東江環保股份有限公司 （於中華人民共和國註冊成立之股份有限公司） 股份代號 環境、社會及管治報告 2023 東江環保股份有限公司 Contents 目錄 | 1 | ABOUT THE REPORT | 3 | | --- | --- | --- | | | 關於本報告 | | | 2 | MESSAGE FROM THE CHAIRMAN | 7 | | | 董事長致辭 | | | 3 | ABOUT OUR GROUP | 10 | | | 關於本集團 | | | | 3.1 Business of the Group | 11 | | | 集團業務簡介 | | | | 3.2 Achievements and Honors | 12 | | | 成就與榮譽 | | | | 3.3 Promoting Technological Innovation | 15 | | | 推動技術創新 | | | 4 | ADHERING TO THE GUIDANCE OF PARTY BUILDING | 18 | | | 堅持黨建引領 | | | 5 | GREEN AND SUSTAINABLE DEVELOPM ...

Financial Reporting and Compliance - The company will adopt Chinese Accounting Standards for financial reporting starting from the fiscal year ending December 31, 2023, to enhance audit efficiency [18]. - The company has engaged its auditor to report on related party transactions for the fiscal year ending December 31, 2023, confirming no issues that would affect the transactions [6]. - The audit report confirms that the financial statements fairly present the company's financial position as of December 31, 2023, in all material respects [174]. - The company is committed to transparency and compliance with the regulations set forth by the China Securities Regulatory Commission [194]. - The company is required to assess goodwill impairment based on management's estimates and assumptions, particularly regarding future cash flows and discount rates, which are subject to significant uncertainty [162]. - The external auditor evaluated the competence and objectivity of the valuation experts hired by management for goodwill impairment testing [163]. - The company must ensure that all information related to goodwill impairment is appropriately reported and disclosed in the financial statements [163]. - The audit report highlighted key audit matters that were deemed most important for the financial statements [180]. - The board of directors is responsible for overseeing the financial reporting process and ensuring accuracy [185]. Corporate Governance - The company has established a board of directors responsible for formulating development policies and strategies, as well as overseeing their implementation [27]. - The board consists of nine directors, with one-third being independent non-executive directors, including two female directors [97]. - The board has reviewed its diversity strategy and considers its current structure and composition to be appropriate [97]. - The board is responsible for ensuring good corporate governance practices and compliance with relevant regulations [52]. - The company has appointed new executive directors, including Huang Honggang on December 5, 2023, and Liu Xiaoxuan on February 21, 2024 [28]. - The board of directors has a diversity policy in place, focusing on various aspects including gender, age, and professional qualifications [74]. - The company is considering setting measurable targets for its board diversity policy to ensure its appropriateness and track progress [97]. - The company emphasizes the importance of diversity in its recruitment strategy, considering factors such as gender, age, and professional experience [101]. - The company has implemented a whistleblowing policy and system, allowing employees and third parties to report suspected misconduct confidentially [167]. - The board and the audit and risk management committee will review the whistleblowing policy annually to enhance its effectiveness [168]. - The company has established anti-corruption policies to ensure integrity among management and employees, prohibiting the misuse of power for personal gain [169]. - During the reporting period, the company's directors and employees received anti-corruption training to raise awareness of ethical conduct [170]. Business Strategy and Development - The company has committed to continuous review and adjustment of its business strategies to respond to market changes and ensure sustainable development [26]. - The company has implemented a budget management system, requiring subsidiaries to prepare annual business plans for approval [57]. - The strategic development committee is responsible for proposing suggestions based on development strategy planning, major investment financing plans, and significant capital operations [135]. - The company is focused on environmental, social, and governance (ESG) initiatives as part of its strategic direction [194]. Financial Performance - The company's revenue for the fiscal year 2023 was approximately RMB 4,022,468,104.97, with industrial waste resource sales, precious metal recovery income, and waste treatment income totaling RMB 3,544,239,811.21 [77]. - The company reported a significant increase in revenue, achieving a total of 1,000,000 HKD for the fiscal year ending December 31, 2023 [186]. - As of December 31, 2023, the company's accounts receivable balance was RMB 1,100,918,082.79, with an allowance for bad debts of RMB 78,969,675.63 [144]. Shareholder Engagement - The company held a total of 4 shareholder meetings during the reporting period, reflecting active engagement with shareholders [78]. - The company is committed to maintaining multiple communication channels with shareholders, including announcements on its website and regular reports [82]. - The company has reviewed the effectiveness of its investor relations policy during the reporting period, confirming its proper execution [82]. - The company has implemented proactive investor relations policies to ensure timely communication with shareholders and potential investors [82]. - The company's non-executive directors are required to attend shareholder meetings to understand shareholders' opinions fairly [5]. Risk Management - The company has established a comprehensive internal management system and approval processes to enhance risk management and internal controls [57]. - The internal audit function has been established to ensure the effectiveness of internal control systems and risk identification [58]. - The board has reviewed and confirmed the effectiveness of the risk management and internal control systems for the fiscal year 2023 [58]. - The company has not identified any significant issues in its risk management and internal control systems during the annual review [58]. - The company recognizes the inherent risks in revenue recognition and has established internal controls to mitigate these risks [77]. - The audit and risk management committee held 5 meetings during the reporting period to discuss the group's quarterly, semi-annual, and annual financial statements [128].

Revenue and Profitability - Revenue for Q1 2024 was CNY 828,715,785.69, a decrease of 4.66% compared to the same period last year[6]. - Net loss attributable to shareholders was CNY -117,659,832.94, representing a decline of 32.47% year-over-year[6]. - Basic and diluted earnings per share were both CNY -0.13, down 7.69% from the previous year[6]. - Total operating revenue for the current period was RMB 790,088,128.25, a decrease of 4.1% from RMB 828,715,785.69 in the previous period[30]. - Net profit for the current period was a loss of RMB 192,943,495.82, worsening from a loss of RMB 147,624,923.01 in the previous period[31]. - Total comprehensive income for the current period was a loss of RMB 192,944,277.07, compared to a loss of RMB 147,600,820.43 in the previous period[33]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 12,161,497,644.55, a decrease of 2.77% from the end of the previous year[6]. - The total assets decreased from RMB 12,161,497,644.55 to RMB 11,824,979,499.89, reflecting a decline of approximately 2.77%[23][24]. - The company's total liabilities increased from RMB 3,000,000,000 to RMB 3,200,000,000, indicating a rise of approximately 6.67%[24]. - The company reported a total liability of RMB 6,974,394,942.17, down from RMB 7,119,601,250.60 in the previous period[30]. - Total equity attributable to shareholders decreased to RMB 4,341,185,726.04 from RMB 4,496,423,310.37[30]. Cash Flow - Cash flow from operating activities was CNY -122,860,700.59, an increase of 2.34% compared to the same period last year[6]. - Operating cash inflow for the current period was $890,338,966.11, down 27% from $1,220,968,323.22 in the previous period[36]. - Cash outflow from operating activities totaled $1,010,326,259.14, a decrease of 25% compared to $1,343,829,023.81 in the prior period[36]. - Net cash flow from operating activities was -$119,987,293.03, slightly improved from -$122,860,700.59 in the previous period[36]. - Cash inflow from investment activities was $240,974,203.29, significantly higher than $270,558.91 in the previous period[37]. - Cash outflow from investment activities reached $849,411,176.83, an increase from $135,236,822.68 in the prior period[37]. - Net cash flow from investment activities was -$608,436,973.54, worsening from -$134,966,263.77 in the previous period[37]. - Cash inflow from financing activities was $605,790,064.34, down 48% from $1,167,224,353.10 in the previous period[37]. - Cash outflow from financing activities totaled $527,514,079.58, a decrease from $751,211,238.21 in the prior period[37]. - Net cash flow from financing activities was $78,275,984.76, a significant decline from $416,013,114.89 in the previous period[37]. - The ending cash and cash equivalents balance was $587,661,723.66, down from $775,868,062.27 in the previous period[37]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 36,065[16]. - The largest shareholder, Guangdong Guangsheng Holdings Group Co., Ltd., held 24.09% of the shares[16]. - The proportion of major shareholders participating in the securities lending business was noted, with Jiangsu Huihong Venture Capital Co., Ltd. lending 696,800 shares, representing 0.06% of the total share capital[19]. Operational Metrics - The company reported a decrease in gross profit margin due to increased competition and lower disposal prices in its harmless treatment business[16]. - Research and development expenses increased to RMB 32,078,112.65 from RMB 29,489,532.62, reflecting a focus on innovation[30]. - The company experienced a net investment loss of RMB 6,767,501.77, compared to a loss of RMB 4,369,664.88 in the previous period[31]. - Other comprehensive income after tax was a loss of RMB 781.25, contrasting with a gain of RMB 24,102.58 in the previous period[32].

截 至2023年12月31日止年度業績公佈 全年業績 終止確認收益 – – B_table indent_4.5 mm N_table indent_4 mm 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 就 因 本 公 告 全 部 或 部 份 內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 DONGJIANG ENVIRONMENTAL COMPANY LIMITED* 東江環保股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：00895） 東 江 環 保 股 份 有 限 公 司（「本公司」或「公 司」）董 事（「董 事」）會（「董事會」）宣 佈 本 公 司 及 其 附 屬 公 司（合 稱「本集團」）於 截 至2023年12月31日 止 年 度（「報告期內」）經 審 核 綜 合業績連同截至2022年12月31日止年度之比較數字如下： （除 特 別 註 明 外，於 本 公 告 中，本 集 團 的 財 務 資 料 均 以 人 民 幣（「人民幣」）元 列 示。） ...

Revenue and Profitability - Revenue for Q3 2023 reached RMB 980,225,664.55, representing a 20.29% increase year-over-year[7] - Net profit attributable to shareholders was RMB -158,002,912.38, a decrease of 42.79% compared to the same period last year[7] - The company reported a basic earnings per share of RMB -0.14, down 7.69% year-over-year[7] - The company's net profit attributable to shareholders was -356,923,762.11, a decrease of 295.50% compared to the previous period[16] - The company's net profit for the current period was impacted by an investment loss of RMB 2,528,450.48, compared to a gain of RMB 6,434,489.30 in the previous period[34] - The basic earnings per share were reported at -0.32, compared to -0.10 in the previous period[48] Cash Flow and Liquidity - The net cash flow from operating activities was RMB -173,554,471.18, reflecting a decline of 194.21% year-over-year[7] - Operating cash flow net amount was -173,554,471.18, a decline of 194.21% due to decreased operating performance[16] - The net cash flow from investing activities was -675,154,048.93 RMB, compared to -468,868,199.38 RMB in the prior period[40] - The net cash flow from financing activities was 930,963,319.13 RMB, an increase from 780,870,418.60 RMB year-over-year[46] - The company reported a decrease in cash and cash equivalents, ending the period with 700,135,214.52 RMB, down from 1,017,639,452.50 RMB[46] - Cash inflow from operating activities totaled approximately $3.53 billion, an increase from $3.32 billion in the previous period, representing a growth of about 6.4%[49] Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 12,231,906,264.73, an increase of 4.20% from the previous year[7] - Total liabilities increased by 39.31% to 241,014,705.81, mainly due to the transfer of landfill sites to fixed assets[16] - The total liabilities decreased to RMB 6,708,104,028.93 from RMB 6,958,950,980.42, showing a reduction of approximately 3.6%[30] - The company's equity attributable to shareholders increased to RMB 4,896,749,516.50 from RMB 4,058,594,516.26, reflecting a growth of around 20.6%[30] - The company's total liabilities increased, with a notable rise in deferred tax liabilities from 33,091,079.87 RMB to 62,553,946.55 RMB[46] Operational Performance - Total operating revenue for the current period reached RMB 2,986,709,917.86, an increase from RMB 2,848,333,653.36 in the previous period, reflecting a growth of approximately 4.9%[34] - Total operating costs increased to RMB 3,459,393,042.81 from RMB 3,017,023,540.43, representing a rise of about 14.7%[34] - The company experienced a 202.97% increase in receivables financing, totaling RMB 73,986,189.87, due to increased bank acceptance bills received[14] - Research and development expenses increased by 67.77% to RMB 4,421,544.07, reflecting new investments in R&D[14] - Research and development expenses for the current period were RMB 115,231,171.72, slightly up from RMB 114,638,442.49 in the previous period[34] Future Outlook - The company plans to continue focusing on market expansion and new product development to improve future performance[16] - The company plans to focus on market expansion and new product development in the upcoming quarters to drive future growth[34]

中 期 業 績（未 經 審 核） 香 港H股股份過戶 卓佳登捷時有限公司 香 港 夏慤道16號 遠東金融中心17樓 註冊辦事處 中華人民共和國深圳市南山區 高新區北區朗山路9號 東江環保大樓 1樓，3樓，8樓北面，9-12樓 | --- | --- | --- | --- | |--------------------------|-------|-------------------------------------------------------------|-----------------------------------------------------------| | | 附 註 | 截 至 2023 年 6 月 30 日 止六個月 （未經審核） 人民幣千元 | 截 至 2022 年 6 月 30 日 止六個月 （未經審核） 人民幣千元 | | | | | | | 收 益 | 4 | 2,006,484 | 2,033,460 | | 銷售及服務成本 | | (1,890,819) | (1,622,030) | | | | | | | 毛 利 | | 115,665 | 411,43 ...

Financial Performance - The company reported a net loss of approximately RMB 254.125 million for the six months ended June 30, 2023[12]. - The basic and diluted loss per share for the period was RMB 20.05[1]. - The company reported a net loss of 254,086 thousand RMB for the first half of 2023, compared to a net loss of 347,041 thousand RMB in the previous year, indicating an improvement in financial performance[14]. - The company’s total comprehensive loss attributable to equity holders was RMB 198.960 million for the period[1]. - The company incurred a loss attributable to equity holders of approximately RMB 199 million, compared to a profit of RMB 20.41 million in the same period last year[87]. - The net loss for the period was RMB 254,086 thousand, compared to a profit of RMB 6,715 thousand in the prior year, reflecting a substantial shift in performance[40]. Assets and Liabilities - As of June 30, 2023, the company's current assets exceeded current liabilities by approximately RMB 918.154 million[12]. - The total liabilities as of June 30, 2023, were RMB 3,128.308 million, compared to RMB 3,458.429 million as of December 31, 2022, indicating a decrease of approximately 9.5%[3]. - The company's total assets minus current liabilities amounted to RMB 9,574.782 million as of June 30, 2023, compared to RMB 8,279.948 million as of December 31, 2022, reflecting an increase of approximately 15.6%[3]. - The company's equity attributable to shareholders was RMB 5,055.163 million as of June 30, 2023, up from RMB 4,058.595 million as of December 31, 2022, representing an increase of approximately 24.6%[4]. - The company reported trade payables of RMB 537.238 million as of June 30, 2023, down from RMB 686.424 million as of December 31, 2022, a decrease of approximately 21.7%[3]. - The company’s non-current liabilities, including interest-bearing borrowings, totaled RMB 2,928.689 million as of June 30, 2023, compared to RMB 2,577.062 million as of December 31, 2022, an increase of approximately 13.6%[4]. - The total liabilities of the group amounted to approximately RMB 6,983,441,000, with a debt-to-asset ratio of 54.97%, down from 59.28% as of December 31, 2022[81]. - The group's current liabilities were approximately RMB 3,128,308,000, a decrease from approximately RMB 3,458,429,000 as of December 31, 2022[81]. Revenue and Profitability - Total revenue for the first half of 2023 reached 2,006,434 thousand RMB, an increase from 1,913,620 thousand RMB in the same period last year, representing a growth of approximately 4.9%[14]. - Revenue for the six months ended June 30, 2023, was RMB 2,006,484 thousand, a decrease of 1.3% compared to RMB 2,033,460 thousand for the same period in 2022[40]. - Gross profit for the same period was RMB 115,665 thousand, significantly down from RMB 411,430 thousand, indicating a decline of approximately 71.9%[40]. - Revenue from industrial waste resource recovery and disposal businesses decreased by approximately 31.65% and 34.84%, respectively, with revenues of about RMB 516 million and RMB 436 million[93]. - Revenue from precious metal recovery increased by approximately 124.80% to about RMB 844 million, driven by market expansion and rising precious metal prices[93]. - The overall gross margin for the group was 5.76%, a decline of approximately 14.47 percentage points compared to 20.23% in the same period last year[95]. Cash Flow and Financing - The company had cash and time deposits of approximately RMB 1,557.276 million in banks and other financial institutions, excluding restricted and pledged deposits[12]. - Cash and cash equivalents at the end of the reporting period increased to RMB 1,557,276 thousand from RMB 650,038 thousand, marking a rise of 139.5%[51]. - The company’s financing activities generated a net cash inflow of RMB 1,317,669 thousand, compared to RMB 271,739 thousand in the previous period, indicating a strong improvement in financing[51]. - The company received RMB 7,500 thousand in dividends from joint ventures during the reporting period, compared to no dividends received in the prior year[51]. - The company’s bank loans as of June 30, 2023, amounted to RMB 4,636.29 million, an increase from RMB 3,865.32 million at the end of 2022[184]. - The company issued short-term financing bonds totaling RMB 500 million at an interest rate of 3.29% on January 19, 2023[139]. Operational Strategy and Future Outlook - The company is focusing on expanding its market presence in environmental engineering and services, which are critical for future growth[24]. - The report highlights ongoing efforts in the recovery of precious metals and municipal waste treatment, which are essential components of the company’s operational strategy[24]. - The company aims to enhance its operational efficiency and reduce losses through strategic initiatives and cost management measures[24]. - The company plans to continue focusing on market expansion and new technology development to improve future performance[44]. - The company is actively promoting technological innovation, including the development of high-value copper products and the application of new treatment technologies for hazardous waste[92]. - The company is focusing on market expansion through a differentiated strategy, enhancing service quality, and providing customized value-added services to improve customer retention[89]. Administrative and Other Expenses - The company’s administrative expenses were RMB 190,971 thousand, slightly up from RMB 189,960 thousand in the same period last year[40]. - Financial costs for the six months ended June 30, 2023, were approximately RMB 87.95 million, representing 4.38% of total revenue, an increase from 4.14% in the previous year[187]. - The company reported a decrease in short-term employee benefits to RMB 1,952,000 for the six months ended June 30, 2023, compared to RMB 2,315,000 for the same period in 2022, a decline of 15.7%[103]. Investments and Capital Commitments - The company has capital commitments of approximately RMB 276.31 million as of June 30, 2023, related to ongoing projects[163]. - The company invested approximately RMB 1.14 million in its associate, Guangye New Energy, which is currently in the construction phase for a municipal sludge treatment project[161]. - The company’s associate, Guangye Biotechnology, was established in January 2023, with an investment of approximately RMB 1.4 million, focusing on kitchen waste management services[188]. - The company has made commitments for large contracts amounting to RMB 207,445,000 as of June 30, 2023, compared to RMB 237,014,000 as of December 31, 2022[193]. - The company has commitments for long-term asset acquisitions totaling RMB 43,660,000 as of June 30, 2023, an increase from RMB 37,717,000 as of December 31, 2022[193]. Compliance and Regulatory Matters - The company has not adopted any new or revised international financial reporting standards that would significantly impact its performance or financial position[72]. - The company continues to operate under the going concern basis for preparing its interim financial information[65]. - The group recognized a provision for potential losses from legal disputes amounting to RMB 915,000 as of June 30, 2023, unchanged from December 31, 2022[124].

Financial Performance - Net profit attributable to shareholders decreased by 2,345.86% from CNY 5,238,970.33 to CNY -117,659,832.94, impacted by a decline in collection volume and increased market competition [11]. - Total operating revenue decreased to RMB 828.72 million from RMB 963.64 million, a decline of approximately 13.95% [19]. - Net profit showed a significant loss of RMB 147.62 million compared to a profit of RMB 2.55 million in the previous period, indicating a substantial decline [20]. - Investment income decreased by 292.01% from CNY 2,275,740.06 to CNY -4,369,664.88, mainly due to a decline in net profits from joint ventures [11]. - The comprehensive income attributable to the parent company was CNY -147,600,820.43, compared to CNY -2,546,506.51 in the previous period [21]. - Basic and diluted earnings per share were both CNY -0.13, a drop of 1,400.00% from the previous year [27]. Cash Flow - Cash flow from operating activities showed a net outflow of CNY -122,860,700.59, a 954.29% decrease compared to CNY -11,653,444.20, reflecting a decline in operational performance [11]. - The net cash flow from operating activities was CNY -122,860,700.59, a significant decrease of 954.29% compared to the previous year [27]. - The cash inflow from operating activities totaled CNY 1,220,968,323.22, an increase from CNY 1,053,352,260.70 in the previous period [22]. - The net cash flow from investing activities was CNY -134,966,263.77, compared to CNY -202,164,995.48 in the previous year [23]. - The net cash flow from financing activities was CNY 416,013,114.89, an increase from CNY 318,038,173.31 in the previous year [23]. Assets and Liabilities - Total current assets increased from CNY 3,026,923,271.51 to CNY 3,307,674,195.63, indicating a growth in liquidity [16]. - Total non-current assets decreased from CNY 4,306,341,813.80 to CNY 4,202,065,657.11, primarily due to depreciation [16]. - Total assets rose to RMB 11.96 billion from RMB 11.71 billion, an increase of approximately 2.1% [18]. - Total liabilities increased to RMB 7.33 billion from RMB 6.93 billion, reflecting a rise of about 5.8% [18]. - The equity attributable to shareholders decreased to RMB 3.94 billion from RMB 4.06 billion, a decline of about 2.8% [18]. Receivables and Payables - Accounts receivable decreased by 79.20% from CNY 16,541,947.42 to CNY 3,439,906.89 due to the maturity of endorsed and discounted notes [5]. - Financing receivables increased by 202.47% from CNY 24,420,525.44 to CNY 73,863,643.39, primarily due to an increase in foreign exchange bills [5]. - Prepayments rose by 87.58% from CNY 149,703,661.79 to CNY 280,818,779.61, attributed to increased advance payments for raw materials [5]. - Contract liabilities increased by 92.22% from CNY 142,285,139.51 to CNY 273,495,985.77, mainly due to advance sales payments received [5]. - The company reported a significant increase in contract liabilities to RMB 273.50 million from RMB 142.29 million, a rise of approximately 92.3% [18]. Governance and Structure - The company has a total of three executive directors and three independent non-executive directors as part of its governance structure [39]. - The board of directors guarantees the authenticity, accuracy, and completeness of the quarterly report, assuming legal responsibility for any misstatements [40]. - The first quarter report has not been audited, indicating a preliminary financial status [38]. - The report does not indicate any significant changes in shareholder structure or major new strategies during the reporting period [41]. - The company has not disclosed any new product developments or technological advancements in the current report [41]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 36,853, with the largest shareholder, Guangdong Guangsheng Holding Group Co., Ltd., holding 22.86% of shares (200,968,294 shares) [29]. - HKSCC Nominees Limited holds 22.76% of shares (200,096,887 shares), making it the second-largest shareholder [29]. - Jiangsu Huihong International Group Co., Ltd. and Jiangsu Huihong Venture Capital Co., Ltd. hold 5.70% (50,087,669 shares) and 2.96% (25,995,038 shares) respectively [29]. Other Financial Metrics - Research and development expenses decreased to RMB 29.49 million from RMB 41.90 million, a reduction of approximately 29.6% [20]. - Long-term borrowings increased to RMB 3.08 billion from RMB 2.58 billion, representing a growth of about 19.5% [18]. - The company's cash and cash equivalents were not explicitly detailed but are critical for assessing liquidity in future operations [18].

Financial Performance - Total revenue for 2022 was RMB 3,878.47 million, a decrease of 3.41% compared to RMB 4,015.23 million in 2021[8]. - Gross profit for 2022 was RMB 610.38 million, with a gross margin of 15.74%, down from 27.48% in 2021, representing a decline of 11.85 percentage points[8][17]. - The company recorded a net loss attributable to equity holders of RMB 501.79 million for 2022, compared to a profit of RMB 160.75 million in 2021[8][17]. - The revenue from industrial waste resource recovery and treatment was approximately RMB 1.308 billion and RMB 1.217 billion, down 16.41% and 28.92% year-on-year, respectively[17]. - The group's consolidated gross profit margin for the year ended December 31, 2022, was 15.74%, a decrease of approximately 11.74 percentage points compared to 27.48% in 2021, primarily due to increased industry competition and rising costs in resource recovery operations[21]. - The net loss attributable to equity holders of the parent company for the year ended December 31, 2022, was approximately RMB 501.79 million, compared to a profit of RMB 160.75 million in 2021, largely due to a decrease in business from major customers and a decline in overall market waste volume[22]. - The financial cost for the year was approximately RMB 176.74 million, accounting for 4.56% of total revenue, an increase from 3.36% in 2021, primarily due to an increase in interest-bearing debt[45]. - The income tax expense for the year was approximately RMB 28.42 million, a decrease from RMB 35.67 million in 2021, mainly due to a decline in pre-tax profit[23]. - Administrative expenses for the year were approximately RMB 439,603,000, accounting for 11.33% of total revenue, up from 10.15% in 2021[71]. - The company recorded a loss for the year ended December 31, 2022, and the board does not recommend paying any final dividend for the year[123]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 11,705.96 million, while total liabilities were RMB 6,929.49 million[8]. - As of December 31, 2022, the total liabilities of the group were approximately RMB 6,929,486,000, an increase from RMB 6,365,415,000 in 2021, resulting in a debt-to-asset ratio of 59.2% compared to 53.88% in 2021[47]. - The group had current liabilities of approximately RMB 3,458,429,000 as of December 31, 2022, down from RMB 3,805,521,000 in 2021[47]. - As of December 31, 2022, the company's current liabilities exceeded current assets by approximately RMB 431,506,000[167]. - The company had available unused bank financing of approximately RMB 6,465,844,000 as of December 31, 2022[169]. Market and Operational Strategy - The company plans to focus on market expansion and key project development in 2023 to enhance operational performance[14]. - The company aims to enhance its core competitiveness in hazardous waste management and expand its market share through flexible pricing strategies[18]. - The overall hazardous waste market environment remains challenging, with significant reductions in hazardous waste output from customers and excess disposal capacity in some regions[39]. - The company aims to enhance market share and capacity utilization by focusing on hazardous waste management and expanding into high-difficulty waste segments[55]. - The company plans to accelerate the issuance of non-public A-shares to raise sufficient funds for development and expedite key project construction[55]. - The company is focusing on core hazardous waste operations and implementing a diversified market strategy to address intense competition[65]. - The company aims to focus on "dual carbon" growth points while solidifying its core business, anticipating a recovery in industrial production and an increase in hazardous waste volume in 2023[81]. - The company will implement "three precision management" strategies to maintain its leading position in a highly competitive market and improve operational performance[81]. - The environmental protection industry has seen increased competition due to significant capacity expansion and low processing prices, impacting the company's revenue and profit[84]. - The company will focus on internal management reforms and digital transformation to enhance efficiency and product value, thereby expanding its industry influence[84]. Research and Development - The company added 121 new patents in 2022, bringing the total to 602, with one technology recognized as internationally leading[10]. - R&D investment for the year was approximately RMB 169 million, remaining stable compared to the previous year[68]. Financial Management and Policies - The company has recognized credit impairment losses and asset impairment losses, which significantly impacted annual profits[34]. - The company has assessed its assets for impairment, ensuring that any asset's carrying amount is reduced to its recoverable amount if necessary[130]. - The company has not made any adjustments or changes to its profit distribution policy during the reporting period, which stipulates a cumulative cash distribution of no less than 30% of the average distributable profit over the last three years[99]. - The company has cumulatively distributed profits in cash from 2020 to 2022, meeting the requirement of distributing no less than 20% of the distributable profits for the year[121]. - The company confirmed that financial assets are initially recognized at fair value plus transaction costs, with trade receivables measured at their transaction price[184]. - The company applies a simplified approach to calculate expected credit losses for trade receivables and contract assets, establishing a provision matrix based on historical credit loss experience[195]. - The company recognizes any gains or losses from the termination of assets based on the difference between the net proceeds from the sale and the carrying amount of the asset[154]. Joint Ventures and Investments - The group established a joint venture, Jiyang City Guangye Energy Environmental Protection Co., Ltd., in November 2022, holding a 13% stake with an investment of approximately RMB 12,884,000[48]. - The company completed the sale of its 31% stake in Jiangsu Suquan Solid Waste Disposal Co., Ltd. for approximately RMB 40,600,000 in October 2022[75]. - The company entered into a framework agreement with Guangdong Anjiatai Environmental Technology Co., Ltd. on April 7, 2022, for hazardous waste disposal services[127]. Compliance and Risk Management - The company continues to strengthen pollution control facility management and enhance employee compliance awareness to minimize safety and environmental production risks[106]. - The company is closely monitoring interest rate risks and will consider a suitable mix of fixed and floating rate debt to manage these risks[50].

Financial Performance - For the year ended December 31, 2022, the total revenue was RMB 3,878,474 thousand, a decrease from RMB 4,015,230 thousand in 2021, representing a decline of approximately 3.4%[12] - The gross profit for 2022 was RMB 610,382 thousand, down from RMB 1,103,577 thousand in 2021, indicating a significant decrease of about 44.7%[12] - The net loss for the year was RMB 568,694 thousand, compared to a profit of RMB 155,842 thousand in 2021, marking a turnaround of approximately 463.5%[12] - The company reported a basic and diluted loss per share of RMB (57) for 2022, compared to earnings of RMB 18 per share in 2021[12] - The total equity attributable to the owners of the company decreased to RMB 4,055,874 thousand in 2022 from RMB 4,604,919 thousand in 2021, a decline of approximately 11.9%[7] - The company reported a net loss of RMB 501,792,000 for the year, compared to a profit of RMB 160,745,000 in 2021, reflecting a significant downturn[155] - The company’s comprehensive gross margin for the year ended December 31, 2022, was 15.74%, a decrease of approximately 11.74 percentage points compared to 27.48% in 2021, primarily due to increased industry competition and rising costs in resource-based operations[196] Assets and Liabilities - The company's total assets as of December 31, 2022, were RMB 8,679,039 thousand, slightly down from RMB 8,835,880 thousand in 2021, a decrease of about 1.8%[13] - Non-current liabilities increased to RMB 3,471,057 thousand in 2022 from RMB 2,559,894 thousand in 2021, reflecting an increase of approximately 35.6%[7] - As of December 31, 2022, the group's current liabilities exceeded current assets by approximately RMB 431,506,000[33] - The company's total liabilities increased to approximately RMB 6,929.49 million in 2022, up from RMB 6,365.42 million in 2021, resulting in a debt-to-asset ratio of 59.2%[86] - The financial position remains stable, with net current liabilities of approximately RMB 431.5 million as of December 31, 2022[185] Cash Flow and Financing - The company’s cash and cash equivalents at the end of 2022 were RMB 622,716 thousand, up from RMB 550,421 thousand in 2021, representing an increase of about 13.1%[13] - The group had cash and fixed deposits of approximately RMB 617,856,000, excluding restricted funds and pledged deposits, as of December 31, 2022[33] - The group has unutilized bank financing of approximately RMB 6,465,844,000 available as of December 31, 2022[33] - The company plans to raise up to RMB 1,200,000,000 through a non-public issuance of up to 263,780,130 new A-shares, pending approval from the China Securities Regulatory Commission[42] - The company has received approval from the China Securities Regulatory Commission for the proposed private placement of A-shares[129] - The company has a credit agreement with Guangsheng Finance, providing a credit limit of up to RMB 200 million for one year[138] Revenue Segments - The industrial waste treatment segment generated revenue of 1,388,261 million, up from 1,125,211 million, indicating a growth of about 23.4%[45] - The segment for municipal waste treatment reported a revenue of 158,447 million, a decrease from 166,917 million, reflecting a decline of approximately 5.5%[45] - Revenue from industrial waste resource recovery decreased to RMB 1,308.26 million in 2022, down 16.4% from RMB 1,565.16 million in 2021[1] - Precious metal recovery revenue surged to RMB 879.01 million in 2022, a significant increase of 341.5% from RMB 198.63 million in 2021[1] - The revenue from external customers in the recycling segment was 1,565,155 million, an increase from 1,246,900 million, representing a growth of about 25.5%[45] Operational Strategies and Future Outlook - The company plans to continue expanding its waste treatment services and invest in new technologies to enhance operational efficiency in the upcoming year[17] - The company plans to expand its market presence through new product development and strategic partnerships, focusing on industrial waste recycling and renewable energy utilization[45] - The company plans to focus on core hazardous waste operations and implement diversified market strategies to address intense competition[178] - The company is committed to enhancing its hazardous waste disposal capabilities and ensuring revenue and profit breakthroughs through technological upgrades[96] - The company anticipates that its production and operational performance in 2023 will not be adversely affected by significant changes in objective factors such as transportation and raw material costs[119] Cost Management - Total employee costs increased to RMB 761,078,000 in 2022 from RMB 682,233,000 in 2021, representing an increase of approximately 11.5%[153] - Sales costs rose significantly to RMB 2,099,263,000 in 2022, up from RMB 1,633,000,000 in 2021, marking an increase of about 28.5%[153] - The company is actively reducing costs through measures such as optimizing processes and energy consumption[179] - The financing cost rate for the year was 3.68%, a decrease of 22 basis points compared to the previous year[82] Research and Development - The company’s annual R&D investment, including increased development costs for intangible assets, was approximately RMB 169 million, remaining stable compared to the previous year[195] - Research and development expenses remained stable at RMB 162,828,000 in 2022 compared to RMB 163,283,000 in 2021, indicating a slight decrease of 0.3%[153] - The company has successfully launched its alkali carbonate copper industrialization project and added new high-end resource-based copper salt products, with a total of 602 authorized patents, including 121 new patents granted during the reporting period[195] Market Conditions and Competition - The total operating revenue for the year was approximately RMB 3.88 billion, a decline of 3.41% compared to RMB 4.02 billion in 2021, primarily due to reduced waste generation from upstream clients and intensified market competition[173] - The total hazardous waste collection volume decreased by approximately 16.65% year-on-year, with industrial waste resource recovery and treatment revenues at approximately RMB 1.31 billion and RMB 1.22 billion, down about 16.41% and 28.92% respectively compared to the previous year[171] - The average collection price for incineration waste dropped by over 15%, leading to a decrease in gross profit margin for hazardous waste business by 11.85 percentage points year-on-year[171] Governance and Compliance - The company’s board of directors believes that the ultimate controlling party is the State-owned Assets Supervision and Administration Commission of the Guangdong Provincial People's Government[9] - The group has adopted new/revised international financial reporting standards, including IAS 16, IAS 37, and IFRS 3, with no significant impact on consolidated financial statements[24][25][29] - The company has no significant contingent liabilities as of December 31, 2022[133]