Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 37,321,229,000, a decrease of 25% compared to HKD 49,895,384,000 in 2021[2] - EBITDA for the year was HKD 12,841,787,000, down 15% from HKD 15,027,003,000 in the previous year[2] - Profit attributable to equity holders was HKD 4,601,939,000, representing a 32% decline from HKD 6,804,099,000 in 2021[2] - Gross profit for the year was HKD 14,364,599,000, down from HKD 16,463,382,000 in 2021[3] - Operating profit for the year was HKD 10,599,939,000, a decrease from HKD 13,226,825,000 in the previous year[3] - Total comprehensive income for the year was HKD (3,061,903,000), compared to HKD 10,606,183,000 in 2021[5] - The adjusted EBITDA for the reporting segments was HKD 9,056,301 thousand in 2022, compared to HKD 10,225,664 thousand in 2021, reflecting a decrease of about 11.4%[20] - The company reported a net loss of HKD 1,626,964 thousand in the current year, compared to a loss of HKD 1,353,568 thousand in the previous year, indicating a worsening of approximately 20.2%[22] - The company’s financial expenses increased to HKD 3,488,268 thousand in 2022 from HKD 3,079,448 thousand in 2021, representing an increase of approximately 13.3%[22] - The company achieved a net profit attributable to shareholders of HKD 5,065,735,000, a decrease of 15% from 2021, primarily due to reduced construction project numbers and a one-time goodwill impairment[77] Dividends - The final dividend per share was 9.0 HKD cents, down from 15.0 HKD cents in the previous year, with total annual dividends per share at 24.0 HKD cents compared to 34.0 HKD cents in 2021[2] - The company declared an interim dividend of HKD 0.15 per share for 2022, down from HKD 0.19 in 2021, totaling HKD 921,446,000 compared to HKD 1,167,165,000 in the previous year[39] - The proposed final dividend for 2022 is HKD 0.09 per share, a decrease from HKD 0.15 in 2021, amounting to HKD 552,868,000 compared to HKD 921,446,000 in the prior year[39] - The board proposed a final dividend of HKD 0.09 per share for the year, down from HKD 0.15 per share in 2021, resulting in a total annual dividend of HKD 0.24 per share[58] Assets and Liabilities - Total assets as of December 31, 2022, were HKD 62,598,893,000, down from HKD 64,342,222,000 in 2021[7] - Current liabilities totaled HKD 42,813,049,000, an increase from HKD 39,768,402,000 in the previous year[7] - Net cash and cash equivalents decreased to HKD 10,591,242,000 from HKD 15,046,943,000 in 2021[6] - Total assets as of December 31, 2022, amounted to HKD 190,597,798 thousand, down from HKD 200,235,628 thousand in 2021, indicating a reduction of approximately 4.3%[27] - The total liabilities for the company were HKD 127,998,905 thousand in 2022, compared to HKD 135,893,406 thousand in 2021, showing a decrease of around 5.5%[27] - The total contract assets as of December 31, 2022, were HKD 109,430,350,000, a decrease from HKD 113,878,855,000 in 2021[41] - The total amount of accounts receivable, other receivables, deposits, and prepayments was HKD 23,582,144,000 in 2022, compared to HKD 24,215,103,000 in 2021[44] - The overdue amount of accounts receivable increased to HKD 10,433,438,000 in 2022 from HKD 7,286,684,000 in 2021[48] - The total amount of accounts payable related to construction projects under BOT, BOO, and TOT arrangements was HKD 11,096,878,000 in 2022, down from HKD 14,354,194,000 in 2021, a decrease of about 23%[52] Business Segments and Operations - The group has redefined its business segments to better manage strategic direction, with some financial data previously classified under "Other" now categorized under "Environmental Energy Projects Construction and Operation"[13] - The group reported multiple operating segments, including Environmental Energy Projects, Environmental Water Projects, and Green Environmental Projects, generating revenue from construction and operational services[11][12] - The group is engaged in various environmental projects, including waste-to-energy plants and water treatment facilities, contributing to its revenue streams[11][12] - Revenue from environmental energy project construction and operation services amounted to HKD 9,193,065,000 and HKD 8,898,332,000 respectively, showing a decline from HKD 21,932,588,000 and HKD 7,827,908,000 in the previous year[31] - Total revenue from environmental projects (energy, water, and green) was HKD 32,672,072,000, down 28.7% from HKD 45,853,797,000 in 2021[31] Environmental Impact and Initiatives - The group processed 48,968,000 tons of municipal solid waste, generating 24,762,121,000 kWh of green electricity, sufficient to power 20,635,000 households[63] - The group treated 1,770,260,000 cubic meters of wastewater, significantly reducing chemical oxygen demand (COD) emissions[63] - The group has made significant progress in environmental contributions, including a reduction of 20,463,000 tons of carbon dioxide emissions through waste treatment and recycling efforts[63] - Cumulative waste treatment volume reached 217,925,000 tons, providing green electricity equivalent to 105,486,150,000 kWh, enough to supply 87,905,000 households for a year, saving 42,195,000 tons of standard coal and reducing CO2 emissions by 99,067,000 tons[64] - The company processed 1,771,000 tons of hazardous waste and 34,789,000 tons of agricultural waste, along with 14,732,562,000 cubic meters of wastewater, reducing COD emissions by 5,776,000 tons[64] Corporate Governance and Compliance - The board of directors has adopted the Corporate Governance Code as its standard for corporate governance practices[113] - The company emphasizes high-level corporate governance as essential for sustainable development and stakeholder interests[113] - The company continuously reviews and enhances its corporate governance practices to align with business operations and growth[113] - The company actively discloses project emission data and environmental management information on its website, connecting to the national ecological environment department's monitoring platform[111] Future Outlook and Strategy - The company continues to explore opportunities for market expansion and new project developments in environmental services[31] - The group plans to strengthen market expansion and enhance development efficiency while focusing on high-quality development in 2023[98] - The group aims to transition from high-speed growth to high-quality development, emphasizing operational revenue over construction service revenue[98]

Financial Performance - Revenue for the first half of 2022 decreased by 19% to HK$21,448,683, compared to HK$26,495,324 in the same period of 2021[9] - EBITDA for the first half of 2022 was HK$7,047,794, down 14% from HK$8,197,532 in the previous year[9] - Profit attributable to equity holders decreased by 28% to HK$2,811,148, compared to HK$3,887,378 in the first half of 2021[9] - Return on shareholders' equity for the first half of 2022 was 5.51%, a decrease of 3 percentage points from 8.22% in the same period of 2021[9] - Basic earnings per share fell by 28% to 45.76 HK cents, down from 63.28 HK cents in the first half of 2021[9] - The Group's profit attributable to equity holders decreased by 14% to HK$7,047,794,000, with basic earnings per share dropping by 28% to 45.76 HK cents[17] - The waste-to-energy projects contributed an EBITDA of HK$ 4,906,602,000, a decline of 11% compared to the first half of 2021, and a net profit attributable to the Group of HK$ 2,743,173,000, down 17% year-on-year[66] - The greentech sector contributed an EBITDA of HK$1,334,647,000, a decrease of 18% compared to the first half of 2021, and a net profit of HK$296,369,000, down 41% year-on-year[78] Assets and Liabilities - Total assets as of June 30, 2022, were HK$200,011,797, a slight decrease of 0.11% from HK$200,235,628 at the end of 2021[9] - Total liabilities amounted to HK$133,938,191, with equity attributable to equity holders of the Company at HK$50,347,080[9] - The gearing ratio was 67%, a decrease of 1 percentage point from 68% at the end of 2021[9] - Cash and bank balances were HK$14.7 billion, a decrease of 6% from HK$15.6 billion at the end of 2021[122] - Outstanding interest-bearing borrowings were approximately HK$99.5 billion, similar to HK$99.1 billion at the end of 2021, with 65% denominated in Renminbi[122] - The Group had banking facilities of HK$120.5 billion, of which HK$34.6 billion remained unutilized as of June 30, 2022[122] - The aggregate net book value of pledged assets and equity interests in subsidiaries was approximately HK$103.9 billion[124] Market and Economic Conditions - The company faced challenges due to the COVID-19 pandemic, geopolitical conflicts, and inflation, but showed resilience in the Chinese economy[10] - The domestic economy is gradually stabilizing, aligning with the national "14th Five-Year Plan" for continued development[10] - In the second half of 2022, the global economy is expected to face challenges such as stagflation and trade protectionism, impacting recovery efforts[119] - The environmental protection industry is facing challenges such as market saturation and increasing competition, but also presents opportunities for green transformation[119] Strategic Focus and Development - The Group focused on four major areas: environment, resources, energy, and climate, emphasizing pollution reduction and carbon emission control[13] - The Group's strategic transformation and high-quality development efforts were highlighted, despite facing severe external challenges[15] - The Group aims to achieve sustainable development while balancing economic growth and ecological protection[12] - The Group's ongoing focus on "Cost Reduction and Efficiency Enhancement" led to improved operational efficiency and revenue from operation services[29] - The Group is actively entering new business areas such as integrated environmental sanitation and comprehensive resource utilization to enhance its competitive edge amid increasing market competition[135] Environmental Contributions and Projects - The Group processed 23,892,000 tonnes of household waste, generating 12,266,122,000 kWh of green electricity, which could support the annual electricity consumption needs of 10,222,000 households[35] - The Group achieved a reduction of 13,787,000 tonnes of CO2 emissions through its waste processing activities[35] - The environmental water sector treated 840,525,000 m³ of wastewater, reducing Chemical Oxygen Demand (COD) discharge by 405,000 tonnes[35] - As of June 30, 2022, the Group had secured 540 environmental protection projects with a total investment of approximately RMB 154.077 billion[24] - In the first half of 2022, the Group signed 14 new projects with a total investment of approximately RMB 1.757 billion[25] - The Group operates a total of 178 waste-to-energy projects, with a designed daily processing capacity of 151,200 tonnes of municipal waste[24] Corporate Governance and Management - The Company complied with all Code Provisions as set out in the Corporate Governance Code throughout the six months ended June 30, 2022[179][181] - The Board comprises 5 Executive Directors and 4 Independent Non-executive Directors, with INEDs representing not less than one-third of the Board as required under the Listing Rules[180] - The Audit Committee currently comprises 3 INEDs, including Ms. Li Shuk Yin, Edwina (chairman), Mr. Fan Yan Hok, Philip, and Mr. Zhai Haitao, overseeing financial reporting, risk management, and internal controls[185] - The Group implemented a risk management model focused on "Integration of Policy, Procedure and System with Risk-oriented" to enhance risk management and control[127] - The Group's organizational structure supports market expansion through project organization and coordination at headquarters and independent project development by business sectors[134] Safety and Compliance - The Group emphasized safety management and compliance with national laws, ensuring stable operations of environmental protection projects[128] - The Company has developed over 400 functions in its electronic procurement platform to enhance compliance management and prevent bid rigging and collusive bidding[141] - The Group has established a dual prevention mechanism for safety risk management, promoting continuous development across various business sectors[139] - The Group's emissions monitoring indicators exceed the limits set by the EU Industrial Emissions Directive (2010/75/EU)[156] Community Engagement and Philanthropy - The Group actively participated in various philanthropic activities related to environmental protection and community care, promoting sustainable development issues[40] - The Group made a donation of HK$1.95 million to support frontline workers in fighting against the pandemic in Hong Kong[157] Future Outlook - The Chinese government is promoting the establishment of a unified national energy market to support green development and achieve carbon emission targets[119] - The Ministry of Finance of the PRC has called for increased support for low-carbon industries, including green energy and "zero-waste cities"[119]

Company Overview - Everbright Environment has become the largest environmental enterprise in China and a leading player in Asia's environmental protection industry since shifting its focus to the environmental sector in 2003[3][4]. - The company operates in over 210 locations across 25 provinces and has expanded its business to international markets including Germany, Poland, Vietnam, and Mauritius[5][7]. - Everbright Environment has been recognized as the top solid waste treatment enterprise in China for 11 consecutive years and has been included in the MSCI China Index for nine consecutive years[6]. - The company aims to create better investment value and undertake more social responsibility, having been listed in the Fortune China 500 for the first time in 2021[6]. Business Operations - Everbright Environment's main businesses include waste-to-energy, integrated waste treatment, and environmental remediation, contributing to its position as the world's largest waste-to-energy investor and operator[5][6]. - The company has a diverse portfolio that includes hazardous and solid waste treatment, resource recycling, and environmental sanitation integration, showcasing its comprehensive approach to environmental management[5]. - The Group's designed daily waste processing capacity remained the highest globally, while wastewater treatment capacity also saw significant progress[29]. - The Group's strategic deployment includes the "Four Major Areas" of environment, resources, energy, and climate, aiming for high-quality sustainable development[38]. Financial Performance - Revenue for 2021 reached HK$49,895,384, representing a 16% increase from HK$42,926,426 in 2020[12]. - Profit attributable to equity holders of the Company was HK$15,027,003, up 17% from HK$12,851,501 in 2020[12]. - Total assets increased by 27% to HK$200,235,628 from HK$158,187,110 in 2020[12]. - Total liabilities rose by 32% to HK$135,893,406 compared to HK$102,642,506 in 2020[12]. - Basic earnings per share increased to 110.76 HK cents, a 13% rise from 97.93 HK cents in 2020[12]. - The Group achieved a compound annual growth rate (CAGR) of total assets at 29%, revenue at 26%, and profit attributable to equity holders at 18% over the past four years[35]. Sustainability and Innovation - Everbright Environment has been a constituent member of the Dow Jones Sustainability Indices for six years running, reflecting its commitment to sustainability[6]. - The company has developed new technologies and solutions in areas such as zero-waste cities and energy-saving lighting, enhancing its service offerings[5]. - The establishment of the Carbon-Neutrality Technology Research and Development Center supports the Group's efforts in carbon emission reduction[30]. - The Group is committed to the "Three Carbons" development targets and action plan, focusing on reducing pollution and carbon emissions[42]. Market Expansion and Projects - Everbright Environment expanded its market presence by entering new markets including Xinjiang Uygur Autonomous Region, Hong Kong, and Mauritius[29]. - The Group signed 69 new projects in 2021, with a total investment of approximately RMB 13.248 billion, covering areas such as waste-to-energy, food waste treatment, and solar energy[62][63]. - The Group processed 43,452,000 tonnes of household waste, generating 22,271,602,000 kWh of green electricity, sufficient to meet the annual needs of 18,559,000 households[74]. - The Group's hazardous and solid waste processing reached 269,000 tonnes, contributing to a reduction of 20,211,000 tonnes of CO2 emissions[74]. Employee and Risk Management - The Group emphasized the importance of employee training, conducting various training sessions including safety management, cybersecurity, and corporate culture training to equip employees with necessary skills[171]. - The principal risks identified for the Group in 2021 included policy changing risk, environmental compliance risk, and market competition risk, with targeted control measures implemented to manage these risks[174]. - The Group's risk management system has been enhanced to address uncertainties arising from new policies and market conditions[175]. - The Group has established a three-level management system for pandemic prevention and control, focusing on vaccination and securing pandemic prevention supplies[186]. Awards and Recognition - The Company ranked first in the Top 50 Environmental Enterprises in China for the third consecutive year[23]. - The Company was included in the Fortune China 500 list for the first time, ranking 283rd[23]. - Everbright Water ranked first in the "Top 10 Influential Solid Waste Treatment Enterprises in China" for the 11th consecutive year[80]. - The company received the "Outstanding Enterprise in Fighting Against the Pandemic" award at the China Charity Festival[84].