[Company Information and Structure](index=2&type=section&id=Company%20Information%20and%20Structure) [Company Basic Information](index=2&type=section&id=Company%20Information) This chapter provides core information about the company's basic registration details, board of directors and committee members, main office addresses, website, stock code, auditor, and principal bankers - Company Chairman and CEO is **Mr. Chen Xinguo**, Dr. Huan Guocang, an independent non-executive director, chairs the Audit Committee, and Dr. Jin Lizuo chairs the Remuneration Committee[2](index=2&type=chunk) - The company's auditor is Ernst & Young, and its principal bankers include Bank of China (Hong Kong) and several major banks in mainland China[2](index=2&type=chunk) [Company Structure and Key Projects](index=3&type=section&id=Company%20Structure) The report outlines the company's equity structure, showing Beijing Enterprises Holdings Limited as the major shareholder, and lists multiple solid waste treatment projects, primarily waste-to-energy plants, operated in mainland China with their respective shareholding percentages - Beijing Enterprises Holdings Limited holds **49.23%** of Beijing Enterprises Environment Group Limited, making it the major controlling shareholder[3](index=3&type=chunk) - The company operates multiple waste-to-energy projects across Beijing, Jiangsu, Shandong, Hunan, Heilongjiang, Hubei, and Hainan, with most shareholdings exceeding **80%**, and some being **100%** owned[4](index=4&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=5&type=section&id=Business%20Review) In the first half of 2024, the company's core business was solid waste treatment with a total capacity of **12,850 tons per day**, achieving a **9.7%** year-on-year increase in operating revenue by expanding sludge co-disposal and heating businesses, while divesting the ecological construction services segment to focus on core operations [Continuing Operations: Solid Waste Treatment](index=5&type=section&id=Continuing%20Operations%EF%BC%9ASolid%20Waste%20Treatment%20Segment) In the first half of 2024, the solid waste treatment segment, as the core continuing operation, saw significant growth in overall operating metrics, with waste intake, power generation, and grid-connected power all increasing year-on-year, while co-processing businesses like heating and sludge treatment surged over **70%**, driving a **9.7%** increase in operating revenue and **13.2%** in gross profit, though engineering construction revenue declined **51%** due to fewer large projects Major Operating Data for H1 2024 | Indicator | H1 2024 | Year-on-Year Growth | | :--- | :--- | :--- | | Household Waste Intake | 2.2018 million tons | +8.7% | | Power Generation | 861 million kWh | +9.8% | | Grid-Connected Power | 725 million kWh | +9.5% | | Heating and Steam Supply | 70.3 thousand tons | +107.8% | | Sludge Treatment | 307 thousand tons | +74.8% | Segment Revenue and Gross Profit | Business Segment | H1 2024 Revenue (RMB) | Year-on-Year Change | H1 2024 Gross Profit (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Production and Operation Business | 614 million yuan | +9.7% | 289 million yuan | +13.2% | | Engineering Construction Business | 189 million yuan | -51% | 25 million yuan | -64.5% | [Discontinued Operations: Ecological Construction Services](index=6&type=section&id=Discontinued%20Operations%EF%BC%9AEcological%20Construction%20Services%20Segment) To focus resources on core solid waste treatment, the Group completed the sale of Beijing BEHL Ecological Construction Group Co., Ltd. equity in June 2024, formally terminating the ecological construction services business, which recorded a loss of **RMB 7.78 million** during the period - The company completed the sale of BEHL Ecological equity in June 2024, terminating its ecological construction services business to focus resources on the solid waste treatment market[8](index=8&type=chunk) - The discontinued ecological construction services business recorded a loss of **RMB 7.78 million** during the reporting period[8](index=8&type=chunk) [Outlook](index=6&type=section&id=Outlook) Facing a challenging market, the Group plans to seize strategic opportunities in the solid waste market during the critical '14th Five-Year Plan' period, focusing on enhancing existing project capacity utilization, securing new projects, and actively expanding asset-light businesses like entrusted operations and equipment EPC to create a second growth curve and elevate business performance - Future strategic priorities include enhancing existing project capacity, securing new market projects, and expanding asset-light businesses such as entrusted operations and equipment EPC to create a second growth curve[9](index=9&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) In the first half of 2024, the Group's total revenue from continuing operations was **RMB 803 million**, a **15.0%** year-on-year decrease, primarily due to a **51.0%** drop in waste-to-energy plant construction revenue, yet core solid waste treatment and power/steam sales revenue grew **9.7%**, gross profit slightly decreased **3.5%** to **RMB 313 million**, but overall gross margin improved from **34.3%** to **39.0%**, and profit for the period increased **2.6%** to **RMB 142 million** [Revenue and Gross Profit](index=6&type=section&id=Revenue%20and%20Gross%20Profit) For the six months ended June 30, 2024, the Group's continuing operations revenue decreased **15.0%** year-on-year to **RMB 803 million**, mainly due to a **51.0%** reduction in waste-to-energy plant construction revenue, while core waste treatment, power, and steam sales revenue grew **9.7%** to **RMB 614 million**, and gross profit slightly declined **3.5%** to **RMB 313 million**, but overall gross margin improved from **34.3%** to **39.0%** due to a higher proportion of high-margin operating business Segment Revenue and Gross Profit (For the six months ended June 30) | Item (RMB million) | 2024 Revenue | 2023 Revenue | 2024 Gross Profit | 2023 Gross Profit | 2024 Gross Margin | 2023 Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Solid Waste Treatment and Power & Steam Sales | 614.33 | 559.92 | 288.74 | 255.10 | 47.0% | 45.6% | | Waste-to-Energy Plant Construction and Related Services | 188.90 | 385.55 | 24.66 | 69.50 | 13.1% | 18.0% | | **Total** | **803.23** | **945.47** | **313.40** | **324.60** | **39.0%** | **34.3%** | [Other Income, Expenses and Tax](index=7&type=section&id=Other%20Income%2C%20Expenses%20and%20Tax) During the period, net other income and gains were **RMB 33.75 million**, a year-on-year decrease mainly due to reduced VAT refunds, administrative expenses increased **21.2%** to **RMB 102 million** with R&D expenses surging **55.9%**, finance costs significantly decreased **31.0%** to **RMB 56.03 million**, and income tax expense increased **18.8%** to **RMB 33.59 million** - Administrative expenses increased by **21.2%** year-on-year, primarily due to a **55.9%** increase in research and development expenses from **RMB 13.37 million** to **RMB 20.84 million**[14](index=14&type=chunk) - Finance costs significantly decreased by **31.0%** year-on-year, from **RMB 81.22 million** to **RMB 56.03 million**[16](index=16&type=chunk) - Income tax expense increased by **18.8%** year-on-year, with the effective tax rate rising from **17.1%** to **18.2%**[17](index=17&type=chunk) [EBITDA and Profit for the Period](index=8&type=section&id=EBITDA%20and%20Profit%20for%20the%20Period) In the first half of 2024, the Group's total EBITDA was **RMB 328 million**, a **8.3%** year-on-year decrease, however, total profit for the period increased **2.6%** to **RMB 142 million**, with profit from continuing operations growing **10.0%** to **RMB 151 million**, indicating strengthened profitability in core businesses effectively offsetting losses from discontinued operations Profit and EBITDA Summary (For the six months ended June 30, RMB million) | Item | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Total** | | | | | EBITDA | 328.46 | 358.30 | -8.3% | | Profit for the period | 142.11 | 138.50 | +2.6% | | Profit attributable to equity holders of the Company | 133.45 | 131.60 | +1.4% | | **Continuing Operations** | | | | | EBITDA | 334.22 | 347.45 | -3.8% | | Profit for the period | 150.58 | 136.85 | +10.0% | | Profit attributable to equity holders of the Company | 141.23 | 130.51 | +8.2% | [Financial Position Analysis](index=9&type=section&id=Financial%20Position) As of June 30, 2024, the Group's total assets were **RMB 9.759 billion**, total liabilities were **RMB 6.030 billion**, and net assets were **RMB 3.729 billion**, with the company selling BEHL Ecological equity during the period and no other significant investments, while franchise rights increased due to the Shiyan project and contract assets significantly decreased due to the termination of ecological construction business, and total bank and other borrowings were **RMB 4.491 billion** with trade payables decreasing Balance Sheet Overview (RMB) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 9.759 billion yuan | 9.897 billion yuan | | Total Liabilities | 6.030 billion yuan | 6.241 billion yuan | | Net Assets | 3.729 billion yuan | 3.656 billion yuan | - The net book value of franchise rights increased by **RMB 69 million** to **RMB 2.789 billion**, primarily due to construction investment in the Shiyan project[26](index=26&type=chunk) - Contract assets significantly decreased by **RMB 290 million** to **RMB 82 million** due to the termination of ecological construction services[29](index=29&type=chunk) - Trade and bills receivables increased by **RMB 104 million** to **RMB 811 million**, mainly due to an increase in grid-connected electricity tariff receivables[31](index=31&type=chunk) [Liquidity and Financial Resources](index=11&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2024, the Group faced liquidity pressure with current liabilities (**RMB 3.773 billion**) exceeding current assets (**RMB 2.789 billion**), however, considering stable cash flows from solid waste treatment and the controlling company's commitment not to demand repayment of shareholder loans, the Board believes the Group has sufficient cash resources for continuous operation - As of the end of the reporting period, the Group's cash and cash equivalents were **RMB 1.173 billion**, and bank and other borrowings were **RMB 4.491 billion**[38](index=38&type=chunk) - The Group has a liquidity shortfall, with current liabilities exceeding current assets, but controlling companies Idata and Beijing Enterprises have pledged financial support and will not demand repayment of shareholder loans to ensure the company's liquidity[38](index=38&type=chunk) [Key Performance Indicators](index=12&type=section&id=Key%20Performance%20Indicators) During the reporting period, the company's profitability indicators for continuing operations improved, with gross margin, operating profit margin, and net profit margin all increasing year-on-year, while the asset-liability structure remained relatively stable, with the current ratio flat, debt-to-asset ratio slightly decreasing, and net debt-to-equity ratio slightly increasing Key Performance Indicators (KPIs) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Continuing Operations** | | | | Gross Margin | 39.0% | 34.3% | | Operating Profit Margin | 29.9% | 26.1% | | Net Profit Margin | 18.7% | 14.5% | | **Financial Ratios** | **June 30, 2024** | **December 31, 2023** | | Current Ratio (times) | 0.74 | 0.74 | | Debt-to-Asset Ratio (Total Liabilities / Total Assets) | 61.8% | 63.1% | | Net Debt-to-Equity Ratio (Net Debt / Total Equity) | 89.0% | 88.2% | [Other Financial Information](index=12&type=section&id=Other%20Financial%20Information) In the first half of 2024, the Group's total capital expenditure was **RMB 143 million**, primarily for the construction and renovation of waste-to-energy plants, with capital commitments for service concession arrangements totaling **RMB 261 million** at period-end, and limited foreign exchange exposure as most transactions are denominated in RMB, while contingent liabilities mainly comprise performance guarantees of **RMB 70 million**, and employee count decreased from **1,248** to **1,112** due to the sale of the ecological construction business - Total capital expenditure for the first half was **RMB 143 million**, mainly for the construction and renovation of waste-to-energy plants[40](index=40&type=chunk) - Most of the Group's transactions are denominated in RMB, and the presentation currency is also RMB, resulting in controllable foreign exchange risk[41](index=41&type=chunk) - As of June 30, 2024, the Group's employee count was **1,112**, a decrease from the beginning of the year, primarily due to the sale of the ecological construction services business[42](index=42&type=chunk) [Interim Condensed Consolidated Financial Information](index=14&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) [Interim Condensed Consolidated Statement of Profit or Loss](index=14&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the company's continuing operations generated **RMB 803 million** in revenue and **RMB 151 million** in profit, with total profit for the period reaching **RMB 142 million** after accounting for losses from discontinued operations, a **2.6%** year-on-year increase, and profit attributable to equity holders of the company was **RMB 133 million**, with basic earnings per share of **8.89 RMB cents** Consolidated Statement of Profit or Loss Summary (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited, Restated) | | :--- | :--- | :--- | | **Revenue from Continuing Operations** | **803,230** | **945,465** | | Profit for the period from continuing operations | 150,578 | 136,855 | | (Loss)/Profit for the period from discontinued operations | (8,465) | 1,647 | | **Profit for the period** | **142,113** | **138,502** | | Profit attributable to equity holders of the Company | 133,445 | 131,596 | | Basic earnings per share (RMB cents) | 8.89 | 8.77 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=15&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Building on a profit for the period of **RMB 142 million**, and considering exchange differences from translating overseas operations, total comprehensive income for the period was **RMB 116 million**, compared to **RMB 164 million** in the prior period, with **RMB 108 million** attributable to equity holders of the company Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited, Restated) | | :--- | :--- | :--- | | Profit for the period | 142,113 | 138,502 | | Other comprehensive (loss)/income for the period | (25,885) | 25,110 | | **Total comprehensive income for the period** | **116,228** | **163,612** | | Attributable to equity holders of the Company | 107,657 | 156,889 | [Interim Condensed Consolidated Statement of Financial Position](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were **RMB 9.759 billion**, total liabilities were **RMB 6.030 billion**, and total equity was **RMB 3.729 billion**, with non-current assets forming a significant portion, primarily including franchise rights, goodwill, and receivables under service concession arrangements, while liabilities were mainly composed of bank and other borrowings Statement of Financial Position Summary (RMB thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Assets** | **9,759,415** | **9,897,162** | | Total Non-Current Assets | 6,970,914 | 6,902,334 | | Total Current Assets | 2,788,501 | 2,994,828 | | **Total Liabilities** | **6,030,074** | **6,240,802** | | Total Non-Current Liabilities | 2,257,422 | 2,168,066 | | Total Current Liabilities | 3,772,652 | 4,072,736 | | **Total Equity** | **3,729,341** | **3,656,360** | [Interim Condensed Consolidated Statement of Changes in Equity](index=18&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, total equity increased from **RMB 3.656 billion** at the beginning of the year to **RMB 3.729 billion**, primarily driven by the **RMB 142 million** profit recorded during the period, partially offset by exchange differences losses - Total equity at the beginning of the period was **RMB 3.656 billion**, total comprehensive income for the period was **RMB 116 million**, and with other changes, total equity at period-end increased to **RMB 3.729 billion**[49](index=49&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=19&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2024, net cash generated from operating activities was **RMB 69.19 million**, net cash used in investing activities was **RMB 194 million**, primarily for additions to franchise rights, and net cash generated from financing activities was **RMB 83.50 million**, mainly from new bank loans, resulting in a net decrease in cash and cash equivalents of **RMB 41.46 million** to **RMB 1.173 billion** at period-end Consolidated Statement of Cash Flows Summary (For the six months ended June 30, RMB thousand) | Item | 2024 (Unaudited) | 2023 (Unaudited, Restated) | | :--- | :--- | :--- | | Net cash generated from operating activities | 69,188 | 37,460 | | Net cash used in investing activities | (194,142) | (188,085) | | Net cash generated from/(used in) financing activities | 83,498 | (512,222) | | Net decrease in cash and cash equivalents | (41,456) | (662,847) | | Cash and cash equivalents at beginning of period | 1,209,940 | 2,328,991 | | **Cash and cash equivalents at end of period** | **1,173,014** | **1,672,180** | [Notes to the Financial Statements](index=21&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) The notes to the financial statements detail the basis of preparation, accounting policies, segment information, and specific composition and changes of each account, highlighting that the financial statements are prepared on a going concern basis with liquidity support from the controlling company, solid waste treatment as the core operating segment, revenue primarily from waste treatment and power sales, and the ecological construction services business as a discontinued operation sold during the period - The financial statements are prepared on a going concern basis, and despite current liabilities exceeding current assets, the Board believes the controlling shareholder's financial support commitment ensures the company's continuous operation[53](index=53&type=chunk) - The Group's operating segments primarily include the solid waste treatment segment (continuing operations) and the ecological construction services segment (sold during the period and classified as discontinued operations)[56](index=56&type=chunk) - The company completed the sale of **51%** equity in Beijing BEHL Ecological Construction Group Co., Ltd. (BEHL Ecological) on June 19, 2024, for a cash consideration of **RMB 41.49 million**, with this business classified as a discontinued operation[18](index=18&type=chunk)[72](index=72&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[76](index=76&type=chunk) [Disclosable Information](index=42&type=section&id=Disclosable%20Information) [Directors' and Major Shareholders' Interests](index=42&type=section&id=Directors'%20and%20Shareholders'%20Interests) This section discloses the list of company directors and their changes during the reporting period, confirming no material interests in company contracts, and details the interests of directors and major shareholders in the company's shares, with controlling shareholder Beijing Enterprises Holdings Limited holding a total of **50.40%** of shares as of June 30, 2024 - Executive Director **Mr. Wu Guangfa** holds **10,392,755** shares of the company, representing **0.69%** of the total share capital[110](index=110&type=chunk) Major Shareholder Holdings (June 30, 2024) | Shareholder Name | Total Holdings | Percentage of Share Capital | | :--- | :--- | :--- | | Idata | 738,675,000 shares | 49.23% | | Beijing Enterprises | 756,120,000 shares | 50.40% | | Cosmos Friendship Limited | 347,000,000 shares | 23.13% | - The report confirms that as of the reporting date, not less than **25%** of the total issued shares of the company are held by the public, complying with listing rules requirements[116](index=116&type=chunk) [Corporate Governance](index=46&type=section&id=Corporate%20Governance) [Corporate Governance Practices and Compliance](index=46&type=section&id=Corporate%20Governance%20Practices) The company complied with most provisions of the Corporate Governance Code during the reporting period, but with certain deviations, such as the Chairman and CEO being the same person, which the Board believes benefits current business development, and the Audit Committee reviewed these interim results, while the Board assumes full responsibility for the Group's risk management and internal control systems and conducts regular reviews - The company deviated from the Corporate Governance Code in several aspects, including: the Chairman and CEO being the same person (**Mr. Chen Xinguo**); some independent non-executive directors not attending the annual general meeting; the Chairman not holding meetings with non-executive directors without executive directors present; and board meetings not being held at least quarterly[119](index=119&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed the Group's interim results, financial position, and risk management for the six months ended June 30, 2024[122](index=122&type=chunk) - The Board confirms full responsibility for the Group's risk management and internal control systems and conducts regular reviews[123](index=123&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the group's revenue from continuing operations was RMB 803.23 million, a decrease of approximately 15% compared to RMB 945.47 million in the same period last year[1]. - The group's EBITDA for the period was RMB 328.46 million, down about 8.3% from RMB 358.30 million in the previous year[1]. - The profit attributable to shareholders for the period was RMB 133.45 million, an increase of approximately 1.4% from RMB 131.60 million in the same period last year[3]. - Basic and diluted earnings per share for the period were RMB 0.089[1]. - The total comprehensive income for the period was RMB 116.23 million, compared to RMB 163.61 million in the previous year[4]. - The company reported a significant increase in profit attributable to shareholders, reaching RMB 141.22 million for the period[12]. - The company reported a net profit of RMB 184,089,000 for the six months ended June 30, 2024, compared to a net loss of RMB 47,234,000 for the same period in 2023[15]. - EBITDA decreased by 8.3% to RMB 328.46 million, while net profit increased by 2.6% to RMB 142.11 million[49]. Revenue Breakdown - For the six months ended June 30, 2024, the total revenue was RMB 906.42 million, with solid waste treatment contributing RMB 803.23 million and ecological construction services contributing RMB 103.19 million[12]. - The company reported a revenue of RMB 103,190,000 for the six months ended June 30, 2024, a decrease of 22.2% compared to RMB 132,631,000 for the same period in 2023[22]. - The company reported a significant increase in revenue from kitchen waste treatment services, which amounted to RMB 96,490,000, up from RMB 69,882,000 in the previous year[15]. - The solid waste treatment segment remains the primary revenue driver, reflecting the company's strategic focus on this area[10]. Assets and Liabilities - The total assets as of June 30, 2024, were RMB 9,759.42 million, a decrease from RMB 9,897.16 million as of December 31, 2023[6]. - The total liabilities decreased to RMB 6,030.07 million from RMB 6,240.80 million as of December 31, 2023[6]. - The total accounts receivable from service concession arrangements was RMB 2,348,194,000 as of June 30, 2024, down from RMB 2,395,699,000 as of December 31, 2023[25]. - The aging analysis of trade receivables showed a total of RMB 810,996,000 as of June 30, 2024, compared to RMB 707,260,000 as of December 31, 2023[26]. - The total accounts payable was RMB 600,883,000 as of June 30, 2024, down from RMB 860,375,000 as of December 31, 2023[28]. - As of June 30, 2024, the company's net current liabilities were RMB 984,151,000, down from RMB 1,077,908,000 as of December 31, 2023[33]. Operational Highlights - The company achieved a total waste processing volume of 2,201,800 tons in the first half of 2024, with an average daily processing of 12,098 tons, representing an 8.7% increase year-on-year[37]. - The company recorded a significant increase in heat and steam supply volume, which rose by 107.8% to 70,300 tons[37]. - The company has initiated 30 R&D projects and obtained 10 patents in the first half of 2024, indicating a focus on technological innovation[37]. - The company plans to enhance capacity utilization of existing projects and expand into light asset businesses such as entrusted operations and equipment general contracting[39]. Cost and Expenses - The financial costs incurred during the period were RMB 56.03 million, impacting overall profitability[12]. - The company’s financial costs for the six months ended June 30, 2024, were RMB 56,027,000, a decrease from RMB 81,219,000 in the same period of 2023[18]. - The income tax expense for continuing operations was RMB 33,593,000 for the six months ended June 30, 2024, compared to RMB 28,284,000 for the same period in 2023[19]. - Administrative expenses increased by 21.2% to RMB 101.94 million, with R&D expenses rising by 55.9% to RMB 20.84 million[44]. - Other operating expenses decreased by RMB 7.83 million to RMB 5.01 million, primarily due to a reduction in trade receivables impairment losses[45]. Corporate Governance - The company has complied with all applicable corporate governance code provisions as of June 30, 2024, except for certain independent non-executive directors who were unable to attend the annual general meeting due to other commitments[74]. - The chairman and CEO roles have been combined since February 1, 2024, which the board believes will benefit the company's current business development and management[74]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim performance, financial condition, risk management, and internal controls for the six months ending June 30, 2024[77]. - The company did not purchase, redeem, or sell any of its listed securities during the six months ending June 30, 2024[78]. - The company will publish its interim report containing all relevant financial information on the Hong Kong Stock Exchange and its website in a timely manner[79].

Corporate Governance - The board held two regular meetings during the year ending December 31, 2023, with attendance details showing all directors participated in at least one meeting[3]. - The audit committee conducted two meetings during the year, reviewing interim and annual performance, financial status, and risk management[6]. - The company has complied with the listing rules requiring at least three independent non-executive directors, with one possessing appropriate professional accounting qualifications[11]. - The remuneration committee includes three independent non-executive directors and the chairman, overseeing the compensation policies for directors and senior management[12]. - The board emphasizes a culture of integrity, requiring all directors and management to adhere to a code of conduct regarding ethics and conflicts of interest[10]. - The average age of executive directors is 56 years, while independent non-executive directors average 68 years[10]. - The company plans to appoint a new independent non-executive director at the upcoming annual general meeting due to the tenure of current independent directors exceeding nine years[11]. - The company provided training and resources to directors to ensure they remain updated on their responsibilities and the company's operations[2]. - The board's primary focus is on overall strategic development, while management is responsible for operational execution[10]. - The company has established sufficient measures to ensure effective communication among directors[14]. - The company maintained compliance with the corporate governance standards throughout the year, with no changes in board composition[175][176]. - The risk management and internal control systems were deemed sufficient and effective by the board, ensuring the management of significant risks[180]. Financial Performance - The company achieved a revenue of RMB 1.934 billion and a net profit of RMB 202 million in 2023[49]. - Revenue decreased by 12.3% to RMB 1.934 billion, with solid waste treatment and electricity sales increasing by 2.7% to RMB 1.135 billion, while construction and related services revenue fell by 47.5% to RMB 476 million[84]. - Gross profit decreased by 10.2% to RMB 607 million, with an overall gross margin increase from 30.7% to 31.4%[85]. - Net profit for the year was RMB 202 million, a decrease of 28.4% compared to RMB 282 million in the previous year[89]. - Total assets and liabilities as of December 31, 2023, were RMB 9.897 billion and RMB 6.241 billion, respectively, reflecting decreases of RMB 674 million and RMB 890 million year-on-year[92]. - The net carrying amount of the company's concession rights decreased by RMB 32 million to RMB 2.720 billion, with additions of RMB 148 million and amortization of RMB 165 million recognized[95]. - Other income increased by RMB 5 million to RMB 93 million, driven by VAT refunds and interest income[86]. - Administrative expenses increased by 27.4% to RMB 228 million, primarily due to higher costs in corporate management and ecological construction services[72]. - Financial costs rose by 17.7% to RMB 166 million, with bank loan interest contributing RMB 48 million and interest from Idata Finance Trading Limited at RMB 41 million[74]. - The gross profit margin for waste incineration and power generation was 45.2%, down from 47.4% in the previous year[71]. - The operating profit margin decreased to 21.8% in 2023 from 22.3% in 2022[134]. - The net profit margin for 2023 was 10.4%, down from 12.8% in the previous year[134]. - The average return on equity was 5.7% in 2023, compared to 8.6% in 2022[134]. - The current ratio dropped to 0.74 in 2023 from 2.58 in 2022[134]. - The debt ratio (total liabilities/total assets) improved to 63.1% in 2023 from 67.5% in 2022[134]. - The net debt to total equity ratio was 88.2% in 2023, down from 93.8% in 2022[134]. - The group’s total bank and other borrowings amounted to RMB 4.436 billion, with a weighted average interest rate decreasing from approximately 4.0% to 3.6%[100]. - Deferred income increased by RMB 1 million to RMB 154 million, mainly due to government subsidies for solid waste treatment operations[101]. - The group's trade payables increased by RMB 184 million to RMB 860 million, with RMB 263 million still unbilled[113]. - The group’s trade receivables increased by RMB 149 million to RMB 707 million, including RMB 395 million from grid-connected electricity receivables[110]. - Employee costs totaled RMB 298 million, an increase of 11.6% compared to RMB 267 million last year[118]. - As of December 31, 2023, the group's cash and cash equivalents amounted to RMB 1.21 billion, with approximately 87% denominated in RMB[133]. - The group's inventory, mainly consisting of coal and consumables for solid waste treatment plants, remained stable at RMB 43 million[97]. - The group's other intangible assets increased by RMB 13 million to RMB 51 million, primarily including operating rights/licenses valued at RMB 34 million and computer software at RMB 17 million[96]. Operational Highlights - A total of 4.2082 million tons of waste and 390,800 tons of sludge were processed during the year, with electricity generation reaching 1.349 billion kWh[49]. - In 2023, the company processed a total of 4.208 million tons of municipal waste, averaging 11,529 tons per day, representing a year-on-year increase of 9.7%[53]. - The total electricity generated was 1.604 billion kWh, reflecting a year-on-year growth of 14.3%, while the grid-connected electricity amounted to 1.349 billion kWh, up 16.1% year-on-year[53]. - The sludge treatment volume increased significantly by 83.2% year-on-year to 390,800 tons, while the hazardous and medical waste intake decreased by 37.9% to 5,788 tons[53]. - The company has expanded its waste incineration capacity to 12,475 tons per day following the completion of the Zhangjiagang project[66]. - In 2023, the ecological construction service segment secured 59 new contracts with a total value of approximately RMB 1.36 billion, achieving a revenue of RMB 323 million, a 67% increase year-on-year[55]. - The company completed the expansion of the Zhangjiagang project with a waste treatment capacity of 2,250 tons per day, and construction for the Shiyan project commenced, targeting operational status by the end of 2024[81]. - A joint venture was established in June 2023, holding 90% equity, for the investment, construction, and operation of the Shiyan project, with an estimated total investment of RMB 459 million planned to commence operations by the end of 2024[105]. - The company plans to continue enhancing operational management and expanding waste sources to improve business performance amid increasing competition in the solid waste market[48]. - The company is pursuing a light asset development strategy, emphasizing entrusted operations and urban services to enhance operational efficiency[69]. - The company aims to achieve its "14th Five-Year Plan" goals in 2024, amidst a challenging market environment, by enhancing project capacity utilization and promoting high-quality development[64]. Strategic Initiatives - The company plans to focus on solid waste market expansion and high-end waste treatment services, aiming to become a leading comprehensive environmental service provider in China[69]. - The company is focused on strategic development and market expansion initiatives[138]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[156]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[156]. - Research and development expenditures increased by 20%, totaling $150 million, to support innovation in environmental solutions[156]. - The company aims to reduce operational costs by 5% through improved supply chain management[156]. - A new partnership with a leading technology firm is expected to enhance product offerings and drive future growth[156]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on sustainable technologies[156]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[156]. - The board of directors remains committed to maintaining a stable dividend policy, with a proposed dividend of $0.50 per share[156].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,934,498 thousand, a decrease of 12.3% from RMB 2,205,356 thousand in 2022[2] - Gross profit for the same period was RMB 606,505 thousand, down from RMB 675,940 thousand, reflecting a decline in gross margin[2] - Operating profit decreased to RMB 422,175 thousand from RMB 491,242 thousand, representing a decline of 14.1%[2] - Profit before tax was RMB 255,977 thousand, down 26.8% from RMB 349,939 thousand in the previous year[2] - Net profit attributable to shareholders was RMB 190,954 thousand, a decrease of 37.1% compared to RMB 303,755 thousand in 2022[2] - Basic and diluted earnings per share decreased to RMB 12.73 from RMB 20.25, reflecting a significant drop in profitability[2] - EBITDA for the year was RMB 662 million, down 5% from RMB 698 million last year[66] - Profit attributable to shareholders for the year was RMB 191 million, a decrease of 37% from RMB 304 million last year[66] - Earnings per share for the year were RMB 0.127, compared to RMB 0.203 in 2022[66] - The net profit for the year was RMB 202,079,000, down from RMB 281,561,000 in the previous year, representing a decline of approximately 28%[83] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 9,897,162 thousand, down from RMB 10,571,045 thousand in 2022[9] - Non-current assets decreased to RMB 6,902,334 thousand from RMB 6,995,219 thousand, indicating a reduction in long-term investments[9] - Cash and cash equivalents significantly decreased to RMB 1,209,940 thousand from RMB 2,373,654 thousand, highlighting liquidity challenges[9] - The total liabilities of the group decreased to RMB 6.24 billion from RMB 7.13 billion, reflecting a reduction in non-current liabilities[69] - As of December 31, 2023, total assets were RMB 9.897 billion, and total liabilities were RMB 6.241 billion, a decrease of RMB 674 million and RMB 890 million respectively from the previous year[151] Revenue Segments - The solid waste treatment and electricity and steam sales generated revenue of RMB 1.135 billion, an increase of 2.7% from RMB 1.105 billion last year[39] - The revenue from waste incineration power plant construction, equipment sales, and related services decreased by 47.5% to RMB 476 million from RMB 907 million last year[39] - Revenue from solid waste treatment services increased to RMB 294,577,000 in 2023, up from RMB 277,853,000 in 2022, reflecting a growth of 6.2%[119] - Revenue from electricity sales was RMB 680,238,000, a slight decrease from RMB 695,547,000 in 2022[119] - The solid waste segment generated revenue of RMB 2,011,989,000, while the ecological construction segment contributed RMB 193,367,000[80] Operational Highlights - The company managed ten solid waste treatment projects in mainland China, with a daily waste processing capacity increased to 12,475 tons due to the completion of the Zhangjiagang project[110] - The total amount of waste processed reached 4.208 million tons, with a daily average of 11,529 tons, marking a 9.7% increase year-on-year[134] - The company achieved a power generation of 1.604 billion kWh, reflecting a year-on-year growth of 14.3%[134] - The sludge treatment volume increased by 83.2% year-on-year to 390,800 tons[134] - The company completed the expansion of a waste treatment project with a capacity of 2,250 tons per day, which commenced commercial operations in the first half of 2023[135] Governance and Compliance - The audit committee consists of three independent non-executive directors, including Dr. Cang Huan (chairman), Dr. Li Zuo Jin, and Dr. Jian Ping Wang, who reviewed the financial performance and approved the group's annual results for the year ending December 31, 2023[184] - The company's auditor agreed that the preliminary financial figures published for the year ending December 31, 2023, are consistent with the draft consolidated financial statements[184] - The board of directors comprises five executive directors and five independent non-executive directors, ensuring a balanced governance structure[187] - The company has complied with all applicable corporate governance code provisions as of December 31, 2023, except for those disclosed below[189] Future Plans - The company expects to transfer ownership of the existing plant in Zhangjiagang to government agencies by the end of 2024[30] - The company plans to continue expanding its solid waste treatment and ecological construction services in the upcoming year[86] - The company plans to focus on solid waste market expansion and high-end solid waste treatment services in 2024[136] - The company intends to divest its stake in the ecological construction segment to concentrate resources on solid waste market development[147] - The company plans to sell 51% of its subsidiary, Beijing Beikong Ecological Construction Group Co., Ltd., through a public listing on the Beijing Property Exchange, with a listing price of RMB 52,823,400[108]

19. 資本承擔 於報告期末，本集團負有資本承擔如下： | --- | --- | --- | |-----------------------------|-------------------------|---------------------------| | | | | | | 二零二三年 | 二零二二年 | | | 六月三十日 （未經審核） | 十二月三十一日 （經審核） | | | 千港元 | 千港元 | | 已訂約但未撥備： | | | | 按 BOO 基準之服務特許權安排 | – | 46,415 | | 按 BOT 基準之服務特許權安排 | 496,848 | 506,057 | | | 496,848 | 552,472 | 33 北京控股環境集團有限公司 中期簡明綜合財務資料附註（續） 截至二零二三年六月三十日止六個月 20. 關連人士披露 (a) 除本財務資料其他部分詳述之交易外，本集團於期內與關連人士訂立以下重大交易： | --- | --- | --- | --- | --- | |------------------|------------|-------|-------- ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於香港註冊成立的有限公司） 154 （股份代號： ） 截至二零二三年六月三十日止六個月 簡明中期業績公佈 摘要 • 12.25 截至二零二三年六月三十日止六個月，本集團之收入為 億港元，較去年 11.65 5% 同期之 億港元增加約 。 • 4.07 3.65 期內息稅折舊攤銷前溢利為 億港元，較去年同期之 億港元增加約 12% 。 • 1.50 1.39 8% 本公司股東應佔期內溢利為 億港元，較去年同期之 億港元增加約 。 • 10 每股基本盈利為 港仙。 ...

Financial Performance - In 2022, the company achieved a revenue of HKD 2.564 billion, a pre-tax profit of HKD 407 million, and a net profit of HKD 327 million, with total assets reaching HKD 12.167 billion[14]. - The company recorded a total revenue of HKD 2.564 billion, an increase of 6.0% from HKD 2.419 billion in the previous year[22]. - The gross profit for the year was HKD 786 million, representing a 31.2% increase from HKD 599 million last year, with a gross margin rising from 24.8% to 30.7%[24]. - The solid waste treatment and electricity and steam sales generated revenue of HKD 1.285 billion, up 12.7% from HKD 1.140 billion in the previous year[22]. - The company reported a profit for the year ending December 31, 2022, with financial details available on pages 41 to 135 of the financial statements[118]. - The net profit for the year was HKD 327,396,000, compared to HKD 245,617,000 in 2021, marking a 33.2% increase[186]. - Operating profit increased to HKD 571,212,000 in 2022, up 68.3% from HKD 339,089,000 in the previous year[186]. - Profit before tax rose to HKD 406,906,000, a 51.6% increase from HKD 268,576,000 in 2021[186]. - The company reported a significant increase in financial costs, which rose to HKD 164,306,000 in 2022 from HKD 70,513,000 in 2021, an increase of 132.00%[195]. Waste Processing and Environmental Impact - The total amount of municipal solid waste processed was 3.837 million tons, with an average daily intake of 10,513 tons, representing a year-on-year increase of 13.2%[16]. - The company generated 1.402 million megawatt-hours of electricity, marking a year-on-year growth of 2.6%, and sold 1.161 million megawatt-hours, which is a 3.4% increase from the previous year[16]. - The sludge disposal business achieved a total of 213,000 tons processed during the year[14]. - The company processed 93,160 tons of hazardous and medical waste during the year[16]. - The company processed solid waste with improved efficiency through ongoing technical upgrades and management improvements[144]. - The company is committed to sustainable development and actively invests in energy-saving and emission-reduction technologies[144]. Operational Capacity and Projects - The company expanded its operational capacity with the addition of two new waste-to-energy projects, increasing the daily waste processing capacity to 11,125 tons[16]. - The solid waste treatment segment recorded an operating income of HKD 1.285 billion, reflecting a 12.7% increase compared to the previous year, with a gross profit of HKD 608 million, up 38.5%[16]. - The company plans to continue exploring new business markets and improving profitability through project investment and operational management[14]. - The company has established good relationships with local government agencies and power authorities, which are key clients for its solid waste treatment business[146]. Assets and Liabilities - Total assets and liabilities as of December 31, 2022, were HKD 12.167 billion and HKD 8.057 billion, respectively, reflecting increases of HKD 1.247 billion and HKD 1.132 billion from the previous year[35]. - The company's total liabilities rose significantly to HKD 8,057,430,000 in 2022, up from HKD 6,925,255,000 in 2021, marking an increase of 16.35%[192]. - The group's cash and cash equivalents stood at HKD 2.697 billion, with total bank and other borrowings amounting to HKD 6.363 billion[52]. - The total non-current liabilities surged to HKD 6,528,958,000 in 2022 from HKD 1,857,332,000 in 2021, representing an increase of 251.00%[192]. Governance and Management - The board of directors consists of five executive directors, including one female director, and five independent non-executive directors[77]. - The company emphasizes a culture of integrity and requires all directors and management to adhere to a code of conduct related to integrity and ethical behavior[77]. - The company has established internal control and risk management systems to monitor the execution of business plans[77]. - The board is responsible for corporate governance functions, including the formulation and review of governance policies and compliance with legal regulations[97]. - The company has established an audit committee in compliance with Listing Rule 3.21, consisting of three independent non-executive directors[87]. Employee and Social Responsibility - The total employee cost for the year was HKD 310 million, an increase of 6.2% from HKD 292 million in the previous year, with 1,324 employees as of December 31, 2022, down from 1,399 employees in the previous year[60]. - As of December 31, 2022, approximately 21% of the group's employees were female, with ongoing efforts to enhance gender diversity in hiring[107]. - The company emphasizes employee welfare and regularly reviews policies related to training, occupational health, and safety[146]. Cash Flow and Financing - Operating cash flow for 2022 was HKD 759,180,000, a substantial increase from HKD 205,149,000 in 2021, reflecting a growth of 269.57%[195]. - The net cash flow from investing activities for the year 2022 was a negative HKD 539,111,000, an improvement from a negative HKD 729,768,000 in 2021[197]. - The company generated a net cash flow from financing activities of HKD 1,078,177,000 in 2022, compared to HKD 553,607,000 in 2021, indicating a significant increase in financing activities[197]. - The company made new bank loans totaling HKD 1,220,586,000 in 2022, which is a 77.2% increase from HKD 689,558,000 in 2021[197].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於香港註冊成立的有限公司） 154 （股份代號： ） 截至二零二二年十二月三十一日止年度 之年度業績公佈 摘要 • 25.6 24.2 6% 年內，本集團之收入為 億港元，較去年的 億港元增加 。 • 8.11 5.35 52% 年內，息稅折舊攤銷前溢利為 億港元，較去年的 億港元增加 。 • 3.53 2.64 34% 本公司股東應佔年內溢利為 億港元，較去年的 億港元增加 。 • 23.5 17.6 年內，每股基本盈利為 港仙（二零二一年： 港仙）。 • 2.5 於二零二二年十二月三十一日，本公司股東應佔每股淨資產為 港元（二零 2.39 ...

Financial Performance - The company recorded revenue of HKD 1,165.05 million for the six months ended June 30, 2022, representing a 21.9% increase from HKD 956.12 million in the same period last year [26]. - Gross profit for the same period was HKD 329.02 million, with a gross margin decrease from 30.4% to 28.2% [27]. - The solid waste treatment and electricity and steam sales generated revenue of HKD 597.45 million, up 3.4% from HKD 577.81 million year-on-year [26]. - Revenue from waste incineration plant construction and related services surged by 108.8% to HKD 444.01 million, compared to HKD 212.63 million in the previous year [26]. - The company reported a total comprehensive loss of HKD 33,138,000 attributable to shareholders for the period, compared to a comprehensive income of HKD 195,091,000 in the previous year [67]. - The net profit attributable to shareholders for the period was HKD 138,827,000, slightly up from HKD 138,555,000 in the previous year [65]. - The company reported a net profit of HKD 155,968,000 for the six months ended June 30, 2022, compared to HKD 190,162,000 in the previous year [109]. Capital Expenditures and Investments - Capital expenditures for solid waste incineration plant construction during the period amounted to approximately HKD 160 million [20]. - The company incurred capital expenditures of HKD 63,866,000 for property, plant, and equipment during the six months ended June 30, 2022, compared to HKD 34,294,000 in the same period of 2021, reflecting an increase of about 86% [78]. - The company acquired property, plant, and equipment totaling HKD 160,470,000 during the six months ended June 30, 2022, down from HKD 273,897,000 in the same period of 2021 [105]. Operational Highlights - In the first half of 2022, the group processed 1.89 million tons of municipal solid waste, with an average daily intake of 10,432 tons, representing a year-on-year increase of 15.7% [18]. - The group achieved a total electricity generation of 687,332 MWh, reflecting a year-on-year increase of 5.8% [18]. - The group operates ten solid waste treatment projects, including nine municipal solid waste incineration power projects with a daily processing capacity of 11,125 tons [16]. - The group is expanding its business into solid waste treatment, including organic waste, oil sludge, fly ash, and other materials, to create new profit growth points [21]. Financial Position - The company's net assets decreased by HKD 4.54 million to HKD 394.98 million as of June 30, 2022 [40]. - Total assets as of June 30, 2022, amounted to HKD 11,146,730,000, an increase from HKD 10,920,534,000 at the end of 2021 [70]. - The group's total liabilities to total assets ratio was 64.6%, slightly up from 63.4% at the end of the previous year [57]. - The company's total equity as of June 30, 2022, was HKD 3,949,843,000, compared to HKD 3,835,988,000 as of June 30, 2021, reflecting an increase of approximately 3% [75]. Cash Flow and Liquidity - Cash flow from operating activities for the six months ended June 30, 2022, was a net outflow of HKD 51,852,000, an improvement from a net outflow of HKD 139,305,000 in the same period of 2021 [78]. - The company's cash and cash equivalents amounted to HKD 1,678.97 million, with approximately 84% denominated in RMB [54]. - The company's cash flow from financing activities included new bank loans of HKD 279,341,000 for the six months ended June 30, 2022, compared to HKD 281,451,000 in the same period of 2021, showing a slight decrease of about 0.4% [78]. Debt and Liabilities - Financial costs rose significantly by 109.2% to HKD 79.19 million, driven by increased bank loan interest and other borrowings [34]. - Total bank and other borrowings rose to HKD 5,632,385,000 as of June 30, 2022, compared to HKD 1,672,864,000 as of December 31, 2021, indicating a substantial increase of approximately 236.5% [139]. - The company's lease liabilities rose significantly to HKD 47,564,000 from HKD 14,981,000, representing an increase of about 217.5% [149]. Shareholder Information - Major shareholders include Idata with 738,675,000 shares (49.23%) and Beijing Holdings with 756,120,000 shares (50.40%) as of June 30, 2022 [176]. - The company has maintained a public float of at least 25% of its total issued shares as of the report date [180]. Governance and Compliance - The board of directors has complied with all applicable code provisions of the corporate governance code during the six months ended June 30, 2022 [183]. - The audit committee consists of three independent non-executive directors, including Dr. Wan Guocang as the chairman [187]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the reporting period [185].

Financial Performance - Total assets reached HKD 10.92 billion, with operating revenue of HKD 2.42 billion and net profit of HKD 246 million, marking an increase compared to 2020[33] - The pre-tax profit for the year was HKD 269 million, demonstrating a solid financial performance amidst a complex economic environment[33] - The group achieved a total revenue of HKD 2.42 billion in 2021, a 35% increase from HKD 1.79 billion in 2020[42] - The overall gross profit for the group was HKD 599 million, a 13% increase from HKD 531 million in the previous year, although the gross margin decreased from 29.7% to 24.8%[44] - EBITDA for the year was HKD 535 million, an increase of 22% or HKD 97 million compared to HKD 438 million last year[50] - Net profit for the year was HKD 246 million, a 59% increase or HKD 91 million from HKD 155 million in the previous year[50] - The ecological construction segment's revenue fell by 53% to HKD 194 million, resulting in a loss of HKD 28 million for the year[40] - The group recorded other income and gains of HKD 75 million, a decrease from HKD 94 million in the previous year, primarily due to reduced VAT refunds[46] Waste Management Operations - The total waste processed was 3.77 million tons, with 3.20 million tons incinerated, resulting in electricity generation of 1.368 billion kWh, reflecting over 5% growth in all metrics compared to 2020[33] - The solid waste treatment segment processed a total of 3.39 million tons of municipal waste in 2021, averaging 9,283 tons per day, an increase of 2.7% year-on-year[37] - The group recorded operating revenue of HKD 1.14 billion from solid waste treatment, a growth of 9.2% compared to the previous year, with a gross profit of HKD 439 million, up 19%[42] - The waste-to-energy project remains a core focus, with plans for collaborative treatment of various solid wastes[34] - The group generated a total of 1,367,866 MWh of electricity, reflecting a 7.7% increase, with electricity sales reaching 1,123,193 MWh, up 8.2%[37] Strategic Initiatives - The company aims to enhance its service capabilities in the environmental market by focusing on innovative thinking and developing emerging business models[34] - Future strategies include expanding urban public services and improving technical capabilities through research and application of innovative technologies[34] - The company plans to establish a comprehensive risk prevention system to enhance internal control efficiency and drive sustainable growth[34] - The group plans to focus on expanding sludge disposal services and controlling raw material costs to enhance revenue streams and reduce operational risks in 2022[41] - The company is committed to becoming a reliable comprehensive environmental service provider, emphasizing accountability and trustworthiness[34] Governance and Compliance - The board confirmed compliance with corporate governance standards throughout the fiscal year[95] - The board consists of five executive directors and five independent non-executive directors, ensuring compliance with listing rules regarding board composition[98] - The company adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance governance and business objectives[101] - The company emphasizes a culture of integrity and compliance with ethical standards among all board members and management[101] - The company has established an internal audit department to regularly review its internal control systems[131] Shareholder and Financial Management - The company reported no dividend payment for the fiscal year ending December 31, 2021[143] - The company aims to provide stable and sustainable returns to shareholders through its dividend policy[136] - The company has no distributable reserves as of December 31, 2021[147] - The company has not purchased, redeemed, or sold any of its listed securities during the year[146] - Major shareholders holding 5% or more of the company's issued shares include Beijing Enterprises Group (BVI) with 49.23% and Khazanah Nasional Berhad with 23.13%[172] Employee and Operational Efficiency - Employee costs increased by 31% to HKD 292 million from HKD 223 million in the previous year, with the workforce growing to 1,399 employees[77] - Operational costs were reduced by 5% due to improved efficiency measures implemented during the year[89] - The company continues to improve employee welfare and training policies, emphasizing work-life balance and regular sports activities[179] Risk Management - The company has implemented a risk management and internal control system, focusing on significant risks such as safety production and financial security[131] - The management conducts annual impairment tests for goodwill and assesses other non-financial assets for impairment indicators, performing impairment evaluations if such indicators exist[199] - The impairment assessment of non-financial assets has been identified as a key audit matter due to significant balances and management's judgments and estimates involved[200]