新加坡證券交易所有限公司、香港交易及結算所有限公司及香港聯合交易所有限公司對 本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 關詠蔚 CHINA EVERBRIGHT WATER LIMITED 中國光大水務有限公司 （於百慕達註冊成立之有限公司） （香港股份代號：1857） （新加坡股份代號：U9E） 海外監管公告 本海外監管公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而刊發。 請參閱隨附的中國光大水務有限公司（「本公司」）已於今日在新加坡證券交易所有限公司 網站刊發之文件。 承董事會命 中國光大水務有限公司 法律顧問兼聯席公司秘書 香港，2024年12月16日 於本公告日期，本公司董事會成員包括： (i) 一名非執行董事－欒祖盛先生（董事長）； (ii) 兩 名執行董事－陶俊杰先生（總裁）及王悅興先生；以及 (iii) 四名獨立非執行董事 －翟海濤先生、郝剛女士、黃裕喜先生及蘇國良先生。 中國光大水務有限公司 （於百慕達註冊成立之有限公司） （股份代號： U9E.SG ， 185 ...

新加坡證券交易所有限公司、香港交易及結算所有限公司及香港聯合交易所有限公司對 本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 CHINA EVERBRIGHT WATER LIMITED 中國光大水務有限公司 （於百慕達註冊成立之有限公司） （香港股份代號：1857） （新加坡股份代號：U9E） 內幕消息公告－ 銀行間市場交易商協會 就建議於中國內地發行多品種債務融資工具 發出接受註冊通知書 本公告乃由中國光大水務有限公司（「本公司」）根據香港法例第571章證券及期貨條例 （「證券及期貨條例」）第XIVA部項下之內幕消息條文、香港聯合交易所有限公司證券上 市規則（「聯交所上市規則」）第13.09(2)條及新加坡證券交易所有限公司上市手冊（「新交 所上市手冊」）第7章作出。 謹此提述本公司日期為2024年11月6日的公告，內容有關本公司向中國銀行間市場交易商 協會（「銀行間市場交易商協會」）提交申請，以註冊及於適當時候在中國內地向全國銀行 間債券市場機構投資者分多期發行本金為80億元人民幣的多品種債務 ...

新加坡證券交易所有限公司、香港交易及結算所有限公司及香港聯合交易所有限公司對 本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 CHINA EVERBRIGHT WATER LIMITED 中國光大水務有限公司 （於百慕達註冊成立之有限公司） （香港股份代號：1857） （新加坡股份代號：U9E） 持續關連交易 售電框架協議 董事會欣然宣佈，於2024年12月11日，本公司（作為電力用戶）與光大綠色環保技術服 務（作為售電公司）訂立2025年售電框架協議，據此，本公司同意促使其附屬公司向光 大綠色環保技術服務購買電力，而光大綠色環保技術服務同意於中國江蘇省及山東省 透過電網公司向本集團供應電力。 –1– 由於有關2025年售電框架協議的2025年年度上限的一項或多項適用百分比率超過 0.1%但低於5%，故其項下擬進行的交易須遵守聯交所上市規則第14A章項下的申報、 公告及年度審閱規定，惟獲豁免遵守通函及獨立股東批准的規定。 於本公告日期，光大環境為本公司的控股股東，故為本公司的關連人士。光大環境亦 為 ...

新加坡證券交易所有限公司、香港交易及結算所有限公司及香港聯合交易所有限公司對 本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 CHINA EVERBRIGHT WATER LIMITED 中國光大水務有限公司 （於百慕達註冊成立之有限公司） （香港股份代號：1857） （新加坡股份代號：U9E） 內幕消息公告－ 就於中國內地註冊及建議發行 多品種債務融資工具提出申請 本公告乃由中國光大水務有限公司（「本公司」）根據香港法例第571章證券及期貨條例 （「證券及期貨條例」）第XIVA部項下之內幕消息條文、香港聯合交易所有限公司證券上 市規則（「聯交所上市規則」）第13.09(2)條及新加坡證券交易所有限公司上市手冊（「新交 所上市手冊」）第7章作出。 本公司董事會（「董事會」）欣然宣佈，本公司已於2024年11月6日向中國銀行間市場交易 商協會（「交易商協會」）提交申請（「申請」），以註冊及於適當時候在中國內地向全國銀 行間債券市場機構投資者分多期發行金額為80億元人民幣的多品種債務融資工具（「債務 融 ...

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]

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]