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告之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或倚賴該等內容而引致之任何損失承擔任 何責任。 ( 於香港註冊成立之有限公司 ) (股份代號：363) 須予披露的交易 戰略投資者配售協議 建議認購獲配份額 於二零二四年十一月十八日，上海躋沄（本公司之間接全資附屬公司）與平安基金訂立戰 略投資者配售協議，據此，上海躋沄（作為戰略投資者）同意按認購款項認購獲配份額。 《上市規則》涵義 上海躋沄將認購的獲配份額為發售份額的 15.8284%，即 158,284,000 基金份額。 代價及付款 由於有關建議認購事項的最高適用百分比率超過5%但低於25%，故根據《上市規則》第14 章，建議認購事項構成本公司的須予披露的交易，並須遵守申報及公告之規定，惟獲豁免 遵守股東批准的規定。 建議認購獲配份額 於二零二四年十一月十八日，上海躋沄（本公司之間接全資附屬公司）與平安基金訂立戰略 投資者配售協議，據此，上海躋沄（作為戰略投資者）同意按認購款項認購獲配份額。 戰略投資者配售協議 1 日期： 二零二四年十一月十八日 ...

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告之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示不會就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔 任何責任。 （於香港註冊成立之有限公司） （股份代號：363） 須予披露的交易 出售寧波市杭州灣大橋發展有限公司的股權 出售事項 於二零二四年十一月五日，上海躋沄（本公司間接全資附屬公司）、寧波交通、寧波大通 及嘉興公路（作為賣方）與買方及目標公司訂立股權轉讓協議。根據股權轉讓協議，該等 賣方各自有條件同意出售而買方有條件同意收購該等賣方於目標公司各自的股權，佔目標 公司股權合共 85.1894%，其中於目標公司的 23.0584%股權將由上海躋沄出售，代價不低 於人民幣 1,747,000,000 元及不超過人民幣 1,923,000,000 元。 於完成後，本集團將不再擁有目標公司任何權益。 《上市規則》的涵義 由於有關出售事項之一項或多項適用百分比率（按《上市規則》第 14.07 條計算）超過 5% 但全部低於 25%，故出售事項構成本公司於《上市規則》第 14章項下的須予披露交易。出 售事項須遵守《上市規則》 ...

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告之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表明不會就因本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔 任何責任。 ( 於香港註冊成立之有限公司） (股份代號：363) 有關 採購框架協議之 持續關連交易 採購框架協議 於二零二四年十月二十九日，本公司的間接非全資附屬公司永發印務與上藥股份訂立採購框 架協議，期限為一年，由二零二五年一月一日至二零二五年十二月三十一日止。根據採購框 架協議，永發集團任何成員公司可與上藥股份集團任何成員公司訂立個別協議，以提供藥品 印刷包裝材料，惟須遵守採購金額的年度上限。 《上市規則》涵義 於本公告日期，上實集團同為本公司及上藥股份的控股股東。因此，上藥股份為上實集團的 聯繫人及本公司的關連人士，而根據《上市規則》第 14A 章，訂立採購框架協議及其項下擬 進行交易構成本公司的持續關連交易。 由於根據《上市規則》第 14.07 條計算有關採購框架協議項下擬進行交易的採購金額年度上 限的最高適用百分比率超過 0.1%但低於 5%，故該等交易僅須遵守《上市規則》第 14A 章項 下的申報、公 ...

[Chairman's Statement](index=5&type=section&id=Chairman's%20Statement) The Chairman's Statement reviews the operating environment and performance for the first half of 2024, highlighting the Group's resilience and achievements amidst global challenges Key Performance Indicators | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Total Revenue | HKD 10.369 billion | -18.9% | | Net Profit | HKD 1.201 billion | -12.7% | | Interim Dividend | HKD 42 cents per share | Unchanged | Profit/Loss by Business Segment | Business Segment | H1 2024 Profit/Loss | YoY Change | | :--- | :--- | :--- | | Infrastructure and Environmental | Profit HKD 1.056 billion | -11.6% | | Real Estate | Loss HKD 131 million | Swing to loss | | Consumer Products | Profit HKD 320 million | +150.4% | | Healthcare | Profit HKD 64.77 million | -6.4% | - Looking ahead to the second half of the year, the Group will continue to face challenges from international uncertainties but also sees opportunities, focusing on reform, innovation, and risk control to enhance profitability and optimize its asset structure[23](index=23&type=chunk) [Business Review, Discussion and Analysis](index=10&type=section&id=Business%20Review%2C%20Discussion%20and%20Analysis) This section details the operational performance of the Group's core business segments in H1 2024, noting that the overall decline was mainly due to a high comparison base [Overall Performance](index=10&type=section&id=Overall%20Performance) For the six months ended June 30, 2024, the Group's turnover and profit attributable to shareholders decreased, primarily due to a significant one-off gain in the prior period Overall Financials | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Turnover | HKD 10.369 billion | -18.9% | | Profit Attributable to Shareholders | HKD 1.201 billion | -12.7% | [Infrastructure and Environmental Business](index=10&type=section&id=Infrastructure%20and%20Environmental%20Business) As the Group's primary profit source, this segment contributed HKD 1.056 billion, accounting for approximately 80.6% of the Group's net business profit - The Infrastructure and Environmental business recorded a profit of **HKD 1.056 billion**, a decrease of 11.6% year-on-year, representing **80.6% of the Group's net business profit**[28](index=28&type=chunk) [Toll Roads/Bridges](index=10&type=section&id=Toll%20Roads%2FBridges) Benefiting from post-pandemic travel recovery and natural traffic growth, the Group's toll roads and the Hangzhou Bay Bridge achieved stable growth in traffic and toll revenue Toll Road/Bridge Performance | Toll Road/Bridge | Net Profit Attributable to the Group | YoY Change | Toll Revenue | YoY Change | Traffic Volume (vehicles) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jing-Hu Expressway (Shanghai Section) | HKD 190 million | -0.7% | HKD 281 million | -3.2% | 20.61 million | +2.9% | | Hu-Kun Expressway (Shanghai Section) | HKD 279 million | -4.8% | HKD 445 million | -1.7% | 37.24 million | +3.8% | | Hu-Yu Expressway (Shanghai Section) | HKD 76 million | -15.1% | HKD 243 million | -6.4% | 17.85 million | -4.6% | | Hangzhou Bay Bridge | HKD 106 million | -4.7% | HKD 1.133 billion | -1.2% | 10.26 million | +5.7% | | **Total** | **HKD 651 million** | **-5.0%** | **HKD 2.102 billion** | **-2.2%** | **85.96 million** | **+1.9%** | [Water Services/Clean Energy](index=11&type=section&id=Water%20Services%2FClean%20Energy) This segment was impacted by reduced construction revenue, but operational businesses maintained stable growth, with a focus on strategic regional expansion - **SIIC Environment**: Revenue was **RMB 3.324 billion (-17.3%)** and net profit was **RMB 321 million (-14.8%)**, mainly due to lower construction revenue, while operating income grew 5.9%[32](index=32&type=chunk) - **General Water of China**: Revenue was **HKD 956 million (-10.3%)** with a net profit of **HKD 130 million (-26.5%)**, and it was named one of the "Top 10 Most Influential Enterprises in China's Water Industry" for the 21st consecutive year[34](index=34&type=chunk) - **Canvest Environmental**: Revenue was **HKD 2.130 billion (-28.5%)** and profit attributable to equity holders was **HKD 445 million (-27.1%)**, primarily due to reduced construction revenue as most projects are now operational; the company received a privatization offer[36](index=36&type=chunk) - **SusEnvironment**: Waste intake volume increased by **4.8%** year-on-year, and on-grid electricity generation grew by **3.3%**[37](index=37&type=chunk) [Healthcare Business](index=17&type=section&id=Healthcare%20Business) The healthcare business contributed a profit of HKD 64.77 million, a slight decrease of 6.4% year-on-year, accounting for about 5.0% of the Group's net business profit - Shanghai Pharma, in which the Group holds a 40% stake via a joint venture, recorded revenue of **RMB 139.658 billion (+5.2%)** and a net profit of **RMB 598 million**[43](index=43&type=chunk) [New Frontier Business](index=17&type=section&id=New%20Frontier%20Business) This business, mainly focused on photovoltaic power generation, saw a 6.8% decrease in on-grid electricity due to higher-than-expected power curtailment and equipment failures - Galaxy Energy's 15 photovoltaic power stations generated approximately **519 million kWh** of on-grid electricity, a **6.8% decrease** year-on-year, mainly due to higher-than-expected power curtailment and equipment failures at individual stations[44](index=44&type=chunk) [Real Estate Business](index=17&type=section&id=Real%20Estate%20Business) Affected by the sluggish mainland China property market and a high prior-year base, the real estate business swung from a profit to a loss of HKD 131 million - The real estate business recorded a **loss of HKD 131 million** compared to a profit in the prior period, mainly due to a significant one-off gain by SIIC Development last year[45](index=45&type=chunk) - **SIIC Development**: Reported operating revenue of **RMB 1.029 billion (-70.2%)** and a net loss of **RMB 177 million**, a swing from profit to loss year-on-year[46](index=46&type=chunk) - **SIIC Urban Development**: Turnover increased by **65.8% to HKD 2.981 billion**, but it recorded a loss attributable to shareholders of **HKD 232 million**, mainly due to a decline in the valuation of investment properties[47](index=47&type=chunk) [Consumer Products Business](index=23&type=section&id=Consumer%20Products%20Business) The consumer products business delivered a strong performance, with profit contribution reaching HKD 320 million, a significant increase of 150.4% year-on-year [Tobacco Business](index=23&type=section&id=Tobacco%20Business) Nanyang Tobacco capitalized on post-pandemic market opportunities, achieving double-digit growth in both revenue and profit through market expansion and product mix optimization Tobacco Business Performance | Indicator | H1 2024 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | HKD 1.093 billion | +68.7% | | Net Profit | HKD 281 million | +173.5% | | Sales Volume | Over 569,000 cases | +185.1% | [Printing Business](index=24&type=section&id=Printing%20Business) Wing Fat Printing benefited from a recovery in tobacco and liquor packaging, recording solid growth in both turnover and net profit through operational efficiencies Printing Business Performance | Indicator | H1 2024 | YoY Growth | | :--- | :--- | :--- | | Turnover | HKD 751 million | +3.7% | | Net Profit | HKD 47.66 million | +63.8% | [Financial Review](index=25&type=section&id=Financial%20Review) This chapter provides an in-depth financial analysis of the Group's H1 2024 performance, covering key metrics, segmental contributions, and financial risk management Key Financial Data | Key Financial Data | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | HKD 174.887 billion | HKD 179.312 billion | | Equity Attributable to Owners | HKD 46.280 billion | HKD 46.603 billion | | Net Asset Value Per Share | HKD 42.57 | HKD 42.86 | | Net Gearing Ratio | 71.54% | 66.30% | Profit Contribution by Business (HKD million) | Business Segment | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Infrastructure and Environmental | 1,056.3 | 1,194.7 | -11.6% | | Real Estate | -130.7 | 101.5 | N/A | | Consumer Products | 320.2 | 127.9 | +150.4% | | Healthcare | 64.8 | 69.2 | -6.4% | - The Board declared an interim dividend of **HKD 42 cents per share**, unchanged from the same period last year, representing an interim dividend payout ratio of 38.0%[73](index=73&type=chunk) - As of June 30, 2024, the Group's total loans amounted to approximately **HKD 60.180 billion**, with sufficient liquidity from bank balances and short-term investments of about HKD 27.284 billion[77](index=77&type=chunk)[82](index=82&type=chunk) [Condensed Consolidated Financial Statements](index=33&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, as reviewed by the independent auditor, Deloitte [Review Report on the Condensed Consolidated Financial Statements](index=33&type=section&id=Review%20Report%20on%20the%20Condensed%20Consolidated%20Financial%20Statements) The independent auditor, Deloitte Touche Tohmatsu, has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410 - **Review Conclusion**: Nothing has come to the auditor's attention that causes them to believe the financial statements are not prepared in all material respects in accordance with HKAS 34[88](index=88&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the Group's revenue, costs, expenses, and taxes for the period, resulting in the profit for the period and earnings per share Statement of Profit or Loss Highlights | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Turnover | 10,369,131 | 12,791,180 | | Gross Profit | 3,307,543 | 4,270,016 | | Profit Before Tax | 2,059,388 | 2,930,531 | | Profit for the Period | 1,408,494 | 1,843,908 | | Profit Attributable to Owners of the Company | 1,200,896 | 1,375,697 | | Basic Earnings Per Share (HKD) | 1.105 | 1.265 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement builds on the profit for the period by including other comprehensive income items, such as foreign currency translation differences [Condensed Consolidated Statement of Financial Position](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's financial health by presenting its assets, liabilities, and equity at the end of the reporting period [Condensed Consolidated Statement of Changes in Equity](index=38&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the components of equity attributable to the company's owners and non-controlling interests during the period [Condensed Consolidated Statement of Cash Flows](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the inflows and outflows of cash and cash equivalents from operating, investing, and financing activities during the period [Notes to the Condensed Consolidated Financial Statements](index=42&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed supplementary information for the financial statements, including the basis of preparation, accounting policies, and segmental information - The financial statements are prepared in accordance with **Hong Kong Accounting Standard (HKAS) 34** "Interim Financial Reporting" with no material impact from new HKFRS amendments[101](index=101&type=chunk)[104](index=104&type=chunk) - **Interim Dividend**: The Board resolved to declare a 2024 interim cash dividend of **HKD 42 cents per share**, consistent with the same period in 2023[119](index=119&type=chunk) - **Financial Guarantees**: The Group provided bank credit guarantees totaling approximately **HKD 3.644 billion** for property buyers, associates, and joint ventures[129](index=129&type=chunk) - **Related Party Transactions**: Disclosed transactions with fellow subsidiaries and related parties, and noted that a change of control in the parent company could trigger early repayment clauses for bank credit of approximately **HKD 6.9 billion**[135](index=135&type=chunk) [Other Information](index=55&type=section&id=Other%20Information) This section provides additional corporate information, including major shareholder interests, director changes, employee policies, and corporate governance compliance - **Major Shareholder**: As of June 30, 2024, Shanghai Industrial Investment (Holdings) Company Limited (SIIC) was deemed to hold **686,654,748 shares**, representing approximately **63.16%** of the issued shares[141](index=141&type=chunk) - **Employees**: As of June 30, 2024, the Group had **18,873 employees**[144](index=144&type=chunk) - **Purchase of Securities**: During the period, subsidiary SIIC Urban Development repurchased and cancelled **9,368,000** of its own shares on the Stock Exchange[146](index=146&type=chunk) - **Corporate Governance**: The Company complied with all code provisions of the Corporate Governance Code during the reporting period, and directors adhered to the standard code for securities transactions[145](index=145&type=chunk)

Financial Performance - The unaudited revenue for the first half of 2024 was HKD 10.369 billion, a decrease of 18.9% compared to the same period last year[4]. - Shareholders' profit attributable to the company was HKD 1.201 billion, down 12.7% year-on-year, primarily due to a significant one-time gain recorded by Shanghai Industrial Development Co., Ltd. in the previous year[4]. - The company reported a profit of HKD 1,408,494, a decrease of 23.5% compared to HKD 1,843,908 for the same period last year[34]. - The company recorded a revenue of HKD 751 million, an increase of 3.7% compared to the same period last year, primarily driven by growth in the tobacco packaging and molding businesses[25]. - The company achieved a pre-tax profit of HKD 2,059.39 million, down from HKD 2,930.53 million year-on-year[33]. - The earnings per share (EPS) for the period was HKD 1.105, a decrease from HKD 1.265 in the same period last year[33]. - The overall gross profit margin decreased by 1.5 percentage points compared to the first half of 2023, primarily due to a lower proportion of high-margin real estate projects[58]. Infrastructure and Environmental Business - The infrastructure and environmental business generated a profit of HKD 1.056 billion, impacted by a depreciation in the RMB, representing a decline of 11.6% year-on-year and accounting for approximately 80.6% of the group's net profit[5]. - Net profit from the infrastructure and environmental business was approximately HKD 1.06 billion, accounting for 80.6% of total net profit, down 11.6% year-on-year[56]. - The operating profit for the infrastructure and environmental segment was HKD 3,394,030,000, compared to HKD 2,541,086,000, reflecting an increase of about 33.7%[45]. Toll Roads and Traffic - The total traffic volume and toll revenue from the group's toll roads and bridges showed stable growth, benefiting from increased travel during the Spring Festival and natural growth in traffic flow[6]. - The group's toll roads reported a total net profit of HKD 0.651 billion, a decrease of 5.0% year-on-year, with total toll revenue of HKD 2.102 billion, down 2.2%[7]. - The Shanghai-Nanjing Expressway (Shanghai section) generated a net profit of HKD 0.190 billion, with toll revenue of HKD 0.281 billion, reflecting a decrease of 0.7% in net profit year-on-year[7]. Real Estate Business - The real estate business reported a loss of HKD 131 million, a shift from profit in the same period last year, accounting for negative 10.0% of the group's net profit, primarily due to a significant one-time gain recorded in the previous year[18]. - Shanghai Shihua Development's revenue for the period was RMB 1.029 billion, a year-on-year decline of 70.2%, with a net loss of RMB 177 million, as housing delivery revenue significantly decreased[19]. - The signed contract amount for real estate projects was RMB 240 million, with a signed area of approximately 29,000 square meters, including projects in Shanghai and Quanzhou[20]. - Shanghai Shihua City Development recorded a revenue of HKD 2.981 billion, a year-on-year increase of 65.8%, while the signed contract amount was RMB 2.284 billion, a decrease of 54.4%[21]. Consumer Goods Segment - The consumer goods segment contributed a profit of HKD 320 million, a year-on-year increase of 150.4%, accounting for approximately 24.4% of the group's net profit[22]. - Nanyang Tobacco achieved a revenue of HKD 1.093 billion, a year-on-year growth of 68.7%, with a net profit of HKD 281 million, an increase of 173.5%[23]. - The sales volume for Nanyang Tobacco exceeded 569,000 boxes, a year-on-year increase of 185.1%, reflecting successful market expansion efforts[23]. - The company plans to accelerate the cultivation of innovative tobacco markets and the launch of new products in the second half of the year, focusing on high-quality development and digital application capabilities[24]. Project Development and Expansion - The company plans to continue expanding its water and solid waste business, focusing on key project construction and exploring new investment opportunities in other environmental sectors[8]. - The company secured new projects in Hubei, Shandong, and Guangxi with a total design capacity of 285,000 tons per day, including three significant wastewater treatment projects[9]. - New projects signed during the period involved an investment of approximately RMB 385 million, with a total water treatment capacity of 155,000 tons per day[12]. Financial Structure and Management - The financing structure adjustment has been largely completed, replacing high-interest foreign loans with low-cost domestic RMB fixed-rate loans, optimizing financial costs and risks[9]. - The company will continue to optimize its asset structure and enhance risk management to improve profitability amid ongoing economic uncertainties[26]. - The company plans to enhance market development capabilities and focus on value creation, leveraging management efficiency and technological innovation to support sustainable growth in the green packaging market[26]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.42 per share, consistent with the previous year, to be paid on October 10, 2024[27]. - The interim dividend declared is HKD 0.42 per share, consistent with the interim dividend of HKD 0.42 per share from the previous year, with a payout ratio of 38.0%[60]. Asset and Liability Management - Non-current assets, including investment properties, totaled HKD 101,834,318, down from HKD 104,144,502 at the end of 2023, reflecting a decrease of 2.2%[35]. - Current assets decreased to HKD 73,052,356 from HKD 74,926,581, a decline of 2.5%[35]. - Current liabilities decreased to HKD 41,928,820 from HKD 47,424,656, showing a reduction of 11.5%[36]. - The company's total equity stood at HKD 76,381,706, down from HKD 77,460,103, a decrease of 1.4%[36]. - The company's total liabilities decreased to HKD 56,576,148 from HKD 54,426,853, reflecting an increase of 3.9%[36].

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - Shanghai Industrial Holdings (the company) has four core business segments: infrastructure and environmental protection, healthcare, real estate, and consumer products, which are stable and solid [1] - The company has shown a steady growth in revenue and net profit over the years, with a compound annual growth rate of 8.6% and 5.4% respectively [2] - The company is actively expanding its business through acquisitions and new projects, which are expected to contribute to future profitability [6] Business Overview - **Infrastructure and Environmental Protection**: This segment includes toll roads, bridges, water services, and clean energy. It accounted for 31.8% of total revenue and 64.2% of net profit in 2023 [1] - **Healthcare**: The company holds a 50% stake in Shanghai Shanshi Yangtze River Delta Ecological Development Co., which acquired a 40% stake in Shanghai Pharmaceuticals. This segment contributed 2.2% to net profit in 2023 [1] - **Real Estate**: This segment includes property development and management, contributing 58.4% to total revenue and 23.2% to net profit in 2023 [1] - **Consumer Products**: This segment includes Nanyang Tobacco and Yongfa Printing, contributing 9.8% to total revenue and 10.4% to net profit in 2023 [1] Financial Performance - In the fiscal year 2023, the company achieved revenue of 32.7 billion RMB, a year-on-year increase of 4.3%, and net profit of 3.61 billion RMB, up 42.5% year-on-year [2] - The company maintains a healthy financial structure with a debt-to-asset ratio of 56.8% and a stable dividend payout ratio around 40% [4] - The company has a cash balance of approximately 25 billion HKD, representing about 14% of total assets [4] Future Outlook - The company is expected to benefit from the recovery of its business post-pandemic, with significant growth in its real estate segment and new projects in wastewater treatment and tobacco production [6] - The diversified business model and strong cash flow provide resilience against economic cycles, with a projected dividend yield of 8% [6]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported audited revenue of HKD 32.698 billion, an increase of 4.3% compared to the previous year[17]. - The audited net profit for the year was HKD 3.424 billion, representing a year-on-year increase of 48.0%[17]. - The total revenue for the year 2023 was HKD 7.954 billion, a decrease of 27.8% compared to the previous year[53]. - Shareholders' profit for the year was HKD 495 million, an increase of 21.6% year-on-year, primarily due to the delivery of high-margin residential properties[53]. - The group’s audited revenue for the year ended December 31, 2023, was HKD 32.698 billion, an increase of 4.3% compared to the previous year[32]. - Profit attributable to the company's owners reached HKD 3,423,695, representing a significant increase of 48.0% from HKD 2,313,924 in the previous year[69]. - Basic earnings per share rose to HKD 3.149, up 48.0% from HKD 2.128 in 2022[67]. - Gross profit for 2023 was HKD 12,789,693 thousand, up from HKD 9,030,839 thousand in 2022, indicating a significant increase of 41.5%[200]. - Profit before tax for 2023 was HKD 8,740,567 thousand, a substantial increase from HKD 5,511,078 thousand in 2022, marking a growth of 58.5%[200]. - Annual profit attributable to the company’s owners was HKD 3,423,695 thousand in 2023, compared to HKD 2,313,924 thousand in 2022, representing a growth of 47.9%[200]. Dividends - The board proposed a final dividend of HKD 0.52 per share for 2023, up from HKD 0.50 per share in 2022, resulting in a total annual dividend of HKD 0.94 per share[14]. - The total dividend payout ratio for the year reached 30%[17]. - The total dividend proposed for 2023 is HKD 0.94 per share, up from HKD 0.92 in 2022, with a payout ratio of 30%[78]. - The board of directors has the discretion to determine the dividend payout ratio, but there is no guarantee of dividend distribution[135]. Business Segments Performance - The infrastructure and environmental business recorded a profit of HKD 2.321 billion, an increase of 20.5% year-on-year, driven by a significant rise in traffic and revenue from toll roads as pandemic restrictions eased[18]. - The real estate business achieved a profit of HKD 839 million, a substantial increase of 180.1% year-on-year, despite a 27.8% decline in revenue to HKD 7.954 billion[18]. - The health business generated a profit of HKD 79.71 million during the year[18]. - The total revenue for the environmental segment was RMB 7.573 billion, with a net profit of RMB 604 million, reflecting a year-on-year decline of 8.8% and 22.6% respectively[19]. - The consumer goods business showed signs of recovery with a net profit of HKD 375 million, reflecting a year-on-year increase of 20.8%[18]. Strategic Initiatives - The company emphasized strengthening internal controls and deepening the integration of production and finance to ensure stable operations and development of core businesses[17]. - The company is committed to industrial innovation and overcoming challenges to achieve satisfactory business and profit performance[17]. - The company plans to enhance its solid waste business through a strategic investment in Guangdong Environmental Protection, acquiring exchangeable bonds worth approximately HKD 1.637 billion, potentially increasing its stake to 29.48%[21]. - The company is actively expanding its green energy projects, with solar power assets reaching 740 MW and generating approximately 1.081 billion kWh of electricity, despite a 4.38% decrease due to adverse weather conditions[22]. - The company is focusing on major projects, including the development of a 480-meter high building in Shanghai, which will become a new landmark in the North Bund area[25]. Market Conditions - The economic situation in mainland China and Hong Kong has shown continuous improvement, despite ongoing international geopolitical tensions[17]. - The company is focusing on expanding domestic demand and optimizing structure to mitigate risks in a challenging international environment[51]. Governance and Management - The board of directors is responsible for overseeing the group's long-term business strategies and governance policies[95]. - The company has established a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[97]. - The company has appointed a new executive director, Shu Dong, on June 5, 2023, following the resignation of Xu Bo due to age-related reasons[99]. - The company provides liability insurance for its directors and senior management to cover potential legal risks associated with their duties[101]. - The company has established a whistleblowing system to allow confidential reporting of misconduct by employees and business partners[125]. Risk Management - The group has established a comprehensive risk management policy to address currency, interest rate, price, and credit risks[87][88][89][90]. - The company maintains a risk management and internal control system, with no significant discrepancies found across subsidiaries[124]. Corporate Social Responsibility - The company has committed to a transformation towards ESG (Environmental, Social, and Governance) values, emphasizing sustainable development[136]. - The group made charitable donations totaling HKD 2,056,000 during the year[185]. Future Outlook - The company plans to increase investments in energy storage, hydrogen energy, and offshore wind power projects[49]. - The company aims to enhance financial control and efficiency to ensure stable operational performance amid market fluctuations[51].

Financial Performance - The audited revenue for the year ended December 31, 2023, was HKD 32.698 billion, an increase of 4.3% year-on-year, with a net profit of HKD 3.424 billion, up 48.0% year-on-year[3]. - The total dividend for the year was HKD 0.94 per share, with a payout ratio of 30%[3]. - The company reported a total comprehensive income of HKD 1,886,077, a significant improvement from a loss of HKD 2,564,371 in 2022[48]. - Net profit attributable to shareholders for 2023 was HKD 3,423.7 million, up from HKD 2,313.9 million in 2022, reflecting significant growth in profitability[72]. - The company proposed a final dividend of HKD 0.52 per share for 2023, an increase from HKD 0.50 per share in 2022, totaling approximately HKD 565.4 million[71]. Business Segments Performance - The infrastructure and environmental business reported a profit of HKD 2.321 billion, a 20.5% increase, contributing approximately 64.2% to the group's net profit[4]. - The health sector reported a profit of HKD 79.71 million, accounting for approximately 2.2% of the group's net profit, with Shanghai Pharmaceutical Group's revenue increasing by 9.9% to RMB 255.173 billion[19]. - The real estate business recorded a profit contribution of HKD 839 million, an increase of 180.1% year-on-year, accounting for approximately 23.2% of the group's net profit[21]. - The consumer goods business contributed a profit of HKD 375 million, up 20.8% year-on-year, accounting for approximately 10.4% of the group's net profit[26]. Revenue and Profit Trends - The total traffic volume for the group's toll roads and bridges increased significantly, with the total toll revenue reaching HKD 4.41 billion, a 30.1% increase year-on-year[7]. - The Shanghai-Hangzhou Expressway (Shanghai section) saw a net profit of HKD 442 million, up 92.6%, with toll revenue of HKD 581 million, an increase of 45.3%[7]. - Zhonghuan Water achieved a revenue of HKD 2.076 billion in 2023, a decrease of 3.3% year-on-year, while net profit increased by 6.8% to HKD 265 million[12]. - Guangdong Environmental Protection's total revenue decreased by 39.6% to HKD 4.98 billion, primarily due to a 76.7% drop in construction revenue from completed waste-to-energy projects[15]. - The real estate segment reported an operating profit of HKD 5,516,630, up 61.6% from HKD 3,416,931 in the previous year[64]. Investments and Projects - The group added 5 new high-quality sewage treatment projects in Guangxi, Heilongjiang, and Macau, with a total designed treatment capacity of nearly 200,000 tons per day[10]. - In 2023, Zhonghuan Water signed 11 new projects with an investment of approximately RMB 524 million, involving a water treatment scale of 512,700 tons/day and a pipeline length of 78.72 kilometers[13]. - Kangheng Environment secured 8 new waste incineration projects in 2023, with a total scale of 5,650 tons/day, and is advancing 22 waste-to-energy projects[18]. Financial Position and Assets - Non-current assets totaled HKD 104,144,502, an increase from HKD 100,347,120 in 2022[50]. - The company's total equity increased to HKD 77,460,103 from HKD 76,793,911, reflecting a growth of 0.9%[52]. - The total assets of the group as of December 31, 2023, amounted to HKD 179,311,612, a decrease from HKD 193,933,752 in 2022[66]. - The book value of properties held for sale increased to HKD 12.92 billion as of December 31, 2023, from HKD 6.81 billion as of December 31, 2022[86]. Market and Strategic Focus - The company is focused on optimizing its financing structure to mitigate the impact of increased financial costs due to international market changes[9]. - The group has established a new operating segment called "Health and Wellness" to reflect its future development strategy, alongside existing segments such as Infrastructure and Environmental, Real Estate, and Consumer Products[62]. - The environmental protection sector is expected to expand due to favorable policies, with the company aiming to maintain its leading position in China's water and environmental industry[31]. - The company will closely monitor industry policies and market trends in the real estate sector to optimize its strategic layout and enhance operational efficiency[31].

Financial Performance - For the first half of 2023, the total revenue of the company was HKD 12.791 billion, a decrease of 16.0% year-on-year[28]. - The net profit for the same period was HKD 1.376 billion, an increase of 24.6% year-on-year, primarily driven by the recovery in toll road business and improved performance in real estate[28]. - The company's consumer goods segment reported a net profit of HKD 128 million, down 45.7% year-on-year due to a weakening global economy and increased competition[29]. - The group's unaudited revenue for the six months ended June 30, 2023, was HKD 12.791 billion, a decrease of 16.0% compared to the same period last year[41]. - Shareholders' profit for the same period was HKD 1.376 billion, an increase of 24.6%, primarily due to significant recovery in toll road revenue and traffic volume[41]. - The company recorded a revenue of HKD 1.798 billion for the first half of 2023, a decrease of 73.6% year-on-year, with a shareholder loss of HKD 303 million[63]. - The company reported a net profit attributable to shareholders of HKD 1,375,697, a decrease of 12.4% from HKD 1,103,688 in the first half of 2022[124]. Segment Performance - The toll road business saw a significant increase in traffic volume and toll revenue due to the easing of pandemic control measures in mainland China[28]. - The infrastructure and environmental business recorded a profit of HKD 1.195 billion, up 21.4% year-on-year[28]. - The real estate segment achieved a profit of HKD 102 million, a substantial increase of 155.6% year-on-year[28]. - The real estate business's revenue for the period was RMB 3.449 billion, a year-on-year increase of 149.6%[28]. - The health sector reported a profit of HKD 69.16 million, contributing approximately 4.6% to the group's net profit, with the acquisition of a 40% stake in Shanghai Pharmaceuticals expected to generate new profit contributions[34]. - The infrastructure and environmental segment contributed HKD 1.194 billion to net profit, a 21.4% increase year-on-year, accounting for 80.0% of total business profit[81]. - The consumer goods segment contributed HKD 128 million to the group's net profit, a decrease of 45.7% year-on-year, accounting for approximately 8.6% of total net profit[72]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.42 per share, consistent with the previous year[25]. - The interim dividend remained unchanged at 42 HK cents per share, with a payout ratio of 33.2%[75]. - The interim dividend declared is HKD 0.42 per share, consistent with the previous year's interim dividend[131]. Strategic Initiatives - The company is focusing on developing key water projects and accelerating the construction of solid waste benchmark projects in the Yangtze River Delta region[28]. - The company is actively expanding its core customer base in the packaging business under the "1+1+1" strategy[29]. - The group plans to enhance its water services market development and pursue high-standard environmental projects in line with national strategies[47]. - The group aims to accelerate digital construction and low-carbon development in its environmental business, aligning with China's carbon neutrality goals[41]. - The company aims to leverage technological innovation to expand its eco-friendly packaging product applications and tap into new market demands[74]. Market Conditions and Challenges - The company's consumer goods segment reported a net profit of HKD 128 million, down 45.7% year-on-year due to a weakening global economy and increased competition[29]. - Nanyang Tobacco faced challenges from inventory accumulation in overseas markets and declining consumer sentiment domestically, implementing strategies to manage inventory and enhance market presence[36]. - The company is focusing on inventory reduction strategies to address challenges in the domestic market, where consumer sentiment is declining[73]. Asset and Liability Management - The company’s total assets decreased by 8.0% to HKD 178.34 billion from HKD 193.93 billion[76]. - The net debt ratio increased to 64.90% from 61.25% year-on-year[76]. - The total loans, including bank loans and other loans, amount to approximately HKD 57.533 billion as of June 30, 2023, down from HKD 58.768 billion at the end of 2022, with 79.2% being unsecured credit facilities[90]. - The group has pledged assets with a total book value of HKD 11.085 billion for bank credit facilities, down from HKD 11.499 billion at the end of 2022[92]. Future Outlook - The company plans to focus on collaborative and overseas business development, including heat supply and sludge disposal projects[53]. - The company has plans for market expansion and new product development, focusing on enhancing its competitive edge in the industry[110]. - The company aims to enhance internal management and accelerate cash flow recovery while pushing forward with existing projects[61]. Employee and Management Information - The group had a total of 19,433 employees as of June 30, 2023, with compensation determined based on performance and market trends[162]. - The total remuneration for directors and key management personnel was HKD 5,986 thousand for the six months ended June 30, 2023, down from HKD 10,872 thousand, a decrease of 45.5%[152].

Financial Performance - For the six months ended June 30, 2023, the group's total revenue was HKD 12.791 billion, a decrease of 16.0% year-on-year, while net profit increased by 24.6% to HKD 1.376 billion, driven by a recovery in toll road operations and improved real estate performance [4]. - The infrastructure and environmental business reported a profit of HKD 1.195 billion, up 21.4% year-on-year, accounting for approximately 80.0% of the group's net profit, primarily due to increased traffic volume and toll revenue from toll roads [5]. - The total traffic volume and toll revenue from the group's three toll roads and Hangzhou Bay Bridge significantly exceeded expectations, with a year-on-year increase in traffic volume of 86.9% [6]. - The group's share of net profit from the Shanghai-Hangzhou-Ningbo Expressway (Shanghai section) was HKD 192 million, up 105.8% year-on-year, with toll revenue of HKD 291 million, an increase of 92.8% [7]. - The revenue for China Water Affairs Group decreased by 6.9% year-on-year to HKD 1.065 billion, with net profit down 2.3% to HKD 178 million [11]. - Yuefeng Environmental's revenue fell by 27.5% year-on-year to HKD 2.981 billion, primarily due to a decrease in construction revenue from completed waste-to-energy projects [12]. - Shanghai Kangheng Environment achieved a revenue of RMB 3.984 billion, up 10.06% year-on-year, with net profit rising by 0.47% to RMB 633 million [13]. - The consumer goods business contributed a profit of HKD 128 million, a year-on-year decrease of 45.7%, accounting for about 8.6% of the group's net profit [21]. - Nanyang Tobacco reported a revenue of HKD 648 million and a net profit of HKD 103 million, down 24.7% and 46.4% year-on-year, respectively [22]. - Yongfa Printing recorded a revenue of HKD 724 million, a year-on-year decrease of 17.2%, with a net profit of HKD 29.1 million, down 27.1% year-on-year [24]. Real Estate Performance - The real estate business recorded a profit contribution of HKD 102 million in the first half of 2023, a year-on-year increase of 155.6%, accounting for approximately 6.8% of the group's net profit [17]. - Shanghai Industrial Development achieved a revenue of RMB 3.449 billion, a year-on-year increase of 149.6%, with a net profit of RMB 397 million, turning from loss to profit [18]. - The signed contract amount for real estate projects reached RMB 441 million, with a signed construction area of 8,538 square meters [18]. - Shanghai Industrial City Development reported a revenue of HKD 1.798 billion, a year-on-year decrease of 73.6%, with a shareholder loss of HKD 303 million [20]. - The signed contract amount for Shanghai Industrial City Development was RMB 5.010 billion, a year-on-year increase of 9.7%, covering a construction area of approximately 169,000 square meters [20]. - The company is focusing on optimizing operations and enhancing asset management efficiency in the real estate sector [18]. - The real estate segment will adjust its operational strategies in response to industry policy changes, aiming to strengthen sales and cash flow management [25]. Environmental and Infrastructure Development - The group plans to continue expanding its water services market and develop more high-standard environmental projects in line with national strategies [8]. - The operating and financial income from service concession arrangements increased by 12.1% year-on-year, primarily due to the commencement of operations at the Shanghai Baoshan Renewable Energy Utilization Center and an increase in average sewage and water prices [10]. - The gross profit for the period grew by 15.5% year-on-year, benefiting from new service concession arrangements, with a consolidated gross margin improvement of approximately 2.0% [10]. - The sewage treatment volume increased by 2.7% year-on-year to 1,239,585,000 tons, while the water supply volume also rose by 2.7% to 155,761,000 tons [10]. - The average sewage treatment fee was RMB 1.80 per ton, up 4.5% year-on-year, and the average water supply price increased by 1.1% to RMB 2.50 per ton [10]. - New projects included three sewage treatment projects in Macau with a total design capacity of 69,000 tons/day, 685 tons/day, and 20,000 tons/day [10]. - The company actively responded to national policies and continued to deepen its strategic layout in the Yangtze River Economic Belt and the Guangdong-Hong Kong-Macao Greater Bay Area [10]. Shareholder Returns and Financial Management - The company declared an interim dividend of HKD 0.42 per share, payable on October 12, 2023 [27]. - The profit attributable to the company's owners for the six months ended June 30, 2023, was HKD 1,375,697, up from HKD 1,103,688, representing a growth of 24.7% [33]. - Basic and diluted earnings per share increased to HKD 1.265 from HKD 1.015, marking a rise of 24.6% [33]. - The company declared an interim cash dividend of HKD 0.42 per share for the 2023 mid-year, consistent with the previous year's dividend [54]. - The company’s equity attributable to shareholders as of June 30, 2023, was HKD 44,548,440, reflecting the net profit recorded during the period after deducting dividends paid [64]. Asset and Liability Management - As of June 30, 2023, total non-current assets amounted to HKD 98,989,701, a decrease from HKD 100,347,120 as of December 31, 2022, representing a decline of approximately 1.36% [35]. - Current assets, specifically inventory, decreased to HKD 36,532,628 from HKD 40,666,892, reflecting a reduction of about 10.3% [35]. - Total current liabilities decreased to HKD 53,250,000 from HKD 56,000,000, indicating a decrease of approximately 4.9% [36]. - The net value of current assets is HKD 26,750,316, down from HKD 28,190,754, a decline of about 5.1% [37]. - Total equity as of June 30, 2023, was HKD 74,179,628, compared to HKD 76,793,911 as of December 31, 2022, representing a decrease of approximately 3.4% [37]. - The company reported a decrease in cash and cash equivalents to HKD 27,984,657 from HKD 28,870,193, a decline of about 3.1% [35]. - The company has established a new operating segment called "Big Health" to reflect future development strategies [43]. - The company has rebranded its infrastructure segment to "Infrastructure and Environmental Protection" to better align with its business activities [43]. - The company is focusing on investments in toll road projects and water-related businesses, as well as property development and hotel operations [45]. - The company has applied new Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the financial position and performance for the current and prior periods [42]. - The total assets for the infrastructure and environmental segment amounted to HKD 66,258,027, while total liabilities were HKD 32,705,806 as of June 30, 2023 [49]. - The company reported a decrease in tax expenses, with total tax for the period at HKD 1,006,950 compared to HKD 892,678 in the previous year [51]. - The company’s financial expenses totaled HKD 1,172,635, reflecting a decrease from the previous period [47]. - The company’s investment in new technologies and market expansion strategies is expected to drive future growth, although specific figures were not disclosed in the call [48]. - The group held bank balances and short-term investments of HKD 28,625,400,000 as of June 30, 2023, down from HKD 30,880,538,000 on December 31, 2022 [70]. - The group has sufficient internal resources and/or access to borrowing markets to cover capital expenditures [69]. - The interest coverage ratio remains robust, indicating strong liquidity [70].