Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 115,410,000, an increase of 5.9% compared to RMB 108,938,000 for the same period in 2023[1] - Gross profit for the same period was RMB 17,855,000, reflecting a growth of 10.3% from RMB 16,193,000 year-over-year[2] - Profit attributable to owners of the company surged to RMB 6,389,000, marking a significant increase of 208.2% from RMB 2,073,000 in the previous year[3] - Basic and diluted earnings per share rose to RMB 0.66, up 164.0% from RMB 0.25 in the prior year[3] - Total comprehensive income for the period was RMB 6,402,000, compared to a loss of RMB 1,297,000 in the same period last year[3] - The adjusted EBITDA for the six months ended June 30, 2024, was RMB 17,941 thousand, up from RMB 13,448 thousand in 2023, marking an increase of approximately 33.5%[28] - The income tax expense for the six months ended June 30, 2024, was RMB 4,896 thousand, compared to RMB 2,922 thousand in 2023, indicating an increase of approximately 67.5%[30] - The company reported a net loss from trade receivables of RMB (976) thousand for the six months ended June 30, 2024, compared to a loss of RMB 1,116 thousand in 2023[29] - The company generated additional income from bank interest and agency fees amounting to RMB 1,257 thousand in 2024, compared to RMB 1,759 thousand in 2023[28] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 29,170,000, compared to RMB 4,362,000 at the end of 2023[4] - Current assets amounted to RMB 1,301,521,000, an increase from RMB 1,288,363,000 at the end of 2023[4] - The company's total equity increased to RMB 1,155,701,000 from RMB 1,137,493,000 at the end of the previous year[5] - The total assets of the group as of June 30, 2024, amounted to RMB 1.3307 billion, an increase of RMB 38 million from RMB 1.2927 billion as of December 31, 2023[61] - The total liabilities of the group as of June 30, 2024, were RMB 175 million, an increase of RMB 19.76 million from RMB 155.52 million as of December 31, 2023[61] - The total amount of current liabilities as of June 30, 2024, is RMB 21,690 thousand, down from RMB 32,665 thousand as of December 31, 2023[45] Revenue Streams - Revenue from water treatment products and equipment was RMB 84,920 thousand for the six months ended June 30, 2024, compared to RMB 63,102 thousand in 2023, indicating a significant increase of approximately 34.7%[26] - Revenue from flue gas treatment products and equipment decreased to RMB 30,490 thousand in 2024 from RMB 45,836 thousand in 2023, reflecting a decline of approximately 33.4%[26] - The group recognizes revenue from providing decentralized disaster recovery storage solutions in the cryptocurrency blockchain, measured at fair value of the cryptocurrency received[25] Corporate Developments - The company plans to change its name to "Turing Artificial Intelligence Technology Group Limited," pending shareholder approval and regulatory consent[53] - The company established a non-wholly owned subsidiary in the U.S. to develop Web 3.0 and AI businesses, generating revenues of USD 11,000 and USD 240,000 from GPU computing rental services[55] - The company entered into a joint venture agreement with PowerMeta to provide decentralized disaster recovery storage solutions, with a commitment to provide up to 1,820,000 Filecoins as collateral[52] - The company has initiated an exclusive agency agreement with PowerMeta to develop GPU computing rental services in Southeast Asia and Australia[54] Governance and Compliance - The company has adhered to the corporate governance code principles, except for specific provisions C.2.1 and C.5.1 during the six months ending June 30, 2024[68] - The company appointed Zhu Duke Li as the new CEO on April 12, 2024, ensuring compliance with the corporate governance code[69] - The audit committee reviewed the group's financial reporting procedures and internal control processes for the six months ending June 30, 2024[67] Financial Management - The group assesses expected credit losses based on past credit loss experiences and adjusts for specific factors related to debtors at the reporting period end[19] - Significant judgments are made in determining the carrying amounts of assets and liabilities, particularly regarding future events and cash flow assumptions[21] - The group is subject to various tax obligations in Hong Kong, China, and the United States, requiring significant judgment in tax provision determinations[22] - The group must assess the withholding tax implications for dividends from subsidiaries established in China, which involves significant assumptions about future market conditions[23] Cryptocurrency and Fair Value - The group holds cryptocurrencies with an indefinite useful life, measured at cost less any accumulated impairment losses, with impairment losses recognized only when recoverable amounts fall below carrying values[11] - Financial liabilities measured at fair value through profit or loss include unsecured borrowings and accrued interest related to cryptocurrencies, with gains or losses recognized in profit or loss[12] - The group recognized an impairment loss of RMB 6,988,000 on cryptocurrency holdings as of June 30, 2024, due to a significant decline in market price[38] - As of June 30, 2024, the fair value of financial liabilities measured at fair value through profit or loss was RMB 25,927 thousand, with a fair value loss of RMB 7,609 thousand during the period[47] Operational Efficiency - The gross profit increased by 10.3% to RMB 17.85 million, with the gross margin improving from 14.9% to 15.5% due to enhanced project portfolio management and efficiency[56] - The company completed four water treatment projects and one flue gas treatment project, generating sales revenue of RMB 115.4 million, with three ongoing projects valued at RMB 223.6 million expected to be completed by the end of 2024[55] - The group has completed the deployment of 14 disaster recovery nodes (DR nodes) and plans to deploy the remaining nodes soon, aiming to provide reliable and efficient data management solutions to clients in finance and technology sectors[59] - The group aims to leverage its expertise in low-carbon economy development and artificial intelligence to enhance product quality and operational efficiency, thereby increasing revenue sources[58]

Financial Performance - The Group generated total revenue of RMB220.3 million in 2023, a 41.6% increase from RMB155.6 million in 2022[17] - Gross profit rose by 56.7% to RMB31.4 million, maintaining a gross profit margin of 12.9%[17] - The net profit for the year was RMB1.5 million, reversing a net loss of RMB0.9 million in 2022[18] - Basic and diluted earnings per share were RMB0.17 cents, compared to a basic loss per share of RMB0.11 cents in 2022[18] - The Group achieved total revenue of RMB 220.3 million in 2023, a 41.6% increase from RMB 155.6 million in 2022[21] - Gross profit rose by 56.7% to RMB 31.4 million, with a gross margin of 12.9%[21] - The Group turned a profit with a net income attributable to shareholders of RMB 1.5 million, compared to a net loss of RMB 0.9 million in 2022[21] Strategic Initiatives - The Group is optimistic about the environmental protection industry, driven by government policies aimed at reducing pollutant emissions and improving ecological quality by 2027[19] - The government targets carbon emissions to peak and decline steadily by 2035, which aligns with the Group's strategic goals[19] - The Group plans to enhance services and improve efficiency by leveraging its expertise and expanding its business portfolio[20] - A strategic cooperation agreement was established with Chengdu Qingshu Technology Co., Ltd to enter the AI market, enhancing innovation and growth opportunities[13] - The Group aims to diversify income streams and achieve sustained growth in line with the evolution of the environmental protection market[20] - The Group's proactive measures in business development contributed to its turnaround and profitability in 2023[12] - The Group entered into a strategic cooperation agreement with Chengdu Qingshu Technology Co., Ltd. to provide accelerated computing services, enhancing business diversification[37] Project Development - The Group completed seven water treatment projects and four flue gas treatment projects in 2023[35] - As of December 31, 2023, the Group had three projects on hand with an aggregate value of approximately RMB 199.1 million, expected to be completed by the end of 2024[36] - The Group completed 7 water treatment projects and 4 flue gas treatment projects during the year[40] - The Group has 3 ongoing projects with a total value of approximately RMB 199.1 million, expected to be completed by the end of 2024[40] Corporate Governance - The Board does not recommend the payment of a final dividend for the year ended December 31, 2023[34] - The Group's management underwent changes, with Mr. Guo Jiannan appointed as Chairman following Mr. Jiang Xin's resignation[38] - The Company has complied with all applicable code provisions of the CG Code throughout the year ended 31 December 2023, except for provisions C.2.1, C.5.1, F.2.2, and D.2.5[60] - The Board comprises six members, including three Executive Directors and three Independent Non-executive Directors, ensuring a balanced composition[71] - Mr. Guo Jiannan was appointed as Chairman on 27 November 2023, assuming both the roles of Chairman and Chief Executive Officer, which deviates from code provision C.2.1[79] - Mr. Zhu Duke Li was appointed as Chief Executive Officer on 12 April 2024, bringing the Company into compliance with code provision C.2.1[80] - The Company has established a corporate governance framework and policies based on the Listing Rules to enhance the Board's governance capabilities[61] - The Directors confirmed compliance with the Company's Securities Dealing Code throughout the year ended December 31, 2023[65] Board Effectiveness - The Board regularly reviews the contributions required from Directors to ensure they are spending sufficient time on their responsibilities[68] - The Company has not noted any incidents of non-compliance with the Securities Dealing Code by employees[66] - The Board believes that having the same individual serve as both Chairman and Chief Executive Officer ensures consistent leadership and effective strategic planning[79] - The Company has a strong independent element on the Board, which can effectively exercise independent judgment[68] - The company appointed Zhu Duke Li as the new CEO effective April 12, 2024, ensuring compliance with corporate governance guidelines[83] - The board maintained compliance with listing rules by having at least three Independent Non-executive Directors, representing over one-third of the board[84][90] - The chairman of the Audit Committee possesses the required professional qualifications and expertise in accounting and financial management[84] Committees and Policies - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[113] - The Audit Committee's main duties include reviewing financial information, risk management, and internal control systems[116] - The Remuneration Committee includes one Executive Director and three Independent Non-executive Directors, maintaining transparency in remuneration decisions[119] - The Remuneration Committee conducted one meeting to review and make recommendations on the remuneration policy and structure of the Company, including the remuneration packages of the Executive Director and senior management[125] - The Audit Committee consists of three Independent Non-executive Directors, ensuring a robust oversight of financial reporting and internal controls[115] Risk Management - The Board is responsible for evaluating and determining the nature and extent of risks in achieving strategic objectives[174] - An ongoing process for identifying, evaluating, and managing significant risks has been established[177] - The Company engaged an external professional firm for internal audit functions to review the adequacy and effectiveness of risk management systems[182] - The annual review of risk management and internal control systems for the year ended December 31, 2023, concluded that these systems are effective and adequate[183] Compliance and Ethics - The company has established a whistleblowing policy for employees to report any misconduct confidentially and anonymously[193] - The company has implemented anti-corruption policies to prevent bribery and corruption internally, with regular training sessions held for all employees[193] - The directors confirm that there are no material uncertainties that may cast significant doubt on the company's ability to continue as a going concern[197] - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards[195] - The company has adopted appropriate accounting policies consistently, except for the revised standards and amendments[195] - The company has established monitoring measures to prevent unauthorized access and use of insider information[194] - The company has a disclosure policy to guide directors and employees in handling confidential information and responding to inquiries[193] Employee and Diversity - As of December 31, 2023, the Group had approximately 89 employees, with competitive salary levels reviewed annually[49] - Total remuneration costs, including Directors' remuneration, for the year ended December 31, 2023, were RMB 12.9 million, slightly down from RMB 13.0 million in 2022[49] - The Company emphasizes the importance of gender diversity, achieving 25.6% female employees[147] - The gender ratio in the workforce, including the Board and senior management, reflects the Company's commitment to gender diversity[146] - The Board achieved a target of at least 20% female Directors, with 1 out of 5 Directors being female, representing 20%[147] - The overall workforce gender ratio is 23.6% female, with 21 out of 89 employees being female[147]

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 220,336 thousand, representing a 41.6% increase compared to RMB 155,568 thousand in 2022[2] - Gross profit for the same period was RMB 28,433 thousand, up 42.0% from RMB 20,024 thousand in the previous year[2] - The company reported a net profit attributable to shareholders of RMB 1,451 thousand, a significant turnaround from a loss of RMB 899 thousand in 2022[2] - Basic and diluted earnings per share improved to RMB 0.17 from a loss of RMB 0.11 in the prior year[2] - The EBITDA for the environmental products and equipment segment was RMB 21,032,000 in 2023, compared to RMB 13,747,000 in 2022, reflecting a growth of 53.1%[11] - The company turned a profit with a net income of RMB 1.5 million for the year ending December 31, 2023, compared to a net loss of RMB 0.9 million in 2022[33] - Other income decreased from RMB 4,459,000 in 2022 to RMB 2,417,000 in 2023, primarily due to a reduction in bank interest income[18] - The total impairment losses recognized amounted to RMB 6,143,000 in 2023, compared to RMB 5,217,000 in 2022[19] - The company incurred financing costs of RMB 2,753,000 in 2023, slightly down from RMB 2,855,000 in 2022[19] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 1,288,363 thousand, compared to RMB 1,250,479 thousand in 2022[5] - Current liabilities increased to RMB 133,637 thousand from RMB 84,438 thousand in the previous year[5] - The company's net asset value rose to RMB 1,137,493 thousand, up from RMB 1,120,631 thousand in 2022[5] - The total liabilities of the group as of December 31, 2023, were RMB 155.2 million, up by RMB 23.2 million from RMB 132 million in 2022[42] - Trade receivables increased to RMB 39.52 million in 2023 from RMB 37.68 million in 2022, with a net amount of RMB 30.11 million after impairment losses[26] - Trade payables rose significantly to RMB 41.67 million in 2023 from RMB 17.91 million in 2022[29] Strategic Initiatives - The company has engaged in environmental protection product sales and construction services in China, indicating a focus on market expansion[6] - The company entered a strategic partnership with Chengdu Qingshu Technology Co., Ltd. in September 2023 to enhance its accelerated computing services, aiming to explore market opportunities in the accelerated computing industry[37] - The group plans to diversify its business through accelerated computing services, utilizing specialized hardware accelerators like GPUs and TPUs, which offer higher computing efficiency than traditional CPUs[40] - The company aims to enhance its environmental services and optimize efficiency to capture opportunities arising from the low-carbon economy and policy directives[38] - The company has initiated plans to establish further strategic partnerships to develop its accelerated computing solutions business in the near future[40] - The group is actively seeking to leverage advanced technologies in the rapidly growing artificial intelligence market to enhance business relevance and viability[41] Corporate Governance - The company is committed to high standards of corporate governance and has adhered to the corporate governance code, with some exceptions noted[52] - The current chairman and CEO, Mr. Guo Jian Nan, has been appointed to both roles, which the board believes will enhance strategic planning efficiency[53] - The company will continue to review the separation of the roles of chairman and CEO as necessary[53] - The company emphasizes the importance of active participation from the majority of directors in board meetings, whether in person or via electronic communication[55] - The board of directors held a total of nine meetings during the year ending December 31, 2023, exceeding the minimum requirement of four meetings[55] Future Outlook - The company will hold its annual general meeting on May 17, 2024, to discuss and approve the final results for the year ending December 31, 2023, and any proposed final dividends[57] - The annual report for the year ending December 31, 2023, will be published on the company's website and the Hong Kong Stock Exchange website at an appropriate time[60] - The company has ensured that the chairman will strive to attend all future shareholder meetings[56] - The company has established a clear timeline for the suspension of share transfer registration to facilitate participation in the annual general meeting[58] Financial Position - The total equity of the group was RMB 1.1375 billion as of December 31, 2023, compared to RMB 1.1206 billion in 2022, indicating a stable financial position[42] - The group has no foreign currency bank liabilities or financial derivatives for hedging foreign exchange risks as of December 31, 2023, maintaining a conservative financial policy[43]

Financial Performance - In the first half of 2023, the total revenue of Pan Asia Environmental Protection Group Limited was RMB 108.9 million, an increase of 81.5% year-on-year from RMB 60.0 million in the same period of 2022[10]. - Gross profit rose significantly by 116.9% to RMB 16.2 million, with the gross profit margin improving to 14.9% from 12.5% in the previous year[10]. - Profit attributable to owners of the Company amounted to RMB 2.1 million, reversing a net loss of RMB 2.1 million recorded in the same period of 2022[14]. - Revenue for the six months ended June 30, 2023, was RMB 108,938,000, a 81.5% increase from RMB 59,960,000 in the same period of 2022[71]. - Gross profit for the same period was RMB 16,193,000, compared to RMB 7,466,000 in 2022, reflecting a significant improvement[71]. - Profit before taxation for the six months ended June 30, 2023, was RMB 4,995,000, a recovery from a loss of RMB 2,107,000 in the previous year[71]. - Total comprehensive loss for the period attributable to owners of the Company was RMB 1,297,000, a significant reduction from RMB 5,988,000 in 2022[71]. - Adjusted EBITDA for the same period was RMB 13,448,000, up 179.5% from RMB 4,822,000 year-on-year[127]. Project and Operational Updates - The Group completed 3 water treatment-related projects and 3 flue gas treatment projects during the reporting period[20]. - As of June 30, 2023, the Group had 6 projects on hand with an aggregate value of work to be completed amounting to approximately RMB 270.8 million (tax inclusive)[21]. - The Group's environmental products and equipment segment accounted for 100% of total revenue during the reporting period[20]. - The Group's operating segments are divided into two main categories: (i) EP products and equipment and (ii) EP construction engineering services[105]. Financial Position - As of June 30, 2023, total assets amounted to RMB1,268.3 million, compared to RMB1,252.6 million as of December 31, 2022, reflecting a growth of approximately 1.3%[29]. - Total liabilities increased to RMB149.0 million as of June 30, 2023, up by RMB17.0 million from RMB132.0 million as of December 31, 2022, representing a growth of about 12.9%[29]. - The total equity as of June 30, 2023, was RMB1,119.3 million, slightly down from RMB1,120.6 million as of December 31, 2022[29]. - The gearing ratio increased to 9.7% as of June 30, 2023, compared to 8.9% as of December 31, 2022[29]. - Current assets rose to RMB 1,264,516,000 as of June 30, 2023, compared to RMB 1,250,479,000 at the end of 2022[73]. - The company's total equity attributable to owners as of June 30, 2023, was RMB 1,119,334,000, a slight decrease from RMB 1,123,629,000 at the end of June 2022[77]. Corporate Governance - The Company did not recommend payment of an interim dividend for the six months ended June 30, 2023, reserving capital for business development[19]. - The audit committee, composed of three independent non-executive directors, reviewed the group's financial reporting procedures and internal control systems for the six months ended June 30, 2023[56]. - The roles of Chairman and Chief Executive Officer were separated on March 16, 2023, with Mr. Guo Jiannan appointed as CEO, enhancing corporate governance compliance[63]. - The Company has established an audit committee to review financial reporting processes and internal controls, ensuring compliance with governance standards[60]. Market and Industry Outlook - The environmental protection industry is expected to benefit from the Chinese government's focus on high-quality environmental governance and pollution control[12]. - The demand for eco-friendly and low-carbon solutions continues to grow, contributing to the Group's revenue increase[13]. - The Group aims to enhance its environmental business and optimize efficiency to maximize benefits for itself, clients, and the environment[18]. - The Group aims to strengthen its environmental protection business and expand its portfolio to capture emerging market opportunities, contributing positively to the environment and maximizing shareholder returns[25][28]. Employee and Remuneration - As of June 30, 2023, the Group had approximately 85 employees, with competitive salary levels reviewed annually[39]. - Total remuneration cost for the six months ended June 30, 2023, was RMB8.9 million, an increase from RMB6.3 million for the same period in 2022, indicating a rise of approximately 41.3%[39]. Cash Flow and Investments - For the six months ended June 30, 2023, the net cash used in operating activities was RMB (3,647,000), a significant improvement compared to RMB (29,655,000) for the same period in 2022[78]. - The net cash generated from investing activities for the six months ended June 30, 2023, was RMB 1,597,000, compared to RMB 2,132,000 in the previous year[78]. - The net cash generated from financing activities was RMB 4,298,000 for the six months ended June 30, 2023, slightly down from RMB 4,556,000 in 2022[78]. - As of June 30, 2023, cash and cash equivalents amounted to RMB 1,204,941,000, an increase from RMB 1,199,105,000 at the same date in 2022[78]. Related Party Transactions - Related party transactions included amounts owed to Mr. Jiang Xin and Mr. Jiang Quanlong, totaling RMB 20,118,000 as of June 30, 2023[189]. - Related interest expenses for the six months ended June 30, 2023, were RMB 570,000, compared to RMB 546,000 for the same period in 2022[189].

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，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：556） 截至二零二三年六月三十日止六個月之 中期業績公告 財務摘要： 截至六月三十日止六個月 二零二三年 二零二二年 變動 人民幣千元 人民幣千元 （未經審核） （未經審核） 收入 108,938 59,960 82% 毛利 16,193 7,466 117% 本公司擁有人應佔期內 溢利╱（虧損） 2,073 (2,107) -198% 每股盈利╱（虧損） ...

Financial Performance - The Group generated total revenue of RMB 155.6 million in 2022, a surge of 307.7% compared to RMB 38.2 million in 2021[13] - Gross profit increased by 579.2% to RMB 20.0 million, with a gross profit margin of 12.9%, up from 7.7% in 2021[13] - The Group reported a loss attributable to owners of RMB 0.9 million in 2022, compared to a profit of RMB 8.3 million in 2021[13] - Basic loss per share was RMB 0.11 cents, a decline from basic earnings per share of RMB 0.99 cents in 2021[13] - The Group experienced a net loss of RMB 5.2 million in other net gains, primarily due to impairment losses on trade receivables and contract assets[13] Market Opportunities - The PRC government aims to achieve carbon emissions peaking before 2030 and carbon neutrality before 2060, which presents opportunities for the Group in sustainable business development[12] - The Group plans to explore new market opportunities and potential acquisitions in high-growth industries to maximize shareholder returns[18] - The PRC's eco-friendly and low-carbon circular economic development system is expected to favor the environmental protection industry, leading to optimistic growth prospects for the Group[17] - The Group remains optimistic about short-term prospects due to increasing environmental protection demands driven by national policies[20] Project and Asset Management - In 2022, the Group's revenue from the sale of environmental protection (EP) products and equipment was RMB 155.6 million, a significant increase from RMB 37.0 million in 2021, accounting for 100% of total revenue[30] - The Group completed nine water treatment-related projects in 2022, with no revenue generated from EP construction engineering design services, which had contributed RMB 1.1 million in 2021[30] - As of December 31, 2022, the Group had three projects on hand with an aggregate value of approximately RMB 56.4 million, expected to be completed by the end of 2023[31] - The Group's total assets increased to RMB 1,252.6 million as of December 31, 2022, up from RMB 1,230.1 million in 2021[32] - Total liabilities rose to RMB 132.0 million as of December 31, 2022, compared to RMB 100.4 million in 2021[32] - The Group's total equity decreased to RMB 1,120.6 million in 2022 from RMB 1,129.6 million in 2021, with a gearing ratio of 8.9%[32] - Cash and cash equivalents amounted to RMB 1,202.7 million as of December 31, 2022, down from RMB 1,222.1 million in 2021[32] Corporate Governance - The Company is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[50][54] - The Board of Directors is responsible for promoting the Company's success by directing and supervising its affairs[58] - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for three specific provisions[53] - The Board consists of five members, including two Executive Directors and three Independent Non-executive Directors, ensuring a balanced composition[62] - The Company has complied with the Listing Rules by maintaining at least three Independent Non-executive Directors, representing at least one-third of the Board[68] Board Structure and Independence - Mr. Jiang Xin served as both Chairman and Chief Executive Officer until March 16, 2023, when Mr. Guo Jiannan was appointed as CEO, properly separating the roles[63][64] - The Audit Committee is chaired by Mr. Leung Shu Sun, who possesses the required professional qualifications and expertise in accounting and financial management[68] - The Company has established a Board Independence Evaluation Mechanism to enhance Board effectiveness and ensure independent judgment[70] - All Directors completed an independence evaluation during the year ended December 31, 2022, with satisfactory results[73] - The Company received written annual confirmations of independence from all Independent Non-executive Directors, affirming their independence[69] Risk Management - The Company has established a risk management process that includes regular internal control assessments to identify potential risks affecting business operations[165] - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[161] - An external professional firm was engaged to provide internal audit functions and review the adequacy and effectiveness of risk management systems[170] - The annual review of risk management and internal control systems for the year ended December 31, 2022, concluded that these systems are effective and adequate[171] - The Company has a Whistleblowing Policy in place to allow employees to confidentially raise concerns about financial reporting and internal control issues[172] Diversity and Inclusion - The Company has adopted a Board Diversity Policy to achieve diversity at the Board level, recognizing it as essential for maintaining competitive advantage[120] - The Nomination Committee is committed to diversity at all levels and considers various aspects, including gender, age, cultural background, and professional qualifications when assessing Board composition[125] - The Board aims to achieve at least 16.7% female Directors by December 31, 2024, with current representation at 0%[132] - The overall workforce gender ratio is 22.4% female and 77.6% male, with 19 female employees out of 85 total[132] - The gender ratio in senior management is currently 0% female, with 8 male members[132] Employee and Director Remuneration - As of December 31, 2022, the total remuneration cost, including Directors' remuneration, was RMB 13.0 million, an increase from RMB 12.5 million in 2021[40][43] - The Group had approximately 90 employees as of December 31, 2022, with salaries maintained at competitive levels and reviewed annually[40][43] - The remuneration of senior management (excluding Executive Director) during the year falls within the following bands: 2 individuals earned between HK$0 to HK$1,000,000 and 1 individual earned between HK$1,500,001 to HK$2,000,000[112] - The Company’s remuneration policy ensures that remuneration is based on skills, knowledge, responsibilities, and involvement in the Company’s affairs[113] Shareholder Communication - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[199] - All resolutions at general meetings will be voted on by poll, with results posted on the company's and Stock Exchange's websites[200]

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，概不對因本公告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。 （於開曼群島註冊成立之有限公司） （股份代號：556） 截至二零二二年十二月三十一日止年度之 全年業績公告 財務摘要： 二零二二年 二零二一年 變動 人民幣千元 人民幣千元 收入 155,568 38,158 307.7% 毛利 20,024 2,948 579.2% 本公司擁有人應佔年內（虧損）╱溢利 (899) 8,300 NM 每股（虧損）╱盈利 （以每股人民幣分列示） 基本及攤薄 (0.11) 0.99 NM ...

Financial Performance - In the first half of 2022, the Group generated total revenue of RMB60.0 million, a 202.0% increase compared to RMB19.9 million in the same period of 2021[30]. - Gross profit surged by 625.6% to RMB7.5 million, with the gross profit margin improving to 12.5% from 5.2% in the previous year[30]. - The Group recorded a net loss of RMB2.1 million, a significant decline from a net profit of RMB15.6 million in the first half of 2021, primarily due to impairment losses on trade and other receivables[33]. - Revenue for the six months ended June 30, 2022, was RMB 59,960,000, representing a significant increase of 201% compared to RMB 19,857,000 in the same period of 2021[98]. - Gross profit for the same period was RMB 7,466,000, up from RMB 1,029,000, indicating a gross margin improvement[100]. - Loss before taxation for the six months ended June 30, 2022, was RMB 2,107,000, compared to a profit of RMB 15,550,000 in the prior year[102]. - Total comprehensive loss for the period attributable to owners of the Company was RMB 5,988,000, a decline from a comprehensive income of RMB 16,397,000 in the previous year[107]. - Basic and diluted loss per share for the period was RMB (0.25), compared to earnings per share of RMB 1.85 in the same period last year[107]. Revenue Segmentation - The environmental products and equipment segment accounted for 100% of total revenue, generating approximately RMB60.0 million during the reporting period[37]. - For the six months ended 30 June 2022, the revenue from EP products and equipment was approximately RMB60.0 million, a significant increase from RMB19.3 million for the same period in 2021, accounting for 100% of the Group's total revenue[40]. - Revenue from the sale of water treatment products and equipment for the six months ended June 30, 2022, was RMB 59,960 thousand[146]. - Revenue from water treatment products and equipment for the six months ended June 30, 2021, was RMB 19,261,000[152]. - Design services contributed RMB 596,000 to the total revenue for the same period[152]. Operational Challenges - The Group's operational challenges were exacerbated by the resurgence of COVID-19 cases and geopolitical crises affecting the business environment in China[31]. - The gross profit margin improvement was attributed to the Group's efforts to expand business and ensure smooth operations amid the pandemic[33]. - The Group aims to explore new market opportunities and diversify its business portfolio to maintain steady growth[41]. Assets and Liabilities - The Group's total assets as of 30 June 2022 amounted to RMB1,247.0 million, compared to RMB1,230.1 million as of 31 December 2021[44]. - Total liabilities increased to RMB123.4 million as of 30 June 2022, up by RMB23.0 million from RMB100.4 million as of 31 December 2021[44]. - The Group's total equity as of 30 June 2022 was RMB1,123.6 million, slightly down from RMB1,129.6 million as of 31 December 2021[44]. - The gearing ratio as of 30 June 2022 was 8.0%, an increase from 7.0% as of 31 December 2021[44]. - Cash and cash equivalents as of 30 June 2022 were RMB1,199.1 million, a decrease from RMB1,222.1 million as of 31 December 2021[44]. Dividends and Shareholder Information - No interim dividend was recommended for the six months ended June 30, 2022, to reserve funds for business development[36]. - The Group did not recommend payment of an interim dividend for the six months ended 30 June 2022, similar to the previous year[39]. - As of June 30, 2022, Mr. Jiang Xin holds a total of 356,568,000 shares, representing approximately 42.45% of the issued share capital of the company[63]. - Mr. Jiang Xin also has a short position of 266,568,000 shares, which accounts for about 31.73% of the issued share capital[63]. - The company has adopted a strict Securities Dealing Code applicable to all employees likely to possess inside information, with no incidents of noncompliance reported[63]. Compliance and Governance - The company confirmed compliance with its Securities Dealing Code by all Directors for the six months ended June 30, 2022[63]. - The company has complied with the Corporate Governance Code provisions throughout the six months ended June 30, 2022, except for provisions C.2.1, C.5.1, and F.2.2[91]. - Mr. Jiang Xin has served as both Chairman and Chief Executive Officer since September 15, 2017, which the board believes maintains efficient business operations[92]. - The company only held two board meetings in the second and fourth quarters due to not announcing quarterly results, which it does not consider necessary[93]. Cash Flow and Investments - The company reported other net losses of RMB 2,122,000 for the period, contrasting with a gain of RMB 21,750,000 in the previous year[101]. - For the six months ended June 30, 2022, the net cash used in operating activities was RMB (29,655) thousand, compared to RMB (8,878) thousand for the same period in 2021, indicating a significant increase in cash outflow[116]. - The net cash generated from investing activities was RMB 2,132 thousand for the six months ended June 30, 2022, slightly down from RMB 2,169 thousand in the previous year[116]. - The net cash generated from financing activities decreased to RMB 4,556 thousand in the first half of 2022 from RMB 6,032 thousand in the same period of 2021[116]. - The total cash and cash equivalents at June 30, 2022, amounted to RMB 1,199,105 thousand, a decrease from RMB 1,219,098 thousand at the end of June 2021[116]. Segment Performance - The Group operates in two main segments: EP products and equipment, and EP construction engineering services[154]. - The Group's performance is monitored based on adjusted EBITDA, which excludes certain corporate costs[157]. - Reportable segment revenue from external customers for the six months ended June 30, 2022, was RMB 59,960,000, compared to RMB 19,857,000 for the same period in 2021, representing a significant increase of 201.5%[169]. - Adjusted EBITDA for the reportable segment was RMB 22,675,000 for the six months ended June 30, 2022, compared to RMB 22,704,000 in the previous year, indicating a slight decrease of 0.1%[166].

Financial Performance - Total revenue from operations amounted to RMB19.9 million, a decrease of 16.4% compared to RMB23.7 million in the same period last year[17]. - Sales of water treatment products and equipment generated RMB19.3 million for the Group[17]. - Gross profit decreased by 10.0% to RMB1.0 million, while gross profit margin increased to 5.2% from 4.8%[17]. - The Group achieved a net profit of RMB15.6 million, turning around from a net loss of RMB12.2 million in the previous period[17]. - Basic earnings per share was RMB1.85 cents[17]. - Revenue for the six months ended 30 June 2021 was RMB 19,857,000, a decrease of 16.5% compared to RMB 23,717,000 for the same period in 2020[68]. - Gross profit for the same period was RMB 1,029,000, down from RMB 1,149,000, resulting in a gross margin of approximately 5.2%[68]. - Profit before taxation for the six months ended 30 June 2021 was RMB 15,550,000, a significant recovery from a loss of RMB 12,237,000 in the prior year[68]. - Total comprehensive income for the period attributable to owners of the Company was RMB 16,397,000, compared to a loss of RMB 13,555,000 in the same period of 2020[68]. - Basic and diluted earnings per share for the six months ended 30 June 2021 was RMB 1.85, compared to a loss per share of RMB 1.46 in the previous year[68]. Market and Industry Outlook - The Company is positioned to benefit from China's commitment to peak carbon emissions before 2030 and achieve carbon neutrality by 2060, providing strong market prospects for the environmental protection industry[16]. - The Ministry of Ecology and Environment has set targets for nationwide greenhouse gas emission controls, enhancing the regulatory framework for the industry[16]. - The environmental protection industry is expected to see significant growth opportunities as major cities align their five-year plans with national emission reduction goals[16]. - The Company continues to focus on sustainable development and green recovery measures in response to the post-pandemic economic landscape[15]. Assets and Liabilities - The Group's total assets as of June 30, 2021, amounted to RMB1,227.4 million, compared to RMB1,265.0 million as of December 31, 2020[22]. - The Group's total liabilities decreased to RMB91.9 million as of June 30, 2021, down RMB54.0 million from RMB145.9 million as of December 31, 2020[22]. - The Group's total equity increased to RMB1,135.5 million as of June 30, 2021, from RMB1,119.1 million as of December 31, 2020[22]. - The Group's cash and cash equivalents were RMB1,219.1 million as of June 30, 2021, slightly down from RMB1,219.8 million as of December 31, 2020[22]. - As of 30 June 2021, total assets less current liabilities amounted to RMB 1,138,524,000, an increase from RMB 1,122,436,000 as of 31 December 2020[71]. - Current liabilities decreased to RMB 88,842,000 from RMB 142,586,000 as of 31 December 2020, indicating improved liquidity[71]. Shareholder Information - As of June 30, 2021, Mr. Jiang Xin holds a beneficial interest of 356,568,000 shares, representing approximately 42.45% of the issued share capital[38]. - Mr. Jiang Xin also has a short position of 266,568,000 shares, which accounts for about 31.73% of the issued share capital[38]. - Mr. Fan Yajun holds a beneficial interest of 2,500,000 shares, representing approximately 0.3% of the issued share capital[38]. - Mr. Lai Wing Lee has a beneficial interest of 500,000 shares, which is about 0.06% of the issued share capital[38]. - Mr. Leung Shu Sun holds a beneficial interest of 500,000 shares, also representing approximately 0.06% of the issued share capital[38]. - The total number of issued shares in Praise Fortune Limited as of June 30, 2021, was 129,215 shares[41]. - Praise Fortune Limited holds a beneficial interest of 356,568,000 shares, representing approximately 42.45% of the issued share capital, and a short position of 266,568,000 shares, representing approximately 31.73%[60]. - Caitong International Asset Management Co., Limited has a long position of 250,000,000 shares, accounting for approximately 29.76% of the issued share capital[60]. - The company’s shareholding structure includes interests held by the Ministry of Finance of Zhejiang Province, reflecting government involvement[60]. Employee and Remuneration - The total remuneration cost for employees, including Directors' remuneration, was RMB6.4 million for the six months ended June 30, 2021, compared to RMB5.9 million for the same period in 2020[26]. - The Group has approximately 87 employees and maintains competitive salary levels, reviewed annually[26]. - Key management personnel remuneration for the six months ended June 30, 2021, was RMB 1,030,000, a decrease of approximately 4.7% from RMB 1,081,000 in 2020[199]. - Short-term employee benefits for the six months ended June 30, 2021, were RMB 1,016,000, down from RMB 1,072,000 in 2020, indicating a decline of approximately 5.2%[199]. - Post-employment benefits increased to RMB 14,000 in the first half of 2021, compared to RMB 9,000 in the same period of 2020, representing a growth of approximately 55.6%[199]. Compliance and Governance - The Company has confirmed compliance with its Securities Dealing Code by all Directors throughout the six months ended June 30, 2021[31]. - No incidents of noncompliance with the Company's Securities Dealing Code by employees were noted[31]. - The audit committee has reviewed the interim results and report for the six months ended June 30, 2021, ensuring compliance with financial reporting standards[64]. - The financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with applicable disclosure requirements[87]. Segment Information - The company is primarily engaged in the sales of environmental protection products and equipment, as well as undertaking environmental construction engineering services in China[86]. - The revenue from contracts with customers is disaggregated into two main segments: EP products and equipment, and EP construction engineering services[107]. - The Group's operating segments are organized into two main divisions: (i) EP products and equipment and (ii) EP construction engineering services, all located in the PRC[107]. - The adjusted EBITDA for the reportable segments was RMB 22,675,000, resulting in a total adjusted EBITDA of RMB 22,704,000[112]. - The company provided segment information concerning revenue, depreciation, amortization, and impairment losses to assess segment performance and allocate resources[112]. Cash Flow and Investments - Net cash used in operating activities for the six months ended June 30, 2021, was RMB (2,444), a significant decline from RMB 16,270 generated in the same period of 2020[78]. - The company reported a net cash generated from investing activities of RMB 2,169 for the six months ended June 30, 2021, compared to RMB 1,907 in the same period of 2020, indicating a growth of 13.7%[78]. - The Group acquired property, plant, and equipment with a total cost of approximately RMB 5,000 for the six months ended June 30, 2021, compared to nil for the same period in 2020[165]. Impairment and Provisions - The net impairment loss recognized on trade receivables for the six months ended June 30, 2021 was RMB 21,720,000[112]. - The Group's provision for impairment loss on trade receivables was RMB 219 as of June 30, 2021, compared to RMB 21,939 as of December 31, 2020[167].

Financial Performance - For the year ended December 31, 2019, the Group achieved total revenue from continuing operations of RMB79.8 million, a decline of 51% compared to RMB162.2 million in 2018[16]. - Gross profit decreased to approximately RMB3.5 million, with a gross profit margin of 4.4%, down from RMB20.4 million and 12.5% in 2018 respectively[16]. - The Group recorded a net loss of RMB58.6 million, significantly higher than the net loss of RMB19.4 million in 2018, primarily due to intense competition in the environmental protection industry in the PRC[16]. - The basic loss per share was RMB6.98 cents, compared to RMB2.30 cents in 2018[16]. - Total revenue from continuing operations for the year ended December 31, 2019, was RMB 79.8 million, a decrease of 51% compared to RMB 162.2 million in 2018[17]. - Gross profit decreased to approximately RMB 3.5 million, with a gross profit margin of 4.4%, down from RMB 19.4 million and 12.5% in 2018[17]. - The Group recorded a net loss of RMB 58.6 million, compared to a net loss of RMB 19.4 million in 2018, primarily due to intense competition in the environmental protection industry in China[17]. - The Group reported a loss attributable to equity holders of RMB 58,624,000 for the year ended 31 December 2019, compared to a loss of RMB 19,357,000 in 2018[149]. Revenue Sources - Sales of flue gas treatment products and equipment generated approximately RMB 72.3 million, accounting for about 90.6% of total revenue[32]. - Revenue from water treatment products and equipment was approximately RMB 6.5 million, representing about 8.1% of total revenue[32]. - The Group completed 1 EP construction engineering project, generating revenue of approximately RMB 1.0 million, which accounted for about 1.3% of total revenue[32]. Assets and Liabilities - As of December 31, 2019, total assets amounted to RMB1,261.1 million, a decrease of RMB30.0 million from RMB1,291.1 million in 2018[34]. - Total liabilities increased to RMB116.9 million as of December 31, 2019, up by RMB29.8 million from RMB87.1 million in 2018[34]. - Total equity as of December 31, 2019, was RMB1,144.2 million, down from RMB1,204.0 million in 2018[34]. - The gearing ratio as of December 31, 2019, was 4.3%, compared to 4.0% in 2018[34]. - Cash and cash equivalents increased to RMB1,203.1 million as of December 31, 2019, from RMB1,037.9 million in 2018[34]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the year ended December 31, 2019, except for specific provisions regarding board meetings and the separation of roles of Chairman and CEO[42]. - The board consists of five members, including one Executive Director, one Non-executive Director, and three Independent Non-executive Directors, ensuring a diverse governance structure[45]. - The company received written annual confirmations of independence from all Independent Non-executive Directors, affirming their compliance with independence guidelines[46]. - The roles of Chairman and Chief Executive Officer have been held by Mr. Jiang Xin since September 15, 2017, which the board believes supports efficient business operations[46]. - The company has a service contract with its Non-executive Director that is renewable annually, ensuring continuity in governance[46]. - The company emphasizes high levels of corporate governance to protect shareholder interests and enhance corporate value[42]. Risk Management - The Board is responsible for evaluating and determining the nature and extent of risks in achieving the Company's strategic objectives[79]. - The Company has developed various risk management procedures and guidelines for key business processes, including project management and financial reporting[80]. - Internal control assessments are conducted regularly across all divisions to identify potential risks impacting the business[81]. - The management reported to the Board on the effectiveness of risk management and internal control systems for the year ended December 31, 2019[84]. - The Company engaged an external professional firm for independent review of the adequacy and effectiveness of risk management systems[84]. Strategic Plans - The Group plans to enhance cost control and efficiency management to optimize resource allocation amid fierce competition[14]. - The Group will evaluate other investment opportunities and potential mergers and acquisitions to diversify its business and expand revenue streams[14]. - The Group aims to consolidate its position in the environmental protection industry while pursuing business diversification strategies[9]. - The Group is committed to seeking growth and development opportunities in the environmental protection industry in China[14]. - The Group aims to explore strategic partnerships, mergers, and acquisitions to mitigate risks and seize growth opportunities amid a challenging global economic environment[25]. Shareholder Communication - The Company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[114]. - The Company maintains ongoing dialogue with shareholders through annual general meetings and other meetings[114]. - All resolutions at general meetings will be voted on by poll, with results posted on the Company's and Stock Exchange's websites[97]. - Shareholders holding at least 10% of the paid-up capital can requisition an Extraordinary General Meeting[98]. - The Company will not normally address verbal or anonymous inquiries from shareholders[105]. Employee and Director Information - The Group had approximately 106 employees as of December 31, 2019, with salaries reviewed annually[35]. - The attendance record of Directors at Board and Committee meetings shows full attendance for most members, with Jiang Xin attending 12 out of 12 Board meetings[73]. - The Company is committed to ensuring recruitment practices at all levels are structured to consider a diverse range of candidates[63]. - The Company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[54].