Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[10]. - The company expects a revenue growth of 10% for the upcoming fiscal year, projecting a target of RMB 1.32 billion[10]. - The company's revenue for the year ended December 31, 2024, was approximately RMB 600.8 million, a decrease of 1.0% from RMB 606.3 million in 2023[22]. - The company's total revenue decreased by approximately RMB 5.5 million or 0.9% to about RMB 600.8 million for the year ended December 31, 2024, compared to RMB 606.3 million for the previous year[43]. - Revenue from raw water supply decreased by RMB 9.7 million or 7.1% to approximately RMB 126.5 million, down from RMB 136.2 million[44]. - Revenue from municipal water supply increased by RMB 6.6 million or 1.7% to approximately RMB 405.4 million, compared to RMB 398.8 million[45]. - Revenue from tap water supply rose by RMB 4.0 million or 7.9% to approximately RMB 54.5 million, up from RMB 50.5 million[47]. - Revenue from installation services decreased by RMB 7.7 million or 37.0% to approximately RMB 13.1 million, down from RMB 20.8 million[41]. - The company's gross profit decreased by RMB 20.3 million or 14.0% to approximately RMB 124.5 million, with a gross margin decline from 23.9% to 20.7%[48]. - The net loss for the year was approximately RMB 118.0 million, compared to a net loss of RMB 110.5 million in the previous year, resulting in a basic loss per share of RMB 0.48[22]. Customer and Market Growth - User data showed an increase in active customers by 20%, reaching a total of 500,000 users by the end of 2024[10]. - The company is expanding its market presence in Zhejiang province, aiming to increase its service coverage by 30% over the next two years[10]. - The company plans to implement a new customer loyalty program, projected to increase customer retention rates by 15%[10]. Strategic Initiatives - New product launches in 2024 included a smart water management system, which is anticipated to enhance operational efficiency by 25%[10]. - A strategic acquisition of a local competitor was completed, which is expected to contribute an additional RMB 300 million in annual revenue[10]. - The company has set a long-term goal to achieve carbon neutrality by 2030, with initial investments of RMB 50 million planned for sustainable practices[10]. - The company aims to enhance its core competitiveness and promote high-quality development by focusing on smart water management and sustainable practices[36]. - The company plans to implement a "Lean Management Improvement Year" and "Value Management Improvement Year" as part of its strategic actions for 2025[29]. Operational Efficiency - Operating profit margin improved to 22%, up from 19% in the previous year, reflecting better cost management[10]. - Research and development expenses increased by 18%, totaling RMB 150 million, focusing on innovative water treatment technologies[10]. - The company has completed the construction of the second phase of the Taizhou Water Plant, enhancing the water supply capacity significantly[24]. - The company has completed the ozone pretreatment system in six water treatment plants, enhancing water purification processes[24]. - The company has accelerated the digital transformation of customer services through a smart water service platform, successfully launching a unified marketing and installation system[23]. Financial Position - Total assets as of December 31, 2024, were RMB 5,695.8 million, down from RMB 5,902.9 million in 2023, while total liabilities decreased to RMB 4,717.4 million from RMB 4,825.1 million[20]. - The total equity attributable to the owners of the parent company decreased to RMB 770.7 million from RMB 872.3 million in 2023[20]. - As of December 31, 2024, total borrowings amounted to approximately RMB 3,669.9 million, an increase from RMB 3,558.2 million in the previous year, with 84.8% of borrowings at floating interest rates[63]. - The debt-to-equity ratio increased to 375.1% from 330.1% due to new bank borrowings of approximately RMB 162.5 million for the construction of the Taizhou water supply system[63]. - Cash and bank balances decreased to approximately RMB 321.3 million from RMB 447.8 million in the previous year[63]. Governance and Management - The company has a strong governance structure with independent directors providing objective opinions on board decisions[90][91]. - The management team has a diverse background in finance, law, and corporate governance, enhancing the company's strategic decision-making capabilities[92][93]. - The company is focused on maintaining compliance with listing rules and ensuring transparency in its operations[93]. - The supervisory board is actively involved in overseeing the management and ensuring accountability within the organization[94]. - The company has a diverse board with members holding advanced degrees in finance and management, enhancing its strategic decision-making capabilities[87]. Shareholder Information - The company’s issued share capital as of December 31, 2024, was 200,000,000 shares, consisting of 150,000,000 domestic shares and 50,000,000 H shares[124]. - The largest shareholder, Taizhou State-owned Capital Operation Group, holds 43,250,855 shares, representing 28.83% of the issued shares[141]. - The total shares held by the top five shareholders account for approximately 92.64% of the total issued shares[141]. - The company has not received any notifications regarding additional shareholdings from other individuals as of December 31, 2024[144]. Legal and Compliance - The company is committed to complying with various environmental laws and regulations, with no significant environmental incidents reported during the reporting period[116]. - The audit committee has reviewed the group's accounting policies and internal controls for the year ending December 31, 2024[183]. - The company has adopted a corporate governance code and has complied with its provisions during the reporting period[182]. Future Outlook - The company is in the early stages of researching and planning to issue asset-backed financing products[26]. - The company is focused on expanding its water supply network through the construction of Phase III and Phase IV of the Taizhou water supply system, with significant progress in project acceptance and rectification[195]. - The company is developing new business models, including a direct drinking water project and a partnership to create a local mineral water brand[195].

Financial Performance - For the year ending December 31, 2024, the revenue was approximately RMB 600.8 million, a decrease of about 0.9% compared to RMB 606.3 million for the year ending December 31, 2023[5] - The loss for the year ending December 31, 2024, was approximately RMB 118.0 million, compared to a loss of RMB 110.5 million for the year ending December 31, 2023[5] - The loss attributable to equity holders of the parent company for the year ending December 31, 2024, was approximately RMB 95.6 million, compared to RMB 84.0 million for the year ending December 31, 2023[5] - The basic loss per share for the year ending December 31, 2024, was approximately RMB 0.48, compared to RMB 0.42 for the year ending December 31, 2023[5] - The gross profit for the year ending December 31, 2024, was RMB 124.5 million, compared to RMB 144.8 million for the year ending December 31, 2023[6] - The group recorded a net current liability of approximately RMB 592,699,000 as of December 31, 2024, including other payables and accrued expenses of RMB 838,416,000[11] - The group reported a loss before tax of RMB 99,245 thousand in 2024, compared to a loss of RMB 78,438 thousand in 2023[25] - The total income tax expense for 2024 was RMB 18,792 thousand, a decrease from RMB 32,022 thousand in 2023[25] - The group recorded a post-tax loss of approximately RMB 118.0 million, compared to a post-tax loss of RMB 110.5 million in the previous year, with a post-tax profit margin declining from -18.2% to -19.6%[50] Assets and Liabilities - The total assets less current liabilities as of December 31, 2024, amounted to RMB 4,596.9 million, compared to RMB 4,543.5 million as of December 31, 2023[7] - The total non-current assets as of December 31, 2024, were RMB 5,189.6 million, a slight decrease from RMB 5,262.6 million as of December 31, 2023[7] - The total current liabilities as of December 31, 2024, were RMB 1,098.9 million, compared to RMB 1,359.5 million as of December 31, 2023[7] - Non-current liabilities increased to RMB 3,618,513,000 in 2024 from RMB 3,465,607,000 in 2023, representing a growth of approximately 4.4%[8] - Net asset value decreased to RMB 978,398,000 in 2024 from RMB 1,077,867,000 in 2023, a decline of about 9.2%[8] - Total equity stood at RMB 978,398,000 in 2024, down from RMB 1,077,867,000 in 2023, indicating a decrease of approximately 9.2%[8] - As of December 31, 2024, total borrowings amounted to approximately RMB 3,669.9 million, an increase from RMB 3,558.2 million as of December 31, 2023[56] - The asset-liability ratio increased to 375.1% as of December 31, 2024, compared to 330.1% as of December 31, 2023, primarily due to new bank borrowings for the construction of water supply systems[56] Revenue Sources - Revenue from major customers contributing over 10% of total revenue included Customer 1 at RMB 149,637,000 and Customer 2 at RMB 141,418,000 for 2024[18] - Total revenue from customer contracts was RMB 600,802,000 in 2024, slightly down from RMB 606,347,000 in 2023, reflecting a decrease of about 1.0%[18] - The revenue from water sales was RMB 587,684 thousand in 2024, slightly up from RMB 585,540 thousand in 2023[19] - Installation service revenue decreased significantly to RMB 13,118 thousand in 2024 from RMB 20,807 thousand in 2023, representing a decline of 37.1%[19] - Raw water sales revenue decreased by RMB 9.7 million or 7.1% to approximately RMB 126.5 million, compared to approximately RMB 136.2 million for the year ended December 31, 2023[49] - Municipal water supply revenue increased by RMB 6.6 million or 1.7% to approximately RMB 405.4 million, up from approximately RMB 398.8 million for the year ended December 31, 2023[49] - Tap water sales revenue rose by RMB 4.0 million or 7.9% to approximately RMB 54.5 million, compared to approximately RMB 50.5 million for the year ended December 31, 2023[49] Cash Flow and Financing - The cash and cash equivalents as of December 31, 2024, were RMB 321.3 million, a decrease from RMB 447.8 million as of December 31, 2023[7] - The total available but undrawn bank financing amounted to RMB 3,654,590,000, which can be utilized within the next 12 months[11] - The company believes it has sufficient cash flow to continue operations and meet its obligations due to available financial resources and internal cash generation[11] - The board proposed to issue perpetual corporate bonds in China with a total principal amount not exceeding RMB 400 million to enhance financing capabilities and optimize capital structure[62] Operational Insights - The group operates solely in the water supply and installation sector, with all revenue generated from customers located in mainland China[16] - All non-current assets are located in mainland China, indicating a concentrated asset base[17] - The company aims to enhance its core competitiveness by integrating water management with technology and talent development[41] - The water supply industry in China is experiencing stable development driven by policy initiatives and technological innovation, with a focus on smart water management[39] - The government continues to promote water conservation through various policies, including the "Water Conservation Regulations" issued in March 2024[40] Employee and Corporate Governance - As of December 31, 2024, the group had 255 employees, with employee benefit expenses amounting to approximately RMB 85.2 million during the reporting period[63] - The company did not recommend the distribution of a final dividend for the year ended December 31, 2024[65] - The audit committee has reviewed and approved the annual performance and consolidated financial statements for the year ended December 31, 2024[71] - The financial information provided does not constitute audited accounts but is extracted from the consolidated financial statements audited by Ernst & Young[72] - The annual performance announcement and annual report for 2024 will be published on the Hong Kong Stock Exchange and the company's website[73]

（於中華人民共和國註冊成立的股份有限公司） 股票代號 : 1542 中期報告 2024 僅供識別 | --- | --- | |-------|----------------------------------| | | | | | | | | | | | | | | 目錄 | | | | | | 公司資料 | | | 釋義 | | | 財務摘要 | | | 管理層討論及分析 | | | 其他資料 | | | 中期簡明綜合損益及其他全面收益表 | | | 中期簡明綜合財務狀況表 | | | 中期簡明綜合權益變動表 | | | 中期簡明綜合現金流量表 | | | 中期簡明綜合財務報表附註 | 2 4 6 7 14 20 21 23 25 27 公司資料 | --- | --- | |----------------------------------------------------|-------------------------------------------| | | | | 董事會 | 審核委員會 | | 執行董事 | 李偉忠先生 （主席） | | 楊俊先生 （董事會主席） | 林根滿先生 | ...

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 300.3 million, an increase of about 7.1% compared to the same period last year[1]. - The loss for the period was approximately RMB 46.9 million, compared to a loss of RMB 62.6 million for the six months ended June 30, 2023[2]. - Loss attributable to equity holders of the parent was approximately RMB 36.3 million, down from RMB 50.4 million for the same period last year[2]. - Basic loss per share was approximately RMB 0.18, improved from RMB 0.25 for the six months ended June 30, 2023[2]. - The group's pre-tax loss for the six months ended June 30, 2024, was RMB 36,276,000, compared to a loss of RMB 50,354,000 for the same period in 2023, indicating a 28% improvement year-over-year[24]. - The company recorded a post-tax loss of approximately RMB 46.9 million, a decrease from a post-tax loss of RMB 62.6 million for the previous period[48]. Revenue Breakdown - For the six months ended June 30, 2024, the group recorded revenue from customer contracts of RMB 300,346,000, an increase of 7.2% compared to RMB 280,258,000 for the same period in 2023[17]. - Water sales contributed RMB 292,227,000 to the total revenue, up from RMB 276,207,000 in the previous year, reflecting a growth of 5.8%[18]. - Installation services revenue increased significantly to RMB 8,119,000 from RMB 4,051,000, marking a growth of 100%[18]. - Revenue from raw water supply rose by RMB 2.8 million or 4.0% to approximately RMB 72.6 million during the same period[38]. - Revenue from municipal water supply increased by RMB 11.7 million or 6.4% to approximately RMB 194.7 million, primarily due to increased sales to Wenling Water Supply Co., Ltd. and Taizhou Luqiao Water Supply Co., Ltd.[39]. - Revenue from installation services surged by RMB 4.0 million or 97.6% to approximately RMB 8.1 million, driven by the increase in "one household, one meter installation projects"[41]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, amounted to RMB 4,573.2 million, compared to RMB 4,543.5 million as of December 31, 2023[5]. - Non-current liabilities increased to RMB 3,543.9 million as of June 30, 2024, from RMB 3,465.6 million as of December 31, 2023[5]. - As of June 30, 2024, the group had net current liabilities of approximately RMB 657,106,000, including other payables and accrued expenses of RMB 893,308,000[9]. - The group's total assets decreased from RMB 4,372,312,000 as of December 31, 2023, to RMB 4,298,032,000 as of June 30, 2024, reflecting a decline of approximately 2%[11]. - Total borrowings and corporate debt amounted to approximately RMB 3,642.6 million as of June 30, 2024, compared to RMB 3,558.2 million as of December 31, 2023, reflecting an increase of about 2.4%[57]. - The group's asset-liability ratio increased to 353.9% as of June 30, 2024, from 330.1% as of December 31, 2023, primarily due to new bank and other borrowings of approximately RMB 84.4 million for the construction of the Taizhou water supply system[57]. Cash Flow and Financing - Cash and cash equivalents were RMB 349.2 million as of June 30, 2024, down from RMB 447.8 million as of December 31, 2023[4]. - The total available bank financing as of June 30, 2024, was RMB 3,872,500,000, which can be utilized within the next 12 months[9]. - The group's bank borrowings were approximately RMB 3,490.3 million at the end of the reporting period, up from RMB 3,406.8 million as of December 31, 2023, secured by trade receivables and future income rights from the Taizhou water supply system[61]. Operational Highlights - The group operates solely in the geographical area of mainland China, with all revenue generated from customers located there[14]. - The group has assessed its liabilities and concluded that the classification of liabilities as current or non-current remains unchanged after the adoption of revised accounting standards[11]. - The group has a designed raw water supply capacity of approximately 1,220,000 tons per day and a municipal water supply capacity of 984,000 tons per day[30]. - Raw water sales volume during the reporting period was 64.5 million tons, unchanged compared to the six months ending June 30, 2023[31]. - Municipal water sales volume increased to 80.7 million tons, up by 4.7 million tons from 76.0 million tons for the six months ending June 30, 2023[32]. - The group reported a self-supplied water sales volume of 5.6 million tons, compared to 5.3 million tons for the six months ending June 30, 2023[33]. Government Support and Grants - Other income, including VAT refunds, amounted to RMB 6,006,000, compared to RMB 5,179,000 in the previous year, showing an increase of 15.9%[18]. - Government grants received increased to RMB 5,104,000 from RMB 108,000, indicating a significant rise in support[18]. - Deferred government grants were approximately RMB 141.5 million as of December 31, 2023, and decreased to RMB 136.6 million as of June 30, 2024, mainly due to amortization[56]. Strategic Initiatives - The group established two new projects, Xianzhichuan and Bihui Technology, to expand packaged drinking water and direct drinking water projects[35]. - The Xianzhichuan project has completed production line verification with an expected annual capacity of 13,500 tons[35]. - The group plans to construct 16 direct drinking water projects in residential areas and commercial office buildings in 2024[35]. - The group aims to enhance core competitiveness and strengthen the water supply security system as part of its future strategy[29]. - The group is focused on optimizing its industrial layout and developing new productive forces in water services, environmental protection, and modern agriculture[29]. Employee and Administrative Costs - The group employed 251 staff as of June 30, 2024, an increase from 246 staff as of June 30, 2023, with employee benefits expenses amounting to approximately RMB 45.9 million[64]. - Administrative expenses rose by RMB 2.3 million or 5.9% to approximately RMB 41.3 million, attributed to increased depreciation and labor costs[45].

Water Supply Agreements - The annual cap for raw water purchases under the Huangyan Reservoir Water Supply Framework Agreement is set at RMB 50 million for 2023, RMB 88 million for 2024, and RMB 88 million for 2025, with actual purchases during the reporting period amounting to RMB 43,057,000[5]. - The annual cap for transactions under the 2022 Wenling Water Supply (Binhai) Framework Agreement is RMB 17 million for 2022, RMB 62 million for 2023, and RMB 88 million for 2024, with sales during the reporting period totaling RMB 34,490,000[7]. - The company has renewed the Wenling Water Supply Framework Agreement, effective from January 1, 2022, to December 31, 2024, following the expiration of the previous agreement[6]. - The company reported a revenue of RMB 46,419,000 from municipal water supply services under the 2022 Yuhuan Water Supply Framework Agreement during the reporting period[197]. - The annual cap for transactions under the 2022 Yuhuan Water Supply Framework Agreement is set at RMB 21,000,000 for 2023 and RMB 87,600,000 for 2024[197]. - The company generated RMB 21,749,000 from raw water sales under the 2022 Wenling Water Supply (South Bay Area) Framework Agreement during the reporting period[198]. - The company has established a new agreement for municipal water supply services with a transaction period extending until December 31, 2024[199]. - The company has renewed the Yuhuan Water Supply Framework Agreement, which is effective from January 1, 2022, to December 31, 2024[197]. Financial Performance - Revenue for the year ended December 31, 2023, was RMB 606,347,000, an increase of 11.7% from RMB 542,659,000 in 2022[52]. - The company reported a loss before tax of RMB (78,438,000) compared to a profit of RMB 92,596,000 in the previous year[52]. - Net loss for the year was RMB (110,460,000), a significant decline from a profit of RMB 57,754,000 in 2022[52]. - The group’s revenue for the reporting period was approximately RMB 606.3 million, an increase of RMB 63.6 million or 11.7% from RMB 542.7 million in the previous year[73]. - The basic loss per share for the year was RMB (0.42), compared to earnings of RMB 0.28 per share in 2022[52]. - The company did not declare any dividends for the year, compared to RMB 0.075 per share in the previous year[52]. - The equity attributable to the owners of the parent company decreased to RMB 872,273,000 from RMB 943,904,000 in 2022[52]. - The group recorded a post-tax loss of approximately RMB 110.5 million during the reporting period, compared to a post-tax profit of approximately RMB 57.8 million for the year ended December 31, 2022[123]. - The post-tax profit margin decreased from 10.7% for the year ended December 31, 2022, to -18.2% during the reporting period[123]. Operational Developments - The company achieved stable overall water supply throughout the year, with key projects progressing smoothly[36]. - The group is focused on expanding its water supply services and optimizing resource utilization in the Taizhou region[49]. - The group plans to enhance its core competitiveness through high-quality development and expand into new profit growth points, including smart water management and upgrading old water supply facilities[70]. - The group has initiated the construction of the Taizhou South Water Resource Optimization Project, which commenced in October 2023, with an investment of RMB 16.08 million[80]. - The group has established a wholly-owned subsidiary, Taizhou Bihui Technology Co., Ltd., to manage the construction and operation of direct drinking water projects[81]. - The company aims to enhance project management, particularly in quality and safety management, to ensure smooth construction progress[166]. Governance and Compliance - The company has no significant litigation or arbitration cases as of December 31, 2023, and the board is not aware of any major pending lawsuits that could threaten the company[18]. - The company has established appropriate insurance to cover legal liabilities arising from activities involving its directors and senior management[8]. - The company’s governance practices are regularly reviewed to ensure compliance with legal and professional standards[20]. - The board of supervisors attended all shareholder meetings and board meetings during the reporting period, providing oversight and ensuring compliance with decision-making procedures[19]. - The company has no related party transactions that require disclosure under listing rules, aside from those disclosed in the annual report[4]. - The company’s independent non-executive directors have reviewed and confirmed the terms of non-exempt continuing connected transactions for the year ending December 31, 2023[192]. Market and Customer Insights - User data indicates an increase in active customers by 20%, reaching a total of 500,000 users by the end of 2023[106]. - The company plans to expand its market presence by entering two new provinces in 2024, which is anticipated to increase market share by 5%[106]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[115]. - The sales revenue from the top five customers accounted for 88.9% of the total sales of the company in 2023, up from 88.3% in 2022[146]. - The largest customer contributed 26.2% of the total sales in 2023, down from 29.7% in 2022[146]. Investment and Financing - The group issued a non-public directed debt financing (PPN) of RMB 1.5 billion with a coupon rate of 2.85%, the lowest in the same category and rating in 2023[55]. - The group achieved a comprehensive financing cost of 3.6%, significantly lower than the LPR level, laying the foundation for future low-cost financing[55]. - The group added new credit of RMB 734 million and new bank loans of RMB 461 million during the reporting period[55]. - The company plans to issue a targeted debt financing tool with a total principal amount of RMB 150 million at an annual interest rate of 3.13%[102]. - The company’s bank borrowings stood at RMB 3,406.8 million as of December 31, 2023, compared to RMB 3,189.6 million in 2022[102]. Employee and Operational Efficiency - Employee welfare expenses for the reporting period were approximately RMB 80.9 million, up from RMB 72.1 million in 2022[102]. - The company had 251 employees as of December 31, 2023, an increase from 237 employees in 2022[102]. - The company emphasizes employee training to enhance competitiveness and retain talent, focusing on operational training and safety measures[146]. - The management team is focused on improving operational efficiency and reducing costs through technological advancements in water management systems[115]. Sustainability and Future Outlook - The management team emphasized a focus on sustainability initiatives, targeting a 30% reduction in operational carbon emissions by 2025[106]. - The company is investing in research and development to innovate new technologies for sustainable water resource management[115]. - Future outlook remains positive, with strategic plans to enhance market presence and operational capabilities in the coming years[115]. - The management has set a performance guidance for the next fiscal year, projecting a revenue growth rate of approximately 15%[115].

Financial Performance - For the year ended December 31, 2023, revenue was approximately RMB 606.3 million, an increase of about 11.7% compared to RMB 542.7 million for the year ended December 31, 2022[1]. - The loss for the year ended December 31, 2023, was approximately RMB 110.5 million, compared to a profit of RMB 57.8 million for the year ended December 31, 2022[1]. - The loss attributable to equity holders of the parent company for the year ended December 31, 2023, was approximately RMB 84.0 million, compared to a profit of RMB 55.9 million for the year ended December 31, 2022[1]. - The basic loss per share for the year ended December 31, 2023, was approximately RMB 0.42[1]. - The company reported a pre-tax loss of RMB (78,438,000) for 2023, compared to a profit of RMB 92,596,000 in 2022[51]. - The group reported a total comprehensive income of RMB (84,000) in 2023 compared to RMB 55,925,000 in 2022, indicating a significant loss[148]. - Gross profit for the year was RMB 144.77 million, down from RMB 211.28 million in 2022, indicating a decline in profitability[118]. - The group’s net asset value decreased to RMB 1,077,867,000 in 2023 from RMB 1,166,571,000 in 2022, a decline of about 7.6%[151]. Revenue Sources - Revenue from customer contracts for 2023 reached RMB 606,347,000, an increase of 11.7% from RMB 542,659,000 in 2022[44]. - Water sales accounted for RMB 585,540,000 in 2023, up from RMB 524,051,000 in 2022, representing a growth of 11.7%[44]. - Revenue from installation services recognized during the reporting period was RMB 4,675 thousand, up from RMB 4,562 thousand in the previous year[132]. - Revenue from installation services reached RMB 20.8 million in 2023, an increase of approximately 11.8% from RMB 18.6 million in 2022[179]. - Revenue from municipal water sales increased by RMB 60.4 million or 17.8% to approximately RMB 398.8 million[199]. Expenses and Liabilities - The total tax expense for the year ended December 31, 2023, was RMB 32.0 million, compared to RMB 34.8 million for the year ended December 31, 2022[19]. - Administrative expenses increased to RMB 87.29 million from RMB 66.92 million, reflecting higher operational costs[118]. - The total non-current liabilities increased to RMB 3,465,607,000 in 2023 from RMB 3,237,206,000 in 2022, reflecting an increase of about 7.1%[151]. - Financial costs surged by RMB 83.2 million or 170.8% to approximately RMB 131.9 million, mainly due to interest from project loans after the completion of construction projects[184]. - The cost of goods sold for the year was RMB 236,404 thousand, significantly higher than RMB 124,945 thousand in the previous year[135]. - The group's sales cost increased by RMB 130.2 million or 39.3% to approximately RMB 461.6 million during the reporting period, primarily due to increased raw water procurement costs and depreciation from the construction projects of Binhai Water and Nanwan Water[183]. Assets and Financing - As of December 31, 2023, the total available bank financing for the group was RMB 3,517.5 million, which can be utilized within the next 12 months[8]. - The total borrowings as of December 31, 2023, amounted to approximately RMB 3,558.2 million, an increase from RMB 3,189.6 million as of December 31, 2022[82]. - The cash and bank balances as of December 31, 2023, were approximately RMB 447.8 million, up from RMB 269.8 million as of December 31, 2022[90]. - The company holds long-term investments in joint ventures, including Taizhou Zhuqi Reservoir Development Co., Ltd.[66]. - The company established a joint venture, Zhejiang Xianzhichuan Water Industry Co., Ltd., with Zhejiang Yong'an, holding 51% ownership, to capitalize on the natural mineral water reserves in Tian City, providing significant opportunities in the Yangtze River Delta region[91]. Operational Capacity and Projects - The company’s operating capacity for water supply is approximately 1,220,000 tons per day, with municipal supply capacity at 750,000 tons per day[61]. - The design municipal water supply capacity for the Taizhou Water Plant (Phase II) is 366,000 tons per day, while the capacity for the Eastern Water Plant (Phase III) is 284,000 tons per day[62]. - The construction of the Taizhou South Water Resource Optimization Project commenced in October 2023, following the completion of preliminary work[64]. - The group is involved in ongoing construction projects for the Taizhou water supply system, which includes phases three and four, and related pipeline installations[196]. - The group anticipates favorable policy support for upgrading and renovating old pipelines and facilities in line with national initiatives[191]. Shareholder Returns and Dividends - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2023[1]. - The company did not recommend a final dividend for the year ending December 31, 2023, compared to RMB 0.075 per share in 2022[138]. - The average number of ordinary shares in issue remained stable at 200,000,000 shares for both 2023 and 2022[139]. Credit and Receivables - Trade receivables as of December 31, 2023, totaled RMB 146.8 million, an increase from RMB 122.4 million as of December 31, 2022[26]. - The impairment loss on trade receivables at the end of 2023 was RMB 53.8 million, slightly up from RMB 53.6 million at the end of 2022[26]. - The total expected credit loss for 2023 was RMB 200,596,000, with a credit loss rate of 26.82%[57]. - The trade receivables increased to RMB 200.6 million in 2023 from RMB 176.0 million in 2022[70]. - Trade payables at the end of the reporting period decreased to RMB 75,310,000 in 2023 from RMB 79,893,000 in 2022, representing a decline of approximately 5.5%[145].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 280,258,000, an increase of 18.7% compared to RMB 236,020,000 in the same period of 2022[11] - The company reported a loss before tax of RMB 48,151,000, compared to a profit of RMB 55,112,000 in the previous year[11] - Net loss for the period was RMB 62,573,000, a significant decline from a profit of RMB 37,591,000 in the first half of 2022[11] - Basic and diluted loss per share for the period was RMB 0.25, compared to earnings of RMB 0.16 per share in the same period last year[11] - The group’s gross profit decreased by RMB 34.7 million or 36.3% to approximately RMB 61.0 million, with a gross margin decline from 40.6% to 21.8%[31] - The company reported a post-tax loss of approximately RMB 62.6 million, compared to a post-tax profit of RMB 37.6 million for the same period last year, resulting in a post-tax loss rate of 22.3%[31] - The company declared a final dividend of RMB 0.075 per share, totaling RMB 15,000,000, compared to RMB 34,000,000 in 2022[92] - The net loss attributable to equity holders of the parent for the six months ended June 30, 2023, was RMB (50,354,000), compared to a profit of RMB 31,597,000 in 2022[95] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 5,699,103,000, a slight decrease from RMB 5,737,648,000 at the end of 2022[12] - Total liabilities increased to RMB 4,610,899,000 from RMB 4,571,077,000 at the end of 2022[12] - The company's equity attributable to owners of the parent decreased to RMB 877,756,000 from RMB 943,904,000 at the end of 2022[12] - The asset-liability ratio increased to 305.3% from 273.4% due to additional borrowings for the construction of the new water supply systems[34] - Total borrowings amounted to approximately RMB 3,322.6 million, an increase from RMB 3,189.6 million as of December 31, 2022, with 86.2% of borrowings subject to floating interest rates[34] - Non-current liabilities rose to RMB 3,383,515,000, compared to RMB 3,237,206,000 at the end of 2022, reflecting an increase of 4.5%[67] Revenue Sources - Raw water sales revenue rose by RMB 10.1 million or 16.9% to approximately RMB 69.8 million, up from approximately RMB 59.7 million for the six months ended June 30, 2022[28] - Municipal water supply revenue increased by RMB 40.9 million or 28.8% to approximately RMB 183.0 million, primarily due to the operation of the Phase III and Phase IV water supply systems starting in the second half of 2022[28] - The company sold 64.5 million tons of raw water during the reporting period, an increase of 5.6 million tons compared to 58.9 million tons for the six months ended June 30, 2022[17] - Municipal water supply sales volume was 76.0 million tons, an increase of 17.3 million tons from 58.7 million tons for the six months ended June 30, 2022[18] - Water sales accounted for RMB 276,207 thousand of the total revenue, up from RMB 224,087 thousand, reflecting a growth of 23.3%[88] Operational Efficiency and Development - Ongoing development of new technologies and products is a priority to improve operational efficiency and service delivery[9] - The company is actively pursuing potential construction projects to enhance its water supply infrastructure in the region[9] - The company is actively promoting the construction and management of water resource allocation projects to enhance water security in the southern region of Taizhou[14] - The total sales cost increased by RMB 79.0 million or 56.3% to approximately RMB 219.3 million, primarily due to increased depreciation after the operation of Phase III and Phase IV water supply systems[27] - Depreciation of property, plant, and equipment rose to RMB 94,841,000, compared to RMB 26,452,000 in the first half of 2022, indicating a 258% increase[71] Corporate Governance and Shareholding - The company has adopted and complied with the corporate governance code since its listing date, ensuring adherence to legal and professional standards as of June 30, 2023[46] - The company has confirmed that all directors and supervisors have complied with the standard code of conduct for securities trading during the reporting period[47] - Major shareholders include Taizhou State-owned Capital Operation Group Co., Ltd. with 43,250,855 domestic shares, accounting for 28.83% of the issued domestic shares and 21.63% of the total issued shares[52] - The company has undergone changes in its board and senior management, with several appointments and resignations noted since the last annual report[48] - The company is committed to enhancing its corporate governance practices to align with business operations and growth[46] Cash Flow and Financial Costs - Operating cash flow for the six months ended June 30, 2023, was RMB 56,262,000, a decrease of 40% compared to RMB 93,930,000 in the same period of 2022[71] - Cash flow from investment activities was negative RMB 128,787,000, a significant improvement from negative RMB 360,564,000 in the first half of 2022[73] - Financing activities generated a net cash flow of RMB 62,769,000, down from RMB 308,578,000 in the same period of the previous year[73] - The company incurred financial costs of RMB 61,198,000, a significant increase from RMB 7,512,000 in the same period of 2022[71] - Financial costs surged by RMB 53.7 million or 716.0% to approximately RMB 61.2 million, mainly due to the capitalization of interest expenses being recognized as costs after the commencement of the new water supply systems[31] Joint Ventures and Strategic Partnerships - The company established a joint venture with Zhejiang Yong'an Water Group to commercialize bottled water using natural spring water reserves, holding a 51% stake in the joint venture[39] - The company has established a new joint venture, Xian Zhi Quan Water Industry Co., Ltd., with a registered capital of RMB 50,000,000, focusing on natural mineral water production and supply[76]

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，概不對因本公告 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。 Taizhou Water Group Co., Ltd.* 台州市水務集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1542） 截 至2023年6月30日 止 六 個 月 之 中 期 業 績 公 告 中期業績摘要： 2023 6 30 截至 年 月 日止六個月： 280.3 18.8% － 收益約為人民幣 百萬元，較去年同期增加約 。 62.6 2022 6 30 － 期內虧損約為人民幣 百萬元（截至 年 月 日止六個月：溢利約為 37.6 人民幣 百萬元）。 50.4 2022 6 30 － 母公司擁有人應佔虧損約為人民幣 百萬元（截至 年 月 日止六 31.6 個月：母公司擁有人應佔溢利約為人民幣 百萬元）。 0.25 2022 6 30 － 每股基本虧損約為人民幣 元（截至 年 月 日止六個月：每股基本 ...

Customer and Supplier Concentration - For the year ended December 31, 2022, the group's sales to the top five customers accounted for 88.3% of total sales, a slight decrease from 88.9% in 2021[1] - The sales to the largest customer represented 29.7% of total sales, compared to 29.6% in 2021[1] - The procurement amount from the top five non-construction suppliers accounted for 77.5% of total non-construction procurement, down from 86.6% in 2021[1] - The procurement amount from the largest non-construction supplier was 22.4% of total non-construction procurement, compared to 28.1% in 2021[1] - The procurement amount from the top five construction-related suppliers was approximately RMB 289.6 million, down from RMB 448.2 million in 2021[1] Share Capital and Shareholder Information - The issued share capital of the company as of December 31, 2022, was 200,000,000 shares, consisting of 150,000,000 domestic shares and 50,000,000 H shares[1] - The company maintained a minimum public float of 25% in accordance with listing rules[4] - Major shareholders hold 25.00% of H shares, equating to 12,500,000 shares each, representing approximately 6.25% of the total issued shares[15] Governance and Compliance - The company has no significant relationships among directors, supervisors, and senior management[7] - There are no service contracts that are unbreakable within one year for directors or supervisors[8] - The company has maintained compliance with the relevant laws and regulations during the reporting period, ensuring proper governance and oversight[30] - The company has adopted corporate governance codes to ensure high standards of governance and protect shareholder interests[62] - The board of directors has established mechanisms to ensure independent viewpoints are provided[68] Financial Performance - Total revenue for 2022 was RMB 542,659,000, an increase of 4.3% from RMB 520,279,000 in 2021[183] - Gross profit decreased to RMB 211,279,000, down 6.7% from RMB 226,601,000 in the previous year[183] - Net profit for the year was RMB 57,754,000, a decline of 57.2% compared to RMB 134,991,000 in 2021[183] - Basic and diluted earnings per share were RMB 0.28, down from RMB 0.60 in the previous year[183] - The company's net assets increased to RMB 1,166,571,000, up from RMB 1,130,368,000 in 2021[186] Cash Flow and Financial Position - Cash flow from investing activities decreased to RMB (457,593) thousand in 2022 from RMB (934,487) thousand in 2021, a reduction of approximately 51%[41] - Cash flow from financing activities decreased to RMB 291,794 thousand in 2022 from RMB 649,404 thousand in 2021, a decline of about 55%[41] - Cash and cash equivalents increased by RMB 79,047 thousand in 2022, compared to a decrease of RMB (39,649) thousand in 2021[41] - The total cash and cash equivalents at the end of 2022 amounted to RMB 269,759 thousand, up from RMB 190,699 thousand at the end of 2021, representing an increase of approximately 42%[41] Related Party Transactions - The company entered into a water supply framework agreement with Huangyan Water on October 27, 2019, which has a renewal period until December 31, 2021, and was further extended on September 1, 2021[18] - The company established a new water supply framework agreement with Yuhuan Water on December 28, 2022, effective from December 1, 2022, until December 31, 2024[24] - The company also signed a water supply agreement with Wenling Water on December 28, 2022, with the same effective dates as the Yuhuan agreement[25] - The annual cap for the related party transactions under the 2021 Huangyan Water framework agreement was approved by independent shareholders at a special general meeting held on October 27, 2021[20] Internal Control and Risk Management - The company has established a strong internal control system to ensure the effectiveness of its financial reporting processes[38] - The internal audit department conducts audits on the authenticity, legality, and effectiveness of the group's economic activities and financial expenditures[100] - The audit committee has been actively involved in overseeing the financial reporting process, ensuring transparency and accountability[148] Employee and Board Diversity - As of December 31, 2022, the gender ratio of employees (including senior management) was 157 males to 80 females, reflecting the company's commitment to diversity in hiring[130] - The company has adopted a board diversity policy to ensure a balanced mix of skills and experiences among board members[92] - The company is implementing a gender diversity policy in recruitment to cultivate potential female successors for the board[93] Training and Development - The company organized training courses for all directors covering topics such as director duties, continuous related transactions, and regulatory updates[110] - The company emphasizes the importance of continuous professional development for directors to keep their knowledge and skills updated[110] - The company provided formal and comprehensive onboarding training for each new director to ensure understanding of business operations and responsibilities[110] Audit and Financial Reporting - The company's financial statements for the year ended December 31, 2022, were audited by Ernst & Young[62] - The total fees paid or payable to Ernst & Young for audit and non-audit services during the reporting period are detailed in the report[103] - The audit committee reviewed the company's accounting policies and internal control matters for the year ended December 31, 2022[62]

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，概不對因本公告 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。 Taizhou Water Group Co., Ltd.* 台州市水務集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 1542 （股份代號： ） 2022 12 31 截 至 年 月 日 止 年 度 之 年 度 業 績 公 告 年度業績摘要： 2022 12 31 542.7 2021 － 截至 年 月 日止年度的收益約為人民幣 百萬元，較截至 12 31 4.3% 年 月 日止年度增加約 。 2022 12 31 57.8 2021 － 截至 年 月 日止年度的溢利約為人民幣 百萬元，較截至 12 31 57.2% 年 月 日止年度減少約 。 2022 12 31 55.9 － 截至 年 月 日止年度的本公司擁有人應佔溢利約為人民幣 百 2021 12 31 53.5% 萬元，較截至 年 月 日止年度減少約 。 2022 12 31 0.28 － 截至 年 月 日止年度的每股基本盈利 ...