香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 承董事会命 金茂源環保控股有限公司 主席 張梁洪 香港，2025年8月12日 於本公告日期，董事會包括執行董事張梁洪先生（主席兼行政總裁）、黃啟洋先生、李 健明先生、黃少波先生及張嘉峻先生以及獨立非執行董事李曉岩先生、劉達先生及龐愛 蘭女士，銅紫荊星章，太平紳士。 （於開曼群島註冊成立的有限公司） (股份代號: 6805) 董事會會議日期 金茂源環保控股有限公司(「本公司」)董事會(「董事會」)謹此宣佈，本公司將於2025 年8月22日（星期五）舉行董事會會議，以考慮及批准本公司及其附屬公司截至2025年6 月30日止六個月之中期業績及其刊發、並考慮派發中期股息（如有）的建議及其他事項。 Kimou Environmental Holding Limited 金茂源環保控股有限公司 ...

Group 1 - The stock price of Jinmaoyuan Environmental Protection (06805.HK) closed at HKD 1.890 on June 6, reflecting a 4.42% increase from the previous trading day, with an intraday high of HKD 1.980, marking a nearly one-year high [1] - On the same day, the net capital inflow was HKD 23.28 million, with a total of HKD 35.382 million flowing in and HKD 12.104 million flowing out [1] Group 2 - Jinmaoyuan Environmental Protection Holdings Limited is a major operator of surface treatment circular economy industrial parks in China, focusing on wastewater treatment and park management since its establishment in 2005 [2] - The company has established five large-scale surface treatment circular economy industrial parks across various regions in China, covering a total planned area of approximately 3.38 million square meters and a wastewater treatment capacity of about 102,000 tons per day [2] - The parks have nearly 300 surface treatment enterprises and utilize advanced technologies for wastewater treatment, achieving over 60% wastewater recycling and meeting discharge standards for the remainder [2] - The company collaborates with prestigious universities and research institutions to develop advanced wastewater treatment technologies and has received numerous awards and recognitions in the industry [2] - Jinmaoyuan aims to continue its green, low-carbon, and circular development strategy, leveraging broader capital markets for strategic expansion and contributing to high-quality economic development and environmental protection in China [2]

Core Viewpoint - The company has entered into significant transactions involving the repurchase and sale of property, which are expected to impact its financial performance positively [1] Group 1: Transactions Overview - The company’s non-wholly owned subsidiary, Tianjin Jinhua Du, signed a factory repurchase contract with Tianjin Hongyue for the permanent usage rights of Factory 802 in Tianjin Binhai Port Area at a cost of 49.068 million yuan (including tax) [1] - Concurrently, Tianjin Jinhua Du also signed a factory sale contract with Tianjin Hongyue, selling the factory and land usage rights for a total of 57.788 million yuan [1] Group 2: Financial Impact - The transactions constitute a discloseable transaction for the company and must comply with the listing rules regarding declaration and announcement [1] - Upon completion of the transactions, the group is expected to record an unaudited net income of approximately 2 million yuan, with proceeds intended for ongoing business development and general operating funds [1]

Group 1 - The core viewpoint of the news highlights the performance of Jinmaoyuan Environmental Protection, which has shown significant growth in stock price and financial metrics, outperforming the Hang Seng Index [1][2] - Jinmaoyuan Environmental Protection's stock price increased by 6.92% to HKD 1.7, with a monthly increase of 27.2% and a year-to-date increase of 24.22%, surpassing the Hang Seng Index's growth by 18.78% [1] - Financial data for Jinmaoyuan Environmental Protection shows total revenue of CNY 1.394 billion, a year-on-year increase of 18.3%, and a net profit attributable to shareholders of CNY 123 million, up 34.49% [1][3] Group 2 - The company operates as a major surface treatment circular economy industrial park operator in China, focusing on wastewater treatment and park management [3] - Jinmaoyuan Environmental Protection has established five large-scale surface treatment circular economy industrial parks across various regions in China, with a total planned area of approximately 3.38 million square meters and a wastewater treatment capacity of about 102,000 tons per day [3] - The company employs advanced technologies for wastewater treatment, achieving over 60% wastewater recycling and ensuring compliance with discharge standards [3]

Financial Performance - The company reported revenue of RMB 1,394.1 million for the fiscal year ending December 31, 2024, an increase of RMB 215.7 million or 18.3% compared to RMB 1,178.4 million in 2023[8]. - Profit attributable to equity shareholders was RMB 122.6 million, up RMB 31.4 million or 34.5% from RMB 91.2 million in 2023[13]. - The total revenue for the year was approximately RMB 1,394.1 million, an increase of 18.3% compared to the same period in 2023, driven by growth across all three business segments[27]. - Operating profit increased by approximately RMB 50.8 million or 20.0% to about RMB 305.0 million, with an operating margin rising from 21.6% to 21.9%[43]. - Profit before tax increased by approximately RMB 48.8 million to about RMB 166.1 million, attributed to the factors mentioned above[45]. - Income tax expenses rose by approximately RMB 24.3 million to about RMB 59.5 million, mainly due to increased taxable income[46]. - Other income increased by approximately RMB 7.8 million or 36.3% to about RMB 29.3 million, mainly driven by higher interest income and government subsidies[42]. Revenue Drivers - The increase in revenue was primarily driven by higher rental and facility usage income due to increased leased area, as well as growth in wastewater treatment and utility revenues[8]. - Wastewater treatment fees rose by approximately RMB 51.1 million or 21.4% to about RMB 290.4 million, mainly due to increased freshwater usage by tenants in the Guangdong Huizhou and Central China parks[31]. - Steam fees increased by approximately RMB 17.6 million or 15.0% to about RMB 135.4 million, attributed to higher steam consumption by tenants in the Guangdong Huizhou and Central China parks[32]. - The sales of consumables generated revenue of approximately RMB 373.9 million, an increase of approximately RMB 115.2 million or 44.5%, driven by increased tenant demand and higher sales of precious metal products[34]. Operational Highlights - The company operates five strategically located surface treatment circular economy industrial parks in Guangdong, Tianjin, Hubei, Sichuan, and Jiangsu, benefiting from convenient transportation networks[14]. - Total leasable area as of December 31, 2024, is approximately 1,182,000 square meters, with an overall occupancy rate of 84.1%[15]. - The average daily wastewater treatment capacity reached 27,500 tons, with an average daily treatment volume of 11,647 tons, resulting in an annual utilization rate of 42.4%[18]. - The Guangdong Huizhou park has a daily maximum wastewater treatment capacity of 10,000 tons, with an average daily treatment volume of 7,909 tons and a utilization rate of 79.1%[19]. - The average daily wastewater treatment capacity utilization in the Tianjin Binhai park increased to 35.0%, reflecting a slight improvement from the previous year[19]. Strategic Focus - The company plans to focus on "mature parks, new parks, and diversification" as its three main business pillars for future growth[9]. - The company aims to enhance its core competitiveness and promote high-quality development in line with China's 14th Five-Year Plan[9]. - The company aims to transform into a comprehensive wastewater treatment service provider, focusing on improving treatment efficiency and reuse rates[20]. - Future developments will focus on green, intelligent, and high-end electroplating industry parks, utilizing advanced clean production technologies[23]. - The company is exploring hazardous solid waste management to achieve green, low-carbon, and circular development, which is expected to enhance revenue and shareholder returns[23]. Environmental Commitment - The company emphasizes its commitment to environmental protection and sustainable development in the surface treatment industry[9]. - The company is actively monitoring compliance with environmental, safety, and health laws in China, which may require significant upgrades to wastewater treatment technologies[92]. - The group is committed to environmental sustainability and has not found any non-compliance with relevant laws and regulations in its operations[105]. Corporate Governance - The board consists of eight directors, including five executive directors and three independent non-executive directors, with key management personnel having extensive experience in the industry[65]. - The roles of the chairman and CEO are clearly separated, with Zhang Lianghong as chairman and Huang Qiyang as CEO since January 1, 2024[180]. - The company has implemented good corporate governance policies and measures to protect shareholder interests and enhance corporate value[175]. - The audit committee, composed entirely of non-executive directors, includes at least three members, with a majority being independent non-executive directors[193]. - The company has established a mechanism for the board to obtain independent opinions and advice, ensuring the board has independent elements to improve efficiency[191]. Employee and Management Information - The group employed 1,030 full-time employees as of December 31, 2024, up from 901 in the previous year, with employee costs amounting to approximately RMB 168.6 million, a 20.8% increase from RMB 139.6 million[57]. - The remuneration committee consists of three members, including two independent non-executive directors and one executive director, ensuring a majority of independent members[195]. - The company has implemented an employee stock option plan since June 18, 2019, to reward eligible directors and employees[155]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[72]. - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on expanding into the E market[74]. - Market expansion efforts include entering the F region, projected to increase market share by G% over the next two years[78]. - The company is considering strategic acquisitions to enhance its portfolio, with potential targets identified in the G sector[80]. Shareholder Information - The board proposed a final dividend of HKD 0.15 per share, equivalent to approximately RMB 0.139[8]. - The company reported a proposed final dividend of HKD 0.15 per share, amounting to approximately HKD 166.16 million (equivalent to about RMB 153.87 million) based on 1,107,750,000 shares issued as of December 31, 2024[99]. - The controlling shareholder, Jinchang Investment Co., Ltd., held 46.09% of the issued shares as of December 31, 2024, with no pledging of shares reported during the year[121]. Risk Management - The group faces interest rate risk primarily from floating-rate bank loans, which are closely monitored by management[61]. - Credit risk is considered low due to the nature of counterparties being banks and financial institutions, limiting exposure to trade receivables[62]. - The company is exploring various funding sources, including equity financing and convertible bonds, to support its strategic expansion and financial stability[93].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,394,084, an increase of 18.3% from RMB 1,178,414 for the year ended December 31, 2023[2] - Operating profit for the year was RMB 305,045, representing a growth of 20% compared to RMB 254,265 in the previous year[3] - Net profit attributable to equity shareholders was RMB 122,611, up 34.5% from RMB 91,167 in the prior year[3] - Basic and diluted earnings per share increased to RMB 0.11 from RMB 0.08, reflecting a 37.5% rise[3] - The company’s total comprehensive income for the year was RMB 106,529, compared to RMB 82,092 in the previous year, reflecting a growth of 29.8%[5] - The adjusted EBITDA for the group was RMB 595,472,000 in 2024, compared to RMB 544,807,000 in 2023, indicating an increase of 9.3%[27] - The profit attributable to equity shareholders was approximately RMB 122.6 million, representing a growth of about 34.5% from RMB 91.2 million in 2023[61] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 5,222,749, compared to RMB 4,934,102 as of December 31, 2023, indicating a growth of 5.9%[3] - Total assets increased to RMB 4,469,290 thousand in 2024 from RMB 4,111,352 thousand in 2023, representing a growth of approximately 8.7%[7] - Current liabilities decreased to RMB 1,517,925 thousand in 2024 from RMB 1,760,055 thousand in 2023, reflecting a reduction of approximately 13.8%[8] - Total liabilities increased to RMB 2,329,733 thousand in 2024 from RMB 1,931,472 thousand in 2023, indicating a growth of approximately 20.6%[8] - The company's total non-current liabilities rose to RMB 2,210,861 thousand in 2024 from RMB 1,811,757 thousand in 2023, reflecting an increase of about 22.0%[8] - As of December 31, 2024, the group's net current liabilities were approximately RMB 764.5 million, down from RMB 937.3 million as of December 31, 2023[98] Cash Flow and Dividends - The company declared a final dividend of HKD 0.15 per share, equivalent to approximately RMB 0.139, compared to HKD 0.10 per share in the previous year[2] - The company declared a dividend of RMB 6,000,000 for the year ended December 31, 2024, compared to RMB 900,000 in 2023, indicating a significant increase[39] - The total expected revenue from existing contracts as of December 31, 2024, is RMB 974,843,000, down from RMB 1,016,216,000 in 2023, representing a decrease of approximately 4.1%[28] Revenue Breakdown - Revenue from external customers in the leasing and facility usage segment was RMB 461,837,000 in 2024, compared to RMB 440,914,000 in 2023, reflecting a growth of 4.5%[26] - The wastewater treatment and public utility segment generated RMB 525,480,000 in revenue for 2024, an increase from RMB 443,290,000 in 2023, marking a rise of 18.6%[26] - The sales of goods and bundled services segment saw revenue increase to RMB 406,767,000 in 2024 from RMB 294,210,000 in 2023, which is a significant growth of 38.2%[26] - The group’s reportable segments include leasing and facility usage, wastewater treatment and public utilities, and sales of goods and bundled services[23] Expenses and Costs - Operating costs rose by approximately RMB 175.1 million or 18.6% to about RMB 1,116.1 million, reflecting higher expenses across various categories[83] - Employee costs increased by 20.8% to approximately RMB 168.6 million, driven by the need to hire more employees for business development[86] - The cost of goods sold for the year ended December 31, 2024, was RMB 343,242,000, compared to RMB 242,590,000 in 2023, indicating an increase of about 41.6%[38] - Other expenses rose by approximately RMB 30.1 million or 22.1% to about RMB 166.5 million, attributed to increased professional consulting fees and advertising expenses[90] Financial Position and Ratios - The asset-liability ratio was approximately 223.7% as of December 31, 2024, slightly up from 221.4% in 2023[100] - The adjusted net debt-to-equity ratio increased to 2.05 in 2024 from 1.96 in 2023[102] - The total interest-bearing loans amounted to RMB 3,075.7 million as of December 31, 2024, compared to RMB 2,750.7 million in the previous year[99] Operational Highlights - The group operates five strategically located industrial parks in Guangdong, Tianjin, Hubei, Sichuan, and Jiangsu, benefiting from convenient transportation networks[62] - The total rental area of the five surface treatment circular economy industrial parks was approximately 1,182,000 square meters as of December 31, 2024, compared to 1,178,000 square meters in 2023[63] - The overall rental rate for the industrial parks was 84.1% in 2024, up from 82.3% in 2023[63] - The group utilized 4,206,000 tons of fresh water in 2024, compared to 3,521,000 tons in 2023[65] Research and Development - The group holds 173 registered patents and has 63 patents currently under application as of December 31, 2024, indicating a strong focus on R&D[69] - The company’s research and development expenses for the year ended December 31, 2024, were RMB 14,458,000, compared to RMB 13,918,000 in 2023, marking an increase of about 3.9%[38] Corporate Governance - The company has adhered to the corporate governance code applicable for the year[117] - All directors confirmed compliance with the trading standards under the listing rules for the fiscal year[118] - The new auditor, Hong Kong Lixin Dehao CPA Limited, will take over from BDO Limited effective November 20, 2024[121]

Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately RMB 657.6 million, an increase of about RMB 103.3 million compared to RMB 554.3 million for the same period in 2023, representing a growth of approximately 18.6%[5] - The profit attributable to equity shareholders for the same period was approximately RMB 49.7 million, up from RMB 41.1 million in 2023, reflecting an increase of about RMB 8.6 million or 20.9%[5] - Revenue for the six months ended June 30, 2024, was RMB 657,625 thousand, representing an increase of 18.7% compared to RMB 554,251 thousand in the same period in 2023[70] - Operating profit for the same period was RMB 136,705 thousand, up from RMB 122,206 thousand, indicating an increase of 11.5% year-over-year[70] - Profit before tax increased to RMB 65,968 thousand, a rise of 16.4% from RMB 56,616 thousand in the previous year[70] - Net profit for the period was RMB 40,581 thousand, compared to RMB 38,443 thousand, reflecting a growth of 2.9%[72] - Total comprehensive income for the period was RMB 38,669 thousand, an increase from RMB 35,872 thousand in the prior year, marking a growth of 7.9%[72] - The company reported a profit of RMB 50,106 thousand for the six months ended June 30, 2024, compared to a profit of RMB 41,061 thousand for the same period in 2023, representing a growth of 22.1%[78] - Total comprehensive income for the period was RMB 47,794 thousand, up from RMB 38,669 thousand in the previous year, reflecting a year-over-year increase of approximately 23.2%[79] Revenue Segments - Revenue from leasing and facility usage services increased by approximately RMB 11.2 million or 5.1% to about RMB 230.0 million during the review period, mainly due to an increase in the average daily rented area[21] - Wastewater treatment fees increased by approximately RMB 21.1 million or 19.3% to about RMB 130.7 million, driven by increased freshwater usage resulting from a larger rented area[24] - Revenue from the wastewater treatment and utilities segment was RMB 237,436,000, up 14.7% from RMB 206,912,000 in the previous year[88] - Revenue from the sales of goods and related services increased significantly to RMB 190,229,000, a rise of 48.1% from RMB 128,501,000 in 2023[88] Operational Efficiency - The company is focused on enhancing its operational efficiency and increasing its market share in the environmental protection sector[5] - The average daily wastewater treatment capacity across all parks was 27,500 tons, with an average daily treatment volume of 10,481 tons, resulting in a utilization rate of 38.1%[10] - The average daily wastewater treatment capacity utilization rate across the company's facilities was 48.3%, with Guangdong Huizhou region at 67.9%, Tianjin Yanport region at 33.2%, and Central China region at 6.2%[12] Capital Expenditures and Investments - Capital expenditures for the period amounted to approximately RMB 305.6 million, up from RMB 286.2 million for the six months ended June 30, 2023[43] - The company invested RMB 379,911 thousand in property, plant, and equipment, which is an increase from RMB 319,280 thousand in the same period last year, indicating a growth of approximately 18.9% in capital expenditures[81] - The company has obtained 158 patents and has 50 patents pending as of June 30, 2024, as part of its long-term goal to enhance wastewater treatment effectiveness and reuse rates[13] Employee and Management - As of June 30, 2024, the company had 985 full-time employees, an increase of approximately 13.6% from 867 employees as of June 30, 2023[54] - Employee costs rose by approximately RMB 10.5 million or 15.4% to about RMB 78.1 million, driven by an increase in workforce to support business development[32] - Employee costs, including directors' remuneration, rose to RMB 78,053 thousand, up from RMB 67,634 thousand, indicating an increase of 15.5%[70] Debt and Financing - The company's total bank loans and borrowings amounted to approximately RMB 2,922.8 million as of June 30, 2024, with a debt-to-equity ratio of approximately 232.5%[39] - The adjusted net debt-to-equity ratio increased to 2.10 as of June 30, 2024, compared to 1.96 as of December 31, 2023[42] - Financing costs increased by approximately RMB 5.1 million or 7.8% to about RMB 70.7 million, attributed to higher average bank loan balances[36] Assets and Liabilities - As of June 30, 2024, total non-current assets amounted to RMB 4,219,886 thousand, an increase of 2.6% from RMB 4,111,352 thousand as of December 31, 2023[74] - Current assets reached RMB 914,726 thousand, up 11.2% from RMB 822,750 thousand at the end of 2023[74] - Total liabilities increased to RMB 3,877,482 thousand, compared to RMB 3,691,027 thousand at the end of 2023, reflecting a rise of 5.1%[75] Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous period[57] - Major shareholders included Jinchang Investment Co., Ltd. with 510,528,000 shares (46.09%) and Jinshang Investment Co., Ltd. with 239,400,000 shares (21.61%)[61] - The total number of share options available under the share option scheme was 112,000,000, representing 10.1% of the issued share capital as of June 30, 2024[55] Compliance and Governance - The company has complied with the relevant provisions of the Hong Kong Listing Rules and Hong Kong Accounting Standards No. 34 for the preparation of the interim financial report[135] - The review of the interim financial report did not reveal any matters that would lead to a belief that the report was not prepared in accordance with the applicable accounting standards[137]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 657,625 thousand, an increase of 18.7% compared to RMB 554,251 thousand for the same period in 2023[1]. - Operating profit for the same period was RMB 136,705 thousand, up from RMB 122,206 thousand, reflecting a growth of 11.9%[2]. - Net profit attributable to equity shareholders was RMB 49,706 thousand, compared to RMB 41,061 thousand in the previous year, representing an increase of 21.1%[2]. - The operating profit margin decreased slightly to 20.8% from 22.0% year-on-year, while the net profit margin also declined to 6.2% from 6.9%[1]. - The company reported a total comprehensive income of RMB 38,669 thousand for the period, compared to RMB 35,872 thousand in the same period last year, indicating a growth of 7.9%[3]. - The company reported revenue of RMB 1,281,788,000 for the twelve months ending June 30, 2024, an increase from RMB 1,115,089,000 for the same period in 2023, representing a growth of approximately 14.9%[15]. - The reported segment profit (adjusted EBITDA) for the six months ending June 30, 2024, was RMB 300,088,000, compared to RMB 261,444,000 for the same period in 2023, reflecting an increase of about 14.7%[16]. - The company reported a basic earnings per share of RMB 49,706,000 for the six months ended June 30, 2024, compared to RMB 41,061,000 for the same period in 2023, reflecting an increase of approximately 21.5%[23]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 5,134,612 thousand, an increase from RMB 4,934,102 thousand at the end of 2023[1]. - The company’s total liabilities increased to RMB 1,819,837 thousand from RMB 1,760,055 thousand, indicating a rise of 3.4%[4]. - As of June 30, 2024, the total non-current liabilities amounted to RMB 2,057,645,000, an increase from RMB 1,931,472,000 as of December 31, 2023, representing a growth of 6.5%[5]. - The net assets of the company reached RMB 1,257,130,000, compared to RMB 1,242,575,000 at the end of 2023, indicating a slight increase of 1.2%[5]. - The company’s current liabilities exceeded its current assets by RMB 905,111,000 as of June 30, 2024, slightly improved from RMB 937,305,000 at the end of 2023[6]. - The company reported a total equity attributable to shareholders of RMB 1,080,270,000, down from RMB 1,132,990,000 at the end of 2023, indicating a decrease of 4.6%[5]. - The company’s total liabilities increased by 6% from December 31, 2023, to June 30, 2024, reflecting ongoing operational growth[33]. Cash Flow and Financing - Cash and cash equivalents were RMB 223,972 thousand, down from RMB 276,752 thousand at the end of 2023, reflecting a decrease of 19.0%[4]. - The company incurred financing costs of RMB 70,737,000 for the six months ending June 30, 2024, compared to RMB 65,590,000 for the same period in 2023, indicating an increase of about 7.3%[17]. - The company’s financing cost as a percentage of total borrowings was capitalized at an annual rate between 5.46% and 6.25% as of June 30, 2023[17]. - The company has confirmed its ability to continue as a going concern for the next twelve months based on projected cash flows and financing resources[6]. - The company has total capital commitments of approximately RMB 399.0 million as of June 30, 2024, compared to RMB 186.6 million as of December 31, 2023[77]. Revenue Segments - Revenue from the wastewater treatment and public utility segment was RMB 237,436,000 for the six months ended June 30, 2024, up from RMB 206,912,000 in the same period of 2023, reflecting a growth of 14.7%[10]. - Revenue from the sales of goods and related services increased significantly to RMB 190,229,000, compared to RMB 128,501,000 in the previous year, marking a rise of 48.1%[10]. - The total revenue for the six months ended June 30, 2024, was RMB 588,144,000, compared to RMB 489,694,000 in the same period of 2023, representing an overall increase of 20.1%[10]. - Revenue from leasing and facility services increased by approximately RMB 11.2 million or 5.1% to about RMB 230.0 million for the six months ended June 30, 2023[54]. - Revenue from wastewater treatment increased by approximately RMB 21.1 million or 19.3% to about RMB 130.7 million for the six months ended June 30, 2023[56]. - Revenue from sales of goods and related services increased by approximately RMB 58.5 million or 51.5% to about RMB 172.2 million for the six months ended June 30, 2023[59]. Operational Efficiency - The company continues to focus on expanding its market presence and enhancing operational efficiency through strategic initiatives[2]. - The company operates three reportable segments: leasing and facility management, wastewater treatment and public utilities, and sales of goods and related services[9]. - The company’s wastewater treatment and utility services are affected by seasonal factors, with lower demand typically observed during long holidays such as the Lunar New Year and National Day[15]. - The average daily wastewater treatment capacity utilization rates for the group's facilities were 74.0% in Guangdong, 31.6% in Tianjin, 25.0% in Huizhou, 2.4% in Binhai, and 11.0% in Central China, with an overall average of 38.1%[44]. Employee and Operational Costs - Employee costs, including director remuneration, rose to RMB 78,053,000 for the six months ending June 30, 2024, from RMB 67,634,000 in the same period of 2023, representing an increase of approximately 15.4%[18]. - The total cost of goods sold for the six months ended June 30, 2024, was RMB 221,802,000, up from RMB 168,042,000 in 2023, representing a year-over-year increase of about 32%[19]. - Depreciation and amortization increased by approximately RMB 19.9 million or 15.6% to about RMB 147.3 million for the six months ended June 30, 2023[61]. - Other expenses rose by approximately RMB 13.7 million or 22.3% to about RMB 75.2 million for the six months ended June 30, 2023, mainly due to higher professional consulting service fees and increased taxes and additional fees from revenue growth[65]. Strategic Initiatives and Future Outlook - The group aims to focus on environmental protection-related businesses and actively explore hazardous solid waste management to achieve green, low-carbon, and circular development[48]. - The group has applied to the relevant government departments to increase the maximum wastewater treatment capacity in the Huizhou area from 10,000 tons per day to 15,000 tons per day, which is currently under review[50]. - The group has acquired land use rights for several plots in Taixing City, Jiangsu Province, to further develop factories in the East China area, which will add approximately 340,000 square meters of rental factory space upon completion[49]. - The company has increased its full-time employees to 985 as of June 30, 2024, up from 867 a year earlier, reflecting a growth of approximately 13.6%[86].

Revenue and Financial Performance - The company's total revenue for the year was approximately RMB 1,178.4 million, a 7.5% increase compared to 2022, driven by growth across all three business segments[4] - Revenue for the year reached RMB 1,178.4 million, an increase of RMB 82.6 million or 7.5% compared to the previous year[43][45] - Net profit attributable to equity shareholders was RMB 91.2 million, a decrease of RMB 20.1 million or 18.0% due to depreciation, amortization, and interest expenses from new operations in Sichuan and Jiangsu[43][45] - The company declared a final dividend of HK$0.10 per share (approximately RMB 0.91 per share) for the year ended December 31, 2023[43] Wastewater Treatment Capacity and Utilization - The company's daily maximum wastewater treatment capacity reached 23,500 tons, with an average daily treatment volume of 9,747 tons and an annual utilization rate of 41.5%[2] - Guangdong Huizhou Park's daily maximum wastewater treatment capacity reached 10,000 tons, with an average daily treatment volume of 7,363 tons and an annual utilization rate of 73.6%[2] - Tianjin Binhai Park's daily maximum wastewater treatment capacity reached 6,000 tons, with an average daily treatment volume of 2,040 tons and an annual utilization rate of 34.0%[2] - Central China Park's daily maximum wastewater treatment capacity reached 2,500 tons, with an average daily treatment volume of 282 tons and an annual utilization rate of 11.3%, a 6.8% increase from 2022[10] - Qingshen Park's daily maximum wastewater treatment capacity reached 5,000 tons, with an average daily treatment volume of 62 tons[10] - The company has applied to increase the daily maximum wastewater treatment capacity of Guangdong Huizhou Park from 10,000 tons to 15,000 tons, pending government approval[20] - Total wastewater treatment capacity across all parks is 23,500 tons per day[26] - Average daily wastewater treatment volume across all parks is 9,747 tons with a utilization rate of 41.5%[26] - Guangdong Huizhou Park has the highest wastewater treatment capacity utilization rate at 73.6%[26] - Total freshwater used across all parks in 2023 was 3,521,000 tons[26] Leasable Area and Occupancy Rates - Total leasable area of Guangdong Huizhou Park is approximately 501,000 square meters with a leasing rate of 95.8%[22] - Total leasable area of Tianjin Binhai Park is approximately 309,000 square meters with a leasing rate of 90.9%[22] - Total leasable area of Central China Park is approximately 143,000 square meters with a leasing rate of 39.2%[22] - Total leasable area of Qingshen Park is approximately 105,000 square meters with a leasing rate of 46.7%[22] - Total leasable area of East China Park is approximately 120,000 square meters with a leasing rate of 86.7%[22] - Total leasable area across five surface treatment circular economy industrial parks was 1,178,000 square meters, with an overall occupancy rate of 82.3%[57] - The Guangdong Huizhou park had the highest occupancy rate at 95.8%, while the Tianjin Binhai park had the lowest at 39.2%[57] Corporate Governance and Board Structure - The company's board of directors is responsible for strategic direction, operational oversight, financial performance monitoring, and ensuring effective internal control and risk management systems[111] - The company's audit committee reviews and supervises the financial reporting process, risk management, and internal control systems, providing independent opinions on their effectiveness[103] - The company's board of directors has established mechanisms to obtain independent perspectives and opinions, including access to external professional advisors and additional information from management[113] - The company's board committees (audit, remuneration, and nomination committees) operate under defined terms of reference and are provided with sufficient resources to fulfill their duties[114] - The company's independent non-executive directors have confirmed their independence in accordance with Listing Rule 3.13, with no business or other relationships that could affect their ability to perform duties independently[94] - The company's directors are required to retire by rotation at least once every three years, with one-third of the directors retiring at each annual general meeting[96] - The company's senior management is authorized to make decisions and coordinate daily operations, with significant transactions requiring prior board approval[98][99] - The Audit Committee consists of three members, all of whom are independent non-executive directors, with Mr. Liu Da serving as the chairman and possessing appropriate professional qualifications in accounting or financial management[115] - The company temporarily failed to meet the requirements of Listing Rule 3.21 after Mr. Li Yinquan resigned as an independent non-executive director and chairman of the Audit Committee on December 22, 2022. Mr. Liu Da was appointed as the new independent non-executive director and chairman of the Audit Committee on March 1, 2023, restoring compliance[116] - The Audit Committee held two meetings during the year and addressed matters such as the reappointment of the company's auditor, the review of internal audit functions, and the scope of non-audit services[117] - The Audit Committee also held two meetings with the external auditor during the year[118] - The Remuneration Committee, chaired by Mr. Kan Chung Nin, consists of three members, including two independent non-executive directors and one executive director, and is responsible for reviewing and recommending the remuneration policies and structures for directors and senior management[119] - The Remuneration Committee held three meetings during the year to review the company's remuneration policies, the performance and remuneration of executive directors and senior management, and the service contracts of executive directors[122] - The company's controlling shareholder, Jinchang Investment Limited, holds 44.47% of the issued shares as of December 31, 2023, and did not pledge any shares during the year[130] - No director or senior management member received any joining bonus, post-joining bonus, or severance compensation during the year[133] - No director waived or agreed to waive any remuneration during the year[134] - No director or their close associates had any interests in businesses competing with the company during the year[136] - The company has 901 employees as of December 31, 2023, with 616 males (68.4%) and 285 females (31.6%)[144] - The company plans to appoint at least one female director by December 31, 2024, to achieve gender diversity on the board and comply with Listing Rule 13.92[146] - The nomination committee held three meetings during the year to review the board's structure, size, and composition, and to recommend the appointment of independent non-executive directors and executive directors[142] - The company has adopted a board diversity policy, emphasizing the benefits of diversity and considering it a key factor in maintaining competitive advantage[145] - The board will consider setting measurable targets to implement the board diversity policy and review these targets periodically to ensure their appropriateness[146] - The nomination committee is responsible for evaluating the independence of independent non-executive directors and ensuring candidates meet the necessary qualifications and experience[160] - The company's board diversity policy includes considerations such as gender, age, cultural and educational background, industry experience, technical and professional skills, and tenure[169] - The nomination committee will review the board nomination policy to ensure its effectiveness[170] - The board will submit regular reports assessing the group's performance, situation, and prospects to ensure compliance with listing rules[174] - The company held a total of 8 board meetings during the year, with all directors attending all meetings[175] - The company's audit committee reviewed corporate governance policies and practices, including compliance with legal and regulatory requirements[195] - The company's board diversity policy aims to ensure a balanced and diverse board composition, considering factors such as gender, age, cultural background, and professional qualifications[187] - The company's nomination policy outlines the criteria and procedures for selecting and appointing new directors, ensuring the board has the necessary skills and experience[190] - The company's corporate secretary, Mr. Chung Ming-fai, has over 19 years of experience in corporate secretarial, mergers and acquisitions, financial reporting, and auditing[180] - All directors participated in continuous professional development related to their duties, including attending seminars and reviewing industry development materials[179] - The company's board and committee meetings were attended by all eligible directors, with no alternates attending on their behalf[199] Share Repurchase and Shareholder Value - The company repurchased and canceled 3,838,000 shares on May 9, 2023[63] - The company repurchased a total of 3,386,000 shares on the stock exchange at a total cost of approximately HKD 3,460,000, aiming to increase net asset value per share and earnings per share, thereby enhancing shareholder value[89] - The company's share repurchase is considered the best method to enhance shareholder value and aligns with the best interests of shareholders[89] - The company repurchased a total of 3,386,000 shares in 2023, with a total cost of HKD 3,459,440[185] Intellectual Property and Innovation - The company has obtained 139 registered patents, with 31 patents currently under application[11] Marketing and Customer Engagement - The company participated in 17 exhibitions during the year to promote its services and build customer relationships[12] Legal and Regulatory Compliance - The company paid RMB 395,000 in damages for a trademark infringement lawsuit, with frozen bank deposits of RMB 3,140,000 released in January 2024[83] Employee Incentives and Development - The company has adopted a share option plan to incentivize eligible participants to maximize performance efficiency and align their interests with the group's long-term development[88] Subsidiary Transactions - A subsidiary entered into a purchase agreement for refurbished mobile phones worth RMB 20,058,000 and a sales agreement for RMB 20,178,000 on March 5, 2024[70] Construction and Expansion - The company completed the first phase of the East China Park in October 2023, adding 120,000 square meters of rentable factory space[19] - The East China Park completed its first phase of construction and entered the trial production stage in October 2023[36]

Revenue and Profitability - Revenue for the year ended December 31, 2023, was RMB 1,178,414,000, representing an increase of 7.5% compared to RMB 1,095,791,000 for the year ended December 31, 2022[1]. - Net profit attributable to equity shareholders decreased to RMB 91,167,000 from RMB 111,235,000, reflecting a decline of 18.1%[1]. - Basic and diluted earnings per share for the year were both RMB 0.08, down from RMB 0.10 in the previous year[1]. - The annual profit for the year ended December 31, 2023, was RMB 82,092,000, a decrease of 24.5% from RMB 108,705,000 in the previous year[18]. - Total comprehensive income attributable to equity shareholders for the year ended December 31, 2023, was RMB 91,167,000, compared to RMB 111,235,000 in 2022, a decrease of 18.1%[18]. - The company's profit attributable to equity shareholders decreased from approximately RMB 111.2 million to approximately RMB 91.2 million, a reduction of about RMB 20.0 million, primarily due to the aforementioned factors[191]. Assets and Liabilities - Total assets increased to RMB 4,934,102,000 from RMB 4,372,118,000, marking a growth of 12.8%[1]. - Current liabilities exceeded current assets by RMB 937,305,000, compared to RMB 854,989,000 in the previous year, indicating increased financial pressure[10]. - The company's total liabilities increased to RMB 1,016,216,000 as of December 31, 2023, compared to RMB 1,202,194,000 in 2022, reflecting a decrease of about 15.5%[60]. - The company's total assets as of December 31, 2023, are RMB 2,750,680,000, compared to RMB 2,233,241,000 in 2022, indicating an increase of 23.2%[106]. - As of December 31, 2023, the company's asset-liability ratio was approximately 221.4%, up from 163.6% as of December 31, 2022[194]. Operating Performance - Operating profit for the year was RMB 254,265,000, slightly up from RMB 253,671,000, indicating a stable performance[1]. - Operating margin decreased to 21.6% from 23.1%, while net profit margin fell to 7.0% from 9.9%[1]. - The reported segment profit (adjusted EBITDA) for the year ended December 31, 2023, was RMB 544,807,000, compared to RMB 501,128,000 in 2022, indicating an increase of about 8.7%[59]. - Operating costs increased by approximately RMB 79.0 million or 9.2% to about RMB 941.0 million for the year ended December 31, 2023, compared to RMB 862.0 million in the previous year[156]. - Financing costs increased by approximately RMB 35.5 million or 35.0% to approximately RMB 137.0 million, attributed to an increase in average bank loans and other borrowings[163]. Expenses and Costs - Employee costs for the year ended December 31, 2023, were RMB 139,622,000, up from RMB 133,404,000 in 2022, representing an increase of 4.9%[18]. - The total finance costs for the year ended December 31, 2023, amounted to RMB 136,957,000, compared to RMB 101,460,000 in 2022, indicating an increase of approximately 35%[64]. - Depreciation and amortization for properties, plants, and equipment was RMB 264,263,000, an increase from RMB 219,213,000 in 2022[91]. - Research and development expenses increased to RMB 13,918,000 from RMB 10,907,000 in 2022[91]. - The cost of goods sold for the year ended December 31, 2023, was RMB 362,791,000, an increase of 6% from RMB 342,189,000 in 2022[18]. Dividends - The company declared a final dividend of HKD 0.10 per share for the year, compared to HKD 0.05 per share in 2022, indicating a 100% increase in dividend payout[15]. - The company proposed a final dividend of HKD 0.10 per share for the year 2023, up from HKD 0.05 per share in 2022, representing a 100% increase[72]. Cash Flow and Financing - The company confirmed its ability to continue as a going concern based on future cash flow forecasts and financing plans[10]. - The total amount of bank loans and other borrowings as of December 31, 2023, is RMB 2,746,889,000, up from RMB 2,227,428,000 in 2022, representing a rise of 23.3%[106]. - The company is monitoring compliance with covenants related to its bank loans, with no violations reported as of December 31, 2023[133]. Market and Operations - The company has diversified its customer base, with no single customer accounting for more than 10% of total revenue as of December 31, 2023[53]. - The company aims to expand its business related to wastewater treatment and environmental protection, focusing on the electroplating industry[145]. - The company participated in 17 exhibitions this year to enhance marketing and customer relationships[119].