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 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 236,020 thousand, a decrease of 9.1% from RMB 259,779 thousand in the same period of 2021[13] - Profit before tax for the same period was RMB 55,112 thousand, down 40.6% from RMB 92,749 thousand in 2021[13] - Net profit attributable to the owners of the parent company was RMB 31,597 thousand, a decline of 48.0% compared to RMB 60,892 thousand in the previous year[13] - Basic and diluted earnings per share for the period were RMB 0.16, down from RMB 0.30 in the same period of 2021, indicating a decrease of 46.7%[13] - The company's revenue decreased by RMB 23.8 million or 9.2% to approximately RMB 236.0 million for the six months ended June 30, 2022, compared to RMB 259.8 million for the same period in 2021[18] - The group's revenue from municipal water supply decreased by RMB 29.5 million or 17.2% to approximately RMB 142.1 million, primarily due to a reduction in sales volume[21] - The group's gross profit decreased by RMB 22.4 million or 19.0% to approximately RMB 95.7 million, with a gross margin decline from 45.5% to 40.6%[21] - The total comprehensive income for the period was RMB 37,378 thousand, down 45.6% from RMB 68,807 thousand in the same period of 2021[41] Assets and Liabilities - Total assets as of June 30, 2022, increased to RMB 5,236,486 thousand from RMB 4,855,907 thousand as of December 31, 2021, representing an increase of 7.8%[14] - Total liabilities rose to RMB 4,088,740 thousand from RMB 3,725,539 thousand, marking an increase of 9.7%[14] - The net asset value as of June 30, 2022, was RMB 1,147,746 thousand, compared to RMB 1,130,368 thousand at the end of 2021, reflecting a growth of 1.5%[14] - The group's cash and bank balances were approximately RMB 232.7 million as of June 30, 2022, compared to approximately RMB 190.7 million as of December 31, 2021[24] - The total borrowings of the group were approximately RMB 3,105.0 million as of June 30, 2022, compared to approximately RMB 2,742.0 million as of December 31, 2021[24] - The group's debt-to-equity ratio increased to 270.5% as of June 30, 2022, from 242.6% as of December 31, 2021, primarily due to new borrowings for the water supply system projects[24] - Trade receivables decreased to approximately RMB 90.5 million as of June 30, 2022, from approximately RMB 100.4 million as of December 31, 2021, due to reduced municipal water revenue[24] Operational Highlights - Water sales volume for raw water was 58.9 million tons, an increase of 0.4 million tons compared to 58.5 million tons for the six months ended June 30, 2021[17] - Municipal water sales volume decreased by 11.6 million tons to 58.7 million tons, down from 70.3 million tons for the same period in 2021[17] - The company reported installation service income of approximately RMB 11.9 million, an increase of RMB 5.1 million or 75% compared to RMB 6.8 million for the six months ended June 30, 2021[17] - The total designed raw water supply capacity is expected to reach 1,220,000 tons per day after the completion of the new water supply systems, representing an increase of 104.9% from the current two systems[17] - The construction of the Taizhou Water Supply System (Phase III) and (Phase IV) has been largely completed, with trial water supply starting in July 2022[15] Strategic Initiatives - The company continues to explore new strategies for market expansion and product development to enhance future performance[13] - The company is actively exploring ecological and environmental protection sectors, focusing on wastewater treatment, reclaimed water utilization, and solid waste disposal[15] - The company has successfully completed the integration of water services and acquired stakes in other local water supply companies to enhance its market position[15] - The company aims to become a leading water service provider in the Yangtze River Delta region through strategic development and resource integration[15] Shareholder Information - The group did not declare an interim dividend for the six months ended June 30, 2022, compared to no dividend declared for the same period in 2021[27] - Major shareholder Taizhou State-owned Capital Operation Group Co., Ltd. holds 43,250,855 shares, representing 28.83% of the domestic shares and 21.63% of the total issued shares[32] - The total number of shares held by major shareholders indicates a significant concentration of ownership within the company[32] - The company has multiple major shareholders, including state-owned enterprises and investment groups, reflecting a diverse ownership structure[32] Financial Costs and Income - The company reported income tax expenses of RMB (17,521) thousand, compared to RMB (23,942) thousand in the previous year, showing a reduction of 26.9%[13] - Other income and gains decreased by RMB 2.2 million or 29.7% to approximately RMB 5.2 million, mainly due to a reduction in revenue and VAT refunds[23] - Financial costs increased by RMB 0.9 million or 13.6% to approximately RMB 7.5 million, mainly due to new loans[23] - The group's bank borrowings were approximately RMB 3,105.0 million as of June 30, 2022, compared to 2,742.0 million as of December 31, 2021, indicating an increase in leverage[27] Employee and Management Information - The group had 230 employees as of June 30, 2022, up from 199 employees as of June 30, 2021, with employee benefit expenses amounting to approximately RMB 36.6 million during the reporting period[27] - The total compensation paid to key management personnel was RMB 2,441 thousand for the six months ended June 30, 2022, representing an increase of 4.4% from RMB 2,339 thousand in the same period of 2021[102]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[8]. - The company's revenue for the year ended December 31, 2021, was RMB 520,279,000, an increase of 7.3% from RMB 483,796,000 in 2020[18]. - The profit before tax for 2021 was RMB 178,898,000, up 14.5% from RMB 156,235,000 in the previous year[18]. - The net profit for the year was RMB 134,991,000, representing a 16.3% increase compared to RMB 116,229,000 in 2020[18]. - The company's revenue for 2021 was approximately RMB 520.3 million, up from RMB 483.8 million in the previous year, representing an increase of about 7.8%[21]. - Net profit for the year was approximately RMB 135.0 million, compared to RMB 116.2 million in the previous year, reflecting a growth of around 16.1%[21]. - Basic earnings per share for 2021 were RMB 0.60, an increase from RMB 0.52 in 2020[18]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[72]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a projected growth of 25%[72]. User Growth and Market Expansion - User data indicates that the customer base expanded by 20%, reaching 500,000 active users by the end of the fiscal year[8]. - The company plans to expand its market presence by entering two new provinces in China, aiming for a 5% market share in these regions within the next three years[8]. - The company is planning to expand its market presence by entering two new provinces, which is anticipated to contribute an additional 200 million RMB in revenue[59]. - The company is expanding its market presence, targeting three new cities for service expansion in the next year[63]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance market share by 5%[63]. - A strategic acquisition of a local competitor is in progress, which is expected to increase market share by 15% and enhance service capabilities[59]. Product Development and Innovation - New product development includes the launch of a smart water meter system, expected to enhance operational efficiency and customer satisfaction[8]. - New product development includes the launch of a smart water management system, expected to enhance operational efficiency by 30%[72]. - The company has invested 50 million RMB in research and development for innovative water treatment technologies aimed at improving service quality[59]. - The company has invested 50 million RMB in research and development for new technologies aimed at improving water quality monitoring[72]. Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by 8% over the next year through process optimization[8]. - Operational efficiency improvements are projected to reduce overall costs by 8% through the implementation of new technologies[59]. - The company aims to enhance customer satisfaction scores by 10% through improved service delivery and user engagement initiatives[59]. - The company plans to implement cost-cutting measures that could reduce operational expenses by 8%[63]. - Operational costs have been reduced by 5% due to improved efficiency measures implemented over the past year[72]. Sustainability and Environmental Commitment - The company is committed to sustainability, with plans to reduce water waste by 15% through new conservation initiatives[8]. - Future guidance includes maintaining a focus on sustainable practices, with a target of reducing carbon emissions by 20% over the next five years[59]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 20% over the next five years[72]. - The company is actively seeking methods for environmental sustainability while considering its social and economic responsibilities[100]. Governance and Corporate Structure - The board of directors has approved a dividend payout of 0.2 RMB per share, reflecting a 10% increase from the previous year[8]. - The company has adopted a corporate governance code and has complied with its provisions during the reporting period[156]. - The board consists of 15 members, including 2 executive directors, 8 non-executive directors, and 5 independent non-executive directors[172]. - The company has established a robust internal control and risk management system to oversee operational and financial performance[175]. - The company has confirmed compliance with the standard code of conduct by all directors and supervisors during the reporting period[197]. Employee and Management Information - The company had 206 employees as of December 31, 2021, an increase from 194 employees in the previous year[58]. - Employee benefits expenses for the reporting period were approximately RMB 62.8 million, compared to RMB 52.5 million for the previous year[58]. - The company places significant importance on maintaining good employer-employee relations to retain staff effectively[105]. - The company encourages continuous professional development for directors, covering topics such as compliance and regulatory updates[178]. Acquisitions and Investments - A strategic acquisition of a local water utility company is in progress, which is projected to increase the company's service capacity by 30%[8]. - The company agreed to acquire 45% equity in Taizhou Water and Jiao Bei Water for a total consideration of RMB 46.60 million, which is subject to adjustments[54]. - The acquisition of Luqiao Water's 45% equity was agreed upon for RMB 124.42 million, with adjustments applicable[56]. - The company completed the acquisition of Huangyan Water on October 27, 2021, which was approved by shareholders at a special meeting[132]. Financial Management and Reporting - The financial report for 2021 was prepared in accordance with Hong Kong Financial Reporting Standards and received an unqualified opinion from independent auditors[171]. - The audit committee reviews the internal control system annually[196]. - The total fees paid/owed to Ernst & Young for audit services during the reporting period amounted to RMB 5,160,000[199].

[Company Information](index=3&type=section&id=Company%20Information) This section provides fundamental details about the company [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This section summarizes the company's key financial performance and position [Performance Summary](index=7&type=section&id=Performance%20Summary) The company achieved revenue of **RMB 260 million** in H1 2021, a **15.7% YoY increase**, with profit for the period rising **38.7%** to **RMB 68.81 million** Performance Summary (RMB thousands) | Indicator | Six Months Ended June 30, 2021 (RMB thousands) | Six Months Ended June 30, 2020 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 259,779 | 224,455 | +15.7% | | Profit Before Tax | 92,749 | 67,242 | +37.9% | | Profit and Other Comprehensive Income for the Period | 68,807 | 49,641 | +38.6% | | Profit Attributable to Owners of the Parent Company | 60,892 | 43,582 | +39.7% | | Basic Earnings Per Share Attributable to Ordinary Equity Holders of the Parent Company (RMB) | 0.30 | 0.22 | +36.4% | [Assets and Liabilities Summary](index=7&type=section&id=Assets%20and%20Liabilities%20Summary) As of June 30, 2021, total assets reached **RMB 4.069 billion**, up **16.1%**, while total liabilities increased **21.5%** to **RMB 3.020 billion**, driven by ongoing construction projects and related borrowings Assets and Liabilities Summary (RMB thousands) | Indicator | As of June 30, 2021 (RMB thousands) | As of December 31, 2020 (RMB thousands) | Period Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,068,609 | 3,503,056 | +16.1% | | Total Liabilities | 3,019,655 | 2,484,553 | +21.5% | | Total Equity | 1,048,954 | 1,018,503 | +3.0% | [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section provides insights into the company's operations, financial performance, and future outlook [Industry Overview, Development Strategy, and Outlook](index=8&type=section&id=Industry%20Overview%2C%20Development%20Strategy%2C%20and%20Outlook) The company is strategically positioned as a comprehensive water and environmental resource development operator, expanding its market presence and exploring new growth areas in ecological protection - The company is positioned as a **"comprehensive water and environmental resource development operator"**, initiating water integration efforts by acquiring equity stakes in other Taizhou City water companies to expand industrial scale and consolidate market position[15](index=15&type=chunk) - The Group plans to expand its business into ecological and environmental sectors, including **wastewater treatment, reclaimed water reuse, and solid waste disposal**, and foster industry-academia-research collaboration for development[15](index=15&type=chunk) [Business Review](index=9&type=section&id=Business%20Review) As Taizhou City's leading water supply provider, the company saw year-on-year sales volume growth across all segments and is actively progressing major water supply system projects and regional water integration acquisitions - The company signed agreements in May 2021 to acquire **45% equity stakes** in Taizhou Tap Water, Jiaobei Water Supply, and Luqiao Tap Water, aiming to expand its water supply network coverage and enhance overall profitability[17](index=17&type=chunk) Sales Volume by Business Segment | Business Segment | 2021 H1 Sales Volume (Million Tons) | 2020 H1 Sales Volume (Million Tons) | YoY Growth | | :--- | :--- | :--- | :--- | | Raw Water Supply | 58.5 | 54.2 | +7.9% | | Municipal Water Supply | 70.3 | 62.2 | +13.0% | | Tap Water Supply | 5.2 | 4.7 | +10.6% | - Construction of Taizhou City Water Supply System (Phase III) and (Phase IV) projects is progressing smoothly, with water treatment plant complex buildings and basic treatment facilities completed and accepted, expected to be finished in February and April 2022, respectively[18](index=18&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) In H1 2021, the company's total revenue grew **15.7%** to **RMB 260 million**, with gross profit surging **30.6%** to **RMB 118 million**, and net profit increasing **38.7%** to **RMB 68.8 million**, despite an increase in total borrowings to support project construction [Operating Performance Analysis](index=11&type=section&id=Operating%20Performance%20Analysis) Revenue grew **15.7%** to **RMB 260 million**, driven by municipal water supply and installation services, leading to a **30.6%** increase in gross profit to **RMB 118 million** and a **38.7%** rise in profit after tax to **RMB 68.8 million** Revenue by Segment (RMB millions) | Revenue Segment | 2021 H1 (RMB millions) | 2020 H1 (RMB millions) | YoY Growth | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Raw Water Supply | 59.5 | 54.1 | +10.0% | Increased sales volume | | Municipal Water Supply | 171.6 | 147.4 | +16.4% | Increased sales volume and higher average unit price | | Tap Water Supply | 21.9 | 19.6 | +11.7% | Increased sales volume | | Installation Services | 6.8 | 3.4 | +100.0% | Low base in prior period due to pandemic impact | - Gross profit increased by **30.6%** from **RMB 90.4 million** in the prior period to **RMB 118 million**, with gross margin rising from **40.3%** to **45.5%**[21](index=21&type=chunk) - Profit after tax increased by **38.7%** from **RMB 49.6 million** in the prior period to **RMB 68.8 million**, with the after-tax profit margin rising from **22.1%** to **26.5%**[28](index=28&type=chunk) [Financial Position Analysis](index=13&type=section&id=Financial%20Position%20Analysis) As of June 30, 2021, property, plant, and equipment increased to **RMB 2.981 billion** due to construction investments, while trade receivables and other payables also rose due to increased water sales and project-related payments - Property, plant, and equipment increased from **RMB 2.545 billion** at end-2020 to **RMB 2.981 billion**, primarily due to new construction-in-progress for Taizhou City Water Supply System (Phase III) and (Phase IV)[29](index=29&type=chunk) - Trade receivables increased from **RMB 102 million** at end-2020 to **RMB 117 million**, primarily due to increased water sales[28](index=28&type=chunk) - Other payables and accrued expenses increased from **RMB 343 million** at end-2020 to **RMB 396 million**, primarily due to increased payables related to Water Supply System (Phase III) and (Phase IV) construction[30](index=30&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2021, the Group held approximately **RMB 344 million** in cash, with total borrowings increasing to **RMB 2.404 billion** to fund construction, leading to a rise in the debt-to-equity ratio to **229.2%** Cash and Borrowings (RMB) | Indicator | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and Bank Balances | Approx. RMB 344 million | Approx. RMB 230 million | | Total Borrowings | Approx. RMB 2,404 million | Approx. RMB 1,964 million | | Debt-to-Equity Ratio | 229.2% | 192.8% | - The increase in the debt-to-equity ratio is primarily due to new bank and other borrowings of approximately **RMB 440 million** for the construction of Taizhou City Water Supply System (Phase III) and (Phase IV)[30](index=30&type=chunk) [Significant Investments, Acquisitions, and Dividend Policy](index=15&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Dividend%20Policy) The company made no significant investments during the period but pursued a strategic acquisition of **45% equity stakes** in three water companies for **RMB 171 million**, while the Board decided not to declare an interim dividend - The Board did not recommend an interim dividend for the six months ended June 30, 2021[32](index=32&type=chunk) - The company agreed to acquire **45% equity stakes** in Taizhou Tap Water and Jiaobei Water Supply for a total consideration of **RMB 46.60 million**, and a **45% equity stake** in Luqiao Tap Water for **RMB 124.42 million**, with these acquisitions approved by the shareholders' meeting[32](index=32&type=chunk) [Capital Structure and Risk Management](index=16&type=section&id=Capital%20Structure%20and%20Risk%20Management) The Group's **RMB 2.404 billion** bank borrowings are secured by trade receivables and future revenue rights, with primary operations in RMB and minor unhedged foreign exchange exposure from HKD-denominated IPO proceeds - The Group's bank borrowings of approximately **RMB 2.404 billion** are collateralized by trade receivables and future revenue rights from Water Supply Systems (Phase I to IV)[35](index=35&type=chunk) - The Group primarily operates in RMB, with foreign exchange risk mainly arising from HKD-denominated IPO proceeds, recording a net foreign exchange loss of approximately **RMB 86,000** during the reporting period, with no hedging measures taken[35](index=35&type=chunk) [Events After Reporting Period](index=16&type=section&id=Events%20After%20Reporting%20Period) Post-reporting period, the company agreed to acquire a **9.375% equity stake** in Taizhou Zhuxi Reservoir Development Co., Ltd. for **RMB 75 million** and proposed issuing foreign currency bonds not exceeding **USD 200 million** - On July 15, 2021, the company agreed to acquire a **9.375% equity stake** in Taizhou Zhuxi Reservoir Development Co., Ltd. for **RMB 75 million**[36](index=36&type=chunk) - On August 25, 2021, the Board proposed issuing foreign currency bonds with a principal amount not exceeding **USD 200 million**[35](index=35&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2021, the Group employed 199 staff, with total employee benefits expenses of approximately **RMB 31.6 million**, operating under a fixed salary plus performance bonus system Employee Statistics and Welfare Expenses | Indicator | June 30, 2021 | June 30, 2020 | | :--- | :--- | :--- | | Number of Employees | 199 | 189 | | Employee Benefits Expenses (RMB) | Approx. RMB 31.6 million | Approx. RMB 26.4 million | [Use of Net Proceeds from Initial Public Offering](index=17&type=section&id=Use%20of%20Net%20Proceeds%20from%20Initial%20Public%20Offering) Of the **HKD 167.5 million** net IPO proceeds, approximately **HKD 132.8 million** has been utilized primarily for Water Supply System (Phase III) construction, with the remaining **HKD 34.71 million** planned for full use by end-2021 IPO Net Proceeds Utilization (HKD millions) | Purpose | Allocated Amount (HKD millions) | Utilized as of June 30, 2021 (HKD millions) | Unutilized Balance (HKD millions) | | :--- | :--- | :--- | :--- | | Construction of Water Supply System (Phase III) | 150.75 | 132.79 | 17.96 | | Working Capital and Others | 16.75 | 0 | 16.75 | | **Total** | **167.5** | **132.79** | **34.71** | [Other Information](index=18&type=section&id=Other%20Information) This section covers corporate governance, compliance, and interests of directors, supervisors, and shareholders [Corporate Governance and Compliance](index=18&type=section&id=Corporate%20Governance%20and%20Compliance) The company has consistently complied with the Corporate Governance Code and the Model Code for securities transactions by directors and supervisors since its listing - The company has consistently complied with the applicable provisions of the **Corporate Governance Code** during the reporting period[39](index=39&type=chunk) - All directors and supervisors have confirmed their continuous compliance with the **Model Code** during the reporting period[39](index=39&type=chunk) [Directors, Supervisors, and Shareholder Interests](index=19&type=section&id=Directors%2C%20Supervisors%2C%20and%20Shareholder%20Interests) As of June 30, 2021, Director Mr. Yang Yide held a **5.03%** stake through controlled entities, while major shareholders include various local state-owned entities and Shanghai Industrial (Group) Co., Ltd. - Director Mr. Yang Yide held **10,058,338 domestic shares** through controlled entities, representing **5.03%** of the total issued shares[40](index=40&type=chunk)[41](index=41&type=chunk) Major Shareholders (Partial) | Major Shareholder (Partial) | Nature of Holding | Share Class | Approximate Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | | Taizhou State-owned Capital Operation Group Co., Ltd. | Controlled corporate interest | Domestic Shares | 21.63% | | Taizhou Huangyan District Finance Bureau | Controlled corporate interest | Domestic Shares | 13.34% | | Taizhou Jiaojiang District Finance Bureau | Controlled corporate interest | Domestic Shares | 11.11% | | Zhejiang International Trade Group Co., Ltd. | Controlled corporate interest | Domestic Shares | 10.06% | | Shanghai Industrial (Group) Co., Ltd. | Controlled corporate interest | H Shares | 6.25% | [Interim Condensed Consolidated Financial Statements](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's interim financial statements, providing a comprehensive overview of its financial performance and position [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the company's operating results for H1 2021, showing revenue of **RMB 260 million**, gross profit of **RMB 118 million**, and a profit for the period of **RMB 68.81 million**, up **38.6%** YoY Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Item | 2021 H1 (RMB thousands) | 2020 H1 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 259,779 | 224,455 | | Cost of Sales | (141,683) | (134,085) | | **Gross Profit** | **118,096** | **90,370** | | Profit Before Tax | 92,749 | 67,242 | | Income Tax Expense | (23,942) | (17,601) | | **Profit for the Period** | **68,807** | **49,641** | [Interim Condensed Consolidated Statement of Financial Position](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the company's financial position as of June 30, 2021, with total assets of **RMB 4.069 billion**, total liabilities of **RMB 3.020 billion**, and net assets of **RMB 1.049 billion** Statement of Financial Position (RMB thousands) | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | | :--- | :--- | :--- | | **Non-Current Assets** | **3,566,873** | **3,136,413** | | Of which: Property, Plant and Equipment | 2,981,050 | 2,545,168 | | **Current Assets** | **501,736** | **366,643** | | **Total Assets** | **4,068,609** | **3,503,056** | | **Current Liabilities** | **570,291** | **442,226** | | **Non-Current Liabilities** | **2,449,364** | **2,042,327** | | Of which: Interest-Bearing Bank and Other Borrowings | 2,372,480 | 1,963,807 | | **Total Liabilities** | **3,019,655** | **2,484,553** | | **Total Equity** | **1,048,954** | **1,018,503** | [Interim Condensed Consolidated Statement of Changes in Equity](index=27&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement shows the change in shareholders' equity during H1 2021, with total equity increasing from **RMB 1.019 billion** to **RMB 1.049 billion**, driven by profit for the period offset by dividend payments - As of June 30, 2021, total equity increased from **RMB 1.019 billion** at the beginning of the period to **RMB 1.049 billion**[58](index=58&type=chunk) - The increase in equity was primarily driven by a profit for the period of **RMB 68.81 million**, partially offset by the declared final dividend of **RMB 34 million** for 2020[58](index=58&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes cash flows for the period, with **RMB 147 million** net cash inflow from operating activities, **RMB 424 million** net cash outflow from investing activities, and **RMB 391 million** net cash inflow from financing activities, resulting in a **RMB 113 million** net increase in cash and cash equivalents Statement of Cash Flows (RMB thousands) | Item | 2021 H1 (RMB thousands) | 2020 H1 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 146,728 | 48,110 | | Net Cash Flows Used in Investing Activities | (424,133) | (279,216) | | Net Cash Flows from Financing Activities | 390,896 | 321,545 | | **Net Increase in Cash and Cash Equivalents** | **113,491** | **90,439** | | **Cash and Cash Equivalents at End of Period** | **343,810** | **355,386** | [Notes to the Interim Condensed Consolidated Financial Statements](index=31&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and supplementary information for the financial statement items, crucial for understanding the company's financial position and operating results [Note 3 & 4: Operating Segments and Revenue Recognition](index=33&type=section&id=Note%203%20%26%204%3A%20Operating%20Segments%20and%20Revenue%20Recognition) The company operates a single reportable segment, water supply and pipeline installation, with all revenue and non-current assets located in mainland China, and notes a concentration of revenue from its top four customers - The Group has only one operating segment, **water supply and installation of water pipelines**, with all revenue derived from customers in mainland China[71](index=71&type=chunk)[72](index=72&type=chunk) Revenue by Type (RMB thousands) | Revenue Type | 2021 H1 (RMB thousands) | 2020 H1 (RMB thousands) | | :--- | :--- | :--- | | Water Sales | 253,019 | 221,082 | | Installation Services | 6,760 | 3,373 | | **Total** | **259,779** | **224,455** | [Note 8 & 9: Dividends and Earnings Per Share](index=37&type=section&id=Note%208%20%26%209%3A%20Dividends%20and%20Earnings%20Per%20Share) The Board did not declare an interim dividend for H1 2021, while basic and diluted earnings per share for the period were **RMB 0.30**, based on **RMB 60.89 million** profit attributable to owners of the parent company - The Board did not declare an interim dividend for the six months ended June 30, 2021[83](index=83&type=chunk) Earnings Per Share (RMB) | Indicator | 2021 H1 | 2020 H1 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent Company (RMB thousands) | 60,892 | 43,582 | | Weighted Average Number of Ordinary Shares Issued | 200,000,000 | 200,000,000 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.30** | **0.22** | [Note 11 & 14: Receivables and Borrowings](index=38&type=section&id=Note%2011%20%26%2014%3A%20Receivables%20and%20Borrowings) As of period-end, total trade receivables were **RMB 117 million**, mostly current and pledged for bank loans, while total interest-bearing bank and other borrowings amounted to **RMB 2.404 billion**, largely non-current and secured by various assets and guarantees - Trade receivables had a carrying amount of **RMB 117 million**, with **95.6% (RMB 110 million)** aged within 3 months[88](index=88&type=chunk)[90](index=90&type=chunk) - Total interest-bearing bank and other borrowings amounted to **RMB 2.404 billion**, of which **RMB 2.372 billion** were non-current liabilities[96](index=96&type=chunk) - The Group's bank and other borrowings are secured by trade receivables, future revenue rights from water supply systems, and guarantees from subsidiaries and shareholders[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Note 16: Related Party Transactions](index=42&type=section&id=Note%2016%3A%20Related%20Party%20Transactions) During the reporting period, the company's primary related party transactions involved water sales totaling **RMB 161 million**, with trade receivables from related parties amounting to **RMB 95.63 million** at period-end - Water sales to related parties were the primary related party transaction during the reporting period, totaling **RMB 161 million**[102](index=102&type=chunk) Related Party Balances (RMB thousands) | Related Party Balance | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | | :--- | :--- | :--- | | Amounts Due from Related Parties (Trade Nature) | 95,634 | 92,586 | | Amounts Due to Related Parties (Trade Nature) | 3,449 | 1,399 | [Note 18: Events After Reporting Period](index=47&type=section&id=Note%2018%3A%20Events%20After%20Reporting%20Period) This note reiterates post-reporting period events, including the approved acquisition of **45% equity stakes** in three water companies and the agreement to acquire a **9.375% equity stake** in Taizhou Zhuxi Reservoir Development Co., Ltd. for **RMB 75 million** - The resolution for the acquisition of partial equity stakes in Taizhou Tap Water, Jiaobei Water Supply, and Luqiao Tap Water was approved at the extraordinary general meeting on July 15, 2021[110](index=110&type=chunk) - On July 15, 2021, the company agreed to acquire a **9.375% equity stake** in Zhuxi Reservoir Development for **RMB 75 million**[110](index=110&type=chunk)