Core Viewpoint - The company reported a decline in revenue and a net loss for the six months ending June 30, 2025, primarily due to reduced income from oilfield services and hazardous waste incineration solutions [1] Financial Performance - The company's revenue for the six months ending June 30, 2025, was RMB 80.7 million, a decrease of 10.6% compared to the same period in 2024 [1] - The net loss for the same period was RMB 9.9 million, resulting in a net loss margin of 12.3% [1] - Basic and diluted loss per share attributable to shareholders was RMB 0.551 [1] Business Segments - The decline in revenue was mainly attributed to decreased income from oilfield surrounding services and hazardous waste incineration disposal solutions [1]

Financial Performance - For the six months ended June 30, 2025, the Group's revenue was RMB 80.7 million, a decrease of 10.6% compared to RMB 90.3 million for the same period in 2024[2][3][12]. - The gross profit for the same period was RMB 16.2 million, with a gross profit margin of 20.1%, representing a decrease of 38.6% in gross profit and a decline of 9.2 percentage points in margin compared to the previous year[3][12]. - The Group recorded a net loss of RMB 9.9 million, resulting in a net loss margin of 12.3%, compared to a net loss of RMB 4.8 million and a margin of 5.3% for the same period in 2024[4][12]. - Loss attributable to owners of the Company was RMB 7.3 million, an increase from RMB 5.3 million in the prior year[5][12]. - Basic and diluted loss per share attributable to owners of the Company was RMB 0.551 cents, compared to RMB 0.395 cents for the same period in 2024[6][12]. - The loss before tax for the period was RMB 8,700,000, compared to a loss of RMB 4,388,000 in the same period last year, indicating a worsening financial position[32]. - For the six months ended June 30, 2025, the company reported a loss before tax of RMB 7,341,000, compared to a loss of RMB 5,267,000 for the same period in 2024, representing an increase in loss of approximately 39.4%[55]. - Income tax expense increased to RMB 1,186,000 in 2025 from RMB 411,000 in 2024, reflecting higher tax obligations despite losses[45]. Assets and Liabilities - Non-current assets as of June 30, 2025, amounted to RMB 320.9 million, an increase from RMB 309.9 million at the end of 2024[14][15]. - Current assets totaled RMB 442.0 million as of June 30, 2025, down from RMB 463.8 million at the end of 2024[14][15]. - Current liabilities totaled RMB 258,460,000, down from RMB 276,763,000, indicating a reduction of 6.6%[16]. - Non-current liabilities increased significantly to RMB 41,702,000 from RMB 24,877,000, representing a rise of 67.5%[16]. - Borrowings under current liabilities rose to RMB 43,348,000, up 10.4% from RMB 39,311,000[16]. - The company reported a total of RMB 504,449,000 in total assets less current liabilities, reflecting an increase of 1.1% from RMB 496,910,000[16]. - As of June 30, 2025, the Group's total assets were approximately RMB 762.9 million, with total liabilities of RMB 300.2 million, resulting in a debt-to-asset ratio of approximately 39.3%[142]. Revenue Breakdown - The solid waste treatment segment reported external sales of RMB 32,357,000, down from RMB 36,872,000, reflecting a decline of 13.6%[32]. - The oilfield auxiliary services segment generated revenue of RMB 48,352,000, a decrease of 9.9% from RMB 53,472,000 in the previous year[37]. - The hazardous waste incineration solutions segment saw revenue drop to RMB 10,994,000 from RMB 17,939,000, a decrease of 38.8%[37]. - Revenue from hazardous waste incineration solutions decreased by 38.5% from RMB 17.9 million for the six months ended June 30, 2024, to RMB 11.0 million for the same period in 2025[82]. - Revenue from oilfield auxiliary services decreased by 9.5% from RMB 53.5 million for the six months ended June 30, 2024, to RMB 48.4 million for the same period in 2025[83]. - Revenue from cement plant parallel kiln co-treatment services increased by 48.0% from RMB 12.3 million for the six months ended June 30, 2024, to RMB 18.2 million for the same period in 2025[84]. - Revenue from oil sludge thermal desorption treatment services decreased by 93.2% from RMB 5.9 million for the six months ended June 30, 2024, to RMB 0.4 million for the same period in 2025[85]. - Revenue from other services increased by 250.0% from RMB 0.8 million for the six months ended June 30, 2024, to RMB 2.8 million for the same period in 2025[86]. Expenses and Costs - The Group's administrative expenses were RMB 25.2 million, a decrease from RMB 27.1 million in the previous year[12]. - Total depreciation and amortization expenses for the first half of 2025 amounted to RMB 23,061,000, significantly higher than RMB 9,134,000 in the first half of 2024, indicating an increase of approximately 153.5%[55]. - Research and development costs increased to RMB 4,847,000 in the first half of 2025, up from RMB 3,336,000 in the same period of 2024, reflecting a growth of approximately 45.3%[55]. - Cost of services increased by 0.9% from RMB 63.9 million to RMB 64.5 million, mainly due to increased revenue from cement plant parallel kiln co-treatment services[89]. - The gross profit of hazardous waste incineration solutions decreased by 35% from RMB 11.7 million to RMB 7.6 million, mainly due to a 38.5% drop in revenue[104]. - The gross profit of oilfield auxiliary services decreased by 27.8% from RMB 9.0 million to RMB 6.5 million, primarily due to a 9.5% decrease in revenue[102]. - The gross profit of cement plant parallel kiln co-treatment services increased by 5.6% from RMB 3.6 million to RMB 3.8 million, attributed to a 48.0% increase in revenue[103]. Corporate Governance and Compliance - The financial statements are prepared in accordance with International Accounting Standards, ensuring compliance with applicable disclosure requirements[21]. - The company has established written guidelines to regulate dealings by relevant employees who may possess inside information regarding the company's securities[165]. - The company has fully complied with the corporate governance code provisions during the reporting period[163]. - The Audit Committee has reviewed the interim results for the six months ended June 30, 2025[176]. Future Outlook and Strategy - The Group plans to enhance its market position in hazardous waste incineration by improving treatment techniques and expanding customer relationships both domestically and internationally[148]. - The Group aims to capitalize on the growing demand for solid waste treatment driven by national policies supporting the industry, including initiatives for "Waste-Free City" and comprehensive utilization of bulk solid waste[144]. - The Group will explore new solid waste treatment applications, including waste plastics and waste paper residues, through the industrialization of pyrolysis technology[150]. - The Group intends to adopt various project models to enhance competitiveness and risk management in solid waste treatment projects, including the operation and maintenance services project in Karamay[151]. - The Group will actively explore the application of artificial intelligence in environmental technology to improve operational efficiency and environmental data analysis capabilities[152]. - The Group's capital strength will be leveraged to enter the solid waste treatment sector through technology cooperation, investment, and mergers and acquisitions, aiming to build an integrated environmental industry group[156]. Employee and Remuneration - The Group employed 392 employees as of June 30, 2025, an increase from 341 employees as of December 31, 2024, with over 250 personnel dedicated to R&D and project management[157]. - The Group's remuneration policy considers individual performance and market levels, with a focus on attracting and retaining skilled personnel in R&D and project execution[158]. Capital and Funding - The company raised approximately HK$259.4 million (around RMB 227.2 million) from its global offering, utilizing RMB 217.1 million, which represents approximately 95.6% of the net proceeds as of June 30, 2025[167]. - The company has reallocated unutilized net proceeds for establishing a research and engineering center, extending the expected utilization timeline from the second half of 2024 to the second half of 2026[172]. - The total utilized amount of net proceeds as of June 30, 2025, is RMB 217.1 million, with an unutilized amount of RMB 10.1 million remaining[174]. Dividends - The company did not declare or pay any dividends for the six months ended June 30, 2025, consistent with the previous year[52]. - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2025[175].

Core Viewpoint - The company, Weigang Environmental Technology (01845.HK), has scheduled a board meeting on August 21, 2025, to consider and approve its interim results for the six months ending June 30, 2025, and to discuss the potential declaration of an interim dividend, if applicable [1] Group 1 - The board meeting is set for August 21, 2025 [1] - The meeting will focus on the approval of the company's interim results for the six months ending June 30, 2025 [1] - The company will also consider the declaration of an interim dividend during this meeting [1]

Weigang Environmental Technology Holding Group Limited 維 港 環 保 科 技 控 股 集 團 有 限 公 司 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。 香港，2025年8月11日 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：1845） 於本公告日期，董事會包括執行董事蔡珠華先生、董紅暉先生、李開顏先生及辜淳彬先生； 以及獨立非執行董事遲維君先生、肖輝先生及肖金桂女士。 董事會會議日期 維港環保科技控股集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，謹訂 於2025年8月21日（星期四）舉行董事會會議，藉以（其中包括）考慮及批准本公司及其附屬 公司截至2025年6月30日止六個月之中期業績及其發佈，以及考慮派付中期股息（如有）。 承董事會命 維港環保科技控股集團有限公司 董事長 蔡珠華 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01845 | 說明 | 普通股 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,333,335,000 | | | | 1,333,335,000 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 1,333,335,000 | | 0 | | 1,333,335,000 | 公司名稱: 维港环保科技控股集团有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | ...

Financial Performance - For the year ended 31 December 2024, the Group's revenue amounted to RMB241.6 million, representing a decrease of 4.7% compared to the year ended 31 December 2023[17]. - The Group recorded a gross profit of RMB58.0 million for the year ended 31 December 2024, with a stable gross profit margin of 24.0%[17]. - The net loss for the year ended 31 December 2024 was RMB55.3 million, resulting in a net loss margin of 22.9%, compared to a net loss of RMB1.3 million and a margin of 0.5% for the previous year[18]. - Loss attributable to owners of the Company was RMB48.6 million for the year ended 31 December 2024, compared to a profit of RMB1.8 million for the year ended 31 December 2023[18]. - Basic loss per share attributable to owners of the Company amounted to RMB0.036 for the year ended 31 December 2024, compared to basic earnings per share of RMB0.001 for the previous year[19]. - In 2024, the Group's revenue was RMB 241,618,000, a decrease of 4.9% compared to RMB 253,450,000 in 2023[22]. - The Group reported a gross profit of RMB 58,027,000, down from RMB 60,726,000 in 2023, reflecting a gross margin decline[22]. - The loss before income tax for 2024 was RMB 56,761,000, compared to a profit of RMB 680,000 in 2023[22]. - The total assets as of December 31, 2024, were RMB 773,673,000, a decrease from RMB 843,157,000 in 2023[22]. - The Group's equity attributable to owners decreased to RMB 372,344,000 in 2024 from RMB 421,127,000 in 2023[22]. - The Group recorded a net loss of RMB 55.3 million for the year ended December 31, 2024, with a net loss margin of 22.9%, compared to a net loss of RMB 1.3 million and a margin of 0.5% in 2023[90]. Project Development - As of 31 December 2024, the Group has completed 51 hazardous waste incineration projects with an aggregate designed disposal capacity of 1,222,500 tonnes per annum[5]. - The Group has 5 ongoing hazardous waste incineration projects with an aggregate designed disposal capacity of 131,000 tonnes per annum[5]. - The Group completed 8 hazardous waste incineration projects in 2024, increasing the designed disposal capacity by approximately 179,000 tonnes per annum[33]. - The company completed hazardous waste incineration projects with a total designed disposal capacity of 179,000 tonnes per annum in 2024[37]. - Ongoing hazardous waste incineration projects as of December 31, 2024, have a total designed disposal capacity of 131,000 tonnes per annum[40]. - The company constructed an oil sludge thermal desorption treatment project with a designed treatment capacity of 200,000 tonnes per year, which began trial operation in March 2024[42]. - The company is developing a pyrolysis project with a designed disposal capacity of 220,000 tonnes per year, expected to commence trial operation in Q2 2025[46]. Revenue Breakdown - Revenue from oilfield auxiliary services increased by 24.3% to RMB156.4 million in 2024, up from RMB125.8 million in 2023[41]. - Revenue from hazardous waste incineration solutions decreased by 62.6% to RMB38.4 million in 2024, down from RMB102.7 million in 2023[53]. - Revenue from cement plant parallel kiln co-treatment services surged by 115.4% from RMB 14.3 million in 2023 to RMB 30.8 million in 2024, attributed to operations in Yunfu and Maoming projects[56]. - The overall revenue for the company decreased by 4.7% from RMB253.5 million in 2023 to RMB241.6 million in 2024[51]. - Revenue decreased by 4.7% from RMB 253.5 million for the year ended December 31, 2023, to RMB 241.6 million for the year ended December 31, 2024[55]. - Oilfield auxiliary services revenue increased by 24.3% from RMB 125.8 million in 2023 to RMB 156.4 million in 2024, driven by higher demand in the Karamay oilfield[55]. Cost and Expenses - Cost of services decreased by 4.7% from RMB 192.7 million in 2023 to RMB 183.6 million in 2024, mainly due to lower revenue from hazardous waste incineration[59]. - Administrative expenses increased by 6.5% from RMB 55.4 million in 2023 to RMB 59.0 million in 2024, remaining relatively steady[75]. - Research and development costs rose by 11.6% from RMB 11.2 million for the year ended December 31, 2023, to RMB 12.5 million for the year ended December 31, 2024, reflecting a focus on key technologies[81]. - Impairment losses on property, plant, and equipment amounted to RMB 28.8 million for the year ended December 31, 2024, a significant increase from RMB 3.9 million in 2023, primarily due to concerns over the commercial prospects of certain projects[82]. Corporate Governance - The Group is committed to high standards of corporate governance to safeguard shareholder interests and enhance corporate value[195]. - The Company has fully complied with the Corporate Governance Code during the Reporting Period[195]. - The Board has established the Group's purpose, values, and strategy aligned with its culture[196]. - No incidents of non-compliance with the Model Code by relevant employees noted during the Reporting Period[198]. - The Company will continue to review its corporate governance structure and make necessary changes when appropriate[195]. Strategic Focus and Future Plans - The Group aims to leverage its technology advantage to expand its business into new areas of solid waste treatment[7]. - The Group aims to capitalize on opportunities in the environmental protection industry and expand its business scope through technology innovation in 2025[26]. - The Group plans to leverage national policies supporting the environmental protection industry to expand its solid waste treatment business and maintain its market leadership[124][125]. - The Group will focus on technology innovation and commercialization of advanced solid waste treatment technologies to maximize shareholder returns and capture new business opportunities[125][125]. - The Group intends to adopt various project models for solid waste treatment, including operating and maintenance services projects, to enhance its competitiveness and risk management[130]. - The Group is actively exploring the application of artificial intelligence (AI) in environmental technology to improve operational efficiency and environmental data analysis capabilities[131]. Management and Workforce - The management team includes experienced executives with over 26 years in solid waste treatment solutions and operational management[153][154][161]. - The Group's workforce as of December 31, 2024, consists of 341 employees, with over 250 dedicated to R&D, project management, and execution[138]. - The Group's corporate governance and investor relations are overseen by Mr. GU, who is also responsible for corporate investment and finance[164]. - The appointment of independent directors like Mr. Chi and Mr. XIAO strengthens the board's oversight capabilities[169]. Financial Position and Capital Management - Cash and cash equivalents as of December 31, 2024, were approximately RMB49.8 million, down from RMB73.6 million in 2023, with net current assets decreasing from RMB227.9 million to RMB187.0 million[112][119]. - The gearing ratio as of December 31, 2024, was approximately 39%, compared to 37.4% in 2023, indicating a slight increase in financial leverage[113][120]. - The Group's borrowings as of December 31, 2024, amounted to RMB61.8 million, up from RMB32.9 million in 2023, secured by the Group's assets and personal guarantees from controlling shareholders[107][112]. - Capital expenditure for the year ended December 31, 2024, was approximately RMB68.8 million, significantly higher than RMB19.2 million in 2023, primarily for purchasing properties and equipment for oil sludge treatment and solid waste treatment projects[108][108].

Financial Performance - For the year ended December 31, 2024, the Group's revenue was RMB 241.6 million, a decrease of 4.7% compared to RMB 253.5 million for the year ended December 31, 2023[3]. - The Group's gross profit for the year ended December 31, 2024, was RMB 58.0 million, with a stable gross profit margin of 24.0% compared to the previous year[3]. - The Group recorded a net loss of RMB 55.3 million for the year ended December 31, 2024, resulting in a net loss margin of 22.9%, compared to a net loss of RMB 1.3 million and a margin of 0.5% in 2023[4]. - Loss attributable to owners of the Company was RMB 48.6 million for the year ended December 31, 2024, compared to a profit of RMB 1.8 million in 2023[5]. - Basic loss per share attributable to owners of the Company was RMB 0.036 for the year ended December 31, 2024, compared to basic earnings per share of RMB 0.001 for the year ended December 31, 2023[6]. - The Group's total comprehensive loss for the year was RMB 55.27 million, compared to a total comprehensive loss of RMB 1.27 million in 2023[13]. - The total loss for the year amounted to RMB 55,269,000 in 2024, compared to a loss of RMB 1,274,000 in 2023, indicating a substantial increase in losses[41]. Revenue Breakdown - The solid waste treatment segment reported external sales of RMB 85,207,000 in 2024, down from RMB 127,676,000 in 2023, representing a decrease of approximately 33.2%[41]. - The oilfield auxiliary services segment achieved external sales of RMB 156,411,000 in 2024, an increase from RMB 125,774,000 in 2023, reflecting a growth of about 24.4%[41]. - Revenue from hazardous waste incineration solutions decreased from RMB 102,693,000 in 2023 to RMB 38,426,000 in 2024, a decline of approximately 62.58%[53]. - Revenue from oilfield auxiliary services increased from RMB 125,774,000 in 2023 to RMB 156,411,000 in 2024, representing a growth of approximately 24.39%[53]. - Revenue from cement plant parallel kiln co-treatment services rose by 115.4% to RMB 30.8 million in 2024, compared to RMB 14.3 million in 2023, mainly due to the operations of the Yunfu and Maoming projects[114]. Expenses and Costs - Administrative expenses increased to RMB 58.97 million in 2024 from RMB 55.44 million in 2023[12]. - Research and development costs rose to RMB 12.51 million in 2024 from RMB 11.23 million in 2023[12]. - Total staff costs decreased to RMB 60,223,000 in 2024 from RMB 62,810,000 in 2023, a reduction of approximately 4%[1]. - The total depreciation and amortization expenses rose to RMB 23,702,000 in 2024 from RMB 16,440,000 in 2023, an increase of approximately 44%[1]. - Finance costs increased from RMB 2,574,000 in 2023 to RMB 2,839,000 in 2024, an increase of approximately 10.3%[58]. Assets and Liabilities - Current assets decreased to RMB 463.79 million as of December 31, 2024, from RMB 535.51 million in 2023[15]. - Non-current assets increased to RMB 309.89 million as of December 31, 2024, compared to RMB 307.65 million in 2023[15]. - Net current assets decreased to RMB 187,022,000 in 2024 from RMB 227,898,000 in 2023, representing a decline of approximately 18%[16]. - Total assets decreased from RMB 843,157,000 in 2023 to RMB 773,673,000 in 2024, a decline of approximately 8.25%[46]. - Total liabilities decreased from RMB 315,337,000 in 2023 to RMB 301,640,000 in 2024, a decline of approximately 4.34%[46]. Impairments and Provisions - Impairment losses recognized on trade receivables amounted to RMB 12,317,000 in 2024, compared to a reversal of RMB 1,937,000 in 2023[1]. - Impairment losses on property, plant, and equipment amounted to RMB 28.8 million for the year ended December 31, 2024, compared to RMB 3.9 million in the previous year, primarily due to assessments of specific projects[137]. - The allowance for credit losses on trade receivables rose to RMB 30,758,000 in 2024 from RMB 18,441,000 in 2023, an increase of about 67%[69]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period, ensuring high standards of corporate governance[197][198]. - No shares of the company were purchased, sold, or redeemed during the reporting period[196]. Future Plans and Strategies - The Group plans to capitalize on national policies supporting the solid waste treatment industry, which is expected to see continued growth due to urbanization and improved living standards[174]. - The Group aims to enhance its market position in hazardous waste incineration by improving treatment techniques and expanding customer relationships both domestically and internationally[178]. - The Group will explore new business opportunities in solid waste treatment through the industrialization of pyrolysis technology, targeting waste plastics and waste paper residues[179]. - The Group intends to adopt various project models to enhance competitiveness and risk management in solid waste treatment projects, including oil sludge treatment facilities[180]. - The Group will actively explore innovative applications of artificial intelligence in environmental technology to drive business upgrades and improve operational efficiency[184].

y 维潜环保 维 港 环 保 科 技 控 股 集 团 有 限 公 司 Weigang Environmental Technology Holding Group Limited ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code: 1845 E INTERIM REPORT 期 報 告 中 CONTENTS 目錄 | --- | --- | --- | |------------------------------------------------------------------------------------|------------------------------|-------| | | | | | | | | | CORPORATE INFORMATION | 公司資料 | 2 | | FINANCIAL SUMMARY | 財務概要 | 5 | | MANAGEMENT DISCUSSION AND ANALYSIS | ...

Financial Performance - For the six months ended June 30, 2024, the Group's revenue was RMB 90.3 million, an increase of 4.2% compared to RMB 86.7 million for the same period in 2023[2]. - The Group's gross profit for the same period was RMB 26.4 million, with a gross profit margin of 29.3%, representing a decrease of 6.1% and a decline of 3.2 percentage points from the previous year[2]. - The net loss for the six months ended June 30, 2024, was RMB 4.8 million, resulting in a net loss margin of 5.3%, compared to a net loss of RMB 1.5 million and a margin of 1.7% for the same period in 2023[2]. - Loss attributable to owners of the Company was RMB 5.3 million for the reporting period, compared to a profit of RMB 0.5 million for the same period in 2023[3]. - Basic and diluted loss per share attributable to owners of the Company was RMB 0.395 cents, compared to earnings per share of RMB 0.034 cents for the same period in 2023[3]. - Total comprehensive expense for the period was RMB 4.8 million, compared to RMB 1.5 million for the same period in 2023[5]. Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 312.96 million, an increase from RMB 307.65 million as of December 31, 2023[9]. - Current assets decreased to RMB 455.64 million as of June 30, 2024, from RMB 535.51 million as of December 31, 2023[9]. - Cash and cash equivalents were RMB 52.92 million as of June 30, 2024, down from RMB 73.62 million at the end of 2023[9]. - As of June 30, 2024, current liabilities decreased to RMB 234,622,000 from RMB 307,612,000 as of December 31, 2023, representing a reduction of approximately 23.7%[10]. - Total equity as of June 30, 2024, was RMB 523,021,000, down from RMB 527,820,000 as of December 31, 2023, reflecting a decline of approximately 0.9%[10]. - Total liabilities decreased to RMB 245,574,000 as of June 30, 2024, from RMB 315,337,000 as of December 31, 2023[26]. Revenue Segments - Segment revenue for solid waste treatment was RMB 36,872,000 in H1 2024, down 32.4% from RMB 54,560,000 in H1 2023[24]. - Hazardous waste incineration solutions revenue dropped to RMB 17,939,000 in H1 2024 from RMB 47,855,000 in H1 2023, a decrease of 62.5%[32]. - Oilfield auxiliary services revenue rose significantly to RMB 53,472,000 in H1 2024, compared to RMB 32,173,000 in H1 2023, marking a growth of 66.2%[32]. - Revenue from hazardous waste incineration solutions decreased by 62.6% from RMB 47.9 million for the six months ended June 30, 2023, to RMB 17.9 million for the six months ended June 30, 2024[83]. - Revenue from oilfield auxiliary services increased by 66.1% from RMB 32.2 million for the six months ended June 30, 2023, to RMB 53.5 million for the six months ended June 30, 2024[83]. Research and Development - Research and development costs for the six months ended June 30, 2024, were RMB 3.34 million, an increase from RMB 2.94 million for the same period in 2023[5]. - Research and development costs rose to RMB 3,336,000 for the six months ended June 30, 2024, compared to RMB 2,939,000 in 2023, reflecting a growth of 13.5%[45]. - The Group aims to capitalize on the growing demand for solid waste treatment driven by supportive national policies, including the "Waste-Free City" initiative and the "Environmental Infrastructure Construction Standard Improvement Action (2023–2025)"[123][125]. Corporate Governance and Strategy - The Group is committed to maintaining stringent corporate governance, ensuring compliance with applicable laws and enhancing transparency and accountability to shareholders[137]. - The Group intends to leverage its strong capital position to enter the solid waste treatment sector via technology cooperation, investments, and mergers and acquisitions, aiming to build an integrated environmental industry group[131][134]. - The Group plans to enhance its market position in hazardous waste incineration by improving treatment techniques and expanding customer relationships both domestically and internationally[127][129]. Employee and Remuneration - As of June 30, 2024, the Group employed 350 employees, with over 250 dedicated to R&D and project management[136][138]. - The Group's remuneration policy is aligned with market standards and performance, offering monthly salaries and discretionary bonuses based on individual and company performance[136][138]. Other Financial Information - The income tax expense for the six months ended June 30, 2024, was RMB 411,000, a decrease of 80.1% from RMB 2,064,000 in 2023[40]. - The Group recorded a net loss of RMB 4.8 million for the six months ended June 30, 2024, with a net loss margin of 5.3%, compared to a net loss of RMB 1.5 million and a margin of 1.7% for the same period in 2023[103]. - No dividends were paid, declared, or proposed during the six months ended June 30, 2024, and 2023[47].

Financial Performance - For the year ended December 31, 2023, the Group's revenue amounted to RMB253.5 million, representing a decrease of 27.4% compared to the previous year[17]. - The Group recorded a gross profit of RMB60.7 million for the year ended December 31, 2023, with a gross profit margin of 24.0%, an increase of 5.6 percentage points from 18.4% in 2022[17]. - The net loss for the year ended December 31, 2023, was RMB1.3 million, with a net loss margin of 0.5%, significantly improved from a net loss of RMB78.0 million and a margin of 22.4% in 2022[18]. - Profit attributable to owners of the Company was RMB1.8 million for the year ended December 31, 2023, compared to a loss of RMB72.3 million in the previous year[18]. - Basic earnings per share attributable to owners of the Company amounted to RMB0.001 for the year ended December 31, 2023, a recovery from a basic loss per share of RMB0.054 in 2022[19]. - For the year ended December 31, 2023, the Group's revenue decreased to RMB 253,450,000, down 27.4% from RMB 348,928,000 in 2022[21]. - Gross profit for 2023 was RMB 60,726,000, a decline of 5.8% compared to RMB 64,198,000 in 2022[21]. - The Group reported a profit before income tax of RMB 680,000, a significant improvement from a loss of RMB 75,163,000 in 2022[21]. - The total assets of the Group increased to RMB 843,157,000 in 2023, up 13.3% from RMB 743,982,000 in 2022[21]. - Total liabilities rose to RMB 315,337,000, an increase of 25.7% from RMB 250,736,000 in 2022[21]. Project Development - As of December 31, 2023, the Group completed 43 hazardous waste incineration projects with a total designed disposal capacity of 1,043,500 tonnes per annum[4]. - The Group has 13 ongoing hazardous waste incineration projects with an aggregate designed disposal capacity of 310,000 tonnes per annum[4]. - The Group completed 5 hazardous waste incineration projects in 2023, adding a designed disposal capacity of approximately 140,000 tonnes per annum[32]. - The hazardous waste incineration project in North Bay has a designed disposal capacity of 16,500 tonnes per annum, part of the ongoing projects as of December 31, 2023[39]. - The Group's project in Qingchuan County, Sichuan Province, for domestic waste treatment using pyrolysis technology has a designed disposal capacity of 30,000 tonnes per year, with trial operation planned for April 2024[47]. - The Maoming cement plant parallel co-treatment project has a designed disposal capacity of 88,900 tonnes per year and is expected to begin trial operation in March 2024[46]. - The oil sludge thermal desorption treatment project near Karamay Oilfield has a designed treatment capacity of 200,000 tonnes per year and commenced trial operation in March 2024[44]. - The cement plant parallel kiln co-treatment project in Yunfu has a designed disposal capacity of 83,600 tonnes per year and generated revenue of RMB 14.3 million in 2023[45]. Revenue Streams - Revenue from oilfield auxiliary services amounted to RMB 125.8 million in 2023, up from RMB 64.5 million in 2022, representing a growth of approximately 95%[41]. - Revenue from hazardous waste incineration solutions decreased by 61.4% from RMB265.9 million for the year ended 31 December 2022 to RMB102.7 million for the year ended 31 December 2023[53]. - Revenue from cement plant parallel kiln co-treatment services increased by 45.9% from RMB9.8 million for the year ended 31 December 2022 to RMB14.3 million for the year ended 31 December 2023[58]. - Gross profit from hazardous waste incineration solutions decreased by 29.1% from RMB45.5 million for the year ended December 31, 2022 to RMB32.2 million for the year ended December 31, 2023[73]. - Gross profit from oilfield auxiliary services increased by 95% to RMB20.8 million for the year ended December 31, 2023[79]. Cost Management - Cost of services decreased by 32.3% from RMB284.7 million for the year ended December 31, 2022 to RMB192.7 million for the year ended December 31, 2023[60]. - Administrative expenses decreased by 5.5% from RMB58.7 million for the year ended December 31, 2022, to RMB55.4 million for the year ended December 31, 2023[81]. - Research and development costs decreased by 49.7% from RMB22.3 million for the year ended December 31, 2022, to RMB11.2 million for the year ended December 31, 2023[84]. - Finance costs decreased by 8.2% from RMB2.8 million for the year ended December 31, 2022, to RMB2.6 million for the year ended December 31, 2023[87]. Strategic Focus - The Group plans to focus on technology innovation to maintain its advanced technology and strong R&D capability, aiming to expand into new areas of solid waste treatment[6]. - The Company aims to become a leading solid waste treatment solutions provider in China by leveraging its technology advantages[6]. - The Group aims to capitalize on opportunities in the environmental protection industry and expand its business scope through technology innovation in 2024[25]. - The Group's commitment is to become a leading solid waste treatment solutions provider in China, maximizing shareholder returns[25]. - The Group intends to leverage its capital strength to enter the solid waste treatment sector through technology cooperation, investment, and mergers and acquisitions[139]. Market Outlook - The demand for solid waste treatment is expected to grow due to supportive national policies, positioning the Group as a leading provider of solid waste treatment solutions in China[131]. - National policies supporting the solid waste treatment industry are anticipated to drive continued demand growth, positioning the Group to capitalize on these opportunities[134]. - The Chinese economy is expected to experience strong growth post-pandemic, driven by pent-up domestic savings and demand, which will benefit the solid waste treatment industry[132]. Corporate Governance and Management - The company has adopted a dividend policy that does not specify a predetermined payout ratio, focusing on the interests of the company and its shareholders[154]. - The board has the discretion to recommend or not recommend dividends based on various factors including financial position and capital requirements[155]. - The company emphasizes the importance of operational management and internal control in its strategic planning[171]. - The management team has extensive experience in solid waste treatment solutions, with key executives having over 25 years of industry experience[162][165]. - The company aims to enhance its corporate governance and investor relations through experienced board members and management[179]. Employee and Resource Management - The Group employed 368 employees as of December 31, 2023, an increase from 362 employees in 2022, with over 250 personnel focused on R&D and project management[146]. - The management team has a diverse educational background, with degrees from prestigious institutions such as Tsinghua University and the Royal Melbourne Institute of Technology[176][182]. - The Group's financial strategies are supported by experienced professionals in investment and corporate finance, ensuring robust financial health and growth potential[179].