Financial Performance - The Group's operating income for the year ended 31 December 2023 increased by approximately 31.3% to approximately RMB 620.1 million[11]. - Profit before tax decreased by approximately 19.4% to approximately RMB 61.1 million compared to the previous year[11]. - Profit attributable to shareholders was approximately RMB 42.7 million, representing a decrease of approximately 20.3% year-on-year[11]. - Revenue for the year ended December 31, 2023, was RMB 620,134,000, representing a 31.3% increase from RMB 472,471,000 in 2022[25]. - Profit before tax decreased by 19.4% to RMB 61,051,000 in 2023 from RMB 75,770,000 in 2022[25]. - The Group's gross profit for the year amounted to approximately RMB 140.8 million, representing a significant increase of approximately 108.8% compared to RMB 67.4 million in the previous year, with a gross margin of 22.7%[86]. - Other income and gains decreased significantly by approximately 82.6% to approximately RMB 21.0 million from approximately RMB 120.8 million in the previous year, primarily due to no land disposals during the year[87]. Revenue Sources - Approximately 100% of the Group's revenue came from environmental protection equipment sales (approximately 98%) and materials sales (approximately 2%), totaling approximately RMB 607.348 million and RMB 12.781 million respectively[12]. - The Group's revenue from environmental protection equipment sales accounted for approximately 98% of total revenue, highlighting its focus on this segment[12]. - Revenue from sales of environmental protection equipment accounted for approximately 98% of total revenue, with major sales related to electrostatic precipitators[72]. - The revenue derived from sales of electrostatic precipitators increased by approximately RMB 109.7 million, while revenue from SO2 and NOx emission reduction devices increased by approximately RMB 84.1 million[77]. Market and Industry Outlook - The demand for precipitators is expected to rise due to increasingly stringent environmental protection inspections requiring upgrades and modifications[18]. - The National Development and Reform Commission's 2024 Guidance Catalogue encourages technologies that promote green and low-carbon transformation, benefiting the environmental protection industry[41]. - The output value of China's environmental protection equipment manufacturing industry increased by 2% year-on-year in 2022, reaching RMB960 billion, and is expected to rise to RMB1.3 trillion by 2025[42][44]. - The comprehensive policies and regulations in China's environmental protection industry are becoming increasingly improved, supporting the strategic direction of carbon reduction and green transformation[46][49]. - The Group anticipates that the Chinese government will actively promote energy conservation and environmental governance, providing more policies and financial support for ecological protection[53]. 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[19]. - The Group's R&D center in Hangzhou employs over 10 professional engineers, focusing on environmental engineering and related fields[29]. - The Group plans to invest more resources in the R&D and production of energy-efficient environmental protection equipment to meet market demand for green technology[125]. - The Group is committed to improving production processes and management systems, achieving multiple ISO certifications for its quality and environmental management systems[63]. Management and Governance - The Board of Directors consists of nine members, including three executive Directors, three non-executive Directors, and three independent non-executive Directors[136]. - The Company has a strong management team with diverse backgrounds in finance, operations, and environmental technology, enhancing its strategic capabilities[161]. - The management team is well-qualified, with several members holding advanced degrees and professional certifications in their respective fields[176]. - The board of directors includes independent members with extensive experience in finance and corporate governance, ensuring compliance and strategic guidance[170]. Strategic Initiatives - The Group is committed to seizing market opportunities and aims to become a leading player in the atmospheric pollution control solution industry[20]. - The Group aims to expand its domestic market share by leveraging its design and manufacturing experience, advanced technology, and strong R&D team[54][57]. - The Group intends to actively seek acquisition projects in various environmental protection and emission reduction industries, as well as new materials and new energy fields[131]. - The Company focuses on the provision of atmospheric pollution control solutions, with Mr. Bian responsible for overall strategies and business development[138]. Financial Position - Total assets increased by 17% to RMB 1,796,856,000 in 2023 from RMB 1,535,726,000 in 2022[25]. - Total liabilities rose by 32.1% to RMB 926,678,000 in 2023 compared to RMB 701,505,000 in 2022[25]. - The current ratio decreased to 1.6 in 2023 from 1.9 in 2022, indicating a decline in short-term financial health[25]. - Cash and cash equivalents increased by approximately RMB 212.1 million to approximately RMB 453.1 million compared to RMB 241.0 million in the previous year[101]. - The Group's net current assets decreased by approximately 8.0% from approximately RMB 637.9 million to approximately RMB 586.6 million[105]. Employee and Operational Changes - The Group maintained a total of 422 full-time employees as of December 31, 2023, down from 446 in 2022[66]. - Selling and distribution expenses increased by approximately RMB 6.3 million to approximately RMB 22.1 million, mainly due to salaries and travel expenses[88]. - Administrative expenses decreased by approximately 15.7% to approximately RMB 53.3 million compared to RMB 63.3 million in the previous year[93]. Acquisitions and Investments - The Company increased its equity interest in Zhejiang Tianjie Magnetic Materials Co., Ltd. from 40% to 45% through an acquisition for a consideration of RMB 6,421,165[108]. - The group acquired land use rights for approximately RMB 47 million and property, plant, and equipment for approximately RMB 40.6 million during the year[110]. - The group acquired an associate's interest for approximately RMB 6.5 million and investment properties for an additional cost of approximately RMB 6.0 million during the year[121]. Dividend Policy - The board does not recommend the payment of a final dividend for the year, compared to RMB 0.05 per share in 2022[124].

Financial Performance - Zhejiang Tengy Environmental Technology Co., Ltd reported revenue of approximately RMB 620.1 million for the year ended December 31, 2023, representing an increase of about 31.3% compared to the previous year[3]. - The profit attributable to the owners of the company for the same period was approximately RMB 42.7 million, a decrease of about 20.3% year-on-year[3]. - Gross profit for the year was RMB 140.8 million, compared to RMB 67.4 million in the previous year, indicating a significant improvement in profitability[4]. - Operating profit decreased to RMB 81.8 million from RMB 105.3 million year-on-year[4]. - The company reported a net profit attributable to ordinary equity holders of RMB 42,707,000 for 2023, down 20.4% from RMB 53,605,000 in 2022[36]. - The company's pre-tax profit decreased to approximately RMB 61.1 million, a decline of about 19.4% year-on-year, while profit attributable to owners decreased by about 20.3% to approximately RMB 42.7 million[72]. - Other income and gains significantly decreased by approximately 82.6% to about RMB 21.0 million, down from approximately RMB 120.8 million in the previous year, primarily due to the absence of property sales[84]. Revenue Sources - Revenue from environmental equipment sales was RMB 607,348,000, up 37.2% from RMB 442,739,000 in the previous year[24]. - Revenue from mainland China accounted for RMB 607,159,000, representing a significant increase of 28.8% compared to RMB 471,341,000 in 2022[19]. - Revenue from the sale of environmental protection equipment accounted for approximately 98% of total revenue, with significant contributions from electrostatic precipitators and desulfurization and denitrification devices[76]. - The company's revenue primarily comes from the sale of environmental equipment, materials, and services, with a focus on customized air pollution control solutions[60]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 1,513.3 million, compared to RMB 1,339.4 million in the previous year[5]. - Current liabilities increased to RMB 926.7 million from RMB 701.5 million year-on-year, reflecting a rise in operational costs[7]. - The company’s total equity rose to RMB 870.2 million from RMB 834.2 million, showing a solid financial position[7]. - Cash and cash equivalents increased significantly to RMB 453.1 million from RMB 241.0 million, indicating improved liquidity[5]. - Trade receivables (net of provisions) decreased from RMB 604,108,000 in 2022 to RMB 504,872,000 in 2023, a decline of about 16.4%[41]. - Trade payables increased slightly from RMB 183,498,000 in 2022 to RMB 185,131,000 in 2023, an increase of approximately 0.9%[49]. - The net value of current assets decreased by about 8.0% to approximately RMB 586.6 million from approximately RMB 637.9 million in the previous year[95]. Research and Development - The company has established a comprehensive R&D system, employing over 10 professional engineers in its Hangzhou R&D center, focusing on environmental engineering, civil engineering, and electromechanical engineering[60]. - The company aims to invest more resources in R&D and production of energy-efficient environmental protection equipment to meet market demand for green technology[107]. - The company is recognized as a Shaoxing municipal-level R&D and technology center, enhancing its competitive edge in the industry[60]. Market Position and Strategy - The company plans to continue focusing on the design, development, and manufacturing of environmental protection equipment and electronic products, aiming for market expansion[12]. - The company aims to actively seek suitable acquisition projects in various environmental reduction industries, new materials, and new energy sectors[107]. - The company believes its established customer base in China and years of overseas market experience will support future expansion in domestic and international markets[109]. - The environmental industry in China is experiencing rapid growth, supported by government policies aimed at carbon reduction and ecological civilization construction[66]. - The company is positioned to benefit from the "14th Five-Year Plan" which emphasizes energy conservation and emission reduction projects, aligning with its expertise[67]. Operational Efficiency - The company is focused on improving production processes and management systems to enhance operational efficiency and reduce energy consumption[72]. - Sales and distribution expenses increased from approximately RMB 15.8 million in the previous year to approximately RMB 22.1 million, an increase of about RMB 6.3 million[85]. - Administrative expenses decreased by approximately 15.7% from about RMB 63.3 million in the previous year to approximately RMB 53.3 million, mainly due to a reduction in trade receivables impairment losses and depreciation expenses[87]. - Financing costs rose by approximately 29.0% from about RMB 7.7 million in the previous year to approximately RMB 9.9 million[88]. Corporate Governance - The audited financial statements for the year were approved by the board on March 28, 2024[110]. - There were no changes in accounting policies or methods during the year[111]. - No significant accounting errors were corrected during the year[112]. - The scope of consolidation for the financial statements remained unchanged[113]. - The audit committee reviewed the accounting principles and confirmed the audited consolidated financial statements for the year[124]. - No significant events affecting the company occurred after the end of the financial year[125].

Financial Performance - The revenue for Zhejiang Tengy Environmental Technology Co., Ltd for the six months ended 30 June 2023 was approximately RMB 288.71 million, representing a decrease of approximately 7.59% compared to the same period last year [2]. - The profit attributable to owners of the parent for the Reporting Period was approximately RMB 6.87 million, a decrease of approximately 23.84% year-on-year [2]. - The gross profit for the Reporting Period was RMB 61.81 million, down from RMB 67.36 million in the previous year, indicating a decline of approximately 8.67% [3]. - Revenue from external customers decreased to RMB 288,706,000 in 2023 from RMB 312,428,000 in 2022, a decline of approximately 7.6% [36]. - The basic earnings per share for the Reporting Period was RMB 0.05, down from RMB 0.07 in the previous year [3]. - The unaudited profit attributable to the owners of the parent was approximately RMB 6.87 million, a decrease of approximately 23.84% from approximately RMB 9.02 million in the corresponding period of 2022 [149]. - The cost of sales for the Group was approximately RMB 226.89 million, a decrease of approximately 7.42% from approximately RMB 245.07 million in the corresponding period of 2022 [147]. - The unaudited gross profit margin for the Reporting Period was approximately 21.41%, down from approximately 21.56% in the same period of 2022 [148]. Expenses and Income - Other income increased to RMB 5.90 million from RMB 3.40 million, reflecting an increase of approximately 73.83% [3]. - Distribution and selling expenses rose to RMB 7.27 million, up from RMB 3.90 million, marking an increase of approximately 86.41% [3]. - Net cash generated from operating activities decreased to RMB 23,715,000 in 2023 from RMB 67,606,000 in 2022, representing a decline of approximately 65.0% [8]. - The Group's income tax expense for the period was RMB 5,250,000, down from RMB 9,460,000 in 2022, a decrease of approximately 44% [42]. - Interest on bank loans increased to RMB 3,779,000 in 2023 from RMB 2,829,000 in 2022, representing an increase of about 33.5% [39]. Assets and Liabilities - The total assets less current liabilities as of 30 June 2023 were RMB 841.09 million, compared to RMB 834.22 million at the end of 2022, showing a slight increase of approximately 0.10% [5]. - The net current assets as of 30 June 2023 were RMB 650.21 million, an increase from RMB 637.92 million at the end of 2022, representing a growth of approximately 1.99% [5]. - The Group's trade receivables as of June 30, 2023, were RMB 731,314,000, slightly down from RMB 740,524,000 as of December 31, 2022, a decrease of approximately 1.4% [55]. - The impairment provision for trade receivables increased to RMB 154,884,000 in 2023 from RMB 139,408,000 in 2022, reflecting a rise of about 11.1% [55]. - Trade payables as of June 30, 2023, were RMB 160,857,000, down 12.3% from RMB 183,498,000 as of December 31, 2022 [67]. - The total bank loans increased to RMB 85,000,000 as of June 30, 2023, compared to RMB 55,000,000 as of December 31, 2022 [73]. Market and Sales - Revenue from sales of environmental protection equipment was RMB 284,470,000 in 2023, down from RMB 306,237,000 in 2022, indicating a decrease of about 7.1% [24]. - The geographical market of Mainland China accounted for RMB 280,633,000 in sales in 2023, down from RMB 305,389,000 in 2022, a decrease of about 8.1% [27]. - The major product, electrostatic precipitators, generated sales of RMB 225,235,000 in 2023, down from RMB 256,820,000 in 2022, a decrease of about 12.3% [27]. - Revenue from the sale of materials decreased to RMB 4,236,000 in 2023 from RMB 5,988,000 in 2022, reflecting a decline of approximately 29.3% [24]. - Revenue from environmental protection equipment products accounted for approximately 98.53% of total revenue [141]. Research and Development - Research and development expenditure rose to RMB 6,766,000 in 2023, up from RMB 3,530,000 in 2022, indicating an increase of approximately 92% [46]. - The Group plans to enhance its R&D capabilities and expand its portfolio of environmental protection equipment to address atmospheric pollution and achieve carbon neutrality [174]. Strategic Initiatives - The Company conditionally agreed to acquire 95% equity interest in Zhejiang Tianjie New Energy Co., Ltd. from Tengy Group Limited for RMB 51.2 million, subject to downward adjustment [173]. - The Company successfully acquired land use rights for approximately 52,571.90 sq. m. at a total consideration of approximately RMB 47 million, intended for the development of a plant for environmental pollution prevention equipment [92]. - The Group aims to actively seek acquisition projects in various environmental protection and emission reduction industries, as well as new materials and new energy fields [175]. - The Group intends to leverage opportunities from the 14th Five-Year Work Plan in China to consolidate its existing business and promote diversification, thereby expanding its market share [176]. Corporate Governance - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors [185]. - The board's responsibilities include determining the business and investment plans of the Group and formulating annual budgets [185]. Future Outlook - Future outlook indicates a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion strategies [200]. - The company plans to enter two new international markets by the end of 2024, aiming to increase global market share [200]. - A strategic acquisition of a local competitor is expected to be finalized in Q1 2024, which will enhance operational capabilities [200]. - New product lines are anticipated to contribute an additional 10% to overall revenue in the upcoming year [200]. - The company has set a target to reduce operational costs by 15% through efficiency improvements in the next 12 months [200].

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倚賴該等內容而引致的任何損失承擔任何責任。 浙江天潔環境科技股份有限公司 Zhejiang Tengy Environmental Technology Co., Ltd （於中華人民共和國成立之股份有限公司） 1527 （股份代號： ） 截至二零二三年六月三十日止六個月之中期業績公告 財務摘要 • 浙江天潔環境科技股份有限公司（「本公司」）及其附屬公司（統稱「本集團」）於 288.71 截至二零二三年六月三十日止六個月（「報告期」）之收益為約人民幣 百 7.59% 萬元，與去年同期相比減少約 。 • 6.87 本集團於報告期內之母公司擁有人應佔溢利為約人民幣 百萬元，與去年 23.84% 同期相比減少約 。 • 本公司董事（「董事」）會（「董事會」）不建議就報告期派付任何股息。 中期業績 ...

Financial Performance - The Group's operating income for the year ended December 31, 2022, decreased by approximately 38.1% to approximately RMB 472.5 million[12]. - Profit before tax increased by approximately 194.6% to approximately RMB 75.8 million compared to the previous year[12]. - Profit attributable to shareholders rose by approximately 160.1% to approximately RMB 53.6 million[12]. - Revenue for the year ended December 31, 2022, was RMB 472,471,000, a decrease of 38.1% compared to RMB 763,165,000 in 2021[27]. - Profit before tax increased to RMB 75,770,000, representing a 194.6% increase from RMB 25,724,000 in the previous year[27]. - The Group's gross profit decreased by approximately 39.2% to approximately RMB 67.4 million, compared to approximately RMB 111.0 million in the previous year, resulting in a gross margin of approximately 14.3%[57]. - Other income and gains increased significantly to approximately RMB 120.8 million, representing a 780.8% increase from approximately RMB 13.7 million in the previous year, mainly from the disposal of property, plant, and equipment[89]. - Selling and distribution expenses rose to approximately RMB 15.8 million, an increase of approximately RMB 1.7 million compared to RMB 14.1 million in the previous year[90]. - Administrative expenses decreased by approximately 15.2% to approximately RMB 63.3 million from approximately RMB 74.6 million in the previous year[95]. - Income tax expenses increased to approximately RMB 22.2 million from approximately RMB 5.1 million in the previous year[96]. Revenue Sources - Approximately 99% of the Group's revenue came from environmental protection equipment sales (approximately 93%) and materials sales (approximately 6%), totaling approximately RMB 442.739 million and RMB 29.549 million respectively[13]. - Sales of environmental protection equipment accounted for over 93% of total revenue, with the majority related to the manufacturing, installation, and sales of electrostatic precipitators[72][73]. - Revenue from sales of electrostatic precipitators decreased by approximately RMB 120.2 million, while revenue from sales of SO2 and NOx emission reduction devices decreased by approximately RMB 171.3 million; however, revenue from bag filter precipitators increased by approximately RMB 35.1 million[76][77]. - The Group's revenue from newly installed projects was approximately RMB 426.7 million, accounting for 96% of total revenue from environmental protection equipment sales[80]. Assets and Liabilities - Total assets decreased by 3.3% to RMB 1,535,726,000 from RMB 1,588,341,000 in 2021[27]. - Net current assets increased by 39.8% to RMB 637,924,000 compared to RMB 456,193,000 in 2021[27]. - The current ratio improved to 1.9 from 1.6 in the previous year[29]. - The gearing ratio shifted to (22.3)% from 13.6% in 2021, indicating a reduction in financial leverage[29]. - Trade and bills receivables decreased by approximately RMB 95.2 million to approximately RMB 700.9 million compared to approximately RMB 796.1 million in the previous year[97]. - Cash and cash equivalents increased significantly to approximately RMB 241.0 million from approximately RMB 9.4 million in the previous year, an increase of approximately RMB 231.6 million[103]. - The Group did not incur any capital expenditures for the purchase of property, plant, and equipment during the year[108]. - As of December 31, 2022, the Group had no material contingent liabilities or guarantees[118]. 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[20]. - The Group has established a comprehensive R&D system with over 10 professional engineers and has become a municipal R&D center in Shaoxing[31]. - The Group plans to enhance its R&D capabilities and develop new technologies for environmental protection equipment, aligning with national green development goals[136]. - The Group aims to leverage internal R&D and external expansion to seize opportunities from the "20th National Congress Report" and the "14th Five-Year Plan," thereby consolidating existing businesses and promoting diversification[141]. Market Opportunities - The Group believes that increasing environmental protection regulations will drive demand for precipitators[19]. - The Chinese government is expected to promote energy conservation and emission reduction, providing more policies and financial support for ecological environment protection, which presents business opportunities for the Group[51]. - By 2025, China's emissions of key pollutants are targeted to be reduced by 8% for chemical oxygen demand and ammonia nitrogen, and by more than 10% for nitrogen oxides and volatile organic compounds compared to 2020 levels[49]. - The Group aims to expand its domestic market share by leveraging its design and manufacturing experience and advanced technology in response to the strategic directions outlined in the 20th National Congress Report and the 14th Five-Year Work Plan[51]. - The established customer base in the PRC and experience in overseas markets are expected to support future expansion efforts[24]. Management and Governance - The management team and employees were acknowledged for their efforts, and shareholders were thanked for their continued support[22]. - The Group's workforce consisted of 446 full-time employees as of December 31, 2022, down from 484 in 2021, with remuneration based on performance and contributions[65]. - The company has a strong management team with diverse backgrounds in finance, engineering, and environmental technology[184]. - The board of directors includes independent non-executive directors with extensive experience in corporate governance and compliance[189]. - The management team is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[185]. Shareholder Information - The Board has recommended a final dividend of RMB 0.05 per share for the year, compared to no dividend in 2021, pending shareholder approval[119].

香港交易及結算所有限公司及香港聯合交易所有限公司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倚賴該等內容而引致的任何損失承擔任何責任。 浙江天潔環境科技股份有限公司 Zhejiang Tengy Environmental Technology Co., Ltd （於中華人民共和國成立之股份有限公司） 1527 （股份代號： ） 截至二零二二年十二月三十一日止年度的 經審核年度業績公告 摘要 • 浙江天潔環境科技股份有限公司（「本公司」）及其附屬公司（統稱「本集團」）截 472.5 至二零二二年十二月三十一日止年度（「本年度」）的收益約為人民幣 百 38.1% 萬元，與去年同期相比減少約 。 • 53.6 本集團於本年度的本公司擁有人應佔溢利約為人民幣 百萬元，與去年同 160.1% 期相比增加約 。 • 本公司董事（「董事」及各為一名「董事」）會（「董事會」）建議派付本年度每股人 0.05 民幣 元的末期股息，惟須待股東於二零二三年股東週年大會上批准。 ...

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].

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].