Financial Performance - The revenue for the year 2022 was reported at RMB 1.2 billion, representing a year-on-year increase of 15%[11] - The company achieved a net profit of RMB 300 million, which is a 10% increase compared to the previous year[11] - In 2022, the company reported a revenue of RMB 1,729,598,000, an increase from RMB 1,698,153,000 in 2021, representing a growth of approximately 1.5%[17] - The company's profit before tax decreased to RMB 410,531,000 in 2022 from RMB 697,713,000 in 2021, reflecting a decline of about 41.2%[17] - The company's revenue for the reporting period was RMB 1,729.60 million, an increase of 1.85% year-on-year[45] - Pre-tax profit decreased by 41.16% to RMB 410.53 million, while net profit for the year fell by 44.25% to RMB 360.46 million[45] - The net profit attributable to equity shareholders was RMB 328.66 million, a decrease of 43.20% compared to the previous year[45] - The industrial hazardous waste disposal service generated revenue of RMB 1,241.85 million, a slight decrease of 0.01% year-on-year[48] - The general hazardous waste segment saw revenue growth of 0.55% to RMB 1,057.84 million, driven by new project launches[48] - The gross profit for the company's products was RMB 910.14 million, a decrease of 10.33% year-on-year[51] Market Expansion and Strategic Initiatives - The company has set a revenue target of RMB 1.5 billion for 2023, indicating an expected growth of 25%[11] - Market expansion plans include entering two new provinces in China, aiming for a 30% increase in market share by 2024[11] - The company is considering strategic acquisitions to enhance its service offerings, with a budget allocation of RMB 200 million for potential mergers[11] - Future outlook remains positive, with management expressing confidence in achieving sustainable growth through strategic initiatives[11] - The company is actively expanding its project layout and enhancing market share to ensure safe production and solidify its industry leadership[42] Operational Efficiency and Technological Development - New product development includes the launch of an advanced waste treatment technology, projected to reduce operational costs by 15%[11] - Research and development expenses increased by 12%, totaling RMB 50 million, to support innovation initiatives[11] - The company reported a 5% improvement in operational efficiency due to the implementation of new technologies[11] - The company is focusing on optimizing disposal processes and implementing technological upgrades to improve operational efficiency[31] - Future strategies include deepening technological improvements and optimizing operational efficiency to address production bottlenecks[44] Environmental Projects and Waste Management - The company successfully acquired a 36,000 tons/year oil sludge resource recycling project in Zhoushan, Zhejiang, expanding its market presence in the region[20] - A strategic cooperation agreement was signed with Hongfa Investment for a project to dispose of 200,000 tons of solid (hazardous) waste annually, enhancing operational capabilities[21] - As of the end of the reporting period, the company operated 63 environmental projects across 19 provinces, with a total processing capacity of approximately 6.8157 million tons per year[30] - The company processed approximately 921,600 tons of industrial hazardous waste, representing a year-on-year increase of about 17.42%[31] - The company processed approximately 1.5936 million tons of industrial solid waste, reflecting a year-on-year growth of about 10.30%[33] Corporate Governance and Management Structure - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[78] - The company appointed new independent non-executive directors, including Mr. Li Qunfeng as Chairman and Mr. Li Xiaobo as General Manager on October 9, 2022[79] - The board retains decision-making authority over significant matters, including financial data and risk management systems[83] - The company has implemented a structured process for the appointment and re-election of directors, ensuring transparency and accountability[88] - The independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring unbiased oversight[81] Financial Position and Assets - The total assets of the company reached RMB 8,536,568,000 in 2022, up from RMB 7,510,221,000 in 2021, indicating an increase of approximately 13.7%[18] - The total liabilities increased to RMB 5,148,934,000 in 2022 from RMB 4,420,301,000 in 2021, marking a rise of about 16.5%[18] - The group's debt-to-asset ratio was 60.32%, an increase of 1.46 percentage points from the previous year[53] - Non-current assets increased by 24.29% year-on-year to RMB 7,217.07 million, mainly due to an increase in property, plant, and equipment[55] - The total bank loan balance as of December 31, 2022, 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[60] Employee and Compensation Information - The total employee compensation for the year ended December 31, 2022, was approximately RMB 386.39 million[72] - The total number of employees in the group is approximately 3,686, with 27.24% holding a bachelor's degree or higher[157] - The employee distribution by function includes 1,920 in technical research and development, 491 in management, and 465 in operations[157] - The company regularly reviews and determines the remuneration of directors and senior management based on performance and market benchmarks[164] Related Party Transactions and Compliance - The company has a continuing related party transaction with China National Building Material Group, involving a framework agreement for cement kiln collaborative disposal services, effective until December 31, 2024[172] - The company has complied with the disclosure requirements under Chapter 14A of the Listing Rules regarding related party transactions during the reporting period[184] - Independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and in the overall interest of the company and its shareholders[184] Risk Management and Compliance - The company has engaged KPMG as its international auditor for the fiscal year ending December 31, 2022[188] - The company has maintained compliance with regulatory requirements to avoid risks that could lead to the termination of its operating license[191] - The company faces risks related to the environmental industry, including policy fluctuations and the financial stability of major clients[190] - The company has implemented comprehensive risk management measures, focusing on internal control effectiveness across key business areas[119] Shareholder Information and Ownership Structure - The total issued share capital of the company was 1,826,765,059 shares as of the reporting period end[142] - Major shareholders include Hai Luo Chuang Ye with a beneficial ownership of 494,302,979 shares, representing 27.06% of the total shares[144] - The company has a significant concentration of ownership, with the top shareholders holding over 90% of the shares[149] - The report highlights the importance of compliance with regulatory requirements regarding shareholding disclosures[151]

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]

Financial Performance - Revenue for the first half of 2022 reached RMB 868,437,000, representing a 17.30% increase compared to RMB 740,358,000 in the same period of 2021[8] - Profit before tax for the first half of 2022 was RMB 312,212,000, a decrease of 3.24% from RMB 322,651,000 in the prior year[8] - Net profit for the period was RMB 277,974,000, down 7.80% from RMB 301,498,000 in the first half of 2021[8] - Net profit attributable to equity shareholders was RMB 249,080,000, reflecting a decline of 5.98% compared to RMB 264,930,000 in the same period last year[8] - The group achieved a revenue of RMB 868.44 million in the first half of 2022, representing a year-on-year increase of 17.30%[29] - The pre-tax profit for the same period was RMB 312.21 million, a decrease of 3.24% compared to the previous year[29] - The net profit attributable to equity shareholders was RMB 249.08 million, down 5.98% year-on-year[29] - The company's gross profit for the first half of 2022 was RMB 490.55 million, an increase of 9.21% year-on-year, with a gross margin of 56.49%, down 4.18 percentage points from the previous year[33] - The gross margin for industrial hazardous waste disposal services was 54.01%, a decrease of 7.60 percentage points year-on-year, primarily due to logistics constraints and reduced waste generation from industrial enterprises[33] - The gross margin for oil sludge disposal increased to 54.38%, up 21.04 percentage points year-on-year, attributed to optimized production processes and reduced costs[33] - Basic earnings per share remained stable at RMB 0.14, compared to RMB 0.15 in the previous year[85] Assets and Liabilities - Total assets increased by 7.65% to RMB 8,084,827,000 as of June 30, 2022, compared to RMB 7,510,221,000 at the end of 2021[9] - The company's total liabilities were RMB 4,787.19 million, an increase of 8.30% year-on-year, with a debt-to-asset ratio of 59.21%[39] - Cash and cash equivalents at the end of the period were RMB 655.72 million, an increase of RMB 158.91 million year-on-year[46] - As of June 30, 2022, total loans and borrowings increased to RMB 3,629,026,000 compared to RMB 3,043,861,000 as of December 31, 2021, marking an increase of about 19.2%[122] - Net assets rose to RMB 3,297,634 thousand from RMB 3,089,920 thousand, reflecting an increase of 6.7%[90] Cash Flow - The net cash generated from operating activities for the reporting period was RMB 242.01 million, a year-on-year decrease of RMB 55.26 million, primarily due to increased cash expenditures for new projects and longer accounts receivable turnover days[48] - The net cash used in investing activities was RMB 628.60 million, a year-on-year decrease of RMB 228.19 million, mainly due to reduced payments for construction and equipment purchases[49] - The net cash generated from financing activities increased to RMB 446.19 million, a year-on-year increase of RMB 28.64 million, primarily due to increased bank loan proceeds[50] - The total cash and cash equivalents increased to RMB 655,719,000 as of June 30, 2022, from RMB 596,113,000 at the beginning of the year[96] Operational Highlights - The company signed 108 environmental protection projects across 22 provinces, with a total annual hazardous waste processing capacity of approximately 11.45 million tons[11] - The company expanded its industrial hazardous waste disposal projects by adding 7 new projects, increasing processing capacity by 736,000 tons per year[12] - The company processed 406,100 tons of industrial hazardous waste during the reporting period, a year-on-year increase of 23.29%[13] - The company disposed of approximately 897,900 tons of industrial solid waste, representing a year-on-year growth of 44.39%[15] - The company achieved a 9.44% increase in equity attributable to shareholders, reaching RMB 2,648,982,000 as of June 30, 2022[9] - The industrial hazardous waste disposal service generated revenue of RMB 581.89 million, an increase of 8.52% year-on-year[31] - The industrial solid waste disposal service achieved revenue of RMB 286.55 million, marking a significant growth of 40.36% year-on-year[31] Strategic Initiatives - The company established strategic cooperation with Gezhouba Cement to enhance industry advantages and completed acquisitions of hazardous waste projects in Guangdong and Zhejiang[12] - The company is actively participating in market expansion and improving operational management despite challenges from the pandemic and economic conditions[10] - Future plans include accelerating strategic partnerships with large cement companies and expanding sludge drying projects[25] - The company is focusing on expanding its market presence through new projects and acquisitions in various regions[21] Corporate Governance - The company has adopted the Corporate Governance Code as per the Stock Exchange's Listing Rules and has complied with its principles during the reporting period[75] - The company is committed to high standards of corporate governance to enhance shareholder value and accountability[75] - The company has adopted a board diversity policy to enhance performance quality, committing to appoint at least one female director within one year of listing, which was achieved on July 18, 2022[80] - The remuneration and nomination committee is responsible for proposing overall remuneration policies for directors and senior management, ensuring no director participates in determining their own remuneration[79] Shareholder Information - Major shareholders included Conch International Holdings with a 9.49% stake and Conch Group with a 13.83% stake as of June 30, 2022[65] - The company did not declare an interim dividend for the six months ended June 30, 2022[64] - The total employee compensation, including director remuneration, was approximately RMB 138.30 million for the reporting period, with a total workforce of 3,673 employees[62]

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].