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]

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].

Financial Performance - Revenue for the six months ended June 30, 2021, increased by 47% to HK$3,112,935,000 compared to HK$2,120,086,000 in the same period of 2020[7] - Gross profit rose by 41% to HK$1,239,551,000 from HK$881,648,000 year-on-year[8] - EBITDA increased by 30% to HK$1,059,125,000, up from HK$813,116,000 in the previous year[8] - Profit attributable to equity holders of the company grew by 36% to HK$548,178,000, compared to HK$404,473,000 in 2020[8] - Basic earnings per share improved by 36% to HK$19.16 from HK$14.14[8] - Total comprehensive income for the period was HK$932,160,000, compared to HK$256,935,000 in 2020, marking a significant increase[112] - Profit for the period increased to HK$577,134,000, a rise of 35.3% from HK$426,562,000 in the previous year[110] Dividends and Shareholder Returns - Interim dividend per share increased by 54% to HK$5.75, up from HK$3.74 in the prior year[9] - The company declared an interim dividend of HK$5.75 cents per ordinary share for 1HFY2021, an increase from HK$3.74 cents in 1HFY2020, representing a 53.7% increase[105] - Dividends attributable to the period were HK$164,453,000 in 2021, compared to HK$106,964,000 in 2020, an increase of 54.0%[188] Assets and Liabilities - Total assets as of June 30, 2021, were HK$30,601,657,000, reflecting a 14% increase from HK$26,907,534,000[11] - Total liabilities rose by 17% to HK$18,117,835,000 from HK$15,501,675,000[11] - Equity attributable to equity holders of the company increased by 7% to HK$11,241,366,000 compared to HK$10,534,293,000[12] - Cash and bank balances increased by HK$346.25 million to approximately HK$2.07 billion as of June 30, 2021[37] - The Group's outstanding borrowings amounted to HK$13.24 billion, an increase of HK$2.16 billion from HK$11.08 billion at the end of 2020[42] Operational Highlights - The Group invested in 143 environmental protection projects with a total investment of approximately RMB25.75 billion as of June 30, 2021[15] - The Group secured four wastewater treatment projects and one reusable water project in 1HFY2021, with a total investment of approximately RMB1.069 billion, adding a designed daily wastewater treatment capacity of 225,000 m³[20] - The Group's project portfolio includes 112 municipal wastewater treatment projects with a capacity of 5,405,000 m³/day[18] - In 1HFY2021, the Group commenced construction on two projects with a designed daily wastewater treatment capacity of 40,000 m³ and completed two projects with a capacity of 65,000 m³[23][24] Environmental and Social Responsibility - The Group aims to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, aligning with China's "14th Five-Year Plan" for environmental management[15] - The Group emphasizes safety and environmental management, adhering to a policy of zero work safety accidents and zero excessive discharge of pollutants[22] - The Group conducted various charitable environmental protection activities, enhancing local communities' awareness of environmental protection concepts[29][30] - The Group actively evaluates its environmental and social performance against international standards and has been submitting monitoring reports to the International Finance Corporation since 2016[77] Risk Management - The principal risks identified during the Review Period include policy changing risk, new business investment and market competition risks, and environmental compliance risks[56] - The Group has implemented effective internal controls, maintaining unchanged risk levels for key risks during the Review Period[59] - The risk level for accounts receivable remains unchanged, with high risk due to local PRC governments' financial capabilities being affected by the COVID-19 pandemic[71] 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 HK CG Code and SG CG Code throughout 1HFY2021[95] - The Audit Committee reviewed the Group's unaudited financial statements for the first half of FY2021[56] - The Remuneration Committee reviewed the 2020 remuneration payment and the 2021 remuneration framework for Directors and Key Management Personnel during 1HFY2021[97] Market and Industry Trends - Various national policies in China are expected to create new development opportunities in the water environment management industry, reflecting the government's commitment to pollution control[33] - The domestic water market in China has become increasingly mature, leading to intensified competition for new water projects[58] - The Group is actively exploring suitable merger and acquisition opportunities and overseas environmental water projects to enhance market expansion[66]