarily used for deposits, bill pledges, and loan collateral Major Asset Restrictions | Item | Period-end Book Value (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 282,643,791.73 | Deposits, maintenance funds, etc | | Financing Receivables | 374,627,217.39 | Bill pledge | | Fixed Assets | 390,121,637.23 | Loan collateral, real estate with incomplete property rights | | Intangible Assets | 28,625,195.41 | Loan collateral | | Total | 1,076,017,841.76 | / | Investment Status Analysis During the reporting period, the company's external equity investments significantly decreased by 92.9% year-on-year, but it still established new wholly-owned and controlled subsidiaries. Non-equity investments also decreased by 46% year-on-year, primarily for industrial base and laboratory construction - In the current reporting period, the company and its controlled subsidiaries' total external equity investment was CNY 62 million, compared to CNY 873.32 million in the prior year period, a 92.9% year-on-year decrease[39] - In the first half of 2020, the company and its subsidiaries' non-equity investments in industrial base construction, laboratory construction, technological transformation projects, and fixed asset purchases totaled CNY 213 million, compared to CNY 391 million in the prior year period, a 46% year-on-year decrease[42] [Overall Analysis of External Equity Investments](index=13&type=section&id=1%E3%80%81%20%E5%AF%B9%E5%A4%96%E8%82%A1%E6%9D%83%E6%8A%95%E8