KANGDA INTERNATIONAL ENVIRONMENTAL COMPANY LIMITED 康 達 國 際 環 保 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：6136 2022 INTERIM REPORT 中 期 報 告 ONTENTS Corporate Information 公司資料 Management Discussion and Analysis 管理層討論及分析 Other Information 其他資料 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 中期簡明綜合損益及其他全面收益表 Interim Condensed Consolidated Statement of Financial Position 中期簡明綜合財務狀況表 Interim Condensed Consolidated ...

Financial Performance - Total revenue for the year decreased by approximately 12% to RMB 2,919.0 million due to a decline in revenue from construction services[14] - Gross profit for the year increased slightly by approximately 1% to RMB 1,335.3 million, with an overall gross profit margin improving to 46% from 40% last year[14] - Profit attributable to equity shareholders decreased to RMB 412.8 million, a decrease of approximately 12% compared to 2020[18] - Basic earnings per share for the year was RMB 19.29 cents[18] - The Group's cost of sales for the year was RMB 1,583.7 million, representing a decrease of approximately 21% from RMB 2,006.8 million in the previous period[59] - Other income and gains amounted to RMB 106.6 million, slightly down from RMB 107.2 million in the previous period, primarily including government grants of RMB 60.5 million[63] - Selling and distribution expenses decreased significantly by approximately 56% to RMB 1.1 million from RMB 2.5 million in the previous period[64] - Administrative expenses increased by approximately 13% to RMB 246.0 million from RMB 217.6 million in the previous period, mainly due to increased staff costs[65] - The Group's financing costs slightly increased to RMB 565.7 million, compared to RMB 561.8 million in the previous year, mainly due to an increase in average interest-bearing bank borrowings[74] Operational Efficiency - The actual wastewater treatment volume increased to 1,262.4 million tonnes, representing an increase of approximately 11% compared to 2020[14] - The Group continues to enhance its operational efficiency despite challenges posed by the pandemic[14] - The annualized utilization rate for wastewater and reclaimed water treatment plants in operation was approximately 86% for the year ended December 31, 2021, compared to 83% in 2020[46] - The Group's wastewater treatment facility projects have been completed and commenced commercial operation, significantly enhancing wastewater treatment capacity[14] - The Group had 101 service concession arrangement projects under operation with an operational treatment capacity exceeding 4 million tons per day as of December 31, 2021[26] - The Group operated 96 wastewater treatment projects, 2 reclaimed water treatment projects, and 3 sludge treatment projects, with a total daily treatment capacity of 3,961,500 tonnes, representing an increase from 3,766,500 tonnes in 2020[46] Strategic Focus - The Group aims to contribute to the long-term development of the wastewater treatment industry as part of building a beautiful China[13] - The Group plans to focus on municipal wastewater treatment and enhance energy-saving measures to increase revenue and profit[19] - The Group aims to explore wastewater resource recycling and reclaimed water utilization to support national goals while creating greater value for shareholders[19] - The Group's strategic direction aligns with national initiatives for energy conservation and emission reduction[13] Financial Position - As of December 31, 2021, the Group's net asset value per share was RMB 2.53, an increase of approximately 4% compared to the same period last year[18] - Total interest-bearing debts increased to RMB 9,469.7 million as of December 31, 2021, compared to RMB 9,272.8 million in 2020, with 66.2% classified as long-term[99] - The Group's trade and bills receivables rose to RMB 1,776.6 million, an increase of RMB 249.6 million, primarily due to an increase in Urban Water Treatment projects receivables of approximately RMB 401.1 million[84] - Cash and cash equivalents decreased to RMB 289.9 million, down RMB 140.4 million from RMB 430.3 million at the end of the previous year, attributed to increased cash outflows in investing activities[89] Governance and Management - The Company is committed to maintaining high standards of corporate governance, as evidenced by the composition of its audit and nomination committees[130] - The Board of Directors is responsible for leadership and control of the Company, overseeing business, strategic decisions, and performance[149] - The Company has established a code of conduct and compliance manual applicable to employees and directors[164] - The Board has formalized corporate governance duties, including the development and review of governance policies and practices[163] - The Company has complied with all applicable provisions of the Corporate Governance Code during the year ended 31 December 2021[144] Human Resources - The group employed 2,426 staff members as of December 31, 2021, with compensation packages reviewed annually based on performance[110] - The Remuneration Committee reviewed Directors' fees considering increasing duties and market conditions[200] - The review of management's remuneration proposals was aligned with the Board's corporate goals and objectives[200] Future Outlook - The Group is confident about its future profitability and will enhance the profitability and effectiveness of its operations[29] - The Group plans to optimize loan structure and expand financing channels to lower the average interest rate in the coming year[71] - The Group will continue to optimize its debt structure and develop financing channels to reduce financing costs[20]

g 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 DZ 中期報告 目錄 公司資料 2 管理層討論及分析 4 其他資料 16 獨立審閱報告 22 中期簡明綜合損益及其他全面收益表 23 中期簡明綜合財務狀況表 24 中期簡明綜合權益變動表 26 中期簡明綜合現金流量表 27 中期簡明綜合財務資料附註 29 公司資料 | --- | --- | |-----------------------------|-----------------------------------------| | | | | 董事會 | 註冊辦事處 | | 執行董事 | Cricket Square | | | Hutchins Drive | | 趙雋賢先生(聯席主席) | P.O. Box 2681 | | 李中先生(聯席主席) | Grand Cayman KY1-1111 | | 劉玉杰女士 | Cayman Islands | | 段林楠先生(行政總裁) | 總部及中華人民共 ...

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 年 度 報 告 2020 S a r 目錄 公司資料02 | --- | --- | |-------------------------------------|-------| | | | | 主 席 報 告 書 | | | 管 理 層 討 論 及 分 析 | | | 董 事 及 高 級 管 理 層 | | | 企 業 管 治 報 告 | | | 董 事 會 報 告 | | | 獨 立 核 數 師 報 告 | | | 綜 合 損 益 及 其 他 全 面 收 益 表 | | | 綜 合 財 務 狀 況 表 | | | 綜 合 權 益 變 動 表 | | | 綜 合 現 金 流 量 表 | | | 綜 合 財 務 報 表 附 註 | | | 財 務 概 要 | | | | | 公司資料 | --- | --- | |----------------------|---------------------------- ...

Municipal Water Treatment and Projects - The company reported a focus on municipal wastewater treatment, with 112 service concession projects established, including 105 wastewater treatment plants, 2 water supply plants, 3 sludge treatment plants, and 2 recycled water treatment plants[15]. - The company aims to enhance profitability and operational efficiency through the expansion of its municipal water treatment sector, leveraging existing projects and exploring new opportunities in the water industry chain[9]. - The company is committed to optimizing its management structure and improving operational efficiency while actively seeking opportunities for expansion in the water industry, including sludge disposal and industrial wastewater treatment[9]. - The company is actively involved in various water environment governance projects, including comprehensive basin management and sponge city construction, through existing PPP and EPC contracts[14]. - The group had 89 operational sewage treatment projects and 14 projects under construction as of June 30, 2020[22]. - The group signed 2 PPP projects and 13 EPC projects, focusing on comprehensive water environment governance[28]. Financial Performance - The total operational revenue for urban water services was RMB 487.5 million, representing a growth of approximately 12% compared to RMB 433.7 million in the same period last year[23]. - The total construction revenue for the six-month period was RMB 717.0 million, an increase of about 25% from RMB 574.4 million in the previous year[24]. - The group recorded total revenue of RMB 1,729.8 million, a 22% increase from RMB 1,412.6 million in the same period last year[31]. - The gross profit margin for the six-month period was approximately 37%, down from about 42% in the previous year[33]. - The company reported a net profit for the period of RMB 232,366 thousand, compared to RMB 188,936 thousand in 2019, marking a 23.0% increase[111]. - Basic and diluted earnings per share rose to RMB 10.93, up from RMB 8.98, indicating strong earnings growth[111]. - The company reported a pre-tax profit of RMB 306,711,000 for the six months ended June 30, 2020, compared to RMB 260,923,000 for the same period in 2019, representing an increase of approximately 17.5%[126]. Shareholder and Ownership Structure - As of June 30, 2020, the company has a significant shareholder, China Water Affairs Group, which acquired approximately 29.52% of the company's issued share capital, providing new opportunities for development[13]. - Sharp Profit Investments Limited holds 44.54% of the company's shares, totaling 953,119,996 shares[79]. - Zhao Sizhen holds 25.42% of the company's shares, totaling 543,828,004 shares[79]. - Baring Private Equity Asia V Holding Limited holds 16.08% of the company's shares, totaling 344,129,996 shares[79]. - The company has a significant number of shares held by major shareholders, indicating concentrated ownership[79]. Debt and Financial Health - The company's debt-to-asset ratio was 72.0% as of June 30, 2020, slightly down from 72.5% as of December 31, 2019[59]. - The total interest-bearing bank borrowings and other borrowings amounted to RMB 8,957.4 million as of June 30, 2020, up from RMB 7,632.6 million as of December 31, 2019, with over 56% of these borrowings subject to floating interest rates[58]. - The company's total bonds payable as of June 30, 2020, were RMB 579.7 million, a decrease from RMB 1,476.8 million as of December 31, 2019[58]. - The company's financial receivables amounted to RMB 9,508.0 million, an increase of RMB 350.0 million from RMB 9,158.0 million at the end of the previous year, mainly due to reclassification from contract assets[45]. - The company's total liabilities decreased to RMB 5,371,206 thousand from RMB 6,282,126 thousand, reflecting better financial health[116]. Cash Flow and Liquidity - Cash flow from operating activities for the first half of 2020 was a net outflow of RMB 32,770,000, an improvement from a net outflow of RMB 159,179,000 in the same period of 2019[126]. - The company's cash and cash equivalents increased significantly to RMB 822.2 million from RMB 225.7 million at the end of the previous year, driven by increased cash inflows from financing and investment activities[52]. - The cash flow from financing activities was RMB 289,604,000 for the first half of 2020, compared to RMB 273,681,000 in the same period of 2019[126]. - The cash flow from investing activities for the six months ended June 30, 2020, was RMB 511,684,000, a significant improvement compared to a cash outflow of RMB 123,628,000 in the same period of 2019[128]. Corporate Governance and Management - The company has adopted corporate governance principles and has complied with the corporate governance code as of June 30, 2020[69]. - The company appointed a new company secretary on January 20, 2020, following the resignation of the previous secretary[86]. - The company has established a remuneration committee to review and approve management's compensation schemes[96]. - The nomination committee has adopted a board diversity policy to enhance board efficiency and ensure a balance of skills and experience[97]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2020, totaled RMB 111,396,000, including investments in property, plant, equipment, and intangible assets[153]. - The company incurred RMB 108,281,000 in intangible asset purchases, specifically for franchise rights, up from RMB 88,227,000 in 2019[128]. - The company reported a total capital expenditure of RMB 242,395,000 for the first half of 2020, which includes investments in property, plant, and equipment[167]. Regulatory and Compliance - The company adopted revised International Financial Reporting Standards, which clarified the definition of a business, effective from January 1, 2020[140]. - The interim financial results were prepared in accordance with International Accounting Standard 34 and were reviewed by Ernst & Young[107][109].

Financial Performance - Total revenue decreased by approximately 7% to RMB 2,815.2 million due to a reduction in construction service income[13] - Actual sewage treatment volume increased by 2% to 1,027.5 million tons, contributing to an increase in operational service revenue from RMB 819.7 million to RMB 894.0 million[13] - Gross profit rose by approximately 6% to RMB 1,162.6 million compared to RMB 1,093.2 million in the previous year[13] - Profit attributable to equity shareholders increased by approximately 24% to RMB 376.9 million, with basic earnings per share at RMB 0.1854[13] - Net asset value per share increased by approximately 7% to RMB 2.26 as of December 31, 2019[13] - The total operating revenue for urban water services reached RMB 894.0 million, representing a growth of approximately 9% compared to RMB 819.7 million in the previous year[36] - The total revenue from water environment comprehensive governance projects was RMB 203.9 million, a year-on-year decrease of about 55% from RMB 457.3 million[38] - The group had total revenue from rural sewage treatment projects of RMB 74.7 million, a year-on-year decrease of approximately 26% from RMB 101.6 million[40] - The gross profit margin increased to approximately 41%, up 5 percentage points from about 36% in the previous year[43] - Other income and gains amounted to RMB 182.0 million, a decrease of approximately 17% from RMB 218.5 million in the previous year[47] Operational Highlights - The company plans to focus on municipal sewage treatment and explore opportunities for upgrading and expansion, including increasing water prices and sewage treatment volume[14] - The company will also explore extended industry chains such as reclaimed water reuse and urban drainage network operation and maintenance[14] - The daily sewage treatment capacity of operational projects was 3,461,500 tons, an increase from 3,116,500 tons in the previous year, while the actual total treatment volume for the year was 1,027.5 million tons, a slight increase of 2% year-on-year[32] - The group confirmed construction revenue of RMB 1,040.4 million for 28 projects, a decrease of approximately 5% from RMB 1,098.9 million in the previous year, mainly due to a slight reduction in the number of projects under construction[37] - The average water treatment fee was approximately RMB 1.47 per ton, compared to RMB 1.39 per ton in the previous year[32] - The group aims to focus on urban water services to obtain stable cash flow and seeks higher quality market opportunities through new project investments[22] - The group has established 86 operational sewage treatment projects, 1 recycled water treatment project, and 3 sludge treatment projects in mainland China as of December 31, 2019[32] - The group plans to continue expanding its urban water treatment industry chain to enhance profitability and competitiveness[26] Cost Management - Cost control measures led to a significant reduction in selling and distribution expenses and administrative expenses, down 65% and 14% to RMB 5.0 million and RMB 243.8 million respectively[13] - Financing costs increased to RMB 557.5 million, a rise of approximately 12% from RMB 498.6 million in the previous year[51] - Sales and distribution expenses were RMB 5.0 million, a significant decrease of approximately 65% from RMB 14.2 million in the previous year[48] - Administrative expenses were RMB 243.8 million, a decrease of approximately 14% from RMB 284.5 million in the previous year[49] Shareholder and Investment Activities - The acquisition of approximately 29.52% of the company's issued share capital by China Water Affairs Group Limited positioned it as the largest single shareholder, providing new opportunities for development[13] - The group has become the single largest shareholder following the acquisition of approximately 29.52% of the issued share capital by its wholly-owned subsidiary[21] Cash Flow and Financial Position - The net cash flow from operating activities for the year ended December 31, 2019, was RMB 115.0 million, compared to a cash outflow of RMB 126.7 million in 2018[68] - As of December 31, 2019, cash and cash equivalents were RMB 225.7 million, a decrease of RMB 750.5 million from RMB 976.2 million in 2018, primarily due to increased cash outflows from financing activities[65] - The company's total interest-bearing bank loans and other borrowings as of December 31, 2019, amounted to RMB 7,632.6 million, an increase from RMB 7,096.0 million in 2018[75] - The total amount of corporate bonds as of December 31, 2019, was RMB 1,476.8 million, down from RMB 2,140.5 million in 2018[76] - The company's debt-to-asset ratio was 70% as of December 31, 2019, unchanged from 70% in 2018[76] Management and Governance - The company has a strong management team with over 25 years of experience in the environmental protection and wastewater treatment industry[89] - The management team includes individuals with extensive experience in capital markets, business promotion, and corporate management, enhancing the company's strategic capabilities[93] - The company has a focus on risk control and investor relations, led by experienced executives[99] - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, responsible for managing and operating the group's business[87] - The company has established a national engineering laboratory for urban sewage treatment and resource utilization technology[114] - The company has adhered to the corporate governance code and has made efforts to improve financial risk control, project investment decision-making, and information disclosure[129] Risk Management - The company has a comprehensive internal control and risk management system in place, reviewed by the audit committee[169] - The board is responsible for the overall risk management and internal control systems to protect the interests of the company and its shareholders[178] - The audit committee continuously supervises and reviews the effectiveness of the risk management and internal control systems, which are deemed sufficient and effective[182] - The company allocates resources to the internal control and risk management systems based on COSO standards to ensure reasonable assurance against significant misstatements or losses[178] Employee and Organizational Structure - The group employed 2,313 employees as of December 31, 2019, with compensation packages generally determined by market conditions and individual performance[81] - The group has established a comprehensive organizational structure to manage the risks it faces[183]

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 o OB 0 0 . 19 c c 6 C 0 中期報告 目錄 | --- | --- | |----------------------------------|-------| | | | | 管理層討論及分析 | | | 其他資料 | | | 獨立審閱報告 | | | 中期簡明綜合損益及其他全面收益表 | | | 中期簡明綜合財務狀況表 | | | 中期簡明綜合權益變動表 | | | 中期簡明綜合現金流量表 | | | 中期簡明綜合財務資料附註 | | | | | 公司資料 | --- | --- | |----------------------------------------------------------------------------------------------|------------------------------------------------------------- ...

lg 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 0 P e 2018 年度報告 目錄 | --- | --- | |-------------------------------------|-------| | 主 席 報 告 書 | | | 管 理 層 討 論 及 分 析 | | | 董 事 及 高 級 管 理 層 | | | 企 業 管 治 報 告 | | | 董 事 報 告 | | | 獨 立 核 數 師 報 告 | | | 綜 合 損 益 及 其 他 全 面 收 益 表 | | | 綜 合 財 務 狀 況 表 | | | 綜 合 權 益 變 動 表 | | | 綜 合 現 金 流 量 表 | | | 綜 合 財 務 報 表 附 註 | | | 財 務 概 要 | | | | | 公司資料 | --- | --- | |----------------------------------------------------|------------- ...