新加坡證券交易所有限公司、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，概不對本公告全部或 任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 於本公告日期，董事會主席兼執行董事爲周予鼎先生；執行董事為汲廣林先生、王希望先生及 楊 興 先 生 ； 及 獨 立 非 執 行 董 事 為 潘 劍 鳴 博 士 、 安 紅 軍 先 生 及 鍾 銘 先 生 。 * 謹供識別 （香港股份代號﹕807） （新加坡股份代號﹕BHK） 董事會會議日期 上海實業環境控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣布，董 事會會議將於 2025 年 8 月 12 日（星期二）舉行，藉以（其中包括）批准刊發本公司及其附屬 公司截至 2025 年 6 月 30 日止六個月之中期業績，以及考慮派發股息（如有）。 承董事會命 上海實業環境控股有限公司 執行董事 汲廣林先生 香港和新加坡，2025 年 7 月 31 日 SIIC ENVIRONMENT HOLDINGS LTD. 上海實業環境控股有限公司* （在新加坡共和國註冊成立的有限 ...

Summary of Key Points Core Viewpoint - As of July 14, a total of 138 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders including Green Heart Group Holdings, OK Blockchain, and Pearl River Steel Pipe [1]. Group 1: Top Performers - Green Heart Group Holdings (02999) achieved a closing price of 0.013 with a peak of 0.017, marking a 70.00% increase [1]. - OK Blockchain (01499) closed at 0.680, reaching a high of 0.690, reflecting a 48.39% rise [1]. - Pearl River Steel Pipe (01938) had a closing price of 0.335 and a peak of 0.340, resulting in a 33.33% increase [1]. Group 2: Other Notable Stocks - Weishi Jiajie (00856) saw a 32.01% increase, closing at 8.870 with a high of 11.300 [1]. - Cloud Intelligence (09678) reached a high of 520.000, closing at 510.000, which is a 20.99% increase [1]. - China Chengtong Development Group (00217) closed at 0.165 with a peak of 0.166, marking a 14.48% rise [1]. Group 3: Additional Stocks with Significant Increases - Sihuan Pharmaceutical (00460) closed at 1.380, reaching a high of 1.430, which is a 14.40% increase [1]. - Taited Pharmaceutical (03880) had a closing price of 36.950 and a peak of 37.400, reflecting a 13.85% rise [1]. - Beihai Kangcheng-B (01228) closed at 0.850 with a high of 0.960, resulting in a 12.94% increase [1].

Core Viewpoint - The announcement details the freezing of shares held by the controlling shareholder, Jinan High-tech Urban Construction Development Co., Ltd., due to a legal dispute related to construction contracts, which may impact the company's control stability in the future [2][4]. Shareholder Share Freezing Situation - As of the announcement date, the controlling shareholder and its concerted parties hold 255,878,689 shares, accounting for 28.92% of the total share capital. A total of 159,079,912 shares are frozen or marked judicially, representing 62.17% of the controlling shareholder's holdings and 17.99% of the total share capital [2]. - The shares frozen due to the dispute with China New Emerging Construction Development Co., Ltd. involve 142,307,521 shares, which is 55.62% of the controlling shareholder's total holdings and 16.09% of the total share capital [2][3]. Other Matters - The controlling shareholder has not experienced any overdue debts or downgrades in credit ratings in the past year. Other litigation matters do not involve the listed company [4]. - The freezing of shares is not expected to significantly impact the company's operations or governance, nor does it involve substantial asset restructuring obligations [4]. - The current situation of frozen shares will not lead to a change in control of the company, although the high percentage of frozen shares could affect control stability if judicial disposal occurs [4].

Financial Performance - The company's net profit attributable to shareholders reached RMB 605.1 million for the year ended December 31, 2024, representing a year-on-year increase of 0.2%[11] - Total revenue increased by 0.3% year-on-year to RMB 7.596 billion, while gross profit decreased by 3.2% to RMB 2.618 billion[11] - The company's basic and diluted earnings per share were both RMB 23.49, reflecting a slight increase of 0.2% compared to the previous year[15] - The pre-tax profit for the year was RMB 1.213 billion, a decrease of 12.9% from the previous year[15] - The company reported a significant increase in profit for the fourth quarter, with a year-on-year growth of 80.9% to RMB 172.1 million[15] - The company reported a net profit after tax of RMB 951,642,000 for the year ended December 31, 2024[65] - The company reported a net profit after tax of RMB 1,019,656,000 for the year ended December 31, 2023[66] Revenue and Segments - Total revenue for the year ended December 31, 2024, reached RMB 7,595,654,000, with significant contributions from water and sludge treatment (RMB 5,856,893,000) and water supply (RMB 1,066,939,000) segments[65] - The operating profit for the reported segments totaled RMB 1,904,194,000, with water and sludge treatment generating RMB 1,650,220,000 in operating profit[65] - The water and sludge treatment segment's revenue increased by 16.44% to RMB 5.8569 billion in 2024, while the solid waste power generation segment's revenue decreased by 31.18% to RMB 671.8 million[127] Expenses and Profitability - Administrative expenses rose by 14.0% year-on-year to RMB 657 million, impacting overall profitability[15] - Financial expenses amounted to RMB 779,461,000, impacting overall profitability[65] - The company incurred financial expenses of RMB 779,461 thousand for the twelve months ended December 31, 2024, down from RMB 834,254 thousand in 2023, indicating a decrease of 6.6%[22] - The gross profit for Q4 2024 was RMB 629 million, an increase of 28.4% compared to RMB 490 million in Q4 2023. However, the annual gross profit decreased by 3.2% to RMB 2.618 billion from RMB 2.704 billion in 2023[113] Assets and Liabilities - Cash and cash equivalents stood at RMB 2.92 billion as of December 31, 2024, indicating a healthy liquidity position[11] - Group current assets increased to RMB 10,778,160 thousand in 2024 from RMB 9,270,986 thousand in 2023, representing an increase of approximately 16.2%[17] - Group total assets rose to RMB 44,956,498 thousand in 2024, up from RMB 42,607,940 thousand in 2023, reflecting a growth of about 5.5%[19] - Group current liabilities decreased to RMB 9,264,203 thousand in 2024 from RMB 10,258,345 thousand in 2023, a reduction of approximately 9.7%[19] - Group non-current liabilities increased to RMB 19,609,785 thousand in 2024, compared to RMB 17,059,139 thousand in 2023, marking an increase of about 14.9%[19] Cash Flow - The net cash generated from operating activities for the twelve months ended December 31, 2024, was RMB 565,089 thousand, compared to RMB 1,901,197 thousand in 2023, indicating a decrease of 70.3%[24] - The net cash used in investing activities for the twelve months ended December 31, 2024, was RMB 1,707,236 thousand, compared to RMB 1,433,995 thousand in 2023, showing an increase of 19.0%[24] - The cash inflow from financing activities for the three months ended December 31, 2024, was RMB 453,049 thousand, a significant increase from an outflow of RMB 122,170 thousand in the same period of 2023[24] Equity and Dividends - The company declared dividends amounting to RMB 82,431 thousand to equity shareholders during the period ending June 30, 2024[30] - The total annual dividend for 2024 is CNY 82.431 million, a decrease from CNY 202.703 million in 2023[149] - As of December 31, 2024, total equity is projected to be RMB 16,082,510 thousand, with a profit of 172,091 thousand for the period[34] Governance and Compliance - The company maintained compliance with corporate governance codes throughout the reporting period[13] - The company has not reported any significant changes in management positions related to directors or major shareholders' relatives[150] - The company confirmed that there are no issues that would lead to material misstatements in the financial statements as of December 31, 2024[143] Market and Economic Outlook - The Chinese economy is expected to grow by 5% in 2024, with favorable policies for the environmental protection industry continuing to emerge, providing significant development opportunities[130] - The National People's Congress approved a resolution to increase local government debt limits by CNY 6 trillion to replace hidden debts, with CNY 800 billion allocated annually for five years starting in 2024[131] - The People's Bank of China and the Ministry of Ecology and Environment emphasized the importance of green finance, aiming to support pollution prevention and upgrade wastewater treatment facilities[133]

Financial Performance - The net profit attributable to shareholders for the first nine months of 2024 reached RMB 499.6 million, representing a year-on-year decline of 14.4%[5]. - Total revenue decreased by 17.0% year-on-year to RMB 5.272 billion[5]. - Gross profit fell by 10.2% year-on-year to RMB 1.989 billion[5]. - The company reported a basic earnings per share of RMB 6.92, down 13.5% compared to the previous year[9]. - The total comprehensive income for the period was RMB 271.3 million, a decrease of 11.0% year-on-year[9]. - Administrative expenses increased by 25.5% year-on-year to RMB 407.7 million[9]. - The company reported a pre-tax profit of RMB 995,178 thousand for the nine months ended September 30, 2024, compared to RMB 1,255,879 thousand for the same period in 2023, reflecting a decrease of approximately 20.7%[13]. - The company reported a profit of RMB 206,033 thousand for the period ending September 30, 2023[23]. - The profit attributable to owners for Q3 2024 was RMB 178.2 million, a decline of 13.5% from RMB 206 million in Q3 2023[67]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, amounted to RMB 2.77 billion, indicating a healthy liquidity position[5]. - The group's cash and cash equivalents stood at RMB 2,771,712 thousand as of September 30, 2024, compared to RMB 2,885,781 thousand as of December 31, 2023, showing a decrease of about 3.9%[10]. - The cash flow from operating activities for the nine months ended September 30, 2024, was RMB 37,670 thousand, a significant decline from RMB 718,035 thousand for the same period in 2023, representing a decrease of approximately 94.7%[14]. - The net cash used in investing activities for the nine months ended September 30, 2024, was RMB (808,885) thousand, compared to RMB (1,695,441) thousand for the same period in 2023, indicating a reduction in cash outflow by approximately 52.3%[14]. - The net cash generated from financing activities for the nine months ended September 30, 2024, was RMB 721,427 thousand, a significant increase from RMB 32,712 thousand for the same period in 2023, reflecting a growth of approximately 2,107.5%[14]. Assets and Liabilities - As of September 30, 2024, the total current assets of the group amounted to RMB 10,587,022 thousand, an increase from RMB 9,270,986 thousand as of December 31, 2023, representing a growth of approximately 14.2%[10]. - The total non-current assets of the group were RMB 33,156,213 thousand as of September 30, 2024, slightly decreasing from RMB 33,336,954 thousand as of December 31, 2023, indicating a decline of about 0.5%[11]. - The total liabilities of the group reached RMB 27,782,044 thousand as of September 30, 2024, compared to RMB 27,317,484 thousand at the end of the previous fiscal year, reflecting an increase of approximately 1.7%[12]. - The group's current liabilities totaled RMB 8,432,086 thousand as of September 30, 2024, down from RMB 10,258,345 thousand at the end of the previous fiscal year, a decrease of approximately 17.8%[11]. - The group's total assets amounted to RMB 43,743,235 thousand as of September 30, 2024, an increase from RMB 42,607,940 thousand at the end of the previous fiscal year, representing a growth of approximately 2.7%[11]. Equity and Retained Earnings - The total equity attributable to the owners of the company was RMB 10,526,328 thousand as of September 30, 2024, up from RMB 10,131,507 thousand as of December 31, 2023, marking an increase of around 3.9%[11]. - The group's retained earnings increased to RMB 4,371,275 thousand as of September 30, 2024, from RMB 3,955,497 thousand as of December 31, 2023, marking an increase of around 10.5%[11]. - As of September 30, 2024, the total equity of the company was RMB 6,613,451 thousand, reflecting a decrease from RMB 6,651,037 thousand as of June 30, 2024[24]. - The group declared dividends amounting to RMB 82,431 thousand to equity shareholders[18]. - The company declared dividends amounting to RMB 82,431 thousand during the reporting period[24]. Operational Performance - The operating profit for reportable segments totaled RMB 1,294,113 thousand for the nine months ended September 30, 2024, compared to RMB 1,809,030 thousand for the same period in 2023, indicating a decrease of about 28%[34]. - The net profit after tax for the water and sludge treatment segment was RMB 779,551 thousand for the nine months ended September 30, 2024, compared to RMB 924,519 thousand for the same period in 2023, a decline of about 16%[34]. - The company reported a total of RMB 3,932,075 thousand in revenue from the water and sludge treatment segment for the nine months ended September 30, 2024, compared to RMB 3,553,155 thousand for the same period in 2023, representing an increase of approximately 11%[34]. - The construction revenue for Q3 2024 was RMB 453.8 million, a significant drop of 47.3% from RMB 861.9 million in Q3 2023[68]. - The operating and maintenance revenue from franchise arrangements for Q3 2024 totaled RMB 1.3248 billion, a slight increase of 0.3% from RMB 1.3207 billion in Q3 2023[69]. Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[7]. - The company has not made any adjustments to its accounting policies during the reporting period[28]. - The company has maintained the same accounting policies and methods for the current financial year as those used in the audited financial statements for the year ended December 31, 2023[63]. - There have been no changes in accounting policies or methods during the reporting period[64]. - The company has received confirmation from all directors and executives regarding the absence of any material misstatements in the financial statements as of September 30, 2024[90]. Market and Economic Environment - The macroeconomic environment in China continues to show robust growth, providing significant development opportunities for the environmental protection industry[86]. - The company is positioned to capitalize on national policies promoting green and low-carbon development, which will support steady growth in its core business[86]. - The company has commenced operations at the Baoshan Renewable Energy Utilization Center, capable of processing 3,800 tons of waste daily, contributing to waste treatment and resource utilization in Shanghai[88].

Company Overview - SIIC Environment Holdings Ltd. operates approximately 245 wastewater treatment and water supply projects, 5 solid waste incineration projects, and 14 sludge treatment projects across 20 municipalities and provinces in China[5]. - The company aims to expand its market share and scale in water and solid waste treatment, while exploring opportunities in industrial wastewater treatment, seawater desalination, and renewable energy[5]. - SIIC Environment is backed by strong mergers and acquisitions capabilities, positioning itself as a leading operator in the environmental industry in China[4]. - The company has shown tremendous growth, continuously increasing its market share in China's environmental market[5]. - SIIC Environment is committed to protecting the planet and conserving natural resources as part of its corporate mission[4]. - The company was successfully listed on the Mainboard of SEHK in 2018, enhancing its visibility and investment potential[5]. - SIIC Environment's strategic investor, China Energy Conservation and Environmental Protection Group, is a state-owned enterprise focused on energy conservation and environmental protection[5]. - The company has a strong operational history of over 15 years in the environmental protection industry in China[5]. - The company is actively pursuing new technologies and strategies to enhance its service offerings in the environmental sector[5]. Project Capacities and Operations - The company reported a daily capacity of 100,000 tonnes for the Dongguan City Dalang Songshanhu Southern WWTP Project, which is currently in operation and undergoing upgrades[15]. - The wastewater treatment capacity for the Huizhou City Meihu Water Purification Center Project is 200,000 tonnes, with 100% completion for both the 1st and 2nd phases[16]. - The company has a 75.5% interest in the Dongguan City Shijie Shayao WWTP Project, which has a daily capacity of 60,000 tonnes and is under government construction[15]. - The wastewater treatment projects in Fujian province include a 12,500 tonnes capacity for the Arxi County Longmen Town WWTP Project, with 100% construction completed for the 1st phase[15]. - The company is expanding its market presence with multiple projects in Guangdong, including the Pinghu WWTP Project with a capacity of 25,000 tonnes, which is currently in operation[16]. - The company has a strategic focus on upgrading existing facilities to meet Class I Standard B requirements, as seen in the Dongguan City Dalang project[15]. - The wastewater treatment projects are aligned with local discharge limits, ensuring compliance with environmental standards[16]. - The company is actively involved in the construction of new projects, with several in the pipeline across various provinces, indicating a robust growth strategy[15]. Financial Performance - The Group's revenue for 2QFY2024 was RMB1,695.4 million, a decrease of 19.3% compared to RMB2,100.1 million in 2QFY2023[49]. - Profit for the period was RMB303.2 million in 2QFY2024, down 13.8% from RMB351.6 million in 2QFY2023[49]. - Profit attributable to owners of the Company was RMB195.2 million in 2QFY2024, representing a decrease of 14.2% from RMB227.3 million in 2QFY2023[50]. - Construction revenue was RMB272.2 million in 2QFY2024, a significant decrease of 59.5% compared to RMB672.7 million in 2QFY2023[52]. - Operating and maintenance income from service concession arrangements totaled RMB1,303.5 million in 2QFY2024, an increase of 0.5% from RMB1,296.9 million in 2QFY2023[55]. - Other revenue decreased to RMB69.1 million in 2QFY2024, down 16.0% from RMB82.3 million in 2QFY2023[59]. - For the six months ended June 30, 2024, total revenue was RMB3,323.5 million, a decrease of 17.3% compared to RMB4,018.8 million for the same period in 2023[49]. - The Group's gross profit (GP) was RMB666.2 million in 2QFY2024, a decrease of RMB95.6 million or 12.5% compared to RMB761.8 million in 2QFY2023[61]. - Gross profit margin (GPM) improved to 39.3% in 2QFY2024, an increase of 3.0% from 36.3% in 2QFY2023[61]. Assets and Liabilities - Current assets as of June 30, 2024, amounted to RMB10.17 billion, representing an increase of 9.6% compared to RMB9.27 billion as of December 31, 2023[76]. - Non-current assets as of June 30, 2024, amounted to RMB33.15 billion, showing a slight decrease of 0.6% compared to RMB33.34 billion as of December 31, 2023[76]. - Current liabilities as of June 30, 2024, amounted to RMB8.96 billion, representing a decrease of 12.7% compared to RMB10.26 billion as of December 31, 2023[76]. - Non-current liabilities as of June 30, 2024, amounted to RMB18.66 billion, representing an increase of 9.4% compared to RMB17.06 billion as of December 31, 2023[76]. - Total borrowings amounted to approximately RMB21.23 billion as of June 30, 2024, an increase from RMB20.26 billion as of December 31, 2023[78]. - Total equity attributable to owners of the Company increased to RMB10,352,738 as of June 30, 2024, compared to RMB10,131,507 as of December 31, 2023[84]. Corporate Governance and Compliance - The company has appointed Deloitte & Touche LLP as its auditor starting from the financial year ending December 31, 2024, enhancing its governance structure[10]. - The company’s board currently comprises four executive directors and three independent non-executive directors, with the chairman not considered independent[116]. - The company has complied with the Singapore Code of Corporate Governance 2018 and the HK Corporate Governance Code, except for certain provisions regarding board composition[116]. - The Company is actively seeking suitable candidates to join the Board as Independent Non-Executive Directors to enhance independence and diversity[118]. - The Company has established a Lead Independent Director to address shareholder concerns regarding independence[118]. - The remuneration committee comprises four members, three of whom are independent, ensuring a formal and transparent procedure for developing remuneration policies[120]. Strategic Initiatives and Future Outlook - The Group aims to establish 100 exemplary low-carbon sewage treatment plants by the end of 2025, enhancing energy resource recycling[128]. - The digital transformation of water affairs is targeted to achieve significant results by 2027 and a comprehensive breakthrough by 2030[130]. - The Group plans to focus on water treatment and resource recycling, expand market presence, and pursue mergers and acquisitions[133]. - The Group will leverage its dual-listing advantages in Singapore and Hong Kong to develop business in Southeast Asia's "Belt and Road" countries[133]. - The Group is committed to reducing carbon dioxide emissions from sewage treatment projects to support national carbon neutrality goals[128]. - The Group will continue to optimize its business layout and expand market share in China's water and environmental protection industries[126]. - The Group is actively promoting technological innovation and digital empowerment to drive sustainable development[133].

[Performance Review](index=4&type=section&id=Performance%20Review) The group's key financial data for H1 2024 shows a decrease in net profit and total revenue, with healthy cash and cash equivalents Group's Key Financial Data for H1 2024 | Metric | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | | Net Profit Attributable to Equity Holders | 321,400 | -14.8% | | Total Revenue | 3,323,500 | -17.3% | | Gross Profit | 1,277,400 | -11.2% | - As of June 30, 2024, the group's cash and cash equivalents reached **RMB 2.85 billion**, indicating a healthy level[5](index=5&type=chunk) [Review of Interim Results](index=4&type=section&id=Review%20of%20Interim%20Results) The Audit Committee has reviewed the company's unaudited consolidated interim results for the six months ended June 30, 2024 - The Audit Committee has reviewed the company's unaudited consolidated interim results for the six months ended June 30, 2024[6](index=6&type=chunk) [Corporate Governance](index=4&type=section&id=Corporate%20Governance) The company complied with all code provisions of the Corporate Governance Code during the six months ended June 30, 2024 - For the six months ended June 30, 2024, the company has complied with all code provisions of the **Code on Corporate Governance in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[6](index=6&type=chunk) [Condensed Interim Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the group's comprehensive income for the six months ended June 30, 2024, detailing revenue, expenses, and profit Condensed Interim Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30, 2024) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,323,515 | 4,018,849 | -17.3 | | Cost of Sales | (2,046,128) | (2,581,137) | -20.7 | | Gross Profit | 1,277,387 | 1,437,712 | -11.2 | | Other Income | 42,854 | 58,187 | -26.4 | | Other Gains and Losses | 2,481 | 10,712 | -76.8 | | Selling and Distribution Expenses | (37,966) | (37,883) | 0.2 | | Administrative Expenses | (400,052) | (415,742) | -3.8 | | Finance Costs | (1,033) | 18,728 | N.M. | | Share of Results of Joint Ventures | 8,755 | 3,660 | 139.2 | | Income Tax Expense | (143,701) | (218,744) | -34.3 | | Profit for the Period | 508,217 | 593,632 | -14.4 | | Profit for the Period Attributable to Owners of the Company | 321,446 | 377,351 | -14.8 | | Basic EPS (RMB cents) | 12.48 | 14.65 | -14.8 | | Diluted EPS (RMB cents) | 12.48 | 14.65 | -14.8 | [Condensed Interim Statement of Financial Position](index=6&type=section&id=Condensed%20Interim%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the group's financial position as of June 30, 2024, including assets, liabilities, and equity Condensed Interim Statement of Financial Position (Group, as of June 30, 2024) | Metric | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 10,165,073 | 9,270,986 | 9.6 | | Total Non-Current Assets | 33,147,052 | 33,336,954 | -0.6 | | **Total Assets** | **43,312,125** | **42,607,940** | **1.6** | | **Liabilities** | | | | | Total Current Liabilities | 8,958,063 | 10,258,345 | -12.7 | | Total Non-Current Liabilities | 18,660,614 | 17,059,139 | 9.4 | | **Total Liabilities** | **27,618,677** | **27,317,484** | **1.1** | | **Equity** | | | | | Equity Attributable to Owners of the Company | 10,352,738 | 10,131,507 | 2.2 | | Non-Controlling Interests | 5,340,710 | 5,158,949 | 3.5 | | **Total Equity** | **15,693,448** | **15,290,456** | **2.6** | [Condensed Interim Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) This statement outlines the group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2024 Condensed Interim Consolidated Statement of Cash Flows (Group, For the Six Months Ended June 30, 2024) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | (64,417) | 929,789 | | Net Cash Used In Investing Activities | (384,661) | (966,674) | | Net Cash From (Used In) Financing Activities | 422,042 | (275,316) | | Net Decrease in Cash and Cash Equivalents | (27,036) | (312,201) | | Cash and Cash Equivalents at End of Period | 2,852,035 | 2,204,910 | - Net cash used in operating activities was **RMB 64.4 million**, reflecting higher working capital requirements during the period[78](index=78&type=chunk) - Net cash used in investing activities was **RMB 384.7 million**, primarily for the purchase of property, plant and equipment and intangible assets[78](index=78&type=chunk) - Net cash generated from financing activities was **RMB 422.0 million**, mainly due to increased net proceeds from bank and other borrowings, partially offset by repayment of bank and other borrowings and interest payments[78](index=78&type=chunk) [Condensed Interim Statement of Changes in Equity](index=11&type=section&id=Condensed%20Interim%20Statement%20of%20Changes%20in%20Equity) This statement details the changes in the group's equity attributable to owners and non-controlling interests for the six months ended June 30, 2024 Condensed Interim Statement of Changes in Equity (Group, as of June 30, 2024) | Metric | June 30, 2024 (RMB thousands) | Jan 1, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 10,352,738 | 10,131,507 | | Non-Controlling Interests | 5,340,710 | 5,158,949 | | **Total Equity** | **15,693,448** | **15,290,456** | - For H1 2024, profit for the period attributable to owners of the company was **RMB 321.4 million**, and profit attributable to non-controlling interests was **RMB 186.8 million**[8](index=8&type=chunk) - Dividends declared to equity holders amounted to **RMB 82.4 million**[17](index=17&type=chunk) [Notes to the Condensed Interim Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the condensed interim consolidated financial statements, covering various accounting aspects [1. General Information](index=17&type=section&id=1.%20General%20Information) The company is dual-listed in Singapore and Hong Kong, with primary operations in China and no change in principal business - The company is dual-listed in **Singapore and Hong Kong**, and its principal business has not changed[24](index=24&type=chunk) - The group's primary operating activities are conducted in **China**, and the financial statements are presented in RMB[25](index=25&type=chunk) [2. Basis of Preparation](index=17&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Singapore International Financial Reporting Standard 1-34 and HKEX Listing Rules, with consistent accounting policies [2.1 Amendments to Major Accounting Policies of the Group](index=17&type=section&id=2.1%20Amendments%20to%20Major%20Accounting%20Policies%20of%20the%20Group) The group has not changed its accounting policies or made retrospective adjustments due to new standard amendments - The group has not changed its accounting policies or made retrospective adjustments due to the adoption of new standard amendments[26](index=26&type=chunk) [2.2 Estimates](index=18&type=section&id=2.2%20Estimates) Management made key judgments and estimates regarding receivables under service concession arrangements and goodwill impairment, concluding no impairment provision is needed - Management made key judgments and estimates regarding receivables under service concession arrangements and goodwill impairment assessment, concluding no impairment provision is needed[27](index=27&type=chunk) [2.3 Financial Risk Management Objectives and Policies](index=18&type=section&id=2.3%20Financial%20Risk%20Management%20Objectives%20and%20Policies) The group faces foreign currency, interest rate, liquidity, and credit risks, with unchanged risk management policies since year-end - The group faces foreign currency, interest rate, liquidity, and credit risks, with risk management policies unchanged since year-end[28](index=28&type=chunk) [3. Seasonal Business](index=18&type=section&id=3.%20Seasonal%20Business) The group's operations are not significantly affected by seasonal or cyclical factors - The group's operations are not significantly affected by seasonal or cyclical factors[29](index=29&type=chunk) [4. Segment Information](index=19&type=section&id=4.%20Segment%20Information) The group operates in water and sludge treatment, water supply, and waste-to-energy segments, with performance assessed by operating profit - The group's reportable segments include **water and sludge treatment**, **water supply**, and **waste-to-energy**[30](index=30&type=chunk) - Segment performance is assessed based on operating profit, while financing and income tax are managed on a group basis[30](index=30&type=chunk) Segment Revenue and Operating Profit (For the Six Months Ended June 30, 2024) | Segment | Revenue (RMB thousands) | Operating Profit (RMB thousands) | | :--- | :--- | :--- | | Water and Sludge Treatment | 2,439,599 | 763,058 | | Water Supply | 554,733 | 67,878 | | Waste-to-Energy | 194,847 | 103,303 | | Other Segments | 134,336 | 38,655 | | **Total** | **3,323,515** | **934,239** | Segment Assets and Liabilities (As of June 30, 2024) | Segment | Assets (RMB thousands) | Liabilities (RMB thousands) | | :--- | :--- | :--- | | Water and Sludge Treatment | 30,365,223 | 12,430,022 | | Water Supply | 5,665,992 | 2,562,473 | | Waste-to-Energy | 5,645,519 | 3,929,517 | | Other Segments | 397,488 | 1,365,870 | | Unallocated | 450,676 | 7,330,795 | | **Total** | **43,312,125** | **27,618,677** | [5. Revenue](index=24&type=section&id=5.%20Revenue) Total revenue for H1 2024 was **RMB 3.3235 billion**, primarily from service concession arrangements and construction income Revenue Breakdown (For the Six Months Ended June 30, 2024) | Revenue Type | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Construction Revenue | 562,225 | 1,287,000 | | Service Concession Arrangement O&M Revenue | 1,908,809 | 1,859,029 | | Service Concession Arrangement Finance Income | 616,762 | 642,202 | | Service Revenue | 101,383 | 95,068 | | Other Income | 134,336 | 135,550 | | **Total Revenue** | **3,323,515** | **4,018,849** | [6. Income Tax Expense](index=24&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense for H1 2024 was **RMB 143.7 million**, a **34.3% decrease**, with Chinese subsidiaries benefiting from tax incentives Income Tax Expense (For the Six Months Ended June 30, 2024) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Tax: Current Year | 126,970 | 134,471 | | Under-provision in Prior Periods | 512 | 4,082 | | Deferred Tax: Current Year | 18,575 | 79,023 | | Under- (Over-) provision in Prior Periods | (2,356) | 1,168 | | **Total Income Tax Expense** | **143,701** | **218,744** | - Chinese subsidiaries are subject to a **25%** corporate income tax rate, with some engaged in public infrastructure projects enjoying tax exemption for the **first three years** and a **50% reduction** for the subsequent three years[37](index=37&type=chunk) [7. Profit for the Period](index=25&type=section&id=7.%20Profit%20for%20the%20Period) Profit for the period is influenced by depreciation, amortization, finance costs, and share of results from associates/joint ventures Key Deductions/Additions to Profit for the Period (For the Six Months Ended June 30, 2024) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 27,294 | 16,921 | | Amortization of Intangible Assets | 238,987 | 194,723 | | Depreciation of Right-of-Use Assets | 9,470 | 5,123 | | Finance Income | (14,119) | (14,317) | | Finance Costs | 400,052 | 415,742 | | Share of Results of Associates | (8,755) | (3,660) | | Share of Results of Joint Ventures | 1,033 | (18,728) | [8. Trade and Other Receivables](index=26&type=section&id=8.%20Trade%20and%20Other%20Receivables) Trade receivables increased by **26.4%** to **RMB 5.081 billion** as of June 30, 2024, with a significant portion over 365 days Aging Analysis of Trade Receivables (As of June 30, 2024) | Aging | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 915,817 | 1,133,684 | | 31 to 60 days | 372,030 | 382,217 | | 61 to 90 days | 364,417 | 348,617 | | 91 to 180 days | 887,776 | 684,525 | | 181 to 365 days | 1,182,515 | 554,497 | | Over 365 days | 1,358,935 | 915,629 | | **Total** | **5,081,490** | **4,019,169** | [9. Receivables under Service Concession Arrangements](index=26&type=section&id=9.%20Receivables%20under%20Service%20Concession%20Arrangements) Receivables under service concession arrangements totaled **RMB 23.068 billion** as of June 30, 2024, with a large non-current portion Receivables under Service Concession Arrangements (As of June 30, 2024) | Type | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Portion | 934,509 | 887,152 | | Non-Current Portion | 22,133,507 | 22,374,059 | | **Total** | **23,068,016** | **23,261,211** | Expected Collection Schedule (As of June 30, 2024) | Schedule | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 934,509 | 887,152 | | 2 to 5 years | 3,902,784 | 3,671,624 | | Over 5 years | 18,230,723 | 18,702,435 | [10. Intangible Assets](index=26&type=section&id=10.%20Intangible%20Assets) Additions to intangible assets significantly decreased to **RMB 288.6 million** in H1 2024 compared to the prior year - Additions to intangible assets for H1 2024 amounted to **RMB 288.6 million**, a significant decrease from **RMB 1.003 billion** in the same period of 2023[42](index=42&type=chunk) [11. Trade and Other Payables](index=27&type=section&id=11.%20Trade%20and%20Other%20Payables) Trade payables decreased by **14.2%** to **RMB 1.997 billion** as of June 30, 2024, with a substantial portion over 365 days Aging Analysis of Trade Payables (As of June 30, 2024) | Aging | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 520,897 | 702,713 | | 31 to 60 days | 57,841 | 93,223 | | 61 to 90 days | 51,754 | 57,274 | | 91 to 180 days | 164,968 | 124,272 | | 181 to 365 days | 263,099 | 641,800 | | Over 365 days | 938,283 | 705,475 | | **Total** | **1,996,842** | **2,324,757** | [12. Bank and Other Borrowings](index=27&type=section&id=12.%20Bank%20and%20Other%20Borrowings) Total bank and other borrowings amounted to **RMB 21.226 billion** as of June 30, 2024, secured by various assets and corporate guarantees Bank and Other Borrowings (Group, as of June 30, 2024) | Type | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Payable within 1 year or on demand | 5,129,045 | 5,767,008 | | Payable after 1 year | 16,097,289 | 14,491,791 | | **Total** | **21,226,334** | **20,258,799** | - Bank and other borrowings are secured by concession agreements, trade receivables (related to concession agreements) collection rights, assets of subsidiaries, assets of third-party companies, and/or corporate guarantees from Shanghai Industrial Environment Holdings Co., Ltd[45](index=45&type=chunk) [13. Share Capital](index=28&type=section&id=13.%20Share%20Capital) As of June 30, 2024, the issued and fully paid ordinary shares totaled **2,575,665,726 shares**, amounting to **RMB 5.920 billion** Issued and Fully Paid Share Capital (As of June 30, 2024) | Metric | Number of Shares | Amount (RMB thousands) | | :--- | :--- | :--- | | Ordinary Shares | 2,575,665,726 | 5,920,175 | - Ordinary shareholders are entitled to receive dividends when declared by the company. All ordinary shares carry one vote and are unrestricted. Ordinary shares have no par value[46](index=46&type=chunk) - Neither the company nor its subsidiaries redeemed, purchased, or sold any of the company's listed securities during the six months ended June 30, 2024[46](index=46&type=chunk) [14. Dividends](index=28&type=section&id=14.%20Dividends) The final dividend for FY2023 of **SGD 0.006** per ordinary share was approved and paid on May 31, 2024 - The final dividend (single-tier tax exempt) of **SGD 0.006** per ordinary share for FY2023 was approved at the Annual General Meeting held on April 29, 2024, and paid on May 31, 2024[47](index=47&type=chunk) [15. Net Asset Value and Earnings Per Share](index=28&type=section&id=15.%20Net%20Asset%20Value%20and%20Earnings%20Per%20Share) Group net asset value per ordinary share was **RMB 401.94 cents**, and basic and diluted earnings per share were **RMB 12.48 cents** as of June 30, 2024 Net Asset Value and Earnings Per Share (As of June 30, 2024) | Metric | Group (RMB cents) | Company (RMB cents) | | :--- | :--- | :--- | | NAV per Ordinary Share | 401.94 | 258.23 | | Basic EPS | 12.48 | N/A | | Diluted EPS | 12.48 | N/A | [16. Fair Value Measurement of Financial Instruments](index=29&type=section&id=16.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) Financial assets are measured across fair value hierarchy levels, with non-listed equity securities and put options classified as Level 3 Fair Value Measurement of Financial Assets (As of June 30, 2024) | Financial Asset | June 30, 2024 (RMB thousands) | Fair Value Hierarchy Level | | :--- | :--- | :--- | | Financial Assets at FVTOCI (Unlisted Equity Securities) | 13,400 | Level 3 | | Financial Assets at FVTPL (Listed Equity Securities) | 2,901 | Level 1 | | Financial Assets at FVTPL (Put Options on Unlisted Equity Securities) | 6,506 | Level 3 | - Receivables under service concession arrangements and bank and other borrowings are classified as Level 3 in the fair value hierarchy, with fair values estimated at the end of the reporting period by discounting expected future cash flows at prevailing interest or borrowing rates[51](index=51&type=chunk) [17. Events After the Reporting Period](index=30&type=section&id=17.%20Events%20After%20the%20Reporting%20Period) Management has determined that there are no disclosable events after the reporting period - Group management has determined that there are no disclosable events after the reporting period[52](index=52&type=chunk) [Additional Information Required by Appendix 7.2 of the SGX-ST Listing Manual](index=28&type=section&id=Additional%20Information%20Required%20by%20Appendix%207.2%20of%20the%20SGX-ST%20Listing%20Manual) This section provides additional disclosures mandated by Appendix 7.2 of the SGX-ST Listing Manual, covering various corporate and financial details [1(d)(ii) Changes in Share Capital](index=31&type=section&id=1%28d%29%28ii%29%20Changes%20in%20Share%20Capital) Refer to Note 13 of the condensed interim consolidated financial statements for details on share capital changes - For changes in share capital, please refer to Note 13 of the condensed interim consolidated financial statements[53](index=53&type=chunk) [1(d)(iii) Total Number of Issued Shares](index=31&type=section&id=1%28d%29%28iii%29%20Total%20Number%20of%20Issued%20Shares) As of June 30, 2024, the total number of issued ordinary shares was **2,575,665,726 shares**, with no treasury shares held - As of June 30, 2024, **2,575,665,726 ordinary shares** were issued, with no treasury shares[54](index=54&type=chunk) [1(d)(iv) Use of Treasury Shares](index=31&type=section&id=1%28d%29%28iv%29%20Use%20of%20Treasury%20Shares) There were no sales, transfers, disposals, cancellations, or uses of treasury shares during the period ended June 30, 2024 - As of June 30, 2024, there were no sales, transfers, disposals, cancellations, or uses of treasury shares[55](index=55&type=chunk) [1(d)(v) Use of Shares Held by Subsidiaries in the Holding Company](index=31&type=section&id=1%28d%29%28v%29%20Use%20of%20Shares%20Held%20by%20Subsidiaries%20in%20the%20Holding%20Company) There were no sales, transfers, disposals, cancellations, or uses of shares held by subsidiaries in the holding company during the period - As of the end of the period, there were no sales, transfers, disposals, cancellations, or uses of shares held by subsidiaries in the holding company[56](index=56&type=chunk) [2. Whether the Figures Have Been Audited or Reviewed in Accordance with Financial Standards or Practices](index=31&type=section&id=2.%20Whether%20the%20Figures%20Have%20Been%20Audited%20or%20Reviewed%20in%20Accordance%20with%20Financial%20Standards%20or%20Practices) The financial report data has not been audited or reviewed by the company's auditors - The financial report data has not been audited or reviewed by the company's auditors[57](index=57&type=chunk) [3. If the Figures Have Been Audited, Provide the Auditor's Report (Including Qualifications or Emphasis of Matter)](index=31&type=section&id=3.%20If%20the%20Figures%20Have%20Been%20Audited%2C%20Provide%20the%20Auditor%27s%20Report%20%28Including%20Qualifications%20or%20Emphasis%20of%20Matter%29) An auditor's report is not applicable as the data has not been audited - Not applicable[57](index=57&type=chunk) [4. Whether the Same Accounting Policies and Methods of Computation Were Applied as in the Most Recent Audited Annual Financial Statements](index=32&type=section&id=4.%20Whether%20the%20Same%20Accounting%20Policies%20and%20Methods%20of%20Computation%20Were%20Applied%20as%20in%20the%20Most%20Recent%20Audited%20Annual%20Financial%20Statements) The group applied the same accounting policies and methods of computation in this financial year's statements as in the audited statements for the year ended December 31, 2023 - The group applied the same accounting policies and methods of computation in this financial year's financial statements as in the audited financial statements for the year ended December 31, 2023[58](index=58&type=chunk) [5. If There Are Any Changes in Accounting Policies and Methods of Computation, Including Accounting Standards, Nature of Change, Reasons for Change, and Effect of Change](index=32&type=section&id=5.%20If%20There%20Are%20Any%20Changes%20in%20Accounting%20Policies%20and%20Methods%20of%20Computation%2C%20Including%20Accounting%20Standards%2C%20Nature%20of%20Change%2C%20Reasons%20for%20Change%2C%20and%20Effect%20of%20Change) There have been no changes in accounting policies and methods of computation - No changes were made to accounting policies and methods of computation[59](index=59&type=chunk) [6. Earnings Per Share for the Current and Previous Financial Year, After Deducting Any Provision for Preference Dividends](index=32&type=section&id=6.%20Earnings%20Per%20Share%20for%20the%20Current%20and%20Previous%20Financial%20Year%2C%20After%20Deducting%20Any%20Provision%20for%20Preference%20Dividends) Refer to Note 15 of the condensed interim consolidated financial statements for earnings per share information - For earnings per share information, please refer to Note 15 of the condensed interim consolidated financial statements[59](index=59&type=chunk) [7. Net Asset Value Per Ordinary Share as at (a) the End of the Current Period; and (b) the End of the Previous Financial Year (Issuer and Group; Excluding Treasury Shares)](index=32&type=section&id=7.%20Net%20Asset%20Value%20Per%20Ordinary%20Share%20as%20at%20%28a%29%20the%20End%20of%20the%20Current%20Period%3B%20and%20%28b%29%20the%20End%20of%20the%20Previous%20Financial%20Year%20%28Issuer%20and%20Group%3B%20Excluding%20Treasury%20Shares%29) Refer to Note 15 of the condensed interim consolidated financial statements for net asset value per ordinary share information - For net asset value per ordinary share information, please refer to Note 15 of the condensed interim consolidated financial statements[59](index=59&type=chunk) [8. Review of the Group's Performance](index=32&type=section&id=8.%20Review%20of%20the%20Group%27s%20Performance) This section reviews the group's H1 2024 operating performance, including revenue, gross profit, expenses, and cash flows [Overview](index=32&type=section&id=%E7%BB%BC%E8%BF%B0) This table provides an overview of the group's performance for Q2 and H1 2024, including revenue and profit Group Performance Overview (Q2 and H1 2024) | Metric | Q2 2024 (RMB hundreds of millions) | Q2 2023 (RMB hundreds of millions) | Change (%) | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 16.954 | 21.001 | -19.3 | 33.235 | 40.188 | -17.3 | | Profit for the Period | 3.032 | 3.516 | -13.8 | 5.082 | 5.936 | -14.4 | | Profit Attributable to Owners of the Company | 1.952 | 2.273 | -14.2 | 3.214 | 3.774 | -14.8 | [(A) Revenue](index=33&type=section&id=%28A%29%20Revenue) This table details the composition and changes in revenue for H1 2024, with explanations for significant variations Revenue Composition and Changes (H1 2024) | Revenue Type | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Construction Revenue | 5.622 | 12.870 | -56.3 | Major projects completed in FY2023, new project construction for 2024 expected to commence in H2 | | Service Concession Arrangement O&M and Finance Income | 25.256 | 25.012 | 1.0 | Increased wastewater treatment and water supply volumes and average unit prices | | Entrusted Operation Revenue | 1.014 | 0.951 | 6.6 | Contribution from new projects | | Other Main Business Revenue | 1.343 | 1.356 | 0.9 | Changes in non-recurring installation project volumes | [(B) Gross Profit/Gross Profit Margin](index=33&type=section&id=%28B%29%20Gross%20Profit%2FGross%20Profit%20Margin) This table shows the changes in gross profit and gross profit margin for H1 2024, along with contributing factors Gross Profit and Gross Profit Margin Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Gross Profit | 12.774 | 14.377 | -11.2 | | Gross Profit Margin | 38.4% | 35.8% | +2.6pp | - Gross profit decreased primarily due to lower construction revenue. The increase in gross profit margin was mainly attributable to the lower proportion of construction revenue, which has a lower gross profit margin, as well as higher wastewater treatment and water supply volumes reducing unit costs, and an increase in average unit prices for wastewater and water supply further improving the gross profit margin[66](index=66&type=chunk) [(C) Other Income](index=33&type=section&id=%28C%29%20Other%20Income) This table presents the change in other income for H1 2024, primarily due to reduced non-core engineering and production volumes Other Income Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Other Income | 0.429 | 0.582 | -26.4 | - The decrease was primarily due to reduced engineering and production volumes unrelated to core business operations[67](index=67&type=chunk) [(D) Other Gains and Losses](index=34&type=section&id=%28D%29%20Other%20Gains%20and%20Losses) This table details the change in other gains and losses for H1 2024, mainly influenced by unrealized foreign exchange gains Other Gains and Losses Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Net Gain | 0.025 | 0.107 | -76.8 | - The change was primarily due to higher unrealized foreign exchange gains recorded in Q2 2024, offsetting losses at the beginning of the year[68](index=68&type=chunk) [(E) Selling and Distribution Expenses](index=34&type=section&id=%28E%29%20Selling%20and%20Distribution%20Expenses) This table shows the slight increase in selling and distribution expenses for H1 2024, primarily due to higher maintenance costs Selling and Distribution Expenses Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 0.380 | 0.379 | 0.2 | - The increase was primarily due to higher maintenance costs[69](index=69&type=chunk) [(F) Administrative Expenses](index=34&type=section&id=%28F%29%20Administrative%20Expenses) This table presents the decrease in administrative expenses for H1 2024, attributed to cost-saving measures Administrative Expenses Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Administrative Expenses | 2.405 | 2.630 | -8.6 | - The decrease was primarily due to cost-saving measures[70](index=70&type=chunk) [(G) Finance Costs](index=34&type=section&id=%28G%29%20Finance%20Costs) This table details the decrease in finance costs for H1 2024, resulting from optimized financing structure Finance Costs Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Finance Costs | 4.001 | 4.157 | -3.8 | - During the six-month period, finance costs significantly decreased compared to the same period last year, despite an increase in financing scale, due to continuous optimization of the financing structure by replacing high-interest non-RMB loans with lower-interest RMB loans[71](index=71&type=chunk) [(H) Share of Results of Associates/Joint Ventures](index=34&type=section&id=%28H%29%20Share%20of%20Results%20of%20Associates%2FJoint%20Ventures) Changes in the share of results from associates and joint ventures for H1 2024 reflect varying contributions - The share of results of joint ventures for the six months ended June 30, 2024, decreased compared to the same period last year, primarily due to lower contributions from joint ventures[72](index=72&type=chunk) - The share of results of associates for the six months ended June 30, 2024, increased compared to the same period last year, primarily due to higher contributions from associates[72](index=72&type=chunk) [(I) Income Tax Expense](index=34&type=section&id=%28I%29%20Income%20Tax%20Expense) This table shows the decrease in income tax expense for H1 2024, driven by reduced revenue and pre-tax profit Income Tax Expense Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Income Tax Expense | 1.437 | 2.187 | -34.3 | - The decrease in income tax expense was due to lower revenue and profit before tax during the reporting period[73](index=73&type=chunk) [Statement of Financial Position](index=35&type=section&id=%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) This section reviews key changes in the group's statement of financial position, including current and non-current assets and liabilities [(J) Current Assets](index=35&type=section&id=%28J%29%20Current%20Assets) Total current assets increased by **9.6%** to **RMB 10.17 billion**, mainly due to higher trade receivables - As of June 30, 2024, the group's total current assets increased by **9.6%** to **RMB 10.17 billion**, primarily due to higher trade receivables generated from revenue in H1 2024[74](index=74&type=chunk) [(K) Non-Current Assets](index=35&type=section&id=%28K%29%20Non-Current%20Assets) Total non-current assets slightly decreased by **0.6%** to **RMB 33.15 billion**, primarily due to depreciation and amortization - As of June 30, 2024, the group's total non-current assets slightly decreased by **0.6%** to **RMB 33.15 billion**, primarily due to depreciation and amortization[75](index=75&type=chunk) [(L) Current Liabilities](index=35&type=section&id=%28L%29%20Current%20Liabilities) Total current liabilities decreased by **12.7%** to **RMB 8.96 billion**, mainly due to repayment of trade payables and short-term borrowings - As of June 30, 2024, the group's total current liabilities decreased by **12.7%** to **RMB 8.96 billion**, primarily due to the repayment of trade and other payables and short-term borrowings[76](index=76&type=chunk) [(M) Non-Current Liabilities](index=35&type=section&id=%28M%29%20Non-Current%20Liabilities) Total non-current liabilities increased by **9.4%** to **RMB 18.66 billion**, primarily due to long-term borrowings from loan restructuring - As of June 30, 2024, the group's total non-current liabilities increased by **9.4%** to **RMB 18.66 billion**, primarily due to long-term borrowings obtained after loan restructuring[77](index=77&type=chunk) [Consolidated Statement of Cash Flows](index=35&type=section&id=%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This table provides an overview of the group's cash flows from operating, investing, and financing activities for H1 2024 Cash Flow Overview (As of June 30, 2024) | Cash Flow Type | Amount (RMB hundreds of millions) | Primary Reason | | :--- | :--- | :--- | | Net Operating Activities | -0.644 | Higher working capital requirements | | Net Investing Activities | -3.847 | Purchase of property, plant and equipment and intangible assets | | Net Financing Activities | 4.220 | Increase in net proceeds from bank and other borrowings, partially offset by repayment of borrowings and interest payments | [9. Any Variance Between Forecast or Prospect Statement and Actual Results](index=35&type=section&id=9.%20Any%20Variance%20Between%20Forecast%20or%20Prospect%20Statement%20and%20Actual%20Results) The company has not disclosed any forecasts or prospect statements to shareholders - No forecasts or prospect statements were disclosed to shareholders[79](index=79&type=chunk) [10. Significant Trends and Competitive Conditions, and Known Factors or Events That May Affect the Group's Operations in the Next Reporting Period and the Next 12 Months, as at the Date of Announcement](index=36&type=section&id=10.%20Significant%20Trends%20and%20Competitive%20Conditions%2C%20and%20Known%20Factors%20or%20Events%20That%20May%20Affect%20the%20Group%27s%20Operations%20in%20the%20Next%20Reporting%20Period%20and%20the%20Next%2012%20Months%2C%20as%20at%20the%20Date%20of%20Announcement) The group plans to capitalize on China's economic recovery and environmental policies, focusing on project development, market expansion, and technological innovation - The group will seize opportunities from China's economic recovery, ecological civilization construction, and carbon peak and carbon neutrality policies[80](index=80&type=chunk) - Steady progress will be made in existing project construction and upgrading, with the Shanghai Baoshan Renewable Energy Utilization Center already operational and Qingpu Xicen Water Purification Plant construction proceeding as scheduled[80](index=80&type=chunk) - The group will actively respond to water policies, explore low-carbon technologies, promote digital water management, and utilize green finance policies to optimize its financing structure[80](index=80&type=chunk)[81](index=81&type=chunk) - Looking ahead, the group will focus on its core business of water treatment and water resource recycling, intensify market expansion and M&A, enhance lean operations, strengthen technological innovation, promote digital empowerment, drive high-quality sustainable development, and actively develop business in Southeast Asian 'Belt and Road' countries[81](index=81&type=chunk) [11. Dividends](index=37&type=section&id=11.%20Dividends) No interim ordinary dividend was declared or recommended for the current period - No interim ordinary dividend was declared or recommended for the current period[82](index=82&type=chunk) Dividend Information for the Same Period in the Previous Financial Year | Metric | Content | | :--- | :--- | | Dividend Name | Ordinary Cash Dividend | | Dividend Type | Interim | | Dividend | **SGD 0.005** per share | | Tax Rate | Single-tier tax exempt | [12. If No Dividend Has Been Declared/Recommended, State the Reasons for Not Declaring/Recommending Any Dividend](index=37&type=section&id=12.%20If%20No%20Dividend%20Has%20Been%20Declared%2FRecommended%2C%20State%20the%20Reasons%20for%20Not%20Declaring%2FRecommending%20Any%20Dividend) No dividend was declared due to the need for funds to support capital expenditures and project investments - No dividend was declared by the company due to the need for funds to support capital expenditures and project investments[84](index=84&type=chunk) [13. Total Amount of Interested Person Transactions (IPT) for the Current Financial Period Reported on a Consolidated Basis, Pursuant to Rule 920(1)(a)(ii) If the Group Has Obtained a General Mandate from Shareholders for IPTs. If No IPT Mandate Has Been Obtained, a Statement to That Effect](index=37&type=section&id=13.%20Total%20Amount%20of%20Interested%20Person%20Transactions%20%28IPT%29%20for%20the%20Current%20Financial%20Period%20Reported%20on%20a%20Consolidated%20Basis%2C%20Pursuant%20to%20Rule%20920%281%29%28a%29%28ii%29%20If%20the%20Group%20Has%20Obtained%20a%20General%20Mandate%20from%20Shareholders%20for%20IPTs.%20If%20No%20IPT%20Mandate%20Has%20Been%20Obtained%2C%20a%20Statement%20to%20That%20Effect) The company has not obtained a general mandate from shareholders for Interested Person Transactions - The company has not obtained a general mandate from shareholders for Interested Person Transactions[84](index=84&type=chunk) [14. Confirmation by the Board Pursuant to Rule 705(5) of the SGX-ST Listing Manual](index=38&type=section&id=14.%20Confirmation%20by%20the%20Board%20Pursuant%20to%20Rule%20705%285%29%20of%20the%20SGX-ST%20Listing%20Manual) Directors Ji Guanglin and Wang Xiwang confirm that the financial statements for June 30, 2024, are not materially false or misleading - We, Ji Guanglin and Wang Xiwang, on behalf of the Board of Directors, confirm that, to the best of our knowledge, the Board of Directors is not aware of any matters that would render the financial statements for June 30, 2024, materially false or misleading[85](index=85&type=chunk) [15. Confirmation That the Issuer Has Procured Undertakings from All Directors and Executive Officers](index=38&type=section&id=15.%20Confirmation%20That%20the%20Issuer%20Has%20Procured%20Undertakings%20from%20All%20Directors%20and%20Executive%20Officers) The company confirms it has obtained undertakings from all directors and executive officers as per Listing Rule 720(1) Appendix 7.7 - The company confirms it has obtained undertakings from all directors and executive officers in the format set out in Appendix 7.7 of Listing Rule 720(1)[86](index=86&type=chunk)

Financial Performance - The net profit attributable to shareholders for the first quarter ended March 31, 2024, was RMB 126.3 million, a decrease of 15.8% compared to the same period last year[5]. - Total revenue for the group decreased by 15.1% to RMB 1.628 billion compared to RMB 1.919 billion in the previous year[5]. - Gross profit fell by 9.6% to RMB 611.2 million from RMB 676 million year-on-year[5]. - The total comprehensive income for the period was RMB 200 million, a decline of 24.4% from RMB 264.5 million year-on-year[8]. - Basic and diluted earnings per share for the period were both RMB 4.90, reflecting a decrease of 15.8%[8]. - The group reported a net profit after tax of RMB 204,977 thousand for the three months ended March 31, 2024, compared to RMB 241,999 thousand for the same period in 2023, reflecting a decrease of about 15.4%[25][30]. - The company reported a loss of RMB 251,522 thousand for the period ending March 31, 2024, compared to a profit in the previous period[17]. - The total comprehensive loss for the period was RMB 32,389 thousand, reflecting a significant decrease in earnings[17]. Revenue Breakdown - Construction revenue for Q1 2024 was RMB 290 million, a significant drop of 52.8% from RMB 614.3 million in Q1 2023, primarily due to the completion of the Baoshan project[56]. - Service concession operation and maintenance revenue for Q1 2024 totaled RMB 1.222 billion, an increase of 1.5% from RMB 1.204 billion in Q1 2023, driven by higher wastewater treatment and water supply volumes[57]. - Non-service concession entrusted operation revenue for Q1 2024 was RMB 50.7 million, up 8.4% from RMB 46.8 million in Q1 2023, contributed by new projects[58]. - Other main revenue for Q1 2024 was RMB 65.2 million, a 22.4% increase from RMB 53.3 million in Q1 2023, mainly due to changes in non-recurring installation project volumes[59]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2024, stood at RMB 3.05 billion, indicating a healthy liquidity position[5]. - The net cash generated from operating activities for the three months ended March 31, 2024, was RMB (76,300) thousand, compared to RMB 47,459 thousand for the same period in 2023, indicating a decline in cash flow from operations[11]. - The total cash and cash equivalents at the end of March 31, 2024, amounted to RMB 3,048,527 thousand, an increase from RMB 2,577,555 thousand at the end of March 31, 2023[12]. - The cash and cash equivalents at the end of the reporting period were RMB 3.049 billion, up 5.6% from RMB 2.886 billion at the end of 2023[71]. Assets and Liabilities - As of March 31, 2024, total current assets amounted to RMB 9,913,291 thousand, an increase from RMB 9,270,986 thousand as of December 31, 2023, representing a growth of approximately 6.9%[9]. - Total non-current assets as of March 31, 2024, were RMB 33,273,689 thousand, slightly down from RMB 33,336,954 thousand as of December 31, 2023, indicating a decrease of about 0.2%[10]. - Total assets reached RMB 43,186,980 thousand as of March 31, 2024, compared to RMB 42,607,940 thousand at the end of the previous fiscal year, reflecting an increase of approximately 1.4%[10]. - Total current liabilities were RMB 8,311,818 thousand as of December 31, 2023, down from RMB 10,258,345 thousand, showing a decrease of about 19%[10]. - Total non-current liabilities increased to RMB 19,389,732 thousand as of December 31, 2023, from RMB 17,059,139 thousand, representing an increase of approximately 13.6%[10]. - The group’s total liabilities as of March 31, 2024, were RMB 27,701,550 thousand, compared to RMB 27,317,484 thousand as of December 31, 2023, indicating an increase of about 1.4%[27][28]. Expenses and Costs - The group's tax expense for the period was RMB 71.6 million, down 23.9% from RMB 94 million in the previous year[8]. - Income tax expenses in Q1 2024 were RMB 71.6 million, down 23.9% from RMB 94.0 million in Q1 2023, resulting from a decrease in revenue during the reporting period[66]. - Administrative expenses in Q1 2024 were RMB 128.1 million, down 5.0% from RMB 134.8 million in Q1 2023, attributed to cost-saving measures[64]. - Financial expenses in Q1 2024 were RMB 204.2 million, a decrease of 10.1% from RMB 227.0 million in Q1 2023, due to restructuring efforts that replaced loans with lower interest rates[65]. Equity and Shareholder Information - The company's equity attributable to owners was RMB 10,252,809 thousand as of December 31, 2023, up from RMB 10,131,507 thousand, indicating a growth of about 1.2%[10]. - The group’s total equity as of March 31, 2024, was RMB 15,485,430 thousand, up from RMB 15,290,456 thousand as of January 1, 2024[14]. - The weighted average number of ordinary shares outstanding for the calculation of basic and diluted earnings per share remained constant at 2,575,665,726 shares for both periods[43]. - The company plans to pay a final dividend of SGD 0.006 per ordinary share, approved at the annual general meeting held on April 29, 2024[42]. Operational Highlights - The operating profit for the water and sludge treatment segment was RMB 413,669 thousand, while the total operating profit for all reportable segments was RMB 466,319 thousand, down from RMB 556,496 thousand in the previous year[25]. - In Q1 2024, three wastewater treatment projects commenced commercial operations, with a total treatment capacity of nearly 160,000 tons[72]. - The company did not declare any dividends due to the need for funds to support capital expenditures and project investments[75]. Financial Risks and Compliance - The company faces various financial risks, including foreign currency risk and liquidity risk, which are managed by the board and management[22]. - The financial statements are prepared in accordance with Singapore Financial Reporting Standards, with no changes in accounting policies[19]. - The board of directors confirmed that there are no significant matters that would lead to misstatements or misleading information in the financial statements as of March 31, 2024[76].

Financial Performance - In FY2023, SIIC Environment's revenue reached RMB 7.573 billion, with a net profit attributable to shareholders of RMB 604 million[14]. - The Group achieved a revenue of RMB 7.6 billion, a profit attributable to owners of the Company of RMB 604 million, and an EBITDA of RMB 2.7 billion for FY2023, reflecting a CAGR of 6.2%, 0.2%, and 7.0% respectively since FY2019[31]. - The Group reported a revenue decrease of 8.8% from RMB 8.3 billion in 2022 to RMB 7.6 billion in 2023[40]. - Gross profit increased by 2.7% to RMB 2.7 billion in FY2023 compared to RMB 2.6 billion in FY2022[40]. - Profit for the year attributable to owners of the Company decreased by 22.6% from RMB 780 million in 2022 to RMB 604 million in 2023[40]. - Total assets increased to RMB 42.6 billion and net assets reached RMB 15.3 billion in FY2023, showing significant growth over the years[31]. - The Group's revenue composition from operating and service income and financial income from service concession arrangements grew at a CAGR of 11.9% from RMB 2.9 billion in 2019 to RMB 4.3 billion in 2023[36]. Operational Highlights - The Group was awarded five quality wastewater treatment projects during the year, with a total designed capacity of nearly 200,000 tonnes per day[14]. - SIIC Environment operates approximately 250 wastewater treatment and water supply projects, 5 solid waste incineration projects, and 13 sludge treatment projects across 20 regions in China[9]. - In FY2023, the Group's wastewater treatment volume increased by 2.2% year-on-year to 2,525 million tonnes, and the average treatment fee rose by 7.8% to RMB1.87/tonne[22]. - Revenue from water and sludge treatment grew by 6.55% to RMB5,030 million, while gross profit increased by 2.7% to RMB2,704 million[22]. - The Group acquired 5 new wastewater treatment projects and signed agreements for 17 projects involving upgrades, expansions, and tariff increases[21]. Financial Management - The Group's financial expenses increased due to international market changes, prompting proactive measures to manage liquidity risks and ensure financial stability[18]. - The company plans to optimize its financing structure by replacing short-term borrowings with long-term borrowings at lower interest rates[18]. - The Group plans to enhance fund recovery efforts and shorten recovery cycles due to slowed receivables recovery impacted by local government debt in China[21]. - The Group maintained a healthy liquidity position throughout 2023, with ongoing credit assessments to reduce exposure to credit risk[67]. - The Group's cash and cash equivalents amounted to approximately RMB 2,885.8 million as of December 31, 2023, compared to RMB 2,512.6 million in the previous year[66]. Corporate Governance - The new management team has been introduced to enhance corporate governance and improve management systems[17]. - The Group is committed to integrating ESG principles into its operations and enhancing its governance structure to support sustainable development[24]. - The Board consists of eight members, overseeing key operational initiatives and corporate governance practices[92]. - The Group's financial performance is subject to board approval for significant matters such as mergers, acquisitions, and major investments[95]. - The Group aims to enhance long-term shareholder value through effective corporate governance practices[150]. Strategic Initiatives - The company aims to expand its market share and efficiency in water and solid waste treatment, while exploring opportunities in industrial wastewater treatment and renewable energy[8]. - The Group is committed to aligning with China's "dual carbon" policy and has seen increased attention to environmental protection initiatives[16]. - The Group will focus on expanding in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Economic Belt to increase market share[27]. - The Group's strategic positioning allows it to consolidate its leading position in China's environmental market[8]. - The Group is actively pursuing new reclamation programs, such as the Huangqiao Industrial Park WWTP Project, which includes a water reclamation component with a capacity of 3,000 tonnes[71]. Risk Management - The Group established a Risk and Investment Management Committee (RIMC) to oversee the overall risk management framework and ESG matters, reporting directly to the Board[199]. - The internal control system is designed to provide reasonable assurance against material misstatement or loss, focusing on financial, operational, compliance, and information technology risks[199]. - The effectiveness of the Group's risk management and internal control systems is reviewed at least annually[199]. - Management regularly reviews business and operational activities to identify significant risks and appropriate measures to control and mitigate these risks[200]. - The RIMC and Management are responsible for ongoing monitoring of risk management and internal control systems[199]. Leadership and Management Changes - Mr. Zhou Yuding was appointed as the Executive Director and Chairman of the Board on February 23, 2024, responsible for overall corporate strategies and development[98]. - Mr. Zhu Dazhi has been the Chief Executive Officer since September 28, 2023, overseeing the Group's strategy, business operations, and financial matters[101]. - Mr. Jiang Kai was appointed as an Executive Director on October 20, 2023, responsible for financial and financing-related matters[103]. - The management team has over 20 years of experience in their respective fields, enhancing the company's operational capabilities[103][104][105]. - The company is actively expanding its leadership team to strengthen governance and financial management[104][105].

Financial Performance - The net profit attributable to shareholders for the year 2023 was RMB 604 million, a decrease of 22.6% compared to the previous year[6]. - Total revenue for 2023 decreased by 8.8% to RMB 7.5729 billion[6]. - Gross profit increased by 2.7% to RMB 2.7044 billion compared to the previous year[6]. - Revenue for the three months ended December 31, 2023, was RMB 1,223,933 thousand, a decrease of 51.4% compared to RMB 2,516,089 thousand for the same period in 2022[10]. - The company reported a pre-tax profit of RMB 137,641 thousand for the three months ended December 31, 2023, a decrease of 64.3% from RMB 386,017 thousand in the previous year[10]. - The company’s net profit attributable to owners for the three months ended December 31, 2023, was RMB 95,137 thousand, a decrease of 65.8% from RMB 278,007 thousand in the same period last year[10]. - The company’s diluted earnings per share for the year was RMB 0.80, down 90.1% from RMB 8.12 in the previous year[10]. - The group's pre-tax profit for the year ended December 31, 2023, was RMB 1,393,520 thousand, a decrease from RMB 1,485,950 thousand in 2022, representing a decline of about 6.2%[13]. - The after-tax profit for the year ended December 31, 2023, was RMB 1,019,656,000, compared to RMB 1,121,781,000 in 2022, representing a decrease of about 9.1%[45]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 42,607,940 thousand, an increase from RMB 40,545,215 thousand as of December 31, 2022[11]. - The company's total current assets reached RMB 9,270,986 thousand, up from RMB 8,325,150 thousand in 2022[11]. - The group's total current liabilities as of December 31, 2023, amounted to RMB 10,258,345 thousand, up from RMB 7,887,162 thousand in 2022, marking an increase of approximately 30.0%[12]. - The group's non-current liabilities totaled RMB 17,059,139 thousand as of December 31, 2023, down from RMB 17,843,481 thousand in 2022, indicating a decrease of about 4.4%[12]. - The total liabilities for the reportable segments were RMB 27,317,484,000 as of December 31, 2023, compared to RMB 25,730,643,000 in 2022, marking an increase of about 6.2%[47]. Cash Flow - The group's cash generated from operating activities for the year ended December 31, 2023, was RMB 1,901,197 thousand, compared to a cash outflow of RMB 1,394,655 thousand in 2022, indicating a significant turnaround[13]. - The group's cash flow from operating activities before changes in working capital was RMB 2,660,905 thousand for the year ended December 31, 2023, compared to RMB 2,555,296 thousand in 2022, reflecting an increase of about 4.1%[13]. - The group's cash flow from operating activities for the three months ended December 31, 2023, was RMB 392,649 thousand, compared to a cash outflow of RMB 311,684 thousand in the same period last year[14]. - Net cash inflow from operating activities for the 12 months of 2023 was RMB 1.9012 billion, while excluding changes in receivables under service concession arrangements, the net cash inflow was RMB 1.9772 billion[92]. Dividends - The company declared dividends to non-controlling interests amounting to RMB 4,000 thousand during the reporting period[16]. - The company declared dividends to equity shareholders amounting to RMB 69,801 during the period[20]. - The group announced a final cash dividend of RMB 0.006 per share, subject to approval at the upcoming annual general meeting[97]. - Total annual dividends for 2023 amounted to RMB 202,703 thousand, compared to RMB 192,118 thousand in 2022, reflecting an increase[104]. Segment Performance - Revenue from water and sludge treatment segment was RMB 5,030,061,000 in 2023, compared to RMB 4,720,907,000 in 2022, reflecting an increase of about 6.6%[44]. - The revenue from the solid waste power generation segment decreased to RMB 976,180,000 in 2023 from RMB 1,753,946,000 in 2022, a decline of approximately 44.4%[44]. - The operating profit for the reportable segments was RMB 2,102,176,000 for 2023, compared to RMB 2,050,796,000 in 2022, indicating a slight increase of 2.5%[45]. Financial Position - As of December 31, 2023, the group's cash and cash equivalents amounted to RMB 2.89 billion, indicating a healthy financial position[6]. - The group's total equity as of December 31, 2023, was RMB 15,290,456 thousand, an increase from RMB 14,814,572 thousand in 2022, indicating a growth of approximately 3.2%[12]. - The net asset value per share for the group as of December 31, 2023, is RMB 393.35, an increase from RMB 381.09 as of December 31, 2022[61]. - The total equity attributable to the owners of the company for the year ended December 31, 2023, is RMB 20,634,000, compared to RMB 209,184,000 for the year ended December 31, 2022[62]. Risks and Management - The company faces various financial risks, including foreign currency risk, interest rate risk, liquidity risk, and credit risk, which are managed by the board and executed by management[41]. - The business has not been significantly affected by seasonal or cyclical factors during the fiscal period[42]. Accounting Policies - The company has not made any changes to its accounting policies or faced any retrospective adjustments due to the adoption of new standards during the reporting period[39]. - The financial statements are prepared in RMB, as the majority of the company's operations are conducted in China[38]. - The company has assessed goodwill for impairment as of December 31, 2023, and determined that no impairment provision is necessary[40].