中国光大绿色环保(01257) - 2025 - 中期业绩

Financial Highlights China Everbright Greentech Limited announced its unaudited interim financial results for the six months ended June 30, 2025, with revenue decreasing by 3% and EBITDA by 11% year-on-year, but profit attributable to equity holders of the Company increased by 33%, and interim dividend doubled to 2.8 HK cents per share Key Financial Data for H1 2025 | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the Company | 190,791 | 143,925 | +33% | | Interim dividend (per share) | 2.8 HK cents | 1.4 HK cents | +100% | - Profit attributable to equity holders of the Company increased by 33% year-on-year, and interim dividend doubled to 2.8 HK cents per share[4] Consolidated Financial Statements This section presents the unaudited consolidated statement of profit or loss, consolidated statement of comprehensive income, and consolidated statement of financial position for the six months ended June 30, 2025, showcasing the company's financial performance and position at period-end Consolidated Statement of Profit or Loss During the period, the company reported revenue of HKD 3,400,122 thousands, gross profit of HKD 856,778 thousands, profit before tax of HKD 244,429 thousands, profit attributable to equity holders of the Company of HKD 190,791 thousands, and basic and diluted earnings per share of 9.23 HK cents Consolidated Statement of Profit or Loss Summary | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | | Gross Profit | 856,778 | 681,102 | | Profit before tax | 244,429 | 207,087 | | Profit attributable to equity holders of the Company | 190,791 | 143,925 | | Basic and diluted earnings per share | 9.23 HK cents | 6.97 HK cents | Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's profit for the period was HKD 163,859 thousands, other comprehensive income (primarily due to exchange differences) was HKD 288,670 thousands, resulting in a total comprehensive income for the period of HKD 452,529 thousands Consolidated Statement of Comprehensive Income Summary | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 163,859 | 136,718 | | Other comprehensive income (net of tax) | 288,670 | 1,643 | | Total comprehensive income for the period | 452,529 | 138,361 | | Total comprehensive income attributable to equity holders of the Company | 468,284 | 146,567 | - Exchange differences arising from the translation of overseas operations shifted from a negative HKD 159,132 thousands in H1 2024 to a positive HKD 336,716 thousands in H1 2025, which is the primary reason for the significant increase in other comprehensive income[6] Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets were HKD 23,280,840 thousands, total current assets were HKD 14,459,129 thousands, total current liabilities were HKD 11,180,745 thousands, and net assets were HKD 12,437,445 thousands Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 23,280,840 | 23,414,866 | | Total current assets | 14,459,129 | 12,916,735 | | Total current liabilities | 11,180,745 | 10,298,028 | | Net assets | 12,437,445 | 11,662,300 | | Total equity attributable to equity holders of the Company | 10,142,825 | 9,609,839 | - Total current assets increased from HKD 12,916,735 thousands as of December 31, 2024, to HKD 14,459,129 thousands as of June 30, 2025, primarily due to a significant increase in cash and cash equivalents[7] - Goodwill decreased from HKD 65,681 thousands as of December 31, 2024, to HKD 0 as of June 30, 2025, indicating goodwill impairment during the reporting period[7] Notes to the Financial Statements This section details the basis of preparation, changes in accounting policies, operating segment information, revenue composition, finance costs, profit before tax components, income tax, dividends, earnings per share, trade and other receivables, contract assets, and trade and other payables, along with their specific circumstances and changes Basis of Preparation The interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the prior year's financial statements, except for anticipated changes - The report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9] - The accounting policies adopted are consistent with those used in the annual financial statements for the year ended December 31, 2024, except for changes in accounting policies expected to be reflected in the full-year 2025 financial statements[9] Changes in Accounting Policies The Group has applied HKAS 21 amendment "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", but it has no significant impact on this interim report due to the absence of relevant transactions - The Group has applied the amendment to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" in the interim financial report for the current accounting period[10] - As the Group has not entered into any transactions denominated in a foreign currency that cannot be exchanged into other currencies, these amendments have no significant impact on this interim report[10] Operating Segment Information The Group is divided into four reportable segments: Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation, with segment performance assessed based on adjusted EBITDA, and major customer information disclosed Segment Classification and Basis of Assessment The Group is classified into four reportable segments: Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation, with "adjusted EBITDA" used by top management to assess segment performance and allocate resources - The Group reports four reportable segments: Biomass Integrated Utilization project construction and operation, Hazardous and Solid Waste Treatment project construction and operation, Environmental Remediation project operation, and Photovoltaic and Wind Power Generation project operation[12][16] - Segment performance is reported using "adjusted earnings before interest, tax, depreciation and amortisation (non-GAAP measure)" ("adjusted EBITDA")[14] Segment Performance, Assets and Liabilities During the period, Biomass Integrated Utilization projects contributed the highest revenue and adjusted EBITDA, while Environmental Remediation projects recorded a loss, with detailed segment asset and liability totals presented Segment Performance, Assets and Liabilities Summary (H1 2025) | Segment | Revenue (HKD thousands) | Adjusted EBITDA (HKD thousands) | Segment Assets (HKD thousands) | | :--- | :--- | :--- | :--- | | Biomass Integrated Utilization | 2,711,473 | 1,021,719 | 27,146,714 | | Hazardous and Solid Waste Treatment | 515,235 | 26,738 | 6,447,862 | | Environmental Remediation | 72,680 | (59,052) | 624,314 | | Photovoltaic and Wind Power Generation | 100,734 | 86,761 | 1,408,163 | | Total | 3,400,122 | 1,076,166 | 35,627,053 | - The Environmental Remediation project operation segment recorded an adjusted EBITDA loss of HKD 59,052 thousands[17] Major Customer Information For the six months ended June 30, 2025, the Group's revenue from two local Chinese government agencies accounted for over 10% of total revenue, with one agency contributing HKD 1,261,485 thousands - For the six months ended June 30, 2025, the Group transacted with two local government agencies in the People's Republic of China ("China"), with these transactions individually accounting for over 10% of the Group's revenue[18] - Revenue from this Chinese local government agency was HKD 1,261,485 thousands (H1 2024: HKD 892,286 thousands)[18] Revenue For the six months ended June 30, 2025, the Group's total revenue was HKD 3,400,122 thousands, primarily contributed by operating service revenue from biomass integrated utilization projects, with financial income from service concession arrangements also accounting for a certain proportion Revenue Analysis (H1 2025) | Revenue Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Biomass Integrated Utilization project construction service revenue | 46,488 | 178,507 | | Biomass Integrated Utilization project operating service revenue | 2,502,922 | 2,436,265 | | Hazardous and Solid Waste Treatment project operating service revenue | 513,275 | 562,378 | | Environmental Remediation project operating service revenue | 72,680 | 63,026 | | Photovoltaic and Wind Power Generation project operating service revenue | 100,734 | 97,320 | | Total revenue from contracts with customers | 3,236,099 | 3,337,496 | | Financial income from service concession arrangements | 164,023 | 168,081 | | Total Revenue | 3,400,122 | 3,505,577 | - Revenue from biomass integrated utilization project construction services significantly decreased by 74% year-on-year, from HKD 178,507 thousands to HKD 46,488 thousands[19] Finance Costs For the six months ended June 30, 2025, the Group's total finance costs were HKD 294,302 thousands, a significant decrease from the prior period, primarily due to reduced interest on bank and other borrowings Finance Costs Analysis (H1 2025) | Finance Cost Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 186,021 | 334,442 | | Interest on lease liabilities | 282 | 473 | | Interest on medium-term notes | 88,954 | 78,172 | | Asset-backed securities right maintenance fees | 19,307 | – | | Finance costs incurred | 294,564 | 413,087 | | Less: Interest capitalized | (262) | (2,596) | | Total | 294,302 | 410,491 | - Interest on bank and other borrowings significantly decreased from HKD 334,442 thousands in H1 2024 to HKD 186,021 thousands in H1 2025[20] - New asset-backed securities right maintenance fees amounted to HKD 19,307 thousands[20] Profit Before Tax During the period, the Group's profit before tax was HKD 244,429 thousands, primarily impacted by intangible asset amortization, depreciation, cost of inventories consumed, and impairment losses on goodwill and property, plant and equipment - Amortization of intangible assets was HKD 291,759 thousands, and depreciation of property, plant and equipment was HKD 131,558 thousands[21] - Cost of inventories consumed was HKD 1,186,532 thousands, and credit losses on trade and contract assets were HKD 13,000 thousands[21] - Impairment losses on goodwill and property, plant and equipment of HKD 178,379 thousands were recognized, including a full impairment of goodwill for Everbright Ecological Remediation (Jiangsu) Co., Ltd. of HKD 65,816 thousands, and impairment of property, plant and equipment of HKD 112,563 thousands due to the cessation of operations of certain hazardous and solid waste treatment projects[21][22][23] Income Tax The Group's total income tax expense for the six months ended June 30, 2025, was HKD 80,570 thousands, primarily from Chinese operations, calculated at a statutory rate of 25% under Chinese tax laws, with some Chinese subsidiaries enjoying tax incentives Income Tax Expense Analysis (H1 2025) | Income Tax Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Current – Other locations: Provision for the period | 100,758 | 66,004 | | Under/(over) provision in prior periods | 2,675 | (442) | | Deferred | (22,863) | 4,807 | | Total tax expense for the period | 80,570 | 70,369 | - Taxation for Chinese operations is calculated at a statutory rate of 25% on taxable profits in accordance with Chinese tax laws and regulations, with certain Chinese subsidiaries enjoying tax incentives[24] - Management assesses that the Group currently has no significant tax risks arising from global minimum tax reform[25] Dividends The Board declared an interim dividend of 2.8 HK cents per share for the six months ended June 30, 2025, doubling from the prior period, with a payout ratio of 30.32%, payable on or about October 14, 2025 - The Board declared an interim dividend of 2.8 HK cents per ordinary share (H1 2024: 1.4 HK cents per share), totaling approximately HKD 57,850 thousands[26] - The interim dividend payout ratio for the six months ended June 30, 2025, was 30.32% (2024: 20.1%)[81] Earnings Per Share Attributable to Equity Holders of the Company For the six months ended June 30, 2025, basic and diluted earnings per share attributable to equity holders of the Company were 9.23 HK cents, an increase from 6.97 HK cents in the prior period Earnings Per Share Analysis (H1 2025) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD thousands) | 190,791 | 143,925 | | Weighted average number of ordinary shares (thousands) | 2,066,078 | 2,066,078 | | Basic and diluted earnings per share | 9.23 HK cents | 6.97 HK cents | - Profit for the period attributable to equity holders of the Company increased from HKD 143,925 thousands in H1 2024 to HKD 190,791 thousands in H1 2025[27] Trade and Other Receivables, Deposits and Prepayments As of June 30, 2025, total trade receivables were HKD 6,663,649 thousands, with a significant portion overdue by more than thirteen months, and loss allowance at period-end was HKD 207,684 thousands Trade Receivables Ageing Analysis (June 30, 2025) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Not more than one month | 548,607 | 569,029 | | Over thirteen months | 4,508,782 | 4,322,342 | | Total trade receivables (net of loss allowance) | 6,663,649 | 6,458,757 | - The loss allowance for trade receivables at period-end was HKD 207,684 thousands, an increase from HKD 196,776 thousands at the beginning of the year[30] - The carrying amount of trade receivables measured at fair value through other comprehensive income increased from HKD 4,733,080 thousands as of December 31, 2024, to HKD 5,107,229 thousands as of June 30, 2025[29] Contract Assets As of June 30, 2025, the Group's total contract assets were HKD 10,482,092 thousands, primarily comprising service concession arrangement assets and unbilled renewable energy tariff subsidies Contract Assets Composition (June 30, 2025) | Contract Asset Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Service concession arrangement assets | 6,525,979 | 6,494,201 | | Unbilled renewable energy tariff subsidies | 3,530,348 | 3,106,104 | | Environmental remediation contract assets | 442,695 | 402,969 | | Total contract assets (net of impairment) | 10,482,092 | 9,992,953 | - Unbilled renewable energy tariff subsidies increased from HKD 3,106,104 thousands as of December 31, 2024, to HKD 3,530,348 thousands as of June 30, 2025[31] - Service concession arrangement assets arise from Build-Operate-Transfer (BOT) and Build-Operate-Own (BOO) arrangements, bearing interest at annual rates ranging from 4.65% to 6.60%[32] Trade and Other Payables and Accruals As of June 30, 2025, the Group's total trade and other payables and accruals were HKD 2,430,921 thousands, with trade payables primarily consisting of amounts due to third parties and fellow subsidiaries Trade and Other Payables and Accruals Composition (June 30, 2025) | Liability Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables – Third parties | 1,112,755 | 1,310,870 | | Trade payables – Fellow subsidiaries | 40,840 | 21,841 | | Other payables and accruals | 1,060,140 | 1,187,301 | | Deferred income – Government grants | 187,759 | 167,948 | | Total | 2,430,921 | 2,716,308 | - Total trade payables decreased from HKD 1,332,711 thousands as of December 31, 2024, to HKD 1,153,595 thousands as of June 30, 2025[37] - Of the trade payables, HKD 377,817 thousands were construction payables for the Group's BOT and certain BOO arrangements[37] Management Discussion and Analysis During the period, amidst a complex international economic and trade environment, the Group maintained steady progress, focusing on "dual carbon" strategy and "new quality productive forces" to drive business transformation and achieve stable and improving operating performance. The company made progress in market expansion, technological innovation, operations management, risk control, and ESG, while ensuring ample funding through diversified financing channels Operating Performance Overview In H1 2025, amidst a complex and changing international economic and trade environment, the Group maintained steady progress, focusing on the "dual carbon" strategy and ecological civilization construction, driving transformation into a technology-led environmental enterprise, achieving stable and improving operating performance with both quality and efficiency - The Group resolutely implemented national decisions on deepening the "dual carbon" strategy and promoting ecological civilization construction, fully driving the company's transformation into a technology-led environmental enterprise[39] - The Group achieved stable and improving operating performance in the first half of the year, demonstrating a positive development trend with both quality and efficiency[39] - As of June 30, 2025, the Group had implemented 142 environmental investment projects with a total investment of approximately RMB 30.65 billion; it had cumulatively undertaken 70 light-asset projects such as environmental remediation, involving total contract amounts of approximately RMB 1.855 billion[40] Business Development and Strategy The Group advanced its "second entrepreneurship" around the "Two-Modernizations and One-Type" strategy, focusing on "clean energy" as its core business, expanding into biomass heating, distributed PV, user-side energy storage, and virtual power plant projects, while actively promoting high-value biomass utilization and landfill ecological remediation light-asset projects - The Group fully advanced its "second entrepreneurship" journey, anchored by "clean energy" as its core business, centered on the "Two-Modernizations and One-Type" (technological, international, ecological) core development strategy[41] - Continued focus on clean energy projects targeting "zero-carbon parks" such as biomass heating, distributed photovoltaic, user-side energy storage, and virtual power plants, as well as light-asset projects with a focus on "landfill ecological remediation"[41] - Added 520,000 tons of annual heating capacity, expanded the first bio-natural gas project, added 10 million tons of annual bio-natural gas production capacity, and added approximately RMB 128 million in environmental remediation business contract value[41] Technological Innovation and R&D The Group firmly centered on technological innovation, focusing on R&D of cutting-edge technologies like bio-natural gas, biomass gasification heating, and green methanol, successfully launching its first bio-natural gas project through industry-academia-research collaboration, and partnering with Alibaba Cloud to build a "Virtual Power Plant and Power Trading Auxiliary Decision Platform" - The Group firmly positioned technological innovation as its core development engine, strategically focusing on key areas such as bio-natural gas, biomass gasification heating, biomass-to-green methanol, and biomass-to-sugar[42] - Actively collaborated with institutions like the Chinese Academy of Sciences to develop efficient anaerobic fermentation technology for bio-natural gas from biomass, successfully launching the first bio-natural gas project[42] - Jointly with Alibaba Cloud, developed an "Virtual Power Plant and Power Trading Auxiliary Decision Platform" based on AI algorithm technology, successfully signing 136 power users[42] Operations Management and Risk Control The Group deepened cost-saving and revenue-generating efforts through refined operations management, optimizing fuel quality and procurement costs, and implemented "one enterprise, one policy" and asset optimization strategies to address challenges in the hazardous and solid waste treatment market. Concurrently, it strengthened its comprehensive risk management system, revised the "Risk Factor List," and optimized related party transaction management policies - In biomass integrated utilization, actively expanded the heating market, opened green certificate trading channels, and optimized fuel quality and procurement costs[43] - In hazardous and solid waste treatment, adopted a strategy emphasizing both quality improvement and efficiency enhancement, and asset optimization, through organizational restructuring, implementing "one enterprise, one policy," reducing production costs, and disposing of inefficient and non-performing assets[43] - Comprehensive risk management is integrated into the company's development strategy, by establishing an efficient risk management system, revising the "Risk Factor List," and defining the scope of "key controlled risks"[44] Environmental, Social and Governance (ESG) The Group highly prioritizes ESG risks, integrating them into its comprehensive risk management system, deepening climate-related risk management, advancing TCFD work, and earning multiple honors for its outstanding ESG performance, including the "2025 ESG Model Enterprise Award" and improved ESG ratings from Wind and Huazheng Index - The Group consistently prioritizes Environmental, Social, and Governance (ESG) related risks, integrating them into its comprehensive risk management system for key control[45] - Deepened the work on Task Force on Climate-related Financial Disclosures (TCFD), clarifying the impact of climate-related risks and opportunities on the Group's business operations through scenario analysis[45] - With its outstanding ESG performance, the Group received multiple honors, including the "2025 ESG Model Enterprise Award," and achieved improved ESG ratings from both Wind and Huazheng Index, two authoritative institutions[45] Social Responsibility The Group continued to deepen public access to environmental facilities, with its Rugao Biomass Power Generation project included in the national list of open environmental facilities; as of June 30, 2025, 47 projects were officially open to the public, having cumulatively hosted 1,635 visitors - The Group continued to deepen its commitment to opening environmental facilities to the public, disclosing project environmental impact assessment reports and environmental monitoring data through various media channels[46] - The Group's Rugao Biomass Power Generation project was included by the Ministry of Ecology and Environment in the fifth batch of national environmental facilities and urban sewage and waste treatment facilities open to the public[46] - As of June 30, 2025, the company had a total of 47 projects officially open to the public, cumulatively holding 79 offline public open days and receiving a total of 1,635 visitors[46] Financial Performance Summary During the period, the Group's revenue decreased by 3% year-on-year to HKD 3,400,122 thousands, and EBITDA decreased by 11% to HKD 974,366 thousands, but profit attributable to equity holders of the Company increased by 33% year-on-year to HKD 190,791 thousands, primarily due to reduced operating costs - The Group recorded revenue of approximately HKD 3,400,122 thousands, a 3% decrease from the prior period; EBITDA was approximately HKD 974,366 thousands, an 11% decrease from the prior period[47] - Profit attributable to equity holders of the Company was approximately HKD 190,791 thousands, a 33% increase from the prior period[47] - The decrease in revenue was mainly due to reduced construction service revenue; the increase in profit attributable to equity holders of the Company benefited from exploring cost reduction potential during the period, leading to a decrease in operating costs[47] Financing Activities In H1 2025, the Group successfully broadened its financing channels by issuing the first tranche of asset-backed special plans (RMB 630 million priority class) and two tranches of green medium-term notes (totaling RMB 2 billion), with proceeds used to supplement working capital, repay debt, and invest in projects - In January 2025, the first tranche of asset-backed special plans was issued, with a priority asset-backed securities issuance size of RMB 630 million and a coupon rate of 1.79%[48] - In February 2025, the first tranche of 2025 green medium-term notes was issued, with an issuance amount of RMB 1 billion and a fixed annual coupon rate of 2.39%[49] - In May 2025, the second tranche of 2025 green medium-term notes was issued, with a principal amount of RMB 1 billion and an annual coupon rate of 1.98%[49] Segment Revenue and Profit Analysis During the period, the Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation segments collectively generated HKD 3,400,122 thousands in revenue, with operating service revenue accounting for 94%. The Biomass Integrated Utilization segment contributed the highest EBITDA, while the Environmental Remediation segment recorded a loss Segment Revenue and EBITDA (H1 2025) | Segment | Revenue (HKD thousands) | EBITDA (HKD thousands) | | :--- | :--- | :--- | | Biomass Integrated Utilization projects | 2,711,473 | 1,021,719 | | Hazardous and Solid Waste Treatment projects | 515,235 | 26,738 | | Environmental Remediation projects | 72,680 | (59,052) | | Photovoltaic and Wind Power Generation projects | 100,734 | 86,761 | | Total | 3,400,122 | 1,076,166 | - Construction service revenue was approximately HKD 46,488 thousands, a 74% decrease from the prior period; operating service revenue was approximately HKD 3,189,611 thousands, a 1% increase from the prior period[50] - By revenue nature, construction services, operating services, and financial income accounted for 1%, 94%, and 5% of total revenue, respectively[50] Segment Business Details This section details the operating models, project layouts, key operating data, and financial performance of the Group's four core business segments—Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation—revealing their growth drivers and challenges Biomass Integrated Utilization The Group's biomass integrated utilization business primarily generates electricity and heat from biomass raw materials, combined with waste-to-energy, achieving an urban-rural integrated model. As of June 30, 2025, it had 57 projects with a total investment of approximately RMB 17.354 billion, contributing approximately HKD 1,021,719 thousands in EBITDA during the period, a 15% year-on-year increase - The Group primarily utilizes biomass raw materials for power generation and heating, and has developed a unique urban-rural integrated business model, combining biomass integrated utilization projects with waste-to-energy projects[51] - As of June 30, 2025, the Group owned a total of 57 biomass integrated utilization projects, with a total investment of approximately RMB 17.354 billion and a total designed installed capacity of 1,069 MW[51] Biomass Integrated Utilization Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Grid-connected electricity (MWh) | 3,265,205 | 3,176,136 | 3% | | Biomass raw material processed (tons) | 3,742,000 | 3,883,000 | -4% | | Municipal solid waste processed (tons) | 2,074,000 | 2,057,000 | 1% | | Steam supplied (tons) | 1,773,000 | 1,328,000 | 34% | Hazardous and Solid Waste Treatment The Group's hazardous and solid waste treatment business covers incineration, landfill, physical-chemical treatment, and comprehensive utilization, capable of treating 44 categories of hazardous waste listed in the "National Hazardous Waste List". As of June 30, 2025, it had 48 projects with a total investment of approximately RMB 11.257 billion. During the period, this segment's EBITDA decreased by 76% year-on-year and recorded a net loss, primarily due to weak market recovery, intensified competition, and asset disposal losses - The Group primarily engages in the safe disposal and comprehensive utilization of general industrial solid waste, hazardous waste, dead animals, etc., capable of safely disposing of 44 out of 46 categories of hazardous waste listed in the "National Hazardous Waste List"[54] - As of June 30, 2025, the Group owned a total of 48 hazardous and solid waste treatment projects, with a total investment of approximately RMB 11.257 billion[54] Hazardous and Solid Waste Treatment Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Hazardous and solid waste treated (tons) – Harmless disposal | 212,000 | 217,000 | -2% | | Hazardous and solid waste treated (tons) – Resource comprehensive utilization | 27,300 | 30,200 | -10% | | Resource utilization product sales (tons) | 7,300 | 6,500 | 12% | | Grid-connected electricity (MWh) | 13,039 | 14,023 | -7% | | Steam supplied (tons) | 403,000 | 379,000 | 6% | Environmental Remediation The Group's environmental remediation business covers landfill ecological restoration, industrial contaminated site remediation, etc., possessing multiple professional qualifications. As of June 30, 2025, there were 19 projects under execution, with total contract amounts of approximately RMB 814 million. During the period, this segment recorded an EBITDA loss of approximately HKD 59,052 thousands, and net loss increased, mainly due to lower-than-expected market conditions and goodwill impairment - The Group's environmental remediation business primarily covers landfill ecological restoration, industrial contaminated site remediation, polluted farmland remediation, and river and lake sediment treatment[57] - As of June 30, 2025, the Group had a total of 19 environmental remediation projects under execution, with total contract amounts of approximately RMB 814 million[58] - The Group's environmental remediation projects recorded a loss before interest, tax, depreciation, and amortization of approximately HKD 59,052 thousands, an 820% increase in loss from the prior period[59] - The increased loss was primarily due to the environmental remediation market conditions developing below expectations, continuous project operating losses, and goodwill impairment losses[59] Photovoltaic and Wind Power Generation As of June 30, 2025, the Group's photovoltaic and wind power generation business had 33 photovoltaic projects and 2 wind power projects, with a total designed installed capacity of 246.66 MW. During the period, both EBITDA and net profit for this segment decreased by 2% year-on-year, mainly due to reduced grid-connected electricity from wind power projects and increased maintenance costs - As of June 30, 2025, the Group had a total of 33 operational and completed photovoltaic power projects and 2 operational wind power projects, with a total designed installed capacity of 246.66 MW[60] - The Group's photovoltaic and wind power generation projects contributed approximately HKD 86,761 thousands in earnings before interest, tax, depreciation, and amortization, a 2% decrease from the prior period[61] Photovoltaic and Wind Power Generation Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Grid-connected electricity (MWh) | 145,970 | 144,832 | 1% | Business Outlook Looking ahead to 2025, the Group will adhere to the "seek progress while maintaining stability, promote stability through practical efforts" approach, focusing on the "clean energy" strategy, responding to policy changes, building a "traditional business strengthening + emerging areas breakthrough" dual-driven pattern, deepening regional synergy, and accelerating industrial upgrading, embarking on a new journey of "second entrepreneurship" Macro Environment and Policy Trends In 2025, the global economy will see a differentiated recovery amidst green transformation and geopolitical reshaping, as China concludes its "14th Five-Year Plan," ecological environment governance enters a new "precise, intelligent, systematic" stage, and new energy electricity price marketization reforms and "zero-carbon park" construction bring new development opportunities and challenges - 2025 marks the final year of the "14th Five-Year Plan" and a critical year for deeply integrating new quality productive forces with green development, as ecological environment governance enters a new stage of "precision, intelligence, and systematization"[65] - The National Development and Reform Commission and the National Energy Administration jointly issued a notice to promote the full market entry of new energy grid-connected electricity and establish a unified institutional framework for direct green power connections[65] - The "Notice on Carrying out Zero-Carbon Park Construction" clarifies "carbon emissions per unit of energy consumption" as a core indicator, which will further promote the energy structure transformation and green upgrading of industrial parks[65] Strategic Direction and Future Plans The Group will build a "traditional business strengthening + emerging areas breakthrough" dual-driven pattern, focusing on "cogeneration + green empowerment," expanding the heating market, extending the industrial chain to high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas, deepening regional synergy, accelerating the divestment of inefficient assets, and building a leader in the biomass energy industry with its "clean energy" strategy - The Group is focused on building a dual-driven pattern of "traditional business strengthening + emerging areas breakthrough," with "cogeneration + green empowerment" as its core direction[66] - Actively accelerated the expansion of heating users, broadened heating areas, and increased heating revenue to enhance cash flow; promoted the extension of the industrial chain to high-value-added segments, focusing on the implementation of high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas[66] - During the "15th Five-Year Plan" period, the Group will focus on the "clean energy" strategy, aiming to become a leading enterprise in China's biomass energy industry and build a new multi-energy complementary pattern of "green electricity + green steam + green hydrogen + green methanol"[67] Financial Review This section reviews the Group's financial position, financial resources, indebtedness, foreign exchange risk, pledge of assets, commitments, contingent liabilities, tax relief, and human resources as of June 30, 2025, indicating a robust asset-liability structure, good liquidity, and continuous optimization of financing structure Financial Position As of June 30, 2025, the Group's total assets were approximately HKD 37,739,969 thousands, net assets approximately HKD 12,437,445 thousands, and net asset value per share increased to HKD 4.91. The gearing ratio remained stable at 67.04%, and the current ratio increased to 129.32% Financial Position Summary (June 30, 2025) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total assets | 37,739,969 | 36,331,601 | +3.88% | | Net assets | 12,437,445 | 11,662,300 | +6.65% | | Net asset value per share attributable to equity holders of the Company | 4.91 HKD | 4.65 HKD | +5.59% | | Gearing ratio | 67.04% | 67.90% | -0.86 percentage points | | Current ratio | 129.32% | 125.40% | +3.92 percentage points | - The gearing ratio remained stable, primarily benefiting from the company's cautious investment strategy amidst economic uncertainties[69] Financial Resources The Group adopted prudent principles for cash and financial management; as of June 30, 2025, cash and bank balances were approximately HKD 2,610,492 thousands, an increase of approximately HKD 936,776 thousands from end-2024, with primary funding sources being medium-term notes, internal cash flow, and bank loans - The Group adopted prudent principles for cash and financial management, effectively managing risks and reducing funding costs[70] - As of June 30, 2025, the Group held cash and bank balances of approximately HKD 2,610,492 thousands, an increase of approximately HKD 936,776 thousands from end-2024[70] - Working capital primarily originated from proceeds from medium-term note issuance, internal cash flow, and bank loans[70] Indebtedness As of June 30, 2025, the Group's total outstanding loans were approximately HKD 21,913,625 thousands, with 52% at fixed interest rates and 48% at floating interest rates. Bank financing facilities were ample, with unused facilities of approximately HKD 7,081,449 thousands - As of June 30, 2025, the Group's total outstanding loans were approximately HKD 21,913,625 thousands, an increase of approximately HKD 913,473 thousands from end-2024[71] - The Group's fixed-rate and floating-rate loans accounted for 52% and 48%, respectively[71] Maturity Profile of Interest-Bearing Bank and Other Borrowings (HKD millions) | Maturity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 8,901 | 7,718 | | In the 2nd year | 4,702 | 4,787 | | In the 3rd to 5th year | 5,782 | 5,571 | | After the 5th year | 2,529 | 2,924 | | Total | 21,914 | 21,000 | Foreign Exchange Risk The Group's primary operations are in mainland China, with most assets, loans, and transactions denominated in RMB, creating a natural hedge, and foreign exchange risk is managed through appropriate matching of currency loans and financial instruments - The Group has foreign exchange risk from investments outside Hong Kong (including mainland China), but China is the Group's primary business location, accounting for over 95% of total investments and revenue[73] - Most of the Group's assets, loans, and major transactions are denominated in RMB, essentially forming a natural hedge[73] Pledge of Assets As of June 30, 2025, the Group's total net book value of pledged assets was approximately HKD 17,888,150 thousands, primarily used for bank financing and other loans - The total net book value of pledged assets was approximately HKD 17,888,150 thousands (December 31, 2024: HKD 17,920,001 thousands)[74] - Pledged assets include certain revenue rights related to the Group's service concession arrangements, contract assets, intangible assets and receivables, bank deposits, the Group's property, plant and equipment, and right-of-use assets[74] Commitments As of June 30, 2025, the Group had purchase commitments contracted for construction contracts of approximately HKD 36,885 thousands, and capital commitments related to investments in joint ventures, associates, and financial asset entities of approximately HKD 45,558 thousands - As of June 30, 2025, the Group had purchase commitments contracted for construction contracts of approximately HKD 36,885 thousands[75] - Capital commitments related to investments in joint ventures, associates, and financial asset entities amounted to HKD 45,558 thousands[75] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[76] Tax Relief and Exemptions The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their holding of the Company's shares - The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their holding of the Company's shares[77] Human Resources As of June 30, 2025, the Group employed over 3,200 staff in Hong Kong and mainland China, with total staff costs of approximately HKD 294,243 thousands, and provided continuous training and other benefits - As of June 30, 2025, the Group employed over 3,200 staff in Hong Kong and mainland China[78] - Total staff costs for the six months ended June 30, 2025, were approximately HKD 294,243 thousands[78] Other Information This section covers other important information regarding the Group's corporate governance, compliance with the standard code for securities transactions by directors, interim dividend distribution, closure of register of members, dealings in listed securities, and publication of interim report and board members Corporate Governance The Group is committed to maintaining robust corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and complied with all applicable code provisions during the reporting period - The Group has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its corporate governance practice code[79] - For the six months ended June 30, 2025, the Company complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code[79] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules and confirmed that all Directors complied with the code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' securities transactions[80] - Following specific enquiries made to all Directors, the Company confirmed that they had complied with the required standards set out in the Standard Code throughout the review period[80] Interim Dividend The Board declared an interim dividend of 2.8 HK cents per share for the six months ended June 30, 2025, with a payout ratio of 30.32%, payable on or about October 14, 2025 - The Board declared an interim dividend of 2.8 HK cents per share for the six months ended June 30, 2025 (2024: 1.4 HK cents per share)[81] - The interim dividend payout ratio for the six months ended June 30, 2025, was 30.32% (2024: 20.1%)[81] - The interim dividend will be paid in cash on or about Tuesday, October 14, 2025[81] Closure of Register of Members To qualify for the interim dividend, the Company will suspend its register of members from September 19 to September 23, 2025, with all share transfer documents to be lodged with the Hong Kong share registrar by 4:30 p.m. on September 18, 2025 - The Company's register of members will be closed from Friday, September 19, 2025, to Tuesday, September 23, 2025 (both dates inclusive)[82] - To qualify for the interim dividend, all share transfer documents and relevant share certificates must be lodged with the Company's Hong Kong share registrar by 4:30 p.m. on Thursday, September 18, 2025[82] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[83] Publication and Despatch of Interim Report The Company's interim results announcement for the six months ended June 30, 2025, has been published on the HKEX and company websites, and the interim report will be published and despatched to shareholders who have opted for printed copies in due course - The Company's interim results announcement for the six months ended June 30, 2025, has been published on the Hong Kong Stock Exchange and the Company's website[84] - The Company's 2025 interim report will be published on the HKEX and the Company's website and despatched to shareholders who have opted for printed copies in due course[84] Board of Directors As of the announcement date, the Board of Directors includes Mr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (CEO, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), and Mr. Zou Xiaolei, Professor Yan Houmin, Mr. Li Huaqiang (Independent Non-executive Directors) - The Board of Directors includes Mr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (CEO, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), Mr. Zou Xiaolei (Independent Non-executive Director), Professor Yan Houmin (Independent Non-executive Director), and Mr. Li Huaqiang (Independent Non-executive Director)[86]