Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 0.2 per share (pre-tax) based on the total share capital as of the profit distribution registration date for all shareholders[5]. - The company will not increase share capital from reserves or issue bonus shares for the fiscal year 2024, pending approval at the shareholders' meeting[5]. - The company has not proposed any capital increase from reserves for the fiscal year 2024[5]. - The board of directors proposed a final dividend of RMB 0.2 per share (pre-tax), totaling approximately RMB 27,869.05 million, subject to shareholder approval at the annual general meeting[127]. - The company has a calculated distributable reserve for dividends of RMB 1,511,674,690.45, with no share premium account available for capitalized dividend distribution[136]. Financial Performance - The company's operating revenue for 2024 is RMB 3,398,572,272.66, a decrease of 14.08% compared to RMB 3,955,548,511.61 in 2023[25]. - Net profit attributable to shareholders for 2024 is RMB 585,082,147.27, down 7.02% from RMB 629,281,357.74 in 2023[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is RMB 578,600,321.04, a decrease of 6.36% from RMB 617,906,499.99 in 2023[25]. - The basic earnings per share decreased by 6.67% to RMB 0.42 in 2024 compared to RMB 0.45 in 2023[26]. - The weighted average return on net assets fell to 7.32% in 2024, down 0.99 percentage points from 8.31% in 2023[26]. - The total comprehensive income attributable to the parent company's shareholders for the reporting period was RMB 585,082,147.27, a decrease from RMB 629,281,357.74 in the same period of 2023, primarily due to a reduction in net profit[124]. Operational Efficiency and Cost Management - The company is focusing on enhancing operational efficiency and reducing costs through increased centralized procurement and financial cost reduction strategies[33]. - The company is actively pursuing cost reduction and efficiency enhancement strategies, including increasing centralized procurement to lower purchasing costs[41]. - The company plans to focus on operational efficiency and cost management to mitigate the impact of declining construction revenue[70]. - The company is committed to enhancing operational efficiency through technology development and facility upgrades to mitigate rising environmental compliance costs[115]. Risk Management and Compliance - The company has outlined several risks in the report, which investors should review in the "Management Discussion and Analysis" section[10]. - The management has confirmed the accuracy and completeness of the financial report, with no false records or significant omissions[8]. - The company has received a standard unqualified audit opinion from the accounting firm[8]. - The report complies with all disclosure requirements set by relevant stock exchange regulations in both mainland China and Hong Kong[10]. - There are no instances of non-operational fund occupation by controlling shareholders or related parties[7]. - The company has not faced any violations regarding decision-making procedures for external guarantees[7]. Technological Innovation and Development - The company aims to deepen technological innovation and strengthen core competitiveness in the waste incineration power generation sector[35]. - The company has successfully conducted green certificate trading for its Changzhou and Zhangqiu Phase II projects[33]. - The company has obtained a total of 80 authorized patents, including 19 invention patents, by the end of 2024, reflecting its commitment to technological innovation[42]. - The company has successfully implemented digital transformation initiatives, including the application of artificial intelligence technology in waste incineration management, leading to improved operational efficiency[42]. Market and Industry Trends - The company is expanding its market presence in economically developed regions such as the Yangtze River Delta and Pearl River Delta, as well as in central and western regions of China[52]. - The national urban waste incineration processing capacity is expected to reach approximately 800,000 tons/day by the end of 2025, with urban waste incineration accounting for about 65% of the total[45]. - The waste-to-energy industry is characterized by high capital intensity and stable waste generation linked to local population levels, minimizing seasonal and cyclical fluctuations[55]. - The market for waste incineration power generation in China is expected to grow, driven by urbanization and supportive policies, with a shift towards refined management of existing projects[110]. Governance and Management - The company has maintained a consistent governance structure with no significant changes in board composition[162]. - The company continues to focus on maintaining transparency and accountability in its governance practices[164]. - The company has appointed PwC as the new auditor effective June 17, 2022, and plans to propose the appointment of Lixin CPA as the auditor for the fiscal year 2024 at the shareholders' meeting on December 20, 2024[144]. - The supervisory board held eight meetings during the year to monitor the company's operations and approved the 2024 financial report, affirming its compliance with accounting standards and regulations[148]. Future Outlook and Strategic Initiatives - The company is focused on improving its operational efficiency and expanding its project portfolio to meet the growing demand for waste management solutions[54]. - The company is negotiating terms in franchise agreements to allow for adjustments in waste processing fees in response to significant policy changes[116]. - The company is actively assessing the quantity and quality of waste provided by local governments to ensure stable supply and operational efficiency[119]. - The company is expanding its revenue sources by developing heating services tailored to local conditions[114].

Financial Performance - The company’s financial report is guaranteed to be true, accurate, and complete by the board of directors and senior management[9]. - The company achieved operating revenue of RMB 3,398,572,272.66, a decrease of 14.08% compared to CNY 3,955,548,511.61 in 2023[26]. - Net profit attributable to shareholders for 2024 is CNY 585,082,147.27, down 7.02% from CNY 629,281,357.74 in 2023[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is CNY 578,600,321.04, a decrease of 6.36% from CNY 617,906,499.99 in 2023[26]. - The net cash flow from operating activities increased by 47.13% to CNY 1,438,470,488.62 in 2024, compared to CNY 977,677,149.93 in 2023[26]. - The net assets attributable to shareholders at the end of 2024 are CNY 8,052,817,092.46, an increase of 3.14% from CNY 7,807,439,716.26 at the end of 2023[26]. - Total assets at the end of 2024 are CNY 21,988,772,935.44, a decrease of 2.43% from CNY 22,537,265,642.95 at the end of 2023[26]. - Basic earnings per share decreased by 6.67% to RMB 0.42 in 2024 compared to RMB 0.45 in 2023[27]. - The weighted average return on equity fell to 7.32% in 2024, down from 8.31% in 2023, a decrease of 0.99 percentage points[27]. - The total comprehensive income attributable to the parent company's shareholders for the reporting period was RMB 585,082,147.27, a decrease from RMB 629,281,357.74 in the same period of 2023, primarily due to a reduction in net profit[125]. Dividend and Shareholder Returns - The company announced a cash dividend of RMB 0.2 per share (pre-tax) based on the total share capital as of the profit distribution record date[6]. - The company will not increase share capital from reserves or issue bonus shares for the fiscal year 2024[6]. - The company will carry forward the remaining undistributed profits to the next fiscal year[6]. - The company has implemented a mid-term cash dividend for the first time and established a three-year shareholder dividend return plan (2024-2026)[35]. - The company plans to pay a final dividend of RMB 0.2 per share (pre-tax) for the year ending December 31, 2024, totaling approximately RMB 278,690,500[128]. - The distributable reserves for dividend payments calculated according to relevant regulations amount to RMB 1,511,674,690.45, with no share premium account available for capitalized dividend distribution[137]. Operational Efficiency and Innovations - The company plans to deepen technical innovation and enhance operational efficiency to strengthen its core competitiveness[36]. - The company is focused on enhancing operational efficiency through technology development and facility upgrades to counteract rising environmental costs[116]. - The company has successfully implemented digital transformation initiatives, including the application of artificial intelligence in waste incineration management, leading to improved operational efficiency[43]. - The company is addressing public concerns regarding waste incineration by adhering to environmental standards and increasing community engagement[119]. Market and Industry Trends - The demand for harmless treatment of urban waste is increasing significantly, driven by the overall goals of ecological civilization construction and carbon neutrality[45]. - The waste incineration industry is entering a stable development phase, with key tasks focusing on quality improvement and efficiency enhancement[45]. - The company is positioned to leverage the growing emphasis on ecological civilization and environmental protection in China, which prioritizes waste management as a strategic emerging industry[52]. - The company has expanded its market presence to economically developed regions such as the Yangtze River Delta and Pearl River Delta, as well as central and western regions including Anhui, Hubei, and Sichuan[53]. Risks and Challenges - The company faces risks related to the fluctuation of waste supply and calorific value, which can impact operational efficiency and profitability[120]. - The company is subject to strict environmental regulations, which may increase operational costs and affect profitability due to rising environmental investment[116]. - The company is at risk of project cost overruns and delays due to external factors such as material price fluctuations and labor disputes[121]. - The company has established measures to mitigate risks from delayed accounts receivable, emphasizing strong communication with clients to ensure timely collections[118]. Governance and Management - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules and has not implemented any share incentive plans for the fiscal year ending December 31, 2024[155]. - The supervisory board held eight meetings during the year to monitor the company's operations and ensure compliance with legal and regulatory requirements[149]. - The company has maintained a stable management structure with no significant changes in shareholding among directors and supervisors[160]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to CNY 1,817.96 million[161]. Research and Development - The company is investing $50 million in R&D for new technologies aimed at enhancing operational efficiency[5]. - The company’s R&D expenses were RMB 7,097,412.89, showing a slight decrease of 3.73% compared to the previous year[67]. - The company has obtained a total of 80 authorized patents, including 19 invention patents, by the end of 2024, reflecting its commitment to technological innovation[43].

Financial Performance - Operating revenue for the third quarter was RMB 883,455,617.64, a decrease of 1.90% compared to the same period last year[4] - Net profit attributable to shareholders was RMB 200,612,765.88, an increase of 16.75% year-on-year[4] - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 198,710,461.23, an increase of 18.10% year-on-year[4] - Total operating revenue for the first three quarters of 2024 was CNY 2,543,962,357.96, a decrease of 16.4% compared to CNY 3,042,041,871.04 in the same period of 2023[18] - Net profit attributable to the parent company for the first three quarters of 2024 was CNY 503,638,784.18, down from CNY 535,891,930.52 in 2023, representing a decline of 6.0%[19] - Operating profit for the first three quarters of 2024 was CNY 648,158,421.93, slightly up from CNY 644,825,687.54 in 2023, indicating a marginal increase of 0.5%[18] - Total comprehensive income for the first three quarters of 2024 was CNY 533,018,881.32, compared to CNY 562,700,388.06 in 2023, a decrease of 5.3%[20] Cash Flow - Net cash flow from operating activities for the third quarter was RMB 511,360,358.47, an increase of 37.71% year-on-year[4] - The net cash flow from operating activities for the year-to-date was RMB 1,054,731,785.61, an increase of 60.04% year-on-year[7] - Cash flow from operating activities for the first three quarters of 2024 was CNY 1,054,731,785.61, an increase of 60.0% compared to CNY 659,044,916.66 in 2023[22] - Cash inflow from operating activities totaled CNY 2,582,988,602.32 for the first three quarters of 2024, up from CNY 2,275,444,587.39 in 2023, an increase of 13.5%[22] - The company reported a net cash flow from investment activities of CNY -279,228,731.73 for the first three quarters of 2024, an improvement from CNY -579,177,150.12 in 2023[24] - In the first three quarters of 2024, the company generated cash inflows from financing activities amounting to CNY 3,275,503,155.28, compared to CNY 1,643,964,039.21 in the same period of 2023, representing an increase of approximately 99.4%[25] - The net cash flow from financing activities for the first three quarters of 2024 was -CNY 743,520,063.99, an improvement from -CNY 811,646,650.15 in 2023[25] Assets and Liabilities - Total assets at the end of the reporting period were RMB 22,404,412,278.53, a decrease of 0.59% compared to the end of the previous year[4] - The total current assets increased to RMB 4.241 billion from RMB 3.864 billion as of December 31, 2023, representing a growth of approximately 9.8%[15] - Accounts receivable rose to RMB 2.395 billion, up from RMB 1.973 billion, indicating an increase of about 21.4%[15] - Current liabilities decreased to RMB 2.793 billion from RMB 3.991 billion, a reduction of approximately 30.1%[16] - Total liabilities amounted to RMB 13.790 billion, down from RMB 14.263 billion, reflecting a decrease of about 3.3%[16] - The company's cash and cash equivalents stood at RMB 1.065 billion, slightly up from RMB 1.035 billion[15] - The company's retained earnings increased to RMB 3.719 billion from RMB 3.425 billion, showing a growth of about 8.6%[17] - Long-term borrowings increased to RMB 7.690 billion from RMB 7.034 billion, an increase of approximately 9.3%[16] Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders is 41,693, with the top ten shareholders holding 594,085,618 shares, accounting for 42.63% of the total shares[8] - The largest shareholder is Beijing State-owned Assets Management Co., Ltd., holding 594,085,618 shares, representing 42.63% of the total[9] - Changcheng Life Insurance Co., Ltd. increased its holdings to 104,700,000 H-shares, representing 7.5137% of the total shares as of September 20, 2024[12] - The company has not reported any changes in the participation of the top ten shareholders in margin financing and securities lending activities[9] - There are no significant changes in the shareholding structure of the top ten shareholders compared to the previous period[10] Operational Metrics - In the third quarter of 2024, the total waste received by subsidiaries reached 3.7002 million tons, with electricity generation amounting to 1,323.4992 million kWh[13] - For the first nine months of 2024, the cumulative waste received was 10.7075 million tons, an increase of 7.16% year-on-year[13] - Cumulative electricity generation for the same period was 3,822.1888 million kWh, reflecting a year-on-year growth of 10.44%[13] - The cumulative online electricity volume reached 3,160.1891 million kWh, with a year-on-year increase of 10.94%[13] - The cumulative steam supply for the first nine months was 371,900 tons, showing a year-on-year growth of 23.64%[13] Guarantees and Contracts - As of September 30, 2024, the company provided guarantees totaling RMB 7.125 billion, all for subsidiaries[14] - The company signed guarantee contracts for fixed asset loans of RMB 1.7 billion and RMB 5.77 billion for its subsidiaries during the reporting period[14]

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E7%AF%80%20%E9%87%8B%E7%BE%A9) [Company Profile and Key Financial Indicators](index=8&type=section&id=%E7%AC%AC%E4%BA%8C%E7%AF%80%20%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) [Corporate Information](index=8&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides basic information about Green Dynamics Environmental Group Co, Ltd, including its name, legal representative, contact details, addresses, website, and stock listing information - The company's shares are dual-listed on the Shanghai Stock Exchange (A-share, code 601330) and the Hong Kong Stock Exchange (H-share, code 1330)[15](index=15&type=chunk) [Key Accounting Data and Financial Indicators](index=10&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) In H1 2024, revenue and net profit declined due to reduced construction activities, while operating cash flow significantly improved from increased subsidy collections and lower construction spending Key Accounting Data for H1 2024 | Key Accounting Data | Current Period (Jan-Jun) | Prior-Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,660,506,740.32 Yuan | 2,141,513,147.31 Yuan | -22.46% | | Net Profit Attributable to Shareholders | 303,026,018.30 Yuan | 364,057,245.61 Yuan | -16.76% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 301,480,353.86 Yuan | 358,887,623.29 Yuan | -16.00% | | Net Cash Flow from Operating Activities | 543,371,427.14 Yuan | 287,718,294.22 Yuan | 88.86% | | **Asset Status** | **End of Current Period** | **End of Prior Year** | **YoY Change (%)** | | Net Assets Attributable to Shareholders | 7,913,311,756.42 Yuan | 7,807,439,716.26 Yuan | 1.36% | | Total Assets | 22,515,212,843.20 Yuan | 22,537,265,642.95 Yuan | -0.10% | Key Financial Indicators for H1 2024 | Key Financial Indicators | Current Period (Jan-Jun) | Prior-Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.22 | 0.26 | -15.38% | | Diluted Earnings Per Share (Yuan/Share) | 0.21 | 0.24 | -12.50% | | Weighted Average Return on Equity (%) | 3.80 | 4.84 | Decrease of 1.04 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 3.79 | 4.77 | Decrease of 0.98 percentage points | - During the reporting period, total non-recurring gains and losses amounted to **1.5457 million yuan**, primarily from government grants and other non-operating income and expenses[21](index=21&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AC%AC%E4%B8%89%E7%AF%80%20%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Industry and Core Business Overview](index=12&type=section&id=%E4%B8%80%E3%80%81%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%AC%E8%A1%8C%E6%A5%AD%E5%8F%8A%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%83%85%E6%B3%81%E8%AA%AA%E6%98%8E) The company is a leading waste-to-energy enterprise in China operating under a BOT model, with the industry now entering a stable phase supported by new green certificate trading mechanisms - The company's core business is waste-to-energy generation under a BOT concession model, typically for 25 to 30 years; as of June 30, 2024, it operated **37 projects** with a daily processing capacity of **40,300 tons** and an installed capacity of **857MW**, ranking among the top in the industry[23](index=23&type=chunk)[24](index=24&type=chunk) - The waste-to-energy industry has entered a stable development phase after meeting its "14th Five-Year Plan" targets, with green certificate trading providing a new revenue stream as national subsidies are phased out[27](index=27&type=chunk)[28](index=28&type=chunk) - The industry benefits from preferential policies like benchmark electricity tariffs and tax incentives, but also faces the challenge of declining national subsidies[29](index=29&type=chunk) [Core Competency Analysis](index=15&type=section&id=%E4%BA%8C%E3%80%81%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E6%A0%B8%E5%BF%83%E7%AB%B6%E7%88%AD%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies remain strong, centered on its extensive national market presence, deep industry experience, proprietary advanced technologies, and a seasoned management team - The company's market network covers over 20 provinces and municipalities, with a strategic focus on the Yangtze River Delta, Pearl River Delta, and Bohai Rim regions, which helps mitigate regional risks[31](index=31&type=chunk) - The company's proprietary "multi-drive reverse-push mechanical grate furnace" is a leading core technology in the industry, protected by a national invention patent and promoted as a key technology during the "11th Five-Year Plan" period[33](index=33&type=chunk) - The company possesses an experienced management team with core members having collaborated for nearly two decades, ensuring deep industry insight and strong operational and market development capabilities[34](index=34&type=chunk) [Discussion and Analysis of Operations](index=17&type=section&id=%E4%B8%89%E3%80%81%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81%E7%9A%84%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) In H1 2024, revenue and net profit declined due to fewer construction projects, but the company's core operations remained robust with record-high performance indicators and continued efficiency improvements Key Financial Performance for H1 2024 | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 1.661 billion yuan | -22.46% | | Net Profit Attributable to Shareholders | 303 million yuan | -16.76% | | Total Assets | 22.515 billion yuan | - | | Equity Attributable to Shareholders | 7.913 billion yuan | - | Key Operational Data for H1 2024 | Indicator | Volume | YoY Growth | | :--- | :--- | :--- | | Total Municipal Solid Waste Processed | 7.0073 million tons | 11.27% | | Total Power Generation | 2,498.69 million kWh | 12.85% | | On-grid Power Generation | 2,072.02 million kWh | 12.90% | | Total Steam Supply | 239,000 tons | 22.51% | | Operating Revenue | 1.440 billion yuan | 10.66% | - The company enhanced operational efficiency through multiple initiatives, including expanding synergistic waste treatment, securing new steam supply contracts, completing its first green certificate transaction, and leveraging centralized procurement to reduce costs[39](index=39&type=chunk) - The company advanced its technological and digital capabilities through collaborations like the smart power plant project with Alibaba Cloud, development of new sludge injection processes, and strengthening industry-academia-research partnerships[40](index=40&type=chunk) - Looking ahead, the waste-to-energy market is expected to expand into county-level regions, with green certificate trading, carbon markets, and improved waste treatment fee mechanisms offering new revenue growth opportunities[41](index=41&type=chunk)[42](index=42&type=chunk) [Core Business Analysis](index=20&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E5%88%86%E6%9E%90) Analysis of financial statement variances reveals that declines in revenue and costs were driven by reduced construction activities, while operating cash flow grew substantially due to improved subsidy collection Analysis of Major Financial Statement Items | Item | Current Period (Yuan) | Prior-Year Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,660,506,740.32 | 2,141,513,147.31 | -22.46 | Decrease in construction projects led to a 619 million yuan drop in construction revenue | | Operating Costs | 919,438,857.60 | 1,371,722,378.79 | -32.97 | Construction costs decreased by 568 million yuan | | Net Cash Flow from Operating Activities | 543,371,427.14 | 287,718,294.22 | 88.86 | Increased collection of national subsidies and reduced spending on PPP project construction | | Net Cash Flow from Investing Activities | -205,918,818.39 | -413,739,621.84 | N/A | Reduced investment in construction | | Net Cash Flow from Financing Activities | -352,743,054.33 | -598,828,719.83 | N/A | Increased borrowings were offset by higher debt and interest repayments | [Analysis of Assets and Liabilities](index=22&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E8%B3%87%E7%94%A2%E3%80%81%E8%B2%A0%E5%82%B5%E6%83%85%E6%B3%81%E5%88%86%E6%9E%90) As of June 30, 2024, the company's total assets were 22.515 billion yuan and total liabilities were 14.114 billion yuan, with a debt-to-asset ratio of 62.69% and restricted assets of 11.113 billion yuan Status of Major Restricted Assets (Period-End) | Item | Book Value at Period-End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,039,180.00 | For issuing performance bonds | | Other Non-current Assets | 3,990,797,573.58 | Pledged for loans | | Intangible Assets | 5,104,550,440.42 | Pledged for loans | | Accounts Receivable | 1,723,763,980.12 | Pledged for loans | | Contract Assets | 291,976,946.71 | Pledged for loans | | **Total** | **11,113,128,120.83** | - | [Financial Review (as required by the Stock Exchange of Hong Kong)](index=24&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7%EF%BC%88%E6%A0%B9%E6%93%9A%E8%81%AF%E4%BA%A4%E6%89%80%E8%A6%81%E6%B1%82%E6%8A%AB%E9%9C%B2%EF%BC%89) The company's debt-to-asset ratio was 62.69%, with a revenue decline driven by a sharp drop in construction income, while gross margin improved significantly due to a favorable revenue mix Revenue Composition Analysis for H1 2024 | Revenue Type | H1 2024 (Yuan) | H1 2023 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Construction Revenue | 22,954,459.10 | 641,720,109.79 | -96.42% | | Operating Revenue | 1,440,317,386.59 | 1,301,588,175.06 | +10.66% | | Interest Income | 197,234,894.63 | 198,204,862.46 | -0.49% | | **Total Operating Revenue** | **1,660,506,740.32** | **2,141,513,147.31** | **-22.46%** | - Gross profit for the period was **741 million yuan**, a year-on-year decrease of 3.73%; the gross profit margin was **44.63%**, a significant increase from 35.95% in the prior year, primarily due to the reduced proportion of lower-margin construction revenue[53](index=53&type=chunk) - As of June 30, 2024, the company's total outstanding borrowings were approximately **9.71 billion yuan**, with **3.525 billion yuan** of its 18.379 billion yuan total credit facility remaining unused; most borrowings are at floating interest rates[61](index=61&type=chunk) [Analysis of Major Subsidiaries and Investees](index=28&type=section&id=%EF%BC%88%E4%B8%83%EF%BC%89%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%83%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section analyzes the performance of five key subsidiaries, all of which are profitable waste treatment and power generation entities contributing significantly to the company's total assets Operating Performance of Major Subsidiaries in H1 2024 (Unit: 10,000 Yuan) | Company Name | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Tongzhou Company | 143,178.99 | 55,701.89 | 9,833.08 | 3,852.05 | 2,870.17 | | Shantou Company | 115,296.07 | 43,826.89 | 10,245.89 | 4,630.35 | 4,000.59 | | Haining Expansion Co | 114,401.44 | 56,087.26 | 8,679.94 | 4,176.15 | 4,125.60 | | Huizhou Phase II Co | 146,365.21 | 72,448.71 | 13,906.65 | 6,896.62 | 6,623.05 | | Wuhan Company | 124,853.55 | 44,871.33 | 11,093.07 | 4,002.41 | 3,803.85 | [Potential Risks](index=29&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%B0%8D%E7%9A%84%E9%A2%A8%E9%9A%AA) The company faces risks from policy changes in renewable energy subsidies, stricter environmental regulations, public opposition (NIMBY effect), and operational challenges like project delays and receivables collection - Changes in national renewable energy subsidy policies represent a core risk, as the phase-out of subsidies could adversely affect profitability and cash flow; mitigation strategies include expanding heat supply services and participating in green certificate trading[69](index=69&type=chunk) - The company faces risks from public opposition due to the "Not In My Back Yard" (NIMBY) effect, which can complicate project site selection, extend development timelines, and increase costs[70](index=70&type=chunk) - As business expands, extended settlement cycles for national subsidies and local waste treatment fees may lead to growing accounts receivable, which, if not collected promptly, could negatively impact cash flow and performance[73](index=73&type=chunk) [Corporate Governance](index=33&type=section&id=%E7%AC%AC%E5%9B%9B%E7%AF%80%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) [Changes in Directors, Supervisors, and Senior Management](index=33&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E8%AE%8A%E5%8B%95%E6%83%85%E6%B3%81) The company experienced several changes in its board and senior management during the period, including retirements and resignations, with new appointments made for key positions Changes in Directors and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | Zhong Xia | General Manager, Executive Director | Resigned | | Fu Jie | Independent Director | Resigned | | Ouyang Jiejiao | Independent Director | Elected | | Yue Peng | Non-executive Director | Resigned | | Luo Zhaoguo | Supervisor | Resigned | | Zhao Zhixiong | Non-executive Director | Elected | | Tian Yingying | Supervisor | Elected | [Profit Distribution Proposal](index=35&type=section&id=%E4%B8%89%E3%80%81%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E6%88%96%E8%B3%87%E6%9C%AC%E5%85%AC%E7%A9%8D%E9%87%91%E8%BD%89%E5%A2%9E%E9%A0%90%E6%A1%88) The board proposes a cash dividend of RMB 0.1 per share (pre-tax) for the first half of 2024, pending shareholder approval H1 2024 Profit Distribution Proposal | Item | Details | | :--- | :--- | | Distribution or Capitalization | Yes | | Cash Dividend per 10 Shares (Yuan) (pre-tax) | 1 | | Bonus Shares per 10 Shares | 0 | | Capitalization Shares per 10 Shares | 0 | [Compliance with the Corporate Governance Code](index=36&type=section&id=%E4%BA%94%E3%80%81%E9%81%B5%E5%AE%88%E3%80%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E3%80%8B) The company complied with most of the Corporate Governance Code, with a deviation noted where the Chairman also serves as the acting General Manager to ensure operational continuity - The company deviated from Code Provision C.2.1, which requires the roles of chairman and chief executive to be separate, as Chairman Mr. Qiao Dewei has also served as the acting General Manager since February 8, 2024, an arrangement the board deems appropriate for stability[83](index=83&type=chunk) [Environment and Social Responsibility](index=37&type=section&id=%E7%AC%AC%E4%BA%94%E7%AF%80%20%E7%92%B0%E5%A2%83%E8%88%87%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB) [Environmental Information](index=37&type=section&id=%E4%B8%80%E3%80%81%E7%92%B0%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E6%B3%81) The company, with its main subsidiaries listed as key pollutant-discharging units, details its environmental protection measures and confirms compliance with all standards during the reporting period - Key subsidiaries are designated as major pollutant-discharging units, with primary pollutants including SO2, NOx, dust, and COD; all emissions complied with national and local standards during the period, with no instances of non-compliance[84](index=84&type=chunk)[85](index=85&type=chunk)[89](index=89&type=chunk) Estimated Total Emissions of Key Pollutants from Major Discharging Units (H1 2024) | Pollutant Name | Actual Emissions (tons) | Emission Limit (tons/year) | | :--- | :--- | :--- | | Sulfur Dioxide | 136.63 | 880.37 | | Nitrogen Oxides | 565.73 | 2,456.38 | | Particulate Matter (Dust) | 16.39 | 251.41 | | COD | 1.837 | 16.537 | - All projects are equipped with comprehensive pollution control facilities, including advanced flue gas treatment systems and wastewater recycling processes, which operated normally throughout the reporting period[91](index=91&type=chunk) - The company's waste-to-energy business directly contributes to carbon reduction by replacing landfill disposal, which reduces methane emissions, and substituting fossil fuel-based power generation[98](index=98&type=chunk) [Significant Matters](index=44&type=section&id=%E7%AC%AC%E5%85%AD%E7%AF%80%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) [Material Related-Party Transactions](index=46&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E9%97%9C%E8%81%AF%E4%BA%A4%E6%98%93) Material related-party transactions involved service procurement from an affiliate for project promotion and financial assistance from the controlling shareholder, which has been fully repaid - The company engaged in a framework agreement with affiliate Shenzhen Crystal Digital Technology for promotional services, with transactions totaling **0.4576 million yuan** in H1 2024 against a yearly cap of 20 million yuan[103](index=103&type=chunk) - Financial assistance previously provided by the controlling shareholder, Beijing State-owned Assets Management Co, Ltd, and its subsidiaries has been **fully repaid** as of the end of the reporting period[105](index=105&type=chunk) [Material Contracts and Guarantees](index=49&type=section&id=%E5%8D%81-%20%E2%80%BA%20%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E6%B3%81) The company had no material contracts for custody or leasing, while total guarantees for subsidiaries amounted to 7.42 billion yuan, representing 93.80% of the company's net assets Summary of Company Guarantees (as of the end of the reporting period) | Guarantee Item | Amount (Yuan) | | :--- | :--- | | Total Outstanding Guarantees for Subsidiaries (B) | 7,422,857,703.52 | | Total Guarantees (A+B) | 7,422,857,703.52 | | Total Guarantees as a Percentage of Net Assets | 93.80% | | Guarantees for Subsidiaries with Debt-to-Asset Ratio >70% (D) | 1,428,147,240.00 | | Portion of Total Guarantees Exceeding 50% of Net Assets (E) | 3,466,201,825.31 | [Progress on the Use of Raised Funds](index=50&type=section&id=%E5%8D%81%E3%83%8B%EF%BD%A5%E5%8B%9F%E9%9B%86%E8%B3%87%E9%87%91%E4%BD%BF%E7%94%A8%E9%80%B2%E5%B1%95%E8%AA%AC%E6%98%8E) As of the period end, 93.15% of the 2.345 billion yuan raised from convertible bonds in 2022 has been utilized, with 138 million yuan of surplus funds reallocated to other projects Overall Utilization of Convertible Bond Proceeds (Unit: 10,000 Yuan) | Item | Amount | | :--- | :--- | | Net Proceeds Raised | 234,476.64 | | Total Committed Investment | 234,476.64 | | Cumulative Investment as of Period-End | 218,410.35 | | Unused Amount as of Period-End | 26,402.46 | | Cumulative Investment Progress | 93.15% | - To improve capital efficiency, the company reallocated **138 million yuan** in surplus funds from completed projects to the Wuhan Phase II and Huludao waste-to-energy projects for finalization and rectification work[115](index=115&type=chunk)[116](index=116&type=chunk) [Changes in Share Capital and Shareholders](index=53&type=section&id=%E7%AC%AC%E4%B8%83%E7%AF%80%20%E8%82%A1%E4%BB%BD%E8%AE%8A%E5%8B%95%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) [Changes in Share Capital](index=53&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E8%AE%8A%E5%8B%95%E6%83%85%E6%B3%81) The company's total share capital increased slightly due to the conversion of "GDT-CB" convertible bonds, adding 1,144 A-shares - During the reporting period, the company's total share capital increased from 1,393,450,734 to 1,393,451,878 shares due to the conversion of **1,144 A-shares** from the "GDT-CB" convertible bonds[118](index=118&type=chunk)[119](index=119&type=chunk) [Shareholder Information](index=54&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) As of the period end, the company had 41,925 shareholders, with the top two being Beijing State-owned Assets Management Co, Ltd (42.63%) and HKSCC Nominees Limited (27.23%) Top Ten Shareholders' Holdings (as of the end of the reporting period) | Shareholder Name | Number of Shares | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Beijing State-owned Assets Management Co, Ltd | 594,085,618 | 42.63 | State-owned legal person | | HKSCC NOMINEES LIMITED | 379,460,000 | 27.23 | Overseas legal person | | China Three Gorges Capital Holdings Co, Ltd | 84,265,896 | 6.05 | State-owned legal person | | Beijing State-owned Assets (Hong Kong) Co, Ltd | 24,859,792 | 1.78 | Overseas legal person | | Beijing Huitai Hengrui Investment Co, Ltd | 16,890,707 | 1.21 | Domestic non-state-owned legal person | - The controlling shareholder, Beijing State-owned Assets Management Co, Ltd, and its wholly-owned subsidiary, Beijing State-owned Assets (Hong Kong) Co, Ltd, are related parties and collectively hold approximately **44.41%** of the company's shares[123](index=123&type=chunk) [Human Resources and Policies](index=59&type=section&id=%E5%85%AD%E3%80%81%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E6%94%BF%E7%AD%96) The group employed 3,370 people as of June 30, 2024, supported by a competitive compensation system and a comprehensive employee training and development framework - As of June 30, 2024, the group had a total of **3,370 employees**[129](index=129&type=chunk) [Information on Preference Shares](index=60&type=section&id=%E7%AC%AC%E5%85%AB%E7%AF%80%20%E5%84%AA%E5%85%88%E8%82%A1%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) [Not Applicable](index=60&type=section&id=%E4%B8%8D%E9%81%A9%E7%94%A8) The company had no preference shares during the reporting period [Information on Bonds](index=61&type=section&id=%E7%AC%AC%E4%B9%9D%E7%AF%80%20%E5%82%B5%E5%88%B8%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) [Information on Convertible Bonds](index=61&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%89%E6%8F%9B%E5%85%AC%E5%8F%B8%E5%82%B5%E5%88%B8%E6%83%85%E6%B3%81) The company's 2.36 billion yuan "GDT-CB" convertible bond's conversion price was adjusted due to dividend distribution, and the board decided against a downward revision despite meeting the criteria - The conversion price of the **2.36 billion yuan** "GDT-CB" A-share convertible bond (code "113054"), issued in February 2022, was adjusted from 9.60 yuan/share to **9.45 yuan/share** on June 26, 2024, due to the 2023 dividend payment[132](index=132&type=chunk) "GDT-CB" Conversion Status during the Reporting Period | Item | Amount/Quantity | | :--- | :--- | | Amount Converted during Period (Yuan) | 11,000 | | Shares Converted during Period | 1,144 | | Cumulative Shares Converted | 11,878 | | Outstanding Amount (Yuan) | 2,359,884,000 | | Unconverted Portion of Total Issuance (%) | 99.9951 | - China Chengxin International maintained the company's corporate credit rating at **"AA+"** with a stable outlook and the "GDT-CB" bond rating at "AA+" in its May 2024 report[139](index=139&type=chunk) - Although the company's stock price triggered the downward revision clause for the conversion price, the board decided not to propose a downward revision between September 6, 2023, and September 5, 2024[141](index=141&type=chunk) [Financial Report](index=67&type=section&id=%E7%AC%AC%E5%8D%81%E7%AF%80%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) [Consolidated Balance Sheet](index=67&type=section&id=%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2024, the company's total assets stood at 22.52 billion yuan, with total liabilities at 14.11 billion yuan and equity attributable to parent company shareholders at 7.91 billion yuan Consolidated Balance Sheet - Key Items (Unit: Yuan) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 4,168,970,905.64 | 3,863,574,113.53 | | Total Non-current Assets | 18,346,241,937.56 | 18,673,691,529.42 | | **Total Assets** | **22,515,212,843.20** | **22,537,265,642.95** | | **Liabilities and Equity** | | | | Total Current Liabilities | 3,074,913,962.38 | 3,991,164,536.87 | | Total Non-current Liabilities | 11,039,186,594.42 | 10,272,144,211.14 | | **Total Liabilities** | **14,114,100,556.80** | **14,263,308,748.01** | | Equity Attributable to Parent Company | 7,913,311,756.42 | 7,807,439,716.26 | | **Total Shareholders' Equity** | **8,401,112,286.40** | **8,273,956,894.94** | [Consolidated Income Statement](index=73&type=section&id=%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) In H1 2024, the company generated revenue of 1.66 billion yuan and net profit attributable to parent company shareholders of 303 million yuan, representing year-on-year declines of 22.46% and 16.76% respectively Consolidated Income Statement - Key Items (Unit: Yuan) | Item | Jan-Jun 2024 (Unaudited) | Jan-Jun 2023 (Unaudited) | | :--- | :--- | :--- | | Operating Revenue | 1,660,506,740.32 | 2,141,513,147.31 | | Less: Operating Costs | (919,438,857.60) | (1,371,722,378.79) | | Operating Profit | 390,013,727.65 | 434,249,599.86 | | Total Profit | 391,058,983.14 | 435,089,543.71 | | Net Profit | 323,733,601.98 | 380,095,083.50 | | Net Profit Attributable to Parent Company | 303,026,018.30 | 364,057,245.61 | | Basic Earnings Per Share (Yuan) | 0.22 | 0.26 | | Diluted Earnings Per Share (Yuan) | 0.21 | 0.24 | [Consolidated Statement of Cash Flows](index=76&type=section&id=%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The company's net cash flow from operating activities surged by 88.86% to 543 million yuan in H1 2024, driven by improved collections and reduced construction spending Consolidated Statement of Cash Flows - Key Items (Unit: Yuan) | Item | Jan-Jun 2024 (Unaudited) | Jan-Jun 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 543,371,427.14 | 287,718,294.22 | | Net Cash Used in Investing Activities | (205,918,818.39) | (413,739,621.84) | | Net Cash Used in Financing Activities | (352,743,054.33) | (598,828,719.83) | | Net Decrease in Cash and Cash Equivalents | (15,284,786.34) | (724,824,722.19) | | Cash and Cash Equivalents at End of Period | 1,017,250,170.59 | 1,139,958,571.40 |

Financial Performance - The company reported an unaudited interim revenue of RMB 0.1 per share as a cash dividend for the first half of 2024, subject to shareholder approval[4]. - The company's operating revenue for the first half of 2024 was CNY 1,660,506,740.32, a decrease of 22.46% compared to the same period last year[20]. - Net profit attributable to shareholders was CNY 303,026,018.30, down 16.76% year-on-year[20]. - Basic earnings per share for the first half of 2024 were CNY 0.22, a decrease of 15.38% compared to the same period last year[21]. - The total profit for the period was RMB 391,058,983.14, a decrease of RMB 44,030,560.57 compared to the previous year, attributed to reduced gross profit and increased operational expenses[57]. - The company’s total comprehensive income for the first half of 2024 was RMB 323,733,601.98, down from RMB 380,095,083.50 in the first half of 2023[161]. - The company reported a total comprehensive loss of ¥364,057,245.61 for the first half of 2023, highlighting challenges in profitability during that period[171]. Compliance and Governance - The board of directors confirmed the accuracy and completeness of the interim report, ensuring no false records or significant omissions[4]. - The interim financial report was prepared in accordance with the Chinese Accounting Standards and is compliant with the relevant disclosure requirements[5]. - The company has maintained compliance with corporate governance codes and will continue to review its governance practices[89]. - The company has implemented measures to ensure that all major decisions are made with board approval, maintaining a balance of power[89]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance company value[89]. Risk Management - The company has outlined potential risks including policy, market, and operational risks in the management discussion section[4]. - The company has established an audit and risk management committee to review the report and discuss accounting policies with management[4]. - The company will monitor industry policy risks closely and adapt its operations to mitigate potential impacts, including adjusting waste treatment fees if necessary[72]. - The company faces risks of project cost overruns and delays due to factors beyond its control, such as material price fluctuations and labor disputes[78]. - The company is actively monitoring policy changes and will negotiate terms in franchise agreements to mitigate potential losses from changes in environmental tax incentives[75]. Environmental Initiatives - The company has a significant focus on environmental protection and renewable energy, with projects such as the biomass power project in Ninghe and the comprehensive waste treatment center in Miyun[11]. - The company emphasizes the importance of green certificates, which correspond to renewable energy generation, as part of its sustainability initiatives[12]. - The company’s waste incineration projects contribute to carbon reduction by replacing landfills and providing energy, thus reducing greenhouse gas emissions[105]. - The company adheres to the principle of "prevention first, combined prevention and control" in its environmental protection management[104]. - The company has established measures in its franchise agreements to ensure compensation from local governments if waste supply falls below guaranteed levels[77]. Operational Capacity and Projects - The company operates multiple projects across various regions, including waste-to-energy projects in cities like Wuhan and Shantou[11]. - The company operates 37 projects in the waste-to-energy sector, with a waste processing capacity of 40,300 tons per day and an installed capacity of 857 MW as of June 30, 2024[24]. - The company is involved in the construction and operation of several BOT (Build-Operate-Transfer) projects, enhancing its operational capacity[12]. - The company reported a strong commitment to expanding its waste-to-energy capabilities, with ongoing projects in places like Guizhou and Jiangsu[11]. - The company is focusing on improving the economic benefits of existing projects through cost reduction strategies and operational enhancements[38]. Financial Position - The total assets of the company were CNY 22,515,212,843.20, a slight decrease of 0.10% from the end of the previous year[20]. - The company's debt-to-asset ratio was 62.69%, indicating a stable capital structure management strategy[61]. - The total equity attributable to shareholders increased to RMB 7,913,311,756.42 as of June 30, 2024, up from RMB 7,807,439,716.26 at the end of 2023, representing a growth of approximately 1.36%[154]. - The company has a total bank credit limit of RMB 18,379,060,000.00, with RMB 3,524,832,079.00 remaining unused as of June 30, 2024[62]. - The company’s total liabilities decreased to RMB 14.11 billion from RMB 14.26 billion, a reduction of approximately 1.06%[153]. Cash Flow and Investments - The net cash flow from operating activities increased by 88.86% to CNY 543,371,427.14 compared to the previous year[20]. - The company generated RMB 646,584,501.34 in cash inflow from investment activities in the first half of 2024, compared to RMB 1,334,145,207.50 in the same period of 2023[168]. - The company reported a net cash decrease of RMB (15,284,786.34) in the first half of 2024, a significant reduction compared to RMB (724,824,722.19) in the same period of 2023[166]. - The company has not implemented any capital reserve increase or bonus shares in this profit distribution plan[86]. - The company has not engaged in any major contracts or guarantees during the reporting period[116]. Shareholder Information - The company plans to distribute a cash dividend of RMB 0.1 per share, totaling approximately RMB 139.35 million for the first half of 2024[86]. - The largest shareholder, Beijing State-owned Assets Management Co., holds 594,085,618 shares, representing 42.63% of the total shares[130]. - The total number of ordinary shareholders reached 41,925 by the end of the reporting period[129]. - The total number of shares held by the top ten shareholders includes significant stakes in both domestic and foreign shares[131]. - The total issued shares of the company as of June 30, 2024, is 1,393,451,878[134]. Employee and Management Practices - The company maintains a competitive salary system linked to performance and task completion, with ongoing adjustments based on operational conditions and industry standards[137]. - The company has established a comprehensive training mechanism for employee development, including various specialized training programs[137]. - The company has not reported any violations of employee trading guidelines during the reporting period[136]. - The total number of employees in the group as of June 30, 2024, is 3,370[137]. - The company has adopted a salary management system based on target management and performance evaluation[137]. Technological Development - The company is focused on enhancing its technological capabilities in waste management and energy production[12]. - The company completed the basic design for a small-scale multi-drive reverse combustion furnace (100-200 tons) as part of its R&D efforts[41]. - The company aims to enhance operational efficiency through digitalization and has partnered with Alibaba Cloud for smart power plant construction[41]. - The company is exploring the establishment of a low-carbon environmental industry park to achieve high-quality development[43]. - The company plans to enhance power generation through technology research and development, facility upgrades, and improved operational management to offset rising environmental costs[74].

Financial Performance - The company's operating revenue for Q1 2024 was RMB 804,876,678.42, representing a decrease of 22.65% compared to the same period last year[5] - Net profit attributable to shareholders for the same period was RMB 138,851,431.42, down 18.60% year-on-year[5] - Basic earnings per share for Q1 2024 were RMB 0.10, reflecting a decrease of 9.09% compared to the previous year[5] - Total revenue for Q1 2024 was CNY 804,876,678.42, a decrease of 22.6% compared to CNY 1,040,584,663.77 in Q1 2023[23] - Operating profit for Q1 2024 was CNY 180,777,849.89, a decrease of 15.1% compared to CNY 212,978,678.94 in Q1 2023[23] - Net profit attributable to shareholders for Q1 2024 was CNY 146,935,270.62, down 17.7% from CNY 178,619,518.10 in Q1 2023[25] Cash Flow and Liquidity - The net cash flow from operating activities increased significantly by 117.38%, amounting to RMB 223,971,977.34, due to increased operational income and government subsidies[5] - Operating cash inflow for Q1 2024 was CNY 786,770,756.46, an increase of 17.9% compared to CNY 666,743,506.91 in Q1 2023[31] - Cash inflow from operating activities was primarily driven by sales revenue of CNY 770,491,374.42 in Q1 2024, compared to CNY 643,940,616.20 in Q1 2023, reflecting a growth of 19.6%[31] - Cash outflow from investment activities in Q1 2024 was CNY 143,330,443.54, a decrease of 39.1% compared to CNY 235,335,075.11 in Q1 2023[33] - Net cash flow from financing activities for Q1 2024 was CNY 57,564,388.59, recovering from a negative cash flow of CNY 469,181,472.67 in Q1 2023[35] - The net increase in cash and cash equivalents for Q1 2024 was CNY 138,223,288.24, a recovery from a decrease of CNY 601,477,799.18 in Q1 2023[37] Assets and Liabilities - Total assets at the end of the reporting period were RMB 22,652,919,862.86, showing a slight increase of 0.51% from the end of the previous year[5] - Total liabilities as of March 31, 2024, were CNY 14,224,238,362.33, a slight decrease from CNY 14,263,308,748.01 as of December 31, 2023[21] - Total equity as of March 31, 2024, was CNY 8,428,681,500.53, an increase from CNY 8,273,956,894.94 as of December 31, 2023[21] - Long-term borrowings as of March 31, 2024, were CNY 7,056,454,319.64, slightly up from CNY 7,033,566,028.80 as of December 31, 2023[21] - The company reported a decrease in short-term borrowings to CNY 596,482,119.44 from CNY 516,440,084.96[21] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 43,596[9] - The top shareholder, Beijing State-owned Assets Management Co., Ltd., holds 42.63% of the shares, totaling 594,085,618 shares[10] Operational Highlights - The decrease in operating revenue was primarily due to a reduction in the number and scale of construction projects, leading to a decrease in construction income by RMB 306 million[8] - The company's subsidiary processed 3.4639 million tons of waste in Q1 2024, representing a year-on-year increase of 15.73%[14] - The electricity generation for Q1 2024 was 1,240,186,000 kWh, which is a 17.30% increase compared to the same period last year[14] - The on-grid electricity volume reached 999,538,600 kWh, marking a year-on-year growth of 13.55%[14] Convertible Bonds - The company’s convertible bonds, "Green Dynamic Convertible Bonds," have an adjusted conversion price of RMB 9.60 per share effective from July 26, 2023[14] - As of March 31, 2024, a total of 112,000 yuan worth of "Green Dynamic Convertible Bonds" have been converted into A-shares, accounting for 0.0008% of the total shares issued prior to conversion[14]

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.15 per share (pre-tax) based on the total share capital on the dividend record date for all shareholders[6]. - The company will not increase share capital from capital reserves or issue bonus shares for the fiscal year 2023[6]. - The company will carry forward the remaining undistributed profits to the next fiscal year[6]. - The company has calculated its distributable reserves for dividends at RMB 2,058,119,860.42, with no share premium account available for capitalized dividend distribution[123]. - The company plans to pay a final dividend of RMB 0.15 per share, totaling approximately RMB 209.0175 million, subject to approval at the upcoming annual general meeting[118]. - In 2023, the total cash dividend amount represents 33.22% of the net profit attributable to ordinary shareholders in the consolidated financial statements, which is RMB 62,928.14 million[198]. - The company aims to distribute at least 10% of the annual distributable profit in cash and ensure that the cumulative cash dividends over the last three years are no less than 30% of the average annual distributable profit[196]. - The cash dividend proposal for 2023 is part of the company's commitment to maintaining a sustainable cash dividend policy while ensuring ongoing operational capabilities[196]. - The company emphasizes the importance of cash dividends and will not issue stock dividends in years where cash dividends are not distributed[196]. Financial Performance - The company's operating revenue for 2023 was CNY 3,955,548,511.61, a decrease of 13.39% compared to CNY 4,567,117,851.39 in 2022[19]. - Net profit attributable to shareholders for 2023 was CNY 629,281,357.74, down 15.51% from CNY 744,767,290.31 in 2022[19]. - The net cash flow from operating activities for 2023 was CNY 977,677,149.93, a decline of 19.17% compared to CNY 1,209,581,828.27 in 2022[19]. - Basic earnings per share for 2023 was CNY 0.45, a decrease of 15.09% from CNY 0.53 in 2022[20]. - The weighted average return on equity for 2023 was 8.31%, down 2.33 percentage points from 10.64% in 2022[20]. - The total assets at the end of 2023 were CNY 22,537,265,642.95, a slight decrease of 0.62% from CNY 22,677,440,152.69 at the end of 2022[19]. - The net assets attributable to shareholders increased by 6.51% to CNY 7,807,439,716.26 at the end of 2023, compared to CNY 7,330,237,121.56 at the end of 2022[19]. - The total profit for the period was RMB 777,086,059.95, a decline of RMB 114,556,815.89 compared to the same period last year[58]. - The gross profit decreased by 2.95% to RMB 1,523,750,202.69, with a gross margin of 38.52%, up from 34.38% in the previous year[57]. Project Development and Operations - The company is involved in multiple waste-to-energy projects across various regions, including Wuhan, Taizhou, and Pingyang, focusing on sustainable energy generation[13]. - The company has ongoing projects such as the expansion of the Pingyang waste incineration power plant, which is a PPP project aimed at increasing capacity[14]. - The company is actively pursuing new projects, including the construction of waste incineration plants in regions like Guangxi and Guizhou, enhancing its market presence[14]. - The company launched four new waste-to-energy projects, increasing waste processing capacity by 4,600 tons per day[25]. - The company achieved a steam supply volume of 428,600 tons, which is a 42.00% increase compared to the previous year[25]. - In 2023, the company processed 13.4468 million tons of household waste, an increase of 17.98% year-on-year[25]. - The company generated 3.89423 billion kWh of electricity, representing a year-on-year growth of 11.87%[25]. - The company aims to strengthen its core business in waste-to-energy and explore new growth points in low-carbon environmental industry parks[26]. - The company is focused on enhancing the operational efficiency of existing incineration facilities, particularly those with a load rate below 70%[39]. Governance and Compliance - The audit report issued by PwC confirms the financial report's authenticity, accuracy, and completeness[5]. - The annual report complies with all disclosure requirements set by relevant securities regulations in both mainland China and Hong Kong[9]. - The board of directors and senior management guarantee the report's content is free from false records or misleading statements[4]. - The company has established a governance structure that includes a general meeting of shareholders, a board of directors, a supervisory board, and senior management[130]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with applicable provisions[132]. - The supervisory board approved the financial report for the year 2023, affirming that it was prepared in accordance with relevant accounting standards[129]. - The company has not faced any penalties from regulatory authorities in the past three years, reflecting compliance with regulations[156]. - The company emphasizes transparency in its governance practices, as noted in the governance section of the report[136]. Risk Management - The company has detailed risks in the report, particularly in the "Management Discussion and Analysis" section[8]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[7]. - The company is facing risks related to fluctuating waste supply and calorific value, which could impact operational efficiency and profitability[111]. - The company will continue to monitor policy changes that may affect its profitability and cash flow, particularly regarding renewable energy subsidies[108]. - The company is committed to adhering to environmental standards and increasing public awareness of waste incineration power generation to mitigate negative perceptions[110]. Research and Development - The total R&D expenditure for the period was RMB 7,372,735.78, representing 0.19% of total revenue, with no capitalized R&D expenses[79]. - As of the end of 2023, the company has obtained a total of 75 authorized patents, including 18 invention patents, reflecting its commitment to technological innovation[35]. - The company is committed to advancing its research and development efforts in new processes and technologies for waste treatment, enhancing its competitive edge in the industry[35]. - The company has initiated trials for new technologies aimed at ultra-low emissions in waste incineration, showing promising results in various projects[35]. Management and Human Resources - The company has a total of 3,466 employees, with 2,136 in production roles and 652 in technical positions[192]. - Female employees account for 22.99% of the total workforce[189]. - The company has established a competitive salary system linked to performance, with a focus on maintaining stability and adjusting salaries based on operational conditions and industry standards[193]. - The company has implemented a comprehensive training program, including five specialized training projects and various online and offline training methods to enhance employee skills and performance[194]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 17.5989 million yuan[154]. Market Position and Strategy - The company has a nationwide market presence covering 20 provinces and municipalities, focusing on economically developed regions such as the Yangtze River Delta and Pearl River Delta[46]. - The company is positioned to benefit from the adjustment of waste incineration power pricing policies, which will provide additional revenue sources through green certificate trading[36]. - The company plans to strengthen mergers and acquisitions to enhance its core business in waste incineration power generation and aims for high-quality development[105]. - The company is actively seeking investment opportunities to improve profitability, with no major investment plans beyond previously announced projects[101]. - The market for waste incineration power generation is expected to grow as policies encourage the establishment of facilities in county-level regions by 2030[104].

Financial Performance - The company's operating revenue for 2023 was CNY 3,955,548,511.61, a decrease of 13.39% compared to CNY 4,567,117,851.39 in 2022[20]. - Net profit attributable to shareholders for 2023 was CNY 629,281,357.74, down 15.51% from CNY 744,767,290.31 in 2022[20]. - The net cash flow from operating activities for 2023 was CNY 977,677,149.93, a decrease of 19.17% compared to CNY 1,209,581,828.27 in 2022[20]. - Basic earnings per share for 2023 was CNY 0.45, down 15.09% from CNY 0.53 in 2022[21]. - The weighted average return on net assets for 2023 was 8.31%, a decrease of 2.33 percentage points from 10.64% in 2022[21]. - The total assets at the end of 2023 were CNY 22,537,265,642.95, a slight decrease of 0.62% from CNY 22,677,440,152.69 at the end of 2022[20]. - The net assets attributable to shareholders at the end of 2023 were CNY 7,807,439,716.26, an increase of 6.51% from CNY 7,330,237,121.56 at the end of 2022[20]. - The total comprehensive income attributable to the parent company's shareholders for the reporting period was RMB 629,281,357.74, a decrease from RMB 722,293,217.33 in the same period of 2022, primarily due to a reduction in net profit[116]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.15 per share (before tax) based on the total share capital on the dividend distribution record date[6]. - The company has calculated its distributable reserves for dividends at RMB 2,058,119,860.42, with no share premium account available for capitalized dividend distribution[124]. - The cash dividend amount represents 33.22% of the net profit attributable to ordinary shareholders in the consolidated financial statements, which is RMB 62,928.14 million[199]. - The cash dividend distribution plan states that the cash dividends should not exceed 10% of the distributable profits for the year, with a cumulative distribution over the last three years not less than 30% of the average annual distributable profits[198]. - The board of directors has confirmed that the cash dividend policy aligns with the company's articles of association and shareholder meeting resolutions[198]. - The company emphasizes cash dividends as a priority in its shareholder return plan for the years 2021 to 2023, focusing on maintaining sustainable operations[197]. - The company has not proposed any stock dividends for the year 2023, indicating a focus solely on cash distributions[199]. Audit and Compliance - The company reported a standard unqualified audit opinion from PwC Zhong Tian LLP for the annual report[5]. - The board of directors confirmed the accuracy and completeness of the annual report, ensuring no false records or significant omissions[4]. - The annual report complies with all disclosure requirements set by relevant regulations in both mainland China and Hong Kong[9]. - The supervisory board confirmed that the financial report for the year 2023 was prepared in accordance with relevant accounting standards and accurately reflects the company's financial status and operating results[130]. - The company has established a governance structure that includes a general meeting of shareholders, a board of directors, a supervisory board, and senior management, ensuring compliance with relevant laws and regulations[131]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with applicable provisions throughout the reporting period[133]. Operational Highlights - The company operates multiple waste-to-energy projects across various regions, including Wuhan, Taizhou, and Pingyang, contributing to its overall capacity[14]. - The company is involved in the construction and operation of several BOT (Build-Operate-Transfer) projects, enhancing its market presence in waste management[15]. - The company has plans for expansion in existing projects, such as the second phase of the Wuhan project, which aims to increase capacity and efficiency[15]. - The company launched four new waste-to-energy projects, increasing waste processing capacity by 4,600 tons per day[26]. - The company processed 13.4468 million tons of household waste, an increase of 17.98% year-on-year[26]. - The company generated 3.89423 billion kWh of electricity, representing a year-on-year growth of 11.87%[26]. - The company aims to strengthen its core business in waste-to-energy and explore new growth points in low-carbon environmental industry parks[27]. Risk Management - The company has detailed various risks in the report, which can be found in the management discussion and analysis section[8]. - The company emphasizes the importance of investment risk awareness for investors regarding future plans and strategies[7]. - The company faces risks from fluctuating waste supply and calorific value, which could impact operational efficiency and profitability[112]. - The company will monitor policy changes closely, as alterations in renewable energy pricing and subsidies could adversely affect profitability and cash flow[109]. Governance and Management - The company has established a governance structure that includes independent directors and a remuneration committee to ensure transparency and accountability[155]. - The company has a total of 85,900 shares held by senior management, with no changes reported during the period[136]. - The company has appointed several new directors and independent directors, with their tenures ranging from 2021 to 2024[136]. - The company has a diverse management team with expertise in engineering, finance, and operations, enhancing its strategic capabilities[149]. - The company emphasizes governance and transparency in its management structure, as detailed in the governance section of the report[137]. Research and Development - The company has obtained a total of 75 authorized patents, including 18 invention patents, reflecting its commitment to technological innovation[36]. - Total research and development (R&D) expenses amounted to RMB 7,372,735.78, representing 0.19% of total revenue[79]. - The company is actively exploring new technologies, including an integrated ultra-low emission technology for waste incineration flue gas, which has shown promising results in trials[36]. - The company continues to conduct trials for new processes, including a novel de-ammoniation technology, to enhance operational efficiency in various projects[36]. Market Position and Strategy - The company operates in the waste-to-energy sector, which is characterized by government encouragement, regional monopolies, capital intensity, and minimal seasonal and cyclical fluctuations[41]. - The company is positioned to benefit from the recent adjustments in waste incineration power pricing policies, which will enhance revenue sources post-subsidy[37]. - The company aims to achieve "zero landfill" for primary waste in regions with significant waste generation, promoting the construction of incineration facilities[40]. - The company is focused on enhancing waste incineration processing facilities in county-level regions, particularly where daily waste collection exceeds 300 tons[40]. - The company is positioned to capitalize on the growing market for waste incineration in county-level regions as part of national policy initiatives[105].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 綠色動力環保集團股份有限公司 Dynagreen Environmental Protection Group Co., Ltd.* （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：1330） 2023年第三季度報告 | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Reporting - The company reported a mid-year financial report for 2023, which has not been audited[3]. - The board of directors confirmed the accuracy and completeness of the financial report, with no significant omissions or misleading statements[3]. - The financial report was prepared in accordance with Chinese accounting standards, using Renminbi as the accounting currency[5]. - The report complies with all disclosure requirements set by the stock exchanges in China and Hong Kong[5]. - The financial report was approved by the board of directors on August 29, 2023, ensuring timely disclosure of financial performance[145]. Risk Management - The company has detailed descriptions of policy risks, market risks, and business risks in the report[4]. - The company has a risk statement regarding forward-looking statements, indicating that future plans do not constitute a commitment to investors[3]. - The company faces risks from environmental policy changes that could adversely affect profitability and cash flow, necessitating close monitoring of policy dynamics[70]. - The company plans to mitigate the impact of rising environmental investment through technological R&D and operational management improvements[70]. - The company has implemented measures to mitigate environmental risks during project construction and operation[74]. Financial Performance - The company's operating revenue for the first half of 2023 was RMB 2,141,513,147.31, a decrease of 5.35% compared to RMB 2,262,546,411.63 in the same period last year[15]. - Net profit attributable to shareholders was RMB 364,057,245.61, down 12.60% from RMB 416,538,533.88 year-on-year[15]. - The net cash flow from operating activities increased by 4.69% to RMB 287,718,294.22 compared to RMB 274,831,745.69 in the previous year[15]. - The company's total assets as of June 30, 2023, were RMB 22,694,821,097.59, a slight increase of 0.08% from RMB 22,677,440,152.69 at the end of the previous year[15]. - The company's gross profit decreased by 5.51% to RMB 769,790,768.52, with a gross margin of 35.95%[48]. Operational Highlights - The company operated 35 projects in the waste incineration power generation sector, with a waste processing capacity of 38,000 tons per day and an installed capacity of 797.5 MW[19]. - The company has multiple waste-to-energy projects across various regions, including Zhejiang, Guizhou, and Guangdong, indicating a broad operational footprint[9]. - The company is involved in the construction and operation of several PPP projects, enhancing its public-private partnership strategy[10]. - The company is focused on expanding its waste management and energy production capabilities through various projects[9]. - The company achieved a cumulative steam supply of 195,100 tons, representing a year-on-year increase of 39.65%[32]. Environmental Commitment - The company is committed to environmental protection and sustainable development through its waste-to-energy initiatives[9]. - The company emphasizes the importance of environmental protection in its operations, focusing on harmless treatment and resource utilization of municipal solid waste[90]. - The company is committed to reducing carbon emissions through its waste incineration projects, which replace landfills and contribute to energy generation, thus directly aiding in carbon reduction efforts[91]. - The company has established emergency response plans for environmental incidents and conducts annual drills as per regulatory requirements[88]. - The company has implemented self-monitoring plans to track pollutant emissions and their impact on surrounding environmental quality, with results made public[89]. Shareholder Information - The total number of ordinary shareholders reached 49,675 by the end of the reporting period[104]. - The largest shareholder, Beijing State-owned Assets Management Co., Ltd., holds 594,085,618 shares, representing 42.63% of the total shares[105]. - The total number of shares held by the top ten unrestricted shareholders amounts to 1,112,000,000 shares, which is approximately 79.87% of the total share capital[106]. - The report highlights that the company has maintained a stable shareholder structure with no significant changes in major shareholders[107]. - The company has not granted any equity incentives to directors, supervisors, or senior management during the reporting period[108]. Debt and Financing - The company's debt-to-asset ratio was 64.81% as of June 30, 2023, compared to 65.55% at the end of 2022[55]. - The company issued A-share convertible bonds totaling RMB 2.36 billion, with net proceeds of RMB 2.345 billion, of which approximately RMB 1.913 billion had been utilized by June 30, 2023[60]. - The company reported a significant decrease in cash and cash equivalents, totaling approximately CNY 1.15 billion, down 38.61% from CNY 1.87 billion at the end of the previous year[42]. - The company is actively exploring equity financing options to reduce its debt-to-asset ratio[74]. - The company has pledged receivables and other non-current assets as collateral for bank credit facilities, with the maximum liability for guarantees amounting to RMB 7,404,109,374.20 as of June 30, 2023[57]. Employee and Governance - The company has recently experienced changes in its board of directors, with two non-executive directors resigning and two new directors being elected[78]. - The company is committed to adhering to high standards of corporate governance and has complied with applicable governance codes[80]. - The company has established a comprehensive training mechanism for employee development, including various specialized training programs[111]. - The company emphasizes the importance of employee training and development as a key strategy for achieving operational goals and enhancing performance[111]. - The company maintains a competitive salary structure linked to performance and task completion, with ongoing adjustments based on operational conditions and industry standards[110]. Accounting Policies - The company's accounting policies remain consistent with those used in the preparation of the 2022 annual financial statements, ensuring stability in financial reporting[148]. - The group recognizes expected credit losses based on reasonable and evidence-based information, considering past events, current conditions, and forecasts of future economic conditions[161]. - The company recognizes cash dividends as liabilities when approved by the shareholders' meeting[191]. - The group classifies financial assets based on the business model and cash flow characteristics, including those measured at amortized cost and fair value[157]. - The company confirms construction service revenue based on the progress of construction, using the input method to determine the percentage of completion[194].