Financial Performance - For the fiscal year ended December 31, 2022, the group's revenue was approximately RMB 1,729.60 million, an increase of 1.85% compared to RMB 1,698.15 million in 2021[2] - The net profit attributable to equity shareholders for the fiscal year was approximately RMB 328.66 million, a decrease of 43.20% from RMB 578.61 million in 2021[2] - Basic earnings per share for 2022 was RMB 0.18, down from RMB 0.32 in 2021[2] - The gross profit for the fiscal year was RMB 910.14 million, compared to RMB 1,015.04 million in 2021, indicating a decline in profitability[3] - Operating profit for the year was RMB 497.56 million, down from RMB 739.98 million in the previous year[3] - Total comprehensive income for the year was RMB 360.46 million, significantly lower than RMB 646.58 million in 2021[5] - The total revenue for the year 2022 reached RMB 1,729,598 thousand, an increase from RMB 1,698,153 thousand in 2021, representing a growth of approximately 1.84%[12] - The pre-tax profit for the year ended December 31, 2022, was RMB 92,026,000, an increase from RMB 52,079,000 in 2021, reflecting a growth of 76.7%[16] - The pre-tax profit decreased by 41.16% to RMB 410.53 million compared to RMB 697.71 million in 2021[45] Revenue Breakdown - Revenue from industrial solid waste disposal services amounted to RMB 463,153 thousand in 2022, compared to RMB 456,179 thousand in 2021, showing a growth of about 1.69%[12] - Revenue from hazardous waste disposal services, specifically general hazardous waste, was RMB 1,057,841 thousand in 2022, slightly increasing from RMB 1,052,033 thousand in 2021, indicating a growth of approximately 0.55%[12] - The industrial hazardous waste disposal service generated revenue of RMB 1,241.85 million, a slight decrease of 0.01% year-on-year[46] - The general hazardous waste segment achieved revenue of RMB 1,057.84 million, reflecting a growth of 0.55% due to new projects launched in various locations[46] - The revenue from oil sludge disposal was RMB 124.28 million, a decrease of 5.84% year-on-year due to reduced intake from oil fields[47] - The revenue from fly ash disposal was RMB 59.73 million, an increase of 3.07% year-on-year primarily due to the commissioning of the Yiyang project[47] - The revenue from industrial solid waste disposal services was RMB 463.15 million, an increase of 1.53% year-on-year driven by faster growth in projects in various regions[48] Expenses and Costs - Employee costs rose to RMB 386,393,000 in 2022 from RMB 276,801,000 in 2021, marking an increase of 39.5%[17] - Service costs increased to RMB 819,458,000 in 2022, compared to RMB 683,118,000 in 2021, representing a growth of 19.9%[19] - The interest expense on loans and borrowings was RMB 129,305,000 in 2022, up from RMB 89,823,000 in 2021, which is an increase of 43.9%[16] - The depreciation of owned properties, plants, and equipment amounted to RMB 205,644,000 in 2022, compared to RMB 148,274,000 in 2021, reflecting a rise of 38.6%[19] - The tax expense for the year was RMB 50,068,000 in 2022, slightly down from RMB 51,136,000 in 2021, showing a decrease of 2.1%[20] - The group's administrative expenses were RMB 317.96 million, an increase of 39.71% year-on-year due to higher labor costs and listing expenses[52] Assets and Liabilities - Non-current assets, including property, plant, and equipment, increased to RMB 6,366.19 million from RMB 5,170.50 million in 2021[6] - Current liabilities decreased to RMB 1,319.50 million from RMB 1,703.50 million in the previous year, indicating improved liquidity[6] - The company's total assets, net of current liabilities, increased to RMB 6,557.49 million from RMB 5,515.55 million in 2021[6] - As of December 31, 2022, total assets were RMB 8,536.57 million, an increase of RMB 1,026.35 million from the previous year[55] - As of December 31, 2022, the group's non-current liabilities amounted to RMB 3,169.86 million, an increase of 30.68% compared to the previous year, primarily due to the addition of long-term loans during the reporting period[58] - The group's current liabilities decreased by 0.78% to RMB 1,979.08 million, mainly due to a reduction in income tax payable and trade payables[58] - The group's current ratio as of December 31, 2022, was 0.67, down from 0.85 at the end of the previous year, while the debt-to-equity ratio increased to 1.11 from 0.99[58] Cash Flow - The company's cash and cash equivalents at the end of 2022 were RMB 65,919,000, a decrease from RMB 68,839,000 in 2021, indicating a decline of about 4%[25] - The net cash generated from operating activities was RMB 542.99 million, a decrease of RMB 224.73 million compared to the previous year, primarily due to relaxed credit terms for customers during the pandemic[65] - The net cash used in investing activities was RMB 1,407.37 million, down RMB 774.70 million year-on-year, mainly due to reduced payments for the purchase of properties, plants, and equipment[66] - The net cash generated from financing activities was RMB 541.32 million, a decrease of RMB 830.36 million year-on-year, primarily due to loan repayments[67] - As of December 31, 2022, the group's bank loan balance was RMB 3,774.69 million, an increase of RMB 730.83 million from the previous year, mainly due to new 1-2 year bank loans[62] Strategic Initiatives - The company continues to focus on improving its solid waste and hazardous waste disposal solutions as its main operational strategy[13] - The company aims to enhance its market layout and increase market share by actively expanding projects and ensuring safe production[75] - The company is focusing on optimizing its labor management model and improving its compensation performance evaluation system[73] - The company will strengthen communication with the government and large waste-to-energy enterprises to ensure the successful implementation of key projects[76] - The company is committed to developing a diversified and professional training system to enhance professional skills and talent management[73] - The company emphasizes the integration of traditional disposal methods with cement kiln operations to improve market coverage[76] - The company is focusing on deepening the sludge disposal industry market, prioritizing key regions such as the Yangtze River Delta and Beijing-Tianjin-Hebei[77] - The company aims to enhance market share and customer resource acquisition, actively collaborating with large waste disposal enterprises[78] - The company is committed to improving operational quality and enhancing core competitiveness through market integration and resource consolidation[78] - The company emphasizes strict control over project construction timelines and quality, aiming to reduce construction costs and create model projects[79] Corporate Governance - The board of directors recommended not to declare a final dividend for the fiscal year ended December 31, 2022[2] - The annual general meeting of shareholders is scheduled for June 27, 2023[80] - The company confirms compliance with corporate governance codes since its listing date on March 30, 2022[82] - The audit committee has reviewed the company's annual performance for the year ending December 31, 2022, with no objections to the accounting practices used[85] - The performance announcement and annual report will be available on the company's and the stock exchange's websites[86]

本中期報告的中、英文版本已登載於本公司網站http://www.conchenviro.com（「本公司網站」）。已 選擇或被視為同意透過本公司網站收取本公司的公司通訊（「公司通訊」）的股東，如因任何理由在收 取或下載於本公司網站登載的公司通訊有任何困難，只要提出要求，均可立刻獲免費發送公司通訊 的印刷本。 股東可隨時更改收取公司通訊的方式的選擇（即收取公司通訊的印刷本，或透過本公司網站取得公 司通訊）。 股東可於任何時間以書面通知本公司的股份過戶登記處香港中央證券登記有限公司，地址為香港灣 仔皇后大道東183號合和中心17樓1712–1716室提出收取本中報的要求及╱或更改收取公司通訊的 方式的選擇。 目錄 釋義 | 一、公司資料 | 5 | | --- | --- | | 二、財務資料摘要 | 7 | | 三、業務回顧與展望 | 8 | | 四、管理層討論及分析 | 2 0 | | 五、其他資料 | 3 1 | | 六、未經審核中期財務報告 | 4 0 | 2 2 中國海螺環保控股有限公司 釋義 戰略、可持續發展及風險管理委員會： 董事會轄下的戰略、可持續發展及風險管理委員會 本報告中，除非文義另有所指， ...

Financial Performance - China Conch Environment Protection Holdings Limited reported a revenue of RMB 1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[4]. - The company achieved a net profit of RMB 300 million, which is a 20% increase compared to the previous year[4]. - The company achieved a net profit attributable to equity shareholders of RMB 578.607 million in 2021, representing a year-on-year increase of 23.37%[16]. - Total revenue for 2021 was RMB 1,698.153 million, up from RMB 1,143.991 million in 2020, marking a growth of approximately 48.5%[10]. - The company reported a pre-tax profit of RMB 697.713 million for 2021, an increase from RMB 574.160 million in 2020, indicating a growth of approximately 21.5%[10]. - The company achieved a revenue of RMB 1,698.15 million in 2021, representing a year-on-year increase of 48.44%[35]. - The pre-tax profit for the period was RMB 697.71 million, reflecting a growth of 21.52% compared to the previous year[35]. Market Expansion and Development - User data indicates that the company expanded its customer base by 25%, reaching a total of 500 clients in the environmental protection sector[4]. - Market expansion efforts include entering three new provinces in China, aiming to increase market share by 5%[4]. - The company expanded its project portfolio by signing 99 environmental protection projects across 22 provinces, including 44 general hazardous waste projects and 24 fly ash washing projects, with an annual treatment capacity of approximately 10.51 million tons[17]. - The company has established partnerships with major cement enterprises, including China National Building Material, to enhance its project capabilities in hazardous waste disposal[20]. - The company is actively pursuing market expansion opportunities in the pollution soil sector, enhancing operational efficiency[21]. - The company has established seven regional management teams to enhance market development across various regions in China[128]. Investment and R&D - The company is investing RMB 200 million in new product development, focusing on advanced waste treatment technologies[4]. - The company plans to enhance R&D investment to promote new technology applications and explore new markets in the environmental protection industry[31]. - The company plans to enhance its digital platform to improve customer engagement and service delivery, with an investment of RMB 50 million[4]. Operational Efficiency and Cost Management - A new strategic initiative was announced to improve operational efficiency, targeting a 10% reduction in costs by the end of 2022[4]. - The company is focusing on the development of new technologies in environmental protection and enhancing its operational efficiency through technological upgrades[19]. - The group is committed to optimizing investment layout and enhancing core competitiveness through cost control and technological improvements[33]. - The company aims to enhance its operational efficiency and management in the industrial hazardous waste disposal sector through the acquisition of full control over its subsidiaries[66]. Environmental and Social Governance (ESG) - Environmental, social, and governance (ESG) initiatives are being prioritized, with a commitment to reduce carbon emissions by 30% over the next five years[4]. - This is the first ESG report published by the company after its listing, reflecting strategies, policies, measures, and results in ESG aspects for the year 2021[198]. - The report is prepared in accordance with the Stock Exchange's Listing Rules Appendix 27 on Environmental, Social, and Governance Reporting Guidelines[200]. Human Resources and Governance - The company has a total of 3,445 employees as of December 31, 2021, with 27.02% holding a bachelor's degree or higher[150]. - The total employee compensation, including director remuneration, was approximately RMB 276.80 million for the year ended December 31, 2021[150]. - The board of directors consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[75]. - The company has established three board committees: Audit Committee, Remuneration and Nomination Committee, and Strategic, Sustainability and Risk Management Committee, each with defined responsibilities[85]. - The company has committed to appoint at least one female director to the board within one year from the listing date, recognizing the current all-male composition of the board[96]. Risk Management - The company has established a comprehensive risk management framework to identify and manage significant risks associated with its operations[110]. - The internal control system has been evaluated, confirming no significant internal control deficiencies in financial and non-financial reporting during the reporting period[112]. - The company has implemented full-process control measures covering key business processes, including financial reporting and insider information management[112]. Shareholder Communication - The company emphasizes transparent communication with shareholders and investors through its website, facilitating access to financial and operational information[122]. - Shareholders can submit inquiries regarding shareholding, transfers, and dividend payments to the company's designated contact points[116]. - The company reported a reserve available for distribution to shareholders of approximately RMB 1,215.25 million as of December 31, 2021[133].