Business Overview - China Everbright Greentech focuses on integrated biomass utilization, hazardous and solid waste treatment, environmental remediation, solar energy, and wind power[1]. - The company has business coverage across 14 provinces and autonomous regions in China, as well as in Germany[1]. - The group aims to become a leader in China's environmental business sector, supported by China Everbright Group Limited and China Everbright International Limited[2]. - The company emphasizes a development strategy that is "Prudent, Proactive and Practical" to fulfill its mission[2]. - The group has a diversified project portfolio and extensive experience in project development and operation[2]. - The company is committed to business innovations and has pioneered integrated urban and rural waste treatment projects in Mainland China[1]. Financial Performance - The financial highlights and performance metrics for 2019 are detailed in the annual report, including consolidated statements of profit or loss and financial position[4]. - Revenue increased by 33% to HK$9,279,555,000 from HK$7,001,820,000[7]. - Profit attributable to equity shareholders rose by 33% to HK$2,161,227,000, with EBITDA reaching HK$2,876,139,000, a 33% increase[7]. - Basic earnings per share increased by 22% to 78.48 HK cents from 64.12 HK cents[7]. - Total assets grew by 41% to HK$26,258,315,000, compared to HK$18,602,802,000[7]. - Total liabilities increased by 71% to HK$15,670,963,000 from HK$9,171,728,000[7]. - Cash and bank balances rose by 28% to HK$2,897,486,000 from HK$2,260,833,000[7]. - The gearing ratio increased by 10.4 percentage points to 59.7%[7]. Project Development and Achievements - The company secured multiple projects, including the Huaiyuan Hazardous Waste Landfill Project and the Yeji Biomass Electricity and Heat Cogeneration Project, expanding its market presence[12][13]. - The company completed and commenced operation of the Weihai Biomass Electricity and Heat Cogeneration Project and the Zhongxiang Integrated Biomass and Waste-to-Energy Project in 2019[18]. - The company secured the Wenling Hazardous Waste Integrated Treatment Project in Zhejiang Province, with an investment of approximately RMB1.366 billion[19]. - The company achieved a 50% increase in on-grid electricity generation and a 125% increase in steam supply from its 32 integrated biomass utilization projects compared to 2018[23]. - The volume of hazardous waste treatment increased by 45% compared to 2018, with 20 operating and completed hazardous and solid waste treatment projects[23]. - The company secured 23 new projects and entered into 5 supplemental agreements in 2019, involving total investments of approximately RMB5.702 billion and new environmental remediation contracts amounting to approximately RMB113 million[23]. - The company was awarded multiple accolades in 2019, including the "InnoESG Prize 2019" and recognition as "Hong Kong Outstanding Enterprises 2019" by Economic Digest[26]. Sustainability and Corporate Governance - The annual report includes a summary of sustainability efforts and corporate governance practices[4]. - The company was recognized in the Hang Seng Corporate Sustainability Benchmark Index, highlighting its commitment to sustainability[17]. - The Group's environmental data, including flue emissions and sewage discharge, was linked to government platforms for real-time public supervision[57]. - The Group's initiatives in environmental protection and community contributions were acknowledged, reinforcing its commitment to sustainable development[55]. Risk Management and Compliance - The Group implemented a "dual prevention mechanism" for safety risk control and environmental management, enhancing safety conditions at project sites[50]. - The Group's risk management system was enhanced with the formulation of a new "Risk Management System," effectively lowering the probability of risks occurring[52]. - The Group has emphasized the use of information technology to enhance the standardization and sophistication of operation management[142]. - The Group's risk management systems were improved to identify and assess significant risks, including changes in environmental policies and market competition[152]. Employee and Community Engagement - The Group employed over 3,000 employees in Hong Kong and Mainland China as of December 31, 2019[151]. - The total staff cost for the Group was approximately HK$590,478,000 as of December 31, 2019, compared to HK$446,230,000 as of December 31, 2018, reflecting an increase of about 32.3%[151]. - The integrated biomass utilization projects provided over 100,000 job positions for local communities and generated approximately RMB 1.564 billion in revenue for local farmers[195]. - The Guanyun Project aimed to turn waste into valuable resources, revitalizing the rural economy and providing employment opportunities, addressing the "Three Rural Issues"[195]. - The Group's initiatives in targeted poverty alleviation included purchasing biomass waste from impoverished families at higher prices, increasing their income and contributing to hunger alleviation[195]. Future Plans and Strategic Focus - The Group plans to implement principles of "progress in stability, opportunities amidst changes, and innovation through progress" in 2020 to address upcoming opportunities and challenges in the environmental sector[27]. - The Group aims to enhance its hazardous and solid waste treatment business, increasing its share in the principal businesses[103]. - The Group plans to transition its integrated biomass utilization business to electricity and heat cogeneration and high value-added businesses[103]. - The Group is actively seeking projects that align with national industrial policies and are commercially viable to achieve business transformation[104]. - The Group aims to optimize its business structure and promote high value-added services in biomass utilization to enhance shareholder returns[110].

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$4,241,430, representing a 35% increase from HK$3,152,907 in the same period of 2018[7] - EBITDA for the same period was HK$1,369,150, up 33% from HK$1,029,065 in 2018[7] - Profit attributable to equity shareholders increased by 26% to HK$813,184 from HK$644,703 in 2018[7] - Basic earnings per share increased by 26% to 39.36 HK cents from 31.20 HK cents in 2018[7] - Profit for the period reached HK$826,361,000, a 27.5% increase from HK$647,977,000 in 2018[116] - Total comprehensive income for the period was HK$752,939,000, down from HK$811,424,000 in 2018, primarily due to exchange differences[119] - The profit attributable to equity shareholders for the six months ended June 30, 2019, was HK$813,184,000, an increase of 26.1% compared to HK$644,703,000 for the same period in 2018[182] Assets and Liabilities - Total assets as of June 30, 2019, were HK$22,596,446, a 21% increase from HK$18,602,802 at the end of 2018[7] - Outstanding borrowings increased to approximately HK$8,356,566,000 as of June 30, 2019, up approximately HK$2,350,007,000 from HK$6,006,559,000 at the end of 2018[72] - The total liabilities increased to HK$16,472,701 from HK$11,007,402, indicating a rise of approximately 49.4%[125] - The net asset value per share attributable to equity shareholders increased by 6% to HK$4.81 per share from HK$4.52 per share at the end of 2018[71] - The Group's gearing ratio increased to 55% as of June 30, 2019, up 6 percentage points from 49% at the end of 2018[71] Cash Flow and Financing - Cash and bank balances were HK$2,345,388, with a gearing ratio of 55% and a current ratio of 163%[7] - The Group has maintained ample cash flow and access to various financing options, indicating sound financial health[24] - Net cash generated from financing activities was HK$2,591,696,000 in the first half of 2019, compared to HK$595,602,000 in the same period of 2018, reflecting a substantial increase in bank loans[132] - The company paid HK$134,295,000 in dividends to equity shareholders, a decrease from HK$185,947,000 in the previous year, reflecting a strategic decision to retain more cash[132] Environmental Projects and Operations - The Group had 106 environmental protection projects with a total investment of approximately RMB28.083 billion as of June 30, 2019[11] - The Group undertook 24 environmental remediation projects with a total contract amount of approximately RMB656 million[11] - The Group's designed power generation capacity increased by 7 MW, biomass processing capacity by approximately 120,000 tonnes per year, steam supply capacity by approximately 775,200 tonnes per year, and hazardous and solid waste treatment capacity by approximately 675,000 tonnes per year[15] - The Group processed approximately 2,020,000 tonnes of biomass raw materials, an increase of 54% year-over-year[42] - The Group's environmental remediation projects increased from 2 to 20 projects compared to the previous year, contributing to the significant profit growth[58] Government Support and Grants - The Group received government grants totaling approximately RMB74,668,000 and VAT refunds of approximately RMB24,453,000 in the first half of 2019[37] - The company received government grants totaling HK$25,605,000 during the six months ended June 30, 2019, compared to HK$14,128,000 in 2018[180] - Value-added tax refunds amounted to HK$28,172,000 for the six months ended June 30, 2019, slightly up from HK$27,621,000 in 2018[180] Corporate Governance and Compliance - The company aims to enhance corporate governance to safeguard shareholders' interests and improve corporate value[98] - The Company has been in full compliance with the Corporate Governance Code from January 1, 2019, to June 30, 2019[99] - The audit and risk management committee consists of 3 independent non-executive directors, responsible for reviewing the effectiveness of financial reporting and risk management systems[102] Market and Industry Outlook - The environmental protection industry is expected to thrive due to ongoing demand for environmental treatment services and government initiatives[9] - The Group aims to extend its industry chain, penetrate deeper into market shares, and widen its business scope through technology and innovation[66] - Future outlook includes further investments in environmental projects and technology advancements to enhance operational efficiency[167] Employee and Staff Costs - The total staff cost for the six months ended June 30, 2019, was approximately HK$231,168,000, compared to HK$177,176,000 for the same period in 2018[82] - The Group employed over 3,000 employees in Hong Kong and Mainland China as of June 30, 2019[82]

ULT I I 光大綠色環保 Everbright Greentech 股份代號 Stock Code: 1257 (於開曼群島註冊成立之有限公司) (Incorporated in the Cayman Islands with limited liability) 6 6 6 H ANNUAL REPORT 年報 2018 LAYING A SOLID FOUNDATION AND KEEPING PACE WITH TIMES 牢築根基 · 與時俱進 CORPORATE PROFILE 公司简介 China Everbright Greentech Limited ("Everbright Greentech" or the "Company" or together with its subsidiaries, the "Group") is a professional environmental protection service provider, with its businesses focusing on integrated biomass utilisation, hazardous ...