发行人和承销机构于2025年7月24日在网下向投资者进行了簿记建档。根据簿记建档结果，经发行人和 主承销商充分协商和审慎判断，最终确定本期续发行债券(债券简称：水务YK02，代码：242960)发行 价格确定为100.67元。 北控水务集团有限公司2025年面向专业投资者公开发行科技创新可续期公司债券(第一期)(品种二)(续发 行)(以下简称"本期续发行债券")为已发行的北控水务集团有限公司2025年面向专业投资者公开发行科技 创新可续期公司债券(第一期)(品种二)(以下简称"存量债券")的续发行债券。本期续发行债券简称为水务 YK02，债券代码为242960，基础期限为5年，以每5个计息年度为1个重新定价周期(起息日为2025年5月 8日)，债券面值为人民币100元，首个周期的票面利率为2.42%。本期续发行债券的以上要素和存量债券 一致。本期续发行债券的发行规模为不超过人民币8亿元(含8亿元)。 发行人将按上述发行价格于2025年7月25日-2025年7月28日面向投资者网下发行。 智通财经APP讯，北控水务集团(00371)发布公告，北控水务集团有限公司(以下简称"发行人")面向专业 机构投资者公开发行 ...

Company Overview - Beijing Enterprises Water Group was established in 2008, focusing on wastewater and reclaimed water treatment, water supply services, water environment governance construction, technical and consulting services, equipment sales, and urban resource services [1] - The company is transitioning to a light asset operation model, with engineering business continuously shrinking, leading to a projected gross profit margin of 6.4% by 2024 [1] - As of the end of 2024, Beijing Holdings will hold 41.1% of the company's shares, with the actual controller being the Beijing State-owned Assets Supervision and Administration Commission [1] Financial Highlights - Capital expenditure is expected to decrease to 4.11 billion HKD in 2024, a year-on-year reduction of 2.89 billion HKD, while maintaining stable dividends with a dividend per share of no less than 0.157 HKD since 2021, resulting in a projected dividend yield of 6.22% for 2024 [1] - The company has experienced profit fluctuations over the past three years due to the sale of joint ventures and impairment provisions, but the increase in operational proportion is expected to enhance future earnings stability [3] Industry Analysis - The water supply and wastewater treatment sectors are projected to have a compound annual growth rate (CAGR) of 0.37% and 1.2% from 2025 to 2027, respectively [2] - The competitive landscape shows a trend of regional monopolies coexisting with national leaders, with the company holding a market share of 1.8% in water supply and 8.2% in wastewater treatment as of 2023 [2] - The company has reduced its uninvested capacity since 2022, with operational capacity expected to reach 33.84 million tons per day by the end of 2024, resulting in a capacity elasticity of 29.2% [2] Pricing and Revenue - Since November 2023, some cities have increased the basic water price for residential use by an average of 0.36 HKD per ton, reflecting a 21.3% increase, which may benefit the company's relatively stable water pricing [2] - The company's revenue from water environment governance construction services is projected to decrease, with the share of profit from comprehensive governance projects and BOT water projects expected to drop to 7.8% and 4.6%, respectively, by 2024 [2] Profit Forecast - The company is expected to achieve a net profit attributable to shareholders of 1.66 billion HKD, 1.70 billion HKD, and 1.71 billion HKD for the years 2025 to 2027, with a projected dividend growth of 3% from 2024 [3] - The anticipated dividend yields for 2025, 2026, and 2027 are 6.4%, 6.6%, and 6.8%, respectively, supporting a "buy" rating for the stock [3]

Investment Rating - The report assigns a "Buy" rating to the company [11]. Core Viewpoints - Beikong Water Group is a national leader in water services with stable dividend guarantees. The company is expected to achieve steady growth in its water supply and sewage treatment business as capacity utilization increases. The pressure on growth in the water environment management construction service has gradually been released. The company has turned positive in free cash flow since 2022, and the dividend per share has not been less than HKD 0.157 since 2021, indicating a strong dividend capability [4][11]. Summary by Sections Company Overview - Beikong Water Group, established in 2008, operates in sewage and reclaimed water treatment, water supply services, water environment management construction, technical and consulting services, equipment sales, and urban resource services. The company is actively expanding its light asset operation model, with engineering business continuously shrinking, leading to a decrease in gross profit contribution [7][19]. Shareholding Structure - As of the end of 2024, Beijing Enterprises holds 41.1% of the company's shares, with the actual controller being the Beijing State-owned Assets Supervision and Administration Commission. Other significant shareholders include China Three Gorges Corporation and its subsidiaries [7][35]. Highlights - The company has passed the peak of project construction, with capital expenditure expected to decrease to HKD 41.1 billion in 2024, down by HKD 28.9 billion year-on-year. The dividend per share is projected to yield a dividend rate of 6.22% in 2024 [7][40]. Water Services Sector - The demand for water supply and sewage treatment is expected to grow steadily, with a projected CAGR of 0.37% and 1.2% from 2025 to 2027. The company’s market share in water supply and sewage treatment is 1.8% and 8.2%, respectively, as of 2023. The company’s operational capacity is expected to reach 33.84 million tons per day by the end of 2024 [8][11]. Financial Analysis - The company has experienced profit fluctuations over the past three years due to factors such as the sale of joint ventures and impairment provisions. However, the increase in operational proportion is expected to enhance future earnings stability. As of the end of 2024, the cautious estimate of accounts receivable is HKD 20.85 billion, with 75.8% of service concession receivables due within one year [10][11]. Profit Forecast - The company is expected to achieve a net profit attributable to shareholders of HKD 16.6 billion, HKD 17.0 billion, and HKD 17.1 billion from 2025 to 2027, with dividends projected to grow by 3% annually from 2024 levels [11].

Core Insights - The data indicates significant trading volume increases for various companies, suggesting heightened investor interest and potential market movements [1][2][3][4][5] Group 1: Companies with Notable Volume Increases - 阳光能源 (00757) reported a volume ratio of 2.35, indicating strong trading activity [2] - 长城汽车 (02333) had a volume ratio of 2.21, reflecting increased investor engagement [2] - 郑煤机 (00564) showed a volume ratio of 1.92, suggesting a notable rise in trading [2] Group 2: Additional Companies with Increased Trading Activity - 万国数据-SW (09698) recorded a volume ratio of 1.83, indicating significant market interest [2] - 映恩生物-B (09606) had a volume ratio of 1.78, reflecting heightened trading activity [2] - 超盈国际控股 (02111) reported a volume ratio of 1.71, suggesting increased investor focus [2] Group 3: Companies with Moderate Volume Ratios - 中国能源建设 (03996) had a volume ratio of 1.70, indicating a solid level of trading activity [2] - 亚信科技 (01675) reported a volume ratio of 1.60, reflecting moderate investor interest [2] - 金宝通 (00320) showed a volume ratio of 1.53, suggesting a rise in trading volume [2] Group 4: Companies with Lower Volume Ratios - 中国水务 (00855) had a volume ratio of 1.52, indicating stable trading activity [2] - 广汽集团 (02238) reported a volume ratio of 1.52, reflecting consistent investor engagement [2] - 凯莱英 (06821) showed a volume ratio of 1.52, suggesting steady trading interest [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company achieved a total revenue of RMB 24,270,499,000, representing a year-on-year decrease of 1.0%[11] - The company's net profit attributable to shareholders was RMB 1,677,600,000, reflecting a year-on-year decline of 11.5%[11] - The company's operating revenue decreased by 1% to RMB 24.27 billion, with a 12% reduction in profit attributable to shareholders, amounting to RMB 1.68 billion[22] - The total revenue for the previous year was RMB 24,519.4 million, indicating a slight decrease in overall performance year-over-year[27] - For the fiscal year ending December 31, 2024, the company's total revenue was RMB 24,270.5 million, a decrease of 1% compared to RMB 24,519.4 million in 2023[30] - The company's net profit attributable to shareholders for 2024 was RMB 6,246.2 million, down 4% from RMB 6,487.8 million in 2023[30] - The total revenue from water treatment services in China reached RMB 8.75 billion, with a gross margin of 57%[23] - The company's overseas water treatment services generated revenue of RMB 429.2 million, with a gross margin of 15%[23] - The water treatment services segment generated RMB 11,622.2 million in revenue, accounting for 47% of total revenue, with a profit attributable to shareholders of RMB 4,672.2 million, representing a 72% margin[26] - The construction of BOT water projects contributed RMB 2,616.0 million in revenue, with a gross profit margin of 17% and a profit attributable to shareholders of RMB 286.8 million[24] - The technology services and equipment sales segment reported revenue of RMB 2,549.4 million, with a gross profit margin of 42% and a profit attributable to shareholders of RMB 499.7 million[24] - The revenue from urban resource services was RMB 6,027.7 million, with a profit attributable to shareholders of RMB 108.5 million, reflecting a 2% margin[24] - The total revenue from sewage and reclaimed water treatment services was RMB 8,748.8 million, with a net profit attributable to shareholders of RMB 3,873.2 million[38] Strategic Focus and Development - The company is focusing on cash flow management and enhancing operational efficiency as part of its strategic transformation towards high-quality development[10] - The company is actively pursuing market expansion and technological innovation to support its strategic goals[12] - The company plans to focus on light asset transformation and deepen strategic changes in 2024, aiming to enhance operational efficiency[14] - The company has successfully secured over a hundred light-asset project contracts, contributing to the steady increase in the proportion of light-asset business[12] - The light-asset business is becoming a significant contributor to the company's overall performance, enhancing its "new content" and "gold content"[12] - The establishment of two technology platforms, Beikong Water Future Technology Co., Ltd. and Beikong Cloud Service Co., Ltd., aims to drive innovation and sustainable development[17] - The company is committed to integrating sustainable development principles into its long-term strategy, enhancing customer communication, and improving service quality[18] - The company has established a business strategy focused on "quality growth, valuable assets, cash profits, and capable organizations," aiming to enhance core capabilities such as quality delivery and smart operations[100] Governance and Corporate Structure - The board of directors is committed to maintaining high corporate governance standards to ensure transparency and protect shareholder rights[99] - The board consists of various members, including executive, non-executive, and independent directors, with a focus on compliance with corporate governance codes[103][104] - The board aims to ensure gender diversity and avoid a single-gender composition among its members[113] - The company has a board diversity policy in place since 2013, focusing on various factors such as gender, age, and professional experience for board member selection[111] - The board has appointed new directors to maintain a balance of experience and skills, with recent appointments made in February and June 2024[115] - The company has established four committees under the board to enhance governance practices[124] - The audit committee is responsible for overseeing the integrity of the company's financial statements and the relationship with the auditor[125] - The company has adopted a nomination policy outlining the selection criteria and procedures for new and reappointed directors[130] Risk Management and Compliance - The company has established a risk management framework consisting of "three lines of defense" to ensure effective risk management and internal controls[143] - The risk management department has implemented strict guidelines and procedures to monitor each investment unit, aiming to reduce risks and external impacts[146] - The company has taken corrective actions based on last year's findings and deficiencies in internal controls[147] - The audit committee reported no significant internal control deficiencies as of December 31, 2024, affirming the effectiveness of the group's risk management and internal control systems[149] - The group has established a whistleblowing policy to allow employees and stakeholders to report potential misconduct confidentially[151] - The group has implemented an anti-bribery and anti-corruption system to prevent fraudulent activities among employees[152] Shareholder Engagement and Communication - The company is committed to regular communication and reasonable disclosure of information to shareholders, utilizing various channels for effective engagement[162] - The board believes that effective investor relations play a crucial role in creating shareholder value and enhancing company transparency[163] - The company has actively taken measures to improve communication with shareholders and increase transparency as of the fiscal year ending December 31, 2024[165] - The company has established a dedicated email account for inquiries from shareholders or potential investors[162] - The company has a policy in place to solicit feedback from shareholders and institutional investors[162] Employee and Social Responsibility - The company emphasizes the importance of maintaining close relationships with employees, customers, and business partners to ensure sustainable development[138] - The company provides competitive compensation and benefits to employees based on their merits and performance[138] - The gender diversity ratio among employees is approximately 53% male and 47% female, indicating satisfactory gender diversity within the workforce[118] Financial Instruments and Debt Management - The total debt amounted to RMB 75,502,200,000, including bank and other borrowings of RMB 60,931,000,000 and corporate bonds of RMB 14,571,200,000[90] - The debt-to-equity ratio as of December 31, 2024, was 1.19, up from 1.18 as of December 31, 2023, primarily due to increased borrowings[91] - The company issued medium-term notes with an outstanding principal amount of RMB 1,000,000,000 at an annual interest rate of 4.49%, maturing in January 2029[199] - A wholly-owned subsidiary issued medium-term notes with an outstanding principal of RMB 2,000,000,000, maturing in March 2028 and March 2030, with interest rates of 3.43% and 3.98% respectively[199] - The company has outstanding medium-term notes of RMB 1,500,000,000 at an interest rate of 3.98%, maturing in April 2029[200]

Core Viewpoint - Beikong Water Group reported a decline in revenue and profit for the fiscal year ending December 31, 2024, primarily due to reduced contributions from BOT water service projects [1][2] Financial Performance - The company recorded a revenue of 24.27 billion RMB, a year-on-year decrease of 1.02% [1] - Shareholder profit was 1.678 billion RMB, down 11.5% year-on-year [1][2] - Basic earnings per share were 15.63 cents [1] Dividend Information - The company proposed a final dividend of 0.091 HKD per share, reflecting a year-on-year increase of 2.5% [1][2] - The dividend payout ratio increased by 16.8 percentage points to 95.2% [1] Cash Flow and Profit Quality - Cash-generating business revenue accounted for 85.8% of total earnings, up 7.8 percentage points year-on-year [1] - Free cash flow increased by 35% to 1.48 billion RMB, with a target to increase by another 1 billion RMB this year [1] Market Analysis - Citigroup noted that the profit decline was not concerning due to higher non-cash impairment losses, indicating improved profit quality [1] - Huatai Securities highlighted that the net profit was below their expectation of 1.876 billion RMB, mainly due to increased impairment losses [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company's revenue decreased due to a decline in construction income, while the total dividend payout saw a slight increase. Capital expenditures continue to contract, leading to improved free cash flow [3][8]. Financial Summary - In 2024, the company achieved revenue of 24,270 million RMB, a year-on-year decline of 1%. The net profit attributable to shareholders was 1,678 million RMB, down 12% year-on-year. The decline in revenue was primarily due to a 42% drop in BOT water project construction income, which amounted to 2,616 million RMB [8]. - The total dividend payout for the year was 1,435 million RMB, slightly up from 1,420 million RMB in 2023 [8]. - The overall gross margin remained stable at 37%, while management expenses decreased by 7% to 3,071 million RMB [8]. Operational Performance - The company operated sewage treatment capacity of 19.65 million tons and recycled water plants of 2.09 million tons in 2024, with sewage treatment volume increasing by 5%. The average contract price for water treatment rose to 1.54 RMB/ton from 1.49 RMB/ton in 2023, with a gross margin increase of 2 percentage points to 57% [8]. - The operational water supply capacity was 10.24 million tons, with a 2% increase in supply volume. The actual average contract price for water supply remained stable at 2.15 RMB/ton, while the gross margin decreased by 5 percentage points to 40% due to increased amortization from more water pipe construction and renovation [8]. - Revenue from technical services and equipment sales reached 2,549 million RMB, a 4% year-on-year increase, with a gross margin of 42%, down 1 percentage point [8]. - Urban resource service revenue grew by 19% year-on-year to 6,028 million RMB, with a gross margin of 19%, down 1 percentage point [8]. Capital Expenditure - The company's total capital expenditure for 2024 was 4,105 million RMB, a significant decrease from 6,990 million RMB in 2023. Of this, 1,694 million RMB was allocated for the acquisition of property, plant, and equipment, while 2,350 million RMB was used for the construction and acquisition of water plants [8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.74 [7]. Core Views - The company reported a revenue of RMB 24.27 billion for 2024, a decrease of 1.0% year-on-year, primarily due to a decline in contributions from BOT water projects. The net profit attributable to shareholders was RMB 1.678 billion, down 11.5% year-on-year, which was below expectations due to increased impairment losses. The dividend per share (DPS) for 2024 is set at HKD 0.161, a 2.5% increase from 2023, resulting in a dividend yield of 6.9% based on the closing price on March 27, 2025 [1][4]. Revenue and Profitability - The wastewater and reclaimed water treatment service revenue increased by 6% to RMB 9.18 billion, driven by new water volume from plants that commenced operations during the year. However, the water governance construction service revenue fell by 36% to RMB 3.44 billion, with BOT plant construction revenue down 42% to RMB 2.62 billion, reflecting the company's strategy to reduce investments in line with its asset-light transformation [2][3]. Cash Flow and Dividend Policy - The company has maintained positive free cash flow for three consecutive years. The capital expenditure for 2024 is expected to decrease by 41% to RMB 4.11 billion, with further reductions anticipated. The implementation of user-pay trends and potential increases in water prices are expected to contribute positively to performance. The payout ratio for dividends is projected to reach 94% in 2024, indicating strong potential for future dividend increases as free cash flow improves [3][4]. Earnings Forecast - The report revises down the earnings forecast for the company, projecting net profits attributable to shareholders of RMB 1.543 billion, RMB 1.643 billion, and RMB 1.724 billion for 2025, 2026, and 2027 respectively. The expected earnings per share (EPS) for 2025 is RMB 0.15, with a target price based on a 16.5x PE ratio for 2025 [4][6].

Financial Performance - For the year ending December 31, 2024, the company's profit attributable to shareholders decreased by 11.5% to RMB 1,677,600,000 from RMB 1,895,700,000 in the previous year[4]. - The company's EBITDA was RMB 8,525,300,000, a decrease of 4.5% compared to RMB 8,931,300,000 last year[4]. - The total revenue for the year was RMB 24,270,499,000, down from RMB 24,519,374,000 in the previous year, representing a decline of approximately 1.0%[5]. - The gross profit for the fiscal year 2024 was RMB 8,989,098,000, slightly down from RMB 9,000,753,000 in 2023, indicating a stable gross margin[18][19]. - The net profit attributable to shareholders for 2024 was RMB 1,677,600,000, compared to RMB 1,895,681,000 in 2023, reflecting a decrease of approximately 11.5%[19][22]. - The company's operating profit for 2024 was RMB 7,528,297,000, down from RMB 7,841,632,000 in 2023, reflecting a decrease of about 4%[18][19]. - The total tax expense for the year is RMB 812,083,000, a decrease of 15.8% from RMB 964,112,000 in the previous year[26]. - The basic earnings per share for the year is RMB 1.567694 billion, down from RMB 1.825397 billion in the previous year, reflecting a decrease of 14.1%[29]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.091 per share, with a total annual dividend of HKD 0.161 per share[4]. - The proposed final dividend per share is HKD 0.091, an increase from HKD 0.087 in the previous year, resulting in a total proposed dividend of RMB 1,474,902,000[26]. - The board proposed a final dividend of HKD 0.091 per share for the fiscal year ending December 31, 2024, subject to shareholder approval[114]. Assets and Liabilities - The total assets as of December 31, 2024, amounted to RMB 166,571,603,000, compared to RMB 165,493,193,000 in the previous year[9]. - Total equity as of December 31, 2024, is RMB 54,133,475,000, an increase from RMB 31,171,095,000 in 2023[10]. - Total liabilities decreased slightly to RMB 110,609,173,000 from RMB 111,359,718,000 year-over-year[10]. - The company’s bank and other borrowings decreased to RMB 10,366,940,000 from RMB 13,145,188,000[10]. - The company’s total non-current liabilities increased to RMB 68,861,047,000 from RMB 67,340,367,000[10]. - The company’s total current liabilities decreased to RMB 42,498,671,000 from RMB 43,268,806,000[10]. - The group recorded revenue of RMB 828,200,000 from integrated governance projects, a slight decrease from RMB 839,900,000 in the previous year, with net profit from these projects dropping to RMB 490,000,000[61]. Revenue Streams - The company reported a significant increase in revenue from wastewater and recycled water treatment services, reaching RMB 9,178,030,000 in 2024, up from RMB 8,643,409,000 in 2023, marking a growth of 6.2%[22]. - The revenue from construction services decreased significantly to RMB 3,444,184,000 in 2024 from RMB 5,380,463,000 in 2023, a decline of approximately 36.1%[22]. - The revenue from urban services increased to RMB 5,310,493,000 in 2024, compared to RMB 4,343,559,000 in 2023, showing a growth of 22.2%[22]. - The total interest income from service concession arrangements was RMB 3,100,665,000 in 2024, up from RMB 3,023,301,000 in 2023, indicating a positive trend in this revenue stream[22]. - The water treatment services segment generated revenue of RMB 12,249.2 million, an increase of 5% from RMB 11,622.2 million in 2023[45]. - The technology services and equipment sales segment reported revenue of RMB 2,549.4 million, a 4% increase from RMB 2,459.1 million in 2023[45]. Operational Efficiency and Management - Management and financial expenses have been continuously reduced, contributing to improved operational efficiency[4]. - The company has been recognized as the top influential enterprise in China's water industry for 14 consecutive years[4]. - The company is actively promoting the research and development of new technologies and processes, including AOA, to enhance water plant quality and efficiency[4]. - The company has changed its functional currency from HKD to RMB to better reflect its economic substance[12]. - The group aims to enhance customer communication and experience, focusing on responsible marketing and improving customer satisfaction[105]. - The group is committed to building a sustainable development partner network, integrating sustainability into the entire lifecycle management of suppliers[105]. Employee and Corporate Governance - As of December 31, 2024, the total employee cost was RMB 5,615,717,000, an increase from RMB 5,330,504,000 for the previous year[107]. - The group employed 85,870 employees as of December 31, 2024, including 67,219 from North Control Urban Resources[108]. - The board consists of seven executive directors, one non-executive director, and five independent non-executive directors as of the announcement date[128]. - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the financial results for the year ending December 31, 2024[119]. Future Outlook and Strategic Initiatives - The group has planned a systematic digital transformation project for 2024, focusing on operational efficiency and data service analysis, aiming for comprehensive digital transformation in financial management[103]. - The establishment of two technology platforms, North Water Technology and North Water Cloud Service, aims to enhance sustainable development and digital transformation in the water industry[102]. - The company will suspend share transfer registration from June 12 to June 13, 2025, to qualify for the proposed final dividend[116].

Financial Performance - The group achieved a total revenue of RMB 11,308,811,000, a decrease of 6% year-on-year, and a net profit attributable to shareholders of RMB 1,122,088,000, down 18% year-on-year[5]. - The company's net profit attributable to shareholders decreased by 18% to RMB 1,122.1 million due to a 6% decline in revenue to RMB 11,308.8 million, primarily from reduced contributions from BOT water service projects[10]. - Total revenue for the group reached RMB 12,083.1 million, a decrease of 6% compared to RMB 12,083.1 million in the previous period[21]. - The total revenue for the period was RMB 4,176,700,000, with a net profit attributable to shareholders of RMB 2,091,700,000[33]. - The net profit for the period was RMB 1,767,787, compared to RMB 1,957,647 in the previous year, indicating a decrease of approximately 9.7%[76]. - The total comprehensive income for the period was RMB 1,261,091, significantly higher than RMB 196,109 in the same period of 2023, showing a substantial increase[77]. - The company reported a net financial cost of RMB 1,542.6 million, impacting overall profitability[18]. - The company reported a total comprehensive income of RMB (30,965) thousand for the period, reflecting a significant change from the previous year's comprehensive income[84]. Revenue Breakdown - The revenue from water treatment services in China reached RMB 4,176.7 million, contributing to a gross margin of 37%[11]. - The revenue from urban resource services amounted to RMB 2,687.8 million, with a gross margin of 24%[13]. - The total revenue from technology services and equipment sales was RMB 1,151.4 million, with a gross margin of 10%[13]. - Revenue from construction BOT water projects was RMB 2,903.9 million, a significant decrease of 57% compared to the previous period[23]. - The revenue from urban resource services increased by 20% to RMB 2,687.8 million compared to RMB 2,236.2 million in the previous period[23]. - Revenue from BOT water projects decreased to RMB 1,257,600,000, with profit attributable to shareholders dropping to RMB 159,200,000 due to a focus on light-asset projects[43]. - Revenue from wastewater and recycled water treatment services was RMB 4,384,504,000, an increase from RMB 4,200,741,000 in the previous year[104]. Operational Capacity and Projects - The design capacity of new projects reached 510,350 tons/day, contributing to a total design capacity of 44,000,174 tons/day[5]. - The group achieved a total daily processing capacity of 44,000,174 tons across 1,457 water treatment facilities as of June 30, 2024[26]. - The group secured approximately 410,000 tons/day of new light asset projects, including recycled water sales and entrusted operations, in the first half of 2024[5]. - The company established two service concession agreements for multiple township sewage treatment projects, with a total daily processing capacity of 24,500 tons[26]. - The company has a total of 1,217 sewage treatment plants and 72 recycled water treatment plants in operation[27]. - The company operates 334 sewage treatment plants in the southern region of China with a total design capacity of 4,605,005 tons, generating revenue of RMB 870,800,000 and a profit of RMB 402,500,000[34]. - In the western region of China, the company operates 323 sewage treatment plants with a total design capacity of 2,844,810 tons, achieving revenue of RMB 783,600,000 and a profit of RMB 350,800,000[35]. Strategic Initiatives - The group is committed to integrating technology development into its platform strategy to drive asset-light transformation and improve core competitiveness[4]. - The company aims to enhance its "new content," "green content," and "gold content" as part of its strategic focus on asset-light transformation in 2024[9]. - The group is enhancing its pricing management capabilities to support water service companies in adjusting water prices to reflect true supply costs[5]. - The group has implemented a systematic review of regional integration trials, advancing changes in 18 regions to enhance operational capabilities and support the upgrade of the "cloud-chain-end" operational model[7]. - The company is pushing for digital transformation to integrate business and financial systems, supporting data analysis for refined management[8]. Financial Management and Costs - The company achieved a historical low in bond financing rates with a 3-year Panda bond issuance, effectively reducing financial costs and maintaining reasonable liquidity[7]. - The company reported a decrease in cash and cash equivalents to RMB 8,953,739 from RMB 10,215,161 at the end of 2023, a decline of about 12.4%[80]. - The company incurred RMB 346,668 thousand for the purchase of property, plant, and equipment, a decrease from RMB 575,981 thousand in the same period of 2023[86]. - The company recognized a tax payment of RMB 418,860 thousand for corporate income tax in mainland China, compared to RMB 362,901 thousand in the previous year[86]. - The company reported a total of RMB 60,570,637,000 in total settled accounts as of June 30, 2024, up from RMB 59,037,045,000[117]. Shareholder Returns and Dividends - The group plans to distribute an interim cash dividend of HKD 0.07 per share to reward shareholders for their continued support[5]. - The interim cash dividend declared on August 28, 2024, was HKD 0.07 per share, totaling approximately RMB 642,942,000, an increase from RMB 632,936,000 in the previous year[110]. - The company declared cash dividends during the period, details of which are disclosed in note 7[76]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the unaudited interim results for the six months ending June 30, 2024[185]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the six months ending June 30, 2024[183]. - The board is responsible for assessing risks and ensuring effective risk management and internal control systems are in place[186]. - The risk management center is tasked with establishing mechanisms to identify, control, and manage risks faced by the group[187]. Related Party Transactions and Shareholding - The group has established ongoing related party transactions as defined under the listing rules[138]. - The major shareholder, Beikong Environment, holds 4,121,604,070 shares, representing approximately 41.03% of the company's issued share capital[162]. - The shareholding structure indicates significant control by Beijing Holdings and its subsidiaries, with a combined ownership of approximately 41.54%[162].