按上市規則第 13.18 條規定作出之一般披露 本公佈乃根據上市規則第 13.18 條作出，關於本公司之全資附屬公司建邦投資 有限公司作為借款人、本公司作為擔保人與該銀行作為貸款人訂立金額最高為 人民幣 2,400,000,000 元定期貸款之該貸款函件。該貸款函件訂明(其中包括) 控 股股東須於本公司持有之最低股權百份比要求。 本公佈乃遵照香港聯合交易所有限公司之證券上市規則(「上市規則」)第 13.18 條之披露規定而發表。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 該銀行可宣佈取消該貸款函件項下之任何承諾及/或宣佈所有未償還款項連同其 所有應計利息及其他所有款項即時到期及須予支付及/或應要求下須予支付。 於本公佈日期，(1)北京控股直接或間接持有本公司已發行股本約41.13%及為本 公司之單一最大股東；及(2) 北京控股集團為北京控股之控股股東。 本公司將遵守上市規則第 13.21 條所要求之披露有關資料，惟只要導致有披露 責任產生的情況 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 海外監管公告 謹此提述本公司日期為二零二一年七月九日就有關中國證券監督管理委員會批准本公司 公開發行面值總額不超過人民幣 35 億元之熊貓債券的公告、日期為二零二一年七月十 五日就有關發行第一期熊貓債券人民幣 20 億元的公告及日期為二零二四年七月十七日 有關熊貓債券(第一期) (品種一) 人民幣 10 億元提前摘牌的公告(「該等公告」)。當中熊 貓債券(第一期) (品種二)人民幣 10 億元仍在上交所上市。除另有界定者外，本公告所用 詞彙與該等公告所界定者具相同涵義。 本公司已在上交所網站(www.sse.com.cn)上載以下有關熊貓債券的文件： - 北控水務集團有限公司關於審計機構發生變更的公告。詳情請參閱本公司於上交所 網站刊發的公告，網址如下： https://static.sse.com.cn/disclosure/bond/announcement/company/c/new/2024-1 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 更換核數師 本公告乃由北控水務集團有限公司（「本公司」，連同其附屬公司，統稱「本集 團」）董事會（「董事會」）根據香港聯合交易所有限公司證券上市規則第13.51(4) 條而作出。 核數師辭任 根據中華人民共和國財政部及國務院國有資產監督管理委員會的相關規定，對會 計師事務所連續承擔本公司財務決算審計業務的年期有限制。由於本公司連續委 聘安永會計師事務所（「安永」）的年期已經達到規定年限，董事會宣佈，安永 已辭任本公司核數師，自二零二四年十月三十一日起生效。 董事會藉此機會對安永於過去多年為本集團提供的專業服務及支持表示衷心感 謝。 - 1 - 委任核數師 董事會進一步宣佈，本公司審核委員會（「審核委員會」）建議下，董事會議決 委任德勤˙關黃陳方會計師行（「德勤」）為本公司新任核數師，以填補安永辭 任後的臨時空缺。德勤將任職直至本公司下屆股東週年大會結束為止。 審核委員會在評估委任德勤為本公司核數師時已考 ...

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].

Investment Rating - Maintains an "Overweight" rating for the company [2] Core Views - The company's capital expenditure has significantly decreased, leading to a substantial year-on-year decline in BOT construction revenue, resulting in fluctuations in the 2024 interim performance [4] - Operations remain stable, with water treatment business volume and prices increasing [4] - High dividend payout ratio with stable dividend distribution [4] Financial Performance - 2024 H1 revenue: 11.309 billion RMB, down 6% year-on-year [4] - 2024 H1 net profit attributable to shareholders: 1.122 billion RMB, down 18% year-on-year [4] - Construction service revenue: 1.642 billion RMB, down 49% year-on-year [4] - Operating income from sewage and water supply services showed steady growth [4] Water Treatment Business - Total water treatment design capacity: 44 million tons/day as of H1 2024 [4] - Sewage: 24.84 million tons/day - Water supply: 14.34 million tons/day - Recycled water: 4.52 million tons/day - Seawater desalination: 0.3 million tons/day - Sewage treatment volume increased by 5% year-on-year [4] - Average sewage treatment contract price: 1.51 RMB/ton, slightly up from 1.49 RMB/ton in 2023 [4] - Sewage treatment gross margin improved by 2 percentage points to 59% [4] - Water supply volume increased by 4% year-on-year [4] - Average water supply contract price: 2.16 RMB/ton, slightly up from 2.15 RMB/ton in 2023 [4] - Water supply gross margin decreased by 4 percentage points to 43% [4] BOT Construction - BOT construction revenue: 1.258 billion RMB, down 57% year-on-year [4] - Focus on light-asset projects, reducing investment in BOT water projects [4] Capital Expenditure and Dividends - 2024 H1 capital expenditure: 1.573 billion RMB, significantly down from 3.618 billion RMB in the same period last year [4] - Interim dividend: 0.07 HKD per share, same as last year, with a cash dividend payout ratio of 60% [4] - Trailing twelve-month (TTM) dividend yield: 7.04% [4] Market Data - Current price: 2.23 HKD [5] - 52-week price range: 1.50-2.78 HKD [5] - Current shares outstanding: 10,047 million [5] - Current market capitalization: 22,404 million HKD [5] Financial Forecast - 2024-2026 forecasted net profit: 1.966 billion, 2.040 billion, and 2.150 billion RMB respectively [4] - 2024-2026 forecasted EPS: 0.20, 0.20, and 0.21 RMB respectively [4]

Financial Performance - For the six months ended June 30, 2024, the company's profit attributable to shareholders decreased by 18% to RMB 1,122,100,000 from RMB 1,369,800,000 in the previous period[3]. - EBITDA for the same period was RMB 4,659,700,000, a decrease of 1.5% compared to RMB 4,728,900,000 in the prior period[3]. - Total revenue for the six months was RMB 11,308,811,000, down from RMB 12,083,093,000 in the previous year, representing a decrease of approximately 6.4%[4]. - Gross profit for the period was RMB 4,293,515,000, compared to RMB 4,430,529,000 in the previous year, reflecting a decline of about 3.1%[4]. - The company's operating profit was RMB 3,451,663,000, down from RMB 3,714,404,000, indicating a decrease of approximately 7.1%[4]. - The pre-tax profit for the period was RMB 2,210,823,000, compared to RMB 2,509,514,000 in the previous year, a decline of about 11.9%[4]. - The total comprehensive income for the period was RMB 1,261,091,000, significantly up from RMB 196,109,000 in the previous year[5]. - The net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 1,122,088,000, down from RMB 1,369,754,000 in the same period of 2023, representing a decrease of 18.1%[20]. - The company's net profit attributable to shareholders decreased by 18% to RMB 1,122.1 million due to a reduction in revenue from BOT water service construction projects[45]. - Total operating revenue for the period fell by 6% to RMB 11,308.8 million[45]. Dividends and Shareholder Returns - The company proposed an interim dividend of HKD 0.07 per share, with a payout ratio of 60%[3]. - The interim cash dividend declared is HKD 0.07 per ordinary share, totaling approximately RMB 642,942,000, slightly up from RMB 632,936,000 for the same period last year[31]. - The company declared an interim dividend of HKD 0.07 per share, equivalent to RMB 0.063996 per share, to be paid on October 28, 2024[136]. - Shareholders have the option to receive the interim dividend in RMB, with a deadline for currency choice submission by October 7, 2024[138]. Assets and Liabilities - Non-current assets totaled RMB 125,321,744,000 as of June 30, 2024, compared to RMB 125,108,357,000 at the end of the previous year[7]. - Current assets decreased to RMB 39,999,825,000 from RMB 40,384,836,000, indicating a decline of approximately 1%[7]. - As of June 30, 2024, total equity reached RMB 55,755.629 million, an increase from RMB 54,133.475 million as of December 31, 2023, reflecting a growth of approximately 3%[8]. - The company reported total liabilities of RMB 109,565.940 million, a decrease from RMB 111,359.718 million, indicating a reduction of about 1.6%[8]. - Non-current liabilities amounted to RMB 64,692.572 million, down from RMB 68,861.047 million, representing a decline of approximately 6.3%[8]. - Current liabilities increased to RMB 44,873.368 million from RMB 42,498.671 million, marking an increase of about 5.6%[8]. - The company's total assets as of June 30, 2024, were RMB 120,448.2 million, slightly down from RMB 122,994.5 million at the end of 2023[43]. - Cash and cash equivalents decreased to RMB 8,953,700,000 as of June 30, 2024, down from RMB 10,215,200,000 as of December 31, 2023[117]. - Total borrowings amounted to RMB 73,853,100,000, slightly down from RMB 74,244,700,000 as of December 31, 2023, with bank borrowings at RMB 59,880,500,000[117]. Revenue Sources - The revenue from wastewater and recycled water treatment services for the six months ended June 30, 2024, was RMB 4,384,504,000, an increase of 4.4% from RMB 4,200,741,000 in 2023[24]. - The revenue from construction services decreased significantly to RMB 1,641,703,000 in 2024 from RMB 3,227,715,000 in 2023, a decline of 49.2%[24]. - The total revenue from external customers in mainland China was RMB 10,656,369,000 for the six months ended June 30, 2024, down from RMB 11,450,794,000 in 2023, a decline of 6.9%[22]. - The revenue from water treatment services in China was RMB 4,176.7 million, contributing to a gross profit margin of 59%[46]. - The total revenue from BOT water projects amounted to RMB 1,257,600,000 for the period, a decrease from RMB 2,903,900,000 in the same period last year, with attributable profit to shareholders at RMB 159,200,000, down from RMB 374,600,000[75]. - Revenue from technical services and equipment sales was RMB 1,151,400,000, an increase from RMB 1,051,600,000 year-on-year, contributing 10% to total revenue, while attributable profit decreased to RMB 108,700,000 from RMB 189,000,000[76]. Operational Capacity and Projects - The total daily design capacity of the company's water treatment facilities reached 44,000,174 tons as of June 30, 2024, with 1,457 water plants and sewage treatment facilities in operation[55]. - The company established service concession agreements for multiple township sewage treatment projects, with a total processing capacity of 24,500 tons per day[56]. - The company has expanded its coverage to 20 provinces, 5 autonomous regions, and 4 municipalities in mainland China[54]. - The company operates 1,194 water treatment facilities with a total design capacity of 33,610,847 tons per day, achieving a total processing volume of 4,198,100,000 tons during the period[61]. - The company has 334 wastewater treatment facilities in southern China, with a total design capacity of 4,605,005 tons per day, and recorded a processing volume of 706,200,000 tons[62]. - In the western region of China, the company operates 323 facilities with a design capacity of 2,844,810 tons per day, achieving a processing volume of 399,400,000 tons and revenue of RMB 783,600,000[64]. - The eastern region's facilities increased their design capacity to 5,886,876 tons per day, processing 820,100,000 tons and generating RMB 974,800,000 in revenue[66]. - The company is currently constructing 10 integrated governance projects, with revenue from these projects increasing to RMB 384,100,000 during the period[73]. Cost Management and Expenses - The financial expenses for the six months ended June 30, 2024, totaled RMB 1,565,644,000, slightly increased from RMB 1,542,598,000 in the same period of 2023[27]. - Management expenses decreased to RMB 1,251,700,000, a slight decline of 3% from RMB 1,288,300,000, indicating effective cost control[91]. - Finance costs increased to RMB 1,395,000,000 from RMB 1,314,100,000, primarily due to a slight rise in average interest rates[93]. Corporate Governance and Shareholder Engagement - The company has committed to maintaining high standards of corporate governance to enhance transparency and protect shareholder rights[142]. - The audit committee, consisting of three independent non-executive directors, reviewed and approved the unaudited interim results for the six months ended June 30, 2024[144]. - The interim results announcement will be published on the company's website and the Hong Kong Stock Exchange website[146]. - The company expresses gratitude to all employees for their support and dedication[147].

Financial Performance - For the year ended December 31, 2023, the company achieved a total revenue of RMB 24,519,374,000, representing a year-on-year increase of 14.1%[7] - The company reported a net profit attributable to shareholders of RMB 1,895,681,000, which is a significant increase of 60.5% compared to the previous year[7] - The basic earnings per share for the year were RMB 0.1824[7] - Total operating revenue rose by 14% to RMB 24,519.4 million, with significant contributions from both domestic and overseas water treatment services[14] - The company's net profit attributable to shareholders increased by 60% to RMB 1,895.7 million, driven by increased revenue from water treatment services and the consolidation of Beikong Urban Resources Group since the second half of last year[14] - The group reported a gross profit margin of 47% and a net profit margin of 72% for the year, indicating strong operational efficiency[15] - The gross profit margin improved to 26% in 2023, up from 16% in 2022, indicating a significant enhancement in profitability[26] - The financial expenses for the year totaled RMB 3,260.9 million, impacting overall profitability[16] - The company reported a loss of RMB 938.3 million from the disposal of an associate company, which affected the overall financial performance[21] Operational Capacity and Projects - The company added a new design capacity of 1,548,909 tons per day, bringing the total design capacity to 43,963,124 tons per day as of December 31, 2023[7] - The total daily design capacity of the group's water treatment facilities reached 43,963,124 tons as of December 31, 2023, with operational facilities accounting for 31,606,503 tons[28] - The average daily processing volume for wastewater treatment was 16,405,750 tons, with an average processing rate of 79%[30] - The group established service concession arrangements for a total daily design capacity of 1,548,909 tons during the year, including various BOT, TOT, and BOO projects[27] - The group operates 1,455 water treatment and sewage treatment facilities, including 934 sewage treatment plants and 42 reclaimed water treatment plants in mainland China[29] Strategic Focus and Initiatives - The company is focusing on green and low-carbon transformation in response to national environmental policies, aiming to enhance asset quality and operational efficiency[8] - The company aims to maintain its industry-leading position through technological and management innovations[8] - The company is committed to supporting the construction of a beautiful China by optimizing wastewater management and enhancing water supply operations[8] - The company emphasizes cash flow as a core strategy while enhancing business fundamentals and focusing on customer management and business transformation[7] - The group is focusing on digital capabilities in core business areas, implementing a digital management platform for wastewater treatment plants[12] Shareholder Returns and Dividends - The board of directors declared a final cash dividend of HKD 0.087 per share to reward shareholders for their continued support[7] - The company reported a proposed final dividend of HKD 0.087 per share, following an interim dividend of HKD 0.070 per share distributed on October 19, 2023[140] - The board will consider various factors before declaring dividends, including the group's financial performance, retained earnings, and future expansion plans[108] Governance and Board Composition - The board of directors consists of 9 members, including 4 executive directors and 5 non-executive directors, ensuring compliance with the listing rules[72] - The company appointed Chen Zhao Shi as an independent non-executive director on September 15, 2023, to comply with listing rules regarding board composition[74] - The company has implemented continuous professional development training for directors to enhance their knowledge and skills in corporate governance[76] - The company has established a succession plan for the board, regularly reviewing and identifying suitable candidates with diverse skills[84] - The company’s board is responsible for formulating corporate strategies and overseeing financial performance to achieve strategic goals[75] Risk Management and Compliance - The risk management framework is structured as "three levels + three lines of defense," ensuring effective risk management and internal control systems[101] - The company has implemented a whistleblowing policy to allow employees and stakeholders to report potential misconduct confidentially[105] - The audit committee continuously monitors the effectiveness of the risk management and internal control systems and reports annually to the board[104] - The company has established a comprehensive procedure for handling insider information to ensure compliance with disclosure regulations[106] Employee and Workforce Management - The total employee cost for the year was RMB 5,330,504,000, compared to RMB 4,487,697,000 for the previous year, reflecting an increase in workforce to 76,608 employees[66] - The company provides competitive compensation and benefits to employees based on their merits and performance[96] - The gender ratio among employees is approximately 55% male and 45% female, indicating satisfactory gender diversity within the workforce[83] Financial Instruments and Capital Management - The company has issued medium-term notes with an outstanding principal amount of RMB 2,000,000,000, maturing in January 2026 and January 2029, with annual interest rates of 3.95% and 4.49% respectively[147] - The company has issued bonds with an outstanding principal amount of RMB 1,500,000,000, maturing in April 2029, with an annual interest rate of 3.98%[148] - The total available reserves for distribution to shareholders as of December 31, 2023, amount to RMB 5,156,220,000[152] - The company has a cumulative daily deposit balance limit of HKD 1,520,000,000 under the 2021 deposit service agreement with Beikong Group Finance[194] Market Presence and Expansion Plans - The company plans to expand its market presence and invest in new technologies to enhance service offerings and operational efficiency[16] - The group plans to continue expanding its water treatment services across 20 provinces, 5 autonomous regions, and 4 municipalities in mainland China[27] Environmental and Social Responsibility - The company is committed to environmental sustainability and has established policies to ensure efficient resource utilization[97] - The company is focused on sustainable development and has established a Sustainable Development Committee to oversee its initiatives in this area[128] Communication with Shareholders - The company emphasizes effective communication with shareholders through various channels, including interim and annual reports, investor meetings, and social media updates[114] - The company has established procedures for shareholders to propose resolutions at annual general meetings[112] - The company actively communicated with shareholders through various channels, including the annual general meeting and online platforms, to enhance transparency and provide updates on the group's latest developments[116]

Investment Rating - The report maintains an "Add" rating for the company [2] Core Views - The company reported a 14.1% year-on-year increase in revenue for 2023, reaching 24.52 billion RMB, and a 60.5% increase in net profit attributable to shareholders, totaling 1.90 billion RMB [2] - The company plans to distribute a final dividend of 0.087 HKD per share, with a total payout ratio of 75% for the year [2] - The report anticipates that the company may exceed its performance guidance due to the flexibility in profit margins from water price increases and adjustments in overseas debt structure [2] Financial Summary - Revenue for 2023 was 24,519 million RMB, with a projected growth of 5.2%, 4.3%, and 4.8% for 2024, 2025, and 2026 respectively [3] - Net profit attributable to shareholders for 2023 was 1,896 million RMB, with expected growth rates of 6.6%, 10.3%, and 11.9% for the following three years [3] - The EBITDA margin improved by 3.2 percentage points to 36.4% in 2023 [2] - The company’s total assets were reported at 165.5 billion RMB, with net assets of 31.4 billion RMB [4]

Investment Rating - Maintains an "Overweight" rating [1][3] Core Views - The company is the leading water treatment industry player in China with the largest capacity scale [1] - The sewage and water supply businesses are growing steadily, with increasing volumes and prices [1] - Capital expenditure is entering a downward cycle, improving cash flow and supporting stable high dividends [1] - The company is expected to undergo a revaluation due to its high dividend characteristics [1] Financial Performance - 2023 revenue reached RMB 24.519 billion, a 14% year-on-year increase [1] - 2023 net profit attributable to shareholders was RMB 1.896 billion, a 60% year-on-year increase [1] - The company changed its financial reporting currency from HKD to RMB starting from January 1, 2023 [1] - The consolidated gross margin in 2023 was 36.7%, a 2.7 percentage point decrease compared to the previous year, mainly due to the consolidation of Beijing Enterprises Urban Resources Group [1] Business Operations - Total water treatment capacity reached 43.96 million tons/day by the end of 2023, including 24.86 million tons/day for sewage, 14.33 million tons/day for water supply, 4.47 million tons/day for recycled water, and 0.30 million tons/day for seawater desalination [1] - In 2023, the company treated 6.03 billion tons of sewage and recycled water, a 4% year-on-year increase [1] - The average contract price for sewage treatment in mainland China was RMB 1.49/ton in 2023, compared to RMB 1.47/ton in 2022 [1] - Water supply volume reached 2.31 billion tons, a 4% year-on-year increase, with an average contract price of RMB 2.15/ton in mainland China, compared to RMB 2.13/ton in 2022 [1] - Capital expenditure in 2023 was RMB 6.83 billion, slightly higher than the RMB 6.30 billion in 2022, mainly due to the recovery from the impact of the pandemic on water plant construction in 2022 [1] Dividend Policy - The total dividend for 2023 was RMB 1.42 billion, a 1.68% year-on-year increase, with a cash dividend payout ratio of 75% [1] - The company has maintained a stable annual dividend of approximately HKD 1.58 billion for three consecutive years from 2021 to 2023 [1] - The static dividend yield for 2023 was 8.83%, highlighting the company's high dividend characteristics [1] Financial Forecasts - The forecasted net profits for 2024-2026 are adjusted to RMB 1.966 billion (-10%), RMB 2.040 billion (-12%), and RMB 2.150 billion, respectively [1] - The corresponding EPS for 2024-2026 are RMB 0.20, RMB 0.20, and RMB 0.21, respectively [1]

Financial Performance - For the year ended December 31, 2023, the profit attributable to shareholders increased by 60% to RMB 1,895,700,000 from RMB 1,181,400,000 in the previous year[3]. - EBITDA for the year was RMB 8,931,300,000, a 25% increase from RMB 7,158,200,000 last year[3]. - The total revenue for the year was RMB 24,519,374,000, up from RMB 21,484,840,000, representing a growth of approximately 9.5%[4]. - The basic and diluted earnings per share for the year were RMB 18.24 and RMB 18.21, respectively, compared to RMB 11.33 and RMB 11.31 in the previous year[4]. - The company reported a net profit of RMB 3,064,327,000 for the year, compared to RMB 2,335,171,000 in the previous year[5]. - The company reported a pre-tax profit of RMB 4,028,439,000 for the year ended December 31, 2023, compared to RMB 3,265,457,000 for the year ended December 31, 2022[25][32]. - The company's net profit attributable to shareholders for 2023 was RMB 1,895,681,000, a significant increase of 60.5% compared to RMB 1,181,430,000 in 2022[35]. - The total proposed final dividend for 2023 is RMB 1,419,586,000, slightly up from RMB 1,396,137,000 in 2022, maintaining the same per share dividend of 8.7 HKD cents[33]. Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 165,493,193,000, an increase from RMB 161,751,644,000 in the previous year[7]. - The company’s total non-current assets increased to RMB 125,108,357,000 from RMB 120,756,110,000 year-on-year[7]. - As of December 31, 2023, total equity reached RMB 54,133,475,000, an increase of 3.7% from RMB 52,207,300,000 in 2022[8]. - Non-current liabilities totaled RMB 68,861,047,000, up 6.1% from RMB 64,892,125,000 in the previous year[8]. - Current liabilities decreased to RMB 42,498,671,000, down 4.8% from RMB 44,652,219,000 in 2022[8]. - Total liabilities amounted to RMB 111,359,718,000, reflecting a 1.7% increase from RMB 109,544,344,000 in 2022[8]. - The company reported a net current liability of RMB 2,000,000,000 and capital commitments of approximately RMB 18,100,000,000 as of December 31, 2023[9]. - The company’s total borrowings rose to RMB 74,244,700,000 in 2023 from RMB 72,243,900,000 in 2022, reflecting an increase of approximately 2.8%[117]. Revenue Breakdown - The total operating revenue for the year ended December 31, 2023, was RMB 24,519,374,000, representing an increase of 14.5% compared to RMB 21,484,840,000 for the year ended December 31, 2022[25][27]. - Revenue from wastewater and recycled water treatment services was RMB 8,643,409,000 for the year ended December 31, 2023, compared to RMB 8,491,352,000 in the previous year[29]. - The company’s revenue from mainland China was RMB 23,159,277,000, up from RMB 20,155,038,000 in the previous year[27]. - The revenue from urban resource services surged by 131% to RMB 5,057.6 million in 2023, compared to RMB 2,184.9 million in 2022[57]. - The company’s total revenue from technical services and equipment sales decreased by 16% to RMB 2,459.1 million in 2023[57]. Expenses and Costs - The financial expenses for the year ended December 31, 2023, totaled RMB 3,260,857,000, an increase from RMB 2,745,678,000 in the previous year[31]. - The total sales cost for the year ended December 31, 2023, was RMB 15,518,621,000, compared to RMB 13,024,158,000 in the previous year[25][26]. - Management expenses increased to RMB 3,317,400,000 from RMB 2,973,300,000, primarily due to the consolidation of North Control Urban Resources[92]. - Other expenses, including headquarters costs and financial expenses, totaled RMB 3,260,900,000[51]. Cash Flow and Investments - The cash and cash equivalents decreased to RMB 10,215,161,000 from RMB 11,584,201,000 year-on-year[7]. - The company reported a total tax expense of RMB 964,112,000 for 2023, compared to RMB 930,286,000 in 2022, reflecting an increase of 3.6%[33]. - The total capital expenditure for the year amounted to RMB 6,834,800,000, an increase from RMB 6,299,400,000 as of December 31, 2022[119]. - The company issued perpetual capital instruments amounting to RMB 2,000,000,000 during the year, contributing to the increase in equity instruments[110]. Strategic Developments - The company has integrated the concept of "Future New Water Services" into its strategic development, focusing on sustainable innovation and technology[120]. - The company plans to continue expanding its market presence and developing new technologies in the water treatment sector[48]. - The company aims to lead asset-light transformation through a "Technology Development Platform" in 2024[122]. - The company plans to distribute a final dividend of HKD 0.087 per share, pending approval at the annual general meeting on June 5, 2024[129]. Corporate Governance - The company has adhered to all corporate governance codes as per the listing rules for the year ending December 31, 2023[132]. - The audit committee, composed of three independent non-executive directors, has reviewed and approved the financial results for the year ending December 31, 2023[134].