Business Development and Strategy - In 2024, the company focused on high-quality development and deepened reforms, achieving stable growth in main businesses and increasing market share[8]. - The company aims to develop four major industrial sectors: in-depth environmental treatment, environmental protection product manufacturing, new energy technology services, and resource recycling by 2025[10]. - The company is committed to improving quality and efficiency, consolidating competitive advantages in traditional industries, and advancing technological innovation[10]. - The company plans to establish three platforms for innovative research, investment in strategic emerging industries, and engineering consulting services[10]. - The company is positioned as the sole platform for environmental protection and energy conservation business under China Datang Corporation[16]. - The Group plans to actively explore clients in the iron and steel, cement, and petrochemical industries to diversify its client base[142]. - The Group aims to improve quality and efficiency, consolidating competitive advantages in traditional industries by enhancing value creation capabilities and optimizing procurement strategies for bulk materials[145]. - The Group plans to deepen its traditional environmental protection business, focusing on expanding the scale of liquid ammonia to urea and zero wastewater discharge projects[145]. - The Group will expand its franchise business by actively pursuing incremental projects in Chaozhou, Lvsi, and Sanmenxia, aiming for steady growth in profitability[145]. Financial Performance - For the year ended 31 December 2024, the Group's revenue amounted to RMB 5,770.9 million, representing an increase of 0.9% compared to the previous year[21]. - The gross profit for the year ended 31 December 2024 was RMB 1,229.4 million, reflecting a 7.4% increase year-over-year, with a gross profit margin of 21.3%, up by 1.3 percentage points[21]. - Total comprehensive income attributable to owners of the parent for the year ended 31 December 2024 was RMB 548.4 million, an increase of 4.9% compared to the previous year[21]. - The Group's profit for 2024 amounted to RMB 552.4 million, representing an increase of RMB 48.8 million, or 9.7%, from RMB 503.6 million in 2023[75]. - Profit before tax increased by 6.1% to RMB 655.1 million in 2024 from RMB 617.6 million in 2023[91][97]. - Profit attributable to owners of the parent increased by RMB 26.7 million to RMB 549.1 million in 2024 from RMB 522.4 million in 2023[94][100]. - The Group's return on total assets for 2024 was 3.6%, an increase from 2.8% in 2023[75]. - The Group's cash and cash equivalents decreased by 43.5% to RMB 994.7 million as of December 31, 2024, down from RMB 1,759.4 million as of December 31, 2023[111]. - Total assets decreased by 14.9% to RMB 15,348.1 million as of December 31, 2024, compared to RMB 18,045.1 million as of December 31, 2023[75]. Market Position and Industry Outlook - The Group maintained its position as the largest desulfurization and denitrification concession operator and the largest manufacturer of denitrification catalysts in the PRC[21]. - The environmental protection industry is projected to reach a scale of approximately RMB 15 trillion by 2030, indicating significant growth potential for the Group's related business[28]. - The environmental protection industry is projected to reach approximately RMB 15 trillion by 2030, driven by comprehensive green transformation initiatives[29]. - The Group's customers are spread across 30 provinces in the PRC and eight overseas countries, highlighting its extensive market reach[26]. - The Group's environmental protection facility concession operation business is strategically located in economically developed areas with high electricity demand, enhancing its operational efficiency[36]. Technological Innovation and Development - The company built an initial honeycomb catalyst product library and developed a 70-hole honeycomb catalyst, overcoming key technological bottlenecks[9]. - Significant progress was made in carbon monitoring, resource recycling, and solid waste disposal, supporting sustainable development[9]. - The Group's strategic focus on green recycling aligns with national policies aimed at enhancing resource recycling quality and efficiency[30]. - The Group intends to enhance its research and development capabilities in the new catalyst industry, aiming to develop catalysts for marine diesel engines and achieve SCR certification[149]. - The Group will accelerate the implementation of resource recycling projects, including the recycling of retired wind turbine blades and solid waste disposal projects, to meet the business needs of wind farms[149]. Shareholder and Dividend Information - As of December 31, 2024, the company had issued a total of 2,967,542,000 shares, with the controlling shareholder, China Datang, holding approximately 78.96%[15]. - The Board proposed a final dividend of RMB 0.051 per ordinary share (before tax) for the year ended 31 December 2024[21]. - The proposed final dividend for the year ended December 31, 2024, is RMB 0.051 per ordinary share, compared to RMB 0.076 per share for the year ended December 31, 2023[186]. Risk Management and Compliance - The company has implemented risk management and internal control measures to ensure compliance with relevant laws and regulations[167]. - The Group's exposure to foreign currency risk was deemed insignificant for the years ended December 31, 2024, and December 31, 2023[134]. - The Group's ability to generate adequate cash inflows from operating activities will depend largely on project schedules and timely collection of receivables[141]. Environmental and Social Responsibility - The company actively fulfilled its social responsibilities in 2024, focusing on sustainable development and cooperation with stakeholders[162]. - The Group's management believes that the PRC government is unlikely to revise environmental protection policies adversely, given the severity of pollution issues[137].

Financial Performance - For the year ending December 31, 2024, the group's revenue was RMB 5,770.9 million, an increase of 0.9% compared to the previous year[4] - The group's gross profit for the year was RMB 1,229.4 million, up 7.4% year-on-year, with a gross profit margin of 21.3%, an increase of 1.3 percentage points[4] - The total comprehensive income attributable to equity holders of the parent company was RMB 548.4 million, reflecting a 4.9% increase from the previous year[4] - The net profit for the year was RMB 552.4 million, compared to RMB 503.6 million in the previous year[6] - The company's net profit for the year ended December 31, 2024, was RMB 549,061,000, an increase from RMB 522,375,000 in the previous year, representing a growth of approximately 5.1%[9] - Total comprehensive income for the year was RMB 548,352,000, compared to RMB 522,586,000 in the previous year, indicating an increase of about 4.9%[9] - The basic and diluted earnings per share attributable to ordinary shareholders was RMB 0.19, compared to RMB 0.18 in the previous year[6] - The group’s profit for 2024 was RMB 552.4 million, an increase of RMB 48.8 million (or 9.7%) compared to RMB 503.6 million in 2023[92] - Profit before tax increased by 6.1% from RMB 617.6 million in 2023 to RMB 655.1 million in 2024[100] - Net profit increased by RMB 48.8 million to RMB 552.4 million in 2024, with the profit margin rising to 9.6% from 8.8% in 2023[102] Dividends - The board proposed a final dividend of RMB 0.051 per ordinary share (pre-tax) for the year ending December 31, 2024[4] - The company declared a final dividend of RMB 314,500,000 for the year, compared to RMB 148,377,000 in the previous year, representing an increase of about 111.2%[11] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.051 per share, a decrease from RMB 0.076 per share for the previous year[127] - The interim dividend for 2024 is set at RMB 0.03 per share, totaling RMB 88,953,000[50] Assets and Liabilities - The total assets less current liabilities amounted to RMB 9,013.9 million, compared to RMB 9,306.1 million in the previous year[8] - Current liabilities decreased to RMB 6,334.1 million from RMB 8,739.0 million in the previous year[8] - Non-current assets totaled RMB 6,796.4 million, down from RMB 7,292.1 million in the previous year[7] - The total assets of the group amounted to RMB 15,348,073 thousand as of December 31, 2024[30] - The total liabilities as of December 31, 2024, amounted to RMB 7,838,479 thousand, a decrease from RMB 10,763,498 thousand in the previous year[33] - The total liabilities decreased by 27.2% from RMB 10,763.5 million at the end of 2023 to RMB 7,838.5 million at the end of 2024[92] Cash Flow - Cash generated from operating activities was RMB 1,840,770,000, slightly down from RMB 1,906,327,000 in the previous year, reflecting a decrease of approximately 3.4%[10] - The company reported a decrease in cash flow from investing activities, with a net outflow of RMB 340,970,000 compared to RMB 560,210,000 in the previous year, a reduction of about 39.1%[11] - Financing activities resulted in a net cash outflow of RMB 2,139,909,000, significantly higher than the previous year's outflow of RMB 364,157,000, indicating a substantial increase in financing costs[11] - The company’s cash and cash equivalents at the end of the year were RMB 994,747,000, down from RMB 1,759,357,000 at the beginning of the year, reflecting a decrease of approximately 43.4%[11] - Operating cash flow for the group was RMB 1,702.8 million for the year ending December 31, 2024, with a significant reliance on project timelines and collection of receivables for future cash flow[121] Segment Performance - The environmental energy solutions segment generated revenue of RMB 5,497,468 thousand, accounting for approximately 95.3% of total revenue[30] - The renewable energy engineering segment reported revenue of RMB 252,259 thousand, representing a smaller portion of the overall revenue[30] - The group incurred a loss of RMB 128,515 thousand in the other business segment, impacting overall profitability[30] - The segment revenue from Environmental Solutions was RMB 5,497,468 thousand, while Renewable Energy Engineering contributed RMB 252,259 thousand for the year ended December 31, 2024[37] - Revenue from energy-saving solutions increased by 2.4% to RMB 5,497.5 million in 2024, accounting for 94.7% of total revenue[105] Research and Development - The company has allocated HKD 1,219.50 million for expanding its desulfurization and denitrification business, which has been fully utilized[134] - Research and development expenses amounted to HKD 101.60 million, with HKD 75.11 million actually used, and an expected remaining balance of HKD 18.49 million to be utilized by December 2025[134] - The group obtained 45 patent authorizations in 2024, including 36 invention patents[90] Market Position and Strategy - The company maintained its position as the largest desulfurization and denitrification operator and the largest denitrification catalyst manufacturer in the People's Republic of China[4] - The company operates in various sectors including environmental facility operation, denitration catalyst production and sales, water services, energy-saving engineering, and renewable energy projects[12] - The environmental protection industry is projected to reach a scale of approximately RMB 15 trillion by 2030, indicating significant growth potential for the company's related business[71] - The company is expanding its business in the recycling of retired wind turbine blades, waste photovoltaic panels, and energy storage batteries, guided by recent government policies promoting resource recycling[72] - The company is actively involved in the development of a clean, low-carbon, safe, and efficient new energy system, aligning with national carbon neutrality goals[73] Compliance and Governance - The company has adopted revised International Financial Reporting Standards (IFRS) for the fiscal year ending December 31, 2024, with no significant impact on financial statements[15] - The company has adhered to the corporate governance code and has not faced any significant legal lawsuits requiring board member accountability during the reporting period[128] - The chairman, Mr. Zhu, is also acting as the general manager following the resignation of the previous general manager in September 2023, which deviates from the corporate governance code[129] - The audit committee has reviewed the annual performance and the consolidated financial statements prepared in accordance with international financial reporting standards[132]

Financial Performance - For the six months ended June 30, 2024, the company's revenue was RMB 2,603,089,000, an increase of 4.2% compared to RMB 2,499,180,000 in the same period of 2023[7]. - Gross profit for the same period was RMB 642,493,000, up 24.2% from RMB 517,157,000 in 2023[7]. - Profit for the period reached RMB 408,924,000, representing a significant increase of 51.6% compared to RMB 270,119,000 in the previous year[9]. - Earnings per share attributable to ordinary equity holders of the parent increased to RMB 0.13, compared to RMB 0.09 in the same period last year[9]. - Total comprehensive income for the period was RMB 407,598,000, compared to RMB 268,134,000 in 2023, reflecting a growth of 52.1%[8]. - The company reported a profit before tax of RMB 477,999,000, an increase from RMB 319,354,000 in the same period of 2023[7]. - The Group's profit for the six months ended 30 June 2024 amounted to RMB 408.9 million, an increase of RMB 138.8 million from RMB 270.1 million for the same period in 2023[37]. - Profit before tax increased by 49.7% to RMB 478.0 million for the six months ended 30 June 2024, compared to RMB 319.4 million for the same period in 2023[43]. - Profit for the period increased by 51.4% from RMB 270.1 million for the six months ended 30 June 2023 to RMB 408.9 million for the six months ended 30 June 2024[43]. Assets and Liabilities - Total current assets decreased to RMB 9,859,952, down 8.3% from RMB 10,752,980 as of December 31, 2023[10]. - Total liabilities decreased to RMB 9,450,013, down 8.8% from RMB 10,763,498 as of December 31, 2023[10]. - The Group's total assets decreased to RMB 16,897,809, down 6.4% from RMB 18,045,122 as of December 31, 2023[10]. - Total current liabilities decreased to RMB 7,464,591, down 14.6% from RMB 8,739,021 as of December 31, 2023[10]. - The Group's total equity increased to RMB 7,447,796, up 2.3% from RMB 7,281,624 as of December 31, 2023[10]. - The Group's cash and cash equivalents decreased by 12.5% to RMB 1,538.7 million as of June 30, 2024, compared to RMB 1,759.4 million as of December 31, 2023[50]. - The Group's total liabilities decreased by 12.2% to RMB 9,450.0 million as of June 30, 2024, down from RMB 10,763.5 million as of December 31, 2023[39]. - The Group's return on total assets for the six months ended 30 June 2024 was 2.42%, compared to 1.46% for the same period in 2023[39]. Cash Flow - Net cash flows generated from operating activities increased to RMB 539,133, up 40.2% from RMB 384,924 in the same period of 2023[11]. - Net cash flows used in investing activities improved to RMB (135,412), a decrease of 12.1% from RMB (154,109) in the same period of 2023[11]. - Cash and cash equivalents at the end of the period stood at RMB 1,538,656 thousand, up from RMB 1,092,443 thousand, reflecting an increase of approximately 40.5%[147]. - The company reported a decrease in cash and cash equivalents of RMB (220,735) thousand for the current period, contrasting with an increase of RMB 219,994 thousand in the previous period[147]. Business Operations - The company operates primarily in environmental protection and energy conservation, with key business segments including water treatment and renewable energy engineering[5]. - The Group operates in over 30 provinces and 7 countries, providing environmental protection solutions for coal-fired power generation enterprises[12]. - The energy conservation and environmental protection industry is projected to reach approximately RMB 15 trillion by 2030, an increase of RMB 6 trillion compared to 2023[15]. - The Group's revenue from concession operations is directly affected by the power generation output of coal-fired power plants, which is a significant part of its business focus[55]. - The Group is actively developing its overseas business, particularly in countries along the "Belt and Road" route, and has established mature risk management systems to mitigate associated risks[56]. Shareholder Information - The controlling shareholder, China Datang, holds approximately 78.96% of the total issued shares as of June 30, 2024[5]. - As of June 30, 2024, the total number of shares is 2,967,542,000, with domestic shares at 2,343,245,800 and H shares at 624,296,200[68]. - The proposed interim dividend for the six months ended June 30, 2024, is RMB 0.03 per share, totaling approximately RMB 89,026,260 before tax, based on 2,967,542,000 shares issued as of June 30, 2024[82]. Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period, with no deviations noted[78]. - Mr. Zhu Liming served as both the chairman and acting general manager during the reporting period, which deviated from the Corporate Governance Code provision C.2.1[79]. - The company will continue to review the current structure of the Board to ensure proper checks and balances[79]. - The company has adopted the Model Code for dealing in its securities, and all Directors and Supervisors confirmed compliance during the reporting period[80]. Research and Development - The Group obtained 18 patents in the first half of 2024, all of which were invention patents, bringing the total to 1,229 patents in force[33]. - The company aims to advance the development of high-porosity honeycomb catalyst technology and new products such as medium and low-temperature honeycomb catalysts[62]. - The company is focusing on developing industrial and commercial distributed photovoltaics and user-side energy storage projects to promote coordinated development of clean energy solutions[63]. Market Trends and Future Outlook - The low-carbon transformation plan provides a clear direction for the Company to explore new avenues in environmental protection operations and construction businesses[20]. - The management believes that coal-fired power generation will continue to dominate the market in the PRC, despite concerns over environmental issues[55]. - The ongoing development of new technologies and products in the renewable energy sector reflects the Group's strategy for future growth and market expansion[157].

Financial Performance - For the six months ended June 30, 2024, the group's revenue was RMB 2,603.1 million, an increase of 4.2% compared to the same period last year[1]. - The gross profit for the same period was RMB 642.5 million, with a gross profit margin of 24.7%, which is an increase of 4 percentage points year-on-year[1]. - The total comprehensive income attributable to the owners of the parent company was RMB 398.9 million, representing a significant increase of 50.5% compared to the previous year[1]. - The net profit for the period was RMB 408.9 million, compared to RMB 270.1 million in the same period last year, reflecting a year-on-year increase of 51.5%[2]. - The total comprehensive income for the six months ended June 30, 2024, was RMB 398,948,000, compared to RMB 265,109,000 for the same period in 2023, showing a growth of approximately 50%[6]. - The profit attributable to the parent company's owners increased by 50.2% to RMB 399.9 million for the six months ended June 30, 2024, from RMB 266.2 million in the same period of 2023[92]. - The group's pre-tax profit increased by 49.7% to RMB 478.0 million for the six months ended June 30, 2024, from RMB 319.4 million in the same period of 2023[89]. Dividends - The board proposed an interim dividend of RMB 0.03 per share for the six months ended June 30, 2024, subject to shareholder approval[1]. - The company plans to distribute a cash dividend of RMB 0.03 per share for the six months ended June 30, 2024, amounting to RMB 89,026,260, pending shareholder approval[28]. - The company declared a final dividend of RMB 225,533,000 for the year 2023, reflecting a commitment to returning value to shareholders despite the operational challenges[6]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 9,433.2 million as of June 30, 2024, compared to RMB 9,306.1 million as of December 31, 2023[4]. - Non-current assets totaled RMB 7,037.9 million as of June 30, 2024, down from RMB 7,292.1 million at the end of the previous year[4]. - Current liabilities decreased to RMB 7,464.6 million from RMB 8,739.0 million as of December 31, 2023[4]. - As of June 30, 2024, the total equity amounted to RMB 7,447,796,000, an increase from RMB 6,896,749,000 as of January 1, 2023, reflecting a growth of approximately 8%[6]. - The total assets of the group as of June 30, 2024, were RMB 16,897,809 thousand, with total liabilities amounting to RMB 9,450,013 thousand[18]. - Total liabilities decreased by 12.2% to RMB 9,450.0 million as of June 30, 2024, from RMB 10,763.5 million as of December 31, 2023[81]. Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 539,133,000, compared to RMB 384,924,000 for the same period in 2023, representing an increase of about 40%[7]. - The company reported a net cash outflow from investing activities of RMB 135,412,000 for the first half of 2024, a slight improvement from RMB 154,109,000 in the previous year[7]. - Financing activities resulted in a net cash outflow of RMB 624,456,000 for the six months ended June 30, 2024, compared to RMB 10,821,000 in the same period of 2023, indicating a significant increase in financing costs[7]. - Cash and cash equivalents stood at RMB 1,538,657 thousand as of June 30, 2024, down from RMB 1,759,357 thousand as of December 31, 2023, representing a decrease of about 12.5%[35]. Revenue Breakdown - Revenue from environmental energy-saving solutions was RMB 2,457,887 thousand, while renewable energy engineering contributed RMB 135,335 thousand, and thermal power engineering had no reported revenue for this period[18]. - Revenue from major customer China Datang Group was approximately RMB 1,992 million for the six months ended June 30, 2024, compared to RMB 2,138 million for the same period in 2023[20]. - Sales to China Datang Group amounted to RMB 1,992,076 thousand for the six months ended June 30, 2024, compared to RMB 2,138,196 thousand for the same period in 2023, a decrease of 6.8%[46]. - Sales to China Datang Group and its associates accounted for approximately 80.6% of total revenue, totaling RMB 2,098.6 million for the six months ended June 30, 2024[105]. Operational Highlights - The company plans to continue expanding its renewable energy engineering projects, focusing on wind, biomass, and photovoltaic power plants[14]. - The company is actively involved in the environmental protection industry, serving clients across over 30 provinces and regions in China and seven other countries[67]. - The company has ongoing distributed photovoltaic projects with a total installed capacity of 14.91 MW, generating 9.0322 million kWh in the first half of 2024[77]. - The company has five ongoing desulfurization projects with a total value of RMB 697.35 million as of June 30, 2024[74]. - The company signed three new renewable energy engineering projects with a total installed capacity of 246.191 MW in the first half of 2024[78]. Employee and Management - As of June 30, 2024, the company employed a total of 969 employees, with 32.51% in franchise management, 30.65% in R&D, and 19.92% in engineering[109]. - The employee training rate reached 100%, with 25 training programs conducted during the reporting period[110]. - Total remuneration paid to key management personnel decreased to RMB 2,144,000 in the six months ended June 30, 2024, down 27.7% from RMB 2,966,000 in the same period of 2023[53]. Compliance and Governance - The company has maintained compliance with corporate governance codes, ensuring appropriate checks and balances within its board structure[115]. - The company emphasizes compliance with Chinese labor laws and has established a performance evaluation system to motivate employees[110]. - The audit committee has reviewed the unaudited interim consolidated financial information for the six months ended June 30, 2024, with no disagreements noted[123]. Future Outlook - The company plans to actively expand its customer base in industries such as steel, cement, and petrochemicals, in response to the growing demand for environmental energy solutions[107]. - The company aims to enhance its core capabilities in engineering business, focusing on traditional environmental protection services and expanding into carbon reduction and wastewater treatment[114]. - The company is committed to developing strategic emerging industries, including advancements in catalyst technology and carbon monitoring products[112]. - The company will adjust its business focus to strategic emerging industries, withdrawing from less competitive areas to concentrate resources on high-potential sectors[111].

Financial Performance - The group achieved a revenue of RMB 5,720,131 thousand in 2023, compared to RMB 5,322,722 thousand in 2022, reflecting an increase of approximately 7.5%[6] - Gross profit for the year was RMB 1,145,018 thousand, up from RMB 789,421 thousand in the previous year, indicating a significant growth of about 45%[6] - The group reported a pre-tax profit of RMB 617,626 thousand, which is a substantial increase from RMB 296,795 thousand in 2022, representing a growth of approximately 108%[6] - Net profit for the year reached RMB 503,570 thousand, compared to RMB 238,123 thousand in 2022, marking an increase of around 111%[6] - The effective tax rate for the group decreased to 18.47% in 2023 from 19.77% in 2022, indicating improved tax efficiency[72] - The company declared dividends of RMB 148,377 thousand to shareholders for the year ended December 31, 2023, compared to RMB 88,432 thousand in the previous year, marking an increase of approximately 67.8%[72] - Basic earnings per share for 2023 were RMB 0.18, compared to RMB 0.09 in 2022, representing a 100% increase[1] - The company's profit before tax surged by 108.1% from RMB 296.8 million in 2022 to RMB 617.6 million in 2023[172] - The annual profit increased from RMB 238.1 million in 2022 to RMB 503.6 million in 2023, representing a growth of 111.4%[189] - The profit margin for the group rose to 8.8% in 2023, compared to 4.5% in 2022[189] Revenue Sources - Revenue from sales of goods and services to China Datang and its subsidiaries amounted to approximately RMB 5,119 million, up from RMB 4,070 million in 2022[33] - Revenue generated from contracts with customers reached RMB 5,720,131 thousand in 2023, compared to RMB 5,322,722 thousand in 2022, reflecting a growth of approximately 7.5%[34] - The company’s revenue from desulfurization and denitrification services amounted to RMB 4,320,846 thousand, contributing significantly to the overall revenue[76] - The company’s revenue from construction services was RMB 1,103,860 thousand, highlighting its strong performance in this segment[76] - The company's revenue increased by 7.5% from RMB 5,322.7 million in 2022 to RMB 5,720.1 million in 2023, primarily due to the growth in environmental energy-saving business[170] Operational Efficiency - Cash flow from operating activities for the year was RMB 1,811,106 thousand, significantly up from RMB 531,346 thousand in the previous year, indicating improved operational efficiency[13] - The group’s sales cost increased by 0.9% from RMB 4,533.3 million in 2022 to RMB 4,575.1 million in 2023, primarily due to rising costs in engineering operations[30] - The total gross profit for the environmental energy solutions segment was RMB 1,180.9 million in 2023, with a gross margin of 22.0%, up from RMB 880.4 million and 17.3% in 2022[196] - The total gross profit for renewable energy engineering was RMB 43.9 million in 2023, a significant improvement from a loss of RMB 75.6 million in 2022[196] Assets and Liabilities - The total equity of the group increased to RMB 7,281,624 thousand as of December 31, 2023, compared to RMB 6,896,749 thousand in 2022[11] - Total liabilities amounted to RMB 10,763,498 thousand, with allocated liabilities across various business segments including RMB 9,113,737 thousand for environmental energy solutions[54] - The company’s total liabilities as of December 31, 2023, were RMB 11,451,508 thousand, reflecting a stable financial position[73] - Total assets decreased by 1.7% from RMB 18,348.3 million in 2022 to RMB 18,045.4 million in 2023[102] - Total liabilities decreased by 6.0% from RMB 11,451.5 million in 2022 to RMB 10,763.5 million in 2023[102] Investments and Expenditures - Capital expenditures for the year totaled RMB 389,844 thousand, primarily for property, plant, and equipment[54] - The company’s capital expenditure for the year was RMB 172,178 thousand, indicating ongoing investment in growth and infrastructure[73] - The company issued three tranches of short-term financing bonds totaling RMB 1.5 billion in 2023, with interest rates ranging from 2.25% to 2.38%[182] Market Position and Expansion - The group maintained its position as the largest flue gas desulfurization and denitrification concessionaire in China, with all new projects transitioning to operational status in 2023[2] - The group continues to lead as the largest producer of denitrification catalysts in China, with total catalyst production in 2023 reflecting this status[1] - The group is actively expanding its environmental governance services into non-electric sectors such as steel, cement, and metallurgy, broadening its business scope and influence[2] - The group plans to actively explore the environmental market in non-electric industries such as petroleum, coking, steel, and cement[55] - The group has successfully launched overseas projects in Thailand and India, with stable operations and no ongoing overseas projects as of December 31, 2023[125] Trade Receivables and Impairments - Trade receivables as of December 31, 2023, amounted to RMB 7,797,976,000, down from RMB 8,677,433,000 in 2022, a decrease of approximately 10.1%[2] - The provision for impairment of trade receivables increased to RMB 333,490,000 in 2023 from RMB 309,483,000 in 2022, reflecting a rise of 7.8%[4] - The net impairment loss on trade receivables was RMB 24,007,000 in 2023, compared to RMB 16,518,000 in 2022, indicating an increase of 45.5%[134] Corporate Governance and Compliance - The company has not adopted certain revised international financial reporting standards that are relevant to its consolidated financial statements, planning to apply them upon their effective dates[43] - The company has implemented various policies in 2023 aimed at carbon neutrality, which are expected to create new opportunities in carbon monitoring and energy-saving industries[167] - The company has a favorable corporate income tax rate of 15% due to recognition as a high-tech enterprise[110] Research and Development - The company obtained 50 patent authorizations in 2023, including 33 invention patents[97] - The company recognized a full impairment provision of RMB 4,053,000 for receivables due to disputes with an Indian client regarding project delays[157] Other Financial Metrics - Other income increased from RMB 111.5 million in 2022 to RMB 157.8 million in 2023, primarily due to increased gains from the disposal of properties, plants, and equipment[106] - Financial expenses decreased by 11.5% from RMB 199.3 million in 2022 to RMB 176.3 million in 2023, attributed to a reduction in long-term interest-bearing bank loans[108] - The aging analysis of trade receivables showed that amounts overdue for more than three years were RMB 1,973,762,000 in 2023, slightly down from RMB 2,016,666,000 in 2022[133]

大唐環境產業集團股份有限公司 Datang Environment Industry Group Co., Ltd.* I N IN IN BE * For identification purpose only 懂供識別 Interim Condensed Consolidated Statement of Financial Highlights 3 財務摘要 Significant Events 33 重大事項 Profit or Loss and Other Comprehensive Income 56 Interim Condensed Consolidated Statement of Cash Flows 61 中期簡明合併現金流量表 of total before revenue before elimination (1) Revenue elimination (1) Change Revenue As at 30 June 2023, the Company's major corporate structure was as follows: 於2023年6月30日，本公司主要企業架 ...

截至2022年6月30日止六個月（未經審計） 與客戶之間合同 產生的收入 | --- | --- | --- | |--------------------------------|------------------------|----------------------| | | 截至 6 月 30 \n2023 年 | 日止六個月 \n2022 年 | | | 未經審計 人民幣千元 | 未經審計 人民幣千元 | | | | | | 其他收益 | | | | 利息收入 | 3,434 | 4,760 | | 政府補助 | 53,722 | 24,866 | | 處置物業、廠房和設備項目的收益 | 2,945 | – | | 賠償收入 | 1,301 | – | | 投資收入 | 977 | – | | 匯兌收益 | 4,855 | 5,999 | | | | | | | 67,234 | 35,625 | | --- | --- | --- | |--------------------------------|---------------------------------------------- ...

Financial Performance - For the year ended December 31, 2022, the Group's revenue amounted to RMB 5,322.7 million, representing an increase of 0.6% compared to the previous year[6]. - The Group's gross profit for the year was RMB 789.4 million, reflecting a significant increase of 131.2%, with a gross profit margin of 14.8%, up by 8.3 percentage points from last year[6]. - Total comprehensive income attributable to owners of the parent reached RMB 273.4 million, marking a 230.2% increase year-on-year[6]. - The profit for the year was RMB 238,123,000, a turnaround from a loss of RMB 443,270,000 in the previous year[32]. - The total comprehensive income for the year was RMB 239,641,000, recovering from a loss of RMB 444,350,000 in 2021[32]. - The Group's profit for 2022 amounted to RMB 238.1 million, representing an increase of RMB 681.4 million compared to a loss of RMB 443.3 million in 2021[47]. - Profit attributable to owners of the parent amounted to RMB 272.4 million[47]. - The profit margin for 2022 was 4.5%, compared to -8.4% in 2021[49]. - Profit before tax increased by 178.5% to RMB 296.8 million in 2022 from RMB -378.2 million in 2021[60]. - The Group's income tax expense was RMB 58.7 million in 2022, a decrease of 9.8% from RMB 65.1 million in 2021, mainly due to the decrease in profit before tax[60]. Assets and Liabilities - The total current assets of the Group as of December 31, 2022, were RMB 10,937.6 million, while total non-current assets were RMB 7,410.7 million[8]. - Total equity as of December 31, 2022, was RMB 6,896.7 million, reflecting the Group's financial stability[8]. - The Group's cash and cash equivalents decreased by 29.9% to RMB 872.2 million as of December 31, 2022, compared to RMB 1,244.9 million as of December 31, 2021[47]. - Total assets decreased by 0.4% to RMB 18,348.3 million as of December 31, 2022, from RMB 18,428.4 million as of December 31, 2021[47]. - Total liabilities decreased by 1.9% to RMB 11,451.5 million as of December 31, 2022, from RMB 11,672.8 million as of December 31, 2021[47]. - The Group's net current assets decreased by 63.0% to RMB 404.2 million as of December 31, 2022, compared to RMB 1,092.5 million as of December 31, 2021, mainly due to decreases in contract assets, trade receivables, and cash and cash equivalents[166]. - The Group's borrowings decreased by 5.3% to RMB 5,640.2 million as of December 31, 2022, from RMB 5,952.8 million as of December 31, 2021[166]. - The current ratio as of December 31, 2022, was 103.8%, down from 111.5% in 2021[166]. - The quick ratio as of December 31, 2022, was 102.4%, down from 109.4% in 2021[166]. - The liabilities to assets ratio as of December 31, 2022, was 62.4%, slightly improved from 63.3% in 2021[166]. - The return on total assets for 2022 was 1.3%, a recovery from -2.3% in 2021[166]. - The return on equity for 2022 was 3.4%, compared to -6.3% in 2021, indicating improved profitability[166]. Business Operations and Market Position - The Group maintained its position as the largest desulfurization and denitrification concession operator and the largest manufacturer of denitrification catalysts in the PRC[6]. - The Group's environmental protection facility engineering business continued to expand into non-electric industries such as petroleum, coking, steel, and cement[22]. - The Group maintained its leading position in the environmental protection sector, being the largest desulfurization and denitrification concession operator in China as of the end of 2022[38]. - The Group's external revenue from other businesses decreased by 41.3% to RMB 39.1 million in 2022 from RMB 66.7 million in 2021[64]. - The Group aims to transform its traditional business competitiveness and achieve breakthroughs in new industry market promotion[70]. - The Group aims to achieve newly installed capacity of concession operation of no less than 2,000 MW during the "14th Five-Year" period[146]. - The Group plans to ensure additional disposal recycling production capacity of 10,000 m³ of honeycomb catalyst and 20,000 m³ of spent catalysts during the year[146]. - The Group is committed to improving lean management across all processes and enhancing the efficiency of environmental protection facilities[146]. - The Group is positioned as a leading enterprise in providing comprehensive energy solutions and systematic solutions to environmental issues[99]. Strategic Initiatives and Future Outlook - The Group plans to implement a "1461" development strategy in 2023, focusing on safety, innovation, and enhancing management efficiency[70]. - The Group aims to promote the construction of a second production base for denitrification catalysts according to domestic first-class and international leading standards[146]. - The Group will actively expand the scale of operation business in response to the acceleration of coal-fired power approvals and investments[146]. - The Group will focus on enhancing core competitiveness through a strong talent base and innovation-driven strategies[149]. - The compound annual growth rate of operating revenue for China's environmental protection industry is projected to reach 12% from 2022 to 2027, with expectations to exceed RMB 5 trillion by 2030[82][83]. - The Group is committed to becoming a first-class comprehensive energy and environmental governance service provider through technological advancement and industry collaboration[184]. Research and Development - The Group was awarded 56 patent authorizations in 2022, including 16 invention patent authorizations[134]. - The project "Research and Application of Key Technologies of Synergistic Denitrification and Dehydration Catalysts" won multiple awards, including the innovation achievement award of power sci-tech management[134]. - Datang Environment is investing RMB 300 million in research and development for renewable energy solutions, aiming for a 10% reduction in operational costs[195]. Employee and Labor Relations - The company has a total of 1,008 employees as of December 31, 2022, with all employees based in the PRC and having entered into employment agreements[181]. - The company has established labor union branches and complies with PRC Labor Law in its employment agreements[181]. Overseas Expansion and Risks - The company is actively expanding its overseas business, particularly in countries involved in the Belt and Road Initiative, focusing on markets in India and Thailand[182]. - The management acknowledges potential risks in overseas expansion, including financing availability, personnel management, and local business environment understanding[182]. - The company emphasizes the importance of project management experience in countries like India and Thailand for future overseas development[182]. - The company has established mature risk management and internal control systems to mitigate risks associated with overseas business operations[182].

Revenue and Profitability - Revenue from contracts with customers for the year ended December 31, 2022, was RMB 5,322,722 thousand, a slight increase from RMB 5,288,215 thousand in 2021, representing a growth of approximately 0.7%[7] - The company reported a decrease in revenue from sales of goods and services from China Datang Group, which was approximately RMB 4,070 million in 2022, down from RMB 4,478 million in 2021[6] - For the year ended December 31, 2022, the company's revenue was RMB 5,322.7 million, an increase of 0.6% compared to the previous year[32] - The gross profit for the same period was RMB 789.4 million, representing a significant increase of 131.2%, with a gross margin of 14.8%, up by 8.3 percentage points[32] - The total comprehensive income attributable to equity holders of the parent was RMB 273.4 million, an increase of 230.2% year-on-year[32] - The company reported a net profit of RMB 238,123 thousand, a significant improvement from a net loss of RMB 443,270 thousand in the previous year, representing a turnaround of approximately 153.7%[44] - The pre-tax profit for the year was RMB 296,795 thousand, compared to a pre-tax loss of RMB 378,212 thousand in the prior year, indicating a recovery in profitability[43] - The company’s total comprehensive income for the year was RMB 239,641,000, compared to a loss of RMB 444,350,000 in the previous year[60] - Earnings per share attributable to ordinary shareholders of the parent company improved to RMB 0.09, compared to a loss of RMB 0.07 per share in the previous year[52] Liabilities and Assets - The total liabilities as of December 31, 2022, amounted to RMB 11,672,810 thousand, with allocated liabilities from various segments totaling RMB 9,225,285 thousand after inter-segment eliminations[5] - The total liabilities amounted to RMB 11,451.5 million, with allocated bank borrowings and other loans of RMB 1,989.1 million[22] - The company’s total liabilities increased to RMB 10,533,347 thousand from RMB 9,478,199 thousand, representing an increase of approximately 11.1%[54] - The total assets of the company were RMB 18,428.4 million as of December 31, 2021[24] - The total assets of the group amounted to RMB 18,348,257,000 as of December 31, 2022, with significant contributions from various operational segments[103] - Non-current assets decreased to RMB 7,410,661 thousand from RMB 7,857,665 thousand year-over-year, reflecting a decline of approximately 5.7%[54] - Current assets increased to RMB 10,937,596 thousand from RMB 10,570,721 thousand, showing a growth of about 3.5% year-over-year[54] - The total equity attributable to the owners of the parent company rose to RMB 6,896,749 thousand from RMB 6,755,576 thousand, reflecting an increase of approximately 2.1%[56] Cash Flow and Investments - Operating cash flow generated was RMB 531,346,000, a decrease from RMB 987,035,000 in the previous year[63] - The company incurred a net cash outflow from investing activities of RMB 315,406,000, compared to RMB 396,588,000 in the previous year[66] - Financing activities resulted in a net cash outflow of RMB 589,504,000, down from RMB 876,728,000 in the previous year[68] - The company’s cash and cash equivalents decreased to RMB 872,196,000 at year-end from RMB 1,244,882,000 at the beginning of the year[70] - The company received government grants of RMB 2,000,000 related to property, plant, and equipment during the year[65] Expenses and Impairments - The impairment loss recognized in profit or loss for the year was RMB 84,768 thousand, with RMB 54,422 thousand attributed to energy-saving solutions and RMB 30,346 thousand to renewable energy engineering[5] - The company reported a net impairment loss of RMB 10.3 million for the year ended December 31, 2022[22] - The company’s depreciation and amortization expenses for the year totaled RMB 684,853 thousand, with significant contributions from various operational segments[5] - The company’s depreciation and amortization expenses totaled RMB 467,658,000 and RMB 28,690,000 respectively for the year[63] - The company reported a tax expense of RMB 67,526,000 for the year, compared to RMB 119,549,000 in the previous year[63] Strategic Plans and Market Position - The company plans to continue expanding its market presence in energy-saving and renewable energy sectors, focusing on enhancing service offerings and operational efficiency[20] - The company aims to leverage technological advancements in its new product development to enhance competitive positioning in the market[20] - The company operates in environmental facility concessions, denitration catalyst production and sales, water services, energy-saving engineering, and renewable energy projects[74] - The company continues to focus on expanding its environmental energy solutions and renewable energy engineering businesses, which are critical for future growth[92][93] - The company has expanded its environmental governance efforts into non-electric sectors such as steel, cement, and metallurgy[170] Subsidiaries and Ownership - The company holds a 100% stake in Datang (Beijing) Water Engineering Technology Co., Ltd., which engages in technical services and water engineering services in China[74] - The company has established a wholly-owned subsidiary in China named Datang (Jiangsu) Environmental Equipment Co., Ltd. on August 22, 2022[80] - The company’s direct and indirect ownership percentages in its subsidiaries range from 56% to 100%[74] - The company’s ultimate holding company is China Datang Corporation, which is wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council[74] Trade Receivables and Credit Risk - The company has a strict control over trade receivables to minimize credit risk, with a general credit period of less than one year[134] - Trade receivables, net of impairment provisions, increased to RMB 8,978,204,000 in 2022 from RMB 8,169,933,000 in 2021[136] - The aging analysis of trade receivables showed that amounts due within one year rose to RMB 5,852,546,000 in 2022 from RMB 4,630,198,000 in 2021[136] - The total amount of trade receivables from related parties was RMB 7,674,811,000 in 2022, up from RMB 6,827,717,000 in 2021[136] - The provision for trade receivables impairment increased to RMB 309,483,000 in 2022 from RMB 292,965,000 in 2021[137] Environmental Projects and Achievements - The company remains the largest operator of flue gas desulfurization and denitrification projects in China, with a cumulative operational capacity of 10,120 MW[196] - In 2022, the company signed three new renewable energy engineering projects, all photovoltaic projects, with a total installed capacity of 501.2 MW[180] - The company has completed the operation of all desulfurization and denitrification projects under its environmental facility concession business by the end of 2022[170] - The total installed capacity for desulfurization and denitrification projects reached 50,180 MW and 41,210 MW respectively[199] - The company continues to focus on technological advancements in desulfurization and denitrification processes to meet regulatory standards and market demands[199]

Financial Performance - For the six months ended June 30, 2022, the company's revenue was RMB 2,318,791,000, an increase from RMB 2,196,597,000 in the same period of 2021, representing a growth of approximately 5.5%[9]. - Gross profit for the same period was RMB 484,168,000, compared to RMB 398,278,000 in 2021, indicating a significant increase of about 21.6%[9]. - Profit for the period reached RMB 199,910,000, a substantial rise from RMB 66,425,000 in 2021, reflecting an increase of approximately 200.5%[10]. - Total comprehensive income for the period was RMB 201,453,000, compared to RMB 64,418,000 in the previous year, marking an increase of about 212.5%[10]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent was RMB 0.07, up from RMB 0.03 in 2021, representing a growth of 133.3%[10]. - Profit before tax increased by 137.19% to RMB 241.9 million for the six months ended June 30, 2022 compared to RMB 102.0 million for the same period in 2021[25]. - The Group's profit for the six months ended June 30, 2022, amounted to RMB 199.9 million, representing an increase of RMB 133.5 million compared to RMB 66.4 million for the same period in 2021[23]. Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 18,074,223,000, slightly down from RMB 18,428,386,000 as of December 31, 2021[11]. - Total current liabilities were RMB 9,616,750,000, an increase from RMB 9,478,199,000 at the end of 2021[11]. - Total equity increased to RMB 6,868,596,000 from RMB 6,755,576,000 at the end of 2021, showing a growth of approximately 1.67%[11]. - The Group's total liabilities decreased by 4.00% to RMB 11,205.6 million as of June 30, 2022, compared to RMB 11,672.8 million as of December 31, 2021[23]. - As of June 30, 2022, total non-current liabilities decreased to RMB 1,588,877,000 from RMB 2,194,611,000 as of December 31, 2021, representing a reduction of approximately 27.6%[158]. Cash Flow - For the six months ended June 30, 2022, net cash flows generated from operating activities were RMB 276,587,000, a decrease of 15.4% compared to RMB 327,008,000 in the same period of 2021[12]. - The total cash flows used in financing activities amounted to RMB (451,612,000), a decrease of 56.3% compared to RMB (1,031,196,000) in the same period of 2021[12]. - The net decrease in cash and cash equivalents for the six months ended June 30, 2022, was RMB (272,905), a significant improvement from RMB (860,139) in the same period of 2021[163]. - Cash and cash equivalents at the end of the period stood at RMB 972,286, compared to RMB 671,280 at the end of June 2021, representing an increase of approximately 44.9%[163]. Business Operations - The company is focused on expanding its environmental protection and energy conservation business, leveraging its position as the sole platform under China Datang Group[5]. - The cumulative installed capacity for desulfurization concession operations reached 48,220 MW, and for denitrification concession operations reached 41,210 MW as of June 30, 2022[17]. - The Group's customers are spread across over 30 provinces and 7 countries, indicating a broad market presence[13]. - The Group's revenue from concession operations is directly affected by the power generation output of coal-fired power plants, which is a significant risk factor[45][47]. - The Group is aggressively developing its overseas business, particularly in Belt and Road Initiative countries, while managing various associated risks[46]. Environmental Initiatives - The Group is focusing on the synergy of pollution control, ecological protection, and climate change response as part of its strategic initiatives[15]. - The implementation of the Comprehensive Work Plan for Energy Conservation and Emission Reduction aims for a 13.5% reduction in energy consumption per unit of GDP by 2025 compared to 2020 levels[16]. - The Group will promote environmental governance by developing ideas for the disposal and recycling of retired wind turbine blades and photovoltaic modules, and actively implementing carbon capture projects[55]. - The company is focusing on near-zero emission multi-pollutant deep removal technology and exploring new environmentally friendly products to drive transformation through technological changes[58]. Research and Development - The Group obtained 67 patents in the first half of 2022, including 39 invention patents, bringing the total to 1,396 patents in force[22]. - The company is committed to improving traditional technologies and developing new technologies to enhance cost efficiency and technical reliability[59]. - The company aims to strengthen the integration of electrochemical energy storage systems and actively participate in shared energy storage projects to drive technological innovation[56]. Corporate Governance - The Company has complied with the Corporate Governance Code, except for a deviation regarding the roles of chairman and general manager[74]. - The board of directors is committed to maintaining high standards of corporate governance and transparency in operations[126]. - The Company plans to appoint a Director of a different gender on or before December 31, 2024, to achieve board diversity[74]. Future Outlook - The company plans to continue expanding its environmental protection and energy conservation solutions segment to drive future growth[34]. - Future outlook includes a commitment to innovation in environmental solutions, aiming to meet increasing regulatory demands and market needs[123]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[127].