Financial Performance - The group recorded revenue of approximately HKD 230.6 million, an increase of approximately HKD 50.2 million or about 27.8% from HKD 180.4 million in the previous year[9]. - The after-tax profit was approximately HKD 66.2 million, a decrease of about HKD 7.1 million or approximately 9.7% compared to HKD 73.3 million in the previous year[9]. - Revenue for the reporting period was approximately HKD 230.6 million, an increase from approximately HKD 180.4 million in the same period last year[22]. - The annual profit decreased from approximately HKD 73.3 million for the year ended December 31, 2023, to about HKD 66.2 million, a reduction of approximately HKD 7.1 million or about 9.7%[45]. - The total comprehensive income for the reporting period was approximately HKD 20.3 million, down from about HKD 37.2 million for the year ended December 31, 2023[45]. - Revenue from wastewater treatment operations rose from approximately HKD 64.6 million to approximately HKD 113.5 million, an increase of about HKD 48.9 million or approximately 75.7%[33]. - The gross profit increased from approximately HKD 114.1 million to approximately HKD 176.1 million, an increase of about HKD 62.0 million or approximately 54.3%[37]. - The gross profit margin improved from approximately 63.2% to approximately 76.4%[38]. Operational Performance - The total sewage treatment volume during the reporting period was approximately 78.7 million cubic meters, a decrease of about 1.7 million cubic meters or approximately 2.1% compared to the previous year[8]. - The total daily wastewater treatment capacity is 375,000 cubic meters following the cessation of operations at the first treatment plant[22]. - All wastewater treatment plants achieved Class A discharge standards (275,000 cubic meters per day) and Class IV water standards (100,000 cubic meters per day)[22]. - The company actively complied with all national policy discharge standards and parameters during the reporting period[22]. - The company has not encountered any significant quality issues or interruptions in its wastewater treatment services during the reporting period[22]. - The company is focused on upgrading and expanding wastewater treatment facilities to meet higher discharge standards and increase design treatment capacity[22]. - The company aims to enhance operational efficiency and cost optimization in managing sewage treatment plants[13]. Future Outlook - The company anticipates challenges in the upcoming year due to the ongoing slowdown in the Chinese economy and geopolitical tensions, but maintains a positive long-term outlook as a long-term concessionaire[10]. - The group expects the sewage treatment industry outlook to remain optimistic, leading to a cautiously optimistic financial performance for the fiscal year ending December 31, 2025[14]. - The company plans to focus on finalizing new water pricing and basic water volume agreements with local authorities, which are expected to positively contribute to revenue[12]. - The company is actively seeking potential acquisitions of sewage treatment assets in Yinchuan, Ningxia, and other regions in China to strengthen its business presence[14]. Financial Position - Trade and other receivables decreased from approximately HKD 383.1 million as of December 31, 2023, to about HKD 343.5 million, a decline of approximately HKD 39.6 million or about 10.3%[48]. - Cash and bank balances increased by approximately HKD 43.6 million or about 48.4%, from about HKD 90.0 million to approximately HKD 133.6 million[50]. - Total borrowings decreased by approximately HKD 91.1 million or about 12.8%, from HKD 713.2 million to about HKD 622.1 million[52]. - The debt-to-equity ratio improved to approximately 35.4% as of December 31, 2024, compared to about 45.8% as of December 31, 2023[54]. - As of December 31, 2024, the company's distributable reserves amount to approximately HKD 593,460,000, a decrease from HKD 601,263,000 in 2023[82]. Corporate Governance - The company aims to maintain high levels of corporate governance to protect shareholder interests and enhance corporate value and accountability[123]. - The board has adopted a statement regarding the company's purpose, values, and strategies, emphasizing a strong culture for long-term business success and sustainable growth[125]. - The board consists of six directors, ensuring a balanced composition with rich corporate and strategic planning experience[140]. - The company has established a whistleblowing policy to encourage stakeholders to report misconduct confidentially and anonymously[194]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with defined responsibilities[168]. - The company has implemented monitoring procedures to ensure compliance with laws and regulations and to safeguard assets from unauthorized use[186]. Risk Management - The board has established a comprehensive risk management policy to identify, assess, and manage operational risks[138]. - The company has a robust internal control and risk management system to provide reasonable assurance against significant misstatements, losses, or fraud[128]. - The company has no internal audit function and currently believes there is no urgent need to establish one given the scale, nature, and complexity of its operations[186]. - The risk management policies and internal control procedures will be revised in response to any significant changes[189]. Shareholder Information - Over 90% of the company's revenue comes from its largest customer, Yinchuan Construction Bureau, posing a significant risk if the concession agreement is terminated[71]. - The company has a 30-year fixed-term concession agreement with Yinchuan Construction Bureau, ensuring stable cash flow as long as it meets the required wastewater treatment standards[78]. - The company did not recommend the payment of a final dividend for the year ending December 31, 2024[68]. - Major shareholders hold 750,000,000 shares each, representing 75% of the company's shares, including Lim Chee Meng and related entities[103]. Compliance and Quality Control - The company has implemented various quality control measures to ensure compliance with environmental laws and regulations in its operations[74]. - The quality control team is responsible for laboratory analysis of influent and effluent wastewater to ensure compliance with standards[132]. - The company has not faced any sanctions or penalties for non-compliance with health and safety laws during the reporting period[73]. - The company has a zero-tolerance approach towards bribery and corruption, ensuring high standards of business integrity[190].

Financial Performance - Revenue for the year ended December 31, 2024, was approximately HKD 230.6 million, an increase of about HKD 50.2 million or approximately 27.8% compared to the previous year[3] - Gross profit for the year was approximately HKD 176.1 million, representing an increase of about HKD 62.0 million or approximately 54.3% year-over-year[3] - Net profit for the year was approximately HKD 66.2 million, a decrease of about HKD 7.1 million or approximately 9.7% compared to the previous year[3] - The company reported a gross margin of approximately 76.4% for the year, up from 63.3% in the previous year[4] - Operating profit before tax was approximately HKD 82.1 million, down from HKD 90.9 million in the previous year[4] - Total comprehensive income for the year was approximately HKD 20.3 million, compared to HKD 37.2 million in the previous year[5] - Basic and diluted earnings per share for the year were HKD 0.07, unchanged from the previous year[4] Revenue Breakdown - The group reported revenue from wastewater treatment services of HKD 113,538 thousand for 2024, compared to HKD 64,554 thousand in 2023, representing an increase of 76%[15] - The revenue from special service arrangements was HKD 117,016 thousand in 2024, up from HKD 115,799 thousand in 2023, indicating a growth of 1%[15] - Total revenue for the group reached HKD 230,554 thousand in 2024, compared to HKD 180,353 thousand in 2023, reflecting an overall increase of 28%[15] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 2,149,594,000, compared to HKD 2,241,275,000 in 2023, reflecting a decrease of approximately 4.1%[6] - Total liabilities increased from HKD 770,076,000 in 2023 to HKD 882,024,000 in 2024, representing an increase of about 14.5%[7] - The company's total equity increased from HKD 1,359,251,000 in 2023 to HKD 1,379,518,000 in 2024, marking a growth of about 1.5%[6] - The company's total liabilities to equity ratio increased from 0.57 in 2023 to 0.64 in 2024, indicating a rise in financial leverage[7] Cash Flow and Financial Health - Cash and cash equivalents were reported at HKD 133,557,000 in 2024, compared to HKD 89,971,000 in 2023, representing an increase of about 48.5%[6] - The company expects sufficient operating cash flow to meet its financial obligations over the next 12 months, ensuring continued operations[9] - The company recorded a total of HKD 28,154,000 in trade payables as of December 31, 2024, compared to HKD 39,571,000 in the previous year[30] Operational Strategy - The company plans to expand its wastewater treatment services and special service arrangements in the upcoming fiscal year[3] - The company is focusing on enhancing its operational efficiency and exploring new market opportunities to drive future growth[3] - The company plans to continue focusing on the expansion and upgrading of wastewater treatment facilities in cooperation with local authorities[35] - The company is exploring potential acquisition opportunities for wastewater treatment assets in Yinchuan, Ningxia, and other regions in China[36] Accounting and Compliance - The group has begun evaluating the impact of new accounting standards and interpretations on its operations, which may lead to changes in accounting policies and disclosures[12] - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from 2024, with no significant impact on its performance and financial position[10] - The company has established an audit committee to oversee the financial reporting process, risk management, and internal controls[62] - The company has confirmed that the financial figures for the year ending December 31, 2024, have been audited and are consistent with the consolidated financial statements[63] Market Conditions - The company anticipates a slowdown in economic growth in China due to weak consumer confidence and a sluggish labor market[34] Shareholder Information - The company did not declare or pay any dividends for both fiscal years 2024 and 2023[26] - The company did not recommend the payment of a final dividend for the years ended December 31, 2024, and December 31, 2023[60] - The annual performance announcement has been published on the Hong Kong Stock Exchange website and the company's website[67] - The company expresses gratitude to shareholders for their support and to employees for their hard work and contributions[68]

TIL ENVIRO LIMITED 達力環保有限公司 (於開曼群島註冊成立的有限公司) 股份代號：1790 | --- | --- | |-------|--------------------------------| | | | | 2 | 公司資料 | | 4 | 釋義 | | 7 | 管理層討論及分析 | | 17 | 企業管治及其他資料 | | 23 | 中期財務資料的審閱報告 | | 25 | 簡明綜合收益表 | | 26 | 簡明綜合全面收益表 | | 27 | 簡明綜合財務狀況表 | | 29 | 簡明綜合權益變動表 | | 30 | 簡明綜合現金流量表 | | 31 | 簡明綜合中期財務資料附註 | | 44 | 二零一九年至二零二四年財務概要 | 公司資料 | --- | --- | |-----------------------------|----------------------------------------------------------------| | | | | 董事會 | 核數師 | | 主席兼非執行董事 | 羅兵咸永道會計師事務所 | | Lim Chin ...

Financial Performance - For the six months ended June 30, 2024, revenue was approximately HKD 111.7 million, an increase of about HKD 10.9 million or approximately 10.8% compared to HKD 100.8 million in the same period last year[1] - Gross profit for the same period was approximately HKD 82.7 million, an increase of about HKD 12.9 million or approximately 18.5% from HKD 69.8 million year-on-year[1] - Profit for the period was approximately HKD 49.9 million, up by about HKD 11.5 million or approximately 29.9% compared to HKD 38.4 million in the previous year[1] - The company reported a gross margin of approximately 74.1% for the six months ended June 30, 2024, compared to 69.2% in the same period last year[2] - The company’s earnings per share for the period was HKD 0.05, compared to HKD 0.04 in the same period last year[2] - The company reported a basic earnings per share of HKD 0.05 for the six months ended June 30, 2024, compared to HKD 0.04 for the same period in 2023, an increase of 25%[14] - Net profit for the period increased by approximately HKD 11.5 million or about 29.9% to approximately HKD 49.9 million[35] - Earnings per share increased to HKD 0.05 from HKD 0.04, primarily due to an increase in net profit attributable to shareholders[36] Revenue Sources - The wastewater treatment service revenue was HKD 53,495,000 for the six months ending June 30, 2024, compared to HKD 42,124,000 for the same period in 2023, indicating a growth of approximately 26.9%[9] - The financial income from the special service arrangement was HKD 58,176,000 for the six months ending June 30, 2024, slightly down from HKD 58,711,000 in the same period of 2023, reflecting a decrease of about 0.9%[9] - The increase in revenue was primarily due to an increase of approximately HKD 11.4 million in revenue from wastewater treatment operations, representing a growth of approximately 27.1%[27] - All revenue during the period came from customers in China[11] Assets and Liabilities - The total assets as of June 30, 2024, were HKD 2,202.3 million, a decrease from HKD 2,241.3 million as of December 31, 2023[4] - Total liabilities as of June 30, 2024, were HKD 825.6 million, down from HKD 882.0 million as of December 31, 2023[5] - The company’s cash and cash equivalents decreased to HKD 49.96 million from HKD 89.97 million year-on-year[4] - The total liabilities, including long-term and short-term borrowings, were HKD 660,368 as of June 30, 2024, down from HKD 713,157 in the previous year, a decrease of approximately 7.4%[20] - As of June 30, 2024, the group's cash and bank balance decreased by approximately HKD 40.0 million or about 44.4% to approximately HKD 50.0 million from HKD 90.0 million on December 31, 2023[39] - The group's bank borrowings as of June 30, 2024, amounted to approximately HKD 660.4 million, a decrease of about HKD 52.8 million or approximately 7.4% from HKD 713.2 million on December 31, 2023[40] - The debt-to-asset ratio as of June 30, 2024, was approximately 44.3%, down from approximately 45.8% on December 31, 2023[42] Operational Insights - The company aims to expand its market presence and enhance its service offerings in the upcoming quarters[1] - The company is focusing on new product development and technological advancements to drive future growth[1] - The company plans to focus on expansion and upgrades of wastewater treatment facilities in the second half of 2024, including new basic water volume agreements with local authorities[25] - The company is exploring potential acquisition opportunities for wastewater treatment assets in Ningxia and other regions in China to strengthen its market presence[26] - The company is committed to optimizing costs and enhancing the efficiency of wastewater treatment plants in accordance with the standards set in the concession agreements with the local government[25] Financial Management - The board believes that the group has sufficient operating funds to meet its financial obligations due within the next twelve months[6] - The group continues to adopt a going concern basis in preparing its interim financial information[6] - The board has assessed that the adoption of new accounting standards and interpretations will not have a significant impact on the group's performance and financial position[7] - The group is currently evaluating the impact of new accounting standards that will be mandatory from January 1, 2025, and beyond[8] - The group expects to generate positive cash flows from its business operations, including the collection of trade receivables and other receivables[6] Cost Management - Financing costs decreased by approximately HKD 2.5 million during the reporting period, contributing to the increase in after-tax profit[24] - Sales cost decreased by approximately HKD 2.0 million or about 6.5% to approximately HKD 29.0 million for the six months ended June 30, 2023[28] - General and administrative expenses decreased by approximately HKD 0.4 million or about 5.9% to approximately HKD 6.4 million, mainly due to reduced employee benefits expenses[32] - Financing costs decreased by approximately HKD 2.5 million or about 14.6% to approximately HKD 14.6 million, primarily due to lower borrowing interest expenses[33] Taxation and Other Income - Immediate income tax expense increased to HKD 8,777 from HKD 5,132 year-over-year, a rise of approximately 71.5%[12] - Income tax expenses increased by approximately HKD 4.1 million or about 49.4% to approximately HKD 12.4 million, with an effective tax rate rising from 17.7% to 19.9%[34] - Other income decreased by approximately HKD 0.2 million or about 18.2% to approximately HKD 0.9 million, mainly due to a reduction in interest income[30] - Net other losses increased by approximately HKD 0.05 million or about 23.8% to approximately HKD 0.26 million, primarily due to unfavorable currency fluctuations[31] Corporate Governance - The group has adhered to the corporate governance code as per the listing rules during the reporting period[45] - The audit committee has reviewed the group's unaudited interim results for the reporting period[47] - The group has no significant contingent liabilities or unresolved litigation as of June 30, 2024[44] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[44] - There are no significant subsequent events reported after the reporting period[49] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[50]

Financial Performance - The profit after tax for the reporting period was approximately HKD 73.3 million, an increase of about HKD 5.2 million or approximately 7.6% compared to HKD 68.1 million in 2022[26]. - The company recorded revenue of approximately HKD 180.4 million, a decrease of about HKD 33.0 million or 15.5% compared to HKD 213.4 million in 2022[38]. - Revenue from wastewater treatment operations decreased from approximately HKD 91.1 million for the year ended December 31, 2022, to approximately HKD 64.6 million during the reporting period, a decrease of about HKD 26.5 million or approximately 29.1%[61]. - The group recorded revenue and profit after tax of approximately HKD 180.4 million and HKD 73.3 million, respectively, with revenue decreasing by approximately HKD 33.0 million or about 15.5% compared to HKD 213.4 million in the same period last year[77][85]. - The gross profit margin decreased from approximately 67.7% for the year ended December 31, 2022, to approximately 63.2% during the reporting period[87]. - Other income decreased by approximately HKD 0.8 million or about 24.2% to approximately HKD 2.5 million, mainly due to a reduction in interest income[88]. - The company's revenue from wastewater treatment operations decreased, resulting in a gross profit reduction from approximately HKD 144.4 million to about HKD 114.1 million, a decline of approximately 21.0%[110]. - The total comprehensive income for the reporting period was approximately HKD 37.2 million, compared to a total comprehensive loss of approximately HKD 42.0 million for the year ended December 31, 2022[91]. - The net profit for the year increased by approximately HKD 5.2 million or 7.7% to about HKD 73.3 million from approximately HKD 68.1 million[115]. Operational Highlights - The total sewage treatment volume during the reporting period was approximately 80.4 million cubic meters, an increase of about 1.8 million cubic meters or approximately 2.3% compared to 78.6 million cubic meters for the year ended December 31, 2022[25]. - The total daily wastewater treatment capacity is 375,000 cubic meters, with all treatment plants meeting Class A discharge standards (275,000 cubic meters daily) and Class IV water standards (100,000 cubic meters daily)[52]. - There were no significant quality issues or interruptions in wastewater treatment services during the reporting period[53]. - The company aims to enhance operational stability and efficiency in wastewater treatment plants while optimizing costs[42]. - The company plans to continue upgrading and expanding wastewater treatment facilities to meet higher discharge standards[75]. Strategic Initiatives - The company is focusing on expanding/upgrading new water pricing and treatment plants, which is expected to positively contribute to revenue[30]. - The company is actively seeking potential acquisitions of wastewater treatment assets in Yinchuan, Ningxia, and other regions in China to strengthen its business[31]. - The group is exploring potential acquisition opportunities for wastewater treatment assets in Yinchuan, Ningxia, and other regions in China to strengthen its presence in the region[81]. - The group plans to focus on expanding and upgrading new water pricing and treatment facilities in collaboration with local authorities in 2024[80]. Economic Outlook - The anticipated economic growth in China for 2024 is approximately 4.6%, marking the slowest expansion rate in over thirty years, excluding pandemic-affected years[41]. - The Chinese economy is expected to grow by approximately 4.6% in 2024, with further monetary policy easing anticipated to partially offset economic slowdown[57]. - The company maintains a cautiously optimistic outlook for its financial performance for the fiscal year ending December 31, 2024[65]. Financial Position - Cash and bank balances increased by approximately HKD 8.1 million or about 9.9% to approximately HKD 90.0 million, primarily due to the collection of wastewater treatment service fees amounting to approximately HKD 216.6 million during the reporting period[95]. - Financing costs decreased by approximately HKD 6.2 million or about 15.9% to approximately HKD 32.9 million, mainly due to a reduction in interest expenses from repaying bank loans[89]. - The total amount of receivables under the franchise service arrangement increased from approximately HKD 1,750.6 million to HKD 1,757.4 million, an increase of about HKD 6.8 million or 0.4%[116]. - The company's cash and bank balances decreased from approximately HKD 799.7 million to HKD 713.2 million, representing a reduction of about HKD 86.5 million or 10.8%[117]. - As of December 31, 2023, the company's debt-to-equity ratio was approximately 45.8%, down from 54.3% as of December 31, 2022[141]. - As of December 31, 2023, the company's distributable reserves amount to approximately HKD 601,263,000, a slight decrease from HKD 605,361,000 in 2022[177]. Employee and Governance - The company has 129 full-time employees, an increase from 127 in the previous year, with compensation based on various factors[124]. - Employee benefits expenses for the year ended December 31, 2023, were approximately HKD 20.8 million, a decrease from HKD 22.0 million in 2022[145]. - The company has implemented a stock option plan for its directors and employees, promoting retention and performance[145]. - The company has a policy to review employee performance annually to determine bonus levels, salary adjustments, and promotions[173]. - The company's board of directors includes Lim Chin Sean as chairman and other members with various roles[184]. Compliance and Risk Management - The company has established comprehensive workplace safety policies to comply with national and local health and safety laws[153]. - The company has no major issues regarding compliance with health and safety regulations[168]. - The company has received annual confirmations regarding compliance with non-competition commitments from the relevant parties as of December 31, 2023[199]. - The independent non-executive directors have reviewed the compliance status of the non-competition commitments by the relevant parties[199]. - The company has a risk of not renewing its franchise agreement, which could significantly impact its business and financial condition[152]. Shareholder Information - The company has issued 250,000,000 shares at a price of HKD 0.58 per share, raising approximately HKD 104.7 million after expenses[142]. - The company has not proposed any final dividends for the year ending December 31, 2023[129]. - There were no significant acquisitions or investments during the year ended December 31, 2023[146][147]. - The company has not entered into any significant transactions or arrangements that may compete with its business as of December 31, 2023[198]. - There are no outstanding stock options granted under the stock option plan during the reporting period[191]. - The company has a stock option plan that allows for a maximum of 100,000,000 shares to be issued, representing 10% of the total shares issued at the time of listing[189].

Financial Performance - Total revenue for the year was approximately HKD 180.4 million, a decrease of about HKD 33.0 million or approximately 15.5% compared to the previous year of HKD 213.4 million[36] - Gross profit for the year was approximately HKD 114.1 million, down by about HKD 30.3 million or approximately 21.0% from HKD 144.4 million in the previous year[36] - Net profit for the year was approximately HKD 73.3 million, an increase of about HKD 5.2 million or approximately 7.6% compared to HKD 68.1 million in the previous year[36] - The company reported a net comprehensive income of HKD 37.2 million, compared to a loss of HKD 42.0 million in the previous year[38] - The annual profit increased by approximately HKD 5.2 million or about 7.6% to approximately HKD 73.3 million during the reporting period, compared to approximately HKD 68.1 million as of December 31, 2022[85] Revenue Sources - Revenue from wastewater treatment services was HKD 64.5 million, down from HKD 91.1 million in the previous year[46] - Revenue from special service arrangement was HKD 115.8 million, a decrease from HKD 122.3 million in the previous year[46] - All revenue in 2023 was derived from customers in China, with all non-current assets primarily located in China[16] Expenses and Costs - Interest income decreased to HKD 1,870,000 in 2023 from HKD 2,285,000 in 2022, a decline of 18.14%[2] - Total other income decreased to HKD 2,519,000 in 2023 from HKD 3,274,000 in 2022, a decrease of 23.06%[2] - Operating costs for wastewater treatment decreased from approximately HKD 48.6 million to about HKD 45.0 million, a reduction of approximately HKD 3.6 million or 7.4%[80] - The company's sales cost decreased from approximately HKD 69.0 million to about HKD 66.2 million, a reduction of approximately HKD 2.8 million or 4.1% due to lower wastewater treatment operating costs[62] - Financing costs decreased from approximately HKD 39.1 million to about HKD 32.9 million, a reduction of approximately HKD 6.2 million or 15.9%, mainly due to lower market interest rates and repayment of bank loans[67] Assets and Liabilities - The total assets of the company as of the end of the reporting period were HKD 2,241,275,000, down from HKD 2,311,423,000 in the previous year[49] - Total liabilities decreased from HKD 989,392,000 to HKD 882,024,000, reflecting a reduction of approximately 10.9%[49] - The company's retained earnings increased from HKD 689,807,000 to HKD 763,067,000, an increase of approximately 10.6%[48] - Long-term borrowings decreased from HKD 510,981,000 to HKD 451,271,000, a reduction of approximately 11.7%[49] - The asset-to-liability ratio was approximately 45.8% as of December 31, 2023, down from approximately 54.3% as of December 31, 2022[119] Taxation - The company recorded a current income tax expense of HKD 15,769,000, an increase of 74.5% compared to HKD 9,054,000 in the previous year[21] - The actual tax rate decreased to approximately 19.5% during the reporting period, down from 21.4% due to a reduction in non-deductible expenses[84] Dividends - The group did not declare any dividends for the year ending December 31, 2023, compared to a mid-term dividend of HKD 0.05 per share totaling HKD 50,000,000 in 2022[4] - The company did not recommend the payment of a final dividend for the years ended December 31, 2023, and December 31, 2022[94] Government Support - Government subsidies increased to HKD 46,000 in 2023 from HKD 12,000 in 2022, representing a 283.33% increase[2] Future Outlook - The company anticipates that consumer spending will weaken due to increased economic uncertainty, impacting future growth prospects[54] - The company forecasts China's economy to grow by approximately 4.6% in 2024, the slowest expansion in over thirty years excluding pandemic-affected years[75] - The company's strategy for 2024 focuses on expanding and upgrading new water pricing and treatment facilities in collaboration with local authorities[75] Operational Highlights - The total volume of wastewater processed during the reporting period was approximately 80.4 million cubic meters, an increase of about 1.8 million cubic meters or approximately 2.3% from 78.6 million cubic meters in the previous year[43] - The daily total wastewater treatment capacity was 375,000 cubic meters, with all treatment plants meeting Class A discharge standards (275,000 cubic meters per day) and Class IV water standards (100,000 cubic meters per day)[34] - The company has been operating and managing wastewater treatment facilities in Ningxia since September 2011 under a 30-year TOT model[34] - The company plans to upgrade and expand wastewater treatment facilities to meet higher discharge standards and increase design capacity[34] Compliance and Governance - The company has complied with all applicable corporate governance codes as per the listing rules during the reporting period[100] - The audit committee reviewed the consolidated annual performance of the group for the financial year ended December 31, 2023[126] - The company confirmed that all directors have fully complied with the standards set out in the securities trading guidelines during the reporting period[104] Shareholder Relations - The company expressed heartfelt gratitude to shareholders for their support and to employees for their hard work and contributions during the year 2023[106]

Financial Performance - The company reported a revenue of HKD 250 million for the first half of 2023, representing a 15% increase compared to the same period in 2022[10]. - Revenue for the reporting period was approximately HKD 100.8 million, a decrease of about 4.7% from approximately HKD 105.8 million in the same period last year[22]. - Total revenue for the six months ended June 30, 2023, was HKD 100,835,000, a decrease of 4.5% from HKD 105,788,000 in the same period of 2022[79]. - Operating profit for the same period was HKD 63,875,000, slightly down from HKD 64,243,000, reflecting a decrease of 0.6%[79]. - Net profit for the six months ended June 30, 2023, was HKD 38,413,000, an increase of 10.1% compared to HKD 34,668,000 in 2022[79]. - The after-tax profit for the reporting period was approximately HKD 38.4 million, an increase from approximately HKD 34.7 million in the same period last year[14]. - Basic and diluted earnings per share increased to HKD 0.04 from HKD 0.03, representing a growth of 33.3%[79]. - The company reported a comprehensive loss of HKD 22,165,000 for the period, an improvement from a loss of HKD 29,798,000 in the previous year[80]. - The group faced a foreign exchange loss of HKD 60,578,000 during the six months ended June 30, 2023, contributing to an overall comprehensive loss of HKD 22,165,000 for the period[84]. User and Market Growth - User data showed an increase in active users by 20% year-over-year, reaching 1.5 million active users as of June 30, 2023[10]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[10]. - The company provided a future outlook, projecting a revenue growth of 10-12% for the second half of 2023[10]. Cost Management and Efficiency - The management emphasized the importance of maintaining operational efficiency, aiming for a 5% reduction in operational costs by the end of 2023[10]. - Operating costs for wastewater treatment decreased by approximately HKD 2.6 million, contributing to the increase in after-tax profit[15]. - Financing costs decreased by approximately HKD 3.5 million during the reporting period[15]. - General and administrative expenses decreased by approximately HKD 0.6 million or 8.1% to about HKD 6.8 million, primarily due to a reduction in employee benefits expenses of about HKD 0.9 million[30]. Investments and Acquisitions - A strategic acquisition of a local competitor was completed, which is expected to enhance the company's service capabilities and increase revenue by approximately HKD 50 million annually[10]. - The company plans to invest HKD 100 million in research and development over the next two years to innovate new technologies[10]. - The company is exploring potential acquisition opportunities for wastewater treatment assets in Ningxia and other regions of China[18]. Sustainability and Innovation - The company has initiated a new sustainability strategy aimed at reducing carbon emissions by 40% by 2025[10]. - New product development includes the launch of an advanced wastewater treatment technology expected to reduce operational costs by 25%[10]. - The company is focusing on upgrading and expanding wastewater treatment facilities in collaboration with local authorities[17]. Financial Position and Assets - Total assets as of June 30, 2023, were HKD 2,187,014,000, down from HKD 2,311,423,000 at the end of 2022, a decrease of 5.4%[83]. - Total liabilities decreased to HKD 887,148,000 from HKD 989,392,000, reflecting a reduction of 10.4%[83]. - Cash and bank balances increased by approximately HKD 58.7 million or 71.7% to about HKD 140.6 million, driven by the collection of wastewater treatment service fees[38]. - The group’s retained earnings increased to HKD 728,220,000 as of June 30, 2023, up from HKD 656,348,000 as of June 30, 2022, reflecting a growth of approximately 10.9%[84]. Corporate Governance - The company has established an audit committee to oversee financial reporting procedures and risk management systems[65]. - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[68]. - The company aims to maintain high standards of corporate governance to enhance shareholder value[68]. Shareholder Information - Major shareholders include Lim Chee Meng and Lim Chin Sean, each holding 750 million shares, representing 75% of the company's equity[57]. - The board did not recommend an interim dividend for the six months ending June 30, 2023, compared to HKD 50.0 million for the same period in 2022[51]. - The group did not declare or pay any dividends for the six months ended June 30, 2023, compared to HKD 50,000,000 in dividends declared in the same period of 2022[113].

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之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 TIL ENVIRO LIMITED 達 力 環 保 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1790） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 未 經 審 核 中 期 業 績 公 告 財務摘要 • 截至二零二三年六月三十日止六個月，收益約為100.8百萬港元，較 去年同期的105.8百萬港元減少約5.0百萬港元或約4.7%。 • 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月，毛 利 約 為69.8百 萬 港 元，較 去年同期的71.6百萬港元減少約1.8百萬港元或約2.5%。 • 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月，溢 利 約 為38.4百 萬 港 元，較 去年同期的34.7百萬港元增加約3.7百萬港元或約10.7%。 達力環保有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（ ...

Financial Performance - The company's revenue from wastewater treatment operations decreased from approximately HKD 113.0 million for the year ended December 31, 2021, to about HKD 91.1 million during the reporting period, a decline of approximately HKD 21.9 million or 19.4%[6]. - The company recorded a revenue of approximately HKD 213.4 million, a decrease of about HKD 35.1 million or 14.1% from HKD 248.5 million in 2021[11]. - Net profit after tax for the reporting period was approximately HKD 68.1 million, a decrease of about HKD 47.2 million or 40.9% from HKD 115.3 million in 2021[11]. - The group's revenue for the reporting period was HKD 213.4 million, a decrease of approximately 14.1% from HKD 248.5 million in the previous year[45]. - The profit after tax for the reporting period was HKD 68.1 million, down from HKD 115.3 million in the previous year, representing a decline of approximately 40.8%[42]. - The decrease in revenue was primarily due to a fair value loss of approximately HKD 21.9 million related to sewage treatment operations, attributed to COVID-19 restrictions in Yinchuan[39]. Wastewater Treatment Operations - Total wastewater processed during the reporting period was approximately 78.6 million cubic meters, a decrease of about 23.9% compared to approximately 103.3 million cubic meters for the year ended December 31, 2021[9]. - The total volume of wastewater treated during the reporting period was approximately 78.6 million cubic meters, a decrease of about 23.9% compared to approximately 103.3 million cubic meters for the year ended December 31, 2021, primarily due to the cessation of operations at the first treatment plant[33]. - The remaining three wastewater treatment plants experienced an increase in total wastewater treatment volume of approximately 2.0 million cubic meters or about 2.6% during the reporting period, attributed to higher overall inflow of wastewater[33]. - As of December 31, 2022, the total daily wastewater treatment capacity was 375,000 cubic meters, meeting Class A discharge standards (275,000 cubic meters daily) and Class IV water standards (100,000 cubic meters daily)[33]. - The total sewage processed during the reporting period was approximately 215,441 cubic meters per day, which is about 14,559 cubic meters less than the forecasted amount of 230,000 cubic meters per day[48]. Strategic Plans and Outlook - The company plans to continue focusing on potential acquisitions of wastewater treatment assets in Yinchuan, Ningxia, and other regions in China to strengthen its business presence[16]. - The company expects to improve its revenue through new water pricing agreements and expansion projects for its treatment plants[15]. - The company aims to enhance operational stability and efficiency in wastewater treatment plants while focusing on cost optimization[15]. - The group plans to focus on upgrading and expanding existing sewage treatment facilities in collaboration with local authorities, particularly regarding new water pricing and basic water volume agreements[36]. - The company maintains a cautiously optimistic outlook for its financial performance for the fiscal year ending December 31, 2023, despite external challenges[16]. Operational Efficiency and Cost Management - The company aims to enhance operational efficiency and cost optimization while managing cash flow carefully during the ongoing impact of COVID-19[37]. - Operating costs for sewage treatment increased from approximately HKD 47.7 million to about HKD 48.6 million, an increase of approximately HKD 0.9 million or 1.9%, primarily due to a rise in chemical costs by about HKD 3.6 million[57]. - Gross profit decreased from approximately HKD 209.9 million to about HKD 144.4 million, a reduction of approximately HKD 65.5 million or 31.2%, with the gross profit margin declining from 84.5% to 67.7%[58]. Cash Flow and Financial Position - Cash and bank balances decreased by approximately HKD 6.1 million or about 6.9%, totaling approximately HKD 81.9 million as of December 31, 2022, primarily due to the payment of interim dividends of HKD 50.0 million[72]. - The net current assets and total assets as of December 31, 2022, were approximately HKD 403.5 million and HKD 1,322.0 million, respectively, compared to HKD 439.0 million and HKD 1,414.0 million in 2021[75]. - The debt-to-equity ratio as of December 31, 2022, was approximately 54.3%, down from 56.1% in 2021[76]. Compliance and Regulatory Matters - The company actively complied with all national policy discharge standards and parameters throughout the year, with no significant quality issues or interruptions reported in wastewater treatment services[33]. - The company has implemented measures to comply with Chinese environmental laws and regulations, with no claims or fines received during the reporting period for non-compliance[171]. - The company has established comprehensive workplace safety policies and guidelines to comply with national and local health and safety laws in China[161]. Customer and Supplier Relationships - Over 90% of the company's revenue comes from its largest customer, the Yinchuan Construction Bureau, indicating a significant dependency on this client[160]. - Purchases from the group's five largest suppliers accounted for approximately 88% of total purchases, with the largest supplier accounting for about 29%[111]. - Sales to the group's five largest customers accounted for approximately 100% of total sales, with the largest customer also accounting for about 100%[113]. Employee and Management Matters - Employee benefits expenses for the year ended December 31, 2022, were approximately HKD 22.0 million, an increase from HKD 21.1 million in 2021[88]. - The company has a structured employee compensation package that includes basic salary, overtime pay, bonuses, and retirement benefits, with annual performance reviews[173]. - The company has taken proactive health measures for employees during the COVID-19 pandemic, allowing 50% of office staff to work from home during restrictions[164]. Risks and Challenges - The external demand slowdown poses a challenge to the group's recovery and growth prospects in the coming year[36]. - The company is facing risks related to the potential early termination of its concession agreements, which could adversely affect its business and financial condition[160]. - The fair value loss for the reporting period was approximately HKD 12.0 million, significantly impacted by the operational challenges due to COVID-19[46].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 TIL ENVIRO LIMITED 達 力 環 保 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1790） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 年 度 業 績 公 告 財務摘要 • 年內收益約為213.4百萬港元，較上一年度的約248.5百萬港元同比減 少約35.1百萬港元或約14.1%。 • 年內毛利約為144.4百萬港元，較上一年度的約209.9百萬港元同比減 少約65.5百萬港元或約31.2%。 • 年 內 溢 利 約 為68.1百 萬 港 元，較 上 一 年 度 的 約115.3百 萬 港 元 同 比 減 少約47.2百萬港元或約40.9%。 年度業績 達力環保有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 ...