[Financial Highlights](index=1&type=section&id=財務摘要) China Everbright Greentech Limited announced its unaudited interim financial results for the six months ended June 30, 2025, with revenue decreasing by 3% and EBITDA by 11% year-on-year, but profit attributable to equity holders of the Company increased by 33%, and interim dividend doubled to 2.8 HK cents per share Key Financial Data for H1 2025 | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the Company | 190,791 | 143,925 | +33% | | Interim dividend (per share) | 2.8 HK cents | 1.4 HK cents | +100% | - Profit attributable to equity holders of the Company increased by **33%** year-on-year, and interim dividend doubled to **2.8 HK cents** per share[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=綜合財務報表) This section presents the unaudited consolidated statement of profit or loss, consolidated statement of comprehensive income, and consolidated statement of financial position for the six months ended June 30, 2025, showcasing the company's financial performance and position at period-end [Consolidated Statement of Profit or Loss](index=2&type=section&id=綜合損益表) During the period, the company reported revenue of **HKD 3,400,122 thousands**, gross profit of **HKD 856,778 thousands**, profit before tax of **HKD 244,429 thousands**, profit attributable to equity holders of the Company of **HKD 190,791 thousands**, and basic and diluted earnings per share of **9.23 HK cents** Consolidated Statement of Profit or Loss Summary | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | | Gross Profit | 856,778 | 681,102 | | Profit before tax | 244,429 | 207,087 | | Profit attributable to equity holders of the Company | 190,791 | 143,925 | | Basic and diluted earnings per share | 9.23 HK cents | 6.97 HK cents | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=綜合全面收益表) For the six months ended June 30, 2025, the company's profit for the period was **HKD 163,859 thousands**, other comprehensive income (primarily due to exchange differences) was **HKD 288,670 thousands**, resulting in a total comprehensive income for the period of **HKD 452,529 thousands** Consolidated Statement of Comprehensive Income Summary | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 163,859 | 136,718 | | Other comprehensive income (net of tax) | 288,670 | 1,643 | | Total comprehensive income for the period | 452,529 | 138,361 | | Total comprehensive income attributable to equity holders of the Company | 468,284 | 146,567 | - Exchange differences arising from the translation of overseas operations shifted from a negative **HKD 159,132 thousands** in H1 2024 to a positive **HKD 336,716 thousands** in H1 2025, which is the primary reason for the significant increase in other comprehensive income[6](index=6&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=綜合財務狀況表) As of June 30, 2025, the company's total non-current assets were **HKD 23,280,840 thousands**, total current assets were **HKD 14,459,129 thousands**, total current liabilities were **HKD 11,180,745 thousands**, and net assets were **HKD 12,437,445 thousands** Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 23,280,840 | 23,414,866 | | Total current assets | 14,459,129 | 12,916,735 | | Total current liabilities | 11,180,745 | 10,298,028 | | Net assets | 12,437,445 | 11,662,300 | | Total equity attributable to equity holders of the Company | 10,142,825 | 9,609,839 | - Total current assets increased from **HKD 12,916,735 thousands** as of December 31, 2024, to **HKD 14,459,129 thousands** as of June 30, 2025, primarily due to a significant increase in cash and cash equivalents[7](index=7&type=chunk) - Goodwill decreased from **HKD 65,681 thousands** as of December 31, 2024, to **HKD 0** as of June 30, 2025, indicating goodwill impairment during the reporting period[7](index=7&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=財務報表附註) This section details the basis of preparation, changes in accounting policies, operating segment information, revenue composition, finance costs, profit before tax components, income tax, dividends, earnings per share, trade and other receivables, contract assets, and trade and other payables, along with their specific circumstances and changes [Basis of Preparation](index=6&type=section&id=編製基準) The interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the prior year's financial statements, except for anticipated changes - The report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The accounting policies adopted are consistent with those used in the annual financial statements for the year ended December 31, 2024, except for changes in accounting policies expected to be reflected in the full-year 2025 financial statements[9](index=9&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=會計政策變動) The Group has applied HKAS 21 amendment "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", but it has no significant impact on this interim report due to the absence of relevant transactions - The Group has applied the amendment to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" in the interim financial report for the current accounting period[10](index=10&type=chunk) - As the Group has not entered into any transactions denominated in a foreign currency that cannot be exchanged into other currencies, these amendments have no significant impact on this interim report[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=運營分部資料) The Group is divided into four reportable segments: Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation, with segment performance assessed based on adjusted EBITDA, and major customer information disclosed [Segment Classification and Basis of Assessment](index=6&type=section&id=分部劃分與評估基準) The Group is classified into four reportable segments: Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation, with "adjusted EBITDA" used by top management to assess segment performance and allocate resources - The Group reports four reportable segments: Biomass Integrated Utilization project construction and operation, Hazardous and Solid Waste Treatment project construction and operation, Environmental Remediation project operation, and Photovoltaic and Wind Power Generation project operation[12](index=12&type=chunk)[16](index=16&type=chunk) - Segment performance is reported using "adjusted earnings before interest, tax, depreciation and amortisation (non-GAAP measure)" ("adjusted EBITDA")[14](index=14&type=chunk) [Segment Performance, Assets and Liabilities](index=8&type=section&id=分部業績%E3%80%81資產及負債) During the period, Biomass Integrated Utilization projects contributed the highest revenue and adjusted EBITDA, while Environmental Remediation projects recorded a loss, with detailed segment asset and liability totals presented Segment Performance, Assets and Liabilities Summary (H1 2025) | Segment | Revenue (HKD thousands) | Adjusted EBITDA (HKD thousands) | Segment Assets (HKD thousands) | | :--- | :--- | :--- | :--- | | Biomass Integrated Utilization | 2,711,473 | 1,021,719 | 27,146,714 | | Hazardous and Solid Waste Treatment | 515,235 | 26,738 | 6,447,862 | | Environmental Remediation | 72,680 | (59,052) | 624,314 | | Photovoltaic and Wind Power Generation | 100,734 | 86,761 | 1,408,163 | | Total | 3,400,122 | 1,076,166 | 35,627,053 | - The Environmental Remediation project operation segment recorded an adjusted EBITDA loss of **HKD 59,052 thousands**[17](index=17&type=chunk) [Major Customer Information](index=9&type=section&id=主要客戶資料) For the six months ended June 30, 2025, the Group's revenue from two local Chinese government agencies accounted for over **10%** of total revenue, with one agency contributing **HKD 1,261,485 thousands** - For the six months ended June 30, 2025, the Group transacted with two local government agencies in the People's Republic of China ("China"), with these transactions individually accounting for over **10%** of the Group's revenue[18](index=18&type=chunk) - Revenue from this Chinese local government agency was **HKD 1,261,485 thousands** (H1 2024: **HKD 892,286 thousands**)[18](index=18&type=chunk) [Revenue](index=9&type=section&id=收益) For the six months ended June 30, 2025, the Group's total revenue was **HKD 3,400,122 thousands**, primarily contributed by operating service revenue from biomass integrated utilization projects, with financial income from service concession arrangements also accounting for a certain proportion Revenue Analysis (H1 2025) | Revenue Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Biomass Integrated Utilization project construction service revenue | 46,488 | 178,507 | | Biomass Integrated Utilization project operating service revenue | 2,502,922 | 2,436,265 | | Hazardous and Solid Waste Treatment project operating service revenue | 513,275 | 562,378 | | Environmental Remediation project operating service revenue | 72,680 | 63,026 | | Photovoltaic and Wind Power Generation project operating service revenue | 100,734 | 97,320 | | Total revenue from contracts with customers | 3,236,099 | 3,337,496 | | Financial income from service concession arrangements | 164,023 | 168,081 | | Total Revenue | 3,400,122 | 3,505,577 | - Revenue from biomass integrated utilization project construction services significantly decreased by **74%** year-on-year, from **HKD 178,507 thousands** to **HKD 46,488 thousands**[19](index=19&type=chunk) [Finance Costs](index=10&type=section&id=財務費用) For the six months ended June 30, 2025, the Group's total finance costs were **HKD 294,302 thousands**, a significant decrease from the prior period, primarily due to reduced interest on bank and other borrowings Finance Costs Analysis (H1 2025) | Finance Cost Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 186,021 | 334,442 | | Interest on lease liabilities | 282 | 473 | | Interest on medium-term notes | 88,954 | 78,172 | | Asset-backed securities right maintenance fees | 19,307 | – | | Finance costs incurred | 294,564 | 413,087 | | Less: Interest capitalized | (262) | (2,596) | | Total | 294,302 | 410,491 | - Interest on bank and other borrowings significantly decreased from **HKD 334,442 thousands** in H1 2024 to **HKD 186,021 thousands** in H1 2025[20](index=20&type=chunk) - New asset-backed securities right maintenance fees amounted to **HKD 19,307 thousands**[20](index=20&type=chunk) [Profit Before Tax](index=11&type=section&id=除稅前盈利) During the period, the Group's profit before tax was **HKD 244,429 thousands**, primarily impacted by intangible asset amortization, depreciation, cost of inventories consumed, and impairment losses on goodwill and property, plant and equipment - Amortization of intangible assets was **HKD 291,759 thousands**, and depreciation of property, plant and equipment was **HKD 131,558 thousands**[21](index=21&type=chunk) - Cost of inventories consumed was **HKD 1,186,532 thousands**, and credit losses on trade and contract assets were **HKD 13,000 thousands**[21](index=21&type=chunk) - Impairment losses on goodwill and property, plant and equipment of **HKD 178,379 thousands** were recognized, including a full impairment of goodwill for Everbright Ecological Remediation (Jiangsu) Co., Ltd. of **HKD 65,816 thousands**, and impairment of property, plant and equipment of **HKD 112,563 thousands** due to the cessation of operations of certain hazardous and solid waste treatment projects[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Income Tax](index=12&type=section&id=所得稅) The Group's total income tax expense for the six months ended June 30, 2025, was **HKD 80,570 thousands**, primarily from Chinese operations, calculated at a statutory rate of **25%** under Chinese tax laws, with some Chinese subsidiaries enjoying tax incentives Income Tax Expense Analysis (H1 2025) | Income Tax Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Current – Other locations: Provision for the period | 100,758 | 66,004 | | Under/(over) provision in prior periods | 2,675 | (442) | | Deferred | (22,863) | 4,807 | | Total tax expense for the period | 80,570 | 70,369 | - Taxation for Chinese operations is calculated at a statutory rate of **25%** on taxable profits in accordance with Chinese tax laws and regulations, with certain Chinese subsidiaries enjoying tax incentives[24](index=24&type=chunk) - Management assesses that the Group currently has no significant tax risks arising from global minimum tax reform[25](index=25&type=chunk) [Dividends](index=12&type=section&id=股息) The Board declared an interim dividend of **2.8 HK cents** per share for the six months ended June 30, 2025, doubling from the prior period, with a payout ratio of **30.32%**, payable on or about October 14, 2025 - The Board declared an interim dividend of **2.8 HK cents** per ordinary share (H1 2024: **1.4 HK cents** per share), totaling approximately **HKD 57,850 thousands**[26](index=26&type=chunk) - The interim dividend payout ratio for the six months ended June 30, 2025, was **30.32%** (2024: **20.1%**)[81](index=81&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company](index=12&type=section&id=本公司權益股東應佔每股盈利) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to equity holders of the Company were **9.23 HK cents**, an increase from **6.97 HK cents** in the prior period Earnings Per Share Analysis (H1 2025) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD thousands) | 190,791 | 143,925 | | Weighted average number of ordinary shares (thousands) | 2,066,078 | 2,066,078 | | Basic and diluted earnings per share | 9.23 HK cents | 6.97 HK cents | - Profit for the period attributable to equity holders of the Company increased from **HKD 143,925 thousands** in H1 2024 to **HKD 190,791 thousands** in H1 2025[27](index=27&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=13&type=section&id=應收賬款%E3%80%81其他應收款項%E3%80%81按金及預付款項) As of June 30, 2025, total trade receivables were **HKD 6,663,649 thousands**, with a significant portion overdue by more than thirteen months, and loss allowance at period-end was **HKD 207,684 thousands** Trade Receivables Ageing Analysis (June 30, 2025) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Not more than one month | 548,607 | 569,029 | | Over thirteen months | 4,508,782 | 4,322,342 | | Total trade receivables (net of loss allowance) | 6,663,649 | 6,458,757 | - The loss allowance for trade receivables at period-end was **HKD 207,684 thousands**, an increase from **HKD 196,776 thousands** at the beginning of the year[30](index=30&type=chunk) - The carrying amount of trade receivables measured at fair value through other comprehensive income increased from **HKD 4,733,080 thousands** as of December 31, 2024, to **HKD 5,107,229 thousands** as of June 30, 2025[29](index=29&type=chunk) [Contract Assets](index=14&type=section&id=合約資產) As of June 30, 2025, the Group's total contract assets were **HKD 10,482,092 thousands**, primarily comprising service concession arrangement assets and unbilled renewable energy tariff subsidies Contract Assets Composition (June 30, 2025) | Contract Asset Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Service concession arrangement assets | 6,525,979 | 6,494,201 | | Unbilled renewable energy tariff subsidies | 3,530,348 | 3,106,104 | | Environmental remediation contract assets | 442,695 | 402,969 | | Total contract assets (net of impairment) | 10,482,092 | 9,992,953 | - Unbilled renewable energy tariff subsidies increased from **HKD 3,106,104 thousands** as of December 31, 2024, to **HKD 3,530,348 thousands** as of June 30, 2025[31](index=31&type=chunk) - Service concession arrangement assets arise from Build-Operate-Transfer (BOT) and Build-Operate-Own (BOO) arrangements, bearing interest at annual rates ranging from **4.65%** to **6.60%**[32](index=32&type=chunk) [Trade and Other Payables and Accruals](index=16&type=section&id=應付賬款%E3%80%81其他應付款項及應計費用) As of June 30, 2025, the Group's total trade and other payables and accruals were **HKD 2,430,921 thousands**, with trade payables primarily consisting of amounts due to third parties and fellow subsidiaries Trade and Other Payables and Accruals Composition (June 30, 2025) | Liability Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables – Third parties | 1,112,755 | 1,310,870 | | Trade payables – Fellow subsidiaries | 40,840 | 21,841 | | Other payables and accruals | 1,060,140 | 1,187,301 | | Deferred income – Government grants | 187,759 | 167,948 | | Total | 2,430,921 | 2,716,308 | - Total trade payables decreased from **HKD 1,332,711 thousands** as of December 31, 2024, to **HKD 1,153,595 thousands** as of June 30, 2025[37](index=37&type=chunk) - Of the trade payables, **HKD 377,817 thousands** were construction payables for the Group's BOT and certain BOO arrangements[37](index=37&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=管理層討論與分析) During the period, amidst a complex international economic and trade environment, the Group maintained steady progress, focusing on "dual carbon" strategy and "new quality productive forces" to drive business transformation and achieve stable and improving operating performance. The company made progress in market expansion, technological innovation, operations management, risk control, and ESG, while ensuring ample funding through diversified financing channels [Operating Performance Overview](index=18&type=section&id=經營業績概覽) In H1 2025, amidst a complex and changing international economic and trade environment, the Group maintained steady progress, focusing on the "dual carbon" strategy and ecological civilization construction, driving transformation into a technology-led environmental enterprise, achieving stable and improving operating performance with both quality and efficiency - The Group resolutely implemented national decisions on deepening the "dual carbon" strategy and promoting ecological civilization construction, fully driving the company's transformation into a technology-led environmental enterprise[39](index=39&type=chunk) - The Group achieved stable and improving operating performance in the first half of the year, demonstrating a positive development trend with both quality and efficiency[39](index=39&type=chunk) - As of June 30, 2025, the Group had implemented **142** environmental investment projects with a total investment of approximately **RMB 30.65 billion**; it had cumulatively undertaken **70** light-asset projects such as environmental remediation, involving total contract amounts of approximately **RMB 1.855 billion**[40](index=40&type=chunk) [Business Development and Strategy](index=18&type=section&id=業務發展與戰略) The Group advanced its "second entrepreneurship" around the "Two-Modernizations and One-Type" strategy, focusing on "clean energy" as its core business, expanding into biomass heating, distributed PV, user-side energy storage, and virtual power plant projects, while actively promoting high-value biomass utilization and landfill ecological remediation light-asset projects - The Group fully advanced its "second entrepreneurship" journey, anchored by "clean energy" as its core business, centered on the "Two-Modernizations and One-Type" (technological, international, ecological) core development strategy[41](index=41&type=chunk) - Continued focus on clean energy projects targeting "zero-carbon parks" such as biomass heating, distributed photovoltaic, user-side energy storage, and virtual power plants, as well as light-asset projects with a focus on "landfill ecological remediation"[41](index=41&type=chunk) - Added **520,000 tons** of annual heating capacity, expanded the first bio-natural gas project, added **10 million tons** of annual bio-natural gas production capacity, and added approximately **RMB 128 million** in environmental remediation business contract value[41](index=41&type=chunk) [Technological Innovation and R&D](index=19&type=section&id=科技創新與研發) The Group firmly centered on technological innovation, focusing on R&D of cutting-edge technologies like bio-natural gas, biomass gasification heating, and green methanol, successfully launching its first bio-natural gas project through industry-academia-research collaboration, and partnering with Alibaba Cloud to build a "Virtual Power Plant and Power Trading Auxiliary Decision Platform" - The Group firmly positioned technological innovation as its core development engine, strategically focusing on key areas such as bio-natural gas, biomass gasification heating, biomass-to-green methanol, and biomass-to-sugar[42](index=42&type=chunk) - Actively collaborated with institutions like the Chinese Academy of Sciences to develop efficient anaerobic fermentation technology for bio-natural gas from biomass, successfully launching the first bio-natural gas project[42](index=42&type=chunk) - Jointly with Alibaba Cloud, developed an "Virtual Power Plant and Power Trading Auxiliary Decision Platform" based on AI algorithm technology, successfully signing **136** power users[42](index=42&type=chunk) [Operations Management and Risk Control](index=20&type=section&id=運營管理與風險控制) The Group deepened cost-saving and revenue-generating efforts through refined operations management, optimizing fuel quality and procurement costs, and implemented "one enterprise, one policy" and asset optimization strategies to address challenges in the hazardous and solid waste treatment market. Concurrently, it strengthened its comprehensive risk management system, revised the "Risk Factor List," and optimized related party transaction management policies - In biomass integrated utilization, actively expanded the heating market, opened green certificate trading channels, and optimized fuel quality and procurement costs[43](index=43&type=chunk) - In hazardous and solid waste treatment, adopted a strategy emphasizing both quality improvement and efficiency enhancement, and asset optimization, through organizational restructuring, implementing "one enterprise, one policy," reducing production costs, and disposing of inefficient and non-performing assets[43](index=43&type=chunk) - Comprehensive risk management is integrated into the company's development strategy, by establishing an efficient risk management system, revising the "Risk Factor List," and defining the scope of "key controlled risks"[44](index=44&type=chunk) [Environmental, Social and Governance (ESG)](index=21&type=section&id=環境%E3%80%81社會及管治%20(ESG)) The Group highly prioritizes ESG risks, integrating them into its comprehensive risk management system, deepening climate-related risk management, advancing TCFD work, and earning multiple honors for its outstanding ESG performance, including the "2025 ESG Model Enterprise Award" and improved ESG ratings from Wind and Huazheng Index - The Group consistently prioritizes Environmental, Social, and Governance (ESG) related risks, integrating them into its comprehensive risk management system for key control[45](index=45&type=chunk) - Deepened the work on Task Force on Climate-related Financial Disclosures (TCFD), clarifying the impact of climate-related risks and opportunities on the Group's business operations through scenario analysis[45](index=45&type=chunk) - With its outstanding ESG performance, the Group received multiple honors, including the "**2025 ESG Model Enterprise Award**," and achieved improved ESG ratings from both Wind and Huazheng Index, two authoritative institutions[45](index=45&type=chunk) [Social Responsibility](index=21&type=section&id=社會責任) The Group continued to deepen public access to environmental facilities, with its Rugao Biomass Power Generation project included in the national list of open environmental facilities; as of June 30, 2025, **47** projects were officially open to the public, having cumulatively hosted **1,635** visitors - The Group continued to deepen its commitment to opening environmental facilities to the public, disclosing project environmental impact assessment reports and environmental monitoring data through various media channels[46](index=46&type=chunk) - The Group's Rugao Biomass Power Generation project was included by the Ministry of Ecology and Environment in the fifth batch of national environmental facilities and urban sewage and waste treatment facilities open to the public[46](index=46&type=chunk) - As of June 30, 2025, the company had a total of **47** projects officially open to the public, cumulatively holding **79** offline public open days and receiving a total of **1,635** visitors[46](index=46&type=chunk) [Financial Performance Summary](index=22&type=section&id=財務表現總結) During the period, the Group's revenue decreased by **3%** year-on-year to **HKD 3,400,122 thousands**, and EBITDA decreased by **11%** to **HKD 974,366 thousands**, but profit attributable to equity holders of the Company increased by **33%** year-on-year to **HKD 190,791 thousands**, primarily due to reduced operating costs - The Group recorded revenue of approximately **HKD 3,400,122 thousands**, a **3%** decrease from the prior period; EBITDA was approximately **HKD 974,366 thousands**, an **11%** decrease from the prior period[47](index=47&type=chunk) - Profit attributable to equity holders of the Company was approximately **HKD 190,791 thousands**, a **33%** increase from the prior period[47](index=47&type=chunk) - The decrease in revenue was mainly due to reduced construction service revenue; the increase in profit attributable to equity holders of the Company benefited from exploring cost reduction potential during the period, leading to a decrease in operating costs[47](index=47&type=chunk) [Financing Activities](index=22&type=section&id=融資活動) In H1 2025, the Group successfully broadened its financing channels by issuing the first tranche of asset-backed special plans (**RMB 630 million** priority class) and two tranches of green medium-term notes (totaling **RMB 2 billion**), with proceeds used to supplement working capital, repay debt, and invest in projects - In January 2025, the first tranche of asset-backed special plans was issued, with a priority asset-backed securities issuance size of **RMB 630 million** and a coupon rate of **1.79%**[48](index=48&type=chunk) - In February 2025, the first tranche of 2025 green medium-term notes was issued, with an issuance amount of **RMB 1 billion** and a fixed annual coupon rate of **2.39%**[49](index=49&type=chunk) - In May 2025, the second tranche of 2025 green medium-term notes was issued, with a principal amount of **RMB 1 billion** and an annual coupon rate of **1.98%**[49](index=49&type=chunk) [Segment Revenue and Profit Analysis](index=24&type=section&id=分部收益與盈利分析) During the period, the Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation segments collectively generated **HKD 3,400,122 thousands** in revenue, with operating service revenue accounting for **94%**. The Biomass Integrated Utilization segment contributed the highest EBITDA, while the Environmental Remediation segment recorded a loss Segment Revenue and EBITDA (H1 2025) | Segment | Revenue (HKD thousands) | EBITDA (HKD thousands) | | :--- | :--- | :--- | | Biomass Integrated Utilization projects | 2,711,473 | 1,021,719 | | Hazardous and Solid Waste Treatment projects | 515,235 | 26,738 | | Environmental Remediation projects | 72,680 | (59,052) | | Photovoltaic and Wind Power Generation projects | 100,734 | 86,761 | | Total | 3,400,122 | 1,076,166 | - Construction service revenue was approximately **HKD 46,488 thousands**, a **74%** decrease from the prior period; operating service revenue was approximately **HKD 3,189,611 thousands**, a **1%** increase from the prior period[50](index=50&type=chunk) - By revenue nature, construction services, operating services, and financial income accounted for **1%**, **94%**, and **5%** of total revenue, respectively[50](index=50&type=chunk) [Segment Business Details](index=25&type=section&id=分部業務詳情) This section details the operating models, project layouts, key operating data, and financial performance of the Group's four core business segments—Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation—revealing their growth drivers and challenges [Biomass Integrated Utilization](index=25&type=section&id=生物質綜合利用) The Group's biomass integrated utilization business primarily generates electricity and heat from biomass raw materials, combined with waste-to-energy, achieving an urban-rural integrated model. As of June 30, 2025, it had **57** projects with a total investment of approximately **RMB 17.354 billion**, contributing approximately **HKD 1,021,719 thousands** in EBITDA during the period, a **15%** year-on-year increase - The Group primarily utilizes biomass raw materials for power generation and heating, and has developed a unique urban-rural integrated business model, combining biomass integrated utilization projects with waste-to-energy projects[51](index=51&type=chunk) - As of June 30, 2025, the Group owned a total of **57** biomass integrated utilization projects, with a total investment of approximately **RMB 17.354 billion** and a total designed installed capacity of **1,069 MW**[51](index=51&type=chunk) Biomass Integrated Utilization Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Grid-connected electricity (MWh) | 3,265,205 | 3,176,136 | 3% | | Biomass raw material processed (tons) | 3,742,000 | 3,883,000 | -4% | | Municipal solid waste processed (tons) | 2,074,000 | 2,057,000 | 1% | | Steam supplied (tons) | 1,773,000 | 1,328,000 | 34% | [Hazardous and Solid Waste Treatment](index=26&type=section&id=危廢及固廢處置) The Group's hazardous and solid waste treatment business covers incineration, landfill, physical-chemical treatment, and comprehensive utilization, capable of treating **44** categories of hazardous waste listed in the "National Hazardous Waste List". As of June 30, 2025, it had **48** projects with a total investment of approximately **RMB 11.257 billion**. During the period, this segment's EBITDA decreased by **76%** year-on-year and recorded a net loss, primarily due to weak market recovery, intensified competition, and asset disposal losses - The Group primarily engages in the safe disposal and comprehensive utilization of general industrial solid waste, hazardous waste, dead animals, etc., capable of safely disposing of **44** out of **46** categories of hazardous waste listed in the "National Hazardous Waste List"[54](index=54&type=chunk) - As of June 30, 2025, the Group owned a total of **48** hazardous and solid waste treatment projects, with a total investment of approximately **RMB 11.257 billion**[54](index=54&type=chunk) Hazardous and Solid Waste Treatment Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Hazardous and solid waste treated (tons) – Harmless disposal | 212,000 | 217,000 | -2% | | Hazardous and solid waste treated (tons) – Resource comprehensive utilization | 27,300 | 30,200 | -10% | | Resource utilization product sales (tons) | 7,300 | 6,500 | 12% | | Grid-connected electricity (MWh) | 13,039 | 14,023 | -7% | | Steam supplied (tons) | 403,000 | 379,000 | 6% | [Environmental Remediation](index=27&type=section&id=環境修復) The Group's environmental remediation business covers landfill ecological restoration, industrial contaminated site remediation, etc., possessing multiple professional qualifications. As of June 30, 2025, there were **19** projects under execution, with total contract amounts of approximately **RMB 814 million**. During the period, this segment recorded an EBITDA loss of approximately **HKD 59,052 thousands**, and net loss increased, mainly due to lower-than-expected market conditions and goodwill impairment - The Group's environmental remediation business primarily covers landfill ecological restoration, industrial contaminated site remediation, polluted farmland remediation, and river and lake sediment treatment[57](index=57&type=chunk) - As of June 30, 2025, the Group had a total of **19** environmental remediation projects under execution, with total contract amounts of approximately **RMB 814 million**[58](index=58&type=chunk) - The Group's environmental remediation projects recorded a loss before interest, tax, depreciation, and amortization of approximately **HKD 59,052 thousands**, an **820%** increase in loss from the prior period[59](index=59&type=chunk) - The increased loss was primarily due to the environmental remediation market conditions developing below expectations, continuous project operating losses, and goodwill impairment losses[59](index=59&type=chunk) [Photovoltaic and Wind Power Generation](index=28&type=section&id=光伏發電及風電) As of June 30, 2025, the Group's photovoltaic and wind power generation business had **33** photovoltaic projects and **2** wind power projects, with a total designed installed capacity of **246.66 MW**. During the period, both EBITDA and net profit for this segment decreased by **2%** year-on-year, mainly due to reduced grid-connected electricity from wind power projects and increased maintenance costs - As of June 30, 2025, the Group had a total of **33** operational and completed photovoltaic power projects and **2** operational wind power projects, with a total designed installed capacity of **246.66 MW**[60](index=60&type=chunk) - The Group's photovoltaic and wind power generation projects contributed approximately **HKD 86,761 thousands** in earnings before interest, tax, depreciation, and amortization, a **2%** decrease from the prior period[61](index=61&type=chunk) Photovoltaic and Wind Power Generation Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Grid-connected electricity (MWh) | 145,970 | 144,832 | 1% | [Business Outlook](index=29&type=section&id=業務展望) Looking ahead to 2025, the Group will adhere to the "seek progress while maintaining stability, promote stability through practical efforts" approach, focusing on the "clean energy" strategy, responding to policy changes, building a "traditional business strengthening + emerging areas breakthrough" dual-driven pattern, deepening regional synergy, and accelerating industrial upgrading, embarking on a new journey of "second entrepreneurship" [Macro Environment and Policy Trends](index=29&type=section&id=宏觀環境與政策趨勢) In 2025, the global economy will see a differentiated recovery amidst green transformation and geopolitical reshaping, as China concludes its "14th Five-Year Plan," ecological environment governance enters a new "precise, intelligent, systematic" stage, and new energy electricity price marketization reforms and "zero-carbon park" construction bring new development opportunities and challenges - **2025** marks the final year of the "14th Five-Year Plan" and a critical year for deeply integrating new quality productive forces with green development, as ecological environment governance enters a new stage of "precision, intelligence, and systematization"[65](index=65&type=chunk) - The National Development and Reform Commission and the National Energy Administration jointly issued a notice to promote the full market entry of new energy grid-connected electricity and establish a unified institutional framework for direct green power connections[65](index=65&type=chunk) - The "Notice on Carrying out Zero-Carbon Park Construction" clarifies "carbon emissions per unit of energy consumption" as a core indicator, which will further promote the energy structure transformation and green upgrading of industrial parks[65](index=65&type=chunk) [Strategic Direction and Future Plans](index=30&type=section&id=戰略方向與未來規劃) The Group will build a "traditional business strengthening + emerging areas breakthrough" dual-driven pattern, focusing on "cogeneration + green empowerment," expanding the heating market, extending the industrial chain to high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas, deepening regional synergy, accelerating the divestment of inefficient assets, and building a leader in the biomass energy industry with its "clean energy" strategy - The Group is focused on building a dual-driven pattern of "traditional business strengthening + emerging areas breakthrough," with "cogeneration + green empowerment" as its core direction[66](index=66&type=chunk) - Actively accelerated the expansion of heating users, broadened heating areas, and increased heating revenue to enhance cash flow; promoted the extension of the industrial chain to high-value-added segments, focusing on the implementation of high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas[66](index=66&type=chunk) - During the "15th Five-Year Plan" period, the Group will focus on the "clean energy" strategy, aiming to become a leading enterprise in China's biomass energy industry and build a new multi-energy complementary pattern of "green electricity + green steam + green hydrogen + green methanol"[67](index=67&type=chunk) [Financial Review](index=32&type=section&id=財務回顧) This section reviews the Group's financial position, financial resources, indebtedness, foreign exchange risk, pledge of assets, commitments, contingent liabilities, tax relief, and human resources as of June 30, 2025, indicating a robust asset-liability structure, good liquidity, and continuous optimization of financing structure [Financial Position](index=32&type=section&id=財務狀況) As of June 30, 2025, the Group's total assets were approximately **HKD 37,739,969 thousands**, net assets approximately **HKD 12,437,445 thousands**, and net asset value per share increased to **HKD 4.91**. The gearing ratio remained stable at **67.04%**, and the current ratio increased to **129.32%** Financial Position Summary (June 30, 2025) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total assets | 37,739,969 | 36,331,601 | +3.88% | | Net assets | 12,437,445 | 11,662,300 | +6.65% | | Net asset value per share attributable to equity holders of the Company | 4.91 HKD | 4.65 HKD | +5.59% | | Gearing ratio | 67.04% | 67.90% | -0.86 percentage points | | Current ratio | 129.32% | 125.40% | +3.92 percentage points | - The gearing ratio remained stable, primarily benefiting from the company's cautious investment strategy amidst economic uncertainties[69](index=69&type=chunk) [Financial Resources](index=32&type=section&id=財務資源) The Group adopted prudent principles for cash and financial management; as of June 30, 2025, cash and bank balances were approximately **HKD 2,610,492 thousands**, an increase of approximately **HKD 936,776 thousands** from end-2024, with primary funding sources being medium-term notes, internal cash flow, and bank loans - The Group adopted prudent principles for cash and financial management, effectively managing risks and reducing funding costs[70](index=70&type=chunk) - As of June 30, 2025, the Group held cash and bank balances of approximately **HKD 2,610,492 thousands**, an increase of approximately **HKD 936,776 thousands** from end-2024[70](index=70&type=chunk) - Working capital primarily originated from proceeds from medium-term note issuance, internal cash flow, and bank loans[70](index=70&type=chunk) [Indebtedness](index=32&type=section&id=負債狀況) As of June 30, 2025, the Group's total outstanding loans were approximately **HKD 21,913,625 thousands**, with **52%** at fixed interest rates and **48%** at floating interest rates. Bank financing facilities were ample, with unused facilities of approximately **HKD 7,081,449 thousands** - As of June 30, 2025, the Group's total outstanding loans were approximately **HKD 21,913,625 thousands**, an increase of approximately **HKD 913,473 thousands** from end-2024[71](index=71&type=chunk) - The Group's fixed-rate and floating-rate loans accounted for **52%** and **48%**, respectively[71](index=71&type=chunk) Maturity Profile of Interest-Bearing Bank and Other Borrowings (HKD millions) | Maturity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 8,901 | 7,718 | | In the 2nd year | 4,702 | 4,787 | | In the 3rd to 5th year | 5,782 | 5,571 | | After the 5th year | 2,529 | 2,924 | | Total | 21,914 | 21,000 | [Foreign Exchange Risk](index=33&type=section&id=外匯風險) The Group's primary operations are in mainland China, with most assets, loans, and transactions denominated in RMB, creating a natural hedge, and foreign exchange risk is managed through appropriate matching of currency loans and financial instruments - The Group has foreign exchange risk from investments outside Hong Kong (including mainland China), but China is the Group's primary business location, accounting for over **95%** of total investments and revenue[73](index=73&type=chunk) - Most of the Group's assets, loans, and major transactions are denominated in RMB, essentially forming a natural hedge[73](index=73&type=chunk) [Pledge of Assets](index=33&type=section&id=資產抵押) As of June 30, 2025, the Group's total net book value of pledged assets was approximately **HKD 17,888,150 thousands**, primarily used for bank financing and other loans - The total net book value of pledged assets was approximately **HKD 17,888,150 thousands** (December 31, 2024: **HKD 17,920,001 thousands**)[74](index=74&type=chunk) - Pledged assets include certain revenue rights related to the Group's service concession arrangements, contract assets, intangible assets and receivables, bank deposits, the Group's property, plant and equipment, and right-of-use assets[74](index=74&type=chunk) [Commitments](index=34&type=section&id=承擔) As of June 30, 2025, the Group had purchase commitments contracted for construction contracts of approximately **HKD 36,885 thousands**, and capital commitments related to investments in joint ventures, associates, and financial asset entities of approximately **HKD 45,558 thousands** - As of June 30, 2025, the Group had purchase commitments contracted for construction contracts of approximately **HKD 36,885 thousands**[75](index=75&type=chunk) - Capital commitments related to investments in joint ventures, associates, and financial asset entities amounted to **HKD 45,558 thousands**[75](index=75&type=chunk) [Contingent Liabilities](index=34&type=section&id=或有負債) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[76](index=76&type=chunk) [Tax Relief and Exemptions](index=34&type=section&id=稅務寬減及豁免) The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their holding of the Company's shares - The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their holding of the Company's shares[77](index=77&type=chunk) [Human Resources](index=34&type=section&id=人力資源) As of June 30, 2025, the Group employed over **3,200** staff in Hong Kong and mainland China, with total staff costs of approximately **HKD 294,243 thousands**, and provided continuous training and other benefits - As of June 30, 2025, the Group employed over **3,200** staff in Hong Kong and mainland China[78](index=78&type=chunk) - Total staff costs for the six months ended June 30, 2025, were approximately **HKD 294,243 thousands**[78](index=78&type=chunk) [Other Information](index=34&type=section&id=其他資料) This section covers other important information regarding the Group's corporate governance, compliance with the standard code for securities transactions by directors, interim dividend distribution, closure of register of members, dealings in listed securities, and publication of interim report and board members [Corporate Governance](index=34&type=section&id=企業管治) The Group is committed to maintaining robust corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and complied with all applicable code provisions during the reporting period - The Group has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its corporate governance practice code[79](index=79&type=chunk) - For the six months ended June 30, 2025, the Company complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code[79](index=79&type=chunk) [Standard Code for Securities Transactions by Directors](index=35&type=section&id=董事進行證券交易之標準守則) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules and confirmed that all Directors complied with the code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' securities transactions[80](index=80&type=chunk) - Following specific enquiries made to all Directors, the Company confirmed that they had complied with the required standards set out in the Standard Code throughout the review period[80](index=80&type=chunk) [Interim Dividend](index=35&type=section&id=中期股息) The Board declared an interim dividend of **2.8 HK cents** per share for the six months ended June 30, 2025, with a payout ratio of **30.32%**, payable on or about October 14, 2025 - The Board declared an interim dividend of **2.8 HK cents** per share for the six months ended June 30, 2025 (2024: **1.4 HK cents** per share)[81](index=81&type=chunk) - The interim dividend payout ratio for the six months ended June 30, 2025, was **30.32%** (2024: **20.1%**)[81](index=81&type=chunk) - The interim dividend will be paid in cash on or about Tuesday, October 14, 2025[81](index=81&type=chunk) [Closure of Register of Members](index=35&type=section&id=暫停辦理股份過戶登記) To qualify for the interim dividend, the Company will suspend its register of members from September 19 to September 23, 2025, with all share transfer documents to be lodged with the Hong Kong share registrar by 4:30 p.m. on September 18, 2025 - The Company's register of members will be closed from Friday, September 19, 2025, to Tuesday, September 23, 2025 (both dates inclusive)[82](index=82&type=chunk) - To qualify for the interim dividend, all share transfer documents and relevant share certificates must be lodged with the Company's Hong Kong share registrar by **4:30 p.m.** on Thursday, September 18, 2025[82](index=82&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=購買%E3%80%81出售或贖回本公司之上市證券) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[83](index=83&type=chunk) [Publication and Despatch of Interim Report](index=36&type=section&id=刊載及寄發中期報告) The Company's interim results announcement for the six months ended June 30, 2025, has been published on the HKEX and company websites, and the interim report will be published and despatched to shareholders who have opted for printed copies in due course - The Company's interim results announcement for the six months ended June 30, 2025, has been published on the Hong Kong Stock Exchange and the Company's website[84](index=84&type=chunk) - The Company's 2025 interim report will be published on the HKEX and the Company's website and despatched to shareholders who have opted for printed copies in due course[84](index=84&type=chunk) [Board of Directors](index=36&type=section&id=董事會成員) As of the announcement date, the Board of Directors includes Mr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (CEO, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), and Mr. Zou Xiaolei, Professor Yan Houmin, Mr. Li Huaqiang (Independent Non-executive Directors) - The Board of Directors includes Mr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (CEO, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), Mr. Zou Xiaolei (Independent Non-executive Director), Professor Yan Houmin (Independent Non-executive Director), and Mr. Li Huaqiang (Independent Non-executive Director)[86](index=86&type=chunk)

致：香港交易及結算所有限公司 公司名稱: 中國光大綠色環保有限公司 (於開曼群島註冊成立之有限公司) FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01257 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.1 | USD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | 0 | | 本月底結存 | | | 5,000,000,000 | USD | | 0.1 | USD ...

Group 1: Major Contracts and Financial Performance - China Railway Group (00390.HK) recently won multiple major engineering contracts with a total bid amount of approximately RMB 91.2 billion, accounting for about 8.52% of the company's revenue under Chinese accounting standards for 2021 [1] - China People's Insurance Group (01339.HK) reported a total insurance premium income of RMB 452.46 billion from January to August 2022, representing a year-on-year growth of 9.89% [2] - China Coal Energy (01898.HK) announced that its coal sales volume in August reached 25.96 million tons, a year-on-year increase of 1.3%, while coal production was 10.92 million tons, up 22.3% year-on-year [3] Group 2: Share Buybacks and Stake Increases - Bohai Bank (09668.HK) announced that several employees plan to voluntarily purchase at least 25 million H-shares using their own funds, reflecting confidence in the bank's long-term business development [4] - China Communications Construction (01800.HK) disclosed that its controlling shareholder has cumulatively increased its stake by approximately 264.47 million H-shares, representing 1.64% of the company's total issued shares [5] - Shougang Holding (00697.HK) reported that its major shareholder has entered into an agreement to sell 728 million shares to Beijing Guoguan Investment Holdings, which will acquire about 10% of the company's total issued shares [6] Group 3: Market Activities and Corporate Actions - Jianye Real Estate (00832.HK) announced plans to repurchase shares in the open market based on market conditions [7] - China Pacific Insurance (02601.HK) reported cumulative original insurance business income of RMB 290.9 billion from January to August [8] - China Property & Casualty Insurance (02328.HK) reported a premium income of RMB 340.25 billion from January to August, reflecting a year-on-year growth of 9.8% [9]

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].