[Executive Summary](index=1&type=section&id=Executive%20Summary) [Summary of Interim Results Announcement](index=1&type=section&id=Summary%20of%20Interim%20Results%20Announcement) Kangda International Environmental Protection Co., Ltd. announced its unaudited interim results for the six months ended June 30, 2025, with revenue up 4.6%, gross profit margin at 50.3%, and record operating cash flow, despite a 4.7% decline in net profit attributable to owners due to disposal losses and impairment, with no interim dividend recommended Key Financial Highlights | Metric | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,166.5 | 1,115.5 | +4.6% | | Gross Profit | 587.3 | 544.5 | +7.9% | | Gross Profit Margin | 50.3% | 48.8% | +1.5 percentage points | | Finance Costs | 232.7 | 274.2 | -15.1% | | Profit Attributable to Owners of the Parent | 103.4 | 108.6 | -4.7% | | Basic Earnings Per Share | 4.83 cents | 5.08 cents | -4.9% | | Net Cash Inflow from Operating Activities | 394.2 | 160.9 | +145.0% | - Revenue growth was primarily driven by an increase in construction service revenue[4](index=4&type=chunk) - The increase in gross profit margin was mainly attributable to effective cost-saving measures[4](index=4&type=chunk) - The decrease in finance costs was primarily due to lower benchmark interest rates and a reduction in the average loan balance[4](index=4&type=chunk) - The decline in net profit attributable to owners was mainly impacted by a one-off loss and impairment of approximately **RMB 67.5 million** from the disposal of subsidiaries[4](index=4&type=chunk) - Net cash inflow from operating activities reached a record interim high since the Group's listing in 2014[4](index=4&type=chunk) - The Board does not recommend an interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue increased by **4.6%** to **RMB 1,166.5 million**, gross profit grew by **7.9%** to **RMB 587.3 million**, and gross profit margin improved to **50.3%**, while net profit attributable to owners decreased by **4.7%** to **RMB 103.4 million** due to disposal losses and impairment, despite a **15.1%** reduction in finance costs Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric (RMB thousand) | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 1,166,493 | 1,115,511 | | Cost of sales | (579,227) | (571,040) | | Gross profit | 587,266 | 544,471 | | Other income and gains | 38,097 | 38,387 | | Selling and distribution expenses | (693) | (476) | | Administrative expenses | (121,716) | (132,844) | | Other expenses | (97,033) | (20,440) | | Finance costs | (232,687) | (274,221) | | Profit before tax | 169,989 | 153,297 | | Income tax expense | (62,594) | (47,198) | | Profit for the period | 107,395 | 106,099 | | Profit attributable to owners of the parent | 103,441 | 108,597 | | Non-controlling interests | 3,954 | (2,498) | | Basic earnings per share (RMB cents) | 4.83 | 5.08 | | Diluted earnings per share (RMB cents) | 4.81 | 5.08 | - Total other comprehensive income for the period was **RMB 111,645 thousand**, primarily comprising fair value changes of equity investments designated at fair value through other comprehensive income[7](index=7&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased, with total non-current assets reaching **RMB 12,139.7 million** and total current assets reaching **RMB 7,014.3 million**, while total current and non-current liabilities slightly reduced, leading to an increase in net assets to **RMB 6,130.2 million**, reflecting a sound financial position Interim Condensed Consolidated Statement of Financial Position | Metric (RMB thousand) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 12,139,651 | 11,909,214 | | Total current assets | 7,014,275 | 7,145,789 | | **LIABILITIES** | | | | Total current liabilities | 5,164,337 | 5,302,629 | | Total non-current liabilities | 7,760,504 | 7,831,452 | | **EQUITY** | | | | Net assets | 6,130,162 | 6,019,845 | | Total equity | 6,130,162 | 6,019,845 | - Financial receivables (non-current portion) increased from **RMB 9,631,996 thousand** as of December 31, 2024, to **RMB 9,688,655 thousand** as of June 30, 2025[9](index=9&type=chunk) - Contract assets (non-current portion) increased from **RMB 242,455 thousand** as of December 31, 2024, to **RMB 492,730 thousand** as of June 30, 2025[9](index=9&type=chunk) - Interest-bearing bank and other borrowings (current portion) increased from **RMB 2,961,204 thousand** as of December 31, 2024, to **RMB 3,057,445 thousand** as of June 30, 2025[10](index=10&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Company and Group Information](index=6&type=section&id=1.%20Company%20and%20Group%20Information) Kangda International Environmental Protection Co., Ltd. was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange in 2014, primarily engaging in the design, construction, operation, and maintenance of various water and wastewater treatment facilities and other municipal infrastructure in mainland China - The company was incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange on July 4, 2014[11](index=11&type=chunk) - Its principal activities include the design, construction, operation, and maintenance of wastewater treatment plants, reclaimed water treatment plants, water supply plants, sludge treatment plants, and other municipal infrastructure[12](index=12&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20the%20Group's%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the Hong Kong Stock Exchange Listing Rules, presented under the historical cost convention, except for equity investments designated at fair value through other comprehensive income, with no significant impact from newly adopted revised IFRS this period - The financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the Hong Kong Stock Exchange Listing Rules[13](index=13&type=chunk) - The financial information is prepared on a historical cost basis, presented in RMB, with all values rounded to the nearest thousand[14](index=14&type=chunk) - Amendments to IAS 21 'Lack of Exchangeability' had no impact on the Group's interim condensed consolidated financial information, as both the Group's transaction and functional currencies are exchangeable[16](index=16&type=chunk) [Operating Segment Information](index=8&type=section&id=3.%20Operating%20Segment%20Information) The Group's operating segments include urban water services, integrated water environment management, and rural wastewater treatment, with urban water services being the primary revenue source and contributor to segment results, while integrated water environment management revenue grew and rural wastewater treatment revenue declined, and management allocates resources and assesses performance based on each segment's results - The Group's operating segments include urban water services, integrated water environment management, and rural wastewater treatment[19](index=19&type=chunk) Segment Revenue for the Six Months Ended June 30, 2025 (RMB thousand) | Segment | Revenue | | :--- | :--- | | Urban Water Services | 1,136,702 | | Integrated Water Environment Management | 15,749 | | Rural Wastewater Treatment | 14,042 | | **Total** | **1,166,493** | Segment Results for the Six Months Ended June 30, 2025 (RMB thousand) | Segment | Results | | :--- | :--- | | Urban Water Services | 275,909 | | Integrated Water Environment Management | 13,078 | | Rural Wastewater Treatment | (6,440) | | **Total** | **282,547** | - The urban water services segment's total assets amounted to **RMB 16,664,933 thousand**, and total liabilities amounted to **RMB 12,160,792 thousand**[21](index=21&type=chunk) [Revenue](index=13&type=section&id=4.%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was **RMB 1,166.5 million**, primarily comprising operating service revenue and construction service revenue, with construction service revenue significantly increasing while financial income from service concession arrangements slightly decreased Revenue by Category (RMB thousand) | Revenue Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating service revenue | 664,516 | 642,667 | | Construction service revenue | 143,189 | 100,177 | | Financial income from service concession arrangements | 358,788 | 372,667 | | **Total** | **1,166,493** | **1,115,511** | - Construction service revenue increased by **43.0%** year-on-year, operating service revenue increased by **3.4%** year-on-year, and financial income from service concession arrangements decreased by **3.7%** year-on-year[24](index=24&type=chunk) - All revenue is recognized over time and generated entirely within mainland China[24](index=24&type=chunk)[25](index=25&type=chunk) [Other Income and Gains](index=14&type=section&id=5.%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total other income and gains amounted to **RMB 38.1 million**, largely consistent with the prior year, with key components including government grants, interest income from loans to third parties/associates/joint ventures, and other non-operating income Other Income and Gains (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Government grants | 27,456 | 7,271 | | Interest income from loans to third parties | 5,385 | 8,704 | | Interest income from loans to joint ventures and associates | 988 | 985 | | Bank interest income | 462 | 1,137 | | Rental income less depreciation of investment properties | 290 | 267 | | Investment income | – | 1,432 | | Others | 3,542 | 18,565 | | **Total** | **38,097** | **38,387** | - Government grants primarily refer to VAT refunds and environmental protection funds, with some environmental protection funds recognized as deferred income[26](index=26&type=chunk) [Finance Costs](index=14&type=section&id=6.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs were **RMB 232.7 million**, a significant year-on-year decrease of **15.1%**, primarily due to a reduction in interest on interest-bearing bank and other borrowings Finance Costs (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Interest on interest-bearing bank and other borrowings | 232,657 | 274,161 | | Interest on lease liabilities | 30 | 60 | | **Total** | **232,687** | **274,221** | - The decrease in finance costs was mainly due to lower benchmark interest rates and a reduction in the average balance of interest-bearing bank and other borrowings[4](index=4&type=chunk)[62](index=62&type=chunk) [Profit Before Tax](index=15&type=section&id=7.%20Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was **RMB 169.99 million**, derived after deducting operating service costs, construction service costs, depreciation and amortization, losses from disposal of subsidiaries, and various impairment losses Components of Profit Before Tax (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating service costs | 466,385 | 491,910 | | Construction service costs | 112,842 | 79,130 | | Total cost of sales | 579,227 | 571,040 | | Depreciation of property, plant and equipment | 2,428 | 2,665 | | Depreciation of investment properties | 309 | 309 | | Depreciation of right-of-use assets | 205 | 524 | | Amortization of intangible assets—concession rights | 55,459 | 64,178 | | Amortization of other intangible assets | 160 | 173 | | Loss on disposal of subsidiaries | 20,656 | – | | Impairment of financial receivables | 57,053 | 118 | | Impairment of trade receivables | 15,522 | 14,785 | | Exchange differences, net | 268 | 2,358 | - Loss on disposal of subsidiaries was **RMB 20,656 thousand**, which was the main reason for the significant increase in other expenses during the period[28](index=28&type=chunk)[61](index=61&type=chunk) - Impairment of financial receivables significantly increased to **RMB 57,053 thousand**[28](index=28&type=chunk) [Income Tax Expense](index=15&type=section&id=8.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, total income tax expense was **RMB 62.6 million**, with an effective tax rate of approximately **37%**, an increase of **6 percentage points** from the prior year, primarily due to the combined impact of increased influence from lower tax rates enacted by specific provinces or local government authorities, increased impact from non-deductible expenses, and tax losses Income Tax Expense (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current — Mainland China | 30,757 | 20,242 | | Deferred | 31,837 | 26,956 | | **Income tax expense for the period** | **62,594** | **47,198** | - The Group had no assessable profits in Hong Kong, thus no provision for Hong Kong profits tax was made[29](index=29&type=chunk) - The increase in the effective tax rate was mainly due to the combined impact of increased influence from lower tax rates, increased impact from non-deductible expenses, and tax losses[64](index=64&type=chunk) [Earnings Per Share](index=16&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic earnings per share were **RMB 4.83 cents**, and diluted earnings per share were **RMB 4.81 cents**, both lower than the prior year, with calculations based on profit attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding during the period Earnings Per Share (RMB thousand/share) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 103,441 | 108,597 | | Weighted average number of ordinary shares outstanding during the period for basic and diluted EPS calculation | 2,139,735,000 | 2,139,735,000 | | Dilutive effect—share options | – | 8,613,703 | | **Total (diluted shares)** | **2,139,735,000** | **2,148,348,703** | - Both basic and diluted earnings per share decreased due to the decline in net profit attributable to owners of the parent[4](index=4&type=chunk)[5](index=5&type=chunk) [Financial Receivables](index=17&type=section&id=10.%20Financial%20Receivables) As of June 30, 2025, total financial receivables amounted to **RMB 11,681.9 million**, a slight increase from the end of 2024, primarily arising from service concession arrangements, with most pledged as collateral for borrowings Financial Receivables (RMB thousand) | Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Receivables from service concession arrangements | 11,685,716 | 11,677,750 | | Impairment | (3,769) | (3,769) | | **Total** | **11,681,947** | **11,673,981** | | Portion classified as current assets | (1,993,292) | (2,041,985) | | **Non-current portion** | **9,688,655** | **9,631,996** | - Financial receivables primarily consist of amounts due from PRC government authorities, with no collateral or credit enhancement products[35](index=35&type=chunk) - As of June 30, 2025, **RMB 7,907.3 million** of financial receivables were pledged as collateral for borrowings[36](index=36&type=chunk) [Trade Receivables](index=18&type=section&id=11.%20Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to **RMB 3,335.8 million**, an increase from the end of 2024, with the largest portion aged over 12 months, reflecting a longer collection cycle for some amounts Trade Receivables Ageing Analysis (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 3 months | 530,805 | 503,937 | | 4 to 6 months | 428,710 | 380,334 | | 7 to 12 months | 585,175 | 669,303 | | Over 12 months | 1,782,177 | 1,624,998 | | **Total** | **3,335,751** | **3,169,688** | - Trade receivables are non-interest bearing, and credit terms are considered on a case-by-case basis[37](index=37&type=chunk) [Trade Payables and Bills Payable](index=18&type=section&id=12.%20Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, total trade payables and bills payable amounted to **RMB 1,859.7 million**, largely consistent with the end of 2024, with the largest portion aged over 12 months, indicating the presence of long-term payables Trade Payables and Bills Payable Ageing Analysis (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 3 months | 408,704 | 313,775 | | 4 to 6 months | 186,121 | 83,862 | | 7 to 12 months | 229,738 | 257,212 | | Over 12 months | 1,035,167 | 1,194,871 | | **Total** | **1,859,730** | **1,849,720** | | Portion classified as current liabilities | (1,859,541) | (1,849,716) | | **Non-current portion** | **189** | **4** | - Trade payables and bills payable are non-interest bearing, and credit terms are determined on a case-by-case basis[38](index=38&type=chunk) [Dividends](index=18&type=section&id=13.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[39](index=39&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Overview](index=19&type=section&id=Industry%20Overview) In the first half of 2025, Kangda International Environmental Protection adopted a prudent operating approach, enhancing profitability through energy saving, disposal of inefficient projects, and leveraging the downward interest rate cycle, resulting in revenue growth, improved gross profit margin and operating cash flow, despite a decrease in net profit attributable to owners due to one-off losses from project disposals, with the company's financial structure remaining robust and the current ratio reaching a new high in recent years - The company enhanced its profitability through energy saving, disposal of inefficient projects, and reduction of finance costs[40](index=40&type=chunk) - Total revenue increased by **4.6%** to **RMB 1,166.5 million**, and gross profit margin improved by **1.5 percentage points** to **50.3%**[41](index=41&type=chunk) - Finance costs significantly decreased by **15.1%** to **RMB 232.7 million**, with an average borrowing interest rate of **4.85%**, a year-on-year decrease of **0.68 percentage points**[41](index=41&type=chunk)[42](index=42&type=chunk) - Net profit attributable to owners decreased by **4.7%** to **RMB 103.4 million**, primarily impacted by one-off losses and provisions related to project disposals[41](index=41&type=chunk) - Net operating cash inflow was **RMB 394.2 million**, marking a record interim high since the company's listing[42](index=42&type=chunk) - Long-term borrowings accounted for **68.1%** of total borrowings, and the current ratio reached **1.38**, its best level since 2016[42](index=42&type=chunk) [Development Strategies and Future Outlook](index=20&type=section&id=Development%20Strategies%20and%20Future%20Outlook) Supported by national ecological environment policies, the Group will continue to deepen its presence in urban water services, enhancing profitability through upgrading standards, negotiating wastewater treatment price adjustments, vigorously collecting receivables, and seeking local government buybacks of inefficient projects, with future development focusing on urban water services and selective investment in value-added areas across the water industry value chain - National policies support technological innovation in the ecological environment sector and the construction of a Beautiful China, promoting the healthy development of the wastewater treatment industry[43](index=43&type=chunk) - The Group will enhance the profitability of existing projects through upgrading standards, expansion, and seeking reasonable adjustments to wastewater treatment prices[44](index=44&type=chunk) - The Group will vigorously collect receivables and actively seek buybacks of inefficient projects by local governments or government-related enterprises to reduce financial burdens[44](index=44&type=chunk) - Future development will continue to focus on urban water services, which generate stable cash flow, while selectively investing in value-added areas across the upstream and downstream water industry value chain[46](index=46&type=chunk) - As of June 30, 2025, the Group had **104** operating service concession arrangement projects, with an operating treatment capacity exceeding **4 million tons per day**[45](index=45&type=chunk) [Business Segment Performance](index=22&type=section&id=Business%20Segment%20Performance) The Group's business primarily focuses on urban water services, supplemented by integrated water environment management and rural wastewater treatment, with urban water services projects and treatment capacity continuing to grow, leading to increased operating revenue, while integrated water environment management revenue increased and rural wastewater treatment project revenue decreased due to reduced construction work [Urban Water Services](index=22&type=section&id=1.1%20Urban%20Water%20Services) As of June 30, 2025, the Group had entered into **107** service concession arrangement projects, including **101** wastewater treatment plants, with a total operating capacity of **4,059,500 tons/day** and an annual utilization rate of approximately **81%**, resulting in a **5%** year-on-year increase in total operating revenue from urban water services due to more upgraded projects in operation, and a **51%** year-on-year increase in construction revenue driven by new upgrading projects - As of June 30, 2025, the Group had entered into **107** service concession arrangement projects, including **101** wastewater treatment plants, **1** water supply plant, **3** sludge treatment plants, and **2** reclaimed water treatment plants[47](index=47&type=chunk)[48](index=48&type=chunk) Urban Water Services Project Treatment Capacity (tons/day) | Category | In operation | Not yet commenced operation/not yet handed over | Total | | :--- | :--- | :--- | :--- | | Wastewater treatment | 4,059,500 | 80,500 | 4,140,000 | | Water supply | – | 30,000 | 30,000 | | Reclaimed water treatment | 65,000 | – | 65,000 | | Sludge treatment | 550 | – | 550 | | **Total** | **4,125,050** | **110,500** | **4,235,550** | - For the six months ended June 30, 2025, the actual total treatment volume was **595.0 million tons**, a year-on-year decrease of **5%** (2024: **624.1 million tons**)[50](index=50&type=chunk) - The actual average water treatment fee was approximately **RMB 1.63 per ton** (2024: approximately **RMB 1.60 per ton**)[50](index=50&type=chunk) - Total operating revenue from urban water services was **RMB 649.8 million**, an increase of approximately **5%** year-on-year, mainly due to an increase in operating projects with upgraded standards[51](index=51&type=chunk) - Construction revenue was **RMB 133.7 million**, an increase of approximately **51%** year-on-year, primarily due to increased construction work for new upgrading projects[53](index=53&type=chunk) [Integrated Water Environment Management](index=26&type=section&id=1.2%20Integrated%20Water%20Environment%20Management) The Group continued to execute existing integrated water environment management projects, focusing on risk reduction and achieving reasonable profits, with total revenue from this segment reaching **RMB 15.7 million** for the six months ended June 30, 2025, an increase of approximately **14%** year-on-year, primarily benefiting from the execution of newly signed EPC projects - The Group has **5** integrated water environment management projects under construction, primarily located in Jiangxi Province and Henan Province[54](index=54&type=chunk) - Total revenue was **RMB 15.7 million**, an increase of approximately **14%** year-on-year (2024: **RMB 13.8 million**), mainly due to the execution of newly signed EPC projects[54](index=54&type=chunk) [Rural Wastewater Treatment](index=26&type=section&id=1.3%20Rural%20Wastewater%20Treatment) For the six months ended June 30, 2025, the Group had **2** rural wastewater treatment projects in Guangdong Province, with total revenue from this segment at **RMB 14.0 million**, a year-on-year decrease of approximately **42%**, primarily due to reduced construction service revenue, partially offset by increased operating revenue from projects in operation - The Group has **2** rural wastewater treatment projects located in Guangdong Province[55](index=55&type=chunk) - Total revenue was **RMB 14.0 million**, a year-on-year decrease of approximately **42%** (2024: **RMB 24.1 million**)[55](index=55&type=chunk) - The decrease in revenue was mainly due to the net effect of reduced construction service revenue and increased operating revenue from projects in operation[55](index=55&type=chunk) [Financial Performance Analysis](index=27&type=section&id=Financial%20Performance%20Analysis) During the reporting period, the Group achieved growth in both revenue and gross profit, with an improved gross profit margin, reflecting the effectiveness of cost control measures, while finance costs significantly decreased, but net profit was pressured by losses from the disposal of subsidiaries, and income tax expense increased, with the effective tax rate rising [Revenue](index=27&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was **RMB 1,166.5 million**, an increase of approximately **5%** year-on-year, primarily driven by increased construction and operating revenue, partially offset by a decrease in financial income from service concession arrangements - The increase in revenue was mainly due to an increase of **RMB 43.0 million** in construction revenue and **RMB 21.9 million** in operating revenue[56](index=56&type=chunk) - Financial income from service concession arrangements decreased by **RMB 13.9 million**, primarily due to a reduction in financial assets[56](index=56&type=chunk) [Cost of Sales](index=27&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was **RMB 579.2 million**, a slight increase, with the rise in construction costs consistent with the growth in construction revenue, while operating costs decreased due to reduced total treatment volume and energy-saving measures - Cost of sales slightly increased by **RMB 8.2 million**, with construction costs increasing by **RMB 33.7 million** and operating costs decreasing by **RMB 25.5 million**[57](index=57&type=chunk) - The decrease in operating costs was mainly due to a reduction in actual total treatment volume and the implementation of various energy-saving measures[57](index=57&type=chunk) [Gross Profit Margin](index=27&type=section&id=Gross%20Profit%20Margin) For the six months ended June 30, 2025, the Group's gross profit margin was approximately **50%**, an increase of **1 percentage point** from the prior year, primarily benefiting from an improved operating gross profit margin - Gross profit margin increased by **1 percentage point** to **50%**, mainly due to an improvement in operating gross profit margin during the period[58](index=58&type=chunk) [Other Income and Gains](index=28&type=section&id=Other%20Income%20and%20Gains) For the six months ended June 30, 2025, other income and gains amounted to **RMB 38.1 million**, largely consistent with the prior year, primarily including government grants, loan interest income, and other non-operating income - This primarily includes government grants of **RMB 27.5 million**, loan interest income of **RMB 6.4 million**, and other non-operating income of **RMB 3.5 million**[59](index=59&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were **RMB 121.7 million**, a year-on-year decrease of approximately **8%**, primarily due to reduced professional fees - Administrative expenses decreased by approximately **8%**, mainly due to a reduction in professional fees[60](index=60&type=chunk) [Other Expenses](index=28&type=section&id=Other%20Expenses) For the six months ended June 30, 2025, other expenses were **RMB 97.0 million**, a significant year-on-year increase, primarily due to increased losses from the disposal of subsidiaries, non-operating expenses, and impairment losses, partially offset by reduced exchange losses - Other expenses significantly increased, mainly due to increased losses from the disposal of subsidiaries, non-operating expenses, and impairment losses[61](index=61&type=chunk) [Finance Costs](index=28&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs were **RMB 232.7 million**, a year-on-year decrease of approximately **15%**, primarily due to lower benchmark interest rates and a reduction in the average balance of interest-bearing bank and other borrowings - Finance costs decreased by approximately **15%**, mainly due to lower benchmark interest rates and a reduction in the average balance of interest-bearing bank and other borrowings[62](index=62&type=chunk) - The average borrowing interest rate was **4.85%**, a decrease of **0.68 percentage points** from the prior year[62](index=62&type=chunk) [Share of Profits and Losses of Associates](index=29&type=section&id=Share%20of%20Profits%20and%20Losses%20of%20Associates) For the six months ended June 30, 2025, the Group's share of losses of associates was **RMB 0.8 million**, a shift from profit in the prior year, and the Group will implement measures to reduce these losses - Share of losses of associates was **RMB 0.8 million** (2024: profit of **RMB 0.1 million**)[63](index=63&type=chunk) [Income Tax Expense](index=29&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **RMB 62.6 million**, with an effective tax rate of approximately **37%**, an increase of **6 percentage points** from the prior year, primarily influenced by a combination of multiple factors - Income tax expense included current PRC income tax of **RMB 30.8 million** and deferred tax expense of **RMB 31.8 million**[64](index=64&type=chunk) - The increase in the effective tax rate was mainly due to the combined impact of increased influence from lower tax rates enacted by specific provinces or local government authorities, increased impact from non-deductible expenses, and tax losses[64](index=64&type=chunk) [Balance Sheet Item Analysis](index=29&type=section&id=Balance%20Sheet%20Item%20Analysis) The Group's balance sheet items showed structural changes during the reporting period, with financial receivables and trade receivables increasing, while contract assets and prepayments, other receivables, and other assets decreased, and cash and cash equivalents significantly increased, reflecting improved operating cash flow, while trade payables and bills payable slightly increased, and other payables and accrued expenses decreased [Financial Receivables](index=29&type=section&id=Financial%20Receivables) As of June 30, 2025, financial receivables amounted to **RMB 11,681.9 million**, a slight increase, primarily due to the reclassification of contract assets to financial receivables after the completion of water treatment project construction and upgrading cycles, partially offset by transfers to assets held for sale and intangible assets - Financial receivables increased by **RMB 7.9 million** to **RMB 11,681.9 million**[65](index=65&type=chunk) - The increase was mainly due to the reclassification of contract assets to financial receivables[65](index=65&type=chunk) [Contract Assets](index=30&type=section&id=Contract%20Assets) As of June 30, 2025, contract assets amounted to **RMB 320.0 million**, a decrease of **RMB 225.8 million**, primarily due to the reclassification of contract assets to financial receivables and the net effect of increased construction from BOT, PPP, and EPC contract projects Contract Assets (RMB thousand) | Category | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Contract assets | 320,008 | 545,787 | | Portion classified as current | (77,553) | (53,057) | | **Non-current portion** | **242,455** | **492,730** | - Contract assets decreased by **RMB 225.8 million**, mainly due to the reclassification of contract assets to financial receivables[66](index=66&type=chunk) [Trade Receivables](index=30&type=section&id=Trade%20Receivables) As of June 30, 2025, trade receivables amounted to **RMB 3,335.8 million**, an increase of **RMB 166.1 million**, primarily arising from construction and operating services for urban water, integrated water environment management, and rural wastewater treatment projects - Trade receivables increased by **RMB 166.1 million**, mainly due to an increase of approximately **RMB 220.8 million** in receivables from urban water services projects[67](index=67&type=chunk) - Receivables from integrated water environment management projects saw a net increase of approximately **RMB 12.9 million**[67](index=67&type=chunk) [Prepayments, Other Receivables and Other Assets](index=30&type=section&id=Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) As of June 30, 2025, prepayments, other receivables, and other assets amounted to **RMB 775.3 million**, a decrease of **RMB 4.1 million**, primarily due to a reduction in other operating receivables - A decrease of **RMB 4.1 million**, mainly due to a reduction of approximately **RMB 5.1 million** in other operating receivables[68](index=68&type=chunk) [Cash and Cash Equivalents](index=31&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents amounted to **RMB 236.5 million**, an increase of **RMB 59.4 million** from the end of the prior year, primarily attributable to increased cash inflow from operating activities Cash Flow Statement Summary (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | 394,172 | 160,900 | | Net cash flows (used in)/from investing activities | (74,235) | 178,816 | | Net cash flows used in financing activities | (260,488) | (287,630) | | Net increase in cash and cash equivalents | 59,449 | 52,086 | | Cash and cash equivalents at end of period | 236,504 | 300,245 | - The increase in cash and cash equivalents was mainly due to increased cash inflow from operating activities[69](index=69&type=chunk) - If investments in BOT/TOT and PPP businesses were not classified as cash flows used in operating activities, the Group would have generated cash inflows of **RMB 475.4 million** and **RMB 254.6 million**, respectively[70](index=70&type=chunk) [Trade Payables and Bills Payable](index=31&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, trade payables and bills payable amounted to **RMB 1,859.7 million**, a slight increase, consistent with the execution and settlement of construction projects undertaken by the Group - Trade payables and bills payable increased by **RMB 10.0 million** to **RMB 1,859.7 million**[71](index=71&type=chunk) [Other Payables and Accrued Expenses](index=32&type=section&id=Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, other payables and accrued expenses amounted to **RMB 96.3 million**, a decrease of **RMB 45.7 million**, primarily due to reductions in acquisition payables, salaries and welfare payables, and advances for equity and other operating payables - Other payables and accrued expenses decreased by **RMB 45.7 million** to **RMB 96.3 million**[72](index=72&type=chunk) [Liquidity and Financial Resources](index=32&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity and capital requirements are primarily related to project investments, operation and maintenance, working capital, and general corporate purposes, with cash and cash equivalents increasing, total interest-bearing debt decreasing, and the gearing ratio declining as of June 30, 2025, indicating continuous improvement in financial position - Cash and cash equivalents increased by **RMB 59.4 million** to **RMB 236.5 million**[74](index=74&type=chunk) - Total interest-bearing debt decreased to **RMB 9,584.7 million** (December 31, 2024: **RMB 9,854.0 million**)[75](index=75&type=chunk) - **68.1%** of interest-bearing debt was long-term debt, with over **66%** bearing interest at floating rates[75](index=75&type=chunk) - Bank credit facilities amounted to **RMB 9,732.4 million**, of which **RMB 2,230.0 million** remained unutilized[75](index=75&type=chunk) - The gearing ratio decreased to **67.8%** (2024: **69.2%**)[76](index=76&type=chunk) [Pledge of Assets](index=33&type=section&id=Pledge%20of%20the%20Group's%20Assets) As of June 30, 2025, approximately **RMB 9,584.7 million** of the Group's interest-bearing bank and other borrowings were secured by financial receivables, intangible assets, investment properties, trade receivables, equity, contract assets, and pledged deposits totaling **RMB 11,078.9 million** - Interest-bearing borrowings were secured by financial receivables, intangible assets—concession rights, investment properties, trade receivables, equity in an investment company, contract assets, and pledged deposits[77](index=77&type=chunk) - The total value of pledged assets was **RMB 11,078.9 million**[77](index=77&type=chunk) [Employees and Remuneration Policies](index=33&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group employed **2,242** staff, with remuneration policies determined with reference to market conditions and individual performance, reviewed annually, and training programs provided, and a defined contribution scheme adopted as its pension plan - As of June 30, 2025, the Group employed **2,242** staff[78](index=78&type=chunk) - The remuneration package is determined with reference to market conditions and individual performance, and reviewed annually[78](index=78&type=chunk) - The Group provides external and internal training programs for its employees and has adopted a defined contribution scheme[78](index=78&type=chunk) [Contingent Liabilities](index=33&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[79](index=79&type=chunk) [Foreign Exchange Risk](index=33&type=section&id=Foreign%20Exchange%20Risk) The majority of the Group's operations are in China, with transactions denominated and settled in RMB, and except for bank deposits denominated in foreign currencies and certain interest-bearing bank borrowings, the Group has no significant foreign currency risk and currently does not use derivative financial instruments for hedging - The majority of operations are conducted in China, with transactions denominated and settled in RMB[80](index=80&type=chunk) - Except for bank deposits denominated in foreign currencies and certain interest-bearing bank borrowings, there is no significant foreign currency risk[80](index=80&type=chunk) - Currently, no derivative financial instruments are used to hedge foreign currency risk[80](index=80&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed, no significant events have occurred after June 30, 2025 - No significant events have occurred after June 30, 2025[81](index=81&type=chunk) [Corporate Governance and Other Information](index=34&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Compliance with Corporate Governance Code](index=34&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Stock Exchange Listing Rules, with the Board believing that for the six months ended June 30, 2025, the company has complied with all code provisions and is committed to continuously improving management efficiency and transparency - The Company has adopted and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Stock Exchange Listing Rules[82](index=82&type=chunk) - For the six months ended June 30, 2025, the company has complied with the Corporate Governance Code without any deviation[82](index=82&type=chunk) - The Group strengthened budget, risk, performance, and accountability management, optimized management tools and strategies, and enhanced operational efficiency[83](index=83&type=chunk) [Interim Dividends](index=34&type=section&id=Interim%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[84](index=84&type=chunk) [Audit Committee and Review of Interim Results](index=35&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and discussed accounting policies, practices, and internal control matters with senior management, with the committee comprising three independent non-executive directors - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[85](index=85&type=chunk) - The committee comprises Mr. Zhou Jinrong (Chairman), Mr. Chang Qing, and Mr. Peng Yongzhen, all independent non-executive directors[85](index=85&type=chunk) [Standard Code for Securities Transactions by Directors](index=35&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities, and all directors have confirmed compliance with this code during the reporting period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities[86](index=86&type=chunk) - All directors have confirmed compliance with the Standard Code for the six months ended June 30, 2025[86](index=86&type=chunk) [Purchase, Sale and Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[87](index=87&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=36&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the Stock Exchange website and the Company's website, and the interim report will be dispatched to the Company's shareholders in due course - This interim results announcement has been published on the Stock Exchange website (www.hkexnews.hk) and the Company's website (www.kangdaep.com)[88](index=88&type=chunk) - The interim report will be dispatched to the Company's shareholders in due course[88](index=88&type=chunk) [Board of Directors Information](index=36&type=section&id=Board%20of%20Directors%20Information) As of the announcement date, the Board of Directors comprises eight directors, including four executive directors, one non-executive director, and three independent non-executive directors - The Board includes eight directors: Mr. Li Zhong, Ms. Liu Yujie, Mr. Duan Linnan, and Mr. Zhou Wei (Executive Directors), Mr. Zhao Junxian (Non-executive Director), and Mr. Zhou Jinrong, Mr. Chang Qing, and Mr. Peng Yongzhen (Independent Non-executive Directors)[90](index=90&type=chunk)

呈交日期： 2025年8月22日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | | 06136 | 說明 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | 每股發行/出售價 (註4) | 已發行股份總數 | | | 事件 | | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不包括庫存股 份）數目百分比 (註3) | | 庫存股份數目 | | | ...

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） 根據收購守則規則3.8刊發之公告 本公告乃由康達國際環保有限公司（「本公司」）根據香港公司收購及合併守則（「收 購守則」）規則3.8刊發。 茲 提 述 (i ) 段 傳 良 先 生（「 段 先 生 」）、 Sha rp P ro fit Investments Limited（「 Sharp Profit」，連同段先生合稱「聯合要約人」）、中國水務集團有限公司及本公司刊發日 期為二零二五年七月二十一日的聯合公告，內容有關第一上海證券有限公司代表 聯合要約人提出強制性無條件現金要約以收購本公司全部已發行股份並註銷本公 司所有尚未行使購股權（「該 ...

Core Viewpoint - Kangda Environmental (06136.HK) announced that its board meeting will be held on August 29, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to discuss the potential declaration of an interim dividend, if any [1] Summary by Relevant Categories - **Company Announcement** - The board meeting is scheduled for August 29, 2025 [1] - The meeting will focus on the approval of the interim results for the six months ending June 30, 2025 [1] - The board will also consider the declaration of an interim dividend [1]

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 （股 份 代 號：6136） 董事會會議日期 康達國際環保有限公司（「本公司」）董事會（「董事會」）謹此公佈，董事會會議將於二零 二五年八月二十九日（星期五）舉行，藉以（其中包括）考慮及批准本公司及其附屬公司截至 二零二五年六月三十日止六個月之中期業績及其發佈，並考慮派發中期股息（如有）。 承董事會命 康達國際環保有限公司 主席 李中 香港，二零二五年八月十九日 於本公告日期，董事會包括八名董事，即執行董事李中先生、劉玉杰女士、段林楠先生 及周偉先生，非執行董事趙雋賢先生，以及獨立非執行董事周錦榮先生、常清先生及彭 永臻先生。 康 達 國 際 環 保 有 限 公 司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） ...

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聯合公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本聯合公 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。 本聯合公告僅供參考，並不構成收購、購買或認購本公司證券之邀請或要約，亦 非在任何司法權區招攬任何投票或批准。 本聯合公告之全部或部分內容不得在、向或從任何將構成違反其適用法律或法規 之司法權區發佈、刊發或分發。 段傳良先生 （於開曼群島註冊成立並遷冊往百慕達之有限公司） （股份代號：855） SHARP PROFIT INVESTMENTS LIMITED KANGDA INTERNATIONAL ENVIRONMENTAL COMPANY LIMITED （於開曼群島註冊成立的有限公司） （股份代號：6136） 康 達 國 際 環 保 有 限 公 司 聯合公告 延遲寄發有關第一上海證券有限公司代表聯合要約人 提出強制性無條件現金要約 以收購康達國際環保有限公司全部已發行股份 並註銷本公司所有尚未行使購股權的綜合文件 茲提述段傳 ...

Core Viewpoint - Kangda Environmental (06136) has announced a financing lease agreement with Guangdong Green Financial Leasing Co., Ltd., involving the acquisition and leaseback of assets worth 30 million yuan for a period of 72 months, aimed at enhancing liquidity and operational funding for its business [1] Group 1 - The financing lease agreement involves the indirect wholly-owned subsidiary, Weifang Kangda Environmental Water Co., Ltd., which will acquire ownership of assets and lease them back for use [1] - The assets involved in the leaseback agreement include wastewater treatment facilities located in Weifang, Shandong Province, China [1] - The board believes that the financial arrangement under the financing lease will provide additional liquidity and operational funds to support the company's business and the lessee's operations [1]

Core Viewpoint - Kangda Environmental (06136) has announced a financing lease agreement involving the acquisition and leaseback of assets, specifically wastewater treatment facilities located in Weifang, Shandong Province, China, for a total of 30 million yuan [1] Group 1: Financing Lease Agreement - The company’s indirect wholly-owned subsidiary, Guangdong Green Financial Leasing Co., Ltd., has entered into a financing lease agreement with Weifang Kangda Environmental Water Co., Ltd. as the lessor [1] - The agreement stipulates that the lessor will sell the ownership of the assets for 30 million yuan and lease them back to the lessee for a period of 72 months starting from the payment date [1] - The assets involved in this transaction include wastewater treatment facilities, which are critical for the company's operations [1] Group 2: Financial Implications - The board believes that the financing lease agreement will provide the group with additional liquidity and operational funds to support its business and the lessee's operational activities [1]

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） 有關融資租賃協議的 須予披露交易 融資租賃協議 於二零二五年八月六日，承租人（ 為本公司間接全資附屬公司 ）與出租人訂立融 資租賃及附帶文件，據此，出租人同意（ 其中包括 ）以人民幣30,000,000元向承租 人收購資產的所有權，並將其返租予承租人，供彼使用及佔有，期限為72個月 （ 自上述代價付款日期起計 ）。 茲提述先前公告。本集團與出租人亦分別於二零二四年十月二十二日、二零二 五年二月十三日及二零二五年六月二十七日訂立先前融資租賃及附帶文件，據 此，出租人同意（ 其中包括 ）以合共人民幣120,000,000元向本集團收購若干資產 的 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 康達國際環保有限公司 呈交日期: 2025年8月1日 FF301 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06136 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.01 | HKD | | 50,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.01 | HKD | | 50,000,000 | 本月底法 ...