Overview - The increasing scale of agricultural production in China has led to a continuous rise in straw yield, with the straw treatment market becoming increasingly important due to strict regulations against traditional burning methods that cause air pollution [1][11] - The straw treatment market in China is projected to reach a market size of 60 billion yuan in 2024, with a year-on-year growth of 9.1% [1][11] Market Policies - The Chinese government has issued a series of policies to promote straw comprehensive utilization, including the "Air Quality Improvement Action Plan" and various guidelines aimed at enhancing the efficiency of straw utilization and encouraging enterprise participation [6][7] - Policies emphasize the importance of establishing a standardized and systematic straw collection and transportation service to improve the overall efficiency of straw utilization [7] Industry Chain - The straw treatment industry chain consists of upstream activities such as straw collection and transportation, midstream processing methods including fertilizer, feed, energy, raw material, and substrate processing, and downstream applications in agriculture, livestock feeding, and energy production [8][9] - In 2024, the theoretical resource amount of straw in China is estimated to be 994 million tons, with significant contributions from rice straw (222 million tons), wheat straw (175 million tons), and corn stalks (341 million tons) [9] Competitive Landscape - The straw treatment industry in China is characterized by a fragmented market with numerous participants, primarily small and medium-sized enterprises [13] - Key players in the industry include Guoneng Bioenergy Group, Wanhua Ecological Industry Group, Jinan Shengquan Group, and Changqing Group, among others [13][14] Development Trends - The straw treatment industry is expected to extend upstream to include straw collection and transportation equipment manufacturing, as well as related technology research and development [20] - There is a focus on forming straw treatment industry clusters in regions rich in straw resources to optimize resource utilization and enhance regional competitiveness through collaboration and innovation [20]

Financial Performance - Revenue for 2024 decreased by 6% to HK$6,976,892, compared to HK$7,416,973 in 2023[14] - EBITDA for 2024 was HK$994,147, down 32% from HK$1,453,509 in 2023[14] - Loss attributable to equity shareholders increased by 38% to HK$415,382, compared to HK$301,711 in 2023[14] - Return on shareholders' equity decreased to -4.00% from -2.60%, a decline of 1.40 percentage points[14] - Basic loss per share rose by 38% to HK(20.10) cents from HK(14.60) cents in 2023[14] - Total assets decreased by 9% to HK$36,331,601 from HK$39,757,424 in 2023[14] - Total liabilities decreased by 10% to HK$24,669,301 from HK$27,401,085 in 2023[14] - Equity attributable to equity shareholders decreased by 15% to HK$9,609,839 from HK$11,271,227 in 2023[14] - Cash and bank balances decreased by 30% to HK$1,673,716 from HK$2,378,783 in 2023[14] Operational Highlights - Power generation volume increased by 14%, waste treatment volume rose by 22%, and heat supply increased by 700,000 tonnes[48] - The Group achieved a 14% increase in electricity generation, a 22% increase in waste disposal, and an additional 700,000 tons of heating supply during the year[49] - The Group secured 14 new premium projects and signed 1 supplementary agreement for county-wide solar power, marking strategic breakthroughs in Guangdong and Yunnan[50][52] - The Group's recovery ratio for trade receivables improved by 6 percentage points compared to 2023, enhancing financial stability[54][56] - The Group completed over 3,000 hazard rectifications, achieving a notable improvement in safety management[54][56] Financing and Capital Structure - The company successfully issued three tranches of panda bonds at the lowest interest rate for similar bonds during the same period, indicating improved financing conditions[48] - The company issued RMB1 billion in green medium-term notes in May and July 2024, enhancing its capital structure[23][24] - The average financing interest rate for the Group's panda bonds was significantly reduced, achieving new lows for similar bonds during the year[49] - The Group completed the issuance of the 2024 first tranche green medium-term note for a principal amount of RMB1 billion at a coupon rate of 2.34% per annum[90] - In July 2024, the Group issued the 2024 second tranche medium-term note for RMB1 billion with a maturity period of 5 years at a coupon rate of 2.24% per annum[93] - In September 2024, the Group issued the 2024 third tranche medium-term note for RMB1 billion with a fixed coupon rate of 2.43% per annum for the initial three interest-bearing years[94] Environmental and Sustainability Initiatives - The company received multiple awards for ESG performance, including the "Outstanding ESG Environmental Performance Award" and "Outstanding ESG Corporate Governance Performance Award"[41] - The Rooftop Solar Power Project at South Seas Centre commenced grid-connected power generation, marking a significant milestone in renewable energy initiatives[21] - The Group actively engaged in project development in Hong Kong, including the rooftop solar power project at South Seas Centre, which commenced grid-connected power generation[73] - The Group's "Integrated Technology for SCR Denitration under Medium-to-high Temperature for Biomass Boiler" was rated as "internationally advanced" and applied in multiple biomass boilers[79] - The Group completed zero-carbon industrial park projects with an aggregate capacity of 68.66 MW involving total investment of approximately RMB 216 million[73] Risk Management and Compliance - The Group has adopted a comprehensive risk management methodology, focusing on key management and control risks, and has revised its Risk Factors Checklist based on assessment results during the year[193][195] - Key risks identified include trade receivables, strategic transformation, market competition, policy changes, and climate change, with a focus on developing contingency plans for extreme weather events[197] - The Group's risk management regime integrates ESG risks into its operations, ensuring compliance and addressing potential impacts on corporate goals[197] - The Group emphasizes the importance of ESG-related risks, integrating them into the primary risk management framework[199] Human Resources and Organizational Structure - The Group emphasizes talent as the core driving force behind enterprise development, implementing strategies for both external recruitment and internal cultivation to strengthen its talent team[188][190] - The total staff cost reflects the Group's commitment to compensating employees based on qualifications, experience, job nature, and performance, alongside providing additional benefits such as medical insurance[192][194] - The Group has established a clear organizational structure of "1 headquarters + 2 centers + 2 companies" to optimize internal management and enhance operational efficiency[186] Market and Economic Outlook - The Chinese government is expected to implement proactive macro-economic policies to stabilize the economy and promote green development in 2025[146] - The Group aims to optimize asset allocation and expand into new markets to improve operating results[150] - The Group is focusing on technological innovation to drive asset-light businesses, including green power trade and ecological green products, in response to the national "Dual Carbon" strategy[155]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 6,976,892,000, a decrease of 6% compared to HKD 7,416,973,000 in 2023[4] - EBITDA for the year was HKD 994,147,000, down 32% from HKD 1,453,509,000 in the previous year[4] - Loss attributable to equity shareholders was HKD 415,382,000, an increase of 38% from HKD 301,711,000 in 2023[4] - No final dividend was declared, and the total dividend per share for the year was HKD 0.014, a decrease of 44% from HKD 0.025 in 2023[4] - Total comprehensive loss for the year amounted to HKD 1,724,831,000, compared to HKD 1,067,423,000 in 2023[6] - Basic and diluted loss per share was HKD 20.10, compared to HKD 14.60 in the previous year[5] - The company reported a significant loss of HKD 679,179,000 before tax in 2024, compared to a loss of HKD 339,288,000 in 2023[21] - The company reported a pre-tax loss of HKD 415,382,000 for the year, compared to a loss of HKD 301,711,000 in 2023[39] Assets and Liabilities - Non-current assets decreased to HKD 23,414,866,000 from HKD 25,274,027,000 in the previous year[8] - Current assets decreased to HKD 12,916,735,000 from HKD 14,483,397,000 in 2023[8] - Total liabilities decreased to HKD 14,371,273,000 from HKD 14,457,396,000 in the previous year[9] - The net assets attributable to equity shareholders decreased to HKD 9,609,839,000 from HKD 11,271,227,000 in 2023[9] - The total assets for the group decreased from HKD 39,757,424,000 in 2023 to HKD 36,331,601,000 in 2024, reflecting a decline of approximately 6.1%[23] - The total liabilities for the group decreased from HKD 27,401,085,000 in 2023 to HKD 24,669,301,000 in 2024, indicating a reduction of about 9.0%[23] - The net assets were approximately HKD 11,662,300,000, down 10.6% from HKD 12,356,339,000 at the end of 2023, with the net asset value per share decreasing by 15% to HKD 4.65[105] - The debt-to-asset ratio improved to 67.90%, a decrease of 1.02 percentage points from 68.92% at the end of 2023[105] Revenue Breakdown - The total revenue from external customers for the biomass comprehensive utilization project was HKD 5,482,377,000 in 2024, a decrease of 5.2% from HKD 5,783,557,000 in 2023[21] - Revenue from mainland China was HKD 6,960,082,000 in 2024, down from HKD 7,402,205,000 in 2023, representing a decline of 6.0%[25] - The total revenue from the photovoltaic power generation project was HKD 203,182,000 in 2024, slightly down from HKD 209,946,000 in 2023[21] - Operating service revenue from biomass comprehensive utilization projects was HKD 4,926,861,000, up 2.1% from HKD 4,826,455,000 in 2023[28] - Revenue from hazardous waste and solid waste disposal project operations was HKD 1,136,263,000, slightly increasing from HKD 1,132,949,000 in 2023[28] - Total revenue from biomass comprehensive utilization, hazardous waste and solid waste disposal, environmental restoration, and photovoltaic and wind power segments reached approximately HKD 6,976,892,000, with construction service revenue decreasing by 65% to HKD 230,749,000[77] Expenses and Financial Management - The company’s financial expenses decreased from HKD 824,825,000 in 2023 to HKD 769,793,000 in 2024, a reduction of approximately 6.7%[21] - The company’s total unallocated corporate and enterprise expenses decreased significantly from HKD 215,573,000 in 2023 to HKD 26,108,000 in 2024[21] - The company recorded impairment losses on intangible assets, property, plant and equipment, goodwill, and right-of-use assets totaling HKD 1,175,000,000, compared to HKD 656,000,000 in the previous year[68] - The company has a cash and bank balance of approximately HKD 1,673,716,000, with unused bank loan facilities amounting to HKD 6,831,718,000, totaling available cash and unused bank loan facilities of approximately HKD 8,505,434,000[67] Corporate Governance and Risk Management - The company emphasizes the importance of effective risk management in achieving strategic goals and sustainable growth, continuously refining its risk management system[116] - Major risks identified include accounts receivable, strategic transformation, market competition, policy changes, and environmental compliance, with a focus on climate change and cybersecurity risks[118] - The company has integrated ESG risks into its risk management framework, addressing climate change and compliance with national carbon reduction policies[118] - The board emphasizes the importance of maintaining robust corporate governance to enhance shareholder value and accountability, integrating governance, risk management, and sustainability into operations[130] - The board has adopted the Corporate Governance Code and has complied with all applicable provisions, except for the absence of the chairman at the annual general meeting due to business commitments[130] Environmental and Operational Initiatives - The group has implemented 144 environmental projects with a total investment of approximately RMB 31.014 billion and has undertaken 67 environmental restoration projects with a total contract value of approximately RMB 1.727 billion[57] - The group achieved a new photovoltaic installed capacity of 56.46 MW and a new energy storage capacity of 12.2 MW/24.4 MWh, along with a new design steam supply capacity of approximately 450,000 tons per year[57] - The group completed 17 projects during the reviewed year and currently has 23 projects under construction or execution, including 1 biomass comprehensive utilization project and 17 environmental restoration projects[60] - The group is focusing on "clean energy" and "zero-carbon park" directions, continuously analyzing and planning according to policy guidance[58] - The group plans to strengthen its existing projects in hazardous waste management and explore low-risk resource transformation projects[103] - The group is committed to accelerating green power trading and environmental restoration projects as part of its light asset business strategy[104] Employee and Operational Metrics - As of December 31, 2024, the company employed approximately 3,400 staff in Hong Kong and mainland China, with total employee costs amounting to HKD 691,749,000, an increase from HKD 664,774,000 in the previous year[115] - The company processed approximately 7,686,013 tons of biomass raw materials and 4,155,530 tons of municipal waste, with the latter increasing by 8% compared to 2023[83] - The steam supply volume increased by 32% to approximately 3,180,613 tons compared to 2023[84] - The hazardous waste and solid waste disposal projects processed approximately 453,748 tons of waste, a 26% increase from 360,922 tons in 2023[89]

Financial Performance - Revenue for the first half of 2024 was HK$3,505,577, a decrease of 8% compared to HK$3,819,944 in the same period of 2023[6]. - EBITDA for the first half of 2024 was HK$1,100,415, down 13% from HK$1,263,506 in the first half of 2023[6]. - Profit attributable to equity shareholders decreased by 45% to HK$143,925 from HK$263,862 in the same period last year[6]. - Return on shareholders' equity for the first half of 2024 was 1.27%, a decline of 0.87 percentage points from 2.14% in the first half of 2023[6]. - Basic earnings per share dropped by 45% to 6.97 HK cents compared to 12.77 HK cents in the first half of 2023[6]. - Revenue from construction services was approximately HK$178,507, representing a 61% decrease compared to HK$463,148 for the same period last year[29]. - Revenue from operation services was approximately HK$3,158,989, reflecting a 1% decrease compared to HK$3,176,986 for the same period last year[29]. - Profit before tax decreased to HK$207,087,000 from HK$382,401,000 in 2023, representing a decline of 45.8%[105]. - Profit for the period attributable to equity shareholders was HK$136,718,000, down 49.5% from HK$271,173,000 in 2023[106]. Assets and Liabilities - Total assets as of June 30, 2024, were HK$38,891,411, a decrease of 2% from HK$39,757,424 at the end of 2023[6]. - Total liabilities were HK$26,396,711, down 4% from HK$27,401,085 at the end of 2023[6]. - The Group's total assets as of June 30, 2024, were HK$1,772,310,000, a decrease from HK$1,983,941,000 as of December 31, 2023[127]. - The total liabilities of the Group increased to HK$10,601,086,000 as of June 30, 2024, compared to HK$10,370,491,000 as of December 31, 2023[127]. - The total current liabilities decreased to HK$10,225,627,000 from HK$12,943,689,000, representing a reduction of about 20.9%[110]. - The total net book value of assets pledged in connection with secured bank loans was HK$17,373,310,000 as of June 30, 2024[177]. Cash Flow and Financing - Cash and bank balances increased by 1% to HK$2,041,015 from HK$2,378,783 at the end of 2023[6]. - The total amount of bank loan facilities was HK$23,567,189,000, with HK$7,229,659,000 unutilized[26]. - Net cash flows generated from operating activities amounted to HK$1,001,916, a significant increase from a cash outflow of HK$141,694 in 2023[113]. - Net cash flows used in investing activities were HK$331,000, a decrease from HK$954,326 in 2023, indicating improved cash management[114]. - The utilized amount of secured bank financing as of June 30, 2024, was HK$8,232,388,000, down from HK$8,773,695,000 as of December 31, 2023[178]. Operational Highlights - The company is focusing on innovative development with a strategy centered on "Zero-carbon Industry Park + Virtual Power Plant"[4]. - The management emphasized the importance of leveraging inherent business characteristics to seize new opportunities in the green and low-carbon development trend[9]. - As of June 30, 2024, the Group had 144 environmental protection investment projects with a total investment of approximately RMB30.954 billion and 60 asset-light projects with a total contract amount of approximately RMB1.696 billion[11][13]. - The Group had 28 projects under construction or implementation as of June 30, 2024, including 1 integrated biomass utilization project and 16 environmental remediation projects[14][16]. - The Group completed the construction and commenced operation of 7 projects during the review period, including 3 environmental remediation projects[14][16]. Environmental and Sustainability Initiatives - The Group is focused on optimizing biomass fuel collection, transportation, and storage systems to improve profitability[39]. - The Group's hazardous and solid waste treatment business implemented measures to control service costs effectively in response to austere operating conditions[17]. - The Group's environmental remediation business includes ecological restoration of landfills and treatment of river and lake sediments[46]. - The Group is exploring the potential of general industrial solid waste electricity and heat cogeneration business[42]. - The Group aims to enhance technological R&D and innovation to adapt to market changes and seize new development opportunities[56]. Corporate Governance and Management - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ended June 30, 2024, except for one deviation regarding the chairman's attendance at the annual general meeting[93]. - The company established a Sustainability Committee to supervise management effectiveness in sustainability matters, with three working groups focusing on operation management, employment and investment, and compliance and risk[96]. - The Management Committee holds monthly meetings to discuss investment proposals, key personnel matters, project schedules, and budget executions, actively implementing strategies issued by the Board[94]. - The company has actively reinforced its internal control and risk management through a set of rules and regulations[94]. - The Nomination Committee reviewed the structure, size, and composition of the Board, including the skills and experience of each Director, in accordance with the Board Diversity Policy[100].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 3,505,577,000, a decrease of 8% compared to HKD 3,819,944,000 for the same period in 2023[1] - EBITDA for the same period was HKD 1,100,415,000, down 13% from HKD 1,263,506,000 year-on-year[1] - Profit attributable to equity shareholders was HKD 143,925,000, representing a 45% decrease from HKD 263,862,000 in the previous year[1] - Interim dividend declared was HKD 0.014 per share, down from HKD 0.025 per share in 2023[1] - Gross profit for the period was HKD 681,102,000, compared to HKD 957,189,000 in the same period last year[3] - The company reported a pre-tax profit of HKD 207,087,000, down from HKD 382,401,000 in the previous year[3] - Total comprehensive income for the period was HKD 138,361,000, compared to a loss of HKD 113,572,000 in the same period last year[4] - Total revenue for the six months ended June 30, 2024, was HKD 3,505,577,000, a decrease of 8.2% from HKD 3,819,944,000 in the same period of 2023[15] - EBITDA for the six months ended June 30, 2024, was HKD 1,094,721,000, a decrease of 17.4% from HKD 1,325,600,000 in 2023[15] - Financial expenses totaled HKD 410,491,000, an increase from HKD 398,256,000 in the same period last year[16] - Total tax expenses for the period amounted to HKD 70,369,000, down from HKD 111,228,000 in the previous year[20] - Basic earnings per share for the period were HKD 143,925,000, a decrease from HKD 263,862,000 in the same period of 2023[22] - The company declared an interim dividend of HKD 0.014 per share for the six months ended June 30, 2024, down from HKD 0.025 per share in the previous year[40] Assets and Liabilities - Non-current assets totaled HKD 24,877,049,000, a decrease from HKD 25,274,027,000 as of December 31, 2023[5] - Current assets amounted to HKD 14,014,362,000, down from HKD 14,483,397,000 in the previous year[5] - Cash and cash equivalents were HKD 1,984,880,000, compared to HKD 2,308,578,000 at the end of the previous period[5] - Current liabilities decreased to HKD 10,225,627 thousand from HKD 12,943,689 thousand, a reduction of approximately 21%[6] - Current assets increased significantly to HKD 3,788,735 thousand from HKD 1,539,708 thousand, representing an increase of about 146%[6] - Non-current liabilities rose to HKD 16,171,084 thousand from HKD 14,457,396 thousand, an increase of approximately 12%[6] - Total equity increased to HKD 12,494,700 thousand from HKD 12,356,339 thousand, reflecting a growth of about 1.1%[6] - The company reported a decrease in interest-bearing bank and other borrowings from HKD 10,213,907 thousand to HKD 7,841,920 thousand, a decline of approximately 23%[6] - The company’s total assets as of June 30, 2024, were HKD 37,119,101,000, compared to HKD 37,773,483,000 in the previous year[15] - The company’s total liabilities were HKD 1,772,310,000, down from HKD 1,983,941,000 year-on-year[15] - As of June 30, 2024, total assets were approximately HKD 38,891,411,000, down from HKD 39,757,424,000 at the end of 2023[53] - The total outstanding loans were approximately HKD 22,444,669,000, down from HKD 23,131,760,000 at the end of 2023[55] Operational Highlights - The company is focused on expanding its operations in biomass energy and waste disposal projects, which are expected to generate significant revenue[10][11] - The company is actively pursuing new technologies in environmental restoration and renewable energy sectors, aiming to enhance operational efficiency[11] - The company has implemented 144 environmental investment projects with a total investment of approximately RMB 30.954 billion, and has undertaken 60 light asset projects with a total contract value of approximately RMB 1.696 billion[34] - During the review period, the company expanded 7 new projects, including 3 zero-carbon park projects, with a new installed capacity of 37.46 MW for distributed photovoltaic projects and 12.2 MW/24.47 MWh for user-side energy storage[34] - The company operates 56 biomass comprehensive utilization projects across 10 provinces in China, with a total investment of approximately RMB 17.294 billion and a designed power generation capacity of 1,069 MW[41] - The company processed approximately 3,883,000 tons of biomass raw materials and 2,057,000 tons of household waste, representing increases of 4% and 16% respectively compared to the previous year[41] - The company achieved a steam supply of approximately 1,328,000 tons, an increase of 18% year-on-year[41] - The company operates 51 hazardous and solid waste disposal projects across 8 provinces in China, with a total investment of approximately RMB 11.658 billion and a design capacity of about 2,466,400 tons per year[44] - The company has 24 operational photovoltaic projects and 2 wind power projects, with a total investment of approximately RMB 1.488 billion and a total designed capacity of 142.41 MW[48] Governance and Compliance - The company has maintained consistent accounting policies in line with Hong Kong Financial Reporting Standards, ensuring transparency in financial reporting[8] - The company anticipates no significant impact from the recent amendments to accounting standards on its interim financial reports[9] - The board has adopted the Corporate Governance Code and complied with all applicable provisions, except for the absence of the chairman at the annual general meeting due to other business commitments[61] - The interim results announcement has been published on the Hong Kong Stock Exchange and the company's website[67] - The company has established a sustainable development committee with specific working groups to oversee environmental, social, and governance-related initiatives[62] Strategic Initiatives - The company aims to enhance operational management and improve efficiency to adapt to market changes and seize new development opportunities[51] - The company plans to focus on innovation and establish comprehensive asset management capabilities to support the national energy security strategy and carbon neutrality goals[52] - The company has established a "virtual power plant and electricity trading platform" in collaboration with Alibaba Cloud, laying a technical foundation for entering the green electricity trading market[35] - The company continues to enhance shareholder value while considering long-term sustainable development[40] - The company is focusing on clean energy projects such as distributed photovoltaic, user-side energy storage, and ecological restoration of landfills[34] - The company aims to enhance its main business while innovating and developing new business models in response to the green development trend[34] Employee and Community Engagement - The group incurred employee benefits expenses totaling HKD 351,890,000 for the period, slightly up from HKD 342,480,000 in the previous year[17] - The group employed over 3,300 staff in Hong Kong and mainland China as of June 30, 2024[60] - The company has opened 51 projects to the public, conducting 76 offline public open activities with a total of 1,364 visitors[37]

Financial Performance - As of 31 December 2023, the aggregate net book value of pledged assets amounted to approximately HK$17,239,332,000, a decrease of 11.5% from HK$19,430,554,000 as of 31 December 2022[2]. - The Group had purchase commitments of approximately HK$108,723,000 under construction contracts, significantly down from HK$295,360,000 as of 31 December 2022, representing a reduction of 63.2%[4]. - As of December 31, 2023, the Group recorded construction revenue of HK$660,645,000, a decrease of 48.9% from HK$1,297,251,000 in 2022[25]. - Revenue from intangible assets was HK$606,504,000, down 27.5% from HK$837,965,000 in the previous year[25]. - Revenue from service concession assets was HK$54,141,000, a significant decline of 88.2% compared to HK$459,286,000 in 2022[25]. - The total staff cost for the year ended December 31, 2023, was HK$664,774,000, a decrease from HK$693,956,000 in 2022[39]. Project Overview - As of 31 December 2023, the Group had a total of 159 projects completed or operational and 29 projects under construction, including 54 integrated biomass utilization projects and 39 hazardous and solid waste treatment projects classified as service concession arrangements[20]. - The Group had a total of 159 completed or operational projects and 29 projects under construction as of December 31, 2023[22]. Risk Management - The Group emphasized risk management, focusing on trade receivables, policy changes, and market competition as key risks[40]. - The company emphasizes risk management, focusing on accounts receivable, policy changes, strategic transformation, market competition, capacity management, environmental compliance, safety management, human resources, and cost control as major risks[60]. - The company has established a proactive risk management framework to address uncertainties that may impact its strategic goals[60]. - The Group has integrated environmental, social, and governance (ESG) risks into its risk management system, enhancing its ability to manage risks related to sustainable development and climate change[80]. Human Resources - The Group employed 3,569 staff in Hong Kong and Mainland China as of December 31, 2023[39]. - The Group has enhanced its human resources strategy to address recruitment challenges, ensuring timely and effective hiring of qualified personnel[72]. - The company provides various employee benefits, including medical insurance and a mandatory provident fund scheme, in addition to discretionary bonuses[59]. - The Company has adopted recruitment measures that promote diversity and increase job opportunities for females, fostering a supportive work environment[79]. Environmental and Social Responsibility - The Group is actively participating in national policies for carbon reduction and addressing climate change risks[40]. - The company is committed to social responsibility by increasing local farmers' income through straw purchasing and processing initiatives[60]. - The Group has been closely monitoring national environmental policy adjustments and actively participating in advancing national strategies, ensuring alignment with environmental policies and prudent investment principles[63]. - The Group emphasizes the importance of environmental compliance and safety management, focusing on optimizing project design and strict control of emission indicators[71]. Corporate Governance - The Group emphasizes the importance of corporate governance and ESG performance as indicators of management capability, aiming for long-term sustainable growth for shareholders[92]. - The Group has adopted the Corporate Governance Code as per the Listing Rules and complied with all applicable provisions in 2023, with minor deviations explained[95]. - The Board has complied with all applicable corporate governance code provisions during 2023, with one noted deviation regarding the chairman's attendance at the AGM[129]. - The Company aims to create long-term sustainable growth and value for all stakeholders through effective corporate governance practices[130]. Financial Agreements and Transactions - The Company entered into a new lease agreement for commercial space with a monthly rent of HK$194,400 for a term of 3 years from May 18, 2022, to May 17, 2025[106]. - The new deposit and loan services master agreements with China Everbright Group are effective from January 1, 2023, to December 31, 2025, for a term of 3 years[110]. - The Company has engaged Ernst & Young to report on the Group's 2023 Continuing Connected Transactions, which resulted in an unmodified letter confirming compliance[166]. Sustainability and Innovation - The company aims to transform into a comprehensive service provider for carbon neutrality, aligning with the national Dual Carbon strategy[143]. - The company is focused on advancing technological innovation and enhancing existing project technologies[143]. - The company has established a regulatory framework for sustainable development, with a committee that includes 3 Independent Non-executive Directors providing advice on risk management and opportunity capture[197]. Safety Management - The Company has implemented a dual prevention mechanism for safety management, focusing on tiered safety risk control and hazard inspection[70]. - The Group's focus on risk management and safety culture is aimed at minimizing management deficiencies and enhancing overall operational safety[86]. - The Group has conducted numerous safety training sessions to enhance safety risk awareness and curb potential risks at the source[70].

Financial Performance - The total revenue for the year reached approximately HKD 7,416,973,000, with construction services revenue decreasing by 49% to HKD 660,645,000, while operational services revenue remained stable at HKD 6,412,714,000[17]. - The company reported a loss attributable to equity shareholders of approximately HKD 301,711,000, an increase of 189% compared to a profit of HKD 340,201,000 in 2022[28]. - The adjusted EBITDA was approximately HKD 1,453,509,000, down 33% from HKD 2,175,944,000 in the previous year[28]. - The basic loss per share for 2023 was HKD 0.1460, a decrease of HKD 0.3107 from the basic earnings per share of HKD 0.1647 in 2022[28]. - The company reported a total comprehensive loss of HKD 1,067,423,000 for the year, compared to a loss of HKD 1,244,305,000 in 2022[60]. - Total revenue for 2023 was HKD 7,416,973,000, a decrease of 7.8% from HKD 8,048,171,000 in 2022[95]. - The company reported a pre-tax loss of HKD 339,288,000, compared to a profit of HKD 510,158,000 in the previous year[91]. Assets and Liabilities - As of December 31, 2023, the group had cash and bank balances of approximately HKD 2,378,783,000, with total bank loan facilities amounting to HKD 24,910,746,000, of which HKD 6,884,254,000 remained unused[29]. - The total assets decreased to HKD 26,813,735 in 2023 from HKD 30,094,604 in 2022, indicating a contraction in the asset base[47]. - Total liabilities increased to HKD 27,401,085,000 from HKD 25,622,091,000 in the previous year[71]. - The net assets of the group were approximately HKD 12.36 billion, down from HKD 13.53 billion at the end of 2022, representing a decrease of 8.7%[173]. - The total amount related to BOT and BOO arrangements as of December 31, 2023, was HKD 6,692,920,000, slightly up from HKD 6,646,337,000 in 2022[84]. Environmental and Social Governance (ESG) - The group has been recognized for its outstanding ESG performance, receiving multiple awards including the "2022 Environmental Contribution Award" from KPMG China[7]. - The group emphasizes the importance of environmental, social, and governance (ESG) risk management, integrating ESG risks into its comprehensive risk management system[26]. - The company did not incur any significant losses or impacts due to violations of environmental regulations in 2023[182]. Operational Management - The group continues to enhance operational management standards and has implemented a strategy combining localized fuel supply with regional scheduling to reduce costs[5]. - The group aims to improve operational efficiency by analyzing costs and optimizing processes through pilot projects, particularly in hazardous waste incineration projects[5]. - The group is actively expanding its business footprint by focusing on the integration of biomass and zero-carbon park models, leveraging its nationwide biomass utilization projects[23]. Project Development - The group has implemented 139 environmental projects with a total investment of approximately RMB 30.713 billion, and has undertaken 59 environmental remediation projects with a total contract value of approximately RMB 1.608 billion[20]. - In the review year, the group secured 20 new projects and signed a supplementary agreement for biomass heating, involving a total new investment of approximately RMB 532 million and a total contract value of approximately RMB 236 million for environmental remediation projects[20]. - The group processed approximately 7,845,389 tons of biomass raw materials, up from 6,009,489 tons in 2022, indicating a significant operational increase[131]. Financial Management - The group received a total of approximately RMB 1.534 billion in renewable energy price supplementary subsidy settlement notifications from the State Grid Corporation, with RMB 1.377 billion already received[16]. - The group is committed to enhancing its core competitiveness by closely monitoring industry-leading technologies and diversifying financing channels[20]. - The borrowing cost for the year ended December 31, 2023, was capitalized at an annual interest rate ranging from 2.70% to 3.50%, down from 3.89% to 4.75% in 2022[77]. Human Resources - The company employed 3,569 staff as of December 31, 2023, a slight decrease from 3,580 employees in 2022[152]. Risk Management - The group emphasized the importance of risk management, revising the risk factor list to identify key control risks for the year under review[6]. - The company emphasizes risk management, particularly in areas such as accounts receivable, policy changes, and market competition[153].

Financial Performance - The total comprehensive income for the period was a loss of HK$290,407,000, compared to a profit of HK$251,862,000 in the previous period [21]. - The company reported a loss of HK$764,345,000 from subsidiaries during the period [36]. - The company recorded a loss of HK$385,107,000 from total comprehensive income for the period, with contributions from non-controlling interests amounting to HK$806,982,000 [36]. - Total revenue for the six months ended June 30, 2023, was HK$3,819,944,000, a decrease of 9.5% compared to HK$4,220,291,000 for the same period in 2022 [72]. - Profit attributable to equity shareholders for the six months ended June 30, 2023, was HK$263,862,000, down from HK$371,871,000 in the same period of 2022, indicating a decrease of 29.1% [97]. - The consolidated profit before tax was HK$382,405,000, showing a positive performance despite revenue declines [64]. - EBITDA was approximately HK$1,263,506,000, down 3% from HK$1,296,684,000 year-on-year [150]. - Basic earnings per share for the first half of 2023 were 12.77 HK cents, down 5.23 HK cents from 18.00 HK cents in the same period last year [150]. Cash Flow and Financial Position - For the six months ended June 30, 2023, net cash flows used in operating activities amounted to HK$141,694,000, a decrease from HK$657,329,000 in the same period of 2022 [39]. - Cash flows from investing activities showed a net outflow of HK$954,326,000, compared to HK$1,038,750,000 in the previous year [39]. - The net cash flows from financing activities were HK$1,098,706,000, down from HK$2,201,353,000 in the prior year [42]. - Cash and cash equivalents at the end of the period were HK$1,877,393,000, a decrease from HK$2,871,955,000 in 2022 [43]. - The company incurred HK$353,032,000 in purchases of property, plant, and equipment during the first half of 2023 [39]. - The company reported a decrease in cash used in operations, which was HK$87,933,000 for the first half of 2023, compared to HK$632,281,000 in 2022 [39]. - The total accumulated impairment as of June 30, 2023, was HK$7,944,334,000, compared to HK$7,487,578,000 as of December 31, 2022, indicating an increase of 6.1% [106]. Segment Performance - The Group operates through four reportable segments: Integrated biomass utilisation, Hazardous and solid waste treatment, Environmental remediation, and Solar energy and wind power projects [58]. - Revenue from integrated biomass utilization project operation services was HK$2,463,681,000, down from HK$2,533,370,000 in the previous year, reflecting a decrease of 2.7% [72]. - Revenue from hazardous and solid waste treatment project operation services decreased to HK$521,203,000 from HK$615,203,000, a decline of 15.3% [72]. - Revenue from environmental remediation project operation services increased to HK$79,651,000, up from HK$70,256,000, representing a growth of 13.5% [72]. - Revenue from solar energy and wind power project operation services rose to HK$112,451,000, compared to HK$99,621,000 in the previous year, marking an increase of 12.9% [72]. - Adjusted EBITDA for the reportable segments was HK$1,225,600,000, an increase from HK$1,081,917,000, reflecting a growth of 13.3% [64]. Governance and Management - The company established a Sustainability Committee to oversee management effectiveness in sustainability matters, comprising three working groups focused on operations, community investment, and compliance [12]. - The Management Committee meets monthly to discuss investment proposals and project schedules, ensuring alignment with the Board's strategies [11]. - The company has implemented a series of internal controls and risk management strategies to enhance corporate governance and accountability [10]. - The interim financial report indicates a significant focus on enhancing internal audit and risk management capabilities [13]. - The company aims to create long-term value for stakeholders through robust corporate governance practices [10]. Taxation and Grants - The total tax expense for the period ended June 30, 2023, was HK$111,228,000, an increase from HK$88,084,000 in the same period of 2022, representing a 26.2% increase [90]. - The Group's profit before tax for the six months ended June 30, 2023, was impacted by government grants totaling HK$11,383,000, down from HK$61,922,000 in the same period of 2022 [86]. - The Group received PRC value-added tax refunds of HK$78,400,000 during the six months ended June 30, 2023, compared to HK$51,961,000 in the same period of 2022 [86]. Strategic Initiatives - The company aims to build a comprehensive service provider focused on carbon neutrality, integrating environment, resources, energy, and climate [130]. - The interim report highlights a strategic focus on market expansion and the development of new technologies in the carbon neutrality sector [131]. - The company is actively pursuing long-term stability and adapting to market changes, emphasizing the importance of evolving with times [129]. - The management discussion indicates a commitment to enhancing operational efficiency and exploring new business opportunities in the green technology sector [131]. - The Group emphasized the development of smart energy projects, focusing on "Zero-carbon Industry Park" initiatives [144]. Research and Development - The company continues to deepen its research in carbon trading and various environmental technologies, participating in key national R&D projects [146]. - The Group was awarded the "Outstanding Contribution to Environment Award 2022" by KPMG China for its performance in sustainability [183]. - The Group held 224 authorized patents, including 32 invention patents and 192 utility model patents as of June 30, 2023 [145].

Financial Performance - The company reported a profit of HKD 271,173,000 for the six months ended June 30, 2023, a decrease of 27.4% compared to HKD 373,811,000 for the same period in 2022[3]. - The total comprehensive loss for the period was HKD 113,572,000, compared to a loss of HKD 397,850,000 in the same period last year[3]. - Profit attributable to equity shareholders was approximately HKD 263,862,000, down 29% from HKD 371,871,000 year-on-year[107]. - Basic earnings per share for the period were HKD 263,862,000, a decrease of 29.1% from HKD 371,871,000 for the same period in 2022[59]. - The gross profit for the same period was HKD 957,189, down from HKD 976,694, reflecting a slight decline in profitability[171]. - The financial expenses increased to HKD 398,256 from HKD 367,456, indicating rising costs[171]. Revenue and Income Sources - Revenue from biomass comprehensive utilization project construction services was HKD 419,923,000, up from HKD 331,936,000 in the previous year[15]. - Revenue from hazardous waste disposal project construction services decreased to HKD 43,225,000 from HKD 379,524,000 year-on-year[15]. - Total revenue from construction services, operational services, and financial income from local government agencies in China was HKD 2,909,564,000 for the six months ended June 30, 2023, compared to HKD 3,306,866,000 in 2022, reflecting a decrease of about 12%[55]. - The group recorded revenue of approximately HKD 3,819,944,000, a decrease of 9% compared to HKD 4,220,291,000 in the same period last year[107]. Assets and Liabilities - Non-current assets decreased to HKD 26,347,847,000 from HKD 26,713,314,000 year-on-year[4]. - Current assets increased to HKD 13,281,437,000, up from HKD 12,443,062,000 in the previous year[4]. - The total accounts receivable as of June 30, 2023, was HKD 6,822,725,000, an increase of 10.6% from HKD 6,172,447,000 at the end of 2022[61]. - The total assets of the group as of June 30, 2023, were approximately HKD 39.63 billion, an increase from HKD 39.16 billion at the end of 2022[127]. - The group's debt-to-asset ratio increased to 66.22% as of June 30, 2023, from 65.44% at the end of 2022, reflecting a 0.78 percentage point rise[127]. Dividends and Shareholder Returns - The interim dividend declared on August 11, 2023, is HKD 0.025 per share, down from HKD 0.036 per share in the previous year, totaling approximately HKD 51,652,000 compared to HKD 74,379,000 in 2022, a reduction of about 30.6%[35]. - The company declared an interim dividend of HKD 0.025 per share for the six months ended June 30, 2023, down from HKD 0.036 per share in 2022, with a payout ratio of 19.6% compared to 20.0% in the previous year[154]. Government Support and Taxation - The group received government subsidies amounting to HKD 11,383,000 for the six months ended June 30, 2023, compared to HKD 61,922,000 for the same period in 2022, indicating a significant decrease of approximately 81.7%[33]. - The company recognized a VAT refund of HKD 78,400,000 for the period, an increase from HKD 51,961,000 in the previous year[18]. - Total tax expenses for the period amounted to HKD 111,228,000, up from HKD 88,084,000 in the previous year, representing a significant increase of 26.3%[58]. Operational Developments - The group is actively responding to national ecological civilization initiatives and is focusing on strategic transformation to enhance operational efficiency and sustainable development capabilities[48]. - The company is focusing on enhancing operational quality and adapting to the new economic normal as part of its strategic planning for the "14th Five-Year Plan" period[73]. - The group continues to focus on risk management, particularly regarding the delays in renewable energy price subsidies, which pose liquidity risks due to the accumulation of receivables[76]. Environmental and Sustainability Initiatives - The group has implemented 132 environmental projects with a total investment of approximately RMB 30.44 billion, and has undertaken 54 environmental remediation projects with a total contract value of approximately RMB 1.501 billion[103]. - The group continues to enhance environmental monitoring and public transparency, with 22 projects officially opened to the public and 57 offline public engagement activities conducted, receiving 1,098 visitors[52]. - The company plans to enhance its research and development capabilities and promote innovative business models to align with national strategies and industry changes[96]. Corporate Governance - The board of directors has established three committees: Audit and Risk Management Committee, Nomination Committee, and Remuneration Committee to enhance corporate governance and accountability[148]. - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for one deviation regarding the attendance of the chairman at the annual general meeting[151]. - The management committee meets monthly to discuss investment proposals, personnel matters, project progress, and budget execution[148].

Financial Performance - Revenue for 2022 was HK$8,048,171, a decrease of 5% from HK$8,446,999 in 2021[13]. - EBITDA for 2022 was HK$2,175,944, down 23% from HK$2,837,942 in 2021[13]. - Profit attributable to equity shareholders decreased by 69% to HK$340,201 from HK$1,110,385 in 2021[13]. - Return on shareholders' equity fell to 2.60%, a decline of 5.80 percentage points from 8.40% in 2021[13]. - Basic earnings per share dropped by 69% to 16.47 HK cents from 53.74 HK cents in 2021[13]. - Total assets decreased by 3% to HK$39,156,376 from HK$40,539,581 in 2021[13]. - Total liabilities also decreased by 3% to HK$25,622,091 from HK$26,394,214 in 2021[13]. - Equity attributable to equity shareholders fell by 10% to HK$12,384,795 from HK$13,761,195 in 2021[13]. - Cash and bank balances decreased by 24% to HK$2,003,293 from HK$2,644,110 in 2021[13]. - Gearing ratio increased slightly to 65.44% from 65.11% in 2021[14]. Project Development and Operations - The company signed multiple rooftop solar energy projects in Hong Kong and Jiangsu Province, enhancing its renewable energy portfolio[19][25]. - Ongoing landfill remediation projects were initiated in Jiangsu Province, indicating a commitment to environmental sustainability[20][26]. - A new heat supply capacity of 166,400 tonnes per year was signed for the Huai'an Integrated Biomass and Waste-to-energy Project, expanding operational capabilities[40][42]. - The Group secured 12 new projects during the year, including 1 integrated biomass utilization project, 1 hazardous and solid waste treatment project, 2 solar energy projects, and 8 environmental remediation projects, with additional investments totaling approximately RMB 350 million and RMB 244 million for environmental remediation projects[69]. - The Group commenced construction on 16 new projects and completed 14 projects during the year, with 25 projects under construction or implementation as of December 31, 2022[73]. Environmental and Sustainability Initiatives - The company received multiple ESG awards, highlighting its commitment to environmental, social, and governance standards[30][41]. - The company is focusing on high-quality development in line with the ecological civilization goals set by the 20th National Congress of the Communist Party of China[44]. - The company is committed to driving progress in social and economic efficiency while upholding environmental protection and social responsibility[54]. - The Group's commitment to corporate social responsibility includes initiatives like purchasing straws from local farmers to support their income[198]. - The Group's environmental remediation business includes restoration of contaminated sites and treatment of industrial gas emissions, contributing to its comprehensive waste management strategy[130]. Financial Milestones and Investments - The company successfully issued the first tranche of perpetual medium-term notes in 2022, marking a significant financial milestone[29][30]. - The Company issued RMB1.2 billion of green medium-term notes in April 2022, with a coupon rate of 3.27% per annum for the first three years[91]. - The Company completed the issuance of RMB700 million of perpetual medium-term notes in May 2022, with a coupon rate of 3.35% per annum for the first three years[95]. - In 2022, the Group had a total investment of approximately RMB 32.828 billion across 139 environmental protection projects and undertook 50 environmental remediation projects with a total contract amount of approximately RMB 1.409 billion[68]. Market and Economic Outlook - The outlook for 2023 indicates a hopeful recovery for the Chinese economy, supported by the stabilization of domestic demand and the gradual return to normal industrial operations post-pandemic[150]. - The ongoing geopolitical conflicts and complex international relations pose uncertainties for global economic recovery, impacting domestic demand and industrial production in China[152]. - The environmental protection industry is expected to see an expansion in service scope and boundaries, driven by new policies aimed at pollution reduction and carbon emission[153]. Corporate Governance and Management - The Group emphasizes a "People-oriented, Pragmatic, Creative and Systematic" management philosophy to enhance corporate management and operational efficiency[188]. - The Group has implemented comprehensive cost management on projects and promoted a "cost reduction and efficiency enhancement" initiative[189]. - The Group has established a talent management system to optimize internal recommendations and training, aiming to retain core personnel[195]. - The Group has implemented ongoing preventive measures against COVID-19 to safeguard staff health and project operations[198]. Research and Development - As of December 31, 2022, the company held 228 authorized patents, including 32 invention patents and 191 utility model patents[53]. - The Group's strategic focus includes the "Dual Carbon" strategy, aiming to drive new growth through technological innovation and low-carbon technologies[64]. - The Group is exploring the potential of general industrial solid waste electricity and heat cogeneration business, leveraging its technical strengths and one-stop service capabilities[121].