Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Jiu Rong Holdings Limited
  6. News
  7. Summary
    2358   KYG5139B1014

JIU RONG HOLDINGS LIMITED

(2358)
  Report
SummaryChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Jiu Rong : Interim Report 2020

09/17/2020 | 05:00am EDT

CONTENTS

  1. Corporate Information
  2. Condensed Consolidated Statement of Comprehensive Income
  3. Condensed Consolidated Statement of Financial Position
  1. Condensed Consolidated Statement of Changes in Equity
  2. Condensed Consolidated Statement of Cash Flows

9 Notes to the Condensed Consolidated Financial Statements

22 Management Discussion and Analysis

  1. Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares
  2. Directors' Interests and Short Positions in Shares, Underlying Shares and Debenture

02 Jiu Rong Holdings Limited

CORPORATE INFORMATION

DIRECTORS

Executive Directors

Mr. Siu Chi Ming

Mr. Yin Jianwen

Independent Non-executive Directors

Mr. Wang Ning

Mr. Chen Zheng

Mr. Yuan Qian Fei

AUDIT COMMITTEE

Mr. Yuan Qian Fei (Chairman)

Mr. Chen Zheng

Mr. Wang Ning

NOMINATION COMMITTEE

Mr. Chen Zheng (Chairman)

Mr. Wang Ning

Mr. Yuan Qian Fei

REMUNERATION COMMITTEE

Mr. Wang Ning (Chairman)

Mr. Yuan Qian Fei

Mr. Chen Zheng

Mr. Siu Chi Ming

REGISTERED OFFICE

Cricket Square, Hutchins Drive

P.O. Box 2681

Grand Cayman, KY1-1111

Cayman Islands

AUTHORISED REPRESENTATIVES

(to accept service of process and notices under Part XI of the Hong Kong Companies Ordinance)

Mr. Siu Chi Ming

Mr. Yin Jianwen

AUDITOR

ZHONGHUI ANDA CPA Limited Certified Public Accountants Unit 701, 7/F, Citicorp Centre 18 Whitfield Road Causeway Bay

Hong Kong

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Suntera (Cayman) Limited Royal Bank House, 3rd Floor

24 Shedden Road, George Town Grand Cayman KY1-1110 Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor Services

Limited

Rooms 1712-16, 17th Floor

Hopewell Centre

183 Queen's Road East

Wanchai

Hong Kong

HEAD OFFICE AND PRINCIPAL PLACE OF

PRINCIPAL BANKERS

BUSINESS IN HONG KONG

China Everbright Bank Company Limited

Flat 8, 49th Floor

Mizuho Bank Limited

Office Tower, Convention Plaza

1 Harbour Road

STOCK CODE

Wanchai

The Stock Exchange of Hong Kong Limited: 2358

Hong Kong

COMPANY SECRETARY

WEBSITE

http://www.irasia.com/listco/hk/2358

Mr. Siu Chi Ming

http://www.jiurongkg.com

AUTHORISED REPRESENTATIVES

(for the purposes of the listing rules) Mr. Siu Chi Ming

Mr. Yin Jianwen

Interim Report 2020 03

The board of directors (the "Directors") (the "Board") of Jiu Rong Holdings Limited (the "Company") are pleased to present unaudited results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2020 (the "Period") together with the comparative figures for the corresponding period of 2019.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2020

Unaudited

Six months ended 30 June

2020

2019

Notes

HK$'000

HK$'000

(Restated)

Revenue

4

226,246

245,432

Cost of sales

(175,842)

(184,974)

Gross profit

50,404

60,458

Other income and gains

5

14,469

14,886

Selling and distribution costs

(7,741)

(10,625)

Administrative expenses

(15,212)

(17,191)

Other operating expenses

(89)

(507)

Finance costs

6

(11,494)

(13,736)

Share of loss of an associate

(1,649)

(639)

Profit before income tax

7

28,688

32,646

Income tax expense

8

(6,934)

(3,659)

Profit after income tax for the period

21,754

28,987

Other comprehensive (loss)/income for the

period, net of tax:

Items that will not be reclassified to

profit or loss:

Fair value changes of equity investments at fair value

through other comprehensive income

-

(884)

Items that may be reclassified to profit or loss:

Exchange differences on translation of foreign

operations

(7,772)

(752)

OTHER COMPREHENSIVE (LOSS)/INCOME FOR

THE PERIOD, NET OF TAX

(7,772)

(1,636)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

ATTRIBUTABLE TO OWNERS OF THE COMPANY

13,982

27,351

Earnings per share

9

- Basic and diluted

HK0.40 cents

HK0.53 cents

04 Jiu Rong Holdings Limited

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

Notes

HK$'000

HK$'000

NON-CURRENT ASSETS

Property, plant and equipment

11

424,630

412,547

Investment properties

576,646

592,018

Right-of-use assets

6,075

6,517

Investment in an associate

184,120

157,373

Deferred tax assets

285

119

Equity investments at fair value through other

comprehensive income

35,281

35,968

Prepayments, deposits and other receivables

13,500

13,500

1,240,537

1,218,042

CURRENT ASSETS

Inventories

6,705

20,190

Properties held for sale

204,558

202,157

Trade and notes receivables

12

324,910

408,019

Prepayments, deposits and other receivables

142,584

48,452

Investments at fair value through profit or loss

3

9,334

20,643

Tax recoverable

-

360

Pledged bank deposits

-

23,392

Cash and cash equivalents

419,779

109,248

1,107,870

832,461

CURRENT LIABILITIES

Trade and notes payables

13

703,573

858,950

Other payables and accruals

18,260

26,107

Lease liabilities

1,477

1,685

Contract liabilities

302,048

251,362

Bank and other loans

14

656,078

279,912

Deferred government grant

8,192

5,960

Tax payable

5,790

-

1,695,418

1,423,976

NET CURRENT LIABILITIES

(587,548)

(591,515)

TOTAL ASSETS LESS CURRENT LIABILITIES

652,989

626,527

Interim Report 2020 05

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

Notes

HK$'000

HK$'000

NON-CURRENT LIABILITIES

Deferred government grant

49,079

36,554

Deferred tax liabilities

64,694

65,423

Lease liabilities

5,246

4,562

119,019

106,539

NET ASSETS

533,970

519,988

EQUITY

Equity attributable to owners of the Company

Issued capital

15

547,200

547,200

Reserves

17

(13,230)

(27,212)

TOTAL EQUITY

533,970

519,988

06 Jiu Rong Holdings Limited

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2020

Unaudited

Attributable to owners of the Company

Foreign

Equity

Share-

Share

Statutory

currency

investment

based

Issued

premium

Contributed

surplus

translation

revaluation

payment

Accumulated

Total

capital

account*

surplus*

reserve*

reserve*

reserve*

reserve*

losses*

equity

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

For the six months ended 30 June 2020

(unaudited)

At 1 January 2020

547,200

179,968

4,990

5,876

(24,256)

(2,993)

27,359

(218,156)

519,988

Transfer to statutory surplus reserve

-

-

-

3,492

-

-

-

(3,492)

-

Total comprehensive income for the period

-

-

-

-

(7,772)

-

-

21,754

13,982

At 30 June 2020

547,200

179,968

4,990

9,368

(32,028)

(2,993)

27,359

(199,894)

533,970

For the six months ended 30 June 2019

(unaudited)

At 1 January 2019

547,200

179,968

4,990

2,693

(17,420)

(1,045)

-

(253,410)

462,976

Transfer to statutory surplus reserve

-

-

-

-

-

-

-

-

-

Total comprehensive income for the period

-

-

-

-

(752)

(884)

-

28,987

27,351

At 30 June 2019

547,200

179,968

4,990

2,693

(18,172)

(1,929)

-

(224,423)

490,327

  • These reserve accounts comprise the consolidated reserves in the consolidated statement of financial position.

Interim Report 2020 07

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2020

Unaudited

Six months ended 30 June

2020

2019

HK$'000

HK$'000

Net cash outflow from operating activities

(89,648)

(138,367)

Net cash inflow/(outflow) from investing activities

621

(54,902)

Net cash inflow from financing activities

399,558

285,799

Net increase in cash and cash equivalents

310,531

92,530

Cash and cash equivalents at beginning of the period

109,248

42,627

Cash and cash equivalents at end of the period

419,779

135,157

08 Jiu Rong Holdings Limited

The Board of Directors would like to elaborate the adjustments made to the interim results for the six months ended 30 June 2019:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2019

Unaudited

Unaudited

Notes

HK$'000

HK$'000

HK$'000

(Restated)

Revenue

1

595,605

(350,173)

245,432

Cost of sales

1

(535,147)

350,173

(184,974)

Gross profit

60,458

60,458

Other income and gains

14,886

14,886

Selling and distribution costs

(10,625)

(10,625)

Administrative expenses

(17,191)

(17,191)

Other operating expenses

(507)

(507)

Finance costs

(13,736)

(13,736)

Share of loss of an associate

(639)

(639)

PROFIT BEFORE TAX

32,646

32,646

Income tax expense

(3,659)

(3,659)

PROFIT FOR THE PERIOD ATTRIBUTABLE

28,987

28,987

TO OWNERS OF THE COMPANY

Other comprehensive loss for the period,

net of tax:

Items that will not be reclassified to profit or

loss:

Fair value changes of equity investments at fair

value through other comprehensive income

(884)

(884)

Items that may be reclassified to

profit or loss:

Exchange differences on translation of

foreign operations

(752)

(752)

OTHER COMPREHENSIVE LOSS

(1,636)

(1,636)

FOR THE PERIOD, NET OF TAX

TOTAL COMPREHENSIVE INCOME

FOR THE PERIOD ATTRIBUTABLE

27,351

27,351

TO OWNERS OF THE COMPANY

Notes:

1. For certain sales of spare parts related to digital video business and new energy vehicle business, the Group's roles mainly include handling the sales and purchases orders and provide processing services. The Group acted as an agent's role instead of as a principal. As such, audit adjustments were proposed to record these sales and the corresponding costs of sales on a net basis instead of on a gross basis in 2019 annual results, as a result, the Group adjusted the above impacts on the 2019 interim results and disclosed the restated comparative figures accordingly. The adjustments will not have any impact on the profit of the Group.

Interim Report 2020 09

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

  1. BASIS OF PREPARATION
    These unaudited condensed financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA") and the applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
  2. ACCOUNTING POLICIES
    The accounting policies used in the preparation of the unaudited interim condensed consolidated financial information are consistent with those followed in the preparation of the Group's financial information for the year ended 31 December 2019 except for the application of the new and revised standards, amendments and interpretations ("new and revised HKFRSs") issued by the HKICPA, which have become effective in the current period.
    The Group has not yet adopted any new and amendments to HKFRSs that have been issued but are not yet effective. The Group is in the process of assessing the impact of the adoption of such new and amendments to HKFRSs on the Group's results and financial position.
  3. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following disclosures of fair value measurements use a fair value hierarchy that categorises into three levels the inputs to valuation techniques used to measure fair value:

Level 1 inputs:

quoted prices (unadjusted) in active markets for identical assets or liabilities that

the Group can access at the measurement date.

Level 2 inputs:

inputs other than quoted prices included within level 1 that are observable for

the asset or liability, either directly or indirectly.

Level 3 inputs:

unobservable inputs for the asset or liability.

The Group's policy is to recognise transfers into and transfers out of any of the three levels as of the date of the event or change in circumstances that caused the transfer.

10 Jiu Rong Holdings Limited

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

3. FAIR VALUE MEASUREMENTS (continued)

  1. Disclosures of level in fair value hierarchy at 30 June 2020:

Fair value measurements using:

Total

Description

Level 1

Level 2

Level 3

2020

HK$'000

HK$'000

HK$'000

HK$'000

Recurring fair value

measurements:

Investment properties

-

576,646

-

576,646

Investments at fair value

through profit or loss

Listed securities outside

Hong Kong

9,334

-

-

9,334

Equity investments at

fair value through other

comprehensive income

Listed securities outside

Hong Kong

24,600

-

-

24,600

Total recurring fair value

measurements

33,934

576,646

-

610,580

  1. Disclosures of level in fair value hierarchy at 31 December 2019:

Fair value measurements using:

Total

Description

Level 1

Level 2

Level 3

2019

HK$'000

HK$'000

HK$'000

HK$'000

Recurring fair value

measurements:

Investment properties

-

592,018

-

592,018

Investments at fair value

through profit or loss

Listed securities outside

Hong Kong

20,643

-

-

20,643

Equity investments at

fair value through other

comprehensive income

Listed securities outside

Hong Kong

25,080

-

-

25,080

Total recurring fair value

measurements

45,723

592,018

-

637,741

Interim Report 2020 11

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

4. SEGMENT INFORMATION

The chief operating decision-maker has been identified as the Board. The Board reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.

Reportable segments

The Group has five reportable segments during the Period (30 June 2019: five segments). The following summary describes the operations in the Group's reportable segments:

  1. Digital Video Business
    The Group through its wholly owned subsidiary, Soyea Jiu Rong Technology Co., Ltd.* ( 源久融技有限公司 ) ("Soyea Jiu Rong") carries out the research and development, manufacturing and sales of digital television ("TV"), high definition liquid crystal display TV and set-top box as well as provision of application of solutions regarding integration of tele- communication, TV and internet in the digital audio visual industry.
  2. New Energy Vehicles Business
    The Group through its wholly owned subsidiary, Jiu Rong New Energy Science and Technology Limited* ( 久融新能源科技有限公司 ) ("Jiu Rong New Energy") carries out the construction, application and management of new energy vehicles and related products, charging facilities and intelligent management systems.
  3. Cloud Ecological Big Data Business
    The Group through its wholly owned subsidiary, Hangzhou Yunqi Cloud Data Limited* ( 杭 州雲棲雲數據有限公司 ) ("Yunqi Cloud Data") carries out the application and management of cloud ecological big data.
  4. Properties Development
    The Group through its wholly owned subsidiary, Hangzhou Lu Yun Property Limited* ( 杭 州綠雲置業有限公司 ) carries out the properties development of big data industrial park in Hangzhou. It is expected that the park will establish a "Cloud Ecological System" to build a new generation of information technology (such as AR/VR, face recognition, digital maps, etc.) and communication technology, such as Internet of Things, big data, cloud computing, (such as 5G, LTE-V,NB-IOT, etc.) throughout the cloud industry park in all aspects, to create the country's first all-intelligent perception, interoperability cloud ecological park. The Group completed the acquisition of 46% equity interests of Heilongjiang Xin Luzhou Real Estate Development Limited* ( 黑龍江新綠洲房地產開發有限公司 ) ("Xin Luzhou") in 2018, Xin Luzhou will be an associate of the Company to principally engage in the development of industrial park, commercial and residential properties in Limin Avenue, Limin Development Zone, Harbin, the PRC.
  • For identification purpose only

12 Jiu Rong Holdings Limited

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

4. SEGMENT INFORMATION (continued)

  1. Properties Investments

The Group through its wholly owned subsidiary, Hangzhou Lu Yun Property Limited* ( 杭州 綠雲有限公司 ) to conduct the properties investment for rental income from the big data industrial park in Hangzhou.

The revenue and gain generated by each of the Group's operating segments and segment assets are summarised as follows:

Six months ended 30 June 2020

Cloud

New Energy

Ecological

Digital Video

Vehicles

Big Data

Properties

Properties

Business

Business

Business

Development

Investments

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Reporting segment revenue from external

customers

99,381

95,171

4,312

-

27,382

226,246

Reporting segment profit/(loss) before

income tax

7,681

32,955

2,707

-

(14,580)

28,763

Reporting segment assets

675,963

1,025,541

254,460

186,030

576,646

2,718,640

Six months ended 30 June 2019 (Restated)

Cloud

New Energy

Ecological

Digital Video

Vehicles

Big Data

Properties

Properties

Business

Business

Business

Development

Investments

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Reporting segment revenue from external

customers

129,686

81,290

8,450

-

26,006

245,432

Reporting segment profit/(loss) before

income tax

7,851

21,368

1,004

-

2,804

33,027

Reporting segment assets

441,023

865,490

3,878

361,508

365,813

2,037,712

  • For identification purpose only

Interim Report 2020 13

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

4. SEGMENT INFORMATION (continued)

The Group's segment profit/(loss) reconciles to the Group's profit before income tax as presented in its Interim Financial Statements as follows:

Unaudited

Six months ended 30 June

2020

2019

HK$'000

HK$'000

Profit

Total reporting segment profit before income tax

28,763

33,027

Unallocated corporate income/(expenses)

(75)

(381)

Unallocated finance costs

-

-

Consolidated profit before income tax

28,688

32,646

Disaggregation of revenue from contracts with customers:

Six months ended 30 June 2020

New Energy

Cloud

Digital Video

Vehicles

Ecological Big

Properties

Properties

Segments

Business

Business

Data Business

Development

Investments

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Geographical markets

HK

62,344

-

-

-

-

62,344

PRC

37,037

95,171

4,312

-

27,382

163,902

Total

99,381

95,171

4,312

-

27,382

226,246

Major products and services

Sale of digital video products

99,381

-

-

-

-

99,381

Provision of New Energy Vehicles charging

services income

-

95,171

-

-

-

95,171

Provision of big data services income

-

-

4,312

-

-

4,312

Rental and services income

-

-

-

-

27,382

27,382

Total

99,381

95,171

4,312

-

27,382

226,246

Timing of revenue recognition

At a point in time

99,381

95,171

4,312

-

27,382

226,246

Over time

-

-

-

-

-

-

Total

99,381

95,171

4,312

-

27,382

226,246

14 Jiu Rong Holdings Limited

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

4. SEGMENT INFORMATION (continued)

Six months ended 30 June 2019 (Restated)

New Energy

Cloud

Digital Video

Vehicles

Ecological Big

Properties

Properties

Segments

Business

Business

Data Business

Development

Investments

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Geographical markets

HK

75,515

-

-

-

-

75,515

PRC

11,560

81,290

8,450

-

26,006

127,306

Cuba

42,611

-

-

-

-

42,611

Total

129,686

81,290

8,450

-

26,006

245,432

Major products and services

Sale of digital video products

129,686

-

-

-

-

129,686

Provision of New Energy Vehicles charging

services income and sales of new energy

vehicles spare parts

-

81,290

-

-

-

81,290

Provision of big data services income

-

-

8,450

-

-

8,450

Rental and services income

-

-

-

-

26,006

26,006

Total

129,686

81,290

8,450

-

26,006

245,432

Timing of revenue recognition

At a point in time

129,686

81,290

8,450

-

26,006

245,432

Over time

-

-

-

-

-

-

Total

129,686

81,290

8,450

-

26,006

245,432

5. OTHER INCOME AND GAINS

An analysis of the Group's other income and gains is as follows:

Unaudited

Six months ended 30 June

2020

2019

HK$'000

HK$'000

Bank interest income

1,120

729

Dividend income

6,603

-

Fair value change in investments at fair value through

profit or loss

49

1,463

Loss on sale of investments at fair value through

profit and loss

(861)

-

Government grant

4,124

3,211

Loan interest income

2,995

6,732

Net foreign exchange difference

-

1,607

Others

439

1,144

14,469

14,886

Interim Report 2020 15

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

6. FINANCE COSTS

Unaudited

Six months ended 30 June

2020

2019

HK$'000

HK$'000

Interest on loans wholly repayable within five years

- Bank loans

9,116

6,583

- Other loans

1,316

6,688

Interest expense on lease liabilities

1,062

465

11,494

13,736

7. PROFIT BEFORE INCOME TAX

Profit before income tax is arrived at after charging:

Unaudited

Six months ended 30 June

2020

2019

HK$'000

HK$'000

Depreciation of property, plant and equipment

23,924

14,276

Depreciation of right-of-use assets

843

445

Employee benefit expenses (including directors'

remuneration):

Wages and salaries

17,683

17,037

Pension scheme contributions

22

21

42,472

31,779

Foreign exchange profit/(loss), net

(18)

1,607

16 Jiu Rong Holdings Limited

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

8. INCOME TAX EXPENSE

No provision of Hong Kong Profit Tax has been provided in the Interim Financial Statements as the Group incurred losses for the Period in Hong Kong.

The rate of corporate income tax of the People's Republic of China ("PRC") is calculated at a standard rate of 15% and 25% (30 June 2019: 15% and 25%) on the estimated assessable profits arising from its operation in the PRC.

The amount of income tax expenses includes in profit or loss represents:

Unaudited

Six months ended 30 June

2020

2019

HK$'000

HK$'000

Current tax for the Period - PRC

6,934

3,659

Deferred tax

-

-

6,934

3,659

  1. EARNINGS PER SHARE
    The calculation of basic earnings per share for the Period is based on the profit for the Period attributable to owners of the Company of HK$21,754,000 (30 June 2019: HK$28,987,000) and the weighted average number of approximately 5,472,000,000 (30 June 2019: 5,472,000,000) ordinary shares in issue during the Period.
    The diluted earnings per share for both the six months ended 30 June 2020 and 2019 are the same as the respective basic loss per share as the impact of potential ordinary shares have an anti-dilutive effect on the basic earnings per share for these periods.
  2. DIVIDEND
    The Directors do not recommend the payment of any interim dividend for the six months ended 30 June 2020 (30 June 2019: HK$Nil).

Interim Report 2020 17

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

  1. PROPERTY, PLANT AND EQUIPMENT
    During the Period, approximately HK$25,276,000 (30 June 2019: approximately HK$29,748,000) was spent on of plant and equipment which was mainly spent on the establishment of electric vehicles charging facilities. There was no disposal of property, plant and equipment during the Period (30 June 2019: no disposal).
  2. TRADE AND NOTES RECEIVABLES

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

HK$'000

HK$'000

Trade receivables

270,441

356,619

Note receivables

54,469

51,400

324,910

408,019

The Group's trading terms with its customers are mainly on credit, except for the new customers, where payment in advance is normally required. The credit period generally ranges from 0 to 360 days (2019: 0 to 360 days). Overdue balances are reviewed regularly by senior management. Trade receivables are non-interest-bearing.

An ageing analysis of the trade receivables (net of impairment loss) as of the end of reporting period, based on the invoice dates, is as follows:

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

HK$'000

HK$'000

Within 90 days

68,910

135,316

91 days to 180 days

2,902

20,057

181 days to 1 year

16,094

57,437

Over 1 year

182,535

143,809

270,441

356,619

18 Jiu Rong Holdings Limited

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

13. TRADE AND NOTES PAYABLES

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

HK$'000

HK$'000

Trade payables

185,865

350,951

Notes payables

517,708

507,999

703,573

858,950

An ageing analysis of the trade payables as at the end of reporting period, based on the invoice date, is as follows:

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

HK$'000

HK$'000

Outstanding balances with ages:

Within 180 days

72,961

187,949

181 days to 1 year

51,296

133,463

1 to 2 years

29,623

7,225

Over 2 years

31,985

22,314

185,865

350,951

Interim Report 2020 19

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

14. BANK AND OTHER LOANS

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

Notes

HK$'000

HK$'000

Bank loans

(i)

644,611

196,703

Other loans

(ii)

11,467

83,209

656,078

279,912

Notes:

  1. Bank loans bear interest at variable rates by reference to the People's Bank of China's lending rate, ranging from 4.35% to 6.00% per annum (31 December 2019: from 4.79% to 5.80% per annum).
  2. The other loans are unsecured.

15. SHARE CAPITAL

Unaudited

Audited

As at

As at

30 June

31 December

2020

2019

HK$'000

HK$'000

Authorised:

10,000,000,000 ordinary shares of HK$0.1 each

1,000,000

1,000,000

Issued and fully paid:

5,472,000,000 ordinary shares of HK$0.1 each

547,200

547,200

Share options

Details of the Company's share option schemes and the share options issued under the schemes are included in note 16 to the Interim Financial Statements.

20 Jiu Rong Holdings Limited

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

16. SHARE OPTION SCHEME

Pursuant to an ordinary resolution passed at an annual general meeting of the Company held on 29 May 2014, the Company approved and adopted a share option scheme (the "Scheme").

The purpose of the Scheme is to provide incentives and/or rewards to any director, consultant, advisor person including full-time or part-time employee of the Company and its subsidiaries, at the sole discretion of the board, for their contribution to, and their continuing efforts to promote the interests of the Company. The schemes became effective on 30 May 2014 and, unless otherwise cancelled or amended, will remain in force for 10 years from that date.

The Scheme

The maximum number of unexercised share options currently permitted to be granted under the Scheme is an amount equivalent, upon their exercise, to 10% of the shares of the Company in issue at any time. The maximum number of shares issuable under share options to each eligible participant in the Scheme within any 12-month period, is limited to 1% of the shares of the Company in issue at any time. Any further grant of share options in excess of this limit is subject to shareholders' approval in a general meeting.

Share options granted to a director, chief executive or substantial shareholder of the Company, are subject to approval in advance by the independent non-executive directors. In addition, any share options granted to a substantial shareholder or an independent non-executive director of the Company, in excess of 0.1% of the shares of the Company in issue at any time or with an aggregate value (based on the price of the Company's shares at the date of the grant) in excess of HK$5 million, within any 12-month period, are subject to shareholders' approval in a general meeting.

The offer of a grant of share options may be accepted within 21 days from the date of the offer. The exercise period of the share options granted is determinable by the directors, and commences after a certain vesting period and ends on a date which is not later than five years from the date of the offer of the share options or the expiry date of the Scheme, whichever is earlier.

The exercise price of the share options is determinable by the directors, but may not be less than the higher of (i) the Stock Exchange closing price of the Company's shares on the date of the offer of the share options; and (ii) the average Stock Exchange closing price of the Company's shares for the five trading days immediately preceding the date of the offer.

Share options do not confer rights on the holders to dividends or to vote at shareholders' meetings.

During the Period, at 30 June 2019 and up to the date of approval of these Interim Financial Statements, 547,200,000 share options have been granted under the Scheme on 25 July 2019.

Interim Report 2020 21

NOTESTOTHE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

  1. RESERVES
    The Group's contributed surplus represents the difference between the nominal value of the shares of the subsidiaries acquired pursuant to the group reorganisation, over the nominal value of the Company's shares issued in exchange therefore.
    In accordance with the relevant regulation in the PRC, the subsidiaries operating in the PRC are required to transfer 10% of their profits after tax, as determined under the accounting regulations in the PRC, to the statutory surplus reserve, until the balance of the fund reaches 50% of their respective registered capital. The statutory surplus reserve and the expansion reserve are non- distributable, and are subject to certain restrictions set out in the relevant regulations in PRC. These reserves can be used either to offset against accumulated losses or be capitalized as paid-up capital. However, such balance of the statutory surplus reserve must be maintained at a minimum of 25% of paid-up capital after the above mentioned usages.
  2. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
    The Group does not have any contingent liability or capital commitment in the Period under review (31 December 2019: HK$Nil).
  3. RELATED PARTY TRANSACTIONS
    Other than disclosed elsewhere in the Interim Financial Statements, the Group had the following material transactions with related parties during the six months ended 30 June 2020:
  1. During the Period, total compensation paid to the Directors of the Company was approximately HK$780,000 (30 June 2019: approximately HK$755,000).

The Group has not made any impairment in respect of related party receivable nor has any guarantee been given or received during the current or prior period regarding related party transactions.

20. APPROVAL OF INTERIM FINANCIAL STATEMENTS

This Interim Financial Statements were approved and authorised for issue by the Board of Directors on 28 August 2020.

22 Jiu Rong Holdings Limited

MANAGEMENT DISCUSSION AND ANALYSIS

FINANCIAL REVIEW

Overall Financial Results

For the six months ended 30 June 2020, the Group achieved approximately HK$226,246,000 in turnover, representing a decrease of approximately 7.82% from that of approximately HK$245,432,000 during the same period of last year. Gross profit was approximately HK$50,404,000 comparing to the gross profit of approximately HK$60,458,000 during the corresponding period of last year. The overall gross profit ratio decreased from approximately 24.63% to approximately 22.28%. Profit for the period attributable to owners of the Company was approximately HK$21,754,000 (for the corresponding period of last year: approximately HK$28,987,000), representing a decrease of approximately 24.95%. Basic profit per share was approximately HK0.40 cents (for the corresponding period of last year: approximately HK0.53 cents). As at 30 June 2020, the balance of cash and cash equivalents was approximately HK$419,779,000 (31 December 2019: approximately HK$109,248,000).

Turnover

For the Period under review, the Group recorded a turnover of approximately HK$226,246,000 which is contributed by the Digital Video Business, the New Energy Vehicles Business, the Cloud Ecological Big Data Business and Properties Investments.

During the Period, the Group's business has five segments (30 June 2019: five segments). Details of the segment information are set out in note 4 of the Interim Financial Statements.

Gross Profit Margin

During the Period under review, the gross margin decreased from approximately 24.63% to approximately 22.28%.

Financial Position and Liquidity

As at 30 June 2020, the gearing ratio was 1.7 (31 December 2019: 1.6), which was measured on the basis of the Group's net debt divided by the capital plus net debt. The Group had net current liabilities as at 30 June 2020 and 31 December 2019.

For the period under review, the Group used approximately HK$89,648,000 (31 December 2019: generated approximately HK$668,295,000) of cash from its operations. As at 30 June 2020, the Group had cash and cash equivalents of approximately HK$419,779,000 (31 December 2019: approximately HK$109,248,000).

Interim Report 2020 23

MANAGEMENT DISCUSSION AND ANALYSIS

Capital Structure and Foreign Exchange Risk

During the period under review, the Capital structure of the Group remained unchanged.

The Group's monetary assets, loans and transactions are principally denominated in Renminbi ("RMB") and HK$ (30 June 2019: RMB, HK$). The Group is exposed to foreign exchange risk arising from the exposure of US$ against RMB and HK$. Considering that the HK$ is pegged to the US$, the Group believes its exposure to exchange risk will be confined to RMB against US$. During the Period, the Group does not intend to hedge its exposure to foreign exchange fluctuations, but will constantly monitor the economic situation and its foreign exchange risk position, and will consider appropriate hedging measures in future as may be necessary and feasible.

Employees Benefit and Expenses

As at 30 June 2020, the total number of employees of the Group was 326 (31 December 2019: 311). The total amount of employee wages and salaries incurred during the Period was approximately HK$17,683,000 (30 June 2019: approximately HK$17,037,000). The Group determines employees' remuneration by the work responsibilities, job performance and professional experience. The Group also provides employees on-job training from time to time to upgrade the knowledge, skills and overall caliber of its employees.

INTERIM DIVIDENDS

The Directors do not recommend the payment of any interim dividend for the six months ended 30 June 2020 (30 June 2019: HK$Nil).

BUSINESS REVIEW AND OUTLOOK

The Group is principally engaged in (1) manufacturing and sales of digital television ("TV"), high definition liquid crystal display TV and set-top box as well as provision of application of solutions regarding integration of telecommunication, TV and internet in the digital video industry ("Digital Video Business"); (2) the construction, application and management of new energy vehicles and related products, charging facilities and intelligent management systems ("New Energy Vehicles Business");

  1. the application and management of cloud ecological big data industry ("Cloud Ecological Big Data Business"); (4) properties development of big data industrial park commercial and residential properties ("Properties Development"); and (5) properties investment for rental income from the big data industrial park ("Properties Investments").

24 Jiu Rong Holdings Limited

MANAGEMENT DISCUSSION AND ANALYSIS

Despite the unfavourable global economic conditions as a result of the COVID-19 in the first half of 2020, the Group has recorded turnover from: (1) the Digital Video Business of approximately HK$99,381,000 for the six months ended 30 June 2020 (six months ended 30 June 2019: HK$129,686,000), representing a decrease of approximately 23.37% as compared with last year's corresponding period; (2) the New Energy Vehicles Business of approximately HK$95,171,000 for the six months ended 30 June 2020 (six months ended 30 June 2019: HK$81,290,000), representing an increase of approximately 17.08% as compared with last year's corresponding period; (3) the Cloud Ecological Big Data Business of approximately HK$4,312,000 for the six months ended 30 June 2020 (six months ended 30 June 2019: HK$8,450,000), representing a decrease of 48.97% as compared with last year's corresponding period; and (4) the properties investments of approximately HK$27,382,000 for the six months ended 30 June 2020 (six months ended 30 June 2019: HK$26,006,000), representing an increase of approximately 5.29% as compared with last year's corresponding period.

As at 30 June 2020, the Group was operating: (1) 48 electric vehicles charging stations in Hangzhou with 3,604 alternating current chargers of 40KW/H and 1,424 direct current chargers of 60KW/H in operation; (2) 5 electric vehicles charging stations in Wuhan with 61 alternating current chargers of 7KW/H and 16 direct current chargers of 60KW/H in operation; and (3) 5 electric vehicles charging stations in Nanjing with 22 alternating current chargers of 40KW/H and 89 direct current chargers of 60KW/H in operation. The Board is of the view that the PRC Government has emphasized on the use of new energy vehicles to reduce carbon emissions and the increase in support to the establishment of the new energy vehicles charging piles and its related operations and hence the New Energy Vehicles Business is with substantial growth potential. The Group will continue to invest in the New Energy Vehicles Business and further establish electric vehicles charging stations in Hangzhou and other provinces in the PRC to capture the electric vehicles charging market shares with the aim to be one of the largest new energy vehicles charging facilities operators in the PRC.

The Directors will continue to (1) closely evaluate the performance of the above mentioned businesses;

  1. invest in the New Energy Vehicles Business, the Cloud Ecological Big Data Business and the properties development of big data industrial park; (3) actively explore new businesses or investments;
  1. consider fund raising opportunities which can strengthen the financial position; and (5) focus on product quality and cost control and strictly control capital expenditure in order to continuously maintain the Group's competitiveness of the Group in order to enhance the value of the Group which will be in the interests of the Company and shareholders as a whole.

Interim Report 2020 25

SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTERESTS IN SHARES AND UNDERLYING SHARES

As at 30 June 2020, so far as the Directors are aware, the following persons have interests or short positions in the shares and underlying shares of the Company which would fall to be disclosed to the Company under provisions of Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance (the "SFO"), or who is, directly or indirectly interested in 5% or more in the issued share capital of the Company, as recorded in the register required to be kept by the Company pursuant to Section 336 of the SFO:

Number

Percentage

Name of substantial shareholder

Type of interests

of Shares

of interests

Alpha Century Assets Limited (Note 1)

Beneficial owner

600,000,000(L)

10.96%

Ms. Wong Sin Fung (Note 1)

Interest of controlled

600,000,000(L)

10.96%

corporation

SOYEA Technology Co., Limited

Beneficial owner

493,206,000(L)

9.01%

Notes:

  1. The interest in 600,000,000 shares is deemed corporate interest through Alpha Century Assets Limited.
  2. The letter "L" denotes a long position and "S" denotes a short position.

Save as disclosed above, so far as the Directors are aware, no person was interested in or had a short position in the shares, underlying shares or debentures of the Company which would fall to be disclosed to the Company under Divisions 2 and 3 of Part XV of SFO as at 30 June 2020.

26 Jiu Rong Holdings Limited

DIRECTORS' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURE

As at 30 June 2020, none of the Directors and Chief Executive had registered an interest or short position in the shares, underlying shares or debentures of the Company or any of its associated corporations that was required to be recorded pursuant to Division 7 and 8 of Part XV of the SFO, as recorded in the register required to be kept by the Company pursuant to section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.

PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY

Neither the Company, nor any of its subsidiaries purchased, redeemed or sold any of the Company's listed securities during the six months ended 30 June 2020.

DIRECTORS' COMPLIANCE WITH MODEL CODE

The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") set out in Appendix 10 of the Listing Rules. All Directors have confirmed, following specific enquiry by the Company, that they have complied with the required standards of the Model Code throughout the six months ended 30 June 2020.

COMPLIANCE ON CORPORATE GOVERNANCE PRACTICES

For the Period, the Company complied with all the code provisions in the Corporate Governance Code. The Board will review the current structure from time to time. When at the appropriate time and if candidate with suitable leadership, knowledge, skills and experience can be identified within or outside the Group, the Company may make necessary arrangements.

AUDIT COMMITTEE

The Audit Committee has reviewed with the management of the Company the accounting principals and practices adopted by the Group and discussed internal controls and financial reporting matters including a review of the Interim Financial Statements for the six months ended 30 June 2020 with the Directors.

PUBLICATION OF INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT

The interim results announcement and interim report of the Group for the six months ended 30 June 2020 are available for viewing on the website of the Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkex.com.hk and on the website of the Company at www.irasia.com/listco/hk/2358.

BOARD OF DIRECTORS

As at the date of this report, the Executive Directors are Mr. Siu Chi Ming and Mr. Yin Jianwen, the Independent Non-executive Directors are Mr. Wang Ning, Mr. Chen Zheng and Mr. Yuan Qian Fei.

On Behalf of the Board

Jiu Rong Holdings Limited

Siu Chi Ming

Executive Director

Hong Kong, 28 August 2020

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Jiu Rong Holdings Ltd. published this content on 17 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2020 08:59:03 UTC


ę Publicnow 2020
All news about JIU RONG HOLDINGS LIMITED
08/31Jiu Rong Holdings Limited Reports Earnings Results for the Half Year Ended June 30, 202..
CI
08/31Jiu Rong Holdings Limited Announces Unaudited Consolidated Earnings Results for the Six..
CI
07/09JIU RONG : Takes Stake in Xiangcai for $15 Million
MT
04/06JIU RONG : ' 2020 Profit Drops, Revenue Climbs 19%
MT
03/31Jiu Rong Holdings Limited Announces Audited Consolidated Earnings Results for the Year ..
CI
02/28JIU RONG : Change of address of share registrar and transfer office in the cayman islands
PU
2020JIU RONG : Interim Report 2020
PU
2020JIU RONG : Change of name of share registrar and transfer office in the cayman islands
PU
2020Jiu Rong Holdings Limited Announces Unaudited Consolidated Earnings Results for the Six..
CI
2020JIU RONG : Further information to the audited annual results announcement
PU
More news
Financials
Sales 2020 722 M 92,9 M 92,9 M
Net income 2020 22,9 M 2,95 M 2,95 M
Net Debt 2020 291 M 37,5 M 37,5 M
P/E ratio 2020 27,0x
Yield 2020 -
Capitalization 509 M 65,4 M 65,4 M
EV / Sales 2019 1,43x
EV / Sales 2020 1,26x
Nbr of Employees 367
Free-Float 80,0%
Chart JIU RONG HOLDINGS LIMITED
Duration : Period :
Jiu Rong Holdings Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends JIU RONG HOLDINGS LIMITED
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Managers and Directors
Qian Fei Yuan Independent Non-Executive Director
Ning Wang Independent Non-Executive Director
Zheng Chen Independent Non-Executive Director
Chi Ming Siu Secretary & Executive Director
Jian Wen Yin Executive Director
Sector and Competitors
1st jan.Capi. (M$)
JIU RONG HOLDINGS LIMITED-17.70%69
SONY GROUP CORPORATION27.42%142 822
PANASONIC CORPORATION26.00%30 758
LG ELECTRONICS INC.-9.63%17 897
SHARP CORPORATION-12.66%7 331
DIXON TECHNOLOGIES (INDIA) LIMITED91.53%4 025