东江环保(00895) - 2025 - 中期业绩

Company Information Directors, Supervisors, and Senior Management The Board of Directors comprises three executive, three non-executive, and three independent non-executive directors, with changes in board and supervisory board members during the reporting period - Executive Director changes: Yu Fan resigned on April 25, 2025, and Zhu Lintao was appointed on June 25, 2025[6] - Independent Non-Executive Director changes: Xiao Zhixiong resigned on June 25, 2025, and Li Guodong was appointed on June 25, 2025, also serving as Chairman of the Audit and Risk Management Committee[6] - Supervisor changes: Chen Peihuan resigned on June 25, 2025, and Ma Xujian was appointed on June 25, 2025[6] Basic Company Information Dongjiang Environmental Company Limited, a joint-stock company registered in China, is listed on the Shenzhen Stock Exchange (A-shares) and The Stock Exchange of Hong Kong Limited (H-shares), primarily engaged in environmental protection Company Listing Information | Stock Code | Listing Place | | :------- | :------- | | A-shares: 002672 | Shenzhen Stock Exchange | | H-shares: 00895 | The Stock Exchange of Hong Kong Limited | - The company's main business covers industrial waste resource utilization, wastewater, exhaust gas, and solid waste treatment, environmental facility operation, and precious metal recycling in the environmental protection sector[54] Glossary of Terms This report defines key terms to ensure clarity and consistency, covering corporate governance, equity structure, financial reporting periods, and major shareholders - "First half of 2025" or "Reporting Period" refers to the six months ended June 30, 2025[10] - "The Group" refers to the Company and its subsidiaries[10] - Major shareholders include Guang Sheng Holdings Group, Baowu Environmental Technology, and Huihong Group[10] Financial Statements Consolidated Balance Sheet As of June 30, 2025, the Group's total consolidated assets were RMB 11,025,527,347.49, a slight decrease from the beginning of the period, with negative net current assets Key Consolidated Balance Sheet Data (As of June 30, 2025) | Indicator | Period-end Balance (RMB) | Period-beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 11,025,527,347.49 | 11,278,479,415.46 | | Total Current Assets | 3,600,500,457.56 | 3,563,956,903.50 | | Total Non-current Assets | 7,425,026,889.93 | 7,714,522,511.96 | | Total Liabilities | 7,200,623,387.22 | 7,127,589,598.80 | | Total Current Liabilities | 3,750,180,723.18 | 3,877,229,219.04 | | Total Non-current Liabilities | 3,450,442,664.04 | 3,250,360,379.76 | | Total Owners' Equity | 3,824,903,960.27 | 4,150,889,816.66 | Company Balance Sheet As of June 30, 2025, the Company's total assets increased to RMB 7,987,719,010.95, with current assets totaling RMB 3,814,254,494.36 and current liabilities RMB 2,931,223,760.36 Key Company Balance Sheet Data (As of June 30, 2025) | Indicator | Period-end Balance (RMB) | Period-beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 7,987,719,010.95 | 7,758,362,070.08 | | Total Current Assets | 3,814,254,494.36 | 3,599,282,904.03 | | Total Non-current Assets | 4,173,464,516.59 | 4,159,079,166.05 | | Total Liabilities | 4,925,112,816.90 | 4,654,209,427.05 | | Total Current Liabilities | 2,931,223,760.36 | 2,929,887,812.29 | | Total Non-current Liabilities | 1,993,889,056.54 | 1,724,321,614.76 | | Total Owners' Equity | 3,062,606,194.05 | 3,104,152,643.03 | Consolidated Income Statement For the six months ended June 30, 2025, the Group's total operating revenue decreased by 3.40% to RMB 1,500,470,309.76, with net loss attributable to parent company shareholders widening by 8.09% Key Consolidated Income Statement Data (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,500,470,309.76 | 1,553,358,452.26 | | Total Operating Costs | 1,846,670,942.48 | 1,882,149,083.44 | | Operating Profit | -329,316,352.67 | -313,793,031.30 | | Total Profit | -324,780,391.79 | -315,039,567.24 | | Net Profit | -328,240,737.00 | -319,313,114.02 | | Net Profit Attributable to Parent Company Shareholders | -278,177,080.22 | -257,357,295.18 | | Basic Earnings Per Share | -0.25 | -0.23 | Company Income Statement For the six months ended June 30, 2025, the Company's operating revenue significantly increased to RMB 350,817,891.13, while net loss narrowed year-on-year Key Company Income Statement Data (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 350,817,891.13 | 97,567,903.51 | | Operating Costs | 343,887,443.53 | 95,598,420.71 | | Operating Profit | -42,333,129.75 | -51,075,902.62 | | Total Profit | -41,564,100.28 | -51,075,915.58 | | Net Profit | -41,546,448.98 | -51,093,275.17 | Consolidated Cash Flow Statement For the six months ended June 30, 2025, the Group's net cash flow from operating activities turned negative, while net cash flow from financing activities turned positive Key Consolidated Cash Flow Statement Data (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | | Cash Inflows from Operating Activities | 1,740,812,786.15 | 1,926,916,009.86 | | Cash Outflows from Operating Activities | 1,791,521,114.73 | 1,924,534,838.20 | | Net Cash Flow from Operating Activities | -50,708,328.58 | 2,381,171.66 | | Net Cash Flow from Investing Activities | -73,967,557.57 | -147,850,885.18 | | Net Cash Flow from Financing Activities | 159,540,961.07 | -195,531,541.11 | | Net Increase in Cash and Cash Equivalents | 34,893,597.13 | -341,015,021.71 | | Cash and Cash Equivalents at Period End | 1,051,200,772.35 | 896,795,765.01 | Company Cash Flow Statement For the six months ended June 30, 2025, the Company's net cash flow from operating activities turned positive, while net cash flow from investing activities significantly increased Key Company Cash Flow Statement Data (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 80,198,751.91 | -259,911,142.48 | | Net Cash Flow from Investing Activities | 81,159,015.34 | 10,372,557.68 | | Net Cash Flow from Financing Activities | -157,509,683.94 | -85,456,387.45 | | Net Increase in Cash and Cash Equivalents | 3,848,083.31 | -334,994,972.25 | | Cash and Cash Equivalents at Period End | 764,109,267.64 | 713,387,722.13 | Consolidated Statement of Changes in Owners' Equity For the six months ended June 30, 2025, the Group's total owners' equity attributable to the parent company decreased by RMB 275,025,723.76, primarily due to an expanded net loss Key Consolidated Statement of Changes in Owners' Equity Data (For the six months ended June 30, 2025) | Indicator | First Half 2025 Change (RMB) | First Half 2024 Change (RMB) | | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company Change | -275,025,723.76 | -355,628,130.07 | | Minority Interests Change | -50,960,132.63 | 38,126,125.87 | | Total Owners' Equity Change | -325,985,856.39 | -317,502,004.20 | | Total Comprehensive Income | -328,212,214.79 | -319,326,881.10 | | Capital Contributed and Reduced by Owners | 500,000.00 | -1,006,000.00 | | Profit Distribution | -2,450,000.00 | 0.00 | Company Statement of Changes in Owners' Equity For the six months ended June 30, 2025, the Company's total owners' equity decreased by RMB 41,546,448.98, primarily due to net loss, with a corresponding reduction in retained earnings Key Company Statement of Changes in Owners' Equity Data (For the six months ended June 30, 2025) | Indicator | First Half 2025 Change (RMB) | First Half 2024 Change (RMB) | | :--- | :--- | :--- | | Total Owners' Equity Change | -41,546,448.98 | -51,093,275.17 | | Retained Earnings Change | -41,546,448.98 | -51,093,275.17 | | Total Comprehensive Income | -41,546,448.98 | -51,093,275.17 | Notes to Financial Statements General Information The Company, a joint-stock company registered in China, is listed on the Hong Kong Stock Exchange and Shenzhen Stock Exchange, primarily engaged in environmental protection - The company's main business scope includes industrial waste collection, treatment, and comprehensive utilization; wastewater, exhaust gas, and solid waste treatment; environmental protection facility design, construction, and operation; and precious metal recycling and utilization[54] Basis of Preparation The Group's financial statements are prepared on a going concern basis, adhering to Chinese accounting standards and disclosure requirements, and have been reviewed by the Audit and Risk Management Committee - The financial statements are prepared on a going concern basis, and management has no significant concerns about the company's ability to continue as a going concern for the next 12 months[55] - These interim results are unaudited by the auditors but have been reviewed by the Audit and Risk Management Committee[56] Operating Revenue For the six months ended June 30, 2025, the Group's total operating revenue decreased by 3.40% to RMB 1,500,470,309.76, primarily due to a decline in precious metal recycling revenue Operating Revenue by Industry Segment (For the six months ended June 30, 2025) | Industry Segment | First Half 2025 (RMB) | First Half 2024 (RMB) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | | Industrial Waste Resource Utilization | 646,104,217.38 | 564,376,350.26 | +14.48% | | Industrial Waste Treatment and Disposal | 396,990,856.03 | 401,533,859.48 | -1.13% | | Precious Metal Recycling and Utilization | 287,227,264.88 | 396,750,877.20 | -27.61% | | Municipal Waste Treatment and Disposal | 44,642,362.92 | 61,648,664.38 | -27.59% | | Renewable Energy Utilization | 10,590,979.26 | 15,145,986.04 | -30.07% | | Environmental Engineering and Services | 28,246,587.57 | 50,003,630.90 | -43.51% | | Electronic Waste Dismantling | 67,557,360.90 | 54,742,150.14 | +23.40% | | Other Businesses | 19,110,680.82 | 9,156,933.86 | +108.70% | | Total | 1,500,470,309.76 | 1,553,358,452.26 | -3.40% | Segment Information The Group's operations are divided into eight reporting segments, with industrial waste resource utilization and treatment segments showing significant revenue and profit figures for the first half of 2025 - The company's operations are divided into 8 reporting segments, and management regularly evaluates the operating results of each segment[58] Key Segment Operating Revenue and Total Profit (For the six months ended June 30, 2025) | Segment | Operating Revenue (RMB) | Total Profit (RMB) | | :--- | :--- | :--- | | Industrial Waste Resource Utilization | 661,524,909.18 | -52,618,411.21 | | Industrial Waste Treatment and Disposal | 418,926,680.14 | -194,426,714.65 | | Precious Metal Recycling and Utilization | 287,227,264.88 | -9,576,803.30 | | Municipal Waste Treatment and Disposal | 44,642,362.92 | 6,359,051.30 | | Electronic Waste Dismantling | 67,557,360.90 | -9,750,112.09 | | Environmental Engineering and Services | 40,908,544.61 | 3,576,311.30 | | Renewable Energy Utilization | 10,590,979.26 | -2,889,308.65 | | Other | 26,187,343.82 | 1,410,322.78 | | Total | 1,500,470,309.76 | -324,780,391.79 | Finance Costs For the six months ended June 30, 2025, the Group's total finance costs were RMB 93,874,720.66, remaining largely consistent with the prior year, primarily driven by interest expenses Finance Costs Details (For the six months ended June 30, 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Interest Expense | 94,743,471.81 | 99,028,016.25 | | Less: Interest Income | 2,603,195.24 | 4,522,859.03 | | Exchange Gains/Losses | 1,517,236.25 | -753,018.73 | | Bank Charges and Others | 217,207.84 | 143,120.45 | | Total | 93,874,720.66 | 93,895,258.94 | - Interest expense primarily consists of interest on borrowings from financial institutions (RMB 78,050,482.03) and bond interest accrued at effective interest rates (RMB 11,231,096.43)[63] Taxation The Group's income tax expense decreased to RMB 3,460,345.21 due to lower total profit, benefiting from various tax incentives for environmental protection and high-tech enterprises Income Tax Expense Current income tax expense for the period was RMB 3,460,345.21, a decrease from the prior period, comprising current and deferred income tax expenses Income Tax Expense Details (For the six months ended June 30, 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Current Income Tax Expense | 3,749,946.01 | 4,759,422.68 | | Deferred Income Tax Expense | -289,600.80 | -485,875.90 | | Total | 3,460,345.21 | 4,273,546.78 | Income Tax Current income tax expense primarily originated from mainland China, amounting to RMB 4,337,019.00 for the current period, with adjustments for overpayments from prior years Current Income Tax Expense (For the six months ended June 30, 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Current Income Tax Expense – China | 4,337,019.00 | 4,039,773.01 | | Overpayment from Prior Years – China | -587,072.99 | 719,649.67 | | Total | 3,749,946.01 | 4,759,422.68 | Major Tax Categories and Rates The Group applies various tax categories and rates, including VAT (3%-13%), Urban Maintenance and Construction Tax (5%-7%), Corporate Income Tax (15%-25%), Education Surcharge (3%), Local Education Surcharge (2%), and Property Tax (1.2%-12%) Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable income calculated at 3%, 5%, 6%, 9%, 13% for output tax, and VAT payable after deducting deductible input tax | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Calculated at 5%, 7% of actual turnover tax paid | 5%, 7% | | Corporate Income Tax | Corporate income tax rates are 15%, 16.5%, 20%, 25% | 15%, 16.5%, 20%, 25% | | Education Surcharge | Calculated at 3% of actual turnover tax paid | 3% | | Local Education Surcharge | Calculated at 2% of actual turnover tax paid | 2% | | Property Tax | Property tax is 1.2% of the residual value of the property or 12% of rental income | 1.2%, 12% | - Multiple subsidiaries apply corporate income tax rates of 15%, 20%, or 25%, with some enjoying a 50% reduction policy[67][71][75] Tax Incentives The Group benefits from various corporate income tax and VAT incentives, including "three-year exemption, three-year half reduction" for environmental projects and VAT refunds for resource utilization - Corporate Income Tax Incentives: Eligible environmental protection, energy-saving, and water-saving projects enjoy a "three-year exemption, three-year half reduction" policy[77] - Corporate Income Tax Incentives: Income from resource comprehensive utilization is reduced by 10% (90% included in total income)[77] - VAT Incentives: 100% immediate refund for income from power generation using landfill gas; 70% immediate refund for waste/sludge/wastewater treatment services; 30% immediate refund for sales of resource comprehensive utilization products[82] Loss Per Share For the six months ended June 30, 2025, the Group's basic loss per share widened to RMB 0.25 from RMB 0.23 in the prior year, with diluted loss per share being the same Loss Per Share (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | | Loss Attributable to Parent Company Ordinary Equity Holders | 278,177,080.22 | 257,357,295.18 | | Weighted Average Number of Issued Shares (shares) | 1,105,255,802 | 1,105,255,802 | | Basic Loss Per Share | -0.25 | -0.23 | | Diluted Loss Per Share | -0.25 | -0.23 | Dividends The Board of Directors does not recommend declaring an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend declaring an interim dividend for the six months ended June 30, 2025[85] Other Receivables As of June 30, 2025, the Group's net accounts receivable were RMB 995,626,099.92, a slight decrease from the beginning of the period, with approximately 45.20% due within one year Key Other Receivables Data (As of June 30, 2025) | Item | As of June 30, 2025 (RMB) | As of December 31, 2024 (RMB) | | :--- | :--- | :--- | | Accounts Receivable | 1,134,270,514.91 | 1,157,870,341.29 | | Less: Provision for Bad Debts on Accounts Receivable | 138,644,414.99 | 134,272,710.38 | | Notes Receivable | 41,777,514.77 | 36,904,227.19 | | Receivables Financing | 14,344,976.17 | 18,055,682.89 | | Prepayments | 179,416,199.38 | 140,488,382.04 | | Other Receivables | 321,998,154.78 | 317,697,476.03 | | Less: Provision for Bad Debts on Other Receivables | 93,412,143.51 | 93,041,852.39 | | Non-current Assets Due Within One Year | 14,666,392.82 | 26,597,785.36 | | Total | 1,474,417,194.33 | 1,470,299,332.03 | Accounts Receivable Aging Analysis (As of June 30, 2025) | Aging | As of June 30, 2025 (RMB) | As of December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 1 year | 512,746,062.02 | 540,139,017.80 | | 1-2 years | 168,691,267.01 | 188,934,086.00 | | 2-3 years | 180,468,225.19 | 192,854,302.94 | | Over 3 years | 272,364,960.69 | 235,942,934.55 | | Total | 1,134,270,514.91 | 1,157,870,341.29 | Other Payables As of June 30, 2025, the Group's total accounts payable decreased to RMB 500,160,664.40, with approximately 73.39% due within 90 days Other Payables Aging Analysis (As of June 30, 2025) | Aging | As of June 30, 2025 (RMB) | As of December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 90 days | 367,098,862.85 | 479,203,580.77 | | 91 to 180 days | 17,720,105.81 | 23,751,599.77 | | 181 to 365 days | 40,511,096.30 | 34,502,763.87 | | Over 1 year | 74,830,599.44 | 77,278,936.55 | | Accounts Payable | 500,160,664.40 | 614,736,880.96 | | Advances from Customers | 935,274.72 | 963,309.66 | | Other Payables | 205,174,029.45 | 223,215,429.02 | | Total | 706,269,968.57 | 838,915,619.64 | Net Current Assets As of June 30, 2025, the Group's net current assets improved to RMB -149,680,265.62 from RMB -313,272,315.54 at the beginning of the period, though still negative Net Current Assets (As of June 30, 2025) | Indicator | As of June 30, 2025 (RMB) | As of December 31, 2024 (RMB) | | :--- | :--- | :--- | | Current Assets | 3,600,500,457.56 | 3,563,956,903.50 | | Less: Current Liabilities | 3,750,180,723.18 | 3,877,229,219.04 | | Net Current Assets | -149,680,265.62 | -313,272,315.54 | Total Assets Less Current Liabilities As of June 30, 2025, the Group's total assets less current liabilities were RMB 7,275,346,624.31, a slight decrease from the beginning of the period Total Assets Less Current Liabilities (As of June 30, 2025) | Indicator | As of June 30, 2025 (RMB) | As of December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 11,025,527,347.49 | 11,278,479,415.46 | | Less: Current Liabilities | 3,750,180,723.18 | 3,877,229,219.04 | | Total Assets Less Current Liabilities | 7,275,346,624.31 | 7,401,250,196.42 | Leases As a lessor, the Group's minimum lease receivables within one year were RMB 10,894,111.22 as of June 30, 2025, while as a lessee, total cash outflow related to leases was RMB 7,112,406.89 Minimum Lease Receivables as Lessor (As of June 30, 2025) | Period | As of June 30, 2025 (RMB) | As of June 30, 2024 (RMB) | | :--- | :--- | :--- | | Within one year | 10,894,111.22 | 12,871,557.61 | | One to two years | 9,126,505.20 | 10,015,500.59 | | Total | 20,020,616.42 | 22,887,058.20 | Lease Expenses as Lessee (As of June 30, 2025) | Type | Amount (RMB) | | :--- | :--- | | Short-term lease expenses recognized in profit or loss | 4,091,997.49 | | Total cash outflow related to leases | 7,112,406.89 | Changes in Consolidation Scope During the reporting period, the Group added a new subsidiary, Dongjiang Auto Resource Recycling (Hubei) Co., Ltd., established on June 3, 2025, with a 51.00% equity interest Increase in Consolidation Scope (As of June 30, 2025) | Company Name | Method of Acquisition | Date of Acquisition | Capital Contribution (RMB) | Equity Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Dongjiang Auto Resource Recycling (Hubei) Co., Ltd. | Newly established subsidiary | June 3, 2025 | 25,500,000.00 | 51.00 | Commitments and Contingencies The Group has various significant commitments and contingencies, including major outsourcing contracts, capital expenditure commitments, and ongoing lawsuits related to concession agreements and frozen funds Significant Commitments As of June 30, 2025, the Group's total significant commitments amounted to RMB 91,640,595.22, a decrease from the beginning of the period Significant Commitments (As of June 30, 2025) | Item | Period-end Balance (RMB) | Period-beginning Balance (RMB) | | :--- | :--- | :--- | | – Major Outsourcing Contracts | 57,171,416.77 | 71,830,125.95 | | – Commitments for Construction of Long-term Assets | 23,043,041.61 | 23,002,506.21 | | – External Investment Commitments | 11,426,136.84 | 23,406,302.44 | | Total | 91,640,595.22 | 118,238,934.60 | Contingencies The Group faces multiple contingencies, including an administrative lawsuit against Shaoyang Municipal Government for unilateral termination of a concession agreement and a lawsuit involving frozen funds - Shaoyang Municipal Government unilaterally terminated the concession agreement for the urban domestic waste sanitary landfill, and the company has initiated administrative litigation seeking compensation for project investment and other costs[94][95] - Subsidiary Hunan Dongjiang was sued by Jiayuan Environmental for early termination of a leachate treatment operation service contract, seeking service fees and compensation, to which Hunan Dongjiang has filed a counterclaim[97][98] - Due to a contract dispute, a portion of the company's special fund account for raised funds, amounting to RMB 96,317,554.88, has been frozen, with the case still under trial[100] Related Party Transactions The Group engages in related party transactions including goods and services, guarantees, and key management personnel compensation, with specific figures for the first half of 2025 Related Party Transactions for Goods and Services For the six months ended June 30, 2025, total purchases of goods and acceptance of services from related parties amounted to RMB 2,613,936.66, while sales of goods and provision of services to related parties totaled RMB 4,613,057.52 Purchases of Goods and Acceptance of Services from Related Parties (For the six months ended June 30, 2025) | Related Party | Nature of Related Party Transaction | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | :--- | | Joint Ventures | Acceptance of Services | 818,201.04 | 8,602.31 | | Associates | Acceptance of Services | 58,129.41 | 28,308.83 | | Other Related Parties | Purchase of Goods and Acceptance of Services | 1,737,606.21 | 2,249,951.15 | | Total | | 2,613,936.66 | 2,286,862.29 | Sales of Goods and Provision of Services to Related Parties (For the six months ended June 30, 2025) | Related Party | Nature of Related Party Transaction | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | :--- | | Joint Ventures | Trademark Usage Fees and Provision of Services | 2,589,948.73 | 4,070,798.84 | | Associates | Provision of Services | 0.00 | 365,015.09 | | Other Related Parties | Provision of Services | 2,023,108.79 | 2,320,520.37 | | Total | | 4,613,057.52 | 6,756,334.30 | Guarantees The Company provides guarantees for several subsidiaries and associates, with amounts ranging from RMB 44 million to RMB 246 million, and maturity dates extending as late as 2033 Guarantees (As of June 30, 2025) | Guaranteed Party | Related Party Relationship | Guaranteed Amount (RMB) | Guarantee Start Date | Guarantee End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Mianyang Dongjiang Environmental Technology Co., Ltd. | Subsidiary | 246,000,000.00 | April 1, 2021 | March 25, 2030 | No | | Foshan Fulong Environmental Technology Co., Ltd. | Subsidiary | 160,497,000.00 | March 18, 2020 | March 18, 2030 | No | | Xiamen Green Oasis Environmental Industry Co., Ltd. | Subsidiary | 80,000,000.00 | June 27, 2024 | June 27, 2027 | No | | Fujian Xingye Dongjiang Environmental Technology Co., Ltd. | Associate | 57,375,000.00 | June 30, 2021 | September 15, 2026 | No | | Dongguan Fengye Solid Waste Treatment Co., Ltd. | Associate | 44,000,000.00 | October 15, 2018 | October 15, 2033 | No | Key Management Personnel Compensation For the six months ended June 30, 2025, the Group's total key management personnel compensation was RMB 3,620,453.15, an increase from the prior year Key Management Personnel Compensation (For the six months ended June 30, 2025) | Item | First Half 2025 (RMB) | First Half 2024 (RMB) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 3,620,453.15 | 3,364,618.13 | Approval of Condensed Interim Financial Information The Group's condensed interim financial information for the six months ended June 30, 2025, was approved by the Board of Directors on August 22, 2025 - The condensed interim financial information was approved by the Board of Directors on August 22, 2025[110] Management Discussion and Analysis Business Review In the first half of 2025, hazardous waste collection volume grew over 10%, but intense competition led to reduced profit margins, and precious metal recycling revenue declined over 20% - Hazardous waste collection volume grew over 10%, but collection prices for harmless treatment business decreased, and collection discount rates for resource utilization business increased, leading to narrower profit margins[111] - Revenue from precious metal recycling business decreased over 20%, significantly impacted by metal prices[111] - The company achieved operating revenue of RMB 1.50 billion, a year-on-year decrease of 3.40%; net loss attributable to parent company shareholders was RMB 278 million, an increase in loss of 8.09% year-on-year[112] - New product sales surged by 272% year-on-year, and the company entered the automotive parts remanufacturing sector by establishing a joint venture[112][113] - Continuous increase in R&D investment, with 15 new patent applications and 30 authorized patents in the first half, and AI technology applied to the integrated environmental services industry chain[113] Financial Review The Group's total operating revenue decreased by 3.40% to RMB 1.50 billion in the first half of 2025, primarily due to reduced precious metal recycling revenue, leading to a decline in comprehensive gross profit margin and expanded net loss Total Operating Revenue For the six months ended June 30, 2025, the Group's total operating revenue was RMB 1,500,470,309.76, a year-on-year decrease of 3.40%, mainly due to reduced precious metal recycling revenue Total Operating Revenue and Major Business Revenue Changes (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,500,470,309.76 | 1,553,358,452.26 | -3.40% | | Precious Metal Recycling and Utilization Business Revenue | 287,227,264.88 | 396,750,877.20 | -27.61% | | Industrial Waste Treatment and Disposal Operating Revenue | 396,990,856.03 | 401,533,859.48 | -1.13% | | Resource Utilization Product Sales Business Revenue | 646,104,217.38 | 564,376,350.26 | +14.48% | Profit For the six months ended June 30, 2025, the Group's comprehensive gross profit margin was 3.24%, a decrease of 1.76 percentage points, with net loss attributable to parent company shareholders widening by 8.09% Profit Indicator Changes (For the six months ended June 30, 2025) | Indicator | First Half 2025 | First Half 2024 | Change | | :--- | :--- | :--- | :--- | | Comprehensive Gross Profit Margin | 3.24% | 5.00% | -1.76 percentage points | | Net Profit Attributable to Parent Company Shareholders | -278,177,080.22 RMB | -257,357,295.18 RMB | Loss widened by 8.09% | Selling Expenses For the six months ended June 30, 2025, the Group's selling expenses increased by 9.25% to RMB 41,851,616.53, primarily due to increased business commissions from higher hazardous waste collection volume Selling Expenses Changes (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | | Selling Expenses | 41,851,616.53 | 38,307,401.98 | +9.25% | | % of Total Operating Revenue | 2.79% | 2.47% | +0.32 percentage points | Administrative Expenses For the six months ended June 30, 2025, the Group's administrative expenses decreased by 8.77% to RMB 170,893,774.94, primarily due to effective control measures Administrative Expenses Changes (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | | Administrative Expenses | 170,893,774.94 | 187,314,630.91 | -8.77% | | % of Total Operating Revenue | 11.39% | 12.06% | -0.67 percentage points | Finance Costs For the six months ended June 30, 2025, the Group's finance costs were RMB 93,874,720.66, remaining largely stable year-on-year, representing 6.26% of total operating revenue Finance Costs Changes (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | | Finance Costs | 93,874,720.66 | 93,895,258.94 | -0.02% | | % of Total Operating Revenue | 6.26% | 6.04% | +0.22 percentage points | Income Tax Expense For the six months ended June 30, 2025, the Group's income tax expense decreased by 19.03% to RMB 3,460,345.21, primarily due to a reduction in total profit during the reporting period Income Tax Expense Changes (For the six months ended June 30, 2025) | Indicator | First Half 2025 (RMB) | First Half 2024 (RMB) | Year-on-year Change Rate | | :--- | :--- | :--- | :--- | | Income Tax Expense | 3,460,345.21 | 4,273,546.78 | -19.03% | | % of Total Profit | -1.07% | -1.36% | +0.29 percentage points | Financial Position and Liquidity As of June 30, 2025, the Group's net current assets improved to RMB -149,680,265.62, with cash and cash equivalents of approximately RMB 1.05 billion, and the Board considers the financial position solid Key Financial Position and Liquidity Data (As of June 30, 2025) | Indicator | As of June 30, 2025 (RMB) | As of December 31, 2024 (RMB) | | :--- | :--- | :--- | | Net Current Assets | -149,680,265.62 | -313,272,315.54 | | Cash and Cash Equivalents | 1,051,200,772.35 | 1,016,307,175.22 | | Total Liabilities | 7,200,623,387.22 | 7,127,589,598.80 | | Debt-to-Asset Ratio | 65.31% | 63.20% | | Bank Loans | 4,827,608,335.70 | 5,088,018,406.13 | - Management believes the Group has a solid financial position and sufficient liquidity to meet its operational and future business development needs[121] Significant Investments, Acquisitions, and Disposals During the reporting period, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[122] Future Major Investment or Capital Asset Plans Other than those disclosed in this report, the Group has no other future major investment or capital asset plans - Other than those disclosed in this report, the Group has no other future major investment or capital asset plans[123] Interest Rate and Foreign Exchange Risk The Group faces fair value interest rate risk from fixed-rate bank loans and cash flow interest rate risk from floating-rate bank loans, and manages foreign exchange risk through forward foreign exchange contracts - The Group is exposed to fair value interest rate risk from fixed-rate bank loans and cash flow interest rate risk from floating-rate bank loans, currently without an interest rate hedging policy but under monitoring[124] - Foreign exchange risk primarily arises from assets and liabilities denominated in HKD and USD, and the company has adopted forward foreign exchange contracts to mitigate foreign exchange risk[125] Contingent Liabilities Other than the contingent matters disclosed in Note 15 to the financial statements, the Group had no other significant contingent liabilities for the six months ended June 30, 2025 - Other than the contingent matters disclosed in Note 15 to the financial statements, the Group had no other significant contingent liabilities[126] Employee Information and Remuneration Policy As of June 30, 2025, the Group had 3,904 full-time employees, with total staff costs of approximately RMB 275 million, and provides continuous training and various benefits Employee Information and Remuneration (As of June 30, 2025) | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 3,904 | 3,984 | | Total Staff Costs (For the six months ended June 30, RMB) | 274,589,998.00 | 278,693,042.50 | - The Group provides employees with continuous training, a remuneration package, and a range of additional benefits, including retirement benefits, housing allowances, and medical insurance[127] Other Information Events During the Period During the reporting period, the Company fulfilled guarantee obligations for subsidiaries, signed a new financial services agreement, issued the first tranche of 2025 medium-term notes, and changed its H-share registrar Fulfillment of Guarantee Obligations The Company fulfilled guarantee obligations for subsidiary Mianyang Dongjiang's loan to Postal Savings Bank, totaling RMB 21.805 million, and for subsidiary Tangshan Wanders' loan to HSBC, totaling RMB 111.0977 million[128][129] New Financial Services Agreement The Company signed a new financial services agreement with Guang Sheng Finance on December 24, 2024, which was approved by independent shareholders on April 23, 2025[131] Issuance of First Tranche of 2025 Medium-Term Notes On March 27, 2025, the Company successfully issued the first tranche of 2025 medium-term notes, amounting to RMB 400 million with an annual interest rate of 2.66%[132] Change of H-share Registrar Effective July 27, 2025, the Company's H-share registrar has been changed to Tricor Investor Services Limited[133] Use of Proceeds from Non-public Issuance of A-shares The net proceeds from the non-public issuance of A-shares were approximately RMB 1.194 billion, with RMB 8.95 million utilized as of June 30, 2025, and some projects extended Use of Proceeds from Non-public Issuance of A-shares (As of June 30, 2025) | Proposed Use of Proceeds | Allocation of Net Proceeds (RMB million) | Net Proceeds Unutilized as of Jan 1, 2025 (RMB million) | Net Proceeds Utilized for the six months ended June 30, 2025 (RMB million) | Net Proceeds Unutilized as of June 30, 2025 (RMB million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction of Jieyang Grand Nanhai Petrochemical Industrial Zone Green Circular Center Phase I Project | 410.00 | 271.52 | 7.26 | 264.26 | On or before December 2025 | | Expansion of Wastewater Treatment Plant (Phase II) in Jiangling County, Jingzhou City, Hubei Province | 165.00 | 93.99 | – | 93.99 | On or before December 2025 | | Digital Intelligence Construction Project | 184.31 | 160.25 | 0.09 | 160.16 | On or before December 2028 | | Hazardous Waste Treatment Renovation and Upgrade Project | 95.00 | 64.88 | 1.60 | 63.28 | On or before December 2028 | | Supplement General Working Capital | 340.00 | – | – | – | – | | Total | 1,194.31 | 590.64 | 8.95 | 581.69 | | - The company has extended the timeline for some of the raised fund investment projects[136] Directors', Supervisors', and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures As of June 30, 2025, no directors, supervisors, or chief executives held disclosable interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures - As of June 30, 2025, no directors, supervisors, or chief executives of the Company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[137] Major Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Guang Sheng Holdings Group, Baowu Environmental Technology, and Huihong Group were major shareholders, holding interests in the Company's A-shares and H-shares Major Shareholders' Interests and Short Positions in Shares and Underlying Shares (As of June 30, 2025) | Shareholder Name | Nature of Interest | Share Class | Number of Shares (shares) | Long/Short Position | Approx. % of Relevant Share Class | % of Company's Issued Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guang Sheng Holdings Group | Beneficial Owner | A-shares | 266,279,028 | Long Position | 29.42% | 24.09% | | | Interest in Controlled Corporation | H-shares | 25,179,200 | Long Position | 12.58% | 2.28% | | Baowu Environmental Technology | Beneficial Owner | A-shares | 86,629,001 | Long Position | 9.57% | 7.84% | | | Interest in Controlled Corporation | A-shares | 37,664,783 | Long Position | 4.16% | 4.16% | | Huihong Group | Beneficial Owner | A-shares | 50,087,669 | Long Position | 5.53% | 4.53% | | | Interest in Controlled Corporation | A-shares | 25,995,038 | Long Position | 2.87% | 2.35% | | | Interest in Controlled Corporation | H-shares | 18,204,800 | Long Position | 9.10% | 1.65% | Share Schemes During the reporting period, the Group did not implement any share schemes as defined by Chapter 17 of the Listing Rules - During the reporting period, the Group did not implement any share schemes as defined by Chapter 17 of the Listing Rules[142] Competing Interests or Businesses During the reporting period, no directors, supervisors, chief executives, or major shareholders and their respective associates held interests in businesses directly or indirectly competing with the Group's business - During the reporting period, no directors, supervisors, chief executives, or major shareholders and their associates held interests in businesses directly or indirectly competing with the Group's business[143] Audit and Risk Management Committee and Review of Interim Results The Company's Audit and Risk Management Committee, comprising Mr. Li Guodong (Chairman), Mr. Li Jinhui, and Mr. Wang Shi, reviewed the Group's interim results and financial statements for the six months ended June 30, 2025 - The Audit and Risk Management Committee is responsible for reviewing and overseeing the Group's financial reporting procedures, risk management, and internal audit functions[144] - The Committee has reviewed the Group's interim results and financial statements for the six months ended June 30, 2025, but these statements have not been audited by the Company's auditors[144] Purchase, Sale, or Redemption of Listed Securities During the reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[145] Interim Dividends The Board of Directors does not recommend