Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 11,369,355, a decrease of 4.6% from HKD 11,913,356 in the same period of 2022[8]. - Gross profit increased to HKD 5,461,429, up 2.5% from HKD 5,329,443 year-on-year[8]. - Profit before tax decreased to HKD 3,942,351, down 10.8% from HKD 4,417,082 in the previous year[8]. - Net profit for the period was HKD 2,851,135, a decline of 16.0% compared to HKD 3,391,789 in the same period last year[8]. - Basic and diluted earnings per share were HKD 0.3865, down from HKD 0.4511 in the prior year[8]. - Total comprehensive income for the period was HKD 934,897, representing an increase of 39.8% from HKD 668,705 in the previous year[9]. - The total profit before tax for the consolidated group was HKD 3,942,351,000 for the six months ended June 30, 2023, compared to HKD 4,417,082,000 in the same period of 2022, indicating a decrease of approximately 10.8%[24]. - The unaudited consolidated profit before tax decreased by 10.7% to HKD 3.942 billion, down from HKD 4.417 billion in 2022, primarily due to a higher gross profit margin from property deliveries in the previous year[93]. - The unaudited consolidated profit attributable to the owners of the company decreased by 14.3% to HKD 2.527 billion, compared to HKD 2.950 billion in 2022[93]. Revenue Breakdown - The group reported total revenue of HKD 7,988,119,000 for the six months ended June 30, 2023, a decrease from HKD 9,060,403,000 in the same period of 2022, representing a decline of approximately 11.8%[22]. - The water resources segment generated revenue of HKD 7,950,125,000, down from HKD 9,036,584,000, reflecting a decrease of about 12.0% year-on-year[22]. - The property investment and development segment reported revenue of HKD 1,673,223,000, an increase from HKD 1,248,664,000, marking a growth of approximately 34.0%[22]. - The department store operations segment experienced a revenue increase to HKD 403,813,000 from HKD 437,697,000, indicating a decline of about 7.7%[22]. - Water supply revenue from Hong Kong increased to HKD 2,736,191, up 1.6% from HKD 2,694,788 in 2022, while revenue from mainland China rose significantly to HKD 2,163,795, a 21.3% increase from HKD 1,783,881[29]. - The sewage treatment service revenue reached HKD 436,574, reflecting an increase from HKD 402,341 in the previous year[29]. - Revenue from water resources-related services decreased to HKD 18,474,000 for the six months ended June 30, 2023, compared to HKD 66,112,000 in the previous year[79]. Assets and Liabilities - Non-current assets increased to HKD 83,933,028 as of June 30, 2023, up from HKD 81,293,868 at the end of 2022, reflecting a growth of 3.2%[10]. - Current assets rose to HKD 59,402,813, an increase of 13.5% from HKD 52,220,752 at the end of 2022[10]. - Total liabilities increased to HKD 85,082,553, compared to HKD 75,005,303 at the end of 2022, indicating a rise of 13.4%[11]. - The company's net asset value as of June 30, 2023, was HKD 58,253,288, slightly down from HKD 58,509,317 at the end of 2022[11]. - The total assets of the company as of June 30, 2023, amounted to HKD 143,335,841,000, an increase from HKD 133,514,620,000 as of December 31, 2022, reflecting a growth of about 7.5%[26]. - The total liabilities increased to HKD 85,082,553,000 as of June 30, 2023, compared to HKD 75,005,303,000 at the end of 2022, representing an increase of approximately 13.7%[26]. Cash Flow and Financial Management - Net cash inflow from operating activities for the six months ended June 30, 2023, was HKD 4,353,697, compared to a cash outflow of HKD 5,590,692 for the same period in 2022[14]. - The net cash outflow from investing activities decreased significantly to HKD 1,470,330 from HKD 5,102,029 year-on-year[14]. - The net increase in cash and cash equivalents for the six months ended June 30, 2023, was HKD 5,209,539, a substantial rise from HKD 187,280 in the previous year[15]. - Total cash and cash equivalents at the end of the period reached HKD 13,685,986, up from HKD 8,718,926 as of June 30, 2022[15]. - The company reported cash and bank balances of HKD 14,588,935 as of June 30, 2023[57]. - The group’s cash and bank balances increased by HKD 56.51 billion to HKD 145.89 billion, with 88.58% in RMB, 11.41% in HKD, and 0.01% in USD[118]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.1871 per share, to be distributed around October 26, 2023[4]. - The interim dividend declared is HKD 0.1871 per ordinary share, consistent with the previous year, resulting in a total dividend payout of HKD 1,223,226,000 for the six months ended June 30, 2023[36]. - The board declared an interim dividend of HKD 0.1871 per share for the six months ending June 30, 2023, consistent with the previous year[149]. - Guangdong Yuehai Holdings Group holds 56.49% of the company's equity as of June 30, 2023, with 3,693,453,546 shares[135]. Strategic Initiatives and Future Outlook - The company continues to explore market expansion opportunities and new product development strategies[4]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[9]. - The company is actively exploring potential mergers and acquisitions to enhance its market position and growth prospects[9]. - The company aims to strengthen monitoring of overdue receivables to minimize credit risk, with 13% of trade receivables concentrated with a single customer as of June 30, 2023[43]. - The company aims to maintain a stable development of its core business while ensuring risk management is effective, amidst uncertainties in the global economic recovery[129]. - The group plans to enhance its business development in water resource management, property, and infrastructure sectors in the second half of 2023, optimizing asset allocation and resource configuration[129]. - The company is actively responding to the "carbon peak and carbon neutrality" strategy, strengthening climate change management and energy-saving measures in its operations[128]. Corporate Governance and Compliance - The company has adhered to the corporate governance code during the six months ending June 30, 2023[137]. - The audit committee reviewed the unaudited interim financial report for the six months ending June 30, 2023[140]. - The company has confirmed compliance with the trading standards for directors during the six months ending June 30, 2023[138]. - The company is committed to maintaining the highest standards of corporate governance for the benefit of all stakeholders[137].

Financial Performance - The unaudited consolidated revenue for the three months ended March 31, 2023, was HKD 5,332.65 million, a decrease of 3.2% compared to HKD 5,506.57 million in the same period of 2022[2] - The unaudited profit before tax for the same period decreased by 11.4% to HKD 2,044.18 million from HKD 2,306.56 million in 2022[2] - The unaudited profit attributable to owners of the company was HKD 1,284.56 million, down 13.6% from HKD 1,487.43 million in the previous year[2] - Revenue from other water resource projects decreased by 5.7% to HKD 2,059,645,000 for the period, down from HKD 2,183,905,000 in 2022[11] - The pre-tax profit from other water resource projects was HKD 494,183,000, a decrease of 1.7% compared to HKD 502,503,000 in 2022, primarily due to a 7.4% decline in the RMB to HKD exchange rate[11] - Property investment revenue for the period decreased by 15.3% to HKD 352,100,000, down from HKD 415,909,000 in 2022, influenced by the exchange rate and rental concessions[12] - Total revenue from the department stores decreased by 16.4% to HKD 163,049,000, compared to HKD 194,927,000 in 2022[21] Asset and Equity Changes - The total assets as of March 31, 2023, increased by 8.0% to HKD 144,173.83 million from HKD 133,514.62 million as of December 31, 2022[2] - The equity attributable to owners of the company increased by 4.9% to HKD 45,460.83 million from HKD 43,328.64 million as of December 31, 2022[2] Water Supply and Treatment Capacity - The total water supply for the Dongshen Water Supply Project was 589 million tons, an increase of 5.6% compared to 558 million tons in 2022, generating revenue of HKD 1,720 million, a decrease of 0.8%[5] - The total water supply capacity of the group as of March 31, 2023, is 6,951,800 tons per day, compared to 5,047,200 tons per day as of March 31, 2022, representing an increase of approximately 37.7%[7] - The total wastewater treatment capacity of the group as of March 31, 2023, is 1,925,900 tons per day, compared to 1,623,200 tons per day as of March 31, 2022, reflecting an increase of about 18.6%[7] - The group has ongoing water resource projects with a total water supply capacity of 2,670,000 tons per day and wastewater treatment capacity of 278,500 tons per day as of March 31, 2023[11] Investment and Property Management - The net gain from fair value adjustments of investment properties was HKD 311.01 million, compared to HKD 265.25 million in 2022[2] - The average occupancy rate for Tianhe City Plaza was 99.3%, with revenue of HKD 169,308,000, a decrease of 29.8% compared to HKD 241,285,000 in the same period last year[13] - The average occupancy rate for the Panyu Tianhe City Shopping Center was 95.2%, generating revenue of HKD 58,723,000, down 7.8% from HKD 63,710,000 in 2022[13] - The group holds a 76.13% effective interest in Guangdong Tianhe City, which operates several shopping malls in China[12] - The average occupancy rate for the period at the Hong Kong investment building was 90%, down from 100% in 2022[20] Corporate Governance and Future Plans - The company plans to continue enhancing corporate governance and transparency by voluntarily disclosing financial information quarterly[3] - The company plans to enhance business development in water resource management and infrastructure while optimizing asset allocation and resource configuration[27] - The company aims to leverage opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area development strategy and focus on quality public-private partnership projects and related market acquisition opportunities[27] Miscellaneous - The financial data for the three months ended March 31, 2023, has been reviewed by the company's audit committee but remains unaudited[28] - The board of directors consists of five executive directors, three non-executive directors, and four independent non-executive directors[30] - The company is led by Chairman Hou Wailin[30] - The announcement date is April 27, 2023[30] - The company is named Yuehai Investment Co., Ltd.[30] - No specific financial performance metrics or future outlook were provided in the document[30] - There are no details on user data, new product development, or market expansion strategies mentioned[30] - The document does not include any information on mergers or acquisitions[30] - No new strategies or technological advancements were highlighted in the content[30] - The focus of the document is primarily on the composition of the board rather than financial results[30] - Overall, the document lacks detailed financial data or performance summaries[30]

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a year-on-year growth of 15%[1] - Total revenue for the year ended December 31, 2022, was HKD 23,196,238, a decrease of 21.9% compared to HKD 29,715,492 in 2021[21] - Net profit attributable to owners for the year was HKD 4,763,503, reflecting a slight increase of 1.4% from HKD 4,696,962 in the previous year[21] - Basic earnings per share increased to HKD 0.7286 from HKD 0.7184, marking a 1.4% rise[21] - EBITDA for 2022 was HKD 10,092,429, down 7.4% from HKD 10,902,674 in 2021[21] - The group's consolidated revenue for 2022 was HKD 23.196 billion, a decrease of 21.9% compared to HKD 29.715 billion in 2021[57] - The consolidated profit before tax for 2022 decreased by 14.3% or HKD 1.213 billion to HKD 7.244 billion, with stable growth in the water resources business partially offsetting the decline in property investment and development[57] - The profit attributable to owners of the company for the year was HKD 4,763,503,000, slightly up from HKD 4,696,962,000 in 2021, indicating a growth of 1.4%[138] Market and Business Expansion - User data showed a 20% increase in active users across the company's platforms, reaching 2 million users by the end of the fiscal year[2] - The company is expanding its market presence, targeting new regions in Southeast Asia, aiming for a 25% market share by 2025[5] - New product launches are expected to contribute an additional HKD 300 million in revenue, with a focus on sustainable water solutions[4] - The company plans to enhance its digital infrastructure, with an investment of HKD 100 million aimed at improving customer engagement[8] - The company plans to continue expanding its business in water resource management and infrastructure, optimizing asset portfolios and resource allocation[54] Operational Efficiency and Cost Management - The company aims to achieve a 15% reduction in operational costs through efficiency improvements and technology upgrades[10] - Research and development investments increased by 30%, focusing on innovative water treatment technologies[7] - The water resources segment's operating profit margin improved to 68.22% in 2022 from 53.39% in 2021, indicating enhanced operational efficiency[29] - The property investment and development segment's operating profit margin decreased to 26.04% in 2022 from 39.75% in 2021, highlighting challenges in this area[29] Financial Health and Debt Management - Total assets increased by 2.7% to HKD 133,514,620 from HKD 130,030,823 in 2021[21] - Net financial debt rose by 65.1% to HKD 31,797,468 from HKD 19,264,453 in 2021[21] - The capital debt ratio increased to 78.35% in 2022 from 48.86% in 2021[21] - Interest coverage ratio decreased to 6.72 times from 12.82 times in the previous year[21] - The capital adequacy ratio as of December 31, 2022, was 78.4%, up from 48.9% in 2021, indicating a substantial increase in leverage[96] Shareholder Returns and Dividends - The board declared a final dividend of HKD 0.4262 per share, reflecting a payout ratio of 40% of net profits[9] - The proposed final dividend per share is HKD 0.4262, slightly up from HKD 0.4254 in the previous year[21] - The company is committed to maximizing shareholder value through a stable dividend policy, reflecting its long-term value creation strategy[51] Corporate Governance and Management - The company has a diverse portfolio including water resources, property investment and development, department store operations, hotel ownership and management, energy project investment, and road and bridge operations[157] - The company's board includes executive, non-executive, and independent non-executive directors, ensuring a balanced governance structure[147] - The company has adopted a code of conduct for securities trading that is not less stringent than the standards set out in the Listing Rules[193] - The company emphasizes the importance of effective risk management and has board members with extensive experience in finance, accounting, and auditing to oversee risk management and internal control systems[197] Employee and Talent Management - As of December 31, 2022, the group had 10,587 employees, with a total salary expenditure of approximately HKD 2,513,717,000, an increase from HKD 2,294,138,000 in 2021[106] - The group emphasizes a corporate culture focused on performance and efficiency, aiming to attract international and specialized talent to enhance market competitiveness[106] - The overall compensation policy is designed to ensure market competitiveness and align with the group's development goals and performance[106] Future Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[3] - The company aims to create long-term value for stakeholders while maintaining stable development of core businesses amidst economic uncertainties[54] - The company plans to actively invest in water resource management, property investment and development, and infrastructure sectors, while seeking market investment opportunities in raw water supply, urban water supply, sewage treatment, and comprehensive water environment management[191]

Financial Performance - The unaudited consolidated revenue for the nine months ended September 30, 2022, was HKD 17,783.87 million, a decrease of 19.7% compared to HKD 22,154.54 million in the same period of 2021[2]. - The unaudited consolidated profit before tax decreased by 12.6% to HKD 7,070.93 million, down from HKD 8,093.48 million in 2021[4]. - The net profit attributable to the owners of the company was HKD 4,699.83 million, a slight decrease of 0.6% from HKD 4,728.71 million in the previous year[2]. - The total revenue for the period decreased by 81.6% to HKD 989,909,000 compared to HKD 5,392,554,000 in 2021[19]. - The revenue from property sales was HKD 969,817,000, down from HKD 5,377,755,000 in 2021[19]. - The pre-tax profit for the period, excluding fair value changes and net finance costs, was HKD 4,985,000, down from HKD 1,845,596,000 in 2021[19]. Asset and Equity - The total assets as of September 30, 2022, amounted to HKD 130,474.78 million, reflecting a marginal increase of 0.3% from HKD 130,030.82 million as of December 31, 2021[2]. - The equity attributable to the owners of the company decreased by 7.8% to HKD 42,618.45 million from HKD 46,210.70 million[2]. Water Supply Projects - The total water supply for the Dongshen Water Supply Project was 1.707 billion tons, a decrease of 10.7% from 1.911 billion tons in 2021, generating revenue of HKD 5,177.00 million, down 2.6%[5]. - The company successfully acquired or signed contracts for three new water resource projects in China, with a total investment estimated at approximately RMB 1.614 billion (about HKD 1.785 billion)[5]. - The total designed water supply capacity of the company's water supply plants increased to 14,873,200 tons per day as of September 30, 2022, compared to 13,783,200 tons per day at the end of 2021[5]. - The total water supply capacity of the group's subsidiaries and joint ventures reached 5,481,800 tons per day, while the wastewater treatment capacity was 1,888,900 tons per day as of September 30, 2022[7]. - The group is currently constructing water supply plants with a total supply capacity of 2,670,000 tons per day and wastewater treatment capacity of 318,500 tons per day[9]. - The company continues to focus on expanding its water resource projects through acquisitions and new constructions to meet increasing demand[9]. Property Investment - Guangdong Tianhe City reported a 5.2% increase in property investment revenue to HKD 1,170,731,000, compared to HKD 1,112,852,000 in the previous year[10]. - The pre-tax profit from property investment for Guangdong Tianhe City increased by 0.2% to HKD 738,852,000, compared to HKD 737,463,000 in 2021[10]. - The rental area of Tianhe City Plaza was 106,000 square meters with a rental rate of 99.3%[11]. - The rental area of Tianhe City Shopping Center was 144,000 square meters with a rental rate of 93.7%[11]. - The total floor area of properties under development is approximately 506,000 square meters[11]. Economic Environment and Strategy - The company acknowledges the ongoing economic pressures, including demand contraction and supply shocks, impacting its recovery[27]. - The company emphasizes the importance of risk management in the face of complex economic environments[27]. - The company aims to optimize its asset portfolio and resource allocation while expanding its core business scale[27]. - The company is actively seizing potential development opportunities arising from the "Guangdong-Hong Kong-Macao Greater Bay Area" strategic planning[27]. - The company will focus on high-quality public-private partnership projects and related market acquisition opportunities to achieve new breakthroughs in profit growth[27]. Other Financial Metrics - The net financial costs for the period were HKD 433.00 million, an increase from HKD 175.00 million in the previous year[4]. - The company reported a net exchange gain of HKD 105.00 million, compared to a net exchange loss of HKD 30.00 million in 2021[4]. - The average occupancy rate for the period was 96.4%, an increase from 90.0% in 2021[20]. - The total income for the period increased by 4.6% to HKD 37,530,000 compared to HKD 35,875,000 in 2021[20]. - The net gain from fair value adjustments of investment properties was HKD 1,108,169,000, up from HKD 463,680,000 in 2021[19]. Governance - The board of directors consists of five executive directors and several non-executive and independent directors, ensuring diverse governance[29]. - The company has not provided audited financial data for the nine months ending September 30, 2022, and cautions shareholders and potential investors regarding the unreliability of the information[28].

Revenue and Profit - Revenue for the six months ended June 30, 2022, was HKD 11,913,356, a decrease of 12.7% from HKD 13,651,759 in the same period of 2021[9] - Net profit attributable to owners for the period was HKD 2,949,518, compared to HKD 2,762,835 in the previous year, representing an increase of 6.8%[9] - Basic and diluted earnings per share for the period were HKD 0.4511, up from HKD 0.4226 in the same period last year[9] - The company reported a fair value gain on investment properties of HKD 475,134, significantly higher than HKD 100,634 in the prior year[9] - Total comprehensive income for the period was HKD 668,705, a decrease from HKD 3,819,723 in the same period of 2021, primarily due to foreign exchange losses[10] Expenses and Financial Performance - Gross profit for the same period was HKD 5,329,443, down from HKD 5,792,307, reflecting a gross margin of approximately 44.7%[9] - Administrative expenses increased to HKD 1,248,695 from HKD 1,039,663, reflecting a rise of 20.1%[9] - Financial expenses rose to HKD 356,494, compared to HKD 224,699 in the previous year, indicating an increase of 58.6%[9] - The total tax expense for the six months ended June 30, 2022, was HKD 1,025,293, a decrease of 24.6% from HKD 1,360,623 in the same period of 2021[35] Assets and Liabilities - As of June 30, 2022, non-current assets totaled HKD 80,482,650,000, an increase of 2.1% from HKD 78,866,519,000 as of December 31, 2021[11] - Current assets reached HKD 53,704,861,000, up 4.9% from HKD 51,164,304,000 in the previous period[11] - Total liabilities decreased to HKD 74,214,152,000 from HKD 81,125,946,000, reflecting a reduction of approximately 8.5%[12] - The company's net asset value stood at HKD 59,973,359,000, down from HKD 61,904,877,000, indicating a decline of about 3.1%[12] - Cash and bank balances increased to HKD 10,526,576,000, compared to HKD 9,595,100,000, representing a growth of 9.7%[11] Cash Flow - The net cash flow used in operating activities for the six months ended June 30, 2022, was (HKD 5,590,692) thousand, compared to (HKD 1,870,576) thousand for the same period in 2021[15] - The net cash flow used in investing activities for the six months ended June 30, 2022, was (HKD 5,102,029) thousand, an increase from (HKD 3,480,125) thousand in the previous year[15] - The net cash flow from financing activities for the six months ended June 30, 2022, was HKD 10,880,001 thousand, compared to HKD 6,933,908 thousand in 2021[15] Segment Performance - For the six months ended June 30, 2022, the group reported external revenue of HKD 9,036,584, an increase from HKD 8,021,854 for the same period in 2021, representing a growth of approximately 12.6%[22] - The group's segment profit for the water resources division was HKD 3,297,010, up from HKD 2,940,757 in the previous year, indicating an increase of about 12.2%[22] - The total segment revenue for the property investment and development division was HKD 1,301,159, compared to HKD 3,352,142 in the prior year, reflecting a decrease of approximately 61.2%[22] Acquisitions and Investments - The company acquired four companies in Heyuan for a cash consideration of approximately HKD 406,514,000, aimed at expanding its market share in China's water resources sector[60] - The identifiable net assets acquired from the transaction were valued at HKD 405,880,000, resulting in goodwill of HKD 634,000[61] - The company acquired 51% of Puning Yuehai Water Co., Ltd. for RMB 515,212,000 (approximately HKD 612,175,000) in January 2021, expanding its presence in China's water supply sector[66] - The company plans to continue expanding its market share in the Chinese water resources market through strategic acquisitions[66] Shareholder Information - As of June 30, 2022, the company had a total of 6,537,821,440 ordinary shares issued, with key shareholders holding significant stakes[138] - Guangdong Yuehai Holdings Group Limited holds 3,693,453,546 shares, representing 56.49% of the company's equity[142] - Yuehai Trust Limited holds 576,404,918 shares, accounting for 8.82% of the company's equity[142] Governance and Compliance - The company has complied with the Corporate Governance Code during the six months ended June 30, 2022[144] - The audit committee and independent auditor have reviewed the unaudited interim financial information for the six months ended June 30, 2022[147] Future Outlook - The company aims to enhance its core business operations while optimizing governance and risk management mechanisms amid a complex external environment[135] - In the second half of 2022, the company plans to increase efforts in water resource management, property, and infrastructure development, while optimizing asset allocation[136] - The company recognizes the ongoing risks from the COVID-19 pandemic and has established management systems and emergency plans to mitigate these risks[133]

Financial Performance - The unaudited consolidated revenue for the three months ended March 31, 2022, was HKD 5,506.57 million, a decrease of 13.2% compared to HKD 6,343.48 million in the same period of 2021[2] - The unaudited consolidated profit before tax increased by 1.6% to HKD 2,306.56 million, up from HKD 2,270.29 million in the previous year[4] - The unaudited profit attributable to owners of the company rose by 8.5% to HKD 1,487.43 million, compared to HKD 1,371.29 million in the same period of 2021[2] - The net financial costs for the period were HKD 127.00 million, down from HKD 31.00 million in the previous year[4] Asset and Equity Growth - The total assets as of March 31, 2022, amounted to HKD 132,827.50 million, reflecting a 2.2% increase from HKD 130,030.82 million[2] - The equity attributable to owners of the company increased to HKD 48,067.31 million, up 4.0% from HKD 46,210.70 million as of December 31, 2021[2] Water Supply Projects - The total water supply for the Dongshen Water Supply Project was 55.8 million tons, a decrease of 11.4% from 63.0 million tons in 2021, generating revenue of HKD 1,733.30 million[5] - The pre-tax profit from the Dongshen Water Supply Project was HKD 1,121.00 million, down 5.8% from HKD 1,190.00 million in the previous year[5] - The total designed water supply capacity of the company's water supply plants increased to 14,193,200 tons per day as of March 31, 2022, compared to 13,783,200 tons per day as of December 31, 2021[6] - The total water supply capacity of the group's subsidiaries and joint ventures reached 5,047,200 tons per day as of March 31, 2022, compared to 3,625,500 tons per day in 2021, representing an increase of 39.2%[7] - The total wastewater treatment capacity of the group was 1,623,200 tons per day as of March 31, 2022, up from 1,091,300 tons per day in 2021, marking a growth of 48.7%[7] Revenue from Other Projects - Revenue from other water resource projects increased by 96.6% to HKD 2,183,905,000 in the reporting period, compared to HKD 1,110,810,000 in 2021[9] - The pre-tax profit from other water resource projects rose by 145.6% to HKD 502,503,000, up from HKD 204,605,000 in the previous year[9] Real Estate and Investment Properties - Guangdong Yuehai Tianhe City reported a revenue increase of 22.4% to HKD 298,938,000, compared to HKD 244,185,000 in 2021[10] - The average occupancy rate of the Tianhe City shopping center remained at 99.9%, while the office building's average occupancy rate was 94.5%[10] - The pre-tax profit from the investment properties of Guangdong Yuehai Tianhe City increased by 22.6% to HKD 218,889,000, compared to HKD 178,597,000 in 2021[10] - The construction services revenue for the group was HKD 785,731,000, significantly up from HKD 365,566,000 in the previous year[9] Ongoing Projects and Developments - The group has ongoing water supply projects with a total capacity of 2,744,600 tons per day and wastewater treatment capacity of 318,500 tons per day as of March 31, 2022[9] - The Shenzhen Yuehai City project has a total floor area of approximately 146,551 square meters, with the main structure completed and renovation ongoing, expected to be completed in the second half of 2022[15] - The total floor area of the Zhuhai Jinwan project is approximately 166,692 square meters, with the first phase structure completed and expected to be finished in 2024[16] - The total floor area of the Foshan Shigui Mansion project is approximately 151,493 square meters, with the main structure under construction and expected to be completed in 2023[17] Property Sales and Revenue - Revenue for the period decreased by 72.9% to HKD 386,718,000, down from HKD 1,424,922,000 in 2021, with property sales contributing HKD 381,265,000[18] - Average occupancy rate for Yuehai Investment Building increased to 100%, up from 87.9% in 2021, with total revenue rising by 3.9% to HKD 13,284,000[19] - Total rental area for six department stores operated by the group was approximately 222,400 square meters, an increase from 123,900 square meters in December 2021[20] - Revenue from department stores decreased by 5.2% to HKD 194,927,000, compared to HKD 205,531,000 in 2021, while pre-tax profit increased by 71.2% to HKD 136,652,000[20] Hotel Operations - Average room rate for Yuehai Sheraton Hotel was HKD 835, down from HKD 874 in 2021, with an average occupancy rate of 70.3%[22] - Revenue from hotel operations decreased by 19.8% to HKD 73,019,000, with a pre-tax loss of HKD 28,956,000 compared to a loss of HKD 15,479,000 in 2021[22] Infrastructure and Energy - Electricity sales volume for Yuehai Energy decreased by 10.8% to 572 million kWh, while revenue increased by 7.7% to HKD 433,466,000 due to rising electricity prices[23] - Daily average traffic for Xingliu Expressway increased by 82.7% to 26,303 vehicles, although revenue decreased by 79.8% to HKD 180,755,000 due to the absence of construction service income[23] - Pre-tax profit for the expressway operations increased by 82.9% to HKD 98,495,000, compared to HKD 53,854,000 in 2021[23] Project Financing and Costs - Total construction costs for the Yinping PPP project are capped at RMB 4.754 billion (approximately HKD 5.862 billion) with an 8% annual interest rate on the amounts paid during the construction period[24] - As of March 31, 2022, approximately RMB 1.769 billion (equivalent to about HKD 2.179 billion) has been paid for construction costs, reflecting an increase from RMB 1.724 billion (approximately HKD 2.109 billion) as of December 31, 2021[24] - The accrued interest, management fees, and maintenance fees for the period decreased by 14.9% to HKD 32.176 million from HKD 37.828 million in the previous year[25] - The pre-tax profit for the period decreased by 18.7% to HKD 28.332 million compared to HKD 34.837 million in the previous year, primarily due to the completion of two additional project roads[25] Strategic Outlook - The company aims to maintain a stable development strategy amidst economic uncertainties, focusing on risk management and long-term value creation for stakeholders[26] - The company plans to enhance its business development in water resource management, property, and infrastructure sectors while optimizing asset allocation[26] - The company will actively pursue opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area development strategy and seek quality public-private partnership projects and related market acquisition opportunities[26] - The company emphasizes the importance of cautious investment decisions, advising shareholders and potential investors to consult professional advisors regarding their investment situations[27]

Financial Performance - Revenue for 2021 reached HKD 29,715,492, an increase of 28.2% compared to HKD 23,173,322 in 2020[14] - Profit attributable to owners for the year was HKD 4,696,962, reflecting a growth of 4.1% from HKD 4,509,944 in 2020[14] - Basic earnings per share increased to HKD 0.7184 from HKD 0.6898, marking a 4.1% rise[14] - EBITDA for 2021 was HKD 10,902,674, up 10.6% from HKD 9,855,200 in the previous year[14] - The consolidated profit before tax rose by 3.1% to HKD 8.457 billion, up from HKD 8.201 billion in 2020[46] - The group's consolidated revenue for 2021 was HKD 29.715 billion, an increase of 28.2% compared to HKD 23.173 billion in 2020[46] Assets and Liabilities - Total assets grew by 45.1% to HKD 130,030,823 from HKD 89,600,542 in 2020[14] - The total liabilities of the group were HKD 61,904,877, an increase from HKD 55,955,961 in the previous year[101] - The total financial borrowings as of December 31, 2021, amounted to HKD 28.860 billion, a significant increase from HKD 11.438 billion in 2020[19] - The company's capital expenditure for the year amounted to HKD 155.26 billion, primarily related to the construction of water supply and sewage treatment plants, as well as asset acquisitions[77] Debt and Financial Ratios - Net financial debt surged to HKD 19,264,453, a significant increase of 1,699.1% from HKD 1,070,761[14] - The capital debt ratio for 2021 was 48.86%, a notable increase from 6.55% in 2020[13] - The interest coverage ratio decreased to 12.82 times from 28.92 times in the previous year[13] - The group's debt-to-equity ratio increased to 48.9% from 6.6% in 2020, indicating a significant rise in financial leverage[75] Dividends - The proposed final dividend per share is HKD 0.4254, compared to HKD 0.4130 in the previous year[14] - The company proposed a final dividend of HKD 0.4254 per share, leading to a total annual dividend of HKD 0.6071, compared to HKD 0.5894 in 2020[42] - The interim dividend per ordinary share was HKD 0.1817, compared to HKD 0.1764 in 2020, reflecting a 3.0% increase[97] Business Segments - The water resources segment generated revenue of HKD 17.806 billion, accounting for 59.92% of total revenue, while property investment and development contributed HKD 7.878 billion, or 26.51%[21] - The annual water supply from the Dongshen Water Supply Project was 2.355 billion tons, a 6.8% increase from 2.205 billion tons in 2020, generating revenue of HKD 6.468 billion[47] - Revenue from other water resource projects increased by 67.5% to HKD 11,369,997,000 in 2021, compared to HKD 6,786,342,000 in 2020[55] Operational Efficiency - The hotel management segment faced challenges due to decreased tourist arrivals but showed improved operational efficiency compared to the previous year[44] - The average occupancy rate of the Tianhe City shopping center was nearly 99.9% in 2021, maintaining its high performance from 2020[57] - The average occupancy rate for the group's hotels was 74.8%, an increase from 66.1% in 2020, while the average room rate rose to HKD 904 from HKD 876[68] Strategic Initiatives - The company actively adjusted its operational strategies in response to market conditions, focusing on sustainable development and risk management[43] - The group plans to optimize its asset portfolio and resource allocation while expanding its core business in water resource management and infrastructure[45] - The company aims to leverage opportunities from the Guangdong-Hong Kong-Macao Greater Bay Area development strategy and pursue quality public-private partnership projects[45] Governance and Management - The company has a strong management team with diverse backgrounds in finance, engineering, and corporate governance, enhancing its operational capabilities[87] - The board consists of five executive directors, three non-executive directors, and five independent non-executive directors, with independent directors making up over 38% of the board[145][147] - The company emphasizes the importance of financial oversight and strategic management through its experienced financial director and team[87] Risk Management - The management discussion and analysis section of the annual report discusses key risks and uncertainties facing the group[98] - The company is actively monitoring macroeconomic risks, including inflation and geopolitical tensions, which could impact future financial performance[80] - The company emphasizes effective risk management as crucial for success, supported by independent non-executive directors with extensive experience in finance and risk management[147] Environmental, Social, and Governance (ESG) - An Environmental, Social, and Governance (ESG) Committee was established in 2018 to oversee and report on the execution and effectiveness of ESG management, prioritizing significant ESG issues and evaluating performance impacts on stakeholders[181] - The company has implemented a set of ESG policies addressing biodiversity, water quality, supply chain management, health and safety, and ethical business operations, providing guidance for partners[182] - Stakeholder engagement is recognized as crucial for sustainable business, with the company conducting materiality assessments to identify key issues affecting both the company and its stakeholders[183]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 13,651,759 thousand, an increase of 44.5% compared to HKD 9,485,522 thousand for the same period in 2020[11]. - Gross profit for the same period was HKD 5,792,307 thousand, representing a gross margin of 42.4%[11]. - Profit before tax increased to HKD 4,524,795 thousand, up 18.8% from HKD 3,805,808 thousand in the previous year[11]. - Net profit for the period was HKD 3,164,172 thousand, a rise of 17.5% compared to HKD 2,692,709 thousand in 2020[11]. - Basic and diluted earnings per share for the period were HKD 42.26 cents, compared to HKD 36.24 cents in the same period last year[11]. - Total comprehensive income for the period was HKD 3,819,723, up 108.5% from HKD 1,835,739 in the previous year[12]. - The company's profit for the six months ended June 30, 2021, was HKD 3,164,172, an increase of 17.5% compared to HKD 2,692,709 for the same period in 2020[12]. - The company reported a net asset value of HKD 59,842,378, an increase from HKD 55,955,961 at the end of 2020, indicating a growth of 3.3%[14]. - The company’s total assets were reported at HKD 44,720,509 as of June 30, 2021, compared to HKD 28,635,861 at the end of 2020, reflecting a significant growth[18]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.1817 per share, to be distributed on or around October 28, 2021[5]. - The company declared an interim dividend of HKD 0.1817 per share, compared to HKD 0.1764 per share in the previous year, totaling HKD 1,187,922[43]. - The company announced an interim dividend of HKD 0.1817 per share for the six months ended June 30, 2021, compared to HKD 0.1764 in 2020, reflecting an increase of approximately 3.0%[154]. Operational Efficiency and Strategic Initiatives - The management is focused on strategic initiatives to improve operational efficiency and drive future growth[11]. - The company aims to enhance its operational efficiency and explore new strategic partnerships to strengthen its market position[18]. - The company plans to continue its market expansion and product development initiatives to drive future growth[18]. - The company aims to maintain a competitive salary structure aligned with its development goals and performance metrics[136]. - The company is focused on optimizing product offerings and enhancing project management to mitigate risks associated with increased market competition[134]. Cash Flow and Financial Position - The net cash flow from operating activities for the six months ended June 30, 2021, was (1,870,576) thousand HKD, a decrease from 2,245,276 thousand HKD in the same period of 2020, representing a decline of approximately 183.3%[20]. - The net cash used in investing activities increased to (3,480,125) thousand HKD for the six months ended June 30, 2021, compared to (2,985,853) thousand HKD in the same period of 2020, reflecting a rise of about 16.6%[20]. - The net cash flow from financing activities significantly increased to 6,933,908 thousand HKD for the six months ended June 30, 2021, compared to 1,401,104 thousand HKD in the same period of 2020, marking an increase of approximately 394.5%[20]. - The total cash and cash equivalents at the end of the period reached 10,813,085 thousand HKD, up from 9,451,591 thousand HKD at the end of the same period in 2020, representing an increase of approximately 14.4%[21]. - The company’s cash and cash equivalents rose to HKD 11,637,184, up from HKD 10,367,484, marking a 12.2% increase[13]. Segment Performance - The water resources segment reported revenue of HKD 8,021,854 thousand for the six months ended June 30, 2021, an increase of 43.6% from HKD 5,584,431 thousand in the same period of 2020[28]. - The property investment and development segment generated revenue of HKD 3,299,321 thousand, up 13.4% from HKD 2,907,864 thousand year-on-year[28]. - The department store operations segment's revenue increased to HKD 339,008 thousand, a rise of 54.1% compared to HKD 219,723 thousand in the previous year[28]. - The power generation segment achieved revenue of HKD 723,918 thousand, reflecting a 45.0% increase from HKD 499,389 thousand in the prior period[29]. - The hotel operations and management segment reported a revenue of HKD 179,222 thousand, which is a significant increase from HKD 102,064 thousand in the same period last year[29]. - The road and bridge segment's revenue reached HKD 1,088,436 thousand, a substantial increase of 530.5% compared to HKD 172,051 thousand in the previous year[29]. Acquisitions and Investments - The company has made significant investments in subsidiaries, with a total of HKD 2,335,561 allocated for mergers and acquisitions during the reporting period[18]. - The company acquired a 51% stake in Puning Yuehai Water Co., Ltd. for approximately HKD 612,175,000 in January 2021, expanding its presence in the water supply sector in China[73]. - In January 2021, the company also acquired a 60% stake in Jieyang Yuehai Water Co., Ltd. for about HKD 1,089,348,000, further enhancing its market share in water services[73]. - The acquisition of a 70% stake in Nanchang County Ganbo Water Co., Ltd. was completed in April 2021 for approximately HKD 124,650,000, continuing the company's strategy in the water resources market[73]. - The company plans to continue expanding its market share in China's water resources sector through strategic acquisitions[73]. Financial Liabilities and Borrowings - The company’s total liabilities increased to HKD 52,906,270 from HKD 39,644,581, representing a growth of 33.4%[14]. - The company reported a significant increase in bank and other borrowings, totaling 12,360,301 thousand HKD for the six months ended June 30, 2021, compared to 1,605,957 thousand HKD in the same period of 2020, an increase of approximately 669.5%[20]. - The total financial liabilities as of June 30, 2021, reached HKD 37,536,677,000, a significant increase from HKD 18,575,309,000 as of December 31, 2020[67]. - The company’s non-current bank loans secured amounted to HKD 10,836,270,000 as of June 30, 2021, compared to HKD 4,758,578,000 as of December 31, 2020[57]. - The company has committed guarantees of approximately HKD 12.62 billion related to mortgage loans for sold properties as of June 30, 2021[129]. Market Conditions and Future Outlook - The global economic recovery is expected to remain unbalanced in the second half of 2021 due to vaccine supply constraints and differences in fiscal support policies[138]. - The company aims to maintain a stable development strategy while optimizing asset allocation and resource configuration in water resource management, property, and infrastructure sectors[138]. - The company will actively seize potential development opportunities arising from the "Guangdong-Hong Kong-Macao Greater Bay Area" development strategy[138]. - The company is focusing on public-private partnership projects and related market acquisition opportunities to achieve new breakthroughs in profit growth[138].

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was HKD 9,485,522 thousand, an increase of 32.3% compared to HKD 7,164,763 thousand for the same period in 2019[8] - Profit attributable to owners of the company was HKD 2,369,219 thousand, a decrease of 12.2% from HKD 2,700,961 thousand in the previous year[8] - Basic and diluted earnings per share for the period were HKD 36.24 cents, down from HKD 41.31 cents in the prior year[8] - The company's profit for the six months ended June 30, 2020, was HKD 2,692,709,000, a decrease of 9.4% compared to HKD 2,970,348,000 for the same period in 2019[10] - Total comprehensive income for the period was HKD 1,835,739,000, down from HKD 2,960,935,000 in the previous year, reflecting a decline of 38.0%[10] Financial Position - Non-current assets totaled HKD 51,442,179,000 as of June 30, 2020, an increase from HKD 50,401,678,000 at the end of 2019[11] - Current assets increased to HKD 27,495,138,000 from HKD 26,022,816,000, representing a growth of 5.7%[12] - Total liabilities increased to HKD 14,770,943,000 from HKD 10,642,153,000, indicating a rise of 38.8%[12] - The net asset value of the company decreased to HKD 49,947,712,000 from HKD 50,692,993,000, a decline of 1.5%[12] - The company's equity attributable to owners was HKD 49,947,712,000, a decrease from HKD 50,692,993,000, indicating a decline of 1.5%[12] Cash Flow and Financing - The net cash inflow from operating activities for the six months ended June 30, 2020, was HKD 2,245,276, a decrease of 18% compared to HKD 2,739,502 for the same period in 2019[15] - The net cash outflow from investing activities was HKD 2,985,853, significantly higher than the outflow of HKD 764,694 in the previous year[15] - The net cash inflow from financing activities was HKD 1,401,104, compared to a net cash outflow of HKD 1,105,420 in the same period last year[15] - The total cash and cash equivalents at the end of the period increased to HKD 9,451,591 from HKD 7,748,398 at the end of June 30, 2019, representing a growth of 22%[15] Segment Performance - Revenue from external customers for the water resources segment reached HKD 5,584,431 thousand, an increase from HKD 4,379,338 thousand in the same period last year, representing a growth of approximately 27.4%[23] - The property investment and development segment generated revenue of HKD 2,907,864 thousand, up from HKD 1,146,177 thousand, marking a significant increase of about 153.1%[23] - Revenue from external customers in the power generation segment was HKD 499,389,000, down 7.9% from HKD 542,057,000 year-on-year[24] - The hotel operations segment reported revenue of HKD 102,064,000, a significant increase from HKD 330,530,000 in the previous year, indicating a recovery trend[24] Tax and Expenses - The company’s tax expense for the period was HKD 1,113,099 thousand, compared to HKD 905,692 thousand in the previous year, indicating an increase in tax liabilities[8] - Total administrative expenses decreased to HKD 708,356 thousand from HKD 785,616 thousand, reflecting a cost reduction strategy[8] - Financial expenses for the period amounted to HKD 141,206, slightly up from HKD 138,909 in the same period last year[33] Market and Strategic Outlook - The company plans to continue exploring market expansion opportunities and enhancing its product offerings in the upcoming periods[4] - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[27] - The company aims to leverage opportunities arising from the "Guangdong-Hong Kong-Macao Greater Bay Area" development strategy and will focus on public-private partnership projects and related market acquisition opportunities[117] COVID-19 Impact - The COVID-19 pandemic has negatively impacted various business segments, particularly in hotel operations and toll revenue due to government policies[106] - The company remains confident in its long-term stable development despite the temporary adverse effects of the COVID-19 pandemic[86] - The company will closely monitor the ongoing impact of COVID-19 on its operations and financial performance[82] Shareholder Information - The company declared an interim dividend of HKD 0.1764 per share, an increase from HKD 0.1730 per share in 2019, totaling HKD 1,153,272[38] - As of June 30, 2020, the major shareholder Guangdong Yuehai Holdings Group holds 3,693,453,546 shares, representing 56.49% of the company's total issued shares[123] - The Capital Group Companies, Inc. holds 328,700,000 shares, accounting for 5.03% of the company's total issued shares as of June 30, 2020[123] Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules during the six months ending June 30, 2020[125] - The company confirmed compliance with the standards set out in the code for directors' securities transactions for the six months ended June 30, 2020[126]