Revenue and Profitability - Revenue for the six months ended June 30, 2021, was approximately HKD 173.25 million, an increase of 23% compared to HKD 141.22 million for the same period in 2020[4] - The increase in revenue was primarily driven by growth in the group's water supply business[4] - Revenue for the six months ended June 30, 2021, was HKD 173,249,000, an increase of 22.7% from HKD 141,215,000 in the same period of 2020[44] - Water supply and related services revenue was HKD 153,013,000, up from HKD 123,521,000, representing a growth of 23.9%[44] - Rental and property management service revenue increased to HKD 20,236,000 from HKD 18,829,000, reflecting a growth of 7.5%[44] - The group reported a loss before tax of HKD 42,393,000 for the six months ended June 30, 2021, compared to a loss of HKD 16,102,000 in the same period of 2020[58] - The group reported a net loss attributable to shareholders of approximately HKD 25,142,000, an increase of HKD 15,985,000 compared to a net loss of HKD 9,157,000 in the same period last year[122] Financial Position - The group's total assets as of June 30, 2021, were HKD 2,269.39 million, down from HKD 2,618.05 million as of December 31, 2020[22] - Cash and bank balances as of June 30, 2021, were HKD 648.11 million, a decrease from HKD 999.06 million as of December 31, 2020[18] - The total equity attributable to shareholders decreased to HKD 1,126,052,000 from HKD 1,146,139,000, representing a decline of approximately 1.8%[25] - The total equity, including non-controlling interests, was HKD 1,323,207,000, down from HKD 1,360,532,000, indicating a decrease of about 2.7%[25] - The group's cash and bank balances decreased by HKD 347,727,000 to HKD 794,948,000, mainly due to loan repayments during the period[150] Costs and Expenses - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 6,778,000, a decrease of 59.6% compared to HKD 16,784,000 in the same period of 2020[29] - The group's financial costs increased significantly, with finance costs for the six months ended June 30, 2021, amounting to HKD 24.96 million, compared to HKD 15.92 million in the same period of 2020[8] - The group’s employee costs rose to HKD 25,820,000 from HKD 21,002,000, an increase of 23.5%[49] - General and administrative expenses increased by 12% to HKD 32,456,000, mainly due to the appreciation of the Renminbi[135] - Financial costs rose by 57% to HKD 24,956,000, primarily due to increased loan interest from water supply services and property investment[137] Cash Flow and Investments - The net cash used in investing activities was HKD (16,987,000), significantly improved from HKD (305,125,000) in the previous year, indicating a reduction in investment outflows[29] - The company reported a foreign exchange gain of HKD 11,172,000, contrasting with a loss of HKD (6,319,000) in the previous year, reflecting favorable currency movements[29] - The company acquired property, plant, and equipment amounting to HKD 17,806,000 during the six months ended June 30, 2021, compared to HKD 11,391,000 for the year ended December 31, 2020[69] - The company plans to finance foreseeable expenditures through cash flows generated from operations, but may require additional borrowing or equity financing for large-scale expansions, developments, investments, or acquisitions[161] Share Capital and Ownership - The company’s issued share capital remained stable at HKD 55,130,000, with no new shares issued during the period[34] - The company has a significant shareholder, Ms. Zhu, holding 1,561,140,000 shares, representing 28.32% of the issued share capital[182] - The company has a significant shareholder structure, with 永城, 朱鳳廉, and Affluent Vast collectively holding 1,561,140,000 shares, representing 28.32% of the total issued share capital[192] - 博舜 holds 600,000,000 shares, accounting for 10.88% of the total issued share capital[192] - The new share option scheme allows for a maximum of 10% of the issued shares to be granted as options, with individual participant limits set at 1% and 0.1% for major shareholders[200] Legal and Regulatory Matters - The company is involved in a legal dispute regarding a civil claim amounting to RMB 96,500,000 related to water supply costs, which is currently under legal review[180] - The company has not entered into any arrangements to hedge foreign exchange risks, which may impact operational performance due to fluctuations in the exchange rates of RMB and HKD[174] - The company has no contingent liabilities identified by the directors[178] Future Plans and Strategies - The group is focusing on property investment and development opportunities both in China and overseas to increase recurring income and capital appreciation[126] - In May 2021, the group entered into an acquisition agreement to acquire all equity interests in Goodwin Finance Limited and Goodwin Securities Limited, aiming to enhance its financial services capabilities[128] - The group proposed to invest up to RMB 380,550,000 (approximately HKD 455,203,000) in Guangdong Nanyue Bank, which constitutes a discloseable transaction under listing rules[166]

Financial Performance - For the year ended December 31, 2020, the company's revenue was HKD 3,447.5 million, an increase of HKD 411.5 million or 14% compared to HKD 3,036.0 million in 2019[6] - The net loss attributable to shareholders for the year was HKD 36.3 million, a decrease of HKD 80.3 million or 69% from a net loss of HKD 116.6 million in 2019[6] - Basic and diluted loss per share for the year was HKD 0.66, compared to HKD 2.96 for the year ended December 31, 2019[6] - The company recorded revenue of HKD 344,748,000 for the fiscal year, an increase of 14% or HKD 41,150,000 compared to the previous fiscal year[22] - The net loss attributable to shareholders decreased to HKD 36,337,000, a reduction of HKD 80,297,000 from the previous fiscal year[22] - Other income and gains increased by 61% to HKD 16,032,000, primarily due to gains from the sale of investment properties and a subsidiary[25] - General and administrative expenses rose by 34% to HKD 87,902,000, mainly due to impairment losses on certain assets[26] - Financial expenses increased by 60% to HKD 38,793,000, primarily due to increased bank loan interest[30] Revenue Sources - The revenue from water supply and related services was approximately HKD 305.9 million, an increase of 5% from HKD 290.5 million in the previous year[15] - The property investment and development segment recorded revenue of approximately HKD 38,841,000, a significant increase of 196% or about HKD 25,704,000 compared to HKD 13,137,000 in the previous year[61] - Revenue from water supply and related services was approximately HKD 305,907,000, up 5% or about HKD 15,446,000 from HKD 290,461,000 in the previous year, driven by increased demand due to urban development[61] Financial Position - The company’s asset-to-liability ratio increased from 41% in the previous year to 52% in the current year, indicating a shift in financial structure[15] - The group's net current assets as of December 31, 2020, were HKD 897,027,000, including cash and bank balances of HKD 999,061,000[57] - The group's asset-liability ratio increased to 52% as of December 31, 2020, compared to 41% in the previous year[57] - Cash and bank balances increased by HKD 409,214,000 to HKD 1,142,675,000, mainly due to additional loans from third parties[42] - Bank and other borrowings rose by HKD 561,155,000 to HKD 1,242,821,000, attributed to an additional loan from a third party[43] Corporate Governance - The company has adopted corporate governance practices in line with the listing rules to enhance shareholder value and protect stakeholder interests[121] - The company’s board believes that effective corporate governance is crucial for maintaining transparency and accountability to all stakeholders[121] - The company’s CEO, Mr. Chen, also serves as the Chairman of the Board, which deviates from the corporate governance code that recommends separation of these roles[122] - The board will regularly review and propose amendments to ensure compliance with the corporate governance code as necessary[123] - The board consists of seven directors, including three executive directors and three independent non-executive directors, complying with listing rules[124] - The board held 7 meetings during the year, with all directors attending every meeting[131] - The company has implemented a continuous professional development plan for directors, ensuring they receive necessary training and updates on regulations[135] Legal and Compliance Issues - The company is involved in a significant legal dispute regarding a civil claim for water supply costs amounting to RMB 96,500,000, which is currently under litigation[95] - The company has sought legal advice to protect its rights concerning a government-mandated water supply cessation and is preparing for potential outcomes in the ongoing litigation[95] - The company has made reasonable estimates in its consolidated financial statements to account for the water supply costs pending resolution of the related disputes and litigation[95] Investment and Development Plans - The company established a joint venture with Dongguan Zhaoyu Real Estate Co., Ltd. to participate in land auctions and property development in the Greater Bay Area and first- and second-tier cities in China[16] - The group plans to invest in at least 51% equity of target companies involved in land development in China, focusing on first-tier cities and developed markets[19] - The group plans to participate in land auctions and property development in the Guangdong-Hong Kong-Macao Greater Bay Area and first- and second-tier cities in China through a joint venture agreement[62] - The company agreed to acquire a target company for a total cash consideration of RMB 576,000,000 (approximately HKD 780,231,277) through a placement and rights issue[81] Employee and Stakeholder Engagement - The group has a total of 400 employees as of December 31, 2020, compared to 397 employees in 2019[67] - The group aims to maintain sustainable development by enhancing corporate governance standards and providing training and career development for employees[66] - The company provides medical insurance, annual health checks, and safety training to employees to ensure occupational health and safety[199] - The company has established a stakeholder engagement process to gather feedback and address concerns from both internal and external stakeholders[194] Environmental and Social Responsibility - The company is committed to environmental, social, and governance (ESG) performance, as highlighted in its fifth ESG report[188] - The company operates water treatment and distribution services in Qingyuan City, Guangdong Province, China, ensuring reliable high-quality water supply[189] - The company is committed to sustainable water resource management and encourages the sustainable use of water resources[190] - The company aims to enhance energy efficiency and reduce consumption at the Dongshan Mall, while also assisting in the renovation of local communities[193] - The company encourages the use of renewable energy vehicles and aims to improve urban air quality through its operations[193]

TECHNOLOGIES 環 球 實 業 科 技 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號 : 1026 8 中期報告 2020 AM FILLER 目錄 頁數 概要2 | --- | |----------------------| | | | 簡明綜合損益表 | | 簡明綜合全面收益表 | | 簡明綜合財務狀況表 | | 簡明綜合現金流量表 | | 簡明綜合權益變動表 | | 簡明綜合財務報表附註 | | 獨立審閱報告 | | 管理層討論及分析 | | 其他資料 | 3 5 6 9 10 11 35 37 51 概要 － 截至二零二零年六月三十日止六個月的收入約為141.22百萬港元（截至二零 一九年六月三十日止六個月：約116.72百萬港元），較去年同期增加24.5百 萬港元或21%。增加主要由於(a)本集團的自來水供應業務收入增長；及(b) 廣州物業所貢獻之租金收入所致。 － 截至二零二零年六月三十日止六個月的本公司股東應佔虧損淨額約為9.16 百萬港元（截至二零一九年六月三十日止六個月：約6.16百萬港元），較去 年同期增加約3百萬港元，主要由於本集團自來水供應服務業務的銷 ...

Financial Performance - For the year ended December 31, 2019, the company's revenue was HKD 303.6 million, an increase of 12% or HKD 31.7 million compared to HKD 271.9 million in 2018[5] - The net loss attributable to shareholders for the year was HKD 116.6 million, an increase of HKD 89.8 million from a net loss of HKD 26.8 million in 2018[5] - The basic and diluted loss per share for the year was HKD 0.296, compared to HKD 0.126 for the previous year[5] - The company did not recommend any dividend for the year ended December 31, 2019, consistent with the previous year[6] - The company recorded goodwill impairment losses of HKD 99.0 million, which increased significantly compared to the previous fiscal year[21] - The cost of sales/services provided for the year was HKD 237.7 million, an increase of HKD 50.3 million from the previous fiscal year[22] - Other income and gains for the year were HKD 9.9 million, a decrease of 50% compared to the previous year, primarily due to the absence of early repayment gains from bank loans[23] - General and administrative expenses for the fiscal year amounted to HKD 65,772,000, a decrease of 13% compared to the previous fiscal year[24] - Financial expenses for the fiscal year were HKD 24,260,000, down 14% from the last fiscal year, primarily due to the repayment of part of the loans[25] - Profit tax expenses decreased by 67% to HKD 3,516,000, mainly due to reduced profitability in the water supply business[27] Revenue Sources and Investments - The company aims to diversify its revenue sources and seek long-term investment opportunities despite the uncertain global economic outlook[16] - The company acquired a property in Guangzhou, China, to generate stable rental income and strengthen its revenue base[13] - The company plans to participate in land auctions and property development in the Greater Bay Area and first- and second-tier cities in China through a joint venture established in January 2020[16] - The group reported a revenue of approximately HKD 303,598,000 for the year ended December 31, 2019, representing a 12% increase from HKD 271,909,000 in the previous year[53] - Revenue from water supply and related services was approximately HKD 290,461,000, an 8% increase from HKD 269,761,000, driven by increased demand due to urban development[53] - The property investment and development segment contributed revenue of approximately HKD 13,137,000, a significant increase of 512% from HKD 2,148,000 in the previous year[53] - The company plans to invest up to RMB 219,000,000 (approximately HKD 245,241,000) in a joint venture project for property development in the Guangdong-Hong Kong-Macao Greater Bay Area[47] - The group plans to continue focusing on property investment and development, seeking suitable projects in China and overseas to diversify revenue sources[58] Assets and Liabilities - Cash and bank balances and time deposits rose by HKD 444,793,000 to HKD 733,461,000, primarily due to funds raised from rights issues and additional bank loans for the water supply business[39] - Property, plant, and equipment decreased by HKD 22,163,000 to HKD 471,050,000, attributed to depreciation during the fiscal year[28] - Investment properties increased by HKD 644,477,000 to HKD 691,076,000, mainly due to the acquisition of several commercial properties in Guangzhou[30] - Contract liabilities increased by HKD 20,170,000 to HKD 43,566,000, mainly due to increased contract revenue from the water supply and related businesses[45] - As of December 31, 2019, the group's net current assets amounted to HKD 491,142,000, with cash and bank balances of HKD 484,707,000[51] - As of December 31, 2019, the group had a debt-to-asset ratio of 41%, down from 45% in 2018[51] Corporate Governance - The company appointed a new CEO on June 3, 2019, following the resignation of the previous CEO[80] - The board consists of eight directors, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules[114] - The company has adopted corporate governance practices in line with the listing rules, emphasizing effective internal controls and transparency[109] - The independent non-executive directors represent at least one-third of the board, fulfilling regulatory requirements[114] - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and protect stakeholder interests[109] - The board is responsible for approving and monitoring the overall strategy and policies of the group, focusing on growth and financial performance[115] - The company has purchased liability insurance for its directors and senior management to protect against legal liabilities arising from their duties[116] - The board will regularly review and propose amendments to ensure compliance with the corporate governance code[111] - The company has a strong emphasis on independent judgment from non-executive directors to safeguard the interests of all shareholders[115] - The chairman and CEO roles are held by the same individual, which deviates from corporate governance guidelines but is believed to provide strong leadership[110] Environmental and Social Responsibility - The company is committed to complying with all relevant environmental laws and regulations, ensuring that its operations do not contribute to air pollution[181] - The company emphasizes the importance of stakeholder feedback in shaping its environmental, social, and governance policies[173] - The company is dedicated to sustainable resource management and encourages the sustainable use of water resources[175] - The company generated nitrogen oxides (NOx) emissions of 14.41 kg, sulfur oxides (SOx) emissions of 0.26 kg, and particulate matter (PM) emissions of 1.39 kg from its operations[182] - The company reported greenhouse gas emissions of 19,428 tons of CO2 equivalent (tCO2e) during the reporting period, with an annual emission intensity of 152 tCO2e per million cubic meters, representing a reduction of approximately 15.73% compared to the previous reporting period[183] - The company plans to enhance energy efficiency and reduce consumption at the newly acquired Dongshan shopping mall, aiming to become a green building[179] - The company focuses on continuous improvement in water supply and maintaining strict industry standards to ensure reliable high-quality water for end-users[175] - The company aims to improve the local community's environment surrounding the Dongshan shopping mall and provide appropriate assistance during renovation periods[179] - The company has established a working group to address water supply issues and enhance service quality by stabilizing water pressure in the distribution network[176] Stakeholder Engagement and Communication - The company engages with stakeholders through various channels, including surveys and meetings, to assess significant environmental, social, and governance issues[170] - The company is committed to timely and unbiased financial disclosures to shareholders and stakeholders[156] - The audit committee is responsible for reviewing financial statements before submission to the board, ensuring compliance and risk management[160] - The company emphasizes the importance of financial data completeness and has implemented appropriate accounting policies[156]

Financial Performance - Revenue for the six months ended June 30, 2019, was approximately HKD 116.72 million, a decrease of HKD 3.64 million or 3% compared to HKD 120.36 million for the same period in 2018[5] - Net loss attributable to shareholders for the six months ended June 30, 2019, was approximately HKD 6.16 million, a decrease of HKD 4.97 million compared to HKD 11.13 million for the same period in 2018[5] - Basic and diluted loss per share for the six months ended June 30, 2019, was HKD 0.24, compared to HKD 0.52 for the same period in 2018[5] - Total comprehensive loss for the six months ended June 30, 2019, was HKD 11.19 million, compared to HKD 6.15 million for the same period in 2018[13] - The decrease in net loss was primarily due to reduced operating costs and financial expenses in the water supply business[5] - The group reported a pre-tax loss of HKD 9,193,000 for the six months ended June 30, 2019, compared to a profit of HKD 17,291,000 in the same period of 2018[45] - The company reported a loss attributable to shareholders of HKD 6,161,000 for the six months ended June 30, 2019, compared to a loss of HKD 11,133,000 in the same period of 2018, indicating an improvement of approximately 44.5%[59] - The group incurred a tax expense of HKD 3,516,000 for the six months ended June 30, 2019, down from HKD 7,320,000 in the same period of 2018, reflecting a decrease of approximately 52.0%[58] Assets and Liabilities - Non-current assets as of June 30, 2019, amounted to HKD 1,008.07 million, a decrease from HKD 1,034.75 million as of December 31, 2018[16] - Current assets as of June 30, 2019, totaled HKD 1,172.61 million, significantly higher than HKD 345.60 million as of December 31, 2018[16] - Total liabilities as of June 30, 2019, were HKD 611.39 million, compared to HKD 505.94 million as of December 31, 2018[19] - Net assets as of June 30, 2019, were HKD 1,435.90 million, an increase from HKD 695.06 million as of December 31, 2018[19] - Accounts receivable as of June 30, 2019, were HKD 20,727,000, a decrease from HKD 26,076,000 as of December 31, 2018, representing a decline of approximately 20.5%[68] - The group's investment properties were valued at HKD 46,574,000 as of June 30, 2019, down from HKD 50,775,000 at the beginning of the year, reflecting a decrease of approximately 8.5%[67] - Cash and cash equivalents at the end of the period stood at HKD 1,118,143,000, a substantial rise from HKD 322,126,000 at the end of the previous period[25] Cash Flow - Net cash generated from operating activities was (HKD 23,486,000), a significant decrease compared to HKD 1,780,000 in the same period last year[25] - Net cash used in investing activities was (HKD 11,218,000), an improvement from (HKD 22,242,000) in the previous year[25] - Net cash generated from financing activities increased to HKD 865,455,000 from HKD 35,289,000 year-over-year[25] - The net increase in cash and cash equivalents was HKD 830,751,000, compared to HKD 14,827,000 in the prior period[25] - The impact of foreign exchange rate changes on cash and cash equivalents was (HKD 1,276,000), an improvement from (HKD 3,837,000) in the previous year[25] Business Operations - The company’s main business activities include investment holding, property investment and development, property management, and water supply services[28] - Water supply and related services revenue was HKD 113,996,000, down 14.1% from HKD 132,749,000 year-on-year[40] - Revenue from related services in the water supply business was HKD 22,728,000, a decrease of 17% compared to the same period last year[103] - The property investment and development segment contributed stable revenue and positive cash flow, recording revenue of approximately RMB 859,000 (equivalent to about HKD 993,000), similar to the previous year[103] Shareholder Information - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2019[5] - The company issued a total of 1,586,400,000 new shares at a placement price of HKD 0.23 per share on June 19, 2019[87] - The company also issued 1,805,909,900 new shares through a rights issue at the same price of HKD 0.23 per share[87] - The authorized share capital increased from HKD 50,000,000 to HKD 200,000,000 due to the issuance of new shares[86] - Ms. Zhu Fenglian holds a total of 1,561,140,000 shares, representing 28.32% of the company's issued share capital[161] - The company has not issued any debt securities or bonds as of June 30, 2019[162] Corporate Governance - The company’s financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and have been reviewed by the audit committee[29] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial report for the six months ended June 30, 2019[186] - The interim financial report has not been audited but has been reviewed by the company's auditor according to the relevant standards[186] - The company has complied with all corporate governance code provisions as per the main board listing rules[181] - The board has approved an increase in Mr. Huan Zhensheng's monthly director's remuneration from HKD 25,000 to HKD 50,000 effective June 3, 2019[155] Future Outlook - The company plans to continue focusing on property investment and development, as well as exploring suitable property projects in China and overseas[108] - The company aims to diversify its revenue sources and ensure sustainable growth through fund investment and management business development in Hong Kong and China[108] - The group has not entered into any arrangements to hedge foreign exchange risks, which may impact operational performance due to fluctuations in the HKD and RMB exchange rates[148]

Financial Performance - For the year ended December 31, 2018, the company's revenue was approximately HKD 271.91 million, an increase of HKD 23.37 million or 9% compared to HKD 248.54 million in 2017[5] - The net loss attributable to shareholders for the year was approximately HKD 26.81 million, a decrease of HKD 29.47 million compared to a net profit of HKD 2.66 million in 2017, representing a decline of 1,108%[5] - The basic and diluted loss per share for the year was HKD 1.26, compared to earnings of HKD 0.13 per share in the previous year[5] - Other income and gains decreased by 48% to HKD 19.88 million, primarily due to a reduction in foreign exchange gains[18] - Financial expenses increased by 4% to HKD 28.24 million, mainly due to rising bank loan interest rates[20] - The group's profit tax expense for the fiscal year was HKD 10,621,000, a decrease of 31% compared to the previous fiscal year, primarily due to reduced profits from the water supply business[22] Water Supply Operations - The company recorded a significant increase in water supply volume, reaching 10,640,000 cubic meters, which is over an 8% increase compared to the previous year[11] - Water supply volume increased by 10,640,000 cubic meters, representing a growth of 8.7% compared to the previous year[54] - The company is committed to providing safe and high-quality water while focusing on continuous improvement in water supply and maintaining strict industry standards[163] - The company has expanded its water supply network to address the increasing demand for tap water in the region[164] - The company faced challenges in balancing pressure during the water treatment process and standardizing service quality across different regions[164] Investment and Acquisition Plans - The company plans to acquire commercial properties in prime locations in Guangzhou, China, which is expected to provide stable rental income post-acquisition[12] - The company proposed to acquire the entire issued share capital of the target company for a total cash consideration of RMB 576,000,000 (approximately HKD 673,286,400)[42] - The company plans to raise up to approximately HKD 975.41 million through a rights issue at a subscription price of HKD 0.23 per share[45] - The company plans to acquire commercial properties in China for a total cash consideration of RMB 576,000,000 (approximately HKD 673,286,400) and intends to raise funds through a rights issue and placement[56] Financial Position and Assets - The group's property, plant, and equipment decreased from HKD 503,874,000 as of December 31, 2017, to HKD 493,213,000 as of December 31, 2018, a reduction of HKD 10,661,000[23] - The group's investment properties decreased by HKD 4,176,000 or 8% from HKD 50,775,000 as of December 31, 2017, to HKD 46,599,000 as of December 31, 2018, mainly due to reclassification of certain investment properties[27] - The group's inventory increased from HKD 4,713,000 as of December 31, 2017, to HKD 24,467,000 as of December 31, 2018, an increase of HKD 19,754,000, primarily due to material purchases for water supply and related business projects[29] - The group's cash and bank balances decreased from HKD 311,136,000 as of December 31, 2017, to HKD 288,668,000 as of December 31, 2018, a decrease of HKD 22,468,000, mainly due to the settlement of bank borrowings[33] - The group's bank and other borrowings decreased from HKD 709,852,000 as of December 31, 2017, to HKD 452,179,000 as of December 31, 2018, a reduction of HKD 257,673,000, primarily due to the settlement of bank borrowings[35] - The group's liquidity position as of December 31, 2018, showed net current assets of HKD 166,260,000, with current liabilities including bank borrowings of HKD 6,687,000 and accounts payable of HKD 10,606,000[49] - The group's asset-liability ratio as of December 31, 2018, was 45%, down from 55% in 2017[49] Corporate Governance - The company has adopted corporate governance practices in line with the Main Board Corporate Governance Code, ensuring compliance with all applicable provisions[97] - The board is committed to maintaining high standards of corporate governance to enhance shareholder value and protect the interests of stakeholders[96] - The company has a strong focus on effective internal controls and rigorous disclosure practices to ensure transparency and accountability[96] - The board composition includes independent non-executive directors with extensive experience in various sectors, enhancing governance oversight[86][88] - The company has appointed independent non-executive directors who have received multiple awards for their contributions to corporate governance[83] - The management team has over 21 years of experience in the water supply industry, indicating strong operational expertise[90] - The board regularly reviews corporate governance practices to ensure alignment with the Main Board Corporate Governance Code[98] - The company emphasizes the importance of a well-functioning board and effective internal controls in its governance framework[96] - The independent directors have held significant positions in other listed companies, contributing to their governance experience[86][88] - The board consists of eight directors, with four being executive directors, ensuring compliance with listing rules regarding independent non-executive directors[101] - The board is responsible for approving and monitoring the overall strategy and policies of the group, focusing on growth and financial performance[102] - All independent non-executive directors have confirmed their independence, complying with the relevant listing rules[101] - The company has established a remuneration committee to determine the compensation of executive directors and senior management, considering various factors such as time commitment and responsibilities[120] - The chairman and CEO roles are separated, with Mr. Chen as chairman and Mr. Zhou as CEO, ensuring effective governance[111] - The company encourages continuous professional development for all directors, providing necessary training and resources[110] - The board has maintained a high attendance rate at meetings, with all directors attending at least 75% of board meetings[107] - The company secretary, Mr. Tang, oversees financial and accounting matters, ensuring compliance with regulatory requirements[117] - The board has established a clear process for the appointment and re-election of directors, ensuring shareholder involvement[115] - The company has implemented a code of conduct for employees and directors, promoting ethical behavior and compliance[109] - The Compensation Committee held two meetings during the year ended December 31, 2018, with a 100% attendance rate from all members[121] - The Nomination Committee also held two meetings during the year, with all members achieving a 100% attendance rate[124] - The board adopted a diversity policy, considering factors such as gender, age, cultural background, and professional experience when reviewing board composition[125] - The board is responsible for maintaining effective risk management and internal control systems, with an external independent consultant conducting a review during the year[143] - The company concluded that its risk management and internal control systems are appropriate and effective[143] - The Nomination Committee has established a nomination policy outlining the criteria and procedures for selecting and recommending director candidates[127] - The board's diversity policy includes measurable objectives to achieve diversity among board members[129] - The company is committed to ensuring that independent non-executive directors can dedicate sufficient time to their roles, especially if they serve on multiple boards[141] - The board will disclose the nomination policy and its work in the corporate governance report of the annual report[142] Environmental and Social Responsibility - The company is committed to sustainable water resource utilization as part of its environmental, social, and governance initiatives[161] - Total greenhouse gas emissions during the reporting period amounted to 24,070.08 tons of CO2 equivalent, with an annual emission intensity of 180.30 tons of CO2 equivalent per million cubic meters of water supplied, slightly increasing from the previous reporting period[174] - The company generated a total of 0.04 tons of laboratory waste during the reporting period, which was properly handled by licensed recyclers[177] - The company recycled 275.68 kilograms of paper during the reporting period, reducing CO2 equivalent emissions by 1.32 tons[180] - The company has implemented measures to monitor and reduce gasoline consumption and vehicle mileage, promoting fuel-efficient vehicle options[179] - The company ensures compliance with all relevant water quality standards, including GB5749-2006 and CJ/T206-2005[167] - The company is focused on enhancing governance, employee welfare, and environmental protection to fulfill its social responsibility and achieve sustainable growth[163] - Total energy consumption for the reporting period was 38,330.19 MWh, with a consumption intensity of 287.12 MWh per million cubic meters, slightly increased compared to the previous reporting period[181] - Electricity consumption accounted for 38,009 MWh, with a consumption intensity of 284.71 MWh per million cubic meters[182] - The company collected approximately 138.61 million cubic meters of raw water during the reporting period[183] - The wastewater generated during the reporting period was 9,836.92 tons, which was discharged in compliance with environmental impact assessment regulations[184] - The company implemented energy efficiency measures, including optimizing pump and equipment efficiency and installing variable frequency drives[187] - Water-saving measures included using more efficient methods for sludge discharge and reusing treated backwash water[188] Employee and Talent Management - As of December 31, 2018, the total number of employees was 387, an increase from 366 in the previous year[57] - As of December 31, 2018, the company had a total of 359 full-time employees, with a gender distribution of 33% female and 67% male[193] - The company ensures competitive compensation and benefits to attract and retain talent, complying with applicable labor laws in China and Hong Kong[198] - The company promotes equal opportunities in recruitment, training, and development, ensuring no discrimination based on various factors[200]