Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,807,488, a decrease of 12.5% compared to RMB 2,065,863 in 2022[3] - Gross profit for 2023 was RMB 798,240, down from RMB 857,271 in 2022, reflecting a gross margin of approximately 44.1%[3] - Operating profit decreased to RMB 615,595 in 2023 from RMB 678,302 in 2022, indicating a decline of 9.2%[3] - Profit before tax increased to RMB 381,702, up 3.2% from RMB 367,465 in the previous year[3] - Net profit for the year was RMB 317,727, slightly down from RMB 324,135 in 2022, representing a decrease of 2.3%[3] - Total comprehensive income for 2023 was RMB 318,587, compared to RMB 323,086 in 2022, a decline of 1.5%[5] - Basic and diluted earnings per share remained stable at RMB 0.31 for both 2023 and 2022[5] Assets and Liabilities - Non-current assets decreased to RMB 7,152,430 in 2023 from RMB 7,371,557 in 2022, a reduction of 3%[6] - Current liabilities increased significantly to RMB 4,796,359 in 2023 from RMB 4,239,074 in 2022, an increase of 13.2%[6] - The company reported a total liability of RMB 7,044,613 thousand as of December 31, 2022, with segment liabilities for wastewater treatment at RMB 4,384,230 thousand and water supply at RMB 731,065 thousand[67] - The company's total borrowings amounted to RMB 5,272.1 million, a decrease of 10.2% from RMB 5,869.1 million in 2022[136] - The company's net asset liability ratio as of December 31, 2023, was 50.3%[136] Cash Flow - Cash and bank balances rose to RMB 174,088 in 2023, up from RMB 131,494 in 2022, indicating a growth of 32.3%[6] - Cash generated from operating activities was RMB 220.9 million compared to a cash outflow of RMB 302.6 million in the previous year[183] - Cash used in investing activities was RMB 303.8 million compared to a cash outflow of RMB 96.5 million in the previous year[183] - The net cash inflow from investment activities for the year ended December 31, 2023, was RMB 303.8 million, an increase of RMB 400.3 million compared to 2022, primarily due to reduced cash payments for purchasing property, plant, and equipment, and increased proceeds from the sale of subsidiaries[185] - The financing activities net cash outflow decreased from RMB 973.5 million in 2022 to RMB 480.6 million in 2023, primarily due to a reduction in loan repayments[185] Segment Performance - The wastewater treatment segment generated revenue of RMB 1,233.1 million, down from RMB 1,298.1 million in 2022[41] - Revenue from the wastewater treatment segment for 2023 was RMB 207,399 thousand, a decrease from RMB 905,130 thousand in 2022, while revenue from the water supply segment was RMB 696,460 thousand, not applicable in the previous year[67] - Revenue from the water supply segment accounted for 24.6% of total revenue in 2023[140] - Revenue from the water supply segment increased from RMB 101.2 million to RMB 129.4 million, an increase of RMB 28.2 million or 27.9%[167] - Revenue from other segments decreased from RMB 666.5 million for the year ended December 31, 2022, to RMB 445.0 million for the year ended December 31, 2023, a decline of RMB 221.5 million or 33.2%[144] Expenses and Costs - Total sales cost, sales expenses, administrative expenses, and R&D expenses amounted to RMB 1,123,452 thousand, compared to RMB 1,334,780 thousand in the previous year, indicating a decrease[84] - Sales costs decreased from RMB 1,208.6 million for the year ended December 31, 2022, to RMB 1,009.2 million for the year ended December 31, 2023, a reduction of RMB 199.4 million or 16.5%[145] - Administrative expenses decreased from RMB 121.3 million for the year ended December 31, 2022, to RMB 111.9 million for the year ended December 31, 2023, a decline of RMB 9.4 million or 7.7%[149] - Other income decreased from RMB 68.2 million for the year ended December 31, 2022, to RMB 45.5 million for the year ended December 31, 2023, a decline of RMB 22.7 million or 33.3%[151] - The company incurred depreciation expenses of RMB 232,822 thousand for property, plant, and equipment in 2023, compared to RMB 198,237 thousand in 2022[69] Governance and Compliance - The company has maintained a high level of corporate governance, adhering to the corporate governance code throughout the reporting period[79] - The company is committed to completing the nomination process for board members to ensure compliance with corporate governance standards[80] - The company has adopted the standard code for securities trading by directors and supervisors, ensuring compliance during the reporting period[81] Future Outlook and Strategy - The company aims to enhance its core competitiveness in key technology areas such as sewage treatment and resource utilization of solid waste, while expanding its ecological and environmental protection industry chain[155] - The outlook for 2024 indicates that despite external challenges, the Chinese economy is expected to continue its recovery trend[104] - The average investment recovery period for projects is 5-10 years, and any inability to secure financing may adversely affect the company's business development[160] - The company anticipates continued use of bank loans, corporate bonds, and diversified financing tools for project investments, with interest rates impacting total borrowing costs[161] Operational Capacity - The company operates 39 sewage treatment plants with a total daily sewage treatment capacity of 2.0 million cubic meters as of December 31, 2023[106] - The company has invested in 12 reclaimed water stations and 2 secondary pressurization stations, with a total designed daily capacity of 329,000 cubic meters[107] - The reclaimed water supply volume during the reporting period was 100.5 million cubic meters, showing significant growth due to increased river replenishment supply[108] - The company has 44 operating water treatment plants, including 39 sewage plants and 5 water supply plants, as of December 31, 2023[105] - Total sewage treatment volume was approximately 719.9 million cubic meters, with an average equipment utilization rate of approximately 98.6% as of December 31, 2023[157]

Financial Performance - For the six months ended June 30, 2023, the Company's revenue was RMB 862.8 million, a decrease of 5.1% compared to the same period last year[13]. - Net profit attributable to shareholders was approximately RMB 165.9 million, representing a decrease of 9.2% year-on-year, with basic earnings per share at approximately RMB 0.16[13]. - Profit before tax for the same period was RMB 201,423,000, down from RMB 206,868,000, reflecting a decrease of 2.2%[48]. - The total comprehensive income for the period was RMB 166,825,000, compared to RMB 186,316,000 in the previous year, indicating a decline of 10.4%[48]. - The gross margin improved to 35% in the first half of 2023, up from 32% in the previous year[42]. - The gross profit margin for the reporting period was 46.4%, an increase of 3.2% compared to 43.2% in the same period last year, primarily due to the rise in gross profit margin in the wastewater and water supply segments[115]. Operational Efficiency - The Company implemented measures to enhance operational efficiency, including adjusting water prices and controlling energy consumption within reasonable ranges[18]. - The company has strengthened its operational management system, effectively improving the quality and efficiency of existing assets through measures such as adjusting water prices and strict penalty systems[20]. - The company aims to reduce operational costs by 10% through efficiency improvements and technology upgrades by 2024[42]. - The company is committed to optimizing its structure and revitalizing existing capacities to enhance operational efficiency[83]. Water Treatment and Compliance - The wastewater treatment plants processed 329.2 million cubic meters of wastewater and supplied 70.4 million cubic meters of water, maintaining a 99.4% compliance rate with national Class I Category A standards[17]. - The overall passing rate of the quality of water supplied met relevant standards, with treated water discharged in compliance with wastewater treatment standards[17]. - The company maintained a 99.4% compliance rate with national Class A discharge standards for wastewater treatment[20]. - The company focuses on wastewater treatment and has strengthened its operational advantages, aiming to enhance the quality and efficiency of its water treatment plants[64]. Project Management and Development - The Company focused on planning and reserving high-quality projects, ensuring safe and orderly construction of all ongoing projects[19]. - The company is focusing on high-quality project reserves and enhancing lifecycle management of existing projects to ensure safe and orderly construction[21]. - The company is committed to optimizing existing project management and selecting high-quality projects to ensure stable income[31]. - Future strategies include expanding strengths in key technological areas such as advanced wastewater treatment and sludge recycling[83]. Market Expansion and User Growth - User data indicates that the number of active users increased by 20% to 1.2 million in the first half of 2023[42]. - The company plans to expand its market presence by entering two new provinces by the end of 2024[42]. - The company is exploring potential acquisitions to enhance its service offerings and market share in the water treatment sector[42]. Cash Flow and Financial Management - The company emphasizes cash flow management and aims to improve its cash flow position by optimizing budget allocation and expanding financing channels[25]. - Net cash generated from operating activities was RMB 104.9 million, an increase of RMB 247.5 million compared to a net cash used of RMB 142.6 million in the same period last year[147]. - Net cash used in investing activities decreased from RMB 67.0 million to RMB 51.2 million, primarily due to a decrease in advances to related parties[148]. - The company received net cash proceeds of RMB 1,072.3 million from the global offering after deducting expenses[150]. Industry Trends and Government Policies - The wastewater treatment industry is expected to benefit from national policies aimed at improving urban domestic wastewater treatment facilities and promoting resource utilization, creating a favorable external environment for growth[65]. - The government aims for a reclaimed water utilization rate of over 25% in water-scarce cities by 2035, which may benefit the company's future projects[79]. - The increasing demand for environmental protection services and the intensifying competition are shaping a new market pattern in the environmental protection industry[62]. Current Assets and Liabilities - As of June 30, 2023, the company's current assets totaled RMB 4,784.6 million, compared to RMB 4,330.6 million as of December 31, 2022, reflecting an increase driven by higher trade receivables[165]. - Total current liabilities increased to RMB 5,101.3 million as of June 30, 2023, from RMB 4,239.1 million as of December 31, 2022[165]. - The ageing analysis of total accounts receivable shows that receivables within one year increased to RMB 2,067.5 million from RMB 1,772.0 million, while those over two years rose to RMB 238.4 million from RMB 141.4 million[188].

B_table indent_4.5 mm N_table indent_4 mm 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Kunming Dianchi Water Treatment Co., Ltd. 昆明滇池水務股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3768） 2023年中期業績公告 財務摘要 截至2023年6月30日止六個月期間，本集團： • 收入約為人民幣862.8百萬元，較上年同期減少5.1%； • 稅前利潤約為人民幣201.4百萬元，較上年同期減少2.7%； • 本公司權益持有人應佔淨利潤約為人民幣165.9百萬元，較上年同期減少9.2%； • 每股盈利約為人民幣0.16元，較上年同期減少11.1%。 ...

Financial Performance - For the year ended 31 December 2022, the company's revenue was RMB 2,065,863,000, a decrease of 10.8% compared to RMB 2,317,738,000 in 2021[30]. - Operating profit increased to RMB 678,302,000, up 28.3% from RMB 528,368,000 in the previous year[30]. - Profit for the year was RMB 324,135,000, a slight decrease of 4.5% from RMB 339,551,000 in 2021[30]. - Total assets as of 31 December 2022 were RMB 11,702,204,000, down from RMB 12,067,938,000 in 2021[31]. - Total liabilities decreased to RMB 7,044,613,000 from RMB 7,632,127,000 in 2021, indicating a reduction of 7.7%[31]. Employee Relations and Benefits - Employee benefits for the years ended December 31, 2021, and 2022 amounted to approximately RMB185.2 million and RMB215.5 million, respectively, representing an increase of about 16.5%[1]. - There were no major labor disputes during the reporting period, indicating a good relationship with employees[3]. - The Company operates an in-house training program and owns a vocational training school to enhance employee skills[2]. Investments and Projects - The Company will invest approximately RMB170 million in the Kunming Luquan Yi and Miao Autonomous County Beautiful County Water Environment Comprehensive Improvement Project, obtaining 30-year or 15-year concession rights for each sub-project[17]. - The Company conditionally agreed to sell 100% equity interest in Fanchang Dianchi Water for a consideration expected not to exceed RMB163 million[24]. - The Mutual Trust No. 5 Asset Management Agreement was extended to April 10, 2022, with an investment of RMB300 million[9]. - The company has no plans for major investments or capital and asset acquisitions as of December 31, 2022[19]. Wastewater Treatment and Environmental Management - The wastewater treatment industry is expected to grow due to increasing urbanization and demand for improved wastewater quality and efficiency[34]. - The company is focusing on enhancing the operation and maintenance of wastewater networks and promoting sustainable development in the industry[40]. - The PRC government has issued guidelines to accelerate the construction of urban environmental infrastructure, indicating ongoing support for the wastewater treatment sector[35]. - The total volume of wastewater treated in 2022 was approximately 718.9 million m³, with an average facility utilization rate of approximately 97%[84]. - The company's TOO projects contributed 44.1% to total revenue, while TOT and BOT projects contributed 25.2%[79]. - The company has been entrusted to operate and manage rural domestic sewage collection and treatment facilities covering 886 villages across 19 towns[89]. Financial Management and Capital Utilization - The company maintains a focus on risk-controlled management of idle funds to enhance capital efficiency[76]. - The controlling shareholder pledged 198,080,068 shares, representing 30% of its shareholding, as security for a loan facility of RMB 200 million granted to the company[74]. - The company signed a facility agreement with various banks for banking facilities of up to US$300 million, with a final repayment date 36 months after the first withdrawal date[15][97]. Reclaimed Water Supply and Future Plans - The company plans to continue promoting the development of its reclaimed water business in accordance with local policies and market demand[107][110]. - The reclaimed water supply increased to 237,000 m³ per day in 2022, up from 233,000 m³ per day in 2021, marking a growth of approximately 1.7%[127]. - The company aims to maintain stable growth in its reclaimed water supply business[107][110]. - The integration of reclaimed water into urban water supply systems is expected to accelerate during the "14th Five-Year Plan" period, indicating significant market potential[41]. Operational Efficiency and Risk Management - The operational risks include capital-intensive characteristics of the industry and compliance with water quality standards[109]. - The company has a solid foundation for future development of its reclaimed water business across various regions in the country[107][110]. - The company aims to optimize corporate governance and risk management mechanisms to revitalize existing assets and broaden financing channels[57]. Overall Market and Economic Outlook - In 2023, China's economic performance is expected to recover, supported by strong resilience and potential in the economy[53]. - The COVID-19 pandemic did not cause any material adverse impact on the Group's production and operation, with wastewater treatment volume increasing steadily compared to the previous year[47].

B_table indent_4.5 mm N_table indent_4 mm 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Kunming Dianchi Water Treatment Co., Ltd. 昆明滇池水務股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：3768） 截至2022年12月31日止年度的業績公告 財務摘要 截至2022年12月31日止年度，本集團： • 收入約為人民幣2,065.9百萬元，較2021年減少10.9%； • 經營利潤約為人民幣678.3百萬元，較2021年增加28.4%； • 稅前利潤約為人民幣367.5百萬元，較2021年減少7.4%； • 本公司權益持有人應佔淨利潤約為人民幣322.3百萬元，較2021年減少4.7%； 及 ...

Financial Performance - The company reported a revenue of CNY 200 million for the first half of 2022, representing a 15% increase compared to the same period last year[8]. - For the first half of 2022, the company's total revenue was RMB 909.1 million, an increase of 1.9% year-on-year, while net profit attributable to shareholders was RMB 182.8 million, representing a growth of 9.5% compared to the same period last year[45]. - The company reported a revenue of RMB 1.5 billion for the first half of 2022, representing a year-on-year increase of 12%[71]. - Revenue for the six months ended June 30, 2022, was RMB 909.1 million, an increase of RMB 16.7 million or 1.9% compared to RMB 892.4 million for the same period last year[161]. - The gross profit margin for the first half of 2022 was reported at 35%, a slight improvement from 33% in the previous year[71]. - Gross profit for the six months ended June 30, 2022, was RMB 392.9 million, reflecting a 17.6% increase from RMB 334.2 million in the prior year[155]. - Profit for the period attributable to equity holders was RMB 182,826,000, up from RMB 166,969,000, marking a growth of 9.5%[96]. - Total comprehensive income for the period was RMB 186,316,000, compared to RMB 167,238,000 in the previous year[96]. - The wastewater treatment segment accounted for 64.6% of total revenue in the first half of 2022, reflecting its significant contribution to the company's financial performance[103]. User Growth and Market Expansion - User data indicates that the number of active users increased by 10% year-on-year, reaching 1.5 million[8]. - User data indicates an increase in customer base by 15% compared to the previous year, reaching 2 million active users[71]. - The company plans to expand its market presence in neighboring provinces, targeting a 30% increase in market share by 2025[8]. - The company plans to expand its market presence in Yunnan Province, targeting a 25% increase in market share by 2023[71]. Strategic Initiatives and Innovations - The company expects a revenue growth of 20% for the full year 2022, driven by increased demand for water treatment services[8]. - New product development includes the launch of an advanced wastewater treatment technology, projected to reduce operational costs by 25%[8]. - A strategic acquisition of a local competitor is under consideration, which could enhance the company's service capabilities and customer base[8]. - The company is exploring partnerships with technology firms to integrate smart water management systems into its services[8]. - The company is exploring potential acquisitions to diversify its service portfolio and strengthen its competitive position[71]. - The company has allocated CNY 50 million for research and development in the next fiscal year to innovate water treatment solutions[8]. - The company is committed to achieving sustainable and high-quality development through refined management and strategic planning[60]. Operational Efficiency and Cost Management - Operational efficiency improvements are expected to yield a 10% reduction in costs by optimizing existing processes[8]. - The company aims to reduce operational costs by 5% through process optimization initiatives in the upcoming fiscal year[71]. - The company focuses on cost reduction and efficiency enhancement of operational projects to improve overall performance[112]. Sustainability and Environmental Goals - The management highlighted a focus on sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2030[8]. - The company aims to capture market opportunities through cooperation and contribute to national ecological and environmental management goals[63]. - The company aims to improve operational management efficiency and promote cost reduction and efficiency enhancement in production projects[57]. - The company is committed to enhancing its wastewater treatment capabilities to address urban environmental challenges[118]. Government Regulations and Industry Outlook - During the "14th Five-Year Plan" period, China has set clear requirements for wastewater treatment rates and quality, focusing on quality and efficiency enhancement in the industry[57]. - The environmental protection industry is expected to have a positive outlook, supported by a RMB 23.7 billion allocation for water pollution prevention and control, a 9.22% increase[107]. - By 2025, China aims to increase wastewater treatment capacity by 20 million cubic meters per day, achieving a treatment rate of over 95% in counties[118]. - The "14th Five-Year Plan" emphasizes the importance of wastewater recycling, targeting a production capacity of at least 15 million cubic meters per day by 2025[126]. Internal Governance and Talent Management - The company emphasized internal governance and talent cultivation, enhancing the core corporate competitiveness and improving the efficiency of its workforce[55]. - The company will strengthen internal governance and talent management to enhance core competitiveness and team effectiveness[58]. - The company has made new progress in reforming its internal management mechanism, party building, and corporate governance, laying a solid foundation for future growth[45]. Cash Flow and Financing Activities - Net cash used in operating activities for the six months ended 30 June 2022 was RMB 142.6 million, a decrease of RMB 520.6 million compared to RMB 663.2 million in the same period last year[182]. - Cash and cash equivalents at the end of the period were RMB 479.7 million, a decrease from RMB 1,201.7 million at the end of the same period last year[180]. - The company plans to utilize the unused net proceeds by June 2023, with a focus on enhancing the efficiency of use and reducing finance costs[195]. - The company reported foreign exchange gains of RMB 346 during the reporting period, compared to losses of RMB 499 in the previous year[180].

Financial Performance - The company reported a significant increase in operating revenue, reaching CNY 1.2 billion, representing a growth of 15% year-over-year[19]. - In 2021, Dianchi Water recorded total revenue of RMB 2,317.7 million, representing an increase of 20.8% over 2020[17]. - The company reported a total revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15%[43]. - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion, representing a year-over-year growth of 25%[169]. - The total revenue for the company reached RMB 2,317,738,000 in 2021, compared to RMB 1,919,423,000 in 2020, marking an increase of 20.8%[177]. - The company reported a profit for the year of RMB 339,551,000 in 2021, slightly down from RMB 350,428,000 in 2020[177]. User Growth - User data showed an increase in customer base, with a total of 500,000 active users, up 20% from the previous year[19]. - User data indicated an increase in active users by 20% year-on-year, reaching 500,000 users by the end of 2021[43]. - User data showed an increase in active users, reaching 2 million, which is a 15% increase compared to the previous year[169]. Future Projections - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[22]. - The company expects a revenue growth of 10% to 12% for the upcoming fiscal year, projecting total revenue between RMB 1.32 billion and RMB 1.344 billion[43]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20% to RMB 1.8 billion[169]. Product Development and Innovation - New product development includes the launch of an advanced water purification system, expected to enhance efficiency by 30%[22]. - New product launches are anticipated to contribute an additional RMB 200 million in revenue in 2022[43]. - New product launches are expected to contribute an additional RMB 300 million in revenue over the next fiscal year[169]. - The Company has maintained an annual growth rate of over 20% in the number of patents obtained since 2017, highlighting its commitment to technological innovation[27]. Market Expansion - The company is expanding its market presence, targeting new regions in Yunnan Province, aiming for a 25% increase in market share[22]. - Dianchi Water expanded its operations to cover eight provinces in China and Laos, enhancing its market presence from regional to nationwide[23]. - Market expansion plans include entering two new provinces in China, expected to increase market share by 5%[43]. - The company is expanding its market presence, targeting a 10% increase in market share in the next 12 months[169]. Strategic Acquisitions - A strategic acquisition of a local competitor was completed, expected to contribute an additional CNY 300 million in annual revenue[22]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of RMB 100 million allocated for potential deals[43]. - The company is exploring potential acquisitions to strengthen its portfolio, with a budget of RMB 500 million allocated for this purpose[169]. Operational Efficiency - The management highlighted a focus on improving operational efficiency, aiming to reduce costs by 5% over the next year[22]. - The company aims to reduce operational costs by 5% through strategic initiatives in the upcoming year[169]. - The company has implemented cost-cutting measures that are projected to save RMB 30 million annually[43]. Environmental Initiatives - Environmental initiatives are being prioritized, with a commitment to reduce carbon emissions by 20% by 2025[22]. - The management emphasized a focus on sustainability initiatives, aiming for a 25% reduction in carbon emissions by 2025[43]. - The Company is committed to fulfilling its corporate social responsibility by integrating into the new development pattern and promoting high-quality corporate development[39]. Financial Stability and Investment - The Company has optimized its capital structure and controlled financing costs to ensure sufficient capital for business development, maintaining financial stability and good credit standing[29]. - The Company will adjust its investment strategies and establish a diversified investment system to strengthen post-investment management and achieve rapid investment growth[35]. - The Company is focused on selecting high-quality new projects and improving the quality of existing projects to capture growth drivers[29]. Industry Trends and Opportunities - The wastewater treatment industry in China is experiencing steady development, supported by government policies during the "14th Five-Year Plan" period[187]. - The reclaimed water industry is recognized as a "second source of water for cities," with significant development potential and market opportunities[193]. - The rural water supply and wastewater treatment markets in China remain underdeveloped, presenting new opportunities for growth[187].

DCWT滇池水分 ment co ,ltd 昆明滇池水務股份有限公司 Kunming Dianchi Water Treatment Co., Ltd. ( 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ) (a joint stock company incorporated in the People's Republic of China with limited liability) 股份代號 STOCK CODE: 3768 2021 中期報告 2021 中期報告 臻 於 至 善 源 遠 流 長 CONSUMMATION & SUSTAINABILITY | --- | --- | --- | --- | |-------|-------|------------------------|---------------------------------------------------------------| | | | | | | | | CONTENTS | | | | 目 錄 | | | | | 2 | CHAPTER ONE 第一章 | CORPORATE ...

11:40 2020年度報告 昆明滇池水務股份有限公司 Kunming Dianchi Water Treatment Co., Ltd. (於中華人民共和國註冊成立的股份有限公司) (a joint stock company incorporated in the People's Republic of China with limited liability) 股份代號 STOCK CODE:3768 CONTENTS 目 錄 | --- | --- | --- | |-------|-----------------------------|-------------------------------------------------------------------------------------| | | | | | | CHAPTER ONE 第一章 | CORPORATE INFORMATION 公司資料 | | | CHAPTER TWO 第二章 | LETTER FROM THE CHAIRPERSON 董事長致辭 | | 11 | CHAPTER THREE 第三章 | DE ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2020, representing a 15% year-on-year growth[5]. - For the six months ended June 30, 2020, the Company's revenue was RMB 794.5 million, an increase of 11.6% compared to the same period in 2019[16]. - Net profit attributable to Shareholders for the same period was RMB 159.6 million, representing a 6.8% increase year-over-year[16]. - Revenue for the six months ended June 30, 2020, increased by 11.6% to RMB 794.5 million compared to RMB 712.0 million for the same period in 2019[106]. - Profit before income tax for the period was RMB 196,887,000, up from RMB 182,890,000 in 2019, indicating a growth of 7.3%[63]. - Profit for the period attributable to equity holders was RMB 159,555,000, compared to RMB 149,452,000 in 2019, reflecting a year-on-year increase of 6.9%[63]. - Total comprehensive income for the period was RMB 161,385,000, compared to RMB 150,356,000 in 2019, marking an increase of 7.4%[63]. - Operating profit for the period was RMB 308.7 million, an increase from RMB 249.8 million in the previous year[111]. - Gross profit for the six months ended June 30, 2020, rose by 8.8% to RMB 305.1 million from RMB 280.5 million in the prior year[106]. Operational Efficiency - The company reported an operating profit margin of 18%, which is an improvement from 15% in the previous year[5]. - Cash flow from operations increased by 12%, reaching 300 million RMB in the first half of 2020[5]. - The company plans to invest 200 million RMB in technology upgrades over the next two years to enhance operational efficiency[5]. - The company aims to strengthen its technological innovation and enhance financial control to improve operational efficiency and competitiveness in the second half of 2020[30]. - The gross margin for the reporting period was approximately 38.4%, a decrease of 1.0% from 39.4% in the same period last year, primarily due to a decrease in the gross profit margin of the wastewater service segment[127]. Market Expansion and Strategy - The company is expanding its market presence by entering two new provinces in China, aiming to increase market share by 5% in the next year[5]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's service capabilities and increase revenue by 8%[5]. - The company aims to position itself as an "internationally-operated comprehensive service provider of ecological and environmental protection and management" by expanding project investment and pursuing industrial mergers and acquisitions[23]. - The company aims to expand its core business of wastewater treatment and actively pursue industrial mergers and acquisitions to enhance the entire industry chain[75]. - The company plans to further expand its wastewater treatment business while strengthening the growth of reclaimed water and running water supply businesses[89]. Technological Innovation - New product development includes the launch of an advanced wastewater treatment technology, expected to reduce operational costs by 30%[5]. - The company emphasizes the importance of scientific and technological innovation to enhance operational management and competitiveness[28]. - The company will continue to track technological innovations in wastewater treatment quality and efficiency improvements[89]. Environmental Commitment - The management has implemented new strategies focusing on sustainability, aiming for a 25% reduction in carbon emissions by 2025[5]. - The company is committed to contributing positively to the national ecological environment and sustainable development through its operations[75]. - The government has introduced policies to develop the environmental protection industry, creating new opportunities for the Company[23]. - The ecological environmental management is shifting towards a co-governance model involving landscapes, forests, fields, lakes, and grasses[89]. Financial Management - The company is committed to providing stable and sustainable returns to Shareholders through improved financial management and risk control[28]. - The company funded its investments and operations primarily through bank loans, cash generated from operations, equity contributions, and issuance of debt instruments[156]. - The company’s financing activities were primarily funded through listing proceeds and borrowings, reflecting a strategic approach to capital management[169]. Cash Flow and Investments - Net cash used in operating activities was RMB -686.3 million, a decrease of RMB 856.2 million compared to RMB 169.9 million for the same period last year, primarily due to decreased cash received from customers[168]. - Cash and cash equivalents at the end of the period were RMB 1,380.8 million, compared to RMB 1,937.6 million at the end of the same period last year[162]. - The company allocated 35% of the net proceeds for acquiring wastewater treatment plants and running water supply projects, totaling RMB 375.3 million[176]. - As of 30 June 2020, the company had approximately RMB 283.3 million of unused net proceeds from the Initial Public Offering[176].