Business Overview - Shenzhen International Holdings Limited is primarily engaged in logistics and toll road businesses, with approximately 43.39% equity held indirectly by the Shenzhen Municipal Government[3]. - The company focuses on strategic regions including the Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, and Bohai Rim, aiming to invest in urban integrated logistics ports and toll roads[3]. - The company holds a 51.56% stake in Shenzhen Expressway Company Limited, which is involved in toll road operations[4]. - Shenzhen International has expanded its logistics services to include logistics financial services and logistics information system services, with significant ownership stakes in related companies[4]. - The company is actively pursuing mergers and acquisitions to enhance its logistics infrastructure and service offerings[3]. - Shenzhen International is also involved in environmental industry investments and operations, diversifying its business portfolio[3]. Financial Performance - Revenue for the first half of 2020 was HKD 4,402 million, a decrease of 23% compared to HKD 5,712 million in 2019[7]. - Operating profit increased by 116% to HKD 4,186 million from HKD 1,934 million in the previous year[8]. - Profit before tax rose by 24% to HKD 2,760 million, up from HKD 2,225 million in 2019[8]. - Shareholders' profit attributable increased by 38% to HKD 1,713 million compared to HKD 1,239 million in 2019[8]. - Basic earnings per share increased by 36% to HKD 0.79 from HKD 0.58 in the previous year[8]. - The total assets as of June 30, 2020, were HKD 97,530 million, with total equity of HKD 45,589 million, reflecting a debt-to-asset ratio of 53%[8]. Impact of COVID-19 - The company waived two months of rent for approximately 600 tenants in logistics parks, impacting revenue but enhancing company image[9]. - The company actively engaged in market expansion and cost control measures to mitigate the impact of the COVID-19 pandemic[9]. - The toll-free policy during the pandemic significantly impacted revenue, with the tolls being waived from February 17, 2020, to May 6, 2020[38]. - The company experienced a 23% decline in revenue for the first half of 2020 compared to the same period last year, primarily due to the impact of the COVID-19 pandemic[152]. Logistics and Infrastructure Development - The company has established 28 logistics nodes across the country, with a total operational area of 2.14 million square meters and an occupancy rate of approximately 85%[11]. - The company is actively expanding its logistics projects, focusing on key economic regions such as the Greater Bay Area and Yangtze River Delta[12]. - The second phase of the Huannan Logistics Park project is under construction, covering an area of 77,000 square meters, with plans to create a modern logistics and supply chain service hub[14]. - A cooperation agreement was signed with China Railway Guangzhou Group to invest in a joint venture to upgrade the Ping Hunan railway freight yard into a comprehensive logistics hub, enhancing the company's logistics operations and network coverage[15]. - The company aims to enhance its competitiveness in the logistics industry by developing a logistics ecosystem and increasing investment in light asset projects[17]. Toll Road Operations - The company operates a total of 17 toll road projects across Shenzhen, Guangdong, and other provinces, with a total toll mileage of approximately 629 kilometers[34]. - The overall revenue from the toll road business for the period was HKD 1.905 billion, a decrease of 41% compared to HKD 3.229 billion in the same period last year[38]. - The toll revenue from Shenzhen Expressway decreased by 55% to HKD 1.15 billion, compared to HKD 2.555 billion in the previous year[40]. Investments and Acquisitions - The company completed the acquisition of 66.46% of Land Environmental for a total consideration of RMB 790,095,000 (approximately HKD 893,874,000)[148]. - The group has uncontracted capital commitments of HKD 2.082 billion and contracted but not provided for commitments of HKD 5.521 billion as of June 30, 2020[147]. - The company is actively seeking mergers and acquisitions to strengthen its toll road business and improve operational performance[66]. Corporate Governance - The company has adhered to the corporate governance code and maintained high standards of corporate governance throughout the reporting period[164]. - The board of directors consists of eight members, including four executive directors and three independent non-executive directors[165]. - The audit committee reviewed the financial reports for the year 2019 and confirmed their completeness and accuracy[167]. Employee and Shareholder Information - The total number of employees increased to 7,532, with employee benefits expenses around HKD 490 million, reflecting a focus on talent management and performance-based compensation[46][47]. - Shenzhen Investment Holdings holds 43.39% of the company's issued shares, totaling 952,010,090 shares[161]. - The company did not declare an interim dividend for the current period, consistent with the previous year[144].
深圳国际(00152) - 2020 - 中期财报