Financial Performance - The company's operating revenue for the first half of 2024 was RMB 221,816.6 million, representing a 5.18% increase compared to RMB 210,896.6 million in the same period last year[14]. - Net profit attributable to shareholders for the first half of 2024 was RMB 42,192.8 million, a decrease of 3.64% from RMB 43,784.6 million in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 38,167.8 million, down 4.89% from RMB 40,132.2 million year-on-year[14]. - Basic earnings per share for the reporting period was RMB 0.27, a decrease of 3.57% compared to RMB 0.28 in the same period last year[15]. - Diluted earnings per share also stood at RMB 0.27, reflecting a 3.57% decline year-on-year[15]. - The weighted average return on net assets decreased to 4.58%, down by 0.52 percentage points from 5.10% in the previous year[15]. - Operating revenue increased by 5.18% to RMB 221,816.6 million, driven by higher water treatment service volumes and new project operations[34]. - Net profit for the first half of 2024 was RMB 460,678 thousand, a slight increase from RMB 455,045 thousand in the first half of 2023, representing a growth of 1.4%[149]. - The company reported a total profit of RMB 570,184 thousand for the first half of 2024, compared to RMB 566,694 thousand in the previous year, indicating a growth of 0.9%[149]. Cash Flow and Financial Position - The net cash flow from operating activities decreased significantly by 38.67%, amounting to RMB 43,899.9 million compared to RMB 71,575.3 million in the previous year[14]. - Cash flow from operating activities decreased, primarily due to lower receipts from wastewater treatment service fees compared to the previous year[35]. - Operating cash inflow for the first half of 2024 was CNY 1,655,496 thousand, a decrease of 14.5% compared to CNY 1,936,866 thousand in the same period of 2023[156]. - Net cash flow from operating activities for the first half of 2024 was CNY 438,999 thousand, down 38.7% from CNY 715,753 thousand in the first half of 2023[157]. - Total cash and cash equivalents at the end of the first half of 2024 amounted to CNY 2,595,454 thousand, down from CNY 2,999,928 thousand at the end of the first half of 2023[158]. - The company's current ratio improved to 1.56 from 1.45, reflecting a 7.59% increase in current assets compared to the end of the previous year[138]. - The cash interest coverage ratio decreased significantly to 2.01 from 5.00, representing a 59.80% decline due to reduced operating cash flow[138]. - The company's total liabilities increased to CNY 14,638,056, up from CNY 14,244,893, indicating a growth of 2.76%[142]. - The company's total assets reached CNY 25,047,157, an increase from CNY 24,460,654, marking a growth of 2.39%[142]. Strategic Initiatives and Business Development - The company is focusing on expanding its strategic new businesses, including renewable energy and waste treatment, to complement its core operations[21]. - The market for recycled water utilization is expected to grow significantly, driven by new regulations promoting its use in various sectors[19]. - The company aims to enhance its operational efficiency through the integration of wastewater treatment and pipeline maintenance[19]. - By 2030, the energy-saving and environmental protection industry is projected to reach a scale of approximately RMB 15 trillion, creating further market opportunities[20]. - The company is actively exploring new business areas such as energy storage and hazardous waste treatment to diversify its revenue streams[20]. - Recent government policies are expected to facilitate large-scale equipment upgrades in the water services market, enhancing growth potential[18]. - The company has established a comprehensive business model combining sewage, reclaimed water, sludge, new energy cooling and heating, and photovoltaic power generation[29]. - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency and drive future growth[155]. Research and Development - R&D expenses rose by 79.94% to RMB 2,082.8 million, reflecting increased investment in research and development[34]. - The company obtained 18 authorized patents during the reporting period, including 5 invention patents and 12 utility model patents[25]. - Research and development expenses increased significantly to RMB 177,272 thousand, compared to RMB 118,987 thousand in the first half of 2023, marking a rise of 49.2%[149]. Risk Management and Compliance - The company faces risks related to government credit, as wastewater treatment service fees are primarily sourced from government payments[43]. - Policy changes pose a risk to the company's business model, particularly in the environmental and public utility sectors[44]. - The company emphasizes the importance of enhancing operational management to mitigate risks associated with environmental regulations and compliance[49]. - The company is committed to strengthening comprehensive risk management and improving its risk control capabilities[48]. - The company has implemented a risk identification list and enhancing safety management practices[32]. Corporate Governance and Shareholder Matters - The company held its first extraordinary general meeting of 2024 on January 16, 2024, where new directors were elected, including Mr. Tang Fusheng and Mr. Wang Yongwei[51]. - The annual general meeting for 2023 and the first A and H share class meetings for 2024 are scheduled for June 5, 2024, where 11 proposals, including the annual report, were approved[51]. - The stock option incentive plan involves up to 152 participants, including directors and key personnel, aimed at aligning interests between shareholders and management[57]. - The company is focused on enhancing its governance structure through the stock option incentive plan to motivate key personnel[56]. - The company has adhered to the corporate governance code as per the stock exchange rules throughout the reporting period[95]. Environmental Impact and Compliance - The company operates 54 wastewater treatment projects, with most adhering to the national Class A discharge standards, specifically GB18918-2002[78]. - The company achieved a cumulative reduction of pollutants, including 200,800 tons of COD, 27,700 tons of total nitrogen, 26,800 tons of ammonia nitrogen, and 3,200 tons of total phosphorus, contributing significantly to water environment management[85]. - The company has implemented measures to reduce carbon emissions through new energy cooling and heating services, distributed photovoltaic power generation, and digital transformation projects[86]. - The company conducts annual environmental self-monitoring according to national requirements, with results publicly disclosed on local environmental information monitoring platforms[83]. - The company has developed emergency response plans for sudden environmental incidents, which have been reviewed and filed with local environmental protection bureaus[82]. Shareholder Structure and Equity - The top shareholder, Municipal Investment, holds 715,565,186 shares, representing 45.57% of the total shares[116]. - The second largest shareholder, Hong Kong Central Clearing (Agent), holds 337,846,810 shares, accounting for 21.51%[116]. - The total number of shares held by the top ten shareholders includes significant stakes from various entities, with no shares pledged or frozen for most[116]. - The company has no strategic investors among the top ten shareholders[118]. - The company has a total of 57,642 ordinary shareholders as of June 30, 2024, including 62 H-share shareholders[115]. Financial Reporting and Accounting Policies - The financial report was approved by the board of directors on August 23, 2024[181]. - The company's financial statements comply with the requirements of the Accounting Standards for Business Enterprises, reflecting the financial position as of June 30, 2024[185]. - The accounting period for the company runs from January 1 to December 31, with the current financial report covering the first half of 2024[186]. - The company’s accounting policies are determined based on its operational characteristics, including the measurement of expected credit losses on receivables[184]. - The company has established a continuous operation basis for its financial statements[183].

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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 （股份代號 ： 1065） （於中華人民共和國註冊成立之股份有限公司） 截至2024年6月30日止六個月中期業績公告 §1 重要提示 1.1 天津創業環保集團股份有限公司（「本公司」）董事會（「董事會」）、監事會及 董事（「董事」）、監事（「監事」）及高級管理人員保證2024年中期報告（「中期報 告」）內容的真實性、準確性、完整性，不存在虛假記載、誤導性陳述或重大 遺漏，並承擔個別和連帶的法律責任。 1.2 本公司截至2024年6月30日止六個月的中期財務報告未經審計。 1.3 是否存在被控股股東及其關聯方非經營性佔用資金情況？ 否 1.4 是否存在違反規定決策程序對外提供擔保的情況？ 否 1.5 本公司負責人唐福生先生、主管會計工作負責人聶豔紅女士及會計機構負 責人（會計主管人員）劉濤先生聲明：保證中期報告中財務報告的真實、準 確、完整。 1 §2 本公司基本情況 董事會秘書 香港公司秘書 證券事務代 ...

Financial Performance - The company's operating revenue for Q1 2024 was RMB 108,027.8 million, representing a year-on-year increase of 10.61%[3] - Net profit attributable to shareholders for the same period was RMB 25,159.6 million, reflecting a growth of 21.00% compared to the previous year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 23,496.5 million, up by 23.13% year-on-year[3] - The basic earnings per share for Q1 2024 was RMB 0.16, an increase of 23.24% from the same period last year[3] - Operating profit for Q1 2024 was RMB 301,742 thousand, up 12.1% from RMB 268,945 thousand in Q1 2023[17] - Net profit attributable to shareholders for Q1 2024 was RMB 251,596 thousand, representing a 21.0% increase compared to RMB 207,939 thousand in Q1 2023[18] - Net profit for Q1 2024 reached RMB 145,009 thousand, representing a 34.7% increase compared to RMB 107,626 thousand in Q1 2023[26] Assets and Liabilities - The total assets at the end of the reporting period were RMB 2,465,827.2 million, showing a slight increase of 0.81% from the end of the previous year[3] - The equity attributable to shareholders at the end of the reporting period was RMB 937,377.3 million, up by 2.76% compared to the end of the previous year[3] - The company's total assets amounted to RMB 24,658,272 thousand, an increase from RMB 24,460,654 thousand as of December 31, 2023, reflecting a growth of approximately 0.81%[13] - The company's current assets totaled RMB 6,518,845 thousand, up from RMB 6,235,654 thousand, indicating an increase of about 4.55%[13] - Long-term borrowings increased to RMB 7,859,809 thousand from RMB 7,257,625 thousand, representing a rise of approximately 8.29%[15] - The company's total liabilities decreased slightly to RMB 14,191,329 thousand from RMB 14,244,893 thousand, a reduction of about 0.37%[15] - Total liabilities as of March 31, 2024, were RMB 8,871,934 thousand, an increase of 3.6% from RMB 8,559,259 thousand as of December 31, 2023[23] Cash Flow - The net cash flow from operating activities was negative at RMB -5,396.8 million, with a significant change of 45.23% due to higher operating receipts compared to the same period last year[5] - Cash flow from operating activities for Q1 2024 was RMB 561,326 thousand, compared to RMB 518,235 thousand in Q1 2023[19] - Cash flow from operating activities showed a net outflow of RMB 267,831 thousand in Q1 2024, compared to a net outflow of RMB 376,793 thousand in Q1 2023[27] - Cash flow from investing activities resulted in a net outflow of RMB 78,850 thousand in Q1 2024, compared to a net outflow of RMB 498,275 thousand in Q1 2023[28] - Cash flow from financing activities generated a net inflow of RMB 27,101 thousand in Q1 2024, down from RMB 589,118 thousand in Q1 2023[29] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 59,240[6] - The largest shareholder, Tianjin Municipal Investment Co., Ltd., held 715,565,186 shares, accounting for 45.57% of the total shares[7] Research and Development - Research and development expenses increased to RMB 8,344 thousand in Q1 2024, up from RMB 5,717 thousand in Q1 2023, reflecting a focus on innovation[17] - Research and development expenses increased significantly to RMB 4,169 thousand in Q1 2024, up 147.8% from RMB 1,684 thousand in Q1 2023[25] Operational Changes - The new wastewater treatment service fee price is set to be RMB 2.13 per cubic meter, effective from January 1, 2024, down from the previous price of RMB 2.32 per cubic meter[11] - The company has completed the upgrade of four wastewater treatment plants, which began commercial operation in June 2016, and has been operating under the new discharge standards for over two years[11] - The company is in the process of signing supplementary agreements regarding the adjusted wastewater treatment service fee based on third-party audit results[12] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[17]

Financial Performance - The net profit attributable to the company for 2023 is RMB 865,207,128.31, after deducting the statutory surplus reserve of RMB 64,195,627.55 and adding the undistributed profit at the beginning of the year of RMB 5,075,506,443.79[3] - The actual distributable profit for shareholders in 2023 is RMB 5,650,377,740.31, with a proposed cash dividend of RMB 1.66 per 10 shares, totaling RMB 260,689,402.11, which accounts for 30.13% of the distributable profit[3] - The company has received a standard unqualified audit report from PricewaterhouseCoopers Zhong Tian LLP, affirming the accuracy of the financial statements[3] - The company did not propose any capital reserve conversion to increase share capital for the year 2023, indicating a focus on cash dividends instead[3] - The company's operating revenue for 2023 was RMB 466,508.30 million, an increase of 3.16% compared to RMB 452,216.70 million in 2022[20] - Net profit attributable to shareholders for 2023 was RMB 86,520.70 million, up from RMB 75,125.40 million in 2022, reflecting a growth of 15.17%[20] - The net cash flow from operating activities for 2023 was RMB 99,201.50 million, representing an 8.77% increase from RMB 91,205.10 million in 2022[20] - Total assets at the end of 2023 reached RMB 2,446,065.40 million, a 6.49% increase from RMB 2,296,967.40 million at the end of 2022[20] - The net assets attributable to shareholders at the end of 2023 were RMB 912,217.70 million, up 7.58% from RMB 847,947.30 million at the end of 2022[20] - Basic earnings per share for 2023 were RMB 0.55, compared to RMB 0.51 in 2022, marking an increase of 7.84%[21] Governance and Compliance - The company has confirmed no non-operational fund occupation by controlling shareholders or related parties, ensuring financial integrity[4] - The company has not reported any major risk warnings or violations of decision-making procedures regarding external guarantees, reflecting stable governance practices[4] - The company has established a clear governance framework to ensure accountability and transparency in its operations, aligning with regulatory standards[82] - The board of directors consists of 9 members, with the current term ending on September 8, 2025[85] - The company has revised its governance structure and internal regulations to ensure compliance with regulatory requirements and protect shareholder interests[81] - The company emphasizes the importance of legal compliance and risk management, particularly in relation to government payment obligations and potential defaults on service fees[76] - The company has established a comprehensive risk management framework to identify, analyze, and respond to various policy risks and operational challenges[78] Strategic Development - The company plans to focus on external project development funding arrangements for 2024, indicating ongoing investment in growth[3] - The company remains in a development phase, suggesting potential for future growth and expansion in environmental protection projects[3] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[20] - The company aims to develop a new business model integrating five core services: wastewater, reclaimed water, sewage source heat pumps, sludge, and photovoltaic energy storage[59] - The company is committed to becoming a leading professional service provider in the water treatment and resource utilization sector by the end of the 14th Five-Year Plan[69] - The company will continue to focus on the water industry, expanding through a strategy of "one body and two wings," with water treatment and resource utilization as the core and new energy development and sludge treatment as the wings[69] Environmental Management - The company achieved a cumulative reduction of environmental pollutants, including a reduction of COD by approximately 390,000 tons, total nitrogen by about 53,500 tons, ammonia nitrogen by around 52,500 tons, and total phosphorus by approximately 6,600 tons, contributing significantly to water body environmental management[194] - The company has established emergency response plans for sudden environmental incidents, which have been reviewed and filed with local environmental protection bureaus[197] - The company conducted environmental self-monitoring in accordance with national requirements, with monitoring results publicly disclosed on local environmental information monitoring platforms[198] - The company’s wastewater treatment projects have passed the necessary environmental impact assessments and received approvals from environmental protection departments[196] Shareholder Engagement - The total cash dividends proposed for 2023 are subject to approval at the annual general meeting, highlighting the importance of shareholder engagement[3] - The company’s profit distribution policy must be approved by at least two-thirds of the voting rights at the shareholders' meeting[149] - The company will consider the opinions of shareholders, especially minority shareholders, during the decision-making process for profit distribution[150] - The company has established a mechanism for small and medium shareholders to express their opinions and participate in decision-making processes regarding profit distribution[155] Research and Development - The company completed 47 authorized patents in 2023, including 9 invention patents and 38 utility model patents[40] - R&D expenses increased by 21.87% to RMB 5,306.20 million, reflecting higher investments in research and development[45] - The total R&D investment for the period was RMB 5,306.20 million, representing 1.14% of operating revenue[55] - Research and development investment for 2024 is planned to be no less than 1.25% of annual operating revenue, focusing on new processes and applied technologies in wastewater treatment, sludge treatment, and new energy[72] Operational Efficiency - The company effectively coordinated financing efforts, reducing financing costs and strengthening accounts receivable management during the reporting period[33] - The company has established five regional development platforms to enhance operational efficiency and management effectiveness[31] - The company implemented a new salary performance system aimed at aligning employee compensation with economic performance[30] - The company is committed to enhancing its operational management through standardized practices, staff training, and improved technical control to mitigate production risks[79] Risk Management - The company is facing operational risks due to the need for wastewater treatment plants to upgrade to meet new environmental standards, which may lead to increased operational and renovation costs[75] - The company recognizes the risk of government credit affecting cash flow, as wastewater treatment service fees are primarily sourced from government accounts[73] - The company is actively monitoring changes in the legal environment that could negatively impact its operations and financial stability[76] Corporate Governance - The company has established a performance evaluation mechanism for senior management, linking their annual salary to the completion of personal and overall business performance goals[185] - The company has a shareholding management system that limits the transfer of shares by directors and senior management to 25% of their total holdings annually[83] - The company has implemented measures to strengthen communication with local governments and regulatory bodies to enhance operational efficiency[79] - The company has established a cash dividend policy that prioritizes cash dividends over stock dividends, ensuring a clear and transparent decision-making mechanism[145]

Financial Performance - The company's operating revenue for 2023 was RMB 466,508.30 million, an increase of 3.16% compared to RMB 452,216.70 million in 2022[6]. - Net profit attributable to shareholders for 2023 reached RMB 86,520.70 million, reflecting a growth of 15.17% from RMB 75,125.40 million in the previous year[6]. - The net cash flow from operating activities was RMB 99,201.50 million, up 8.77% from RMB 91,205.10 million in 2022[6]. - Total assets as of the end of 2023 amounted to RMB 2,446,065.40 million, a 6.49% increase from RMB 2,296,967.40 million in 2022[6]. - The company's net assets attributable to shareholders increased by 7.58% to RMB 912,217.70 million from RMB 847,947.30 million in 2022[6]. - Basic earnings per share for 2023 were RMB 0.55, up from RMB 0.51 in 2022, marking an increase of 7.84%[7]. - Total profit reached RMB 110,621.00 million, reflecting a growth of 14.12% year-over-year[26]. - The company achieved operating revenue of RMB 466,508.3 million in 2023, an increase of 3.16% compared to the previous year[26]. - The company reported a decrease in contract liabilities from RMB 513,471 thousand in 2022 to RMB 411,780 thousand in 2023, a reduction of approximately 19.8%[76]. - The proposed cash dividend for 2023 is RMB 1.66 per 10 shares, totaling RMB 260,689,402.11, which represents 30.13% of the distributable profit[66]. Operational Developments - The company successfully expanded its wastewater treatment capacity by 27,000 tons per day and initiated construction on three new wastewater treatment plants during the year[11]. - The company achieved revenue of RMB 147 million from multiple light asset projects developed during the year[11]. - The company has established a market development incentive policy to enhance project sourcing capabilities and successfully launched several strategic projects[11]. - The company is focusing on optimizing operational management and cost control to enhance economic efficiency and development quality[10]. - The company is focusing on optimizing its management system and enhancing operational efficiency by restructuring its organizational framework and establishing five regional development platforms[13]. - The company is committed to advancing its technological capabilities and fostering innovation through a robust information-sharing system[14]. - The company launched 11 new environmental protection products and received 47 authorized patents in 2023[24]. - The company continues to enhance its operational efficiency and digital transformation, completing IoT platform integration for all five regional wastewater treatment plants[24]. Research and Development - R&D expenses increased by 21.87% to RMB 5,306.20 million, reflecting higher investments in research and development[27]. - The total R&D investment amounted to RMB 5,306.20 million, accounting for 1.14% of operating revenue[40]. - The company has 365 R&D personnel, representing 16.22% of the total workforce[41]. - The company plans to invest no less than 1.25% of annual operating revenue in R&D for new technologies in wastewater treatment and renewable energy[57]. Market and Industry Trends - In the renewable energy sector, the national installed capacity for solar power reached 60,949 MW in 2023, a year-on-year increase of 55.2%, while total installed capacity for wind power grew by 20.7% to 44,134 MW[17]. - The "14th Five-Year Plan" period is identified as a critical window for achieving carbon peak goals and developing new energy storage solutions, with a focus on market-oriented operations[18]. - The national energy policy aims to promote the consumption of renewable energy and enhance the credibility of green electricity certificates, which will benefit the solar power industry[17]. - The trend in the sludge and solid waste treatment sector is towards resource utilization, driven by technological innovation and cost reduction[53]. - The photovoltaic power generation sector is expected to continue growing, driven by increasing electricity demand and decreasing costs[52]. Financial Management and Risks - The company is actively working to reduce financing costs and improve accounts receivable management through a comprehensive budget management approach[15]. - The company faces risks related to government credit, as wastewater treatment fees are primarily sourced from government accounts, making them reliant on government financial health[58]. - The company is addressing operational management risks due to the need for upgrades in wastewater treatment plants to meet new standards[60]. - The company emphasizes the importance of legal compliance to mitigate risks associated with contract defaults and government payment delays[61]. - The company aims to enhance its risk management framework to identify and respond to various policy risks effectively[63]. Strategic Focus - The company aims to become a leading enterprise in the domestic water treatment and resource utilization sector by the end of the 14th Five-Year Plan[54]. - The strategic focus includes water treatment and resource utilization as the core, with new energy development and sludge and organic solid waste treatment as the two wings[54]. - The company plans to optimize its national layout by focusing on key regions such as Beijing-Tianjin-Hebei, Yangtze River Basin, Yellow River Basin, and Guangdong-Hong Kong-Macau Greater Bay Area[54]. - The company is committed to strengthening its management mechanism and optimizing its talent system through performance-based reforms[54]. - The company has conducted a mid-term evaluation of its development strategy and established a three-year action plan to implement its "14th Five-Year" strategic plan[55].

Financial Performance - Operating revenue for Q3 2023 was RMB 115,300.4 million, an increase of 4.37% year-on-year[3]. - Net profit attributable to shareholders for Q3 2023 was RMB 22,338.2 million, a decrease of 5.57% year-on-year[3]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 20,234.5 million, down 8.32% year-on-year[3]. - Total revenue for the first three quarters of 2023 was RMB 3,261,970 thousand, slightly up from RMB 3,234,017 thousand in the same period of 2022, indicating a growth of about 0.9%[14]. - Operating profit for the first three quarters of 2023 was RMB 843,695 thousand, compared to RMB 822,496 thousand in 2022, reflecting an increase of approximately 2.6%[14]. - Net profit attributable to shareholders for the first three quarters of 2023 was RMB 661,228 thousand, up from RMB 632,921 thousand in 2022, marking an increase of about 4.5%[15]. - The company reported a net profit of RMB 565,250 thousand for the first three quarters of 2023, representing a 13.1% increase from RMB 499,933 thousand in the same period of 2022[21]. Earnings and Shareholder Metrics - The basic earnings per share for Q3 2023 was RMB 0.14, a decrease of 17.65% year-on-year[3]. - The diluted earnings per share for Q3 2023 was also RMB 0.14, reflecting the same decrease of 17.65% year-on-year[3]. - The company reported a basic earnings per share of RMB 0.42 for the first three quarters of 2023, down from RMB 0.44 in the same period of 2022[15]. - The weighted average return on equity was 2.54%, a decrease of 0.48 percentage points year-on-year[3]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 2,459,767.8 million, an increase of 7.09% compared to the end of the previous year[3]. - Total assets reached RMB 24,597,678 thousand, an increase from RMB 22,969,674 thousand as of December 31, 2022, representing an increase of approximately 7.1%[10]. - Current liabilities totaled RMB 4,051,899 thousand as of September 30, 2023, compared to RMB 3,346,823 thousand at the end of 2022, an increase of about 21.1%[12]. - Long-term borrowings rose to RMB 7,551,381 thousand as of September 30, 2023, up from RMB 7,097,305 thousand at the end of 2022, indicating an increase of approximately 6.4%[13]. - Total liabilities increased to RMB 14,553,233 thousand as of September 30, 2023, compared to RMB 13,467,381 thousand at the end of 2022, reflecting an increase of approximately 8.1%[13]. - The company’s total liabilities amounted to RMB 8,617,943 thousand, an increase from RMB 8,359,816 thousand at the end of 2022[20]. Equity and Shareholder Information - Shareholders' equity attributable to the company was RMB 891,772.7 million, up 5.17% from the previous year[3]. - The company’s total equity reached RMB 10,044,445 thousand as of September 30, 2023, compared to RMB 9,502,293 thousand at the end of 2022, representing an increase of about 5.7%[13]. - The total number of ordinary shareholders at the end of the reporting period was 60,897, with the largest shareholder holding 45.57% of the shares[5]. Cash Flow and Investment Activities - Net cash flow from operating activities was RMB 822,062 thousand, up 17.3% from RMB 701,019 thousand year-on-year[17]. - Operating cash inflow for the first three quarters of 2023 reached RMB 2,018,989 thousand, a significant increase of 64.8% compared to RMB 1,224,926 thousand in the same period of 2022[22]. - Cash inflow from financing activities was RMB 2,120,527 thousand, a decrease of 25.1% from RMB 2,829,359 thousand in the previous year[18]. - Investment activities resulted in a net cash outflow of RMB 1,304,208 thousand, significantly higher than the outflow of RMB 435,302 thousand in the same period last year[17]. - Cash inflow from investment activities was RMB 93,860 thousand, a decline of 34.5% from RMB 143,027 thousand in the first three quarters of 2022[22]. - Net cash flow from investment activities was RMB -610,424 thousand, a significant drop from RMB 21,835 thousand in the same period last year[22]. Research and Development - Research and development expenses increased to RMB 23,725 thousand in 2023 from RMB 13,327 thousand in 2022, representing an increase of approximately 78.4%[14]. - Research and development expenses rose to RMB 7,905 thousand, a substantial increase from RMB 1,700 thousand in the same period of 2022[21]. Cash Management - Total cash and cash equivalents at the end of September 2023 were RMB 3,012,153 thousand, down from RMB 3,230,591 thousand at the end of 2022[18]. - Total cash and cash equivalents at the end of September 2023 stood at RMB 1,685,852 thousand, down from RMB 2,062,111 thousand at the end of September 2022[23]. - The net increase in cash and cash equivalents for the first three quarters of 2023 was RMB -589,420 thousand, contrasting with an increase of RMB 1,082,504 thousand in 2022[23]. - Cash received from operating activities related to other business activities surged to RMB 1,135,682 thousand, compared to RMB 360,029 thousand in the same period last year, marking a 215.5% increase[22]. - Cash paid for purchasing goods and services decreased to RMB 387,236 thousand, down 29.3% from RMB 547,833 thousand in the previous year[22]. - Cash outflow for debt repayment was RMB 1,078,143 thousand, a decrease of 9.9% compared to RMB 1,196,315 thousand in the same period last year[23]. - Cash inflow from financing activities totaled RMB 1,478,495 thousand, down 42.2% from RMB 2,550,341 thousand in the first three quarters of 2022[23].

Financial Performance - The company reported its interim financial results for the six months ending June 30, 2023, which are unaudited[3]. - The company's operating revenue for the first half of 2023 was RMB 210,896.6 million, a decrease of 0.95% compared to RMB 212,928.9 million in the same period last year[16]. - Net profit attributable to shareholders for the same period was RMB 43,784.6 million, representing an increase of 10.47% from RMB 39,636.3 million year-on-year[16]. - The net cash flow from operating activities reached RMB 71,575.3 million, a significant increase of 122.00% compared to RMB 32,240.5 million in the previous year[16]. - The total assets of the company at the end of the reporting period were RMB 2,374,613.7 million, up 3.38% from RMB 2,296,967.4 million at the end of the previous year[16]. - The company's net assets attributable to shareholders increased by 2.53% to RMB 869,434.5 million from RMB 847,947.3 million year-on-year[16]. - Basic earnings per share remained stable at RMB 0.28, with diluted earnings per share also at RMB 0.28, showing no change compared to the previous year[17]. - The company's net profit after deducting non-recurring gains and losses for the first half of 2023 was CNY 40,132.2 million, an increase of 10.89% compared to CNY 36,190.3 million in the same period last year[133]. - The current ratio decreased by 7.89% to 1.75 from 1.90 at the end of the previous year, attributed to an increase in current liabilities[133]. - The cash interest coverage ratio improved significantly to 5.00, up 96.08% from 2.55 in the previous year, indicating a substantial increase in net cash flow from operating activities[133]. Corporate Governance and Compliance - There were no significant risks or non-compliance issues reported during the period[3]. - The company confirmed that there were no instances of non-operational fund occupation by controlling shareholders or related parties[3]. - The board of directors and senior management have guaranteed the accuracy and completeness of the financial report[3]. - The company has not faced any situations where more than half of the directors could not ensure the truthfulness of the interim report[3]. - The company has not disclosed any forward-looking statements or risk warnings in this report[3]. - The interim report includes a section on corporate governance and social responsibility[4]. - The company has established a comprehensive risk management framework to identify, analyze, and respond to various policy risks and operational challenges[50]. - The company is committed to maintaining effective communication with local governments and regulatory bodies to ensure compliance and operational stability[51]. Investment and Capital Management - The company invested RMB 1.42 billion in new projects, adding a wastewater treatment capacity of 200,000 cubic meters per day during the first half of the year[28]. - The company completed a capital increase of RMB 20.91 million for the Linxia wastewater treatment plant PPP project[39]. - The company established a new company for the Karamay South Suburb wastewater treatment project with a registered capital of RMB 113.87 million[40]. - The company completed a capital increase of RMB 16.23 million for the Enshi Dasha Dam wastewater treatment project[41]. - The company plans to establish Tianjin Tianchuang Environmental Technology Co., Ltd. with a registered capital of RMB 20 million to develop light asset business[41]. - The company agreed to acquire the Tianjin Nanjing Sludge Treatment Plant assets for a total consideration of RMB 471.8259 million, with RMB 424.64331 million already paid and RMB 47.18259 million remaining[42]. - The company has allocated RMB 22,925.66 million for repaying interest-bearing debts and supplementing working capital, which has already been fully utilized[111]. - The company is responding to macroeconomic fluctuations and increasing competition in the environmental protection industry through strategic capital management[109]. Research and Development - Research and development expenses rose by 76.72% to RMB 1,157.5 million, reflecting the company's commitment to innovation and technology[32]. - The company established a technology product center to enhance its technical capabilities and improve operational efficiency[29]. - The company is committed to ongoing research and development of new technologies to improve its service offerings and operational efficiency in the environmental protection industry[151]. Environmental and Social Responsibility - The company’s wastewater treatment, water supply, and reclaimed water business has a total scale of approximately 5.678 million cubic meters per day, with PPP model wastewater treatment capacity at about 4.943 million cubic meters per day[23]. - The company has been recognized as one of the "Top Ten Influential Enterprises in China's Water Industry" for 18 consecutive years since 2005 and has been in the "Top 50 Environmental Enterprises in China" for five consecutive years since 2018[27]. - The company’s wastewater treatment projects strictly adhered to relevant discharge standards, with all effluent quality meeting the required benchmarks[76]. - The company has implemented emergency response plans for environmental incidents, which have been reviewed and filed with local environmental authorities[78]. - The company’s self-monitoring environmental plans are in compliance with national requirements, with results publicly disclosed on local environmental monitoring platforms[79]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 61,569, including 60 H-share shareholders[115]. - The top ten shareholders hold a total of 715,565,186 shares, representing 45.57% of the total shares[116]. - The largest shareholder, Municipal Investment, has not changed its shareholding during the reporting period[116]. - The second-largest shareholder, Hong Kong Central Clearing Limited, increased its holdings by 76,000 shares to 337,906,810 shares, representing 21.52%[116]. - The total number of restricted shares at the end of the reporting period is 0, indicating full release of previously restricted shares[114]. - The total number of shares held by the top ten unrestricted shareholders is 1,098,000,000 shares[117]. Debt and Financial Ratios - The company's debt-to-asset ratio was reported at 58.77% as of June 30, 2023[97]. - The total liabilities increased to RMB 13,954,951 thousand as of June 30, 2023, compared to RMB 13,467,381 thousand at the end of 2022, reflecting a growth of 3.6%[136]. - The company's total cash and cash equivalents at the end of June 30, 2023, stood at RMB 2,999,928 thousand, up from RMB 2,036,580 thousand at the end of June 30, 2022, reflecting a growth of 47.38%[143]. - The company reported a loan repayment rate of 100%, maintaining its commitment to debt obligations[133]. Business Expansion and Strategy - The company is focusing on enhancing its operational capabilities and expanding its business in emerging sectors while maintaining its core water services[26]. - The company is exploring new business areas such as environmental restoration and monitoring to capture market opportunities[108]. - The company plans to continue expanding its market presence through strategic partnerships and potential acquisitions in the environmental services sector[151]. - The company has successfully completed the acquisition of a waste management firm, which is projected to contribute an additional RMB 300 million in revenue annually[160]. Stock Options and Incentives - The company established a stock option incentive plan to align the interests of shareholders and management for long-term development[57]. - The total number of stock options granted under the equity incentive plan is 14,270,000, representing approximately 0.91% of the total issued share capital of 1,570,418,085 shares as of the report date[62]. - The first exercise period for 140 incentive recipients has been met, allowing for the exercise of 3,334,792 stock options, which represents 1/3 of the total granted options[66]. - The exercise price for the stock options was set at RMB 6.98 per share, with adjustments made to RMB 6.72 and RMB 6.58 per share following profit distribution plans in 2020, 2021, and 2022[67][68].

Financial Performance - For the six months ended June 30, 2023, the company's operating revenue was RMB 210,896.6 million, a decrease of 0.95% compared to RMB 212,928.9 million in the same period last year[6]. - The net profit attributable to shareholders for the same period was RMB 43,784.6 million, representing an increase of 10.47% from RMB 39,636.3 million year-on-year[6]. - The net cash flow from operating activities surged by 122.00%, reaching RMB 71,575.3 million compared to RMB 32,240.5 million in the previous year[6]. - Basic earnings per share remained stable at RMB 0.28, unchanged from the previous year[7]. - The weighted average return on net assets was 5.10%, a decrease of 0.39 percentage points compared to 5.49% in the same period last year[7]. - The company reported non-recurring gains and losses totaling RMB 3,652.4 million after tax, with government subsidies contributing RMB 3,969.1 million[8]. Shareholder Information - The total number of common shareholders reached 61,569 as of June 30, 2023, including 60 H-share shareholders[14]. - The largest shareholder, Tianjin Municipal Investment Co., Ltd., holds 715,565,186 shares, representing 45.57% of total shares[15]. - Hong Kong Central Clearing Limited is the second-largest shareholder with 337,906,810 shares, accounting for 21.52%[15]. - The company reported no new restricted shares during the reporting period, maintaining a total of 143,189,655 restricted shares[13]. - The company has not disclosed any impacts on earnings per share or net assets per share due to share changes[11]. - The company’s private placement was fully subscribed by existing shareholders, indicating strong support from major investors[12]. Business Operations and Strategy - The company is positioned to benefit from the national water network construction plan, which aims to establish a comprehensive national water network by 2035, creating a potential growth market for water environmental enterprises[19]. - The light asset business model is gaining attention, allowing for the separation of asset ownership and operational rights, which could enhance revenue and profit margins amid increasing market competition[20]. - The company has not reported any new strategies or significant market expansions during the reporting period[11]. - The company is restructuring its market expansion strategy to align with its strategic positioning and future business planning[26]. Environmental and Regulatory Compliance - The Ministry of Ecology and Environment has revised regulations for voluntary greenhouse gas emission trading, establishing a framework for orderly market operations[21]. - The hazardous waste management plan aims to enhance ecological risk prevention and treatment capabilities by 2025, providing a foundation for hazardous waste disposal[21]. - The company emphasizes the importance of maintaining smooth communication with local governments and regulatory bodies to enhance operational stability and environmental performance[49]. Research and Development - The company reported a significant increase in R&D expenses, which rose by 76.72% to RMB 1,157.5 million due to increased investment in personnel and technology development[31]. - The company has registered 20 authorized patents and received three awards for low-carbon application scenarios during the reporting period[27]. - The company is focusing on digital and intelligent operational systems to promote research projects aimed at reducing pollution and carbon emissions[27]. Asset and Investment Management - The total assets at the end of the reporting period were RMB 2,374,613.7 million, reflecting a growth of 3.38% from RMB 2,296,967.4 million at the end of the previous year[5]. - The net assets attributable to shareholders increased by 2.53%, amounting to RMB 869,434.5 million compared to RMB 847,947.3 million at the end of the previous year[5]. - The company acquired assets from the Tianjin sludge plant, contributing to a 47.23% increase in fixed assets to RMB 134,174.0 million[33]. - The company completed a capital increase of RMB 2,091 million for the Linxia City Chuangye Water Co., Ltd. for the expansion of a wastewater treatment project[36]. Risks and Challenges - The company faces risks related to government credit, as the funding for sewage treatment services primarily comes from government payments[44]. - The company is exposed to operational management risks due to the need for sewage treatment plants to upgrade to meet new environmental standards[46]. - The company has established a comprehensive risk management system to identify, analyze, and respond to various policy risks, ensuring dynamic management and effective control of risks[48]. Financial Position - The total liabilities increased to RMB 13,954,951 thousand as of June 30, 2023, compared to RMB 13,467,381 thousand at the end of 2022, indicating a rise of about 3.62%[53]. - The company's cash and cash equivalents were RMB 3,045,762 thousand as of June 30, 2023, down from RMB 3,252,060 thousand at the end of 2022, a decrease of approximately 6.36%[51]. - Total accounts receivable as of June 30, 2023, is RMB 3,279,064 thousand, up 10.8% from RMB 2,959,595 thousand at the end of 2022[69]. - Total accounts payable as of June 30, 2023, is RMB 609,856 thousand, an increase of 19.3% from RMB 511,159 thousand at the end of 2022[70].

Financial Performance - The company's operating revenue for Q1 2023 was RMB 97,663.50 million, a decrease of 8.86% compared to the same period last year[3]. - Net profit attributable to shareholders was RMB 20,793.90 million, representing an increase of 6.42% year-on-year[3]. - Basic and diluted earnings per share were both RMB 0.13, down 3.65% from the same period last year[3]. - Total operating revenue for Q1 2023 was RMB 976,635 thousand, a decrease of 8.8% compared to RMB 1,071,552 thousand in Q1 2022[19]. - Net profit for Q1 2023 reached RMB 212,162 thousand, an increase of 5.8% from RMB 201,587 thousand in Q1 2022[20]. - Operating profit for Q1 2023 was RMB 268,945 thousand, up 3.4% from RMB 260,744 thousand in Q1 2022[20]. - The company reported a total profit for Q1 2023 of RMB 271,851 thousand, an increase of 4.0% from RMB 260,025 thousand in Q1 2022[20]. - Gross profit for Q1 2023 was RMB 184,624,000, resulting in a gross margin of 47.7%, up from 44.5% in Q1 2022[27]. - Operating revenue for Q1 2023 was RMB 386,757,000, an increase of 5.6% compared to RMB 366,057,000 in Q1 2022[27]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at RMB -9,853.00 million, a decline of 146.40% compared to the previous year[3][5]. - Cash flow from operating activities in Q1 2023 was negative RMB 98,530 thousand, compared to positive RMB 212,355 thousand in Q1 2022[21]. - The company reported a decrease in cash inflow from operating activities, totaling RMB 565,620 thousand in Q1 2023, compared to RMB 916,731 thousand in Q1 2022[21]. - The company reported a net cash decrease of 70,137 thousand RMB in Q1 2023, compared to a decrease of 67,494 thousand RMB in Q1 2022, indicating ongoing cash management challenges[22]. - The company's cash and cash equivalents stood at 3,181,923 thousand RMB as of March 31, 2023, slightly down from 3,252,060 thousand RMB as of December 31, 2022[12]. - The company's cash and cash equivalents decreased to 3,118,207 thousand RMB at the end of Q1 2023, down from 3,188,344 thousand RMB at the beginning of the year[22]. - Total cash and cash equivalents at the end of Q1 2023 amounted to RMB 1,989,322,000, up from RMB 982,818,000 at the end of Q1 2022[30]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 2,366,951.10 million, an increase of 3.05% from the end of the previous year[3]. - Total liabilities increased to 13,925,555 thousand RMB as of March 31, 2023, from 13,467,381 thousand RMB at the end of 2022, reflecting a rise of approximately 3.4%[15]. - The total equity of the company increased to 7,070,217 thousand RMB as of March 31, 2023, from 6,962,591 thousand RMB at the end of 2022, indicating a positive trend in shareholder value[26]. - The total liabilities of the company increased to 8,899,357 thousand RMB as of March 31, 2023, from 8,359,816 thousand RMB at the end of 2022, reflecting a rise in both current and non-current liabilities[25]. - Current liabilities increased to 2,219,338 thousand RMB as of March 31, 2023, compared to 1,830,156 thousand RMB at the end of 2022, indicating a rise in short-term obligations[25]. Shareholder Information - The top shareholder, Tianjin Municipal Investment Co., Ltd., held 715,565,186 shares, accounting for 45.57% of total shares[6]. - The total number of shareholders at the end of the reporting period was 62,013[6]. - Shareholders' equity attributable to the company was RMB 868,740.90 million, up 2.45% from the previous year[3]. Research and Development - Research and development expenses increased to RMB 5,717 thousand in Q1 2023, a significant rise from RMB 2,375 thousand in Q1 2022[19]. - Research and development expenses increased significantly to RMB 1,684,000 in Q1 2023, compared to RMB 428,000 in Q1 2022, reflecting a focus on innovation[27]. Investment Activities - In Q1 2023, the net cash flow from investment activities was -588,407 thousand RMB, compared to -217,429 thousand RMB in Q1 2022, indicating a significant increase in cash outflows for investments[22]. - The company reported an increase in investment income to RMB 5,714,000 in Q1 2023, compared to RMB 3,093,000 in Q1 2022[27]. Financial Ratios - The company had a weighted average return on equity of 2.42%, a decrease of 0.29 percentage points year-on-year[3].

Financial Performance - The net profit attributable to the company for 2022 was RMB 751,254,173.95, after deducting the statutory surplus reserve of RMB 45,053,105.75[5] - The actual distributable profit for shareholders in 2022 amounted to RMB 5,075,506,443.79, with a proposed cash dividend of RMB 1.44 per 10 shares, totaling RMB 226,140,204.24, representing 30.10% of the distributable profit[5] - The company's operating revenue for 2022 was RMB 452,216.70 million, a slight decrease of 0.30% compared to RMB 453,557.90 million in 2021[21] - Net profit attributable to shareholders for 2022 was RMB 75,125.40 million, representing an increase of 8.38% from RMB 69,318.90 million in 2021[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 66,366.20 million, up 8.16% from RMB 61,359.80 million in 2021[21] - The total assets at the end of 2022 were RMB 2,296,967.40 million, an increase of 9.04% from RMB 2,106,529.20 million at the end of 2021[21] - The net assets attributable to shareholders at the end of 2022 were RMB 847,947.30 million, reflecting a growth of 19.09% from RMB 712,019.80 million at the end of 2021[21] - Basic earnings per share for 2022 were RMB 0.51, an increase of 4.08% compared to RMB 0.49 in 2021[22] - The weighted average return on net assets for 2022 was 9.88%, a slight decrease from 10.11% in 2021[22] - Total profit reached RMB 96,929.8 million, reflecting an increase of 8.17% year-on-year[39] Audit and Compliance - The company received a standard unqualified audit report from PwC Zhongtian, ensuring the accuracy and completeness of the financial statements[5] - The board of directors and senior management confirmed the authenticity and completeness of the annual report, taking legal responsibility for its content[5] - The company has established a governance structure that complies with Chinese laws and regulations, ensuring shareholder rights and effective decision-making processes[79] - The independent non-executive directors have mechanisms in place to ensure their independence, including regular communication and access to external professional advice[101] - The internal control audit report issued by PwC confirmed the effectiveness of the company's financial reporting internal controls[188] Corporate Governance - The company has established a comprehensive corporate governance structure, ensuring compliance with relevant laws and regulations[93] - The board of directors has implemented various committees to support scientific decision-making and monitor compliance with legal and regulatory requirements[80] - The company emphasizes the importance of corporate governance in driving long-term value and sustainability[109] - The board's diversity policy has been reviewed and deemed effective, aligning with the company's current status and future development plans[92] - The company has established a dedicated investor relations management system to facilitate communication and provide comprehensive information to shareholders and potential investors[98] Environmental and Social Responsibility - The company is committed to environmental and social responsibilities as part of its operational strategy[7] - The company has implemented measures that resulted in a reduction of 17,518 tons of CO2 equivalent emissions through its new energy cooling and heating business and distributed photovoltaic power generation projects[199] - All wastewater treatment projects have passed environmental impact assessments and received approvals from environmental protection departments[194] - The company has disclosed its social responsibility report, with further details available on the Shanghai Stock Exchange website[200] Strategic Initiatives and Future Plans - The company plans to focus on external project development in 2023, indicating ongoing investment in growth despite being in a development phase[5] - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic initiatives[21] - The company plans to enhance control over subsidiaries by restructuring the ownership of subsidiaries, with a transfer price of RMB 32,634.83 million for the shares of two companies[61] - The company aims to become a leading professional service provider in water treatment and resource utilization by the end of the 14th Five-Year Plan[67] - The company plans to process no less than 157.23 million cubic meters of wastewater in 2023, with expected changes in service fee revenue and costs not exceeding 20%[69] Research and Development - Research and development expenses surged by 137.33% to RMB 4,353.9 million, indicating increased investment in innovation[40] - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing operational efficiency[117] - Total R&D investment amounted to RMB 5,418.45 million, representing 1.20% of total revenue, with 21.95% of R&D costs capitalized[55] Risk Management - The company identifies risks related to government credit, as wastewater treatment service fees are primarily sourced from government accounts, making them reliant on government financial health[71] - The company emphasizes the importance of risk management due to potential policy changes affecting pricing and operational agreements, particularly in hazardous waste management[72] - The company is committed to enhancing its comprehensive risk management framework to identify, analyze, and respond to various policy risks, ensuring dynamic management and effective control[75] Employee and Management Structure - The total number of employees in the company and its major subsidiaries is 2,265, with 473 in the company and 1,792 in subsidiaries[143] - The company has established a performance-oriented compensation management system, with annual total compensation for employees consisting of basic salary, performance salary, benefits, and other compensation[144] - The management team has a strong educational background, with several members holding advanced degrees in business and finance[110] Shareholder Engagement and Dividend Policy - The company prioritizes cash dividends, distributing no less than 20% of the distributable profit attributable to the parent company each year, with a cumulative distribution of at least 30% over three years[149] - The company has a clear cash dividend policy that emphasizes transparency and quality of information disclosure[148] - The company proposed a cash dividend of 1.44 CNY per share for 2022, totaling 22,614 million CNY, representing 30.10% of the net profit attributable to ordinary shareholders[161]