CHINA EVERBRIGHT ENVIRONMENT GROUP LIMITED 中國光大環境（集團）有限公司 非執行董事： 康國明 瞿 利 獨立非執行董事： 范仁鶴 李淑賢 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） （股份代號：257） 董事名單與其角色和職能 中國光大環境（集團）有限公司（「本公司」）董事會（「董事會」）成員載列如下： 執行董事： 王思聯 （董事會主席） 欒祖盛 （總裁） C 有關董事會委員會主席 M 有關董事會委員會成員 * 亦包括本公司的其他人員 香港，二零二五年十月十日 張 翔 董事會設立五個董事會委員會。下表提供各董事會成員在這些董事會委員會中所擔任的 職位： | | | | | 董事會委員會 | | | | --- | --- | --- | --- | --- | --- | --- | | | | 審核 | 風險管理 | 提名 | 薪酬 | 可持續發展 | | 董事 | | 委員會 | 委員會* | 委員會 | 委員會 | 委員會 | | 王思聯 | | | | C | M | | | 欒祖盛 | | | M | | | C | | 康國明 | | M | ...

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之內容概不負責， 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之任何損失承擔任何責任。 CHINA EVERBRIGHT ENVIRONMENT GROUP LIMITED 中國光大環境（集團）有限公司 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） 風險管理委員會成員之變更 於本公告日期，董事會包括：(i)兩名執行董事－王思聯先生（董事會主席）及欒祖盛先生 （總裁）；(ii)兩名非執行董事－康國明先生及瞿利女士；以及 (iii)三名獨立非執行董事－ 范仁鶴先生、李淑賢女士及張翔教授，JP.。 中國光大環境（集團）有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，獨 立非執行董事李淑賢女士不再擔任本公司風險管理委員會（「風險管理委員會」）成員， 自二零二五年十月十日起生效。 於考慮本公司提名委員會的推薦建議後，董事會委任非執行董事康國明先生擔任風險管 理委員會成員，自二零二五年十月十日起生效。 承董事會命 中國光大環境（集團）有限公司 梁妍鈺 公司秘書 香港，二零 ...

Core Viewpoint - Delixi Co., Ltd. is undergoing a potential change in control, as notified by its controlling shareholder and actual controller, Shi Weidong, leading to a temporary suspension of trading for the company's stock [1][6]. Group 1: Company Overview - Delixi Co., Ltd., founded by Shi Weidong, is headquartered in Fengyang, Anhui, and specializes in the research and manufacturing of various glass products, becoming a leading manufacturer of glassware in China over the past two decades [4]. - The company has faced continuous operational challenges, reporting losses of 110 million yuan, 86 million yuan, and 173 million yuan for the years 2022 to 2024, respectively [4]. - In the first half of 2025, the company reported a net profit loss of 45 million yuan, a staggering decline of 491% compared to the same period last year [4]. Group 2: Business Transformation Efforts - Delixi attempted to pivot its business model by entering the photovoltaic glass market, establishing a wholly-owned subsidiary, Delixi Energy, in 2020, and signing a five-year procurement agreement with Longi Green Energy for at least 250 million square meters of photovoltaic glass from 2022 to 2026, with a total contract value estimated at 5.531 billion yuan [4]. - However, the photovoltaic glass project faced significant challenges, as indicated in the 2025 semi-annual report, which noted that the project was idled due to the overall downturn in the photovoltaic industry [4]. Group 3: Recent Investment Adjustments - In July 2023, Delixi announced the termination of two external investment projects, the Beihai Company and the Delixi Pharmaceutical Glass project, which had not progressed to substantial construction over nearly five years [5]. - The company also disclosed an asset sale plan, agreeing to sell its 100% stake in Fengyang Derui Mining Co., Ltd. for 135 million yuan, which is expected to result in a loss of approximately 6.5 million yuan [5]. Group 4: Market Performance and Trading Suspension - Prior to the trading suspension, Delixi's stock closed at 8.32 yuan per share on September 30, 2023, reflecting a 6.12% increase on that day, with a total market capitalization of 3.3 billion yuan [6].

炒股就看金麒麟分析师研报，权威，专业，及时，全面，助您挖掘潜力主题机会！ 10月8日晚间，德力股份（002571）公告称，公司9月30日收到控股股东及实际控制人施卫东的通知，其 正在筹划公司控制权变更事项。该事项可能导致公司控股股东及实际控制人发生变更，具体交易方案、 协议条款等尚需进一步论证和磋商。 德力股份股票将于10月9日（星期四）开市起停牌，预计停牌时间不超过2个交易日。 德力股份由施卫东于1996年创立，总部位于安徽凤阳，是一家专业从事各类玻璃产品研发、制造的公 司，玻璃产品类别覆盖家用玻璃、太阳能玻璃、包装玻璃、光学玻璃、耐热家电玻璃、水晶玻璃。官网 信息显示，德力股份是中国玻璃器皿制造首强企业，亚太地区最大的家用玻璃工厂。 然而，德力股份正面临业绩连续亏损的窘境。2022年至2024年，德力股份归母净利润分别亏损1.10亿 元、8550.94万元、1.73亿元。2025年上半年，公司归母净利润为亏损4531.66万元，同比下降490.74%。 2020年，德力股份成立全资子公司德力光能，以加快公司涉入具有良好发展前景的光伏玻璃材料领域， 并于2021年与隆基绿能签订了五年期光伏玻璃采购协议。德力 ...

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9月30日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | 中國光大環境(集團)有限公司 (於香港註冊成立之有限公司) | | | | 呈交日期: | 2025年10月2日 | | | | I. 法定/註冊股本變動 不適用 | | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 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) | 00257 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 6,142,975,292 | | 0 | | 6,1 ...

CHINA EVERBRIGHT ENVIRONMENT GROUP LIMITED 中國光大環境（集團）有限公司 (Incorporated in Hong Kong with limited liability) （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） (Stock code股份代號: 257) NOTIFICATION LETTER 通知信函 16 September 2025 Dear Non-Registered Holder(1), China Everbright Environment Group Limited (the "Company") – Notification of publication of 2025 Interim Report ("Current Corporate Communication") on the Company's website The Chinese and English versions of the Company's Current Corporate Communication are available on the web ...

CHINA EVERBRIGHT ENVIRONMENT GROUP LIMITED 中國光大環境（集團）有限公司 (Incorporated in Hong Kong with limited liability) （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） (Stock code股份代號: 257) NOTIFICATION LETTER 通知信函 Dear Existing Registered Shareholder, 16 September 2025 China Everbright Environment Group Limited (the "Company") – Notification of publication of 2025 Interim Report ("Current Corporate Communication") on the Company's website The Chinese and English versions of the Company's Current Corporate Communication are available on ...

[Corporate Information](index=4&type=section&id=Corporate%20Information) The company's corporate information includes details on its board of directors, key advisors, and contact information [Directors and Company Secretary](index=4&type=section&id=Directors%20and%20Company%20Secretary) The company's board comprises executive, non-executive, and independent non-executive directors, with a change in company secretary during the review period - The Board Chairman is **Wang Silian**, and the President is **Luan Zusheng**[7](index=7&type=chunk) - **Qu Li** was appointed as a Non-executive Director on April 17, 2025[7](index=7&type=chunk) - **Liang Yanyu** was appointed Company Secretary on September 15, 2025, with **Pan Wanling** resigning on the same day[7](index=7&type=chunk) [Key Advisors and Contacts](index=4&type=section&id=Key%20Advisors%20and%20Contacts) The company lists its principal bankers, legal advisors, auditor, share registrar, PR consultant, and official website information - Principal bankers include Agricultural Bank of China, Bank of China, Bank of Communications, and 15 other banks[8](index=8&type=chunk) - The auditor is **KPMG**[10](index=10&type=chunk) - The company's stock code is **257**, and its official website is **www.cebenvironment.com**[11](index=11&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, revenue and profit decreased year-on-year, while total assets and equity grew, maintaining reasonable debt-to-asset and current ratios Key Financial Indicators for H1 2025 | Indicator | 2025 H1 (HKD thousands) | 2024 H1 (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 14,303,933 | 15,612,133 | -8% | | EBITDA | 6,047,957 | 6,550,295 | -8% | | Profit Attributable to Equity Holders of the Company | 2,206,751 | 2,453,917 | -10% | | Return on Equity (Half-year) | 4.42% | 5.00% | -0.58 ppt | | Basic Earnings Per Share (HK cents) | 35.92 | 39.95 | -10% | Financial Position as of June 30, 2025 | Indicator | 2025-06-30 (HKD thousands) | 2024-12-31 (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Total Assets | 192,228,976 | 186,027,024 | 3% | | Total Liabilities | 121,689,775 | 119,610,448 | 2% | | Equity Attributable to Equity Holders of the Company | 51,675,216 | 48,210,960 | 7% | | Net Asset Value Per Share Attributable to Equity Holders (HKD) | 8.412 | 7.848 | 7% | | Debt-to-Asset Ratio (%) | 63 | 64 | -1 ppt | | Current Ratio (%) | 128 | 134 | -6 ppt | [Business Review and Prospects](index=7&type=section&id=Business%20Review%20and%20Prospects) This section provides an overview of the company's operational performance across its business segments and outlines future strategic directions [Operating Results](index=7&type=section&id=OPERATING%20RESULTS) In H1 2025, Everbright Environment maintained steady progress, implementing its "Two Modernizations and One Type" strategy and "Second Entrepreneurship" to achieve stable operating performance and advancements in strategy, market expansion, operational efficiency, management, and risk prevention - The Group adheres to the "technological, international, and ecological" development strategy, fully advancing "Second Entrepreneurship" to promote high-quality development[13](index=13&type=chunk)[14](index=14&type=chunk) - Total revenue was **HKD 14.304 billion**, with operating service revenue increasing by **5%** year-on-year to **HKD 9.943 billion**, and construction service revenue decreasing by **49%** to **HKD 1.844 billion**[17](index=17&type=chunk)[19](index=19&type=chunk) - Operating services, construction services, and financial income accounted for **70%**, **13%**, and **17%** of total revenue, respectively[17](index=17&type=chunk)[19](index=19&type=chunk) - The Group continued to expand financing channels, successfully issuing medium-term notes and asset-backed securities, maintaining a relatively low comprehensive financing cost[18](index=18&type=chunk)[19](index=19&type=chunk) - As of June 30, 2025, the Group held **HKD 8.842 billion** in cash, indicating a healthy financial position[18](index=18&type=chunk)[19](index=19&type=chunk) - Declared an interim dividend of **15.0 HK cents per share**, a **7 percentage point increase** from H1 2024, with a payout ratio of **42%**[25](index=25&type=chunk)[26](index=26&type=chunk) - The Group's business spans **25 provinces (municipalities), autonomous regions, and 1 special administrative region** in China, covering **229 cities and counties**, with overseas markets expanding to **16 countries** including Germany, Poland, Vietnam, and Uzbekistan[28](index=28&type=chunk)[29](index=29&type=chunk) - A total of **604 environmental projects** have been invested and implemented, with a total investment of approximately **RMB 164.307 billion**[28](index=28&type=chunk)[29](index=29&type=chunk) - **Four new projects** were added, with a total investment of approximately **RMB 2.396 billion**, and new light-asset service contracts totaling approximately **RMB 520 million** were signed[36](index=36&type=chunk) - The average power generation per ton of waste incinerated in waste-to-energy projects was approximately **460 kWh**, a **3% year-on-year increase**; the integrated plant auxiliary power consumption rate was approximately **14.7%**, a **0.3 percentage point year-on-year decrease**[42](index=42&type=chunk)[44](index=44&type=chunk) - Wastewater treatment volume was approximately **835.1 million cubic meters**, largely consistent with H1 2024[42](index=42&type=chunk)[44](index=44&type=chunk) - Biomass integrated utilization projects achieved "dual improvements" in heat and power generation, with the average biomass fuel acquisition price decreasing by **8%** year-on-year[42](index=42&type=chunk)[44](index=44&type=chunk) - **Seven projects** were completed and put into operation, **three projects** were completed, and **one environmental remediation service** was completed and delivered; **seven new projects** commenced construction and **three new environmental remediation services** were executed[43](index=43&type=chunk)[45](index=45&type=chunk) Key Environmental Contributions for H1 2025 | Treatment Scale | Environmental Contribution | | :--- | :--- | | Household Waste Treatment Volume: 28,572,000 tons | Provided 14,836,000,000 kWh of green electricity, equivalent to saving 5,935,000 tons of standard coal and reducing 18,895,000 tons of CO2 emissions | | Hazardous and Solid Waste Treatment Volume: 240,000 tons | | | Agricultural and Forestry Waste Treatment Volume: 3,742,000 tons | | | Wastewater Treatment Volume: 835,143,000 cubic meters | Reduced Chemical Oxygen Demand (COD) emissions by 421,000 tons | | Waste-to-Energy Plant Leachate Treatment Volume: 4,345,000 cubic meters | | [I. Environmental Energy](index=30&type=section&id=I.%20ENVIRONMENTAL%20ENERGY) The Environmental Energy segment, the Group's largest core business, continues to focus on solid waste, consolidating its industry leadership with significant H1 2025 progress in market expansion, operations, and construction, contributing substantial EBITDA and net profit - Environmental Energy is the Group's largest core business segment by scale and revenue contribution, covering waste-to-energy, kitchen waste treatment, leachate treatment, and fly ash treatment[66](index=66&type=chunk)[68](index=68&type=chunk) - As of June 30, 2025, Environmental Energy had invested in **286 projects**, with a total investment of approximately **RMB 101.228 billion**[67](index=67&type=chunk)[68](index=68&type=chunk) - Successfully implemented waste-to-energy projects in Fergana and Namangan regions of Uzbekistan, achieving a breakthrough in the Central Asian solid waste treatment market[73](index=73&type=chunk)[74](index=74&type=chunk) - Won the bid for the Sanya Waste-to-Energy Project Phase V, consolidating domestic business advantages[73](index=73&type=chunk)[74](index=74&type=chunk) - Added **3 new projects** with a total investment of approximately **RMB 2.336 billion**, adding a designed daily household waste treatment capacity of **3,000 tons**[73](index=73&type=chunk)[74](index=74&type=chunk) - The average power generation per ton of waste incinerated in waste-to-energy projects was approximately **460 kWh**, a **3% year-on-year increase**; the integrated plant auxiliary power consumption rate was approximately **14.7%**, a **0.3 percentage point year-on-year decrease**[75](index=75&type=chunk)[77](index=77&type=chunk) - External steam supply increased by **39%** year-on-year, and **two waste-to-energy projects** were approved for increased treatment fees[75](index=75&type=chunk)[77](index=77&type=chunk) - Contributed **HKD 4.237 billion** in EBITDA, a **6% year-on-year increase**; contributed **HKD 2.567 billion** in net profit attributable to the Group, a **12% year-on-year increase**[76](index=76&type=chunk)[77](index=77&type=chunk) Environmental Energy Key Operating Data for H1 2025 | Indicator | 2025 H1 | 2024 H1 | Percentage Change | | :--- | :--- | :--- | :--- | | Waste Treatment Volume (tons) | 26,498,000 | 25,978,000 | 2% | | Kitchen and Food Waste, Sludge, and Other Waste Treatment Volume (tons) | 4,568,000 | 1,652,000 | 177% | | On-grid Power Generation (MWh) | 8,859,563 | 8,395,422 | 6% | [II. Environmental Water](index=35&type=section&id=II.%20ENVIRONMENTAL%20WATER) As a leading water environment comprehensive treatment service provider in China, the Environmental Water segment continues to optimize its business layout, deepen its asset-light and asset-heavy models, and make progress in operations and construction, maintaining a solid market position despite slight declines in EBITDA and net profit - The Group holds a **72.87% equity interest** in Everbright Water, a company listed on the main boards of the Singapore and Hong Kong Stock Exchanges[80](index=80&type=chunk)[82](index=82&type=chunk) - As of June 30, 2025, Everbright Water had invested in **170 projects**, with a total investment of approximately **RMB 31.63 billion**[81](index=81&type=chunk)[82](index=82&type=chunk) - Newly undertaken light-asset business contracts totaled approximately **RMB 60 million**, adding a designed daily industrial wastewater treatment capacity of **10,000 cubic meters**[85](index=85&type=chunk)[86](index=86&type=chunk) - Further reduced operating costs of existing projects through technological innovation and refined management, and signed over ten new revenue-generating business contracts[87](index=87&type=chunk)[90](index=90&type=chunk) - **Five projects** were completed and put into operation, with a designed daily water treatment capacity of **700,000 cubic meters**; **two projects** commenced construction, with a designed daily water supply capacity of **15,000 cubic meters**[88](index=88&type=chunk)[90](index=90&type=chunk) - Contributed **HKD 1.192 billion** in EBITDA, a **1% year-on-year decrease**; contributed **HKD 409 million** in net profit attributable to the Group, a **4% year-on-year decrease**, primarily due to increased exchange losses[89](index=89&type=chunk)[91](index=91&type=chunk) Environmental Water Key Operating Data for H1 2025 | Indicator | 2025 H1 | 2024 H1 | Percentage Change | | :--- | :--- | :--- | :--- | | Wastewater Treatment Volume (thousand cubic meters) | 835,143 | 835,360 | 0% | | Reclaimed Water Reuse Volume (thousand cubic meters) | 19,324 | 22,450 | -14% | [III. Greentech](index=40&type=section&id=III.%20GREENTECH) The Greentech segment focuses on biomass integrated utilization, hazardous and solid waste disposal, environmental remediation, and new energy. In H1 2025, it achieved breakthroughs in business transformation and lean operations, particularly in high-value biomass utilization and green certificate trading, leading to significant net profit growth - The Group holds a **69.70% equity interest** in Everbright Greentech, a company listed on the main board of the Stock Exchange[94](index=94&type=chunk)[96](index=96&type=chunk) - As of June 30, 2025, Everbright Greentech had invested in **143 projects**, with a total investment of approximately **RMB 30.827 billion**[95](index=95&type=chunk)[96](index=96&type=chunk) - Secured its first bio-natural gas project, supplying natural gas to Jingjiang Special Steel Co., Ltd., marking a significant breakthrough in high-value biomass utilization[98](index=98&type=chunk)[99](index=99&type=chunk) - Added **1 new project** with a total investment of approximately **RMB 60 million**; signed **3 new environmental remediation service contracts** totaling approximately **RMB 128 million**[98](index=98&type=chunk)[99](index=99&type=chunk) - Heat and steam supply increased by approximately **27%** year-on-year, while the average biomass fuel acquisition price decreased by **8%** year-on-year[100](index=100&type=chunk)[102](index=102&type=chunk) - Green certificate trading volume increased by nearly **2 times** compared to the full year 2024, and the number of customers quadrupled[100](index=100&type=chunk)[102](index=102&type=chunk) - Contributed **HKD 987 million** in EBITDA, an **11% year-on-year decrease**; contributed **HKD 139 million** in net profit attributable to the Group, a **30% year-on-year increase**[103](index=103&type=chunk)[104](index=104&type=chunk) Greentech Key Operating Data for H1 2025 | Indicator | 2025 H1 | 2024 H1 | Percentage Change | | :--- | :--- | :--- | :--- | | Waste Treatment Volume (tons) | 2,074,000 | 2,057,000 | 1% | | Biomass Raw Material Treatment Volume (tons) | 3,742,000 | 3,883,000 | -4% | | Hazardous and Solid Waste Disposal Volume (tons) | 240,000 | 247,000 | -3% | | Steam Supply Volume (tons) | 2,176,000 | 1,707,000 | 27% | | On-grid Power Generation (MWh) | 3,426,000 | 3,335,000 | 3% | [IV. Equipment Manufacturing](index=44&type=section&id=IV.%20EQUIPMENT%20MANUFACTURING) The Equipment Manufacturing segment, leveraging Everbright Environmental Technology & Equipment (Changzhou) Co., Ltd., focuses on innovation, overseas expansion, cost control, and risk management, aiming to be a world-class environmental equipment supplier, specializing in small-scale waste incineration technology domestically and actively expanding internationally - Deepened efforts in small-scale waste incineration technology, expanding into county-level markets in Sichuan, Gansu, Heilongjiang, and other provinces[107](index=107&type=chunk)[109](index=109&type=chunk) - Signed supply contracts for high-energy incinerators in Thailand and slag removers in India, and won the bid for the Langkawi Phase I renovation project in Malaysia, accelerating the overseas expansion of self-developed environmental equipment[107](index=107&type=chunk)[109](index=109&type=chunk) - Signed **8 export contracts** for complete sets of equipment, totaling approximately **RMB 112 million**, including **11 sets** of incinerators, flue gas purification systems, and other equipment[111](index=111&type=chunk)[112](index=112&type=chunk) - The Equipment Cloud Service Intelligent Platform was officially launched, providing full lifecycle digital services for environmental equipment, with approximately **600 registered users**[111](index=111&type=chunk)[112](index=112&type=chunk) - Self-developed fly ash low-temperature pyrolysis and water washing technology passed expert review, deemed technically feasible and significant for industry promotion[114](index=114&type=chunk) [V. Envirotech](index=47&type=section&id=V.%20ENVIROTECH) The Envirotech Research Institute, as the Group's R&D engine, focuses on empowering business segments with technology, serving as a core platform for innovation and commercialization, making steady progress in fly ash treatment, waste-to-carbon, biomass saccharification, and micro-grate furnace technologies, successfully commercializing several key technological achievements - Steadily advanced the "3+1" key R&D directions, achieving technological breakthroughs in fly ash resource utilization[116](index=116&type=chunk)[118](index=118&type=chunk) - Anaerobic ammonia oxidation system successfully commissioned at the Group's Ninghai Waste-to-Energy Project in Zhejiang, laying the foundation for commercialization[117](index=117&type=chunk)[118](index=118&type=chunk) - Continuously promoted the commercialization of technologies such as Automatic Combustion Control (ACC), Semi-dry Flue Gas Automatic Control (AFC), and Polymer Non-Catalytic Reduction (PNCR)[117](index=117&type=chunk)[118](index=118&type=chunk) [Business Prospects](index=48&type=section&id=BUSINESS%20PROSPECTS) The Group will uphold its mission of "Caring for the Ecological Environment, Building a Beautiful China," aiming to become a "world-class environmental integrated service provider with Chinese characteristics," effectively implementing the "15th Five-Year Plan" strategic plan, enhancing overseas business contributions, strengthening operational cost reduction and efficiency improvement, fostering new growth drivers, and reinforcing risk prevention and control to achieve high-quality development - The goal is to become a "world-class environmental integrated service provider with Chinese characteristics"[119](index=119&type=chunk)[121](index=121&type=chunk) - Will effectively implement the "15th Five-Year Plan" strategic plan to ensure the realization of strategic objectives[119](index=119&type=chunk)[121](index=121&type=chunk) - Enhance overseas business contributions, seize M&A opportunities, and expand core businesses[119](index=119&type=chunk)[121](index=121&type=chunk) - Implement multiple measures to strengthen operational cost reduction and efficiency improvement, cultivate new growth drivers, and promote the construction of a scientific and technological innovation platform[119](index=119&type=chunk)[121](index=121&type=chunk) - Strengthen risk prevention and control, orderly dispose of non-performing assets, vigorously pursue accounts receivable collection, and strictly ensure production safety[119](index=119&type=chunk)[121](index=121&type=chunk) [Management Discussion and Analysis](index=49&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's financial position, resources, borrowings, risk management, and human resources [Financial Position](index=49&type=section&id=FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets were approximately HKD 192.229 billion, and net assets were approximately HKD 70.539 billion, with net asset value per share increasing by 7% year-on-year and the debt-to-asset ratio decreasing by 1 percentage point to 63% Financial Position Overview as of June 30, 2025 | Indicator | 2025-06-30 (HKD thousands) | 2024-12-31 (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Total Assets | 192,228,976 | 186,027,024 | 3% | | Net Assets | 70,539,201 | 66,416,576 | 6% | | Net Asset Value Per Share Attributable to Equity Holders (HKD) | 8.412 | 7.848 | 7% | | Debt-to-Asset Ratio (%) | 63 | 64 | -1 ppt | [Financial Resources](index=49&type=section&id=FINANCIAL%20RESOURCES) The Group adopts prudent cash and financial management, primarily funding operations through internal cash flow and bank loans, with cash and bank balances increasing by 10% year-on-year as of June 30, 2025, approximately 98% denominated in HKD and RMB - The Group's working capital primarily comes from internal cash flow and bank loans[123](index=123&type=chunk)[125](index=125&type=chunk) - As of June 30, 2025, cash and bank balances were approximately **HKD 8.842 billion**, a **10% increase** from the end of 2024[123](index=123&type=chunk)[125](index=125&type=chunk) - Approximately **98%** of cash and bank balances are denominated in HKD and RMB[123](index=123&type=chunk)[125](index=125&type=chunk) [Borrowings](index=50&type=section&id=BORROWINGS) The Group is committed to broadening financing channels and increasing bank credit lines; as of June 30, 2025, total interest-bearing borrowings increased by 2% year-on-year, primarily denominated in RMB with mostly floating interest rates, and the Group has ample bank financing facilities - As of June 30, 2025, total outstanding interest-bearing borrowings were approximately **HKD 93.49 billion**, a **2% increase** from the end of 2024[126](index=126&type=chunk)[128](index=128&type=chunk) - Borrowings are primarily denominated in RMB, accounting for approximately **99%** of the total, with most being at floating interest rates[126](index=126&type=chunk)[128](index=128&type=chunk) - Bank financing facilities amounted to **HKD 97.418 billion**, of which **HKD 33.447 billion** remained unutilized[126](index=126&type=chunk)[128](index=128&type=chunk) [Foreign Exchange Risks](index=50&type=section&id=FOREIGN%20EXCHANGE%20RISKS) The Group's primary operations are in mainland China, with most assets, borrowings, and major transactions denominated in RMB, creating a natural hedge; the Group manages foreign exchange risk by optimizing multi-currency borrowing allocation and utilizing financial instruments - Mainland China is the Group's primary business location, accounting for over **95%** of total investment and revenue[127](index=127&type=chunk)[129](index=129&type=chunk) - Most assets, borrowings, and major transactions are denominated in RMB, forming a natural hedge[127](index=127&type=chunk)[129](index=129&type=chunk) - Foreign exchange risk is managed through reasonable matching of various currency loans, control of non-local currency loans, and the use of financial instruments[127](index=127&type=chunk)[129](index=129&type=chunk) [Pledge of Assets](index=51&type=section&id=PLEDGE%20OF%20ASSETS) As of June 30, 2025, certain Group bank financing and lease liabilities are secured by revenue and receivables under service concession arrangements, bank deposits, property, plant and equipment, right-of-use assets, and equity interests in some subsidiaries, with a total net book value of approximately HKD 101.561 billion - The total net book value of pledged assets and equity interests in subsidiaries is approximately **HKD 101.561 billion**[130](index=130&type=chunk)[133](index=133&type=chunk) - Collateral includes revenue and receivables under service concession arrangements, bank deposits, property, plant and equipment, right-of-use assets, and equity interests in certain subsidiaries[130](index=130&type=chunk)[133](index=133&type=chunk) [Commitments](index=51&type=section&id=COMMITMENTS) As of June 30, 2025, the Group's contractual purchase commitments for construction contracts amounted to HKD 643 million - As of June 30, 2025, the Group's contractual purchase commitments for construction contracts amounted to **HKD 643 million**[131](index=131&type=chunk)[134](index=134&type=chunk) [Contingent Liabilities](index=51&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the company provided financial guarantees for its subsidiaries, with a maximum liability of HKD 245 million, though the Board considers the likelihood of claims to be low - As of June 30, 2025, the company provided financial guarantees for its subsidiaries, with a maximum liability of **HKD 245 million**[132](index=132&type=chunk)[135](index=135&type=chunk) - The Board believes it is unlikely that the holders of such guarantees will make claims against the company[132](index=132&type=chunk)[135](index=135&type=chunk) [Internal Management](index=52&type=section&id=INTERNAL%20MANAGEMENT) The Group continuously improves its management structure, regularly convenes general office meetings to review operations, and strengthens its risk management system, strictly adhering to regulations and actively conducting inspections to ensure safe and stable project operations in safety and environmental management - The Group's management regularly convenes general office meetings (established in July 2025) to review operational and management status, ensuring sustainable development[136](index=136&type=chunk)[138](index=138&type=chunk) - Continuously improved the risk management system, revised the risk factor list, and enhanced the systematization and normalization of risk management[137](index=137&type=chunk)[138](index=138&type=chunk) - Adhered to "safe and stable operation, compliant discharge" as the fundamental principle for safety and environmental management, strictly implementing national laws and regulations[139](index=139&type=chunk)[140](index=140&type=chunk) - Actively conducted daily safety, environmental, and occupational health inspections, identifying and rectifying safety and environmental risks to ensure safe production across all projects[139](index=139&type=chunk)[140](index=140&type=chunk) [Human Resources](index=54&type=section&id=HUMAN%20RESOURCES) The Group highly values human resource management and employee training, enhancing overall management through departmental restructuring, professional rank systems, and comprehensive training, leveraging its diversified business to offer broad development platforms and strengthen employee belonging - The Group highly values human resource management and employee training, believing that unleashing employee potential is crucial for long-term development[141](index=141&type=chunk)[143](index=143&type=chunk) - Established an Asset Preservation Management Department and a Market Development Department, and adjusted departmental structures such as the Information and Network Security Leading Group[142](index=142&type=chunk)[143](index=143&type=chunk) - Organized special meetings and training on production safety, cybersecurity, technological innovation, and integrity to enhance the knowledge and skills of management and employees[142](index=142&type=chunk)[143](index=143&type=chunk) - Leveraged business diversification to provide cross-segment, cross-regional rotation and internal recruitment opportunities, stimulating employee potential[144](index=144&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, the Group employed approximately **15,000 staff**[145](index=145&type=chunk)[148](index=148&type=chunk) [Principal Risks and Uncertainties](index=55&type=section&id=PRINCIPAL%20RISKS%20AND%20UNCERTAINTIES) The Group faces various risks including accounts receivable, environmental compliance and safety management, market competition, policy changes, procurement compliance, operational stability, and staffing, for which it has developed and implemented countermeasures to ensure stable business development [I. Accounts Receivable Risk](index=55&type=section&id=I.%20Accounts%20receivable%20risk) Macroeconomic factors and declining government fiscal capacity have led to high accounts receivable; the Group is implementing a "special team, ledger, assessment, incentive" mechanism, categorized management, and multi-pronged approaches to accelerate collection, including engaging ministries for national subsidies and various recovery methods for local government arrears - High accounts receivable are primarily due to macroeconomic impacts and reduced fiscal payment capacity of various levels of government[150](index=150&type=chunk) - Improved the "special team, ledger, assessment, incentive" long-term working mechanism, regularly analyzing accounts receivable and strengthening ledger management[151](index=151&type=chunk)[152](index=152&type=chunk) - For national subsidy arrears, engaged with the Ministry of Finance and National Energy Administration to accelerate allocation and confirmation; for local government arrears, established special teams and flexibly used dunning letters, negotiations, and litigation for collection[154](index=154&type=chunk)[155](index=155&type=chunk) [II. Environmental Compliance and Safety Management Risk](index=58&type=section&id=II.%20Environmental%20compliance%20and%20safety%20management%20risk) Normalized stringent pollutant emission regulations and rising standards impose higher operational demands, while widespread projects and long operating durations create significant safety management pressure; the Group is advancing a "Three-Year Action Plan for Fundamental Safety Production Improvement," strengthening education, process control, and holiday safety monitoring to ensure compliant and safe operations - Stringent pollutant emission regulations are normalized, and local governments continuously raise emission standards, imposing higher demands on operational management[156](index=156&type=chunk) - Advanced the "Three-Year Action Plan for Fundamental Safety Production Improvement," organizing a six-month special safety management campaign[157](index=157&type=chunk)[159](index=159&type=chunk) - Strengthened education and training, compiling materials such as the "Safety Accident Warning Handbook" to enhance safety and environmental management levels[160](index=160&type=chunk) - Enhanced process control, intensified "four-no-two-direct" unannounced inspections, focusing on full-process control of hazardous operations[161](index=161&type=chunk)[163](index=163&type=chunk) [III. Market Competition Risk](index=60&type=section&id=III.%20Market%20competition%20risk) Traditional environmental sub-sectors face limited market space, intense competition, and rapid business model evolution; the Group is responding by systematically optimizing its "15th Five-Year Plan" strategy, accelerating M&A, and actively expanding international and B2B businesses to leverage scale, cultivate new growth points, and address market challenges - Incremental market space in traditional environmental sub-sectors is limited, market competition is increasingly fierce, and business models are rapidly evolving[164](index=164&type=chunk) - Systematically optimized the "15th Five-Year Plan" strategy, clarifying strategic objectives, development paths, and supporting measures[165](index=165&type=chunk)[166](index=166&type=chunk) - Accelerated M&A activities, established a real-time dynamic M&A information database, and concentrated superior resources to advance key projects[167](index=167&type=chunk) - Actively expanded international business, tackling Hong Kong and Macao markets, breaking through Central Asian projects, and developing asset-light businesses such as technology and equipment in Belt and Road and Middle East regions[168](index=168&type=chunk) - Actively promoted B2B business, providing synergistic supply services (steam, heat, natural gas, recycled water), and exploring opportunities in green power computing centers and comprehensive VOCs treatment[169](index=169&type=chunk)[170](index=170&type=chunk) [IV. Policy Changing Risk](index=62&type=section&id=IV.%20Policy%20changing%20risk) Policy changes lead to subsidy reductions, decreased revenue, increased compliance costs, and unstable market expectations; the Group actively monitors policy trends, anticipates adjustments, strictly enforces current regulations, optimizes business structure and regional layout, and increases R&D investment to drive technological innovation and model upgrades, reducing reliance on policy subsidies - Policy change risks manifest as subsidy reductions, decreased revenue, increased operational pressure, and rising compliance costs due to stricter regulations and standards[171](index=171&type=chunk) - Actively monitored policy trends in national and local environmental, fiscal, and energy sectors, anticipating policy adjustment trends in advance[172](index=172&type=chunk)[173](index=173&type=chunk) - Strictly implemented current policies and regulations, proactively preparing technical solutions for stricter policy directions, and actively promoting upgrade and renovation projects[174](index=174&type=chunk) - Optimized business structure and regional layout, prudently evaluating new project investments, prioritizing regions with strong policy stability[175](index=175&type=chunk) - Increased R&D investment, focusing on cultivating new businesses and models for transformation, enhancing business added value, promoting B2B business, and reducing reliance on policy subsidies[176](index=176&type=chunk)[177](index=177&type=chunk) [V. Procurement Compliance Risk](index=64&type=section&id=V.%20Procurement%20compliance%20risk) Increasingly stringent procurement compliance requirements mean non-compliant procurement could negatively impact company interests and reputation; the Group is strengthening compliance implementation, optimizing procurement platform functions, improving "blacklist" management, and enhancing training and supervision to build a robust firewall against procurement irregularities - Procurement compliance requirements are becoming increasingly stringent, and non-compliant procurement will negatively impact the company's interests and reputation[178](index=178&type=chunk) - Continuously implemented operational documents such as the "Guidelines for Handling Bid Rigging and Collusion" and "Guidelines for Offline Procurement," and adjusted procurement project authority for amounts below **RMB 300,000**[179](index=179&type=chunk)[181](index=181&type=chunk) - Optimized the procurement platform's functions to automatically identify and warn against suspected bid-rigging and colluding suppliers, restricting their bidding[180](index=180&type=chunk)[181](index=181&type=chunk) - Strengthened the implementation of the "Interim Measures for Managing the 'Blacklist of Bribers'," prohibiting any cooperation with blacklisted individuals during the penalty period[182](index=182&type=chunk)[185](index=185&type=chunk) - Enhanced professional skills training and warning education for procurement personnel, and regularly conducted procurement spot checks to strengthen supervision and inspection[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) [VI. Operational Stability Risk](index=66&type=section&id=VI.%20Operational%20stability%20risk) Influenced by macroeconomic conditions, industrial adjustments, and industry saturation, some projects face insufficient feedstock, impacting operational stability and investment returns; the Group is enhancing project operational levels and risk resilience by optimizing capacity management, ensuring maintenance, hedging extreme weather risks with insurance, and deeply promoting operational efficiency initiatives - The increasing possibility of insufficient feedstock (e.g., waste volume, domestic sewage) for some projects, influenced by macroeconomic conditions, industrial adjustments, and industry saturation, affects stable operations and investment returns[186](index=186&type=chunk) - Optimized capacity management, alleviating waste volume shortages through synergistic disposal, breaking regional boundaries, and expanding new businesses[187](index=187&type=chunk)[188](index=188&type=chunk) - Ensured maintenance work, increasing attendance rates during major holidays, and implementing performance management responsibilities for maintenance and overhaul units[189](index=189&type=chunk)[192](index=192&type=chunk) - Fully utilized commercial insurance to hedge against extreme weather risks, strengthening property, machinery breakdown, and business interruption insurance coverage[190](index=190&type=chunk)[192](index=192&type=chunk) - Deeply promoted operational efficiency initiatives, organizing surveys of benchmark operations and loss-making, low-quality projects to enhance project operational levels[191](index=191&type=chunk)[192](index=192&type=chunk) [VII. Staffing Risk](index=68&type=section&id=VII.%20Staff%20placement%20risk) Staffing risk arises from limited total compensation, remote new project locations, and high-salary poaching by industry competitors; the Group is enhancing employee satisfaction and organizational vitality by opening career development paths, optimizing selection and appointment systems, advancing salary reform, fostering a high-performance culture, and deeply implementing a talent-strengthening strategy - Limited total compensation and restricted salary increase potential; new projects are located in remote areas, lacking attractiveness for talent; high-salary poaching by industry competitors[193](index=193&type=chunk) - Opened multiple career development paths for management, technical, and functional series, issuing the "Position and Rank System Management Measures" and "Employee Point Management Measures"[194](index=194&type=chunk)[197](index=197&type=chunk) - Optimized the selection and appointment system, creating growth channels for key management positions, and selecting outstanding talent through internal competitions[195](index=195&type=chunk)[197](index=197&type=chunk) - Advanced salary reform, gradually breaking down the barrier of confidential salaries, and improving the effectiveness of salary distribution[196](index=196&type=chunk)[198](index=198&type=chunk) - Built a high-performance culture, allocating limited resources towards high-performing employees, key position employees, and frontline employees to enhance their sense of gain[199](index=199&type=chunk)[202](index=202&type=chunk) [Environmental and Social Management](index=69&type=section&id=ENVIRONMENTAL%20AND%20SOCIAL%20MANAGEMENT) The Group highly values the environmental and social impact of its operations, establishing a comprehensive safety and environmental management system, implementing full-staff safety production responsibility, regularly reviewing sustainable development strategies, strictly adhering to national and EU pollutant emission standards, and proactively disclosing emission data and environmental management information - The Group has established a comprehensive safety and environmental management system and continuously implements relevant management policies[201](index=201&type=chunk)[203](index=203&type=chunk) - Implemented a full-staff safety production responsibility system, clarifying safety production and environmental management responsibilities and assessment standards[204](index=204&type=chunk)[207](index=207&type=chunk) - The Board of Directors and senior management regularly review sustainable development strategies[205](index=205&type=chunk)[208](index=208&type=chunk) - Waste-to-energy projects are designed and operated in full compliance with national environmental regulations and standards, with daily average online flue gas monitoring indicators fully superior to the EU Industrial Emissions Directive[206](index=206&type=chunk)[208](index=208&type=chunk) - Proactively discloses emission data and environmental management information on the company website, and is connected to the National Ministry of Ecology and Environment's automatic monitoring information disclosure platform[209](index=209&type=chunk)[210](index=210&type=chunk) [Disclosure of Interests](index=72&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions of directors, chief executives, substantial shareholders, and other persons in the company's shares and underlying shares [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=72&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, the interests of the company's directors, chief executives, and their associates in the shares, underlying shares, and debentures of the company and/or its associated corporations have been disclosed in accordance with the SFO and Listing Rules, with Mr. Fan Renhe holding long positions in the company's shares and Everbright Greentech shares Mr. Fan Renhe's Long Position in Company Shares | Director's Name | Capacity | Nature of Interest | Number of Shares Held (Ordinary Shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Fan Renhe | Beneficial owner | Personal | 11,154,810 | 0.18% | Mr. Fan Renhe's Long Position in Everbright Greentech Shares | Director's Name | Capacity | Nature of Interest | Number of Shares Held (Ordinary Shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Fan Renhe | Beneficial owner | Personal | 100,494 | Below 0.01% | [Directors' Rights to Acquire Shares or Debentures](index=74&type=section&id=DIRECTORS'%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) During the review period, neither the company nor any of its subsidiaries, holding companies, or fellow subsidiaries participated in any arrangements enabling directors to acquire benefits by purchasing shares or debentures of the company or any other body corporate - During the review period, neither the company nor its subsidiaries, holding companies, or fellow subsidiaries participated in any arrangements enabling directors to acquire benefits by purchasing shares or debentures[218](index=218&type=chunk)[220](index=220&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=74&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20AND%20OTHER%20PERSONS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) As of June 30, 2025, apart from directors and chief executives, Central Huijin Investment Ltd., China Everbright Group Ltd., and Pacific Asset Management Co., Ltd. are substantial shareholders holding interests in the company's shares Substantial Shareholders' Long Positions in Company Shares | Company Name | Capacity | Nature of Interest | Number of Shares in Long Position (Ordinary Shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Central Huijin Investment Ltd. | Interest of controlled corporation | Corporate interest | 2,646,233,137 | 43.08% | | China Everbright Group Ltd. | Interest of controlled corporation | Corporate interest | 2,646,233,137 | 43.08% | | Pacific Asset Management Co., Ltd. | Other | – | 364,604,778 | 5.94% | - Central Huijin Investment Ltd. is indirectly wholly-owned by the State Council of China and holds a **63.16% equity interest** in China Everbright Group[223](index=223&type=chunk) - China Everbright Group indirectly wholly-owns Guildford Limited and Everbright Investment Management Limited through its wholly-owned subsidiaries, which together hold **2,646,233,137 shares** in the company[223](index=223&type=chunk) - Pacific Asset Management Co., Ltd., as manager, invests in the company's shares on behalf of China Pacific Life Insurance Co., Ltd. and certain investment portfolio insurance asset management products[223](index=223&type=chunk) [Share Options Scheme](index=76&type=section&id=SHARE%20OPTIONS%20SCHEME) The Group did not have any share option schemes during the review period - The Group had no share option schemes during the review period[225](index=225&type=chunk)[227](index=227&type=chunk) [Corporate Governance](index=77&type=section&id=Corporate%20Governance) This section outlines the company's adherence to corporate governance codes, board structure, committee functions, and securities trading standards for directors [Compliance with the CG Code](index=77&type=section&id=COMPLIANCE%20WITH%20THE%20CG%20CODE) Upholding "people-oriented, pragmatic, innovative, and standardized management," the Group is committed to high corporate governance standards, complying with all applicable CG Code provisions for the six months ended June 30, 2025, except for the Chairman's absence from the AGM - The Group adheres to the management philosophy of "people-oriented, pragmatic, pioneering and innovative, and standardized management"[228](index=228&type=chunk)[230](index=230&type=chunk) - The Board has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its code of corporate governance practices[229](index=229&type=chunk)[231](index=231&type=chunk) - For the six months ended June 30, 2025, the company complied with all applicable code provisions, except that Mr. Wang Silian, the Chairman of the Board, was unable to attend the 2025 Annual General Meeting due to other important official duties[232](index=232&type=chunk)[234](index=234&type=chunk) [The Board](index=79&type=section&id=THE%20BOARD) The Board currently comprises 2 executive, 2 non-executive, and 3 independent non-executive directors, ensuring a reasonable balance and effective checks and balances to protect shareholder and Group interests, with independent non-executive directors contributing diverse experience and expertise for independent opinions and judgment - The Board currently consists of **2 executive directors**, **2 non-executive directors**, and **3 independent non-executive directors**[235](index=235&type=chunk)[237](index=237&type=chunk) - The number of independent non-executive directors accounts for no less than **one-third** of the Board, with one possessing appropriate professional qualifications or expertise in accounting or related financial management[236](index=236&type=chunk)[238](index=238&type=chunk) [Board Committees](index=79&type=section&id=BOARD%20COMMITTEES) The Board established five committees—Audit, Risk Management, Nomination, Remuneration, and Sustainable Development—with clear terms of reference and responsibilities; to further enhance governance, the company abolished the Management Decision Committee in July 2025, established the President's Office, and created the Project Investment Review Committee, Audit Department, and Risk Management and Legal Compliance Department to improve management - The Board has established five committees: the Audit Committee, Risk Management Committee, Nomination Committee, Remuneration Committee, and Sustainable Development Committee[239](index=239&type=chunk) - The primary responsibilities of the Audit Committee include reviewing financial reporting procedures, risk management, and internal control systems[240](index=240&type=chunk)[244](index=244&type=chunk) - The Risk Management Committee is responsible for overseeing risk management processes and reviewing the effectiveness of enterprise-wide risk identification, assessment, mitigation, and monitoring procedures[242](index=242&type=chunk)[245](index=245&type=chunk) - The Nomination Committee is responsible for reviewing the Board's structure, size, and composition, and assessing the independence of independent non-executive directors[247](index=247&type=chunk)[249](index=249&type=chunk) - The Remuneration Committee is responsible for determining the remuneration packages of individual executive directors and senior management[250](index=250&type=chunk)[254](index=254&type=chunk) - The Sustainable Development Committee is responsible for formulating and reviewing ESG objectives, principles, policies, priorities, targets, and measures[252](index=252&type=chunk)[255](index=255&type=chunk) - The company abolished the Management Decision Committee in July 2025 and established the President's Office, responsible for strategic planning, business operating plans, major investment and financing projects, etc[257](index=257&type=chunk)[258](index=258&type=chunk) - Established the Project Investment Review Committee, responsible for evaluating investment projects from the perspectives of strategic alignment, technical feasibility, risk management, legal compliance, and economic viability[257](index=257&type=chunk)[258](index=258&type=chunk) [Model Code for Securities Transactions by Directors](index=84&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Group has adopted the Model Code for Securities Transactions by Directors, as set out in Appendix C3 of the Listing Rules, as the code of conduct for directors' dealings in company securities, with all directors confirming compliance during their tenure for the six months ended June 30, 2025 - The Group adopted the Model Code as set out in Appendix C3 of the Listing Rules as guidance for directors' dealings in company securities[259](index=259&type=chunk)[260](index=260&type=chunk) - All directors confirmed compliance with the Model Code during their tenure for the six months ended June 30, 2025[259](index=259&type=chunk)[260](index=260&type=chunk) [Other Information](index=85&type=section&id=Other%20Information) This section covers changes in director information, interim dividend declaration, share transfer registration suspension, and review of interim financial results [Changes in Information of Directors](index=85&type=section&id=CHANGES%20IN%20INFORMATION%20OF%20DIRECTORS) Since the publication of the 2024 annual report, changes in director information include Mr. Wang Silian's resignation as Everbright Greentech's Non-executive Director and Chairman, Mr. Luan Zusheng's change in position and appointment as Sustainable Development Committee Chairman, and Ms. Qu Li's appointment as Non-executive Director - Mr. Wang Silian resigned as Non-executive Director and Chairman of Everbright Greentech effective July 25, 2025[261](index=261&type=chunk)[264](index=264&type=chunk) - Mr. Luan Zusheng resigned as General Manager of Everbright Environment China effective July 24, 2025, and was appointed Chairman of Everbright Environment China[262](index=262&type=chunk)[264](index=264&type=chunk) - Mr. Luan Zusheng was appointed Chairman of the Sustainable Development Committee, and Ms. Li Shuxian and Professor Zhang Xiang, JP, were appointed as members of the Sustainable Development Committee, all effective May 23, 2025[262](index=262&type=chunk)[264](index=264&type=chunk) - Ms. Qu Li was appointed as a Non-executive Director to replace Mr. Pan Jianyun, effective April 17, 2025[262](index=262&type=chunk)[264](index=264&type=chunk) - Ms. Liang Yanyu was appointed as Company Secretary to replace Ms. Pan Wanling, effective September 15, 2025[263](index=263&type=chunk)[264](index=264&type=chunk) [Interim Dividend](index=86&type=section&id=INTERIM%20DIVIDEND) The Board declared an interim dividend of 15.0 HK cents per share for the six months ended June 30, 2025, an increase from 14.0 HK cents per share in the same period of 2024 - The Board declared an interim dividend of **15.0 HK cents per ordinary share** for the six months ended June 30, 2025 (2024: **14.0 HK cents per ordinary share**)[265](index=265&type=chunk)[269](index=269&type=chunk) - The interim dividend will be paid to shareholders on **Monday, October 20, 2025**[265](index=265&type=chunk)[269](index=269&type=chunk) [Closure of Register of Members](index=86&type=section&id=CLOSURE%20OF%20REGISTER%20OF%20MEMBERS) To determine shareholders' eligibility for the interim dividend, the company will suspend share transfer registration from September 24, 2025, to September 26, 2025; shareholders must register transfers by 4:30 p.m. on September 23, 2025, to receive the dividend - To determine shareholders' eligibility for the interim dividend, the register of members will be closed from **Wednesday, September 24, 2025, to Friday, September 26, 2025**[266](index=266&type=chunk)[270](index=270&type=chunk) - All transfer forms, accompanied by the relevant share certificates, must be lodged with the share registrar by **4:30 p.m. on Tuesday, September 23, 2025**[266](index=266&type=chunk)[270](index=270&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=86&type=section&id=PURCHASE,%20SALE%20OR%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[267](index=267&type=chunk)[271](index=271&type=chunk) [Review of Interim Financial Results](index=86&type=section&id=REVIEW%20OF%20INTERIM%20FINANCIAL%20RESULTS) The Audit Committee has reviewed the company's interim financial results for the six months ended June 30, 2025, and submitted them to the Board for approval - The Audit Committee has reviewed the company's interim financial results for the six months ended June 30, 2025, for Board approval[268](index=268&type=chunk)[272](index=272&type=chunk) [Interim Financial Report](index=87&type=section&id=Interim%20Financial%20Report) This section presents the consolidated income statement, comprehensive income statement, financial position, changes in equity, and cash flow statement for the interim period [Consolidated Income Statement](index=87&type=section&id=CONSOLIDATED%20INCOME%20STATEMENT) For the six months ended June 30, 2025, the Group's revenue was HKD 14.304 billion, profit attributable to equity holders was HKD 2.207 billion, and basic earnings per share were 35.92 HK cents, all decreasing from the prior year Consolidated Income Statement Summary (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 14,303,933 | 15,612,133 | | Gross Profit | 6,330,963 | 6,046,025 | | Profit from Operating Activities | 4,957,123 | 5,441,810 | | Profit Before Tax | 3,702,974 | 3,883,226 | | Profit for the Period | 2,780,152 | 3,002,217 | | Profit Attributable to Equity Holders of the Company | 2,206,751 | 2,453,917 | | Basic Earnings Per Share (HK cents) | 35.92 | 39.95 | [Consolidated Statement of Comprehensive Income](index=88&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HKD 4.608 billion, a significant increase from the prior year, primarily due to positive exchange differences from translating overseas operations Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the Period | 2,780,152 | 3,002,217 | | Exchange differences arising from translation of overseas operations (net of nil tax) | 1,918,650 | (826,694) | | Fair value changes of debt instruments at fair value through other comprehensive income (net of tax) | (90,460) | 154,017 | | Total comprehensive income for the period | 4,608,342 | 2,329,540 | | Attributable to equity holders of the Company | 3,718,487 | 1,867,081 | [Consolidated Statement of Financial Position](index=89&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets were HKD 192.229 billion, total liabilities HKD 121.690 billion, and total equity HKD 70.539 billion, with contract assets being the largest component of non-current assets and net current assets at HKD 11.422 billion Consolidated Statement of Financial Position Summary (As of June 30) | Indicator | 2025-06-30 (HKD thousands) | 2024-12-31 (HKD thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 7,803,279 | 7,948,751 | | Intangible assets | 30,428,714 | 29,839,065 | | Contract assets | 94,451,959 | 93,292,211 | | **Current assets** | | | | Contract assets | 15,071,141 | 13,989,666 | | Debtors, other receivables, deposits and prepayments | 27,064,842 | 24,713,884 | | Cash and cash equivalents | 8,703,677 | 7,895,622 | | **Current liabilities** | | | | Creditors, other payables and accrued expenses | 16,035,569 | 16,372,025 | | Interest-bearing borrowings | 23,687,432 | 18,704,066 | | **Non-current liabilities** | | | | Interest-bearing borrowings | 69,802,779 | 72,965,373 | | Deferred tax liabilities | 10,528,061 | 10,189,024 | | **Total** | | | | Total assets | 192,228,976 | 186,027,024 | | Total liabilities | 121,689,775 | 119,610,448 | | Total equity | 70,539,201 | 66,416,576 | [Consolidated Statement of Changes in Equity](index=92&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, the Group's total equity increased from HKD 66.417 billion on January 1, 2025, to HKD 70.539 billion, primarily driven by profit for the period and exchange differences from translating overseas operations, alongside the issuance and redemption of perpetual capital instruments - As of June 30, 2025, total equity was **HKD 70,539,201 thousand**, an increase from **HKD 66,416,576 thousand** on January 1, 2025[285](index=285&type=chunk) - Profit for the period was **HKD 2,206,751 thousand**, and net exchange differences arising from translation of overseas operations were **HKD 1,587,638 thousand**[285](index=285&type=chunk) - Proceeds from the issuance of perpetual capital instruments were **HKD 3,425,023 thousand**, and redemption of perpetual capital instruments was **HKD 3,455,434 thousand**[285](index=285&type=chunk) [Consolidated Statement of Cash Flows](index=96&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, the Group's net cash from operating activities was HKD 2.975 billion, net cash used in investing activities was HKD 712 million, and net cash used in financing activities was HKD 1.330 billion, with cash and cash equivalents increasing to HKD 8.704 billion at period-end Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Activity Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 2,974,715 | 2,157,406 | | Net cash used in investing activities | (712,373) | (1,004,548) | | Net cash used in financing activities | (1,329,699) | (1,335,130) | | Net increase/(decrease) in cash and cash equivalents | 932,643 | (182,272) | | Cash and cash equivalents at end of period | 8,703,677 | 8,167,978 | [Notes to Unaudited Interim Financial Report](index=98&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes on the company and group information, basis of preparation, changes in accounting policies, operating segment information, revenue, profit before tax, finance costs, income tax, dividends, earnings per share, contract assets, debtors, other receivables, deposits and prepayments, pledged bank deposits, cash and cash equivalents, creditors, other payables and accrued expenses, share capital, commitments, related party transactions, fair value and fair value hierarchy of financial instruments, and approval of the unaudited interim financial report [1.1 Corporate and Group Information](index=98&type=section&id=1.1%20CORPORATE%20AND%20GROUP%20INFORMATION) China Everbright Environment Group Limited, a Hong Kong-incorporated company, primarily operates in environmental energy, water, and green environmental projects, along with related technical services, with China Investment Corporation as its ultimate controlling entity - The company's main businesses include environmental energy, environmental water, green environmental project operations, as well as environmental technology R&D, technical services, engineering design, equipment manufacturing, and sales[301](index=301&type=chunk)[303](index=303&type=chunk) - The company's ultimate controlling entity is China Investment Corporation[304](index=304&type=chunk)[308](index=308&type=chunk) [1.2 Basis of Preparation](index=99&type=section&id=1.2%20BASIS%20OF%20PREPARATION) The unaudited interim financial report is prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using consistent accounting policies with the 2024 annual financial statements, and presented in HKD - The interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 of the Listing Rules[305](index=305&type=chunk)[309](index=309&type=chunk) - The accounting policies and basis of preparation are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[306](index=306&type=chunk)[309](index=309&type=chunk) - The financial report is presented in HKD, with all values adjusted to the nearest thousand[306](index=306&type=chunk)[309](index=309&type=chunk) [1.3 Changes in Accounting Policies](index=100&type=section&id=1.3%20CHANGES%20IN%20ACCOUNTING%20POLICIES) The Group has applied HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability" issued by the HKICPA, but this amendment has no material impact on the interim financial report as the Group has not engaged in relevant foreign currency transactions - The Group has applied the amendment to Hong Kong Accounting Standard 21, "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability"[312](index=312&type=chunk)[315](index=315&type=chunk) - As the Group has not entered into any foreign currency transactions where the foreign currency is not exchangeable into another currency, the amendment has no material impact on the interim financial report[312](index=312&type=chunk)[315](index=315&type=chunk) [2. Operating Segment Information](index=101&type=section&id=2.%20OPERATING%20SEGMENT%20INFORMATION) The Group's business is managed across four reportable segments: environmental energy, environmental water, green environmental project construction and operation, and others, with performance, assets, and liabilities of each segment monitored by top management for resource allocation and performance assessment - The Group is divided into four reportable segments: environmental energy, environmental water, green environmental project construction and operation, and others[316](index=316&type=chunk)[321](index=321&type=chunk) - Segment profit is reported as "profit before interest, tax, depreciation and amortization" (adjusted EBITDA)[323](index=323&type=chunk)[325](index=325&type=chunk) H1 2025 Segment Revenue (from external customers) | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Environmental energy project construction and operation | 7,474,299 | 8,487,864 | | Environmental water project construction and operation | 3,273,854 | 3,352,595 | | Green environmental project construction and operation | 3,399,409 | 3,504,102 | | Others | 156,371 | 267,572 | | **Total** | **14,303,933** | **15,612,133** | H1 2025 Segment Profit (Adjusted EBITDA) | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Environmental energy project construction and operation | 4,237,222 | 4,015,260 | | Environmental water project construction and operation | 1,192,208 | 1,199,661 | | Green environmental project construction and operation | 987,264 | 1,108,460 | | Others | 52,852 | 35,656 | | **Total** | **6,469,546** | **6,359,037** | Segment Assets and Liabilities as of June 30, 2025 | Segment | 2025-06-30 (HKD thousands) | 2024-12-31 (HKD thousands) | | :--- | :--- | :--- | | **Reportable segment assets** | | | | Environmental energy project construction and operation | 107,863,604 | 105,640,806 | | Environmental water project construction and operation | 37,926,832 | 35,609,199 | | Green environmental project construction and operation | 37,688,580 | 36,281,922 | | Others | 2,121,537 | 2,677,463 | | **Reportable segment liabilities** | | | | Environmental energy project construction and operation | 49,588,423 | 48,801,680 | | Environmental water project construction and operation | 23,386,602 | 21,968,288 | | Green environmental project construction and operation | 25,232,274 | 24,668,671 | | Others | 1,661,042 | 1,909,325 | [3. Revenue](index=112&type=section&id=3.%20REVENUE) For the six months ended June 30, 2025, the Group's total revenue was HKD 14.304 billion, comprising HKD 11.788 billion from customer contracts and HKD 2.516 billion from financial income under service concession arrangements, with operating services contributing the largest share and mainland China being the primary customer source Revenue Analysis (For the six months ended June 30) | Revenue Category | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total revenue from contracts with customers | 11,787,573 | 13,043,060 | | Financial income from service concession arrangements | 2,516,360 | 2,569,073 | | **Total revenue** | **14,303,933** | **15,612,133** | - Total revenue from local government authorities in China was **HKD 12.614 billion**[350](index=350&type=chunk)[351](index=351&type=chunk) Revenue from Contracts with Customers by Type of Goods and Services (H1 2025) | Type of goods and services | 2025 (HKD thousands) | | :--- | :--- | | Construction services | 1,844,269 | | Operation services | 9,943,304 | | **Total** | **11,787,573** | Revenue from Contracts with Customers by Geographical Location of Customers (H1

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but operational service revenue has increased, indicating a shift in business structure towards more stable income sources [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved a revenue of 14.304 billion HKD, a year-on-year decrease of 8% [1]. - The net profit attributable to shareholders for H1 2025 was 2.207 billion HKD, down 10% year-on-year [1]. - The gross profit margin improved to 44.26%, an increase of 5.53 percentage points year-on-year, while the net profit margin rose to 19.44%, up 0.84 percentage points [3]. Group 2: Revenue Composition - Operational service revenue reached 9.943 billion HKD in H1 2025, a year-on-year increase of 5%, accounting for 70% of total revenue [1]. - Construction service revenue fell by 49% to 1.844 billion HKD due to a decrease in ongoing projects, representing 13% of total revenue [1]. - Financial income accounted for 17% of total revenue [1]. Group 3: Operational Efficiency - The company has a designed daily processing capacity for municipal solid waste of 162,900 tons, with 196 waste-to-energy projects in operation as of June 30, 2025 [2]. - In H1 2025, the company processed 28.572 million tons of municipal solid waste, with an average power generation of approximately 460 kWh per ton of waste [2]. - The company’s dividend per share for the mid-year was 0.15 HKD, an increase from 0.14 HKD in the same period of 2024, with a payout ratio of 42%, up from 35% year-on-year [2]. Group 4: Future Projections - Revenue forecasts for 2025-2027 are 28.671 billion HKD, 27.640 billion HKD, and 27.591 billion HKD, respectively [3]. - Expected net profits for the same period are 3.666 billion HKD, 3.924 billion HKD, and 4.265 billion HKD, with corresponding price-to-earnings ratios of 7.46, 6.97, and 6.41 [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The company's operational service revenue has increased, optimizing its business structure. In H1 2025, operational service revenue reached 99.43 billion HKD, a year-on-year increase of 5%, accounting for 70% of total revenue [7]. - The company has achieved a significant scale in waste treatment, with a design capacity for municipal waste treatment exceeding 162,900 tons per day, and operational efficiency steadily improving [7]. - The dividend payout ratio has increased year-on-year, with an interim dividend of 0.15 HKD per share in H1 2025, up from 0.14 HKD in the same period of 2024, resulting in a payout ratio of 42% [7]. - The gross profit margin has significantly improved, reaching 44.26% in H1 2025, an increase of 5.53 percentage points year-on-year, while the net profit margin slightly increased to 19.44% [7]. Financial Performance - In H1 2025, the company reported a revenue of 143.04 billion HKD, a decrease of 8% year-on-year, and a net profit attributable to shareholders of 22.07 billion HKD, down 10% year-on-year [6]. - The company expects revenues for 2025-2027 to be 286.71 billion HKD, 276.40 billion HKD, and 275.91 billion HKD respectively, with net profits of 36.66 billion HKD, 39.24 billion HKD, and 42.65 billion HKD [9]. - The projected P/E ratios for 2025-2027 are 7.46, 6.97, and 6.41 respectively, indicating a favorable valuation [9]. Market Performance - The company's stock has outperformed the Hang Seng Index over various time frames, with a 1-month performance of 7.0%, 3-month performance of 18.4%, and a 12-month performance of 31.3% [4].