Financial Performance - The group recorded revenue of approximately RMB 2.687769 billion for the six months ended June 30, 2024, representing an increase of about 20.2% compared to RMB 2.236208 billion for the same period in 2023[1]. - The profit attributable to shareholders for the six months ended June 30, 2024, was approximately RMB 128.499 million, a decrease of about 24.5% from RMB 170.153 million for the same period in 2023[2]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were approximately RMB 3.61 cents, down from RMB 4.73 cents for the same period in 2023[2]. - Gross profit for the six months ended June 30, 2024, was RMB 556.846 million, compared to RMB 514.758 million for the same period in 2023[2]. - The net profit attributable to the owners of the parent company for the six months ended June 30, 2024, was RMB 202,121 thousand, up from RMB 188,938 thousand in the same period of 2023, indicating a growth of approximately 6.4%[14]. - The company reported a pre-tax profit of RMB 209,906 thousand for the six months ended June 30, 2024, down from RMB 264,730 thousand in the same period of 2023, showing a decline of about 20.7%[16]. - The company's total tax expense for the six months ended June 30, 2024, was RMB 58,485,000, a decrease of 13.0% compared to RMB 67,232,000 for the same period in 2023[20]. Dividends and Share Repurchase - The interim dividend declared for the six months ended June 30, 2024, was HKD 0.012 per share, with a payout ratio of approximately 30.2%[1]. - The company declared an interim dividend of HKD 0.012 per share, totaling approximately HKD 42,680,000 (equivalent to RMB 38,838,000), consistent with the previous year's dividend[22]. - The company repurchased 39,700,000 shares at a total cost of approximately HKD 22,569,000 (equivalent to RMB 20,746,000) during the six months ended June 30, 2024[31]. - The company repurchased a total of 39,700,000 ordinary shares at a total cost of HKD 22,569,180 during the reporting period, with the highest price per share being HKD 0.60 and the lowest being HKD 0.51[60]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 8.947303 billion, an increase from RMB 8.126792 billion as of December 31, 2023[4]. - Current assets totaled RMB 5.009090 billion as of June 30, 2024, compared to RMB 4.285259 billion as of December 31, 2023[4]. - Current liabilities increased to RMB 3.218904 billion as of June 30, 2024, from RMB 2.593940 billion as of December 31, 2023[5]. - The net asset value as of June 30, 2024, was RMB 3.919887 billion, compared to RMB 3.852048 billion as of December 31, 2023[5]. - Trade receivables increased to RMB 3,005,114,000 as of June 30, 2024, compared to RMB 2,536,528,000 as of December 31, 2023, reflecting a growth of 18.4%[23]. - The company reported total bank borrowings of RMB 2,861,893,000 as of June 30, 2024, an increase of 11.7% from RMB 2,562,139,000 as of December 31, 2023[29]. - The company’s trade payables totaled RMB 593,951,000 as of June 30, 2024, up from RMB 437,062,000 as of December 31, 2023, indicating a rise of 36.0%[28]. - The net debt ratio increased to 41.5% as of June 30, 2024, from 38.5% as of December 31, 2023, primarily due to an increase in net debt[50]. Segment Performance - The company operates three reportable segments: urban services, hazardous waste treatment, and other services including electronic waste processing[9]. - Urban services recorded total revenue of approximately RMB 2.402 billion for the six months ended June 30, 2024, compared to RMB 1.907 billion for the same period in 2023, reflecting a 25.5% increase[41]. - The hazardous waste treatment business generated revenue of RMB 228,956,000, a decrease of 15.1% compared to RMB 269,688,000 in the previous year[32]. - The group recorded a net loss attributable to shareholders of RMB 33,128,000 for the hazardous waste treatment segment, compared to a profit of RMB 13,578,000 in the previous year[32]. - Revenue from hazardous waste treatment services decreased from RMB 269.7 million for the six months ended June 30, 2023, to RMB 228.96 million for the same period in 2024, a decline of 15.1%[43]. Operational Highlights - The company focuses on urban environmental governance services, hazardous waste treatment services, and electronic waste processing as its main business activities[9]. - The number of urban service projects increased to 224, with 186 in mainland China and 38 in Hong Kong as of June 30, 2024[35]. - The group secured 10 new urban service projects through public bidding, with a total contract value of approximately RMB 2.9 billion and estimated annual revenue of RMB 405.1 million[36]. - The group aims to expand its urban management capabilities by integrating various government services and developing a smart city management platform[35]. - The total contract value for the urban steward projects is over RMB 8 billion, with an annual service fee of approximately RMB 1.2 billion[36]. Expenses and Costs - Administrative expenses increased to RMB 282.2 million for the six months ended June 30, 2024, compared to RMB 211.5 million in the same period last year, driven by salary, wage, and office expense increases due to ongoing business expansion[48]. - The company’s financing costs for the six months ended June 30, 2024, amounted to RMB 55,846 thousand, compared to RMB 55,671 thousand in the same period of 2023, indicating a marginal increase of about 0.3%[18]. - The company’s depreciation and amortization expenses for the six months ended June 30, 2024, were RMB 285,799 thousand, compared to RMB 265,136 thousand in the same period of 2023, indicating an increase of approximately 7.8%[14]. Governance and Compliance - The financial data for the six months ended June 30, 2024, is unaudited but has been reviewed by the audit committee[6]. - The audit committee reviewed the interim results for the six months ended June 30, 2024, and confirmed that appropriate accounting policies were adopted and all applicable regulations were complied with[64]. - The company has adhered to the corporate governance code and principles, ensuring transparency and accountability in its operations[62]. - The company has not engaged in any vendor financing arrangements, thus the recent accounting standard revisions have no impact on the interim financial data[8]. Market and Economic Conditions - The company has not experienced any impact on its financial position or performance due to the adoption of revised Hong Kong Financial Reporting Standards[8]. - The company has no significant credit concentration risk due to a large and diversified customer base[24]. - The company has not adopted any derivative financial instruments to hedge its foreign currency risk, which may affect the group's net asset value due to fluctuations in exchange rates[55]. - There have been no significant events affecting the group from June 30, 2024, to the date of this announcement[61].
北控城市资源(03718) - 2024 - 中期业绩