Financial Performance - Revenue for 2023 decreased by 39.6% to HKD 4,980.16 million compared to HKD 8,246.645 million in 2022[5] - Gross profit for 2023 declined by 17.8% to HKD 2,079.499 million from HKD 2,529.021 million in 2022[5] - EBITDA for 2023 decreased by 13.9% to HKD 2,657.276 million compared to HKD 3,086.236 million in 2022[5] - Net profit for 2023 fell by 24.9% to HKD 1,020.527 million from HKD 1,359.463 million in 2022[5] - Basic earnings per share decreased by 25.0% to 41.2 HK cents in 2023 from 54.9 HK cents in 2022[5] - Revenue decreased by 39.6% to HKD 4,980.2 million, primarily due to a 76.7% reduction in construction income as most waste-to-energy projects have been commissioned[18] - Net profit decreased by 24.9% to HKD 1,020.5 million, impacted by a 10% increase in interest expenses due to rising overseas interest rates and a 7% depreciation of the RMB[18] - Gross margin and EBITDA margin improved to 41.8% and 53.4%, respectively, reflecting higher operational efficiency[18] - Revenue for 2023 decreased by 39.6% to HKD 4,980.2 million compared to HKD 8,246.6 million in 2022[26] - Gross margin significantly improved to 41.8% in 2023 from 30.7% in 2022[26] - EBITDA margin increased to 53.4% in 2023 from 37.4% in 2022[26] - Revenue for 2023 decreased by 39.6% to HKD 4,980.2 million compared to HKD 8,246.6 million in 2022, primarily due to a 76.7% decline in construction revenue to HKD 1,018.3 million as most waste-to-energy projects have been completed[36] - Operational revenue, including electricity sales, waste treatment, and environmental services, increased by 1.6% to HKD 3,771.8 million in 2023[36] - Gross profit margin improved significantly from 30.7% in 2022 to 41.8% in 2023, driven by a lower proportion of construction revenue, which has a lower margin[40] - Net profit attributable to equity holders decreased by 24.9% to HKD 1,001.3 million in 2023, with a 18.3% decline excluding interest expense and exchange rate impacts[47] - Revenue for 2023 decreased to 4,980,160 thousand HKD from 8,246,645 thousand HKD in 2022, representing a significant decline[197] - Gross profit for 2023 was 2,079,499 thousand HKD, down from 2,529,021 thousand HKD in 2022[197] - Operating profit for 2023 was 1,644,678 thousand HKD, compared to 2,056,723 thousand HKD in 2022[197] - Net interest expense for 2023 was 657,795 thousand HKD, up from 599,784 thousand HKD in 2022[197] - Profit before tax for 2023 was 1,140,273 thousand HKD, down from 1,646,873 thousand HKD in 2022[197] - Net profit for 2023 was 1,020,527 thousand HKD, compared to 1,359,463 thousand HKD in 2022[197] - Basic earnings per share for 2023 were 41.2 HK cents, down from 54.9 HK cents in 2022[197] - Other comprehensive loss for 2023 was 176,365 thousand HKD, compared to 977,155 thousand HKD in 2022[198] - Total comprehensive income for 2023 was 844,162 thousand HKD, up from 382,308 thousand HKD in 2022[198] - The company's equity holders' share of total comprehensive income for 2023 was 830,407 thousand HKD, compared to 402,246 thousand HKD in 2022[198] Assets and Liabilities - Total assets increased by 4.9% to HKD 27,075.156 million in 2023 from HKD 25,820.181 million in 2022[7] - Total liabilities rose by 3.5% to HKD 17,406.479 million in 2023 from HKD 16,816.275 million in 2022[7] - Total bank borrowings increased by 2.7% to HKD 13,945.095 million in 2023 from HKD 13,582.329 million in 2022[7] - Equity attributable to owners of the company grew by 6.8% to HKD 9,298.523 million in 2023 from HKD 8,703.034 million in 2022[7] - Total liabilities to total assets ratio decreased by 0.8 percentage points to 64.3% in 2023 from 65.1% in 2022[7] - The company's debt ratio decreased by 0.8 percentage points to 64.3%, reflecting improved financial stability[18] - Total assets increased to HKD 27,075,156 thousand in 2023 from HKD 25,820,181 thousand in 2022, reflecting growth in the company's asset base[199] - Non-current assets rose to HKD 22,115,092 thousand in 2023, up from HKD 21,341,396 thousand in 2022, driven by increases in property, plant, and equipment[199] - Current assets grew to HKD 4,960,064 thousand in 2023, compared to HKD 4,478,785 thousand in 2022, with cash and cash equivalents reaching HKD 1,897,648 thousand[199] - Total equity increased to HKD 9,668,677 thousand in 2023 from HKD 9,003,906 thousand in 2022, indicating improved shareholder value[199] - Non-current liabilities decreased to HKD 12,591,501 thousand in 2023 from HKD 12,980,235 thousand in 2022, primarily due to a reduction in bank borrowings[200] - Current liabilities rose to HKD 4,814,978 thousand in 2023, up from HKD 3,836,040 thousand in 2022, driven by higher trade payables and bank borrowings[200] - Net current assets declined to HKD 145,086 thousand in 2023 from HKD 642,745 thousand in 2022, reflecting increased short-term obligations[200] - Total liabilities and equity stood at HKD 27,075,156 thousand in 2023, aligning with the total assets figure[200] Waste-to-Energy Operations - The total daily waste processing capacity of the company's operational waste-to-energy plants is 31,840 tons, with an additional 10,500 tons in the planning phase[8][9] - The total installed power generation capacity of operational plants is 1,036 MW, with an additional 222.5 MW in the planning phase[8][9] - The highest waste processing fee is RMB 250/ton at the Shanghai Baoshan plant, while the lowest is RMB 49/ton at the Zaozhuang plant (under negotiation)[8] - The largest single-site waste processing capacity is 3,800 tons/day at the Shanghai Baoshan plant[8] - The largest single-site power generation capacity is 126 MW at the Shanghai Baoshan plant[8] - The company has 36 waste-to-energy projects across China, with 27 currently operational and 9 in the planning phase[8][9] - The average waste processing fee across all operational plants is approximately RMB 95.6/ton[8][9] - The Dongguan region has the highest concentration of operational plants, with 6 facilities processing a total of 10,550 tons/day[8] - The company has 15 projects with second-phase expansions planned, potentially adding 7,800 tons/day of processing capacity[8][9] - The smallest operational plant is the Xuwen plant with a capacity of 750 tons/day and 18 MW power generation[8] - The company's waste-to-energy projects have a total daily processing capacity of 54,540 tons, with 33 projects operational and a daily capacity of 43,690 tons[19] - The company processed approximately 16,615,728 tons of waste, an 18.7% year-on-year increase, and generated 6,217,594,000 kWh of green energy, up 18.4%[19] - The company's carbon reduction projects, including the Yingkou waste-to-energy project, are expected to reduce 245,000 tons of CO2 equivalent annually[12] - The company's waste incineration volume increased by 27.4% year-on-year to 8,621,000 tons in 2023[20] - The company's Yingkou waste incineration power generation project obtained registration approval for certified carbon emission reductions, expected to reduce 245,000 tons of CO2 equivalent annually[20] - The company processed 16,615,728 tons of waste in 2023, an increase of 18.7% from 13,993,553 tons in 2022[26] - Electricity generation from green energy reached 6,217,594,000 kWh in 2023, up 18.4% from 5,249,545,000 kWh in 2022[26] - Steam sales increased by 223.8% to 136,000 tons in 2023 from 42,000 tons in 2022[26] - The company's total daily municipal solid waste treatment capacity reached 54,540 tons across 36 projects[27] - In South China, the company processed 9,623,321 tons of waste in 2023, up 8.5% from 8,872,108 tons in 2022[29] - The company sold 5,349,441 MWh of electricity in 2023, an increase of 18.0% from 4,532,048 MWh in 2022[29] - The company signed a 3-year waste treatment service agreement to transport 200,000 tons of waste to a waste-to-energy plant[34] Contracts and Projects - The company secured a 25-year contract for the Quyang County urban and rural sanitation and waste compression, transfer, and treatment project, valued at RMB 3,256 million[11] - The company won a 10-year contract extension for the North Lantau and Outlying Islands Waste Transfer Facilities, valued at HKD 2,818 million[12] - The company secured new contracts worth over RMB 8,000 million in the environmental sanitation sector during the year[20] - The company successfully bid for multiple projects, including the first waste transfer station contract in Hong Kong and the first environmental sanitation project in Anhui Province[20] - The company secured a 25-year contract worth RMB 3,256 million for a waste treatment project in Quyang County, Hebei Province, marking its first environmental project exceeding RMB 3,000 million[35] - In January 2024, the company won a 25-year urban management service project in Dangshan County, Anhui Province, its first environmental project in Anhui[35] - The company's joint venture was awarded a 10-year contract extension worth HKD 2,818 million for waste transfer facilities in Hong Kong[35] Corporate Governance and Board Activities - The company declared a final dividend of 3.2 HK cents per share, with a total annual dividend of 8.1 HK cents per share[18] - The company declared an interim dividend of 4.9 HK cents per ordinary share for 2023, down from 6.2 HK cents in 2022[66] - A final dividend of 3.2 HK cents per ordinary share is proposed for 2023, subject to shareholder approval at the AGM on June 21, 2024[66] - The company's Compensation Committee held 2 meetings in 2023 (March and September) to review and approve senior management salary adjustments, determine executive director compensation policies, and propose new director compensation[92] - Senior management compensation for 2023 ranged from HKD 1,000,001 to HKD 2,000,000 for 7 members and HKD 4,000,001 to HKD 5,000,000 for 1 member[93] - The company's gender diversity ratio as of December 31, 2023, was 58:42 (male:female)[94] - The Nomination Committee is responsible for reviewing the Board's structure, size, and composition annually, proposing changes to align with company strategy, and recommending director appointments or reappointments[94] - The Nomination Committee evaluates candidates based on their contribution to Board diversity, time commitment, and effectiveness in areas such as strategy, policy, performance, and accountability[95] - Independent non-executive director candidates are assessed for independence based on HKEX Listing Rule 3.13 criteria and their professional qualifications or financial management experience[96] - The Compensation Committee's responsibilities include recommending overall remuneration policies, approving performance-based pay, and ensuring termination payments are consistent with contracts and reasonable[91] - The Nomination Committee follows a formal, transparent process for director selection, appointment, and reappointment, with the Board having final decision-making authority[95] - The Compensation Committee reviews and approves compensation for loss or termination of office, ensuring it aligns with contractual terms and is fair and reasonable[91] - The Nomination Committee ensures compliance with Board requirements, company constitutional documents, and applicable laws or listing rules[96] - The Audit Committee was non-compliant with Listing Rule 3.21, having only two independent non-executive directors instead of the required three[97] - The Nomination Committee was non-compliant with Listing Rule 3.27A, lacking a chairman and having only two independent non-executive directors[97] - The Board adopted a diversity policy, considering factors such as gender, age, cultural and educational background, race, professional experience, skills, knowledge, and tenure[98] - The Board aims for an appropriate gender balance and a suitable proportion of directors with direct experience in the Group's core markets[98] - The Nomination Committee held two meetings in 2023 to consider retiring directors and recommend new directors[100] - The Corporate Governance Committee includes members such as Mr. Chan Kam Kwan, Ms. Li Wing Yee, Professor Sha Zhenquan, and Mr. Li Songhua[101] - The Corporate Governance Committee held one meeting in March 2023 to review corporate governance policies and compliance[101] - The Strategy and Sustainability Committee includes members such as Mr. Lai Chun Tung, Mr. Lui Ting Cheong, and Professor Sha Zhenquan[102] - The Strategy and Sustainability Committee held one meeting in March 2023 to review strategic development reports and discuss compliance with Listing Rules[103] - The Board believes it has achieved diversity, with a composition that considers age, gender, cultural and educational background, and professional experience[99] - The company's internal control and risk management systems are effective and sufficient, as confirmed by the Board of Directors and the Audit Committee[104] - The company has established mechanisms to ensure the independence of the Board of Directors, including access to independent professional advice[105] - The company has implemented strict procedures for handling and disclosing insider information to ensure compliance with regulatory requirements[106] - The company has a whistleblowing policy in place, with complaints being handled within 5 working days for physical submissions and 3 working days for electronic submissions[107] - The company has an anti-corruption policy that prohibits bribery, corruption, extortion, and embezzlement, and supports compliance with relevant laws and regulations[109] - The Board of Directors is responsible for preparing the financial statements, ensuring they reflect the company's financial position, performance, and cash flows accurately[110] - The company secretary, who reports to the Chairman, is responsible for providing governance advice to the Board and has completed at least 15 hours of relevant professional training[111] - Shareholders holding at least 10% of the company's paid-up share capital can request the convening of a general meeting, with the company covering reasonable expenses if the Board fails to arrange the meeting[112] - The company has approved and adopted a dividend policy, aiming to distribute dividends annually, subject to considerations of distributable profits, financial condition, liquidity, investment needs, and retained earnings for future development[114] - The 2023 Annual General Meeting (AGM) saw all proposed resolutions, including the re-election of retiring directors, passed by shareholders through a poll vote[115] - The company has enhanced investor relations by holding multiple meetings with institutional investors, fund managers, and financial analysts in 2023[116] - The company plans to revise its Memorandum and Articles of Association to comply with the latest regulatory requirements for electronic dissemination of corporate communications, effective from December 31, 2023[117] - The proposed amendments to the Memorandum and Articles of Association will be presented for shareholder approval at the 2024 AGM on June 21, 2024[117] - Li Jundong, aged 49, has been serving as an executive director of the company since 2014 and is responsible for overseeing the overall strategy and major corporate and operational decisions of the group[119] - Feng Jun, aged 60, has over 30 years of experience in capital market operations and serves as the Chief Representative of Shanghai Representative Office of Shanghai Industrial Holdings and Chairman and CEO of Shanghai Overseas Co., Ltd[120] - Lu Dingchang, aged 44, has been a non-executive director since 2014 and is the Managing Director of Olympus Capital Holdings Asia, responsible for environmental investments in Asia[120] - Sha Zhenquan, aged 64, has been an independent non-executive director since 2014 and is a professor at the School of Business Administration, South China University of Technology[121] - Chen Jinkun, aged 50, has been an independent non-executive director since 2014 and is a certified public accountant licensed by the Washington State Board of Accountancy[121] - Li Songhua, aged 58, has been an independent non-executive director since 2023 and is a partner at Nixon Peabody LLP, specializing in corporate finance and cross-border acquisitions[122] - Song Lanqun, aged 56, has been the Vice President and Chief Engineer of the group since 2014, responsible for operational safety and compliance[123] - Chen Bo, aged 48, has been the Vice President and
粤丰环保(01381) - 2023 - 年度财报