Financial Performance - For the six months ended June 30, 2020, the group's revenue was approximately RMB 318.2 million, an increase of approximately RMB 36.5 million compared to RMB 281.7 million for the same period in 2019, representing a growth of 12.95%[9] - The profit attributable to equity shareholders for the same period was approximately RMB 48.2 million, up by approximately RMB 38.5 million from RMB 9.7 million in the previous year, marking a significant increase of 396.10%[9] - The company's revenue for the six months ended June 30, 2020, was approximately RMB 318.2 million, representing an increase of about 13.0% compared to the same period in 2019[21] - The net profit attributable to equity shareholders was approximately RMB 48.2 million, an increase of approximately RMB 38.5 million from RMB 9.7 million in the same period last year[21] - Operating profit increased by approximately RMB 23.1 million or 45.9% to about RMB 73.4 million, with operating profit margin rising from 17.8% to 23.1%[31] - The company reported a profit of RMB 37,697,000 for the six months ended June 30, 2020, compared to RMB 3,151,000 for the same period in 2019, representing a significant increase[61] - The company reported a comprehensive income of RMB 37,499,000 for the six months ended June 30, 2020, compared to RMB 1,383,000 for the same period in 2019, showing a significant improvement[61] Revenue Breakdown - The total rental income from the Guangdong Huizhou area was RMB 28.64 million, while the Tianjin Binhai area contributed RMB 11.65 million, totaling RMB 40.29 million for the period[22] - The environmental technology service fees increased by 14.0% to RMB 91.38 million compared to the previous year, indicating growth in this segment[22] - Revenue from leasing and facility usage increased by approximately RMB 12.7 million or 10.1% to about RMB 138.6 million for the six months ended June 30, 2019[23] - Revenue from wastewater treatment and public utility services decreased to RMB 118,482,000, down 6.4% from RMB 127,113,000 in 2019[72] - Revenue from chemical sales increased by approximately RMB 27.5 million or 126.5% to about RMB 492 million, driven by enhanced centralized procurement systems[27] - Revenue from environmental technology and management services increased to RMB 98,331,000, a rise of 12.5% from RMB 87,497,000 in 2019[72] - Sales of goods and related services surged to RMB 61,108,000, a significant increase from RMB 28,671,000 in the previous year[72] Operational Metrics - The total leasable area of the two plating industrial parks as of June 30, 2020, was approximately 607,000 square meters, with an overall occupancy rate of 87.0%[11] - The Guangdong Huizhou Park had a 100% occupancy rate, while the Tianjin Binhai Park had an occupancy rate of approximately 69.6%[12] - The group's daily wastewater treatment capacity reached 16,000 tons, with an average daily treatment volume of approximately 6,440 tons, resulting in a utilization rate of about 40.3%[14] - The average daily wastewater treatment capacity utilization rate for the Guangdong Huizhou Park was 53.6%, while for the Tianjin Binhai Park, it was 18.0%[13] - The group aims to enhance its wastewater treatment capabilities and expand its industrial park operations to meet increasing demand in the plating industry[9] Cash Flow and Investments - As of June 30, 2020, the net cash generated from operating activities was approximately RMB 112.8 million, a decrease from RMB 135.6 million in the same period of 2019[35] - The net cash used in investing activities was approximately RMB 171.9 million, primarily due to the purchase of property, plant, and equipment amounting to RMB 173.2 million[36] - The net cash generated from financing activities was approximately RMB 38.3 million, mainly from bank loans and other borrowings totaling RMB 154.1 million[37] - The company has entered into a financing lease arrangement involving the sale and leaseback of wastewater treatment assets for a cash consideration of RMB 30 million and total lease payments of approximately RMB 31.84 million[15] - The total capital expenditure contracted but not yet incurred for the development of wastewater treatment facilities in Jingzhou, Hubei, and factories in Huizhou, Guangdong, was approximately RMB 368.6 million as of June 30, 2020[45] Assets and Liabilities - As of June 30, 2020, total current liabilities increased to approximately RMB 633.6 million from RMB 578.8 million as of December 31, 2019[38] - The total assets-liability ratio as of June 30, 2020, was approximately 0.9 times, compared to 0.8 times as of December 31, 2019[40] - The balance of property, plant, and equipment increased by approximately RMB 141.8 million compared to December 31, 2019, mainly due to investments in wastewater treatment facilities[33] - The total current assets decreased to approximately RMB 235.8 million from RMB 264.1 million as of December 31, 2019, mainly due to a reduction in cash and cash equivalents[38] - The company’s total liabilities increased to RMB 1,410,576,000 as of June 30, 2020, compared to RMB 1,370,671,000 at the end of 2019, indicating a rise of approximately 2.9%[63] Employee and Management Information - Employee costs, including director remuneration, were approximately RMB 28.7 million, representing an increase of about 11.7% compared to RMB 25.7 million for the six months ended June 30, 2019[43] - As of June 30, 2020, the company employed 535 full-time employees, up from 500 full-time employees as of June 30, 2019[43] - The total remuneration for key management personnel was RMB 2,731,000 for the six months ended June 30, 2020, compared to RMB 1,455,000 for the same period in 2019[105] Market and Economic Conditions - The company anticipates challenges in its operational and financial performance due to reduced consumption of freshwater, steam, and utilities amid ongoing COVID-19 impacts and trade tensions between the U.S. and China[17] - The company is closely monitoring economic changes to respond prudently to the evolving market conditions[17] - The company did not incur any significant adverse impact on its financial position or operational performance due to COVID-19 as of the reporting date[108] Corporate Governance - Major shareholders include Jin Chang Investment Limited with a 42.75% stake and Jin Shang Investment Limited with a 21.40% stake[54] - The audit committee, established on July 16, 2019, consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[57] - The company expressed gratitude to all shareholders and stakeholders for their continued support and acknowledged the efforts of all employees[58] Compliance and Reporting - The interim financial report for the period ending June 30, 2020, was prepared in accordance with Hong Kong Accounting Standards No. 34[109] - 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 according to the relevant accounting standards[111] - The report includes consolidated financial statements, comprehensive income statements, and cash flow statements for the six-month period[109]

Financial Performance - The company recorded revenue of RMB 640.0 million for the year ended December 31, 2019, an increase of RMB 160.3 million or 33.4% compared to the previous year[9]. - Profit attributable to equity shareholders increased to RMB 55.1 million, up RMB 7.2 million or 15.0% year-on-year[9]. - The company reported an adjusted profit of approximately RMB 73.1 million, a growth of 40.6% compared to the previous year, excluding one-off items related to the listing[9]. - The group's revenue for the year was approximately RMB 640.0 million, an increase of about 33.4% compared to RMB 479.7 million in 2018[14]. - The profit attributable to equity shareholders was approximately RMB 55.1 million, representing a 15.0% increase from RMB 47.9 million in 2018[14]. - The adjusted profit attributable to equity shareholders (excluding one-off items related to the listing) was approximately RMB 73.1 million, a growth of about 40.6% from RMB 52.0 million in 2018[14]. - Total revenue for the year was approximately RMB 640.0 million, an increase of 33.4% compared to RMB 479.7 million in 2018, driven by growth across all three business segments[27]. - Revenue from wastewater treatment and utilities increased by 28.3% to RMB 284.6 million, driven by higher demand for services[28]. - The company reported a significant increase in property management fees, which rose by 92.8% to RMB 15.1 million, reflecting higher service demand[28]. - Wastewater treatment fees increased by approximately RMB 34.2 million or 30.8% from RMB 111.1 million in 2018 to RMB 145.3 million in 2019, primarily due to increased chemical pollutant discharge and rising treatment costs[34]. - Steam fees rose by approximately RMB 19.8 million or 32.3% from RMB 61.3 million in 2018 to RMB 81.1 million in 2019, mainly due to an increase in steam consumption from new tenants and higher unit costs resulting from a switch from coal to natural gas[36]. - Utility system maintenance fees increased by approximately RMB 8.8 million or 17.8% from RMB 49.4 million in 2018 to RMB 58.2 million in 2019, driven by higher electricity consumption from tenants[38]. - Revenue from chemical sales increased by approximately RMB 52.2 million to RMB 78.3 million in 2019, with chemicals accounting for 82.9% of this business segment[39]. - Operating profit increased by approximately RMB 15.7 million or 14.8% from RMB 106.1 million in 2018 to RMB 121.8 million in 2019, with the operating profit margin slightly declining from 22.1% to 19.0%[46]. - Profit before tax increased by approximately RMB 9.6 million to about RMB 54.7 million, driven by the factors mentioned above[49]. - Net profit for the year reached RMB 41,855 thousand, up from RMB 36,411 thousand in 2018, reflecting a growth of approximately 15%[162]. - The company reported a total comprehensive income of RMB 45,851 thousand for 2019, up from RMB 36,750 thousand in 2018, indicating a growth of approximately 25%[162]. Operational Capacity - The average daily wastewater treatment capacity was 8,188 tons, remaining consistent with the previous year, while total leasable area increased from 476,000 square meters to 520,000 square meters[10]. - The occupancy rate as of December 31, 2019, was 86.2%[10]. - The total wastewater treatment capacity of the group was 16,000 tons per day, with an average annual treatment volume of approximately 8,188 tons and an average utilization rate of 51.2%[19]. - The total leasable area of the Guangdong Huizhou Park reached approximately 347,000 square meters with a 100% occupancy rate as of December 31, 2019[17]. - The Tianjin Binhai Park had a total leasable area of approximately 256,000 square meters with an occupancy rate of 67.6%, up from 61.6% in 2018[17]. - The wastewater treatment capacity in the Guangdong Huizhou area is planned to increase from 10,000 tons per day to 15,000 tons per day, with the application currently under review by local authorities[25]. - The company plans to construct eight new factory buildings in the Guangdong Huizhou area, with a total building area of approximately 113,000 square meters and a budgeted cost of approximately RMB 193.6 million[26]. - The construction of new wastewater treatment facilities in Tianjin Binhai Port is expected to be delayed until Q4 2020 due to adverse weather conditions and the complexity of construction requirements[25]. Strategic Development - The company is constructing projects in Jingzhou, Hubei, and Huizhou, Guangdong, to further increase wastewater treatment capacity and total leased area[11]. - The company aims to focus on market development plans targeting rapidly developing regions in China with lower risks[11]. - The company anticipates benefiting from increased demand for qualified electroplating industrial parks due to enhanced environmental protection measures by the Chinese government[10]. - The company has signed a new agreement with the Qing Shen government for the development of an industrial park covering approximately 1,170 acres, with a total development cost of about RMB 2 billion[24]. - The company has been engaged in the development and operation of electroplating industrial parks and providing centralized wastewater treatment services since its establishment in 2004[79]. Research and Development - The group obtained 44 registered patents and has 12 patents pending as of December 31, 2019, emphasizing its focus on research and development[21]. - The company has a strong focus on environmental protection and has not encountered any non-compliance issues with relevant laws and regulations[84]. Financial Position - As of December 31, 2019, total borrowings amounted to RMB 903.7 million, with a debt-to-equity ratio of approximately 0.8 times[59]. - Current liabilities decreased by approximately RMB 233.7 million to about RMB 578.8 million as of December 31, 2019[56]. - The group has a limited foreign exchange risk as most transactions are conducted in its functional currency, RMB[60]. - The group faces interest rate risk primarily from floating-rate bank loans, which are closely monitored by management[61]. - The company reported a total comprehensive income of RMB 59,142 thousand, a significant recovery from a loss of RMB 13,291 thousand in 2018[168]. - The total assets increased to RMB 2,640,564 thousand in 2019 from RMB 2,257,144 thousand in 2018, marking a growth of around 17%[164]. - Total equity increased significantly to RMB 1,079,909 thousand in 2019 from RMB 333,095 thousand in 2018, representing a growth of about 224%[165]. - The total liabilities decreased to RMB 1,560,655 thousand in 2019 from RMB 1,887,049 thousand in 2018, a reduction of about 17%[164]. - Cash and cash equivalents amounted to RMB 103,297 thousand in 2019, compared to RMB 291,422 thousand in 2018, reflecting a decrease of approximately 65%[164]. Corporate Governance - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[91]. - The company has complied with the listing rules by appointing at least three independent non-executive directors, representing one-third of the board[124]. - The board has adopted a diversity policy to enhance overall effectiveness, considering factors such as age, gender, nationality, education background, and industry experience[125]. - The company emphasizes good corporate governance and has adopted relevant codes and policies[121]. - The company has established procedures for shareholders to convene extraordinary general meetings under specific conditions[141]. - The company has ensured that all directors participated in various training sessions to enhance their knowledge and skills related to their responsibilities[124]. Shareholder Information - The company reported no final dividend for the fiscal year ending December 31, 2019[82]. - As of December 31, 2019, the company's distributable reserves amounted to approximately HKD 647,234,000 (equivalent to RMB 581,729,000)[86]. - The company has adopted a dividend policy that allows shareholders to share in profits while retaining sufficient reserves for future growth[138]. - The board considers various factors, including actual and expected financial performance, when determining dividend amounts[139]. Risk Management - The board has established effective internal control and risk management systems to assess risks associated with the group's strategic objectives[137]. - The board reviewed the risk management and internal control systems and deemed them sufficient and effective for the year[137]. - The company has an internal audit function responsible for analyzing and independently evaluating the adequacy and effectiveness of risk management and internal control systems[137]. Compliance and Regulations - The company has complied with relevant laws and regulations that significantly impact its operations during the fiscal year[81]. - The company has engaged professional services to ensure compliance across its subsidiaries in various jurisdictions[81]. - The company has not entered into any significant contracts with its controlling shareholders during the year[93]. - There were no major legal disputes involving the group during the year[98].

Financial Performance - Total revenue for the six months ended June 30, 2019, was RMB 281.7 million, an increase from RMB 207.3 million in the same period last year, representing a growth of approximately 35.7%[21] - Operating profit for the same period was RMB 50.3 million, compared to RMB 46.0 million in the previous year, reflecting an increase of about 7.9%[21] - Profit attributable to equity shareholders decreased by 34.9% to RMB 9.7 million, down from RMB 14.9 million in the prior year, primarily due to one-time listing expenses of RMB 13.8 million[17] - Adjusted profit attributable to equity shareholders, excluding listing expenses, increased by approximately 57.7% to RMB 23.5 million[17] - The company's revenue increased by approximately RMB 74.4 million (or 35.9%) to RMB 281.7 million, compared to RMB 207.3 million in the same period last year, primarily due to higher water prices and increased wastewater treatment fees[22] - Wastewater treatment fees rose by RMB 37.3 million (or 41.5%) to RMB 127.1 million, up from RMB 89.8 million in the previous year, aligning with the overall revenue increase[22] - Operating costs increased by approximately RMB 74.2 million (or 45.4%) to RMB 237.7 million, compared to RMB 163.5 million in the same period last year, consistent with the revenue growth[23] - Employee costs rose by RMB 4.0 million (or 18.4%) to RMB 25.7 million, attributed to hiring additional staff to support the expanding operations, particularly in the Tianjin Binhai Park[23] - Other expenses increased by RMB 26.4 million (or 70.4%) to RMB 63.9 million, mainly due to listing expenses of approximately RMB 13.8 million and increased sludge treatment costs[24] - The adjusted profit attributable to equity shareholders increased by RMB 8.6 million (or 57.7%) to RMB 23.5 million, compared to RMB 14.9 million in the same period last year[27] - Net profit for the period was RMB 3,151,000, a decrease of 73.0% compared to RMB 11,655,000 in the previous year[48] - Total comprehensive income for the period was RMB 1,383,000, down from RMB 11,322,000, reflecting a significant decline[48] Assets and Liabilities - As of June 30, 2019, the company's total borrowings amounted to RMB 1,039.3 million, with a significant portion due within one year[29] - The debt-to-equity ratio as of June 30, 2019, was 1.5 times, a decrease from 4.4 times as of December 31, 2018[30] - Non-current assets totaled RMB 2,022,048,000 as of June 30, 2019, compared to RMB 1,965,722,000 at the end of 2018, showing an increase of 2.9%[49] - Current liabilities decreased to RMB 550,770,000 from RMB 1,103,908,000, a reduction of 50.1%[49] - Total equity increased to RMB 716,701,000 from RMB 333,095,000, marking a growth of 115.5%[50] - The company reported a significant increase in bank loans and borrowings, totaling RMB 210,000,000, compared to RMB 120,000,000 in the previous year[53] - The company’s total liabilities exceeded its current assets by RMB 341,455,000 as of June 30, 2019, raising concerns about liquidity[57] - The total amount of trade and other payables was RMB 362,859,000 as of June 30, 2019, significantly reduced from RMB 966,400,000 as of December 31, 2018, indicating a decrease of about 62.5%[84] - Bank loans and other borrowings totaled RMB 1,039,268,000 as of June 30, 2019, compared to RMB 871,878,000 as of December 31, 2018, reflecting an increase of approximately 19.2%[87] Cash Flow - Cash generated from operating activities was RMB 135,631,000, significantly higher than RMB 75,450,000 for the same period in 2018, reflecting an increase of approximately 79.8%[53] - The company incurred a net cash outflow from investing activities of RMB 61,037,000, compared to RMB 208,243,000 in the prior year, showing an improvement of about 70.7%[54] - The financing activities resulted in a net cash outflow of RMB 96,179,000, contrasting with a net inflow of RMB 134,968,000 in the same period last year[54] - Cash and cash equivalents as of June 30, 2019, were approximately RMB 59.1 million, down from RMB 80.7 million as of December 31, 2018[30] - Cash and cash equivalents decreased to RMB 59,148 thousand from RMB 80,733 thousand[97] Capital Expenditures and Investments - Capital expenditures during the reporting period were approximately RMB 125.3 million, primarily for land use rights in Hubei Jingzhou and wastewater treatment facilities in Tianjin Binhai Park[30] - The company successfully acquired land use rights for three plots totaling 325,981 square meters in Jingzhou, Hubei, for a total cost of RMB 65.8 million[18] - The group acquired property, plant, and equipment at a cost of RMB 60,143,000 for the six months ended June 30, 2019, up from RMB 56,143,000 for the same period in 2018, indicating a growth of 3.6%[75] Shareholder Information - Major shareholders include Jin Chang Investment holding 478,800,000 shares (42.8%) and Jin Shang Investment holding 239,400,000 shares (21.4%) as of the report date[36][38] - The company did not declare any interim dividends during the reporting period, consistent with the previous period[34] - The company completed its initial public offering on July 16, 2019, issuing 280,000,000 shares at an initial offering price of HKD 1.33 per share[111] Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, enhancing corporate governance practices[44] - The company adopted a share option scheme on June 18, 2019, to provide incentives and rewards to eligible directors and employees[35] Related Party Transactions - The group recorded significant related party transactions amounting to RMB 49,666,000 for the six months ended June 30, 2019, compared to RMB 19,070,000 for the same period in 2018, representing an increase of approximately 160%[107] - The group received advances from related parties totaling RMB 60,777,000 for the six months ended June 30, 2019, down from RMB 464,074,000 in the same period of 2018, indicating a decrease of about 87%[108] - The group had no outstanding payables to related parties as of June 30, 2019, while total payables to related parties were RMB 603,662,000 as of December 31, 2018, indicating a significant reduction[110]