森特股份(603098) - 2021 Q2 - 季度财报

Definitions Definitions of Common Terms This chapter defines abbreviations for company entities, related companies, and specific terms (e.g., "Reporting Period") used in the report, providing a basis for understanding the content - The report defines abbreviations for the company and its numerous wholly-owned, controlling, and participating subsidiaries, facilitating subsequent reading and understanding[14] Company Profile and Key Financial Indicators Company Basic Information This chapter provides the company's basic business registration information, including Chinese and English names, legal representative, registered address, stock listing information, and information disclosure channels Company Basic Information | Item | Information | | :--- | :--- | | Company Chinese Name | 森特士兴集团股份有限公司 | | Company Chinese Abbreviation | 森特股份 | | Stock Exchange | Shanghai Stock Exchange | | Stock Abbreviation | 森特股份 | | Stock Code | 603098 | Key Accounting Data and Financial Indicators In the first half of 2021, the company's operating revenue increased by 4.58% year-on-year, but net profit attributable to shareholders significantly decreased by 36.22%, mainly due to delayed project acceptance and settlement caused by the pandemic, leading to increased accounts receivable aging and higher bad debt provisions Key Accounting Data (Jan-Jun 2021) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YOY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,368,490,561.18 yuan | 1,308,498,927.84 yuan | 4.58 | | Net Profit Attributable to Shareholders | 56,556,662.98 yuan | 88,675,735.68 yuan | -36.22 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 55,785,657.44 yuan | 89,874,058.85 yuan | -37.93 | | Net Cash Flow from Operating Activities | -301,581,542.53 yuan | -320,090,425.19 yuan | -5.78 | Key Financial Indicators (Jan-Jun 2021) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YOY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.11 | 0.18 | -38.89 | | Weighted Average Return on Net Assets (%) | 2.35 | 4.21 | Decreased by 1.86 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | 2.31 | 4.27 | Decreased by 1.96 percentage points | - Gross profit margin for the reporting period was 18.72%, an increase of 1.24 percentage points from 17.48% in the prior year, while net profit declined due to increased bad debt provisions from delayed project acceptance and settlement caused by the pandemic[24] - Total non-recurring gains and losses for the reporting period amounted to 771,005.54 yuan, primarily from government subsidies and disposal gains/losses of non-current assets[25][28] Management Discussion and Analysis Industry and Main Business Overview The company maintains a dual-main business strategy focusing on high-end architectural metal enclosure systems and environmental comprehensive treatment, with the former benefiting from green building and BIPV policies, and the latter covering noise barriers and soil/groundwater remediation driven by policy - The company adopts a dual-main business development strategy, encompassing architectural decoration business (metal enclosure systems) and ecological protection and environmental governance business (noise barrier systems, soil and groundwater remediation)[32] - The architectural metal enclosure industry benefits from national policies promoting green buildings, prefabricated buildings, and the rapid development of Building Integrated Photovoltaics (BIPV) under "carbon peak and carbon neutrality" goals[32] - The soil remediation market within environmental business continues to grow driven by policies like "Soil Ten Articles," with industrial contaminated site funding reaching approximately 9.05 billion yuan in 2020, a year-on-year increase of about 30%[36] Company Main Products and Uses | Business Segment | Main Products | Features and Uses | | :--- | :--- | :--- | | Metal Enclosure Systems | Metal composite curtain wall panels, aluminum-magnesium-manganese alloy panels, coated baked panels | Applied to industrial and public buildings' roofs and walls, achieving insulation, waterproofing, and aesthetic functions | | Noise Barrier Systems | Concrete, plexiglass, foam metal noise barriers | Used for noise reduction on highways, railways, urban rail transit, and other areas | | Soil and Groundwater Remediation | SVE, air sparging, thermal desorption, chemical oxidation, and other technical services | Provides integrated services for investigation, assessment, and remediation construction for industrial contaminated sites | Analysis of Core Competencies The company's core competencies include extensive project experience and a high-end brand image, strong technical and product advantages, advanced construction techniques, customized and integrated service capabilities, and diversified business for risk resilience - The company targets the mid-to-high-end market, boasting benchmark projects like Mercedes-Benz, BMW, BOE industrial plants, Beijing Daxing International Airport, and Xiong'an Station, establishing a strong brand image[53] - The company holds 168 patents in China, including 44 invention patents, and collaborates with multiple universities, demonstrating strong R&D capabilities[60] - The company possesses a large and experienced construction management team, including 65 first-level registered constructors, with 56% of employees holding a bachelor's degree or higher[60] - The company's business spans industrial construction, public buildings, transportation engineering, and environmental governance, with diverse economic cycle characteristics across downstream industries enhancing its risk resistance and sustainable development capabilities[63] Discussion and Analysis of Operations In H1 2021, operating revenue slightly increased by 4.58% to 1.368 billion yuan, but net profit decreased by 36.22% due to higher bad debt provisions; however, new contract awards surged by 36.22% to 1.85 billion yuan, indicating strong business momentum, with strategic focus on international expansion and BIPV 2021 H1 Operating Performance | Indicator | Amount | YOY Change | | :--- | :--- | :--- | | Operating Revenue | 1.368 billion yuan | +4.58% | | Net Profit Attributable to Parent | 0.057 billion yuan | -36.22% | | Contract Awards | 1.85 billion yuan | +36.22% | - The company signed a strategic cooperation agreement with LONGi Green Energy Technology Co., Ltd. to jointly promote Building Integrated Photovoltaics (BIPV) product development and market expansion, seizing opportunities from "carbon neutrality"[64][68] - During the reporting period, the company won bids for key overseas projects, including the Hong Kong Airport Third Runway Passenger Terminal and Siem Reap Airport in Cambodia, further expanding its international business[64] - In March 2021, the company's controlling shareholder transferred 27.25% of its shares to LONGi Green Energy Technology Co., Ltd., introducing a significant strategic investor[68] Analysis of Key Operating Conditions This chapter details the reporting period's operating results, asset-liability status, and investment activities, showing a 32.13% increase in administrative expenses due to policy changes and depreciation, significant increases in inventory and prepayments to counter raw material price hikes, and new subsidiary establishments for business expansion Analysis of Main Business During the reporting period, the company's revenue and costs slightly increased, while administrative expenses significantly rose by 32.13% due to the cancellation of social security reduction policies and increased depreciation from new building usage; net cash flow from financing activities substantially increased due to new bank loans Major Financial Statement Item Changes | Item | Current Period (yuan) | Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,368,490,561.18 | 1,308,498,927.84 | 4.58 | | Administrative Expenses | 46,440,155.29 | 35,146,673.41 | 32.13 | | Net Cash Flow from Operating Activities | -301,581,542.53 | -320,090,425.19 | -5.78 | | Net Cash Flow from Financing Activities | 56,599,299.67 | -44,495,583.70 | -227.20 | Analysis of Assets and Liabilities As of the end of the reporting period, total assets slightly decreased by 1.11% from the end of the previous year; inventory and prepayments significantly increased by 40.35% and 78.08% respectively to cope with rising raw material prices, while monetary funds decreased by 37.04%; convertible bonds were fully redeemed or converted to shares, resulting in a zero balance Major Asset and Liability Item Changes | Item Name | Current Period End (yuan) | Prior Year End (yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 534,545,776.78 | 849,028,291.16 | -37.04 | Increased material reserves and bill settlements | | Inventory | 171,907,404.18 | 122,484,302.79 | 40.35 | Increased material reserves to cope with rising raw material prices | | Prepayments | 98,664,360.43 | 55,403,681.48 | 78.08 | Increased prepayments for materials | | Bonds Payable | 0 | 554,858,448.35 | -100.00 | Convertible bonds converted to shares and redeemed | Analysis of Investment Status During the reporting period, the company actively pursued external equity investments, establishing three new wholly-owned subsidiaries: Senter Digital Investment (Xiamen), Shanghai Senhuanzhu, and Longsen New Energy, and co-investing in Shanghai Ruiling Energy-Saving Materials Co., Ltd - During the reporting period, the company established three new wholly-owned subsidiaries: Senter Digital Investment (Xiamen) Technology Co., Ltd., Shanghai Senhuanzhu Environmental Governance Co., Ltd., and Longsen New Energy Co., Ltd[76] - The company co-invested with Ningbo Ruiling New Energy Technology Co., Ltd. to establish Shanghai Ruiling Energy-Saving Materials Co., Ltd., with the company holding a 49% stake[76] Analysis of Major Holding and Participating Companies This chapter discloses the operating conditions and key financial data of the company's major holding and participating subsidiaries; wholly-owned subsidiary Beijing Yexing achieved a net profit of 2.465 million yuan in H1 2021, while several newly established or early-stage subsidiaries incurred losses Major Subsidiary H1 Financial Indicators (2021 H1) | Company Name | Total Assets (yuan) | Net Assets (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | | Beijing Yexing | 229,402,207.74 | 8,154,770.27 | 2,465,045.08 | | Senter Construction | 18,542,435.70 | 17,913,690.82 | -65,631.50 | | Guangzhou Gongkong | 49,391,628.74 | 49,246,037.34 | -753,962.68 | Major Participating Company H1 Financial Indicators (2021 H1) | Company Name | Shareholding Ratio | Net Profit (yuan) | | :--- | :--- | :--- | | Huayong Environment | 30.00% | -11,694,412.52 | | Meili Huaxia | 20.00% | -7,896,632.49 | | Zhongjian Huanke | 40.00% | -7,360,667.48 | Potential Risks The company faces risks including macroeconomic fluctuations and policy changes affecting downstream industry investments, rising prices of key raw materials like steel and aluminum, increasing labor costs, and uncertainties from the ongoing domestic and international COVID-19 pandemic - The company's main risks include: - Macroeconomic and policy risks: Downstream industry investments are highly susceptible to macroeconomic cycles and government regulation - Raw material price increase risk: Significant increases in prices of steel, aluminum products, and other key raw materials may adversely affect profitability - Labor cost increase risk: Imbalances in labor supply and demand may lead to continuously rising labor procurement costs - Pandemic risk: The domestic and international pandemic situation may bring uncertainties to the company's production and operations[90][93] Corporate Governance Corporate Governance and Executive Changes During the reporting period, the company held two shareholder meetings; due to the introduction of strategic investor LONGi Green Energy, significant changes occurred in the board of directors, supervisory board, and senior management, with new directors, supervisors, and general manager recommended by LONGi Green Energy elected; no profit distribution or capital reserve capitalization plan was proposed for this period - Following LONGi Green Energy's becoming a significant shareholder, as per the share transfer agreement, LONGi Green Energy recommended 1 general manager, 2 directors, and 1 supervisor to the company, who have since been elected by the shareholders' meeting[98] - The company's board of directors resolved that there is "no" profit distribution plan or capital reserve capitalization plan for the current reporting period[99] Environmental and Social Responsibility Environmental Information During the reporting period, the company and its major subsidiaries were not identified as key pollutant-discharging entities by environmental protection authorities, thus requiring no special environmental information disclosure - The company and its major subsidiaries are not classified as key pollutant-discharging entities by environmental protection authorities[103] Significant Matters Fulfillment of Commitments During and continuing into the reporting period, the company's actual controllers, shareholders, and acquirer (LONGi Green Energy) and other related parties strictly fulfilled all commitments made in acquisition reports, initial public offerings, and refinancing activities, including share lock-ups, avoiding horizontal competition, and reducing related-party transactions - The company's actual controllers, shareholders, related parties, and acquirer, among other committed parties, promptly and strictly fulfilled all commitments during the reporting period[106][109][112] Major Lawsuits and Arbitrations During the reporting period, the company was involved in multiple major lawsuits and arbitrations, primarily concerning engineering or goods payment disputes; some cases are ongoing or under trial, with the construction contract dispute case with Liaoning Airport Management Group being appealed again by the company after the first-instance judgment was remanded for retrial Overview of Major Lawsuits and Arbitrations | Plaintiff | Defendant | Type of Lawsuit/Arbitration | Amount Involved (ten thousand yuan) | Progress | | :--- | :--- | :--- | :--- | :--- | | Senter Stock | Qiantu Auto (Suzhou) | Arbitration | 712.35 | Under compulsory enforcement | | Senter Stock | AVIC Construction Engineering | Lawsuit | 1,027.25 | Transferred to court, property preservation being coordinated | | Senter Stock | Beijing Urban Construction Jinggong | Lawsuit | 613.49 | Opponent has paid part of the amount, court facilitating mediation | | Liaoning Airport Management Group | Senter Stock | Lawsuit | 2,750.42 | First-instance judgment remanded for retrial, company appealed again against new judgment | | Beijing Shengde Chengxin Business & Trade | Senter Stock | Lawsuit | 775.00 | Company appealed against first-instance judgment, awaiting second-instance judgment | Major Related-Party Transactions During the reporting period, the company's major related-party transactions primarily involved the actual controllers, Liu Aisen and Li Guiru, providing related-party guarantees for the company's bank credit lines and loans, with an actual guarantee amount of 2.55 billion yuan in the first half, providing necessary financial support for normal operations - From January to June 2021, the actual amount of related-party guarantees provided by the company's actual controllers, Liu Aisen and Li Guiru, for the company's bank credit lines and loans was 2.55 billion yuan[137] Major Contracts During the reporting period, the company won bids for two major projects: "JD Warehousing and Logistics Park Project Enclosure Structure Strategic Procurement Project" and "Hong Kong International Airport Third Runway Hall and Apron Metal Roofing Project," with a combined winning bid amount exceeding 1 billion yuan, positively impacting the company's future performance Major Contracts Awarded During Reporting Period | Project Name | Winning Bid Amount (yuan) | | :--- | :--- | | JD 2020 - JD Warehousing and Logistics Park Project Enclosure Structure Strategic Procurement Project | 464,256,551.00 | | Hong Kong International Airport Third Runway Hall and Apron Metal Roofing Project | 600,000,000.00 | Share Changes and Shareholder Information Share Capital Changes During the reporting period, due to the conversion of "Senter Convertible Bonds," the company's total share capital increased from approximately 480 million shares to approximately 539 million shares, an increase of 58,780,136 shares - Due to the conversion of "Senter Convertible Bonds," the company's total share capital increased from 480,019,842 shares to 538,799,978 shares[148][151][152] Shareholder Information As of the end of the reporting period, the company had 48,487 common shareholders; among the top ten shareholders, Liu Aisen was the largest with 25.10% stake, and new strategic investor LONGi Green Energy Technology Co., Ltd. was the second largest with 24.28% Top Ten Shareholders' Holdings as of End of Reporting Period | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | Liu Aisen | 135,226,381 | 25.10 | | LONGi Green Energy Technology Co., Ltd. | 130,805,407 | 24.28 | | Beijing Shixing Shengya Investment Co., Ltd. | 57,662,696 | 10.70 | | Weng Jiaen | 20,930,000 | 3.88 | | Zhuque Fund - Shanmei Zhuque New Energy Industry Single Asset Management Plan | 16,500,000 | 3.06 | Bond-Related Information Convertible Corporate Bonds The "Senter Convertible Bonds" issued by the company in December 2019 triggered conditional redemption during the reporting period; the company exercised its early redemption right, and as of April 30, 2021, the bonds were fully converted and redeemed, delisted from the Shanghai Stock Exchange, with a zero balance at period end - During the reporting period, the company's convertible bonds "Senter Convertible Bonds" had a cumulative conversion amount of 594.293 million yuan, converting into 58,780,136 shares[168] - Due to the company's stock price triggering the conditional redemption clause, the company implemented early redemption of "Senter Convertible Bonds," which were delisted from the Shanghai Stock Exchange on April 30, 2021, with a zero balance at period end[174][171] Financial Report Financial Statements This chapter provides the company's consolidated and parent company financial statements for H1 2021, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, showing total assets of approximately 4.96 billion yuan, total liabilities of approximately 2.25 billion yuan, operating revenue of 1.368 billion yuan, and net profit of 0.056 billion yuan for the first half Key Consolidated Financial Statement Data (As of June 30, 2021) | Indicator | Amount (yuan) | | :--- | :--- | | Balance Sheet: | | | Total Assets | 4,959,089,148.96 | | Total Liabilities | 2,251,485,231.11 | | Equity Attributable to Parent Company Owners | 2,687,742,405.09 | | Income Statement (Jan-Jun 2021): | | | Total Operating Revenue | 1,368,490,561.18 | | Net Profit | 56,232,792.68 | | Net Profit Attributable to Parent Company Shareholders | 56,556,662.98 | | Cash Flow Statement (Jan-Jun 2021): | | | Net Cash Flow from Operating Activities | -301,581,542.53 | | Net Cash Flow from Investing Activities | -32,985,055.15 | | Net Cash Flow from Financing Activities | 56,599,299.67 | Notes to Financial Statements Notes to the financial statements detail the company's basic information, consolidation scope, significant accounting policies and estimates, taxes, and specific components of each statement item; during the reporting period, three new subsidiaries were consolidated and one was deregistered; new lease accounting standards were adopted from January 1, 2021; the company, as a high-tech enterprise, enjoys a 15% corporate income tax preferential rate - During the reporting period, the company established three new subsidiaries: Senter Digital Investment, Shanghai Senhuanzhu, and Longsen New Energy, and deregistered Senter Xupulin Environmental Governance Co., Ltd[589] - The company adopted new lease accounting standards from January 1, 2021, making corresponding adjustments to its accounting policies[380] - The company is recognized as a high-tech enterprise, enjoying a 15% preferential corporate income tax rate[389]