Financial Performance - The revenue for Zhejiang Tengy Environmental Technology Co., Ltd for the six months ended June 30, 2022, was approximately RMB 312.4 million, representing an increase of approximately 88.55% compared to the same period last year [7]. - The profit attributable to owners of the parent for the reporting period was approximately RMB 9.02 million, reflecting an increase of approximately 494.66% year-over-year [7]. - The gross profit for the reporting period was RMB 67.36 million, compared to RMB 21.39 million in the previous year, indicating significant growth [10]. - The profit from operations was RMB 28.75 million, a substantial increase from RMB 2.03 million in the corresponding period of the previous year [10]. - The company reported a profit before tax of RMB 18.48 million, compared to a loss of RMB 1.22 million in the same period last year [10]. - For the six months ended June 30, 2022, the profit attributable to ordinary equity holders was RMB 9,021,000, a significant increase from RMB 1,517,000 in the same period of 2021, representing a growth of 495% [75]. - The Group's gross profit for the Reporting Period was approximately RMB 67.36 million, reflecting an increase of approximately 214.91% from approximately RMB 21.39 million in the same period of 2021, with a gross profit margin of approximately 21.56% [169][170]. - The increase in revenue was primarily driven by the completion of several large-scale projects in the first half of 2022 [169][184]. Cash Flow and Assets - Net cash generated from operating activities was RMB 67,606,000, compared to a cash outflow of RMB 64,284,000 in the same period last year [17]. - Cash and cash equivalents at the end of the period decreased to RMB 7,815,000 from RMB 16,397,000 in the previous year [17]. - The company reported a net decrease in cash and cash equivalents of RMB 1,558,000, compared to a decrease of RMB 88,152,000 in the same period last year [17]. - Current assets totaled RMB 1,165.65 million as of June 30, 2022, compared to RMB 1,263.92 million at the end of 2021 [12]. - Net current assets were RMB 463.04 million, showing an increase from RMB 456.19 million at the end of 2021 [12]. - The bank and cash balances at the end of the reporting period were approximately RMB 6,627,000, down from RMB 9,261,000 as of December 31, 2021, a decrease of about 28% [84]. - As of June 30, 2022, total bank loans amounted to RMB 68,658,000, a decrease of 40.4% from RMB 115,158,000 as of December 31, 2021 [96]. - The Group's working capital amounted to approximately RMB 463.04 million, compared to approximately RMB 456.19 million as of December 31, 2021 [195]. Dividends and Shareholder Returns - The company did not recommend the payment of any dividend for the reporting period [7]. - No dividends were recommended for the periods ended June 30, 2022, and 2021 [71]. - The company has 135,000,000 ordinary shares authorized and issued, with a par value of RMB 1.00 each, remaining consistent since December 31, 2021 [105]. Operational Highlights - The company is engaged in the design, development, manufacturing, installation, and sale of environmental pollution prevention equipment and electronic products [21]. - The Group's revenue from environmental protection equipment products accounted for approximately 98.02% of total revenue, amounting to approximately RMB 312.43 million, representing an increase of about 88.55% compared to the same period in 2021 [189]. - The Group's major products are applied in core industries such as electricity, metallurgy, steel, building materials, and electrolytic aluminum, operating under harsh conditions [137]. - The Group's equipment is designed to operate in high temperature, high pressure, and corrosive flue gas environments, requiring continuous enhancement of product performance and technological innovation [137]. - The Group's revenue during the Reporting Period was primarily derived from electrostatic precipitators (approximately 82.20%) and bag filter precipitators (approximately 8.57%) of total revenue [132]. Research and Development - Research and development expenditure decreased to RMB 3,530,000 in the first half of 2022 from RMB 7,664,000 in 2021, a reduction of approximately 54% [75]. - The Group has 50 registered patents in the PRC, including 3 invention patents and 47 utility model patents, enhancing its competitive edge in atmospheric pollution control solutions [178][179]. - The Group's strong R&D team and advanced technology position it to capitalize on opportunities from the 14th Five-Year Work Plan and infrastructure projects [161][166]. Market and Industry Context - The environmental protection and emission reduction industry continues to be one of the important strategic industries in China with great development prospects [154]. - The State Council of the PRC issued the 14th Five-Year Comprehensive Work Plan for Energy Conservation and Emission Reduction, promoting energy conservation and emission reduction projects [150]. - By 2025, China's total emissions of chemical oxygen demand, ammonia nitrogen, nitrogen oxides, and volatile organic compounds must be reduced by 8%, 8%, more than 10%, and more than 10%, respectively, compared to 2020 [151]. - The Group has been expanding into international markets since 2005, leveraging its extensive experience in the PRC market [139]. Financial Compliance and Reporting - The financial statements have been prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with applicable disclosures [22]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards relevant to its operations effective from January 1, 2022, with no significant changes to accounting policies [29].

Financial Performance - The Group's operating income for the year increased by approximately 25.7% to approximately RMB 763.2 million[14]. - Profit before tax surged by approximately 5014.1% to approximately RMB 25.7 million compared to the previous year[14]. - Profit attributable to shareholders rose by approximately 359.2% to approximately RMB 20.6 million[14]. - Revenue for the year ended December 31, 2021, was RMB 763,165,000, representing a 25.7% increase from RMB 607,078,000 in 2020[22]. - Profit before tax increased significantly to RMB 25,724,000, compared to RMB 503,000 in the previous year, marking a growth of 5,014.1%[22]. - Earnings per share attributable to ordinary equity holders rose to RMB 0.15, a 400% increase from RMB 0.03 in 2020[22]. - The Group's revenue for the year amounted to approximately RMB763.2 million, representing an increase of approximately 25.7% from RMB607.1 million in the previous year[74]. - The profit before tax increased to approximately RMB25.2 million, while profits attributable to owners of the Company increased to approximately RMB20.6 million, representing year-on-year increases of approximately 5,014.1% and 359.2% respectively[65]. Revenue Sources - Approximately 85% of the Group's revenue came from the sales of electrostatic precipitators (approximately 60%) and SO2 and NOx emission reduction devices (approximately 25%)[15]. - Revenue from electrostatic precipitators amounted to approximately RMB 446.7 million, while revenue from SO2 and NOx reduction devices was approximately RMB 182.4 million[15]. - Revenue from sales of environmental protection equipment accounted for over 97% of total revenue, primarily from the manufacturing and installation of electrostatic precipitators[78]. - Revenue from newly installed environmental protection equipment amounted to RMB721.8 million, representing 97% of total revenue, while upgrading and modification projects contributed RMB22.3 million, or 3%[86]. Operational Efficiency - The significant increase in profit before tax indicates strong operational efficiency and market demand[14]. - The Group's cost management efforts have enhanced the competitiveness of its products and solutions, contributing to improved operating efficiency[66]. - The Group's quantitative management, environmental management, and quality management systems have been awarded multiple ISO certifications, aiding in cost estimation and project operations[66]. Research and Development - The Group's R&D capabilities are being enhanced, with a focus on acquiring appropriate projects to expand manufacturing and sales capabilities[19]. - The Group has formed a comprehensive R&D system with a center in Hangzhou, employing over 10 professional engineers in various fields[30]. - The Group plans to enhance its research and development capabilities and expand its portfolio of environmental protection equipment to address atmospheric pollution control in line with the 14th Five-Year Work Plan in China[121][125]. - The company is committed to innovation in environmental protection technologies, as evidenced by its focus on R&D under Ms. Xin Lingling's management[196]. Market Expansion - The Company aims to expand its market presence and enhance product offerings in the environmental technology sector[12]. - Future strategies may include further technological innovations and potential market expansions[12]. - The Group aims to leverage its established customer base in China and overseas markets for future expansion in the atmospheric pollution control industry[19]. - The Group believes its established customer base in China and experience in overseas markets will support future expansion in both domestic and international markets[124][126]. Financial Position - Total assets as of December 31, 2021, were RMB 1,588,341,000, reflecting a 5.8% increase from RMB 1,500,571,000 in 2020[22]. - The Group's current ratio decreased to 1.6 from 1.7 in the previous year, indicating a slight decline in liquidity[24]. - The gearing ratio increased to 13.6% from 2.4%, suggesting a rise in financial leverage[24]. - Cash and cash equivalents decreased by approximately RMB95.2 million to approximately RMB9.4 million, mainly due to net cash outflows from investing activities and operations[104]. - The Group's net current assets decreased by approximately 10.1% from approximately RMB 456.2 million to approximately RMB 507.4 million[106][110]. Leadership and Governance - The Board of Directors consists of nine members, including three executive Directors, three non-executive Directors, and three independent non-executive Directors[129]. - The company has a strong leadership team with extensive experience in environmental technology and management[145]. - The independent non-executive directors bring diverse expertise, particularly in corporate finance, mergers, and acquisitions, which supports strategic decision-making[161]. - The management team has a strong educational background, with qualifications in business administration, industrial management, and law, contributing to informed decision-making[161]. Industry Context - The 14th Five-Year Work Plan aims for an 8% reduction in chemical oxygen demand and ammonia nitrogen emissions by 2025 compared to 2020 levels, indicating strong growth prospects for the environmental protection industry[44]. - The Chinese government's policies to support energy conservation and emission reduction provide a favorable environment for the Group's business expansion[47]. - The Group anticipates increased demand for its environmental protection equipment due to ongoing infrastructure and telecommunications projects in China[49].

TENGY 浙江天潔環境科技股份有限公 司 Zhejiang Tengy Environmental Technology Co., Ltd (a joint stock company established in the People's Republic of China with limited liability) (於中華人民共和國成立之股份有限公司 ) Stock code 股份代號：1527 Interim Report 中期報告 Financial Highlights 財務摘要 Financial Highlights 財務摘要 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The Group's operating income for the year decreased by approximately 16.5% to approximately RMB607.1 million, while profit before tax decreased by approximately 98.9% to approximately RMB0.5 million[10]. - Profit attributable to shareholders was approximately RMB4.5 million, representing a decrease of approximately 86.9% compared to the previous year[10]. - Revenue for the year 2020 was RMB 607,078, a decrease of 15.4% from RMB 726,647 in 2019[24]. - Profit before tax for 2020 was RMB 503, down 98.9% from RMB 45,114 in 2019[24]. - The Group's earnings per share attributable to ordinary equity holders of the parent was RMB 0.03, a decrease of 88.0% from RMB 0.25 in 2019[24]. - The Group's gross profit for the Year was approximately RMB111.0 million, a decrease of approximately 11.4% compared to approximately RMB125.3 million in the previous year, while the gross margin increased by approximately 1.1% to approximately 18.3%[54]. - The Group's revenue decreased by approximately 16.5% to approximately RMB 607.1 million from approximately RMB 726.6 million in the previous year, primarily due to COVID-19 pandemic restrictions on production activities[69]. - The cost of sales for the Group was approximately RMB 496.1 million, representing a decrease of approximately 17.5% from approximately RMB 601.3 million in the previous year[81]. - Other income and gains increased to approximately RMB 11.4 million, representing a 0.9% increase from approximately RMB 11.3 million in the previous year[90]. - Selling and distribution expenses decreased to approximately RMB 14.0 million, down approximately RMB 6.9 million from approximately RMB 20.9 million in the previous year[92]. - The Group's administrative expenses increased by approximately 61.7% to approximately RMB102.7 million, primarily due to impairment losses for trade receivables and increased research and development expenses[96]. - The finance cost for the Year rose by 2.9% to approximately RMB7.1 million compared to approximately RMB6.9 million in the previous year[97]. - The Group's income tax credit amounted to approximately RMB4.0 million, representing a 137% increase compared to income tax expenses of approximately RMB10.8 million in the prior year[98]. Market and Industry Outlook - The environmental protection equipment market is expected to see increased demand due to stringent regulations requiring upgrades and modifications[16]. - The environmental protection industry is recognized as a key strategic emerging industry in China, with strong government support for development[41]. - The Group believes its established customer base in the PRC and exposure to overseas markets will support future expansion in both domestic and international markets[18]. - The Group's reputation as a reliable atmospheric pollution control solution provider is expected to help secure new projects from national electricity industries and other sectors[14]. - The Group is committed to seizing market opportunities to become a leading player in the atmospheric pollution control solution industry[19]. Research and Development - The Group aims to enhance its research and development capabilities and actively seek acquisition projects to expand its manufacturing and sales capabilities[17]. - The Group plans to enhance its research and development capabilities and expand its product portfolio to address environmental protection policies in China[118]. - The Group aims to enhance its research and development capabilities and expand its product portfolio, including the development of new technologies, to address atmospheric pollution control in China[124]. - The Group plans to actively seek suitable acquisition projects to expand its research, manufacturing, and sales capabilities, entering new domestic and international markets[125]. - The Group had 47 registered patents in the PRC as of December 31, 2020, including 3 invention patents and 44 utility model patents[61]. Management and Governance - The Group's management team consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[127]. - The Group's chairman, Mr. Bian, has approximately 16 years of experience in providing atmospheric pollution control solutions[127]. - The Bian Family is a controlling shareholder of the company[136]. - The company has established a strong board with diverse expertise in finance, technology, and environmental management, enhancing strategic decision-making[156]. - The Supervisory Committee consists of three members: two shareholder representatives and one employee representative, with a term of three years that is renewable upon re-election[166]. - The Group emphasizes the importance of compliance with laws and regulations in the performance of duties by its Directors and management[166]. Human Resources - The Group maintained a total of 501 full-time employees as of December 31, 2020, down from 550 in 2019[62]. - The management team has extensive experience in both technical and operational roles within the environmental protection industry[178]. - The leadership team includes professionals with significant backgrounds in engineering and environmental protection, contributing to the company's growth strategy[181]. Financial Position - Total assets as of December 31, 2020, were RMB 1,500,571, a decrease of 6.3% from RMB 1,598,680 in 2019[24]. - The Group's current ratio remained stable at 1.7, indicating consistent liquidity management[24]. - The gearing ratio improved to 2.4% from 11.5% in the previous year, reflecting better financial stability[24]. - As of December 31, 2020, trade and bills receivables decreased by approximately RMB8.9 million to approximately RMB791.6 million[99]. - Inventories decreased by approximately RMB98.5 million to approximately RMB226.6 million compared to approximately RMB325.1 million in the previous year[106]. - Cash and cash equivalents increased by approximately RMB65.2 million to approximately RMB104.5 million, mainly due to a net cash inflow of approximately RMB129.5 million from operations[106]. - The Group incurred outstanding bank loans of approximately RMB106.5 million as of December 31, 2020[106]. - The net current assets decreased by approximately 13.9% from approximately RMB589.2 million to approximately RMB507.4 million[106].

Financial Performance - The revenue for the six months ended June 30, 2020, was approximately RMB 239.06 million, representing a decrease of approximately 29.49% compared to the same period last year[3]. - The profit attributable to owners of the parent company for the Reporting Period was approximately RMB 2.44 million, a decrease of approximately 91.60% year-on-year[3]. - The Group's gross profit for the Reporting Period was RMB 42.24 million, down from RMB 62.25 million in the previous year[6]. - The Group's earnings per share for the Reporting Period were RMB 0.02, a decrease from RMB 0.22 in the previous year[6]. - The Group's gross profit decreased by approximately 32.14% to approximately RMB42.24 million, with a gross profit margin of approximately 17.67%, down by approximately 0.69% from the previous year[145]. - The unaudited profit attributable to the owners of the parent company was approximately RMB2.44 million, a decrease of approximately 91.60% from approximately RMB29.06 million in the corresponding period of 2019[177]. Revenue Breakdown - Sales of environmental protection equipment amounted to RMB 219,022,000, down 32.5% from RMB 324,463,000 in the previous year[29]. - Revenue from Mainland China was RMB 228,603,000, representing a decline of 30.2% from RMB 327,367,000 in 2019[42]. - Revenue from environmental protection equipment products accounted for approximately 91.62% of total revenue, primarily from the manufacture, installation, and sales of electrostatic precipitators[163]. Assets and Liabilities - The total current assets as of June 30, 2020, were RMB 1,370.21 million, compared to RMB 1,432.41 million as of December 31, 2019[9]. - The total current liabilities decreased to RMB 773.17 million from RMB 843.17 million at the end of 2019, resulting in net current assets of RMB 597.03 million[9]. - Trade receivables as of June 30, 2020, were RMB 730,315,000, down from RMB 780,694,000 as of December 31, 2019, indicating a decrease of 6.4%[73]. - The Group's secured bank loans totaled RMB 106,753,000 as of June 30, 2020, down from RMB 125,052,000 at the end of 2019, a reduction of 14.6%[59]. Cash Flow and Financing - The net cash used in operating activities for the Reporting Period was RMB 15.16 million, compared to a cash inflow of RMB 1.39 million in the same period last year[14]. - New short-term bank loans raised during the Reporting Period amounted to RMB 74 million, while repayments totaled RMB 91.36 million[14]. - The cash and cash equivalents at the end of the period were RMB 5.39 million, down from RMB 13.29 million at the beginning of the period[14]. Dividends and Share Capital - The board of directors did not recommend the payment of any dividend for the Reporting Period[3]. - The Group's issued and fully paid share capital remains at 135,000,000 ordinary shares as of June 30, 2020[93]. - The Directors did not propose to declare an interim dividend for the Reporting Period, consistent with the previous year[185]. Research and Development - Research and development costs for the period amounted to RMB 6,066,000, compared to no R&D costs reported in the same period of 2019[55]. - The company is enhancing its research and development capabilities to develop new technologies and expand its product portfolio, including ash conveyors, to address atmospheric pollution[199]. Market and Industry Context - The environmental protection industry in China is considered a key strategic emerging industry with significant development prospects due to numerous environmental protection policies introduced[137]. - The environmental protection policies in China have shifted towards a market-oriented approach, including environmental protection taxes and sewage permits[138]. - Almost all provinces in China have introduced relevant policies and financial support for ecological environment protection, bolstering the environmental protection industry[140]. Strategic Initiatives - The Group has been expanding into international markets since 2005, leveraging its extensive experience in the PRC market[126]. - The Group aims to maximize shareholder returns by seeking new business opportunities and enhancing its value despite uncertainties in the market[152][156]. - The Group conditionally agreed to acquire 49% equity interest in Inner Mongolia Guodian Hejie Wind Energy Co., Ltd. for a consideration of RMB 73,500,000[108]. Legal Matters - The Group is involved in ongoing litigation regarding outstanding payments totaling RMB16,925,086 from Changchun Kaixi Environmental Protection Co., Ltd.[187]. - The company filed a claim against Laoting Huayang Thermal Power Co., Ltd. for an aggregate amount of RMB32,643,886, while Laoting Huayang also claimed RMB10,296,172 from the company[195].

Financial Performance - The Group's operating income decreased by approximately 15.4% to approximately RMB 726.6 million for the year ended December 31, 2019[11]. - Profit before tax decreased by approximately 2.8% to approximately RMB 45.1 million compared to the corresponding period of last year[11]. - Profit attributable to shareholders increased by approximately 9.9% to approximately RMB 34.3 million compared to the corresponding period of last year[11]. - The financial results indicate a solid performance despite the decrease in operating income[11]. - The Group's revenue for the year was RMB 726.6 million, a decrease of 15.4% from RMB 858.8 million in 2018[20]. - Profit before tax for the year was RMB 45.1 million, down 2.8% from RMB 46.4 million in 2018[20]. - The Group's revenue for the year amounted to approximately RMB726.6 million, with a total comprehensive income of approximately RMB34.3 million[44]. - The gross profit for the year was approximately RMB125.3 million, representing a decrease of approximately 11.3% compared to RMB141.2 million in the previous year, while the gross margin increased to approximately 17.2% from 16.4%[44]. - Revenue from newly installed projects was RMB570.1 million, while upgrading/modification projects generated RMB126.2 million, together accounting for 82% and 18% of total revenue respectively[73]. - The cost of sales decreased by approximately 16.2% to RMB601.3 million from RMB717.6 million in the previous year[76]. Market Position and Strategy - The Group aims to strengthen its market position through ongoing technological advancements[11]. - Future strategies may include expanding product offerings and enhancing market reach[11]. - The Group's established customer base in the PRC and exposure to overseas markets are expected to support future expansion in both domestic and international markets[15]. - The Group plans to enhance its research and development capabilities and actively seek acquisition projects to expand its R&D, manufacturing, and sales capabilities[13]. - The Group hopes to capture growing opportunities in the atmospheric pollution control solution industry in the PRC through internal R&D and external expansion[120]. - The Group aims to expand its product portfolio, including ash conveyers, to support environmental protection efforts[118]. - The Group is exploring potential acquisitions to enhance its product offerings and market reach, with a focus on companies in the environmental technology sector[142]. Technological Innovation - The Group continues to innovate in industrial technologies to enhance its service offerings[11]. - The Group's atmospheric pollution control solutions include devices designed and manufactured in-house, with a focus on improving manufacturing processes and management systems[50]. - The Group will continue to enhance its research and development capabilities and develop new technologies to combat atmospheric pollution[118]. - The company has launched a new line of energy-efficient air purification systems, projected to increase sales by 30% in the upcoming year[142]. Operational Efficiency - Total assets increased by 6.3% to RMB 1,598.7 million from RMB 1,504.3 million in 2018[20]. - The current ratio remained stable at 1.7, indicating consistent liquidity management[20]. - The gearing ratio improved to 11.5% from 12.8% in the previous year, reflecting better financial leverage[20]. - Inventory turnover days increased to 197.3 days from 164.9 days, indicating a longer holding period for inventory[20]. - Trade receivables turnover days rose to 300.1 days from 211.4 days, suggesting a slower collection of receivables[20]. - Cash and cash equivalents increased by approximately RMB22.9 million to approximately RMB39.3 million from approximately RMB16.4 million last year[97]. - Net current assets increased by approximately 5.7% to approximately RMB589.2 million from approximately RMB557.4 million last year[103]. Leadership and Governance - The company has a strong leadership team with extensive experience in machinery and environmental protection sectors[148][152]. - The company has a structured governance framework with a Supervisory Committee that reviews financial reports and monitors the performance of senior management[172]. - The management team includes professionals with diverse backgrounds in finance, technology, and environmental planning, supporting a well-rounded strategic approach[160]. - The board's composition reflects a commitment to corporate governance and strategic oversight, essential for long-term growth[160]. - The Supervisory Committee consists of three members, including two shareholder representatives and one employee representative, with a term of three years that is renewable upon re-election[171]. Environmental Commitment - The Group remains committed to addressing environmental challenges through its solutions[11]. - The company is committed to sustainability, with plans to reduce operational carbon emissions by 40% by 2025[142]. - The company has established partnerships with local governments to implement pollution control projects, enhancing its reputation and market position[142].

Financial Performance - The revenue for the six months ended June 30, 2019, was approximately RMB 339.05 million, representing a decrease of approximately 18.95% compared to the same period last year[2]. - The profit attributable to owners of the parent for the Reporting Period was approximately RMB 29.06 million, a decrease of approximately 12.29% year-on-year[2]. - The gross profit for the period was RMB 62.25 million, down from RMB 90.37 million in the previous year, indicating a decline in profitability[4]. - The Group's profit from operations was RMB 43.10 million, compared to RMB 48.46 million in the same period of 2018[4]. - Basic and diluted earnings per share for the period were both RMB 0.22, down from RMB 0.25 in the previous year[4]. - The income tax expense for the period was RMB 11,401,000, compared to RMB 12,588,000 in the same period last year, reflecting a decrease of approximately 9%[51]. - Profit before tax for the Reporting Period decreased to approximately RMB 40.46 million, and profits attributable to owners of the Company decreased to approximately RMB 29.06 million, representing decreases of approximately 11.50% and 12.29% respectively[136]. - The unaudited gross profit margin for the Reporting Period was approximately 18.36%, down approximately 3.24% from approximately 21.60% for the corresponding period of 2018[156][158]. Revenue Breakdown - The Group's revenue for the six months ended June 30, 2019, was RMB 339,053,000, a decrease of 19.0% compared to RMB 418,346,000 in 2018[32]. - Revenue from Mainland China was RMB 327,367,000, down from RMB 415,942,000 in 2018, representing a decline of approximately 21%[43]. - The major product, electrostatic precipitator, generated revenue of RMB 197,830,000, a decrease of 29% from RMB 279,506,000 in the previous year[36]. - Other countries contributed RMB 11,686,000 in revenue, significantly up from RMB 2,404,000 in 2018, marking an increase of over 386%[43]. - Revenue from environmental protection equipment products accounted for over 96% of the total revenue, primarily related to the manufacture, installation, and sales of electrostatic precipitators[149][150]. Assets and Liabilities - Total current assets increased to RMB 1,350.74 million from RMB 1,342.40 million in 2018, reflecting a slight growth in liquidity[6]. - Net current assets rose to RMB 593.06 million, up from RMB 559.33 million in the previous year, indicating improved short-term financial health[6]. - The total equity of the Group as of June 30, 2019, was RMB 750.29 million, an increase from RMB 721.23 million in 2018[6]. - As of June 30, 2019, trade receivables amounted to RMB 664,082,000, an increase of 9.3% from RMB 606,985,000 at the end of 2018[70]. - The impairment provision for trade receivables was RMB 782,041,000 as of June 30, 2019, compared to RMB 767,650,000 at the end of 2018[70]. - Trade payables and bills payable totaled RMB 333,732,000 as of June 30, 2019, down from RMB 363,337,000 at the end of 2018[82]. Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2019, was RMB 1,388,000, a decrease from RMB 7,002,000 in 2018, representing an 80.2% reduction[11]. - Cash and cash equivalents at the end of the period were RMB 13,288,000, down from RMB 57,833,000 at the end of June 30, 2018, indicating a decline of 77.0%[11]. - New short-term bank loans raised amounted to RMB 92,440,000, slightly down from RMB 96,000,000 in 2018, a decrease of 5.9%[11]. - The repayment of bank loans was RMB 94,940,000, an increase from RMB 92,000,000 in 2018, representing a rise of 3.2%[11]. - The Group's finance costs decreased slightly to RMB 2.64 million from RMB 2.74 million in the same period last year[4]. Corporate Governance and Management - The board of directors did not recommend the payment of any dividend for the Reporting Period, reflecting a conservative approach amid declining profits[2]. - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, responsible for strategic planning and business development[179]. - The chairman and executive director, Mr. Bian Yu, has approximately 14 years of experience in providing atmospheric pollution control solutions[181]. - The Group has 36 registered patents in the PRC as of 30 June 2019, including 3 invention patents and 33 utility model patents[141]. - The Group's employee count as of 30 June 2019 was 563, down from 617 as of 31 December 2018[142]. Market Position and Strategy - The Group has been expanding into international markets since 2005, leveraging its experience in the PRC market[116]. - The Group's capital management strategy includes adjusting dividend payments, issuing new shares, and raising new debts to maintain its capital structure[90]. - The company is actively seeking appropriate acquisition projects to expand its research and development, manufacturing, and sales capabilities, as well as to access new markets[174]. - The company plans to enhance its research and development capabilities and develop new technologies, including expanding its product portfolio with new offerings like ash conveyers[176]. - The company aims to strengthen its sales efforts and capture growing opportunities in the atmospheric pollution control solution industry in China[176]. Legal Matters - In July 2019, the Group filed a claim for RMB32,643,886 against Laoting Huayang Thermal Power Co., Ltd. while facing a counterclaim of RMB10,296,172[102]. - The Group was involved in material litigation, claiming RMB16,925,086 from Changchun Kaixi Environmental Protection Co., Ltd. and RMB29,515,200 from Hesteel Co., Ltd. Chengde Branch[167][168]. - The company is involved in ongoing litigation, including a claim for RMB 16,925,086 against Changchun Kaixi Environmental Protection Co., Ltd. and a claim for RMB 29,515,200 against Hebei Steel Group Co., Ltd.[172]. - The company is also facing a counterclaim from Hebei Steel Group Co., Ltd. for RMB 30,180,000, with the cases being consolidated for trial[172].

Financial Performance - The Group's operating income for the year increased by 8.4% to approximately RMB 858.8 million[19] - Profit before tax decreased by 61.5% to approximately RMB 46.4 million compared to the previous year[19] - Profit attributable to shareholders was approximately RMB 31.2 million, representing a decrease of 62.5% year-on-year[19] - Revenue for the year ended December 31, 2018, was RMB 858,817,000, representing an increase of 8.4% from RMB 792,152,000 in 2017[37] - Total comprehensive income for the year was RMB 31,236,000, down 62.4% from RMB 83,164,000 in 2017[37] - Earnings per share attributable to ordinary equity holders decreased by 62.9% to RMB 0.23 from RMB 0.62 in the previous year[37] - The gross profit decreased by approximately 29.1% to approximately RMB 141.2 million, and the gross margin decreased by approximately 8.7% to approximately 16.4% due to a significant increase in steel prices[62] - Other income and gains decreased to approximately RMB3.7 million, down 73.6% from RMB14.1 million in the previous year, primarily due to reduced bank interest income and government grants[97][98] - Selling and distribution expenses decreased to approximately RMB20.7 million, down from RMB24.7 million in the previous year[101] - Administrative expenses increased by approximately 5.3% to approximately RMB71.6 million from approximately RMB68.0 million in the previous year, primarily due to an increase in impairment losses[103][106] - The Group's finance cost for the year amounted to approximately RMB6.3 million, representing an increase of 7.9% compared to approximately RMB5.8 million in the previous year[104][107] - The Group's income tax expense decreased by 51.6% to approximately RMB15.2 million from approximately RMB31.3 million in the previous year[109] Revenue Sources - Approximately 79% of the Group's revenue came from the sales of electrostatic precipitators (63%) and electrostatic-bag composite precipitators (16%), totaling RMB 537.2 million and RMB 132.7 million respectively[24] - Revenue from sales of environmental protection equipment accounted for over 98% of total revenue, with major sales related to electrostatic precipitators[80] - The revenue from newly installed projects was RMB779.2 million, representing 92% of total revenue, while upgrading/modification projects contributed RMB69.6 million, or 8%[87] - Revenue from sales of electrostatic precipitators decreased by approximately RMB5.4 million, while sales of electrostatic-bag composite precipitators and bag filter precipitators increased by approximately RMB43.9 million and RMB26.7 million, respectively[84] Market and Industry Trends - The PRC continues to strengthen environmental protection efforts, impacting the demand for air pollution control solutions[28] - The demand for environmental protection equipment is expected to rise due to stricter environmental protection regulations in China[32] - The Group aims to increase its market share in both the PRC and overseas markets for air pollution control solutions[35] Research and Development - The Group plans to enhance its research and development capabilities and expand its product portfolio to capture growing opportunities in air pollution control solutions[33] - The company aims to enhance its R&D capabilities, develop new technologies, and expand its product portfolio, particularly in the field of air pollution control solutions[130] Company Qualifications and Experience - The Company holds a grade A environmental engineering design qualification certificate, allowing it to tender for more projects in the future[26] - The Group possesses a competitive advantage due to extensive project experience, enhancing its reputation in the market[27] - As of December 31, 2018, the Group held 37 registered patents, including 3 invention patents and 34 utility model patents[71] - The Group completed various precipitators-related works in the metallurgy industry in 2018, laying a solid foundation for securing future orders[61] - The Group's atmospheric pollution control solutions include devices designed and manufactured in-house, enhancing cost competitiveness through improved management systems[68] Workforce and Management - The Group's workforce increased to 617 full-time employees as of December 31, 2018, up from 605 in 2017[73] - Mr. Bian Weican has approximately 26 years of experience in providing atmospheric pollution control solutions[145] - Mr. Bian Jianguang has approximately 28 years of experience in the same industry[156] - The management team has extensive experience in both operational and strategic roles within the industry[145] Financial Position - Total assets as of December 31, 2018, were RMB 1,504,288,000, a decrease of 8.3% from RMB 1,639,560,000 in 2017[37] - The gearing ratio increased to 12.8% from 9.0% in the previous year, indicating a rise in financial leverage[39] - As of December 31, 2018, trade and bills receivables increased by approximately RMB34.3 million to approximately RMB653.6 million compared to approximately RMB619.3 million in the previous year[109] - The Group's inventories decreased by approximately RMB146.6 million to approximately RMB324.3 million from approximately RMB470.9 million in the previous year[109] - Cash and cash equivalents decreased by approximately RMB31.3 million to approximately RMB16.4 million compared to approximately RMB47.7 million in the previous year[109] - The net current assets increased by approximately 5.8% to approximately RMB559.3 million from approximately RMB528.6 million in the previous year[112][117] Strategic Plans - The Group will actively seek appropriate acquisition projects to expand its research and development, manufacturing, and sales capabilities, as well as access new markets[125] - The company is actively seeking suitable acquisition projects to expand its R&D, manufacturing, and sales capabilities, as well as to enter new markets[130] - The company believes its established customer base in China and experience in overseas markets will provide a solid foundation for future market expansion[130] - The company plans to increase its brand awareness both domestically and internationally, and to explore potential overseas markets to expand its international market share[130]