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]

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，並明確表示概不會就因本公佈全部或部分內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 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） 內幕消息 2022 年第三季度報告概要 本公告乃按香港聯合交易所有限公司證券上市規則第13.09及13.10B條及香港法例第571章證券 及期貨條例第XIVA部的內幕消息條文發出。 茲提述東江環保股份有限公司（「本公司」）日期為2022年10月30日的有關本公司截至2022年9 月30日止9個月（「報告期」）之2022年第三季度報告全文的海外監管公告（「公告」）。該季度 報告的主要資料的概要列載如下： 除特別注明外，本公司的財務資料以人民幣（「人民幣」）列示。 財務報表 1、合併資產負債表 單位：人民幣元 截至 2021 年 | --- | --- | --- | |----------------|------------------ ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 2,033,460 thousand, representing an increase of 22.7% compared to RMB 1,656,202 thousand for the same period in 2021[5] - Gross profit decreased to RMB 411,430 thousand, down 17.2% from RMB 496,667 thousand year-on-year[5] - Net profit for the period was RMB 6,715 thousand, a significant decline of 94.4% from RMB 120,372 thousand in the previous year[5] - The company reported total comprehensive income of RMB 6,707 thousand, down from RMB 120,395 thousand in the same period last year[6] - Basic and diluted earnings per share decreased to RMB 2.32, compared to RMB 12.69 for the same period in 2021[6] - The company reported a net cash outflow from investing activities of RMB 305,170 thousand for the first half of 2022, compared to RMB 485,163 thousand in the prior year, showing a reduction of approximately 37.1%[14] - Financing activities generated a net cash inflow of RMB 271,739 thousand in the first half of 2022, down from RMB 421,415 thousand in the same period of 2021, reflecting a decrease of about 35.5%[14] - The total cash and cash equivalents at the end of the reporting period were RMB 650,038 thousand, down from RMB 725,542 thousand a year earlier, indicating a decline of approximately 10.4%[14] - The company’s net profit for the first half of 2022 was RMB 162,052 thousand, compared to RMB 135,688 thousand in the same period of 2021, indicating a year-over-year increase of about 19.4%[14] - The comprehensive gross profit margin for the six months ended June 30, 2022, was 20.23%, down 9.76 percentage points from 29.99% in the same period of 2021[75] Assets and Liabilities - Non-current assets totaled RMB 8,945,884 thousand as of June 30, 2022, compared to RMB 8,835,880 thousand at the end of 2021[7] - Current liabilities decreased to RMB 3,615,750 thousand from RMB 3,805,521 thousand at the end of 2021[8] - Non-current liabilities increased to RMB 3,039,626 thousand as of June 30, 2022, compared to RMB 2,559,894 thousand as of December 31, 2021, reflecting a growth of approximately 18.7%[9] - Interest-bearing borrowings rose significantly to RMB 2,138,845 thousand from RMB 1,173,418 thousand, marking an increase of about 82.2% year-over-year[9] - The total equity attributable to the company's owners decreased to RMB 4,577,069 thousand from RMB 3,725,652 thousand, indicating a year-over-year increase of approximately 22.8%[9] - As of June 30, 2022, the company's current liabilities exceeded current assets by approximately RMB 499,968,000[19] - The total amount of loans receivable was RMB 71,800, a decrease from RMB 105,690, reflecting a decline of 32.1%[37] - Trade payables as of June 30, 2022, totaled RMB 681,506,000, down from RMB 839,843,000 as of December 31, 2021, indicating a decrease of about 19%[41] - The total amount of bonds payable as of June 30, 2022, was RMB 1,254,456,000, compared to RMB 1,118,809,000 as of December 31, 2021, representing an increase of approximately 12.1%[45] Revenue Streams - The revenue from renewable energy utilization was RMB 754,230 thousand, up from RMB 656,695 thousand in the previous year, indicating a growth of about 14.8%[29] - The company’s industrial waste treatment revenue was RMB 668,385 thousand, a decrease from RMB 731,219 thousand in the previous year, representing a decline of approximately 8.6%[29] - The company’s municipal waste treatment revenue was RMB 82,361 thousand, down from RMB 92,554 thousand in the previous year, reflecting a decrease of approximately 11%[29] - The revenue from precious metal recovery was RMB 375,380 thousand, which was a new revenue stream introduced this year[29] Costs and Expenses - The company experienced a financial cost of RMB 84,216 thousand, up from RMB 58,801 thousand in the previous year[5] - For the six months ended June 30, 2022, the sales cost was RMB 1,082,975, an increase of 77.1% compared to RMB 611,492 for the same period in 2021[31] - Research and development expenses increased to RMB 85,653, up from RMB 65,555, reflecting a growth of 30.6% year-over-year[31] - The total tax expense for the period was RMB 10,857, a decrease of 44.8% from RMB 19,524 in the previous year[33] - Administrative expenses for the six months ended June 30, 2022, were approximately RMB 189,960,000, representing 9.34% of total revenue, up from 11.01% in the same period of 2021[77] Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming periods[3] - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency and revenue growth[28] - The company aims to enhance market expansion by implementing targeted "price-for-volume" strategies, focusing on regions such as the Guangdong-Hong Kong-Macao Greater Bay Area and Xinjiang, with a goal to achieve a record high in waste collection volume for the year[91] - The company is committed to cost reduction through initiatives like "streamlining operations" and "extreme cost reduction," aiming to optimize processes and improve asset utilization[93] Corporate Governance and Compliance - The financial data is prepared in accordance with International Financial Reporting Standards and is unaudited but reviewed by the audit committee[16] - The company has maintained compliance with all applicable corporate governance code provisions during the reporting period[109] - The audit committee, consisting of three independent non-executive directors, reviewed the group's financial results for the six months ended June 30, 2022[106] Shareholder Information - The company approved a final dividend of RMB 0.055 per share, totaling approximately RMB 48,360,000 for the year-end 2021[36] - The company did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[108] - As of June 30, 2022, the major shareholder Guangsheng Group holds 200,968,294 shares, representing 22.86% of the total shares[101] Legal and Dispute Matters - The company is involved in ongoing litigation regarding a construction project, with a court ruling requiring compensation of RMB 22,331,000, which the company disputes[56] - The company has resolved arbitration matters related to a share transfer agreement, resulting in payments totaling approximately RMB 55.07 million for damages and legal fees[97] - The company was ordered to pay RMB 27,733,000 in compensation to Qidi Company after offsetting debts, along with RMB 26,340,000 for subsidy losses and additional legal and arbitration fees totaling RMB 1,400,000[54]

Financial Performance - Total revenue for 2021 reached RMB 4,015,230 thousand, an increase of 21.3% from RMB 3,308,295 thousand in 2020[3] - Gross profit for 2021 was RMB 1,103,577 thousand, with a gross margin of 27.48%, down from 34.12% in 2020[3] - Net profit attributable to equity holders was RMB 160,745 thousand, a decrease of 47.4% compared to RMB 304,920 thousand in 2020[3] - The company achieved a total revenue of RMB 4.015 billion in 2021, representing a year-on-year growth of 21.37%[7] - The net profit attributable to shareholders was approximately RMB 161 million, a decrease of 47.28% compared to the previous year[14] - The gross profit margin for the main business declined by approximately 8.72 percentage points due to intensified market competition[14] - The company's comprehensive gross profit margin decreased to 27.48%, down 6.64 percentage points from the previous year, primarily due to increased competition and rising costs in the resource utilization sector[18] - Net profit attributable to equity holders of the parent company for the year was approximately RMB 160.7 million, a decline of 47.28% compared to the previous year, impacted by intensified competition and rising operational costs[19] Assets and Liabilities - Total assets increased to RMB 11,813,210 thousand, up from RMB 10,447,497 thousand in 2020[3] - The total liabilities increased to RMB 6,365,415 thousand from RMB 5,055,766 thousand in 2020[3] - The total assets increased to RMB 11.813 billion, up 13.07% from the beginning of the year[7] - Total liabilities increased to approximately RMB 6.365 billion, with a debt-to-asset ratio of 53.88%, up from 48.39% the previous year[24] - As of December 31, 2021, the company’s net assets reached RMB 5,447,795 thousand, showing a slight increase of 1.04% from RMB 5,391,731 thousand in the previous year[170] Operational Capacity and Projects - The company expanded its hazardous waste operating permit capacity to over 230,000 tons per year due to new project completions[6] - Six new incineration and landfill projects were completed, adding approximately 169,500 tons per year of hazardous waste processing capacity[6] - The company is currently constructing three key projects in Zhuhai and Jieyang, with a combined design capacity of 355,500 tons per year expected to be operational within two years[6] - The company aims to increase hazardous waste treatment capacity to 2.5 million tons by the end of 2022, optimizing its qualification structure and enhancing market share[32] Strategic Focus and Market Position - The company aims to enhance its strategic focus on resource utilization while continuing to deepen its core hazardous waste treatment business[6] - The company plans to accelerate strategic transformation and adjust its business structure in response to market changes and the national "dual carbon" strategy[14] - The company aims to enhance its competitiveness by focusing on resource recycling and expanding its market presence in key regions like Guangdong and Jiangsu[13] - The company is committed to participating in the carbon reduction initiative and pursuing long-term development opportunities in the green low-carbon economy[9] - The company plans to focus on the recycling of power batteries and the photovoltaic industry chain, seeking new market opportunities under the "dual carbon" strategy[33] Research and Development - The company is focusing on resource utilization and has increased its R&D investment, resulting in 93 new patents granted in 2021[6] - Research and development efforts are focused on sustainable technologies, with an investment of 50 million allocated for the upcoming year[51] Financial Management and Governance - The company issued RMB 500 million in medium-term notes and RMB 500 million in short-term financing notes, with interest rates of 3.79% and 3.20%, respectively, to optimize its debt structure[16] - The company has a profit distribution policy ensuring that cash dividends are not less than 20% of the distributable profits for the year and at least 30% over any three consecutive years[54] - The company has not made any adjustments to its profit distribution policy in the current year[55] - The company’s financial statements for the year ended December 31, 2021, were audited and confirmed to comply with listing rules regarding related party transactions[106] - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2021, in accordance with international financial reporting standards[154] Employee and Talent Management - The total number of employees as of December 31, 2021, was 5,265, an increase from 4,978 in 2020, with total employee costs amounting to approximately RMB 682,233,000[87] - The company faces risks of talent loss due to increasing competition in the hazardous waste treatment industry, and it plans to implement a "recruit, train, and retain" strategy to secure talent resources[36] Corporate Governance - The company emphasizes strong relationships with employees, suppliers, and customers to create value and share outcomes[110] - The company is committed to maintaining high standards of corporate governance and enhancing shareholder value through effective internal controls and transparent disclosures[120] - The board consists of nine members, including two women, demonstrating a commitment to diversity[131] - The company has adopted a code for securities trading by directors that is stricter than the standard code, with no violations reported during the reporting period[121] Environmental and Social Responsibility - In 2021, the company donated a total of RMB 832,700 to social welfare initiatives[116] - The company aims to provide comprehensive environmental services, focusing on waste resource utilization and harmless treatment processes[111] - The company has maintained compliance with relevant laws and regulations without any significant violations affecting its operations as of December 31, 2021[113]

Financial Performance - Total operating revenue for the three months ended March 31, 2022, was RMB 963,644,836.52, an increase of 28.2% compared to RMB 751,429,239.14 for the same period in 2021[8]. - Total operating costs for the same period were RMB 973,589,084.57, up from RMB 725,661,678.49, reflecting a 34.2% increase[8]. - Net profit for the three months ended March 31, 2022, was a loss of RMB 2,549,041.58, compared to a profit of RMB 29,972,638.72 in the same period of 2021[9]. - Operating profit for the three months ended March 31, 2022, was RMB 3,743,003.42, a decrease from RMB 39,634,004.76 in the same period of 2021[9]. - Total comprehensive income attributable to the parent company for the three months ended March 31, 2022, was RMB 5,241,505.40, compared to RMB 31,772,330.35 in the same period of 2021[10]. - The company reported a basic earnings per share of RMB 0.01 for the three months ended March 31, 2022, down from RMB 0.04 in the same period of 2021[10]. Assets and Liabilities - As of March 31, 2022, the company's total assets amounted to RMB 12,158,191,022.28, an increase from RMB 11,813,210,663.73 as of December 31, 2021, reflecting a growth of approximately 2.9%[6]. - The company's current assets totaled RMB 3,128,038,230.88 as of March 31, 2022, compared to RMB 2,977,328,966.77 at the end of 2021, indicating an increase of about 5.1%[3]. - The company's total liabilities reached RMB 6,713,174,963.02 as of March 31, 2022, compared to RMB 6,365,414,669.75 at the end of 2021, marking an increase of approximately 5.5%[5]. - The company's total equity stood at RMB 5,445,016,059.26 as of March 31, 2022, slightly down from RMB 5,447,795,993.98 at the end of 2021, indicating a decrease of about 0.1%[6]. Cash Flow - Cash flow from operating activities for the three months ended March 31, 2022, was RMB 1,053,352,260.70, compared to RMB 840,101,872.46 for the same period in 2021, indicating a 25.4% increase[11]. - The company reported a net increase in cash flow from operating activities, indicating improved liquidity despite the net loss reported[11]. - Cash and cash equivalents increased to RMB 653,529,307.07 from RMB 550,421,369.21, representing a growth of approximately 18.7%[2]. - Cash and cash equivalents increased by RMB 104.22 million, compared to a decrease of RMB 121.99 million in the previous period[13]. - The net cash flow from financing activities was RMB 318.04 million, up from RMB 100.57 million in the previous period[12]. - The cash outflow from operating activities totaled RMB 1.07 billion, with a net cash flow from operating activities of -RMB 11.65 million[12]. - The company reported a cash outflow from investment activities of RMB 202.16 million, compared to RMB 273.44 million in the previous period[12]. Expenses and Costs - Research and development expenses increased to RMB 41,901,428.68 from RMB 31,944,281.61, representing a 31.2% rise year-over-year[8]. - The total operating costs increased by about 40% year-on-year, primarily due to rising procurement costs of resource waste and increased costs from the new precious metal recovery business[14]. - The company experienced a significant increase in sales revenue from goods and services, reaching RMB 1,044,840,887.85 for the three months ended March 31, 2022, compared to RMB 827,435,292.53 in the previous year, a growth of 26.3%[11]. - Net profit decreased year-on-year, mainly due to intensified market competition and a decline in treatment prices, resulting in a gross margin drop of approximately 2.58%[14]. Strategic Initiatives - The company plans to enhance market expansion efforts to ensure record collection volumes for the year and to strengthen the precious metal recovery business[14]. - The company aims to implement strategies for cost reduction and efficiency improvement, alongside digital transformation initiatives[14]. Inventory and Receivables - The inventory increased to RMB 612,340,444.51 from RMB 550,901,693.78, reflecting a growth of approximately 11.1%[3]. - Accounts receivable rose to RMB 1,024,845,235.41 from RMB 1,022,764,012.55, showing a slight increase of about 0.2%[2]. Borrowings - Short-term borrowings decreased significantly from RMB 1,944,231,778.18 to RMB 1,207,486,236.73, a reduction of about 37.9%[5]. - The long-term borrowings increased from RMB 1,173,417,545.51 to RMB 1,790,657,401.58, representing a growth of approximately 52.5%[5]. - The company reported a decrease in employee compensation payable from RMB 55,140,121.59 to RMB 32,332,458.87, a decline of about 41.3%[5].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 1,656,202 thousand, representing an increase of 12.0% compared to RMB 1,479,030 thousand for the same period in 2020[4] - Gross profit for the same period was RMB 496,667 thousand, slightly up from RMB 488,744 thousand, indicating a stable gross margin[4] - Net profit for the six months ended June 30, 2021, was RMB 120,372 thousand, down 23.6% from RMB 157,696 thousand in the prior year[4] - Basic and diluted earnings per share decreased to RMB 12.69 from RMB 18.26, reflecting a decline of 30.5%[5] - The company reported a net profit of RMB 120,272,000 for the period[21] - The net profit attributable to shareholders was approximately RMB 112 million, a decrease of 30.47% compared to the previous year[58] - The company reported a pre-tax profit of RMB 111,617 thousand for the period, down from RMB 160,542 thousand in the previous year, indicating a decline of about 30.5%[29] - The total tax expense for the period was RMB 19,524 thousand, significantly lower than RMB 39,236 thousand in the previous year, indicating a decrease of approximately 50.2%[27] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 8,059,846 thousand, an increase from RMB 7,869,508 thousand at the end of 2020[6] - The total assets of the company amounted to RMB 10,892,803,000[21] - The company’s total liabilities as of June 30, 2021, were RMB 1,921,147 thousand, an increase from RMB 1,474,376 thousand at the end of 2020, indicating a growth of approximately 30.3%[8] - The company’s total liabilities decreased to RMB 2,516,793 thousand as of June 30, 2021, compared to RMB 2,880,047 thousand in the previous year, reflecting a reduction of approximately 12.6%[24] - As of June 30, 2021, the total liabilities of the group amounted to approximately RMB 5,390,765,000, an increase from RMB 5,050,514,000 as of December 31, 2020, resulting in a debt-to-asset ratio of 49.49% compared to 48.45% in the previous period[71] Cash Flow and Financing - Cash and cash equivalents increased to RMB 726,752 thousand from RMB 661,657 thousand, indicating improved liquidity[6] - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 135,688 thousand, a decrease from RMB 399,076 thousand for the same period in 2020, reflecting a decline of about 65.9%[11] - The company reported a net cash outflow from investing activities of RMB 485,163 thousand for the first half of 2021, compared to RMB 340,739 thousand in the same period of 2020, indicating an increase in investment expenditures[11] - Financing activities generated a net cash inflow of RMB 421,415 thousand in the first half of 2021, contrasting with a net cash outflow of RMB 373,756 thousand in the same period of 2020[11] - The company plans to issue up to RMB 1.5 billion in short-term financing bonds to meet long-term funding needs for project construction and technological upgrades[84] - The company received a registration notice for issuing up to RMB 1,500,000,000 in short-term financing bonds, primarily for refinancing and operational funding[16] Operational Highlights - The company plans to focus on market expansion and new technology development to enhance future growth prospects[4] - The total revenue from the industrial waste resource utilization segment was RMB 654,695,000[20] - The total revenue from the industrial waste treatment segment was RMB 759,679,000, with a cost of RMB 731,279,000[20] - The total revenue from municipal waste treatment was RMB 92,554,000, with a cost of RMB 12,733,000[20] - The company aims to enhance market share and business volume by optimizing market management and exploring new market opportunities in pharmaceuticals, chemicals, and automotive repair industries[59] - The group added a new hazardous waste treatment capacity of 139,500 tons per year during the reporting period, with a total approved capacity of 2,130,000 tons per year[60] Research and Development - Research and development expenses rose to RMB 65,555 thousand in the first half of 2021, up from RMB 51,787 thousand in the same period of 2020, representing an increase of approximately 26.5%[26] - The group invested RMB 68,843,600 in R&D, an increase of 11.18% compared to the same period last year, focusing on tackling industry challenges and enhancing technological capabilities[62] Shareholder Information - Major shareholder Guangdong Guangsheng holds 166,068,501 shares, representing 18.89% of the total A shares[90] - Jiangsu Huihong International Group holds 50,087,669 A shares, accounting for 5.70% of the total[91] - The board does not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[97] Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency[98] - The chairman and CEO roles are currently held by the same person as a transitional arrangement[99] - The company has complied with all applicable corporate governance code provisions during the reporting period[98]

Financial Performance - Total revenue for 2020 was RMB 3,315,021,000, a decrease of 4.14% from RMB 3,458,591,000 in 2019[5] - Gross profit for 2020 was RMB 1,131,074,000, with a gross margin of 34.12%, down from 36.08% in 2019[5] - Net profit attributable to shareholders for 2020 was RMB 303,162,000, a decline of 28.5% compared to RMB 423,930,000 in 2019[5] - The company achieved total operating revenue of RMB 331,502.10 million, a decrease of 4.15% compared to the same period last year[14] - The net profit attributable to equity holders of the company was RMB 30,316.20 million, down 28.49% year-on-year[14] - The company's total operating revenue for the year ended December 31, 2020, decreased by 4.15% to approximately RMB 3,315,021,000 compared to RMB 3,458,591,000 in 2019[24] - The revenue from industrial waste treatment decreased by approximately 4.05% to about RMB 1,599,509,000, down from RMB 1,667,032,000 in the previous year[24] - The net profit attributable to equity holders of the parent company for the year ended December 31, 2020, was approximately RMB 303,162,000, a decrease of 28.49% compared to RMB 423,930,000 in 2019, largely due to the adverse impact of the COVID-19 pandemic and changes in the operating environment[25] Assets and Liabilities - Total assets increased to RMB 10,424,154,000 in 2020, up from RMB 10,395,432,000 in 2019[5] - As of December 31, 2020, total assets amounted to RMB 1,042,415.40 million, an increase of 0.28% from the beginning of the period[14] - The group's total liabilities as of December 31, 2020, were approximately RMB 5,050,514,000, a decrease from RMB 5,360,589,000 in 2019, with an asset-liability ratio of 48.45% compared to 51.57% in 2019[30] Operational Capacity and Projects - The company completed the construction of 6 projects and obtained hazardous waste operating permits totaling 192,300 tons/year during the reporting period[8] - The overall hazardous waste treatment capacity exceeded 2 million tons/year, with a utilization rate of approximately 40.53%[8] - The design capacity of ongoing construction projects exceeds 400,000 tons/year[8] - The company processed over 9,000 tons of medical waste during the pandemic, ensuring zero infection among its 4,900 employees[14] - The total hazardous waste treatment capacity exceeds 2 million tons per year, including 750,000 tons for comprehensive utilization and 360,000 tons for incineration[15] - The company has 8 ongoing projects with a combined hazardous waste treatment capacity exceeding 400,000 tons per year[16] Strategic Initiatives - The company is actively pursuing project acquisitions to enhance strategic layout and industry synergy[8] - The company aims to improve operational management standards through technical innovation and cost-saving measures[8] - The company plans to maintain a stable profit distribution plan, proposing a cash dividend of RMB 0.11 per share, subject to shareholder approval[14] - The company aims to enhance management standards and accelerate industrial layout to ensure steady business growth and improve profitability[44] - The company intends to actively explore international markets to increase market share and broaden sales channels[45] Innovation and Development - The company applied for 63 new patents and obtained 81 new authorized patents, with two achievements recognized as internationally leading standards[23] - The company is focusing on technological innovation to enhance its core competitiveness, establishing national and provincial key laboratories to improve innovation efficiency[47] - New product development initiatives are underway, with an investment of 100 million yuan allocated for R&D in sustainable technologies[58] Safety and Compliance - The accident rate decreased by 62.5% year-on-year, with no major safety incidents reported during the reporting period[21] - The company is committed to implementing safety and environmental responsibilities, enhancing risk control, and promoting a culture of safety management[46] - The company has maintained compliance with relevant laws and regulations in its operations, with no significant violations reported as of December 31, 2020[137] Corporate Governance - The board of directors will focus on enhancing corporate governance and maintaining good relationships with shareholders in 2021[140] - The company is committed to improving corporate governance practices and maintaining high levels of transparency in information disclosure[144] - The board consists of both executive and independent non-executive directors, ensuring a balance of power[152] - The company has established a comprehensive internal management system and approval processes applicable across the group[184] Financial Management - Financial costs were reduced by RMB 28.44 million year-on-year through measures such as issuing medium-term notes and replacing high-interest debt[20] - The company has maintained its profit distribution policy, ensuring that cash dividends in the last three years accounted for at least 30% of the average distributable profit[70] - The company’s distributable reserves for dividends were calculated at RMB 1,384,773,000 during the reporting period[94] Market Presence - Jiangsu Huaihong International Group reported a significant increase in revenue, achieving a total of 1.2 billion yuan, representing a 15% year-over-year growth[56] - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by the end of 2024[57] Audit and Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2020, in accordance with international financial reporting standards[188] - The audit identified key audit matters based on communication with governance, which are crucial for the financial statements[200] - The audit was conducted by Zhongjian Zhonghuan (Hong Kong) CPA Limited[200] - The report was issued on March 29, 2021, for the fiscal year 2020[200] Employee Management - The total employee cost for the year was approximately RMB 594,598,000, a decrease from RMB 626,069,000 in the previous year[104] - The number of full-time employees increased to 4,978 from 4,807 in the previous year[104] - The company recognizes the risk of talent shortages in the environmental protection industry and is implementing long-term incentive mechanisms to attract and retain skilled professionals[51]

Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 1,479,030,093.03, a decrease of 12.5% compared to RMB 1,689,879,261.29 for the same period in 2019[30]. - Net profit for the six months ended June 30, 2020, was RMB 157,695,636.25, a decline of 45.7% compared to RMB 291,021,261.32 in 2019[31]. - Operating profit for the period was RMB 200,850,068.54, down 40.0% from RMB 335,214,928.87 in the previous year[31]. - Operating revenue for the first half of 2020 was RMB 226,054,891.08, a decrease of 22.9% compared to RMB 293,371,416.88 in the same period of 2019[33]. - Net profit for the first half of 2020 was RMB 41,415,623.03, down 74.7% from RMB 164,022,001.29 in the first half of 2019[34]. - Total comprehensive income for the first half of 2020 was RMB 158,823,849.45, down 45.2% from RMB 289,617,475.45 in the first half of 2019[32]. - The company reported a significant drop in profit attributable to minority interests, which was a loss of RMB 2,846,318.97 compared to a profit of RMB 38,586,119.09 in 2019[31]. - The company reported a net loss attributable to minority shareholders of RMB 2,846,318.97 in the first half of 2020, compared to a profit of RMB 38,586,119.09 in the same period of 2019[32]. - The company reported a net loss of RMB 121,241,824.27 for the period, indicating financial challenges[59]. Revenue Breakdown - The industrial waste resource recovery business generated revenue of RMB 481,624,599.08, down from RMB 565,662,430.25, reflecting a decrease of about 14.9% year-over-year[62]. - The industrial waste treatment and disposal services revenue was RMB 690,562,901.50, compared to RMB 796,882,986.93 in the previous year, indicating a decline of approximately 13.3%[62]. - The municipal waste treatment and disposal services revenue decreased to RMB 61,304,968.85 from RMB 106,423,903.40, a drop of around 42.4%[62]. - The environmental engineering and services segment saw an increase in revenue to RMB 124,257,574.36 from RMB 74,549,762.17, marking a growth of approximately 66.7%[62]. - The electronic waste dismantling segment generated revenue of RMB 66,153,140.34, down from RMB 88,576,844.85, reflecting a decline of approximately 25.3%[62]. Expenses and Costs - Total operating costs for the same period were RMB 1,340,142,470.69, down 6.4% from RMB 1,432,543,142.88 in 2019[30]. - Other income decreased to RMB 56,940,104.37 from RMB 74,200,780.20, reflecting a decline of 23.3%[31]. - Research and development expenses remained stable at RMB 51,787,340.10, slightly up from RMB 51,776,104.93 in 2019[30]. - Financial expenses decreased to approximately RMB 63,396,658, representing about 4.29% of total revenue, down from 4.12% in 2019, due to optimized financing structure[104]. - Management expenses increased slightly to approximately RMB 165,919,001, accounting for about 11.22% of total revenue, up 1.54 percentage points from 9.49% in 2019[103]. - Sales expenses for the period were approximately RMB 48,484,603, representing about 3.28% of total revenue, a slight decrease from 3.29% in 2019 due to reduced business activities impacted by the COVID-19 pandemic[102]. Assets and Liabilities - As of June 30, 2020, total current assets decreased to RMB 2,654,995,417.50 from RMB 3,025,673,151.15, representing a decline of approximately 12.24%[36]. - Total liabilities decreased to RMB 5,100,945,095.98 from RMB 5,360,588,714.91, reflecting a reduction of about 4.84%[39]. - Total equity attributable to the parent company increased to RMB 4,373,175,965.42 from RMB 4,344,631,763.32, marking a growth of approximately 0.66%[40]. - The total assets decreased to RMB 10,224,186,348.62 from RMB 10,395,432,084.42, reflecting a decrease of approximately 1.64%[38]. - The company's total owner's equity decreased to RMB 2,887,470,164.70 from RMB 2,977,944,606.97, reflecting a decline of approximately 3.0%[45]. Cash Flow - Cash inflows from operating activities totaled RMB 1,664,364,999.04, a decrease from RMB 2,028,660,810.19, indicating a decline of approximately 17.9%[46]. - Operating cash flow for the six months ended June 30, 2020, was RMB 399,075,201.87, a decrease of 31.5% compared to RMB 583,438,087.84 for the same period in 2019[47]. - The net cash flow from financing activities was negative at RMB -373,755,920.16, contrasting with a positive cash flow of RMB 38,320,439.13 in the same period of 2019[49]. - The ending cash and cash equivalents balance was RMB 780,088,534.98, down from RMB 1,303,447,097.46 at the end of June 2019, representing a decrease of 40.0%[49]. - Cash inflow from financing activities totaled RMB 2,024,090,572.00, a substantial increase of 79.9% compared to RMB 1,126,108,028.84 in the same period last year[48]. Strategic Focus and Future Plans - The company plans to focus on market expansion and new technology development in the upcoming quarters[30]. - The company is focusing on expanding its environmental engineering services as a strategic growth area, which has shown promising revenue growth[62]. - The company plans to enhance its market presence through strategic initiatives in waste management and resource recovery sectors[62]. - In the second half of 2020, the company will focus on stabilizing and expanding the hazardous waste market, accelerating project construction, enhancing R&D, and controlling costs and expenditures[115]. - The company intends to explore new business opportunities in hazardous waste collection and recycling, including the dismantling and recycling of old vehicles and power battery recovery[119]. Tax Incentives - The company benefits from a reduced corporate income tax rate of 15% due to its status as a high-tech enterprise, along with a 75% deduction for R&D expenses[70]. - The company benefited from various tax incentives, including a 100% VAT refund for biogas electricity generation from waste fermentation for the period from January 2020 to December 2020[81]. - The company has ongoing tax incentives for environmental protection projects, including a 50% reduction in corporate income tax from 2023 to 2025[80]. Corporate Governance and Management - The company has established an audit committee to oversee financial reporting, risk management, and internal audit functions, complying with listing rules[140]. - The company has revised its articles of association in accordance with new regulations and its operational situation[126]. - The company plans to appoint a new auditor, Zhongshen Zhonghuan, after the current auditor's term ends on June 29, 2020[129]. - The company has made amendments to its governance structure to align with updated regulatory requirements[126].

T三 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) 01/20 U FE *僅供識別 目錄 公司資料 2 3 財務概要 4 董事長報告 6 管理層討論與分析 22 管理層簡介 26 董事會工作報告 40 監事會工作報告 41 企業管治報告 53 審計報告 60 合併資產負債表 63 母公司資產負債表 65 合併利潤表 68 母公司利潤表 70 合併現金流量表 73 母公司現金流量表 75 合併股東權益變動表 77 母公司股東權益變動表 79 財務報表附註 公司資料 公司資料 | --- | --- | --- | |--------------------------------------------------|-------------------------------------------------|-------| | 執行董事 | 戰略發展委員會 | | | 譚 侃 （董事長） | 譚 侃 （主席） | | | 姚 曙 （總 裁）（於 2019 年 ...

Financial Performance - Total revenue for the six months ended June 30, 2019, was RMB 1,689,879,261.29, a slight increase from RMB 1,662,134,708.97 in the same period of 2018, representing a growth of approximately 1.66%[4] - Net profit for the six months ended June 30, 2019, was RMB 291,021,261.32, compared to RMB 313,271,550.70 in the same period of 2018, indicating a decrease of about 7.1%[5] - Operating profit for the six months ended June 30, 2019, was RMB 335,214,928.87, down from RMB 351,831,305.63 in the same period of 2018, reflecting a decline of approximately 4.8%[5] - The total cost of operations for the six months ended June 30, 2019, was RMB 1,432,543,142.88, compared to RMB 1,386,084,551.55 in the same period of 2018, which is an increase of about 3.6%[4] - Basic earnings per share for the six months ended June 30, 2019, was RMB 0.29, a decrease from RMB 0.30 in the same period of 2018[5] - Other comprehensive income after tax for the six months ended June 30, 2019, was RMB -1,403,785.87, compared to RMB 2,157,565.38 in the same period of 2018, indicating a significant decline[5] - The company reported other income of RMB 74,200,780.20 for the six months ended June 30, 2019, compared to RMB 68,593,533.43 in the same period of 2018, showing an increase of approximately 8.5%[4] Assets and Liabilities - Total assets as of June 30, 2019, amounted to CNY 10.45 billion, up from CNY 9.74 billion at the end of 2018, reflecting a growth of about 7.3%[8] - Current assets totaled CNY 3.28 billion as of June 30, 2019, compared to CNY 3.09 billion at the end of 2018, marking an increase of approximately 6.2%[7] - The company's total liabilities were CNY 5.56 billion as of June 30, 2019, compared to CNY 5.06 billion at the end of 2018, representing an increase of about 9.9%[9] - The company’s total equity attributable to shareholders was CNY 4.17 billion as of June 30, 2019, compared to CNY 4.04 billion at the end of 2018, indicating an increase of about 3.2%[9] Cash Flow - The net cash flow from operating activities for the first half of 2019 was approximately 583.44 million, a significant increase from 298.71 million in the same period of 2018[13] - The net cash flow from operating activities for the six months ended June 30, 2019, was -79,076,358.01, compared to 273,161,952.82 for the same period in 2018, indicating a significant decline[15] - The net cash flow from investing activities for the first half of 2019 was approximately -345.90 million, an improvement compared to -454.82 million in the same period of 2018[13] - The total cash inflow from financing activities reached 1,937,768,949.15, up from 810,000,000.00 in the previous year, reflecting a strong increase in financing efforts[16] Market Strategy and Growth - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in the upcoming periods[5] - The company is exploring new market expansion opportunities and potential acquisitions to drive future growth[5] - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[43] - The company aims to invest in new technologies and product development to drive future growth and competitiveness[45] Operational Challenges - The financial outlook for the next quarter suggests a cautious approach due to market uncertainties and operational challenges[46] - The company plans to focus on hazardous waste disposal, enhance research efforts, and accelerate project upgrades in response to increasing market competition and regulatory pressures[127] - The group aims to optimize existing project capacities and ensure stable development of core business operations amid rising environmental compliance costs[126] Corporate Governance and Management - The company has maintained compliance with all applicable corporate governance codes as per the listing rules[154] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements and provided recommendations[151] - The company appointed Mr. Yao Shu as the new president, effective immediately upon board approval[135] - Ms. Wang Jianying was appointed as the vice president and financial officer, effective upon board approval[136] Shareholder Information - The company does not recommend the distribution of interim dividends for the period[97] - Major shareholder Guangsheng Company holds 189,104,110 A shares, accounting for 21.51% of the company's equity[145] - Major shareholder Huihong Group holds 76,082,707 A shares, accounting for 8.65% of the company's equity[147]