2025-04-30-港交所-中国疏浚环保_二零二四年年报_242页_3mb

2024 Annual Report Summary

Core Content

This document presents the 2024 Annual Report of China Dredging ENV (the Company), detailing its corporate structure, financial performance, and management discussions. It outlines the key financial metrics and highlights the challenges faced by the Group during the reporting period, along with its strategic direction and future plans.

Main Points

Corporate Structure

• Board of Directors:

  • Executive Directors: Ms. Zhou Shuhua (Chairlady), Mr. Wu Xuze (CEO), Mr. Zhang Chunxi (appointed from 1 April 2025), Mr. Wang Jianhua (appointed from 1 April 2025)
  • Independent Non-Executive Directors: Mr. Huan Xuedong, Mr. Chan Ming Sun Jonathan, Mr. Liang Zequan

• Committees:

  • Audit Committee: Mr. Chan Ming Sun Jonathan (Chairman), Mr. Huan Xuedong, Mr. Liang Zequan
  • Remuneration Committee: Mr. Liang Zequan (Chairman), Mr. Huan Xuedong, Mr. Chan Ming Sun Jonathan
  • Nomination Committee: Ms. Zhou Shuhua (Chairlady), Mr. Chan Ming Sun Jonathan, Mr. Liang Zequan

• Authorised Representatives: Ms. Zhou Shuhua (Chairlady), Mr. Leung Kim Hung

• Company Secretary: Mr. Leung Kim Hung

• Legal Advisors:

  • Hong Kong Law: Chiu & Partners
  • PRC Law: Finance & Commerce Law Firm of China

• Subsidiaries:

  • Jiangsu Xingyu Holdings Group Limited: A wholly-owned subsidiary, formerly known as Jiangsu Xingyu Port Construction Company Limited
  • Jiangsu Jiaolong Salvage Harbour Engineering Co. Ltd.: A non-wholly owned subsidiary
  • Jiangsu Xiangyu Environment Protection Equipment Company Limited: A wholly-owned subsidiary
  • Jiangsu Xiangyu Port Constructing Project Administration Co. Ltd.: A wholly-owned subsidiary
  • Xingyu International Houseware Plaza: Managed through a property management business

• Registered Address: Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands

• Headquarters and Principal Place of Business:

  • China: 19 Chuang Xin Road, Yandu District, Yancheng City, Jiangsu Province
  • Hong Kong: Unit 3410, 34/F, Cable TV Tower, 9 Hoi Shing Road, Tsuen Wan, Hong Kong

• Principal Share Registrar: Conyers Trust Company (Cayman) Limited

• Stock Code: 871

• Website: www.cdep.com.hk

Financial Highlights

Revenue

• Total Revenue (2024): RMB 325,234,000 (down 13.3% from 2023)
• CRD Business: RMB 14,900,000 (down 50.5% from 2023)
• EPD and Water Management Business: RMB 8,300,000 (down 7.8% from 2023)
• Other Marine Business: RMB 301,100,000 (down 10% from 2023)
• Property Management Business: RMB 900,000 (down 50% from 2023)

Net Profit/Loss

• Net Loss (2024): RMB 302,995,000 (up from RMB 211,893,000 in 2023)
• Net Loss Attributable to Owners: RMB 322,050,000
• Net Loss Attributable to Non-controlling Interests: RMB 19,055,000

Assets and Liabilities

• Total Assets (2024): RMB 306,988,000
• Total Liabilities (2024): RMB 995,700,000
• Net Assets (2024): RMB 306,988,000
• Current Ratio (2024): 0.44 (vs 0.45 in 2023)
• Gearing Ratio (2024): 108.4% (vs 59.6% in 2023)

Key Financial Drivers

• Operating Costs: Decreased to RMB 296,600,000 (down 10% from 2023)
• Gross Profit: RMB 28,600,000 (down from RMB 45,800,000 in 2023)
• Gross Profit Margin: 8.8% (vs 12.2% in 2023)
• Other Gains and Losses: Net loss of RMB 2,300,000 (vs net gain of RMB 2,500,000 in 2023)
• Income Tax Expenses: RMB 26,700,000 (up from RMB 18,100,000 in 2023)
• Exchange Losses: RMB 1,300,000 (vs exchange gains of RMB 300,000 in 2023)

Key Issues and Challenges

• Economic Conditions: Continued challenges in domestic and international markets led to project delays, increased work stoppages, and reduced productivity.
• Revenue Decline: Across all segments, revenue decreased due to fewer projects and reduced activity.
• Impairment Losses: Non-cash impairment losses on property, plant, and equipment amounted to RMB 135,300,000 (up from RMB 40,200,000 in 2023).
• Expected Credit Loss Allowance: Increased to RMB 7,100,000 (vs RMB 117,800,000 in 2023), due to deteriorating credit conditions.
• Fair Value Changes: Investment properties' fair value dropped significantly from RMB 205,300,000 to RMB 118,700,000.
• Liquidity: Current assets increased to RMB 363,266,000 (up from RMB 376,784,000 in 2023), but net current liabilities rose to RMB 459,400,000 (up from RMB 452,900,000 in 2023).

Strategic Direction

• The Group is committed to diversification and innovation, with plans to expand into environmental protection, new energy, and new energy digitalization.
• The Group is actively seeking high-growth opportunities to enhance its business portfolio and ensure sustainable long-term growth.
• Emphasis is placed on customer satisfaction and collaboration with stakeholders to navigate economic uncertainty.

Management Outlook

• The Group aims to emerge leaner, more strategic, and agile to face future challenges.
• The management team is focused on improving efficiency and enhancing shareholder returns.
• Continued attention is given to foreign exchange risks and interest rate exposure.

Summary of Financial Position

• Total Equity (2024): RMB 307,000,000 (down from RMB 617,900,000 in 2023)
• Cash and Bank Deposits (2024): RMB 48,900,000 (up 50.5% from 2023)
• Trade Receivables (2024): RMB 191,800,000 (down 15.2% from 2023)

Key Takeaways

• The Group faced significant revenue and profit declines in 2024 due to economic downturn, project delays, and increased operational costs.
• Strategic diversification and innovation are central to the Group's future growth plans.
• Corporate governance and risk management remain priorities, with a focus on financial prudence and stakeholder collaboration.
• The Group is working to improve liquidity and enhance financial stability.