Financial Performance - The group achieved a total revenue of RMB 11,308,811,000, a decrease of 6% year-on-year, and a net profit attributable to shareholders of RMB 1,122,088,000, down 18% year-on-year[5]. - The company's net profit attributable to shareholders decreased by 18% to RMB 1,122.1 million due to a 6% decline in revenue to RMB 11,308.8 million, primarily from reduced contributions from BOT water service projects[10]. - Total revenue for the group reached RMB 12,083.1 million, a decrease of 6% compared to RMB 12,083.1 million in the previous period[21]. - The total revenue for the period was RMB 4,176,700,000, with a net profit attributable to shareholders of RMB 2,091,700,000[33]. - The net profit for the period was RMB 1,767,787, compared to RMB 1,957,647 in the previous year, indicating a decrease of approximately 9.7%[76]. - The total comprehensive income for the period was RMB 1,261,091, significantly higher than RMB 196,109 in the same period of 2023, showing a substantial increase[77]. - The company reported a net financial cost of RMB 1,542.6 million, impacting overall profitability[18]. - The company reported a total comprehensive income of RMB (30,965) thousand for the period, reflecting a significant change from the previous year's comprehensive income[84]. Revenue Breakdown - The revenue from water treatment services in China reached RMB 4,176.7 million, contributing to a gross margin of 37%[11]. - The revenue from urban resource services amounted to RMB 2,687.8 million, with a gross margin of 24%[13]. - The total revenue from technology services and equipment sales was RMB 1,151.4 million, with a gross margin of 10%[13]. - Revenue from construction BOT water projects was RMB 2,903.9 million, a significant decrease of 57% compared to the previous period[23]. - The revenue from urban resource services increased by 20% to RMB 2,687.8 million compared to RMB 2,236.2 million in the previous period[23]. - Revenue from BOT water projects decreased to RMB 1,257,600,000, with profit attributable to shareholders dropping to RMB 159,200,000 due to a focus on light-asset projects[43]. - Revenue from wastewater and recycled water treatment services was RMB 4,384,504,000, an increase from RMB 4,200,741,000 in the previous year[104]. Operational Capacity and Projects - The design capacity of new projects reached 510,350 tons/day, contributing to a total design capacity of 44,000,174 tons/day[5]. - The group achieved a total daily processing capacity of 44,000,174 tons across 1,457 water treatment facilities as of June 30, 2024[26]. - The group secured approximately 410,000 tons/day of new light asset projects, including recycled water sales and entrusted operations, in the first half of 2024[5]. - The company established two service concession agreements for multiple township sewage treatment projects, with a total daily processing capacity of 24,500 tons[26]. - The company has a total of 1,217 sewage treatment plants and 72 recycled water treatment plants in operation[27]. - The company operates 334 sewage treatment plants in the southern region of China with a total design capacity of 4,605,005 tons, generating revenue of RMB 870,800,000 and a profit of RMB 402,500,000[34]. - In the western region of China, the company operates 323 sewage treatment plants with a total design capacity of 2,844,810 tons, achieving revenue of RMB 783,600,000 and a profit of RMB 350,800,000[35]. Strategic Initiatives - The group is committed to integrating technology development into its platform strategy to drive asset-light transformation and improve core competitiveness[4]. - The company aims to enhance its "new content," "green content," and "gold content" as part of its strategic focus on asset-light transformation in 2024[9]. - The group is enhancing its pricing management capabilities to support water service companies in adjusting water prices to reflect true supply costs[5]. - The group has implemented a systematic review of regional integration trials, advancing changes in 18 regions to enhance operational capabilities and support the upgrade of the "cloud-chain-end" operational model[7]. - The company is pushing for digital transformation to integrate business and financial systems, supporting data analysis for refined management[8]. Financial Management and Costs - The company achieved a historical low in bond financing rates with a 3-year Panda bond issuance, effectively reducing financial costs and maintaining reasonable liquidity[7]. - The company reported a decrease in cash and cash equivalents to RMB 8,953,739 from RMB 10,215,161 at the end of 2023, a decline of about 12.4%[80]. - The company incurred RMB 346,668 thousand for the purchase of property, plant, and equipment, a decrease from RMB 575,981 thousand in the same period of 2023[86]. - The company recognized a tax payment of RMB 418,860 thousand for corporate income tax in mainland China, compared to RMB 362,901 thousand in the previous year[86]. - The company reported a total of RMB 60,570,637,000 in total settled accounts as of June 30, 2024, up from RMB 59,037,045,000[117]. Shareholder Returns and Dividends - The group plans to distribute an interim cash dividend of HKD 0.07 per share to reward shareholders for their continued support[5]. - The interim cash dividend declared on August 28, 2024, was HKD 0.07 per share, totaling approximately RMB 642,942,000, an increase from RMB 632,936,000 in the previous year[110]. - The company declared cash dividends during the period, details of which are disclosed in note 7[76]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the unaudited interim results for the six months ending June 30, 2024[185]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the six months ending June 30, 2024[183]. - The board is responsible for assessing risks and ensuring effective risk management and internal control systems are in place[186]. - The risk management center is tasked with establishing mechanisms to identify, control, and manage risks faced by the group[187]. Related Party Transactions and Shareholding - The group has established ongoing related party transactions as defined under the listing rules[138]. - The major shareholder, Beikong Environment, holds 4,121,604,070 shares, representing approximately 41.03% of the company's issued share capital[162]. - The shareholding structure indicates significant control by Beijing Holdings and its subsidiaries, with a combined ownership of approximately 41.54%[162].
北控水务集团(00371) - 2024 - 中期财报