Wastewater Treatment Business - The wastewater treatment business revenue for 2024 increased by 74.35% compared to the previous year, driven by an increase in the number and scale of completed projects [5]. - In 2024, the company completed 9 wastewater treatment projects with a total contract value of approximately RMB 28,290,000, representing a growth of 90.98% from the previous year [5]. - As of the report date, there are 10 signed and ongoing wastewater treatment projects with a total contract value of approximately RMB 38,957,000, expected to be completed in 2025 or 2026 [6]. - The company anticipates revenues from wastewater treatment projects to be approximately HKD 28,936,000 in 2025 and HKD 72,802,000 in 2026 [6]. - The company has established long-term partnerships with major domestic water service groups and engineering groups, enhancing its market presence [4]. Energy Management Business - The energy management business is being actively promoted, with a focus on electric power trading and virtual power plants (VPP), aligning with national carbon neutrality strategies [9]. - The energy management business has achieved significant breakthroughs in regions such as Ningxia and Inner Mongolia, with the latter achieving revenue for the first time [9]. - The company plans to expand its energy management business, targeting operational goals in Ningxia and Inner Mongolia by 2025 [10]. - The company has signed investment agreements for a virtual power plant in the AI Port Computing Power Town, marking a significant step in its energy management strategy [9]. Technology Development - The company is developing sand loading technology, which complements existing magnetic coagulation technology and is expected to yield higher premiums [4].

Financial Performance - The group recorded revenue of approximately HKD 28,229,000 for the year ending December 31, 2024, representing an increase of about 79.56% compared to HKD 15,721,000 in 2023[14]. - The loss attributable to the owners of the company decreased to approximately HKD 30,741,000, down about 28.78% from HKD 43,163,000 in 2023[14]. - The gross profit margin for the year was approximately 27.57%, a decrease from 41.51% in 2023[14]. - Revenue from wastewater treatment business increased by 74.35% compared to the previous year, although the average gross profit margin decreased to 27.62%[15]. - In 2024, the company achieved double-digit revenue growth through refined operations and deep customer engagement, solidifying its foundational business[19]. - The company reported a significant increase in other income, which rose to HKD 1,286,000 from HKD 65,000, marking a substantial growth in non-operational revenue streams[170]. - The total comprehensive loss for the year was HKD 25,949,000, down from HKD 37,851,000 in 2023, representing a 31% decrease[170]. - The company reported a loss attributable to shareholders of HKD (30,741) thousand for 2024, an improvement from a loss of HKD (43,163) thousand in 2023, representing a decrease of approximately 29%[172]. Operational Developments - The company established a technical team led by returning experts from Europe to enter the electricity trading and virtual power plant (VPP) sectors, focusing on digitalization and market transformation in the energy industry[16]. - The company achieved a significant milestone with zero revenue breakthrough in Inner Mongolia, marking a substantial progress in its energy management initiatives[16]. - The company is actively developing new technologies for wastewater treatment, focusing on technical upgrades and renovations in the existing market[15]. - The company aims to enhance its core competitiveness in water services and drive digital and intelligent upgrades in environmental and energy businesses through key technology research[11]. - The company plans to promote the application of integrated systems for electricity trading and carbon sink services, facilitating low-carbon transformation in industrial parks and urban microgrids[11]. - The company plans to develop virtual power plants, smart microgrids, and electricity sales businesses, leveraging energy management as a key transformation strategy[17]. Corporate Governance - The company has a strong focus on long-term strategic planning and corporate governance, as evidenced by the diverse backgrounds of its board members[33][35]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced composition[43]. - The board is responsible for formulating policies and strategies to create shareholder value, with the chairman and CEO roles held by different individuals[42]. - The company has adopted the corporate governance code and believes it has complied with all provisions, ensuring effective management and operational transparency[41]. - The company has established audit, remuneration, and nomination committees to enhance governance and oversight[45]. - The board's composition ensures independent opinions are included in discussions, promoting effective decision-making[43]. - The company has established mechanisms to ensure the board receives independent views and opinions, with the roles of the Chairman and CEO distinctly separated[47]. - The company is committed to maintaining high standards of corporate governance to enhance its corporate image and performance[40]. Financial Position - As of December 31, 2024, the company’s cash and bank balances totaled approximately HKD 892,000, down from approximately HKD 2,061,000 in 2023[21]. - The total assets of the company as of December 31, 2024, were approximately HKD 37,227,000, compared to HKD 40,574,000 in 2023[21]. - The company’s total liabilities as of December 31, 2024, were approximately HKD 610,175,000, down from HKD 652,199,000 in 2023[21]. - The company’s leverage ratio was 434.27% as of December 31, 2024, improved from 535.67% in 2023[22]. - The company’s net current liabilities stood at approximately HKD 416,714,000, raising concerns about its ability to continue as a going concern[155]. - The company has implemented several measures to improve liquidity and financial condition, including extending the maturity dates of various loans totaling approximately HKD 69,842,000[184]. - The company has received agreement from investors to defer repayment of certain loans and interest until 2026, which aids in liquidity management[184]. Shareholder Information - The largest customer accounted for 16% of total sales, while the top five customers together represented 78% of total sales[101]. - The largest supplier accounted for 16% of total purchases, with the top five suppliers together representing 55% of total purchases[101]. - No dividends are recommended for the year ending December 31, 2024, consistent with the previous year[103]. - The company has no reserves available for distribution to owners as of December 31, 2024[105]. - Major shareholders include Jun Tu with 53,429,000 shares (15.59%) and Classy Jade with 35,880,000 shares (10.47%) as of December 31, 2024[122]. Compliance and Risk Management - The company has complied with relevant laws and regulations without any serious violations during the year[137]. - The group is committed to environmental sustainability and adheres to environmental protection laws and regulations[138]. - The company is actively assessing its credit risk exposure and has implemented measures to evaluate the creditworthiness of its customers and debtors[165]. - The company’s internal control systems aim to manage risks but cannot guarantee the elimination of all risks[71]. Future Outlook - The company aims for double-digit revenue growth in the new fiscal year, focusing on the renovation and upgrade of existing markets in the wastewater treatment sector[17]. - The company is focused on ensuring operational funding and fulfilling its financial responsibilities in the foreseeable future[185]. - The company’s financial forecasts indicate a need for ongoing financial support to maintain operations[185].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 28,229,000, an increase of 79.56% compared to HKD 15,721,000 for the year ended December 31, 2023[2] - The loss attributable to the company's owners decreased by 28.78% to HKD 30,741,000 from HKD 43,163,000 year-on-year[2] - Gross profit for the year was HKD 7,784,000, up from HKD 6,526,000, reflecting improved operational efficiency[3] - The company’s total comprehensive loss for the year was HKD 25,949,000, down from HKD 37,851,000 in the previous year[4] - The basic and diluted loss per share for the year was HKD 19.49, compared to HKD 11.01 in the previous year[4] - Customer contract revenue for 2024 reached HKD 28,229,000, a significant increase from HKD 15,721,000 in 2023, representing an increase of 80%[21] - The wastewater treatment segment generated revenue of HKD 27,410,000 in 2024, up from HKD 15,721,000 in 2023, indicating a growth of 74%[21] - The gross profit margin for the year was approximately 27.57%, down from 41.51% in 2023[46] - The wastewater treatment business saw a revenue increase of 74.35% year-on-year, although the average gross profit margin decreased to 27.62%[47] Financial Position - Total liabilities as of December 31, 2024, were HKD 572,948,000, a decrease from HKD 611,625,000 in the previous year[6] - The company's cash and cash equivalents decreased to HKD 892,000 from HKD 2,061,000, highlighting liquidity challenges[5] - The company’s non-current assets increased to HKD 2,685,000 from HKD 1,566,000, indicating investment in long-term assets[5] - The total assets of the group are approximately HKD 37,227,000, a decrease from HKD 40,574,000 in 2023, while total liabilities are approximately HKD 610,175,000, down from HKD 652,199,000 in 2023[52] - The group had a net current liability of approximately HKD 416,714,000, raising significant doubts about its ability to continue as a going concern[45] - The current ratio as of December 31, 2024, is 0.08, unchanged from 2023, with current assets at approximately HKD 34,542,000 and current liabilities at approximately HKD 451,256,000[52] Financing and Debt Management - The company reported a net financing cost of HKD 25,992,000, down from HKD 28,151,000, indicating a reduction in interest expenses[3] - The company has extended the maturity dates of various loans totaling approximately HKD 69,842,000, ensuring no repayments are required before July 2026[11] - The company has agreed not to demand repayment of interest related to the 8% convertible bonds until July 2026, with interest amounting to approximately HKD 11,997,000[11] - The total borrowing cost for 2024 is HKD 25,992,000, a decrease of 7.5% from HKD 28,151,000 in 2023[32] - The group’s borrowing is approximately HKD 161,666,000, reduced from HKD 217,341,000 in 2023, with a leverage ratio of 434.27%, improved from 535.67% in 2023[53] Operational Strategy and Future Outlook - The company anticipates sufficient operating funds to meet its financial obligations in the foreseeable future, based on cash flow forecasts and available financial resources[12] - The group plans to achieve double-digit revenue growth in the new fiscal year by focusing on market expansion and new technology development in the wastewater treatment sector[49] - The group has established a technical team led by European experts to enter the electricity trading and virtual power plant (VPP) sectors, aiming to leverage digitalization trends in the energy industry[48] - The group aims to expand its operations in Ningxia and Inner Mongolia, with specific targets for the year to establish a foundation for future growth[49] - The company is considering debt restructuring for certain subsidiaries to alleviate a certain level of debt if necessary[15] - The company is implementing cost-saving measures to maintain adequate cash flow for its operations[15] Governance and Compliance - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant changes to accounting policies or financial statement presentation[13] - The board is committed to maintaining high standards of corporate governance to enhance shareholder value and ensure effective operations[60] - The audit committee consists of three independent non-executive directors, including Mr. Xie Zhiwei (Chairman), Professor Zhu Nanwen, and Professor Li Jun[62] - The audit committee reviewed the annual performance and annual report for the year ending December 31, 2023, as well as the interim performance for the period ending June 30, 2024[64] - The external auditor, Zhonghui Anda CPA Limited, conducted the audit for the financial statements for the year ending December 31, 2024, ensuring consistency with the preliminary announcement figures[66] Employee and Shareholder Information - Employee costs, including director remuneration, increased to HKD 16,791,000 in 2024 from HKD 14,067,000 in 2023, representing a rise of 19.3%[33] - The group employed 67 staff members as of December 31, 2024, an increase from 45 in 2023, with a compensation policy reviewed annually by management[51] - The company does not recommend any dividend payment for the year ending December 31, 2024, consistent with 2023[37] - The average number of ordinary shares used for calculating basic and diluted loss per share increased to 279,307,000 in 2024 from 221,480,000 in 2023[38] - The company completed a share subscription on May 3, 2024, raising a total of HKD 14,500,000, with a net issuance price of approximately HKD 0.498 per share[55] - The company issued a total of 54,600,000 and 35,880,000 shares on August 5, 2024, related to the conversion of convertible bonds totaling approximately HKD 27,300,000 and HKD 17,940,000 respectively[55] - The total number of securities available for issuance under the share option plan as of December 31, 2024, is 10,808,000 shares, representing 3.15% of the issued share capital[59] - The company has not purchased, sold, or redeemed any of its listed shares during the fiscal year ending December 31, 2024[56]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 19,099,000, representing a significant increase from HKD 7,820,000 in the same period of 2023, reflecting a growth of 144.5%[5] - Gross profit for the same period was HKD 7,027,000, compared to HKD 2,188,000 in 2023, indicating a gross margin improvement[5] - Operating profit for the six months was HKD 7,710,000, a turnaround from an operating loss of HKD 1,144,000 in the previous year[5] - The company reported a loss before tax of HKD 6,470,000, which is an improvement from a loss of HKD 14,888,000 in the prior year[5] - Total comprehensive loss for the period was HKD 9,321,000, compared to HKD 6,603,000 in the same period last year[6] - The company reported a total loss of HKD 613,986,000 for the six months ended June 30, 2024, compared to a loss of HKD 611,625,000 for the same period in 2023[10] - The loss attributable to the company's owners decreased to approximately HKD 6,470,000, down from HKD 14,888,000 for the same period in 2023[47] Assets and Liabilities - Current assets totaled HKD 36,590,000 as of June 30, 2024, slightly down from HKD 39,008,000 at the end of 2023[8] - Current liabilities increased to HKD 563,993,000 from HKD 517,765,000, leading to a net current liability position of HKD 527,403,000[8] - The company’s total assets were reported at HKD 117,349,000 as of June 30, 2024, compared to HKD 102,849,000 in the previous year[10] - The company’s total liabilities increased slightly to HKD 421,517,000 as of June 30, 2024, from HKD 419,670,000 as of December 31, 2023[32] - Total borrowings increased to HKD 151,159,000 as of June 30, 2024, compared to HKD 147,679,000 as of December 31, 2023[35] - Trade receivables decreased to HKD 24,779,000 as of June 30, 2024, down from HKD 25,801,000 as of December 31, 2023, with an allowance for doubtful debts of HKD 7,293,000[27] - Trade payables rose to HKD 37,636,000 as of June 30, 2024, compared to HKD 36,417,000 as of December 31, 2023[31] Cash Flow - The company’s cash and cash equivalents stood at HKD 6,604,000, up from HKD 2,061,000 in the previous year[8] - Cash and cash equivalents increased to HKD 6,604,000 at the end of June 30, 2024, up from HKD 4,489,000 at the end of June 30, 2023[11] - The net cash used in operating activities was HKD (4,044,000) for the six months ended June 30, 2024, compared to HKD (1,126,000) for the same period in 2023[12] - The company generated net cash from financing activities of HKD 8,595,000 for the six months ended June 30, 2024, compared to HKD 5,283,000 in the previous year[12] Segment Performance - Revenue from the wastewater treatment segment was HKD 19,099,000 for the six months ended June 30, 2024, significantly up from HKD 7,820,000 in the same period of 2023[18] - The healthcare segment reported a profit of HKD 3,755,000 for the six months ended June 30, 2024, compared to a profit of HKD 8,043,000 in the previous year[18] - The total other income for the six months ended June 30, 2024, was HKD 11,846,000, an increase from HKD 9,589,000 in the same period of 2023[21] Shareholder Information - Major shareholder Jun Tu holds 53,429,000 shares, representing 21.18% of the issued share capital[63] - The beneficial owner Xu Zhongping holds 55,633,921 shares, accounting for 22.06% of the issued share capital[54] - The weighted average number of ordinary shares for calculating basic and diluted loss per share increased to 232,619,000 shares for the six months ended June 30, 2024, from 219,714,000 shares in the same period of 2023[24] - The total issued and paid-up ordinary shares increased from 223,218,000 shares (HKD 102,849,000) as of December 31, 2023, to 252,218,000 shares (HKD 117,349,000) as of June 30, 2024[43] Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2024[67] - The internal control system has been reviewed annually by the board to ensure the reliability of financial reporting and compliance with applicable laws[68] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group[70] Future Outlook - Future outlook remains cautious due to ongoing market conditions and potential foreign exchange risks[5] - The group plans to explore investment opportunities in the new energy market, particularly focusing on the trends in the energy and power market reform[48] Other Information - The company has not reported any new product launches or significant market expansions during this period[5] - The company has no interim dividend declared for the six months ended June 30, 2024, consistent with the previous year[23] - The company did not incur any current tax expense for the period ended June 30, 2024, due to no taxable profits in Hong Kong[23] - The company has no other arrangements that would allow directors to benefit from acquiring shares or debt securities of the company or any other corporation during the reporting period[62] - The company has no other interests in shares or debt securities during the reporting period, apart from those disclosed[55]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 19,099,000, representing a significant increase of 144.5% compared to HKD 7,820,000 for the same period in 2023[2] - Gross profit for the same period was HKD 7,027,000, up 221.5% from HKD 2,188,000 in 2023[2] - Operating profit for the six months was HKD 7,710,000, compared to an operating loss of HKD 1,144,000 in the previous year[2] - The net loss for the period was HKD 6,470,000, a reduction from a net loss of HKD 14,888,000 in 2023[3] - Total comprehensive loss for the period was HKD 9,319,000, compared to HKD 6,603,000 in the same period last year[3] - The group reported a profit of HKD 642,000 for the six months ended June 30, 2024, compared to a loss of HKD 414,000 for the same period in 2023[12] - The pre-tax loss for the six months ended June 30, 2024, was HKD 6,470,000, a reduction from a pre-tax loss of HKD 14,888,000 in the same period of 2023, indicating an improvement of 56.5%[13] - The net other income for the six months ended June 30, 2024, was HKD 11,846,000, compared to HKD 9,589,000 for the same period in 2023, reflecting an increase of 23.5%[14] Cash and Receivables - Cash and cash equivalents increased to HKD 6,604,000 from HKD 2,061,000 as of December 31, 2023[4] - Trade and other receivables stood at HKD 21,361,000, slightly up from HKD 21,174,000 at the end of 2023[4] - The trade receivables as of June 30, 2024, amounted to HKD 24,779,000, with an allowance for doubtful debts of HKD 7,293,000, resulting in a net trade receivable of HKD 17,486,000[20] Liabilities and Debt - Current liabilities increased to HKD 563,993,000 from HKD 517,765,000 at the end of 2023[5] - The total current liabilities as of June 30, 2024, were HKD 403,290,000, compared to HKD 358,407,000 as of December 31, 2023, showing an increase of 12.5%[22] - The company's total debt was approximately HKD 220,560,000, compared to HKD 217,341,000 as of December 31, 2023[37] - The estimated provision for early termination claims as of June 30, 2024, was HKD 169,812,000, slightly down from HKD 173,725,000 as of December 31, 2023[24] - As of June 30, 2024, bank loans amounted to HKD 23,637,000, an increase of 53.3% from HKD 15,404,000 on December 31, 2023[28] - Total borrowings reached HKD 151,159,000, up from HKD 147,679,000, reflecting a growth of 1.6%[28] - The company has approximately HKD 69,735,000 in long-term borrowings due after 12 months, compared to HKD 73,171,000 as of December 31, 2023, indicating a decrease of 4.9%[28] - The company has outstanding entrusted loans of approximately RMB 46,000,000, unchanged from the previous year, which are currently overdue[28] - The company issued a non-listed bond with a principal amount of HKD 3,000,000, with a fixed interest rate of 7%, which is now overdue[29] - The company has other loans totaling zero as of June 30, 2024, down from HKD 3,200,000 on December 31, 2023[29] - The effective interest rate on bank loans ranges from 2.80% to 5.15%, consistent with the previous year[28] Share Capital and Options - The company has a total of 252,218,000 shares issued and fully paid as of June 30, 2024, compared to 223,218,000 shares on December 31, 2023[31] - The company completed the issuance of a total of 29,000,000 subscription shares at a price of HKD 0.500 per share, raising a total of HKD 14,500,000[33] - The total number of options available for issuance under the 2010 Share Option Scheme as of June 30, 2024, is 10,808,000 shares, equivalent to 4.29% of the issued share capital[45] - There are 7,568,000 options that remain valid since the grant date, while 3,240,000 options are divided into two tranches, valid for one and two years from the grant date respectively[45] - The exercise price of the options is determined by the higher of the share par value, the closing price on the grant date, and the average closing price over the five trading days preceding the grant date[45] - As of June 30, 2024, the company has 10,808,000 unexercised stock options, which could generate HKD 5,404,000 if fully exercised[46] Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2024[51] - The internal control system has been reviewed annually, ensuring reliability in financial reporting and compliance with applicable laws[52] - The audit committee consists of three independent non-executive directors who reviewed the unaudited interim financial statements for the six months ending June 30, 2024[54] Strategic Focus and Future Plans - The company continues to focus on wastewater treatment and healthcare services as its main operational segments[9][10] - The company plans to explore investment opportunities in the new energy market, focusing on light asset businesses related to smart power[36] - The company is actively negotiating with lenders regarding the repayment schedule for overdue loans[28] Major Shareholders - The company has a significant shareholder, Xu Zhongping, who holds 53,429,000 shares through Jun Tu International Holdings Limited, representing 21.18% of the issued shares[40] - Major shareholder Jun Tu holds 53,429,000 shares, representing 21.18% of the company's issued share capital[48] - The company has no other interests in shares or related securities held by directors, senior management, or their immediate family members as of June 30, 2024[41]

Financial Performance - The company recorded revenue of approximately HKD 15,721,000 for the year ending December 31, 2023, a decrease of about 59.06% compared to HKD 38,400,000 in 2022[8]. - The loss attributable to the company's owners was approximately HKD 43,163,000, an increase of about 72.54% from HKD 25,016,000 in the previous year[8]. - The gross profit margin decreased significantly, with gross profit of HKD 6,526,000, down from HKD 13,610,000, indicating a decline of 52.0%[183]. - The total comprehensive loss for the year was HKD 37,851,000, compared to HKD 10,915,000 in 2022, indicating a significant increase of 246.0%[183]. - The basic and diluted loss per share was HKD 19.49, worsening from HKD 11.42 in the previous year, which is an increase of 70.0%[186]. - The company reported a pre-tax loss of HKD 43,337 million in 2023, compared to a loss of HKD 25,023 million in 2022, representing a deterioration of 73.2%[194]. - The company reported a loss attributable to shareholders of approximately HKD 43,163,000 for the year ended December 31, 2023[200]. Operational Highlights - Despite the decline in revenue, the overall gross profit margin increased from 35.44% in the previous year to 41.51% in the current year, reflecting a rise of 6.07 percentage points[8]. - The company achieved significant growth in new water service contract orders, nearing pre-pandemic levels, indicating a positive shift in business development[9]. - The company successfully implemented two new technology projects in wastewater treatment, enhancing its competitiveness and contributing positively to local environmental quality[4]. - The company plans to continue increasing R&D investment to enhance technology levels and product quality, focusing on carbon reduction and solid waste resource utilization[5]. - The company anticipates stable growth in sales revenue from its water services business in 2024, driven by an increase in orders for new technologies[11]. - The company is exploring new business opportunities in the healthcare sector, particularly in the management of light-asset medical institutions[10]. Financial Position - As of December 31, 2023, the total cash and bank balance of the group was approximately HKD 2,061,000, compared to HKD 790,000 in 2022, indicating a significant increase[15]. - The total assets of the group were approximately HKD 40,574,000 as of December 31, 2023, up from HKD 34,879,000 in 2022, reflecting a growth of about 16.3%[15]. - The total liabilities of the group were approximately HKD 652,199,000 as of December 31, 2023, compared to HKD 610,795,000 in 2022, representing an increase of about 6.7%[15]. - The current ratio remained stable at 0.08 for both 2023 and 2022, indicating consistent liquidity challenges[15]. - The group's total borrowings were approximately HKD 217,341,000 as of December 31, 2023, slightly up from HKD 215,024,000 in 2022[15]. - The leverage ratio, defined as total debt to total assets, improved to 535.67% in 2023 from 616.49% in 2022, indicating a reduction in financial risk[15]. - The company reported a net current liability of approximately HKD 478,757,000 as of December 31, 2023, raising concerns about its ability to continue as a going concern[167]. - The financial conditions indicate significant uncertainty regarding the company's ability to continue as a going concern[200]. Corporate Governance - The company has adopted the corporate governance code and believes it has complied with all code provisions, ensuring effective management and operational transparency[38]. - The board of directors is responsible for business management and monitoring, with distinct roles for the chairman and CEO to enhance governance[39]. - The company is committed to maintaining high standards of corporate governance to create shareholder value and improve corporate image[37]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[43]. - The company has achieved a target of at least 11.1% female representation on the board, which translates to one female director[54]. - The nomination committee is composed of four members, including the executive director as chairman and three independent non-executive directors[58]. - The company ensures compliance with listing rules by having at least three independent non-executive directors, with one possessing relevant financial expertise[44]. - The board's diversity policy considers various factors, including gender, age, cultural background, and professional experience[52]. - The company has established a process for the appointment and reappointment of directors, requiring all directors to retire at least every three years[47]. - The independent non-executive directors have confirmed their independence according to listing rules, ensuring the board's integrity[44]. Risk Management - The group has identified and assessed major operational risks regularly to implement appropriate risk responses[157]. - The internal control system is reviewed annually to ensure its effectiveness in safeguarding shareholder investments and company assets[69]. - The audit committee is responsible for reviewing the financial reporting system and internal control procedures to ensure they are adequate and effective[71]. Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance[90]. - Shareholders can propose independent resolutions at the annual general meeting to protect their rights[91]. - The company has a dedicated website for public access to the latest business developments and financial information[90]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[93]. Employee and Workforce - The company has reduced its workforce to 45 employees as of December 31, 2023, down from 49 employees in 2022, reflecting ongoing adjustments in its operational strategy[14]. - The company has provided comprehensive training for newly appointed directors to ensure they understand their responsibilities under listing rules and regulations[63]. Miscellaneous - The company has made internal management improvements in line with the revised listing rules effective January 1, 2022[97]. - The company has not entered into any management contracts related to the management and administration of its business during the year[121]. - The company has not entered into any equity-linked agreements during the fiscal year ending December 31, 2023[131].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 15,721,000, a decrease of 59.06% compared to HKD 38,400,000 in 2022[3] - The loss attributable to the company's owners increased by 72.54% to HKD 43,163,000 from HKD 25,016,000 in the previous year[3] - Gross profit for the year was HKD 6,526,000, down from HKD 13,610,000, reflecting a significant decline in profitability[5] - The total comprehensive loss for the year was HKD 37,851,000, significantly higher than HKD 10,915,000 in 2022[5] - The company reported a net loss of HKD 43,337,000 for the year ended December 31, 2023, compared to a net loss of HKD 25,023,000 in 2022, indicating a significant increase in losses[32] - The company reported a pre-tax loss of HKD 43,337,000 for the year ended December 31, 2023, compared to a pre-tax loss of HKD 25,023,000 in 2022, indicating a deterioration in financial performance[42] - The basic and diluted loss per share for the year ended December 31, 2023, was HKD 0.195, compared to HKD 0.114 for the previous year, reflecting an increase in losses per share[44] Financial Position - The company's total liabilities as of December 31, 2023, amounted to HKD 611,625,000, compared to HKD 575,916,000 in 2022, indicating a worsening financial position[10] - The net current liabilities increased to HKD 478,757,000 from HKD 399,468,000, raising concerns about liquidity[9] - The company has extended the repayment dates for various loans totaling approximately HKD 40,000,000 and USD 3,500,000, ensuring liquidity until at least July 2025[20] - The company has agreed not to require repayment of certain loans and convertible bonds totaling approximately HKD 4,611,000 and USD 2,300,000 before July 2025[20] - The company has not recognized any deferred tax assets due to the uncertainty surrounding future taxable profits, despite having tax losses available for offset[42] - Total liabilities as of December 31, 2023, amounted to HKD 611,625,000, indicating significant financial obligations that may impact the company's ongoing operations[51] Liquidity and Cash Flow - An investor has confirmed financial support of at least HKD 160,000,000 to ensure the company's operations for at least 15 months from March 31, 2024[15] - The company reported a basic and diluted loss per share of HKD 19.49, compared to HKD 11.42 in the previous year[7] - The company’s cash and cash equivalents increased to HKD 2,061,000 from HKD 790,000, indicating some improvement in liquidity[9] - The company plans to implement measures to improve liquidity and financial conditions, including cash flow forecasts[15] - Cost-saving measures will be implemented to maintain adequate cash flow for business operations[20] Revenue Sources - Revenue from wastewater treatment services accounted for the entire revenue of HKD 15,721,000 in 2023, down from HKD 38,400,000 in 2022[25] - The revenue from wastewater treatment services for the year ended December 31, 2023, was HKD 15,721,000, a decrease from HKD 38,400,000 in 2022, representing a decline of 59%[29] - Major customers contributed significantly to revenue, with Customer A generating HKD 3,132,000 in 2023, while Customer F, a major contributor in 2022, did not contribute in 2023[37] Segment Performance - The segment loss for wastewater treatment was HKD 14,917,000 for 2023, compared to a loss of HKD 11,753,000 in 2022, indicating a worsening performance[29] - The total assets reported for the wastewater treatment segment increased to HKD 37,833,000 in 2023 from HKD 33,381,000 in 2022, reflecting a growth of 13.8%[33] - The total liabilities for the wastewater treatment segment rose to HKD 413,353,000 in 2023, up from HKD 402,773,000 in 2022, an increase of 2.4%[33] Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring effective governance and compliance with regulations[71] - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, and found them satisfactory[75] - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and meet increasing expectations from investors[70] - The financial reporting and compliance procedures have been reviewed and deemed effective by the audit committee[72] - The company aims to continuously improve its corporate governance standards and comply with regulatory requirements[74] - The audit committee has discussed risk management and internal controls with management, ensuring robust financial reporting practices[75] Future Outlook - The group anticipates stable growth in water service business sales revenue for 2024, driven by an increase in orders utilizing new technologies[56] - The group saw significant growth in new water service contract orders compared to 2022, with some orders already implemented and others to be executed in the next year[54] - The group applied for new patents for new technologies in the environmental protection sector, enhancing its market competitiveness[54]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 7,820,000, a decrease of 71.5% compared to HKD 27,440,000 for the same period in 2022[6] - The gross profit for the same period was HKD 2,188,000, down 78.0% from HKD 9,975,000 in 2022[6] - The operating loss for the first half of 2023 was HKD 1,144,000, compared to an operating profit of HKD 3,642,000 in the previous year[6] - The net loss attributable to the company’s owners was HKD 14,888,000, an increase of 44.5% from HKD 10,299,000 in 2022[9] - The total comprehensive loss for the period was HKD 6,603,000, compared to a total comprehensive loss of HKD 1,601,000 in the same period last year[9] - The company incurred a loss of HKD 14,888,000 for the six months ended June 30, 2023, compared to a loss of HKD 10,432,000 for the same period in 2022, representing an increase in loss of 42.5%[30] - The company reported a basic and diluted loss per share of HKD 6.78 for the first half of 2023, compared to HKD 4.70 in the same period of 2022[9] - The total comprehensive income for the six months ended June 30, 2023, was HKD 8,501,000, compared to HKD 8,831,000 in the previous year[30] Assets and Liabilities - Non-current assets decreased to HKD 1,766,000 as of June 30, 2023, from HKD 2,045,000 at the end of 2022[11] - Current assets increased to HKD 34,792,000 from HKD 32,834,000 at the end of 2022[11] - Current liabilities slightly decreased to HKD 428,396,000 from HKD 432,302,000 at the end of 2022[11] - The company’s total equity attributable to equity holders decreased to HKD 102,891,000 as of June 30, 2023, from HKD 100,749,000 at the beginning of the year[15] - Total borrowings as of June 30, 2023, were HKD 149,426,000, slightly up from HKD 148,935,000 as of December 31, 2022[43] - The company recorded a provision for early termination claims of approximately HKD 170,752,000 as of June 30, 2023, compared to HKD 178,709,000 as of December 31, 2022[42] Cash Flow and Liquidity - The company’s cash and bank balances increased significantly to HKD 4,489,000 from HKD 790,000 at the end of 2022[11] - The cash and cash equivalents at the end of the period increased to HKD 4,489,000 from HKD 947,000, showing a significant improvement in liquidity[18] - The net cash used in operating activities for the six months ended June 30, 2023, was HKD 1,126,000, compared to a net cash inflow of HKD 498,000 in the same period of 2022[18] Segment Performance - The wastewater treatment segment generated revenue of HKD 7,820,000 but reported a loss of HKD 8,457,000, worsening from a loss of HKD 4,034,000 in the previous year[27] - The healthcare segment did not generate revenue in the current period but reported a profit of HKD 8,043,000 in the previous year[27] Shareholder Information - The company’s major shareholder, Mr. Xu Zhongping, holds 50,725,000 shares through Jun Tu International Holdings Limited, representing 22.72% of the issued shares[64] - As of June 30, 2023, the major shareholders include Jun Tu with 50,725,000 shares (22.72% of issued share capital) and Zhang Zi Hong with 33,980,000 shares (15.22% of issued share capital) [75] Share Options and Capital Raising - The company has a total of HKD 66,089,000 in liabilities related to convertible bonds as of December 31, 2022[51] - The company completed a share subscription of 4,200,000 shares at a price of HKD 0.6075 per share, raising approximately HKD 2,142,000[53] - The total number of share options available for issuance as of June 30, 2023, is 10,928,000, which could potentially raise HKD 5.464 million if fully exercised[74] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, except for the specifics regarding the non-executive director service term [80] - The internal control system has been established to ensure the reliability of financial reporting and compliance with applicable laws and regulations [83] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group [85] Future Outlook - The company signed all new contracts in 2023 after March, indicating a recovery in business operations post-COVID-19[57] - The company expects significant growth in order numbers and contract amounts for the full year 2023 compared to the previous year[58] - The company is exploring opportunities in forest ownership, management, trading, and carbon sinks, in line with China's carbon peak and neutrality goals[58]

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。 CHINA ENVIRONMENTAL TECHNOLOGY HOLDINGS LIMITED 中國環保科技控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：646） 截至二零二三年六月三十日止六個月之 中期業績公告 中國環保科技控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合業 績連同二零二二年同期之比較數字。 ...

| 目 | 錄 | | --- | --- | | 2 | 公司資料 | | 3 | 主席報告 | | 4 | 管理層討論及分析 | | 6 | 董事與高級管理人員之履歷詳情 | | 11 | 企業管治報告 | | 24 | 董事會報告 | | 35 | 獨立核數師報告 | | 39 | 綜合損益及其他全面收益表 | | 41 | 綜合財務狀況表 | | 43 | 綜合權益變動表 | | 44 | 綜合現金流量表 | 46 綜合財務報表附註 111 五年財務概要 公司資料 董事會 執行董事： 許京平先生 （主席） 許中平先生 （行政總裁） 楊保東先生 非執行董事： 胡玥玥女士 馬天福先生 獨立非執行董事： 謝志偉先生 朱南文教授 李軍教授 審核委員會 謝志偉先生 （主席） 朱南文教授 李軍教授 薪酬委員會 謝志偉先生 （主席） 朱南文教授 李軍教授 提名委員會 許京平先生 （主席） 謝志偉先生 朱南文教授 李軍教授 註冊辦事處 公司秘書 李宏興先生 獨立核數師 中匯安達會計師事務所有限公司 執業會計師 法律顧問 中倫律師事務所 Conyers Dill & Pearman 股份過戶登記總處 Tricor Se ...