Financial Performance - Revenue for the first half of 2023 was HKD 3,082,000,000, a decrease of 11% compared to HKD 3,478,939,000 in the same period of 2022[2] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 21% to HKD 1,287,800,000 from HKD 1,066,673,000 year-on-year[2] - Profit before tax rose by 27% to HKD 879,931,000, compared to HKD 691,633,000 in the previous year[5] - Profit attributable to equity holders increased by 22% to HKD 632,188,000 from HKD 520,056,000 in the same period last year[6] - The interim dividend per share was increased to HKD 0.0663, up from HKD 0.0545 in the previous year[2] - Gross profit margin improved to 45.7%, up from 35.1% in the previous year, despite a decrease in revenue[5] - Total comprehensive income for the period was HKD 397,262,000, compared to a loss of HKD 206,714,000 in the same period last year[4] - The company reported a significant increase in perpetual capital instrument holders' profit by 845% to HKD 12,300,000 from HKD 1,302,000[6] - Operating cash flow before tax profit for the first half of 2023 was HKD 879,931, an increase of 27.2% compared to HKD 691,633 in the same period of 2022[12] - Net profit attributable to equity holders increased by 22% to HKD 6.3219 billion, up from HKD 5.5054 billion in the same period of 2022[65] Assets and Liabilities - Non-current assets totaled HKD 24,295,945,000, a slight decrease from HKD 24,514,612,000 at the end of 2022[7] - Current assets increased to HKD 9,226,984,000 from HKD 8,931,539,000 at the end of 2022[7] - As of June 30, 2023, total current liabilities increased to HKD 9,724,958 thousand from HKD 8,918,532 thousand as of December 31, 2022, representing an increase of approximately 9.1%[8] - Total assets decreased to HKD 23,797,971 thousand from HKD 24,527,619 thousand, a decline of about 3.0%[8] - Non-current liabilities decreased to HKD 10,550,631 thousand from HKD 11,526,741 thousand, a reduction of approximately 8.4%[8] - The equity attributable to the company's equity holders increased to HKD 11,196,463 thousand from HKD 10,967,490 thousand, reflecting a growth of about 2.1%[9] - The retained earnings of the company increased to HKD 6,028,336 thousand as of June 30, 2023, compared to HKD 5,545,538 thousand at the beginning of the year, marking an increase of approximately 8.7%[9] - The company's borrowings rose to HKD 6,923,916 thousand from HKD 5,686,435 thousand, an increase of approximately 21.8%[8] - Total liabilities increased by HKD 224.89 million, mainly due to new bond issuances and bank loans[78] Cash Flow - Net cash flow from operating activities was HKD (534,826) for the first half of 2023, slightly worse than HKD (519,813) in the first half of 2022[13] - Cash flow from investing activities generated a net amount of HKD 4,065 in the first half of 2023, a significant improvement from HKD (248,009) in the same period of 2022[13] - Cash flow from financing activities resulted in a net outflow of HKD (22,448) in the first half of 2023, compared to a net inflow of HKD 2,313,457 in the first half of 2022[13] - Total cash and cash equivalents at the end of the first half of 2023 were HKD 2,264,267, down from HKD 3,540,521 at the end of the first half of 2022[13] Revenue Breakdown - Revenue from the water environment management business for the first half of 2023 was HKD 3,082 million, a decrease of 11.4% compared to HKD 3,479 million in the same period of 2022[21] - Revenue from construction services, financial income, and operational income from local government agencies in China totaled HKD 2,911 million for the first half of 2023, down from HKD 3,360 million in the same period of 2022[27] - The company’s revenue recognition for services provided over time was HKD 2,395 million in the first half of 2023, down from HKD 2,845 million in the same period of 2022[26] Government Support - Government subsidies received amounted to HKD 15.65 million in the first half of 2023, an increase from HKD 12.72 million in the same period of 2022[29] - Value-added tax refunds rose to HKD 19.53 million in H1 2023, up from HKD 11.73 million in H1 2022, marking a significant increase of 66.5%[70] Operational Highlights - The company operates a single business segment focused on water environment management, which includes municipal wastewater treatment and industrial wastewater treatment[20] - The group operates 173 projects with a total water treatment capacity of 7,428,700 cubic meters per day[57] - The group processed approximately 846 million cubic meters of wastewater and supplied about 21.6 million cubic meters of reclaimed water during the review period[59] Risk Management - The company has identified and effectively managed ten major risks, including policy change risk and market competition risk, maintaining a stable risk level throughout the review period[100] - The group is exposed to high accounts receivable risks due to reliance on local government clients, with ongoing economic recovery affecting payment capabilities[104] - Financing management risks are being effectively controlled, with the group monitoring funding needs and adjusting loan structures to ensure sufficient capital reserves[107] Corporate Governance - The company has established a comprehensive management structure with four board committees and a management committee that meets at least once a month to ensure sustainable development[96] - The company is committed to high standards of corporate governance, regularly reviewing and updating governance practices to comply with Singapore and Hong Kong corporate governance codes[114] - The board of directors holds regular meetings, with at least four meetings per year, and has established four committees: Audit, Remuneration, Nomination, and Strategic Committees[115] Dividends - The company declared an interim dividend of HKD 6.63 per ordinary share for the first half of the 2023 fiscal year, compared to HKD 5.45 per share in the same period of the previous fiscal year, representing an increase of approximately 21.5%[122] - The interim dividend will be paid on September 8, 2023, with the share transfer registration suspension date set for August 25, 2023, for Singapore shareholders[124]

Financial Performance - For FY2022, the Group recorded a revenue of HK$6.73 billion, a decrease of 3% from HK$6.91 billion in FY2021[30]. - EBITDA for FY2022 was HK$2.18 billion, also down 3% from HK$2.25 billion in FY2021[30]. - Profit attributable to equity holders reached HK$1.01 billion, representing a decline of 16% from HK$1.20 billion in FY2021[30]. - Basic earnings per share were HK35.32 cents, indicating a decrease of HK6.64 cents or 16% from HK41.96 cents in FY2021[30]. - The overall gross profit margin for FY2022 was 38%, down 3 percentage points compared to FY2021[30]. - The total dividend for FY2022 reflects a decrease of approximately 15.7% compared to FY2021[15]. - The total dividend for FY2022 was HK10.59 cents per ordinary share, a decrease from HK12.58 cents in FY2021, reflecting the company's commitment to sharing operating results with shareholders[51]. - The Group's gross profit fell by 8% from HK$2,801.59 million in FY2021 to HK$2,563.99 million in FY2022, while profit attributable to equity holders decreased by 16% to HK$1,010.57 million[58][61]. - The return on shareholders' equity for FY2022 was 8.9%, a decrease of 1.8 percentage points from 10.7% in FY2021[166]. Operational Capacity and Projects - As of 31 December 2022, the company's designed daily water treatment capacity exceeded 7.2 million m³[6]. - The Group invested in and held 161 environmental protection projects with a total investment of approximately RMB29.60 billion as of December 31, 2022[27]. - The Group secured 10 new projects with an investment of approximately RMB1.309 billion, increasing daily wastewater treatment capacity by 111,000 m³[31]. - The Group treated approximately 1.770 billion cubic meters of wastewater and supplied approximately 43.63 million cubic meters of reusable water during fiscal year 2022[35]. - As of December 31, 2022, the Group had 18 projects in the preparatory stage, with a total designed daily wastewater treatment capacity of 407,000 cubic meters[40]. - The Group's projects achieved effluent discharge standards that meet or exceed the Class A standard of the Urban Wastewater Treatment Plant Pollutant Discharge Standard (GB18918-2002), significantly reducing environmental impact[130]. Recognition and Awards - Everbright Water was recognized as one of the "Top 10 Influential Enterprises in China's Water Industry" for the fifth consecutive year[14]. - The Group received multiple awards in FY2022, including being named one of the "Top Ten Influential Enterprises in China's Water Industry" for the fifth consecutive year[49]. - The Shandong Zibo Waste Water Treatment Project was named one of the "Top 10 Environmental Facilities Opened to the Public in Shandong Province 2022"[183]. Environmental Initiatives - The Group continues to advocate for green and low-carbon concepts through various environmental protection activities[14]. - The Group's environmental protection initiatives included various public welfare activities and campaigns, such as the "I am a Junior Ecology Guide" online campaign, enhancing community engagement[47][48]. - The Group's initiatives align with China's "dual carbon" strategy, promoting low-carbon development through various carbon reduction and resource utilization measures[129]. - The Group has been recognized for its environmental education efforts, with 14 projects awarded titles as "Environmental Education Base" or "Science Popularization Education Base" at various levels[136]. - All of the Group's projects comply with the Grade 1A or higher standard under the "Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant," minimizing environmental impacts[128]. Financial Management and Strategy - The Group's financing activities in FY2022 were strategically aimed at enhancing operational stability and supporting growth amidst a volatile macro-environment[53][55]. - In FY2022, the Group issued a total of RMB 3.7 billion in financing arrangements, including RMB 1 billion in September, April, and January, and RMB 700 million in June, primarily to replenish working capital and repay outstanding debts[45][49]. - The Group's gearing ratio increased to 61.1% as of December 31, 2022, up from 60.1% at the end of 2021, indicating a rise in financial leverage[59][62]. - Cash and bank balances increased to HK$2.85 billion as of December 31, 2022, up HK$563.92 million from HK$2.28 billion at the end of 2021[60][63]. Risk Management - The Group has established a comprehensive risk management system, identifying key risks such as policy changes, new business investments, market competition, and accounts receivable risks[95]. - New business investment and market competition risks are on an upward trend, while other principal risks remain unchanged due to effective internal controls[97]. - The Group's internal controls have effectively managed risks, maintaining stability in risk levels across various categories[101]. - The Group is facing risks associated with changes in regulations and policies in wastewater treatment and related businesses in the PRC, which may negatively affect new business investments and financial conditions[103]. Employee and Corporate Culture - The Group emphasizes a "People-Oriented" philosophy, focusing on employee well-being and continuous education to improve skills and professional spirit[94]. - The Group had a total of 2,300 employees as of December 31, 2022, with compensation based on qualifications, experience, job nature, performance, and market conditions[93]. - The Group is committed to cultivating corporate culture and enhancing talent training, with effective measures in place to manage staffing risks[114]. Future Outlook - In 2023, the Group anticipates challenges and opportunities, emphasizing the importance of innovation, coordination, and green development in its strategic vision[54][55]. - The future outlook remains optimistic, with expectations of continued resilience in the Chinese economy and opportunities arising from green development initiatives[56].

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$3,478,939, representing a 12% increase from HK$3,112,935 in 2021[10]. - Gross profit decreased by 2% to HK$1,219,964 from HK$1,239,551 in the previous year[11]. - Profit attributable to equity holders of the company was HK$520,056, down 5% from HK$548,178 in 2021[11]. - Basic earnings per share decreased by 5% to HK$18.18 from HK$19.16 in the prior year[11]. - The Group's revenue for 1HFY2022 was HK$3.48 billion, a 12% increase from HK$3.11 billion in the same period last year[25]. - Profit attributable to equity holders decreased by 5% to HK$520.06 million from HK$548.18 million in the previous year[25]. - The overall gross profit margin was 35%, down 5 percentage points from 1HFY2021[25]. - Profit before tax for the period was HK$691,633, a decrease of 11.7% from HK$783,318 in 2021[138]. - Profit for the period was HK$550,537, down 4.6% from HK$577,134 in the same period last year[138]. - Total comprehensive income for the period was a loss of HK$206,714, compared to a gain of HK$932,160 in 2021[140]. Assets and Liabilities - Total assets increased by 5% to HK$34,514,738 from HK$32,969,256 as of December 31, 2021[14]. - Total liabilities rose by 6% to HK$20,922,162 from HK$19,806,024 in the previous year[14]. - Equity attributable to equity holders decreased by 3% to HK$11,489,816 from HK$11,870,083[15]. - Net asset value per share declined by 3% to HK$4.02 from HK$4.15[15]. - Cash and bank balances increased to approximately HK$3.54 billion, representing an increase of HK$1.26 billion compared to HK$2.28 billion at the end of 2021[51]. - Outstanding borrowings increased to HK$15.80 billion, up by HK$1.36 billion from HK$14.44 billion at the end of 2021[56]. - As of June 30, 2022, the Group's total assets amounted to approximately HK$34.51 billion, with net assets of HK$13.59 billion[48]. - The net asset value per share attributable to equity holders decreased by 3% to HK$4.02 per share from HK$4.15 per share at the end of 2021[48]. Dividends - Interim dividend per share was HK$5.45, down 5% from HK$5.75 in the previous year[12]. - The Group declared an interim dividend of HK5.45 cents per ordinary share for 1HFY2022, a decrease from HK5.75 cents in 1HFY2021[40]. - The interim dividend represents a decrease of approximately 5.22% compared to the previous year[133]. Operational Highlights - The Group invested in 153 environmental protection projects with a total investment of approximately RMB28.65 billion as of 30 June 2022[23]. - The Group secured 2 industrial waste water treatment projects with a total investment of approximately RMB361 million during the Review Period[26]. - The newly added designed daily water treatment capacity from secured projects was 101,500 m³, including 40,000 m³ for municipal waste water treatment[26]. - The Group maintained a steady operational momentum despite external economic pressures, leveraging strengths in project investment and operations management[24]. - In 1HFY2022, the Group achieved "zero incident," "zero penalty," and "zero infection" across its projects due to effective safety and COVID-19 measures[29]. - The Group's projects improved overall efficiency by implementing carbon source substitution technology, reducing chemical consumption, and increasing economic benefits[33]. Market Position and Strategy - The Group continued to strengthen its market position in Shandong and Jiangsu Provinces, focusing on traditional business areas and exploring new opportunities[26]. - The Group aims to enhance its strategic vision to be more market-oriented, professional, and international, focusing on innovation-driven development[45]. - The Group plans to explore new business areas and optimize existing assets to enhance core advantages and promote cooperation[45]. Risk Management - The Group faces an upward trend in new business investment and market competition risks due to intense competition in the environmental water industry[78]. - The risk level for accounts receivable is also on an upward trend, indicating increasing challenges in managing receivables[74]. - The Group has effectively controlled environmental compliance and safe production management risks, with no major incidents reported during the review period[81]. - The Group's risk management system includes identifying and assessing principal risks such as policy changes and financing management risks[74]. - The risk level for environmental compliance remains unchanged, reflecting the Group's extensive construction and operation projects[81]. Corporate Governance - The Company has adopted the principles and code provisions of the Corporate Governance Code since its listing on May 8, 2019, and has complied with both the HK CG Code and SG CG Code during 1HFY2022[127]. - The Audit Committee reviewed the audited consolidated financial results for FY2021 and the unaudited interim results for 1HFY2022 during 1HFY2022[128]. - The Remuneration Committee reviewed the FY2021 remuneration payment and FY2022 remuneration framework for Directors and Key Management Personnel during 1HFY2022[129]. - The Nominating Committee evaluated the performance of Board members and assessed the independence of independent non-executive Directors during 1HFY2022[130]. - The Strategy Committee is responsible for providing strategic direction and overseeing the implementation of strategies, including sustainability issues[130]. Environmental Initiatives - The Group's initiatives align with the national "Dual Carbons" strategy, focusing on green and low-carbon development[106]. - The Group is committed to minimizing the environmental, safety, health, and social impacts of its projects[104]. - The Group actively engages in public education on environmental protection, launching various online and offline activities in response to COVID-19[109]. - Several wastewater treatment plants have received awards, including titles such as "Ecological Civilisation Education Base" at provincial and municipal levels[110].

Financial Performance - For FY2021, the Group recorded revenue of HK$6.91 billion, a 22% increase from HK$5.66 billion in FY2020[19]. - EBITDA for FY2021 was HK$2.25 billion, representing a 16% increase from HK$1.93 billion in FY2020[19]. - Profit attributable to equity holders reached HK$1.20 billion, up 17% from HK$1.02 billion in FY2020[19]. - The Group's overall gross profit margin was 41%, an increase of 2 percentage points compared to FY2020[19]. - The Group's total dividend for FY2021 is HK12.58 cents per ordinary share, an increase of 28.5% from HK9.81 cents in FY2020[37]. - Basic earnings per share for FY2021 were 41.96 HK cents, a 17% increase from 35.80 HK cents in FY2020[113]. - Total assets as of 31 December 2021 were HK$32.97 billion, with net assets of HK$13.16 billion[43]. - The gearing ratio as of 31 December 2021 was 60.1%, an increase of 2.5 percentage points from 57.6% at the end of 2020[43]. Project Development and Capacity - The Group invested in and held 153 environmental protection projects with a total investment of approximately RMB28.43 billion as of December 31, 2021[17]. - The Group's projects have an aggregate designed daily water treatment capacity of over 7 million m³, covering 12 provinces, municipalities, and autonomous regions in China, as well as one overseas market[8]. - The Group secured 14 waste water treatment projects and 1 reusable water project in FY2021, with a total investment of approximately RMB3.76 billion[19]. - In FY2021, the Group commenced construction on six projects with a designed daily wastewater treatment capacity of 130,000 m³, completed five projects with a capacity of 72,500 m³, and had 11 projects operational with a capacity of 249,000 m³[24][25]. Strategic Focus and Innovation - Everbright Water's strategic focus on "Innovation-Driven" development has solidified its financial position and market presence[8]. - The Group plans to optimize existing businesses and explore new areas for business expansion through innovative means[12]. - The Group aims to enhance its strategic vision to be more market-oriented, professional, and international while adhering to an "Innovation-Driven" development approach[12]. - The Group aims to enhance its core competitiveness through technological upgrades and management optimization in response to the saturated traditional water market[40]. Environmental Commitment - The company is committed to "Peaking Carbon Dioxide Emissions" and "Achieving Carbon Neutrality," aligning with national ecological conservation strategies[7]. - The Group's focus on green and low-carbon development aligns with China's strategic goals of Dual Carbons, emphasizing pollution reduction and carbon emission[14]. - The Group treated approximately 1,698,710,000 m³ of waste water during the year, reducing chemical oxygen demand (COD) discharge by about 417,371 tonnes[155]. - The Group's reusable water projects produced around 28,530,000 m³ of reusable water, aimed at reducing freshwater consumption in cities[155]. Governance and Management - The Company is committed to high standards of corporate governance to enhance long-term value and protect shareholders' interests[179]. - Throughout FY2021, the Company complied with the principles and provisions of the SG CG Code and HK CG Code, ensuring robust governance practices[179]. - The Board held a total of six meetings during FY2021, ensuring regular oversight and governance[184]. - The Company has established a strong governance framework with independent directors overseeing key committees[136]. Community Engagement and Education - The Group opened 31 projects to the public, receiving a total of 9,430 visitors across 267 batches, while online visits exceeded 550,000 views[99]. - The Group has been proactive in environmental science popularization, enhancing public awareness of water environmental protection through various educational initiatives[99]. - Various online and offline activities were organized to promote water resource protection during the "World Water Day" and "China Water Week"[170]. - The Group's community involvement initiatives included promoting low-carbon living among employees[178]. Risk Management - The Group effectively managed various risks including policy changing risk, new business investment and market competition risks, environmental compliance and safe production management risks, accounts receivable risk, engineering management risk, staffing risk, financing management risk, cost control risk, technology and innovation risks, and compliance risk, all of which are deemed effective[69]. - The risk level for new business investment and market competition risks is on an upward trend due to intensified competition in the environmental water industry and new policies issued by the PRC government[72]. - The Group faces increasing pressure in environmental compliance and safe production management due to the growing number of construction and operation projects[76]. Employee Development - The Group has implemented a "People-Oriented" philosophy and competency-based recruitment approach, focusing on integrity, knowledge, ability, and performance in employee evaluations[62]. - The average training hours per employee in FY2021 were 7.63 hours, reflecting the Group's commitment to talent development[160]. - The Group established a managerial and technical backup talent pool to recognize high-performing talents and offer them internal promotion opportunities[158]. - The Group emphasizes talent training and has organized comprehensive training programs to enhance employees' capabilities across various positions[63].