Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(A joint stock company incorporated in the People's Republic of China with limited liability)
(H Share Stock code: 00317)
SUMMARY OF THE 2020 INTERIM REPORT
§1 IMPORTANT NOTICES
- The financial information contained in this summary of the interim report (the "Report") for the six months ended 30 June 2020 (the "Reporting Period") of CSSC Offshore & Marine Engineering (Group) Company Limited (hereinafter referred to as "COMEC" or the "Company", together with its subsidiaries, the "Group") is prepared in accordance with the PRC Accounting Standards for Business Enterprises and Relevant Regulations (the "Accountant Standards and Regulations"), and the financial information contained in this summary has been reviewed and confirmed by the Audit Committee.
- All Directors of the Company attended the 29th meeting of the ninth session of the Board held on 28 August 2020, of which Mr. Chen Zhongqian, an executive Director, appointed Mr. Chen Ji, an executive Director, to attend and vote at the meeting on his behalf; Mr. Sheng Jigang, an executive Director, appointed Mr. Xiang Huiming, an executive Director, to attend and vote at the meeting on his behalf; Mr. Shi Jun, a non-executive Director, appointed Mr. Han Guangde, an executive Director, to attend and vote at the meeting on his behalf. The 2020 interim report was unanimously approved at the meeting.
- The 2020 interim financial report of the Company is unaudited.
- The Report is a summary of the full text of the 2020 interim report. Investors are advised to carefully read the full text of such report for details.
-
The Report is made pursuant to Rule 13.49(6) of the Rules Governing the Listing of Securities
(the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). - The Report is prepared in both English and Chinese. In the event that different interpretations occur, the Chinese version shall prevail.
1
§2 BASIC INFORMATION OF THE COMPANY
2.1 Key financial information and indicators 2.1.1 Key accounting figures
Unit: RMB Yuan | |||||||||
Reporting Period | Corresponding | ||||||||
Key accounting information | (From January to | Change (%) | |||||||
period of last year | |||||||||
June) | |||||||||
Operating income | 4,293,181,183.56 | 7,816,085,319.68 | -45.07 | ||||||
Net profit attributable to | 3,102,837,570.74 | 390,750,329.92 | 694.07 | ||||||
shareholders of the Company | |||||||||
Net profit attributable to | |||||||||
shareholders of the Company after | -298,961,032.30 | -421,908,383.84 | Not applicable | ||||||
deduction of non-recurring gains | |||||||||
and losses | |||||||||
Net cash flows from operating | -2,737,517,979.55 | -3,200,477,314.96 | Not applicable | ||||||
activities | |||||||||
As at the end of the | As at the end of | Change (%) | |||||||
Reporting Period | last year | ||||||||
Net assets attributable to | 13,403,584,460.53 | 10,148,256,838.77 | 32.08 | ||||||
shareholders of the Company | |||||||||
Total assets | 37,238,825,773.31 | 52,304,069,154.98 | -28.80 | ||||||
2.1.2 Key financial indicators | |||||||||
Reporting | Corresponding | ||||||||
Period (From | |||||||||
Key financial indicators | period of last | Change (%) | |||||||
January to | |||||||||
year | |||||||||
June) | |||||||||
Basic earnings per share (RMB | 2.1951 | 0.2764 | 694.18 | ||||||
Yuan/share) | |||||||||
Diluted earnings per share (RMB | 2.1951 | 0.2764 | 694.18 | ||||||
Yuan/share) | |||||||||
Basic earnings per share after deduction | -0.2115 | -0.2985 | Not applicable | ||||||
of non-recurring gains and losses | |||||||||
(RMB/share) | |||||||||
Weighted average return on equity (%) | 27.37 | 3.93 | Increase of 23.44 | ||||||
percentage points | |||||||||
Weighted average return on equity after | -2.64 | -4.25 | Increase of 1.61 | ||||||
deduction of non-recurring gains and | percentage points | ||||||||
losses (%) |
2
2.1.3 Extraordinary items and their amounts
Unit: RMB Yuan | ||
Extraordinary items | Amount | Note (where |
applicable) | ||
Gain or loss on disposal of non-current assets | -665,959.82 | |
Government grants included in current profit or | ||
loss, except for those closely relevant to normal | ||
business of the company, conformed to | 28,832,150.29 | |
requirements of State policy, granted on fixed | ||
amount basis or enjoyed on continuous fixed | ||
amount basis subject to certain standard | ||
Gain from the excess of the fair value of the | 1,760,005.87 | |
identifiable net assets of investee companies on | ||
acquisition of the investment over the cost of | ||
investment in the Company's subsidiaries, | ||
associates and joint ventures | ||
Gain or loss on entrusted investments or assets | 2,293,150.68 | |
under management | ||
Gain or loss on changes in fair value of | ||
financial assets held-for-trading, derivative | ||
financial assets, financial liabilities held-for- | ||
trading and derivative financial liabilities, and | ||
investment income from disposal of financial | ||
assets held-for-trading, derivative financial | -41,730,221.33 | |
assets, financial liabilities held-for-trading, | ||
derivative financial liabilities and other debt | ||
investment, except for effective hedging | ||
transactions that are closely related to the | ||
Company's normal operation | ||
Reversal of the provision for impairment of | ||
receivables and contract assets which are tested | 20,000.00 | |
individually for impairment | ||
Other non-operating income and expenses | 464,186.07 | |
apart from the aforesaid items | ||
3,389,119,929.67 | Investment gains of | |
RMB3.39 billion from | ||
Other gain or loss items meeting the definition | the disposal of equity of | |
of non-recurring gains or losses | GSI was recognised and | |
included into non- | ||
recurring gain or loss | ||
Effect of minority interests | 12,236,269.74 | |
Effect of income tax | 9,469,091.87 | |
Total | 3,401,798,603.04 | |
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§3 STAFF AND REMUNERATION POLICY
The remuneration of the employees of the Group includes salaries, bonuses and other fringe benefits prescribed by the government. The Group applies different rates of remuneration for different employees, which are determined based on their positions and performance pursuant to the relevant PRC laws and regulations. As at 30 June 2020, the Group had a total of 7,622 employees. For the period ended 30 June 2020, the remuneration paid by the Group to employees was RMB640 million in aggregate.
§4 MANAGEMENT'S DISCUSSION AND ANALYSIS
4.1 Discussion and analysis of overall operation during the Reporting Period
(1) Development of the shipbuilding market in the first half of 2020
The COVID-19 epidemic has caused certain impacts on the international shipping industry, the operation of the international industrial chain, supply chain, trade chain and capital chain has been hindered, and the global shipping trade has shrunk. In the first half of 2020, according to the statistics of the Clarksons Research Corporation in the United Kingdom, the new shipbuilding orders around the world only amounted to 17.58 million DWT (deadweight tonnage) ("DTW") and US$13.8 billion, representing a decrease of 50% and 62% compared with the corresponding period of last year, which is the lowest level in the new century. The global production and operation capacity amounted to 46.14 million DWT, representing a decrease of 12% compared with the corresponding period of last year, which is the lowest level since the financial crisis in 2008. As of the end of June, the volume of global orders in hand only amounted to 163 million DWT, a decrease of 4.4% compared with the beginning of the year, which is a record low since 2004. In addition, since the orders on hand have shrunk, the market competition has further intensified. The price of new ships has been slightly recovered at the beginning of 2020. As of the end of June, the Clarkson new ship price index was 127 points, down 3 points from the beginning of the year.
The order volumes of the PRC shipbuilders are relatively positive. Taking advantage of the relatively active demands from domestic shipowners, in the first half of 2020, the PRC shipbuilders undertook a total of 11.58 million DWT orders, accounting for 66% of the global market share while the Japan and Koran shipyards undertook 1.51 million DWT and 4.10 million DWT orders, respectively, accounting for 9% and 23% of the global market shares, respectively.
(2) Operation of the Group
During the Reporting Period, the Group secured new shipbuilding orders with contract value of RMB2,219 million, representing a decrease of 74.70% compared with the corresponding period of last year; operating income of the Group prepared in accordance with the Accounting Standards for Business Enterprises amounted to RMB4,293 million, representing a decrease of 45.07% compared with the corresponding period of last year, which was mainly due to the completion of transfer of the controlling interest of Guangzhou Shipyard International Company Limited ("GSI") during the Reporting Period, the continued downturn in the shipbuilding market and the impact of the COVID- 19 epidemic. Net profit attributable to the shareholders of the Company amounted to RMB3,103 million. Earnings per share were RMB2.1951, and earnings per share after deduction of non- recurring gains and losses were RMB-0.2115.
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4.2 Main business analysis
4.2.1 Analysis of changes in relevant items in the financial statements
Unit: RMB Yuan | |||
Corresponding | |||
Item | Reporting Period | period of last | Change (%) |
year | |||
Operating income | 4,293,181,183.56 | 7,816,085,319.68 | -45.07 |
Operating costs | 4,061,243,529.52 | 7,626,860,800.81 | -46.75 |
Selling expenses | 23,242,577.85 | 8,547,839.97 | 171.91 |
Administrative expenses | 259,745,214.38 | 374,142,028.48 | -30.58 |
Finance cost | -75,593,784.39 | 86,228,563.48 | -187.67 |
Research and development | 251,764,193.06 | 226,390,380.65 | 11.21 |
expense | |||
Net cash flows from operating | -2,737,517,979.55 | -3,200,477,314.96 | Not applicable |
activities | |||
Net cash flows from investing | -4,999,087,021.99 | -1,369,802,592.40 | Not applicable |
activities | |||
Net cash flows from financing | 291,627,450.31 | 894,637,628.77 | -67.40 |
activities |
- Reason for change in operating income: mainly due to the factors such as the completion of transfer of the controlling interest of GSI during the Reporting Period, the amount for the Period only consolidated the data of GSI from January to February, the persistent downturn in the shipbuilding market and the impact of the COVID-19 epidemic.
- Reason for change in operating costs: mainly due to the completion of transfer of the controlling interest of GSI during the Reporting Period, the amount for the Period only consolidated the data of GSI from January to February, the persistent downturn in the shipbuilding market and the impact of the COVID-19 epidemic.
- Reason for change in selling expenses: mainly due to the year-on-year decrease in compensation for the first set of insurance recognised during the Reporting Period.
- Reason for change in administrative expenses: mainly due the completion of disposal of the equity of GSI and the amount for the Period only consolidated the data of GSI from January to February.
-
Reason for change in finance cost: mainly due to combined effects of the completion of disposal of the equity of GSI, the amount for the Period only consolidate the data of GSI from January to February and the changes in exchange rates of CSSC Huangpu Wenchong Shipbuilding Company Limited ("Huangpu Wenchong") which led to the decrease in net exchange loss during the
Reporting Period. - Reason for change in research and development expense: mainly due to the increase in research and development by Huangpu Wenchong during the Reporting Period.
5
- Reason for change in net cash flow from operating activities: mainly due to the decrease in the rate of the progress of collection during the Reporting Period being lower than the progress of payment.
- Reason for change in net cash flow from investing activities: mainly due to the completion of disposal of the equity of GSI, the cash balance at the end of the Period was reclassified to "Other cash payments relating to investing activities".
- Reason for change in net cash flow from financing activities: mainly due to the decrease in net amount in financing during the Reporting Period.
4.2.2 Details of the composition of the Company's profits or material changes of the sources of profits
Unit: RMB Yuan | ||||
Reporting | Corresponding | |||
Item | period of last | Change (%) | Reason for change | |
Period | ||||
year | ||||
The completion of the disposal | ||||
of equity of GSI and the amount | ||||
Taxes and surcharges | 15,586,633.76 | 32,793,624.08 | -52.47 | for the Period only consolidated |
the data of GSI from January to | ||||
February. | ||||
Increase in government grants | ||||
Other income | 21,351,992.29 | 5,517,547.40 | 286.98 | received for this item during the |
Reporting Period. | ||||
The recognition of investment | ||||
Investment income | 3,373,579,240.59 | -200,623,239.54 | Not applicable | income during the disposal of |
equity of GSI. | ||||
Due to the year-on-year increase | ||||
Gain on change in | in the unrealised loss on | |||
-30,624,591.00 | 264,450,151.28 | -111.58 | financial derivatives held as a | |
fair value | ||||
result of exchange rate | ||||
fluctuations. | ||||
Loss on impairment | The year-on-year decrease in the | |||
of credit (Loss is | 4,685,877.27 | -8,451,275.85 | Not applicable | |
provision for bad debts. | ||||
listed with "-") | ||||
Loss on impairment | The year-on-year increase in | |||
provision for contract | ||||
of asset (Loss is | -168,731,612.95 | -69,618,896.09 | Not applicable | |
performance cost impairment of | ||||
listed with "-") | ||||
assets. | ||||
Gains from disposal | - | -249,851.06 | Not applicable | There was no gain and loss from |
of asset | disposal of assets. | |||
Guangzhou Wenchong | ||||
Dockyard Co., Ltd., | ||||
("Wenchong Dockyard") | ||||
Non-operating | 4,002,590.52 | 1,253,089,251.01 | -99.68 | recognised a net gain for phase I |
expenses | of the land relocation | |||
compensation of RMB1.248 | ||||
billion in the corresponding | ||||
period of last year. | ||||
Income tax expense | 16,242,996.39 | 93,984,992.93 | -82.72 | The year-on-year decrease in the |
deferred income tax expenses. | ||||
6
4.2.3 Analysis of assets and liabilities
Unit: RMB Yuan
Proportion | Proportion | Change of | ||||
amount at the end | ||||||
among total | among total | |||||
Amount at the end | Amount at the end | of current period | ||||
Name of project | assets at the | assets at the | Description | |||
of current period | of last period | compared with | ||||
end of current | end of last | |||||
that of the end of | ||||||
period (%) | period (%) | |||||
last period (%) | ||||||
Held-for-trading | 4,180,994.91 | 0.01 | 47,015,330.33 | 0.10 | -91.11 | The completion of the disposal of equity of GSI during the Reporting |
financial assets | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
Accounts | 1,297,442,024.44 | 3.48 | 3,514,084,587.92 | 7.39 | -63.08 | The completion of the disposal of equity of GSI during the Reporting |
receivable | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
Prepayments | 1,731,478,929.23 | 4.65 | 3,632,961,295.56 | 7.64 | -52.34 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Other receivables | 140,567,310.86 | 0.38 | 993,612,135.28 | 2.09 | -85.85 | The completion of the disposal of equity of GSI during the Reporting |
Period, GSI was excluded from the amount at the end of current period, | ||||||
and the receipt of relocation compensation by Wenchong Dockyard, a | ||||||
subsidiary, during the Reporting Period. | ||||||
Inventories | 3,542,248,384.76 | 9.51 | 5,531,246,793.46 | 11.63 | -35.96 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Contract assets | 5,060,551,287.22 | 13.59 | 7,516,302,519.33 | 15.80 | -32.67 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Assets held for sale | 641,647,147.54 | 1.72 | - | - | Not applicable | At the end of the Reporting Period, the equity delivery procedures of the |
transfer in equity of of CSSC Chengxi Yangzhou Shipbuilding | ||||||
Company Limited ("Chengxi Yangzhou") had not been completed, and | ||||||
the relevant long-term equity investment was classified into held for | ||||||
sales | ||||||
Non-current assets | - | - | 400,000,000.00 | 0.84 | -100.00 | At the end of the Reporting Period, the balance of long-term entrusted |
due within one year | wealth management products due within one year was zero. | |||||
Other current assets | 1,248,798,646.48 | 3.35 | 243,646,496.83 | 0.51 | 412.55 | At the end of the Reporting Period, the balance of entrusted wealth |
increased for RMB720 million, and the balance of VAT tax | ||||||
retaining/credit increased for 178 million. | ||||||
Long-term equity | 4,820,918,817.28 | 12.95 | 740,036,766.87 | 1.56 | 551.44 | The completion of the disposal of equity of GSI during the Reporting |
investments | Period, and the remaining equity are measured at fair value and | |||||
accounted for using the equity method, as well as the equity of CSSC | ||||||
Chengxi Yangzhou was classified into held for sales at the end of the | ||||||
Reporting Period. | ||||||
Investments in | 3,829,873,557.03 | 10.28 | 71,478,588.58 | 0.15 | 5,258.07 | The completion of the disposal of equity of GSI during the Reporting |
other equity | Period, and the counterparty uses the issuance of shares as the | |||||
instruments | transaction consideration and hence the increase in the investments in | |||||
equity instruments. | ||||||
Investment | - | - | 21,308,295.44 | 0.04 | -100.00 | The completion of the disposal of equity of GSI during the Reporting |
properties | Period, and the balance of investment properties at the end of the | |||||
Reporting Period was zero. | ||||||
Fixed assets | 3,870,855,033.74 | 10.39 | 11,662,555,258.81 | 24.52 | -66.81 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Intangible assets | 758,839,573.32 | 2.04 | 2,053,979,115.18 | 4.32 | -63.06 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI is excluded from the amount at the end of current year. | ||||||
Goodwill | - | - | 144,231,195.67 | 0.30 | -100.00 | The completion of the disposal of equity of GSI during the Reporting |
Period, and the balance of goodwill at the end of the Reporting Period | ||||||
was zero. | ||||||
Long-term prepaid | 5,905,421.04 | 0.02 | 83,338,711.86 | 0.18 | -92.91 | The completion of the disposal of equity of GSI during the Reporting |
expenses | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
Other non-current | 77,982,795.52 | 0.21 | 26,470,552.78 | 0.06 | 194.60 | At the end of the Reporting Period, the balance of non-current |
assets | prepayment increased. | |||||
Short-term | 2,460,355,881.93 | 6.61 | 7,524,383,875.11 | 15.82 | -67.30 | The completion of the disposal of equity of GSI during the Reporting |
borrowings | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
Financial liabilities | 109,244,763.92 | 0.29 | 202,774,080.82 | 0.43 | -46.12 | The completion of the disposal of equity of GSI during the Reporting |
held-for-trading | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
7 |
Notes payable | 941,011,081.06 | 2.53 | 1,850,172,981.45 | 3.89 | -49.14 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Accounts payable | 4,569,667,423.85 | 12.27 | 8,263,699,493.42 | 17.38 | -44.70 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Advances from | 491,554,218.00 | 1.32 | - | - | Not applicable | At the end of the Reporting Period, the balance of equity transfer funds |
customers | received in advance from Chengxi Yangzhou was RMB492 million. | |||||
Taxes payable | 15,951,559.69 | 0.04 | 75,307,785.25 | 0.16 | -78.82 | The completion of the disposal of equity of GSI during the Reporting |
Period, GSI was excluded from the amount at the end of current period, | ||||||
and the balance of income tax payables at the end of the Reporting | ||||||
Period decreased. | ||||||
Other payables | 156,910,922.99 | 0.42 | 284,772,011.61 | 0.60 | -44.90 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Non-current | 2,218,603,513.24 | 5.96 | 1,489,900,000.00 | 3.13 | 48.91 | The completion of the disposal of equity of GSI during the Reporting |
liabilities due | Period, and GSI was excluded from the amount at the end of current | |||||
within one year | period. | |||||
Other current | 162,588,988.49 | 0.44 | 233,992,036.02 | 0.49 | -30.52 | The completion of the disposal of equity of GSI during the Reporting |
liabilities | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
Long-term | 3,053,544,337.74 | 8.20 | 4,721,457,000.00 | 9.93 | -35.33 | The completion of the disposal of equity of GSI during the Reporting |
borrowings | Period, and GSI was excluded from the amount at the end of current | |||||
period. | ||||||
Estimated liabilities | 249,931,921.53 | 0.67 | 685,301,841.13 | 1.44 | -63.53 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
period. | ||||||
Deferred income | 156,713,952.31 | 0.42 | 73,859,885.16 | 0.16 | 112.18 | At the end of the Reporting Period, the balance of government subsidies |
used to compensate related costs or losses in subsequent periods | ||||||
increased. | ||||||
Deferred tax | 241,531,191.44 | 0.65 | 6,949,522.36 | 0.01 | 3,375.51 | During the Reporting Period, changes in fair value of |
liabilities | investment in other equity instruments were recognised an | |||||
increase in deferred tax liabilities. | ||||||
Other | 662,264,282.21 | 1.78 | -38,046,780.32 | -0.08 | Not applicable | During the Reporting Period, the net after-tax changes in fair |
comprehensive | value of investment in other equity instruments increased. | |||||
income | ||||||
Special reserve | - | - | 1,224,467.93 | 0.00 | -100.00 | At the end of the Reporting Period, the balance of the provision on work |
safety fees was zero. | ||||||
Undistributed profit | 1,494,085,803.63 | 4.01 | -1,762,952,145.45 | -3.71 | Not applicable | At the end of the Reporting Period, the net gains or losses increased. |
Minority interests | 3,330,014,685.33 | 8.94 | 5,017,606,971.93 | 10.55 | -33.63 | The completion of the disposal of equity of GSI during the Reporting |
Period, and GSI was excluded from the amount at the end of current | ||||||
year. |
8
4.2.4 Principal businesses by product and by region
Unit: RMB Yuan | ||||
Principal businesses by product | ||||
Current period | Corresponding period of last year | |||
Product name | ||||
Principal | Principal | Principal | Principal operating | |
operating income | operating costs | operating income | costs | |
Ship products | 3,077,585,661.50 | 2,994,497,444.65 | 6,396,382,932.72 | 6,408,256,088.84 |
Offshore engineering products | 105,645,690.20 | 114,357,275.36 | 320,174,444.06 | 308,775,195.75 |
Steel structure | 605,871,872.62 | 566,416,293.66 | 357,375,955.95 | 336,439,069.43 |
Ship maintenance and renovation | 250,019,839.88 | 190,538,170.88 | 350,573,955.00 | 283,999,906.72 |
Electromechanical products and others | 174,230,482.46 | 138,060,864.73 | 353,730,044.91 | 274,739,504.22 |
Total | 4,213,353,546.66 | 4,003,870,049.28 | 7,778,237,332.64 | 7,612,209,764.96 |
Principal businesses by region | ||||
Current period | Corresponding period of last year | |||
Region | ||||
Principal | Principal | Principal | Principal operating | |
operating income | operating costs | operating income | costs | |
China (including Hong Kong, Macau and | 3,139,489,487.26 | 2,874,921,896.24 | 4,288,158,574.46 | 3,927,968,512.95 |
Taiwan) | ||||
Other regions in Asia | 267,951,335.87 | 308,846,613.87 | 465,016,224.86 | 482,841,130.20 |
Europe | 367,886,390.41 | 401,631,502.32 | 1,453,931,398.50 | 1,565,932,402.43 |
Oceania | 251,106,911.37 | 244,018,968.67 | 452,946,939.48 | 457,191,994.41 |
North America | 75,098,988.95 | 54,197,998.96 | 185,390,271.74 | 209,953,701.35 |
Africa | 111,820,432.80 | 120,253,069.22 | 905,706,498.41 | 927,314,539.90 |
South America | - | - | 27,087,425.19 | 41,007,483.72 |
Total | 4,213,353,546.66 | 4,003,870,049.28 | 7,778,237,332.64 | 7,612,209,764.96 |
9
4.3 Analysis of investment status
4.3.1 Information on equity investments
As at the end of the Reporting Period, the balance of the long-term equity investments of the Group amounted to RMB4,820,918,800, representing an increase of 539.64% from RMB753,695,000 as at the beginning of the year, mainly due to the combined effect of the disposal of equity of GSI with loss of controlling interest during the Reporting Period, and the remaining equity was measured at fair value and accounted for using the equity method, as well as the equity delivery procedures of the transfer in equity of Chengxi Yangzhou had not been completed at the end of the Reporting Period, and the relevant long-term equity investment was classified into held for sales.
4.4 Non-raised funds investment projects
During the Reporting Period, the Company had no investment projects for raised funds.
§5 SIGNIFICANT EVENTS
5.1 Assets transactions and merger of enterprises
5.1.1 Equity sale
The Company considered and approved the resolutions in relation to the significant asset disposal and connected transaction at the 13th meeting of the ninth session of the board of directors (the "Board") held on 4 April 2019, the 16th meeting of the ninth session of the Board held on 7 August 2019, the 19th meeting of the ninth session of the Board held on 16 September 2019 and the first extraordinary general meeting of 2019 held on 23 October 2019, which approved the matters relating to the disposal of 27.4214% of the equity interests in GSI to China CSSC Holdings Limited ("CSSC Holdings") where CSSC Holdings shall pay the transfer consideration by way of non-public issuance of its A shares to the Company, the Company shall at the same time waive its right of first refusal to acquire 23.5786% of the equity in GSI and 30.9836% of the equity in Huangpu Wenchong held by market- oriented debt-to-equity swap investors. As at 31 March 2020, the implementation of the significant asset disposal and connected transaction of the Company was completed when the Company has transferred its 27.4214% equity interests in GSI which were registered under the name of CSSC Holdings. The Company only holds a 46.3018% equity interest in GSI and its accounts were not under consolidation. CSSC Holdings has issued 217,494,916 shares of CSSC Holdings to the Company to settle the transfer consideration of the above disposal of 27.4214% equity interests in GSI.
For details, please refer to announcements dated 4 April 2019, 9 May 2019, 7 August 2019, 16 September 2019, 24 March 2020 and 30 March 2020 published by the Company on the website of the Shanghai Stock Exchange (www.see.com.cn), the website of the Stock Exchange (www.hkexnews.hk) and the website of the Company (comec.cssc.net.cn) regarding the Proposed Connected Transactions in relation to Major Assets Swap, the Proposed Connected Transaction in relation to Major Assets Swap (Revised Version), Report on Major Assets Disposal and Connected Transactions (Draft), Revised Report on Major Assets Disposal and Connected Transactions (Draft), Announcement on Completion of Assets Transfer in relation to Major Assets Disposal and Connected
10
Transactions, and Announcement on Completion of Implementation of Major Assets Disposal and Connected Transactions.
2. The Company considered and approved the resolution in relation to the transfer of the 49% equity interest in CSSC Chengxi Yangzhou Shipbuilding Company Limited and connected transactions at the 25th meeting of the ninth session of the Board held on 3 March 2020 and the second extraordinary general meeting of 2020 held on 24 April 2020, whereby the Company shall transfer the 49% equity interest held in Chengxi Yangzhou to CSSC Holdings and CSSC Chengxi Shipbuilding Co., Ltd.
("CSSC Chengxi") by way of agreement at the total transaction price of RMB963,831,800, of which,
CSSC Holdings and CSSC Chengxi will acquire 24% and 25% equity interest of Chengxi Yangzhou, respectively, at the transaction price of RMB472,080,900 and RMB491,750,900, respectively.
For details, please refer to announcements dated 9 March 2020, including the announcement in relation to the transfer of the 49% equity interest in CSSC Chengxi Yangzhou Shipbuilding Company Limited by COMEC and connected transactions published by the Company on the website of the Shanghai Stock Exchange (www.see.com.cn), the website of the Stock Exchange (www.hkexnews.hk) and the website of the Company (comec.cssc.net.cn). Pursuant to the above equity transfer agreement, CSSC Holdings and CSSC Chengxi had paid 51% of the total transaction consideration of the property right on 30 June 2020, and shall settle the remaining 49% of the total transaction price before 31 December 2020.
5.2 Profit distribution and cash dividend policy
5.2.1 Implementation of profit distribution proposal during the Reporting Period
As considered and passed at the annual general meeting of 2019 held on 12 June 2020, the proposal for profit distribution of the Company for 2019 was as follows: pursuant to requirements of the Articles of Association of CSSC Offshore & Marine Engineering (Group) Company Limited, in distributing cash dividends, the Company's asset-liability ratio shall not exceed 70%; and the aggregate of the undistributed profit in the consolidated statements shall be positive. The asset- liability ratio of the Company was 70.27% as at 31 December 2019. In addition, undistributed profits in the financial statements of the Company for end of 2019 amounted to RMB721,076,162.84 and undistributed profits in the consolidated financial statements amounted to RMB-1,605,393,084.53. Accordingly, the Company did not declare any dividends for 2019. Meanwhile, the Company also would not convert capital reserve into share capital.
5.2.2 Profit distribution during the Reporting Period
The Company will not make profit distribution or convert any capital reserve into share capital for the first half of 2020.
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5.3 Material litigations, arbitrations and matters commonly concerned by media
During the Reporting Period, the Company had no material litigations, arbitrations and matters commonly concerned by media.
5.4 Entrustment, contracting and leasing matters 5.4.1 Leasing
Unit: RMB | |||||||||||
Basis for | Impact of | ||||||||||
Amount | Date of | Date on which the | rental | Whether | |||||||
Name of | Name of | Rental | determination | ||||||||
Assets leased | of assets | commencement | lease will be | income on | related | Relationship | |||||
lessor | lessee | income | of rental | ||||||||
leased | of lease | terminated | the | transaction | |||||||
income | |||||||||||
Company | |||||||||||
Guangzhou | The date on which the | ||||||||||
relocation is | |||||||||||
Ship | |||||||||||
Huangpu | Land, buildings | completed and | Sister company | ||||||||
Industrial | - | 2014.5.1 | - | - | - | Yes | |||||
Wenchong | and structures | production | of the Group | ||||||||
Company | |||||||||||
commences at the | |||||||||||
Limited | |||||||||||
new plant | |||||||||||
The date on which the | |||||||||||
Guangzhou | relocation is | ||||||||||
Wenchong | Wenchong | Land, buildings | - | 2018.11.1 | completed and | - | - | - | Yes | Sister company | |
Properties | Shipyard | and structures | production | of the Group | |||||||
Co., Ltd. | commences at the | ||||||||||
new plant |
Description of leases:
Guangzhou Ship Industrial Co., Ltd. ("Guangzhou Company") and Huangpu Wenchong entered into a lease agreement in relation to land use right, pursuant to which Guangzhou Company shall lease part of the land use right owned by it in relation to the land at the Changzhou Plant to Huangpu Wenchong for its operational use. The rent for the land use right shall be determined based on the principle of asset depreciation, amortisation and taxes. The rent shall be paid annually by cash payment. The term for the aforesaid lease of land use right commenced on 1 May 2014 and will end on the date on which the relocation of Huangpu Wenchong is completed and production commences at the new plant.
Guangzhou Wenchong Properties Co., Ltd. and Guangzhou Wenchong Shipyard Co. Ltd. (hereinafter referred to as "Wenchong Shipyard") entered into a lease agreement in relation to land use right, and leased part of the land use rights of the area at Wenchong Plant owned by it to Wenchong Shipyard for operation. The rent for the land use right shall be determined based on the principle of asset depreciation, amortisation and taxes. The rent shall be paid on annually by cash payment. The term for the aforesaid lease of land use right commenced on 1 November 2018 and will end on the date on which the relocation of Wenchong Shipyard is completed and production commences at the new plant.
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5.4.2 Guarantee
Unit: RMB Yuan
External guarantees by the Company (excluding guarantees for its subsidiaries)
Relationship | Date of | Date of | Whether | Whether | ||||||||||
Amount | guarantee | Date of | Type of | Whether | Whether | Existence of | ||||||||
Guarantor | between | Guarantee d | commenceme | Overdue | provided for | provided for | ||||||||
guarantor and | entity | of | (date of | of | expiry of | guarante | fully | guarantee | amount | reverse | by related | by related | ||
guarantee | signing of | Guarantees | e | executed | is overdue | guarantee | ||||||||
the Company | Guarantees | party | party | |||||||||||
agreement ) | ||||||||||||||
- | - | - | - | - | - | - | - | - | - | - | - | - | - | |
Total amount of guarantees during the Reporting Period (excluding guarantees provided for its | 0 | |||||||||||||
subsidiaries) | ||||||||||||||
Total balance of guarantees at the end of the Reporting Period (A) (excluding guarantees provided for | 0 | |||||||||||||
its subsidiaries) | ||||||||||||||
Guarantees provided by the Company for its subsidiaries | ||||||||||||||
Total amount of guarantees provided for its subsidiaries during the Reporting Period | 1,107,981,052.50 | |||||||||||||
Total balance of guarantees provided for its subsidiaries at the end of the Reporting Period (B) | 702,514,262.75 | |||||||||||||
Total amount of guarantees provided by the Company (including those provided for its subsidiaries) | ||||||||||||||
Total amount of guarantees (A+B) | 702,514,262.75 | |||||||||||||
Total amount of guarantees as a percentage of the Company's net assets (%) | 4.20 | |||||||||||||
Including: | ||||||||||||||
Amount of guarantees provided for shareholders, actual controllers and related parties (C) | - | |||||||||||||
Amount of debt guarantees provided directly or indirectly for companies with gearing ratio of over | 702,514,262.75 | |||||||||||||
70% (D) | ||||||||||||||
Total amount of guarantees in excess of 50% of net assets (E) | - | |||||||||||||
Sum of the above three guarantees (C+D+E) | 702,514,262.75 | |||||||||||||
Description of outstanding guarantees which may incur several and joint liability | Not applicable | |||||||||||||
Description of outstanding guarantees which may incur several and joint liability | During the Reporting Period, the Group provided guarantee with a total balance of guarantee of RMB703 | |||||||||||||
million, all of which are guarantees provided by Huangpu Wenchong, a subsidiary controlled by the Company, | ||||||||||||||
to its wholly-owned subsidiaries. The guarantee items are comprehensive credit guarantee and working capital | ||||||||||||||
loan guarantee, etc. The cap limit set out in the framework for the guarantees as approved at the general meeting | ||||||||||||||
has not been exceeded. |
5.5 Environmental information
5.5.1 Description of the environment protection of the Company and its major subsidiaries falling to be the key waste water emission entities as announced by the environmental protection authorities of the PRC
According to the Circular on the List of the Key Pollution Discharge Entities in Guangzhou for 2020 (Sui Huan [2020] No. 24) issued by Guangzhou Environmental Protection Bureau in April 2020, three members of the Group, namely Huangpu Wenchong, Wenchong Shipyard and Guangzhou Huangchuan Ocean Engineering Co., Ltd. ("Huangchuan Ocean Engineering"), were included as key pollution discharge entities in Guangzhou for 2020.
5.5.1.1 Information on pollution discharge
1. Huangpu Wenchong
The main pollutants discharged in the production process of Huangpu Wenchong are waste water, waste gas, solid waste and noise.
(1) Waste gas
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The waste gas generated by Huangpu Wenchong mainly represents dust waste gas and volatile organic waste gas during the production process. It has established waste gas treatment devices to ensure that the emission concentration of the air pollutant emitted meets the level II, period II standard for type II control region set out in the Emission Limits of Air Pollutants of Guangdong Province. During the Reporting Period, there existed no waste gas emissions of Huangpu Wenchong that exceeded the standard.
(2) Waste water
The waste water generated by Huangpu Wenchong includes production waste water and domestic waste water. The production waste water represents mainly the oily waste water generated in the mooring experiments of ship wharves, workshop industrial waste water, and cabin-cleaning oily waste water. The domestic waste water is from the sewage generated at the production area and the office area. The cabin-cleaning oily waste water following disposal at the oily water disposal station, together with domestic sewage and other industrial waste water, is discharged into municipal sewage pipelines. The water pollutant emission concentration of which has met the level III, period II standard set out in the Emission Limits of Water Pollutants (DB44/26-2001). During the Reporting Period, Huangpu Wenchong discharged 62,240 tonnes of industrial waste water, and met the emission standard.
(3) Solid waste (including hazardous waste)
Solid waste produced by Huangpu Wenchong is mainly divided into general industrial solid waste, hazardous waste and domestic waste, and it strengthens the daily management of such waste, especially hazardous waste, in accordance with the laws and regulations such as the Administrative Measures for the Management of Solid Waste of the People's Republic of China and the Regulations on the Management of Solid Waste of Guangdong Province.
During the Reporting Period, Huangpu Wenchong produced a total of 2,893 tonnes of general industrial solid waste and 222 tonnes of hazardous waste, which met the emission standard.
(4) Noise
The noise generated by Huangpu Wenchong is mainly production noise. Noise emission detection at boundary has been conducted on a regular basis to ensure that the noise at boundary meets the level II standard set out in the Emission Standard for Industrial Enterprise Noise at Boundary, and there did not exist any situation that exceeded the standardduring the Reporting Period.
2. Wenchong Shipyard
The main pollutants discharged in the production process of Wenchong Shipyard are waste water, waste gas, solid waste and noise.
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(1) Waste gas
The waste gas generated by Wenchong Shipyard mainly represents organic waste gas and dust. It has five sets of organic waste gas purification treatment devices and seven filter dust removers to ensure that the emission concentration of the air pollutant emitted meets the level II, period II standard set out in the Emission Limits of Air Pollutants of Guangdong Province (DB44/27-2001). During the Reporting Period, all of the waste gas emissions generated by Wenchong Shipyard met the standard.
(2) Waste water
The waste water generated by Wenchong Shipyard includes production waste water and domestic sewage. The production waste water represents mainly the oily waste water generated in the mooring experiments of ship wharves and the pipeline oil intermingling process. The domestic sewage is from the sewage generated at the production area and the office area. The emission concentration of its water pollutants met the level B limit set out in the table 1 in the Wastewater Quality Standards for Discharge to Municipal Sewers (CJ343-2010). During the Reporting Period, Wenchong Shipyard discharged a total of 137,048 tonnes of waste water.
(3) Solid waste (including hazardous waste)
The solid waste generated by Wenchong Shipyard includes hazardous waste, general industrial solid waste and domestic refuse. Qualified entities are appointed to dispose of hazardous waste generated by it. During the Reporting Period, Wenchong Shipyard disposed of 2,679 tonnes of general industrial waste and 311 tonnes of hazardous waste.
(4) Noise
The noise generated by Wenchong Shipyard represents mainly production noise and mechanical noise. The noise at boundary met the level IV standard set out in the Emission Standard for Industrial Enterprise Noise at Boundary (GB12348-2008), and there did not exist any situation that exceeded the standard the Reporting Period.
3. Huangchuan Ocean Engineering
The main pollutants discharged in the production process of Huangchuan Ocean Engineering are waste water, waste gas, solid waste and noise.
(1) Waste gas
The waste gas generated by Huangchuan Ocean Engineering mainly represents dust and organic waste gas. It has established waste gas treatment devices to ensure that the emission concentration of the air pollutant emitted meets the level II, period II standard for type II control region set out in the Emission Limits of Air Pollutants of Guangdong Province. During the Reporting Period, no waste gas emissions of Huangchuan Ocean Engineering had exceeded the standard.
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(2) Waste water
The waste water generated by Huangchuan Ocean Engineering includes production waste water and domestic sewage. The production waste water represents mainly the oily waste water generated in the mooring experiments of ship wharves and the pipeline oil intermingling process. The domestic sewage is from the sewage generated at the production area and the office area. During the Reporting Period, Huangchuan Ocean Engineering discharged a total of 125,248 tonnes of waste water, the water pollutant emission concentration of which has met the level I, period II standard set out in the Emission Limits of Air Pollutants of Guangdong Province, and there did not exist any situation that exceeded the standard.
(3) Solid waste (including hazardous waste)
The solid waste generated by Huangchuan Ocean Engineering include mainly three types, namely recyclable solid waste, non-recyclable solid waste and hazardous waste. Huangchuan Ocean Engineering collects and separates the solid waste generated. Recyclable solid waste such as waste metal is utilised by waste material recycling companies. Qualified entities are appointed to treat non- recyclable solid waste and hazardous waste. During the Reporting Period, Huangchuan Ocean Engineering disposed of 2,038 tonnes of non-recyclable solid waste and 218 tonnes of hazardous waste.
(4) Noise
The noise generated by Huangchuan Ocean Engineering is mainly production noise. It conducts noise emission detection at boundary on a regular basis to ensure that the noise at boundary meets the level
- standard set out in the Emission Standard for Industrial Enterprise Noise at Boundary. There did not exist any situation that exceeded the standard.
5.5.1.2 Construction and operation of pollution prevention facilities
1. Huangpu Wenchong
Huangpu Wenchong has established 5 sets of cyclone + filter cartridge dust collectors for the 2-metre and 3-metre steel plate pretreatment lines and painting rooms which generate dust, 3 sets of activated carbon adsorption + catalytic combustion purification treatment devices for the 2-metre and 3-metre steel plate pretreatment lines and painting rooms which generate organic waste gas, and a domestic sewage treatment station and an oily wastewater treatment station for the waste water generated. Waste water from the canteen in the plant area is treated through the grease trap and residue interceptor before discharge. All industrial and domestic sewage is collected through pipelines and discharged into municipal sewage pipelines. For production noise, it mainly reduces the impacts of production noise through equipment selection, building enclosure, establishing sound insulation covers, installing damping pads and mufflers.
During the Reporting Period, through periodic repair and maintenance work of its equipment and facilities, the equipment and facilities of the company were in good operating condition.
2. Wenchong Shipyard
Existing facilities of Wenchong Shipyard against environmental pollution: 9 sets of organic waste gas purification device (1 in the pretreatment workshop, and 2 in each of the painting and assembly workshop A, D, E, and F), 7 sets of dust removal device (1 in the pretreatment workshop, and 3 in each of workshop B and C), 6 sets of welding dust purification device (all installed in the pipe processing
16
workshop). All units using these anti-pollution devices have kept regular maintenance of the devices with detailed operation record. 1 set of online VOC (Volatile Organic Compound) monitoring equipment (provided by the Environmental Protection Bureau of Huangpu District) was installed in painting workshop A and connected to the automatic pollutant monitoring system in Guangzhou City to perform real-time monitoring of VOC emission. During the Reporting Period, Wenchong Shipyard had completed installation, debugging and self-inspection of 1 set waste oil water treatment device, and is applying for an environmental protection record.
3. Huangchuan Ocean Engineering
Huangchuan Ocean Engineering has established a sewage treatment station to treat production waste water and domestic sewage, installed cyclone + filter cartridge dust collectors at the steel pretreatment line and sandblasting room, and 12 sets of activated carbon adsorption + catalytic combustion purification treatment devices for organic waste gas. All these facilities operate normally. For production noise, it mainly reduces the impacts of production noise through equipment selection, building enclosure, establishing sound insulation covers, installing damping pads and mufflers.
5.5.1.3 Environmental impact assessment for construction projects and other administrative permission for environmental protection
1. Huangpu Wenchong
In 2019, Huangpu Wenchong established a storage and transportation station for general industrial solid waste, carried out environmental quality survey reports in accordance with the laws and regulations of the People 's Republic of China Environmental Impact Assessment Law and the Regulations on the Administration of Construction Project Environmental Protection, and filed with the District Eco-Environment Bureau. With the pollution discharge permit and the drainage permit, Huangpu Wenchong could achieve stable discharge of pollutants and control the total discharge in the daily production and operation.
2. Wenchong Shipyard
Wenchong Shipyard owns environmental protection administrative licenses including the Pollutant Discharge Permit of Guangdong Province, the Drainage permit and the Radiation Safety License. In 2018, the Company conducted the construction project environmental impact assessment and completed the preparation of environmental impact report for painting workshop E/F and the temporary storage site for hazardous wastes, which completed the inspection and acceptance and was put into normal operation in May 2019. Wenchong Shipyard has obtained the pollutant discharge permit in accordance with the requirements of environmental protection laws and regulations.
17
3. Huangchuan Ocean Engineering
The acceptance approvals for the offshore engineering Phase I, offshore engineering production capacity expansion and offshore engineering supplementary projects of Huangchuan Ocean Engineering, all of which were completed, had been obtained. The pollutant discharge permit had been obtained in 2014. A reply from Nansha Environmental Protection and Water Affairs Bureau to the environment impact assessment of the Longxue Gas Cylinder Transfer Station (Sui Nan Qu Huan Shui Guan Ying (2017) No. 93) was obtained, and the inspection and acceptance was completed in April 2019. A reply to the investment project was obtained from Nansha Environmental Protection Bureau (Sui Nan Kai Huan Guan Ying [2014] No. 190) in 2014, and the project is currently under construction. Huangchuan Ocean Engineering has obtained the pollutant discharge permit in accordance with the requirements of environmental protection laws and regulations.
5.5.1.4 Emergency plans for sudden environmental events
1. Huangpu Wenchong
In December 2018, Huangpu Wenchong formulated and filed the emergency plan for sudden environmental events, including two special emergency plans and nine on-site disposal plans, established an emergency command team and a graded emergency system for sudden environmental events, and regularly conducted emergency trainings and drills.
In order to strengthen emergency management, Huangpu Wenchong formulated an annual emergency and drill plan to conduct regular drills, carry out knowledge training and allocate emergency supplies. During the Reporting Period, Huangpu Wenchong had completed drills of emergency plans for diluent leakage and radiation accidents of the chemical oil storage depot.
2. Wenchong Shipyard
Wenchong Shipyard started the second round of environmental emergency plan and risk assessment in October 2018, which involved on-site investigation, data collection, plan and report preparation, expert review, on-site rectification and other stages, and successfully completed the filing with the Huangpu District Environmental Protection Bureau in January 2019, and valid until January 2022. The results of this work are mainly presented as the Emergency Plan for Sudden Environmental Events, the Risk Assessment Report for Sudden Environmental Events and the Emergency Resources Investigation Report. During the Reporting Period, Wenchong Shipyard had completed two environment emergency drills, including disposal drills of hazardous chemical leakage and hazardous waste leakage.
3. Huangchuan Ocean Engineering
The Emergency Plan for Sudden Environmental Events developed by Huangchuan Ocean Engineering passed expert review and was filed with Nansha Environmental Protection Bureau in 2020 to ensure the applicability and effectiveness of the above emergency plans.
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5.5.1.5 Emergency plans for sudden environmental events
The Group's key pollutant discharge entities has appointed qualified testing institutions to, on a regular basis, monitor the discharge of pollutants including waste water, waste gas, noise and radiation as well as to supervise whether the pollutants discharged have met the relevant standards, which are subject to ad-hoc regulatory supervision by environmental protection authorities.
5.6 Notes on other significant events
5.6.1 Details of charges on the assets of the Group
As at 30 June 2020, the Company had a total of bank deposits amounting to RMB3,311 million pledged to secure long- and short-term borrowings, letters of guarantee, letters of credit, projects or as deposit for bank drafts. Save as disclosed above, no other assets of the Company were pledged.
5.6.2 Gearing ratio
As at 30 June 2020, the Group's gearing ratio (total liabilities/total assets x 100%) was 55.06% (as at the beginning of the Reporting Period: 70.27%), representing a decrease of 15.21% which mainly due to the completion of the disposal of equity of GSI.
5.6.3 Repurchase, disposal or redemption of securities of the Company
The Group has not made any purchase, disposal or redemption of securities of the Company or any of its subsidiaries during the Reporting Period.
§6 CORPORATE GOVERNANCE REPORT
During the Reporting Period, the general meeting of the Company, the Board and the management performed their specific responsibilities and regulated corporate operation to ensure the true, accurate and complete disclosure of corporate information. Specialized committees of the Board carried out works in accordance with their respective duties, and independent non-executive Directors played an important role in the work of the Board.
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6.1 Corporate Governance
The Company keeps improving its corporate governance structure in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, relevant laws and regulations issued by the China Securities Regulatory Commission and the requirements of the listing rules of the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited. To date, the Company's governance had no material difference from the Company Law and relevant regulations of the China Securities Regulatory Commission. Saved as disclosed below, during the six months ended 30 June 2020, the Company has applied the codes set out in the Corporate Governance Code and Corporate Governance Report (the "CG Code") contained in Appendix 14 of the Listing Rules, and has complied with all the code provisions, except that for the purpose of Code Provision A.6.7 of the CG Code, Mr. Chen Zhongqian, Mr. Sheng Jigang, Mr. Xiang Huiming and Mr. Chen Ji, being executive Directors, Mr. Shi Jun, being non-executive Director, and Mr. Min Weiguo and Mr. Liu Renhuai, being independent non-executive Directors, were unable to attend the first extraordinary general meeting of 2020 of the Company held on 26 February 2020 for work reasons. Mr. Chen Zhongqian, Mr. Sheng Jigang and Mr. Xiang Huiming, being executive Directors, Mr. Shi Jun, being non-executive Director, and Mr. Min Weiguo and Mr. Liu Renhuai, being independent non-executive Directors, were unable to attend the second extraordinary general meeting of 2020 of the Company held on 24 April 2020 for work reasons. Mr. Chen Zhongqian, Mr. Xiang Huiming and Mr. Chen Ji, being executive Directors, Mr. Shi Jun, being non-executive Director, and Mr. Min Weiguo and Mr. Liu Renhuai, being independent non-executive Directors, were unable to attend the annual general meeting of 2019 of the Company held on 12 June 2020 for work reasons.
6.2 Securities Transactions by Directors
The Company has strictly complied with the relevant restrictive provisions imposed by PRC and Hong Kong regulatory organs in relation to securities transactions by directors and has consistently upheld the principle of complying with the most stringent provisions and had adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix 10 to the Listing Rules. The Company has made specific inquiry of all its directors for preparing this Report and all directors have confirmed that they have complied with the required standard of dealings as set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the Reporting Period.
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6.3 Meetings of the Board
To date a total of four meetings (including three meetings held in writing) were held by the Board. All Directors attended these meetings (including attendance by proxy). In addition, the Audit Committee held four meetings to consider issues including the annual report of the Company for the year 2019, the report on the internal control review, the first quarterly report for the year 2020, etc.; the Emolument and Examination Committee held one meeting to consider the resolutions on the remuneration of the Directors, Supervisors and senior management of the Company for the year 2019. To date, the general meeting of the Company, the Board and the management performed their specific responsibilities and regulated corporate operation to ensure the true, accurate, complete, timely and fair disclosure of corporate information. Specialized committees of the Board carried out works in accordance with their respective duties, and independent non-executive Directors played an important role in the work of the Board.
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§7 FINANCIAL STATEMENTS PREPARED ACCORDING TO ACCOUNTING STANDARDS OF THE PRC
(Amounts denominated in Renminbi unless otherwise specified)
Consolidated Balance Sheet
30 June 2020
Prepared by: CSSC Offshore & Marine Engineering (Group) Company Limited
Unit: Yuan Currency: RMB
Item | 30 June 2020 | 31 December 2019 |
Current assets: | ||
Cash at bank and on hand | 6,636,224,686.49 | 14,317,366,099.93 |
Settlement reserve | ||
Placements with banks and non-bank financial institutions | ||
Financial assets held-for-trading | 4,180,994.91 | 48,785,784.80 |
Derivative financial assets | ||
Notes receivable | 102,808,726.99 | 633,564,863.60 |
Accounts receivable | 1,297,442,024.44 | 2,350,380,440.10 |
Receivable financing | ||
Prepayments | 1,731,478,929.23 | 2,339,261,199.21 |
Insurance premium receivable | ||
Reinsurance premium receivable | ||
Reserves for reinsurance contract receivable | ||
Other receivables | 140,567,310.86 | 1,822,048,699.16 |
Including: Interest receivable | 8,794,796.77 | |
Dividends receivable | ||
Financial assets purchased under agreements to resell | ||
Inventories | 3,542,248,384.76 | 4,344,806,992.50 |
Contract assets | 5,060,551,287.22 | 6,336,385,363.12 |
Assets held for sale | 641,647,147.54 | |
Non-current assets due within one year | 692,000,000.00 | |
Other current assets | 1,248,798,646.48 | 350,850,895.77 |
Total current assets | 20,405,948,138.92 | 33,235,450,338.19 |
Non-current assets: | ||
Loans and advances to customers | ||
Debt investments | ||
Other debt investments | ||
Long-term receivables | 2,155,578,593.14 | 2,703,137,274.56 |
Long-term equity investments | 4,820,918,817.28 | 753,695,038.72 |
Investments in other equity instruments | 3,829,873,557.03 | 71,248,734.49 |
Other non-current financial assets | ||
Investment properties | 20,993,939.36 | |
Fixed assets | 3,870,855,033.74 | 11,439,928,689.69 |
Construction in progress | 825,364,482.41 | 1,181,944,326.01 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use asset | 128,832,980.66 | 149,351,363.01 |
Intangible assets | 758,839,573.32 | 2,072,573,536.99 |
Development expenses | ||
22 |
Goodwill | 144,231,195.67 | ||
Long-term prepaid expenses | 5,905,421.04 | 75,592,524.66 | |
Deferred income tax assets | 358,726,380.25 | 377,902,704.29 | |
Other non-current assets | 77,982,795.52 | 78,019,489.34 | |
Total non-current assets | 16,832,877,634.39 | 19,068,618,816.79 | |
Total assets | 37,238,825,773.31 | 52,304,069,154.98 | |
Current liabilities: | |||
Short-term borrowings | 2,460,355,881.93 | 6,147,082,148.56 | |
Loans from central bank | |||
Placements from banks and other financial institutions | |||
Financial liabilities held-for-trading | 109,244,763.92 | 221,737,672.75 | |
Derivative financial liabilities | |||
Notes payable | 941,011,081.06 | 3,063,415,001.67 | |
Accounts payable | 4,569,667,423.85 | 8,687,397,898.75 | |
Advances from customers | 491,554,218.00 | ||
Securities sold under agreements to repurchase | 5,231,569,245.78 | 8,488,146,386.62 | |
Deposits from customers and other banks | |||
Brokerage for securities trading | |||
Brokerage for underwriting securities | |||
Employee benefits payable | |||
Taxes payable | 65,651,104.58 | 40,446,901.64 | |
Other payables | 15,951,559.69 | 72,234,563.79 | |
Including: Interest payable | 156,910,922.99 | 344,881,770.61 | |
Dividends payable | 35,332,096.80 | ||
Fee and commission payable | 304,042.49 | 394,042.49 | |
Reinsured accounts payable | |||
Contract liabilities | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 2,218,603,513.24 | 2,281,928,067.24 | |
Other current liabilities | 162,588,988.49 | 63,237,341.88 | |
Total current liabilities | 16,423,108,703.53 | 29,410,507,753.51 | |
Non-current liabilities: | |||
Reserves for insurance contracts | |||
Long-term borrowings | 3,053,544,337.74 | 6,049,757,000.00 | |
Bonds payable | |||
Including: Preference shares | |||
Perpetual bonds | |||
Lease liabilities | 108,935,162.63 | 110,198,081.27 | |
Long-term payables | 99,370,000.00 | 101,816,823.07 | |
Long-term employee benefits payable | 172,091,358.27 | 229,389,012.33 | |
Estimated liabilities | 249,931,921.53 | 694,854,560.21 | |
Deferred income | 156,713,952.31 | 150,307,309.25 | |
Deferred tax liabilities | 241,531,191.44 | 9,514,927.47 | |
Other non-current liabilities | |||
Total non-current liabilities | 4,082,117,923.92 | 7,345,837,713.60 | |
Total liabilities | 20,505,226,627.45 | 36,756,345,467.11 | |
Owners' equity (or shareholders' interests): | |||
Paid-in capital (or share capital) | 1,413,506,378.00 | 1,413,506,378.00 | |
Other equity instruments | |||
23 |
Including: Preference shares | ||||
Perpetual bonds | ||||
Capital reserve | 8,871,275,223.68 | 9,418,941,779.55 | ||
Less: Treasury shares | ||||
Other comprehensive income | 662,264,282.21 | -41,694,917.30 | ||
Special reserve | 443,910.04 | |||
Surplus reserve | 962,452,773.01 | 962,452,773.01 | ||
Provision for general risks | ||||
Undistributed profit | 1,494,085,803.63 | -1,605,393,084.53 | ||
Total equity (or shareholders' interests) attributable to owners of | 13,403,584,460.53 | 10,148,256,838.77 | ||
the Parent Company | ||||
Minority interests | 3,330,014,685.33 | 5,399,466,849.10 | ||
Total owners' equity (or shareholders' interests) | 16,733,599,145.86 | 15,547,723,687.87 | ||
Total liabilities and owners' equity (or shareholders' interests) | 37,238,825,773.31 | 52,304,069,154.98 | ||
Legal representative: Han Guangde | Person in charge of accounting: Hou Zengquan | Head |
of accounting department: Xie Weihong
24
Balance Sheet of the Parent Company
30 June 2020
Prepared by: CSSC Offshore & Marine Engineering (Group) Company Limited
Unit: Yuan Currency: RMB
Item | 30 June 2020 | 31 December 2019 | |
Current assets: | |||
Cash at bank and on hand | 755,607,790.97 | 113,638,189.16 | |
Financial assets held-for-trading | |||
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | 62,639,063.47 | 40,084,782.69 | |
Receivable financing | |||
Prepayments | 2,831,781.00 | 6,585,840.89 | |
Other receivables | 7,758,544.68 | 8,852,312.88 | |
Including: Interest receivable | 199,136.97 | ||
Dividends receivable | |||
Inventories | 78,044,136.16 | ||
Contract assets | |||
Assets held for sale | 641,125,874.53 | ||
Non-current assets due within one year | 50,055,555.56 | 270,000,000.00 | |
Other current assets | 113,723,304.22 | 244,609,360.00 | |
Total current assets | 1,633,741,914.43 | 761,814,621.78 | |
Non-current assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | 600,000,000.00 | ||
Long-term equity investments | 6,230,487,384.55 | 8,481,278,673.82 | |
Investments in other equity instruments | 3,793,111,335.04 | ||
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | 433,933,456.93 | 447,436,065.79 | |
Construction in progress | |||
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use asset | 1,441,137.97 | 1,896,234.13 | |
Intangible assets | 10,093,558.63 | 10,161,107.29 | |
Development expenses | |||
Goodwill | |||
Long-term prepaid expenses | 547,889.19 | 720,906.87 | |
Deferred income tax assets | 20,000,000.00 | 20,000,000.00 | |
Other non-current assets | 802,955,684.99 | 436,902,001.36 | |
Total non-current assets | 11,292,570,447.30 | 9,998,394,989.26 | |
Total assets | 12,926,312,361.73 | 10,760,209,611.04 | |
Current liabilities: | |||
Short-term borrowings | 200,000,000.00 | ||
25 |
Financial liabilities held-for-trading | ||
Derivative financial liabilities | ||
Notes payable | ||
Accounts payable | 168,433,940.03 | 179,911,996.18 |
Advances from customers | 491,554,218.00 | |
Contract liabilities | 10,304,181.00 | 59,818,924.73 |
Employee benefits payable | ||
Taxes payable | 473,165.21 | 2,802,092.60 |
Other payables | 12,062,976.68 | 53,596,763.60 |
Including: Interest payable | 565,277.78 | |
Dividends payable | 304,042.49 | 304,042.49 |
Liabilities held for sale | ||
Non-current liabilities due within one year | 953,276.09 | 200,898,274.92 |
Other current liabilities | 30,817.60 | |
Total current liabilities | 683,781,757.01 | 697,058,869.63 |
Non-current liabilities: | ||
Long-term borrowings | 600,339,166.66 | 600,000,000.00 |
Bonds payable | ||
Including: Preference shares | ||
Perpetual bonds | ||
Lease liabilities | 599,144.66 | 1,096,162.49 |
Long-term payables | 99,370,000.00 | 99,370,000.00 |
Long-term employee benefits payable | ||
Estimated liabilities | ||
Deferred income | ||
Deferred tax liabilities | 233,807,033.76 | |
Other non-current liabilities | ||
Total non-current liabilities | 934,115,345.08 | 700,466,162.49 |
Total liabilities | 1,617,897,102.09 | 1,397,525,032.12 |
Owners' equity (or shareholders' interests): | ||
Paid-in capital (or share capital) | 1,413,506,378.00 | 1,413,506,378.00 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 8,335,927,762.50 | 8,335,892,000.49 |
Less: Treasury shares | ||
Other comprehensive income | 699,215,832.19 | -1,891,574.80 |
Special reserve | ||
Surplus reserve | 472,681,889.15 | 472,681,889.15 |
Undistributed profit | 387,083,397.80 | -857,504,113.92 |
Total owners' equity (or shareholders' interests) | 11,308,415,259.64 | 9,362,684,578.92 |
Total liabilities and owners' equity (or shareholders' | 12,926,312,361.73 | 10,760,209,611.04 |
interests) | ||
Legal representative: Han Guangde Person in charge of accounting: Hou Zengquan | Head |
of accounting department: Xie Weihong | |
26 |
Consolidated Income Statement
From January to June 2020
Unit: Yuan Currency: RMB
Item | 1st half of 2020 | 1st half of 2019 |
I. Total operating income | 4,293,181,183.56 | 7,816,085,319.68 |
Including: Operating income | 4,293,181,183.56 | 7,816,085,319.68 |
Interest income | ||
Premium earned | ||
Fee and commission income | ||
II. Total operating costs | 4,535,988,364.18 | 8,354,963,237.47 |
Including: Operating costs | 4,061,243,529.52 | 7,626,860,800.81 |
Interest expense | ||
Fee and commission expenses | ||
Refunded premiums | ||
Net amount of compensation payout | ||
Net increase in insurance contracts reserve | ||
Policy dividend payment | ||
Reinsured expenses | ||
Taxes and surcharges | 15,586,633.76 | 32,793,624.08 |
Selling expenses | 23,242,577.85 | 8,547,839.97 |
Administrative expenses | 259,745,214.38 | 374,142,028.48 |
Research and development expense | 251,764,193.06 | 226,390,380.65 |
Finance cost | -75,593,784.39 | 86,228,563.48 |
Including: Interest expenses | 93,466,276.45 | 195,683,733.87 |
Interest income | 132,806,729.54 | 128,327,120.98 |
Add: Other income | 21,351,992.29 | 5,517,547.40 |
Investment income (loss expressed with "-") | 3,373,579,240.59 | -200,623,239.54 |
Including: Investment income in associates and joint ventures | -6,432,971.46 | -2,542,980.91 |
Derecognition income of financial assets measured at amortised cost | ||
(loss expressed with "-") | ||
Exchange gain (loss expressed with "-") | ||
Net gain on exposure hedging (loss expressed with "-") | ||
Gain on change in fair value (loss expressed with "-") | -30,624,591.00 | 264,450,151.28 |
Loss on impairment of credit (loss expressed with "-") | 4,685,877.27 | -8,451,275.85 |
Loss on impairment of assets (loss expressed with " -") | -168,731,612.95 | -69,618,896.09 |
Gains from disposal of asset (loss expressed with " -") | -249,851.06 | |
III. Operating profit (loss expressed with "-") | 2,957,453,725.58 | -547,853,481.65 |
Add: Non-operating income | 4,002,590.52 | 1,253,089,251.01 |
Less: Non -operating expenses | 1,451,741.14 | 1,625,913.57 |
IV. Total profit (total loss expressed with "-") | 2,960,004,574.96 | 703,609,855.79 |
Less: Income tax expense | 16,242,996.39 | 93,984,992.93 |
V. Net profit (net loss expressed with " -") | 2,943,761,578.57 | 609,624,862.86 |
(1) By continuity of operations | ||
1.Net profit from continuing operations (net loss expressed with " - | -252,678,750.02 | 1,024,868,483.89 |
") | ||
2.Net profit from discontinued operations (net loss expressed with | 3,196,440,328.59 | -415,243,621.03 |
" -") | ||
(2) By ownership | ||
27 |
1. Net profit attributable to shareholders of the Parent Company (net | 3,102,837,570.74 | 390,750,329.92 | |||
loss expressed with " -") | |||||
2. Gain or loss attributable to minority interests (net loss expressed | -159,075,992.17 | 218,874,532.94 | |||
with "-") | |||||
VI. Net after tax for other comprehensive income | 700,169,972.07 | 10,401,824.34 | |||
Net after tax for other comprehensive income attributable to owners | 700,600,516.93 | 7,568,646.25 | |||
of the Parent Company | |||||
(1) Other comprehensive income that may not be reclassified to | 700,163,899.21 | 7,520,933.58 | |||
profit or loss | |||||
1. | Change in re-measurement of defined benefit plans | ||||
2. | Other comprehensive income that may not be reclassified to | -95,851.03 | |||
profit or loss under equity method | |||||
3. | Change in fair value of investments in other equity instruments | 700,259,750.24 | 7,520,933.58 | ||
4. | Change in fair value of own credit risk | ||||
(2) Other comprehensive income that may be reclassified to profit or | 436,617.72 | 47,712.67 | |||
loss | |||||
1. | Other comprehensive income that may be reclassified to profit | ||||
or loss under equity method | |||||
2. | Change in fair value of other debt investments | ||||
3. | Amount included in other comprehensive income on | ||||
reclassification of financial assets | |||||
4. | Provision for credit impairment of other debt investments | ||||
5. | Cash flow hedges reserve (effective portion of gain or loss on | ||||
cash flow hedges) | |||||
6. | Exchange differences arising from translation of foreign | 436,617.72 | 47,712.67 | ||
currency financial statements | |||||
7. | Others | ||||
Net other comprehensive income after tax attributable to minority | -430,544.86 | 2,833,178.09 | |||
interests | |||||
VII. Total comprehensive income | 3,643,931,550.64 | 620,026,687.20 | |||
Total comprehensive income attributable to owners of the Parent | 3,803,438,087.67 | 398,318,976.17 | |||
Company | |||||
Total comprehensive income attributable to minority interests | -159,506,537.03 | 221,707,711.03 | |||
VIII. Earnings per share: | |||||
(1) Basic earnings per share (RMB/share) | 2.1951 | 0.2764 | |||
(2) Diluted earnings per share (RMB/share) | 2.1951 | 0.2764 | |||
Legal representative: Han Guangde | Person in charge of accounting: Hou Zengquan | Head |
of accounting department: Xie Weihong
28
Income statement of the Parent Company
From January to June 2020
Unit: Yuan Currency: RMB
Item | 1st half of 2020 | 1st half of 2019 |
I. Operating income | 98,222,601.70 | 91,961,389.81 |
Less: Operating costs | 94,680,914.39 | 89,042,949.57 |
Taxes and surcharges | 4,213,994.53 | 1,396,458.92 |
Selling expenses | 279,731.32 | 1,245,236.98 |
Administrative expenses | 9,480,805.67 | 10,051,417.16 |
Research and development expense | ||
Finance cost | -9,397,824.95 | -13,932,102.59 |
Including: Interest expenses | 8,184,717.45 | 14,208,124.99 |
Interest income | 17,593,464.38 | 28,187,838.37 |
Add: Other income | 14,346.29 | |
Investment income (loss expressed with "-") | 1,248,495,717.54 | -1,479,212.18 |
Including: Investment income in associates and joint ventures | -98,741,026.22 | -1,479,212.18 |
Derecognition income of financial assets measured at | ||
amortised cost (loss expressed with "-") | ||
Net gain on exposure hedging (loss expressed with "-") | ||
Gain on change in fair value (loss expressed with "-") | ||
Loss on impairment of credit (loss expressed with "-") | -346,461.07 | 67,779.32 |
Loss on impairment of assets (loss expressed with "-") | -2,580,564.17 | |
Gains from disposal of asset (loss expressed with "-") | ||
II. Operating profit (loss expressed with "-") | 1,244,548,019.33 | 2,745,996.91 |
Add: Non-operating income | 46,443.78 | |
Less: Non-operating expenses | 6,951.39 | 82.78 |
III. Total profit (total loss expressed with "-") | 1,244,587,511.72 | 2,745,914.13 |
Less: Income tax expense | ||
IV. Net profit (net loss expressed with "-") | 1,244,587,511.72 | 2,745,914.13 |
(1) Net profit from continuing operations (net loss expressed | 1,244,587,511.72 | 2,745,914.13 |
with "-") | ||
(2) Net profit from discontinued operations (net loss | ||
expressed with "-") | ||
V. Net after tax for other comprehensive income | 701,107,406.99 | |
(1) Other comprehensive income that may not be reclassified | 701,107,406.99 | |
to profit or loss | ||
1. Change in re-measurement of defined benefit plans | ||
29 |
2. | Other comprehensive income that may not be | -313,694.29 | ||||
reclassified to profit or loss under equity method | ||||||
3. | Change in fair value of investments in other equity | 701,421,101.28 | ||||
instruments | ||||||
4. | Change in fair value of own credit risk | |||||
(2) Other comprehensive income that may be reclassified to | ||||||
profit or loss | ||||||
1.Other comprehensive income that may be reclassified to | ||||||
profit or loss under equity method | ||||||
2.Change in fair value of other debt investments | ||||||
3. | Amount included in other comprehensive income on | |||||
reclassification of financial assets | ||||||
4. | Provision for credit impairment of other debt | |||||
investments | ||||||
5. | Cash flow hedges reserve (effective portion of gain or | |||||
loss on cash flow hedges) | ||||||
6. | Exchange differences arising from translation of foreign | |||||
currency financial statements | ||||||
7. | Others | |||||
VI. Total comprehensive income | 1,945,694,918.71 | 2,745,914.13 | ||||
Legal representative: Han Guangde | Person in charge of accounting: Hou Zengquan | Head |
of accounting department: Xie Weihong
30
Consolidated Cash Flow Statement
From January to June 2020
Unit: Yuan Currency: RMB
Item | 1st half of 2020 | 1st half of 2019 |
I. Cash flows from operating activities: | ||
Cash received from sale of goods or rendering of services | 4,453,914,097.85 | 6,058,118,267.56 |
Net increase in deposits from customers and deposits from other | ||
banks | ||
Net increase in loans from central bank | ||
Net increase in placements from other financial institutions | ||
Cash receipts of premium for direct insurance contracts | ||
Net cash received from reinsurance business | ||
Net increase in deposits from insurance policy holders and | ||
investment | ||
Cash receipts of interest, fees and commissions | ||
Net increase in placements from other financial institutions | ||
Net increase in sales and repurchase operations | ||
Cash receipts of brokerage for securities trading | ||
Cash received from tax refund | 142,231,304.94 | 596,547,275.43 |
Other cash receipts relating to operating activities | 975,704,748.52 | 1,137,939,919.46 |
Sub-total of cash inflows from operating activities | 5,571,850,151.31 | 7,792,605,462.45 |
Cash paid for goods and services | 7,518,112,723.78 | 9,667,631,483.97 |
Net increase in loans and advances to customers | ||
Net increase in central bank and interbank deposits | ||
Cash paid for claims of direct insurance contracts | ||
Net increase in placements with banks and non-bank financial | ||
institutions | ||
Cash paid for interest, fees and commissions | ||
Cash paid for dividends of insurance policies | ||
Cash paid to and on behalf of employees | 509,240,432.48 | 945,314,358.75 |
Payments of taxes | 69,932,754.91 | 71,995,816.45 |
Other cash payments relating to operating activities | 212,082,219.69 | 308,141,118.24 |
Sub-total of cash outflows from operating activities | 8,309,368,130.86 | 10,993,082,777.41 |
Net cash flows from operating activities | -2,737,517,979.55 | -3,200,477,314.96 |
II. Cash flows from investing activities: | ||
Cash receipts from recover of investments | 994,723,098.00 | 300,000,000.00 |
Cash receipts from investment income | 3,280,462.79 | 6,060,784.49 |
Net cash receipts from disposal of fixed assets, intangible assets | 731,602.85 | 222,809.08 |
and other long-term assets | ||
Net cash receipts from disposal of subsidiaries and other business | ||
units | ||
Other cash receipts relating to investing activities | 1,448,872,954.44 | 1,720,638,033.71 |
Sub-total of cash inflows from investing activities | 2,447,608,118.08 | 2,026,921,627.28 |
Cash paid for acquisition of fixed assets, intangible assets and | 497,937,659.45 | 371,211,006.35 |
other long-term assets | ||
Cash paid for investments | 1,327,671,072.11 | 630,614,976.25 |
Net increase in pledged loans | ||
Net cash paid for acquisition of subsidiaries and other business | 10,706,417.69 | |
31 |
units | ||||
Other cash payments relating to investing activities | 5,610,379,990.82 | 2,394,898,237.08 | ||
Sub-total of cash outflows from investing activities | 7,446,695,140.07 | 3,396,724,219.68 | ||
Net cash flows from investing activities | -4,999,087,021.99 | -1,369,802,592.40 | ||
III. Cash flows from financing activities: | ||||
Cash receipts from receiving investments | ||||
Including: Cash received by subsidiaries from receiving | ||||
investments made by minority interest | ||||
Cash receipts from borrowings obtained | 3,476,463,262.48 | 6,920,297,222.23 | ||
Other cash receipts relating to financing activities | 48,500,000.00 | 167,000,000.00 | ||
Sub-total of cash inflows from financing activities | 3,524,963,262.48 | 7,087,297,222.23 | ||
Cash paid for repayment of debts | 3,146,782,119.50 | 6,002,152,246.16 | ||
Cash paid for dividends, profit distribution or interest expenses | 81,313,671.50 | 190,507,347.30 | ||
Including: Dividends and profits paid by subsidiaries to minority | ||||
interests | ||||
Other cash payments relating to financing activities | 5,240,021.17 | |||
Sub-total of cash outflows from financing activities | 3,233,335,812.17 | 6,192,659,593.46 | ||
Net cash flows from financing activities | 291,627,450.31 | 894,637,628.77 | ||
IV. Effect of change in exchange rate on cash and cash | 19,158,231.62 | -12,849,024.61 | ||
equivalents | ||||
V. Net increase in cash and cash equivalents | -7,425,819,319.61 | -3,688,491,303.20 | ||
Add: Beginning balance of cash and cash equivalents | 10,683,490,790.99 | 8,536,815,355.09 | ||
VI. Ending balance of cash and cash equivalents | 3,257,671,471.38 | 4,848,324,051.89 | ||
Legal representative: Han Guangde | Person in charge of accounting: Hou Zengquan | Head |
of accounting department: Xie Weihong
32
Cash Flow Statement of the Parent Company
From January to June 2020
Unit: Yuan Currency: RMB
Item | 1st half of 2020 | 1st half of 2019 |
I. Cash flows from operating activities: | ||
Cash received from sale of goods or rendering of services | 42,578,992.48 | 92,718,196.49 |
Cash received from tax refund | 147,240.00 | |
Other cash receipts relating to operating activities | 3,394,347.32 | 5,541,582.32 |
Sub-total of cash inflows from operating activities | 46,120,579.80 | 98,259,778.81 |
Cash paid for goods and services | 16,521,330.25 | 70,136,338.25 |
Cash paid to and on behalf of employees | 5,826,437.76 | 13,959,493.28 |
Payments of taxes | 16,095,421.19 | 6,960,485.78 |
Other cash payments relating to operating activities | 51,342,983.83 | 13,530,530.32 |
Sub-total of cash outflows from operating activities | 89,786,173.03 | 104,586,847.63 |
Net cash flows from operating activities | -43,665,593.23 | -6,327,068.82 |
II. Cash flows from investing activities: | ||
Cash receipts from recover of investments | 491,554,218.00 | |
Cash receipts from investment income | 86,694.62 | |
Net cash receipts from disposal of fixed assets, intangible assets | ||
and other long-term assets | ||
Net cash receipts from disposal of subsidiaries and other | ||
business units | ||
Other cash receipts relating to investing activities | 700,220,416.67 | 128,363,097.20 |
Sub-total of cash inflows from investing activities | 1,191,774,634.67 | 128,449,791.82 |
Cash paid for acquisition of fixed assets, intangible assets and | 74,195.75 | |
other long-term assets | ||
Cash paid for investments | 70,000,000.00 | |
Net cash paid for acquisition of subsidiaries and other business | ||
units | ||
Other cash payments relating to investing activities | 390,000,000.00 | 530,000,000.00 |
Sub-total of cash outflows from investing activities | 460,000,000.00 | 530,074,195.75 |
Net cash flows from investing activities | 731,774,634.67 | -401,624,403.93 |
III. Cash flows from financing activities: | ||
Cash receipts from receiving investments | ||
Cash receipts from borrowings obtained | 400,000,000.00 | |
Cash receipts from issuance of bonds | ||
Sub-total of cash inflows from financing activities | 400,000,000.00 | |
Cash paid for repayment of debts | 400,000,000.00 | |
Cash paid for dividends, profit distribution or interest expenses | 8,377,416.67 | 14,008,652.77 |
Other cash payments relating to financing activities | 475,428.56 | |
Sub-total of cash outflows from financing activities | 408,852,845.23 | 14,008,652.77 |
Net cash flows from financing activities | -408,852,845.23 | 385,991,347.23 |
IV. Effect of change in exchange rate on cash and cash | -538.84 | |
equivalents | ||
V. Net increase in cash and cash equivalents | 279,255,657.37 | -21,960,125.52 |
Add: Beginning balance of cash and cash equivalents | 83,638,189.16 | 99,371,121.05 |
VI. Ending balance of cash and cash equivalents | 362,893,846.53 | 77,410,995.53 |
33 |
Legal representative: Han Guangde | Person in charge of accounting: Hou Zengquan | Head |
of accounting department: Xie Weihong
34
§8 Notes to Consolidated Financial Statements
I. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
(1) Basis for preparation
Based on going-concern assumption and transactions and events actually occurred, the consolidated financial statements of the Group have been prepared in accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance of the PRC, (hereinafter referred to as the "Accounting Standards for Business Enterprises"), and No. 15 of regulations on information disclosures of companies that issue public offering shares - General Rules of preparing financial reports (revised in 2014) issued by China Securities Regulatory Commission (CSRC), the applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules") and regulations of Hong Kong Companies Ordinance as well as the accounting policies and estimation of the Group.
(2) Going-concern
The management of the Group has assessed its ability to operate on a continuing basis for the 12 months from 30 June 2020 and is of the view that its existing financial position should be sufficient to meet the production and operation of the Group. As such, these financial statements are prepared on a going-concern basis.
- STATEMENT OF COMPLIANCE WITH ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES
The financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises, and reflect a true and fair view of the financial position, the operating results and cash flows of the Group.
35
III. NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
For the financial statement data disclosed below, unless otherwise stated, "Beginning balance" refers to the balance as at 1 January 2020; and "Ending balance" refers to the balance as at 30 June 2020. "Current period" refers to the period from 1 January 2020 to 30 June 2020; and "Corresponding period of last year" refers to the period from 1 January 2019 to 30 June 2019. The currency unit is RMB.
1. Notes receivable
1) Types of notes receivable Item
Item | Ending balance | Beginning balance |
Bank acceptance bills | 30,925,448.57 | 563,453,834.95 |
Commercial acceptance bills | 71,883,278.42 | 70,111,028.65 |
Total | 102,808,726.99 | 633,564,863.60 |
Among the above notes receivable of the Group, RMB77,700,742.99 had an ageing of less than 180 days, and RMB25,107,984.00 had an ageing of 181-360 days.
2) Notes receivable pledged as at the end of the period
None.
3)Notes receivable which have been endorsed or discounted to other party at the end of period but not yet expired at the balance sheet date
Amount derecognised | Amount not | |
Item | derecognised at the | |
at the end of period | ||
end of period | ||
Bank acceptance bills | 157,428,755.00 | 2,200,000.00 |
Commercial acceptance bills | 58,000,000.00 | |
Total | 157,428,755.00 | 60,200,000.00 |
4)Notes transferred to accounts receivable at the end of period due to non-performance of drawers:
None.
36
5)Disclosure by the method using which the provision for bad debts is made
Ending balance | Beginning balance | ||||||||||
Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||||||||
Type | Percentage | Carrying | Percentage | Carrying value | |||||||
Percentage | of | Percentage | of | ||||||||
Amount | Amount | value | Amount | Amount | |||||||
(%) | provision | (%) | provision | ||||||||
(%) | (%) | ||||||||||
Provision | |||||||||||
for bad | |||||||||||
debts made | |||||||||||
on an | |||||||||||
individual | |||||||||||
basis | |||||||||||
Provision | |||||||||||
for bad | |||||||||||
debts made | 102,808,726.99 | 100.00 | 102,808,726.99 | 633,564,863.60 | 100.00 | 633,564,863.60 | |||||
on a | |||||||||||
collective | |||||||||||
basis | |||||||||||
Including: | |||||||||||
Due within | 102,808,726.99 | 100.00 | 102,808,726.99 | 633,564,863.60 | 100.00 | 633,564,863.60 | |||||
one year | |||||||||||
Total | 102,808,726.99 | 102,808,726.99 | 633,564,863.60 | 633,564,863.60 | |||||||
2. Accounts receivable
Item | Ending balance | Beginning balance | |||||
Accounts receivable | 1,303,961,817.94 | 2,390,628,704.48 | |||||
Less: Provision for bad debts | 6,519,793.50 | 40,248,264.38 | |||||
Net amount | 1,297,442,024.44 | 2,350,380,440.10 | |||||
1) | Disclosure by ageing | ||||||
Ending balance | |||||||
Aging | Accounts | Provision for bad | Percentage of | ||||
receivable | debts | provision (%) | |||||
Within one year | 815,209,223.53 | 4,076,030.53 | 0.50 | ||||
1-2 years | 365,641,471.26 | 1,828,207.35 | 0.50 | ||||
2-3 years | 25,243,277.71 | 126,216.39 | 0.50 | ||||
3-4 years | |||||||
4-5 years | 65,158,500.00 | 325,792.50 | 0.50 | ||||
Over 5 years | 32,709,345.44 | 163,546.73 | 0.50 | ||||
Total | 1,303,961,817.94 | 6,519,793.50 | -- |
37
(Continued)
Beginning balance | |||
Aging | Accounts | Provision for bad | Percentage of |
receivable | debts | provision (%) | |
Within one year | 2,061,611,397.71 | 17,756,721.76 | 0.86 |
1-2 years | 169,910,788.01 | 2,750,302.26 | 1.62 |
2-3 years | 25,034,038.97 | 4,980,647.91 | 19.90 |
3-4 years | 80,122,732.66 | 849,300.97 | 1.06 |
4-5 years | 37,003,019.27 | 1,247,001.75 | 3.37 |
Over 5 years | 16,946,727.86 | 12,664,289.73 | 74.73 |
Total | 2,390,628,704.48 | 40,248,264.38 | -- |
- Credit period of accounts receivable
Business | Credit period |
Shipbuilding | One month after issue of invoices |
Other business | Generally 1 to 6 months |
- Disclosure by the method using which the provision for bad debts is made
Ending balance | Beginning balance | |||||||||||
Book balance | Provision for bad debts | Book balance | Provision for bad debts | |||||||||
Type | Percentage | Carrying value | Percentage | Carrying value | ||||||||
Percentage | Percentage | of | ||||||||||
Amount | Amount | of provision | Amount | Amount | ||||||||
(%) | (%) | provision | ||||||||||
(%) | ||||||||||||
(%) | ||||||||||||
Provision for bad debts | ||||||||||||
made on an individual | 28,437,630.23 | 1.19 | 28,437,630.23 | 100.00 | ||||||||
basis | ||||||||||||
Including: | ||||||||||||
Accounts receivable of | ||||||||||||
which the credit risk | ||||||||||||
has significantly | 28,437,630.23 | 1.19 | 28,437,630.23 | 100.00 | ||||||||
increased since initial | ||||||||||||
recognition | ||||||||||||
Provision for bad debts | ||||||||||||
made on a collective | 1,303,961,817.94 | 100.00 | 6,519,793.50 | 0.50 | 1,297,442,024.44 | 2,362,191,074.25 | 98.81 | 11,810,634.15 | 0.50 | 2,350,380,440.10 | ||
basis | ||||||||||||
Including: | ||||||||||||
Accounts receivable of | ||||||||||||
which the credit risk | ||||||||||||
has not significantly | 1,303,961,817.94 | 100.00 | 6,519,793.50 | 0.50 | 1,297,442,024.44 | 2,362,191,074.25 | 98.81 | 11,810,634.15 | 0.50 | 2,350,380,440.10 | ||
increased since initial | ||||||||||||
recognition | ||||||||||||
Total | 1,303,961,817.94 | -- | 6,519,793.50 | -- | 1,297,442,024.44 | 2,390,628,704.48 | -- | 40,248,264.38 | 2,350,380,440.10 | |||
a) Provision for bad debts made on a collective basis:
38
Accounts receivable of which the credit risk has not significantly increased since initial recognition
Ending balance | |||
Name | |||
Accounts | Provision for bad | Percentage of | |
receivable | debts | provision (%) | |
Within one year | 815,209,223.53 | 4,076,030.53 | 0.50 |
1-2 years | 365,641,471.26 | 1,828,207.35 | 0.50 |
2-3 years | 25,243,277.71 | 126,216.39 | 0.50 |
3-4 years | |||
4-5 years | 65,158,500.00 | 325,792.50 | 0.50 |
Over 5 years | 32,709,345.44 | 163,546.73 | 0.50 |
Total | 1,303,961,817.94 | 6,519,793.50 | - |
Recognition criteria and description of provision for bad debts made on a collective basis:
The Group determines the accounts receivable which have not been tested individually for impairment to be the accounts receivable the credit risk of which has not significantly increased since initial recognition. Based on the actual credit loss for previous years and considering forwarding information for the year, the Group expects the default loss ratio to be 0.5%, determines the expected credit loss of accounts receivable and makes provision for bad debts based on 0.5% of the balance at the balance sheet date.
- Provision for bad debts
Amount of changes during the period | |||||||
Ending | |||||||
Type | Beginning balance | Recovered or | Resale or | Changes in the | Other | ||
balance | |||||||
Provision | written- | scope of | |||||
reversed | changes | ||||||
off | combination | ||||||
Provision for bad debts of | 40,248,264.38 | -813,741.15 | -41,145.50 | -27,132,524.53 | -5,741,059.70 | 6,519,793.50 | |
accounts receivable | |||||||
Total | 40,248,264.38 | -813,741.15 | -41,145.50 | -27,132,524.53 | -5,741,059.70 | 6,519,793.50 | |
Provision for bad debts made, reversed or recovered during the period
None
- Accounts receivable written-off during the period
None
- Top five accounts receivable by ending balance of debtors
39
Percentage of | Ending balance | ||||
Relationship with | ending balance | ||||
Name of entity | Ending balance | Aging | of provision for | ||
the Group | of total accounts | ||||
bad debts | |||||
receivable (%) | |||||
Entity 1 | Third party | 185,343,200.00 | Within 1 years | 14.21 | 926,716.00 |
Entity 2 | Third party | 177,124,800.00 | Within 1 years | 13.58 | 885,624.00 |
Entity 3 | Third party | 95,181,300.00 | Within 1 years | 7.3 | 475,906.50 |
Entity 4 | Third party | 73,148,974.14 | Within 1 years | 5.61 | 365,744.87 |
Entity 5 | Third party | 72,522,074.38 | Within 1 years | 5.56 | 362,610.37 |
Total | 603,320,348.52 | 46.26 | 3,016,601.74 | ||
- Accounts receivable derecognised arising from transfer of financial assets: None
- Amounts of assets and liabilities transferred from accounts receivable with continuing involvement:
None
3. Notes payable
Type | Ending balance | Beginning balance |
Commercial acceptance bills | 107,756,918.79 | 339,956,340.43 |
Bank acceptance bills | 833,254,162.27 | 2,723,458,661.24 |
Total | 941,011,081.06 | 3,063,415,001.67 |
Total notes payable due and unpaid as at the end of the period amounted to RMB0.
Among the above notes payable of the Group, RMB824,749,674.56 had an aging of less than 180 days, and RMB116,261,406.50 had an aging of 181-360 days.
40
4. Accounts payable
- Accounts payable
Item | Ending balance | Beginning balance | |
Materials purchased | 2,880,291,048.77 | 5,215,181,835.65 | |
Payment for construction in progress | 140,059,126.48 | 314,301,192.54 | |
Balance of product payment | 42,428,792.65 | 274,200,204.00 | |
Retention money | 635,138,544.86 | 1,037,723,660.38 | |
Other construction and labour services | 871,749,911.09 | 1,845,991,006.18 | |
Total | 4,569,667,423.85 | 8,687,397,898.75 | |
2) | Aging of accounts payable | ||
Aging | Ending balance | Beginning balance | |
Within one year | 2,352,998,311.96 | 6,160,619,081.93 | |
1-2 years | 673,873,582.69 | 1,230,596,212.92 | |
2-3 years | 540,658,007.36 | 779,736,568.28 | |
Over 3 years | 1,002,137,521.13 | 516,446,035.62 | |
Total | 4,569,667,423.14 | 8,687,397,898.75 | |
- Significant accounts payable with aging over one year
Ending | Including: | Reason for unsettlement or carrying | |
Item | Amount over | ||
balance | forward | ||
one year | |||
China Shipbuilding Industry Complete Logistics | 654,273,377.78 | 133,011,802.28 | Equipment warranty and provisional estimates |
(Guangzhou) Co., Ltd. | |||
CSSC Systems Engineering Research Institute | 374,071,991.46 | 297,343,960.69 | Equipment warranty and provisional estimates |
WARTSILA FINLAND OY | 170,315,573.66 | 122,070,577.31 | Provisional estimates |
China Shipbuilding Industry Corporation 704 Research | 118,791,955.77 | 85,597,476.11 | Equipment warranty, provisional estimates and |
Institute | unfinished projects | ||
Aviation Technology Research Institute of China | 113,274,200.00 | 69,484,200.00 | Equipment warranty and provisional estimates |
Aerospace Science and Industry | |||
Nanjing Keruida Electronic Equipment Co., Ltd. | 95,811,999.99 | 64,381,999.99 | Equipment warranty and provisional estimates |
Supplier 1 | 45,105,000.00 | 45,105,000.00 | Equipment warranty and provisional estimates |
AL NEHRA PETROME FZE | 45,017,175.95 | 45,017,175.95 | Equipment warranty |
Wenzhou Bohong Electric Co., Ltd. | 39,796,740.00 | 37,489,146.86 | Equipment warranty and provisional estimates |
Eastern Shanghai Heavy Machinery Co., Ltd. | 31,854,603.83 | 31,854,603.83 | Equipment warranty and provisional estimates |
Total | 1,688,312,618.4 | 931,355,943.02 | -- |
4 | |||
41
5. | Undistributed profit | |||||
Item | Current period | Corresponding | ||||
period of last year | ||||||
Undistributed profit as at the end of last year before | -1,605,393,084.53 | -2,153,702,475.37 | ||||
adjustment | ||||||
Add: Beginning adjustment to undistributed profit | ||||||
Including: Accounting policy change | ||||||
Changes in business combination under common | ||||||
control | ||||||
Undistributed profit as at the beginning of the year | -1,605,393,084.53 | -2,153,702,475.37 | ||||
after adjustment | ||||||
Add: Net profit attributable to owners of the Parent | 3,102,837,570.74 | 390,750,329.92 | ||||
Company for the current period | ||||||
Add: Transfer from other comprehensive income to | -3,358,682.58 | |||||
retained earnings | ||||||
Less: Statutory surplus reserve set aside | ||||||
Undistributed profits as at the end of the period | 1,494,085,803.63 | -1,762,952,145.45 | ||||
6. | Net current assets | |||||
Item | Ending balance | Beginning balance | ||||
Current assets | 19,764,309,706.08 | 33,235,450,338.19 | ||||
Less: Current liabilities | 16,423,108,703.53 | 29,410,507,753.51 | ||||
Net current assets | 3,341,201,002.55 | 3,824,942,584.68 |
42
7. Total assets less current liabilities
Item | Ending balance | Beginning balance |
Total assets | 37,238,825,773.31 | 52,304,069,154.98 |
Less: Current liabilities | 16,423,108,703.53 | 29,410,507,753.51 |
Total assets less current liabilities | 20,815,717,069.78 | 22,893,561,401.47 |
8. Operating income and operating cost
Item | Current period | Corresponding period of last year | |||||||||
Income | Cost | Income | Cost | ||||||||
Principal business | 4,213,353,546.66 | 4,003,870,049.28 | 7,778,237,332.64 | 7,612,209,764.96 | |||||||
Other business | 79,827,636.90 | 57,373,480.24 | 37,847,987.04 | 14,651,035.85 | |||||||
Total | 4,293,181,183.56 | 4,061,243,529.52 | 7,816,085,319.68 | 7,626,860,800.81 | |||||||
Gross profit from principal business | |||||||||||
Corresponding | |||||||||||
Item | Current period | period of last year | |||||||||
Income from principal business | 4,213,353,546.66 | 7,778,237,332.64 | |||||||||
Cost of principal business | 4,003,870,049.28 | 7,612,209,764.96 | |||||||||
Gross profit | 209,483,497.38 | 166,027,567.68 | |||||||||
(1) Principal business - by product | |||||||||||
Product name | Current period | Corresponding | |||||||||
period of last year | |||||||||||
Income from principal business: | |||||||||||
Ship products | 3,077,585,661.50 | 6,396,382,932.72 | |||||||||
Offshore engineering products | 105,645,690.20 | 320,174,444.06 | |||||||||
Steel structure products | 605,871,872.62 | 357,375,955.95 | |||||||||
Ship maintenance and modification | 250,019,839.88 | 350,573,955.00 | |||||||||
Electromechanical products and others | 174,230,482.46 | 353,730,044.91 | |||||||||
Total | 4,213,353,546.66 | 7,778,237,332.64 | |||||||||
Cost of principal business: | |||||||||||
Ship products | 2,994,497,444.65 | 6,408,256,088.84 | |||||||||
Offshore engineering products | 114,357,275.36 | 308,775,195.75 | |||||||||
Steel structure products | 566,416,293.66 | 336,439,069.43 | |||||||||
Ship maintenance and modification | 190,538,170.88 | 283,999,906.72 | |||||||||
Electromechanical products and others | 138,060,864.73 | 274,739,504.22 | |||||||||
Total | 4,003,870,049.28 | 7,612,209,764.96 | |||||||||
43 |
(2) Principal business - by region
Region | Current period | Corresponding |
period of last year | ||
Income from principal business: | ||
China (including Hong Kong, Macau and Taiwan) | 3,139,489,487.26 | 4,288,158,574.46 |
Other regions in Asia | 267,951,335.87 | 465,016,224.86 |
Europe | 367,886,390.41 | 1,453,931,398.50 |
Oceania | 251,106,911.37 | 452,946,939.48 |
North America | 75,098,988.95 | 185,390,271.74 |
Africa | 111,820,432.80 | 905,706,498.41 |
South America | 27,087,425.19 | |
Total | 4,213,353,546.66 | 7,778,237,332.64 |
Cost of principal business: | ||
China (including Hong Kong, Macau and Taiwan) | 2,874,921,896.24 | 3,927,968,512.95 |
Other regions in Asia | 308,846,613.87 | 482,841,130.20 |
Europe | 401,631,502.32 | 1,565,932,402.43 |
Oceania | 244,018,968.67 | 457,191,994.41 |
North America | 54,197,998.96 | 209,953,701.35 |
Africa | 120,253,069.22 | 927,314,539.90 |
South America | 41,007,483.72 | |
Total | 4,003,870,049.28 | 7,612,209,764.96 |
44
(3) Other operating income and other operating costs
Product name | Current period | Corresponding |
period of last year | ||
Income from other business: | ||
Sale of materials | 1,051,327.23 | 2,048,823.69 |
Sales of scrap materials | 59,215,417.11 | 7,087,797.12 |
Service | 300,817.40 | 2,485,339.00 |
Rental | 9,172,449.56 | 14,528,154.73 |
Energy | 7,528,695.12 | 4,589,817.59 |
Others | 2,558,930.48 | 7,108,054.91 |
Total | 79,827,636.90 | 37,847,987.04 |
Costs of other business | ||
Sale of materials | 190,966.04 | 3,652,671.21 |
Sales of scrap materials | 48,115,864.04 | 354,288.04 |
Service | 123,806.88 | 1,529,120.77 |
Rental | 4,641,345.99 | 3,520,023.13 |
Energy | 3,688,352.50 | 2,320,357.02 |
Others | 613,144.79 | 3,274,575.68 |
Total | 57,373,480.24 | 14,651,035.85 |
45
(4)Revenue from contracts
Shipbuilding and | Steel structure | Ship | |||
engineering | maintenance and | ||||
Breakdown of contracts | related business | Others segment | Total | ||
business | related business | ||||
segment | |||||
segment | segment | ||||
Sub-total by product type | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
Ship products | 3,077,585,661.50 | 3,077,585,661.50 | |||
Offshore engineering | 105,645,690.20 | 105,645,690.20 | |||
products | |||||
Steel structure engineering | 34,513,284.39 | 571,358,588.23 | 605,871,872.62 | ||
products | |||||
Ship maintenance and | 250,019,839.88 | 250,019,839.88 | |||
modification | |||||
Electromechanical products | 97,865,344.13 | 76,365,138.33 | 174,230,482.46 | ||
and others | |||||
Other business | 26,617,571.45 | 2,582,226.75 | 50,627,838.70 | 79,827,636.90 | |
Sub-total by region of | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
operation | |||||
Domestic | 2,358,580,556.03 | 539,737,518.26 | 194,006,072.84 | 126,992,977.03 | 3,219,317,124.16 |
Overseas | 885,781,651.51 | 31,621,069.97 | 156,461,337.92 | 1,073,864,059.40 | |
Sub-total by type of | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
market or customer | |||||
State-owned enterprises | 1,027,784,014.00 | 532,564,725.67 | 97,155,349.96 | 48,923,052.55 | 1,706,427,142.18 |
Private enterprises | 289,496,140.60 | 7,172,792.59 | 51,997,402.08 | 78,069,924.48 | 426,736,259.75 |
Foreign enterprises | 1,927,082,052.94 | 31,621,069.97 | 201,314,658.72 | 2,160,017,781.63 | |
Sub-total by type of | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
contracts | |||||
Fixed price | 3,244,362,207.54 | 532,564,725.67 | 191,487,285.71 | 115,619,848.05 | 4,084,034,066.97 |
Cost plus | 38,793,862.56 | 158,980,125.05 | 11,373,128.98 | 209,147,116.59 | |
Sub-total by date of | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
transfer of goods | |||||
Performed over time | 3,205,379,899.61 | 532,669,214.44 | 96,347,561.59 | 3,834,396,675.64 | |
Performed at a point in time | 38,982,307.93 | 38,689,373.79 | 254,119,849.17 | 126,992,977.03 | 458,784,507.92 |
By contract term | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
Short-term | 712,742,973.65 | 398,521,020.82 | 350,467,410.76 | 90,359,741.25 | 1,552,091,146.48 |
Long-term | 2,531,619,233.89 | 172,837,567.41 | 36,633,235.78 | 2,741,090,037.08 | |
By sales channel | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 |
Direct sales | 2,846,312,119.97 | 539,737,518.26 | 350,467,410.76 | 126,992,977.03 | 3,863,510,026.02 |
Sale through distributors | 398,050,087.57 | 31,621,069.97 | 429,671,157.54 | ||
46
(5) Top five customers by operating income
Percentage of | ||||||
Customers | Relationship with | Current period | total income | |||
the Group | from principal | |||||
business (%) | ||||||
Customer 1 | Third party | 498,054,586.08 | 11.82 | |||
Customer 2 | Third party | 256,237,629.69 | 6.08 | |||
Customer 3 | Third party | 226,361,657.11 | 5.37 | |||
Customer 4 | Third party | 199,291,767.79 | 4.73 | |||
Customer 5 | Third party | 195,364,923.70 | 4.64 | |||
Total | 1,375,310,564.37 | 32.64 | ||||
(6)Purchase amounts from top five suppliers | ||||||
Percentage of | ||||||
Relationship | total operating | |||||
Suppliers | Current period | costs from | ||||
with the Group | ||||||
principal | ||||||
business (%) | ||||||
Supplier 1 | Under common | 1,622,608,152.28 | 40.53 | |||
control of CSSC | ||||||
Supplier 2 | Third party | 44,969,225.93 | 1.12 | |||
Supplier 3 | Third party | 44,529,008.79 | 1.11 | |||
Supplier 4 | Third party | 33,509,572.48 | 0.84 | |||
Supplier 5 | Third party | 31,848,550.19 | 0.8 | |||
Total | 1,777,464,509.67 | 44.4 | ||||
47
9. Finance cost
(1) Breakdown of interest expenses
Item | Current period | Corresponding | |||||
period of last year | |||||||
Interest expenses | 93,466,276.45 | 195,683,733.87 | |||||
Less: Interest income | 132,806,729.54 | 128,327,120.98 | |||||
Add: Net exchange losses | -42,433,302.07 | 9,530,677.58 | |||||
Add: Other expenses | 6,179,970.77 | 9,341,273.01 | |||||
Total | -75,593,784.39 | 86,228,563.48 | |||||
(2) Breakdown of interest costs | |||||||
Item | Current period | Corresponding | |||||
period of last year | |||||||
Interest on bank borrowings and overdraft | |||||||
Interest on bank borrowings due within 5 years | 71,873,322.27 | 167,155,568.34 | |||||
Other borrowings | |||||||
Interest on other borrowings due within 5 years | 33,760,360.05 | 48,418,643.84 | |||||
Other interest expenses | 7,282,594.13 | ||||||
Sub-total | 112,916,276.45 | 215,574,212.18 | |||||
Less: Interest capitalised | 640,478.31 | ||||||
Less: Finance interest discount | 19,450,000.00 | 19,250,000.00 | |||||
Total | 93,466,276.45 | 195,683,733.87 | |||||
(3) Breakdown of interest income | |||||||
Item | Current period | Corresponding | |||||
period of last year | |||||||
Interest income from bank deposits | 131,805,680.42 | 127,146,879.69 | |||||
Interest income from receivables | 1,001,049.12 | 1,180,241.29 | |||||
Total | 132,806,729.54 | 128,327,120.98 |
48
10. Investment income
Item | Current period | Corresponding |
period of last year | ||
Gain on long-term equity investments accounted for | -6,432,971.46 | -2,542,980.91 |
using equity method | ||
Investment income from disposal of long-term equity | 1,630,702,642.39 | |
investments | ||
Gain on re-measurement of remaining equity interest | 1,758,109,549.31 | |
upon loss of control at fair value | ||
Investment income from holding entrusted wealth | 2,293,150.68 | 9,700,821.37 |
management products | ||
Investment income from disposal of financial assets | -11,105,630.33 | -207,793,580.00 |
held-for-trading | ||
Dividend income from holding investments in other | 12,500.00 | 12,500.00 |
equity instruments | ||
Total | 3,373,579,240.59 | -200,623,239.54 |
Other description: Investment income from investment in listed companies and non-listed companies for the period amounted to RMB0 (corresponding period of last year: RMB 0) and RMB3,373,579,240.59 (corresponding period of last year: RMB-200,623,239.54), respectively.
11. Gain on change in fair value
Source of gain on change in fair value | Current period | Corresponding |
period of last year | ||
Change in fair value of financial assets held-for- | 68,496,346.27 | 31,425,173.63 |
trading | ||
Change in fair value of held-for-trading financial | -99,120,937.27 | 233,024,977.65 |
liabilities | ||
Total | -30,624,591.00 | 264,450,151.28 |
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12. Non-operating income
(1) Breakdown of non-operating income
Amount included | |||
Current | Corresponding | in non-recurring | |
Item | period of last | gains and losses | |
period | |||
year | for current | ||
period | |||
Total gain on disposal of non-current | 706,805.12 | 447,925.19 | 706,805.12 |
assets | |||
Including: Gain on disposal of fixed | 706,805.12 | 447,925.19 | 706,805.12 |
assets | |||
Government grants | 992,617.26 | 3,157,656.14 | 992,617.26 |
Compensation for assets relocation | 1,247,867,578.32 | ||
Penalty income | 365,415.09 | 167,217.00 | 365,415.09 |
Negative goodwill from business | 1,760,005.87 | 1,760,005.87 | |
combination not under common control | |||
Others | 177,747.18 | 1,448,874.36 | 177,747.18 |
Total | 4,002,590.52 | 1,253,089,251.01 | 4,002,590.52 |
The amount included in non-recurring gains and losses for the current period was RMB4,002,590.52 (corresponding period of last year: RMB1,253,089,251.01).
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(2) Government grants included in current profit or loss
Current | Correspondi | Relating to | |
Item | ng period of | assets/relating to | |
period | |||
last year | revenue | ||
Grants for use of onshore power by berthing ships | 2,120,000.00 | Relating to revenue | |
Separation and transfer of water, power and gas | 910,064.94 | 910,064.94 | Relating to revenue |
supply and property management business | |||
Quality project funding | 32,166.60 | 96,499.80 | Relating to revenue |
Entrepreneurship-driven employment subsidy | 30,000.00 | Relating to revenue | |
Base construction subsidy | 10,363.80 | 31,091.40 | Relating to assets |
Social Security Subsidy for recruiting people with | |||
non-employment difficulties in the 1st quarter of | 10,021.92 | Relating to revenue | |
2020 | |||
Total | 992,617.26 | 3,157,656.14 | - |
(3) Description of profit from disposal of properties
Non-operating income of the Group for the current period included profit from disposal of properties of RMB0 (corresponding period of last year: RMB0).
13. Income tax expense
- Income tax expense sheet
Corresponding | |||
Item | Current period | period of last | |
year | |||
Current income tax expense | 162,415.67 | 29,434,469.43 | |
1. | China | 191,037.24 | 29,475,982.38 |
2. Hong Kong | |||
3. | Macau income tax | ||
4. | Over-provision(under-provision) in prior years | -28,621.57 | -41,512.95 |
Deferred income tax expense | 16,080,580.72 | 64,550,523.50 | |
Total | 16,242,996.39 | 93,984,992.93 |
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(2) Reconciliation of accounting profit and income tax expenses
Corresponding | ||
Item | Current period | period of last |
year | ||
Total profit | 2,960,004,574.96 | 703,609,855.79 |
Income tax expenses calculated at statutory/applicable tax | 740,001,143.74 | 175,902,463.95 |
rate | ||
Impact of different tax rates for subsidiaries | -4,596,355.55 | -122,732,804.36 |
Impact of adjustment for income tax for previous period | -28,621.57 | -398,986.13 |
Impact of non-taxable income | -312,518,223.90 | -761,970.24 |
Research and development expense including the effect | -47,059,063.17 | -16,916,912.35 |
of deduction | ||
Impact of non-deductible costs, expenses and losses | 192,232.79 | 95,539.58 |
Impact of utilisation of deductible loss for which no | -483,316.47 | -73,186,503.66 |
deferred tax assets were previously recognised | ||
Impact of deductible temporary differences for which no | ||
deferred tax assets are recognised for the year or | -359,264,799.48 | 131,984,166.14 |
deductible losses | ||
Income tax expense | 16,242,996.39 | 93,984,992.93 |
(3) Main taxes and rates |
Tax basis | Tax rate | |
PRC enterprise income tax | Taxable income | 15%、20%、 |
25% | ||
Hong Kong profits tax | Taxable income | 16.5% |
Domestic sales; provision of processing, | 13% | |
repair and repair services; rental income | ||
-Value-added taxNote | Revenue from construction and installation | 9% |
business | ||
Modern services industry | 6% | |
-City maintenance and construction | Turnover tax payable | 7% |
tax | ||
-Educational surcharge | Turnover tax payable | 3% |
-Local educational surcharge | Turnover tax payable | 2% |
Notes on taxpayers subject to different enterprise income tax rates:
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Name of entity | Tax rate | Remarks |
The Company | 25% | |
CSSC Huangpu Wenchong Shipbuilding Company Limited | 15% | |
Guangzhou Wenchong Shipyard Co., Ltd. | 15% | |
Guangzhou Wenchuan Heavy Industrial Co., Ltd. | 15% | |
Wah Shun International Marine Limited | 16.50% | Note |
WahLoong International Marine Limited | 16.50% | Note |
Zhanjiang Nanhai Ship Hi-Tech Services Ltd. | 20% | |
Guangzhou Xingji Maritime Engineering Design Co., Ltd. | 20% | |
Other subsidiaries | 25% |
Note: Wah Shun and WahLoong are registered in Hong Kong and subject to Hong Kong income tax, with the tax rate of 16.50%.
-
Preferential taxation treatment
1. Value-added tax
- Export income: The Group is an enterprise engaged in production and operation. Tax relief, credit and rebate policy is applicable to all of its self-produced goods for export. The tax rebate rate is 13% for ship products and 9% for steel structure products.
- Revenue from military products: Value-added tax is exempted for military production (order) contracts upon completion of the relevant procedures for tax relief
- Revenue from software: In accordance with the Circular of the State Administration of Taxation of the Ministry of Finance on the Value-added Tax Policy of Software Products (Cai Shui [2011] No. 100), for sales of self-developed software by a value-added tax general taxpayer, the portion of actual value-added tax burden in excess of 3% may be recovered upon payment in accordance with the relevant policy.
- In accordance with the relevant regulations of Announcement on Deepening the Policies Related to Valued-Added Tax Reform (Ministry of Finance, State Tax Administration and General Administration of Customs [2019] No. 39) issued by the Ministry of Finance, the Tax Administration and the General Administration of Customs, from 1 April 2019 to 31 December
2021, some of the Group's subsidiaries engaged in production or livelihood services is allowed to have a 10% weighted deduction of creditable input VAT in the current period from the tax amount payable.
2. Enterprise income tax
53
- CSSC Huangpu Wenchong Shipbuilding Company Limited obtained the Certificate of Hi- tech Enterprise (certificate no.: GR201844011040) on 28 November 2018, with a validity period of three years. Its enterprise income tax for the current period was paid at a rate of 15%.
Guangzhou Wenchong Chonggong Co. Ltd. obtained the Certificate of Hi-tech Enterprise (certificate no.: GR201844002831) on 28 November 2018, with a validity period of three years. Its enterprise income tax for the current period was paid at a rate of 15%.
Guangzhou Wenchong Shipyard Co., Ltd. obtained the Certificate of Hi-tech Enterprise (certificate no.: GR201944010453) on 2 December 2019, with a validity period of three years. Its enterprise income tax for the current period was paid at a rate of 15%.
-
Zhanjiang Nanhai and Xingji are small low-profit enterprises, with the income tax rate of 20% for the current period.
14. Earnings per share
Basic earnings per share shall be calculated by profit or loss attributable to ordinary equity holders of the Company (the numerator) divided by the weighted average number of ordinary shares outstanding (the denominator) during the period.
The numerator of the diluted earnings per share attributable to ordinary shareholders is the Company's net profit after adjustment of the following factors: (1) the recognised interest expense of dilutive potential ordinary shares; (2) income or expense that would result from the conversion of dilutive potential ordinary shares; and (3) the related income tax effects of the above adjustments.
The denominator of diluted earnings per share is equal to the sum of: (1) the weighted average number of issued ordinary shares of the Company in basic earnings per share; and (2) the weighted average number of shares after conversion of the dilutive potential ordinary shares into ordinary shares.
In calculating the weighted average number of shares after conversion of dilutive potential ordinary shares into ordinary shares, the dilutive potential ordinary shares which were converted in previous years are assumed to be converted at the beginning of current period and the dilutive potential ordinary shares which were converted during current period are assumed to be converted at the date of issue.
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The calculation of basic earnings per share and diluted earnings per share are as follows:
Item | Current period | Corresponding | |
No. | period of last year | ||
Net profit attributable to shareholders of the Parent Company | 1 | 3,102,837,570.74 | 390,750,329.92 |
Non-recurring gains and losses attributable to the Parent Company | 2 | 3,401,798,603.04 | 812,658,713.76 |
Net profit attributable to shareholders of the Parent Company, net of non- | 3=2-1 | -298,961,032.30 | -421,908,383.84 |
recurring gains and losses | |||
Total number of shares at the beginning of the year | 4 | 1,413,506,378.00 | 1,413,506,378.00 |
Number of shares increased due to transferring capital reserve into share | 5 | ||
capital or dividend distribution of shares (I) | |||
Number of shares increased due to issuance of new shares or debt for | 6 | ||
equity swap (II) | |||
Number of months from next month to the year-end regarding the number | 7 | ||
of shares (II) | |||
Number of shares decreased due to stock repurchase | 8 | ||
Number of months from the next month to the year-end regarding the | 9 | ||
decrease of shares | |||
Number of shares decreased due to capital reduction | 10 | ||
Number of months in the reporting period | 11 | 6 | 6 |
Weighted average number of ordinary shares outstanding | 12 | 1,413,506,378.00 | 1,413,506,378.00 |
Weighted average number of ordinary shares outstanding following | |||
adjustments in relation to business combination under common control | 13 | 1,413,506,378.00 | 1,413,506,378.00 |
for the purposes of earnings per share after deduction of non-recurring | |||
gains and losses | |||
Basic earnings per share(I) | 14=1÷12 | 2.1951 | 0.2764 |
Basic earnings per share(II) | 15=3÷13 | -0.2115 | -0.2985 |
Potential diluted interests of ordinary shares recognised as expense | 16 | ||
Transfer fee | 17 | ||
Income tax rate | 18 | 0.25 | 0.25 |
Weighted average amount of ordinary shares increased due to warrant, | 19 | ||
share options, and convertible bonds,etc. | |||
Diluted earnings per share (Ⅰ ) | 20=[1+(16-18)×(1- | 2.1951 | 0.2764 |
17)]÷(12+19) | |||
Diluted earnings per share (Ⅱ) | 21=[3+(16-18)×(1- | -0.2115 | -0.2985 |
17)]÷(13+19) | |||
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15. Dividends
Final dividends for the year-ended 31 December 2019 totaling RMB0 (corresponding period of last year: RMB0) were declared and paid during the six months ended 30 June 2020.
The Company will not distribute the interim dividends for the six month period ended 30 June 2020 (corresponding period of last year: Nil).
16. Depreciation and amortization
Corresponding | ||
Current period | period of last | |
year | ||
Depreciation of investment properties | 104,785.35 | 314,356.08 |
Depreciation of fixed assets | 205,517,070.18 | 363,588,104.88 |
Depreciation of righ-to-use assets | 14,259,373.53 | 26,287,149.55 |
Depreciation of intangible assets | 17,099,498.90 | 31,133,922.41 |
Amortisation of long-term prepaid expenses | 2,208,464.35 | 7,361,072.30 |
Total | 239,189,192.31 | 428,684,605.22 |
17. Gains (or losses) on disposal of investments or properties
Gains (or losses) on disposal of investments during the current period were RMB3,388,812,191.70 (corresponding period of last year: RMB0), including the gain on remeasurement of remaining equity interest upon the income from the disposal of part of the equity of GSI and loss of control at fair value amounted to RMB3,389,557,049.90, equity income amounted to RMB86,261.80 arising from the disposal of Zhanjiang Nanhai Naval New Technology & Service Co., Ltd., and equity income amounted to RMB-831,120.00arising from the disposal of Guangzhou Nanhuan Environmental Service Co., Ltd.* (廣州南環環境服務有限公司).
18. Gains on disposal of properties during the current period were RMB0 (corresponding period of last year: RMB0)
56
IV. SEGMENT INFORMATION
1. Basis for determination of reportable segments and accounting policies
According to the Group's internal organizational structure, management requirements, and internal reporting system, the segments of the operation can be divided into 4 categories based on the different types of main products. The management of the Group evaluates operating outcomes of these segments periodically in order to make decisions concerning resource distributions and operating result assessments. The Group is currently organized into shipbuilding, steel structure engineering, ship repair and related business and others.
Segment reporting information is disclosed according to accounting policies and measurement basis used in reports presented by each segment to the management. These accounting policies and measurement basis are consistent with those adopted in drafting financial statements.
2. Financial information of reportable segments during the period
- Profit before tax, assets and liabilities for segments by product or business
57
Current period
Shipbuilding and | Ship | Inter-segment | ||||
Steel structure | maintenance and | Others | ||||
Item | related business | elimination and | Total | |||
engineering | related business | segment | ||||
segment | adjustment | |||||
segment | ||||||
Operating income | 4,557,185,227.57 | 789,525,505.97 | 730,715,372.75 | 363,549,338.85 | -2,147,794,261.58 | 4,293,181,183.56 |
Including: Revenue from | 3,244,362,207.54 | 571,358,588.23 | 350,467,410.76 | 126,992,977.03 | 4,293,181,183.56 | |
external transactions | ||||||
Revenue from intra- segment | 1,312,823,020.03 | 218,166,917.74 | 380,247,961.99 | 236,556,361.82 | -2,147,794,261.58 | |
transactions | ||||||
Operating costs | 4,429,678,021.86 | 746,094,658.99 | 686,121,489.04 | 347,511,461.28 | -2,148,162,101.65 | 4,061,243,529.52 |
Charges during the period | 334,713,710.98 | 52,264,937.53 | 45,203,471.60 | 16,895,942.87 | 10,080,137.92 | 459,158,200.90 |
Segment total profit | -363,199,831.82 | -32,938,305.12 | -10,690,106.42 | 1,241,750,735. | 2,125,082,082.79 | 2,960,004,574.96 |
53 | ||||||
Total assets | 24,365,546,055.01 | 4,621,997,118.89 | 1,684,195,558.13 | 13,393,700,078 | -6,826,613,037.45 | 37,238,825,773.31 |
.73 | ||||||
Total liabilities | 17,677,225,734.41 | 3,353,263,096.59 | 1,221,885,403.05 | 1,956,987,314. | -3,704,134,920.75 | 20,505,226,627.45 |
15 | ||||||
Supplementary information | ||||||
Capital expenditure | 1,579,724,746.34 | 250,715,508.29 | 95,092,520.62 | 96,936,847.50 | -196,860,891.19 | 1,825,608,731.56 |
Impairment loss recognized | 149,046,401.45 | 7,972,438.34 | 3,106,628.84 | 3,820,267.05 | 100,000.00 | 164,045,735.68 |
during current period | ||||||
Depreciation and amortisation | 178,731,106.73 | 23,240,066.64 | 21,547,449.07 | 20,067,617.78 | -4,397,047.91 | 239,189,192.31 |
expense | ||||||
58
Corresponding period of last year
Shipbuilding and | Steel structure | Ship maintenance | Inter-segment | |||
Item | related business | and related | Others segment | elimination and | Total | |
engineering | ||||||
segment | business segment | adjustment | ||||
Operating income | 8,163,215,956.79 | 438,843,173.74 | 281,878,559.73 | 742,751,349.95 | -1,810,603,720.53 | 7,816,085,319.68 |
Including: Revenue from external | 6,968,745,653.37 | 320,013,669.12 | 279,054,865.73 | 248,271,131.46 | 7,816,085,319.68 | |
transactions | ||||||
Revenue from intra- segment | 1,194,470,303.42 | 118,829,504.62 | 2,823,694.00 | 494,480,218.49 | -1,810,603,720.53 | |
transactions | ||||||
Operating costs | 8,143,237,454.33 | 413,911,766.76 | 243,599,568.60 | 719,951,004.87 | -1,893,838,993.75 | 7,626,860,800.81 |
Charges during the period | 527,118,126.73 | 42,485,743.23 | 97,203,992.58 | 30,341,273.90 | -1,840,323.86 | 695,308,812.58 |
Segment total profit | 762,844,365.46 | -15,955,374.31 | -57,906,889.17 | 10,337,143.29 | 4,290,610.52 | 703,609,855.79 |
Total assets | 47,611,012,116.40 | 1,388,714,530.54 | 2,417,802,622.36 | 12,653,779,245.18 | -16,514,772,789.35 | 47,556,535,725.1 |
3 | ||||||
Total liabilities | 32,354,058,427.77 | 1,112,569,618.23 | 2,471,657,616.79 | 2,948,791,231.06 | -6,473,957,967.23 | 32,413,118,926.6 |
2 | ||||||
Supplementary information | ||||||
Capital expenditure | 1,284,222,110.56 | 2,702,028.55 | 12,143,108.54 | 2,758,734.95 | -300,000,000.00 | 1,001,825,982.60 |
Impairment loss recognized during | 77,708,026.97 | 558,718.94 | -199,251.13 | 30,761.71 | -28,084.55 | 78,070,171.94 |
current period | ||||||
Depreciation and amortisation | 347,843,378.03 | 3,474,563.59 | 36,222,072.15 | 42,345,016.48 | -1,200,425.03 | 428,684,605.22 |
expense | ||||||
59
(2)Revenue from external transactions by origin of revenue
Revenue from external transactions | Current period | Corresponding | |
period of last year | |||
Revenue from external transactions derived from | 3,219,317,124.16 | 4,326,006,561.50 | |
China | |||
Revenue from external transactions derived from other | 1,073,864,059.40 | 3,490,078,758.18 | |
countries | |||
Total | 4,293,181,183.56 | 7,816,085,319.68 | |
(3)Non-current assets by location of assets | |||
Total non-current assets | Ending balance | Beginning balance | |
Non-current assets within China | 9,863,622,974.36 | 14,522,172,411.45 | |
Non-current assets in other countries | 625,076,129.61 | 640,462,653.28 | |
Total | 10,488,699,103.97 | 15,162,635,064.73 |
Note: Total non-current assets exclude financial assets and total deferred tax assets.
§9 DOCUMENTS AVAILABLE FOR INSPECTION
The 2020 interim report will be available at the following addresses and websites:
HKEXnews website of the Stock Exchange ofwww.hkexnews.hk Hong Kong Limited
Website of the Shanghai Stock Exchange Place for inspection of the interim report
By order of the Board
CSSC Offshore & Marine Engineering (Group) Company Limited
Han Guangde
Chairman
Guangzhou, 28 August 2020
As at the date of this announcement, the Board comprises eleven Directors, namely executive Directors Mr. Han Guangde, Mr. Chen Zhongqian, Mr. Chen Liping, Mr. Sheng Jigang, Mr. Xiang Huiming and Mr. Chen Ji, non-executive Director Mr. Shi Jun and independent non-executive Directors Mr. Wang Yichu, Mr. Min Weiguo, Mr. Liu Renhuai and Mr. Yu Shiyou.
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COMEC - CSSC Offshore & Marine Engineering (Group) Company Limited published this content on 28 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2020 14:13:13 UTC