上海实业环境(00807) - 2024 - 中期业绩

Performance Review The group's key financial data for H1 2024 shows a decrease in net profit and total revenue, with healthy cash and cash equivalents Group's Key Financial Data for H1 2024 | Metric | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | | Net Profit Attributable to Equity Holders | 321,400 | -14.8% | | Total Revenue | 3,323,500 | -17.3% | | Gross Profit | 1,277,400 | -11.2% | - As of June 30, 2024, the group's cash and cash equivalents reached RMB 2.85 billion, indicating a healthy level[5] Review of Interim Results The Audit Committee has reviewed the company's unaudited consolidated interim results for the six months ended June 30, 2024 - The Audit Committee has reviewed the company's unaudited consolidated interim results for the six months ended June 30, 2024[6] Corporate Governance The company complied with all code provisions of the Corporate Governance Code during the six months ended June 30, 2024 - For the six months ended June 30, 2024, the company has complied with all code provisions of the Code on Corporate Governance in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[6] Condensed Interim Consolidated Statement of Comprehensive Income This statement presents the group's comprehensive income for the six months ended June 30, 2024, detailing revenue, expenses, and profit Condensed Interim Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30, 2024) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,323,515 | 4,018,849 | -17.3 | | Cost of Sales | (2,046,128) | (2,581,137) | -20.7 | | Gross Profit | 1,277,387 | 1,437,712 | -11.2 | | Other Income | 42,854 | 58,187 | -26.4 | | Other Gains and Losses | 2,481 | 10,712 | -76.8 | | Selling and Distribution Expenses | (37,966) | (37,883) | 0.2 | | Administrative Expenses | (400,052) | (415,742) | -3.8 | | Finance Costs | (1,033) | 18,728 | N.M. | | Share of Results of Joint Ventures | 8,755 | 3,660 | 139.2 | | Income Tax Expense | (143,701) | (218,744) | -34.3 | | Profit for the Period | 508,217 | 593,632 | -14.4 | | Profit for the Period Attributable to Owners of the Company | 321,446 | 377,351 | -14.8 | | Basic EPS (RMB cents) | 12.48 | 14.65 | -14.8 | | Diluted EPS (RMB cents) | 12.48 | 14.65 | -14.8 | Condensed Interim Statement of Financial Position This statement provides a snapshot of the group's financial position as of June 30, 2024, including assets, liabilities, and equity Condensed Interim Statement of Financial Position (Group, as of June 30, 2024) | Metric | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Total Current Assets | 10,165,073 | 9,270,986 | 9.6 | | Total Non-Current Assets | 33,147,052 | 33,336,954 | -0.6 | | Total Assets | 43,312,125 | 42,607,940 | 1.6 | | Liabilities | | | | | Total Current Liabilities | 8,958,063 | 10,258,345 | -12.7 | | Total Non-Current Liabilities | 18,660,614 | 17,059,139 | 9.4 | | Total Liabilities | 27,618,677 | 27,317,484 | 1.1 | | Equity | | | | | Equity Attributable to Owners of the Company | 10,352,738 | 10,131,507 | 2.2 | | Non-Controlling Interests | 5,340,710 | 5,158,949 | 3.5 | | Total Equity | 15,693,448 | 15,290,456 | 2.6 | Condensed Interim Consolidated Statement of Cash Flows This statement outlines the group's cash flows from operating, investing, and financing activities for the six months ended June 30, 2024 Condensed Interim Consolidated Statement of Cash Flows (Group, For the Six Months Ended June 30, 2024) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | (64,417) | 929,789 | | Net Cash Used In Investing Activities | (384,661) | (966,674) | | Net Cash From (Used In) Financing Activities | 422,042 | (275,316) | | Net Decrease in Cash and Cash Equivalents | (27,036) | (312,201) | | Cash and Cash Equivalents at End of Period | 2,852,035 | 2,204,910 | - Net cash used in operating activities was RMB 64.4 million, reflecting higher working capital requirements during the period[78] - Net cash used in investing activities was RMB 384.7 million, primarily for the purchase of property, plant and equipment and intangible assets[78] - Net cash generated from financing activities was RMB 422.0 million, mainly due to increased net proceeds from bank and other borrowings, partially offset by repayment of bank and other borrowings and interest payments[78] Condensed Interim Statement of Changes in Equity This statement details the changes in the group's equity attributable to owners and non-controlling interests for the six months ended June 30, 2024 Condensed Interim Statement of Changes in Equity (Group, as of June 30, 2024) | Metric | June 30, 2024 (RMB thousands) | Jan 1, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 10,352,738 | 10,131,507 | | Non-Controlling Interests | 5,340,710 | 5,158,949 | | Total Equity | 15,693,448 | 15,290,456 | - For H1 2024, profit for the period attributable to owners of the company was RMB 321.4 million, and profit attributable to non-controlling interests was RMB 186.8 million[8] - Dividends declared to equity holders amounted to RMB 82.4 million[17] Notes to the Condensed Interim Consolidated Financial Statements This section provides detailed explanatory notes to the condensed interim consolidated financial statements, covering various accounting aspects 1. General Information The company is dual-listed in Singapore and Hong Kong, with primary operations in China and no change in principal business - The company is dual-listed in Singapore and Hong Kong, and its principal business has not changed[24] - The group's primary operating activities are conducted in China, and the financial statements are presented in RMB[25] 2. Basis of Preparation The interim financial statements are prepared in accordance with Singapore International Financial Reporting Standard 1-34 and HKEX Listing Rules, with consistent accounting policies 2.1 Amendments to Major Accounting Policies of the Group The group has not changed its accounting policies or made retrospective adjustments due to new standard amendments - The group has not changed its accounting policies or made retrospective adjustments due to the adoption of new standard amendments[26] 2.2 Estimates Management made key judgments and estimates regarding receivables under service concession arrangements and goodwill impairment, concluding no impairment provision is needed - Management made key judgments and estimates regarding receivables under service concession arrangements and goodwill impairment assessment, concluding no impairment provision is needed[27] 2.3 Financial Risk Management Objectives and Policies The group faces foreign currency, interest rate, liquidity, and credit risks, with unchanged risk management policies since year-end - The group faces foreign currency, interest rate, liquidity, and credit risks, with risk management policies unchanged since year-end[28] 3. Seasonal Business The group's operations are not significantly affected by seasonal or cyclical factors - The group's operations are not significantly affected by seasonal or cyclical factors[29] 4. Segment Information The group operates in water and sludge treatment, water supply, and waste-to-energy segments, with performance assessed by operating profit - The group's reportable segments include water and sludge treatment, water supply, and waste-to-energy[30] - Segment performance is assessed based on operating profit, while financing and income tax are managed on a group basis[30] Segment Revenue and Operating Profit (For the Six Months Ended June 30, 2024) | Segment | Revenue (RMB thousands) | Operating Profit (RMB thousands) | | :--- | :--- | :--- | | Water and Sludge Treatment | 2,439,599 | 763,058 | | Water Supply | 554,733 | 67,878 | | Waste-to-Energy | 194,847 | 103,303 | | Other Segments | 134,336 | 38,655 | | Total | 3,323,515 | 934,239 | Segment Assets and Liabilities (As of June 30, 2024) | Segment | Assets (RMB thousands) | Liabilities (RMB thousands) | | :--- | :--- | :--- | | Water and Sludge Treatment | 30,365,223 | 12,430,022 | | Water Supply | 5,665,992 | 2,562,473 | | Waste-to-Energy | 5,645,519 | 3,929,517 | | Other Segments | 397,488 | 1,365,870 | | Unallocated | 450,676 | 7,330,795 | | Total | 43,312,125 | 27,618,677 | 5. Revenue Total revenue for H1 2024 was RMB 3.3235 billion, primarily from service concession arrangements and construction income Revenue Breakdown (For the Six Months Ended June 30, 2024) | Revenue Type | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Construction Revenue | 562,225 | 1,287,000 | | Service Concession Arrangement O&M Revenue | 1,908,809 | 1,859,029 | | Service Concession Arrangement Finance Income | 616,762 | 642,202 | | Service Revenue | 101,383 | 95,068 | | Other Income | 134,336 | 135,550 | | Total Revenue | 3,323,515 | 4,018,849 | 6. Income Tax Expense Income tax expense for H1 2024 was RMB 143.7 million, a 34.3% decrease, with Chinese subsidiaries benefiting from tax incentives Income Tax Expense (For the Six Months Ended June 30, 2024) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Tax: Current Year | 126,970 | 134,471 | | Under-provision in Prior Periods | 512 | 4,082 | | Deferred Tax: Current Year | 18,575 | 79,023 | | Under- (Over-) provision in Prior Periods | (2,356) | 1,168 | | Total Income Tax Expense | 143,701 | 218,744 | - Chinese subsidiaries are subject to a 25% corporate income tax rate, with some engaged in public infrastructure projects enjoying tax exemption for the first three years and a 50% reduction for the subsequent three years[37] 7. Profit for the Period Profit for the period is influenced by depreciation, amortization, finance costs, and share of results from associates/joint ventures Key Deductions/Additions to Profit for the Period (For the Six Months Ended June 30, 2024) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 27,294 | 16,921 | | Amortization of Intangible Assets | 238,987 | 194,723 | | Depreciation of Right-of-Use Assets | 9,470 | 5,123 | | Finance Income | (14,119) | (14,317) | | Finance Costs | 400,052 | 415,742 | | Share of Results of Associates | (8,755) | (3,660) | | Share of Results of Joint Ventures | 1,033 | (18,728) | 8. Trade and Other Receivables Trade receivables increased by 26.4% to RMB 5.081 billion as of June 30, 2024, with a significant portion over 365 days Aging Analysis of Trade Receivables (As of June 30, 2024) | Aging | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 915,817 | 1,133,684 | | 31 to 60 days | 372,030 | 382,217 | | 61 to 90 days | 364,417 | 348,617 | | 91 to 180 days | 887,776 | 684,525 | | 181 to 365 days | 1,182,515 | 554,497 | | Over 365 days | 1,358,935 | 915,629 | | Total | 5,081,490 | 4,019,169 | 9. Receivables under Service Concession Arrangements Receivables under service concession arrangements totaled RMB 23.068 billion as of June 30, 2024, with a large non-current portion Receivables under Service Concession Arrangements (As of June 30, 2024) | Type | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Portion | 934,509 | 887,152 | | Non-Current Portion | 22,133,507 | 22,374,059 | | Total | 23,068,016 | 23,261,211 | Expected Collection Schedule (As of June 30, 2024) | Schedule | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 934,509 | 887,152 | | 2 to 5 years | 3,902,784 | 3,671,624 | | Over 5 years | 18,230,723 | 18,702,435 | 10. Intangible Assets Additions to intangible assets significantly decreased to RMB 288.6 million in H1 2024 compared to the prior year - Additions to intangible assets for H1 2024 amounted to RMB 288.6 million, a significant decrease from RMB 1.003 billion in the same period of 2023[42] 11. Trade and Other Payables Trade payables decreased by 14.2% to RMB 1.997 billion as of June 30, 2024, with a substantial portion over 365 days Aging Analysis of Trade Payables (As of June 30, 2024) | Aging | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 520,897 | 702,713 | | 31 to 60 days | 57,841 | 93,223 | | 61 to 90 days | 51,754 | 57,274 | | 91 to 180 days | 164,968 | 124,272 | | 181 to 365 days | 263,099 | 641,800 | | Over 365 days | 938,283 | 705,475 | | Total | 1,996,842 | 2,324,757 | 12. Bank and Other Borrowings Total bank and other borrowings amounted to RMB 21.226 billion as of June 30, 2024, secured by various assets and corporate guarantees Bank and Other Borrowings (Group, as of June 30, 2024) | Type | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Payable within 1 year or on demand | 5,129,045 | 5,767,008 | | Payable after 1 year | 16,097,289 | 14,491,791 | | Total | 21,226,334 | 20,258,799 | - Bank and other borrowings are secured by concession agreements, trade receivables (related to concession agreements) collection rights, assets of subsidiaries, assets of third-party companies, and/or corporate guarantees from Shanghai Industrial Environment Holdings Co., Ltd[45] 13. Share Capital As of June 30, 2024, the issued and fully paid ordinary shares totaled 2,575,665,726 shares, amounting to RMB 5.920 billion Issued and Fully Paid Share Capital (As of June 30, 2024) | Metric | Number of Shares | Amount (RMB thousands) | | :--- | :--- | :--- | | Ordinary Shares | 2,575,665,726 | 5,920,175 | - Ordinary shareholders are entitled to receive dividends when declared by the company. All ordinary shares carry one vote and are unrestricted. Ordinary shares have no par value[46] - Neither the company nor its subsidiaries redeemed, purchased, or sold any of the company's listed securities during the six months ended June 30, 2024[46] 14. Dividends The final dividend for FY2023 of SGD 0.006 per ordinary share was approved and paid on May 31, 2024 - The final dividend (single-tier tax exempt) of SGD 0.006 per ordinary share for FY2023 was approved at the Annual General Meeting held on April 29, 2024, and paid on May 31, 2024[47] 15. Net Asset Value and Earnings Per Share Group net asset value per ordinary share was RMB 401.94 cents, and basic and diluted earnings per share were RMB 12.48 cents as of June 30, 2024 Net Asset Value and Earnings Per Share (As of June 30, 2024) | Metric | Group (RMB cents) | Company (RMB cents) | | :--- | :--- | :--- | | NAV per Ordinary Share | 401.94 | 258.23 | | Basic EPS | 12.48 | N/A | | Diluted EPS | 12.48 | N/A | 16. Fair Value Measurement of Financial Instruments Financial assets are measured across fair value hierarchy levels, with non-listed equity securities and put options classified as Level 3 Fair Value Measurement of Financial Assets (As of June 30, 2024) | Financial Asset | June 30, 2024 (RMB thousands) | Fair Value Hierarchy Level | | :--- | :--- | :--- | | Financial Assets at FVTOCI (Unlisted Equity Securities) | 13,400 | Level 3 | | Financial Assets at FVTPL (Listed Equity Securities) | 2,901 | Level 1 | | Financial Assets at FVTPL (Put Options on Unlisted Equity Securities) | 6,506 | Level 3 | - Receivables under service concession arrangements and bank and other borrowings are classified as Level 3 in the fair value hierarchy, with fair values estimated at the end of the reporting period by discounting expected future cash flows at prevailing interest or borrowing rates[51] 17. Events After the Reporting Period Management has determined that there are no disclosable events after the reporting period - Group management has determined that there are no disclosable events after the reporting period[52] Additional Information Required by Appendix 7.2 of the SGX-ST Listing Manual This section provides additional disclosures mandated by Appendix 7.2 of the SGX-ST Listing Manual, covering various corporate and financial details 1(d)(ii) Changes in Share Capital Refer to Note 13 of the condensed interim consolidated financial statements for details on share capital changes - For changes in share capital, please refer to Note 13 of the condensed interim consolidated financial statements[53] 1(d)(iii) Total Number of Issued Shares As of June 30, 2024, the total number of issued ordinary shares was 2,575,665,726 shares, with no treasury shares held - As of June 30, 2024, 2,575,665,726 ordinary shares were issued, with no treasury shares[54] 1(d)(iv) Use of Treasury Shares There were no sales, transfers, disposals, cancellations, or uses of treasury shares during the period ended June 30, 2024 - As of June 30, 2024, there were no sales, transfers, disposals, cancellations, or uses of treasury shares[55] 1(d)(v) Use of Shares Held by Subsidiaries in the Holding Company There were no sales, transfers, disposals, cancellations, or uses of shares held by subsidiaries in the holding company during the period - As of the end of the period, there were no sales, transfers, disposals, cancellations, or uses of shares held by subsidiaries in the holding company[56] 2. Whether the Figures Have Been Audited or Reviewed in Accordance with Financial Standards or Practices The financial report data has not been audited or reviewed by the company's auditors - The financial report data has not been audited or reviewed by the company's auditors[57] 3. If the Figures Have Been Audited, Provide the Auditor's Report (Including Qualifications or Emphasis of Matter) An auditor's report is not applicable as the data has not been audited - Not applicable[57] 4. Whether the Same Accounting Policies and Methods of Computation Were Applied as in the Most Recent Audited Annual Financial Statements The group applied the same accounting policies and methods of computation in this financial year's statements as in the audited statements for the year ended December 31, 2023 - The group applied the same accounting policies and methods of computation in this financial year's financial statements as in the audited financial statements for the year ended December 31, 2023[58] 5. If There Are Any Changes in Accounting Policies and Methods of Computation, Including Accounting Standards, Nature of Change, Reasons for Change, and Effect of Change There have been no changes in accounting policies and methods of computation - No changes were made to accounting policies and methods of computation[59] 6. Earnings Per Share for the Current and Previous Financial Year, After Deducting Any Provision for Preference Dividends Refer to Note 15 of the condensed interim consolidated financial statements for earnings per share information - For earnings per share information, please refer to Note 15 of the condensed interim consolidated financial statements[59] 7. Net Asset Value Per Ordinary Share as at (a) the End of the Current Period; and (b) the End of the Previous Financial Year (Issuer and Group; Excluding Treasury Shares) Refer to Note 15 of the condensed interim consolidated financial statements for net asset value per ordinary share information - For net asset value per ordinary share information, please refer to Note 15 of the condensed interim consolidated financial statements[59] 8. Review of the Group's Performance This section reviews the group's H1 2024 operating performance, including revenue, gross profit, expenses, and cash flows Overview This table provides an overview of the group's performance for Q2 and H1 2024, including revenue and profit Group Performance Overview (Q2 and H1 2024) | Metric | Q2 2024 (RMB hundreds of millions) | Q2 2023 (RMB hundreds of millions) | Change (%) | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 16.954 | 21.001 | -19.3 | 33.235 | 40.188 | -17.3 | | Profit for the Period | 3.032 | 3.516 | -13.8 | 5.082 | 5.936 | -14.4 | | Profit Attributable to Owners of the Company | 1.952 | 2.273 | -14.2 | 3.214 | 3.774 | -14.8 | (A) Revenue This table details the composition and changes in revenue for H1 2024, with explanations for significant variations Revenue Composition and Changes (H1 2024) | Revenue Type | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Construction Revenue | 5.622 | 12.870 | -56.3 | Major projects completed in FY2023, new project construction for 2024 expected to commence in H2 | | Service Concession Arrangement O&M and Finance Income | 25.256 | 25.012 | 1.0 | Increased wastewater treatment and water supply volumes and average unit prices | | Entrusted Operation Revenue | 1.014 | 0.951 | 6.6 | Contribution from new projects | | Other Main Business Revenue | 1.343 | 1.356 | 0.9 | Changes in non-recurring installation project volumes | (B) Gross Profit/Gross Profit Margin This table shows the changes in gross profit and gross profit margin for H1 2024, along with contributing factors Gross Profit and Gross Profit Margin Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Gross Profit | 12.774 | 14.377 | -11.2 | | Gross Profit Margin | 38.4% | 35.8% | +2.6pp | - Gross profit decreased primarily due to lower construction revenue. The increase in gross profit margin was mainly attributable to the lower proportion of construction revenue, which has a lower gross profit margin, as well as higher wastewater treatment and water supply volumes reducing unit costs, and an increase in average unit prices for wastewater and water supply further improving the gross profit margin[66] (C) Other Income This table presents the change in other income for H1 2024, primarily due to reduced non-core engineering and production volumes Other Income Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Other Income | 0.429 | 0.582 | -26.4 | - The decrease was primarily due to reduced engineering and production volumes unrelated to core business operations[67] (D) Other Gains and Losses This table details the change in other gains and losses for H1 2024, mainly influenced by unrealized foreign exchange gains Other Gains and Losses Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Net Gain | 0.025 | 0.107 | -76.8 | - The change was primarily due to higher unrealized foreign exchange gains recorded in Q2 2024, offsetting losses at the beginning of the year[68] (E) Selling and Distribution Expenses This table shows the slight increase in selling and distribution expenses for H1 2024, primarily due to higher maintenance costs Selling and Distribution Expenses Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 0.380 | 0.379 | 0.2 | - The increase was primarily due to higher maintenance costs[69] (F) Administrative Expenses This table presents the decrease in administrative expenses for H1 2024, attributed to cost-saving measures Administrative Expenses Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Administrative Expenses | 2.405 | 2.630 | -8.6 | - The decrease was primarily due to cost-saving measures[70] (G) Finance Costs This table details the decrease in finance costs for H1 2024, resulting from optimized financing structure Finance Costs Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Finance Costs | 4.001 | 4.157 | -3.8 | - During the six-month period, finance costs significantly decreased compared to the same period last year, despite an increase in financing scale, due to continuous optimization of the financing structure by replacing high-interest non-RMB loans with lower-interest RMB loans[71] (H) Share of Results of Associates/Joint Ventures Changes in the share of results from associates and joint ventures for H1 2024 reflect varying contributions - The share of results of joint ventures for the six months ended June 30, 2024, decreased compared to the same period last year, primarily due to lower contributions from joint ventures[72] - The share of results of associates for the six months ended June 30, 2024, increased compared to the same period last year, primarily due to higher contributions from associates[72] (I) Income Tax Expense This table shows the decrease in income tax expense for H1 2024, driven by reduced revenue and pre-tax profit Income Tax Expense Changes (H1 2024) | Metric | H1 2024 (RMB hundreds of millions) | H1 2023 (RMB hundreds of millions) | Change (%) | | :--- | :--- | :--- | | Income Tax Expense | 1.437 | 2.187 | -34.3 | - The decrease in income tax expense was due to lower revenue and profit before tax during the reporting period[73] Statement of Financial Position This section reviews key changes in the group's statement of financial position, including current and non-current assets and liabilities (J) Current Assets Total current assets increased by 9.6% to RMB 10.17 billion, mainly due to higher trade receivables - As of June 30, 2024, the group's total current assets increased by 9.6% to RMB 10.17 billion, primarily due to higher trade receivables generated from revenue in H1 2024[74] (K) Non-Current Assets Total non-current assets slightly decreased by 0.6% to RMB 33.15 billion, primarily due to depreciation and amortization - As of June 30, 2024, the group's total non-current assets slightly decreased by 0.6% to RMB 33.15 billion, primarily due to depreciation and amortization[75] (L) Current Liabilities Total current liabilities decreased by 12.7% to RMB 8.96 billion, mainly due to repayment of trade payables and short-term borrowings - As of June 30, 2024, the group's total current liabilities decreased by 12.7% to RMB 8.96 billion, primarily due to the repayment of trade and other payables and short-term borrowings[76] (M) Non-Current Liabilities Total non-current liabilities increased by 9.4% to RMB 18.66 billion, primarily due to long-term borrowings from loan restructuring - As of June 30, 2024, the group's total non-current liabilities increased by 9.4% to RMB 18.66 billion, primarily due to long-term borrowings obtained after loan restructuring[77] Consolidated Statement of Cash Flows This table provides an overview of the group's cash flows from operating, investing, and financing activities for H1 2024 Cash Flow Overview (As of June 30, 2024) | Cash Flow Type | Amount (RMB hundreds of millions) | Primary Reason | | :--- | :--- | :--- | | Net Operating Activities | -0.644 | Higher working capital requirements | | Net Investing Activities | -3.847 | Purchase of property, plant and equipment and intangible assets | | Net Financing Activities | 4.220 | Increase in net proceeds from bank and other borrowings, partially offset by repayment of borrowings and interest payments | 9. Any Variance Between Forecast or Prospect Statement and Actual Results The company has not disclosed any forecasts or prospect statements to shareholders - No forecasts or prospect statements were disclosed to shareholders[79] 10. Significant Trends and Competitive Conditions, and Known Factors or Events That May Affect the Group's Operations in the Next Reporting Period and the Next 12 Months, as at the Date of Announcement The group plans to capitalize on China's economic recovery and environmental policies, focusing on project development, market expansion, and technological innovation - The group will seize opportunities from China's economic recovery, ecological civilization construction, and carbon peak and carbon neutrality policies[80] - Steady progress will be made in existing project construction and upgrading, with the Shanghai Baoshan Renewable Energy Utilization Center already operational and Qingpu Xicen Water Purification Plant construction proceeding as scheduled[80] - The group will actively respond to water policies, explore low-carbon technologies, promote digital water management, and utilize green finance policies to optimize its financing structure[80][81] - Looking ahead, the group will focus on its core business of water treatment and water resource recycling, intensify market expansion and M&A, enhance lean operations, strengthen technological innovation, promote digital empowerment, drive high-quality sustainable development, and actively develop business in Southeast Asian 'Belt and Road' countries[81] 11. Dividends No interim ordinary dividend was declared or recommended for the current period - No interim ordinary dividend was declared or recommended for the current period[82] Dividend Information for the Same Period in the Previous Financial Year | Metric | Content | | :--- | :--- | | Dividend Name | Ordinary Cash Dividend | | Dividend Type | Interim | | Dividend | SGD 0.005 per share | | Tax Rate | Single-tier tax exempt | 12. If No Dividend Has Been Declared/Recommended, State the Reasons for Not Declaring/Recommending Any Dividend No dividend was declared due to the need for funds to support capital expenditures and project investments - No dividend was declared by the company due to the need for funds to support capital expenditures and project investments[84] 13. Total Amount of Interested Person Transactions (IPT) for the Current Financial Period Reported on a Consolidated Basis, Pursuant to Rule 920(1)(a)(ii) If the Group Has Obtained a General Mandate from Shareholders for IPTs. If No IPT Mandate Has Been Obtained, a Statement to That Effect The company has not obtained a general mandate from shareholders for Interested Person Transactions - The company has not obtained a general mandate from shareholders for Interested Person Transactions[84] 14. Confirmation by the Board Pursuant to Rule 705(5) of the SGX-ST Listing Manual Directors Ji Guanglin and Wang Xiwang confirm that the financial statements for June 30, 2024, are not materially false or misleading - We, Ji Guanglin and Wang Xiwang, on behalf of the Board of Directors, confirm that, to the best of our knowledge, the Board of Directors is not aware of any matters that would render the financial statements for June 30, 2024, materially false or misleading[85] 15. Confirmation That the Issuer Has Procured Undertakings from All Directors and Executive Officers The company confirms it has obtained undertakings from all directors and executive officers as per Listing Rule 720(1) Appendix 7.7 - The company confirms it has obtained undertakings from all directors and executive officers in the format set out in Appendix 7.7 of Listing Rule 720(1)[86]