Financial Performance - The company reported a revenue of HKD 150 million for the interim period, representing a 20% increase compared to the previous year[3]. - For the six months ended 30 June 2022, the Group's revenue was RMB200.7 million, a decrease of 17.5% compared to the same period in 2021[12]. - Revenue decreased by 17.5% from RMB243.2 million for the six months ended 30 June 2021 to RMB200.7 million for the six months ended 30 June 2022, mainly due to a decrease in revenue from hazardous waste incineration solutions[23]. - The company reported a loss for the period of RMB (34,621,000) in June 2022, compared to a loss of RMB (19,078,000) in June 2021, indicating a significant increase in losses[154]. - Loss before tax for the six months ended June 30, 2022, was RMB 33,673,000, compared to a loss of RMB 23,180,000 in the prior year, indicating a deterioration in financial performance[118]. - The loss for the period attributable to owners of the Company was RMB 27,971,000, compared to RMB 17,647,000 in the same period of 2021[121]. - The total comprehensive expense for the period was RMB 34,621,000, significantly higher than RMB 19,507,000 in the previous year[121]. Profitability Metrics - The gross profit margin improved to 35%, up from 30% in the same period last year[3]. - The Group's gross profit for the same period was RMB27.3 million, with a gross profit margin of 13.6%, representing an increase of 4.6% and 2.9 percentage points respectively compared to the prior year[12]. - Gross profit increased by 4.6% from RMB26.1 million for the six months ended 30 June 2021 to RMB27.3 million for the six months ended 30 June 2022, with gross profit margin rising from 10.7% to 13.6%[27]. - The company aims to achieve a net profit margin of 10% by the end of the next fiscal year, up from 8%[3]. User and Market Growth - User data showed an increase in active users to 1.2 million, a growth of 15% year-on-year[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[3]. - Future guidance estimates revenue growth of 15-20% for the next fiscal year[3]. Research and Development - The company has allocated HKD 30 million for research and development of new technologies in environmental solutions[3]. - The Group is actively conducting research and development in new areas of solid waste treatment, successfully applying some technologies to new projects[14]. - Research and development expenses decreased by 28.4% from RMB10.2 million for the six months ended 30 June 2021 to RMB7.3 million for the six months ended 30 June 2022[31]. Operational Efficiency - A strategic partnership with a local firm is expected to enhance operational efficiency and reduce costs by 10%[3]. - The Group's focus remains on the design, integration, and commissioning of hazardous waste incineration systems, which generated a substantial portion of its revenue in the first half of 2022[15]. Segment Performance - Revenue for the solid waste treatment segment decreased to RMB 178,492,000 in June 2022 from RMB 223,920,000 in June 2021, representing a decline of approximately 20.3%[154]. - Revenue from oilfield auxiliary services increased to RMB 22,232,000 in June 2022, up from RMB 19,254,000 in June 2021, reflecting a growth of about 10.3%[154]. - Revenue from hazardous waste incineration solutions was RMB 167,661,000 in June 2022, down from RMB 219,359,000 in June 2021, a decline of approximately 23.5%[165]. Cash Flow and Liquidity - As of June 30, 2022, total assets less current liabilities amounted to RMB 545,420,000, a decrease from RMB 573,509,000 as of December 31, 2021, reflecting a decline of approximately 4.9%[125]. - The net cash generated from operating activities was RMB 55,568,000, compared to RMB 18,478,000 for the same period in 2021, representing an increase of 200%[134]. - Cash and cash equivalents at the end of the period increased to RMB 104,802,000 from RMB 63,200,000 year-over-year, reflecting a growth of 66%[134]. Shareholder Information - As of June 30, 2022, Mr. Cai Zhuhua holds a 39.83% interest in the Company, while Mr. Zhang Weiyang holds a 24.37% interest[53]. - The Group's total assets were approximately RMB810.9 million and total liabilities were approximately RMB274.4 million as at 30 June 2022, resulting in a gearing ratio of approximately 33.8%[38]. Corporate Governance - The Company has adopted the Corporate Governance Code and believes it has complied fully during the review period, except for a deviation regarding the roles of chairman and chief executive[84]. - The Group's remuneration policy considers individual performance, market performance, and the Group's overall profit, with employees receiving monthly salaries and discretionary bonuses[83]. Future Outlook - The demand for solid waste treatment is expected to continue growing due to supportive national policies, positioning the Group as a leading provider in this sector[40]. - The Group aims to consolidate its leading market position in hazardous waste incineration and expand market share through advanced treatment technologies[47]. - The Chinese government's policies for environmental protection are expected to drive continued growth in solid waste treatment demand[43].

Business Operations and Projects - As of December 31, 2021, the Group completed 35 hazardous waste incineration projects with an aggregate designed disposal capacity of 834,500 tonnes per annum, and has 19 ongoing projects with a capacity of 459,000 tonnes per annum[6] - The Group aims to leverage its technology advantage to expand its business into more areas of solid waste treatment, including thermal desorption of oil sludge and pyrolysis treatment[6] - The Group's hazardous waste incineration projects are spread across 18 cities in China[40] - The ongoing projects include various capacities, with the largest being 33,000 tonnes per annum for the Guangzhou East Area project[52] - The Group completed 4 hazardous waste incineration projects in 2021 with a total designed disposal capacity of approximately 107,000 tonnes per annum[40] - The Group has expanded its offerings to include thermal desorption of oil sludge and pyrolysis treatment of solid waste, leveraging its expertise in hazardous waste incineration[40] - The Group's strategic expansion into new areas of solid waste treatment reflects its commitment to comprehensive hazardous waste management solutions[40] Financial Performance - For the year ended December 31, 2021, the Group's revenue was RMB 561.7 million, an increase of 4.6% compared to RMB 536.8 million for the year ended December 31, 2020[21] - The Group's gross profit for the year ended December 31, 2021, was RMB 76.9 million, with a gross profit margin of 13.7%, representing a decrease of 7.2% and 1.7 percentage points from the previous year[22] - The net loss for the year ended December 31, 2021, was RMB 8.8 million, resulting in a net loss margin of 1.6%, compared to a net loss of RMB 7.4 million and a margin of 1.4% for the year ended December 31, 2020[22] - Loss attributable to owners of the Company was RMB 12.4 million for the year ended December 31, 2021, compared to RMB 10.9 million for the previous year[23] - Basic loss per share attributable to owners of the Company was RMB 0.009 for the year ended December 31, 2021, compared to RMB 0.008 for the year ended December 31, 2020[23] - Revenue from hazardous waste incineration solutions increased by 5% from RMB468.5 million for the year ended 31 December 2020 to RMB491.8 million for the year ended 31 December 2021[59] - Revenue from oilfield auxiliary services through the subsidiary Xinjiang Tiansheng amounted to RMB 49.6 million in 2021, compared to RMB 48.5 million in 2020[53] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 864.0 million, with total liabilities of RMB 293.5 million[26] - The Group's equity attributable to owners was RMB 491.4 million as of December 31, 2021, down from RMB 505.3 million in the previous year[26] - Trade and note receivables decreased from RMB235.0 million as of December 31, 2020, to RMB204.8 million as of December 31, 2021, due to improved collection processes[84] - Trade payables increased from RMB152.0 million as of December 31, 2020, to RMB171.8 million as of December 31, 2021, due to increased procurement of equipment and materials[84] - As of December 31, 2021, the Group's borrowings amounted to RMB53.7 million, secured by the Group's assets and personal guarantees from controlling shareholders[87] Research and Development - The Group will continue to focus on technology innovation to maintain its advanced technology and strong R&D capability[6] - The Group's focus on R&D has led to successful applications of new technologies in solid waste treatment projects[40] - Research and development expenses decreased by 2.7% from RMB21.9 million in 2020 to RMB21.3 million in 2021, indicating stability in R&D spending[77] Corporate Governance - The Company has adopted the CG Code and has complied with it during the reporting period, except for a deviation from Code Provision C.2.1[168] - The Board currently comprises seven Directors, including four executive Directors and three independent non-executive Directors[177] - The independent non-executive Directors account for more than one-third of the Board members, ensuring compliance with Listing Rules[188] - The Company aims to enhance female representation on the Board, currently having no female Directors[183] - The Company considers all independent non-executive Directors to be independent based on their confirmations during the Period[188] Strategic Focus and Future Plans - The Group aims to capitalize on opportunities in the environmental protection industry and commercialize advanced solid waste treatment technologies in 2022[33] - The Group intends to leverage its capital strength to enter the solid waste treatment sector through technology cooperation, investment, and mergers and acquisitions[110] - The Group anticipates continued growth in demand for solid waste treatment driven by supportive national policies and the "Beautiful China initiative"[91] - The Group's future tasks include maximizing shareholder returns while capturing opportunities from environmental protection industry policies[99] Management Team - The management team includes experienced executives responsible for daily operations, project management, and research and development[128][130] - Mr. DENG has over 15 years of experience in solid waste treatment solutions, joining the Group in 2009 as chief engineer and deputy general manager[136] - The Group is committed to leveraging its management team's extensive experience in environmental science and financial services to drive growth[136]

/ 维滑环保 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 中期報告 202 INTERIM REPORT CONTENTS 目錄 CORPORATE INFORMATION 2 公司資料 FINANCIAL SUMMARY 6 財務概要 MANAGEMENT DISCUSSION AND ANALYSIS 7 管理層討論及分析 OTHER INFORMATION 21 其他資料 REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 30 簡明綜合中期財務資料審閱報告 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND ...

的 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 F報 41 ANNUAL REPORT CONTENTS 目錄 | --- | --- | |-------------------------------------------------|------------------------| | | | | COMPANY PROFILE | 公司簡介 | | CORPORATE INFORMATION | 公司資料 | | FINANCIAL SUMMARY | 財務概要 | | CHAIRMAN'S STATEMENT | 董事長報告書 | | MANAGEMENT DISCUSSION AND ANALYSIS | 管理層討論及分析 | | DIRE ...

线 维酒环保 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 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|----------------|-------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interim Report | 02 中期報告 | CONTENTS 目錄 CORPORAT ...

[Company Profile](index=3&type=section&id=Company%20Profile) [Company Profile](index=3&type=section&id=Company%20Profile) Veikong Environmental Technology, listed on HKEX in 2019, is a leading Chinese hazardous waste incineration solution provider expanding into new solid waste treatment technologies - By the end of 2019, the company had completed 20 hazardous waste incineration projects with a cumulative designed annual disposal capacity of **435,000 tons**; it also held 18 projects under construction with a designed annual disposal capacity of **458,000 tons**, indicating continuous business expansion[5](index=5&type=chunk) - The company's business has successfully expanded from hazardous waste incineration to new solid waste treatment areas including oil sludge thermal desorption, solid waste anaerobic pyrolysis, and cement kiln co-processing[5](index=5&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section details the company's core organizational structure and key partners, including board members, executives, and advisors - Mr. Cai Zhuhua serves as the Chairman of the Board, while Mr. Feng Tao and Mr. Cai Zhuhua chair the Audit, Remuneration, and Nomination Committees respectively[8](index=8&type=chunk) - The company's auditor and reporting accountant is Tianzhi Hong Kong Certified Public Accountants Limited[10](index=10&type=chunk) - The company's shares were listed on the Hong Kong Stock Exchange on January 3, 2019, with stock code **1845**[14](index=14&type=chunk) [FINANCIAL SUMMARY](index=8&type=section&id=FINANCIAL%20SUMMARY) [FINANCIAL SUMMARY](index=8&type=section&id=FINANCIAL%20SUMMARY) The Group achieved strong financial performance in FY2019, with revenue growing 12.0% to RMB 537.5 million and net profit surging 35.9% to RMB 78 million 2019 Financial Year Key Financial Indicators | Indicator | 2019 (RMB thousands) | 2018 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 537,509 | 480,091 | +12.0% | | **Gross Profit** | 144,236 | 124,663 | +15.6% | | **Gross Margin** | 26.8% | 26.0% | +0.8pp | | **Profit for the Year** | 78,031 | 57,411 | +35.9% | | **Net Margin** | 14.5% | 12.0% | +2.5pp | | **Profit Attributable to Owners of the Company** | 66,984 | 49,799 | +34.5% | | **Basic Earnings Per Share (RMB)** | 0.050 | 0.049 | +2.0% | Balance Sheet Summary (Year-End) | Indicator | 2019 (RMB thousands) | 2018 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 802,027 | 469,735 | +70.7% | | **Total Liabilities** | 227,886 | 310,445 | -26.6% | | **Equity Attributable to Owners of the Company** | 516,815 | 132,070 | +291.3% | [CHAIRMAN'S STATEMENT](index=9&type=section&id=CHAIRMAN'S%20STATEMENT) [CHAIRMAN'S STATEMENT](index=9&type=section&id=CHAIRMAN'S%20STATEMENT) Chairman Cai Zhuhua highlights 2019 as a milestone year with the HKEX listing, emphasizing the Group's strategic focus on technology commercialization and business expansion - Successful listing on the Main Board of the Hong Kong Stock Exchange on January 3, 2019, marked a significant breakthrough and new starting point for the Group[22](index=22&type=chunk)[25](index=25&type=chunk) - Looking ahead, the Group will continue to focus on technological innovation, commercializing advanced solid waste treatment technologies to seize more market opportunities and maintain its leading market position[23](index=23&type=chunk)[26](index=26&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=10&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [I. BUSINESS REVIEW](index=10&type=section&id=I.%20BUSINESS%20REVIEW) In 2019, the core hazardous waste incineration business expanded, adding 220,000 tons of annual capacity, while new ventures like oil sludge thermal desorption generated RMB 45.4 million in revenue 2019 Hazardous Waste Incineration Projects Overview | Project Status | Quantity | Cumulative Designed Annual Disposal Capacity | | :--- | :--- | :--- | | **Completed in 2019** | 8 projects | Approximately 220,000 tons | | **Under Construction as of Year-End** | 18 projects | Approximately 458,000 tons | - Oil sludge thermal desorption solutions business generated **RMB 45.4 million** in revenue in 2019, demonstrating strong growth momentum for this new business line[63](index=63&type=chunk) - The company signed contracts with renowned cement producers for cement kiln co-processing of hazardous waste projects, expected to commence operations in 2020, marking the official launch of its business in this sector[63](index=63&type=chunk) [II. FINANCIAL POSITION AND OPERATING RESULTS](index=14&type=section&id=II.%20FINANCIAL%20POSITION%20AND%20OPERATING%20RESULTS) The Group's FY2019 operating results showed significant growth, with total revenue up 12.0% to RMB 537.5 million and net profit surging 35.9% to RMB 78 million, while the gearing ratio improved to 28.4% 2019 Revenue Composition and Year-on-Year Change | Business Segment | 2019 Revenue (RMB millions) | 2018 Revenue (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Hazardous Waste Incineration Solutions | 453.0 | 444.8 | +1.8% | | Oil Sludge Thermal Desorption Solutions | 45.4 | 10.7 | +324.3% | | Anaerobic Pyrolysis Solid Waste Disposal | 22.8 | 4.1 | +456.1% | | Other Services | 16.3 | 20.5 | -20.5% | | **Total** | **537.5** | **480.1** | **+12.0%** | Gross Profit and Gross Margin by Business Segment | Business Segment | 2019 Gross Profit (RMB millions) | 2019 Gross Margin | 2018 Gross Margin | | :--- | :--- | :--- | :--- | | Hazardous Waste Incineration Solutions | 99.4 | 21.9% | 25.5% | | Oil Sludge Thermal Desorption Services | 30.6 | 67.4% | 73.8% | | Anaerobic Pyrolysis Solid Waste Disposal | 10.3 | 45.2% | 29.3% | | **Total** | **144.2** | **26.8%** | **26.0%** | - Gross margin for the core hazardous waste incineration solutions business decreased from **25.5% to 21.9%**, primarily due to intense market competition leading to project price adjustments and the procurement of higher-cost equipment materials to enhance system quality[85](index=85&type=chunk)[86](index=86&type=chunk) - Net profit margin increased from **12.0% to 14.5%**, mainly attributable to higher gross margin and the absence of listing expenses in 2019 (RMB 12.3 million in 2018)[92](index=92&type=chunk)[99](index=99&type=chunk) - The gearing ratio (total liabilities/total assets) significantly decreased from **66.1% in 2018 to 28.4% in 2019**, indicating a substantial optimization of the company's financial structure post-listing[105](index=105&type=chunk) [III. PROSPECTS](index=23&type=section&id=III.%20PROSPECTS) The Group's future strategy focuses on consolidating hazardous waste market leadership, industrializing anaerobic pyrolysis, exploring new project models, and leveraging capital markets for expansion - Future strategy will focus on four key directions: consolidating leadership in hazardous waste incineration, industrializing anaerobic pyrolysis technology, exploring new project models (e.g., O&M services), and leveraging the capital market platform for expansion[111](index=111&type=chunk)[115](index=115&type=chunk) IPO Proceeds Usage and Status (As of December 31, 2019) | Purpose | Net Proceeds (RMB millions) | Amount Utilized (RMB millions) | Unutilized Amount (RMB millions) | | :--- | :--- | :--- | :--- | | Utilization of Anaerobic Pyrolysis Technology | 90.9 | 63.1 | 27.8 | | Establishment of Research and Engineering Center | 45.4 | — | 45.4 | | Commercialization of Oil Sludge Thermal Desorption Technology | 34.1 | 8.6 | 25.5 | | Investment in Cement Kiln Co-processing | 34.1 | 13.1 | 21.0 | | Working Capital and General Corporate Purposes | 22.7 | 22.7 | — | | **Total** | **227.2** | **107.5** | **119.7** | - The company adopted a dividend policy on March 26, 2019, but without a predetermined payout ratio; dividend distribution will be at the Board's discretion based on the Group's business conditions, capital needs, and profitability[122](index=122&type=chunk) [DIRECTORS AND SENIOR MANAGEMENT](index=28&type=section&id=DIRECTORS%20AND%20SENIOR%20MANAGEMENT) [DIRECTORS AND SENIOR MANAGEMENT](index=28&type=section&id=DIRECTORS%20AND%20SENIOR%20MANAGEMENT) This section outlines the backgrounds and responsibilities of the company's board members and senior management, highlighting their extensive industry experience - The executive director team consists of Mr. Cai Zhuhua (Chairman), Mr. Dong Honghui, and Mr. Deng Zhaoshan, all possessing over **12 years** of extensive experience in solid waste treatment[124](index=124&type=chunk)[127](index=127&type=chunk)[131](index=131&type=chunk) - Senior management includes Chief Scientist Dr. Wang Zhicheng, who has over **18 years** of experience in the environmental industry and is an inventor or designer of multiple anaerobic pyrolysis technology patents[148](index=148&type=chunk)[152](index=152&type=chunk) [CORPORATE GOVERNANCE REPORT](index=37&type=section&id=CORPORATE%20GOVERNANCE%20REPORT) [CORPORATE GOVERNANCE REPORT](index=37&type=section&id=CORPORATE%20GOVERNANCE%20REPORT) The company maintained high corporate governance standards, complying with HKEX code provisions, with the Board overseeing risk management and internal controls through its independent committees - The company complied with the Corporate Governance Code, with the sole deviation being the combined roles of Chairman and Chief Executive held by Mr. Cai Zhuhua, which the Board believes allows for more effective long-term strategic planning and execution[161](index=161&type=chunk)[195](index=195&type=chunk) - The Board has three committees: Audit, Remuneration, and Nomination, with Mr. Feng Tao, an independent non-executive director, chairing both the Audit and Remuneration Committees, ensuring their independence[219](index=219&type=chunk)[227](index=227&type=chunk)[235](index=235&type=chunk) - The Board is responsible for maintaining adequate risk management and internal control systems, with annual effectiveness reviews conducted by the Audit Committee. The risk management system is implemented at departmental, internal audit, and Board levels[257](index=257&type=chunk) [Environmental, Social and Governance REPORT](index=53&type=section&id=Environmental%2C%20Social%20and%20Governance%20REPORT) [Environmental, Social and Governance REPORT](index=53&type=section&id=Environmental%2C%20Social%20and%20Governance%20REPORT) This report details the Group's 2019 ESG performance, focusing on health and safety, product responsibility, and resource usage, alongside social and environmental impact data - The company identified health and safety, product responsibility, and resource usage as the three material aspects for this year's ESG report[281](index=281&type=chunk)[283](index=283&type=chunk) 2019 Key Environmental Performance Indicators | Indicator Type | Indicator | 2019 Data | | :--- | :--- | :--- | | **Greenhouse Gas Emissions** | Total Scope 1 + Scope 2 Emissions | Approximately 6,001.25 tons CO2e | | **Exhaust Gas Emissions** | Nitrogen Oxides (NOx) | Approximately 1,784.26 kg | | | Sulfur Oxides (SOx) | Approximately 144.97 kg | | **Solid Waste** | Reduced Soil (from oil sludge treatment) | 129,373 tons | | | Domestic Solid Waste | Approximately 30 tons | | **Resource Consumption** | Total Electricity Consumption | Approximately 1,949,592 kWh | | | Total Water Consumption | Approximately 102,266.3 tons | - Regarding social responsibility, the company's total workforce increased to approximately **228 employees**, a **15.7%** year-on-year growth. The company provided employees with various professional development training, including waste battery disposal technology, project risk analysis, and safety training[297](index=297&type=chunk)[312](index=312&type=chunk) [DIRECTORS' REPORT](index=73&type=section&id=DIRECTORS'%20REPORT) [DIRECTORS' REPORT](index=73&type=section&id=DIRECTORS'%20REPORT) This report provides statutory information for FY2019, including the Board's decision not to declare a dividend, customer concentration, and details on shareholdings and the pre-IPO share option scheme - The Board has resolved not to declare a final dividend for the year ended December 31, 2019[375](index=375&type=chunk) - The company has high customer concentration, with the largest customer accounting for **24.1%** of revenue, and the top five customers collectively accounting for **61.5%**[381](index=381&type=chunk) - As of the end of 2019, there were **44,453,389** unexercised share options under the pre-IPO share option scheme, representing approximately **3.3%** of the issued share capital[414](index=414&type=chunk)[417](index=417&type=chunk) - The independent non-executive directors have reviewed the controlling shareholder's non-compete undertaking and confirmed no breaches occurred during the reporting period[427](index=427&type=chunk) [INDEPENDENT AUDITOR'S REPORT](index=88&type=section&id=INDEPENDENT%20AUDITOR'S%20REPORT) [INDEPENDENT AUDITOR'S REPORT](index=88&type=section&id=INDEPENDENT%20AUDITOR'S%20REPORT) The auditor issued an unqualified opinion on the 2019 consolidated financial statements, highlighting revenue recognition and impairment of receivables as key audit matters - The auditor issued an **unqualified opinion** on the 2019 consolidated financial statements[441](index=441&type=chunk)[443](index=443&type=chunk) - Key Audit Matter One: Revenue recognition for hazardous waste incineration solutions. This is considered a key audit matter due to the use of the input method (percentage of completion) for revenue recognition, which involves significant estimates of total contract costs[451](index=451&type=chunk) - Key Audit Matter Two: Estimated impairment of trade receivables and contract assets. This is listed as a key audit matter due to its materiality to the statement of financial position and the significant management judgment involved in assessing Expected Credit Losses (ECL)[458](index=458&type=chunk) [FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS](index=98&type=section&id=FINANCIAL%20STATEMENTS%20AND%20NOTES%20TO%20THE%20FINANCIAL%20STATEMENTS) [Consolidated statement of profit or loss and other comprehensive income](index=98&type=section&id=Consolidated%20statement%20of%20profit%20or%20loss%20and%20other%20comprehensive%20income) In FY2019, the Group's revenue grew 12.0% to RMB 537.5 million, with gross profit up 15.6% and profit for the year increasing 35.9% to RMB 78.03 million Consolidated Statement of Profit or Loss Summary | Item (RMB thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 537,509 | 480,091 | | Gross Profit | 144,236 | 124,663 | | Profit Before Tax | 91,122 | 67,970 | | Profit for the Year | 78,031 | 57,411 | | Profit Attributable to Owners of the Company | 66,984 | 49,799 | | Basic Earnings Per Share (RMB) | 0.050 | 0.049 | [Consolidated statement of financial position](index=100&type=section&id=Consolidated%20statement%20of%20financial%20position) As of 2019 year-end, total assets surged to RMB 802 million, total liabilities decreased to RMB 228 million, and shareholder equity significantly improved to RMB 574 million Consolidated Statement of Financial Position Summary | Item (RMB thousands) | 2019 December 31 | 2018 December 31 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 150,885 | 68,916 | | Current Assets | 651,142 | 400,819 | | **Total Assets** | **802,027** | **469,735** | | **Liabilities and Equity** | | | | Current Liabilities | 223,927 | 210,544 | | Non-current Liabilities | 3,959 | 99,901 | | **Total Liabilities** | **227,886** | **310,445** | | **Total Equity** | **574,141** | **159,290** | [Consolidated statement of cash flows](index=106&type=section&id=Consolidated%20statement%20of%20cash%20flows) In 2019, operating activities resulted in a net cash outflow of RMB 52.8 million, while financing activities generated a net inflow of RMB 247.6 million, leading to a year-end cash balance of RMB 142.2 million Consolidated Statement of Cash Flows Summary | Item (RMB thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (52,796) | (69,422) | | Net Cash Used in Investing Activities | (76,020) | (40,759) | | Net Cash From Financing Activities | 247,585 | 64,672 | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **118,769** | **(45,509)** | | Cash and Cash Equivalents at Beginning of Year | 23,437 | 68,946 | | **Cash and Cash Equivalents at End of Year** | **142,206** | **23,437** |

《》维滑环保 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 中期報告 INTERIM REPORT CONTENTS 目錄 簡明綜合損益及其他全面收益表 CORPORATE INFORMATION 2 公司資料 FINANCIAL SUMMARY 6 財務概要 MANAGEMENT DISCUSSION AND ANALYSIS 8 管理層討論及分析 OTHER INFORMATION 22 其他資料 REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 31 簡明綜合中期財務資料審閱報告 CONDENSED CONSOLIDATED STATEMENT OF PROFIT O ...

《 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 年報 ANNUAL REPORT 2 3 7 8 9 27 36 51 79 96 105 230 | --- | --- | |-------------------------------------------------|------------------------| | | | | COMPANY PROFILE | 公司簡介 | | CORPORATE INFORMATION | 公司資料 | | FINANCIAL SUMMARY | 財務概要 | | CHAIRMAN'S STATEMENT | 董事長報告書 | | MANAGEMENT DISCUSSION AND ANALYSIS | ...