Company Overview - SIIC Environment Holdings Ltd. operates approximately 200 water treatment and supply projects, 7 waste incineration projects, and 10 sludge disposal projects across 19 municipalities and provinces in China[6]. - The company was previously known as Asia Water Technology Ltd. before its rebranding in 2012[6]. - SIIC Environment's corporate mission emphasizes its role as a leading investor and operator in the environment industry in China[5]. - The company has a strong track record in mergers and acquisitions, enhancing its capabilities in the environmental sector[5]. - SIIC Environment's headquarters is located in Singapore, with significant operations in Hong Kong[8]. Business Expansion and Strategy - The company aims to expand its business into new markets such as industrial wastewater treatment, seawater desalination, and renewable energy, thereby strengthening its position in China's environmental industry[6]. - SIIC Environment is focused on leveraging its technological excellence to drive growth and operational efficiency[5]. - The company is actively seeking opportunities in pollution control and soil treatment as part of its market expansion strategy[6]. - The company is committed to protecting the planet and conserving natural resources while pursuing growth in the environmental industry[5]. - SIIC Environment has shown significant growth since its restructuring in 2010, increasing its market share in China's water and environmental sector[6]. Wastewater Treatment Projects - The company reported a daily designed capacity of 12,500 tonnes for the Anxi County Longmen Town Wastewater Treatment Plant BOT Project, which is currently in operation[27]. - The Dongguan City Dalang Songshanhu Southern Wastewater Treatment Plant has a daily designed capacity of 100,000 tonnes and is also in operation, with the company's effective interest at 75.5%[27]. - The company has several wastewater treatment projects in Fujian and Guangdong provinces, with a total designed capacity of 60,000 tonnes for the Shijie Shayao Wastewater Treatment Plant Project, which is currently operational[27]. - The company is planning to commence construction on the second stage of the Anxi County Longmen Town Wastewater Treatment Plant BOT Project, which has a designed capacity of 12,500 tonnes[27]. - The company maintains a 100% effective interest in the Anxi County Longmen Town Wastewater Treatment Plant, which is currently operational[27]. - The company is focused on expanding its wastewater treatment capabilities across various provinces, including Fujian and Guangdong[27]. - The company aims to meet Class I Standard B water quality requirements for its wastewater treatment projects[27]. - The company is actively involved in the construction and operation of multiple wastewater treatment facilities, enhancing its market presence[27]. - The company has a strategic focus on increasing its effective interests in ongoing and future wastewater treatment projects[27]. - The company is committed to environmental sustainability through its wastewater treatment initiatives[27]. Financial Performance - The Group's revenue increased from RMB2,850.9 million in 1HFY2018 to RMB2,921.8 million in 1HFY2019, representing a growth of 2.5%[79]. - Gross profit rose from RMB804.3 million in 1HFY2018 to RMB927.4 million in 1HFY2019[79]. - Profit after tax attributable to owners of the Company increased from RMB255.6 million in 1HFY2018 to RMB300.2 million in 1HFY2019, marking a 17.4% increase[79]. - Construction revenue for 1HFY2019 was RMB1,173.8 million, down 16.7% from RMB1,408.5 million in 1HFY2018[81]. - Service income from non-service concession arrangements amounted to RMB90.2 million in 1HFY2019, up from RMB74.2 million in 1HFY2018, reflecting a 21.6% increase[85]. - Operating and maintenance income from service concession arrangements reached RMB1,552.4 million in 1HFY2019, compared to RMB1,260.3 million in 1HFY2018[84]. - Other revenue decreased to RMB105.4 million in 1HFY2019 from RMB107.9 million in 1HFY2018[86]. - The Group's construction activities were lower in 2QFY2019 compared to the same period in the previous year, impacting revenue[81]. - Higher water treatment and supply sales volume contributed significantly to the revenue growth in 1HFY2019[79]. Assets and Liabilities - As of June 30, 2019, current assets amounted to RMB6.0 billion, an increase from RMB5.37 billion as of December 31, 2018, primarily due to net cash inflows during 2QFY2019 and 1HFY2019[105]. - Non-current assets increased to RMB25.67 billion as of June 30, 2019, from RMB24.35 billion as of December 31, 2018, mainly due to investments in wastewater treatment projects during 1HFY2019[105]. - Current liabilities rose to RMB9.05 billion as of June 30, 2019, up from RMB8.01 billion as of December 31, 2018, driven by new borrowings and increased trade payables related to ongoing construction activities[105]. - Non-current liabilities increased to RMB11.47 billion as of June 30, 2019, from RMB10.79 billion as of December 31, 2018, primarily due to new long-term borrowings[105]. - The Group's cash and cash equivalents stood at RMB2,441.5 million as of June 30, 2019, compared to RMB2,133.2 million as of December 31, 2018[106]. - Total borrowings amounted to approximately RMB13.99 billion as of June 30, 2019, up from RMB12.52 billion as of December 31, 2018, with 27.0% being unsecured credit facilities[109]. - Capital commitments reached RMB1.13 billion as of June 30, 2019, an increase from RMB880.4 million as of December 31, 2018[112]. Shareholder Information - Triumph Power Limited is a substantial shareholder with a beneficial interest of 986,929,551 ordinary shares, accounting for 37.86%[126]. - S.I. Infrastructure Holdings Limited has a beneficial interest in 1,152,348,026 ordinary shares, which is 44.21%[126]. - SIHL Holdings has interests in 1,242,465,926 ordinary shares, representing 47.67%[126]. - Value Partners Limited holds a beneficial interest of 280,603,170 ordinary shares, which is 10.76%[126]. - As of June 30, 2019, there were no changes in the interests of directors in the company during the financial period[121]. - The company has complied with the disclosure requirements under the Securities and Futures Ordinance regarding directors' interests[124]. Employee and Corporate Governance - Total employee benefits expenses for the six months ended June 30, 2019, were approximately RMB 287.4 million, an increase from approximately RMB 270.4 million for the same period in 2018[131]. - The group had 6,038 employees as of June 30, 2019, compared to 5,913 employees as of June 30, 2018[131]. - The company confirmed compliance with the Singapore Exchange listing rules, ensuring governance and regulatory adherence[164]. - The Group complied with the Singapore Code of Corporate Governance and the HK CG Code throughout the six months ended June 30, 2019[140]. Financial Risk Management - The Group's financial risk management includes exposure to foreign currency risk, interest rate risk, liquidity risk, and credit risk, with no changes in risk management policies since year-end[192]. - The Group has not entered into any hedging arrangements due to limited transactional foreign currency exposure[136]. - Interest rate risk is managed through a mix of fixed and variable-rate debts, with interest on variable-rate instruments being repriced regularly[115]. Segment Information - The Group is organized into four reportable segments: Construction, Water and Sludge Treatment, Water Supply, and Waste Incineration, none of which met the quantitative thresholds for reportable segments for the six months ended June 30, 2019[198]. - Principal activities in the Water and Sludge Treatment segment include construction, management, and operation of related infrastructure under service concession arrangements[195]. - The Water Supply segment focuses on the construction, management, and operation of water supply-related infrastructure under service concession arrangements[196]. - The Waste Incineration segment involves construction, management, and operation of waste incineration infrastructure under service concession arrangements[197].

Financial Performance - SIIC Environment reported a 14.5% increase in revenue to RMB 5.3 billion for FY2018, driven by newly acquired entities and increased service income[16]. - Gross profit rose by RMB 198.3 million or 14.3% to RMB 1,584.6 million, attributed to higher gross profit margin contributions from operations[16]. - Net profit attributable to shareholders was impacted by listing expenses of RMB 30 million and higher finance expenses of RMB 74.3 million due to new borrowings[16]. - The Group's net profit attributable to shareholders for FY2018 was RMB 540.2 million, with a CAGR of 16.7% since FY2014[24]. - Profit attributable to owners of the Company rose to RMB 540.2 million in FY2018, a slight increase of 0.9% compared to RMB 535.7 million in FY2017[37]. - The Group recorded a gain on disposal of subsidiaries amounting to RMB 91.7 million for FY2018[36]. - Other income increased by 2.1% year-on-year to RMB 269.4 million, mainly due to higher government subsidies received by subsidiaries[35]. - Revenue increased from RMB 4.639 billion in FY2017 to RMB 5.313 billion in FY2018, representing a growth of approximately 14.5%[39]. - Revenue from the water and sludge treatment business line rose from RMB 3.687 billion in 2017 to RMB 4.111 billion in 2018, an increase of about 11.5%[39]. - Revenue from the water supply business line increased from RMB 605.4 million in 2017 to RMB 867.4 million in 2018, reflecting a growth of approximately 43.3%[39]. - Revenue from the waste incineration business line decreased from RMB 146.4 million in 2017 to RMB 108.1 million in 2018, a decline of about 26.1%[39]. Cash Flow and Assets - Cash from operating activities before service concession arrangement projects increased by RMB 1.6 billion to RMB 2.2 billion as of December 31, 2018[17]. - Cash generated from operating activities increased by RMB 1.6 billion to RMB 2.2 billion as of December 31, 2018, reflecting healthy cash flow management[19]. - Cash and cash equivalents reached RMB 2.1 billion as of December 31, 2018, an increase of RMB 731 million from RMB 1.4 billion at the end of 2017[17]. - Total assets and net assets increased significantly to RMB 29.7 billion and RMB 10.9 billion respectively, indicating a strengthening balance sheet[24]. - Total assets as of December 31, 2018, reached RMB 29.72 billion, a 15.9% increase from RMB 25.65 billion in 2017[34]. - The Group's total equity increased to RMB 10.91 billion in FY2018 from RMB 10.24 billion in FY2017, reflecting significant growth[38]. Market Expansion and Strategic Focus - Future market expansion will focus on industrial wastewater treatment, seawater desalination, sludge treatment, soil treatment, renewable energy, and pollution control[6]. - The company aims to strengthen its position in China's water and environmental industry through strategic project selection and market entry[15]. - The Group is strategically positioned in first- and second-tier cities, which are conducive to infrastructure development for environmental projects[21]. - New environmental initiatives announced by the State Council of China are expected to create revenue opportunities in sludge treatment and waste-to-energy sectors[21]. - The Group's focus on upgrading existing wastewater treatment projects aligns with the government's agenda for higher discharge standards[21]. Corporate Governance and Management - The company’s board consists of eight members, overseeing key operational initiatives and financial performance reviews[83]. - The company has a strong focus on independent advice and management operations through its independent non-executive directors[86]. - The board of directors includes a diverse range of professionals with expertise in finance and corporate management[86]. - The company is committed to maintaining strong relationships with government authorities and stakeholders[86]. - The leadership team has a strong academic background, with Mr. Xu holding a master's degree in business administration and Mr. Feng a master's degree in economics[88]. - The company aims to leverage its management expertise to drive growth and innovation in the environmental sector[88]. - The strategic direction includes potential market expansions and new product developments to enhance competitive advantage[88]. - The company is committed to maintaining high standards of governance and operational excellence under its experienced management team[88]. Projects and Operations - The company operates approximately 200 water treatment and supply projects, 7 waste incineration projects, and 10 sludge disposal projects across 19 municipalities and provinces in China[6]. - The Group's total design capacity for wastewater treatment reached 11.7 million tons/day, following the addition of 1.04 million tons/day from 24 new projects across various provinces[21]. - The company is expanding its wastewater treatment capacity with ongoing and future projects in various provinces, indicating a strategic focus on market expansion[44]. - The company is focusing on expanding its wastewater treatment capacity across various provinces to meet increasing demand[66]. - The projects adhere to Class I Standard A and B water quality requirements, ensuring compliance with environmental regulations[65][66]. Financial Governance and Compliance - The Group is committed to corporate governance practices in line with the 2012 Code and the HK CG Code to protect shareholders' interests and enhance long-term shareholder value[109]. - The Group complied with the Code and the HK CG Code throughout the financial year ended December 31, 2018, with appropriate justifications for any deviations[110]. - The Board is collectively responsible for the long-term success of the company and works with Management to achieve corporate objectives[111]. - The Board's principal duties include protecting and enhancing long-term value and return to shareholders, providing leadership on corporate strategy, and establishing a framework for effective risk management[111]. - The Group's compliance with relevant laws and regulations is a key responsibility of the Board[114].