Financial Performance - In FY2024, the Group achieved revenue of HK$121.6 million, a 7.4% increase year-on-year, with gross profit rising by 52.5% to HK$62.0 million, resulting in a gross profit margin of 51.0%[31][35]. - The Group's net loss for FY2024 was HK$9.3 million, compared to HK$8.1 million in FY2023, primarily due to increased tax liabilities[31][35]. - Total revenue increased by HK$8.3 million or 7.4% to HK$121.6 million for FY2024 compared to HK$113.3 million for FY2023, driven by the full operation of the Bangka Project and the data centre in Jambi[42][45]. - Gross profit increased by HK$21.4 million or 52.5% from HK$40.7 million for FY2023 to HK$62.0 million for FY2024, with gross profit margin rising from 35.9% to 51.0%[47][52]. - Profit before tax increased by HK$0.5 million or 65.0% to HK$1.2 million for FY2024, reflecting improved financial performance[59][65]. - Loss attributable to owners of the Company increased by HK$0.4 million or 5.6% to HK$8.7 million for FY2024, influenced by the factors mentioned above[61][67]. Operational Developments - In FY2024, the wastewater treatment facility operated by Rugao Hengfa will expand its capacity from 40,000 tonnes to 50,000 tonnes per day, ensuring compliance with higher environmental standards[14]. - The Bangka biomass power plant in Indonesia commenced operations in late July 2024, securing a 25-year fixed-price agreement with PLN, providing a stable revenue stream[15]. - The company is progressing with the strategic divestment of an 80% interest in the wood pellet production business of RPSL, with completion expected in the first half of 2025[15]. - RPSL's data center business has emerged as a growing revenue contributor, providing steady cash flow to the Group in FY2024[15]. - The planned disposal of an 80% interest in the wood pellet production business remains pending due to government approval delays, with completion aimed for the first half of 2025[26][39]. Financial Management - The company aims to reduce debt and improve operational efficiency while exploring new growth opportunities in wastewater treatment and renewable energy[19]. - As of December 31, 2024, total utilized bank borrowings were HK$75.4 million, with a gearing ratio increasing from 66.0% in FY2023 to 80.0% in FY2024[33][36]. - The Group is focused on reducing debt and interest expenses while managing financial leverage to ensure long-term sustainability[40][41]. - Administrative expenses rose by 28.8% from HK$26.5 million in FY2023 to HK$34.1 million in FY2024, driven by higher staff costs and legal fees[32][35]. - Finance costs decreased slightly by HK$0.6 million or 4.7% to HK$12.1 million for FY2024, mainly due to lower interest on loans from related parties[58][64]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report highlights its commitment to sustainable development and adherence to reporting principles such as materiality and consistency[110]. - The Group has established risk management mechanisms to identify, evaluate, manage, and monitor material ESG risks[136]. - The Group's sustainability strategies focus on four pillars: Corporate Governance, Creating Green Fortune, Caring Our People, and Contributing to the Community[140]. - The Group actively engages with stakeholders, including contractors, shareholders, investors, and local communities, to gather feedback on operations and sustainable development performance[145]. - The Group aims to strengthen climate resilience in operations and solutions towards a greener future[142]. Wastewater Treatment and Biomass Power Generation - The wastewater treatment facility in Jiangsu Province has a daily treatment capacity of 40,000 tonnes, with an expected total wastewater treated of 14,410,153 tonnes in 2024, and a chemical oxygen demand (COD) removal of 4,465 tonnes[119]. - The biomass power plant in Bangka, Indonesia, is projected to generate 30,995,484 kWh of electricity in 2024, with 27,670,202 kWh expected to be exported to the national electricity company (PLN) in the same year[119]. - The wastewater treatment processes include filtration, sedimentation, adjustment, acidification, anaerobic treatment, and sterilization, ensuring compliance with local standards[123]. - The company has obtained necessary Pollutant Emission Permits and conducts daily water quality monitoring to ensure treated wastewater meets required standards[124]. - The company promotes the reuse of treated wastewater for equipment cleaning purposes to conserve water resources[167]. Employee and Organizational Development - As of December 31, 2024, the Group had 302 employees, an increase from 176 employees as of December 31, 2023[93]. - Employee costs for FY2024 amounted to approximately HK$16.3 million, compared to HK$15.5 million for FY2023, reflecting a year-on-year increase of about 5.2%[93]. - The Group encourages employee self-development and provides on-the-job training, linking bonuses to both group and individual performance[93]. - The Group strictly adheres to employment-related regulations and reported no significant violations in areas such as compensation, recruitment, and equal opportunities during the reporting period[195]. - The employee distribution by age shows that 111 employees are 30 or below, 66 are between 31-40, 22 are between 41-50, and 22 are 51 or above[199].

Financial Performance - For the fiscal year ending December 31, 2024, the operating revenue was HKD 121.6 million, an increase of 7.4% compared to HKD 113.3 million in the fiscal year 2023[5]. - The gross profit for the fiscal year 2024 was HKD 62.0 million, representing a significant increase of 52.5% from HKD 40.7 million in the fiscal year 2023[5]. - The profit before tax for the fiscal year 2024 was HKD 1.2 million, up 65.0% from HKD 0.7 million in the fiscal year 2023[5]. - The net loss for the fiscal year 2024 was HKD 9.3 million, compared to a net loss of HKD 8.1 million in the fiscal year 2023[5]. - The group reported a total comprehensive loss of HKD 26.1 million for the fiscal year 2024, compared to HKD 11.0 million in the fiscal year 2023[7]. - The basic and diluted loss per share for the fiscal year 2024 was HKD 0.79, compared to HKD 0.75 in the fiscal year 2023[6]. - The company reported a pre-tax profit of HKD 1,155,000 for the year ended December 31, 2024, compared to HKD 700,000 in 2023, reflecting an increase of approximately 65.0%[27]. - The company recorded a revenue of HKD 121.6 million for the fiscal year 2024, an increase of 7.4% compared to HKD 113.3 million in fiscal year 2023[50]. Expenses and Costs - Research and development expenses for the fiscal year 2024 amounted to HKD 3.2 million, indicating a new investment in innovation[6]. - The total administrative expenses increased to HKD 34.1 million in fiscal year 2024 from HKD 26.5 million in fiscal year 2023[6]. - Administrative expenses increased by 28.8% to HKD 34.1 million in fiscal year 2024, primarily due to rising employee costs and legal fees[59]. - The total cost of sales decreased by 17.9% to HKD 59.6 million in fiscal year 2024, mainly due to reduced water and electricity costs in the wastewater treatment business[55]. - Financing costs decreased slightly from HKD 12.7 million in FY2023 to HKD 12.1 million in FY2024, a reduction of 0.6 million or 4.7%[61]. Assets and Liabilities - Non-current assets decreased from HKD 65,204,000 to HKD 55,405,000, a decline of approximately 15%[8]. - Current assets increased from HKD 123,982,000 to HKD 127,392,000, an increase of about 2.5%[8]. - Total liabilities decreased from HKD 117,327,000 to HKD 110,942,000, a reduction of approximately 5.5%[8]. - Total equity decreased from HKD 278,900,000 to HKD 252,805,000, a decline of around 9.4%[9]. - The company's total assets decreased slightly from HKD 408,774,000 to HKD 405,772,000, a decrease of about 0.5%[9]. - Total liabilities increased to HKD 263,909,000 in 2024 from HKD 247,201,000 in 2023, marking an increase of about 6.8%[28][29]. - The company's total bank borrowings amounted to HKD 75.4 million as of December 31, 2024, with a debt-to-asset ratio increasing from 66.0% in fiscal year 2023 to 80.0% in fiscal year 2024[51]. Revenue Sources - Revenue from operational services under service concession arrangements was HKD 55.915 million, up 54.5% from HKD 36.165 million in the previous year[24]. - Revenue from information technology services surged to HKD 12.499 million, a significant increase from HKD 3.688 million in 2023[24]. - The group reported a total revenue from customer contracts of HKD 102.989 million, compared to HKD 95.986 million in the previous year[24]. - Interest income from receivables under service concession arrangements was HKD 18.627 million, slightly up from HKD 17.293 million[24]. - The total amount of bank borrowings utilized as of December 31, 2024, was HKD 75.4 million, with HKD 46.8 million due on demand and HKD 28.6 million due within one year[67]. Strategic Initiatives - The company is focusing on strategic growth plans, including the expansion of wastewater treatment facilities in Rugao, China, and plans to sell its wood pellet production business[47]. - The company anticipates the completion of the Rugao Hengfa facility expansion project in the first half of 2025, which will enhance wastewater treatment capacity from 40,000 tons to 50,000 tons per day[52]. - The company is committed to completing the sale of 80% of the RPSL wood pellet production business by the first half of 2025, despite delays due to government approvals[49]. - The company expects stable revenue sources from the Bangka Island project, which began operations at the end of July 2024 under a 25-year fixed-price agreement with Indonesia's main power supplier[49]. Governance and Compliance - The board of directors did not recommend the payment of a final dividend for the fiscal year 2024, consistent with the previous fiscal year[5]. - The company does not plan to pay a final dividend for the fiscal year 2024, consistent with the previous fiscal year[83]. - The external auditor has confirmed the consistency of the financial statements as of December 31, 2024, with the audited consolidated financial statements for the fiscal year[87]. - The company has established an audit committee to oversee financial reporting, risk management, and internal controls[88]. - There were no purchases, sales, or redemptions of the company's listed securities during the fiscal year[90]. Employee and Operational Metrics - As of December 31, 2024, the group has 302 employees, an increase from 176 employees as of December 31, 2023[78]. - Employee costs for the fiscal year 2024 are approximately HKD 16.3 million, compared to HKD 15.5 million in the fiscal year 2023[78].

Core Operations - The Group's core operations include wastewater treatment facilities, wood pellet sales, data centre operation, and biomass power plant construction, spanning across China and Indonesia[7]. - The Group's biomass power generation initiatives align with Indonesia's strategic goals of increasing renewable energy to 23.0% by 2025 and 31.0% by 2050[9]. - The Group's focus on core operations reflects its commitment to sustainable growth in the environmental sector[7]. Economic Environment - China's economy grew by 5.0% in the first half of 2024, but the growth rate was slower than expected due to weak consumer spending and adjustments in the real estate sector[8]. - The Group is leveraging the rising demand for electricity in Indonesia, with a forecasted average annual GDP growth rate of 5.1% from 2024 to 2026[9]. - The Group's operations are closely linked to local economic trends and government policies, facing a changing environment[7]. Project Developments - The Bangka Project in Indonesia began operations in August 2024, supplying electricity to the national grid under a 25-year fixed-price agreement, ensuring stable revenue[9]. - The completion of the Bangka Project marks a significant milestone for the Group, contributing to its revenue stability[9]. - The Bangka Project commenced operations in early August 2024 and has begun supplying electricity to the national grid under a fixed price agreement for 25 years[18]. Financial Performance - The Group's overall net loss for the Period was HK$10.1 million, representing a 32.9% increase in loss compared to the Last Corresponding Period[17]. - Loss before tax was HK$4.5 million for the Period, compared to a loss of HK$3.3 million in the Last Corresponding Period[30]. - Loss attributable to owners of the Company amounted to HK$8.9 million for the Period, compared to HK$8.1 million in the Last Corresponding Period[38]. - The company reported a loss for the period of HK$10,124,000 for the six months ended June 30, 2024, compared to a loss of HK$7,626,000 in the same period of 2023[99]. - Loss before tax for the six months ended June 30, 2024, was HK$8,931,000, compared to a loss of HK$8,127,000 for the same period in 2023[149]. Revenue and Costs - Total revenue increased by HK$0.2 million or 0.5% to HK$45.7 million for the Period, primarily due to increased construction revenue from the Bangka Project[21]. - Revenue from wood pellet sales in Jambi, Indonesia decreased by approximately 46.6% due to a drop in prices[17]. - Revenue for the six months ended June 30, 2024, was HK$45,694,000, compared to HK$45,465,000 for the same period in 2023, reflecting a slight increase[100]. - Revenue from wastewater treatment facilities operation services was HK$17,757,000, down from HK$18,311,000, indicating a decline of 3.0%[129]. - Revenue from biomass power plant construction services rose to HK$9,416,000, an increase of 9.7% from HK$8,585,000[129]. Expenses and Liabilities - Administrative expenses rose by HK$5.0 million or 33.6% to HK$19.8 million, primarily due to increased legal, professional fees, and staff costs[28]. - Finance costs increased by HK$0.3 million or 5.0% to HK$6.4 million, attributed to higher weighted-average interest rates on loans for the Bangka Project[29]. - Current liabilities expected to settle within 12 months decreased from HK$31,676,000 to HK$2,648,000, a reduction of 91.7%[163]. - The Group's total receivables from the disposal of a subsidiary decreased from HK$17,243,000 to HK$10,862,000, a decline of 37.0%[156]. Cash Flow and Liquidity - As of June 30, 2024, the Group's bank balances and cash decreased by 49.4% to HK$15.2 million from HK$30.1 million as of December 31, 2023[39]. - Cash and cash equivalents dropped from HK$30,075,000 at the end of 2023 to HK$15,227,000, reflecting a liquidity challenge[105]. - Net cash used in operating activities for the six months ended June 30, 2024, was HK$8,904,000, compared to cash generated of HK$21,007,000 in the same period of 2023[115]. Shareholder Information - As of June 30, 2024, the total number of shares issued by the company is 1,107,300,000[86]. - Mr. Chan Kwan holds a beneficial interest in 508,200,000 shares, representing approximately 45.90% of the company's shareholding[84]. - The Company has not declared any interim dividend for the period, consistent with the last corresponding period where no dividend was declared[73]. Corporate Governance - The company maintains compliance with all mandatory disclosure requirements and applicable code provisions as per the Corporate Governance Code[89]. - The company has established an audit committee to oversee financial reporting, risk management, and internal controls[97]. - All directors confirmed compliance with the Model Code governing securities transactions during the reporting period[92].

Financial Performance - For the six months ended June 30, 2024, the operating revenue was HKD 45.7 million, a slight increase of 0.5% compared to HKD 45.5 million for the same period last year[1]. - The gross profit for the same period was HKD 20.7 million, representing a 6.5% increase from HKD 19.4 million year-on-year[1]. - The net loss for the six months ended June 30, 2024, was HKD 10.1 million, which is a 32.8% increase from a net loss of HKD 7.6 million in the previous year[1]. - Total revenue for the six months ended June 30, 2024, was HKD 36,563,000, a slight decrease of 1.5% compared to HKD 37,125,000 for the same period in 2023[9]. - The group experienced a pre-tax loss of HKD 4,511,000 for the six months ended June 30, 2024, compared to a pre-tax loss of HKD 3,265,000 for the same period in 2023[15]. - The pre-tax loss for the first half of 2024 was HKD (8,931,000), compared to HKD (8,127,000) in the first half of 2023, indicating a worsening of 9.9%[22]. - The company reported other comprehensive expenses of HKD 19.2 million for the period, compared to HKD 0.7 million in the previous year[3]. - The income tax expense for the first half of 2024 was HKD 5,613,000, up from HKD 4,361,000 in the same period of 2023, reflecting a rise of 28.7%[20]. Revenue Breakdown - Revenue recognized at a point in time was HKD 23,215,000, down 18.5% from HKD 28,540,000 in the previous year, while revenue recognized over time increased to HKD 13,348,000 from HKD 8,585,000[9]. - The operating revenue from wastewater treatment services was HKD 17,757,000, while biomass power plant construction services generated HKD 9,416,000, and sales of biofuels contributed HKD 5,458,000[11]. - The company reported a total of HKD 45,694,000 in operating revenue, which includes HKD 9,131,000 from interest income on receivables under service concession arrangements[11]. - The group’s revenue from external sales in Hong Kong, China, and Indonesia totaled HKD 45,694,000 for the current period, compared to HKD 45,465,000 in the previous year[15]. Assets and Liabilities - The total assets less current liabilities as of June 30, 2024, amounted to HKD 446.2 million, compared to HKD 408.8 million as of December 31, 2023[5]. - Non-current assets were valued at HKD 387.9 million as of June 30, 2024, down from HKD 402.1 million at the end of the previous year[4]. - Current liabilities totaled HKD 48.9 million as of June 30, 2024, significantly reduced from HKD 117.3 million at the end of December 2023[4]. - The group reported a decrease in current liabilities expected to be settled within 12 months, from HKD 31.676 million to HKD 2.648 million[30]. - The debt-to-equity ratio increased from 66.0% as of December 31, 2023, to 71.8% as of June 30, 2024[46]. Cash Flow and Expenditures - The company’s cash and cash equivalents decreased to HKD 15.2 million as of June 30, 2024, from HKD 30.1 million at the end of December 2023[4]. - Capital expenditures amounted to HKD 8.7 million, down from HKD 10.2 million in the same period last year, funded by financing activities[49]. - Cash and cash equivalents decreased by 49.4% to HKD 15.2 million as of June 30, 2024, from HKD 30.1 million as of December 31, 2023[43]. Costs and Expenses - Employee costs rose to HKD 8,599,000 in the first half of 2024, compared to HKD 6,989,000 in the same period of 2023, marking an increase of 23.1%[18]. - The company reported a significant increase in construction service costs to HKD 8,313,000 in the first half of 2024, compared to HKD 7,573,000 in the same period of 2023, an increase of 9.8%[18]. - Administrative expenses rose by HKD 5.0 million or 33.6% to HKD 19.8 million, mainly due to increased legal, professional fees, and employee costs[38]. - Financing costs increased by HKD 0.3 million or 5.0% to HKD 6.4 million, attributed to higher average interest rates on loans for the Bangka Island project[39]. - Interest expenses for loans increased to HKD 2,549,000 in the first half of 2024, up from HKD 1,849,000 in the same period of 2023, representing a 37.9% increase[17]. Dividends and Shareholder Information - The company did not declare any dividends for the six months ended June 30, 2024, consistent with the previous year[1]. - No interim dividend was declared for the period, consistent with the previous year[59]. - The company expressed gratitude to all shareholders and stakeholders for their continued support during the reporting period[65]. Corporate Governance and Compliance - The group has maintained high standards of corporate governance and complied with all mandatory disclosure requirements[60]. - The board of directors includes executive members and independent non-executive directors, ensuring a diverse governance structure[65]. - The existing share option scheme will expire on September 4, 2024, with no new options to be granted thereafter[55]. Future Outlook and Strategic Plans - The Bangka Island project commenced operations in early August 2024 and is expected to generate cash flow for the group in the second half of the year[33]. - The group anticipates an average GDP growth rate of 5.1% in Indonesia from 2024 to 2026, driven by significant demand for electricity resources[31]. - The group plans to continue focusing on cost control measures to improve operational efficiency and overall performance amid economic fluctuations[34]. - The group remains committed to adapting strategies based on changes in national and regional policies in China and Indonesia[34]. Legal and Arbitration Matters - The group is currently involved in arbitration regarding a dispute over a sale agreement, seeking RMB 13,633,200 for the third installment payment and approximately RMB 2.2 million for damages and legal fees[54]. - There were no significant events after the reporting period, aside from the ongoing arbitration[58].

Economic Growth and Investment - In 2023, China's GDP reached RMB 126.1 trillion, reflecting a growth of 5.2% compared to the previous year[12] - Investment in the water management industry increased by 5.2% in 2023 compared to the same period last year[12] - The investment in water conservancy construction in China reached a record high of RMB1.2 trillion in 2023[33] Water Quality Management - The proportion of national surface water assessment sections with excellent water quality (Grade I-III) reached 89.4%, an increase of 1.5% from the previous year[12] - For the seven major river basins, the proportion of sections with excellent water quality reached 91.7%, also an increase of 1.5% compared to last year[12] - The proportion of national surface water quality assessment points rated as good (Class I-III) was 89.4% in 2023, indicating an improvement in water quality management efforts[5] Company Financial Performance - The Group recorded an operating revenue of approximately HK$113.3 million for FY2023, representing a year-on-year decrease of 44.4%[23] - Gross profit for FY2023 was HK$40.7 million, reflecting a year-on-year decrease of 21.9%[23] - The net loss for FY2023 was HK$8.1 million, primarily due to the disposal of the entire interests in Haian Hengfa Wastewater Treatment Company Limited in July 2022[23] - Total revenue decreased by HK$90.4 million or 44.4% to HK$113.3 million for FY2023 compared to HK$203.7 million for FY2022, primarily due to decreased construction revenue from the Bangka Project and the disposal of Haian Hengfa[49] - Total cost of sales decreased by HK$79.0 million or 52.1% from HK$151.6 million for FY2022 to HK$72.6 million for FY2023, mainly due to reduced construction costs from the Bangka Project and the disposal of Haian Hengfa[50] Project Developments - The construction of the Bangka Project in Indonesia is in its final phase and is expected to commence operations in mid-2024[17] - The Group has entered into a power supply agreement with PT Perusahaan Listrik Negara, expected to supply electricity at a fixed price for 25 years starting from 2024[17] - The Bangka Project is in the final phase of construction and is expected to commence operation in mid-2024, with a power supply agreement to sell electricity at a fixed price for 25 years starting from 2024[39] Environmental Initiatives - The Group aims to align with national and regional policies to contribute to environmental governance efforts[16] - The Group plans to diversify its environmental protection businesses and explore new energy development opportunities in the environmental protection industry[21] - The Group aims to achieve green growth based on sustainable development while promoting green technology and environmental awareness[47] Employee and Financial Management - Employee costs, including Directors' emoluments, totaled approximately HK$15.5 million for FY2023, compared to HK$16.9 million for FY2022[97] - The Group had outstanding amounts due to related parties of HK$102.1 million, a decrease from HK$105.5 million as of December 31, 2022[80] - The Group maintained unutilized banking facilities of HK$28.7 million as of December 31, 2023, compared to HK$4.7 million in the previous year[78] Sustainability and ESG Efforts - The Group's Environmental, Social, and Governance (ESG) Report highlights its sustainable development strategy and performance during the year[111] - The Group prioritizes effective communication with stakeholders, including contractors, shareholders, investors, and local communities, to gather feedback on operations and sustainable development performance[159] - The Group's sustainability strategies focus on four pillars: Corporate Governance, Creating Green Fortune, Caring Our People, and Contributing to the Community[154] Wastewater Treatment Operations - The Group operates a wastewater treatment facility in Jiangsu Province, China, and is involved in a biofuel pellet production business in Jambi, Indonesia[115] - The wastewater treatment facility in Rugao County, Jiangsu Province, has a daily treatment capacity of 40,000 tonnes[133] - In 2023, the company treated a total of 13,100,838 tonnes of wastewater, achieving a chemical oxygen demand (COD) removal of 5,160 tonnes[129] Climate Change and Risk Management - The Group has established risk management mechanisms to identify, evaluate, manage, and monitor material ESG risks, with senior management submitting periodic reports to the Board[149] - Strategies to address climate-related risks have been incorporated, utilizing the TCFD framework to identify risks and opportunities[195] - The Group's energy consumption and emissions management strategies include optimizing energy utilization to address global warming and climate change[177]

Financial Performance - For the fiscal year ending December 31, 2023, the operating revenue was HKD 113.3 million, a decrease of 44.4% compared to HKD 203.7 million in the fiscal year 2022[5] - The gross profit for the fiscal year 2023 was HKD 40.7 million, down 21.9% from HKD 52.1 million in the fiscal year 2022[5] - The profit before tax for the fiscal year 2023 increased by 329.4% to HKD 0.7 million, compared to HKD 0.2 million (restated) in the fiscal year 2022[5] - The net loss for the fiscal year 2023 was HKD 8.1 million, an improvement from a net loss of HKD 15.2 million (restated) in the fiscal year 2022[5] - The total comprehensive loss for the year was HKD 11.0 million, compared to HKD 58.9 million in the previous year[7] - The company reported a basic loss per share of HKD 8,265,000 for 2023, compared to HKD 16,261,000 in 2022, indicating a 49% improvement in losses year-over-year[46] Dividends and Equity - The board of directors did not recommend a final dividend for the fiscal year 2023, consistent with the previous fiscal year[5] - Total equity attributable to owners of the company decreased to HKD 284,383,000 in 2023 from HKD 295,530,000 in 2022, representing a decline of approximately 3.9%[10] - Total equity decreased to HKD 278,900,000 in 2023 from HKD 289,922,000 in 2022, reflecting a decrease of about 3.8%[10] - The company has no plans to declare dividends for the years ending December 31, 2023, and December 31, 2022[45] Assets and Liabilities - Non-current assets amounted to HKD 336.6 million, an increase from HKD 298.5 million in the previous year[9] - Current assets totaled HKD 123.0 million, down from HKD 153.7 million in the previous year[9] - Current liabilities were HKD 117.3 million, a decrease from HKD 154.9 million in the previous year[9] - The net current asset value improved to HKD 6.7 million from a net current liability of HKD 1.3 million in the previous year[9] - Non-current liabilities increased significantly, with amounts payable to related parties rising to HKD 70,389,000 in 2023 from HKD 14,567,000 in 2022, marking an increase of approximately 382.5%[10] - The company reported a total non-current liability of HKD 129,874,000 in 2023, compared to HKD 72,296,000 in 2022, representing an increase of about 79.7%[10] Revenue and Sales - Revenue from wastewater treatment operations for the year ended December 31, 2023, was HKD 36,165,000, compared to HKD 52,126,000 in 2022[29] - The group reported total external sales revenue of HKD 113,279,000 for the year ended December 31, 2023, with significant contributions from China and Indonesia[32] - The group experienced a segment loss of HKD 19,830,000 in Hong Kong, while achieving a profit of HKD 20,295,000 in China for the year ended December 31, 2023[32] Costs and Expenses - Sales costs fell from HKD 151.6 million in the fiscal year 2022 to HKD 72.6 million in the fiscal year 2023, a decrease of 52.1%[63] - Administrative expenses decreased by HKD 4.1 million or 13.3% from HKD 30.5 million in FY2022 to HKD 26.5 million in FY2023[68] - Financing costs for the year ended December 31, 2023, increased to HKD 12,710,000 from HKD 9,298,000 in 2022, with interest from borrowings rising to HKD 4,244,000[40] Investments and Projects - The Bangka Island power plant project is expected to commence operations in mid-2024, with a 25-year power supply agreement signed with the Indonesian government[57] - The company plans to explore new renewable energy investment projects in other regions of Indonesia and continue its "Build-Operate-Transfer" (BOT) investment projects[57] - The company has initiated data center operations in Indonesia, providing technology and information services to its clients[58] Compliance and Governance - The company has complied with all mandatory disclosure requirements and applicable code provisions in the corporate governance code for the fiscal year 2023[91] - The external auditor has confirmed the consistency of the financial statements as of December 31, 2023, with the audited consolidated financial statements for the fiscal year[92] - The audit committee has been established to review and oversee the group's financial reporting process and risk management[93] Miscellaneous - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which did not have a significant impact on the financial position and performance[14] - The company expresses gratitude to all shareholders and stakeholders for their continued support and acknowledges the efforts of its directors and employees[97]

Economic Performance - For the first half of 2023, China's GDP was RMB 59.3 trillion, reflecting a 5.5% increase year-on-year[15]. - China's GDP for the first half of 2023 was RMB59.3 trillion, indicating a growth of 5.5% compared to the same period last year[37]. - In the first half of 2023, China's GDP reached RMB 59.3 trillion, representing a year-on-year growth of 5.5%[40]. Water Management and Environmental Policies - Investment in the water management industry in China rose by 9.6% in the first half of 2023 compared to the same period last year[15]. - The proportion of national surface water assessment sections with excellent water quality (Grade I–III) reached 87.8%, an increase of 2.1% year-on-year[15]. - The proportion of national surface water quality assessment points rated as good (Class I to III) was 87.8%, an increase of 2.1% compared to the previous year[41]. - The government has set specific guidelines for the Yangtze and Yellow Rivers, aiming to maintain water quality at "Grade II" by the end of 2025[19]. - The government has set specific targets for the Yangtze River and Yellow River, including maintaining water quality at "Grade II" by the end of 2025[38]. - The Group aims to align with national and regional policies to contribute to environmental governance efforts[19]. - The Group will continue to align with national policies to contribute to environmental governance efforts[28]. Overseas Projects and Business Development - The Group is focusing on two overseas projects: a biofuel pellet business in Jambi, Indonesia, and a power supply project in Bangka, Indonesia[20]. - The company is focusing on two key overseas projects: biofuel pellet business in Indonesia and a power supply project in Bangka Island, with a power supply agreement established for 25 years starting from 2023[24][29]. - The biofuel pellets business has been operational since 2021 and has generated revenue[20]. - Construction of the Bangka power plant project is in its final phase, with an agreement in place with PLN for power supply[20]. - The biomass power plant project in Bangka, Indonesia, is in its final construction phase and is expected to supply power to the national grid at a fixed price for 25 years starting from 2023[44][46]. - The Group is committed to enhancing its competitiveness in the international market while pursuing domestic development opportunities[20]. - The Group plans to continue exploring domestic and foreign development opportunities while adhering to national and regional policies[49][51]. - The Group is actively preparing for the development of suitable environmental protection projects overseas, focusing on two key projects[44][46]. Financial Performance - For the period, ELL Environmental recorded an operating revenue of approximately HK$45.5 million, representing a period-on-period decrease of 48.4%[27]. - The gross profit was HK$19.4 million, reflecting a period-on-period decrease of 9.3%[27]. - The net loss for the period was HK$7.6 million[27]. - Total revenue decreased by HK$42.6 million or 48.4% to HK$45.5 million for the period from HK$88.1 million for the last corresponding period[53]. - Total amount of utilised bank borrowings was HK$58.2 million, with HK$38.2 million repayable on demand and HK$20.0 million repayable within 2 to 5 years[77]. - The Group recorded a loss before tax of HK$3.3 million for the period compared to a profit before tax of HK$5.0 million for the last corresponding period[66]. - Loss attributable to owners of the Company amounted to HK$8.1 million for the period compared to HK$1.6 million for the last corresponding period[68]. - The company reported a loss for the period of HK$7,626,000 for the six months ended June 30, 2023, compared to a loss of HK$993,000 in the same period of 2022, representing a significant increase in losses[150]. - The company reported other comprehensive expenses of HK$661,000 for the period, significantly lower than HK$23,021,000 in the previous year, indicating a reduction in comprehensive losses[150]. Operational Efficiency and Cost Management - The company aims to enhance operational efficiency in its domestic businesses by strictly controlling costs and improving operational processes[26]. - The Group increased water tariffs from RMB 2.67 per tonne to RMB 3.43 per tonne, which is expected to enhance revenue and gross profit[43][45]. - The management expects further increases in revenue and gross profit due to improved project efficiency alongside the tariff increase[43][45]. Shareholder Information and Corporate Governance - As of June 30, 2023, the total number of shares issued by the company was 1,107,300,000[127]. - Mr. Chan Kwan holds 353,200,000 shares, representing approximately 31.90% of the company's shareholding[123]. - Everbest Environmental holds 337,500,000 shares, accounting for 30.48% of the total shares[132]. - Wealthy Sea Holdings Limited owns 225,000,000 shares, which is about 20.32% of the company's total shares[132]. - Ms. Wong holds a total of 373,310,000 shares, which includes her beneficial interest and interests in controlled corporations, representing approximately 33.71%[132]. - The Board resolved not to declare any interim dividend for the period, the same as the last corresponding period[109]. - The Company maintained compliance with the Corporate Governance Code throughout the reporting period[134]. Cash Flow and Liquidity - As of 30 June 2023, the carrying amount of the Group's bank balances and cash was HK$46.8 million, representing an increase of 35.2% compared to HK$34.6 million as of 31 December 2022[76]. - The company experienced a net increase in cash and cash equivalents of HK$11,454,000, compared to a decrease of HK$22,968,000 in the prior year[164]. - Cash and cash equivalents at the end of the period stood at HK$46,788,000, up from HK$40,083,000 at the end of the previous period[164]. - The company reported a cash generated from operations of HK$26,567,000, a significant improvement from the cash used in operations of HK$54,504,000 in the prior year[161]. - The Group maintained a healthy liquidity position throughout the period, with surplus cash being invested appropriately[89]. Segment Performance - Revenue for the six months ended June 30, 2023, was HK$45,465,000, a decrease of 48.3% compared to HK$88,110,000 for the same period in 2022[147]. - Revenue from wastewater treatment facility operation services was HK$18,311,000, down 31.7% from HK$26,796,000 in the previous year[182]. - Revenue from biomass power plant construction services decreased by 81.5% to HK$8,585,000 from HK$46,210,000 in 2022[182]. - Sales of biofuel increased by 58.5% to HK$10,229,000 compared to HK$6,475,000 in the prior year[182]. - The Group reported a segment loss of HK$10,962,000 from Hong Kong operations, while the PRC segment generated a profit of HK$9,673,000[189]. - The Group's financial statements were prepared based on historical cost, with certain financial instruments measured at fair value[176].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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份內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 ELL Environmental Holdings Limited 強 泰 環 保 控 股 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：1395） 截至二零二三年六月三十日止六個月 中期業績公告 財務摘要 ‧ 截至二零二三年六月三十日止六個月的營業收入為45.5百萬港元（截至 二零二二年六月三十日止六個月：88.1百萬港元），較二零二二年同期（「去 年同期」）減少48.4%。 ‧ 截至二零二三年六月三十日止六個月的毛利為19.4百萬港元（截至二零 二二年六月三十日止六個月：21.4百萬港元），較去年同期減少9.3%。 ‧ 截至二零二三年六月三十日止六個月的淨虧損為7.6百萬港元（截至二 零二二年六月三十日止六個月：淨虧損1.0百萬港元），較去年同期增加 660.0%。 ...

Economic Performance - In 2022, China's GDP was RMB 121.0 trillion, reflecting a 3.0% increase compared to the previous year[17]. - For the year ended December 31, 2022, ELL Environmental recorded a revenue of approximately HK$203.6 million, representing a year-on-year increase of 97.5%[29]. - Total revenue increased by HK$100.5 million or 97.5% to HK$203.6 million for FY2022 compared to HK$103.1 million for FY2021, primarily due to construction revenue from the Bangka Project and increased biofuel sales in Indonesia[55][59]. - Profit before tax decreased by HK$8.9 million or 38.7% to HK$14.0 million for FY2022, primarily due to increased costs and lower profit margins[66][72]. - Loss attributable to owners of the Company was HK$3.3 million for FY2022, a decrease of HK$9.4 million or 153.6% from a profit of HK$6.1 million in FY2021[68][74]. Environmental Initiatives - The proportion of national surface water assessment sections with excellent water quality (Grade I-III) reached 86.3%, an increase of 4.5% from the previous year[17]. - The company aims to leverage the organized recovery of China's economy to enhance its market position in the environmental protection industry[17]. - The government remains committed to addressing environmental issues, including wastewater management, despite economic challenges[17]. - Future strategies include the development of new technologies and products to improve service offerings in wastewater treatment[17]. - The Group plans to explore more environmental protection business opportunities and research new energy developments in the environmental protection industry[28]. Water Quality Targets - By the end of 2025, the Yangtze River's water quality is targeted to be maintained at an excellent level, with a centralized collection rate of urban domestic sewage exceeding 70%[23]. - The Yellow River's water quality in the upper and middle reaches is expected to reach Grade II by 2025, with over 90% of black and odorous water bodies in county-level cities eliminated[23]. - The Chinese government has set targets for the Yangtze River, aiming to maintain water quality at Grade II and improve urban sewage collection rates to over 70% by the end of 2025[39][42]. Financial Management - The Group aims to enhance operational efficiency by strictly controlling costs and improving operational processes to boost profitability in the wastewater treatment business[28]. - The Group has increased water tariffs from RMB 2.67 per tonne to RMB 3.43 per tonne, which is expected to enhance revenue and gross profit[48]. - Total cost of sales rose by HK$93.6 million or 189.1% from HK$49.5 million for FY2021 to HK$143.1 million for FY2022, mainly due to increased construction costs from the Bangka Project and higher biofuel costs in Indonesia[56][60]. - The Group's administrative expenses increased by HK$3.0 million or 10.9% to HK$30.5 million for FY2022, primarily due to staff costs and other operating expenses[64][70]. Operational Developments - The Group is focusing on two overseas projects: the biofuel pellet business in Jambi, Indonesia, which has been generating revenue since 2021, and a power supply project in Bangka, Indonesia, with a fixed price electricity supply agreement for 25 years starting in 2023[27]. - The Bangka Project in Indonesia is under construction and is expected to supply power to the national grid at a fixed price for 25 years starting in 2023[49]. - The biofuel pellet business in Indonesia began wood pellet production in 2021 and is generating revenue, contributing to the Group's diversification strategy[50]. - The Group is actively developing suitable environmental projects overseas, focusing on the Bangka Project, which is in the construction phase and has a 25-year power supply agreement with the Indonesian government[52]. Sustainability and ESG Practices - The Group aims to create a better, greener, and more equitable society through its Environmental, Social, and Governance (ESG) policies[164]. - The Group's commitment to sustainable operations includes protecting employees' rights and ensuring occupational health and safety[165]. - The Group has established a supplier selection process that considers environmental and social performance[160]. - The Group identified 27 ESG issues based on stakeholder communication, listing requirements, and industry sustainability trends[153]. - The Group's ESG report aims to provide an unbiased picture of its performance, avoiding selections or omissions that could mislead readers[150]. Wastewater Treatment Operations - The wastewater treatment facilities have a daily treatment capacity of 80,000 cubic meters, with a total of 13,506,632 cubic meters treated in 2022[127]. - The Group operates two wastewater treatment facilities in Jiangsu Province, China, utilizing Moving Bed Biofilm Reactor (MBBR) technology[129]. - Regular inspections are conducted to ensure the quality of treated wastewater before discharge, supporting environmental protection and sustainability[133]. - The wastewater treatment facilities adhere to local standards, ensuring treated wastewater meets the Integrated Wastewater Discharge Standard and Class 1-A or Class 1-B Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants (GB18918-2002)[133]. Emissions and Resource Management - Total GHG emissions decreased from 8,860.76 tonnes of CO2e in 2021 to 5,236.24 tonnes of CO2e in 2022, representing a reduction of approximately 41.5%[194]. - Total energy consumption decreased from 11,120.86 MWh in 2021 to 7,903.96 MWh in 2022, a reduction of approximately 29.8%[196]. - The company aims to reduce the intensity of scope 1 and 2 greenhouse gas emissions as part of its climate change strategy[190]. - The company has implemented measures to minimize noise emissions from operations, including purchasing low-noise equipment and conducting regular inspections[183].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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。 ELL Environmental Holdings Limited 強 泰 環 保 控 股 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：1395） 截至二零二二年十二月三十一日止年度 全年業績公告 財務摘要 • 二零二二財政年度的營業收入為203.6百萬港元（二零二一財政年度： 103.1百萬港元），較二零二一財政年度增加97.5%。 ‧ 二零二二財政年度的毛利為60.6百萬港元（二零二一財政年度：53.6百萬 港元），較二零二一財政年度增加12.9%。 ‧ 二零二二財政年度的除稅前溢利為14.0百萬港元（二零二一財政年度： 22.9百萬港元），較二零二一財政年度減少38.7%。 ‧ 二零二二財政年度的淨虧損為2.2百萬港元（二零二一財政年度：淨溢利 11.5百萬港元）。 ...