Operational Capacity and Projects - As of June 30, 2021, the company had established 113 service concession projects, including 106 wastewater treatment plants, 2 water supply plants, 3 sludge treatment plants, and 2 recycled water treatment plants[18]. - The company's operational capacity exceeded 4 million tons per day as of June 30, 2021, reflecting significant growth in wastewater treatment capabilities[15]. - The total operational capacity of the company as of June 30, 2021, is 4,547,050 tons, with 3,981,500 tons for wastewater treatment, 65,000 tons for recycled water treatment, and 550 tons for sludge treatment[20]. - The company has 95 operational wastewater treatment projects, 2 recycled water treatment projects, and 3 sludge treatment projects as of June 30, 2021[26]. - The company is actively involved in rural wastewater management projects, enhancing the living environment in rural areas through the construction of wastewater treatment facilities[16]. Financial Performance - The total operational revenue for urban water services is RMB 558.9 million, an increase of approximately 15% from RMB 487.5 million in the same period last year[27]. - The company recorded total revenue of RMB 1,475.5 million for the six-month period, a decrease of approximately 15% from RMB 1,729.8 million in the previous year, mainly due to a reduction in construction revenue[35]. - Revenue for the first half of 2021 was RMB 1,475,467 thousand, a decrease of 14.7% compared to RMB 1,729,806 thousand in the same period of 2020[116]. - Gross profit increased to RMB 675,374 thousand, up 5.6% from RMB 639,342 thousand year-on-year[116]. - Net profit for the period was RMB 240,004 thousand, representing a growth of 3.5% from RMB 232,366 thousand in the previous year[116]. Cost Management and Profitability - The company aims to enhance profitability and operational cash flow through the upgrading and expansion of existing projects in the wastewater treatment sector[11]. - The company is committed to improving operational efficiency and controlling operational costs to maximize shareholder returns[11]. - The company's gross margin for the six months ended June 30, 2021, was approximately 46%, an increase of 9 percentage points from about 37% in the same period last year[37]. - Sales cost for the six-month period is RMB 800.1 million, a decrease of approximately 27% from RMB 1,090.5 million in the same period last year, mainly due to reduced construction costs[36]. Financing and Debt Management - The company is focusing on diversifying its financing channels to improve its debt structure and financial condition[11]. - Total interest-bearing debt rose to RMB 9,453.3 million as of June 30, 2021, up from RMB 9,272.8 million at the end of 2020, with 73.5% classified as long-term debt[61]. - The company's asset-liability ratio slightly decreased to 70.7% as of June 30, 2021, from 71.0% at the end of 2020[61]. Shareholder Information - Zhao Sizhen holds a significant stake of 546,728,004 shares, representing 25.56% of the company's issued share capital[76]. - Major shareholder China Water Affairs Group Limited owns 953,119,996 shares, accounting for 44.54% of the company's issued share capital[80]. - Baring Private Equity Asia V Holding Limited has a stake of 344,129,996 shares, which is 16.08% of the company's issued share capital[80]. Governance and Compliance - The company established an Audit Committee to assist the Board in providing independent opinions on financial reporting procedures, internal controls, and risk management systems[90]. - The interim financial results were prepared in accordance with International Accounting Standard 34 and were reviewed by Ernst & Young[110]. - The company confirmed that all directors complied with the standards set out in the Securities Trading Code during the six months ended June 30, 2021[96]. Future Outlook and Strategic Plans - The company plans to leverage national environmental policies related to carbon peak and carbon neutrality to explore opportunities in the water industry chain[11]. - The company plans to continue expanding its market presence and investing in new technologies and products[118]. - The company is focused on improving its financial performance through strategic investments and operational improvements in its core segments[182].
康达环保(06136) - 2021 - 中期财报