Investment Rating - The report maintains a rating of "Buy" for the company [5]. Core Views - The company experienced a 7.6% year-on-year increase in waste disposal volume in H1 2024, indicating stable operations. Capital expenditure was reduced to HKD 460 million, and net cash flow from operating activities improved to HKD 613 million [4][5]. - The report highlights a significant decline in revenue and net profit for H1 2024, with revenue at HKD 2.13 billion (down 28.5% year-on-year) and net profit at HKD 445 million (down 27.1% year-on-year). This decline is attributed to the absence of new construction projects, which previously contributed HKD 999 million in revenue in the same period last year [5]. - The gross profit margin improved to 48.5%, up 10.5 percentage points year-on-year, primarily due to the exclusion of low-margin construction revenue and an increase in the proportion of high-margin electricity sales and waste treatment operations [5]. - The company’s debt-to-asset ratio decreased by 1.1 percentage points to 63.2%, and the total borrowing cost for H1 2024 was HKD 347 million, an increase of 4.8% year-on-year, indicating potential for reduced financial expenses in the future [5]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of HKD 2.13 billion, a decrease of 28.5% year-on-year, and a net profit of HKD 445 million, down 27.1% year-on-year. The decline is mainly due to the lack of new construction revenue [5]. - The gross profit margin was reported at 48.5%, reflecting a significant improvement due to a shift towards higher-margin services [5]. - The company’s capital expenditure for H1 2024 was HKD 460 million, down from HKD 1.1 billion in the same period last year, indicating a reduction in capital spending [5]. Operational Highlights - The company’s waste disposal volume increased by 7.6% year-on-year to 8.7 million tons in H1 2024, demonstrating stable operational performance [5]. - Core business revenues from electricity sales, waste treatment fees, and sanitation services totaled HKD 2.04 billion, up 7.9% year-on-year [5]. Strategic Developments - The report mentions that Hanlan Environment plans to privatize and acquire the company, which could enhance operational synergies and expand market presence [5].

即时点评 垃圾焚烧发电存量项目运营稳健 粤丰环保（1381 HK） 2024-08-22 星期四 事件： 公司公告 2024 年上半年业绩，截至 2024 年 6 月 30 日止六个月，集 团收入为 21.304 亿港元，同比减少 28.5%。售电及垃圾处理的收入为 18.191 亿港元，同比增加 4.8%。毛利率为 48.5%。经营利润为 7.957 亿港元。EBITDA 利润率为 62.0%。公司权益持有人应占利润为 4.450 亿港元，同比减少 27.08%。每股基本盈利为 18.3 港仙，经营活动所 相关报告 得现金净额达 6.131 亿港元。 点评观点： ➢ 公司转型成为综合智能城市管理服务提供商： 垃圾焚烧发电业务进入成熟发展阶段，公司转型成为综合智能城市管 理服务提供商。总收入下跌主要由于集团去年仍有建设收入，但该等 项目于去年已投产，期内没有新建项目而不再产生建设收入所致。 ➢ 持续拓展环卫业务，加大协同效应： 2024 年 3 月，公司正式承接了为期 10 年的香港废物转运站合同；并 首次中标垃圾发电项目所在地外的安徽省城市管家服务项目，服务期 限 25 年，合同总额约 18 亿元；中标农村 ...

粤丰环保（1381 HK） | 2024 年 8 月 22 日 香港股市 | 环保 | 垃圾焚烧发电 粤丰环保（1381 HK） FY24 中期业绩逊预期，但运营收入保持增长 1H24 股东净利润同比下跌 27.1% 公司 FY24 中期业绩逊预期。上半年股东净利润同比下跌 27.1%至 4.5 亿元(港币，下同)， 主因(一)公司没有录得建设服务收入，因没有工程在建；(二)智能停车业务录得一次性 5,190 万元减值亏损；(三)利息支出同比增长 8.9%至 3.5 亿元，因借款利率上升，及上半 年没有工程在建而不符合利息资本化条件；(四)税项同比上升 29.1%至 8,800 万元，因实 质税率由 10.8%上升至 19.2%，部份项目税项优惠期完结。另一方面，与去年不同，公司 今年不派发中期股息(见图表 1)。 毛利率大幅上升，但股东净利润率仅微升 由于没有工程在建，上半年公司收入同比下跌 28.5%至 21.3 亿元。但是公司运营业务维 持增长。售电量及垃圾处理量分别同比上升 4.6%及 7.6%至 278 万兆瓦时及 870 万吨。电 力销售及垃圾处理费收入分别同比上升 4.7%及 4.9%至 12. ...

Financial Performance - The group's revenue for the six months ended June 30, 2024, decreased by 28.5% to HKD 2,130.4 million compared to HKD 2,981.0 million in the same period last year[2]. - The profit for the period fell by 29.4% to HKD 452.2 million, down from HKD 640.7 million in the previous year[2]. - The group's operating profit decreased to HKD 795,670,000 from HKD 945,897,000 year-on-year[11]. - The profit attributable to equity holders for the six months ended June 30, 2024, was HKD 445,035,000, a decrease of 27% compared to HKD 610,271,000 for the same period in 2023[32]. - The basic earnings per share for the six months ended June 30, 2024, was 18.3 HK cents, down from 25.1 HK cents in the previous year, reflecting a decline of 27.5%[32]. - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to an interim dividend of 4.9 HK cents per share for the same period in 2023[34]. Operational Efficiency and Growth - The group is focusing on enhancing operational efficiency through refined management and strategic cooperation to expand its business boundaries[6]. - The group aims to enhance project quality and explore technological innovations to drive operational efficiency and market competitiveness[10]. - The group aims to extend its strategic transformation towards upstream and downstream environmental sanitation services while solidifying its core waste-to-energy business[6]. - The group processed 8,699,577 tons of waste and generated 3,225,219,000 kWh of green energy, saving 844,000 tons of standard coal and reducing CO2 equivalent emissions by 4,787,000 tons[3]. - The group processed approximately 8,699,577 tons of waste, representing a year-on-year increase of 7.6%[9]. - The group generated 3,225,219,000 kWh of green energy, an increase of 4.7% year-on-year[9]. - The group saved 844,000 tons of standard coal, a year-on-year growth of 6.4%[9]. - The group achieved a reduction in carbon dioxide equivalent emissions by 4,787,000 tons, up 18.5% year-on-year[9]. Revenue Sources - Revenue from electricity sales reached HKD 1,276.8 million, accounting for 59.9% of total revenue, an increase of 4.7% from HKD 1,219.4 million in the previous year[58]. - The total revenue from the largest single customer amounted to approximately HKD 390,015,000 for the six months ended June 30, 2024, compared to HKD 590,812,000 from the largest customer and HKD 384,599,000 from the second largest customer in the same period of 2023[23]. - The group reported revenue of HKD 2,130,442,000 for the six months ended June 30, 2024, down from HKD 2,981,021,000 in the same period of 2023[11]. - The group's revenue from environmental sanitation and other services reached HKD 218.2 million, up 44.4% from HKD 151.2 million in the previous year[58]. Assets and Liabilities - As of June 30, 2024, total assets amounted to HKD 27,134,855 thousand, a slight increase from HKD 27,075,156 thousand as of December 31, 2023, representing a growth of approximately 0.22%[13]. - Total liabilities decreased to HKD 17,161,030 thousand from HKD 17,406,479 thousand, indicating a reduction of about 1.41%[14]. - The company reported retained earnings of HKD 5,984,782 thousand as of June 30, 2024, an increase from HKD 5,770,016 thousand as of December 31, 2023, reflecting a growth of approximately 3.70%[13]. - The total accounts receivable as of June 30, 2024, was HKD 2,230,757,000, an increase of 22% from HKD 1,828,593,000 as of December 31, 2023[40]. - The impairment loss on accounts receivable was HKD 27,114,000 as of June 30, 2024, compared to HKD 18,567,000 as of December 31, 2023, indicating an increase of 46%[39]. - The company’s non-current assets increased to HKD 234,599,000 as of June 30, 2024, up from HKD 191,202,000 as of December 31, 2023, representing a growth of 22.7%[36]. Employee and Administrative Costs - The total employee compensation cost, including directors' remuneration, was HKD 337.4 million for the period, compared to HKD 312.8 million for the same period last year[82]. - General and administrative expenses increased by 25.7% from HKD 278.8 million in 2023 to HKD 350.5 million in the first half of 2024, primarily due to increased operational costs and R&D expenses[64]. - The company’s employee benefits expenses increased to HKD 337,443,000 for the six months ended June 30, 2024, from HKD 312,804,000 in the same period of 2023, reflecting an increase of approximately 7.9%[24]. Research and Development - Research and development costs increased to HKD 37,151,000 for the six months ended June 30, 2024, up from HKD 29,354,000 in the same period of 2023, reflecting a growth of approximately 26.7%[24]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the six-month period ending June 30, 2024[89]. - The interim financial results for the six months ending June 30, 2024, have been reviewed by the independent auditor without any disagreements on accounting treatment[90]. - The board of directors consists of four executive directors and several independent non-executive directors as of the announcement date[93].

粤丰环保（1381 HK） | 2024 年 7 月 25 日 香港股市 | 环保 | 垃圾焚烧发电 粤丰环保（1381 HK） 私有化要约价吸引 每股 4.90 港元的私有化要约 近日瀚蓝环境(600323 CH)为首的财团(最终由佛山南海国有资产监督管理局控制)提出按每 股 4.90 港元私有化粤丰环保。如推行，瀚蓝环境将持有公司 92.77%总股本，现有控股股 东(李咏怡女士及关联人士)保留余下的 7.23%股份。瀚蓝环境表示不会提升要约价。以投 票权计算，此私有化计划最终需获得最少 75%出席股东大会的粤丰环保独立股东或其代 表通过，并不得超过所有独立股东的 10%反对。 与此同时，粤丰环保将向现有控股股东出售以下资产：(一)一块位于上海宝山的土地，作 价 1.4 亿元人民币，估计不涉及重大盈利或亏损；(二)智慧停车解决方案业务，作价 3 千 万港元，估计录得 4,300 万港元亏损；(三)香港上环的办公室，作价 1.7 亿港元，估计录 得 8,500 万港元亏损。 公司欠缺新增垃圾发电项目 撇除私有化事宜，近年公司欠缺新增垃圾发电项目，因为行业发展成熟。FY23 建设/规划 中的垃圾处理产能同比减少 ...

感谢今天叶峰的邱总的抽出时间来跟我们做一场线上的交流那首先的话我就公司的一些业务问题也跟邱总提起一些小问题那么当然各位投资者如果随时有这个问题的话也欢迎举手提问那么首先呢先向邱总帮我们介绍一下公司的一个发展历程因为现在其实大家可能之前对咱们公司了解不是特别多想方便帮我们介绍一下咱们的比如成立的这个时间包括后面的一系列的收兵购物的动作还有组成这样一个规模的一个简单的一个历程谢谢 好的 谢谢大家我是悦风环保的罗杰宇我现在先简单的介绍一下咱们公司的背景然后也很欢迎大家在我的介绍之后向我们提问我们悦风环保是在2003年起成立的我们一直都是赞助在做一个垃圾粉刷发电我们是在2014年在香港的主板上市然后我们也是广东省最大的一个垃圾粉刷发电企业之一临时来说咱们其实也算是国内最大的一个垃圾粉刷发电企业了 那在因为一直以来我们也是专注在做垃圾粉刷发店,那我们截至现在我们总共是有36个项目在手,然后其中33个项目已经是运营的。现在我们手头,我们手头的一个36个项目,它每天的处理能力是达到54000多吨,那然后运营中的33个项目, 处理量是达到4万3千到4万4千吨一天的然后我们去年我们是全年处理了大概1600万吨的一个生火垃圾然后 ...

Investment Rating - The report does not provide a specific investment rating for the company [4] Core Views - The potential privatization of Yuefeng Environmental (1381.HK) is being considered by Hanlan Environment, which is looking to acquire shares at a price of HKD 4.90 per share, representing a premium of over 20% compared to the last closing price of HKD 4.06 [2][3] - The privatization is contingent upon the completion of certain preconditions, including capital injection from Guangdong Hengjian Holdings and Guangdong Nanhai Holdings [2] - Yuefeng Environmental's projected net profit for 2024 is HKD 11.8 billion, with the potential privatization price corresponding to a PE ratio of 10 times, which is higher than the PE ratios of similar companies in the Hong Kong market [2][3] Summary by Sections Company Overview - Yuefeng Environmental has issued 2.44 billion shares, with a total equity value of HKD 119.5 billion based on the proposed privatization price [2] - The company reported a net profit of HKD 10.2 billion for 2023, with expectations of profit primarily from electricity sales and waste management services in 2024 [2] Financial Metrics - The current market capitalization of Yuefeng Environmental is approximately HKD 10.69 billion [4] - The stock has a 12-month low of HKD 3.4 and a high of HKD 4.9 [4] Shareholder Structure - Major shareholders include Li Yongyi and family (55%), Shanghai Environment (19.5%), and Olympus (5.7%) [4]

港股通 瀚蓝粤丰强强联合,协同效应显著 | 华泰研究 | 公告点评 | 投资评级(维持 ): | 买入 | |---------------------------------------|--------------|---------------------|--------| | 2024 年 7 月 07 日│中国香港 | 废物管理 | 目标价 (港币): | 5.59 | 上调目标价至 5.59 港币,维持"买入"评级 7 月 7 日,粤丰环保和瀚蓝环境发布公告:瀚蓝环境筹划通过间接子公司瀚 蓝香港以协议安排方式私有化粤丰环保,交易完成后瀚蓝香港将持有粤丰环 保约 92.77%股份。我们认为,瀚蓝环境和粤丰环保强强联合,通过区域市 场协同、管理协同和技术协同,有望提升资产质量和估值水平。维持盈利预 测,预计 24-26 年粤丰环保归母净利 10.50/11.62/12.78 亿港币。考虑公司 大部分项目位于广东省,项目质量和回款条件较好,给予公司 13.0 倍 2024 年预测 PE(可比公司 Wind 一致预期均值:10.0 倍),对应目标价 5.59 港 币(前值 4.86 港币,对应 11.3 ...

Financial Performance - Revenue for 2023 decreased by 39.6% to HKD 4,980.16 million compared to HKD 8,246.645 million in 2022[5] - Gross profit for 2023 declined by 17.8% to HKD 2,079.499 million from HKD 2,529.021 million in 2022[5] - EBITDA for 2023 decreased by 13.9% to HKD 2,657.276 million compared to HKD 3,086.236 million in 2022[5] - Net profit for 2023 fell by 24.9% to HKD 1,020.527 million from HKD 1,359.463 million in 2022[5] - Basic earnings per share decreased by 25.0% to 41.2 HK cents in 2023 from 54.9 HK cents in 2022[5] - Revenue decreased by 39.6% to HKD 4,980.2 million, primarily due to a 76.7% reduction in construction income as most waste-to-energy projects have been commissioned[18] - Net profit decreased by 24.9% to HKD 1,020.5 million, impacted by a 10% increase in interest expenses due to rising overseas interest rates and a 7% depreciation of the RMB[18] - Gross margin and EBITDA margin improved to 41.8% and 53.4%, respectively, reflecting higher operational efficiency[18] - Revenue for 2023 decreased by 39.6% to HKD 4,980.2 million compared to HKD 8,246.6 million in 2022[26] - Gross margin significantly improved to 41.8% in 2023 from 30.7% in 2022[26] - EBITDA margin increased to 53.4% in 2023 from 37.4% in 2022[26] - Revenue for 2023 decreased by 39.6% to HKD 4,980.2 million compared to HKD 8,246.6 million in 2022, primarily due to a 76.7% decline in construction revenue to HKD 1,018.3 million as most waste-to-energy projects have been completed[36] - Operational revenue, including electricity sales, waste treatment, and environmental services, increased by 1.6% to HKD 3,771.8 million in 2023[36] - Gross profit margin improved significantly from 30.7% in 2022 to 41.8% in 2023, driven by a lower proportion of construction revenue, which has a lower margin[40] - Net profit attributable to equity holders decreased by 24.9% to HKD 1,001.3 million in 2023, with a 18.3% decline excluding interest expense and exchange rate impacts[47] - Revenue for 2023 decreased to 4,980,160 thousand HKD from 8,246,645 thousand HKD in 2022, representing a significant decline[197] - Gross profit for 2023 was 2,079,499 thousand HKD, down from 2,529,021 thousand HKD in 2022[197] - Operating profit for 2023 was 1,644,678 thousand HKD, compared to 2,056,723 thousand HKD in 2022[197] - Net interest expense for 2023 was 657,795 thousand HKD, up from 599,784 thousand HKD in 2022[197] - Profit before tax for 2023 was 1,140,273 thousand HKD, down from 1,646,873 thousand HKD in 2022[197] - Net profit for 2023 was 1,020,527 thousand HKD, compared to 1,359,463 thousand HKD in 2022[197] - Basic earnings per share for 2023 were 41.2 HK cents, down from 54.9 HK cents in 2022[197] - Other comprehensive loss for 2023 was 176,365 thousand HKD, compared to 977,155 thousand HKD in 2022[198] - Total comprehensive income for 2023 was 844,162 thousand HKD, up from 382,308 thousand HKD in 2022[198] - The company's equity holders' share of total comprehensive income for 2023 was 830,407 thousand HKD, compared to 402,246 thousand HKD in 2022[198] Assets and Liabilities - Total assets increased by 4.9% to HKD 27,075.156 million in 2023 from HKD 25,820.181 million in 2022[7] - Total liabilities rose by 3.5% to HKD 17,406.479 million in 2023 from HKD 16,816.275 million in 2022[7] - Total bank borrowings increased by 2.7% to HKD 13,945.095 million in 2023 from HKD 13,582.329 million in 2022[7] - Equity attributable to owners of the company grew by 6.8% to HKD 9,298.523 million in 2023 from HKD 8,703.034 million in 2022[7] - Total liabilities to total assets ratio decreased by 0.8 percentage points to 64.3% in 2023 from 65.1% in 2022[7] - The company's debt ratio decreased by 0.8 percentage points to 64.3%, reflecting improved financial stability[18] - Total assets increased to HKD 27,075,156 thousand in 2023 from HKD 25,820,181 thousand in 2022, reflecting growth in the company's asset base[199] - Non-current assets rose to HKD 22,115,092 thousand in 2023, up from HKD 21,341,396 thousand in 2022, driven by increases in property, plant, and equipment[199] - Current assets grew to HKD 4,960,064 thousand in 2023, compared to HKD 4,478,785 thousand in 2022, with cash and cash equivalents reaching HKD 1,897,648 thousand[199] - Total equity increased to HKD 9,668,677 thousand in 2023 from HKD 9,003,906 thousand in 2022, indicating improved shareholder value[199] - Non-current liabilities decreased to HKD 12,591,501 thousand in 2023 from HKD 12,980,235 thousand in 2022, primarily due to a reduction in bank borrowings[200] - Current liabilities rose to HKD 4,814,978 thousand in 2023, up from HKD 3,836,040 thousand in 2022, driven by higher trade payables and bank borrowings[200] - Net current assets declined to HKD 145,086 thousand in 2023 from HKD 642,745 thousand in 2022, reflecting increased short-term obligations[200] - Total liabilities and equity stood at HKD 27,075,156 thousand in 2023, aligning with the total assets figure[200] Waste-to-Energy Operations - The total daily waste processing capacity of the company's operational waste-to-energy plants is 31,840 tons, with an additional 10,500 tons in the planning phase[8][9] - The total installed power generation capacity of operational plants is 1,036 MW, with an additional 222.5 MW in the planning phase[8][9] - The highest waste processing fee is RMB 250/ton at the Shanghai Baoshan plant, while the lowest is RMB 49/ton at the Zaozhuang plant (under negotiation)[8] - The largest single-site waste processing capacity is 3,800 tons/day at the Shanghai Baoshan plant[8] - The largest single-site power generation capacity is 126 MW at the Shanghai Baoshan plant[8] - The company has 36 waste-to-energy projects across China, with 27 currently operational and 9 in the planning phase[8][9] - The average waste processing fee across all operational plants is approximately RMB 95.6/ton[8][9] - The Dongguan region has the highest concentration of operational plants, with 6 facilities processing a total of 10,550 tons/day[8] - The company has 15 projects with second-phase expansions planned, potentially adding 7,800 tons/day of processing capacity[8][9] - The smallest operational plant is the Xuwen plant with a capacity of 750 tons/day and 18 MW power generation[8] - The company's waste-to-energy projects have a total daily processing capacity of 54,540 tons, with 33 projects operational and a daily capacity of 43,690 tons[19] - The company processed approximately 16,615,728 tons of waste, an 18.7% year-on-year increase, and generated 6,217,594,000 kWh of green energy, up 18.4%[19] - The company's carbon reduction projects, including the Yingkou waste-to-energy project, are expected to reduce 245,000 tons of CO2 equivalent annually[12] - The company's waste incineration volume increased by 27.4% year-on-year to 8,621,000 tons in 2023[20] - The company's Yingkou waste incineration power generation project obtained registration approval for certified carbon emission reductions, expected to reduce 245,000 tons of CO2 equivalent annually[20] - The company processed 16,615,728 tons of waste in 2023, an increase of 18.7% from 13,993,553 tons in 2022[26] - Electricity generation from green energy reached 6,217,594,000 kWh in 2023, up 18.4% from 5,249,545,000 kWh in 2022[26] - Steam sales increased by 223.8% to 136,000 tons in 2023 from 42,000 tons in 2022[26] - The company's total daily municipal solid waste treatment capacity reached 54,540 tons across 36 projects[27] - In South China, the company processed 9,623,321 tons of waste in 2023, up 8.5% from 8,872,108 tons in 2022[29] - The company sold 5,349,441 MWh of electricity in 2023, an increase of 18.0% from 4,532,048 MWh in 2022[29] - The company signed a 3-year waste treatment service agreement to transport 200,000 tons of waste to a waste-to-energy plant[34] Contracts and Projects - The company secured a 25-year contract for the Quyang County urban and rural sanitation and waste compression, transfer, and treatment project, valued at RMB 3,256 million[11] - The company won a 10-year contract extension for the North Lantau and Outlying Islands Waste Transfer Facilities, valued at HKD 2,818 million[12] - The company secured new contracts worth over RMB 8,000 million in the environmental sanitation sector during the year[20] - The company successfully bid for multiple projects, including the first waste transfer station contract in Hong Kong and the first environmental sanitation project in Anhui Province[20] - The company secured a 25-year contract worth RMB 3,256 million for a waste treatment project in Quyang County, Hebei Province, marking its first environmental project exceeding RMB 3,000 million[35] - In January 2024, the company won a 25-year urban management service project in Dangshan County, Anhui Province, its first environmental project in Anhui[35] - The company's joint venture was awarded a 10-year contract extension worth HKD 2,818 million for waste transfer facilities in Hong Kong[35] Corporate Governance and Board Activities - The company declared a final dividend of 3.2 HK cents per share, with a total annual dividend of 8.1 HK cents per share[18] - The company declared an interim dividend of 4.9 HK cents per ordinary share for 2023, down from 6.2 HK cents in 2022[66] - A final dividend of 3.2 HK cents per ordinary share is proposed for 2023, subject to shareholder approval at the AGM on June 21, 2024[66] - The company's Compensation Committee held 2 meetings in 2023 (March and September) to review and approve senior management salary adjustments, determine executive director compensation policies, and propose new director compensation[92] - Senior management compensation for 2023 ranged from HKD 1,000,001 to HKD 2,000,000 for 7 members and HKD 4,000,001 to HKD 5,000,000 for 1 member[93] - The company's gender diversity ratio as of December 31, 2023, was 58:42 (male:female)[94] - The Nomination Committee is responsible for reviewing the Board's structure, size, and composition annually, proposing changes to align with company strategy, and recommending director appointments or reappointments[94] - The Nomination Committee evaluates candidates based on their contribution to Board diversity, time commitment, and effectiveness in areas such as strategy, policy, performance, and accountability[95] - Independent non-executive director candidates are assessed for independence based on HKEX Listing Rule 3.13 criteria and their professional qualifications or financial management experience[96] - The Compensation Committee's responsibilities include recommending overall remuneration policies, approving performance-based pay, and ensuring termination payments are consistent with contracts and reasonable[91] - The Nomination Committee follows a formal, transparent process for director selection, appointment, and reappointment, with the Board having final decision-making authority[95] - The Compensation Committee reviews and approves compensation for loss or termination of office, ensuring it aligns with contractual terms and is fair and reasonable[91] - The Nomination Committee ensures compliance with Board requirements, company constitutional documents, and applicable laws or listing rules[96] - The Audit Committee was non-compliant with Listing Rule 3.21, having only two independent non-executive directors instead of the required three[97] - The Nomination Committee was non-compliant with Listing Rule 3.27A, lacking a chairman and having only two independent non-executive directors[97] - The Board adopted a diversity policy, considering factors such as gender, age, cultural and educational background, race, professional experience, skills, knowledge, and tenure[98] - The Board aims for an appropriate gender balance and a suitable proportion of directors with direct experience in the Group's core markets[98] - The Nomination Committee held two meetings in 2023 to consider retiring directors and recommend new directors[100] - The Corporate Governance Committee includes members such as Mr. Chan Kam Kwan, Ms. Li Wing Yee, Professor Sha Zhenquan, and Mr. Li Songhua[101] - The Corporate Governance Committee held one meeting in March 2023 to review corporate governance policies and compliance[101] - The Strategy and Sustainability Committee includes members such as Mr. Lai Chun Tung, Mr. Lui Ting Cheong, and Professor Sha Zhenquan[102] - The Strategy and Sustainability Committee held one meeting in March 2023 to review strategic development reports and discuss compliance with Listing Rules[103] - The Board believes it has achieved diversity, with a composition that considers age, gender, cultural and educational background, and professional experience[99] - The company's internal control and risk management systems are effective and sufficient, as confirmed by the Board of Directors and the Audit Committee[104] - The company has established mechanisms to ensure the independence of the Board of Directors, including access to independent professional advice[105] - The company has implemented strict procedures for handling and disclosing insider information to ensure compliance with regulatory requirements[106] - The company has a whistleblowing policy in place, with complaints being handled within 5 working days for physical submissions and 3 working days for electronic submissions[107] - The company has an anti-corruption policy that prohibits bribery, corruption, extortion, and embezzlement, and supports compliance with relevant laws and regulations[109] - The Board of Directors is responsible for preparing the financial statements, ensuring they reflect the company's financial position, performance, and cash flows accurately[110] - The company secretary, who reports to the Chairman, is responsible for providing governance advice to the Board and has completed at least 15 hours of relevant professional training[111] - Shareholders holding at least 10% of the company's paid-up share capital can request the convening of a general meeting, with the company covering reasonable expenses if the Board fails to arrange the meeting[112] - The company has approved and adopted a dividend policy, aiming to distribute dividends annually, subject to considerations of distributable profits, financial condition, liquidity, investment needs, and retained earnings for future development[114] - The 2023 Annual General Meeting (AGM) saw all proposed resolutions, including the re-election of retiring directors, passed by shareholders through a poll vote[115] - The company has enhanced investor relations by holding multiple meetings with institutional investors, fund managers, and financial analysts in 2023[116] - The company plans to revise its Memorandum and Articles of Association to comply with the latest regulatory requirements for electronic dissemination of corporate communications, effective from December 31, 2023[117] - The proposed amendments to the Memorandum and Articles of Association will be presented for shareholder approval at the 2024 AGM on June 21, 2024[117] - Li Jundong, aged 49, has been serving as an executive director of the company since 2014 and is responsible for overseeing the overall strategy and major corporate and operational decisions of the group[119] - Feng Jun, aged 60, has over 30 years of experience in capital market operations and serves as the Chief Representative of Shanghai Representative Office of Shanghai Industrial Holdings and Chairman and CEO of Shanghai Overseas Co., Ltd[120] - Lu Dingchang, aged 44, has been a non-executive director since 2014 and is the Managing Director of Olympus Capital Holdings Asia, responsible for environmental investments in Asia[120] - Sha Zhenquan, aged 64, has been an independent non-executive director since 2014 and is a professor at the School of Business Administration, South China University of Technology[121] - Chen Jinkun, aged 50, has been an independent non-executive director since 2014 and is a certified public accountant licensed by the Washington State Board of Accountancy[121] - Li Songhua, aged 58, has been an independent non-executive director since 2023 and is a partner at Nixon Peabody LLP, specializing in corporate finance and cross-border acquisitions[122] - Song Lanqun, aged 56, has been the Vice President and Chief Engineer of the group since 2014, responsible for operational safety and compliance[123] - Chen Bo, aged 48, has been the Vice President and

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$4.40, indicating a potential upside of 10.3% based on the current price of HK$3.99 [4][9]. Core Insights - The company's revenue structure has changed, leading to a significant increase in gross margin, which rose by 11.1 percentage points to 41.8% in FY23. However, total revenue decreased by 39.6% year-on-year to HK$4.98 billion, primarily due to the depreciation of the RMB and a reduction in project development [2][3]. - The company aims to maintain its capacity in FY24, which is expected to enhance future dividend payout ratios and further support gross margin improvements as construction revenue decreases [3][4]. - The sanitation business is developing rapidly, contributing to revenue diversification. In FY23, sanitation and other service revenues increased by 50.7% to HK$340 million, and the report anticipates this segment's revenue share will reach 9.0% by 2025 [4]. Financial Summary - For FY23, the company reported a net profit of HK$1.00 billion, a decline of 24.8% year-on-year, with an expected recovery to HK$1.27 billion in FY24 and HK$1.38 billion in FY25 [2][4]. - The earnings per share (EPS) for FY23 was HK$0.41, with projections of HK$0.52 for FY24 and HK$0.57 for FY25 [4][7]. - The company’s total revenue for FY23 was HK$4.98 billion, with forecasts of HK$4.67 billion for FY24 and HK$4.71 billion for FY25, reflecting a downward trend in revenue generation [4][7].