光大水务执行董事兼总裁陶俊杰表示："光大水务入选本年鉴是国际市场对公司长期坚持推行ESG战略 的高度认可，也是公司践行绿色发展承诺的重要里程碑。当前，行业正经历转型升级和绿色低碳发展的 时代变革，光大水务正在积极围绕"泛水"领域探索新机遇、拓展新业务，并坚持推动数智化转型带动存 量业务增效增收，创造更多绿色价值。未来，光大水务将继续以科技创新和高水平经营管理，谋求绿色 低碳与可持续发展，为行业高质量发展注入新动能，为中国"双碳"(即"碳达峰、碳中和")目标的实现贡 献力量。" 标普全球CSA 是全球最具影响力的企业可持续发展评估体系之一。此次，共有来自60个行业的1600多 家企业通过该评估并成为本年鉴的候选企业，164家企业最终入选。在每个行业类别中，入选企业的 CSA评分不得低于30分且与本行业最高分的差距在30%之内(当该行业类别候选企业不多于3家时，入选 企业的评分排名需位列行业前15%或第一)，方能入选本年鉴。 智通财经APP讯，中国光大水务(01857)发布公告，公司近日首次入选标普全球《可持续发展年鉴(中国 版)》(本年鉴)。此次入选是基于公司在标普全球2024年企业可持续发展评估(CSA)中的 ...

Company Overview - Everbright Water has a designed daily water treatment capacity of approximately 7.70 million m³ as of December 31, 2024[10]. - The company operates across 13 provinces and regions in China, including major cities like Beijing and Shanghai, and has an overseas presence in Mauritius[10]. - Everbright Water is committed to technological innovation and sustainable development in water environment management, reflecting its long-term vision[3]. - The company has established a full industry chain in the water business, covering project investment, planning, R&D, engineering, and operations management[10]. - The controlling shareholder of Everbright Water is China Everbright Environment Group Limited, listed on the Hong Kong Stock Exchange[9]. - The company focuses on various water-related businesses, including raw water protection, municipal and industrial wastewater treatment, and sludge treatment[10]. - Everbright Water aims to create value for industries through its comprehensive water management services[12]. Financial Performance - Revenue for FY2024 was HK$6,851,918, representing a 2% increase from FY2023's HK$6,704,684[23]. - Gross profit decreased by 7% to HK$2,617,462 in FY2024, down from HK$2,822,383 in FY2023[23]. - EBITDA for FY2024 was HK$2,197,255, reflecting an 11% decline compared to FY2023's HK$2,469,511[23]. - Profit attributable to equity holders of the company fell by 14% to HK$1,019,609 in FY2024 from HK$1,187,412 in FY2023[23]. - Basic earnings per share decreased to 35.64 HK cents in FY2024, down from 41.51 HK cents in FY2023, a 14% drop[23]. - Total assets increased by 5% to HK$35,889,362 as of December 31, 2024, compared to HK$34,220,661 in the previous year[23]. - Total liabilities also rose by 5% to HK$21,897,684 in FY2024 from HK$20,768,319 in FY2023[23]. - The return on shareholders' equity decreased to 8.8% in FY2024, down from 10.6% in FY2023, a decline of 1.8 percentage points[23]. - The total dividend per share for FY2024 was 11.90 HK cents, a decrease of 4% from 12.44 HK cents in FY2023[23]. - Net asset value per share increased by 4% to 4.14 HK$ in FY2024, up from 3.99 HK$ in FY2023[23]. Operational Highlights - The Group treated approximately 1.763 billion m³ of wastewater and produced around 48.5 million m³ of reusable water in FY2024[48]. - The Group secured the Zhengzhou Airport Economy Zone Waste Water Treatment Project, marking significant business expansion in Henan's water market[39]. - The Group established two R&D bases in China to enhance research capabilities for industrial wastewater treatment[46]. - The Group was awarded the "ListCo Excellence Award" for the fifth consecutive year, recognizing its outstanding performance[39]. - The Group launched a series of environmental protection activities, engaging local communities to promote green and low-carbon development[34]. - The Group signed a memorandum of understanding to explore cooperation opportunities in Indonesia, enhancing international collaboration[39]. - The Group's "Five Innovations" initiative improved the quality and efficiency of intelligent water treatment plant construction[47]. - The Group was shortlisted as one of the "Top Ten Influential Enterprises in China's Water Industry" for the seventh consecutive year[34]. - The Group secured the Anyang Municipal Waste Water Treatment Centre Phase I Project, marking a significant breakthrough in Henan's water market[36]. Strategic Initiatives - The Group is actively exploring new strategies for market expansion and technological advancements in its operations[10]. - The Group is focusing on both asset-light and asset-heavy business strategies to enhance synergistic growth[64]. - The Group invested in 5 new projects with a total investment value of approximately RMB 896 million and signed 2 supplementary agreements, while undertaking asset-light businesses with a total contract value of approximately RMB 1.033 billion[67][69]. - The Group's new municipal wastewater treatment capacity added was 103,000 m³/day, with industrial wastewater treatment capacity of 80,000 m³/day and reusable water supply capacity of 9,000 m³/day[69]. - The Group actively diversified financing channels, optimizing loan tenures, currencies, and interest rates to reduce financial costs[78]. Environmental and Social Responsibility - The Group achieved a "three zeros" goal in safety, environment, and occupational health across all construction projects for the third consecutive year[77]. - The Group actively promotes sustainable development in the water environment sector, contributing to national ecological civilization construction[172]. - The Group developed "Low-Carbon Demonstration Projects" to promote low-carbon development within the industry[173]. - The Group ensures compliance with environmental standards, with operational projects meeting Grade 1A or higher discharge standards[174]. - The Group has received multiple awards for corporate governance and social responsibility, including recognition as one of the "Top Ten Influential Enterprises in China's Water Industry" for the seventh consecutive year[85]. Employee and Organizational Development - The Group employed approximately 1,800 employees, with remuneration based on qualifications, experience, job nature, performance, and market conditions[129]. - The Group implemented a talent-driven strategy, focusing on continuous development and training for employees, including specialized training on various management topics[126]. - The Group established a reserve talent pool and conducted regular employee training to enhance the capabilities of reserve talents and young employees[161]. - The Group's organizational structure was streamlined, resulting in improved operational efficiency and compliance levels[125]. Risk Management and Compliance - The Group's risk management initiatives were strengthened, identifying and assessing principal risks, including policy changes and market competition risks[130]. - The Group's comprehensive management system includes the Environmental, Safety, Health, and Social Responsibility Management System, aimed at standardizing management processes[124]. - The Group's response to market competition includes effective analysis and forecasting of market trends to maintain competitive advantages[137]. - The Group faced increased pressure regarding environmental compliance and safety production management due to new regulations introduced by the PRC government[142]. Future Outlook - The Group aims to become China's leading operator in "water-related" business, focusing on green, low-carbon, and high-quality development[87]. - The Group is committed to innovative breakthroughs and consolidating its strengths in the environmental protection industry amidst increasing market competition[89].

证券研究报告 2025 年 2 月 26 日 公司研究 | 业绩报告总结 (持有，目标价 1.57 元) 光大水务(1857 HK) | 主要数据 | | --- | | 2025E 平均市盈率 (x) 3.6 | | 2025E 平均市净率(x) 0.37 | | 2025E 平均股息收益率(%) 8.5 | | 资料来源：彭博 | | 股价表现 (%) | | | --- | --- | | 个月 1.4 | 1 | | 个月 2.9 | 3 | | 今年以来 -0.7 | | | 资料来源：彭博 | | 2024 年纯利下跌 14%；派息率提高 2024 年盈利同比下跌 14%。光大水务公布 2024 年业绩，期内收入 68.5 亿港元， 同比增长 2%，归属于母公司盈利 10.2 亿港元，同比减少 14%，每股中期股息 5.81 港仙，全年派息 11.9 港仙，派息比率由 30%提高至 33%。收入增长惟盈利下跌主 要因为 1）建造服务收入比重增加及建造服务成本增加，令整体毛利率下调 4 个 百分点至 38%；2)行政开支同比增长 10%。 建造收入占比上升至 39%。由于期内筹建项目先后开工，年内建 ...

证券研究报告 2025 年 2 月 26 日 公司研究 | 业绩报告总结 (持有，目标价 1.57 元) 光大水务(1857 HK) | 主要数据 | | --- | | 2025E 平均市盈率 (x) 3.6 | | 2025E 平均市净率(x) 0.37 | | 2025E 平均股息收益率(%) 8.5 | | 资料来源：彭博 | | 股价表现 (%) | | | --- | --- | | 个月 1.4 | 1 | | 个月 2.9 | 3 | | 今年以来 -0.7 | | | 资料来源：彭博 | | 2024 年纯利下跌 14%；派息率提高 2024 年盈利同比下跌 14%。光大水务公布 2024 年业绩，期内收入 68.5 亿港元， 同比增长 2%，归属于母公司盈利 10.2 亿港元，同比减少 14%，每股中期股息 5.81 港仙，全年派息 11.9 港仙，派息比率由 30%提高至 33%。收入增长惟盈利下跌主 要因为 1）建造服务收入比重增加及建造服务成本增加，令整体毛利率下调 4 个 百分点至 38%；2)行政开支同比增长 10%。 建造收入占比上升至 39%。由于期内筹建项目先后开工，年内建 ...

Financial Performance - Revenue for the fiscal year ended December 31, 2024, was HKD 6,851,918,000, a slight increase of 2% compared to HKD 6,704,684,000 in the fiscal year 2023[3] - EBITDA for the fiscal year 2024 was HKD 2,197,255,000, a decrease of 11% from HKD 2,469,511,000 in fiscal year 2023[3] - Profit before tax for fiscal year 2024 was HKD 1,446,060,000, down 13% from HKD 1,666,123,000 in fiscal year 2023[4] - Profit attributable to equity holders of the company was HKD 1,019,609,000, a decrease of 14% from HKD 1,187,412,000 in fiscal year 2023[4] - Gross profit for the fiscal year 2024 was HKD 2,617,462,000, a decrease of 7% from HKD 2,822,383,000 in fiscal year 2023[4] - Total comprehensive income for the fiscal year 2024 was HKD 856,471,000, an increase of 5% from HKD 815,293,000 in fiscal year 2023[4] - The overall gross profit margin was 38%, down 4 percentage points from 42% in fiscal year 2023[63] - Basic and diluted earnings per share for 2024 were HKD 35.64, compared to HKD 41.51 in 2023, indicating a decline of about 14.2%[39] Dividends - The total dividend for fiscal year 2024 was HKD 0.1190 per share, compared to HKD 0.1244 per share in fiscal year 2023, representing a decrease of 4.3%[3] - The company declared a total dividend of HKD 340,516 thousand for the year, which includes HKD 165,424 thousand for the 2023 final dividend and HKD 175,092 thousand for the 2024 interim dividend[12] - The group proposed a final dividend of HKD 5.81 per share for 2024, unchanged from 2023, while the interim dividend decreased from HKD 6.63 to HKD 6.09 per share[36] - The board has proposed a final dividend of HKD 0.0581 per share for the fiscal year 2024, totaling HKD 0.1190 per share for the year[80] Assets and Liabilities - Non-current assets totaled HKD 25,931,236,000 as of December 31, 2024, an increase from HKD 24,619,309,000 in 2023[8] - Total assets increased to HKD 28,367,951 thousand in 2024 from HKD 26,282,210 thousand in 2023, representing a growth of 7.93%[10] - The company's total liabilities decreased to HKD 21,847,684 thousand in 2024 from HKD 22,768,319 thousand in 2023, a decrease of 4.05%[10] - The group's total equity rose to HKD 13,991,678 thousand in 2024, up from HKD 13,452,342 thousand in 2023, marking an increase of 4.01%[10] - The group's accounts receivable increased to HKD 6,071,978,000 in 2024 from HKD 5,060,763,000 in 2023, reflecting an increase of about 20%[40] - The group's total borrowings amounted to HKD 16.39 billion, an increase of HKD 984.24 million from HKD 15.41 billion at the end of the 2023 fiscal year[116] Cash Flow - Cash and cash equivalents were HKD 1,847,805,000 as of December 31, 2024, compared to HKD 1,881,401,000 in 2023[8] - The net cash flow used in investing activities was HKD (296,431), significantly higher than HKD (16,641) in 2023, indicating increased investment expenditures[16] - The company reported a net cash flow from financing activities of HKD 358,231, a turnaround from a negative cash flow of HKD (379,285) in the previous year[16] - The group recorded a net cash outflow from operating activities of HKD 57.94 million for the fiscal year 2024, with cash inflow before working capital changes at HKD 2.33802 billion[107] Operational Highlights - The group operates a single business segment focused on water environment management, including municipal wastewater treatment and industrial wastewater treatment[24] - The group has diversified its financing channels, issuing asset-backed securities in April 2024 to raise RMB 2 billion for debt repayment and operational funding[75] - The group has implemented energy-saving transformations through technical upgrades, resulting in cost reductions and efficiency improvements[72] - The group has received approval to increase water prices at 5 wastewater treatment plants by 6% to 87%, with total subsidies amounting to approximately RMB 41 million[72] Risk Management - The group has identified major risks including policy changes related to water treatment and environmental regulations, which could adversely affect operational performance[131] - The group faces accounts receivable risks due to potential delays in payments from local governments, which could impact cash flow and profitability[139] - The company faced engineering management risks due to design defects, personnel shortages, and material price fluctuations, impacting project progress and cost control[142] Corporate Governance - The company maintains high standards of corporate governance, adhering to the principles of the Singapore Corporate Governance Code and the Hong Kong Listing Rules[157] - The strategic committee is responsible for overseeing the group's strategic plans and performance related to sustainability and governance factors[166] - The nomination committee has reviewed the independence of independent non-executive directors and the overall performance of the board[165] Employee Engagement - The group has implemented a talent development strategy, conducting various training programs to empower employees and enhance their skills[128] - The group employs approximately 1,800 employees as of December 31, 2024, providing various benefits including retirement plans and medical coverage[129] - The company is committed to continuous employee education and skill enhancement to improve overall workforce capabilities[129]

Financial Performance - Revenue for the six months ended June 30, 2024, increased by 9% to HK$3,352,595, compared to HK$3,082,000 in the same period of 2023[9] - Gross profit decreased by 10% to HK$1,269,233, down from HK$1,409,741 in the previous year[10] - EBITDA for the period was HK$1,196,486, reflecting a 7% decline from HK$1,287,800 in 2023[10] - Profit attributable to equity holders of the company decreased by 8% to HK$581,146, compared to HK$632,188 in the prior year[10] - Basic earnings per share fell by 8% to HK$20.31, down from HK$22.10 in 2023[10] - The overall gross profit margin was 38%, down 8 percentage points from 46% in the same period last year[22] - Profit before tax decreased to HK$815,307, a decline of 7.3% from HK$879,931 in 1HFY2023[122] - Profit for the period was HK$627,568, compared to HK$674,854 in the same period last year, reflecting a decrease of 7%[124] - The total comprehensive income for the period was HK$470,469, an increase of 18.4% from HK$397,262 in 1HFY2023[124] Assets and Liabilities - Total assets increased by 3% to HK$35,210,411, compared to HK$34,220,661 at the end of 2023[13] - Total liabilities also rose by 3% to HK$21,417,839, up from HK$20,768,319[13] - Equity attributable to equity holders increased by 2% to HK$11,676,607, compared to HK$11,406,121 in the previous year[14] - Net asset value per share improved by 2% to HK$4.08, up from HK$3.99[14] - The gearing ratio remained stable at 60.8%, slightly up from 60.7%[14] - As of June 30, 2024, total assets amounted to approximately HK$35.21 billion, with net assets of HK$13.79 billion[45] - Outstanding borrowings increased to HK$16.12 billion as of June 30, 2024, up by HK$714.86 million from HK$15.41 billion at the end of FY2023[51] - Current liabilities decreased to HK$6,884,803,000 as of June 30, 2024, down from HK$7,938,451,000 as of December 31, 2023, indicating a reduction of 13.3%[130] - Total equity attributable to equity holders of the Company increased to HK$13,792,572,000 as of June 30, 2024, compared to HK$13,452,342,000 as of December 31, 2023, representing a growth of 2.5%[132] Investments and Projects - The Group invested in and held 169 environmental protection projects with a total investment of approximately RMB 32.151 billion as of 30 June 2024[22] - The Group secured 3 new projects in 1HFY2024, involving a total investment of approximately RMB 1.371 billion, adding a designed daily municipal waste water treatment capacity of 200,000 m³[25] - The total number of projects increased to 179, with a combined water treatment/supply capacity of 7,668,100 m³/day[19] - The Group commenced construction on three projects with a designed daily reusable water supply of 9,000 cubic meters and a daily livestock manure treatment capacity of 300 tonnes[30] - As of June 30, 2024, the Group treated approximately 800 million cubic meters of wastewater and supplied approximately 22 million cubic meters of reusable water[28] Revenue Sources - Revenue from water environment management for the six months ended June 30, 2024, was HK$3,352,595,000, an increase of 8.8% from HK$3,082,000,000 in the same period of 2023[171] - Revenue from contracts with local government authorities in the PRC amounted to HK$3,178,057,000 for the six months ended June 30, 2024, compared to HK$2,911,497,000 for the same period in 2023, reflecting a growth of 9.2%[182] - Construction service revenue rose to HK$1,355.41 million, up from HK$826.69 million in 1HFY2023, while operating income decreased to HK$1,301.26 million from HK$1,557.19 million[43] Dividends and Shareholder Returns - The Group declared an interim dividend of HK6.09 cents per ordinary share for 1HFY2024, compared to HK6.63 cents for 1HFY2023, reflecting a decrease of approximately 8.14%[40] - The company paid dividends to shareholders amounting to HK$167,626,000, compared to HK$146,851,000 in the previous year[152] Corporate Governance - The company has complied with the principles and provisions under Singapore's Code of Corporate Governance 2018 and Hong Kong's Corporate Governance Code throughout 1HFY2024[104] - The Audit Committee reviewed the audited consolidated financial results for FY2023 and the internal and external auditor's reports during 1HFY2024[107] - The Board held four meetings during 1HFY2024, maintaining regular oversight of corporate governance practices[105] Risk Management - The Group's risk management initiatives identified and assessed principal risks, maintaining unchanged risk levels during the review period[70] - The Group is exposed to policy change risks related to wastewater treatment and other environmental regulations, which could adversely affect operating results[71] - The Group has established measures to monitor changes in laws and policies, ensuring timely internal dissemination and implementation of new regulations[71] Community Engagement and Environmental Responsibility - The Group launched its "World Environment Day" activities, engaging over 2,000 local residents and welcoming approximately 8,000 visitors to its projects in the first half of FY2024[36] - The Group's commitment to social responsibility includes ongoing community engagement through various environmental initiatives and public welfare activities[38] - The Group's initiatives include organizing public visits and training workshops to educate the community on environmental protection[95] - The Group continues to engage the public through online and offline events in collaboration with ecological organizations and government departments[95] Technological Innovation - In 1HFY2024, the Group provided in-house developed technological processes with a total contract value of approximately RMB 40 million and was granted 4 new patents[26] - The Group added four new patents and published one core paper during the review period, enhancing its technological innovation capabilities[27] Employee Management - The Group employed 1,660 employees, with remuneration based on qualifications, experience, job nature, performance, and market conditions[69] - The Group implemented a talent-driven strategy, conducting specialized training on various topics to empower employees and managers[68] - The Group emphasizes employee well-being through continuous improvement of promotion and incentive mechanisms[68] Financial Management - The Group issued asset-backed securities in April 2024, raising RMB 2 billion to repay high-interest loans and replenish working capital[35] - In January 2024, the Group issued medium-term notes totaling RMB 1.5 billion to support working capital and repay interest-bearing debts[35] - The Group enhanced liquidity management by conducting cash flow projections and leveraging financial instruments to accelerate cash recovery[79]

Financial Performance - Revenue for the first half of the fiscal year 2024 was HKD 3,352,595,000, representing a 9% increase compared to HKD 3,082,000,000 in the same period of fiscal year 2023[2] - EBITDA for the first half of fiscal year 2024 was HKD 1,196,486,000, a decrease of 7% from HKD 1,287,800,000 in the first half of fiscal year 2023[2] - Profit attributable to equity holders for the first half of fiscal year 2024 was HKD 581,146,000, down 8% from HKD 632,188,000 in the same period last year[2] - Gross profit for the first half of fiscal year 2024 was HKD 1,269,233,000, a decrease of 10% from HKD 1,409,741,000 in the previous year[4] - Total comprehensive income for the first half of fiscal year 2024 was HKD 470,469,000, an increase of 18% from HKD 397,262,000 in the same period last year[5] - The overall gross profit margin decreased to 38% from 46%, a decline of 8 percentage points year-on-year[49] - The basic earnings per share for the first half of fiscal year 2024 was HKD 20.31, down from HKD 22.10 in the first half of fiscal year 2023, representing a decline of about 8.1%[31] Dividends - The interim dividend per share for ordinary shares was HKD 0.0609, compared to HKD 0.0663 in the first half of fiscal year 2023[2] - The company declared an interim dividend of HKD 6.09 per share for the first half of fiscal year 2024, down from HKD 6.63 per share in the same period of fiscal year 2023, which is a decrease of approximately 8.1%[29] - The company declared a dividend of HKD 165,424 thousand for the year-end 2023, which was paid during the reporting period[8] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled HKD 25,305,154,000, an increase from HKD 24,619,309,000 as of December 31, 2023[6] - Current assets as of June 30, 2024, amounted to HKD 9,905,257,000, compared to HKD 9,601,352,000 at the end of the previous year[6] - As of June 30, 2024, total current liabilities decreased to HKD 6,884,803 thousand from HKD 7,938,451 thousand, representing a reduction of approximately 13.3%[7] - The group's total assets less current liabilities increased to HKD 28,325,608 thousand from HKD 26,282,210 thousand, reflecting a growth of about 7.8%[7] - Non-current liabilities rose to HKD 14,533,036 thousand from HKD 12,829,868 thousand, indicating an increase of approximately 13.3%[7] - The net assets of the group increased to HKD 13,792,572 thousand from HKD 13,452,342 thousand, showing a growth of about 2.5%[7] Cash Flow - Operating cash flow before tax profit for the first half of FY2024 was HKD 815,307,000, a decrease of 7.3% compared to HKD 879,931,000 in the first half of FY2023[11] - Net cash used in operating activities for the first half of FY2024 was HKD (422,256,000), an improvement from HKD (534,826,000) in the same period last year[11] - Cash flow from investing activities generated a net cash inflow of HKD 14,292,000, compared to HKD 4,065,000 in the first half of FY2023[12] - Cash flow from financing activities resulted in a net cash inflow of HKD 382,787,000, a significant recovery from HKD (22,448,000) in the previous year[12] - Total cash and cash equivalents at the end of FY2024's first half were HKD 1,813,216,000, down from HKD 2,264,267,000 at the end of FY2023's first half[12] Revenue Breakdown - For the first half of the fiscal year 2024, the total revenue from construction services, financial income, and operational income from local government agencies in China amounted to HKD 3,178,057,000, compared to HKD 2,911,497,000 in the first half of the fiscal year 2023, representing an increase of approximately 9.2%[21] - The revenue from the water environment management business for the first half of fiscal year 2024 was HKD 3,352,595,000, up from HKD 3,082,000,000 in the same period of fiscal year 2023, indicating a growth of about 8.8%[23] - The company reported construction contract revenue of HKD 1,355,412,000 for the first half of fiscal year 2024, significantly higher than HKD 826,692,000 in the same period of fiscal year 2023, marking an increase of about 63.7%[23] Financial Position - The total accounts receivable as of June 30, 2024, was HKD 6,109,836 thousand, an increase from HKD 5,617,886 thousand as of December 31, 2023, showing a growth of approximately 8.8%[32] - The aging analysis of accounts receivable shows that amounts overdue for more than 13 months increased to HKD 1,559,205,000 from HKD 1,271,029,000, reflecting a rise of 22.6%[35] - The group's contract assets totaled HKD 22,671,942,000 as of June 30, 2024, compared to HKD 21,937,417,000 as of December 31, 2023, indicating an increase of about 3.3%[42] Risk Management - The company is closely monitoring legal and policy changes related to environmental regulations to mitigate risks associated with policy shifts[88] - The company has implemented measures to enhance receivables management, including regular meetings and a structured recovery plan, to mitigate risks associated with local government payment delays[92] - The company is actively managing financing risks by monitoring the financing environment and adjusting loan structures to control costs and ensure sufficient liquidity[96] - The company is addressing cost control risks by optimizing operational efficiency and leveraging centralized procurement to manage rising material and labor costs[97][98] Corporate Governance - The company is committed to high standards of corporate governance, adhering to the principles and provisions of the Singapore Corporate Governance Code and the Hong Kong Corporate Governance Code[102] - The Audit Committee, consisting of four independent non-executive directors, has reviewed the audited consolidated financial performance for the 2023 fiscal year[104] - The Remuneration Committee is responsible for determining the remuneration of directors and key management personnel, ensuring alignment with the company's long-term interests and risk policies[105] Employee and Community Engagement - The company emphasizes continuous employee development through various training programs, enhancing skills and knowledge[86] - The company has a strong commitment to employee welfare, providing benefits such as retirement plans and medical coverage[86] - The company actively collaborates with ecological and environmental organizations to promote environmental education and awareness[101]

Water Treatment Capacity and Projects - As of December 31, 2023, Everbright Water's designed daily water treatment capacity exceeds 7.4 million m³[9] - The Group secured 6 new projects in FY2023 with a total investment of approximately RMB 1.213 billion, adding a designed daily municipal wastewater treatment capacity of 45,000 m³[26] - The Group undertook 2 O&M projects and 3 EPCO projects during the year, with a total contract value of approximately RMB 1.914 billion, contributing an additional designed daily wastewater treatment capacity of 100,000 m³[26] - The Group had 18 new projects commenced construction with a designed daily waste water treatment capacity of 325,000 m³, and 13 projects completed construction with a capacity of 130,000 m³[30] - As of December 31, 2023, the Group had 9 projects in the preparatory stage, with a designed daily waste water treatment capacity of 292,000 m³[32] Financial Performance - For FY2023, the Group recorded a revenue of HK$6.70 billion, a slight decrease of 0.3% from HK$6.73 billion in FY2022; EBITDA increased by 13% to HK$2.47 billion[25] - Profit attributable to equity holders reached HK$1.19 billion, representing a 17% increase from HK$1.01 billion in FY2022; basic earnings per share were HK41.51 cents, up 17% from HK35.32 cents[25] - Overall gross profit margin improved to 42%, up by 4 percentage points from 38% in FY2022[25] - The company maintained a healthy financial position and positive results in major operating indicators, focusing on "water-related" businesses and high-quality development[21] - The company is committed to enhancing its core capabilities and competitiveness while optimizing governance to support high-quality development[18] Business Expansion and Diversification - In 2023, the volume and contract value of asset-light businesses reached historic highs, indicating a successful transition from a capital-driven to a capability-driven approach[15] - Everbright Water expanded its business into non-point source pollution control and rural environmental management, contributing to rural revitalization[15] - The company has made breakthroughs in industrial wastewater treatment and resource utilization of livestock manure, expanding its business into pollution control and rural environmental governance[16] - The Group expanded its business into livestock and poultry manure resource utilization with a project in Guangdong Province, marking its entry into this new market[25] Digital Transformation and Innovation - Significant progress was made in digital transformation with the establishment of an intelligent water management platform and the construction of intelligent water treatment plants[15] - The company completed the construction and trial operation of a smart water management platform, enhancing operational management and digital transformation[17] - The Group initiated over 10 R&D projects in FY2023, resulting in multiple achievements and the development of an intelligent management platform[27] - The Group provided in-house developed technological processes to clients, amounting to a total contract value of approximately RMB 192 million, and was granted 28 new patents[27] Environmental and Safety Management - The Group implemented the "Triple Three" leadership system for safety and environmental management to ensure compliance with emission standards[15] - The Group successfully implemented a "Dual Zero" goal, achieving zero safety accidents and zero environment-related incidents during the year[31] - The Group's proactive approach to environmental compliance has prevented major risk incidents during the year under review[109] - The Group adheres to national and international standards for sludge management, including the World Bank Group's guidelines, to minimize environmental impacts[200] Shareholder Returns and Dividends - In 2023, the company achieved a total dividend of HK12.44 cents per ordinary share, an increase from HK10.59 cents in FY2022, reflecting a growth of approximately 17.4%[18] - The company recommended a final dividend of HK5.81 cents per ordinary share for FY2023, an increase from HK5.14 cents in FY2022, resulting in a total dividend of HK12.44 cents per share for FY2023 compared to HK10.59 cents in FY2022[53][56] - The company aims to enhance shareholder returns through the proposed dividend[134] Governance and Management - The company is committed to sustainable corporate development, reflecting resilience in the face of global economic challenges[54] - The company is focused on expanding its operations in environmental management and engineering sectors[161] - The Board includes members with advanced degrees in relevant fields, enhancing strategic decision-making capabilities[164][166] - The recent appointments to the Board reflect a commitment to strengthening governance and strategic oversight[159][164] Market Conditions and Risks - The external environment for 2024 is expected to be increasingly complex and uncertain, but the company remains focused on ecological civilization construction and green transformation[18] - The environmental water industry remains fiercely competitive, influenced by global economic uncertainties and regulatory changes[98] - The Group faces risks related to regulatory changes in China's environmental policies, which could impact project viability and operational feasibility[106] - The risk of trade receivables remains high due to the ongoing economic recovery and fiscal challenges faced by local governments[111] Community Engagement and Public Awareness - The Group actively participated in public welfare activities, receiving over 9,000 visitors to its projects, promoting environmental protection awareness[38] - A total of 45 projects were opened to the public, receiving 11,023 visitors in 308 batches during FY2023, enhancing public awareness of water resources[129] - The Group attracted over 160,000 online views for virtual tours of its wastewater treatment facilities in FY2023, utilizing various online platforms[129] Sustainability and Environmental Goals - The company aims to support high-quality development through a high-quality ecological environment, as outlined in government policies[55] - The Group is committed to promoting green development and ecological environmental protection in response to the PRC government's "14th Five-Year Plan" and the long-term objectives for 2035, targeting "Dual Carbons" goals[192] - The Group has developed multiple "low-carbon demonstration projects" to promote green and low-carbon development, aligning with the "Dual Carbons" strategic goal[125]

Financial Performance - Revenue for the fiscal year ended December 31, 2023, was HKD 6,704,684,000, a slight decrease of 0.3% compared to HKD 6,727,967,000 in the previous fiscal year[2] - EBITDA for the fiscal year was HKD 2,469,511,000, representing a 13% increase from HKD 2,180,523,000 in the previous year[2] - Profit before tax increased by 21% to HKD 1,666,123,000 from HKD 1,382,010,000 in the previous fiscal year[5] - Profit attributable to equity holders of the company rose by 17% to HKD 1,187,412,000, compared to HKD 1,010,565,000 in the previous year[6] - The total dividend for the fiscal year was HKD 12.44 cents per share, an increase from HKD 10.59 cents per share in the previous fiscal year[2] - The company reported a comprehensive income of HKD 815,293,000, compared to a comprehensive loss of HKD 605,687,000 in the previous year[4] - The company's basic and diluted earnings per share increased by 17% to HKD 41.51 cents from HKD 35.32 cents in the previous fiscal year[6] - The company's profit for the year ended December 31, 2023, was HKD 10,802,450, a decrease from HKD 10,961,586 in the previous year, reflecting a decline of approximately 1.45%[12] Assets and Liabilities - Non-current assets totaled HKD 24,619,309,000, slightly up from HKD 24,514,612,000 in the previous year[7] - Current assets increased to HKD 9,601,352,000 from HKD 8,931,539,000 in the previous year[7] - The company's total assets increased to HKD 26,282,210 thousand in 2023, up from HKD 24,527,619 thousand in 2022, reflecting a growth of about 7%[8] - As of December 31, 2023, total current liabilities decreased to HKD 7,938,451 thousand from HKD 8,918,532 thousand in 2022, representing a reduction of approximately 11%[8] - Non-current liabilities rose to HKD 12,829,868 thousand in 2023, compared to HKD 11,526,741 thousand in 2022, indicating an increase of approximately 11%[8] - The net assets of the company reached HKD 13,452,342 thousand as of December 31, 2023, compared to HKD 13,000,878 thousand in the previous year, marking an increase of about 3%[8] - The company's total liabilities as of December 31, 2023, were HKD 5,617,886,000, compared to HKD 4,323,856,000 in 2022, reflecting an increase of about 29.9%[33] Cash Flow and Investments - Operating cash flow for the fiscal year 2023 was HKD 1,666,123, an increase of 20.6% compared to HKD 1,382,010 in fiscal year 2022[13] - The net cash used in investing activities was HKD 16,641, a significant improvement from HKD 353,944 in the previous year, indicating a reduction in investment outflows[14] - The total cash and cash equivalents at the end of the year were HKD 1,861,907, down from HKD 2,844,990 at the beginning of the year, indicating a decrease of approximately 34.3%[14] - The company’s cash and cash equivalents decreased to HKD 1,881,401,000 from HKD 2,845,907,000 in the previous year[7] Revenue Breakdown - Revenue from construction services, financial income, and operational income from local government agencies in China totaled HKD 6,179,504,000 for fiscal year 2023, down from HKD 6,357,746,000 in fiscal year 2022[23] - The company reported a decrease in construction service revenue from service concession arrangements to HKD 2,066,019,000 in fiscal year 2023, down from HKD 2,403,740,000 in fiscal year 2022, representing a decline of 14%[23] - The operational income from service concession arrangements rose to HKD 3,104,693,000 in fiscal year 2023, an increase of 5.2% from HKD 2,950,629,000 in fiscal year 2022[23] Dividends - The company declared a total dividend of HKD 336,291 thousand for the year, including HKD 146,390 thousand for the 2022 final dividend and HKD 189,901 thousand for the 2023 interim dividend[9] - The company proposed a final dividend of HKD 5.81 per share for the fiscal year 2023, compared to HKD 5.14 per share in 2022, representing an increase of approximately 13.0%[29] Financial Efficiency - The company reported a decrease in financial expenses to HKD 590,921 from HKD 544,615, reflecting a 8.5% increase in financial efficiency[13] - The company’s depreciation and amortization expenses totaled HKD 212,467, down from HKD 254,898, indicating a decrease of approximately 16.7%[13] Risk Management - The company faces significant risks including policy changes, market competition, and environmental compliance, with risk levels remaining unchanged[96][97] - The company is facing high accounts receivable risk due to reliance on local government clients, with ongoing efforts to improve collection processes[102] - The company has maintained effective risk management measures across various areas, including engineering management, personnel allocation, financing, cost control, technology and innovation, and legal compliance, with risk levels remaining unchanged throughout the year[103][104][105][106][107][108]. Corporate Governance - The company has adopted the principles and provisions of the Hong Kong Corporate Governance Code and the Singapore Corporate Governance Code to ensure high standards of corporate governance[111] - The Audit Committee reviewed the audited financial performance for the fiscal year 2022 and the unaudited financial performance for the six months ending June 30, 2023[113] Environmental and Social Responsibility - The company aims to focus on sustainable development and has actively participated in public environmental education activities, receiving over 9,000 visitors for project tours[57] - The company has maintained effective control over environmental compliance and safety management, with no major incidents reported during the year[101] - The company has developed low-carbon demonstration projects in line with national dual carbon strategy goals, promoting green and low-carbon development in the industry[109]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$3,082,000, a decrease of 11% compared to HK$3,478,939 in 2022[8] - Gross profit increased by 16% to HK$1,409,741 from HK$1,219,964 in the previous year[9] - EBITDA rose by 21% to HK$1,287,800, up from HK$1,066,673 in 2022[9] - Profit attributable to equity holders of the company increased by 22% to HK$632,188 from HK$520,056[9] - Basic earnings per share increased by 22% to HK$22.10 from HK$18.18[9] - Interim dividend per share was HK$6.63, a 22% increase from HK$5.45 in the previous year[10] - For the six months ended 30 June 2023, the Group recorded a revenue of HK$3.08 billion, a decrease of 11% from HK$3.48 billion in the same period last year[22] - EBITDA increased by 21% from HK$1.07 billion to HK$1.29 billion, while profit attributable to equity holders rose by 22% from HK$520.06 million to HK$632.19 million[22] - The basic earnings per share increased by 22% from HK18.18 cents to HK22.10 cents, with an overall gross profit margin of 46%, up 11 percentage points from 35%[22] - Profit before tax rose to HK$879,931, up 27.2% from HK$691,633 in the prior year[126] - Profit for the period was HK$674,854, an increase of 22.5% compared to HK$550,537 in the same period of 2022[126] Assets and Liabilities - Total assets as of June 30, 2023, were HK$33,522,929, a slight increase of 0% from HK$33,446,151 at the end of 2022[12] - Total liabilities decreased by 1% to HK$20,275,589 from HK$20,445,273[12] - Equity attributable to equity holders of the company increased by 2% to HK$11,196,463 from HK$10,967,490[13] - Gearing ratio improved to 60.5% from 61.1%, a decrease of 0.6 percentage points[13] - As of June 30, 2023, total assets amounted to approximately HK$33.52 billion, with net assets of HK$13.25 billion[47] - Cash and bank balances as of June 30, 2023, were approximately HK$2.27 billion, down HK$580 million from HK$2.85 billion at the end of FY2022[49] - As of June 30, 2023, the Group had outstanding borrowings of HK$15.49 billion, an increase of HK$230 million from HK$15.26 billion at the end of FY2022[54] - The borrowings included secured interest-bearing borrowings of HK$2.51 billion and unsecured interest-bearing borrowings of HK$12.97 billion, with approximately 87% denominated in RMB[54] Project Development and Operations - As of 30 June 2023, the Group invested in and held 166 environmental protection projects with a total investment of approximately RMB30.8 billion[22] - The Group secured 5 waste water treatment projects with a total investment of approximately RMB1.163 billion, adding a designed daily municipal waste water treatment capacity of 45,000 m³[25] - During the Review Period, the Group undertook 2 EPCO projects with a total contract value of approximately RMB1.07 billion, contributing an additional designed daily waste water treatment capacity of 60,000 m³[25] - The total number of projects increased to 173, with a combined water treatment/supply capacity of 7,428,700 m³/day[20] - The Group treated approximately 846 million m³ of wastewater and supplied about 21.6 million m³ of reclaimed water during the review period[29] - The Group launched 9 new construction projects with a designed daily wastewater treatment capacity of 40,000 m³ and completed 4 projects with a capacity of 90,000 m³/day[30] Research and Development - The Group identified over 10 key topics for R&D, including intelligent water treatment plants and biological denitrification, and was granted 14 patents during the period[26] - The Group has strengthened its R&D efforts in business technologies and brought in technology specialists to drive technological innovation, adhering to a "Technology-Driven Development" approach[89] - All projects under the Group are either certified or actively applying for international management standard certificates, including ISO 9001, ISO 14001, and ISO 45001[91] Risk Management - The Group has continuously optimized its risk prevention and control system to address material risks effectively[65] - The Group's risk levels for policy changing risk, new business investment risk, and environmental compliance risk remain unchanged, indicating effective management[71] - The Group is exposed to risks associated with changes in regulations and policies related to wastewater treatment and ecological restoration, which could negatively impact operations and development prospects[75] - The Group faced high trade receivables risk due to the ongoing recovery of the PRC economy, influenced by past COVID-19 regulations and international trade conflicts[81] - Financing management risks are managed by monitoring the financing environment and adjusting borrowing structures as needed, ensuring sufficient capital reserves[86] Corporate Governance - The company is committed to high standards of corporate governance to enhance long-term value and protect shareholders' interests[114] - The company has complied with the principles and provisions of both the Singapore and Hong Kong Corporate Governance Codes throughout the first half of FY2023[114] - The Audit Committee reviewed the audited consolidated financial results for FY2022 and the unaudited interim results for 1HFY2023[115] - The Remuneration Committee assessed the remuneration framework for FY2023 for Directors and Key Management Personnel[118] - The Nominating Committee evaluated the performance of individual Directors and the overall Board performance during 1HFY2023[120] Community Engagement and Environmental Responsibility - The Group's commitment to enhancing public awareness on water resources is reflected in its proactive response to government initiatives and community engagement efforts[98] - The Group has received various awards for its efforts in environmental education, including titles such as "Environmental Education Base" and "Science Popularisation and Education Base" at provincial and municipal levels[98] - The Group continues to launch various online and offline activities in collaboration with environmental protection and technology associations, as well as government organizations, to broaden public participation[98]