Kimou Environmental Holding Limited 金 茂 源 環 保 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代號：6805 2023 年载 I UDIT 000 000 电镀废水资源化中心 wom com E dd an 世界 0000 AAAB t m T M lun 日 U W TI ni II l "II II ri ' 11 11 ■■ T i IT 目 群 2 公司資料 4 主席報告 5 管理層討論及分析 19 董事及高級管理層簡歷 24 董事會報告 44 企業管治報告 63 獨立核數師報告 68 綜合損益表 69 綜合損益及其他全面收益表 70 綜合財務狀況表 72 綜合權益變動表 74 綜合現金流量表 76 財務報表附註 139 五年財務摘要 140 投資物業表 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|--- ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）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。 Kimou Environmental Holding Limited 金茂源環保控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6805） 截 至2023年12月31日 止 年 度 的 年 度 業 績 公 告 | --- | --- | --- | |--------------------------------------------------------------|------------------------|-----------------------------| | | | | | 財 務 摘 要 | | | | | 截 至 年 | | | | 2023 12 月 31 ...

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately RMB 554.3 million, an increase of about RMB 19.3 million compared to RMB 535.0 million for the same period in 2022[9]. - The profit attributable to equity shareholders for the same period was approximately RMB 41.1 million, a decrease of about RMB 11.5 million from RMB 52.6 million in the previous year[9]. - The group's revenue for the review period was approximately RMB 554.3 million, an increase of about 3.6% compared to the same period in 2022[21]. - Revenue from leasing and facility usage services increased by approximately RMB 15.0 million or 7.4% to about RMB 218.8 million during the review period[23]. - Wastewater treatment fees rose by approximately RMB 3.8 million or 3.6% to about RMB 109.6 million, primarily due to an increase in the average unit price of wastewater treatment[24]. - The operating profit for the same period was RMB 122,206,000, slightly down from RMB 123,147,000 in 2022, reflecting a decrease of 0.8%[71]. - The net profit attributable to equity shareholders for the six months ended June 30, 2023, was RMB 41,061,000, a decrease of 22.0% from RMB 52,632,000 in 2022[71]. - The total comprehensive income for the period was RMB 35,872,000, compared to RMB 47,029,000 in 2022, indicating a decrease of 23.8%[72]. - The company incurred financing costs of RMB 65,590,000, which increased from RMB 49,381,000 in the previous year, reflecting a rise of 32.8%[71]. Operational Metrics - The total leasable area across the four surface treatment circular economy industrial parks was approximately 1,078,000 square meters, with an overall occupancy rate of 77.9%[12]. - The wastewater treatment capacity for the three main industrial parks was 18,500 tons per day, with an average daily treatment volume of 8,939 tons, resulting in a utilization rate of 48.3%[14]. - The average daily wastewater treatment capacity utilization rates for the parks were 67.9% in Guangdong, 33.2% in Tianjin, and 6.2% in Hubei[14]. - The Qing Shen Park officially commenced operations on May 18, 2023, with a daily wastewater treatment capacity of approximately 5,000 tons[15]. - The maximum wastewater treatment capacity planned for the East China Park's first phase is 5,500 tons per day, expected to be completed and operational in Q3 2023[19]. - The East China Park's first phase will increase the group's leasable area by approximately 121,000 square meters upon completion in Q4 2023[19]. Costs and Expenses - Operating costs increased by approximately RMB 19.0 million or 4.5% to approximately RMB 441.8 million, mainly due to increased depreciation and amortization[29]. - Depreciation and amortization rose by approximately RMB 20.8 million or 19.5% to approximately RMB 127.4 million, attributed to the commencement of depreciation for the Qingshen Park[30]. - Employee costs increased by approximately RMB 6.5 million or 10.8% to approximately RMB 67.6 million, driven by an increase in headcount to support business development[31]. - Utility costs increased by approximately RMB 2.1 million or 13.8% to approximately RMB 17.3 million, mainly due to increased wastewater treatment volumes and rising electricity costs[32]. - Other expenses decreased by approximately RMB 1.7 million or 2.7% to approximately RMB 61.5 million, primarily due to lower waste treatment costs and increased other taxes and fees[33]. Financing and Debt - Financing costs increased by approximately RMB 16.2 million compared to the previous year, impacting overall profitability[9]. - As of June 30, 2023, total bank loans and borrowings amounted to approximately RMB 2,596.0 million, an increase from RMB 2,233.2 million as of December 31, 2022[39]. - The adjusted net debt-to-equity ratio increased to 1.89 as of June 30, 2023, compared to 1.46 as of December 31, 2022, indicating a higher leverage position[42]. - The company closely monitors its loan portfolio to manage interest rate risks associated with floating-rate bank loans[49]. - The company maintained a policy of regular monitoring of its liquidity needs to ensure sufficient cash reserves[50]. Shareholder Information - The board recommended not to declare an interim dividend for the six months ended June 30, 2023, consistent with no dividend declared for the same period in 2022[56]. - Mr. Zhang Lianghong holds 493,270,000 shares, representing 44.47% of the company's equity as of June 30, 2023[59]. - Mr. Huang Shaobo holds 27,530,000 shares, representing 2.48% of the company's equity as of June 30, 2023[59]. - The company repurchased a total of 1,960,000 shares during the review period at a total cost of approximately HKD 2.0 million (approximately RMB 1.7 million)[53]. - The share repurchase was aimed at enhancing the net asset value per share and/or earnings per share, aligning with shareholder interests[53]. Assets and Liabilities - As of June 30, 2023, non-current assets totaled RMB 4,059,514 thousand, an increase of 4.9% from RMB 3,871,144 thousand as of December 31, 2022[75]. - Current assets reached RMB 665,571 thousand, up 32.8% from RMB 500,974 thousand at the end of 2022[75]. - Total current liabilities increased to RMB 1,688,096 thousand, a rise of 24.5% compared to RMB 1,355,963 thousand as of December 31, 2022[75]. - Non-current liabilities amounted to RMB 1,851,671 thousand, reflecting a growth of 12.2% from RMB 1,650,702 thousand at the end of 2022[76]. - The total equity attributable to shareholders decreased to RMB 1,083,263 thousand, down 5.1% from RMB 1,141,404 thousand as of December 31, 2022[76]. Compliance and Governance - The company has appointed Mr. Liu Jian as an independent non-executive director and chairman of the audit committee effective March 1, 2023, ensuring compliance with listing rules[67]. - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the financial reporting process and internal controls[68]. - The independent auditor did not identify any matters that would lead to a belief that the interim financial report is not in compliance with the relevant accounting standards[142]. - The review conducted is less extensive than an audit, thus the auditor cannot guarantee awareness of all significant matters that might be identified in an audit[141].

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 份 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。 Kimou Environmental Holding Limited 金茂源環保控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6805） 截 至2023年6月30日 止 六 個 月 的 未 經 審 核 中 期 業 績 公 告 | --- | --- | --- | |------------------------------------------------------|------------------------|------------------------| | | | | | | 截 至 6 月 30 | 日 止 六 個 月 | | | | | | | 2023 年 | 2022 年 | ...

Financial Performance - The company reported a revenue of RMB 1,095.8 million for the year ended December 31, 2022, an increase of RMB 168.0 million or 18.1% compared to the previous year[8]. - The profit attributable to equity shareholders was RMB 111.2 million, up RMB 55.3 million or 98.9% from RMB 55.9 million in 2021[11]. - Total revenue for the year was approximately RMB 1,095.8 million, an increase of 18.1% compared to the same period in 2021[20]. - Revenue from leasing and facility usage services increased by approximately RMB 76.7 million or 22.8% to about RMB 412.6 million, driven by an increase in average daily leased area and higher unit rental rates[22]. - Wastewater treatment fees rose by approximately RMB 49.2 million or 26.8% to about RMB 232.8 million, primarily due to increased leased area and higher unit prices[23]. - Operating profit increased by approximately RMB 83.5 million or 49.1% to about RMB 253.7 million, with the operating profit margin rising from 18.3% to 23.1%[34]. - Net current liabilities amounted to approximately RMB 854.99 million as of December 31, 2022, compared to RMB 758.74 million in the previous year, indicating a need for careful liquidity management[40]. - The debt-to-equity ratio increased to approximately 163.6% as of December 31, 2022, up from 134.0% in the previous year, reflecting a higher level of leverage[42]. - Total adjusted net debt increased to RMB 1,995.2 million in 2022 from RMB 1,549.4 million in 2021[44]. - The company reported a net profit of RMB 111,235,000 for the year, compared to a loss of RMB 2,530,000 in 2021, marking a significant turnaround[180]. Operational Developments - The company plans to commence operations at the first phase of the East China surface treatment circular economy industrial park in the third quarter of 2023, with 23 tenants already signed up[8]. - The company operates four strategically located surface treatment circular economy industrial parks in Guangdong, Tianjin, Hubei, and Sichuan, benefiting from convenient transportation networks[12]. - The first phase of the Qing Shen Park is expected to officially commence operations in Q2 2023, increasing the company's leasable area[18]. - The first phase of the East China Park is projected to be completed and operational by Q3 2023, further expanding the company's leasable area[18]. - The maximum wastewater treatment capacity at the Qing Shen Park is planned to be 20,000 tons per day, with an increase of 5,000 tons per day expected upon the first phase's operation[18]. - The company has applied to increase the maximum wastewater treatment capacity in Guangdong Huizhou from 10,000 tons to 15,000 tons per day, pending government approval[18]. Sustainability and Environmental Initiatives - The company aims to promote green upgrades in the surface treatment industry and enhance the entire manufacturing industry's sustainability[8]. - The company is committed to a green, low-carbon, and circular development philosophy to contribute to high-quality economic development and ecological protection[8]. - The company received recognition for its environmental initiatives, contributing to a 10% reduction in carbon emissions in 2022[62]. - The company emphasizes the importance of environmental protection and sustainable development in its operations[77]. - The company has established close relationships with employees, customers, and business partners to promote sustainable development[75]. Corporate Governance - The board of directors emphasized the importance of corporate governance and compliance, with independent directors actively involved in oversight[63]. - The company has complied with the corporate governance code applicable for the year, except for a temporary non-compliance regarding the composition of the board and audit committee due to a director's resignation[120]. - The company has established a standard code of conduct for securities trading, and all directors have confirmed compliance with this code during the year[121]. - The company aims to maintain high corporate governance standards and will continue to monitor its operations accordingly[120]. - The company has appointed KPMG as the auditor for the current fiscal year, with no changes in auditors over the past three fiscal years[122]. Employee and Workforce Management - As of December 31, 2022, the group had 885 full-time employees, an increase of approximately 10.8% from 799 employees in 2021[51]. - Employee costs rose by approximately RMB 31.1 million or 30.5% to about RMB 133.4 million, driven by an increase in headcount and salary adjustments due to business development needs[30]. - The group has a training program for new employees to familiarize them with the work environment and culture[111]. - The company aims to enhance board diversity, currently consisting entirely of male members, and is actively seeking a suitable female candidate[142]. Financial Management and Investments - Capital expenditures for the year amounted to approximately RMB 927.1 million, compared to RMB 627.6 million in the previous year[45]. - The company raised RMB 1,307,389,000 through bank loans and other borrowings in 2022, compared to RMB 760,298,000 in 2021, an increase of about 71.93%[182]. - The company invested RMB 784,949,000 in property, plant, and equipment during 2022, up from RMB 661,683,000 in 2021, indicating a rise of approximately 18.59%[182]. - The company has confirmed the independence of all independent non-executive directors according to the listing rules[87]. Risk Management - The company has established a risk management and internal control system, with the board being the ultimate decision-making body for risk management[150]. - The internal audit department regularly monitors and evaluates the risk and control systems across various departments to identify potential risks[151]. - The company has implemented a whistleblowing policy allowing employees and stakeholders to report concerns about misconduct without fear of retaliation[153]. Future Outlook - The company provided a positive outlook for 2023, projecting a revenue growth of 10% to 1.32 billion, driven by new product launches and market expansion[62]. - The company plans to consider various financing activities, such as issuing shares or convertible bonds, to strengthen its financial base[71]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization in 2023[62].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 1,095,791, an increase of 18.1% from RMB 927,750 in 2021[2] - Operating profit for the same period was RMB 253,671, representing a growth of 48.9% compared to RMB 170,164 in 2021[2] - Profit attributable to equity shareholders was RMB 111,235, up 98.8% from RMB 55,915 in the previous year[2] - Basic and diluted earnings per share for 2022 were RMB 0.10, compared to RMB 0.05 in 2021[2] - Operating margin improved to 23.1%, compared to 18.3% in 2021[2] - Net profit margin increased to 9.9%, up from 5.1% in the previous year[2] - Other income for the year was RMB 24,370, significantly higher than RMB 10,787 in 2021, reflecting a growth of 126.5%[5] - The adjusted EBITDA for the reporting segments was RMB 501,128,000 for 2022, compared to RMB 399,088,000 for 2021, reflecting a year-over-year increase of approximately 25.6%[23] - The total income tax reduction due to high-tech enterprise status amounted to RMB 13,596,000 for the year ended December 31, 2022, compared to RMB 11,749,000 in 2021, representing an increase of about 15.7%[35] - The total tax expense for the year ended December 31, 2022, was RMB 43,506 thousand, compared to RMB 31,035 thousand in 2021, representing an increase of 40%[34] Assets and Liabilities - Total assets increased to RMB 4,372,118, a rise of 23.8% from RMB 3,535,446 in 2021[2] - Net asset value reached RMB 1,365,453, up 9.9% from RMB 1,241,635 in the prior year[2] - The total bank loans and other borrowings amounted to RMB 1,547,656,000, which is an increase from RMB 1,089,148,000 in 2021, showing a rise of about 42.2%[9] - The company's equity attributable to shareholders increased to RMB 1,141,404,000 from RMB 1,038,776,000 in 2021, marking a growth of approximately 9.9%[9] - The total liabilities, including bank loans and other borrowings, amounted to RMB 2,234.0 million as of December 31, 2022, compared to RMB 1,664.7 million as of December 31, 2021[96] - As of December 31, 2022, the group's net current liabilities amounted to approximately RMB 855.0 million, compared to RMB 758.7 million as of December 31, 2021, indicating sufficient resources to meet current and future funding needs[92] Revenue Segmentation - Revenue from wastewater treatment and public utilities reached RMB 433,322,000, up from RMB 356,900,000 in 2021, indicating a growth of about 21.4%[15] - The revenue from facility usage and management services was RMB 291,652,000, compared to RMB 236,548,000 in 2021, indicating a growth of approximately 23.3%[15] - The revenue from the leasing and facility usage segment for 2022 was RMB 431,391,000, while the wastewater treatment and utilities segment generated RMB 433,322,000, and the sales of goods segment contributed RMB 276,725,000[20] - Revenue from goods sales and bundled services increased to approximately RMB 217.7 million, driven by improved product quality and increased tenant orders[77] Employee and Operational Costs - The total employee costs, including directors' remuneration, rose to RMB 133,404 thousand in 2022, compared to RMB 102,251 thousand in 2021, indicating an increase of 30%[31] - Operating costs increased by approximately RMB 95.1 million or 12.4% to about RMB 862.0 million, primarily due to higher depreciation and amortization, inventory costs, and utility expenses[78] - Depreciation and amortization rose by approximately RMB 15.6 million or 7.6% to about RMB 219.2 million, attributed to new investments in properties and equipment[79] - Utility costs rose by 29.5% to approximately RMB 32.9 million from RMB 25.4 million for the year ended December 31, 2021, mainly due to increased wastewater treatment volume resulting from an increase in leased area[82] Investments and Capital Expenditures - The group’s capital expenditures for the year amounted to approximately RMB 927.1 million, an increase from RMB 627.6 million for the year ended December 31, 2021[97] - The company acquired investment properties worth RMB 471,765,000 during the year ended December 31, 2022, significantly higher than RMB 130,285,000 in 2021, marking an increase of approximately 263.5%[43] - The total cost of property, plant, and equipment purchased was RMB 268,825,000 for the year ended December 31, 2022, down from RMB 392,012,000 in 2021, showing a decrease of about 31.5%[42] Shareholder Returns and Dividends - The company declared a final dividend of HKD 0.05 per share, equivalent to approximately RMB 0.045, compared to no final dividend in 2021[2] - The proposed final dividend is HKD 0.05 per share, with an estimated total payout of approximately HKD 55.65 million (equivalent to RMB 49.71 million) based on 1,113,014,000 shares issued as of December 31, 2022[118] Market and Economic Conditions - The group reported a significant impact on the supply chain due to global economic challenges, including inflation and geopolitical tensions, affecting investment and consumption[55] - The global economic outlook for 2023 is projected to be one of the lowest growth years in decades, impacting the group's operations and financial condition[65] Corporate Governance and Compliance - The company established an Audit Committee on June 18, 2019, consisting of three independent non-executive directors[115] - The group’s management is closely monitoring compliance with covenants related to bank loans, with no violations reported as of December 31, 2022[54] - The group has not exceeded the annual cap for the continuing connected transactions disclosed in relevant announcements[101]

Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately RMB 535.0 million, an increase of about RMB 101.9 million compared to RMB 433.0 million for the same period in 2021[8]. - Profit attributable to equity shareholders for the same period was approximately RMB 52.6 million, up by RMB 15.8 million from RMB 36.9 million in the previous year[8]. - The group's revenue for the review period was approximately RMB 535.0 million, an increase of about 23.5% compared to the same period in 2021[22]. - Revenue from leasing and facility services increased by approximately RMB 44.2 million or 27.7% to approximately RMB 203.8 million[23]. - Revenue from wastewater treatment increased by approximately RMB 22.2 million or 26.5% to approximately RMB 105.8 million[24]. - Steam revenue rose by approximately RMB 10.9 million or 22% to approximately RMB 60.2 million[25]. - The total revenue from sales of goods and related services was approximately RMB 129.0 million, reflecting a 20.0% increase[22]. - Operating profit increased by approximately RMB 38.2 million or 45.0% to about RMB 123.1 million, with the operating profit margin rising from 19.6% to 23.0%[34]. - Profit before tax increased by approximately RMB 29.3 million to about RMB 73.8 million, driven by the factors mentioned above[36]. - Basic and diluted earnings per share increased to RMB 0.05 from RMB 0.03, reflecting a growth of 66.7%[72]. Operational Metrics - The total leasable area across three strategic surface treatment circular economy industrial parks was 855,000 square meters, with an overall occupancy rate of 89.0%[11]. - The total leased area as of June 30, 2022, included 466,000 square meters in Guangdong, 317,000 square meters in Tianjin, and 72,000 square meters in Jingzhou, with occupancy rates of 93.3%, 91.2%, and 51.4% respectively[12]. - The company processed a total of 1,622,000 tons of freshwater during the six months ended June 30, 2022, with a daily wastewater treatment capacity of 18,500 tons[13]. - The average daily wastewater treatment volume was 8,961 tons, with a utilization rate of 48.4%[13]. - The group's daily wastewater treatment capacity reached approximately 18,500 tons as of June 30, 2022, with an average daily treatment volume of about 8,961 tons, resulting in a utilization rate of approximately 48.4%[14]. Costs and Expenses - Total operating costs increased by approximately RMB 70.8 million or 20.1% to approximately RMB 422.8 million[28]. - Employee costs rose by approximately RMB 15.9 million or 34.9% to approximately RMB 61.1 million due to increased headcount and salary adjustments[30]. - The group's depreciation and amortization increased by approximately RMB 9.1 million or 9.3% to approximately RMB 106.6 million[29]. - Utility costs increased by approximately RMB 3.1 million or 25.7% to approximately RMB 15.2 million due to increased wastewater treatment and utility consumption[31]. - Other expenses increased by approximately RMB 1.5 million or 2.4% to about RMB 63.2 million compared to RMB 61.7 million for the six months ended June 30, 2021, primarily due to increased other taxes and professional service fees[32]. Government Support and Subsidies - Government subsidies increased by approximately RMB 5.7 million compared to the same period in 2021, contributing to the profit growth[8]. - Other income rose by approximately RMB 5.8 million or 126.5% to about RMB 10.4 million, mainly due to an increase in government subsidies[33]. Financing and Capital Structure - Total bank loans and borrowings amounted to approximately RMB 1,897.5 million, an increase from RMB 1,664.0 million as of December 31, 2021[42]. - As of June 30, 2022, the adjusted net debt-to-equity ratio was 1.37, an increase from 1.25 as of December 31, 2021[46]. - Capital expenditures for the six months ended June 30, 2022, amounted to approximately RMB 393.6 million, up from RMB 263.5 million for the same period in 2021[47]. - The total capital commitments as of June 30, 2022, were approximately RMB 540.0 million, compared to RMB 343.7 million as of December 31, 2021[49]. - The company has limited foreign exchange risk due to most transactions being conducted in the functional currency, with no financial instruments used to hedge foreign exchange risk during the review period[51]. Employee and Management - Employee costs, including director remuneration, amounted to RMB 61.1 million, representing a 34.9% increase compared to RMB 45.2 million for the six months ended June 30, 2021[57]. - As of June 30, 2022, the company had 833 full-time employees, an increase from 687 full-time employees as of June 30, 2021[57]. - The company emphasizes employee training and development to align performance with strategic goals and operational standards[58]. Shareholder Information - Major shareholders include Gold Chang Investment Limited with 493,270,000 shares (44.10%) and Gold Shang Investment Limited with 239,400,000 shares (21.40%) as of June 30, 2022[61]. - The board recommended not to declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[59]. - The company repurchased a total of 2,918,000 ordinary shares at a total cost of approximately HKD 2.9 million (approximately RMB 2.5 million) during the review period[55]. Future Outlook and Strategy - The company continues to focus on expanding its surface treatment circular economy business in response to market demands and environmental regulations[10]. - The group aims to capture more surface treatment circular economy parks to accommodate more electroplating enterprises and enhance wastewater recycling, aligning with national policies[17]. - The company plans to continue as a going concern for the next twelve months, supported by cash flow forecasts and financing arrangements[81].

Financial Performance - The company recorded revenue of RMB 927.8 million for the year ended December 31, 2021, an increase of RMB 203.0 million or 28.0% compared to the previous year[34]. - Profit attributable to shareholders decreased to RMB 55.9 million, a decline of RMB 46.7 million or 45.5%, primarily due to rising material costs, increased depreciation, and higher financing costs[34]. - The company's revenue for the year was approximately RMB 927.8 million, an increase of about 28.0% compared to RMB 724.7 million in 2020[38]. - The profit attributable to equity shareholders was approximately RMB 55.9 million, a decrease of about 45.5% from RMB 102.6 million in 2020[38]. - Revenue from leasing and facility usage services increased by 19.8% to approximately RMB 335.9 million, up from RMB 280.3 million in the previous year[53]. - Wastewater treatment fees increased from approximately RMB 151.9 million for the year ended December 31, 2020, to approximately RMB 183.6 million, representing a growth of RMB 31.8 million or 20.9%[54]. - Steam fees rose from approximately RMB 82.8 million for the year ended December 31, 2020, to approximately RMB 102.6 million, an increase of RMB 19.8 million or 23.9%[55]. - Utility system maintenance fees increased from approximately RMB 59.3 million for the year ended December 31, 2020, to approximately RMB 70.7 million, reflecting a rise of RMB 11.4 million or 19.2%[56]. - Sales of consumables surged from approximately RMB 126.6 million for the year ended December 31, 2020, to approximately RMB 204.5 million, an increase of RMB 77.9 million[57]. - Operating costs rose to approximately RMB 766.9 million, driven by increased depreciation, inventory costs, and employee costs[58]. - The group reported an adjusted net debt-to-equity ratio of 1.25 as of December 31, 2021, compared to 1.01 as of December 31, 2020[77]. - The company has not declared any interim dividends for the year and has resolved not to propose any final dividends for the year[105]. - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 506,870,000, a decrease from RMB 532,617,000 as of December 31, 2020[111]. Operational Developments - The company is developing three surface treatment circular economy industrial parks located in Guangdong, Tianjin, and Jingzhou, Hubei, with the Qing Shen Park expected to commence operations in the second half of 2022[34]. - As of December 31, 2021, 16 tenants have signed agreements to occupy the Qing Shen Park[34]. - The total leasable area across three surface treatment circular economy industrial parks was 804,000 square meters, with an overall occupancy rate of 90.4%, up from 89.1% in 2020[40]. - The Guangdong Huizhou Park had a 100.0% occupancy rate, while the Tianjin Binhai Park had an occupancy rate of 86.8%, and the Huazhong Park had a lower rate of 48.6%[41]. - The total daily wastewater treatment capacity reached 18,500 tons, with an average daily treatment volume of approximately 9,115 tons, resulting in an average utilization rate of 49.3%[44]. - The average daily wastewater treatment capacity utilization for the Guangdong Huizhou Park was 74.1%, an increase of 8.3 percentage points compared to the previous year[44]. - The company plans to increase the wastewater treatment capacity in Guangdong Huizhou from 10,000 tons per day to 15,000 tons per day, with the application currently under review by local government[49]. - The construction of the Qing Shen Park, the company's fourth surface treatment circular economy industrial park, has commenced, covering a total area of 404,909 square meters[48]. - The first phase of the Qing Shen Park is designed for a maximum wastewater treatment capacity of 20,000 tons per day, with the first phase expected to handle 5,000 tons per day upon completion[49]. - The company has successfully secured land use rights for a new industrial park in Jiangsu Taixing, covering 129,747 square meters, marking the start of the fifth industrial park construction[48]. - The company plans to expand the rental building area in Guangdong Huizhou by constructing four new buildings with a total area of approximately 48,000 square meters in the first phase[50]. - The total planned rental building area for the Qing Shen Park is 676,000 square meters, with the first phase expected to be completed by June 30, 2022, adding 134,000 square meters to the rental space[50]. - The company aims to develop more surface treatment circular economy industrial parks to enhance revenue through increased customer acquisition[48]. Strategic Focus and Sustainability - The company aims to enhance its wastewater treatment capabilities and expand into hazardous waste treatment and electroplating equipment businesses to increase revenue and improve cash flow[35]. - The company is committed to sustainable development in line with national strategies for carbon neutrality and aims to leverage opportunities in the surface treatment industry for steady revenue and profit growth[36]. - The company emphasizes the importance of high-standard wastewater treatment capabilities in attracting surface treatment enterprises to its parks[36]. - The management is focused on strengthening standards, fine management, and comprehensive improvement to respond to external challenges and enhance operational efficiency[34]. - The company is committed to environmental sustainability and has not encountered any non-compliance issues with relevant laws and regulations[109]. - The company emphasizes the importance of sustainable development and aims to enhance relationships with employees, customers, and business partners[107]. Governance and Management - The board consists of seven directors, including four executive directors and three independent non-executive directors, with a focus on strategic planning and major business decisions[91]. - The group has a strong management team with extensive experience in finance, accounting, and corporate governance[99]. - The independent non-executive directors provide independent advice to the board, enhancing corporate governance[98]. - The company has a commitment to corporate governance, with independent directors providing independent advice to the board[95]. - The leadership team is composed of individuals with diverse backgrounds and extensive experience in their respective fields[93][94][95]. - The company has established a robust internal control system to oversee financial management and auditing processes[98]. - The company has adopted a board nomination policy to ensure that board members possess the necessary skills and experience aligned with the company's requirements[175]. - The company aims to appoint at least one female director by December 31, 2024, to enhance board diversity[174]. - The board diversity policy emphasizes the importance of maintaining a diverse board to sustain the company's competitive advantage[174]. Risk Management - The group has limited foreign currency risk due to most transactions being denominated in the functional currency, with no need for foreign currency hedging policies as the potential impact of exchange rate fluctuations is deemed insignificant[87]. - Interest rate risk primarily arises from floating-rate bank loans, which the management closely monitors to manage the group's interest rate exposure[88]. - Credit risk is limited due to trade receivables, with deposits collected from customers to mitigate potential credit risks[88]. - The group maintains a policy of regular monitoring of cash flow needs and compliance with borrowing covenants to ensure sufficient cash reserves[89]. - The company has established internal management systems to monitor key operational metrics and employee turnover rates[181]. - The board regularly assesses the group's performance and risk management framework, ensuring effective oversight of business risks[181]. Shareholder Relations - The company has maintained the minimum public float percentage required by listing rules throughout the year[114]. - The company encourages shareholders to submit inquiries in writing, ensuring prompt responses to their concerns[191]. - The company emphasizes the importance of ongoing dialogue with shareholders to enhance investor relations and understanding of business strategies[194]. - The company maintained effective communication with shareholders through annual general meetings and financial reports, ensuring transparency in business performance and strategies[194]. Legal and Compliance - The company faced a lawsuit claiming RMB 10 million in damages for trademark infringement, with a bank deposit of RMB 3,140,000 frozen as of December 31, 2021[123]. - The company has confirmed that all directors have complied with the standard code regarding securities trading throughout the year[152]. - The company has complied with the disclosure requirements of the Listing Rules regarding related party transactions[149]. - The company is closely monitoring compliance with environmental, safety, and health laws, with a focus on real-time monitoring systems for wastewater treatment processes[102]. - The company has adopted a whistleblowing policy allowing employees to report concerns about misconduct without fear of retaliation[185]. Employee Relations - As of December 31, 2021, the group had 799 full-time employees, an increase of approximately 33% from 602 employees in 2020[85]. - Employee costs, including director remuneration, amounted to RMB 102.3 million, representing an increase of approximately 476% compared to RMB 69.3 million for the year ended December 31, 2020[85]. - The group emphasizes employee training and has implemented an employee stock option plan to incentivize qualified directors and employees[85]. Capital Expenditure and Investments - The group’s capital expenditure for the year was approximately RMB 627.6 million, compared to RMB 536.3 million for the year ended December 31, 2020[78]. - The group acquired properties, plants, and equipment at a cost of approximately RMB 392.0 million for the year ended December 31, 2021, compared to RMB 402.2 million for the year ended December 31, 2020[70]. - The group purchased investment properties at a cost of approximately RMB 120.7 million and transferred RMB 9.6 million from right-of-use assets for the year ended December 31, 2021, down from RMB 163.5 million for the year ended December 31, 2020[71]. Audit and Financial Reporting - The independent auditor's report on the consolidated financial statements is included in the annual report[181]. - The audit committee held two meetings during the year to review the financial reporting process and risk management systems, ensuring effective internal controls[167]. - The audit procedures included sampling and verification of revenue transactions to ensure proper accounting periods for revenue recognition[198]. - The independent auditor confirmed that the financial statements present a true and fair view of the company's financial status and performance for the year[195].

Financial Performance - The company's revenue for the six months ended June 30, 2021, was approximately RMB 433.0 million, an increase of about RMB 114.8 million compared to RMB 318.2 million for the same period in 2020[5]. - The profit attributable to equity shareholders for the same period was approximately RMB 36.9 million, a decrease of about RMB 11.3 million from RMB 48.2 million in the previous year[5]. - Revenue for the period was approximately RMB 433.0 million, representing an increase of about 36.1% compared to the same period in 2020, driven by growth across all three business segments[22]. - Operating profit increased by approximately RMB 11.5 million or 15.6% from approximately RMB 73.4 million in the six months ended June 30, 2020, to approximately RMB 84.9 million, while the operating profit margin decreased from 23.1% to 19.6% due to increased operating costs[39]. - Net profit for the period was RMB 30,995 thousand, a decrease of 17.5% compared to RMB 37,697 thousand in 2020[88]. - The company reported a total comprehensive income of RMB 36,839,000 for the six months ended June 30, 2021, compared to RMB 48,039,000 for the same period in 2020, showing a decline of about 23.2%[95]. Revenue Breakdown - Revenue from leasing and facility usage increased by approximately RMB 21.0 million or 15.1% to about RMB 159.6 million compared to RMB 138.6 million for the six months ended June 30, 2020[24]. - Wastewater treatment fees rose by approximately RMB 24.1 million or 40.6% to about RMB 83.6 million from RMB 59.5 million for the six months ended June 30, 2020[26]. - Steam fees increased by approximately RMB 14.4 million or 41.2% to about RMB 49.4 million from RMB 35.0 million for the six months ended June 30, 2020[27]. - Utility system maintenance fees grew by approximately RMB 8.9 million or 37.1% to about RMB 32.9 million from RMB 24.0 million for the six months ended June 30, 2020[28]. - Sales of chemicals increased by approximately RMB 41.9 million or 85.1% to about RMB 91.0 million from RMB 49.2 million for the six months ended June 30, 2020[29]. Operational Metrics - The total leasable area across three plating industrial parks is 732,000 square meters, with a total occupancy rate of 84.8% as of June 30, 2021[8]. - The Guangdong Huizhou Park has a total leasable area of 400,000 square meters with a 100.0% occupancy rate[9]. - The Tianjin Binhai Park has a total leasable area of 260,000 square meters with a 78.5% occupancy rate[9]. - The Hubei Jingzhou Park has a total leasable area of 72,000 square meters with a 23.6% occupancy rate[9]. - The average daily wastewater treatment capacity across the three parks is 18,500 tons, with a utilization rate of 45.9%[10]. - The average daily wastewater treatment volume for the six months ended June 30, 2021, was 8,491 tons[10]. Costs and Expenses - Operating costs rose by approximately RMB 101.6 million or 40.6% to about RMB 352.0 million from RMB 250.4 million for the six months ended June 30, 2020[30]. - Depreciation and amortization increased by approximately RMB 13.7 million or 16.3% to about RMB 97.4 million from RMB 83.8 million for the six months ended June 30, 2020[32]. - Inventory costs surged by approximately RMB 58.7 million or 76.5% to about RMB 135.5 million from RMB 76.8 million for the six months ended June 30, 2020[33]. - Employee costs increased by approximately RMB 16.5 million or 57.5% to about RMB 45.2 million from RMB 28.7 million for the six months ended June 30, 2020[34]. - Utility costs rose by approximately RMB 4.2 million or 53.2% to about RMB 12.1 million from RMB 7.9 million for the six months ended June 30, 2020[35]. - Other expenses increased by approximately RMB 8.5 million or 16.0% from RMB 53.2 million in the six months ended June 30, 2020, to approximately RMB 61.7 million in the current period, primarily due to increased wastewater treatment costs and higher professional service fees[37]. Financing and Debt - As of June 30, 2021, total bank loans and borrowings amounted to approximately RMB 1,574.2 million, with a debt-to-equity ratio of approximately 1.3 times[49]. - The adjusted net debt-to-equity ratio as of June 30, 2021, is 1.19, compared to 1.01 as of December 31, 2020[51]. - Financing costs rose by approximately RMB 12.8 million or 46.3% from approximately RMB 27.7 million in the six months ended June 30, 2020, to approximately RMB 40.5 million, attributed to increased average bank loans and rising interest rates[40]. - The company raised RMB 523,964,000 from bank loans and other borrowings during the six months ended June 30, 2021, compared to RMB 154,077,000 in the same period of 2020, indicating a substantial increase in financing activities[99]. - The group’s bank loans of RMB 1,574,205,000 are subject to covenants, with no breaches reported as of June 30, 2021[138]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2021, amounted to approximately RMB 263.5 million, an increase from RMB 231.1 million for the same period in 2020[52]. - The company incurred a net cash outflow from investing activities of RMB 392,809,000 for the six months ended June 30, 2021, compared to RMB 171,869,000 in the same period in 2020, indicating a significant increase in investment expenditures[99]. - The cost of property, plant, and equipment acquired during the six months ended June 30, 2021, was RMB 324,884,000, up from RMB 199,864,000 for the same period in 2020, representing an increase of approximately 62.6%[126]. Employee and Management - The company has 687 full-time employees as of June 30, 2021, an increase of approximately 28.5% from 535 employees as of June 30, 2020[64]. - The total remuneration for key management personnel for the six months ended June 30, 2021, was RMB 2,806,000, slightly up from RMB 2,731,000 in the same period of 2020[144]. Future Plans and Developments - The group plans to expand its Guangdong Huizhou Park with a total construction area of approximately 48,000 square meters in the first phase, with an estimated cost of RMB 88.8 million[19]. - The construction of the Sichuan Qingshen Park is underway, with a planned maximum wastewater treatment capacity of 20,000 tons per day, and the first phase expected to add 5,000 tons per day upon completion[17]. - The second phase of the Hubei Jingzhou Park is under construction, with a total building area of 71,000 square meters and an estimated cost of RMB 161.0 million, expected to be completed in the second half of 2022[20]. Legal and Compliance - The interim financial report for the period ending June 30, 2021, was prepared in accordance with Hong Kong Accounting Standard 34[150]. - The review did not identify any matters that would lead to a belief that the interim financial report was not prepared in all material respects[150]. - The review was conducted by an independent auditor in compliance with the Hong Kong Institute of Certified Public Accountants' standards[149].

Financial Performance - For the fiscal year ending December 31, 2020, the company reported revenue of RMB 724.7 million, an increase of RMB 84.7 million or 13.2% compared to the previous year[9]. - The profit attributable to equity shareholders rose to RMB 102.6 million, an increase of RMB 47.5 million or 86.2% year-on-year[9]. - The total revenue for the year was approximately RMB 724.7 million, an increase of 13.2% compared to the same period in 2019, driven by growth across all three business segments[25]. - The rental income from the Guangdong Huizhou Park was RMB 57.3 million, while the Tianjin Binhai Park contributed RMB 24.9 million, totaling RMB 82.2 million, reflecting a 3.8% increase from RMB 79.2 million in 2019[26]. - The wastewater treatment revenue rose to RMB 151.9 million, a 4.5% increase from RMB 145.3 million in 2019, primarily due to higher average treatment prices despite reduced water usage during the COVID-19 outbreak[31]. - Steam revenue increased from approximately RMB 81.1 million in the year ended December 31, 2019, to approximately RMB 82.8 million, representing a growth of RMB 1.7 million or 2.2%[33]. - Utility system maintenance fees rose from approximately RMB 58.2 million in the year ended December 31, 2019, to approximately RMB 59.3 million, an increase of RMB 1.0 million or 1.8%[35]. - Revenue from chemical sales increased from approximately RMB 78.3 million to approximately RMB 126.6 million, a rise of RMB 48.3 million, accounting for 84.2% of the segment's revenue[36]. - Operating profit increased from approximately RMB 121.8 million to approximately RMB 173.3 million, an increase of RMB 51.5 million or 42.3%[43]. - The company reported a net profit of RMB 102,609 thousand for the year ended December 31, 2020, compared to a profit of RMB 55,146 thousand in 2019, marking an increase of 86.1%[173]. Operational Highlights - The company operates two electroplating industrial parks located in Guangdong and Tianjin, strategically positioned to benefit from a convenient transportation network[9]. - The company plans to commence operations at the "Central China Surface Treatment Circular Economy Industrial Park" in Jingzhou, Hubei Province in the first half of 2021, with over 20 electroplating manufacturers already signing letters of intent to settle there[9]. - The total leasable area of the Guangdong Huizhou Park reached approximately 347,000 square meters with a 100% occupancy rate as of December 31, 2020[16]. - The Tianjin Binhai Park had a total leasable area of approximately 260,000 square meters, with an occupancy rate of 74.6%, up from 67.6% in 2019[16]. - The overall occupancy rate for the group was 89.1% as of December 31, 2020, compared to 86.2% in 2019[16]. - The total daily wastewater treatment capacity reached 16,000 tons, with an average daily treatment volume of approximately 7,919 tons and an average utilization rate of 49.5%[19]. - The group plans to increase the maximum daily wastewater treatment capacity at the Guangdong Huizhou Park from 10,000 tons to 15,000 tons, pending government approval[23]. - The group is in the process of developing the Sichuan Qingshen project, with land use rights applications currently under review[22]. Environmental and Sustainability Initiatives - The company aims to enhance ecological environment and promote green development as part of its long-term sustainable development goals[10]. - The company is committed to achieving high levels of water recycling and reuse as a participant in the electroplating industrial wastewater treatment sector[12]. - The company has established a real-time automatic monitoring system for wastewater treatment to ensure compliance with emission standards[80]. - The company has maintained compliance with environmental laws and regulations, with no significant violations reported[84]. Challenges and Risks - The group is facing challenges due to the COVID-19 pandemic, which has affected market demand and may lead to reduced consumption of freshwater and utilities by tenants[21]. - The company faces risks related to the political, economic, and legal environment in China, which can impact the demand for electroplating products[79]. - The company has experienced significant changes in its business and financial conditions due to various risk factors[78]. Governance and Management - The company emphasizes employee training, providing onboarding and ongoing training programs to align staff performance with strategic goals[63]. - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[66]. - The company has implemented a stock option plan to incentivize eligible directors and employees, although no options have been granted since the plan's adoption[63]. - The company has established a whistleblowing policy allowing employees and stakeholders to report concerns about misconduct without fear of retaliation[148]. - The board has committed to ongoing training for all directors to ensure they are well-informed about their roles and responsibilities[142]. Financial Position and Capital Management - Cash generated from operating activities was approximately RMB 260.5 million for the year ended December 31, 2020, compared to RMB 275.4 million for the previous year[52]. - Total borrowings amounted to approximately RMB 1,249.0 million as of December 31, 2020, with a debt-to-equity ratio of approximately 1.1 times[56]. - Cash and cash equivalents decreased from approximately RMB 103.3 million as of December 31, 2019, to approximately RMB 72.8 million as of December 31, 2020[53]. - The company has limited foreign exchange risk as most transactions are conducted in RMB, but exposure exists due to assets and liabilities recorded in other currencies[57]. - The company is closely monitoring cash flow and considering various financing activities to strengthen its financial position[80]. Future Prospects - The company anticipates continued growth in revenue from its three business segments, supported by ongoing construction projects and increased demand for its services[25]. - The company plans to expand its rental space in Guangdong Huizhou Park by constructing four new factories with a total area of approximately 48,000 square meters at a budgeted cost of RMB 82.4 million, with completion expected in Q1 2021[24]. - The second phase of the expansion in Guangdong Huizhou Park will involve building four additional factories with a total area of approximately 65,000 square meters at a budgeted cost of RMB 111.2 million, with completion expected by the end of 2021[24]. Shareholder Information - The company has not proposed any final dividend for the year[82]. - The company made charitable donations totaling RMB 230,000 during the year[88]. - Mr. Zhang holds 478,800,000 shares, representing approximately 42.75% of the company's equity[112]. - Mr. Li owns 239,400,000 shares, which is about 21.40% of the company's equity[112]. - Mr. Huang has 42,000,000 shares, accounting for approximately 3.75% of the company's equity[112].