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）。 ...

Economic Performance - China's GDP for the first half of 2022 was RMB 56.3 trillion, representing a 2.5% increase year-over-year[14]. - The quarterly GDP growth rate dropped from 4.8% in Q1 to 0.4% in Q2 2022 due to the impact of the Omicron variant[14]. - The national economy began to stabilize and rebound in June 2022 after effective pandemic control measures[14]. - China's GDP for the first half of 2022 was RMB56.3 trillion, an increase of 2.5% year-on-year, despite challenges from the COVID-19 pandemic[36]. Environmental Protection Initiatives - The environmental protection industry in China saw a 10.7% increase in investment for water conservation and public facilities management in the first half of 2022 compared to the same period last year[15]. - The government aims to add 20 million m³/day of wastewater treatment capacity by 2025, with a target of over 95% wastewater treatment rate in counties[18]. - The sewage resource utilization rate for cities facing water shortages is targeted to exceed 25%[18]. - The Group's focus on domestic water pollution treatment aligns with the government's "improvement in quality and efficiency" policy for wastewater treatment facilities[18]. - The Group aims to achieve a sewage treatment rate of over 95% in counties and a sewage resource utilization rate of over 25% in water-scarce cities by 2025[39]. - The overall demand for water pollution treatment in China is expected to grow, driving the development of the environmental protection industry[39]. Business Development and Strategy - The Group is actively developing two overseas projects: a biofuel pellet business in Jambi, Indonesia, and a power supply project in Bangka, Indonesia[19]. - The biofuel pellet business began production in 2021, generating revenue and diversifying the environmental protection business model[19]. - The Group will continue to optimize its business development strategy in response to national policies and market changes[18]. - The Group is actively seeking opportunities to cooperate with other power generation plants and companies to expand its environmental protection business[23]. - The Group will continue to explore potential projects related to the environmental industry chain by restructuring resources through the disposal[30]. - The Group is committed to maintaining a strong foundation in the wastewater treatment business in China while seeking global opportunities in the environmental protection industry[49]. Financial Performance - For the six months ended June 30, 2022, ELL Environmental recorded a revenue of HK$88.1 million, representing a period-on-period increase of 166.9%[29]. - The gross profit for the same period was HK$21.4 million, reflecting a period-on-period increase of 23.8%[29]. - The net loss for the period was HK$1.0 million[29]. - Total revenue increased by HK$55.1 million or 166.9% to HK$88.1 million for the Period from HK$33.0 million for the Last Corresponding Period[53]. - Total cost of sales increased by HK$51.0 million or 323.9% to HK$66.7 million for the Period from HK$15.7 million for the Last Corresponding Period[54]. - Gross profit increased by HK$4.1 million or 23.8% to HK$21.4 million for the Period from HK$17.3 million for the Last Corresponding Period[55]. - Profit before tax increased by HK$3.3 million or 199.4% to HK$5.0 million for the Period from HK$1.7 million for the Last Corresponding Period[65]. - Loss attributable to owners of the Company decreased by HK$1.7 million or 50.7% to HK$1.6 million for the Period from HK$3.3 million for the Last Corresponding Period[67]. Cash Flow and Liquidity - As of June 30, 2022, the carrying amount of the Group's bank balances and cash was HK$21.4 million, representing a decrease of 67.1% compared to HK$65.1 million as of December 31, 2021[75]. - The Group maintained a healthy liquidity position throughout the period, with surplus cash invested appropriately[85][89]. - For the six months ended June 30, 2022, the company reported a net cash used in operating activities of HK$61,706,000, compared to HK$11,115,000 in the same period of 2021, indicating a significant increase in cash outflow[155]. - Cash and cash equivalents at the end of the period decreased to HK$40,083,000 from HK$84,606,000 at the beginning of the period, reflecting a net decrease of HK$22,968,000[158]. Shareholding and Corporate Governance - As of June 30, 2022, Mr. Chan Kwan holds 353,200,000 shares, representing approximately 31.90% of the company's shareholding[116]. - As of June 30, 2022, Mr. Chau On Ta Yuen holds 225,000,000 shares, representing approximately 20.32% of the company's shareholding[116]. - Everbest Environmental Investment Limited holds 337,500,000 shares, accounting for approximately 30.48% of the company's shareholding[125]. - The total shareholding interest of Ms. Wong, including her interests in controlled corporations, amounts to 371,080,000 shares, or approximately 33.51%[125]. - The company has adopted a stock option plan effective from September 26, 2014, with no options granted, exercised, canceled, or lapsed during the period[112]. - The company maintains compliance with the Corporate Governance Code throughout the reporting period[128]. - All directors confirmed compliance with the Model Code governing securities transactions during the reporting period[129]. - The company has a high standard of corporate governance and has complied with all applicable code provisions[128]. Employment and Operational Metrics - The Group had 177 employees as of June 30, 2022, an increase from 122 employees as of December 31, 2021[95][99]. - Employee costs, including Directors' emoluments, were approximately HK$6.9 million for the period, compared to HK$6.8 million for the same period in 2021[95][99].

Economic Performance - In 2021, China's GDP reached RMB 114.4 trillion, marking an 8.1% increase compared to the previous year[18]. - The quarterly GDP growth rate dropped from 18.3% in Q1 to 4.0% in Q4 of 2021, indicating a significant slowdown in economic activity[18]. - The overall economic recovery in the first half of 2021 was marked by a 12.7% increase in GDP compared to the same period in 2020[18]. - Major economic indicators showed weak trends in the latter half of 2021, reflecting the impact of the pandemic on production and economic activities[18]. - The emergence of the Delta variant in the second half of 2021 posed challenges to economic development, further exacerbated by the Omicron variant at the end of the year[18]. Environmental Initiatives - The Chinese government is expected to strengthen policies on energy conservation, emission reduction, and environmental protection during the "14th Five-Year Plan" period[19]. - By 2025, the utilization rate of reclaimed water in water-scarce cities in China is targeted to reach 25%, indicating a growing demand for water pollution treatment[23]. - The Chinese government has emphasized ecological conservation and set higher goals for sewage treatment capabilities in the "14th Five-Year Plan"[45]. - The company aims to leverage the growing domestic environmental protection industry as part of its strategic initiatives[19]. - The company is positioned to benefit from the government's investment in environmental infrastructure and services[19]. Financial Performance - ELL Environmental recorded a revenue of HK$103.1 million, representing a year-on-year increase of 74.8%[34]. - The gross profit for the year was HK$53.6 million, reflecting an 81.1% year-on-year increase[34]. - Net profit reached HK$11.5 million, driven by increased revenue from wastewater treatment and construction projects[34]. - Total revenue increased by HK$44.1 million or 74.8% to HK$103.1 million for the year compared to HK$59.0 million for FY2020, driven by increased water tariffs and construction revenue from the Bangka Project[59][61]. - Profit before tax rose by HK$17.8 million or 349.4% from HK$5.1 million in FY2020 to HK$22.9 million in FY2021[74]. Operational Developments - The Bangka Plant project in Indonesia is expected to commence operation in 2023, enhancing the Group's power generation capabilities[27]. - The biofuel pellet business in Indonesia is expected to officially commence operation in 2022, generating revenue in mid to late 2022[54][56]. - The Group's wastewater treatment business is expected to maintain satisfactory growth due to strong demand in mainland China[35]. - The company plans to expand the scale of its water facilities and enhance daily capacity to improve financial performance[48]. - The Group aims to improve capital efficiency by controlling capital expenditure and optimizing operational processes[29]. Sustainability and ESG Practices - The company is committed to integrating sustainability practices into daily operations and aligning sustainability goals with strategic direction[155]. - The dedicated ESG team oversees the implementation of sustainability strategies and monitors performance against corporate goals[154]. - A materiality assessment is conducted annually with the help of an independent sustainability consultant to identify significant environmental, social, and governance issues for the Group[166]. - The Group has established a dedicated team to manage ESG issues across its business sectors, focusing on the implementation of sustainable development strategies and monitoring performance indicators[157]. - The Group's sustainability performance indicators are disclosed quantitatively where appropriate, allowing for evaluation of the effectiveness of ESG policies[161]. Compliance and Risk Management - The company reported no material non-compliance with relevant laws and regulations during the reporting period, ensuring adherence to environmental performance standards[185]. - The Group has implemented a risk management and internal control mechanism to monitor ESG-related risks and regularly reviews these mechanisms[156]. - The Group engages with key stakeholders, including contractors, shareholders, government authorities, and NGOs, to gather feedback on its operations and sustainable development performance[162]. - The Group's ESG report is prepared based on principles of materiality, balance, consistency, and quantitative measures to ensure meaningful comparisons over time[161]. - The Group identified 27 ESG issues of concern based on stakeholder communication, listing requirements, and industry sustainability trends[168]. Community Engagement and Employee Welfare - ELL Environmental encourages employee participation in voluntary activities, contributing positively to the community[184]. - The company prioritizes occupational health and safety, aiming to build a harmonious and safe working environment for its employees[183]. - Employees are required to turn off electrical appliances when leaving to further reduce energy usage[192]. - The company promotes the concept of "green office" by encouraging electronic communication and double-sided printing to minimize paper usage[194]. - The Group has adopted a share option scheme to provide incentives and rewards to eligible directors and employees[107].

Economic Performance - For the first half of 2021, China's GDP was RMB 53.2 trillion, reflecting a 12.7% increase compared to the same period last year[18]. - As of the end of the first half of 2021, China's GDP reached RMB53.2 trillion, representing a 12.7% increase compared to the same period last year[43]. Water Quality and Environmental Initiatives - The proportion of national surface water assessment sections with excellent water quality (Grade I-III) was 81.8%, an increase of 1.0% year-on-year[18]. - The Ministry of Ecology and Environment reported an increase in excellent water quality sections in major river basins, reaching 83.5%[18]. - The proportion of national surface water assessment sections with excellent water quality (Grade I-III) reached 81.8%, an increase of 1.0% over the same period last year[47]. - The Chinese government has implemented effective measures for air, water, and soil pollution control, yielding positive outcomes[18]. - The Group is committed to contributing to environmental protection through alignment with national water pollution treatment efforts[23]. - The Guidance on Promoting Wastewater Resource Utilisation was published by ten departments, emphasizing systematic development in sewage resource utilization[23]. - The Group aims to achieve a reclaimed water utilization rate of 25% or above in cities facing water shortages by 2025, and 35% in the Beijing-Tianjin-Hebei region[23]. - The Group aims to achieve a centralized collection rate of urban domestic sewage of over 70% and a complete urban domestic sewage collection pipe network by 2035[49]. - The Chinese government has set ambitious goals for wastewater treatment and resource utilization, including a target of over 95% wastewater treatment rate in county-level cities by 2025[41]. Financial Performance - For the six months ended June 30, 2021, ELL Environmental recorded revenue of approximately HK$33.0 million, representing a year-on-year increase of 25.2%[30]. - The gross profit for the same period was HK$17.3 million, reflecting a year-on-year increase of 25.8%[30]. - The net loss for the period was HK$1.9 million[30]. - Total revenue increased by HK$6.6 million or 25.2% to HK$33.0 million for the Period from HK$26.4 million for the Last Corresponding Period[59]. - Revenue excluding imputed interest income increased by HK$6.3 million or 32.8% to HK$25.5 million for the Period from HK$19.2 million for the Last Corresponding Period[61]. - Gross profit increased by HK$3.5 million or 25.8% to HK$17.3 million for the Period from HK$13.7 million for the Last Corresponding Period[65]. - Gross profit margin slightly increased to 52.3% for the Period from 52.1% for the Last Corresponding Period[65]. - Profit before tax increased by HK$1.4 million or 482.5% to HK$1.7 million for the Period from HK$0.3 million for the Last Corresponding Period[76]. - Loss attributable to owners of the Company decreased by HK$1.6 million or 32.3% to HK$3.3 million for the Period from HK$4.8 million for the Last Corresponding Period[78]. - Total cost of sales increased by HK$3.1 million or 24.5% to HK$15.7 million for the Period from HK$12.6 million for the Last Corresponding Period[64]. Operational Developments - The Group's wastewater treatment business has seen a water tariff increase from RMB2.67 per tonne to RMB3.43 per tonne effective from April 2021, expected to enhance revenue and gross profit[29]. - The Group is focusing on two overseas projects: biofuel pellet business in Jambi, Indonesia, and a power supply project in Bangka, Indonesia, with operations expected to commence after the completion of the power supply plant in late 2021[24]. - The Group has purchased a turbine generator and a boiler to improve the efficiency of the power supply plant, enhancing value in its power generation business[24]. - The Group plans to explore cooperation opportunities with other power generation plants to diversify its environmental protection business[28]. - The Group anticipates a satisfactory growth in its mainland China business due to the ongoing strong demand for wastewater treatment[35]. - The management will continue to align with national policies to ensure sustainable growth in the Group's domestic operations[35]. - The Group plans to actively coordinate with national policies and seize development opportunities both domestically and internationally[58]. - The Group is committed to sustainable development and aims to contribute to environmental protection while expanding its wastewater treatment market presence[58]. Corporate Governance and Compliance - The company has complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period[149]. - All directors confirmed compliance with the Model Code governing securities transactions during the reporting period[150]. - The company maintains a high standard of corporate governance as per the principles set out in the Corporate Governance Code[149]. - The company has established an audit committee to enhance financial reporting and internal controls, comprising three independent non-executive directors[159]. Shareholder Information - As of June 30, 2021, Mr. Chau held 225,000,000 shares, representing approximately 20.32% of the company's shareholding[134]. - Mr. Chan held 353,200,000 shares, accounting for approximately 31.90% of the company's shareholding[134]. - Everbest Environmental held 337,500,000 shares, which is about 30.48% of the total shares[145]. - Wealthy Sea Holdings Limited owned 225,000,000 shares, equivalent to 20.32% of the company's shareholding[145]. - Morgan Top Trading Co., Ltd. had a beneficial interest in 143,300,000 shares, representing 12.94% of the company's shareholding[145]. - Ms. Wong held 18,915,000 shares, contributing to a total of 365,080,000 shares or approximately 32.97% when including interests in controlled corporations[145]. - As of June 30, 2021, no other directors or the chief executive had interests or short positions in shares or debentures of the company or its associated corporations[137]. Cash Flow and Liquidity - As of June 30, 2021, the company's bank balances and cash amounted to HK$84.6 million, an increase of 65.7% from HK$51.1 million as of December 31, 2020[84]. - The company maintained a healthy liquidity position throughout the period, with no unutilized banking facilities[98]. - The net cash flows used in operating activities amounted to HK$11,115,000, an increase from HK$7,446,000 in the previous year[182]. - The company generated net cash flows from investing activities of HK$10,955,000, compared to a cash outflow of HK$4,272,000 in the prior year[182]. - The net cash flows from financing activities were HK$28,978,000, a significant increase from a cash outflow of HK$10,934,000 in the same period last year[182]. - Cash and cash equivalents at the end of the period increased to HK$84,606,000, up from HK$39,894,000 at the end of June 2020[185]. Financial Position - As of June 30, 2021, total assets less current liabilities amounted to HK$435,023,000, an increase from HK$431,720,000 as of December 31, 2020[171]. - Current assets increased to HK$135,533,000 from HK$98,682,000, reflecting a growth of approximately 37.3%[171]. - The company reported a net current asset value of HK$59,593,000, up from HK$53,021,000, indicating a rise of about 12.3%[171]. - Total equity as of June 30, 2021, was HK$378,699,000, compared to HK$375,164,000 at the end of 2020, showing a slight increase of 0.7%[173]. - The company’s borrowings decreased significantly from HK$20,240,000 in December 2020 to HK$35,107,000 by June 2021[173]. - Receivables under service concession arrangements rose to HK$28,502,000, up 30.2% from HK$21,883,000 in the previous period[171]. - Inventories increased to HK$1,109,000 from HK$964,000, reflecting a growth of 15.1%[171]. Dividend Information - The Board declared an interim dividend of HK$0.5 cents per ordinary share for the period, compared to no dividend for the six months ended June 30, 2020[120]. - The interim dividend will be payable on or around September 29, 2021, to shareholders registered by September 15, 2021[124]. - The company paid dividends of HK$798,000 during the period, a decrease from HK$7,186,000 in the previous year[182].