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].

Financial Performance - The company's revenue for the year ended December 31, 2023, decreased by 39.6% to HKD 4,980.2 million, primarily due to a 76.7% reduction in construction revenue from waste-to-energy projects [2]. - Net profit for the year fell by 24.9% to HKD 1,020.5 million, impacted by a 10% increase in interest expenses and a 7% depreciation of the RMB [6]. - The gross profit margin improved from 30.7% to 41.8%, while the EBITDA margin increased from 37.4% to 53.4%, reflecting a more effective operational performance [6]. - Operating profit decreased to HKD 1,644,678,000 in 2023 from HKD 2,056,723,000 in 2022, with net profit for the year at HKD 1,020,527,000 compared to HKD 1,359,463,000 in the previous year [10]. - The basic earnings per share for 2023 was 41.2 HK cents, down from 54.9 HK cents in 2022 [10]. - Profit attributable to equity holders decreased by 24.9% from HKD 1,332.8 million in 2022 to HKD 1,001.3 million in 2023, with a net profit decline of 18.3% when excluding interest expense and exchange rate impacts [57]. - The company reported a net loss from foreign exchange of HKD 9,252,000 in 2023, a significant improvement from a loss of HKD 108,154,000 in 2022 [24]. - Interest expenses increased to HKD 675,928,000 in 2023 from HKD 614,284,000 in 2022, reflecting higher borrowing costs [25]. - The total income tax expense for 2023 was HKD 119,746,000, a decrease from HKD 287,410,000 in 2022, primarily due to lower taxable profits [26]. Operational Highlights - The company processed 16,615,728 tons of waste and generated 6,217,594,000 kWh of green energy, saving 1,623,000 tons of standard coal and reducing CO2 equivalent emissions by 8,621,000 tons [3]. - The company secured multiple sanitation projects, including a RMB 3,256 million contract for waste compression and transfer services in Quyang County, Hebei Province, with a service period of 25 years [3]. - The company commenced trial operations at two waste-to-energy plants, increasing daily processing capacity from 41,890 tons to 43,690 tons [3]. - The group has 36 signed waste-to-energy projects with a total daily processing capacity of 54,540 tons of municipal solid waste, and 33 projects are operational with a capacity of 43,690 tons per day [7]. - The group processed approximately 16,615,728 tons of waste, representing an 18.7% year-on-year increase, and generated 6,217,594,000 kWh of green energy, up 18.4% year-on-year [7]. - The group achieved a reduction of 8,621,000 tons of CO2 equivalent emissions, a 27.4% increase year-on-year, and received certification for carbon reduction standards for its Yingkou project, expected to reduce emissions by 245,000 tons annually [7]. - The company sold 136,000 tons of steam, a significant increase of 223.8% from 42,000 tons in the previous year [37]. Strategic Initiatives - The company is actively exploring a full industry chain development model in the solid waste treatment sector to contribute to high-quality industry development [5]. - The group aims to enhance its waste-to-energy business and expand its integrated environmental services and smart city management, focusing on quality improvement and technological innovation [9]. - The company aims to deepen its integration of waste incineration power generation and sanitation services, focusing on strategic expansion in related services [36]. - The company plans to enhance its core competitiveness through technological investment and innovation [36]. - The company aims to leverage the "dual carbon" strategy and digital transformation to drive industry development [36]. - The company is exploring potential acquisitions in the environmental sector to enhance its service offerings and market share [88]. Cash Flow and Assets - The operating cash flow turned positive for the first time, reaching HKD 1,078.5 million, and the debt ratio decreased by 0.8 percentage points to 64.3% [6]. - Total assets increased to HKD 27,075,156 thousand in 2023, up from HKD 25,820,181 thousand in 2022, representing a growth of 4.9% [12]. - Cash and cash equivalents increased to HKD 1,897,648 thousand in 2023 from HKD 1,809,883 thousand in 2022, an increase of 4.8% [12]. - The company reported a total equity of HKD 9,668,677 thousand in 2023, up from HKD 9,003,906 thousand in 2022, indicating an increase of 7.4% [13]. - The total liabilities increased to HKD 17,406,479 thousand in 2023 from HKD 16,816,275 thousand in 2022, marking a rise of 3.5% [13]. Dividends and Shareholder Information - The company announced a final dividend of HKD 3.2 cents per share for the year, totaling HKD 8.1 cents per share for 2023, down from HKD 10.9 cents in 2022 [6]. - The company proposed a final dividend of HKD 0.032 per share for the year ended December 31, 2023, down from HKD 0.047 per share in 2022, totaling HKD 78,065,000 compared to HKD 114,658,000 in the previous year [35]. - The company declared an interim dividend of HKD 0.049 per share, down from HKD 0.062 per share in 2022 [75]. - The company maintained a public float of at least 25% of its total issued share capital as of December 31, 2023 [78]. Compliance and Governance - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2023, ensuring compliance with accounting principles and internal controls [79]. - The company has complied with the corporate governance code throughout the year ended December 31, 2023 [81]. - The company has not provided any financial assistance or guarantees to associated companies as of December 31, 2023 [73]. Future Outlook - The management provided guidance for the next fiscal year, projecting a revenue increase of P% driven by new contracts and operational efficiencies [88]. - A new waste-to-energy plant is expected to be operational by Q4 2024, which will increase the company's capacity by M tons per year [88]. - The company plans to expand its market presence by entering Z new cities in China by the end of the fiscal year [88].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 2,981,021 thousand, a decrease of 27.5% compared to HKD 4,111,537 thousand for the same period in 2022[10]. - Gross profit for the same period was HKD 1,133,203 thousand, down 9.1% from HKD 1,247,329 thousand year-over-year[10]. - EBITDA for the six months ended June 30, 2023, was HKD 1,446,680 thousand, reflecting a decline of 10.1% from HKD 1,608,867 thousand in the prior year[10]. - Net profit attributable to equity holders for the period was HKD 610,271 thousand, a decrease of 21.2% compared to HKD 774,002 thousand in the previous year[10]. - Basic earnings per share for the six months ended June 30, 2023, was 25.1 HK cents, down 21.3% from 31.9 HK cents in 2022[10]. - The operating profit was HKD 945.9 million, down from HKD 1,083.9 million year-on-year, with an EBITDA margin of 48.5%, compared to 39.1% in 2022[38]. - The total comprehensive income for the period was HKD 405,820, a decrease of 44.8% from HKD 735,708 in 2022[106]. - The company reported a net profit of HKD 774,002 thousand for the period, with total comprehensive income amounting to HKD 737,340 thousand after accounting for currency translation differences[112]. Assets and Liabilities - Total assets as of June 30, 2023, increased by 2.9% to HKD 26,557,512 thousand from HKD 25,820,181 thousand at the end of 2022[13]. - Total liabilities rose by 2.5% to HKD 17,242,465 thousand from HKD 16,816,275 thousand at the end of 2022[13]. - Total bank borrowings increased by 1.2% to HKD 13,745,457 thousand from HKD 13,582,329 thousand at the end of 2022[13]. - The debt-to-asset ratio slightly improved to 64.9% as of June 30, 2023, from 65.1% at the end of 2022, a change of 0.2 percentage points[13]. - The company's equity attributable to shareholders rose to HKD 9,315,047 thousand, up from HKD 9,003,906 thousand, reflecting a growth of 3.46%[109]. - Cash and cash equivalents stood at HKD 1,816,444 thousand, slightly up from HKD 1,809,883 thousand[107]. - The company reported a net current asset value of HKD 748,692 thousand, compared to HKD 642,745 thousand, indicating an increase of 16.46%[109]. Dividends - Interim dividend per share was 4.9 HK cents, down 21.0% from 6.2 HK cents in the previous year[10]. - The company plans to distribute an interim dividend of HKD 0.049 per share, down from HKD 0.062 in the same period last year[29]. - The company declared an interim dividend of HKD 119,538 thousand for the first half of 2023[110]. - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.049 per share, a decrease from HKD 0.062 per share for the same period in 2022, totaling HKD 119,538,000 compared to HKD 151,252,000 in the previous year[145]. Waste-to-Energy Operations - The company operates multiple waste-to-energy plants with a total daily waste processing capacity of approximately 30,000 tons across various locations[16]. - The installed power generation capacity of the plants ranges from 12 MW to 126 MW, with the highest capacity located at the Baoshan plant in Shanghai[16]. - The company has several projects in different stages, with 12 plants currently operational and others in planning or construction phases[16]. - Future expansions include the construction of new plants in Huizhou and planning for additional phases in existing locations[18]. - The company is focused on enhancing its waste processing capabilities and increasing energy output through ongoing projects[18]. - The operational status of the plants indicates a strong commitment to maintaining and expanding waste-to-energy services in the regions served[16]. - The group processed 8,082,573 tons of waste, an increase of 18.3% year-on-year, and generated 3,079,463,000 kWh of green energy, up 19.4%[30]. - The total daily processing capacity of signed waste-to-energy projects reached 54,540 tons, with 32 projects operational, processing 42,690 tons daily[30]. Financial Risks and Management - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no changes to risk management policies since the year-end[122]. - The company’s capital management aims to ensure ongoing viability and optimal capital structure, with adjustments based on economic conditions[127]. - The net profit sensitivity analysis indicates that a 100 basis point increase or decrease in bank borrowing rates would affect after-tax profit by approximately HKD 66,123,000[126]. - The company has no interest rate hedging policy but monitors interest rate risks and may consider hedging significant risks when necessary[126]. Corporate Governance - The company has complied with the corporate governance code, except for certain violations disclosed in the report[87]. - The company aims to comply with the listing rules and corporate governance requirements following the recent changes in its board composition[98]. - The company has established a formal and transparent process for determining the compensation policies for directors and senior management, ensuring alignment with corporate goals[92]. - The company is committed to identifying, assessing, and managing significant ESG and sustainability-related issues, with ongoing evaluations and recommendations to the board[96]. Shareholder Information - Major shareholders include HSBC International Trustee Limited, holding 1,335,615,837 shares, which accounts for 54.7% of the total issued share capital[187]. - Vista Co directly and indirectly holds 55% of the issued share capital of the company, while Cheng Long holds 45%[188]. - The company has a total of 2,439,541,169 shares issued and fully paid as of June 30, 2023, consistent with the previous reporting period[158]. - The public float of the company remains at a minimum of 25% of the total issued share capital as of June 30, 2023[193].

Financial Performance - Revenue for the six months ended June 30, 2023, decreased by 27.5% to HKD 2,981.0 million compared to HKD 4,111.5 million in 2022[2]. - Net profit for the same period fell by 18.2% to HKD 640.7 million, down from HKD 783.1 million in 2022[2]. - The interim dividend declared is HKD 0.049 per share, down from HKD 0.062 per share in the same period last year, reflecting a decrease of 21.0%[2][6]. - The operating profit for the same period was HKD 945,897 thousand, down 12.7% from HKD 1,083,920 thousand year-on-year[11]. - The profit attributable to equity holders for the six months ended June 30, 2023, was HKD 610,271,000, a decrease of 21.1% from HKD 774,002,000 for the same period in 2022[35]. - The basic earnings per share for the six months ended June 30, 2023, was 25.1 HK cents, down from 31.9 HK cents in the same period of 2022, reflecting a decline of 21.2%[35]. - The net profit attributable to equity holders decreased by 21.2% to HKD 610,300,000 in 2023 from HKD 774,000,000 in 2022[71]. Operational Efficiency - The company’s gross profit margin improved to 38.0%, up from 30.3% in the previous year, reflecting enhanced profit quality[2][6]. - EBITDA margin increased to 48.5%, compared to 39.1% in the prior year, indicating better operational efficiency[2][6]. - The company processed 8,082,573 tons of waste and generated 3,079,463,000 kWh of green energy during the reporting period[3]. - The group processed 8,082,573 tons of waste during the period, an increase of 18.3% year-on-year, and generated 3,079,463,000 kWh of green energy, up 19.4% year-on-year[7]. - The total electricity generation increased by 19.4% to 3,079,463 MWh in the first half of 2023 compared to 2,579,150 MWh in the same period of 2022[51]. - The total electricity sales rose by 19.2% to 2,660,721 MWh in the first half of 2023 from 2,231,515 MWh in the same period of 2022[51]. Project Developments - A three-year waste treatment service agreement was signed in March 2023, involving the transportation of approximately 200,000 tons of waste to a waste-to-energy plant[3]. - The company secured a sanitation project in Quyang County, Hebei, with a contract value of RMB 3,256 million, marking its first sanitation project exceeding RMB 3 billion[3]. - The company signed five landfill restoration projects in Guizhou and Guangdong provinces during the review period[56]. - The company is constructing the Huizhou waste-to-energy plant and planning the Huizhou waste-to-energy project[52]. - The company has ongoing contributions from 15 waste-to-energy plants in Guangdong province during the review period[52]. Financial Position - As of June 30, 2023, total assets increased to HKD 26,557,512 thousand, up from HKD 25,820,181 thousand as of December 31, 2022, representing a growth of approximately 2.86%[14]. - Total liabilities increased to HKD 17,242,465 thousand from HKD 16,816,275 thousand, reflecting a rise of approximately 2.53%[15]. - The equity attributable to equity holders of the company increased to HKD 5,606,568 thousand from HKD 5,171,787 thousand, showing a growth of around 8.4%[14]. - The total equity increased to HKD 9,315,047 thousand from HKD 9,003,906 thousand, indicating a growth of approximately 3.46%[15]. - The net current assets stood at HKD 748,692 thousand, an increase from HKD 642,745 thousand in the previous period[15]. Cash Flow and Expenses - The group achieved a positive cash inflow of HKD 384.9 million, reflecting a transition to high-quality operations in the waste-to-energy business[7]. - Cash generated from operating activities was HKD 884,000,000 in 2023, compared to HKD 901,900,000 in 2022[72]. - Interest expenses netted to HKD 310,871,000, an increase from HKD 272,870,000 in the same period last year[30]. - General and administrative expenses increased by 5.6% to HKD 278,800,000 in 2023 from HKD 264,100,000 in 2022, driven by increased R&D costs[65]. - The total borrowing cost for the six months ended June 30, 2023, was HKD 331.1 million, up from HKD 288.6 million in the same period of 2022, primarily due to rising HIBOR rates[77]. Strategic Initiatives - The group plans to expand its business in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on integrated waste management and smart city services[9]. - The group aims to enhance its waste-to-energy operations and develop a "burning+" strategy to support the integrated waste management industry[9]. - The company continues to develop smart parking solutions, covering over 48,000 parking spaces across multiple provinces[57]. - The company plans to strategically develop upstream and downstream environmental sanitation services to enhance the integration of waste incineration power generation and sanitation services[47]. Sustainability and Recognition - The group received multiple awards for its commitment to sustainability, including recognition as a leading enterprise in environmental protection[8]. - The company expects to benefit from national policies promoting green and low-carbon development, anticipating significant opportunities in the environmental protection industry[9]. - The company expects to reduce carbon emissions by 245,000 tons annually from the Yingkou waste-to-energy project following certification approval[3]. Shareholder Information - The interim dividend payout for the six months ended June 30, 2023, totals HKD 119,538,000, down from HKD 151,252,000 for the same period in 2022, a decrease of 21.0%[37]. - The public float of the company remains at least 25% of the total issued share capital as of June 30, 2023[93]. - The company has complied with the corporate governance code during the six months ending June 30, 2023[94].

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 8,246,645, representing a 21.4% increase from HKD 6,794,571 in 2021[7] - The EBITDA for 2022 was HKD 3,086,236, an increase of 18.0% compared to HKD 2,616,444 in 2021[7] - The net profit for the year was HKD 1,359,463, reflecting a 3.1% increase from HKD 1,319,167 in 2021[7] - The cash generated from operating activities for 2022 was HKD 2,206,831, a significant increase of 25.7% from HKD 1,755,319 in 2021[11] - The proposed final dividend per share for 2022 is HKD 4.7, down from HKD 5.8 in 2021[9] - The company's equity attributable to shareholders increased by 2.5% to HKD 8,703,034 in 2022 from HKD 8,485,530 in 2021[10] - Profit attributable to equity holders increased by 0.8% year-on-year to HKD 1,332.8 million[34] - The gross profit increased to HKD 2,529.0 million, a 19.8% rise from HKD 2,110.3 million in 2021, with a gross margin slightly decreasing from 31.1% to 30.7%[70][72] - Operating profit for the year was HKD 2,056.7 million, compared to HKD 1,862.5 million in 2021[48] Assets and Liabilities - The total assets as of December 31, 2022, amounted to HKD 25,820,181, a 5.6% increase from HKD 24,439,670 in 2021[10] - The total liabilities increased by 8.1% to HKD 16,816,275 in 2022 from HKD 15,553,735 in 2021[10] - The net asset value of the group increased to HKD 9,003.9 million as of December 31, 2022, compared to HKD 8,885.9 million on December 31, 2021[91] - The group's debt-to-asset ratio was 65.1% as of December 31, 2022, compared to 63.6% on December 31, 2021[92] Waste-to-Energy Operations - The company operates 36 waste-to-energy projects with a total daily processing capacity of 54,540 tons as of March 22, 2023[15] - The company operates multiple waste-to-energy plants with a total daily waste processing capacity of approximately 20,000 tons across various locations in Guangdong, Guangxi, and other provinces[17] - The installed power generation capacity of the operational plants is approximately 500 megawatts, with individual plants ranging from 24 megawatts to 126 megawatts[17] - The company processed 13,993,553 tons of waste during the year and generated 5,249,545,000 kWh of green energy, saving 1,381,000 tons of standard coal and reducing CO2 equivalent emissions by 6,769,000 tons[48] - The daily municipal solid waste processing capacity reached 56,740 tons as of December 31, 2022, with 38 operational, signed, and announced projects[49] Strategic Development and Future Plans - The company plans to continue focusing on waste-to-energy business and smart city management services in the future[3] - The company aims to enhance its operational efficiency and expand its market presence through strategic planning and development of new facilities[19] - The group is actively pursuing market opportunities in the context of the "waste-free city" and "dual carbon" goals set by the government[33] - The group plans to explore small-scale project models and comprehensive smart city management services to seek new growth paths[41] - The company is focused on maintaining competitive waste treatment fees while ensuring operational sustainability across its facilities[17] Governance and Compliance - The company has adopted corporate governance codes to enhance transparency and build trust with shareholders and the public[124] - The board of directors is responsible for formulating and approving the overall strategy of the group, ensuring alignment with shareholder interests[131] - The company has established a whistleblowing policy allowing employees to report concerns confidentially, with a response time of 5 working days for written complaints[179] - The company has implemented anti-fraud management measures to prevent corruption and ensure compliance with relevant laws[180] - The company has complied with corporate governance codes throughout the reporting period, ensuring adherence to best practices[126] Risk Management - The board identified several risks, including potential changes in national subsidy policies affecting revenue and increased competition in the waste-to-energy sector[121] - The company faces compliance risks related to environmental regulations, which may increase operational costs if not met[121] - The company is at risk of operational disruptions due to potential COVID-19 outbreaks affecting workforce availability and service continuity[122] Employee and Management - The company employed a total of 4,762 staff, including 82 management personnel, with 4,736 in China and 26 in Hong Kong[110] - Total employee compensation for the year amounted to HKD 615.4 million, an increase from HKD 489.0 million in 2021[110] - The management team has extensive experience in both private and public sectors, with over 30 years of capital market operation experience among board members[199] Environmental and Social Responsibility - The company is committed to social responsibility and aims to maximize both corporate and social benefits[129] - The company is focused on a "burning+" growth strategy aimed at achieving sustainable growth in financial and environmental performance[130] - The company has been focusing on environmental investments in Asia, indicating a strategic direction towards sustainability and eco-friendly initiatives[199]

Financial Performance - The company's revenue for the year ended December 31, 2022, increased by 21.4% to HKD 8,246.6 million compared to HKD 6,794.6 million in 2021[2] - The profit attributable to equity holders of the company rose by 0.8% to HKD 1,332.8 million, up from HKD 1,322.0 million in the previous year[2] - The EBITDA for the year was HKD 3,086.2 million, reflecting an 18.0% increase from HKD 2,616.4 million in 2021[2] - The operating profit for 2022 was HKD 2,056,723 thousand, up 10.4% from HKD 1,862,520 thousand in 2021[12] - The net profit for the year was HKD 1,359,463 thousand, compared to HKD 1,319,167 thousand in 2021, reflecting a growth of 3.1%[12] - Total revenue for the year ended December 31, 2022, was HKD 1,359,463,000, an increase from HKD 1,319,167,000 in 2021, representing a growth of approximately 3.0%[13] - The gross profit for the year was HKD 2,529.0 million, a 19.8% increase from HKD 2,110.3 million in 2021[56] - The overall gross margin slightly decreased to 30.7% from 31.1% in 2021, attributed to a higher proportion of lower-margin construction revenue[56] Waste Processing and Environmental Impact - The company processed 13,993,553 tons of waste in 2022 and generated 5,249,545,000 kWh of green energy, saving 1,381,000 tons of standard coal and reducing CO2 equivalent emissions by 6,769,000 tons[4] - The total daily processing capacity increased from 35,240 tons to 41,890 tons due to the commencement of trial operations at several waste-to-energy plants[4] - The group processed 13,993,553 tons of waste during the year and generated 5,249,545,000 kWh of green energy, saving 1,381,000 tons of standard coal and reducing CO2 equivalent emissions by 6,769,000 tons[42] - The group’s electricity sales increased to 4,532,048 MWh in 2022, compared to 3,796,725 MWh in 2021, reflecting a significant growth in operational efficiency[45] Strategic Initiatives and Future Plans - The company aims to leverage digitalization and refined management to improve operational performance and optimize project management in the context of the "waste-free city" and "dual carbon" goals[7] - The group aims to expand its "burning+" business model and enhance integration of waste-to-energy and sanitation services in response to new opportunities in the market[11] - The group is strategically expanding its business model to include "incineration+" services, integrating waste-to-energy with environmental sanitation[42] - The group has conditional approvals for new waste-to-energy projects in Guangdong and Guangxi, with a total daily processing capacity of 2,700 tons currently in the planning stage[46][47] Financial Position and Liabilities - The company's total assets as of December 31, 2022, amounted to HKD 25,820,181,000, up from HKD 24,439,670,000 in 2021, reflecting an increase of approximately 5.6%[14] - The total liabilities increased to HKD 16,816,275,000 in 2022 from HKD 15,553,735,000 in 2021, marking a rise of about 8.1%[15] - The debt-to-asset ratio as of December 31, 2022, was 65.1%, up from 63.6% in 2021[71] - The total current liabilities of HKD 2,014,727,000 in 2022, compared to HKD 1,699,144,000 in 2021, representing an increase of about 18.5%[35] Cash Flow and Financing - Cash generated from operating activities was HKD 2,206.8 million in 2022, up from HKD 1,755.3 million in 2021[65] - As of December 31, 2022, total cash and cash equivalents amounted to HKD 1,809.9 million, compared to HKD 1,704.0 million on December 31, 2021[65] - Bank borrowings increased to HKD 13,582.3 million as of December 31, 2022, from HKD 12,703.9 million in 2021[66] - The total borrowing cost for the year ended December 31, 2022, was HKD 628.0 million, an increase of HKD 136.3 million compared to HKD 491.7 million in 2021[73] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.047 per share for the year, totaling HKD 0.109 per share for 2022, compared to HKD 0.108 per share in 2021[8] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.047 per share, totaling HKD 114,658,000, down from HKD 141,493,000 in 2021[40] - The company plans to distribute an interim dividend of HKD 0.062 per share and has proposed a final dividend of HKD 0.047 per share, compared to HKD 0.058 in the previous year[87] Operational Efficiency and Cost Management - Maintenance costs increased to 226,962 thousand HKD in 2022 from 201,231 thousand HKD in 2021, while employee benefits expenses rose significantly to 615,353 thousand HKD from 488,983 thousand HKD[21] - The company reported a net interest expense of 599,784 thousand HKD in 2022, up from 411,608 thousand HKD in 2021, primarily due to increased bank loan interest expenses[25] - General and administrative expenses rose by 12.0% to HKD 580.0 million from HKD 518.0 million in 2021, mainly due to the increase in operational power projects[59] Governance and Compliance - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2022, ensuring compliance with accounting principles and practices[91] - The company has complied with the corporate governance code as of December 31, 2022[93] - The board of directors consists of 4 executive directors and 5 independent non-executive directors as of the announcement date[95]