Financial Performance - The Group's net profit for the year increased by 31.2% to RMB170.9 million compared to last year[11]. - Total revenue for the year was RMB2,261.3 million, representing an increase of 2.0% year-on-year, with urban water treatment operations accounting for 95.5% of the total[12]. - Revenue from construction services increased by 53.2% to RMB266.0 million compared to last year due to the completion of certain construction-in-progress projects[12]. - The actual wastewater treatment volume reached 1,278.4 million tonnes, representing a slight increase of 1% compared with last year[12]. - The overall gross profit margin for the year stood at 48.2%, remaining largely flat compared to 48.5% for the same period last year[12]. - Total operating revenue for the Group's Urban Water Treatment services was RMB1,176.2 million for the year ended December 31, 2024, a decrease of approximately 7% from RMB1,265.3 million in 2023[39]. - The Group's gross profit margin for the year remained stable at 48.2%, compared to 48.5% in the previous corresponding period[55]. - The Group's cost of sales for the year was RMB1,172.3 million, representing an increase of approximately 3% from RMB1,140.4 million in the previous period[51]. Cash Flow and Financing - Net operating cash inflow of RMB403.1 million was recorded for the year, which had remained positive since 2019[16]. - The average borrowing interest rate for the year decreased by 0.44 percentage points to 5.51% compared with last year[17]. - Finance costs amounted to approximately RMB544.2 million, representing a decrease of 6.0% compared with last year[17]. - The Group recorded an operating cash inflow of RMB 403.1 million for the year, maintaining positive cash flow since 2019[19]. - As of December 31, 2024, the Group's debt-to-asset ratio improved to 68.6% from 69.6% in the previous year, while the current ratio increased to 1.32 from 1.15[19]. - The average borrowing rate decreased by 0.44 percentage points to 5.51%, resulting in financing costs of approximately RMB 544.2 million, a reduction of 6.0% year-on-year[19]. - The Group's total interest-bearing debts decreased to RMB 9,854.0 million as of December 31, 2024, from RMB 9,917.0 million as of December 31, 2023, with 69.4% classified as long-term[94]. - The gearing ratio decreased to 68.6% as of December 31, 2024, compared to 69.6% in the previous year[95]. Operational Capacity and Projects - The Group operated 105 service concession arrangement projects with a total operational treatment capacity exceeding 4 million tons per day as of December 31, 2024[27]. - The total daily treatment capacity for wastewater, reclaimed water, and sludge treatment plants in operation reached 4,089,500 tonnes, 65,000 tonnes, and 550 tonnes respectively, showing an increase from 4,024,500 tonnes in 2023 for wastewater treatment[38]. - The actual aggregate processing volume for the year ended December 31, 2024, was 1,278.4 million tonnes, representing a minor increase compared to 1,265.7 million tonnes in 2023[38]. - The Group had 100 wastewater treatment projects, 2 reclaimed water treatment projects, and 3 sludge treatment projects in operation as of December 31, 2024[38]. - The total daily treatment capacity of service concession arrangements still in the construction stage was 50,500 tonnes as of December 31, 2024[44]. Strategic Initiatives and Future Plans - The Group plans to seek reasonable adjustments to wastewater treatment prices to offset rising operational costs and enhance profitability[21]. - The Group aims to optimize its debt structure during the interest rate cut cycle to further reduce financing costs[21]. - The Group is focused on expanding its Urban Water Treatment chain to improve profitability and competitiveness[33]. - The Group is confident in the sustainable development of the wastewater treatment industry, supported by national policies promoting private enterprises[20]. - The Group will enhance energy-saving and cost-reduction measures to improve operational efficiency and gross margins[21]. - The Group is focusing on integrating resources to execute Water Environment Comprehensive Remediation projects under EPC and O&M contracts[45]. - The company aims to expand its market presence and enhance its operational efficiency through strategic investments and management practices[116]. Governance and Management - The Group has complied with all applicable provisions of the Corporate Governance Code during the year ended December 31, 2024[133]. - The Board of Directors is responsible for overseeing the Group's businesses, strategic decisions, and performance, with authority delegated to the CEO and senior management for day-to-day operations[147]. - The Company has established a corporate governance framework, ensuring compliance with the Listing Rules, including the appointment of at least three independent non-executive Directors[153]. - The Board is collectively responsible for corporate governance duties and has reviewed the Company's policies and practices on compliance with legal and regulatory requirements[169]. - The Company is committed to developing and monitoring policies on corporate governance, compliance, and ethical conduct[172]. - The Board has established three committees: the nomination committee, the remuneration committee, and the audit committee[190]. - The Nomination Committee is tasked with reviewing Board composition and assessing the independence of independent non-executive Directors[168]. - The Company ensures compliance with applicable laws and regulations through the Board's oversight and independent professional advice[195]. Human Resources - The Group had 2,285 employees as of December 31, 2024, with remuneration packages determined based on market conditions and individual performance[101]. - The attendance record for Board meetings shows full participation from most Directors, with Li Zhong, Liu Yujie, and Duan Jerry Linnan attending all 9 meetings[186]. - All Directors participated in continuous professional development, including updates on rules and regulations[180]. Environmental Commitment - The Group actively promotes a green and low-carbon culture by developing and applying new technologies in sewage treatment projects to improve energy efficiency[141]. - The Group organized a "Public Open Day for Environmental Protection Facilities" to raise public awareness of ecological environment protection and water conservation[144]. - The Group aims to achieve harmonious development of people, nature, and the environment by focusing on building an environment-friendly and resource-saving enterprise[145].

Financial Performance - Revenue for the year ended December 31, 2024, was approximately RMB 2,261.3 million, an increase of about 2.0% compared to the previous year, driven by growth in construction services revenue[3] - Gross profit amounted to RMB 1,089.0 million, reflecting a 1.2% increase, with a stable gross margin of 48.2% compared to 48.5% in the previous year[3] - Net profit attributable to the parent company was approximately RMB 168.0 million, representing a significant increase of about 34.6% due to reduced financing costs and income tax expenses[3] - Basic and diluted earnings per share for ordinary shareholders were RMB 7.85, up approximately 34.6% from RMB 5.83 in the previous year[3] - The total revenue for the Urban Water Division reached RMB 2,160,205,000, while the total revenue for the Water Environment Comprehensive Management Division was RMB 22,133,000, and the Rural Wastewater Management Division generated RMB 78,944,000, leading to a combined total revenue of RMB 2,261,282,000[24] - The adjusted profit before tax for the Urban Water Division was RMB 460,393,000, the Water Environment Comprehensive Management Division reported RMB 25,182,000, and the Rural Wastewater Management Division had RMB 21,969,000, resulting in a total adjusted profit before tax of RMB 507,544,000[24] - The company reported a total segment profit of RMB 484,721,000 for the year, down from RMB 512,121,000 in the previous year, indicating a decrease of approximately 5.4%[27] - The group reported a decrease in trade receivables from joint ventures to RMB 99,297,000 in 2024, down from RMB 108,664,000 in 2023, representing a decline of about 12.63%[62] Cash Flow and Liquidity - Net cash inflow from operating activities was RMB 403.1 million, an increase of 37.6% compared to the previous year[3] - The net cash flow from operating activities was RMB 403.1 million for the year ended December 31, 2024, compared to RMB 292.9 million for the previous year[102] - The net cash flow from investing activities was RMB 151.8 million for the year ended December 31, 2024, compared to RMB 12.8 million for the previous year[102] - The group’s cash flow from financing activities showed a net outflow of RMB 626.0 million for the year ended December 31, 2024, compared to a net outflow of RMB 257.1 million for the previous year[102] - As of December 31, 2024, the group's cash and cash equivalents amounted to RMB 177.1 million, a decrease of approximately RMB 71.3 million from RMB 248.4 million on December 31, 2023[106] Assets and Liabilities - Total non-current assets increased from 12,139,651 thousand RMB in 2023 to 12,615,934 thousand RMB in 2024, reflecting a growth of approximately 3.9%[8] - Current assets rose from 6,657,776 thousand RMB in 2023 to 6,611,428 thousand RMB in 2024, indicating a slight decrease of about 0.7%[8] - Total liabilities decreased from 5,771,449 thousand RMB in 2023 to 5,302,629 thousand RMB in 2024, representing a reduction of approximately 8.1%[10] - The total assets decreased from 13,455,913 thousand RMB in 2023 to 13,851,297 thousand RMB in 2024, reflecting a decline of approximately 2.9%[10] - The total interest-bearing debt decreased to RMB 9,854.0 million as of December 31, 2024, down from RMB 9,917.0 million on December 31, 2023, with 69.4% classified as long-term debt[107] - The group's asset-liability ratio improved to 68.6% as of December 31, 2024, compared to 69.6% in the same period last year[108] Capital Expenditures and Investments - Capital expenditures for the year totaled RMB 34,761,000, which includes investments in property, plant, and equipment[29] - The group invested RMB 165.1 million and RMB 258.4 million in BOT/TOT and PPP projects, respectively, for the years ended December 31, 2024, and December 31, 2023[102] - The group aims to focus on stable cash flow from urban water services while selectively investing in value-added areas along the water industry chain[76] Financing and Costs - Total financing costs amounted to RMB 544.211 million in 2024, down from RMB 578.719 million in 2023, reflecting a reduction of approximately 6%[45] - The total service costs for construction services in 2024 are RMB 208,253,000, slightly increasing from RMB 206,487,000 in 2023[46] - The total service costs for operating services in 2024 are RMB 964,015,000, compared to RMB 933,900,000 in 2023, reflecting an increase of approximately 3.3%[46] - Other expenses increased by approximately 103% to RMB 88.3 million, compared to RMB 43.4 million in the previous year, mainly due to increased foreign exchange losses[92] Shareholder Information - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2024, similar to the previous year[115] - The weighted average number of ordinary shares outstanding remains constant at 2,139,735,000 for both 2024 and 2023[53] - The group has maintained at least 25% of its issued share capital held by the public as of December 31, 2024, in compliance with the Hong Kong Stock Exchange regulations[117] Compliance and Governance - The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and are presented in Renminbi (RMB) rounded to the nearest thousand[11] - The Audit Committee, consisting of three independent non-executive directors, has reviewed and approved the financial performance for the year ending December 31, 2024[119] - The company has confirmed compliance with the Standards of Conduct for Directors in Securities Transactions as of December 31, 2024[121] Operational Highlights - The group has established 110 service concession projects, including 104 wastewater treatment plants, 1 water supply plant, 3 sludge treatment plants, and 2 recycled water treatment plants as of December 31, 2024[77] - The operational capacity for wastewater treatment is 4,089,500 tons per day, with a total processing capacity of 4,325,550 tons per day including water supply and recycled water[78] - The group has 100 operational wastewater treatment projects, 2 reclaimed water treatment projects, and 3 sludge treatment projects as of December 31, 2024[81]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the first half of 2024, representing a 25% growth compared to the same period last year[6]. - For the six months ended June 30, 2024, revenue increased by approximately 2.0% to RMB1,115.5 million, primarily driven by new and expanded wastewater treatment facilities[7]. - Profit attributable to owners of the parent increased significantly by 32.8% over the corresponding period last year, amounting to RMB108.6 million[7]. - Profit before tax increased to RMB 153,297,000, representing a 16.7% growth compared to RMB 131,328,000 in 2023[89]. - The profit for the period ended June 30, 2024, was RMB 108,597,000, compared to RMB 81,801,000 for the same period in 2023, indicating a year-over-year increase of approximately 32.7%[97]. Operational Highlights - User data showed an increase in active users, reaching 1.2 million, which is a 15% increase year-over-year[6]. - The actual wastewater treatment volume for the Current Period reached 624.1 million tonnes, representing an increase of approximately 2.6% compared to the same period last year, with a utilization rate of 84%[7]. - The Group's operational treatment capacity reached over 4.36 million tons per day, with 4,265,000 tons for wastewater treatment and 30,000 tons for water distribution[14]. - The Group's wastewater treatment services in Shandong processed 1,270,000 tons, while Henan processed 1,060,000 tons during the six months ended June 30, 2024[16]. Market Expansion and Strategy - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20% driven by new product launches and market expansion strategies[6]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[6]. - A strategic acquisition of a local competitor is expected to enhance operational capabilities and increase market penetration by 15%[6]. - The Group plans to actively revitalize existing assets through the REITs mechanism and enhance profitability through upgrades and expansion of wastewater treatment projects[9]. Financial Management and Cost Control - The gross profit margin improved to 40%, up from 35% in the previous year, indicating better cost management and pricing strategies[6]. - The company aims to reduce operational costs by 10% through efficiency improvements and technology integration[6]. - The average interest rate for the Current Period was 5.53%, a decrease of 0.53 percentage points over the same period last year, resulting in a reduction of approximately 6.3% in financing costs to RMB274.2 million[7]. - The Group will continue to deepen energy-saving and consumption-reduction measures while strictly controlling operational costs to improve operational efficiency and shareholder returns[9]. Sustainability and Future Commitments - Future guidance includes a commitment to sustainability, with plans to invest 20% of profits into green initiatives[6]. - The Group expects steady growth in the domestic environmental protection industry, with anticipated normalization of price adjustments to reasonably offset rising costs[9]. - The Group's future strategy includes continuous investment in water environment facilities to improve rural living conditions[12]. Shareholder Information and Governance - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2024, which was also nil for the same period in 2023[53]. - The Group has adopted the Corporate Governance Code and has complied with its provisions without deviation as of June 30, 2024[53]. - The interests of Directors and the chief executive in shares and debentures were disclosed in accordance with the Securities and Futures Ordinance[55]. - The Company continues to monitor and report on the interests of substantial shareholders as part of its governance practices[60]. Share Options and Employee Compensation - The Company adopted a Share Option Scheme on June 14, 2014, with a term of 10 years[68]. - As of June 30, 2024, 16,000,000 share options were granted to various directors at an exercise price of HK$0.3 per share[70]. - The estimated fair value of share options granted during the six months ended June 30, 2024, was HK$0.045 per share option[76]. - Employees receive remuneration in the form of share-based payments, which are measured at fair value at the grant date[76]. Financial Position and Assets - Total assets as of June 30, 2024, amounted to RMB 19,212,622, compared to RMB 18,401,530 as of December 31, 2023, reflecting an increase of approximately 4.4%[127]. - Non-current assets totaled RMB 12,512,185,000 as of June 30, 2024, compared to RMB 12,615,934,000 at the end of 2023[93]. - The total daily treatment capacity reached 4,074,500 tonnes for wastewater treatment, 65,000 tonnes for reclaimed water, and 550 tonnes for sludge treatment, with an annualized utilization rate of approximately 84%[18]. Debt and Financing - The total amount of pledged assets for the Group's borrowings was RMB 11,360.5 million, which includes financial receivables and service concession intangible assets[48]. - The Group's total interest-bearing debts increased slightly to RMB 9,921.3 million as of June 30, 2024, compared to RMB 9,917.0 million on December 31, 2023, with 65.2% classified as long-term[47]. - The Group's borrowings amounted to RMB3,803,761,000 as of June 30, 2024, a slight decrease from RMB3,827,272,000 on December 31, 2023[181]. Taxation and Compliance - Income tax expense for the six months ended June 30, 2024, was RMB47.2 million, with an effective tax rate of approximately 31%, a decrease of 4 percentage points from 35% in the previous period[31]. - The group was not subject to any income tax in the Cayman Islands and British Virgin Islands, and no provision for Hong Kong profits tax was made as there were no assessable profits derived from Hong Kong for the six months ended June 30, 2024[156].

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 1,115.5 million, an increase of 2.0% compared to the same period last year, primarily due to increased operating service revenue[1] - Gross profit was RMB 544.5 million, slightly down from RMB 544.8 million in the same period last year, with a gross profit margin decreasing by 1 percentage point to 48.8% due to increased operating costs[1] - Profit attributable to equity holders of the parent company was RMB 108.6 million, a significant increase of 32.8% compared to RMB 81.8 million in the same period last year, mainly due to reduced financing costs and administrative expenses[1] - Basic and diluted earnings per share attributable to ordinary equity holders of the parent company were RMB 5.08, a substantial increase of 33.0% from RMB 3.82 in the same period last year[1] - Total revenue for the first half of 2024 reached RMB 1,115,511,000, an increase from RMB 1,093,082,000 in the same period of 2023, representing a growth of approximately 2.05%[13] - The operating profit for the first half of 2024 was RMB 153,297,000, compared to RMB 131,328,000 in the first half of 2023, indicating a year-over-year increase of about 16.7%[15] - The pre-tax profit for the six months ended June 30, 2024, was RMB 108,597,000, compared to RMB 81,801,000 in 2023, reflecting an increase of approximately 32.7%[24] - The income tax expense for the six months ended June 30, 2024, was RMB 47,198,000, slightly up from RMB 46,610,000 in 2023, indicating an increase of about 1.3%[23] - The company reported a total operating cost of RMB 571,040,000 for the six months ended June 30, 2024, compared to RMB 548,257,000 in 2023, which is an increase of approximately 4.1%[22] Cash Flow and Liquidity - Net cash inflow from operating activities reached RMB 160.9 million, an increase from RMB 150.9 million in the same period last year, marking the highest mid-year level since 2017[1] - Operating cash flow recorded a net inflow of RMB 160.9 million, the highest mid-year level since 2017[32] - The group reported a net cash inflow from investment activities of RMB 178.8 million[57] - The net cash inflow from operating activities was RMB 160.9 million, while the net cash outflow from financing activities was RMB 287.6 million[57] - The increase in cash and cash equivalents was primarily due to higher cash inflows from operating and investment activities[56] Assets and Liabilities - As of June 30, 2024, the total value of non-current assets is CNY 12,512,185, a decrease from CNY 12,615,934 as of December 31, 2023, representing a decline of approximately 0.82%[4] - Current assets total CNY 6,700,437, an increase from CNY 6,611,428 as of December 31, 2023, reflecting a growth of about 1.35%[5] - The total liabilities amount to CNY 13,587,384, which is an increase from CNY 13,455,913 as of December 31, 2023, indicating a rise of approximately 0.98%[5] - The total equity attributable to the parent company is CNY 5,831,204, compared to CNY 5,711,789 as of December 31, 2023, marking an increase of about 2.10%[5] - The total assets as of June 30, 2024, amounted to RMB 19,212,622,000, up from RMB 19,227,362,000 as of December 31, 2023, showing a slight decrease of 0.08%[14] - The total liabilities for the company were RMB 13,301,916,000 as of June 30, 2024, compared to RMB 13,377,330,000 at the end of 2023, reflecting a reduction of approximately 0.56%[16] Segment Performance - The group operates through three main business segments: Urban Water Services, Water Environment Integrated Management, and Rural Wastewater Management, each representing a strategic business unit[11] - The company reported a segment profit of RMB 279,804,000 for the first half of 2024, compared to RMB 255,044,000 in the same period of 2023, marking an increase of approximately 9.7%[15] - The total revenue from external customers in the urban water segment was RMB 1,077,593,000 for the first half of 2024, compared to RMB 1,036,083,000 in the same period of 2023, reflecting an increase of approximately 4%[15] - The total operating revenue for urban water services for the six-month period was RMB 621.7 million, a 4% increase from RMB 599.3 million in the same period last year, primarily due to increased wastewater treatment capacity and operational projects[39] Governance and Compliance - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The audit committee reviewed the group's unaudited interim results for the six months ended June 30, 2024[69] - The company has adhered to corporate governance principles and standards, enhancing budget, risk, performance, and accountability controls[67] - The company emphasizes transparency by making financial documents accessible to the public[72] - The announcement reflects the company's ongoing efforts to engage with investors and maintain corporate governance standards[72] Future Outlook - The group plans to enhance profitability through further expansion of the urban water treatment industry chain[36] - The group is committed to improving operational efficiency while controlling operational costs to contribute to the national ecological environment quality[34] - The group will actively seek diverse solutions to strengthen cash flow from operations, particularly focusing on accounts receivable[34] - The group is optimistic about the future profitability and aims to enhance its profitability and efficiency further[35]

Corporate Governance and Compliance - The company has established a system for managing inside information and disclosure, ensuring compliance with the "Guidelines on Disclosure of Inside Information" issued by the Securities and Futures Commission[6] - The company amended its Memorandum and Articles of Association to permit hybrid and electronic general meetings, aligning with relevant legal and Listing Rules requirements[24] - The company's Audit Committee confirmed that non-audit services, including tax advisory and environmental, social, and governance advisory services, did not affect the independence of the external auditor[8][9] - The company has implemented anti-corruption and anti-bribery policies, providing training to employees and Directors to enhance integrity and awareness of malpractice[37] - The company's Internal Audit and Inspection Department accepts reports of suspected misconduct and violations from employees and stakeholders, with no serious fraud or misconduct incidents reported during the year[37] - The Board is responsible for determining the overall objective, risk appetites, and risk tolerance for corporate risk management, and approves risk management strategies and major risk mitigation solutions[40] - The company has complied with all applicable provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules of the Stock Exchange of Hong Kong Limited[194] - The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the required standards during the year ended 31 December 2023[196] - The Board is responsible for leadership and control of the company, overseeing the Group's businesses, strategic decisions, and performance, with day-to-day management delegated to the CEO and senior management[196] - The Board composition as of 31 December 2023 includes Executive Directors Zhao Juanxian, Li Zhong, Liu Yujie, and Duan Jerry Linnan, and Independent Non-Executive Directors Chau Kam Wing, Chang Qing, and Peng Yongzhen[196] - The Board complied with the Listing Rules requirement to appoint at least three independent non-executive Directors, with at least one possessing appropriate professional qualifications or accounting expertise[196] - Directors are required to disclose their commitments to the company, including the number and nature of offices held in public companies or organizations[198] - The roles and duties of the Chairman and the Chief Executive Officer are clearly defined and carried out by different individuals to preserve independence and balance of views[198] Risk Management - The company has established a comprehensive risk management process, ensuring timely, accurate, and complete information sharing across departments and business units, laying the foundation for supervision and enhancement of risk management[35] - The senior management focuses on major risks, events, and decisions, supervising the collection of firsthand information, risk assessment, management strategies, and implementation of risk management solutions[35] - The internal audit department conducts annual reviews of risk management implementation across departments and business units, evaluating strategies and proposing adjustments or improvements[35] - Key risks identified in 2023 include government breach of agreement, delayed collection, accounts receivable management, litigation disputes, and liability for breach of agreement[35] - Measures to address government breach risks include establishing a feedback mechanism and actively communicating with local governments to formulate solutions[35] - Delayed collection risks are mitigated by maintaining good communication with the government and making collection efforts[35] - The company's leading risk management and supporting organization is responsible for establishing and amending risk management policies and mechanisms, and formulating annual risk management work plans[42] - The company's risk management organization regularly collects first-hand information regarding risk management, carries out risk assessments, and discusses major risks faced by the company[42] - The company's risk management organization assesses the soundness, reasonability, and effectiveness of the risk management system and reviews the annual comprehensive risk management report[42] - The company's risk management organization accepts reports from employees and cooperating organizations, organizes investigations, and provides handling advice for violations of company and legal regulations[42] - The company's risk management organization assists in carrying out risk management work and formulates internal auditing plans based on risk assessment results[42] - The company has established a comprehensive risk management program led by the Internal Audit and Inspection Department, which includes collecting first-hand information, analyzing and assessing risks, proposing risk management strategies, and supervising the implementation of risk management works[44] Financial Performance and Reporting - The company paid RMB thousands in remuneration to its independent auditor, Ernst & Young, for the year ended 31 December 2023[7][10] - Construction services revenue decreased by RMB 719.5 million (approximately 81%) to RMB 173.6 million, with its share of total revenue dropping from 31% to less than 8%[75] - Total revenue for the year decreased by 23.5% year-on-year to RMB 2,216.4 million[75] - Actual wastewater treatment volume reached 1,265.7 million tonnes, representing a 3.2% increase compared to the previous year[75] - Utilization rate of wastewater treatment plants and reclaimed water plants increased from 82% to 85%[75] - Overall gross profit margin increased by 4.7 percentage points to 48.5% due to a decrease in lower-margin construction services revenue[75] - Gross profit and profit attributable to owners of the parent decreased by 15.2% and 47.1% to RMB 1,076.0 million and RMB 124.8 million, respectively[75] - Capital expenditure for the year was RMB 127.1 million, a 75% decrease year-on-year[75] - Net operating cash inflow was RMB 292.9 million, marking the fifth consecutive year of positive cash flow since 2019[75] - The gearing ratio and current ratio as of December 31, 2023, were 69.6% and 1.15, respectively[75] - The average borrowing interest rate for the year was 5.95%, down 0.01 percentage points from the previous year[75] - The Group had 103 service concession arrangement projects in operation with a treatment capacity of over 4 million tons per day as of 31 December 2023[82] - The Group entered into a total of 112 service concession arrangements, including 106 wastewater treatment plants, 1 water distribution plant, 3 sludge treatment plants, and 2 reclaimed water treatment plants as of 31 December 2023[86] - The Group's operational treatment capacity was 4,024,500 tons per day, with an additional 240,500 tons per day not yet in operation or transferred[88] - Construction revenue for the year ended 31 December 2023 was RMB121.0 million, representing an 84% year-on-year decrease compared to RMB753.0 million in 2022, primarily due to a decrease in the number of projects during the main construction period[93] - Total daily treatment capacity of service concession arrangement plants under construction as of 31 December 2023 was 100,500 tonnes, including 70,500 tonnes for wastewater treatment plants and 30,000 tonnes for water distribution plants[93] - Revenue from Water Environment Comprehensive Remediation projects for the year ended 31 December 2023 was RMB43.4 million, a 62% decrease compared to RMB114.4 million in 2022, mainly due to the completion of most existing EPC projects[95] - Revenue from Rural Water Improvement projects for the year ended 31 December 2023 was RMB49.9 million, a 16% year-on-year decrease compared to RMB59.1 million in 2022, primarily due to a net impact of decreased construction revenue and increased operation revenue from project commencement[95] - Total revenue for the year ended 31 December 2023 was RMB2,216.4 million, a decrease of RMB680.2 million compared to RMB2,896.6 million in 2022, mainly due to a RMB719.6 million decrease in construction revenue[97] - Operation revenue increased by RMB28.5 million in 2023, primarily due to the commencement of new BOT and upgrade projects in Urban Water Treatment[97] - Financial income from service concession arrangements increased by RMB10.9 million in 2023, mainly due to an increase in financial assets[97] - Cost of sales for the year ended 31 December 2023 was RMB1,140.4 million, a 30% decrease compared to RMB1,627.9 million in 2022, driven by a RMB551.5 million decrease in construction costs[98] - Operation costs increased by RMB64.0 million in 2023, mainly due to increased operation numbers of upgrade projects and higher costs of wastewater treatment chemicals[98] - The Group recorded other income and gains of RMB59.8 million for the year ended 31 December 2023, an increase of approximately 11% compared to RMB53.9 million in the previous corresponding period[100] - Administrative expenses for the year ended 31 December 2023 were RMB283.1 million, an increase of approximately 3% compared to RMB274.1 million in the previous corresponding period, mainly due to higher professional fees[100] - Other expenses for the year ended 31 December 2023 were RMB43.4 million, a decrease of approximately 59% compared to RMB105.9 million in the previous corresponding period, primarily due to reduced foreign exchange losses, non-operating expenses, and impairment losses[100] - Receivables for service concession arrangements as of 31 December 2023 were RMB11,592,250 thousand, with a current portion of RMB2,079,291 thousand and a non-current portion of RMB9,512,959 thousand[102] - Contract assets as of 31 December 2023 were RMB1,255.0 million, a decrease of RMB451.9 million compared to RMB1,706.9 million as of 31 December 2022, mainly due to reclassification to financial receivables and increased construction from BOT, PPP, and EPC projects[104] - The Group's wastewater treatment capacity as of 31 December 2023 was 4,265,000 tonnes/day, with an actual treatment volume of 1,261.1 million tonnes for the year[109] - The Group's total water distribution and treatment capacity as of 31 December 2023 was 4,360,000 tonnes/day, with an actual treatment volume of 1,265.7 million tonnes for the year[109] - The Group's sludge treatment capacity as of 31 December 2023 was 550 tonnes/day, contributing to a total capacity of 4,360,550 tonnes/day[109] - The Group had 98 wastewater treatment projects, 2 reclaimed water treatment projects, and 3 sludge treatment projects in operation in Mainland China as of 31 December 2023, with total daily treatment capacities of 4,024,500 tonnes, 65,000 tonnes, and 550 tonnes, respectively[110] - The annualized utilization rate for wastewater and reclaimed water treatment plants was approximately 85% for the year ended 31 December 2023, up from 82% in 2022[110] - The actual average water treatment tariff for the year ended 31 December 2023 was approximately RMB1.59 per tonne, compared to RMB1.56 per tonne in 2022[110] - The actual aggregate processing volume for the year ended 31 December 2023 was 1,265.7 million tonnes, a 3% increase compared to 1,226.6 million tonnes in 2022[110] - Total operation revenue from Urban Water Treatment services for the year ended 31 December 2023 was RMB1,265.3 million, a 2% increase compared to RMB1,243.3 million in 2022[110] - The Group's revenue for the year ended 31 December 2023 was RMB2,216.4 million, a decrease of RMB680.2 million compared to RMB2,896.6 million in 2022, primarily due to a decrease in construction revenue[115] - The Group's gross profit margin for the year ended 31 December 2023 was approximately 49%, an increase of 5 percentage points from 44% in the previous year[117] - The Group's financing costs for the year ended 31 December 2023 were RMB578.7 million, a 2% increase compared to RMB566.2 million in 2022, mainly due to an increase in average interest-bearing bank and other borrowings[118] - The Group's financial receivables as of 31 December 2023 were RMB11,592.3 million, an increase of RMB385.8 million compared to RMB11,206.5 million in 2022, primarily due to reclassification from contract assets after the completion of water treatment project construction and upgrade cycles[120] - Trade receivables increased to RMB2,808.5 million, up by RMB372.1 million, primarily due to a rise in Urban Water Treatment projects receivables by RMB573.4 million and a net decrease in Environment Comprehensive Remediation projects receivables by RMB177.8 million[123] - Prepayments, other receivables, and other assets increased to RMB929.0 million, up by RMB180.9 million, mainly due to receivables from the disposal of an associate increasing by RMB144.9 million and deductible input VAT increasing by RMB29.9 million[123] - Cash and cash equivalents increased to RMB248.4 million, up by RMB51.5 million, primarily due to reduced cash outflows from financing activities[125] - Net cash flows from operating activities in 2023 were RMB292.9 million, compared to RMB368.4 million in 2022[126] - Net cash flows used in financing activities in 2023 were RMB257.1 million, compared to RMB563.0 million in 2022[126] - Interest-bearing debts increased to RMB9,917.0 million, with 64.7% being long-term, and over 71% of bank and other borrowings bearing interest at floating rates[128] - The Group's gearing ratio slightly decreased to 69.6% as of 31 December 2023, compared to 69.7% in the previous year[128] - Capital expenditure for 2023 was RMB127.1 million, significantly lower than the RMB512.7 million in 2022, primarily due to reduced construction and acquisition costs for BOT, TOT, BOO, and PPP projects[128] - Gross profit margin for the year ended 31 December 2023 was approximately 49%, an increase of 5 percentage points compared to 44% in the previous year, primarily due to a decrease in the proportion of construction revenue[141] - Finance costs for the year ended 31 December 2023 amounted to RMB578.7 million, representing a 2% increase from RMB566.2 million in the previous corresponding period, mainly due to an increase in the average balance of interest-bearing bank and other borrowings[142] - The average balance of interest-bearing bank and other borrowings increased by RMB223.6 million, with an average interest rate of 5.95%, slightly lower than the previous corresponding period's rate of 5.96%[142] - The Group did not have any significant contingent liabilities as of 31 December 2023, consistent with the previous year[129] - No significant events took place subsequent to 31 December 2023, as disclosed[130] - The Group's contributions to the defined contribution pension plan are recognized as expenses when incurred, and forfeited contributions cannot be used to reduce existing contribution levels[129][131] - The Group's operations are primarily conducted in China, with transactions mostly denominated and settled in RMB, and as of 31 December 2023, there was no significant foreign currency risk exposure[132] - The Group's share of profits of associates for the year ended December 2023 was RMB4.7 million, a significant increase from RMB2.6 million in the previous year[143] - Share of losses of joint ventures for the year ended 31 December 2023 was RMB0.3 million, a major decrease from RMB3.6 million in the previous year[143] - Income tax expense for the year ended 31 December 2023 was RMB44.7 million for current PRC income tax and RMB59.0 million for deferred expenses, with an effective tax rate of 44%, up 8 percentage points from the previous year[143] - The Group's financial receivables as at 31 December 2023 were RMB11,592.3 million, an increase of RMB385.8 million from the previous year, mainly due to reclassification from contract assets[145] - Contract assets as at 31 December 2023 were RMB1,255.0 million, a decrease of RMB451.9 million from the previous year, mainly due to reclassification to financial receivables and increased construction under BOT, PPP, and EPC contracts[147] - Cash and cash equivalents as at 31 December 2023 were RMB248.4 million, an increase of RMB51.5 million from the previous year, due to decreased cash outflows in financing activities[150] - The Group invested RMB258.4 million in BOT/TOT and PPP projects for the year ended 31 December 2023, compared to RMB311.0 million in the previous year[151] - Trade and bills payables as at 31 December 2023 were RMB2,013.5 million, a decrease of RMB246.7 million from the previous year, in line with construction work progress and settlements[152] - Other payables and accruals as at 31 December 2023 were RMB207.9 million, a decrease of RMB80.2 million from the previous year, mainly due to reduced amounts to an associate and salary payables[152] - The Group had 2,296 employees as at 31 December 2023, with remuneration packages determined by market conditions and individual performance[154] - No significant contingent liabilities as of December 31, 2023 (December 31, 2022: None)[157] - No significant events occurred after December 31, 2023, except as disclosed[158] Environmental and Social Responsibility - The company operates in the environmental sector, focusing on wastewater treatment and water resources, with policies such as the "Implementation Plan for the Construction and Management of Domestic Sewage and Waste Treatment Facilities in Towns" and the "National Water Network Construction Plan Outline" supporting its industry[59] - The company's annual report for the year ended December 31, 2023, highlights its commitment to improving environmental infrastructure and supporting private enterprise development, with policies aimed at enhancing the business environment and reducing transaction costs[59] - The company's male to female ratio in the workforce, including senior management, is approximately 2:1, maintaining a healthy and reasonable gender diversity[37] - The company has been certified as a Class A General Construction Contractor of Municipal and Public Works by the Ministry of Housing and Urban-Rural Development, and holds CAEPI level-1 certifications for industrial wastewater and domestic sewage operation and service capabilities[167] - The company has implemented ISO9001 Quality Management System, ISO14001 Environmental Management System, and ISO45001 Occupational Health and Safety Management System[167] - The company has won the National Important Environmental Protection Practical Technology Demonstration Project Award for several environmental protection projects[167] - The company is the deputy chairman unit of the National Industrial Commercial and Environmental Protection Association and a member of the China Environment Protection

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。 KANGDA INTERNATIONAL ENVIRONMENTAL COMPANY LIMITED 康達國際環保有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6136） 截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 年 度 年 度 業 績 公 告 | --- | --- | |-------|----------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - For the six months ended June 30, 2023, total revenue decreased by approximately 34.2% to RMB 1,093.1 million, primarily due to a decrease in revenue from construction services by RMB 513.6 million (approximately 83.7%) to RMB 100.0 million[9]. - Gross profit and profit attributable to owners of the parent decreased by 24.2% and 59.5% to RMB 544.8 million and RMB 81.8 million, respectively, due to the decline in total revenue[9]. - The total operation revenue for Urban Water Treatment services for the six months ended June 30, 2023, was RMB 599.3 million, representing an 11% decrease compared to RMB 670.1 million for the same period last year[36]. - Construction revenue recognized for the six months ended June 30, 2023, was RMB 67.7 million, a significant year-on-year decrease of approximately 89% from RMB 589.4 million[41]. - Total revenue from Water Environment Comprehensive Remediation projects was RMB 27.7 million, marking a significant increase from RMB 6.6 million in the same period last year[45]. - Revenue from Rural Water Improvement projects was RMB 29.3 million, reflecting an 18% decrease compared to RMB 35.8 million for the same period last year[46]. - The Group recorded total revenue of RMB 1,093.1 million for the six months ended June 30, 2023, a decrease of RMB 568.3 million from RMB 1,661.4 million in the previous corresponding period[50]. - The profit for the period was RMB 84,718, representing a decline of 58% from RMB 202,406 in the previous year[153]. - Total comprehensive income for the period was RMB 88,118, down 63% from RMB 239,806 in the same period last year[155]. Profitability and Margins - The overall gross profit margin for the current period was 49.8%, representing an increase of 6.6 percentage points compared to the same period last year[9]. - The Group's gross profit margin for the six months ended June 30, 2023, was approximately 50%, an increase of 7 percentage points from approximately 43% in the previous corresponding period[52]. - The adjusted profit before tax for the period was RMB 131,328,000, after accounting for unallocated expenses and finance costs[183]. - The urban water treatment segment achieved a segment result of RMB 248,829,000, while the rural water improvement segment reported a loss of RMB 3,818,000[183]. Cash Flow and Financial Position - The net operating cash inflow for the current period was RMB 10.0 million, maintaining a positive balance[10]. - Net cash flows from operating activities for the six months ended June 30, 2023, were RMB 10.0 million, a significant decrease from RMB 140.1 million in the same period of 2022[81]. - The Group's cash inflows from the decrease in pledged deposits were RMB 46.1 million during the reporting period[88]. - The company reported a net cash outflow from financing activities of RMB 54,475,000, contrasting with a net inflow of RMB 60,106,000 in the same period last year[163]. - Cash and cash equivalents decreased to RMB 169,946 from RMB 196,938, a decrease of 13.68%[157]. Operational Efficiency and Strategy - The company plans to focus on increasing the profitability of existing projects and improving operational cash flows by raising wastewater treatment standards and expanding operations[15]. - The company will continue to implement energy-saving and consumption reduction measures to enhance operational efficiency and control operating costs[15]. - The Group aims to enhance profitability and competitiveness by further expanding its Urban Water Treatment chain in the future[31][28]. - The Group plans to focus on improving existing projects' profitability through price adjustments and operational efficiency measures[17]. - The Group's strategy includes accelerating the revitalization of inefficient assets to provide better returns for shareholders[17]. Government Policies and Market Environment - The central government has issued several policy documents to promote the development of the wastewater treatment industry, which is expected to improve the business environment and increase overall profitability[14]. - The Group is optimistic about the overall profit growth in the wastewater treatment industry due to improved business environment policies introduced by the government[16]. Assets and Liabilities - As of June 30, 2023, financial receivables increased to RMB 11,431.8 million from RMB 11,206.5 million, an increase of RMB 225.3 million[70]. - Trade receivables rose to RMB 2,708.8 million as of June 30, 2023, up from RMB 2,436.4 million at the end of 2022, an increase of RMB 272.4 million primarily driven by urban water projects[77][89]. - The Group's total interest-bearing debts increased to RMB 9,775.1 million as of June 30, 2023, compared to RMB 9,521.8 million at the end of 2022, with 68.7% classified as long-term[93]. - The Group's gearing ratio decreased to 69.6% as of June 30, 2023, compared to 70.5% in the corresponding period last year[94]. Shareholding and Corporate Governance - Mr. Zhao Juanxian holds 546,728,004 shares, representing approximately 25.56% of the issued share capital of the company[121]. - China Water Affairs Group Limited and Sharp Profit Investments Limited each hold 953,119,996 shares, accounting for 44.54% of the issued share capital[127]. - The company has disclosed substantial shareholders' interests and short positions as required under the SFO[124]. - The Audit Committee reviewed the unaudited interim results for the six months ended June 30, 2023, ensuring the effectiveness of financial reporting and internal controls[135]. - The Company has adopted a board diversity policy to enhance the effectiveness of the Board by ensuring a balance of skills, experience, and diversity of perspectives[142]. Compliance and Reporting - The interim financial information has been prepared in accordance with International Accounting Standard 34 and complies with the applicable disclosure requirements of the Hong Kong Stock Exchange[166]. - The company continues to focus on board diversity to enhance efficiency and effectiveness in decision-making[146]. - The interim results announcement has been published on the Stock Exchange and the company's website, ensuring transparency for shareholders[150].

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。 KANGDA INTERNATIONAL ENVIRONMENTAL COMPANY LIMITED 康 達 國 際 環 保 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6136） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 摘要 ‧ 收 益 約 為 人 民 幣1,093.1百 萬 元，較 去 年 同 期減 少34.2%，乃 主 要 由 於 建設服務收益減少所致。 ‧ 毛利為人民幣544.8百萬元，較去年同期減少24.2%。由於運營服務收 益佔比增加，毛利率上升至49.8%，而去年同期則為43.2%。 ‧ 母 公 司 擁 有 人 應 佔 溢 利 為 人 民 幣81.8百 萬 元，較 去 年 同 期 減 少 59.5%，乃由於總收益較去年同期減少所致。 ‧ 母公司普通權益持有人應佔每股基本及攤薄盈利為人民幣3.82分， ...

Management Team Experience - Mr. Li Zhong has over 20 years of experience in urban public utilities and infrastructure project management, focusing on water affairs since 2002[2]. - Ms. Liu Yujie has participated in the IPO and underwriting of over 30 companies on the Hong Kong Stock Exchange and led three mergers and acquisitions in Hong Kong and Singapore[3]. - Mr. Duan, Jerry Linnan has been involved in hotel operations and intelligent water businesses since joining China Water in 2011, and became the general manager of a hotel in Nanjing in 2015[7]. - Mr. Chau Kam Wing has over 30 years of experience in auditing, taxation, and financial management, and is currently the finance director of Winox Holdings Limited[10]. Company Focus and Strategy - The company is focused on expanding its operations in urban public utilities and infrastructure, particularly in water management[2]. - The company aims to leverage its expertise in environmental engineering and water treatment technologies for future growth[15]. - The company is committed to enhancing its investor relations and capital market strategies to support future expansions[7]. - The management team emphasizes the importance of sustainable practices in their operations and future projects[15]. - The corporate mission focuses on creating a greener environment, specifically in urban sewage treatment and rural water improvement in Mainland China[18]. Financial Performance - Revenue from construction services decreased by RMB115.3 million (approximately 11%) year-on-year to RMB893.2 million, contributing to a total revenue decline of 0.8% to RMB2,896.6 million[33]. - Profit attributable to equity shareholders decreased to RMB235.7 million, representing a decrease of approximately 43% year-on-year[33]. - Overall gross profit margin decreased by approximately 2 percentage points from 46% to 44%, with gross profit declining by approximately 5% year-on-year to RMB1,268.6 million[33]. - The Group's total revenue for the year ended December 31, 2022, was RMB2,896.6 million, a minor decrease of RMB22.4 million compared to RMB2,919.0 million in the previous year[79]. Operational Metrics - Actual wastewater treatment volume for the year reached 1,226.6 million tonnes, representing a slight decrease of approximately 2.8% year-on-year[33]. - The Group operated 101 service concession projects with an operational treatment capacity exceeding 4 million tons per day as of December 31, 2022[52]. - The actual average water treatment tariff for 2022 was approximately RMB1.56 per tonne, up from RMB1.49 per tonne in 2021[68]. - The annualized utilization rate for wastewater and reclaimed water treatment plants was approximately 82% for 2022, down from 86% in 2021[68]. Capital Expenditure and Financing - Capital expenditure for the year was RMB512.7 million, a decrease of approximately 21% year-on-year[36]. - The Group plans to explore diversified financing channels, including equity and debt financing and domestic real estate investment trusts (REITs)[41]. - The Group's total interest-bearing debts increased to RMB9,521.8 million as of December 31, 2022, compared to RMB9,469.7 million as of December 31, 2021[1]. - The Group's banking facilities totaled RMB57,197.6 million as of December 31, 2022, with RMB49,380.5 million remaining unutilized, primarily restricted for environmental protection infrastructure investments[1]. Corporate Governance - The Group has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring compliance and efficiency in governance practices[19]. - The Audit Committee held three meetings during the year ended December 31, 2022, to discuss risk management and internal controls[134]. - The Board of Directors has confirmed compliance with the Model Code for Securities Transactions, ensuring adherence to required standards during the year ended December 31, 2022[156]. - The Company has established clear roles for the Chairman and Chief Executive Officer to maintain independence and balance in decision-making[161]. Environmental and Social Responsibility - The company aims to enhance its environmental, social, and governance (ESG) objectives, focusing on risks such as climate change and supply chain issues[137]. - The company has received awards for its environmental protection projects, highlighting its commitment to sustainable practices[149]. - The Group is committed to building an environmentally friendly and resource-saving enterprise, focusing on the harmonious development of people, nature, and the environment[151]. - The Group organized a "Public Open Day for Environmental Protection Facilities" to raise public awareness about wastewater treatment capabilities and ecological protection[151]. Employee and Board Diversity - The Group had 2,318 employees as of 31 December 2022, with remuneration packages determined based on market conditions and individual performance[127]. - The Board aims to maintain female representation of at least 10% by 2025, achieving 14.3% in 2022[174]. - The Company has adopted a board diversity policy to enhance effectiveness through a balance of skills and experiences[171]. - Continuous professional development is prioritized, with Directors participating in relevant training courses[176].

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。 KANGDA INTERNATIONAL ENVIRONMENTAL COMPANY LIMITED 康 達 國 際 環 保 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6136） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 年 度 業 績 公 告 摘要 • 收 益 約 為 人 民 幣2,896.6百 萬 元，較 上 年 度 減 少 約0.8%，乃 由 於 建 設 服務收益減少所致。 • 毛 利 為 人 民 幣1,268.6百 萬 元，較 上 年 度 減 少 約5.0%。毛 利 率 約 為 44%，較上年度減少2個百分點，乃由於經營成本普遍增加所致。 • 母 公 司 擁 有 人 應 佔 溢 利 約 為 人 民 幣235.7百 萬 元，較 上 年 度 減 少 約 42.9%。 • 年 內 母 公 司 普 通 權 益 持 有 人 應 佔 每 股 基 本 及 攤 薄 ...