[Financial and Operational Summary](index=1&type=section&id=Financial%20and%20Operational%20Summary) The company reported key financial metrics for the first half of 2023, showing revenue growth and increased comprehensive income, with no interim dividend proposed Key Financial Indicators for H1 2023 | Indicator | H1 2023 (RMB million) | YoY Change | | :--- | :--- | :--- | | Revenue | 2,499.2 | +7.8% | | Gross Profit | 517.2 | - | | Gross Margin | 20.7% | -0.2 percentage points | | Total Comprehensive Income Attributable to Owners of the Parent | 265.1 | +33.8% | - The Board did not recommend the distribution of an interim dividend for the six months ended June 30, 2023[202](index=202&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including income, financial position, equity changes, and cash flows [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2023, the company's revenue increased by **7.8%** to **RMB 2,499.2 million**, with gross profit at **RMB 517.2 million** and a slight decrease in gross margin, while profit for the period and profit attributable to owners of the parent both achieved significant growth Overview of Profit or Loss and Other Comprehensive Income | Indicator | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,499,180 | 2,318,791 | +7.8 | | Cost of Sales | (1,982,023) | (1,834,623) | +8.0 | | Gross Profit | 517,157 | 484,168 | +6.8 | | Selling and Distribution Expenses | (9,809) | (6,300) | +55.7 | | Administrative Expenses | (162,174) | (159,294) | +1.8 | | Other Income and Losses | 67,234 | 35,466 | +89.5 | | Net Other Expenses | – | (4,275) | - | | Finance Costs | (89,082) | (103,090) | -13.6 | | Impairment Losses on Financial and Contract Assets, Net | (3,972) | (4,801) | -17.2 | | Profit Before Tax | 319,354 | 241,874 | +32.0 | | Income Tax Expense | (49,235) | (41,964) | +17.3 | | Profit for the Period | 270,119 | 199,910 | +35.1 | | Profit Attributable to Owners of the Parent | 266,220 | 197,038 | +35.1 | | Profit Attributable to Non-controlling Interests | 3,899 | 2,872 | +35.7 | | Basic and Diluted Earnings Per Share | RMB 0.09 | RMB 0.07 | +28.6 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the company's total assets slightly increased, and net current assets significantly rose, primarily due to increased trade receivables and reduced interest-bearing bank and other borrowings, leading to an improved net debt to capital ratio Overview of Financial Position | Indicator | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 7,252,379 | 7,410,661 | -2.1 | | Total Current Assets | 11,225,925 | 10,937,596 | +2.6 | | Total Current Liabilities | 8,786,108 | 10,533,347 | -16.5 | | Net Current Assets | 2,439,817 | 404,249 | +503.6 | | Total Non-current Liabilities | 2,675,788 | 918,161 | +191.4 | | Net Assets | 7,016,408 | 6,896,749 | +1.7 | | Total Equity | 7,016,408 | 6,896,749 | +1.7 | - As of June 30, 2023, the Group's net debt to capital ratio (net debt divided by the sum of net debt and total equity) was **39.71%**, a decrease of **1.17 percentage points** from **40.88%** as of December 31, 2022[86](index=86&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2023, total equity attributable to owners of the parent increased to **RMB 7,176,995 thousand**, primarily driven by profit growth for the period, alongside the declaration of the 2022 final dividend Overview of Changes in Equity | Indicator | January 1, 2023 (Audited) (RMB thousand) | Profit for the Period (RMB thousand) | Other Comprehensive Loss for the Period (RMB thousand) | Final Dividend Declared for 2022 (RMB thousand) | June 30, 2023 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Parent | 7,060,361 | 266,220 | (1,111) | (148,475) | 7,176,995 | | Non-controlling Interests | (163,612) | 3,899 | (874) | – | (160,587) | | Total Equity | 6,896,749 | 270,119 | (1,985) | (148,475) | 7,016,408 | - In the first half of 2023, exchange differences related to overseas operations resulted in an **other comprehensive loss of RMB 1,111 thousand**[187](index=187&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2023, net cash flow from operating activities significantly increased, cash outflow from investing activities rose, while cash outflow from financing activities substantially decreased, leading to a net increase in cash and cash equivalents at period-end Overview of Cash Flows | Indicator | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 384,924 | 276,587 | +39.1% | | Net Cash Flows Used in Investing Activities | (154,109) | (97,880) | +57.4% | | Net Cash Flows Used in Financing Activities | (10,821) | (451,612) | -97.6% | | Net Increase / (Decrease) in Cash and Cash Equivalents | 219,994 | (272,905) | - | | Cash and Cash Equivalents at End of Period | 1,092,443 | 972,286 | +12.4% | - Cash outflow from financing activities significantly decreased, primarily due to reduced repayments of bank and other borrowings[189](index=189&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=8&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes and explanations supporting the interim condensed consolidated financial statements [Company and Group Information](index=8&type=section&id=Company%20and%20Group%20Information) The company was established in China on **July 25, 2011**, listed on the Stock Exchange in **2016**, and primarily engages in environmental facility concession operations, denitration catalyst production and sales, environmental facility engineering, water treatment, energy-saving engineering, and renewable energy engineering, with China Datang Corporation Ltd. as its direct and ultimate controlling company - The company was established in China on **July 25, 2011**, and listed on the Main Board of the Stock Exchange on **November 15, 2016**[190](index=190&type=chunk) - The Group's principal activities include environmental facility concession operations, production and sales of denitration catalysts, environmental facility engineering, water treatment business, energy-saving engineering business, and renewable energy engineering business[210](index=210&type=chunk) - The company's direct and ultimate controlling company is China Datang Corporation Ltd., which is wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council[191](index=191&type=chunk) [Basis of Preparation and Changes in Accounting Policies and Disclosures](index=8&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) These interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and are consistent with the accounting policies of the 2022 annual consolidated financial statements, with no significant impact from newly adopted IFRS and IAS amendments during the period - These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[232](index=232&type=chunk) - The accounting policies and basis of preparation for these interim condensed consolidated financial statements are consistent with those used in the Group's annual consolidated financial statements for the year ended December 31, 2022[195](index=195&type=chunk) - The adoption of new and revised International Financial Reporting Standards and International Accounting Standards had no significant impact on the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[234](index=234&type=chunk) [Operating Segment Information](index=10&type=section&id=Operating%20Segment%20Information) The Group's operations are categorized into four segments: environmental protection and energy-saving solutions, renewable energy engineering, thermal power engineering, and other businesses, with management allocating resources and assessing performance based on segment results, and segment assets and liabilities determined by direct attribution or reasonable allocation - The Group's operating businesses are categorized by nature into environmental protection and energy-saving solutions, renewable energy engineering, thermal power engineering, and other businesses[216](index=216&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) H1 2023 Segment Revenue and Results | Segment | Revenue (RMB thousand) | Segment Results (RMB thousand) | | :--- | :--- | :--- | | Environmental Protection and Energy-Saving Solutions | 2,264,734 | 401,787 | | Renewable Energy Engineering | 222,774 | 11,168 | | Thermal Power Engineering | – | – | | Other Businesses | 24,348 | (22,135) | | Total | 2,511,856 | 390,820 | - Segment results are assessed based on adjusted profit before tax, excluding other income and losses, other expenses, finance costs unrelated to leases, and corporate and other unallocated expenses[239](index=239&type=chunk) [Segment Revenue](index=11&type=section&id=Segment%20Revenue) Environmental protection and energy-saving solutions business is the primary revenue source, with significant growth in renewable energy engineering revenue, and total revenue aligns with the consolidated income statement after inter-segment eliminations H1 2023 Segment Revenue Details | Segment | Sales to External Customers (RMB thousand) | Inter-segment Sales (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Environmental Protection and Energy-Saving Solutions | 2,264,734 | – | 2,264,734 | | Renewable Energy Engineering | 222,774 | – | 222,774 | | Thermal Power Engineering | – | – | – | | Other Businesses | 11,672 | 12,676 | 24,348 | | Total | 2,499,180 | 12,676 | 2,511,856 | - External revenue from the renewable energy engineering business increased by **123.2%** year-on-year, indicating strong growth in this segment[102](index=102&type=chunk) [Geographical Information and Major Customers](index=13&type=section&id=Geographical%20Information%20and%20Major%20Customers) The Group's principal operations and revenue are concentrated in mainland China, with significant related party transactions with China Datang Corporation Ltd. and its subsidiaries - Major non-current assets are located in mainland China, and major revenue is derived from mainland China, thus no further geographical segment information is presented[244](index=244&type=chunk) - Revenue from sales of goods and services to China Datang and its subsidiaries was approximately **RMB 2,138 million** (H1 2022: approximately **RMB 1,977 million**)[245](index=245&type=chunk) [Revenue](index=13&type=section&id=Revenue) For the six months ended June 30, 2023, the Group's revenue was **RMB 2,499,180 thousand**, primarily from desulfurization and denitration services and construction services, with significant growth in construction service revenue Revenue by Type of Goods or Services | Type of Goods or Services | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Sales of Industrial Products | 147,035 | 187,760 | | Construction Services | 426,436 | 238,680 | | Desulfurization and Denitration Services | 1,925,709 | 1,892,351 | | Total | 2,499,180 | 2,318,791 | - Construction service revenue increased from **RMB 238,680 thousand** in H1 2022 to **RMB 426,436 thousand** in H1 2023[224](index=224&type=chunk) - Revenue recognition primarily occurs for services transferred over time (**RMB 2,352,145 thousand**), followed by goods transferred at a point in time (**RMB 147,035 thousand**)[224](index=224&type=chunk) [Other Income and Losses](index=15&type=section&id=Other%20Income%20and%20Losses) For the six months ended June 30, 2023, the Group's total other income and losses amounted to **RMB 67,234 thousand**, a significant increase from the prior period, primarily driven by higher government grants Details of Other Income and Losses | Item | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Interest Income | 3,434 | 4,760 | | Government Grants | 53,722 | 24,866 | | Gain on Disposal of Property, Plant and Equipment Items | 2,945 | – | | Compensation Income | 1,301 | – | | Investment Income | 977 | – | | Exchange Gain | 4,855 | 5,999 | | Other Losses, Net | – | (159) | | Total | 67,234 | 35,466 | - Government grants significantly increased from **RMB 24,866 thousand** in H1 2022 to **RMB 53,722 thousand** in H1 2023[3](index=3&type=chunk) [Finance Costs](index=17&type=section&id=Finance%20Costs) For the six months ended June 30, 2023, the Group's finance costs were **RMB 89,082 thousand**, a decrease from the prior period, primarily due to a reduction in the annual interest rate on borrowings Details of Finance Costs | Item | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 5,480 | 6,061 | | Interest Expense on Bank and Other Borrowings | 83,961 | 97,029 | | Less: Capitalized Interest | (359) | – | | Total | 89,082 | 103,090 | - Finance costs decreased by **13.6%** year-on-year, primarily due to a reduction in the annual interest rate on borrowings during the current period compared to the same period last year[164](index=164&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2023, the Group's income tax expense was **RMB 49,235 thousand**, an increase from the prior period, primarily contributed by current income tax Details of Income Tax Expense | Item | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax | 50,642 | 41,600 | | Deferred Income Tax | (1,407) | 364 | | Total | 49,235 | 41,964 | - Income tax expense increased by **17.1%** to **RMB 49.2 million** from **RMB 42.0 million** in the same period of 2022[99](index=99&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board did not recommend an interim dividend for the six months ended June 30, 2023, while the 2022 final dividend of **RMB 148,475,000** was approved at the shareholders' meeting on June 29, 2023 - The Board did not recommend the distribution of any interim dividend for the six months ended June 30, 2023[144](index=144&type=chunk)[256](index=256&type=chunk) - The final dividend for the year ended December 31, 2022, of **RMB 0.05 per share** (pre-tax), amounting to **RMB 148,475,000**, was approved at the shareholders' meeting on **June 29, 2023**[284](index=284&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=18&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2023, basic and diluted earnings per share increased to **RMB 0.09** from **RMB 0.07** in the prior period, primarily due to higher profit attributable to ordinary equity holders of the parent Earnings Per Share Calculation | Indicator | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent (RMB thousand) | 266,220 | 197,038 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 2,967,542,000 | 2,967,542,000 | | Basic / Diluted Earnings Per Share | RMB 0.09 | RMB 0.07 | - The company had no potential dilutive ordinary shares in issue, thus the diluted earnings per share amount is the same as the basic earnings per share amount[8](index=8&type=chunk) [Property, Plant and Equipment](index=19&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2023, the Group's expenditures on purchases of property, plant and equipment items increased, and gains were recognized from the disposal of related items - For the six months ended June 30, 2023, the Group purchased property, plant and equipment items at a cost of **RMB 61,819,000**, an increase from **RMB 44,047,000** in the prior period[259](index=259&type=chunk) - The carrying amount of property, plant and equipment items disposed of by the Group was **RMB 2,669,000**, resulting in a **gain on disposal of RMB 2,945,000**[9](index=9&type=chunk) [Trade Receivables, Bills Receivable and Contract Assets](index=19&type=section&id=Trade%20Receivables%2C%20Bills%20Receivable%20and%20Contract%20Assets) As of June 30, 2023, the Group's total trade receivables, bills receivable, and contract assets amounted to **RMB 9,302,348 thousand**, a slight increase from the end of 2022, with contract assets showing significant growth Details of Trade Receivables, Bills Receivable and Contract Assets | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Net) | 8,364,459 | 8,367,950 | | Bills Receivable | 524,041 | 610,254 | | Contract Assets (Net) | 413,848 | 183,725 | | Total | 9,302,348 | 9,161,929 | - Contract assets increased from **RMB 183,725 thousand** as of December 31, 2022, to **RMB 413,848 thousand** as of June 30, 2023, primarily originating from construction services[260](index=260&type=chunk) - Trade receivables are non-interest bearing, and the Group exercises strict control over outstanding receivables to mitigate credit risk[10](index=10&type=chunk) [Prepayments, Other Receivables and Other Assets](index=20&type=section&id=Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) As of June 30, 2023, the Group's total prepayments, other receivables, and other assets amounted to **RMB 578,937 thousand**, a decrease from the end of 2022 Details of Prepayments, Other Receivables and Other Assets | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Prepayments | 168,092 | 221,600 | | Deposits | 44,468 | 40,390 | | Other Receivables | 81,877 | 104,854 | | Other Current Assets | 286,923 | 292,824 | | Less: Impairment Allowance | (2,423) | (2,423) | | Total | 578,937 | 657,245 | [Cash and Cash Equivalents and Restricted Cash](index=21&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Cash) As of June 30, 2023, the Group's cash and cash equivalents amounted to **RMB 1,092,443 thousand**, with restricted cash of **RMB 99,069 thousand**, primarily for performance bond deposits related to engineering services and property maintenance, and bank frozen funds related to construction contract disputes Details of Cash and Cash Equivalents and Restricted Cash | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 1,191,512 | 964,534 | | Less: Restricted Cash | (99,069) | (92,338) | | Cash and Cash Equivalents | 1,092,443 | 872,196 | - Restricted cash primarily refers to deposits held for bills payable and performance bonds issued for engineering services, property maintenance, and bank frozen funds related to construction contract disputes[291](index=291&type=chunk) [Trade and Bills Payable](index=21&type=section&id=Trade%20and%20Bills%20Payable) As of June 30, 2023, the Group's total trade and bills payable amounted to **RMB 4,632,103 thousand**, a slight decrease from the end of 2022, and are typically settled within one year Details of Trade and Bills Payable | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 4,583,562 | 4,759,759 | | Bills Payable | 48,541 | 54,053 | | Total | 4,632,103 | 4,813,812 | - Trade and bills payable are non-interest bearing and are normally settled within one year[13](index=13&type=chunk) [Other Payables and Accruals](index=22&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2023, the Group's total other payables and accruals amounted to **RMB 1,077,053 thousand**, an increase from the end of 2022, primarily influenced by growth in contract liabilities and dividends payable Details of Other Payables and Accruals | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Contract Liabilities | 255,751 | 232,089 | | Taxes Payable Other Than Income Tax | 26,631 | 55,296 | | Interest Payable | 16,083 | 10,222 | | Dividends Payable | 176,400 | 28,925 | | Other Payables | 602,188 | 628,984 | | Total | 1,077,053 | 955,516 | - Other payables are non-interest bearing and have no fixed repayment terms[15](index=15&type=chunk) [Provisions](index=22&type=section&id=Provisions) As of June 30, 2023, the Group's total provisions amounted to **RMB 223 thousand**, a decrease from the end of 2022 Details of Provisions | Item | December 31, 2022 (Audited) (RMB thousand) | Amounts Utilized During the Year (RMB thousand) | June 30, 2023 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | :--- | | Classified as Current Liabilities | 600 | (377) | 223 | | Classified as Non-current Liabilities | 480 | – | 480 | | Total | 1,080 | (377) | 703 | [Interest-bearing Bank and Other Borrowings](index=23&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2023, the Group's total interest-bearing bank and other borrowings amounted to **RMB 5,713,392 thousand**, a slight increase from the end of 2022, with a decrease in short-term borrowings and an increase in long-term borrowings Maturity Profile of Interest-bearing Bank and Other Borrowings | Maturity Period | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Within One Year (Bank Borrowings) | 2,328,580 | 3,608,661 | | Second Year (Bank Borrowings) | 407,698 | 331,992 | | Third to Fifth Year (Bank Borrowings) | 973,748 | 187,802 | | Within One Year (Other Borrowings) | 738,891 | 1,142,791 | | Second Year (Other Borrowings) | 628,879 | 140,735 | | Third to Fifth Year (Other Borrowings) | 479,495 | 84,608 | | After Five Years (Other Borrowings) | 156,101 | 143,652 | | Total | 5,713,392 | 5,640,241 | - The company issued two tranches of super short-term commercial papers on **February 22, 2023**, and **April 20, 2023**, each with a face value of **RMB 500 million**, and actual annual interest rates of **2.25%** and **2.36%**, respectively[269](index=269&type=chunk) [Commitments](index=25&type=section&id=Commitments) As of June 30, 2023, the Group had contracted but unprovided capital commitments, primarily related to plant and equipment, and the previously planned joint venture with Datang Henan has been agreed to be withdrawn Details of Capital Commitments | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 335 | 322 | | Plant and Equipment | 66,347 | 61,571 | | Equity Investments | – | 15,048 | | Total | 66,682 | 76,941 | - The company and Datang Henan have agreed to withdraw from establishing a joint venture, and the originally planned equity investment of **RMB 15,048,000** has been cancelled[297](index=297&type=chunk) [Related Party Transactions](index=25&type=section&id=Related%20Party%20Transactions) The Group has significant related party transactions with China Datang Corporation Ltd. and its associates, including sales of goods and services, purchases of goods and services, interest on borrowings and deposits, outstanding balances, and property leases, and is actively expanding its customer base to reduce reliance on related party transactions - For the six months ended June 30, 2023, the Group's total sales of goods and services to China Datang Corporation Ltd. and its associates amounted to approximately **RMB 2,211.1 million**, accounting for approximately **88.4%** of total revenue[133](index=133&type=chunk) - For the six months ended June 30, 2023, the Group's total purchases of goods and services from China Datang Corporation Ltd. and its associates amounted to approximately **RMB 636.1 million**, accounting for approximately **32.1%** of total costs[133](index=133&type=chunk) Details of Related Party Transactions (H1 2023) | Type of Transaction | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Sales of Goods and Services to China Datang Corporation Ltd. | 2,138,196 | 1,976,528 | | Sales of Goods and Services to Associates and Joint Ventures of China Datang Corporation Ltd. | 72,946 | 125,565 | | Interest Expense on Borrowings from Subsidiaries of China Datang Corporation Ltd. | 7,744 | 6,767 | | Interest Income from Deposits with Subsidiaries of China Datang Corporation Ltd. | 1,687 | 2,855 | | Borrowings from Subsidiaries of China Datang Corporation Ltd. | 605,000 | 1,179,000 | | Purchases of Goods and Services from China Datang Corporation Ltd. | 592,353 | 645,750 | | Purchases of Goods and Services from Associates and Joint Ventures of China Datang Corporation Ltd. | 43,834 | 34,773 | - The Group is actively expanding its customer base, with contracts valued at **RMB 145 million** entered into with customers other than China Datang Corporation Ltd. and its associates as of June 30, 2023, accounting for approximately **17%** of the total contract value[133](index=133&type=chunk) [Fair Value of Financial Instruments and Fair Value Hierarchy](index=31&type=section&id=Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Hierarchy) The fair value of the Group's financial instruments approximates their carrying amounts, primarily due to their short-term maturity, while the fair value of long-term interest-bearing bank and other borrowings is calculated by discounting future cash flows, with no fair value measurement hierarchy changes or fair value measured liabilities held during the period - The fair values of cash and cash equivalents, restricted cash, trade and bills receivable, financial assets included in prepayments, other receivables and other assets, trade and bills payable, financial liabilities included in other payables and accruals, and the current portion of interest-bearing bank and other borrowings all approximate their carrying amounts, primarily due to their short-term maturity[55](index=55&type=chunk) - The fair value of the non-current portion of long-term interest-bearing bank and other borrowings (excluding lease liabilities) is calculated by discounting expected future cash flows using current applicable discount rates for instruments with similar terms, credit risk, and remaining maturities[306](index=306&type=chunk) - During the period, the Group did not reclassify any financial assets or financial liabilities from Level 1 to Level 2, nor did it reclassify any financial assets or financial liabilities into or out of Level 3 of the fair value hierarchy[31](index=31&type=chunk) - As of June 30, 2023, and December 31, 2022, the Group did not hold any liabilities measured at fair value[342](index=342&type=chunk) [Contingent Liabilities](index=33&type=section&id=Contingent%20Liabilities) The Group faces contract disputes related to the Gujarat and NLC projects in India, for which performance bond provisions have been fully recognized, but the possibility of other compensation cannot be reliably measured at present - Due to the impact of the COVID-19 pandemic, the construction period for the Gujarat project in India was delayed, and GSECL proposed potential contract termination and performance bond encashment, for which the Group has fully provided for performance bond provisions of **RMB 75,848,000**[309](index=309&type=chunk) - Due to the impact of the COVID-19 pandemic, NLC India requested termination of the NLC project contract and encashment of the performance bond of **RMB 47,303,000**, for which the Group has fully provided and settled the provision[32](index=32&type=chunk) - As of the date of this announcement, the possibility of other compensation arising from the aforementioned contract disputes cannot be reliably measured[32](index=32&type=chunk)[309](index=309&type=chunk) [Events After the Reporting Period](index=34&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company's wholly-owned subsidiary, Water Engineering Company, agreed to sell target assets to Datang Baoji Thermal Power Plant, expecting to record a gain on disposal, and the Board also resolved to approve the registration and issuance of super short-term commercial papers and short-term commercial papers/medium-term notes not exceeding **RMB 3 billion** each - Water Engineering Company agreed to sell various buildings, structures, and equipment to Datang Baoji Thermal Power Plant for a consideration of **RMB 37,997,700**, with an expected pre-tax gain on disposal of approximately **RMB 26,331,800**[344](index=344&type=chunk) - The Board resolved to approve the registration and issuance of super short-term commercial papers not exceeding **RMB 3 billion**, and short-term commercial papers and medium-term notes totaling not exceeding **RMB 3 billion**, with the National Association of Financial Market Institutional Investors[33](index=33&type=chunk) [Approval of Interim Condensed Consolidated Financial Information](index=34&type=section&id=Approval%20of%20Interim%20Condensed%20Consolidated%20Financial%20Information) These interim condensed consolidated financial statements were approved and authorized for issue by the Board on **August 31, 2023** - The interim condensed consolidated financial statements were approved and authorized for issue by the Board on **August 31, 2023**[157](index=157&type=chunk) [Management Discussion and Analysis](index=35&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's operational performance, financial condition, and future outlook [Industry Overview](index=35&type=section&id=Industry%20Overview) In the first half of 2023, the environmental protection industry benefited from national 'dual carbon' goals and green development policies, with energy digitalization, intelligence, and new power system construction creating significant development opportunities for the company's integrated smart energy business - The 20th National Congress of the Communist Party of China emphasized 'promoting green development and harmonious coexistence between humanity and nature,' providing top-level design and policy assurance for the company's green and low-carbon transformation and development[61](index=61&type=chunk) - The National Energy Administration issued 'Several Opinions on Accelerating the Digital and Intelligent Development of Energy' and the 'Blue Book on the Development of New Power Systems,' which will drive the development of related industries such as photovoltaics, wind power, and energy storage, creating immense opportunities for the Group's integrated smart energy business[36](index=36&type=chunk) - The National Standardization Administration and 11 other departments issued the 'Guidance on Building a Carbon Peak and Carbon Neutrality Standard System,' projecting the formulation and revision of no less than **1,000 national and industry standards by 2025**, bringing new opportunities for the company's new industries in 'dual carbon' related fields[62](index=62&type=chunk) [Green Development and Harmonious Coexistence](index=35&type=section&id=Green%20Development%20and%20Harmonious%20Coexistence) National policies emphasize promoting green development and harmonious coexistence between humanity and nature, providing policy assurance for the environmental protection industry - The 20th National Congress of the Communist Party of China emphasized 'promoting green development and harmonious coexistence between humanity and nature,' providing top-level design and policy assurance for the company's green and low-carbon transformation and development[61](index=61&type=chunk) [Carbon Peak and Carbon Neutrality Standard System](index=36&type=section&id=Carbon%20Peak%20and%20Carbon%20Neutrality%20Standard%20System) The release of the 'Guidance on Building a Carbon Peak and Carbon Neutrality Standard System' will promote full coverage of carbon accounting and verification standards, bringing opportunities for the company's new industries in 'dual carbon' related fields - The 'Guidance on Building a Carbon Peak and Carbon Neutrality Standard System' was released, projecting the formulation and revision of no less than **1,000 national and industry standards by 2025**, achieving full coverage of carbon accounting and verification standards in major industries[62](index=62&type=chunk) [Construction of New Energy System](index=36&type=section&id=Construction%20of%20New%20Energy%20System) The National Energy Administration released the 'Blue Book on the Development of New Power Systems,' outlining a 'three-step' development path that will drive the growth of industries such as photovoltaics, wind power, and energy storage, creating immense opportunities for the company's integrated smart energy business - The National Energy Administration released the 'Blue Book on the Development of New Power Systems,' comprehensively elaborating on the development philosophy and characteristics of new power systems, and formulating a 'three-step' development path[36](index=36&type=chunk) - The planning and construction of a new energy system will drive the vigorous development of related industries such as photovoltaics, wind power, and energy storage, creating immense opportunities for the Group's integrated smart energy business[36](index=36&type=chunk) [Business Review](index=37&type=section&id=Business%20Review) In the first half of 2023, the Group maintained stable concession installed capacity in environmental protection and energy-saving solutions, increased denitration catalyst production and sales, and actively expanded into non-power industries, while the renewable energy business secured new energy storage EPC projects, thermal power engineering business was not conducted, no new overseas projects were signed, and multiple patents were granted in R&D - As of June 30, 2023, the Group's cumulative installed capacity for desulfurization concession operations was **48,250 MW**; and for denitration concession operations was **41,240 MW**[63](index=63&type=chunk) - From January to June 2023, the Group's denitration catalyst business achieved production and sales volumes of **13,716.26 cubic meters** and **31,074.86 cubic meters**, respectively, and actively sold to non-power industries and overseas customers[39](index=39&type=chunk)[64](index=64&type=chunk)[318](index=318&type=chunk) - From January to June 2023, the Group signed **1 new energy storage EPC project** with an installed capacity of **100 MWh**, and was awarded **1 renewable energy engineering project** pending signing with an installed capacity of **100 MW**[43](index=43&type=chunk) - From January to June 2023, the Group did not undertake thermal power engineering business, had no new overseas projects signed, and no projects under execution[324](index=324&type=chunk)[325](index=325&type=chunk) - In the first half of 2023, the Group obtained **25 patent grants**, including **13 invention patents**, bringing the cumulative number of valid patents to **1,246**[326](index=326&type=chunk) [Environmental Protection and Energy-Saving Solutions Business](index=37&type=section&id=Environmental%20Protection%20and%20Energy-Saving%20Solutions%20Business) This business encompasses environmental facility concession operations, denitration catalysts, environmental facility engineering, water treatment, and energy-saving businesses, with stable concession installed capacity, increased catalyst production and sales, active expansion into non-power industries, and energy-saving achieved through energy consumption diagnostics and technological applications - As of June 30, 2023, the Group's cumulative installed capacity for desulfurization concession operations was **48,250 MW**; and for denitration concession operations was **41,240 MW**[63](index=63&type=chunk) - From January to June 2023, the Group's denitration catalyst business achieved production and sales volumes of **13,716.26 cubic meters** and **31,074.86 cubic meters**, respectively, with **8,761.29 cubic meters** sold to customers outside China Datang Corporation Ltd., including **2,900.8 cubic meters** to overseas customers and **968.45 cubic meters** to non-power industry customers[39](index=39&type=chunk)[64](index=64&type=chunk)[318](index=318&type=chunk) - From January to June 2023, the Group continued to undertake environmental facility engineering businesses, including desulfurization, denitration, dust removal, ultra-low emission, and industrial plant dust control, and actively explored non-power industry markets such as petroleum, coking, steel, and cement[40](index=40&type=chunk) - From January to June 2023, the Group focused on energy consumption diagnostics and 'one plant, one policy' indicator improvement, achieving approximately **15%** reduction in ammonia injection and **5-10%** decrease in slurry circulation pump power consumption through the application of new technologies such as denitration fine ammonia injection control technology[158](index=158&type=chunk) [Environmental Facility Concession Operations](index=37&type=section&id=Environmental%20Facility%20Concession%20Operations) As of June 30, 2023, the Group's cumulative installed capacity for desulfurization concession operations was **48,250 MW**, and for denitration concession operations was **41,240 MW** - As of June 30, 2023, the Group's cumulative installed capacity for desulfurization concession operations was **48,250 MW**; and for denitration concession operations was **41,240 MW**[63](index=63&type=chunk) [Denitration Catalyst Business](index=38&type=section&id=Denitration%20Catalyst%20Business) In the first half of 2023, denitration catalyst production and sales volumes were **13,716.26 cubic meters** and **31,074.86 cubic meters**, respectively, with active expansion into non-power industries and overseas markets H1 2023 Denitration Catalyst Business Data | Indicator | Quantity (cubic meters) | | :--- | :--- | | Production Volume | 13,716.26 | | Sales Volume | 31,074.86 | | Volume of Waste Catalyst Comprehensive Utilization | 2,437.6 | - From January to June 2023, the Group sold **8,761.29 cubic meters** of catalysts to customers outside China Datang Corporation Ltd., including **2,900.8 cubic meters** to overseas customers and **968.45 cubic meters** to non-power industry customers such as glass and alumina industries[318](index=318&type=chunk) [Environmental Facility Engineering Business](index=38&type=section&id=Environmental%20Facility%20Engineering%20Business) In the first half of 2023, the Group continued to undertake engineering businesses including desulfurization, denitration, dust removal, ultra-low emission, and industrial plant dust control, and actively explored non-power industry markets - From January to June 2023, the Group continued to undertake environmental facility engineering businesses, including desulfurization, denitration, dust removal, ultra-low emission, and industrial plant dust control, and actively explored non-power industry markets such as petroleum, coking, steel, and cement[40](index=40&type=chunk) H1 2023 Environmental Facility Engineering Business in Power Industry | Project | Number of Awarded and Signed Projects | Value of Awarded and Signed Projects (RMB million) | Number of Projects Under Construction | Value of Projects Under Construction (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Desulfurization | 1 | 26.51 | 2 | 243.66 | | Denitration | 2 | 52.26 | 1 | 19.30 | | Dust Removal | 0 | 0 | 2 | 228.16 | | Others | 2 | 94.80 | 0 | 0 | [Water Treatment Business](index=39&type=section&id=Water%20Treatment%20Business) As of June 30, 2022, the Group had **4 operational water treatment engineering projects** and **7 projects under construction** - As of June 30, 2022, the Group had **4 operational water treatment engineering projects** and **7 water treatment engineering projects under construction**[320](index=320&type=chunk) [Energy-Saving Business](index=39&type=section&id=Energy-Saving%20Business) As of June 30, 2023, the Group had **1 energy performance contracting project** under execution, with a total investment of **RMB 37.5098 million** - As of June 30, 2023, the Group had **1 energy performance contracting project** under execution, with a total investment of **RMB 37.5098 million**[321](index=321&type=chunk) [Renewable Energy Business](index=39&type=section&id=Renewable%20Energy%20Business) The Group is actively expanding in the renewable energy sector, having signed new energy storage EPC projects and operating multiple distributed photovoltaic power generation projects - From January to June 2023, the Group signed **1 new energy storage EPC project** with an installed capacity of **100 MWh**, and was awarded **1 renewable energy engineering project** pending signing with an installed capacity of **100 MW**[43](index=43&type=chunk) - As of June 30, 2023, the Group had a total of **3 renewable energy engineering projects under construction**, with a total installed capacity of **6.535 MW**[43](index=43&type=chunk) - As of June 30, 2023, the Group had **8 operational distributed photovoltaic power generation projects**, with a total installed capacity of **7.97 MW**[322](index=322&type=chunk) [Investment Business](index=39&type=section&id=Investment%20Business) As of June 30, 2023, the Group had **8 operational distributed photovoltaic power generation projects**, with a total installed capacity of **7.97 MW** - As of June 30, 2023, the Group had **8 operational distributed photovoltaic power generation projects**, with a total installed capacity of **7.97 MW**[322](index=322&type=chunk) [Engineering Business](index=39&type=section&id=Engineering%20Business) In the first half of 2023, the Group signed **1 new energy storage EPC project** with an installed capacity of **100 MWh**, and had **3 renewable energy engineering projects under construction** - From January to June 2023, the Group signed **1 new energy storage EPC project** with an installed capacity of **100 MWh**, and was awarded **1 renewable energy engineering project** pending signing with an installed capacity of **100 MW**[43](index=43&type=chunk) - As of June 30, the Group had a total of **3 renewable energy engineering projects under construction**, with a total installed capacity of **6.535 MW**[43](index=43&type=chunk) [Thermal Power Engineering Business](index=39&type=section&id=Thermal%20Power%20Engineering%20Business) From January to June 2023, the Group did not undertake thermal power engineering business - From January to June 2023, the Group did not undertake thermal power engineering business[324](index=324&type=chunk) [Overseas Business](index=39&type=section&id=Overseas%20Business) In the first half of 2023, the Group had no new overseas projects signed and no projects under execution - From January to June 2023, the Group had no new overseas projects signed and no projects under execution[325](index=325&type=chunk) [Research and Development](index=39&type=section&id=Research%20and%20Development) In the first half of 2023, the Group obtained **25 patent grants**, including **13 invention patents**, bringing the cumulative number of valid patents to **1,246** - In the first half of 2023, the Group obtained **25 patent grants**, including **13 invention patents**, bringing the cumulative number of valid patents to **1,246**[326](index=326&type=chunk) [Discussion and Analysis of Financial Position and Operating Results](index=40&type=section&id=Discussion%20and%20Analysis%20of%20Financial%20Position%20and%20Operating%20Results) In the first half of 2023, the Group achieved growth in both revenue and profit, primarily driven by increased construction service revenue and reduced finance costs, with a slight decrease in gross margin but overall improved profitability, significant increases in cash and cash equivalents and net current assets, and a lower net debt to capital ratio, indicating an improved financial position - The Group's revenue increased by **7.8%** to **RMB 2,499.2 million** for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to increased construction service revenue[68](index=68&type=chunk) - The Group's profit for the period was **RMB 270.1 million**, an increase of **RMB 70.2 million** or **35.1%** compared to the same period in 2022[162](index=162&type=chunk)[177](index=177&type=chunk) - The Group's cash and cash equivalents increased by **25.3%** to **RMB 1,092.4 million** as of June 30, 2023, from **RMB 872.2 million** as of December 31, 2022[82](index=82&type=chunk) - The Group's net current assets increased by **503.6%** to **RMB 2,439.8 million** as of June 30, 2023, from **RMB 404.2 million** as of December 31, 2022, primarily due to increased trade receivables and reduced interest-bearing bank and other borrowings[83](index=83&type=chunk) - The Group's net debt to capital ratio was **39.71%** as of June 30, 2023, a decrease of **1.17 percentage points** from **40.88%** as of December 31, 2022[86](index=86&type=chunk) [Overview](index=40&type=section&id=Overview) In the first half of 2023, the Group achieved growth in both revenue and profit, with increases in cash and cash equivalents and total assets, a slight rise in total liabilities, and an improved return on total assets H1 2023 Financial Overview | Indicator | June 30, 2023 (RMB million) | December 31, 2022 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,499.2 | - | +7.8 | | Profit for the Period | 270.1 | - | +35.1 | | Profit Attributable to Owners of the Parent | 266.2 | - | - | | Cash and Cash Equivalents | 1,092.4 | 872.2 | +25.3 | | Total Assets | 18,478.3 | 18,348.3 | +0.7 | | Total Liabilities | 11,461.9 | 11,451.5 | +0.1 | | Return on Total Assets | 1.46% | 1.11% (2022同期) | +0.35 percentage points | [Operating Results](index=40&type=section&id=Operating%20Results) The Group's revenue grew by **7.8%** and gross profit by **6.8%** in the first half of 2023, despite a slight decrease in gross margin, while other income significantly increased, finance costs decreased, and both profit before tax and profit for the period achieved substantial growth - The Group's revenue increased by **7.8%** to **RMB 2,499.2 million** for the six months ended June 30, 2023, from **RMB 2,318.8 million** in the same period of 2022, primarily due to increased construction service revenue[68](index=68&type=chunk) - The Group's gross profit increased by **6.8%** to **RMB 517.2 million** from **RMB 484.2 million** in the same period of 2022, but the gross margin slightly decreased from **20.9%** to **20.7%**[105](index=105&type=chunk) - Other income and losses increased by **89.3%** to **RMB 67.2 million** compared to the same period in 2022, primarily due to an increase in government grants[66](index=66&type=chunk) - Finance costs decreased by **13.6%** to **RMB 89.1 million** compared to the same period in 2022, primarily due to a reduction in the annual interest rate on borrowings during the current period[164](index=164&type=chunk) - Profit before tax increased by **32.0%** to **RMB 319.4 million** for the six months ended June 30, 2023, from **RMB 241.9 million** in the same period of 2022[98](index=98&type=chunk) - Profit for the period increased by **35.1%** from **RMB 199.9 million** to **RMB 270.1 million**, with its proportion of total revenue rising to **10.8%**[177](index=177&type=chunk) [Revenue (Operating Results)](index=40&type=section&id=Revenue%20(Operating%20Results)) The Group's revenue increased by **7.8%** year-on-year to **RMB 2,499.2 million** in the first half of 2023, primarily driven by growth in construction service revenue - The Group's revenue increased by **7.8%** to **RMB 2,499.2 million** for the six months ended June 30, 2023, from **RMB 2,318.8 million** in the same period of 2022, primarily due to increased construction service revenue[68](index=68&type=chunk) [Cost of Sales](index=41&type=section&id=Cost%20of%20Sales) The Group's cost of sales increased by **8.0%** year-on-year to **RMB 1,982.0 million**, in line with revenue growth - The Group's cost of sales increased by **8.0%** to **RMB 1,982.0 million** for the six months ended June 30, 2023, from **RMB 1,834.6 million** in the same period of 2022, primarily due to increased construction costs in line with revenue growth during the year[69](index=69&type=chunk) [Selling and Distribution Expenses](index=41&type=section&id=Selling%20and%20Distribution%20Expenses) The Group's selling and distribution expenses increased by **55.6%** year-on-year to **RMB 9.8 million** - The Group's selling and distribution expenses increased by **55.6%** to **RMB 9.8 million** for the six months ended June 30, 2023, from **RMB 6.3 million** in the same period of 2022[70](index=70&type=chunk) [Administrative Expenses](index=41&type=section&id=Administrative%20Expenses) The Group's administrative expenses increased by **1.8%** year-on-year to **RMB 162.2 million** - The Group's administrative expenses increased by **1.8%** to **RMB 162.2 million** for the six months ended June 30, 2023, from **RMB 159.3 million** in the same period of 2022[71](index=71&type=chunk) [Other Gains and Losses](index=41&type=section&id=Other%20Gains%20and%20Losses) The Group's other gains and losses increased by **89.3%** to **RMB 67.2 million** compared to the same period in 2022, primarily due to higher government grants - The Group's other gains and losses increased by **89.3%** to **RMB 67.2 million** for the six months ended June 30, 2023, from **RMB 35.5 million** in the same period of 2022, primarily due to an increase in government grants compared to last year[66](index=66&type=chunk) [Net Other Expenses](index=41&type=section&id=Net%20Other%20Expenses) For the six months ended June 30, 2023, the Group had no net other expenses, compared to **RMB 4.3 million** in the same period of 2022, which was primarily due to exchange differences arising from provisions for losses on pending litigation - For the six months ended June 30, 2023, the Group had no net other expenses, compared to **RMB 4.3 million** in the same period of 2022, which was due to exchange differences arising from provisions for losses on pending litigation[96](index=96&type=chunk) [Finance Costs (Operating Results)](index=41&type=section&id=Finance%20Costs%20(Operating%20Results)) The Group's finance costs decreased by **13.6%** year-on-year to **RMB 89.1 million**, primarily due to a reduction in the annual interest rate on borrowings - The Group's finance costs decreased by **13.6%** to **RMB 89.1 million** for the six months ended June 30, 2023, from **RMB 103.1 million** in the same period of 2022, primarily due to a reduction in the Group's annual interest rate on borrowings during the current period compared to the prior year[164](index=164&type=chunk) [Profit Before Tax](index=42&type=section&id=Profit%20Before%20Tax) The Group's profit before tax increased by **32.0%** year-on-year to **RMB 319.4 million** - The Group's profit before tax increased by **32.0%** to **RMB 319.4 million** for the six months ended June 30, 2023, from **RMB 241.9 million** in the same period of 2022[98](index=98&type=

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].

Business Performance - For the year ended 31 December 2021, the Group's revenue amounted to RMB 5,288.4 million, representing a decrease of 22.5% compared to the previous year[20]. - The Group's gross profit for the year ended 31 December 2021 was RMB 341.4 million, a decrease of 70.8%, with a gross profit margin of 6.5%, down 10.67 percentage points from the previous year[20]. - The total comprehensive income attributable to owners of the parent for the year ended 31 December 2021 was RMB -209.9 million, representing a decrease of 169.2% compared to the previous year[20]. - The Group's profit for 2021 amounted to RMB -443.3 million, a decrease of RMB 654.7 million compared to RMB 211.4 million in 2020[64]. - The Group's revenue decreased by 22.5% from RMB 6,821.1 million in 2020 to RMB 5,288.4 million in 2021, primarily due to a decrease in revenue from engineering businesses[66]. Financial Position - Total current assets as of 31 December 2021 were RMB 10,570.7 million, down from RMB 11,778.9 million in 2020[22]. - Total non-current assets as of 31 December 2021 were RMB 7,857.7 million, down from RMB 8,401.9 million in 2020[22]. - Total assets as of 31 December 2021 amounted to RMB 18,428.4 million, a decrease from RMB 20,180.9 million in 2020[22]. - The Group's cash and cash equivalents decreased by 18.7% to RMB 1,244.9 million as of December 31, 2021, compared to RMB 1,531.7 million at the end of 2020[66]. - The total liabilities of the Group decreased by 9.1% to RMB 11,672.8 million as of December 31, 2021, compared to RMB 12,841.6 million in 2020[64]. Shareholder Information - As of December 31, 2021, the total registered share capital of the company was RMB 2,967,542,000, divided into 624,296,200 H Shares and 2,343,245,800 Domestic Shares[140]. - The Board proposed a final dividend of RMB 0.0298 per share (before tax) for the year ended 31 December 2021[20]. - The Company will withhold a 10% enterprise income tax on dividends distributed to non-resident enterprise shareholders[150]. - The total value of goods sold and services provided to China Datang Group was approximately RMB 4,738.4 million, representing about 89.60% of the total revenue of the Group[98]. Environmental Initiatives - The Company seized national opportunities related to "carbon peaking and carbon neutrality," promoting three new business directions: in-depth environmental treatment, resource recycling, and integrated intelligent energy[7]. - The Company aims to become a first-class comprehensive ecological environment management service provider by deepening cooperation with local governments and advanced enterprises[8]. - The Group is actively exploring new resource recycling businesses, including the reuse of waste fan blades and photovoltaic components[32]. - The Group's environmental protection governance businesses are expanding into non-electric sectors such as steel, cement, and metallurgy[35]. - The Group will accelerate the development of non-fossil energy and improve the scale of wind and photovoltaic power generation, focusing on both centralized and distributed energy deployment[111]. Management and Governance - The Company has implemented risk management and internal control measures to ensure compliance with relevant laws and regulations[129]. - The Company is committed to maintaining a balance with the ecological and social environment while pursuing mutual development with customers and employees[127]. - The Company has established compliance contracts with Supervisors regarding relevant laws and regulations[174]. - The Company has received annual confirmations of independence from each independent non-executive Director[165]. - The Company announced changes in Directors, Supervisors, and Senior Management on multiple dates in 2021[169]. Future Outlook - The Group plans to actively explore clients in the iron and steel, cement, and petrochemical industries to diversify its client base[99]. - The Group aims to achieve breakthroughs in acquiring specialized and advanced core technologies and new products[104]. - The Group's business development is heavily reliant on the environmental protection policies of the PRC[97]. - The Group will implement six key initiatives including business breakthroughs, management enhancements, and risk mitigation to support its strategic goals during the critical "14th Five-Year Plan" period[106]. - The Group's strategic focus includes expanding its environmental protection and energy conservation business to meet increasing market demands[39].

Financial Performance - The company's revenue for the six months ended June 30, 2021, was RMB 2,196,597,000, a decrease of 23.4% compared to RMB 2,867,941,000 for the same period in 2020[19]. - Gross profit for the same period was RMB 398,278,000, down from RMB 424,529,000, reflecting a gross margin of approximately 18.1%[19]. - The net profit attributable to the parent company for the period was RMB 66,425,000, compared to RMB 4,189,000 in the previous year, indicating a significant increase[20]. - The total revenue for the environmental energy-saving solutions segment increased by 3.0% to RMB 2,119.4 million for the six months ended June 30, 2021, compared to RMB 2,058.3 million in the same period of 2020[56]. - The group's pre-tax profit increased by 207.2% to RMB 102.0 million for the six months ended June 30, 2021, compared to RMB 33.2 million in the same period of 2020[51]. - The profit attributable to the owners of the parent increased by RMB 36.3 million to RMB 86.6 million for the six months ended June 30, 2021, compared to RMB 50.3 million in the same period of 2020[54]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in the last quarter, representing a 20% year-over-year growth[131]. - The company reported a significant increase in revenue, achieving a total of 42 billion RMB for the first half of 2021, representing a year-on-year growth of 15%[148]. Assets and Liabilities - Total assets as of June 30, 2021, were RMB 18,935,981,000, down from RMB 20,180,858,000 at the end of 2020[23]. - The company's total liabilities decreased to RMB 11,671,637,000 from RMB 12,841,580,000, resulting in total equity of RMB 7,264,344,000[23]. - The total assets decreased by 6.2% to RMB 18,936.0 million as of June 30, 2021, compared to RMB 20,180.9 million as of December 31, 2020[44]. - The total liabilities decreased by 9.1% to RMB 11,671.6 million as of June 30, 2021, compared to RMB 12,841.6 million as of December 31, 2020[44]. - The net asset value stood at RMB 7,264,344,000, slightly down from RMB 7,339,278,000 at the end of 2020[163]. - The group's borrowings decreased by 14.1% to RMB 5,214.8 million as of June 30, 2021, from RMB 6,070.9 million as of December 31, 2020[64]. Cash Flow - Cash flows from operating activities for the first half of 2021 were RMB 327,008,000, a decrease from RMB 628,682,000 in the same period of 2020[24]. - The group's cash and cash equivalents decreased by 56.2% to RMB 671.3 million as of June 30, 2021, from RMB 1,531.7 million as of December 31, 2020[62]. - The net cash flow from operating activities for the first half of 2021 was RMB 327,008, a decrease of 48% compared to RMB 628,682 in the same period of 2020[166]. - The total cash and cash equivalents at the end of the period were RMB 671,280, down from RMB 1,299,267 at the end of the first half of 2020, reflecting a decrease of 48%[166]. Operational Highlights - The company operates in over 30 provinces and municipalities in China and has expanded its services to 8 countries[26]. - The company signed three new renewable energy projects with a total installed capacity of 310 MW in the first half of 2021[37]. - The company is focusing on the Indian environmental market and actively developing renewable energy markets in Southeast Asia, although no new overseas projects were signed in the first half of 2021 due to the impact of the COVID-19 pandemic[39]. - The company continues to focus on expanding its environmental and renewable energy solutions, with ongoing projects in coal-fired power plant emissions control and renewable energy engineering[179][177]. Research and Development - The company has obtained 64 patent authorizations in the first half of 2021, including 4 invention patents, bringing the total to 1,446 patents[42]. - The company plans to invest 1 billion RMB in research and development for new technologies in the upcoming fiscal year[148]. - The company is investing 50 million in research and development to drive innovation in renewable energy technologies[140]. Shareholder Information - Total share capital as of June 30, 2021, was 2,967,542,000 shares, with no changes during the reporting period[87]. - China Datang holds 100% of domestic shares, representing approximately 78.96% of total shares[90]. - Anbang Investment Holdings holds 120,540,000 H shares, accounting for 19.31% of relevant shares[90]. - The public shareholding ratio is at least 20%, complying with the listing rules of the Stock Exchange[105]. Corporate Governance - The company has adhered to the corporate governance code without deviations during the reporting period[99]. - No significant legal disputes or arbitration matters were reported as of June 30, 2021[103]. - The arbitration ruling against the company resulted in a compensation of RMB 98,865,000[102]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 25% based on current market trends and user acquisition strategies[137]. - The management team emphasized the importance of sustainability, aiming for a 30% reduction in carbon emissions by 2025[138]. - The company plans to enhance its digital marketing efforts, allocating an additional 20% of its budget to online advertising campaigns[136].

Financial Performance - In 2020, the company achieved a revenue of RMB 6.82 billion and a pre-tax profit of RMB 323 million, with a return on equity of 2.9% and a debt-to-asset ratio of 63.6%[5] - For the year ended December 31, 2020, the group's revenue was RMB 6,821.1 million, an increase of 6.3% compared to the previous year[12] - The group's gross profit for the year was RMB 1,168.3 million, up 8.2% year-on-year, with a gross margin of 17.1%, an increase of 0.3 percentage points[12] - The total comprehensive income attributable to equity holders of the parent company was RMB 303.3 million, representing a 38.1% increase from the previous year[12] - The total profit for 2020 was RMB 211.4 million, a decrease of RMB 34.0 million compared to RMB 245.4 million in 2019[37] - Net profit decreased by RMB 34.0 million to RMB 211.4 million in 2020, with the profit margin dropping to 3.1% from 3.8% in 2019[49] - Profit attributable to the parent company increased by RMB 84.0 million to RMB 302.9 million in 2020[50] - Revenue from environmental energy solutions decreased by 10.5% to RMB 4,878.8 million in 2020, accounting for 71.7% of total revenue[52] - Renewable energy engineering revenue surged by 142.4% to RMB 1,851.3 million in 2020, representing 26.6% of total revenue[53] Environmental Initiatives - The company successfully reduced sulfur dioxide emissions by 1.37 million tons and nitrogen oxide emissions by 160,000 tons during the year, contributing positively to national ecological civilization construction[5] - The group plans to focus on clean energy projects to achieve carbon peak and carbon neutrality goals, with expectations for clean energy to account for 80% of energy consumption growth in the next five years[17] - The company is committed to becoming a leading comprehensive energy and environmental governance service provider, integrating investment, construction, and operation[7] - The company is actively expanding its environmental governance business into non-electric sectors such as steel, cement, and metallurgy, broadening its business scope and influence[21] Business Expansion and Strategy - The company secured its first photovoltaic EPC project in three years, marking a significant step in expanding its presence in the renewable energy market[6] - The company aims to strengthen strategic cooperation with government and industry leaders to enhance investment operations, market development, and product manufacturing[5] - The company is focused on diversifying its business into five major sectors: production operations, product manufacturing, resource utilization, clean energy, and engineering services[7] - The company plans to enhance lean management across all business processes to create greater value with minimal resource input, aiming to improve resource utilization efficiency and profitability[73] - The company intends to develop new breakthroughs in urban sewage treatment and expand its business scope to key regions including the Beijing-Tianjin-Hebei area and the Guangdong-Hong Kong-Macao Greater Bay Area[74] Shareholder Information - The company’s total issued shares as of December 31, 2020, were 2,967,542,000, with the controlling shareholder holding approximately 78.96%[9] - The board proposed a final dividend of RMB 0.0446 per share (pre-tax) for the year ended December 31, 2020[12] - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders[96] Governance and Compliance - The company has implemented risk management and internal controls to ensure compliance with applicable laws and regulations[83] - The board believes that the company is in compliance with all relevant legal and regulatory requirements in all material aspects[83] - The company has adhered to the corporate governance code as outlined in the stock exchange's rules, maintaining high standards of corporate governance[158] - The company has established a comprehensive governance policy in accordance with listing rules, which was reviewed and adhered to throughout 2020[178] Research and Development - The company obtained 163 utility model patents and 18 invention patents in 2020, with a total of 1,382 patents granted as of December 31, 2020[33] - The company will focus on technological innovation, combining independent research and development with technology introduction to strengthen its core technology reserves[75] - The company plans to establish a comprehensive innovation system to facilitate the transformation of technological achievements and deepen the integration of industry, academia, and research[75] Market and Customer Relations - The company sold goods and provided services to China Datang Group totaling approximately RMB 6,160.49 million, accounting for about 90% of total revenue for the year ended December 31, 2020[67] - The company plans to actively expand its customer base beyond China Datang Group, with contracts valued at RMB 347 million signed with other customers, representing about 28.40% of total contract value[67] - The company maintains good relationships with customers and suppliers, ensuring effective communication through various channels[102] Financial Position - The total assets of the group as of December 31, 2020, were RMB 20,180.9 million, a decrease from RMB 21,170.8 million in 2019[14] - The total liabilities of the group were RMB 12,841.6 million, down from RMB 13,936.9 million in 2019[14] - The net cash flow from operating activities was RMB 1,838.8 million, a significant recovery from a negative cash flow of RMB 183.2 million in 2019[15] - The company's cash and cash equivalents decreased by 3.1% from RMB 1,580.4 million at the end of 2019 to RMB 1,531.7 million at the end of 2020[37] Management Changes - Mr. Qu Bo has been appointed as Chairman and Non-Executive Director since October 2020[112] - Mr. Jin Yaohua resigned as Chairman and Non-Executive Director in October 2020[112] - Mr. Tian Dan has been serving as Executive Director since October 2020[112] - Mr. Hou Guoli transitioned from Executive Director to Non-Executive Director in July 2020 and resigned as Non-Executive Director in October 2020[112] - Mr. Wang Yanwen transitioned from Deputy General Manager to General Manager in July 2020[113] Related Party Transactions - The company has a property leasing framework agreement with China Datang, effective for 20 years, with a rental cap of RMB 100 million for 2020, and actual rental payments amounting to RMB 34.39 million[139] - The integrated products and services framework agreement with China Datang includes environmental energy-saving solutions and renewable energy engineering services, with a three-year validity and potential for renewal[141][142] - The total amount of products and services provided to China Datang Group in 2020 was RMB 6,160 million, against an approved limit of RMB 11,860 million[146] Challenges and Risks - The company recognizes the ongoing challenges posed by the COVID-19 pandemic, which may severely limit its overseas market expansion efforts[72] - The company anticipates that the development of the coal-fired power industry will face further restrictions under the "carbon peak, carbon neutrality" framework, potentially impacting its environmental facility operations[72]

Financial Performance - The company's revenue for the six months ended June 30, 2020, was RMB 2,867,941 thousand, an increase of 18.6% compared to RMB 2,418,489 thousand for the same period in 2019[20]. - Gross profit for the same period was RMB 424,529 thousand, down 17.0% from RMB 511,932 thousand in 2019[20]. - The company reported a net profit of RMB 4,189 thousand for the six months ended June 30, 2020, a significant decrease of 95.4% compared to RMB 91,277 thousand in 2019[20]. - The group's profit for the six months ended June 30, 2020, was RMB 4.2 million, a decrease of RMB 87.1 million from RMB 91.3 million in the same period of 2019, resulting in a profit margin of 0.1% compared to 3.8% in 2019[46][47]. - The total comprehensive income for the six months ended June 30, 2020, was RMB 4,923,000, compared to RMB 88,766,000 for the same period in 2019, representing a significant decrease[124]. - The profit attributable to the owners of the parent company for the first half of 2020 was RMB 50,299,000, down from RMB 89,880,000 in the previous year, indicating a decline of approximately 44%[124]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 20,826,362 thousand, slightly down from RMB 21,170,759 thousand at the end of 2019[22]. - The total liabilities decreased by 1.8% to RMB 13,689.6 million as of June 30, 2020, from RMB 13,936.9 million as of December 31, 2019[41]. - Non-current assets totaled RMB 8,359,188,000 as of June 30, 2020, compared to RMB 8,711,657,000 at the end of 2019, reflecting a decrease of about 4%[125]. - Current assets amounted to RMB 12,467,174,000, slightly increasing from RMB 12,459,102,000 in the previous year, showing a marginal growth of 0.07%[125]. - The company's total assets as of June 30, 2020, were RMB 7,136,716 thousand, compared to RMB 7,233,881 thousand at the end of 2019[127]. Cash Flow - Cash flow from operating activities for the six months ended June 30, 2020, was RMB 628,682 thousand, a turnaround from a cash outflow of RMB (673,764) thousand in 2019[23]. - The company's cash and cash equivalents decreased by 17.8% to RMB 1,299.3 million as of June 30, 2020, from RMB 1,580.4 million at the end of 2019[57]. - The net cash flow from operating activities for the six months ended June 30, 2020, was RMB 628,682 thousand, compared to a negative RMB 673,764 thousand in the same period of 2019[128]. Revenue Segmentation - Revenue from the renewable energy engineering segment was RMB 752.0 million, representing a significant increase of 1,955.2% compared to RMB 36.6 million in the same period of 2019[51]. - The revenue from environmental energy-saving solutions was RMB 2,058,306 thousand, while renewable energy engineering contributed RMB 752,011 thousand, and other businesses generated RMB 57,624 thousand[142]. - The company reported a significant increase in sales to China Datang and its subsidiaries, with revenue of approximately RMB 2,610 million for the six months ended June 30, 2020, compared to RMB 2,284 million for the same period in 2019[145]. Operational Highlights - The company serves clients across more than 30 provinces, autonomous regions, and municipalities in China, as well as in 8 other countries[24]. - The company is focused on environmental protection and energy-saving solutions, including the operation of environmental facilities and the production of denitration catalysts[24]. - The company plans to expand its operations in response to increasing demand for ecological protection and restoration projects[25]. - The company signed 2 new water service projects in the first half of 2020, with 4 operational water service projects as of June 30, 2020[33]. - The company has 5 overseas projects in execution as of June 30, 2020, focusing on the Indian environmental market and Southeast Asian biomass power stations[38]. Management and Governance - The company has over 30 years of experience in the power industry, with key management personnel holding significant roles in various power generation companies[113][114][115][116][117]. - The management team includes professionals with advanced degrees, such as a Master's in Business Administration from Tsinghua University and a Bachelor's degree in Thermal Energy Engineering from Taiyuan University of Technology[113][116]. - The company has undergone several management changes, including the appointment of Wang Yanwen as the new general manager[97]. Research and Development - The company completed and published 26 technical standards and had 42 standards in preparation as of June 30, 2020, with 37 utility model patents and 8 invention patents granted in the first half of 2020[39]. - The company is actively developing new products in the denitration catalyst sector, including collaborative denitration and mercury removal catalysts[72]. - The company is committed to enhancing research and development innovation to seize new opportunities brought by technological advancements[72]. Market Outlook - The company anticipates a good market outlook in the second half of 2020, driven by the release of environmental protection projects due to the COVID-19 pandemic[28]. - The group is actively expanding its overseas business, particularly in countries along the "Belt and Road" initiative, but faces risks such as financing challenges and local market understanding[66]. - The group plans to focus on high-quality development and optimize its environmental facility management while expanding its denitrification catalyst business and enhancing new product R&D[69].

Financial Performance - In 2019, the company achieved a revenue of RMB 6.415 billion and a pre-tax profit of RMB 303 million, with a return on equity of 3.4% and a debt-to-asset ratio of 65.80%[7]. - For the year ended December 31, 2019, the company's revenue was RMB 6,414.6 million, a decrease of 25.3% compared to the previous year[13]. - The gross profit for the same period was RMB 1,080.0 million, down 20.0%, with a gross margin of 16.8%, an increase of 1.1 percentage points year-on-year[13]. - The total comprehensive income attributable to the owners of the parent company was RMB 219.7 million, a significant decrease of 71.4% compared to the previous year[13]. - The profit for 2019 was RMB 245.4 million, a decrease of RMB 537.8 million compared to RMB 783.2 million in 2018[37]. - The company's revenue decreased by 25.3% from RMB 8,588.1 million in 2018 to RMB 6,414.6 million in 2019, primarily due to market saturation in China's power industry and a reduction in traditional environmental engineering projects[38]. - The total revenue for the company decreased by 24.9% from RMB 8,815.3 million in 2018 to RMB 6,618.2 million in 2019[50]. - Profit attributable to the parent company decreased from RMB 766.7 million in 2018 to RMB 218.9 million in 2019[47]. - The total gross profit for the environmental energy-saving solutions segment decreased by 18.1% to RMB 1,084,078,000 in 2019, with a gross margin of 19.5% compared to 19.9% in 2018[52]. Environmental Initiatives - The company’s desulfurization capacity reached 37.93 million kW and denitrification capacity reached 31.80 million kW, successfully reducing sulfur dioxide emissions by 1.2373 million tons and nitrogen oxides by 140,100 tons throughout the year[8]. - The company continues to focus on environmental protection and energy-saving solutions, including the development of new technologies and market expansion strategies[18]. - The company is committed to fulfilling its environmental responsibilities as a primary entity in pollution prevention and control, in line with national regulations[22]. - The company is actively involved in the management of solid waste and urban garbage classification, aligning with national environmental protection initiatives[22]. - The company maintained its position as the largest desulfurization and denitrification concessionaire and denitrification catalyst manufacturer in China[13]. Market Expansion and Strategy - The company plans to accelerate its internationalization process in response to China's Belt and Road Initiative and aims to provide integrated environmental solutions for urban areas and enterprises[5]. - The company has identified opportunities in non-electric industries, expanding its market space in petrochemicals, steel, cement, and urban areas[10]. - The company achieved a market breakthrough by securing four projects in the external environmental facility operation market of China Datang Group, while actively expanding into non-electric sectors such as steel, cement, and metallurgy[23]. - The company is focused on accelerating the ultra-low emission transformation in the steel industry, with a target for 60% of production capacity in key areas to be transformed by the end of 2020, increasing to over 80% by the end of 2025[20]. - The company aims to become a world-class technology and environmental service provider by focusing on high-quality development and continuous innovation[10]. Research and Development - The company holds 148 patent authorizations, including 25 invention patents, and has established various research and development centers to enhance its technological capabilities[9]. - The company aims to introduce 1-2 new core technologies annually through a combination of external acquisition and in-house research and development, fostering new business growth points[73]. - The company received 10 provincial and industry-level technology awards in 2019, highlighting its commitment to technological innovation[34]. Financial Health and Liabilities - The total assets of the company as of December 31, 2019, amounted to RMB 21,170.8 million, an increase from RMB 20,459.9 million in 2018[16]. - The total liabilities of the company were RMB 13,936.9 million, compared to RMB 13,140.7 million in the previous year[16]. - The company reported a net cash outflow from operating activities of RMB 183.2 million for the year ended December 31, 2019[17]. - The company's cash and cash equivalents decreased by 5.8% to RMB 1,580.4 million as of December 31, 2019, down from RMB 1,677.7 million in 2018[54]. - The net current assets decreased by 4.7% to RMB 1,884.3 million as of December 31, 2019, primarily due to a 39.7% increase in prepayments and other receivables[55]. Corporate Governance - The board of directors consists of nine members, including four non-executive directors, two executive directors, and three independent non-executive directors, ensuring a balanced structure[154]. - The company has established a remuneration committee to determine director compensation based on qualifications and market conditions[169]. - The company has a clear process for appointing new directors, involving a nomination committee and shareholder approval[166]. - The company has maintained strict compliance with listing rules, with no significant legal lawsuits against directors as of December 31, 2019[173]. - The company has a diversity policy for board members, considering factors such as gender, age, and professional experience[167]. Shareholder Relations - The company expressed gratitude to shareholders and stakeholders for their support and aims to deliver better returns in the future[11]. - The proposed final dividend for the year ended December 31, 2019, is RMB 0.0338 per share, pending approval at the annual general meeting[89]. - The company has a framework agreement with China Datang Group for property leasing, effective for 20 years, with a maximum rental payment cap of RMB 100 million for 2019[125]. Risk Management - The company intends to enhance its risk management framework to mitigate industry, financial, legal, and overseas risks, ensuring stable operational continuity[75]. - The company has established a comprehensive risk management and internal control system, with 10 functional departments responsible for financial operations and monitoring[196]. - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder investments[197].

Financial Performance - The company's revenue for the six months ended June 30, 2019, was RMB 2,418,489,000, a decrease of 9.36% compared to RMB 2,668,530,000 for the same period in 2018[8]. - The gross profit for the same period was RMB 511,932,000, down 9.05% from RMB 562,940,000 in 2018[8]. - The net profit attributable to the parent company for the six months ended June 30, 2019, was RMB 89,880,000, a decrease of 69.5% compared to RMB 295,226,000 in 2018[10]. - The group's revenue decreased by 9.4% to RMB 2,418.5 million for the six months ended June 30, 2019, compared to RMB 2,668.5 million in the same period of 2018[30]. - Profit for the six months ended June 30, 2019, was RMB 91.3 million, a decrease of RMB 213.1 million from RMB 304.4 million in the same period of 2018[39]. - The company's total comprehensive income for the six months ended June 30, 2019, was RMB 87,642 thousand, compared to RMB 293,440 thousand for the same period in 2018[124]. - The profit attributable to the parent company decreased by RMB 205.3 million to RMB 89.9 million for the six months ended June 30, 2019, compared to RMB 295.2 million in the same period of 2018[40]. Assets and Liabilities - The total assets as of June 30, 2019, amounted to RMB 20,764,650,000, an increase of 1.49% from RMB 20,459,981,000 at the end of 2018[11]. - The total liabilities as of June 30, 2019, were RMB 13,688,347,000, an increase of 7.09% from RMB 13,140,659,000 at the end of 2018[11]. - Total assets increased by 1.5% to RMB 20,764.7 million as of June 30, 2019, compared to RMB 20,460.0 million as of December 31, 2018[30]. - Total liabilities increased by 4.2% to RMB 13,688.3 million as of June 30, 2019, compared to RMB 13,140.7 million as of December 31, 2018[30]. - The company's total equity as of June 30, 2019, was RMB 7,076,303 thousand, a decrease from RMB 7,319,322 thousand as of December 31, 2018[124]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of RMB (673,764,000) for the six months ended June 30, 2019, compared to RMB (10,485,000) in 2018[12]. - The net cash flow used in operating activities for the six months ended June 30, 2019, was RMB (673,764) thousand, compared to RMB (10,485) thousand for the same period in 2018[125]. - The net cash flow from financing activities for the six months ended June 30, 2019, was RMB 993,852 thousand, significantly higher than RMB 360,649 thousand in 2018[125]. - The company issued bank loans and other borrowings amounting to RMB 3,219,230 thousand during the six months ended June 30, 2019, compared to RMB 1,747,236 thousand in 2018[125]. - The company’s total interest-bearing bank loans and other loans amounted to RMB 6,431,583 thousand as of June 30, 2019, an increase of 30.4% compared to RMB 4,929,896 thousand as of December 31, 2018[178]. Operational Highlights - The company operates in over 30 provinces, autonomous regions, and municipalities in China, as well as in six other countries[13]. - The company is focused on environmental protection and energy-saving solutions, including the production and sales of denitration catalysts[13]. - The company plans to continue expanding its environmental protection business in response to government policies and market demands[14]. - As of June 30, 2019, the company's desulfurization operating capacity reached 36,610 MW, with 12,000 MW under construction; the denitrification operating capacity was 30,480 MW, with 10,680 MW under construction[18]. - The company signed contracts for environmental facility engineering projects in the non-electricity sector worth RMB 521.71 million (approximately USD 75 million) in the first half of 2019[21]. Market and Strategic Focus - The company is focusing on the Southeast Asian environmental market, enhancing its main business in flue gas desulfurization and denitrification[27]. - The demand for the group's environmental energy-saving business is heavily reliant on the growth rate of coal-fired power generation in China[57]. - The group plans to strengthen its market presence in industries such as steel, cement, and petrochemicals[57]. - The focus for market expansion includes environmental facility operation, denitration catalyst, and water services in both domestic and overseas markets[65]. Management and Governance - The company has a strong management team with extensive experience in the power industry, including over 35 years for Chairman Jin Yaohua[99]. - The company has undergone several management changes, including the transition of non-executive directors to executive roles[94][95]. - The leadership team is well-educated, with advanced degrees in engineering and economics, contributing to informed decision-making and strategic planning[102][105]. - The company has maintained compliance with the corporate governance code and did not deviate from any of its provisions during the reporting period[74]. Technological Advancements - The company emphasizes technological innovation to enhance its technical output capabilities, focusing on developing new services and products in environmental facility operations and denitration catalyst sectors[66]. - The company is actively developing new technologies in wastewater zero discharge and soil remediation to improve profitability[66]. - The company aims to reduce operational costs through technological optimization and upgrades in its environmental facility operations[66]. Regulatory and Compliance - There were no significant legal proceedings or arbitration matters involving the company as of June 30, 2019[77]. - The company did not engage in any significant asset transactions outside of normal business operations during the reporting period[85]. - The company did not utilize any financial instruments for hedging purposes during the reporting period[90].