Core Viewpoint - The company expects a significant decrease in shareholder profit for the first half of 2025, primarily due to an asset impairment loss provision related to its waste treatment project [1] Group 1: Financial Outlook - The company anticipates a reduction of approximately 70% to 75% in shareholder profit for the first half of 2025 compared to the same period in 2024 [1] - An asset impairment provision of around RMB 160 million will be recognized in the first half of 2025 [1] Group 2: Project Status - The Xianju Project, a wholly-owned subsidiary established in 2018, focuses on hazardous waste treatment services, specifically solid hazardous waste incineration [1] - The project completed facility and equipment construction in 2022 and began trial operations in the fourth quarter of 2022 [1] - Operations were suspended due to an unexpected leakage incident discovered in early 2024, with temporary emergency measures implemented to prevent further leakage [1] Group 3: Strategic Decisions - A remediation plan has been developed based on an environmental assessment by third-party experts, but additional costs and time are expected to restore production [1] - The company has strategically decided to cease operations of the Xianju Project to focus on other sustainable growth opportunities due to competitive pressures and an oversupply of local disposal capacity [1] - The company believes that the assets related to the Xianju Project require impairment provisions due to the current operational status and declining sales prices [1]

（股份代號：3718） 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之內容概不負責，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 賴該等內容而引致之任何損失承擔任何責任。 BEIJING ENTERPRISES URBAN RESOURCES GROUP LIMITED 北控城市資源集團有限公司 （於開曼群島註冊成立的有限公司） 盈利警告 及 有關資產減值撥備之業務更新 本公告乃由北控城市資源集團有限公司（「本公司」，連同其附屬公司統稱為「本 集團」）董事（「董事」）會（「董事會」）根據香港聯合交易所有限公司證券上市規則 （「上市規則」）第13.09(2)(a)條及香港法例第571章《證券及期貨條例》第XIVA部內 幕消息條文而作出。 盈利警告 董事會謹此通知本公司股東（「股東」）及潛在投資者，根據本集團截至2025年6月 30日止六個月（「2025年上半年度」）之未經審計綜合管理賬目之初步評估及本集團 管理層現時可獲得之資料、預期2025年上半年度的股東應佔溢利將較2024年同期 減少約70%至75%，主要由於一項約人民幣161,537,000元 ...

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之內容概不負責，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 賴該等內容而引致之任何損失承擔任何責任。 董事會會議召開日期 北控城市資源集團有限公司（「本公司」）董事會（「董事會」）宣佈，本公司謹訂於 二零二五年八月二十六日（星期二）舉行董事會會議，以考慮及批准（其中包括）本 公司及其附屬公司截至二零二五年六月三十日止六個月有待刊發之中期業績以及 考慮派付中期股息（如有）。 承董事會命 北控城市資源集團有限公司 主席 Beijing Enterprises Urban Resources Group Limited 北控城市資源集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3718） 周敏 香港，2025年8月8日 於本公告日期，本公司執行董事為周敏先生（主席）、趙克喜先生（行政總裁）、 李海楓先生、李力先生及周塵先生；及本公司獨立非執行董事為胡德光先生、 杜歡政博士及楊莉珊女士。 ...

FF301 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03718 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 30,000,000,000 | HKD | | 0.1 | HKD | | 3,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | 30,000,000,000 | HKD | | 0.1 | HKD | | 3,000,000,000 | 本月底法定/註冊股本總額： HKD 3,000,000,000 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及結算所有限公司 公司名稱: 北控城市資源集團有限公司 （於開曼群島註冊成立之有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 股份發行人及根據《 ...

Industry Overview - The urban environmental protection industry focuses on solving urban environmental issues and improving ecological quality through technology and management measures [1][9] - The industry has seen significant growth, with the market size projected to increase from 1.01 trillion yuan in 2019 to 1.49 trillion yuan in 2024 [7][9] Industry Environment - Urban areas are densely populated and face severe environmental challenges, making urban environmental protection a priority for national development [5] - As of the end of 2023, there are 694 cities in China, with an urbanization rate of 67%, indicating ongoing urbanization and a growing demand for environmental services [5] Industry Status - The urban environmental protection industry is categorized into four segments: energy conservation and emission reduction (35.81%), pollution control (29.96%), recycling (20.91%), and natural resource protection (13.32%) [9] - Major companies in the industry include China Everbright Environment, Beijing Enterprises Water Group, and China Tianying, which are part of the leading competitive tier [11] Future Trends - Technological innovation is driving the industry towards smart environmental solutions, with advancements in IoT, AI, and big data enhancing operational efficiency [17] - Continuous policy support is expected to facilitate market reforms, with initiatives aimed at improving resource and environmental market mechanisms [18] - The international market is becoming increasingly important, with Chinese environmental companies expanding their presence in Southeast Asia and the Middle East [19]

Financial Performance - The company recorded revenue of approximately RMB 6.0277 billion for the fiscal year ending December 31, 2024, representing a year-on-year increase of approximately 19.2%[8] - Shareholders' profit for the year was approximately RMB 25.7 million, a decrease of about 91.0% due to a one-time non-cash goodwill impairment in the hazardous waste segment[8] - The total revenue increased from approximately RMB 5.0576 billion for the year ended December 31, 2023, to approximately RMB 6.0277 billion for the year ended December 31, 2024, representing a growth of about 19.2%[39] - The group reported a decrease in gross margin from 20.2% for the year ended December 31, 2023, to 19.1% for the year ended December 31, 2024, primarily due to a decline in the gross margin of hazardous waste treatment business[39] - The gross profit margin for urban environmental governance services decreased by 1.1% to 20.9% in 2024, compared to 22.0% in 2023[22] - The gross margin for hazardous waste treatment services dropped significantly from 17.2% in 2023 to 5.0% in 2024, attributed to increased competition and reduced demand[47] - Other income and net gains have decreased to RMB 52.9 million from RMB 97 million last year, primarily due to reductions in interest income and government subsidies[57] - Administrative expenses have increased to RMB 593.5 million from RMB 523.7 million last year, mainly due to ongoing business expansion in urban services[58] - Income tax expenses have increased from RMB 86 million last year to RMB 108.9 million this year, mainly due to the continued expansion of urban services[62] Urban Services and Projects - The company secured 64 urban service projects through public bidding and acquisitions, with a total contract value and estimated annual revenue of approximately RMB 7.8475 billion and RMB 1.4969 billion, respectively[8] - The group has signed management contracts for 231 urban service projects across 25 provinces and municipalities[21] - The group operates 231 urban service projects under various models, including 99 integrated cleaning projects and 118 traditional environmental sanitation projects[30] - The group successfully won a total of 35 urban service projects through public bidding, with a total contract value of approximately RMB 6.4218 billion and an estimated annual revenue of approximately RMB 987.4 million[28] - The group recorded a total of 231 urban service projects as of December 31, 2024, compared to 186 projects in 2023[41] Strategic Initiatives and Innovations - The company has implemented strategies to enhance service quality and management capabilities, focusing on high-quality expansion of urban service projects[11] - The company is actively exploring technological applications and service innovations to strengthen its core competitiveness in a rapidly changing market environment[11] - The company is advancing digital transformation initiatives, including the development of standardized management systems and data collection platforms to improve operational efficiency[13] - The group aims to expand its urban management capabilities and enhance service efficiency through the development of an independent smart city management platform[30] - The company plans to invest 100 million in research and development over the next three years to drive innovation[168] Financial Management and Cash Flow - The company is focusing on strengthening cash flow management and enhancing customer trust and satisfaction in response to industry cash flow pressures[18] - The company aims for "high-quality development" by focusing on profitability, investment returns, and risk control, with a strategic emphasis on "efficiency enhancement, innovation-driven, and value cultivation" by 2025[80] - The net debt ratio increased to 44.4% as of December 31, 2024, compared to 38.5% last year, primarily due to increased net debt from business expansion[76] - The company has pledged a performance guarantee of RMB 132,062,000 as of December 31, 2024, to ensure compliance with contractual obligations[84] Sustainability and Corporate Governance - The company is committed to sustainable development and aims to systematically reduce its operational carbon footprint while enhancing cash flow management[81] - The company has established a dynamic risk monitoring mechanism to support sustainable development goals[81] - The Sustainability Committee held two meetings in the fiscal year ending December 31, 2024, focusing on ESG management and climate change risks[130] - The group conducted ESG risk assessments this year to actively manage environmental and social risks[132] - The company is committed to promoting green procurement and sustainable supply chain management[17] Shareholder Relations and Dividends - The company proposed a cash dividend of HKD 0.013 per share, totaling HKD 0.025 per share for the year, to reward shareholders for their long-term support[8] - The board proposed a final dividend of 1.3 HK cents per share for the year ending December 31, 2024, down from 1.5 HK cents in 2023, pending shareholder approval[92] - The company’s dividend policy aims to ensure sufficient reserves for future development while allowing shareholders to share in profits[153] - The board considers various factors when declaring dividends, including financial performance, retained earnings, and capital expenditure needs[154] Board and Management Structure - The board consists of eight experienced directors, ensuring a balanced mix of skills and backgrounds to guide the group's business development[111] - The company has adopted a board diversity policy to ensure a balanced skill set and diverse perspectives among directors[111] - The board is responsible for ongoing supervision of risk management and internal control systems, ensuring they are effective and adequate to protect shareholder interests[132] - The audit committee, consisting of three independent non-executive directors, has held three meetings to review the financial statements for the year ending December 31, 2024, and discussed accounting principles and internal controls[121] Market Outlook and Future Plans - The urban services industry is projected to grow at a compound annual growth rate of no less than 13% over the next five years, with the market size exceeding RMB 320 billion in 2024[8] - The company has set a future outlook with a revenue target of 1.5 billion for the next fiscal year, indicating an expected growth of 25%[161] - Market expansion plans include entering two new international markets by the end of 2024, aiming to increase market share by 10%[163] - The company is exploring potential acquisitions to enhance its service offerings, with a budget allocation of 200 million for strategic investments[164]

Summary of Conference Call Records Company and Industry Overview - The conference call pertains to the urban environmental services industry, specifically focusing on a company involved in city services, environmental governance, and construction services [1][2][3]. Key Points and Arguments Financial Performance - Other business revenue accounted for 9%, totaling 180 million, while city services revenue was 1.8 billion, representing 3% of total revenue [1]. - Urban environmental governance service revenue for 2020 was 4.92 billion, up 21.1% from 4.06 billion in 2023 [1]. - Overseas revenue reached 330 million, a significant increase from zero in the previous year [1]. - Construction service revenue for 2020 was 57 million, down 79.8% from 283 million in 2023, attributed to nearing completion of landscaping projects [1]. - The gross margin for domestic urban environmental governance services in 2024 was 21.9%, slightly down from 22% in 2023 [2]. - The overall gross margin for urban environmental governance services was 20.9%, down 1.1% from 22% in 2023 [2]. Operational Insights - The company had 231 projects in operation by the end of 2024, with 35 new projects added and a total contract value of 7.85 billion, leading to an annualized contract revenue of 1.5 billion [1][6]. - The average processing price for waste treatment in 2024 was 1,277 yuan per ton, down 6.6% from 1,367 yuan in 2023 [2]. - The company reported a decrease in the average sales price for resource recovery, with a 14.5% drop in sales volume from 55,000 tons in 2023 to 47,000 tons in 2024 [3]. Cost and Expense Management - Management expenses as a percentage of sales were 9.8% in 2020, down from 10.6% in 2023 [4]. - Capital expenditures for 2020 were approximately 630 million, a decrease of about 290 million from 920 million in 2023 [4]. - The company reported a significant increase in labor costs and operational expenses, impacting overall profitability [4]. Cash Flow and Debt Management - The current ratio for 2024 was 187.8%, up from 165.2% in 2023, primarily due to the conversion of short-term loans to long-term loans [5]. - The debt-to-equity ratio increased to 44.4% in 2024 from 38.5% in 2023, attributed to a decrease in cash balance and net debt increase [5]. - Free cash flow improved to a net inflow of 100 million in 2024, compared to an outflow of 190 million in 2023 [5]. Strategic Insights - The company is shifting its focus from scale to quality, emphasizing cash flow and profitability as core objectives [9]. - The management plans to enhance operational efficiency and reduce project initiation costs to improve cash flow quality [10]. - The company is actively pursuing partnerships and collaborations to foster innovation and improve service delivery [11]. Market Dynamics - The urban services sector is experiencing pressure from local government financial constraints, leading to price competition and reduced margins [8]. - The introduction of long-term government bonds and equipment upgrades is expected to improve cash flow for service fees [8]. - The company is adapting to new demands driven by AI technology, focusing on smart city solutions [19]. Additional Important Information - The company has been recognized for its ESG efforts, achieving a score of 52 in the S&P CSA, surpassing 93% of its peers [11]. - The management is committed to maintaining a sustainable dividend policy despite recent profit declines [17]. - The company is exploring opportunities for project disposals in the waste management sector due to ongoing losses [18]. This summary encapsulates the key insights and financial metrics discussed during the conference call, providing a comprehensive overview of the company's performance and strategic direction in the urban environmental services industry.

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company reported a revenue of 6.028 billion RMB for 2024, a year-on-year increase of 19.2%, but the net profit attributable to shareholders was only 25.69 million RMB, a significant decline of 91.0% year-on-year, primarily due to goodwill impairment losses in hazardous waste business amounting to 238 million RMB [1][5] - Despite the challenges in the hazardous waste sector, the urban services business showed strong demand, with new project contracts exceeding 6.4 billion RMB in 2024, indicating potential for revenue recovery [1][2] Summary by Sections Financial Performance - In 2024, the urban services business generated 5.31 billion RMB in revenue, accounting for 88% of total revenue, with a year-on-year growth of 22.3% [2] - The hazardous waste treatment business reported revenue of 536 million RMB, with a gross margin of 5.0%, down 12.2 percentage points year-on-year due to decreased demand and average processing prices [4] Order Book and Growth Potential - As of the end of 2024, the company had a total backlog of urban service contracts amounting to 29.84 billion RMB, with new orders totaling 7.85 billion RMB in 2024 [3] - The acquisition of 85% of Hong Kong Chengmei Service Co., which has 35 urban service projects, is expected to enhance the company's market share and contribute to revenue growth [2] Earnings Forecast - The earnings forecast for the company has been revised downwards, with expected net profits of 240 million RMB, 250 million RMB, and 260 million RMB for 2025, 2026, and 2027 respectively [5] - The target price has been adjusted to 0.47 HKD based on a 6.5x PE ratio for 2025, reflecting the company's lower liquidity in the Hong Kong market [5][9]

Financial Performance - The group recorded revenue of approximately RMB 6.028 billion for the year ending December 31, 2024, an increase of about 19.2% compared to RMB 5.058 billion for the year ending December 31, 2023[3]. - The profit attributable to shareholders for the year was approximately RMB 25.693 million, a decrease of about 91.0% from RMB 284.734 million in the previous year, primarily due to a goodwill impairment loss of RMB 237.683 million recognized during the year[4]. - The group reported a pre-tax profit of RMB 195.263 million for the year, down from RMB 425.384 million in the previous year[4]. - The group’s total comprehensive income for the year was RMB 90.292 million, compared to RMB 331.506 million in the previous year[5]. - The adjusted profit attributable to the owners of the parent company for 2024 was RMB 357,668 thousand, slightly down from RMB 368,797 thousand in 2023, reflecting a decrease of approximately 3.1%[18]. - The gross profit for the group in 2024 was RMB 1,148,835 thousand, compared to RMB 1,022,822 thousand in 2023, indicating a year-on-year increase of about 12.3%[18]. - The group’s gross profit margin decreased from 20.2% for the year ended December 31, 2023, to 19.1% for the year ended December 31, 2024, primarily due to a decline in the gross profit margin of hazardous waste treatment services[53]. Revenue Sources - The group secured 64 urban service projects through public tenders and acquisitions, with a total contract value and estimated annual revenue of approximately RMB 7.848 billion and RMB 1.497 billion, respectively[3]. - Revenue from the mainland China market was RMB 5,692,940 thousand in 2024, up from RMB 5,057,613 thousand in 2023, marking an increase of approximately 12.6%[20]. - The group’s income from the city services segment in 2024 was RMB 5,310,493 thousand, an increase from RMB 4,343,559 thousand in 2023, representing a growth of approximately 22.2%[18]. - Revenue from urban environmental governance services was RMB 5,253,268,000, up 29.4% from RMB 4,060,872,000 in the previous year[22]. - The company’s hazardous waste treatment business revenue decreased by 1.9% to RMB 536,459 thousand in 2024 from RMB 546,759 thousand in 2023[41]. Dividends and Shareholder Returns - The proposed final dividend is HKD 0.013 per share, with a total annual dividend of HKD 0.025 per share[3]. - The company plans to distribute a final dividend of HKD 0.013 per share for 2024, down from HKD 0.015 per share in 2023, totaling approximately RMB 42,538,000[32]. - The company repurchased 39,700,000 shares at a total cost of approximately RMB 20,746,000 in 2024, compared to 3,636,000 shares for RMB 1,456,000 in 2023[40]. Assets and Liabilities - The group's cash flow remains robust, with total assets amounting to RMB 8.581 billion as of December 31, 2024, compared to RMB 8.127 billion in 2023[9]. - Current liabilities totaled RMB 2.682 billion, with a net current asset value of RMB 2.355 billion as of December 31, 2024[9]. - The group’s non-current assets decreased to RMB 3.544 billion from RMB 3.842 billion in the previous year, primarily due to the reduction in goodwill[7]. - Total bank borrowings increased to RMB 2,632,026 thousand in 2024 from RMB 2,562,139 thousand in 2023, marking a rise of 2.7%[39]. - The net debt ratio increased to 44.4% as of December 31, 2024, from 38.5% as of December 31, 2023, primarily due to increased net debt from business expansion[80]. Operational Highlights - The company operated a total of 231 urban service projects as of December 31, 2024, an increase from 186 projects at the beginning of the year[44]. - The company successfully won 35 urban service projects through public bidding, with a total contract value of approximately RMB 6,090.9 million in mainland China and RMB 330.9 million in Hong Kong[45]. - The actual processing volume of the group's harmless disposal projects increased from 230,027 tons for the year ended December 31, 2023, to 285,637 tons for the year ended December 31, 2024[59]. Expenses and Costs - Administrative expenses increased to RMB 593.5 million for the year ended December 31, 2024, compared to RMB 523.7 million in the previous year, primarily due to ongoing business expansion in urban services[63]. - Other expenses rose to RMB 48.7 million for the year ended December 31, 2024, from RMB 30.9 million in the previous year, mainly due to impairment losses on trade receivables[64]. - The group’s financing costs for 2024 were RMB 59,234 thousand, slightly down from RMB 61,331 thousand in 2023, reflecting a decrease of about 3.4%[18]. Strategic Focus and Future Plans - The company aims to enhance operational efficiency, drive innovation, and deepen value cultivation as its strategic focus for 2025[82]. - The company plans to implement a "high-quality development" strategy to improve profitability, reduce growth rates, and control risks[83]. - The company is focusing on developing smart sanitation equipment, low-carbon technologies, and digital platforms to create a differentiated competitive advantage[83]. Governance and Compliance - The company emphasizes high levels of corporate governance to achieve sustainable development and enhance performance, adhering to the corporate governance code as of December 31, 2024[96]. - All directors confirmed compliance with the standard code for securities trading as of December 31, 2024[97]. - The audit committee, consisting of three independent non-executive directors, reviewed the company's financial reporting procedures and internal controls for the year ending December 31, 2024[98]. - Deloitte has verified the financial figures in the preliminary announcement for the year ending December 31, 2024, although their work does not constitute an audit[99].

Financial Performance - The company recorded revenue of approximately RMB 2.6878 billion for the six months ended June 30, 2024, representing an increase of about 20.2% compared to the same period last year[5]. - The profit attributable to shareholders for the same period was approximately RMB 128.5 million, a decrease of about 24.5% year-on-year[5]. - The gross profit for the same period was RMB 556.846 million, compared to RMB 514.758 million in 2023, reflecting an increase of about 8.2%[44]. - The net profit for the six months ended June 30, 2024, was RMB 151.421 million, down from RMB 197.498 million in 2023, indicating a decrease of approximately 23.3%[44]. - The group's net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 128,499,000, a decrease of 24.5% from RMB 170,153,000 in the same period last year[12]. - The basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 3.61, down from RMB 4.73 in 2023, representing a decrease of about 23.7%[44]. - The adjusted profit attributable to the owners of the parent for the six months ended June 30, 2024, was RMB 173,135 thousand, compared to RMB 208,235 thousand in the prior year, indicating a decrease of 17%[56]. Revenue Segments - The urban environment governance services segment generated revenue of RMB 2,392,808,000, reflecting a 25.5% increase from RMB 1,906,811,000 in the previous year[12]. - Urban services revenue reached approximately RMB 2.402 billion for the six months ended June 30, 2024, up from RMB 1.907 billion for the same period in 2023, with a gross profit margin decline from 23.8% to 22.4%[22][24]. - The hazardous waste treatment business reported a revenue decline of 15.1% to RMB 228,956,000, with a gross profit margin of 4.5%[12]. - The revenue from urban environmental governance services and construction services amounted to RMB 2,392,808,000, compared to RMB 1,906,811,000 in the previous year, reflecting a growth of about 25.5%[59]. Dividends and Shareholder Returns - The interim dividend declared is HKD 0.012 per share, with a payout ratio of approximately 30.2%[5]. - The company declared an interim dividend of HKD 0.012 per ordinary share for the six months ended June 30, 2024, payable to shareholders on the register as of September 13, 2024[104]. - The company declared a dividend of RMB 48,548,000 for the year-end 2023, compared to RMB 31,680,000 for the year-end 2022, marking an increase of approximately 53.2%[47]. Operational Developments - The company successfully acquired Chengmei Service Co., Ltd., expanding its urban service business into the Hong Kong market[7]. - The company added 48 new awarded projects during the reporting period, indicating a strong growth trajectory in project acquisition[7]. - The group has signed management contracts for 224 urban service projects across 25 provinces and municipalities[11]. - The group completed the acquisition of Chengmei on June 25, 2024, for a total consideration of HKD 44,171,000, enhancing its presence in the Hong Kong urban services market[18]. Challenges and Strategic Focus - The hazardous waste treatment industry is facing severe challenges, including overcapacity and declining profits, prompting the company to seek operational efficiency improvements[7]. - The company is focusing on enhancing mechanization and digitalization levels to adapt to new urbanization development requirements[5]. - The group aims to strengthen risk management and compliance, enhancing its investment assessment mechanisms and building a green supply chain[9]. - Despite macroeconomic challenges, the group anticipates supportive policies for stable economic operation and aims for long-term high-quality development in the industry[10]. Financial Position and Cash Flow - Cash and cash equivalents increased to approximately RMB 1.2336 billion as of June 30, 2024, compared to RMB 1.0807 billion as of December 31, 2023[38]. - The net debt ratio increased to 41.5% as of June 30, 2024, from 38.5% as of December 31, 2023, primarily due to an increase in net debt[38]. - Operating cash flow for the six months ended June 30, 2024, was RMB 137,303,000, down from RMB 234,880,000 in 2023, indicating a decline of about 41.4%[48]. - The total assets as of June 30, 2024, amounted to RMB 8,947.303 million, an increase from RMB 8,126.792 million as of December 31, 2023, representing a growth of about 10.1%[45]. Employee and Management Information - The company employed 63,396 employees as of June 30, 2024, up from 52,713 employees a year earlier, marking an increase of approximately 20.3%[43]. - The total employee cost for the six months ended June 30, 2024, was approximately RMB 158.24 million, compared to RMB 114.49 million for the same period in 2023, reflecting an increase of about 38.2%[43]. - The total remuneration paid to key management personnel was RMB 4,806,000 for the six months ended June 30, 2024, up from RMB 4,335,000 in the same period in 2023, indicating an increase of 10.9%[85]. Shareholder Structure and Governance - The company’s directors and senior management hold a total of 2,439,980,777 shares, representing approximately 68.60% of the issued share capital as of June 30, 2024[90]. - The major shareholder, Beikong Water Group, holds 1,478,312,777 shares, which accounts for 41.56% of the company's issued share capital[96]. - The concert party agreement includes multiple entities, with a total of 2,439,980,777 shares being collectively held, indicating significant shareholder alignment[94]. - The company emphasizes maintaining high levels of corporate governance to achieve sustainable development and enhance performance[107].