华建集团(600629) - 2021 Q1 - 季度财报

Part I. Important Notice 1.1 Important Declaration The board, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, approved by all directors and confirmed by the chief accountant; this report is unaudited - The company's board of directors, supervisory board, and directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[6] - All company directors attended the board meeting to review the quarterly report[6] - Company head Gu Weihua, chief accountant Wu Fengyu, and head of accounting department He Jing guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[6] - This first quarter report is unaudited[6] Part II. Company Basic Information 2.1 Key Financial Data In Q1 2021, operating revenue grew 33.61%, net profit 60.11%, and non-recurring net profit 162.43%; total assets slightly decreased 1.84%, while operating cash flow was negative and declined 27.28% Overview of Key Financial Data (Q1 2021) | Indicator | As of Report Period End / Year-to-Date (Yuan) | As of Prior Year End / Prior Year-to-Date (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Balance Sheet Items | | | | | Total Assets | 11,403,740,064.76 | 11,617,476,200.20 | -1.84 | | Net Assets Attributable to Shareholders | 3,017,605,271.73 | 2,982,164,681.94 | 1.19 | | Income Statement Items | | | | | Operating Revenue | 1,942,254,076.13 | 1,453,660,967.26 | 33.61 | | Net Profit Attributable to Shareholders | 95,274,052.39 | 59,504,079.70 | 60.11 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains/Losses | 65,942,531.74 | 25,127,523.87 | 162.43 | | Weighted Average Return on Net Assets (%) | 3.19 | 2.02 | Increased 1.17 percentage points | | Basic Earnings Per Share (Yuan/Share) | 0.1837 | 0.1147 | 60.16 | | Diluted Earnings Per Share (Yuan/Share) | 0.1837 | 0.1147 | 60.16 | | Cash Flow Statement Items | | | | | Net Cash Flow from Operating Activities | -644,475,732.11 | -506,328,309.57 | -27.28 | - In 2020, the company underwent a business combination under common control with Shanghai Land Highway Engineering Consulting and Design Co., Ltd., and comparable data for the same period was adjusted according to enterprise accounting standards[7] Non-Recurring Gains and Losses Items and Amounts (Q1 2021) | Item | Current Period Amount (Yuan) | Description | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Gains/Losses on Disposal of Non-Current Assets | -518.99 | | | Government Subsidies Recognized in Current Profit/Loss | 33,800,000.00 | | | Fair value changes and investment income from trading financial assets, derivative financial assets, etc., excluding effective hedges related to normal operations | 803,168.95 | | | Net Non-Operating Income and Expenses | -94,978.61 | | | Impact on Minority Interests (After Tax) | -2,600.00 | | | Income Tax Impact | -5,173,550.70 | | | Total | 29,331,520.65 | | 2.2 Shareholding Status of Total Shareholders, Top Ten Shareholders, and Top Ten Non-Restricted Shareholders as of Report Period End As of the report period end, the company had 15,024 shareholders; the top two state-owned entities held 54.50% and 14.85% respectively, all as non-restricted shares Shareholding Status (As of Report Period End) | Indicator | Quantity/Proportion | | :--------------------------------- | :--------------------------------- | | Total Shareholders (Households) | 15,024 | | Top Ten Shareholders' Shareholding | | | Shanghai Modern Architectural Design (Group) Co., Ltd. | 290,946,423 shares (54.50%) | | Shanghai Guosheng (Group) Co., Ltd. | 79,300,162 shares (14.85%) | | Top Ten Non-Restricted Shareholders' Shareholding | | | Shanghai Modern Architectural Design (Group) Co., Ltd. | 290,946,423 shares | | Shanghai Guosheng (Group) Co., Ltd. | 79,300,162 shares | - Shanghai Modern Architectural Design (Group) Co., Ltd. and Shanghai Guosheng (Group) Co., Ltd. are both state-owned enterprises supervised by the Shanghai State-owned Assets Supervision and Administration Commission[13] 2.3 Shareholding Status of Total Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Non-Restricted Preferred Shareholders as of Report Period End As of the report period end, the company had no preferred shareholders - Not applicable, the company has no preferred shareholders[14] Part III. Significant Events 3.1 Significant Changes and Reasons for Major Financial Statement Items and Indicators New leasing standards introduced right-of-use assets and lease liabilities; revenue and operating profit grew substantially from market expansion and engineering contracts, with increased R&D; operating cash outflow rose, but investing cash inflow surged Significant Balance Sheet Item Changes (Current Period End vs. Prior Period End) | Item Name | Current Period End Amount (Yuan) | Prior Period End Amount (Yuan) | Change (%) | Explanation | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Right-of-Use Assets | 245,774,531.69 | - | 100.00 | Implementation of new leasing standards, recognizing related right-of-use assets and lease liabilities | | Lease Liabilities | 265,722,684.91 | - | 100.00 | Implementation of new leasing standards, recognizing related right-of-use assets and lease liabilities | | Provisions | 26,452,611.97 | - | 100.00 | According to new leasing standards, estimated restoration costs for leased assets due to changes in operating premises | Significant Income Statement Item Changes (Current Period vs. Prior Year Same Period) | Account | Current Period Amount (Yuan) | Prior Year Same Period Amount (Yuan) | Change (%) | Primary Reason | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Operating Revenue | 1,942,254,076.13 | 1,453,660,967.26 | 33.61 | In 2020, the company's main business revenue declined due to the COVID-19 pandemic; in 2021, focusing on key operations, actively expanding local and national strategic markets, both new contracts and operating revenue increased year-on-year | | Operating Cost | 1,573,572,078.08 | 1,164,371,755.18 | 35.14 | The company strengthened its design-led general contracting business expansion and management, with engineering contracting revenue growing by 48% year-on-year. Concurrently, the gross profit margin for engineering contracting gradually increased from 2.04% last year to 4.06%, an increase of 2.02 percentage points. As the gross profit margin for engineering contracting is relatively lower than that for design consulting, the growth rate of the company's main business costs exceeded that of its main business revenue | | Research and Development Expenses | 36,925,761.85 | 27,404,202.94 | 34.74 | The main reason is that R&D activities were not fully carried out or projects were delayed in Q1 last year due to the pandemic; this period, the company increased investment in architectural originality and technology according to project progress, leading to higher R&D investment compared to the same period last year | | Investment Income | 19,573,928.72 | 12,316,838.21 | 58.92 | Mainly due to increased investment income from long-term equity investments accounted for under the equity method compared to the same period last year | | Operating Profit | 86,700,590.37 | 24,860,428.57 | 248.75 | In 2020, the company's operating profit declined due to the COVID-19 pandemic; this period, benefiting from an increase in the gross profit of the company's main business, operating profit, total profit, net profit, and net profit attributable to parent company shareholders all increased compared to the same period last year | Significant Cash Flow Statement Item Changes (Current Period vs. Prior Year Same Period) | Account | Current Period Amount (Yuan) | Prior Year Same Period Amount (Yuan) | Change (%) | Reason for Change | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net Cash Flow from Operating Activities | -644,475,732.11 | -506,328,309.57 | -27.28 | Mainly due to increased payments for engineering contracting business and increased cash paid to and on behalf of employees compared to the same period last year | | Net Cash Flow from Investing Activities | 149,937,518.58 | -37,149,411.30 | 503.61 | Mainly due to increased cash received from partial recovery of Shentong Jinpu investment projects by the company's subsidiary | | Net Cash Flow from Financing Activities | 141,189,314.14 | 120,245,399.30 | 17.42 | Mainly due to decreased cash paid for repayment of borrowings compared to the same period last year | 3.2 Analysis of Progress, Impact, and Solutions for Significant Events The company's overseas subsidiary, Wilson & Associates, LLC, filed for bankruptcy liquidation in March 2021 due to operational decline, severe losses, and cash flow issues, and will be deconsolidated from March 2021 - The company's overseas subsidiary, Wilson & Associates, LLC, has experienced continuous operational decline in recent years, particularly in 2020 due to the global pandemic, which further deteriorated the market environment, leading to a significant drop in Wilson & Associates' operating revenue, severe losses, increased difficulty in accounts receivable collection, poor cash flow turnover, and a risk of capital chain rupture[16] - Wilson & Associates, LLC filed for bankruptcy liquidation for itself and its seven subsidiaries with the U.S. Delaware Bankruptcy Court on March 2, 2021, local time; as of March 6, 2021, the U.S. Delaware Bankruptcy Court had accepted all related bankruptcy liquidation applications[17] - Wilson & Associates, LLC will cease daily operations and transfer relevant information according to trustee instructions, thereby losing substantive control over Wilson & Associates, and will no longer be included in the consolidated scope from March 2021[17] 3.3 Commitments Not Fulfilled by the End of the Reporting Period During the reporting period, the company had no commitments that were overdue and unfulfilled - Not applicable, no commitments were overdue and unfulfilled during the reporting period[18] 3.4 Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Year-Ago Period from Year-Start to End of Next Reporting Period The company has not issued any warning or explanation regarding potential cumulative net profit loss or significant changes from year-start to the end of the next reporting period - Not applicable, the company has not issued relevant forecast warnings[18] Part IV. Appendix 4.1 Financial Statements This appendix contains the company's unaudited consolidated and parent company financial statements for Q1 2021, including balance sheets, income statements, and cash flow statements, with detailed data and comparisons Consolidated Balance Sheet As of March 31, 2021, consolidated total assets were 11.404 billion yuan, a slight 1.84% decrease; net assets attributable to shareholders grew 1.19%, with new leasing standards recognizing right-of-use assets and lease liabilities Key Consolidated Balance Sheet Items (March 31, 2021 vs. December 31, 2020) | Item | March 31, 2021 (Yuan) | December 31, 2020 (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Total Assets | 11,403,740,064.76 | 11,617,476,200.20 | -1.84 | | Cash and Cash Equivalents | 1,864,674,107.81 | 2,187,534,362.18 | -14.80 | | Accounts Receivable | 2,339,178,889.52 | 2,533,053,871.24 | -7.50 | | Inventories | 2,715,390,175.63 | 2,297,582,689.45 | 18.18 | | Right-of-Use Assets | 245,774,531.69 | - | New | | Lease Liabilities | 265,722,684.91 | - | New | | Total Liabilities | 8,041,698,872.75 | 8,317,227,300.65 | -3.31 | | Total Equity Attributable to Parent Company Owners | 3,017,605,271.73 | 2,982,164,681.94 | 1.19 | Parent Company Balance Sheet As of March 31, 2021, parent company total assets were 5.913 billion yuan, a 6.45% decrease; cash and other receivables decreased, and total liabilities fell by 13.00% Key Parent Company Balance Sheet Items (March 31, 2021 vs. December 31, 2020) | Item | March 31, 2021 (Yuan) | December 31, 2020 (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Total Assets | 5,913,279,038.89 | 6,320,970,312.20 | -6.45 | | Cash and Cash Equivalents | 1,199,734,502.50 | 1,348,320,889.97 | -11.02 | | Other Receivables | 1,069,403,168.49 | 1,357,442,811.68 | -21.22 | | Total Liabilities | 2,749,012,018.33 | 3,159,158,757.79 | -13.00 | | Total Owners' Equity | 3,164,267,020.56 | 3,161,811,554.41 | 0.08 | Consolidated Income Statement Q1 2021 consolidated total operating revenue grew 33.61% to 1.942 billion yuan, net profit increased 89.03% to 102 million yuan, and basic EPS was 0.1837 yuan Key Consolidated Income Statement Items (Q1 2021 vs. Q1 2020) | Item | Q1 2021 (Yuan) | Q1 2020 (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Total Operating Revenue | 1,942,254,076.13 | 1,453,660,967.26 | 33.61 | | Total Operating Costs | 1,871,005,312.04 | 1,433,966,429.51 | 30.48 | | Operating Profit | 86,700,590.37 | 24,860,428.57 | 248.75 | | Total Profit | 120,405,611.76 | 69,277,497.60 | 73.81 | | Net Profit | 102,323,688.93 | 54,130,841.35 | 89.03 | | Net Profit Attributable to Parent Company Shareholders | 95,274,052.39 | 59,504,079.70 | 60.11 | | Basic Earnings Per Share (Yuan/Share) | 0.1837 | 0.1147 | 60.16 | Parent Company Income Statement Q1 2021 parent company operating revenue was 15.22 million yuan, a slight decrease; net profit was -0.2902 million yuan, with losses significantly narrowing by 82.34% Key Parent Company Income Statement Items (Q1 2021 vs. Q1 2020) | Item | Q1 2021 (Yuan) | Q1 2020 (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Operating Revenue | 15,220,143.77 | 15,553,316.27 | -2.14 | | Operating Profit | -290,195.36 | -1,663,129.46 | 82.57 (Loss Narrowed) | | Net Profit | -290,195.36 | -1,643,007.46 | 82.34 (Loss Narrowed) | Consolidated Cash Flow Statement In Q1 2021, operating cash flow was -644 million yuan, decreasing 27.28%; investing cash flow was 150 million yuan, up 503.61% due to investment recoveries; financing cash inflow was 141 million yuan, up 17.42% Key Consolidated Cash Flow Statement Items (Q1 2021 vs. Q1 2020) | Item | Q1 2021 (Yuan) | Q1 2020 (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net Cash Flow from Operating Activities | -644,475,732.11 | -506,328,309.57 | -27.28 | | Net Cash Flow from Investing Activities | 149,937,518.58 | -37,149,411.30 | 503.61 | | Net Cash Flow from Financing Activities | 141,189,314.14 | 120,245,399.30 | 17.42 | | Net Increase in Cash and Cash Equivalents | -353,812,919.07 | -422,880,268.03 | 16.33 (Net Outflow Decreased) | Parent Company Cash Flow Statement Q1 2021 parent company operating cash flow was -5.3464 million yuan, with net outflow expanding; investing cash flow was 274 million yuan, turning positive; financing cash flow was -417 million yuan, with net outflow significantly increasing Key Parent Company Cash Flow Statement Items (Q1 2021 vs. Q1 2020) | Item | Q1 2021 (Yuan) | Q1 2020 (Yuan) | Change (%) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net Cash Flow from Operating Activities | -5,346,419.11 | -2,102,254.43 | -154.32 | | Net Cash Flow from Investing Activities | 273,964,759.80 | -183,861,868.87 | 249.06 | | Net Cash Flow from Financing Activities | -417,204,728.16 | -208,653,715.93 | -99.95 | | Net Increase in Cash and Cash Equivalents | -148,586,387.47 | -394,617,839.23 | 62.35 (Net Outflow Decreased) | 4.2 Adjustments to Financial Statements at the Beginning of the First Year of Implementation of New Leasing Standards from 2021 This section details adjustments to consolidated and parent company balance sheets from January 1, 2021, due to new leasing standards, primarily impacting the consolidated level with new right-of-use assets, lease liabilities, and adjustments to retained earnings and minority interests Consolidated Balance Sheet Due to new leasing standards, the consolidated balance sheet was adjusted on January 1, 2021, adding 272 million yuan in right-of-use assets, 287 million yuan in lease liabilities, and 17.63 million yuan in provisions, increasing total assets and liabilities while reducing equity Consolidated Balance Sheet Adjustments for New Leasing Standards (December 31, 2020 vs. January 1, 2021) | Item | December 31, 2020 (Yuan) | January 1, 2021 (Yuan) | Adjustment Amount (Yuan) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Right-of-Use Assets | - | 272,052,980.18 | 272,052,980.18 | | Lease Liabilities | - | 286,864,996.46 | 286,864,996.46 | | Provisions | - | 17,634,010.86 | 17,634,010.86 | | Retained Earnings | 1,358,591,326.80 | 1,326,443,233.53 | -32,148,093.27 | | Minority Interests | 318,084,217.61 | 317,786,283.74 | -297,933.87 | | Total Assets | 11,617,476,200.20 | 11,889,529,180.38 | 272,052,980.18 | | Total Liabilities | 8,317,227,300.65 | 8,621,726,307.97 | 304,499,007.32 | | Total Owners' Equity | 3,300,248,899.55 | 3,267,802,872.41 | -32,446,027.14 | Parent Company Balance Sheet The parent company balance sheet was not adjusted upon the first-time adoption of new leasing standards on January 1, 2021, with all items remaining consistent with December 31, 2020 - The parent company balance sheet was not adjusted upon the first-time adoption of new leasing standards on January 1, 2021, with all items remaining consistent with December 31, 2020[46][47][48][49] 4.3 Explanation of Retrospective Adjustment of Prior Period Comparative Data upon First-Time Adoption of New Leasing Standards from 2021 The company did not retrospectively adjust prior period comparative data to reflect the first-time adoption of new leasing standards - Not applicable, the company did not retrospectively adjust prior period comparative data[49] 4.4 Audit Report This quarterly report is unaudited - This quarterly report is unaudited[49]