2023-04-27-港交所-沈阳公用发展股份_2022年度报告_274页_4mb

SHENYANG PUBLIC UTILITY HOLDINGS COMPANY LIMITED 2022 ANNUAL REPORT SUMMARY

Core Content

Shenyang Public Utility Holdings Company Limited (stock code: 747) is a joint stock limited company incorporated in the People's Republic of China. The company's annual report for the year ended 31 December 2022 provides an overview of its financial performance, business operations, corporate governance, and future outlook.

Main Business and Operations

Infrastructure Construction Business

• The Group completed the acceptance and delivery of Xinxing Road and the transfer of remaining communication pipelines in the Zhongfang Chaozhou Jing Nan Industrial Park Project.
• Revenue from this business in 2022 was RMB27,959,000, a decrease of approximately 39% compared to RMB46,075,000 in 2021.
• The main project's settlement was delayed due to disagreements on labor and material pricing.
• The Group is working to resolve these disputes and aims to complete the settlement by the end of 2023.

Property Investment Business

• The Group continues to focus on the Shennongjia Hotel project, which has completed the main building and 4 courtyard houses, with the remaining 6 courtyard houses planned for completion in 2023.
• The Group also owns properties in Beijing, Guangzhou, and Sanhe, including 125 offices in the Fangshan Project, 11 shop units and 60 parking spaces in Sanhe, one shop unit in Guangzhou, and one commercial property in Shunyi, Beijing.
• Rental income increased from RMB947,000 in 2021 to RMB1,468,000 in 2022, a rise of approximately 55.02%.

Financial Overview

• Total revenue for 2022 was RMB29,427,000, a decrease of approximately 37.42% compared to RMB47,022,000 in 2021.
• Net loss before tax was RMB75,824,000, compared to RMB27,621,000 in 2021.
• Impairment losses under the expected credit loss model amounted to approximately RMB36,900,000, primarily due to the non-payment by the buyer of the Shenzhen Hongxun Investment Development Company Limited in the Disposal of SHHH Development.
• The Group recorded a reversal of impairment loss of approximately RMB1,725,000 from Guangzhou Leyou Internet Technology Co. Ltd.
• No income tax expenses were recognized in 2022, a decrease of 100% compared to RMB6,000 in 2021.
• Basic loss per share was approximately RMB5.00 cents, an increase of 212.50% compared to RMB1.60 cents in 2021.

Financial Position

• Total assets as of 31 December 2022 were RMB748,981,000, a decrease of 15.20% compared to RMB883,277,000 in 2021.
• Non-current assets were RMB395,292,000, and current assets were RMB353,689,000.
• Net current assets were approximately RMB178,344,000, down from RMB224,576,000 in 2021.
• Cash and cash equivalents were RMB6,557,000, compared to RMB7,083,000 in 2021.
• The Group had no bank borrowings but had other borrowings.
• The current ratio was 2.02 times, and the gearing ratio was 0.23 times, both showing a slight improvement compared to 2021.

Risk Management

• The Group engaged CT Consultants Limited to review internal procedures and assess the implementation of internal controls.
• The Group is taking steps to improve internal risk management based on the findings of the internal control review.
• The Group is enhancing the risk awareness of all employees and subsidiaries through the implementation of improved internal controls.

Corporate Governance

• The company has a structured board of directors, including executive, non-executive, and independent non-executive directors.
• The Audit Committee, Remuneration Committee, and Nomination Committee are in place, with members including Mr. Luo Zhuo Qiang, Mr. Guo Lu Jin, and Ms. Gao Hong Hong.
• The Supervisory Committee includes Mr. Wang Xing Ye as chairman and other members.

Future Prospects

• The Group expects economic recovery in 2023 following the easing of pandemic restrictions.
• The Group will continue to pursue steady development, focusing on existing infrastructure projects and exploring new opportunities in line with national policies.
• The Group aims to integrate resources to promote the construction and operation of various property projects for profitability.
• The Board is committed to exploring diversified investment opportunities and enhancing the Group's market competitiveness.
• The Group is closely monitoring the progress of the Beijing Property, which is expected to be completed by the end of 2023.

Key Committees and Representatives

• Audit Committee: Mr. Luo Zhuo Qiang (Chairman), Mr. Yin Zong Chen, Ms. Gao Hong Hong.
• Remuneration Committee: Mr. Guo Lu Jin (Chairman), Mr. Chau Ting Yan, Mr. Luo Zhuo Qiang.
• Nomination Committee: Mr. Zhang Jing Ming (Chairman), Mr. Guo Lu Jin, Ms. Gao Hong Hong.
• Joint Company Secretaries: Mr. Chung Man Wai, Stephen; Ms. Qian Fang Fang.
• Authorised Representatives: Mr. Zhang Jing Ming; Mr. Chung Man Wai, Stephen.
• Auditor: Asian Alliance (HK) CPA Limited, a registered public interest entity auditor.
• H Share Registrar and Transfer Office: Hong Kong Registrars Limited, located in Hopewell Centre, Hong Kong.

Summary of Key Financial Figures

Conclusion

The Group faces challenges in both infrastructure construction and property investment due to external factors such as the pandemic and geopolitical tensions. Despite these difficulties, the Group continues to focus on steady development, seeking to resolve outstanding issues and improve its financial and operational performance. The Board remains committed to enhancing the Group's market competitiveness and exploring diverse investment opportunities.