Company Overview - SIIC Environment Holdings Ltd. operates approximately 245 wastewater treatment and water supply projects, 5 solid waste incineration projects, and 14 sludge treatment projects across 20 municipalities and provinces in China[5]. - The company aims to expand its market share and scale in water and solid waste treatment, while exploring opportunities in industrial wastewater treatment, seawater desalination, and renewable energy[5]. - SIIC Environment is backed by strong mergers and acquisitions capabilities, positioning itself as a leading operator in the environmental industry in China[4]. - The company has shown tremendous growth, continuously increasing its market share in China's environmental market[5]. - SIIC Environment is committed to protecting the planet and conserving natural resources as part of its corporate mission[4]. - The company was successfully listed on the Mainboard of SEHK in 2018, enhancing its visibility and investment potential[5]. - SIIC Environment's strategic investor, China Energy Conservation and Environmental Protection Group, is a state-owned enterprise focused on energy conservation and environmental protection[5]. - The company has a strong operational history of over 15 years in the environmental protection industry in China[5]. - The company is actively pursuing new technologies and strategies to enhance its service offerings in the environmental sector[5]. Project Capacities and Operations - The company reported a daily capacity of 100,000 tonnes for the Dongguan City Dalang Songshanhu Southern WWTP Project, which is currently in operation and undergoing upgrades[15]. - The wastewater treatment capacity for the Huizhou City Meihu Water Purification Center Project is 200,000 tonnes, with 100% completion for both the 1st and 2nd phases[16]. - The company has a 75.5% interest in the Dongguan City Shijie Shayao WWTP Project, which has a daily capacity of 60,000 tonnes and is under government construction[15]. - The wastewater treatment projects in Fujian province include a 12,500 tonnes capacity for the Arxi County Longmen Town WWTP Project, with 100% construction completed for the 1st phase[15]. - The company is expanding its market presence with multiple projects in Guangdong, including the Pinghu WWTP Project with a capacity of 25,000 tonnes, which is currently in operation[16]. - The company has a strategic focus on upgrading existing facilities to meet Class I Standard B requirements, as seen in the Dongguan City Dalang project[15]. - The wastewater treatment projects are aligned with local discharge limits, ensuring compliance with environmental standards[16]. - The company is actively involved in the construction of new projects, with several in the pipeline across various provinces, indicating a robust growth strategy[15]. Financial Performance - The Group's revenue for 2QFY2024 was RMB1,695.4 million, a decrease of 19.3% compared to RMB2,100.1 million in 2QFY2023[49]. - Profit for the period was RMB303.2 million in 2QFY2024, down 13.8% from RMB351.6 million in 2QFY2023[49]. - Profit attributable to owners of the Company was RMB195.2 million in 2QFY2024, representing a decrease of 14.2% from RMB227.3 million in 2QFY2023[50]. - Construction revenue was RMB272.2 million in 2QFY2024, a significant decrease of 59.5% compared to RMB672.7 million in 2QFY2023[52]. - Operating and maintenance income from service concession arrangements totaled RMB1,303.5 million in 2QFY2024, an increase of 0.5% from RMB1,296.9 million in 2QFY2023[55]. - Other revenue decreased to RMB69.1 million in 2QFY2024, down 16.0% from RMB82.3 million in 2QFY2023[59]. - For the six months ended June 30, 2024, total revenue was RMB3,323.5 million, a decrease of 17.3% compared to RMB4,018.8 million for the same period in 2023[49]. - The Group's gross profit (GP) was RMB666.2 million in 2QFY2024, a decrease of RMB95.6 million or 12.5% compared to RMB761.8 million in 2QFY2023[61]. - Gross profit margin (GPM) improved to 39.3% in 2QFY2024, an increase of 3.0% from 36.3% in 2QFY2023[61]. Assets and Liabilities - Current assets as of June 30, 2024, amounted to RMB10.17 billion, representing an increase of 9.6% compared to RMB9.27 billion as of December 31, 2023[76]. - Non-current assets as of June 30, 2024, amounted to RMB33.15 billion, showing a slight decrease of 0.6% compared to RMB33.34 billion as of December 31, 2023[76]. - Current liabilities as of June 30, 2024, amounted to RMB8.96 billion, representing a decrease of 12.7% compared to RMB10.26 billion as of December 31, 2023[76]. - Non-current liabilities as of June 30, 2024, amounted to RMB18.66 billion, representing an increase of 9.4% compared to RMB17.06 billion as of December 31, 2023[76]. - Total borrowings amounted to approximately RMB21.23 billion as of June 30, 2024, an increase from RMB20.26 billion as of December 31, 2023[78]. - Total equity attributable to owners of the Company increased to RMB10,352,738 as of June 30, 2024, compared to RMB10,131,507 as of December 31, 2023[84]. Corporate Governance and Compliance - The company has appointed Deloitte & Touche LLP as its auditor starting from the financial year ending December 31, 2024, enhancing its governance structure[10]. - The company’s board currently comprises four executive directors and three independent non-executive directors, with the chairman not considered independent[116]. - The company has complied with the Singapore Code of Corporate Governance 2018 and the HK Corporate Governance Code, except for certain provisions regarding board composition[116]. - The Company is actively seeking suitable candidates to join the Board as Independent Non-Executive Directors to enhance independence and diversity[118]. - The Company has established a Lead Independent Director to address shareholder concerns regarding independence[118]. - The remuneration committee comprises four members, three of whom are independent, ensuring a formal and transparent procedure for developing remuneration policies[120]. Strategic Initiatives and Future Outlook - The Group aims to establish 100 exemplary low-carbon sewage treatment plants by the end of 2025, enhancing energy resource recycling[128]. - The digital transformation of water affairs is targeted to achieve significant results by 2027 and a comprehensive breakthrough by 2030[130]. - The Group plans to focus on water treatment and resource recycling, expand market presence, and pursue mergers and acquisitions[133]. - The Group will leverage its dual-listing advantages in Singapore and Hong Kong to develop business in Southeast Asia's "Belt and Road" countries[133]. - The Group is committed to reducing carbon dioxide emissions from sewage treatment projects to support national carbon neutrality goals[128]. - The Group will continue to optimize its business layout and expand market share in China's water and environmental protection industries[126]. - The Group is actively promoting technological innovation and digital empowerment to drive sustainable development[133].
上海实业环境(00807) - 2024 - 中期财报