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。 China Boqi Environmental (Holding) Co., Ltd. 中國博奇環保（控股）有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2377） 截至2022年12月31日止年度之 年度業績公告 年度業績摘要 截至2022年12月31日止年度，本集團的收入為人民幣1,900百萬元，較去年減少 9.2%。 截至2022年12月31日止年度，本集團的毛利為人民幣391百萬元及本集團的毛 利率為20.6%，較去年分別增長0.8%及2.1個百分點。 截至2022年12月31日止年度，本集團的純利為人民幣156百萬元及本集團的純 利率為8.2%。剔除按公允價值計入損益的金融資產的公允價值變動損益及投資 收益後，本集團純利為人民幣227百萬元，較去年減少6.2%。 ...

Financial Performance - For the six months ended June 30, 2022, the Group's revenue amounted to RMB721 million, representing a decrease of 22.2% compared to the same period last year[10]. - The Group's gross profit for the same period was RMB143 million, a decrease of 22.3%, with a gross profit margin of 19.8%, remaining unchanged from the previous year[12]. - Excluding loss on fair value changes in financial assets and investment income, the Group's net profit was RMB73 million, with a net profit margin of 10.1%, representing a decrease of 42.1% compared to the same period last year[13]. - The Group's overall net profit amounted to RMB3 million, with a net profit margin of 0.4% for the six months ended June 30, 2022[14]. - Revenue for the first half of 2022 was RMB 721,070,000, a decrease of 22.2% compared to RMB 926,854,000 in the same period of 2021[17]. - Gross profit for the first half of 2022 was RMB 143,222,000, down 22.3% from RMB 184,305,000 in the first half of 2021[17]. - Profit for the period was RMB 3,045,000, a substantial drop of 98.1% compared to RMB 162,842,000 in the first half of 2021[17]. Revenue Breakdown - Revenue from flue gas treatment business was RMB616 million, while revenue from water treatment business was RMB90 million, hazardous and solid waste treatment/disposal business was RMB5 million, and dual-carbon energy saving business was RMB10 million[11]. - Revenue from the EPC business was RMB196 million, representing a decrease of 31.0% compared to RMB284 million for the first half of 2021[99]. - Revenue from the O&M business was RMB158 million, a decrease of 15.5% from RMB187 million in the first half of 2021[102]. - Revenue from the concession operation business was RMB248 million, down 7.8% from RMB269 million in the first half of 2021[102]. - Revenue from the water treatment business segment increased by 109.3% to RMB90 million from RMB43 million in the first half of 2021[102]. - The hazardous and solid waste treatment/disposal business segment recorded revenue of RMB5 million, an increase of 733.3% from RMB0.6 million in the first half of 2021[102]. - Revenue from the dual-carbon energy saving business segment was RMB10 million, a decrease of 91.2% from RMB113 million in the first half of 2021[102]. Operational Highlights - The Group secured 14 new contracts in the fields of thermal power, steel, and industrial wastewater during the reporting period[15]. - Significant progress was made in the water treatment sector, successfully entering the papermaking and pharmaceutical industries[15]. - The Group's projects cover 31 provinces, municipalities, and autonomous regions in China, with ongoing efforts to expand overseas into Europe, South Asia, Latin America, Africa, and Southeast Asia[43][44]. - The Group's EPC business has expanded from traditional coal-fired power plants to include petrochemical, steel, and other non-electric sectors, reflecting a strategic market diversification[53]. - The Group's focus on environmental protection projects aligns with increasing regulatory demands and market opportunities in the industrial sector[53]. Challenges and Market Conditions - The Group's performance has been affected by the complex international situation and the pandemic, resulting in revenue and profit not meeting expectations[39]. - The COVID-19 pandemic has severely impacted the Chinese economy, particularly in major cities, leading to lower-than-expected market orders and declining operating indicators, although overall production remained stable[92]. - The Group's performance was impacted by project delays and closures, leading to lower revenue across several segments[94]. Cost and Expenses - For the six months ended 30 June 2022, the Group's cost of sales and services was RMB578 million, a decrease of 22.2% compared to RMB743 million for the first half of 2021[105]. - The cost of sales and services for the EPC segment amounted to RMB184 million, representing a decrease of 30.3% from RMB264 million for the first half of 2021[105]. - The cost of sales and services for the O&M segment was RMB130 million, a decrease of 13.3% from RMB150 million for the first half of 2021[105]. - The cost of sales and services for the concession operation segment was RMB190 million, a decrease of 2.6% from RMB195 million for the first half of 2021[105]. - The cost of sales and services for the water treatment business was RMB59 million, an increase of 156.5% from RMB23 million for the first half of 2021[108]. - The cost of sales and services for hazardous and solid waste treatment/disposal was RMB7 million, an increase of 1,300.0% from RMB0.5 million for the first half of 2021[109]. - The cost of sales and services for dual-carbon energy saving business was RMB8 million, a decrease of 92.7% from RMB110 million for the first half of 2021[110]. Future Plans and Strategic Goals - The company aims to develop into a world-class environmental industry group, focusing on carbon neutrality and customer needs[21]. - The introduction of new environmental protection policies is expected to create more opportunities and challenges for the environmental protection industry[25]. - The Group aims to expand its environmental protection services into non-electrical industries such as iron and steel and petrochemicals[165]. - The Group will actively explore potential markets and develop new environmental protection businesses to achieve sustainable growth[165]. - The Group's strategic goals for the 14th Five-Year Plan will be supported through resource injection by strategic shareholders, investments, and M&A[185]. Employee and Management - As of June 30, 2022, the Group had 1,815 employees, an increase from 1,785 employees on June 30, 2021[193]. - The company has implemented a performance-based salary system linked to performance appraisals for all levels of employees, enhancing overall profitability[200]. - Employee incentive mechanisms include profit sharing and performance-oriented rewards to stimulate workforce potential and achieve business indicators[197]. - The company has established a comprehensive appraisal system to ensure objective, fair, and standardized assessments of employee performance[198]. - The workforce is guided by a business philosophy focused on cost-leading, technology-leading, and execution-leading strategies[198]. Financial Position and Liquidity - Total assets as of June 30, 2022, were RMB 4,471,189,000, down from RMB 4,777,213,000 as of December 31, 2021[20]. - Total current liabilities decreased to RMB 1,447,247,000 from RMB 1,772,486,000, indicating a reduction of 18.3%[20]. - The Group's gearing ratio was 38.3%, a decrease of 4.2 percentage points from 42.5% as of December 31, 2021[136][138]. - The net cash used in operating activities was RMB73 million for the six months ended June 30, 2022, a year-on-year decrease of RMB17 million[152][154]. - The net cash generated from investing activities was RMB53 million, compared to a net cash used of RMB41 million in the same period last year, representing a year-on-year increase of RMB94 million[153][154].

Financial Performance - For the year ended December 31, 2021, the revenue of the Group amounted to RMB 2,092 million, representing an increase of 27.1% compared to the previous year[12] - The gross profit for the Group was RMB 388 million, with a gross profit margin of 18.5%, reflecting an increase of 14.1% in gross profit but a decrease of 2.2 percentage points in margin compared to last year[12] - The net profit of the Group was RMB 348 million, with a net profit margin of 16.6%. Excluding gains on fair value changes, the net profit was RMB 242 million, an increase of 16.9% year-over-year[14] - Revenue for the year ended December 31, 2021, was RMB 2,092,172,000, an increase from RMB 1,646,131,000 in 2020, representing a growth of approximately 27.1%[24] - Gross profit for the year was RMB 387,559,000, compared to RMB 340,078,000 in the previous year, indicating an increase of about 14%[24] - Profit for the year reached RMB 348,402,000, up from RMB 207,393,000 in 2020, reflecting a significant increase of approximately 68%[24] - Basic earnings per share for the year were RMB 0.35, compared to RMB 0.21 in 2020, marking a growth of approximately 66.7%[27] - Total comprehensive income for the year was RMB 348,402,000, compared to RMB 207,393,000 in 2020, showing an increase of approximately 68%[27] - Total assets increased to RMB 4,777,213,000 in 2021, up from RMB 3,865,112,000 in 2020, representing a growth of 23.5%[29] - Total equity rose to RMB 2,747,886,000 in 2021, compared to RMB 2,450,818,000 in 2020, marking an increase of 12.1%[29] - Net cash flows from operating activities were negative at RMB (56,000,000) in 2021, down from RMB 230,000,000 in 2020[33] - Total current liabilities increased to RMB 1,772,486,000 in 2021, up from RMB 1,299,353,000 in 2020, reflecting a rise of 36.4%[29] - The Group's total non-current assets reached RMB 2,314,192,000 in 2021, an increase from RMB 1,800,781,000 in 2020, indicating a growth of 28.5%[29] Business Development and Contracts - Newly signed contracts for flue gas treatment business amounted to RMB 1,839 million, with 24 O&M projects currently in operation[15] - The Lubao Sewage Treatment Center Project had a total investment of RMB 450 million, with newly contracted amounts in the water treatment business reaching RMB 286 million[16] - The first phase of the Cooperative Hazardous and Solid Waste Disposal Project in Tangshan is under construction with a total investment of approximately RMB 100 million[17] - The Group acquired the Qinghai Haixi Jingze Hazardous Waste Landfill Project for RMB 219 million, marking a significant step in hazardous waste treatment[17] - The Group's water treatment business secured new contracts totaling RMB 286 million, expanding into various industries, with a total investment of RMB 450 million in the Luobao wastewater treatment center project[18] - The Group signed a contract for the CDQ Waste Heat Power Generation Equipment Supply Project with a contract value of approximately RMB 60 million, and the Tianjin Iron Plant project has a total investment of approximately RMB 278 million[20] - The Group achieved new contracts with an accumulated value of approximately RMB 2,432 million during the reporting period[53] - The flue gas treatment projects in non-electricity fields have been frequently implemented, contributing to the Group's revenue[53] - The water treatment business market has been further expanded, continuing to generate profits for the Group[53] - The CDQ Waste Heat Power Generation Project for Tianjin Iron Plant is progressing smoothly, enhancing the Group's operational capabilities[53] Leadership and Management - Mr. Cheng has been with the Group since June 2005 and has held various leadership roles, including chairman and CEO of Beijing Boqi[66] - Mr. Zheng, a non-executive director, has experience in asset management and investment consulting, having established MTP Capital Limited in 2008[72] - Mr. Zhu has been with Guangdong Pearl River Investment Co., Ltd. since September 2008, overseeing strategic planning and major investments[77] - Mr. Chen has served as deputy general manager of the finance department of Sinopec Group since December 2019, with extensive experience in capital operation and management[83] - The company has a strong leadership team with diverse backgrounds in finance, management, and environmental technology[70] - The board of directors includes experienced professionals with a track record in various industries, enhancing the company's strategic direction[71] - The Group's senior management includes individuals with extensive experience in their respective fields, contributing to the company's operational efficiency[110] - The company has a diverse management team with members holding various directorships in affiliated companies, enhancing its governance structure[124] - The management team has a strong educational background, with qualifications from reputable institutions, supporting their roles in the company[117] Strategic Goals and Future Plans - The Group plans to accelerate the construction of a new development pattern in line with the 14th Five-Year Plan, adapting to state development strategies[45] - Future plans include orderly expansion of various business segments and strategic cooperation, investment, and mergers and acquisitions[53] - The Group aims to achieve carbon neutrality and meet customer needs, positioning itself as a leading environmental industry group[162] - The Group's strategic goals align with the "14th Five-Year Plan," focusing on high-quality large-scale customers and comprehensive environmental protection needs[178] - The Group is committed to improving refined management, recruiting high-caliber talents, and mobilizing team initiatives to promote rapid development of new business[179] Industry Trends and Regulatory Environment - In 2021, the environmental protection industry showed a good recovery trend, with investment, consumption, and exports improving post-pandemic[163] - The National Development and Reform Commission's "Guiding Opinion on Promoting Resources Utilization of Sewage" emphasizes systematic sewage resource utilization, particularly in water-deficient areas[164] - The "14th Five-Year Plan for Comprehensive Utilization of Bulk Solid Waste" highlights the importance of bulk solid waste management for enhancing resource utilization efficiency[169] - By 2025, a resource recycling industrial system is expected to be established, significantly improving resource utilization efficiency[170] - The State Council's opinion on carbon peaking and neutrality aims for a green transformation of the economy by 2030, with non-fossil energy consumption exceeding 80% by 2060[174] Project Highlights - The Group successfully built its first demonstration project of industrial wastewater zero-discharge and completed its first acquisition of a hazardous solid waste landfill project during the reporting period[178] - The Group's projects have broad geographic coverage, reaching nearly 30 provinces, municipalities, and autonomous regions in China, and is actively expanding its business overseas in regions including Europe, South Asia, and Latin America[184] - The energy saving and environmental protection business is progressing steadily, with the first waste heat power generation project on schedule[178] - The Group has enhanced synergy between its four business segments and is actively formulating plans for dual-carbon emission reduction business[178]

Financial Performance - For the six months ended June 30, 2021, the Group's revenue amounted to RMB 927 million, representing an increase of 40.9% compared to the same period last year[27]. - The Group's gross profit for the same period was RMB 184 million, an increase of 10.2% year-on-year, with a gross profit margin of 19.8%, down 5.6 percentage points from the previous year[27]. - The net profit for the six months ended June 30, 2021, was RMB 163 million, reflecting a 53.8% increase year-on-year, with a net profit margin of 17.6%, up 1.5 percentage points[27]. - Profit before tax increased to RMB 186,447,000, representing a 46.0% increase from RMB 127,665,000 in the prior year[30]. - Profit for the period reached RMB 162,842,000, compared to RMB 106,246,000, marking a 53.2% year-over-year growth[30]. - The Group's total revenue for the six months ended June 30, 2021, increased by 40.9% to RMB 927 million compared to RMB 658 million in the same period of 2020[103]. - Revenue from the flue gas treatment business segment was RMB 770.6 million, up from RMB 613.1 million in the previous year[108]. - Revenue from O&M business was RMB 187 million, remaining stable compared to RMB 187 million for the first half of 2020[112]. - Revenue from concession operation was RMB 269 million, unchanged from RMB 269 million for the first half of 2020[112]. - For the six months ended 30 June 2021, the Group recorded a profit of RMB 163 million, representing an increase of 53.8% compared to RMB 106 million for the first half of 2020[139]. Business Segments - Revenue from flue gas treatment business was RMB 771 million, while revenue from water treatment business was RMB 43 million[27]. - The Group's flue gas treatment business maintained steady growth, while breakthroughs were achieved in the water treatment and hazardous waste disposal sectors[49]. - The Group's water treatment and hazardous solid waste treatment businesses have made significant breakthroughs in the petrochemical industry, contributing to overall revenue growth[52]. - The EPC segment generated revenue of RMB 284 million, representing a 94.5% increase from RMB 146 million in the first half of 2020[109]. - Revenue from the water treatment business segment was RMB 43 million, representing a decrease of 4.4% compared to RMB 45 million for the first half of 2020[112]. - Revenue from hazardous and solid waste treatment/disposal business was RMB 0.6 million, a newly added business in this year[112]. - Revenue from energy saving and environmental protection business segment was RMB 113 million, a newly added business in the second half of 2020[112]. Contracts and Projects - The Group secured six new contracts in the fields of thermal power, steel, chemical, and industrial wastewater during the reporting period[27]. - The total contract value for the Shentou Electric Power Phase II Desulfurization System project is RMB 354 million, and the Shouyang Green Island Project is valued at RMB 288 million[67]. - The Group's flue gas treatment business has achieved stable growth, with three new EPC projects added during the reporting period, totaling a contract value of approximately RMB 135 million[61]. - The Group has entered a new market for hazardous and solid waste treatment with a project for Sinopec Xinjiang, designed to treat 120,000 tons per year[95]. - The hazardous and solid waste treatment/disposal business is expected to reach an annual treatment capacity of approximately 100,000 tons after the completion of the Tangshan Yandong Cement Kiln project[95]. Assets and Liabilities - Total assets as of June 30, 2021, were RMB 3,906,171,000, a slight increase from RMB 3,865,112,000 at the end of 2020[33]. - Total non-current assets decreased to RMB 1,738,391,000 from RMB 1,800,781,000, indicating a reduction in long-term investments[33]. - The Group's asset structure remains sound, reflecting a stable operational performance during the reporting period[100]. - As of June 30, 2021, the Group's debt-to-asset ratio was 34.6%, a decrease of 2.0 percentage points from 36.6% on December 31, 2020, primarily due to reduced liabilities and increased net assets[142]. Strategic Focus and Future Outlook - The Group aims to achieve carbon neutrality and is focused on meeting customer needs in the environmental protection sector[35]. - The implementation of the 14th Five-Year Plan is expected to provide substantial market opportunities for the environmental protection industry[37]. - The Group plans to continue expanding its flue gas treatment market and further develop environmental protection businesses such as water treatment and energy saving[166]. - The Group's future outlook aligns with the 14th Five-Year Plan, emphasizing environmentally friendly low-carbon development and pollution control[176]. - The Group plans to actively promote the transformation of existing businesses in response to national policies on carbon emissions peaking and carbon neutrality[181]. Operational Efficiency and Management - The Group's strategic positioning remains focused on refining management and attracting high-end talent to support business development[52]. - The Group has established a rigorous liquidity risk management system to meet its capital and liquidity management requirements[169]. - The Group's liquidity is dependent on project timelines, payment arrangements, and the ability to collect receivables in a timely manner[169]. - The Group's management principles focus on improving quality and efficiency while maintaining stability and avoiding risks[185]. Human Resources - As of June 30, 2021, the Group employed a total of 1,785 employees, with the majority based in the PRC[198]. - The Group has established independent labor union branches and has entered into employment agreements with all employees, detailing positions, duties, remuneration, and other aspects[198]. - The employment agreements comply with PRC Labor Law and include provisions for confidentiality obligations related to trade secrets[198]. - The Group categorizes its employees by functions, providing a structured overview of its human resources[200].

Financial Performance - For the year ended December 31, 2020, the revenue of the Group amounted to RMB 1,646 million, representing a decrease of 10.3% compared to the previous year[13]. - The gross profit for the year was RMB 340 million, with a gross profit margin of 20.7%, reflecting an increase of 10.7% and 4.0 percentage points year-on-year[13][15]. - The net profit for the Group was RMB 207 million, with a net profit margin of 12.6%, indicating an increase of 13.1% and 2.6 percentage points compared to the same period last year[14][16]. - The Company reported revenue of RMB 1,646,131,000 for the year ended December 31, 2020, a decrease of 10.4% from RMB 1,836,496,000 in 2019[25]. - Gross profit for the year was RMB 340,078,000, representing a gross margin of approximately 20.7%[25]. - Profit before tax increased to RMB 235,702,000, compared to RMB 209,067,000 in the previous year, reflecting a growth of 12.8%[25]. - Total comprehensive income for the year was RMB 207,393,000, compared to RMB 180,411,000 in 2019, marking an increase of 15%[27]. - Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.21, compared to RMB 0.18 in 2019, representing a growth of 16.7%[27]. - In 2020, the Group achieved net cash flows from operating activities of RMB 230 million, a significant increase of 87% compared to RMB 123 million in 2019[34]. - The Group's net cash flows used in investing activities were RMB (130) million, an improvement from RMB (439) million in 2019[34]. Business Development - During the reporting period, newly signed contracts for the flue gas treatment business amounted to RMB 964 million, with 18 O&M projects in operation and 9 concession projects in progress[17]. - The Group plans to invest approximately RMB 100 million in the construction of the Concentrated Water Advanced Treatment System Project at Lubao Sewage Treatment Center, aimed at providing wastewater treatment and flue gas treatment services[17]. - The Group entered into an Energy Management Contract for the Sintering Waste Heat Power Generation Project with Tianjin Iron, with a total investment of approximately RMB 278 million, expanding into the energy saving and environmental protection market[19][20]. - The flue gas treatment business has secured multiple new projects in non-electric fields, contributing to steady overall development[45]. - The water treatment business has expanded further, with the Shanxi Lubao Industrial Park Sewage Treatment Center operating stably and generating good returns[57]. - The Group plans to invest RMB 100 million in the construction of the Concentrated Water Advanced Treatment System Project at the Lubao Sewage Treatment Center, expected to drive further growth in the water treatment segment[57]. - The Group secured new contracts with an accumulated value of approximately RMB 1,465 million during the reporting period[69]. - The Group has successfully expanded into the hazardous and solid waste treatment business and energy saving and environmental protection market[69]. Industry Outlook - The environmental protection industry is anticipated to grow due to increased emphasis on environmental hygiene and health post-COVID-19, supported by favorable government policies[38]. - The overall operating income of the environmental protection sector has shown a growth trend, despite subdued revenue and profit growth in 2020 due to COVID-19 impacts[53]. - The environmental protection industry is expected to see significant opportunities due to state policies on carbon emissions and neutrality[65]. - The 14th Five-Year Plan is expected to provide new opportunities for the environmental protection industry, with a focus on ecological civilization construction[38]. Corporate Governance and Management - The Group maintains a healthy asset structure with sufficient working capital and a relatively low gearing ratio[60]. - The Group is committed to promoting the coordinated development of various business segments for robust growth of emerging businesses[60]. - The Group has implemented reforms in its performance appraisal system to enhance employee efficiency and talent development[64]. - The Group's corporate governance practices have been enhanced to ensure efficient and standardized operations[64]. - The board of directors includes experienced professionals with diverse backgrounds, ensuring comprehensive oversight and governance[130]. - The company has a strong management team with members having extensive experience in their respective fields, contributing to strategic decision-making and operational efficiency[130]. Leadership and Executive Team - Mr. Zeng Zhijun has been the CEO and chairman since January 30, 2015, overseeing overall management and operations of the Group[78]. - Mr. Cheng Liquan Richard, appointed on January 30, 2015, is responsible for the overall strategic planning and direction of the Group[85]. - Mr. Zheng Tony Tuo, a non-executive director since January 30, 2015, is a member of the Audit Committee and has experience in investment consulting[92]. - Mr. Zhu Weihang has been a non-executive director since January 9, 2017, and is currently the chairman of Guangdong Pearl River Investment Co., Ltd.[97]. - The Group's major operating subsidiary is Beijing Boqi Electric Power SCI-TECH Co., Ltd., where Mr. Zeng serves as chairman and general manager[78]. - The company has maintained a consistent leadership structure with key executives serving in their roles for several years, ensuring stability[78][86]. Employee and Talent Development - The management team emphasizes the importance of innovation in developing new technologies to meet market demands and improve service offerings[134]. - The company has established subsidiaries to strengthen its operational capabilities and enhance service delivery in various regions[134]. - Ms. Ma has been with the company since March 2006, focusing on marketing strategy, brand management, and client servicing[166]. - Ms. Wong has over 13 years of experience in providing company secretarial services in Hong Kong[197]. Education and Qualifications of Executives - Ms. Ma holds a bachelor's degree in accounting and a master's degree in business management[172]. - Mr. Wang obtained a bachelor's degree in mechanical engineering and a master's degree in power engineering[191]. - Mr. Tu graduated from Nanjing School of Power Engineering and holds a bachelor's degree in civil engineering[184]. - Dr. Xie was named one of the "50 most influential persons in finance" by Bloomberg in 2013[120].

Financial Performance - For the six months ended June 30, 2020, the Group's revenue amounted to RMB 658 million, representing a decrease of 12.6% compared to the same period last year[13]. - The Group's gross profit for the same period was RMB 167 million, with a gross profit margin of 25.4%, reflecting an increase of 36.9% and 9.2 percentage points respectively year-on-year[14]. - The net profit for the six months ended June 30, 2020, was RMB 106 million, with a net profit margin of 16.1%, marking an increase of 15.2% and 3.9 percentage points compared to the previous year[15]. - Revenue for the six months ended June 30, 2020, was RMB 658,191, a decrease of 12.55% compared to RMB 752,516 for the same period in 2019[21]. - Gross profit increased to RMB 166,939, representing a 36.5% increase from RMB 122,264 in the previous year[21]. - Net profit for the period was RMB 106,246, up 15.9% from RMB 91,673 in the prior year[21]. - Revenue from the water treatment business for the same period was RMB 45 million[17]. - Revenue from O&M increased by 23.8% to RMB 187 million compared to RMB 151 million for the first half of 2019, attributed to new projects in the steel sector[95]. - Revenue from concession operations decreased by 16.5% to RMB 269 million from RMB 322 million in the first half of 2019, due to reduced construction income from completed projects[95]. - The Group's total cost of sales and services for the six months ended June 30, 2020 was RMB 491 million, a decrease of 22.1% from RMB 630 million in the first half of 2019, primarily due to project delays and reduced construction costs[100]. Business Operations - Newly signed contracts in the Group's flue gas treatment business totaled RMB 459 million, with 16 O&M projects currently in operation[16]. - The Group plans to invest in the Cooperative Hazardous and Solid Waste Disposal Project in Tangshan, with an annual treatment capacity of around 100,000 tonnes upon completion[18]. - The Group's business covers nearly 30 provinces, municipalities, and autonomous regions in China, with ongoing efforts to expand overseas[43]. - The Group's environmental governance services include flue gas treatment, water treatment, and hazardous and solid waste treatment/disposal[41]. - The Group's projects in China are distributed across various provinces, enhancing its geographic coverage[46]. - The Group is committed to expanding its business in the environmental protection industry, focusing on comprehensive environmental governance services[41]. - The Group's concession operation business model involves financing, investment, construction, and upgrading of projects according to concession contracts with customers[73]. - The Group's concession projects are crucial for continuous operation and steady development in the environmental services sector[75]. - The Group aims to expand its flue gas treatment market and develop environmental protection businesses such as water treatment and hazardous waste disposal[150]. Industry Trends and Opportunities - The environmental protection industry is expected to see new opportunities as production resumes and new policies are implemented post-COVID-19[31]. - The amended "Law on the Prevention and Control of Environment Pollution Caused by Solid Wastes" will create higher requirements for the hazardous solid waste treatment industry starting September 1, 2020[35]. - The State Council's goals for environmental protection include improving ecological governance and enhancing pollution control, which will benefit companies in the environmental sector[36]. - The environmental protection industry in China is expected to show an accelerated recovery trend, driven by strengthened policies and the impact of COVID-19 on environmental health[161]. - The hazardous and solid waste treatment industry is entering a rapid development phase due to heightened government focus and increased public awareness, with the Group planning to deepen its market presence in the Beijing-Tianjin-Tangshan region[169]. - The implementation of the new "Solid Waste Environmental Pollution Prevention and Control Law" is expected to continuously release demand in the solid waste industry chain, presenting opportunities for the Group[169]. Research and Development - Research and development expenses rose to RMB 17,445, an increase of 157.5% compared to RMB 6,796 in the previous year[21]. - The Group has swiftly trained a team of professionals in industrial sewage treatment to bolster its operational capabilities in this new business direction[84]. - The Group is actively responding to China's increasing emphasis on industrial sewage treatment, aiming to enhance technology reserves and develop its industrial sewage treatment business[168]. - The Group's future development will focus on creating a comprehensive environmental protection platform and optimizing resource allocation[165]. Financial Management - The Group's asset structure remained sound despite the economic challenges posed by COVID-19, with net profit and receivables showing improvement over the previous year[86]. - The Group has established a liquidity risk management framework to meet short-term, mid-term, and long-term capital requirements[153]. - The Group's gearing ratio was 37.3%, a decrease of 5.8 percentage points from 43.1% as of 31 December 2019[129]. - Income tax expenses increased by 23.5% to RMB 21 million from RMB 17 million in the first half of 2019, mainly due to an increase in profit before tax[130]. Employee Management - As of June 30, 2020, the Group employed a total of 1,940 employees, with 83.1% in manufacturing roles[190]. - The Group has established a performance evaluation system based on "contribution value" and "performance result" to enhance operational capabilities and efficiency[194]. - A responsibility-based system for business management objectives has been implemented, allowing all employees to participate in performance appraisals[198]. - The performance appraisal system has been improved by quantifying work load and setting clear performance objectives[200]. Project Development - The aggregate contract value of the environmental protection facility engineering projects under construction amounts to RMB 1,000 million, with significant projects including Shentou Electric Power Phase II at RMB 354 million and Shouyang Green Island Project at RMB 288 million[57]. - The Group added three new EPC projects with a total contract value of approximately RMB 232 million for the six months ended June 30, 2020[53]. - The Group's first hazardous waste disposal project was won on January 11, 2020, marking a significant milestone in its hazardous waste disposal business[180]. - The Group's first energy-saving project utilizing magnesium and calcium adjustment method was secured on January 15, 2020, indicating its commitment to innovative environmental solutions[183].

Financial Performance - For the year ended December 31, 2019, the revenue of the Group amounted to RMB 1,836 million, representing an increase of 5.2% compared to the previous year[13] - The gross profit of the Group for the same period was RMB 307 million, with a gross profit margin of 16.7%, reflecting a decrease of 3.5% and 1.5 percentage points compared to last year, respectively[13] - The net profit of the Group for the year was RMB 183 million, which, when excluding the gain from the change in fair value of convertible ordinary shares for 2018, represents a decrease of RMB 76 million or 29.3% compared to 2018[15] - The decrease in net profit was mainly due to a reduction in gross profit from the environmental protection facilities engineering and O&M sectors, decreased foreign exchange gains, and increased R&D expenses compared to the previous year[15] - The Group's revenue growth, despite challenges, reflects resilience in the environmental services market[13] - Profit for the year was RMB 182,614, down 53.5% from RMB 392,819 in 2018[26] - Total assets as of December 31, 2019, were RMB 3,997,052, an increase from RMB 3,530,250 in 2018[30] - Total equity increased to RMB 2,274,158 in 2019 from RMB 2,173,174 in 2018[30] - Basic earnings per share for 2019 were RMB 0.18, down from RMB 0.44 in 2018[26] - Total comprehensive income for the year was RMB 180,411, a decrease from RMB 388,178 in 2018[26] Strategic Initiatives - The Group aims to enhance its market position through strategic contract acquisitions in the environmental sector[17] - The financial performance indicates a need for strategic adjustments to improve profit margins and operational efficiency[15] - The Group aims to optimize resource allocation and improve efficiency to become a comprehensive service provider in the environmental industry[62][63] - The board of directors has approved a new strategic initiative to diversify revenue streams, focusing on renewable energy projects[86] Research and Development - The Group's focus on R&D has led to increased expenses, impacting overall profitability[15] - Continued investment in technology R&D is emphasized, with a focus on industrial sewage treatment, hazardous and solid waste treatment, and VOC treatment[62][63] - The company is investing $10 million in R&D for innovative waste management solutions over the next two years[83] Market Expansion - The Group successfully expanded its O&M business into the steel, coking, and industrial sewage sectors[18] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[81] - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the last fiscal year[77] Environmental Services - The environmental protection industry is positioned as a strategic emerging industry, with increased government support and investment expected in the future[37] - The demand for environmental governance remains strong, providing a significant driving force for the environmental protection industry[44] - The Group's flue gas treatment business has shown steady growth, with stable order increases in the non-electricity sector, particularly in steel, petrochemical, and electrolytic aluminum markets[54] Acquisitions and Investments - In 2019, the Group acquired a sewage treatment center in Shanxi Lubao Industrial Park for a cash consideration of RMB 300 million[19] - The Group acquired a sewage treatment center in Shanxi Lubao Industrial Park for RMB 300 million, expanding its industrial sewage treatment capabilities[38] - A recent acquisition of a local competitor is projected to enhance operational efficiency and increase market penetration by 30%[82] Leadership and Management - The Group's management team includes experienced professionals with backgrounds in law, finance, and technology, enhancing its strategic capabilities[124] - The company has maintained a stable leadership structure since 2010, with key executives having long tenures within the organization[149] - The management team has extensive experience in their respective fields, contributing to the company's strategic direction and operational efficiency[200] User Engagement and Digital Strategy - User data indicates a total of 1.2 million active users, representing a 20% increase compared to the previous year[78] - The company plans to enhance its digital platform, expecting a 15% increase in user engagement through improved services[85]

Financial Performance - For the six months ended June 30, 2019, the Group's revenue amounted to RMB 753 million, representing an increase of 4.3% compared to the same period last year[11]. - The Group's gross profit for the same period was RMB 122 million, with a gross profit margin of 16.2%, reflecting a decrease of 37.8% in gross profit and a decline of 10.9 percentage points in gross profit margin year-over-year[12]. - The net profit for the six months ended June 30, 2019, was RMB 92 million, with a net profit margin of 12.2%, showing a decrease of 31.9% in adjusted net profit compared to the previous year[13]. - Revenue for the six months ended June 30, 2019, was RMB 752,516,000, an increase from RMB 721,722,000 in the same period of 2018, representing a growth of approximately 4.4%[21]. - Gross profit for the same period was RMB 122,264,000, down from RMB 195,616,000 in 2018, indicating a decline of approximately 37.4%[21]. - Net profit for the six months ended June 30, 2019, was RMB 91,673,000, a significant decrease from RMB 269,038,000 in the previous year, reflecting a decline of approximately 65.9%[21]. - The Group's financial position remained stable despite a decrease in net profit due to challenges in the thermal power industry[95]. - The number of contracts and sales income increased compared to the previous year, indicating a positive trend in operational performance[95]. Project and Contract Updates - The contract value of newly contracted projects as of June 30, 2019, amounted to RMB 621 million, with RMB 358 million attributed to newly contracted environmental protection facilities engineering projects[15]. - As of June 30, 2019, the Group has signed 2 new steel O&M projects, bringing the total to 15 O&M projects with an aggregate installed capacity of 22,340 MW[16]. - The Group has cumulatively undertaken 9 concession operation projects, including 2 under construction and 7 in operation as of June 30, 2019[17]. - In the first half of 2019, the Group agreed to acquire a sewage treatment center for RMB 300 million, with the payment to be settled in stages[18]. - The total contract value of new EPC projects amounted to RMB 358 million, with RMB 226 million from the steel industry[54]. - The Group entered into contracts for flue gas treatment projects for a 350m² sintering machine and a 90m² sintering machine, contributing to market share growth in the steel flue gas treatment market[51]. - The Group undertook the flue gas desulfurization and denitrification project for the LUCKY 1 x 660 MW coal-fired power station in Pakistan, marking a breakthrough in the overseas market[51]. - The total contract value for the newly built and upgraded projects in 2019 is significant, with multiple projects exceeding RMB 100 million[63]. Business Strategy and Market Position - The Group aims to develop into a world-class enterprise in the comprehensive environmental protection industry, focusing on air pollution control and expanding into industrial sewage treatment[26]. - The PRC government continues to strengthen supervision of environmental protection, creating growth opportunities for the industry amid intensified competition[30]. - The Group is transitioning from a flue gas solution provider to an intelligent environmental protection housekeeper addressing flue gas, water, soil, and solid waste issues[42]. - The Group's services encompass the entire industry chain of flue gas treatment, including project design, equipment procurement, construction, operation, and maintenance[42]. - The Group aims to continuously expand its comprehensive environmental protection business by providing energy conservation solutions to customers[50]. - The Group's business development is significantly influenced by China's pollution prevention and control policies, which are crucial for the environmental protection industry[162]. - The Group aims to enhance its core competitiveness and become a leading comprehensive environmental protection industry group and intelligent environmental service provider[175]. - The Group plans to expand its market share in flue gas treatment in non-electric industries such as steel, petrochemical, and electrolytic aluminum, leveraging project experience and technical advantages[177][178]. Financial Management and Costs - The Group's cost of sales and services increased by 19.8% to RMB630 million compared to RMB526 million in the first half of 2018, primarily due to increased BOT project costs[108]. - The cost of sales and services for the EPC business increased by 10.3% to RMB256 million compared to RMB232 million in the first half of 2018, driven by new projects in various sectors[109]. - The gross profit of the Group decreased by 37.8% to RMB122 million compared to RMB196 million in the first half of 2018, largely due to reduced profitability in large-scale O&M projects[115]. - The gross profit of the O&M business decreased by 76.3% to RMB28 million compared to RMB118 million in the first half of 2018, due to decreased power generation hours[122]. - The Group's income tax expenses for the six months ended 30 June 2019 were RMB17 million, a decrease of 51.4% from RMB35 million in the same period of 2018[137]. - The gearing ratio increased from 38.4% as of 31 December 2018 to 39.7% as of 30 June 2019[136]. - The Group's bank balances and cash decreased by RMB181 million to RMB449 million, mainly due to cash outflows for BOT asset acquisition and construction[152]. Human Resources and Development - As of June 30, 2019, the Group employed a total of 1,838 employees, with 78.45% in manufacturing roles[197][200]. - The Group's engineering and technical personnel accounted for 8.98% of the total workforce, while research and development personnel made up 3.81%[200]. - The Group's focus for the second half of 2019 includes enhancing R&D investment for new businesses and pursuing high-quality investment and acquisition targets[180][181]. - The Group aims to improve its technical capacity and employ more technical talents to support new business growth in solid waste treatment[184][185]. Regulatory Environment and Industry Trends - The Chinese government aims for a 2% year-on-year decrease in PM2.5 annual average concentration in non-compliant cities in 2019[34]. - The total emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) are targeted to be reduced by 3% year-on-year in 2019[34]. - The implementation of the Soil Pollution Prevention and Control Law began on January 1, 2019, establishing a legal framework for soil pollution control in China[33]. - The ecological environment protection industry in China is expected to undergo a transformation phase due to strengthening regulations and market competition[172]. - The solid waste treatment industry in China is entering a rapid development phase, and the Group intends to strategically enter this field to achieve long-term growth[184][185].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion HKD, representing a 15% growth year-over-year[2]. - For the year ended 31 December 2018, the Group's revenue amounted to RMB1,745 million, representing an increase of 31.3% compared to last year[16]. - The Group's gross profit for the year was RMB318 million, with a gross profit margin of 18.2%, reflecting an increase of 7.1% but a decrease of 4.2 percentage points from the previous year[16]. - The net profit for the Group was RMB393 million, with a net profit margin of 22.5%, which is an increase of RMB430 million compared to last year[16]. - Excluding gains from changes in fair value of convertible ordinary shares, the adjusted net profit for the year would be RMB259 million, with an adjusted net profit margin of 14.8%, an increase of 32.1% from last year[16]. - Total comprehensive income for the year was RMB 388,178,000, a significant increase from the previous year's loss of RMB 31,080,000[22]. - Profit attributable to owners of the Company reached RMB 394,359,000, compared to a loss of RMB 36,418,000 in the prior year[22]. - Basic earnings per share was RMB 0.44, compared to a loss of RMB 0.08 in the previous year[22]. - Diluted earnings per share was RMB 0.27, compared to a loss of RMB 0.08 in the prior year[22]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[2]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[65]. - Market expansion efforts include entering two new international markets by Q3 2024, aiming for a 10% market share in each[67]. - The Group successfully expanded its market share in non-electrical industries such as petrochemicals, steel, and electrolytic aluminum[33]. - The Group plans to enhance profitability across all business segments in 2019, focusing on flue gas treatment in non-electricity industries[49]. - The Group aims to actively participate in municipal and industrial sewage treatment through mergers and acquisitions[49]. - The Group is striving to expand its business overseas, including in Europe, South Asia, Latin America, Africa, and Southeast Asia[160]. Research and Development - Research and development expenditures increased by 30%, focusing on innovative waste management solutions[2]. - The company is investing in R&D for new technologies, with an allocated budget of $10 million for the upcoming year[66]. - The Group has established a professional R&D team and advanced R&D facilities, enhancing its technology development capabilities[57]. - The company is focused on enhancing its research and development capabilities to drive innovation in environmental technology[104]. Operational Efficiency - The company aims to improve operational efficiency by 15% through the implementation of new technologies[2]. - The management team emphasizes the importance of safety and environmental protection in its operational strategies[76]. - The Group's O&M services include full-process operation, upgrading, and maintenance of flue gas treatment systems for coal-fired power plants[180]. - The Group's projects are strategically positioned to support market expansion and enhance service offerings in the environmental protection sector[180]. Environmental Commitment - The company is committed to enhancing air quality and the human living environment, reflecting its dedication to environmental protection for over ten years[39]. - The implementation of new environmental protection policies has led to significant progress in energy conservation and emission reduction[42]. - The Group's commitment to environmental protection aligns with the national strategy for ecological civilization construction, marking a new journey in the industry[149]. - The Group plans to focus on zero wastewater discharge and detoxification treatment of solid waste as part of its energy conservation and environmental protection solutions[148]. Governance and Management - The company plans to enhance its corporate governance practices to align with international standards[2]. - The company has a strong management team with diverse backgrounds in finance, technology, and operations, enhancing its strategic capabilities[75]. - The board of directors includes experienced professionals with significant industry expertise, which supports the company's growth initiatives[75]. - The management team has extensive experience in various sectors, including engineering and legal compliance[115]. Contracts and Projects - The total value of contracts for newly built and upgraded environmental protection facilities projects reached RMB1,036 million, with RMB520 million specifically for projects in the steel industry[16]. - The Group's cumulative number of O&M projects in operation reached 18, with an aggregate installed capacity of 24,400 MW[48]. - The Group has 25 EPC projects under construction, including significant projects like the Shentou Electric Power Phase II Desulfurization System valued at RMB 354 million and the Beihai Desulfurization Project valued at RMB 150 million[169]. - The company has secured multiple contracts for desulfurization and dust removal projects, indicating a robust pipeline of work and market demand for its services[177].