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].