Core Viewpoint - China Environmental Technology (00646.HK) reported a slight decrease in revenue and a significant increase in loss attributable to shareholders for the six months ending June 30, 2025, indicating financial challenges faced by the company [1]. Financial Performance - The company recorded revenue of approximately HKD 18,984,000, representing a year-on-year decrease of 0.6% [1]. - Loss attributable to shareholders increased to approximately HKD 27,457,000, compared to HKD 6,470,000 for the same period ending June 30, 2024 [1]. Contributing Factors - The increase in loss is primarily attributed to: 1. Exchange losses due to the appreciation of the Renminbi against the Hong Kong dollar, affecting Renminbi-denominated payables and debts [1]. 2. Decrease in gross profit from the wastewater treatment segment [1]. 3. Increased management expenses resulting from the establishment of a new energy management segment [1]. Upcoming Events - The company plans to hold a board meeting on August 29 to approve the interim results [1].

Core Viewpoint - China Environmental Technology (00646) reported a decrease in revenue and an increase in losses for the six months ending June 30, 2025, indicating financial challenges faced by the company [1] Financial Performance - The company achieved revenue of HKD 18.984 million, a year-on-year decrease of 0.6% [1] - Loss attributable to shareholders amounted to HKD 25.909 million, representing a year-on-year increase of 300.45% [1] - The loss per share was HKD 0.0756 [1] Contributing Factors - The increase in losses was primarily due to the appreciation of the Renminbi against the Hong Kong dollar, leading to increased exchange losses on Renminbi-denominated payables and debts [1] - The gross profit from the wastewater treatment segment declined [1] - The establishment of a new energy management segment resulted in increased management expenses [1]

Core Points - The company reported a revenue of HKD 18.984 million for the six months ending June 30, 2025, representing a year-on-year decrease of 0.6% [1] - The loss attributable to shareholders increased to HKD 25.909 million, a significant year-on-year increase of 300.45% [1] - The loss per share was HKD 0.0756 [1] Financial Performance - Revenue for the period was HKD 18.984 million, showing a slight decline compared to the previous year [1] - The increase in loss attributable to shareholders was primarily due to foreign exchange losses from the appreciation of the Renminbi against the Hong Kong dollar [1] - The gross profit from the wastewater treatment segment decreased, contributing to the overall financial decline [1] - Management expenses rose due to the establishment of a new energy management segment [1]

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of HKD 18,984,000, a decrease of 0.6% compared to HKD 19,099,000 for the same period in 2024[3] - The gross profit for the same period was HKD 5,551,000, down 21% from HKD 7,027,000 in 2024[3] - The operating loss for the six months was HKD 16,220,000, compared to an operating profit of HKD 7,710,000 in the previous year[3] - The company reported a loss before tax of HKD 27,457,000, significantly higher than the loss of HKD 6,470,000 in 2024[3] - The total comprehensive loss for the period was HKD 35,847,000, compared to HKD 9,321,000 in the same period last year[3] - The basic loss per share was HKD 7.56, compared to HKD 2.78 in the previous year[5] - The group recorded a total loss before tax of HKD 27,457,000 for the six months ended June 30, 2025, compared to a profit of HKD 642,000 in the same period of 2024[16] - The loss attributable to shareholders increased to approximately HKD 27,457,000, compared to HKD 6,470,000 for the same period in 2024, driven by exchange losses from RMB appreciation and increased management costs in the new energy management segment[38] Revenue Breakdown - The wastewater treatment segment generated revenue of HKD 17,848,000, down from HKD 19,099,000, with a loss of HKD 4,024,000 compared to a loss of HKD 3,113,000 in the previous year[15] - The energy management segment reported revenue of HKD 1,136,000, with a loss of HKD 5,089,000, while the healthcare segment incurred a loss of HKD 5,646,000[15] - The group achieved over HKD 1,100,000 in energy management revenue during the first half of 2025, indicating a positive trend in business development[41] Assets and Liabilities - Non-current assets as of June 30, 2025, totaled HKD 2,565,000, a slight decrease from HKD 2,685,000 at the end of 2024[6] - Current assets decreased to HKD 29,359,000 from HKD 34,542,000 in December 2024[6] - Current liabilities increased to HKD 477,526,000 from HKD 451,256,000 at the end of 2024[6] - The total assets of the group were approximately HKD 31,924,000 as of June 30, 2025, down from HKD 37,227,000 as of December 31, 2024[43] - The group's total debt amounted to approximately HKD 165,142,000 as of June 30, 2025, compared to HKD 161,666,000 as of December 31, 2024[44] - The leverage ratio (total debt to total assets) increased to 517.30% as of June 30, 2025, compared to 434.27% as of December 31, 2024[43] Share Capital and Options - The company has a total of 342,698,000 ordinary shares issued and fully paid as of December 31, 2024, with a par value of HKD 0.50 per share[35] - The company has a share option plan in place, effective from September 10, 2010, which is designed to reward eligible participants, including directors and employees[36] - As of June 30, 2025, there are 10,808,000 share options that remain unexercised under the share option plan[37] - The total number of unexercised share options as of June 30, 2025, is 10,808,000, with no options exercised or lapsed during the reporting period[54] Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2025[60] - The board is responsible for maintaining adequate internal control systems to safeguard shareholder investments and company assets[61] - An internal audit department was established in 2019 to report on any discrepancies and risk management measures to the audit committee[62] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group[64] Future Outlook - The company is optimistic about business development in the second half of the year, focusing on core competitiveness and opportunities in equipment renewal and new power system construction[42] - The group has completed key projects in major cities such as Shanghai and Shenzhen, and has initiated the construction of its first fully buried new-type wastewater treatment facility[40]

（於開曼群島註冊成立之有限公司） (股份代號：646) 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Environmental Technology Holdings Limited 中國環保科技控股有限公司 香港，二零二五年八月十一日 於本公告日期，本公司之執行董事為許京平先生、許中平先生及楊保東先生；本公司之非 執行董事為胡玥玥女士、馬天福先生及王友明先生；而本公司之獨立非執行董事為謝志偉 先生、朱南文教授及李軍教授。 董事會召開日期 中國環保科技控股有限公司 (「本公司」) 董事 (「董事」) 會 (「董事會」) 茲通告謹定於二零二五年八月二十九日 (星期五) 舉行董事會會議，籍以(當中 包括) 考慮及通過本公司截至二零二五年六月三十日止六個月之未經審核中期 業績公告及其刊發，及建議宣派中期股息(如有)之事宜。 承董事會命 中國環保科技控股有限公司 公司秘書 李宏興 ...

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]