中国博奇环保（控股）有限公司 China Boqi Environmental (Holding) Co., Ltd (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) Stock Code 股份代號 : 2377 Interim Report 2024 Contents 目錄 | --- | --- | --- | |-------|-----------------------------------------------------------|----------------------| | | | | | | Corporate Information | 公司資料 | | | Financial and Operation Highlights | 財務及營運摘要 | | | Management Discussion and Analysis | 管理層討論與分析 | | 51 | Major Events in the First Half of 2024 | 2024 年上半年大事記 ...

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2024年6月30日止六個月之 中期業績公告 | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - For the year ended December 31, 2023, the revenue of China Boqi Environmental (Holding) Co., Ltd. amounted to RMB 2,138 million, representing an increase of 12.5% compared to RMB 1,900 million for the previous year[14]. - The gross profit for the same period was RMB 436 million, an increase of 11.5% from RMB 391 million last year, with a gross profit margin of 20.4%[15]. - The net profit for the year was RMB 237 million, with a net profit margin of 11.1%, and excluding fair value changes, the net profit was RMB 232 million, up 2.2% from RMB 227 million last year[16]. - Profit before tax for the year was RMB 274.587 million, up from RMB 175.899 million in 2022, indicating a year-over-year increase of approximately 56.1%[29]. - The profit for the year attributable to the owners of the parent was RMB 240.191 million, compared to RMB 152.665 million in 2022, marking a significant increase of about 57.3%[30]. - The total revenue for the company for the year ended December 31, 2023, was RMB 2,138.199 million, an increase from RMB 1,900.248 million in 2022, representing a growth of approximately 12.5%[29]. - The gross profit for the year was RMB 436.1 million, compared to RMB 390.778 million in 2022, reflecting a gross profit margin improvement[29]. Business Segments - Revenue from the flue gas treatment business segment was RMB 1,704 million, with 18 new EPC projects totaling approximately RMB 1,167 million in contract value[17]. - Revenue from the water treatment business segment was RMB 317 million, with 6 newly contracted projects and a total of 14 projects under operation as of December 31, 2023[18]. - For the year ended December 31, 2023, the revenue from the hazardous and solid waste treatment/disposal business segment was RMB 49 million[22][25]. - The revenue from the dual-carbon new energy+ business segment for the same period was RMB 68 million[23][26]. - The company achieved significant breakthroughs in the water treatment business, successfully entering the zero-discharge coking salt extraction and titanium dioxide industries, enhancing market share in industrial wastewater treatment[41]. - The company expanded its service scope in the flue gas treatment business, moving from desulfurization and denitrification to include O&M services for power generation units and coal transportation systems[40]. Strategic Focus and Development - The company aims to optimize its customer base and expand market share in new business segments as part of its strategic transformation[39]. - The company plans to continue promoting the expansion of various business segments and engage in strategic cooperation, investment, and mergers and acquisitions[50]. - The company is focusing on hazardous and solid waste treatment/disposal, aiming to enhance resource utilization and disposal services[52]. - The company is actively expanding its new energy strategy, particularly in the Yangtze River Delta, Northwest, and Pearl River Delta regions[49]. - The company is enhancing its information technology systems and digital management capabilities to improve operational efficiency[49]. - The company emphasizes talent development and team building to support sustainable growth[49]. - The company remains committed to its vision and strategy despite external uncertainties, leveraging flexibility and resilience to overcome challenges[49]. Leadership and Management - Mr. Zeng Zhijun has been appointed as the executive director and CEO since January 30, 2015, and has extensive experience in the management and operations of the group[60]. - Mr. Liu Genyu was redesignated as an executive director effective July 1, 2023, and has significant experience in project development and operational management in the electric power industry[63][67]. - Ms. Qian Xiaoning joined the group in February 2007 and was appointed as an executive director on July 1, 2023, responsible for human resources and new business development[71][74]. - The company has a diverse senior management team with members having extensive experience in various sectors[126]. - The leadership team has a diverse background in various sectors, including electric power and environmental technology, which may contribute to innovative strategies[64][68][74]. - The company has maintained a stable executive structure, with key positions filled by experienced professionals, ensuring continuity in management[60][63][71]. Market and Industry Trends - The environmental protection industry is facing opportunities and challenges due to economic and political influences, with a clear trend towards high-quality development in China[171]. - The state plans to expand energy efficiency requirements and increase the scope of transformation and upgrading for energy saving and carbon reduction in key industrial fields[177]. - The Central Committee of the Communist Party of China supports private enterprises in promoting carbon peaking and carbon neutrality, providing carbon reduction technologies and services, and increasing investment in renewable energy[178]. - The market demand for ultra-low emissions and energy-saving upgrading projects in the coal-fired power industry increased significantly due to large-scale new construction and renovation projects[191]. - The utilization rate of recycled water in water-scarce cities is expected to exceed 25% by 2025, with plans to build 100 green and low-carbon benchmark sewage treatment plants[187]. Project and Operational Highlights - The Group had 32 operational O&M projects during the reporting period, successfully expanding its service scope to include power generation units and coal transportation systems[17]. - The Group won the bid for the EPC Project for Desulfurization of 2X1000MW unit of Guoxin Binhai Port in the first half of 2023, contributing to its expansion in the thermal power flue gas desulfurization market[200]. - The Group secured 8 consecutive bids for thermal power projects, including a significant project for Inner Mongolia Energy Group valued at approximately RMB1,167 million[200]. - The Group's overseas project distribution includes regions such as Europe, South Asia, Latin America, Africa, and Southeast Asia[197]. - The Group's business expansion is supported by strengthening customer service systems and leveraging engineering implementation experience[198].

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was RMB 2,138 million, an increase of 12.5% compared to RMB 1,900 million in the previous year[2]. - The gross profit for the same period was RMB 436 million, up 11.5% from RMB 391 million, with a gross margin of 20.4%, slightly down from 20.6% year-on-year[2]. - The net profit for the year was RMB 237 million, resulting in a net profit margin of 11.1%, while adjusted net profit, excluding fair value changes of financial assets, was RMB 232 million, a rise from RMB 227 million in the previous year[2]. - The company's pre-tax profit was RMB 274 million, compared to RMB 176 million in the previous year, reflecting a significant increase[6]. - Total comprehensive income for the year was RMB 237 million, compared to RMB 157 million in the previous year[7]. - The company reported a net profit attributable to ordinary shareholders of RMB 240,184 thousand for 2023, an increase from RMB 151,749 thousand in 2022, reflecting a growth of approximately 58.2%[120]. Assets and Liabilities - The company's total assets as of December 31, 2023, amounted to RMB 3,068 million, an increase from RMB 2,849 million in the previous year[12]. - Current liabilities were RMB 1,117 million, slightly down from RMB 1,134 million in the previous year[9]. - The company reported a net asset value of RMB 3,069 million, up from RMB 2,849 million year-on-year[12]. - Total assets minus current liabilities increased to RMB 3,221,801 thousand in 2023, up from RMB 2,992,784 thousand in 2022, representing a growth of approximately 7.7%[29]. - Current liabilities totaled RMB 1,796,996 thousand in 2023, slightly up from RMB 1,732,520 thousand in 2022, reflecting an increase of about 3.7%[28]. - Trade receivables amounted to RMB 1,181,509 thousand in 2023, up from RMB 872,121 thousand in 2022, indicating a year-over-year increase of about 35.4%[121]. - The company reported a decrease in trade payables to RMB 1,117,380 thousand in 2023 from RMB 1,134,240 thousand in 2022, reflecting a reduction of approximately 1.5%[123]. Dividends - The board has proposed a final dividend of HKD 0.03 per ordinary share for the fiscal year ending December 31, 2023[2]. - The company proposed a final dividend of HKD 0.035 per share for 2023, an increase from HKD 0.030 in 2022, totaling RMB 31,969,000 compared to RMB 27,652,000 in the previous year[77]. Research and Development - Research and development expenses for the year were RMB 56 million, compared to RMB 59 million in the previous year, indicating a stable investment in innovation[25]. Market and Operations - The company operates primarily in China, with nearly all non-current assets and revenue generated from this market[63]. - The company is actively expanding its market presence in both power and non-power sectors, leveraging policy opportunities to drive growth[80]. - The company is involved in multiple BOT projects, with significant investments such as RMB 496 million for the Xinjiang Shenhuo project and RMB 281 million for the Guangxi Laibin project, indicating a strong commitment to infrastructure development[83]. - The company signed 14 new water treatment projects, significantly increasing its market share in industrial wastewater treatment[92]. - The company is actively expanding its water treatment services across various industries, including coking, steel, metallurgy, pharmaceuticals, and papermaking[157]. Environmental Initiatives - The company is focusing on upgrading inefficient air pollution control facilities as part of the national action plan to improve air quality, which is expected to benefit the industry in the long term[79]. - The company aims to develop into a leading "environmental dual-carbon management platform" and is focused on achieving carbon neutrality while meeting customer needs[124]. - The company is actively pursuing green and low-carbon transformation in the steel industry, supporting enterprises in achieving ultra-low emissions[110]. - The company is focusing on the development of green factories in the electronic information manufacturing sector, as encouraged by recent government policies[154]. Governance - The board consists of three executive directors, four non-executive directors, and four independent non-executive directors, ensuring a balanced governance structure[74]. - The financial statements are prepared in accordance with International Financial Reporting Standards and presented in RMB, with all values rounded to the nearest thousand[53]. Growth and Future Outlook - The company is positioned to capitalize on the growing market opportunities in the environmental protection sector as China's economy transitions towards high-quality development[87]. - The company anticipates continued growth in its water treatment segment, driven by its successful entry into new markets[92]. - The group plans to increase the reuse rate of reclaimed water in water-scarce cities to over 25% by 2025, with the construction of 100 green low-carbon benchmark sewage treatment plants[127]. - The dual-carbon new energy projects are part of the group’s strategy to enhance energy efficiency and carbon reduction capabilities by 2025[128].

Financial Performance - For the six months ended June 30, 2023, the Group's revenue amounted to RMB 1,001 million, representing an increase of 38.8% compared to the same period last year[14]. - The Group's gross profit for the same period was RMB 202 million, reflecting a 41.3% increase year-on-year, with a gross profit margin of 20.2%, up by 0.3 percentage points[15]. - The net profit, excluding loss on fair value changes in financial assets and investment income, was RMB 131 million, with a net profit margin of 13.1%, marking a 79.5% increase and a 3.0 percentage point rise compared to the previous year[16]. - The total net profit for the Group was RMB 136 million, resulting in a net profit margin of 13.6%[16]. - Profit for the period surged to RMB 135,908, a significant increase from RMB 3,045 in the prior year, marking a growth of 4,366.5%[22]. - The Group recorded a profit of RMB 136 million for the period, an increase of RMB 133 million from RMB 3 million in the first half of 2022, primarily due to increased revenue and gross profit from various business segments[150][155]. - Profit attributable to the owners of the Parent was RMB 134 million for the six months ended 30 June 2023, representing an increase of RMB 130 million from RMB 4 million in the first half of 2022[151][156]. Revenue Breakdown - The revenue from flue gas treatment business was RMB 780 million, while revenue from water treatment business was RMB 163 million, revenue from hazardous and solid waste treatment/disposal business was RMB 14 million, and revenue from dual-carbon new energy+ business was RMB 44 million[14]. - Revenue for the six months ended June 30, 2023, increased to RMB 1,000,686, up 38.8% from RMB 721,070 in the same period of 2022[22]. - Revenue from the flue gas treatment business segment was RMB 780.3 million, up 26.5% from RMB 616.4 million in the first half of 2022[109]. - The water treatment business segment generated revenue of RMB 162.4 million, representing an increase of 81.1% compared to RMB 90.1 million for the first half of 2022[113]. - The hazardous and solid waste treatment/disposal business recorded revenue of RMB 13.8 million, a significant increase of 180.0% from RMB 4.6 million in the first half of 2022[114]. - Revenue from the dual-carbon new energy+ business segment was RMB 44.2 million, reflecting a substantial increase of 340.0% from RMB 9.9 million for the same period last year[115]. Cost and Expenses - The cost of sales and services for the Group was RMB 798 million, an increase of 38.1% from RMB 578 million for the first half of 2022[117]. - The cost of sales and services for the water treatment business was RMB 132 million, a 123.7% increase from RMB 59 million for the first half of 2022[121]. - The cost of sales and services for the dual-carbon new energy+ business was RMB 29 million, reflecting a 262.5% increase from RMB 8 million in the first half of 2022[123]. - Selling and distribution expenses rose to RMB 11 million, an increase of RMB 4 million from RMB 7 million in the first half of 2022, attributed to higher market expansion costs following the relaxation of COVID-19 measures[140]. - Administrative expenses decreased to RMB 42 million, down RMB 6 million from RMB 48 million in the first half of 2022, with the ratio of administrative expenses to revenue falling from 6.7% to 4.2%[141]. Research and Development - Research and development expenses increased to RMB 23,557, up 38.9% from RMB 16,966 in 2022, indicating a focus on innovation[22]. - For the six months ended 30 June 2023, the Group's R&D expenses amounted to RMB 24 million, an increase of RMB 7 million from RMB 17 million in the first half of 2022, with R&D expenses representing 2.4% of revenue[142][146]. Contracts and Projects - The Group secured 19 new contracts in the fields of thermal power, steel, chemical, and industrial wastewater during the reporting period[17]. - As of June 30, 2023, the Group added 7 new EPC contracts with a total contract value of approximately RMB 259 million[62]. - The Group won the bid for the 2×1000MW Unit Desulfurization EPC Project of Guoxin Binhai Port, supporting further expansion into the thermal power flue gas desulfurization market[62]. - The Group had a total of 25 O&M projects under operation, providing a stable source for business growth[72]. - The Group is actively expanding its water treatment business segment, currently operating 10 water treatment projects as of June 30, 2023[90]. Market and Industry Trends - The environmental protection industry in China is entering a phase of comprehensive policy implementation, which is expected to drive growth opportunities for the company[29]. - The Ministry of Ecology and Environment has revised regulations to promote precise and scientific pollution control, which may benefit the company's operations[34]. - The thermal power industry has entered a recovery period, increasing demand for flue gas treatment, which the company capitalized on to expand its market presence[49]. - The installed capacity of new energy in China ranks first globally, with a steady increase in power generation proportion and a rapid decrease in costs[49]. - The government is enhancing policies and financial instruments to support green development and promote resource conservation and intensive utilization[41]. Financial Stability and Assets - Total assets as of June 30, 2023, were RMB 4,743,277, slightly up from RMB 4,725,304 as of December 31, 2022[25]. - Net current assets improved to RMB 1,007,073, an increase from RMB 906,591 at the end of 2022, reflecting better liquidity[25]. - Total liabilities decreased to RMB 1,745,977 from RMB 1,876,376, indicating improved financial stability[25]. - The Group's asset structure is reported to be in sound condition, reflecting overall satisfactory operational results[103]. Future Outlook - Future outlook includes continued investment in environmental technologies and expansion of operational capacities to meet increasing market demands[79]. - The Group aims to expand its environmental protection services into non-electricity industries such as steel and petrochemicals[191]. - The Group's future cash inflows will depend on project schedules, timely recovery of receivables, and credit terms obtained[195].

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日止年度年報之補充公告 茲提述本集團於2023年4月26日刊發的截至2022年12月31日止年度的年報（「2022 年年報」）。除另有指明者外，本公告所用詞彙與2022年年報所界定者具有相同涵 義。 首次公開發售前股份獎勵計劃及補充計劃 除2022年年報所披露的資料外，下文載列上市規則第17.12(1)條項下的若干補充 資料： 1. 目的 首次公開發售前股份獎勵計劃（經補充計劃修訂）旨在建立中長期獎勵機制， 吸引及培養人才，維持本集團及管理團隊穩定發展及將管理團隊的利益與股 ...

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2023年6月30日止六個月 中期業績公告 財務及營運摘要 截至2023年6月30日止六個月，本集團的收入為人民幣1,001百萬元，較去年同 期增加38.8%。 截至2023年6月30日止六個月，本集團的毛利為人民幣202百萬元，較去年同期 增加41.3%。 截至2023年6月30日止六個月，本集團剔除按公允價值計入損益的金融資產之 公允價值變動損失及投資收益後，純利為人民幣131百萬元及純利率為13.1%， 分別較去年同期增加79.5%及3.0個百分點。 ...

Financial Performance - For the year ended December 31, 2022, the revenue of China Boqi Environmental amounted to RMB 1,900 million, representing a decrease of 9.2% compared to the previous year[12]. - The gross profit for the same period was RMB 391 million, with a gross profit margin of 20.6%, reflecting an increase of 0.8% and 2.1 percentage points year-on-year[13]. - The net profit for the year was RMB 156 million, with a net profit margin of 8.2%. Excluding fair value changes and investment income, the adjusted net profit was RMB 227 million, down 6.2% from last year[14]. - The Group's total revenue for the year ended December 31, 2022, was RMB 1,900,248 thousand, a decrease from RMB 2,092,172 thousand in 2021[26]. - Gross profit for the year was RMB 390,778 thousand, slightly up from RMB 387,559 thousand in the previous year[26]. - Profit for the year was RMB 155,658 thousand, down from RMB 348,402 thousand in 2021[27]. - The Board recommended a final dividend of HK$3.00 cents per ordinary share for the year ended December 31, 2022, compared to HK$7.40 cents in 2021[21]. Business Segments - Revenue from the flue gas treatment business segment was RMB 1,510 million, with 10 new EPC projects added, totaling a contract value of approximately RMB 429 million[15]. - The water treatment business segment generated revenue of RMB 271 million, with three new projects and a total contract value of approximately RMB 295 million[16]. - The revenue from the hazardous and solid waste treatment/disposal business segment was RMB 12 million for the year ended December 31, 2022[19]. - The dual-carbon energy saving business segment generated revenue of RMB 108 million for the year ended December 31, 2022[20]. Operational Developments - As of December 31, 2022, the Group had 23 operational O&M projects, expanding its service scope to include power generating units[15]. - The Group accumulated 7 concession operation projects, all of which have been successfully put into operation, supporting stable development[15]. - The Group secured three new water treatment projects with a total contract value of approximately RMB 295 million during the reporting period[18]. - The company achieved new contracts with an accumulated value of approximately RMB 1,519 million during the reporting period, indicating substantial business diversification breakthroughs[51]. Market Strategy and Challenges - The company faced challenges in 2022 due to the COVID-19 pandemic, resulting in reduced order volume and income[36]. - The percentage of new orders from key customers increased to 70% in 2022, reflecting a strategic focus on customer relationship management[40]. - The company plans to further open up the market for hazardous and solid waste treatment/disposal business through strategic planning[19]. - The company is focusing on expanding its business areas, particularly in pollution abatement, carbon reduction, and clean production, aligning with the high-quality development goals of environmental governance[44]. Leadership and Management - Mr. Zeng Zhijun has been the Chairman and CEO since January 30, 2015, and is responsible for the overall management of the Group[56]. - The company has a senior management team that includes Ms. Qian Xiaoning, who has been with the company since 2007 and is responsible for managing human resources and legal compliance[104]. - The board of directors includes members with extensive backgrounds in finance and law, enhancing corporate governance[94]. - The company has expanded its management team with several vice presidents, including Ms. Wang Hui, who joined in 2019 as the chief financial officer[104]. Environmental Commitment - The company is committed to achieving carbon neutrality and enhancing customer satisfaction, aligning with national environmental protection trends[154][156]. - The company is developing integrated platforms for environmental protection and dual-carbon management, aiming to contribute positively to ecological civilization construction[154][156]. - The focus on scientific and technological innovation in ecological governance is essential for addressing environmental challenges during the "14th Five-Year Plan" period[166]. - The company emphasizes the importance of ecological protection and pollution prevention as part of its strategic deployment for the future[44]. Project and Contract Highlights - The company operates 23 O&M projects, expanding its services from environmental protection facilities to generator unit maintenance, including the first 135 MW supercritical gas-powered generating set in China[186]. - The total installed capacity of O&M projects includes 6×350 MW, 2×600 MW, and 2×1000 MW units, contributing to a stable cash flow[189]. - The largest contract was for the Master Contracting Project of No. 1 Sintering Machine, valued at RMB 115 million, aimed at flue gas purification[184]. - The Group's concession operation business includes desulfurization, denitrification, and green island projects, contributing to its operational foundation[196].

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].