2022-05-15-港交所-中国疏浚环保_二零二一年年报_238页_4mb

2021 Annual Report Summary

Core Content

This summary outlines the key information and financial performance of the Group for the year ended 31 December 2021. The report covers corporate structure, financial highlights, and strategic directions.

Main Points

Corporate Structure

• Board of Directors:

  • Executive Directors: Mr. Liu Kaijin (Chairman), Mr. Wu Xuze (CEO), Ms. Zhou Shuhua
  • 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: Mr. Liu Kaijin (Chairman), Mr. Chan Ming Sun Jonathan, Mr. Liang Zequan

• Authorized Representatives:

  • Mr. Liu Kaijin
  • Ms. Wong Kwan Lai (resigned on 10 September 2021)
  • Mr. Leung Yiu Cho (appointed on 29 December 2021)

• Company Secretary:

  • Ms. Wong Kwan Lai (resigned on 10 September 2021)
  • Mr. Leung Yiu Cho (appointed on 29 December 2021)

• Legal Advisors:

  • Chungs Lawyers (Hong Kong Law)
  • Finance & Commerce Law Firm of China (PRC Law)

• Auditor:

  • Yongfuo Fusion CPA Limited

• Principal Bankers:

  • Bank of Jiangsu Co. Ltd, Yancheng Branch
  • Agricultural Bank of China Limited, Yancheng Branch
  • China Construction Bank (Asia) Corporation Limited

• Registered Address:

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

• Headquarters and Principal Place of Business:

  • In the PRC: 7/F, Shengzhou Tower, 39 Xindu West Road, Yandu District, Yancheng City, Jiangsu Province
  • In Hong Kong: Rooms 1501-2, 15/F, Siu On Plaza, 482 Jaffe Road, Causeway Bay, Hong Kong

• Principal Share Registrar:

  • Conyers Trust Company (Cayman) Limited

• Branch Share Registrar:

  • Tricor Investor Services Limited

• Stock Code:

  • 871

• Website:

  • www.cdep.com.hk

Financial Highlights

• Revenue:

  • Increased by 35.3% from RMB286.3 million in 2020 to RMB387.4 million in 2021
  • CRD Business: RMB80.1 million (up 12.2%)
  • EPD and Water Management Business: RMB52.8 million (up 7.5%)
  • Other Marine Business: RMB251.2 million (up 58.0%)
  • Property Management Business: RMB3.3 million (down 52.4%)

• Profit/Loss:

  • Net profit of RMB41.3 million in 2021
  • Net loss of RMB537.4 million in 2020
  • Profit before tax: RMB40.6 million (2020: RMB-525.3 million)
  • Income tax credit: RMB6.1 million (2020: RMB-12.0 million)

• Assets and Liabilities:

  • Total Equity: RMB1,160.7 million (up from RMB1,037.9 million in 2020)
  • Net Assets: RMB1,160.7 million (2020: RMB1,037.9 million)
  • Current Liabilities: RMB-822.0 million (2020: RMB-1,169.5 million)
  • Non-current Liabilities: RMB-286.9 million (2020: RMB-201.0 million)
  • Current Assets: RMB627.7 million (2020: RMB612.0 million)
  • Non-current Assets: RMB1,641.9 million (2020: RMB1,796.3 million)

• Key Financial Events:

  • Bonds Payable: Fully settled during the year, resulting in a gain of RMB208.0 million
  • Impairment Loss: Non-cash impairment loss of RMB50.8 million (down from RMB254.0 million in 2020)
  • Fair Value of Investment Properties: Decreased by RMB103.5 million (up from RMB19.4 million in 2020)
  • Marketing and Promotion Expenses: Reduced by 91.3% to RMB0.5 million
  • Administrative Expenses: Reduced by 42.7% to RMB43.3 million
  • Finance Costs: Reduced by 23.8% to RMB33.1 million
  • Current Ratio: 0.76 (up from 0.52 in 2020)

Key Information

Business Segments

• Capital and Reclamation Dredging Business (CRD Business):

  • Focuses on infrastructure and land reclamation projects
  • Revenue increased by 12.2% due to improved pandemic control and project progress

• Environmental Protection Dredging and Water Management Business (EPD and Water Management Business):

  • Engaged in environmental dredging and water management services
  • Revenue increased slightly by 7.5% due to better project progress in mainland China

• Other Marine Business:

  • Includes lifting wind power equipment, installing docks and bridges, and underwater pipeline laying
  • Revenue increased by 58.0% due to the delivery of a self-propelled fixed-crane vessel

• Property Management Business:

  • Manages Xingyu International Houseware Plaza
  • Revenue decreased by 52.4% due to lower occupancy rates

Corporate Governance

• The Group follows the Corporate Governance Code as outlined in the Listing Rules
• The Board of Directors is composed of both executive and independent non-executive directors
• The Group has Audit, Remuneration, and Nomination Committees to ensure good governance
• The Group has a share capital of RMB255.2 million and a deficit of RMB-16.5 million as of 31 December 2021

Shareholder and Management

• Mr. Liu Kaijin and Ms. Zhou Shuhua are spouses and both are directors
• The Group has a 2011 Share Option Scheme and a 2021 Share Option Scheme approved by shareholders
• The Group has implemented measures to ensure stability of projects, teams, and management systems

Strategic Outlook

• The Group aims to stabilize operations and expand existing businesses
• It seeks to participate in more wind power construction projects to support future growth
• The Group remains committed to its two main businesses: dredging and marine services
• It continues to maintain a prudent financial approach and monitor market risks including currency and interest rate risks

Summary of Key Financial Figures