国泰环保(301203) - 2025 Q2 - 季度财报

Part I: Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, outlines the report's structure, and defines key terms for clarity Important Notice The Board, Supervisory Board, and senior management guarantee the report's accuracy, with no cash dividends or capital reserve conversions planned - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility[5] - Company head Chen Baixiao, chief accountant Chen Huaqin, and head of accounting department Li Yaping declare the financial report in this semi-annual report is true, accurate, and complete[5] - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the report's overall structure, including eight main chapters and their corresponding page numbers Report Chapter Directory | Chapter | Title | Page Number | | :--- | :--- | :--- | | Part I | Important Notice, Table of Contents, and Definitions | 2 | | Part II | Company Profile and Key Financial Indicators | 6 | | Part III | Management Discussion and Analysis | 9 | | Part IV | Corporate Governance, Environment, and Society | 25 | | Part V | Significant Matters | 27 | | Part VI | Share Changes and Shareholder Information | 31 | | Part VII | Bond-Related Information | 35 | | Part VIII | Financial Report | 36 | Reference Documents Reference documents include signed financial statements, public disclosures, and other materials, available at the company's securities affairs department - Reference documents include financial statements signed and sealed by the company's head, chief accountant, and head of the accounting department (accounting manager)[9] - Reference documents also include the originals of all company documents publicly disclosed during the reporting period and announcement drafts[10] - The aforementioned reference documents are available at the company's Securities Affairs Department[12] Definitions This section defines common terms used in the report, covering company names, related parties, financial units, and specialized sludge treatment terminology - "The Company, Company, Guotai Environmental" refers to Hangzhou Guotai Environmental Technology Co., Ltd[13] - "Reporting Period" refers to January 1, 2025, to June 30, 2025[13] - "Company's Deep Dewatering" refers to the company's independently developed sludge deep dewatering technology, which dewaters sludge to approximately 45% moisture content, with some sludge dewatered to below 40%[13] Part II: Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents key financial performance metrics Company Profile Hangzhou Guotai Environmental Technology Co., Ltd. (Stock Code: 301203) is listed on the Shenzhen Stock Exchange, with Chen Baixiao as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Guotai Environmental | | Stock Code | 301203 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | Hangzhou Guotai Environmental Technology Co., Ltd. | | Company's Legal Representative | Chen Baixiao | Contact Information The company's Board Secretary is Shen Jialiang, and the Securities Affairs Representative is Tian Qunchao, both located at 8th Floor, 398 Jinhui Road, Xiaoshan District, Hangzhou, Zhejiang Province Company Contact Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Shen Jialiang | Tian Qunchao | | Contact Address | 8th Floor, 398 Jinhui Road, Xiaoshan District, Hangzhou, Zhejiang Province | 8th Floor, 398 Jinhui Road, Xiaoshan District, Hangzhou, Zhejiang Province | | Phone | 0571-83733615 | 0571-83733615 | | Fax | 0571-82896399 | 0571-82896399 | | Email | gthb@mail.hzgthb.com | gthb@mail.hzgthb.com | Other Information During the reporting period, there were no changes in the company's contact details, information disclosure, or registration status, as detailed in the 2024 annual report - The company's registered address, office address and postal code, website, and email address remained unchanged during the reporting period; refer to the 2024 annual report[17] - The securities exchange website and media name and URL for the company's semi-annual report disclosure, and the company's semi-annual report placement location remained unchanged during the reporting period; refer to the 2024 annual report[18] - The company's registration status remained unchanged during the reporting period; refer to the 2024 annual report[20] Key Accounting Data and Financial Indicators This reporting period saw a 1.14% decrease in operating revenue and a 6.40% decrease in net profit attributable to shareholders, while net cash flow from operating activities increased by 47.84% Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 166,987,559.50 | 168,905,803.49 | -1.14% | | Net Profit Attributable to Shareholders of Listed Company | 66,034,872.37 | 70,551,247.35 | -6.40% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 63,018,176.57 | 70,076,887.06 | -10.07% | | Net Cash Flow from Operating Activities | 61,188,433.85 | 41,387,149.48 | 47.84% | | Basic Earnings Per Share (RMB/share) | 0.83 | 0.88 | -5.68% | | Diluted Earnings Per Share (RMB/share) | 0.83 | 0.88 | -5.68% | | Weighted Average Return on Net Assets | 4.63% | 4.86% | -0.23% | | Indicator | End of Current Reporting Period (RMB) | End of Prior Year (RMB) | Change from End of Prior Year | | Total Assets | 1,519,388,853.98 | 1,522,485,043.60 | -0.20% | | Net Assets Attributable to Shareholders of Listed Company | 1,449,170,448.49 | 1,447,135,576.12 | 0.14% | Differences in Accounting Data under Domestic and Foreign Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports prepared under international or foreign accounting standards and those under Chinese accounting standards - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and those under Chinese Accounting Standards[22] - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under foreign accounting standards and those under Chinese Accounting Standards[23] Non-Recurring Gains and Losses Total non-recurring gains and losses for this reporting period amounted to 3,016,695.80 RMB, primarily from non-current asset disposal, government grants, and wealth management income, net of tax and minority interest Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/losses from disposal of non-current assets | 522,863.39 | Mainly gains/losses from disposal of right-of-use assets | | Government grants recognized in current profit or loss | 2,702,089.57 | Mainly fiscal subsidies | | Gains/losses from entrusted investments or asset management | 814,780.42 | Mainly investment income from wealth management products | | Other non-operating income and expenses apart from the above | -197,832.39 | Mainly traffic accident compensation expenses | | Less: Income tax impact | 580,458.09 | | | Minority interest impact (after tax) | 244,747.10 | | | Total | 3,016,695.80 | | Part III: Management Discussion and Analysis This section analyzes the company's business operations, core competencies, financial performance, and risks during the reporting period Main Business Activities during the Reporting Period The company's main business includes sludge treatment services, manufacturing and sales of environmental equipment for sludge and new energy industries, and water environment ecological restoration - The company's main business includes sludge treatment services, manufacturing and sales of environmental equipment for sludge and new energy industries, and water environment ecological restoration[28] - The company's cumulative total scale of sludge treatment projects is approximately 3 million tons/year, leading its listed peers[29] - The company is advancing overseas business, including VOC treatment and resource recovery equipment for the lithium battery industry in Europe, and oil sludge treatment and other oilfield pollution control equipment in the Middle East[32] Company's Main Business Activities The company focuses on sludge treatment and resource utilization, providing deep dewatering and fuelization services with a cumulative scale of approximately 3 million tons/year, demonstrating significant economic and energy efficiency - The company's cumulative total scale of sludge treatment projects is approximately 3 million tons/year, leading its listed peers[29] - Compared to projects using overseas technology, the company's typical sludge disposal projects can save 90% in investment and reduce operating costs by 50% during the operating period, with deep dewatering technology saving over 90% more energy than thermal drying technology[29] - The company has achieved R&D and application of complete sets of equipment in sludge treatment, oil sludge treatment, high-salinity wastewater treatment, other novel wastewater treatment processes and equipment, VOC treatment and resource recovery, and oilfield pollution control[32] Operating Model The company's sludge treatment services primarily utilize BOO and O&M models, with pricing determined by bidding or market negotiation, and new projects targeting large cities in economically developed regions Sludge Treatment Project Operating Models | No. | Project Name | Operating Model | Operating Period | | :--- | :--- | :--- | :--- | | 1 | Qige Project | Build-Own-Operate (BOO) / Operate & Maintain (O&M) | 2009 to June 2031 | | 2 | Linjiang Project | Build-Own-Operate (BOO) / Operate & Maintain (O&M) | 2007 to January 2033 | | 3 | Shaoxing Project | Build-Own-Operate (BOO) | 2012 to April 2030 | - The company's sludge treatment service fees are generally determined through bidding, government pricing, or negotiation based on market prices for similar services, with agreed-upon adjustment mechanisms[34][35] - The company's main target projects for sludge treatment services are those with a scale of 500 tons/day or more, located in large and medium-sized cities in economically developed regions[36] Analysis of Core Competencies The company's core strengths lie in its robust R&D innovation system, multidisciplinary talent pool, and leading technical and operational advantages in sludge deep dewatering - The company's technology center has been recognized as a "Zhejiang Provincial Enterprise Technology Center" since 2015 and a Zhejiang Provincial Enterprise Research Institute in 2017[42] - The company has successfully developed sludge deep dewatering technology, achieving sludge dewatering and volume reduction to approximately 45% moisture content under ambient temperature and low pressure through unique conditioning agent formulations and processes[45] - The per-ton investment cost and operating cost of the company's deep dewatering technology are approximately 1/5 of thermal drying technology and 1/3 and 1/2 of conventional mechanical dewatering routes, respectively[47] R&D and Talent Advantages The company has established a comprehensive R&D innovation system, continuously developing and reserving technologies in sludge treatment, wastewater treatment, and water environment ecological restoration, supported by a multidisciplinary professional R&D team - The company's technology center has been recognized as a "Zhejiang Provincial Enterprise Technology Center" since 2015 and a Zhejiang Provincial Enterprise Research Institute in 2017[42] - The company continuously conducts R&D activities, primarily focusing on adapting to sludge changes, subsequent disposal pathways, reducing consumption, improving quality and efficiency, technology reserves, and production environmental automation[42] - The company actively promotes exchanges and cooperation with universities and research institutes such as Tongji University, Zhejiang University of Technology, and Qingdao University of Technology, integrating cutting-edge theories with engineering application experience[43] Technical and Operational Advantages The company's sludge deep dewatering technology achieves approximately 45% moisture content at ambient temperature and low pressure, offering high economic efficiency, safety, adaptability, energy saving, and resource utilization, aligning with market demand and green development strategies - The company has successfully developed sludge deep dewatering technology, achieving sludge dewatering and volume reduction to approximately 45% moisture content under ambient temperature and low pressure through unique conditioning agent formulations and processes[45] - The per-ton investment cost and operating cost of the company's deep dewatering technology are approximately 1/5 of thermal drying technology and 1/3 and 1/2 of conventional mechanical dewatering routes, respectively[47] - The lithium battery solvent (NMP) and waste heat recovery and recycling equipment developed by the company can effectively improve NMP recovery and utilization, with full-process air emission concentrations below EU standards[52] Main Business Analysis Operating revenue slightly decreased, but net cash flow from operating activities significantly increased; sludge treatment services remain the primary revenue source, with a 55.73% gross margin, though down 4.63% year-on-year Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 166,987,559.50 | 168,905,803.49 | -1.14% | | | Selling Expenses | 1,557,460.36 | 979,680.54 | 58.98% | Mainly due to increased bidding service fees and employee compensation in this period | | R&D Investment | 8,088,431.11 | 9,168,373.16 | -11.78% | | | Net Cash Flow from Operating Activities | 61,188,433.85 | 41,387,149.48 | 47.84% | Mainly due to reduced inventory purchases in this period | Product or Service Accounting for Over 10% of Revenue | Product or Service | Operating Revenue | Operating Cost | Gross Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sludge Treatment Services | 154,517,243.13 | 68,406,253.82 | 55.73% | 12.22% | 25.32% | -4.63% | Non-Main Business Analysis Non-main business had a minor impact on total profit, primarily from wealth management income, contract asset impairment, and traffic accident compensation, which are non-recurring items Non-Main Business Analysis | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,026,646.00 | 1.34% | Mainly investment income from wealth management products | No | | Asset Impairment | -24,391.74 | -0.03% | Contract asset impairment provision | No | | Non-Operating Expenses | 197,832.39 | 0.26% | Mainly traffic accident compensation expenses | No | Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders remained stable, with cash and equivalents being the largest component, while 16,399,077.23 RMB of cash was restricted at period-end Significant Changes in Asset Composition (Period-End Balance) | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Equivalents | 957,848,530.41 | 63.04% | 946,549,625.11 | 62.17% | 0.87% | | Accounts Receivable | 164,437,170.88 | 10.82% | 138,225,589.34 | 9.08% | 1.74% | | Inventory | 1,955,709.75 | 0.13% | 14,149,620.30 | 0.93% | -0.80% | | Construction in Progress | 226,376,382.80 | 14.90% | 221,257,354.06 | 14.53% | 0.37% | | Contract Liabilities | 810,662.79 | 0.05% | 2,438,897.52 | 0.16% | -0.11% | Assets and Liabilities Measured at Fair Value (Period-End) | Item | Period-End Amount (RMB) | | :--- | :--- | | 5. Other Non-Current Financial Assets | 30,000,000.00 | | Accounts Receivable Financing | 13,207,612.01 | | Total Above | 43,207,612.01 | - As of the end of the reporting period, a total of 16,399,077.23 RMB in cash and equivalents was restricted, mainly for letter of guarantee deposits, ETC deposits, and unexpired accrued interest[67] Investment Analysis Total investment decreased significantly by 69.79% year-on-year, with major non-equity investment projects delayed due to economic uncertainty and industry fluctuations, and 823.8535 million RMB of raised capital remaining unutilized - The equipment manufacturing base project and R&D center project are delayed due to comprehensive consideration of current economic environment uncertainties, industry development cycle fluctuations, and the company's overall operational situation, leading to slower-than-expected project investment progress[70][71] - As of June 30, 2025, the company's unused raised funds balance was 823,853,500 RMB, which includes net interest income from raised funds after deducting handling fees totaling 32,653,600 RMB[75] Overall Situation During the reporting period, the company's investment amounted to 5,119,028.74 RMB, a significant decrease of 69.79% compared to 16,946,325.08 RMB in the prior year period Investment Amount for the Reporting Period | Indicator | Investment Amount for Reporting Period (RMB) | Investment Amount for Prior Year Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 5,119,028.74 | 16,946,325.08 | -69.79% | Significant Non-Equity Investments in Progress during the Reporting Period The company's equipment manufacturing base project and R&D center project are delayed due to economic uncertainties, industry fluctuations, and operational considerations, with new completion dates set for 2026 and 2025, respectively - In the implementation of the equipment manufacturing base project, the company comprehensively considered the uncertainties of the current economic environment, fluctuations in the industry development cycle, and the company's overall operational situation, leading to slower-than-expected project investment progress, and has decided to postpone it until January 15, 2026[70][71] - The R&D center project has been delayed until December 9, 2025, due to appropriate adjustments to the project design based on the needs of R&D work and actual business development, resulting in construction progress not meeting original plans[71] Use of Raised Funds The company's net proceeds from its initial public offering were 856.536 million RMB, with a cumulative investment of 65.3361 million RMB (7.63% utilization rate), and the remaining 823.8535 million RMB held in special accounts and cash management Overall Use of Raised Funds | Total Raised Funds (10,000 RMB) | Net Raised Funds (10,000 RMB) | Total Raised Funds Used in Current Period (10,000 RMB) | Total Raised Funds Cumulatively Used (10,000 RMB) | Raised Funds Utilization Rate at Period-End | | :--- | :--- | :--- | :--- | :--- | | 92,260 | 85,653.6 | 292.27 | 6,533.61 | 7.63% | - As of June 30, 2025, the company's unused raised funds balance was 823,853,500 RMB, which includes net interest income from raised funds after deducting handling fees totaling 32,653,600 RMB[75] - The raised investment projects "Equipment Manufacturing Base Project" and "R&D Center Project" have both been delayed, postponed to January 15, 2026, and December 9, 2025, respectively[71][78] Wealth Management, Derivative Investments, and Entrusted Loans The company engaged in wealth management products using both raised and自有 funds, with an outstanding balance of 106 million RMB, but had no derivative investments or entrusted loans during the reporting period Overview of Wealth Management during the Reporting Period | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (10,000 RMB) | Unexpired Balance (10,000 RMB) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 12,100 | 7,600 | | Bank Wealth Management Products | Own Funds | 3,000.1 | 3,000 | | Brokerage Wealth Management Products | Raised Funds | 0 | 5,000 | | Total | | 15,100.1 | 15,600 | - The company had no derivative investments during the reporting period[83] - The company had no entrusted loans during the reporting period[84] Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[85] - The company did not sell significant equity during the reporting period[86] Analysis of Major Holding and Participating Companies Shaoxing Taipu Environmental Technology Co., Ltd. is a key subsidiary, generating 52,828,097.63 RMB in operating revenue and 12,292,319.57 RMB in net profit, with no new or disposed subsidiaries during the period Financial Performance of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shaoxing Taipu Environmental Technology Co., Ltd. | Subsidiary | Sludge Treatment Services | 12,000,000 | 96,806,657.21 | 55,949,713.57 | 52,828,097.63 | 13,936,061.14 | 12,292,319.57 | - The company did not acquire or dispose of any subsidiaries during the reporting period[87] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[88] Risks Faced by the Company and Countermeasures The company faces risks such as new projects not meeting expected commercial benefits, product/service substitution, loss of core technical personnel, and macroeconomic changes, which it addresses through technical adaptability, continuous upgrades, talent development, and prudent decision-making - Risk of new projects not meeting expected commercial benefits: Differences in wastewater composition, treatment processes, and discharge standards across cities may lead to higher short-term treatment costs and smaller treatment scales, resulting in new projects not meeting expected commercial benefits[88] - Risk of company products or services being substituted: If the company cannot accurately and timely upgrade and iterate more effective technical solutions to meet customer and relevant environmental policy requirements, its products or services may be replaced by competitors[89] - Risk of core technical personnel departure adversely affecting the company's continuous operation: The company's chairman has a comprehensive understanding and mastery of the sludge treatment and disposal technology system; if such personnel leave, it may temporarily affect the timeliness of the company's sludge treatment process adjustments and project design progress[90] - Impact of macroeconomic changes on the company's operations: Future changes in global and domestic macroeconomic conditions, or significant adverse changes in the environmental protection industry, may negatively impact the company's operating performance, financial condition, and long-term development prospects[91] Registration Form for Research, Communication, Interview, etc. Activities during the Reporting Period During the reporting period, the company held its 2024 annual performance briefing on the Shenzhen Stock Exchange's "Interactive Easy" platform on May 8, 2025, to communicate with investors Research Activities during the Reporting Period | Reception Date | Reception Location | Reception Method | Type of Reception Object | Main Content Discussed and Materials Provided | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | :--- | :--- | | May 08, 2025 | Shenzhen Stock Exchange "Interactive Easy" Platform | Other | Investors | 2024 Annual Performance Briefing | See "Investor Relations Activity Record Form" (No.: 2025-001) published on Juchao Information Network on May 8, 2025 | Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company adopted a "Market Value Management System" on April 22, 2025, to strengthen market value management and protect investor rights, but has not disclosed a valuation enhancement plan - The company has formulated a market value management system[93] - The company has not disclosed a valuation enhancement plan[93] - The company formulated the "Market Value Management System" and submitted it for review and approval at the tenth meeting of the Fourth Board of Directors on April 22, 2025[94] Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose any "Quality and Return Dual Improvement" action plan announcements during the reporting period - The company did not disclose any "Quality and Return Dual Improvement" action plan announcements during the reporting period[95] Part IV: Corporate Governance, Environment, and Society This section covers changes in governance personnel, profit distribution, incentive plans, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, and senior management, as detailed in the 2024 annual report - The company's directors, supervisors, and senior management did not change during the reporting period; refer to the 2024 annual report[97] Profit Distribution and Capital Reserve Conversion to Share Capital during the Reporting Period The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the half-year - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the half-year[98] Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[99] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises legally required to disclose environmental information - The listed company and its major subsidiaries are not included in the list of enterprises legally required to disclose environmental information[100] Social Responsibility The company prioritizes ESG, actively fulfilling social responsibilities by protecting stakeholder rights, ensuring safe production, promoting environmental protection through sludge treatment, and engaging in public welfare - The company's Board of Directors emphasizes the construction of an ESG system, integrating ESG concepts into daily operations and actively fulfilling social responsibilities[100] - The company, with its independently developed sludge treatment and disposal technology as its core, achieves clean energy output throughout the entire process of sludge dewatering and clean incineration, aligning with national "dual carbon" policy directives[103] - The company voluntarily donated 5 million RMB to the Zhejiang University of Technology Education Foundation to establish the "Zhejiang University of Technology Guotai Environmental Education Development Fund" for scientific research, college development, and other educational endeavors[104] Part V: Significant Matters This section details important events, commitments, and compliance matters affecting the company during the reporting period Commitments During the reporting period, there were no commitments made by the company's actual controllers, shareholders, related parties, acquirers, or the company that were fulfilled or overdue - During the reporting period, there were no commitments made by the company's actual controllers, shareholders, related parties, acquirers, or the company that were fulfilled or overdue[106] Non-Operating Funds Occupied During the reporting period, there were no instances of controlling shareholders or other related parties non-operationally occupying the listed company's funds - During the reporting period, there were no instances of controlling shareholders or other related parties non-operationally occupying the listed company's funds[107] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[108] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[109] Explanation of "Non-Standard Audit Report" by Board, Supervisory Board, and Audit Committee As there was no non-standard audit report for this reporting period, no explanation from the Board, Supervisory Board, or Audit Committee is required - Not applicable[110] Board's Explanation of "Non-Standard Audit Report" for Previous Year As there was no non-standard audit report for the previous year, no explanation from the Board is required - Not applicable[110] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[110] Litigation Matters The company had no significant litigation or arbitration matters during this reporting period - The company had no significant litigation or arbitration matters during this reporting period[111] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[112] Integrity Status The company, its controlling shareholder, and actual controllers had no unfulfilled commitments or dishonest behavior during the reporting period - Not applicable[113] Significant Related Party Transactions The company engaged in daily related party transactions, primarily purchasing utilities and engineering services and leasing from Zhejiang Guotai Construction Group Co., Ltd., and providing technical services to them Related Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | Related Transaction Amount (10,000 RMB) | Proportion of Similar Transactions | Approved Transaction Limit (10,000 RMB) | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Guotai Construction Group Co., Ltd. | Purchase of utilities, engineering services | 267.53 | 100.00% | 4,875.46 | | Zhejiang Guotai Construction Group Co., Ltd. | Property Lease | 23.81 | 100.00% | 47.62 | | Zhejiang Guotai Construction Group Co., Ltd. | Provision of Technical Services | 5.66 | 100.00% | | | Total | | 297.00 | | 4,923.08 | - The company had no related party transactions involving asset or equity acquisition or disposal during the reporting period[115] - The company had no related party creditor-debtor transactions during the reporting period[117] Significant Contracts and Their Performance The company had no trusteeship, contracting, or leasing matters, nor any significant guarantees during the reporting period, with no mentioned risks of non-performance for other significant contracts - The company had no trusteeship situations during the reporting period[122] - The company had no leasing situations during the reporting period[124] - The company had no significant guarantee situations during the reporting period[125] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[127] Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[128] Part VI: Share Changes and Shareholder Information This section details the company's share capital structure, shareholder composition, and any changes during the reporting period Share Changes During the reporting period, the company's total share capital remained at 80,000,000 shares, with the proportions of restricted and unrestricted shares unchanged at 45.20% and 54.80% respectively Share Changes | Share Type | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 36,157,500 | 45.20% | 0 | 36,157,500 | 45.20% | | II. Unrestricted Shares | 43,842,500 | 54.80% | 0 | 43,842,500 | 54.80% | | III. Total Shares | 80,000,000 | 100.00% | 0 | 80,000,000 | 100.00% | - During the reporting period, the company's total share capital remained unchanged[131] Issuance and Listing of Securities The company had no issuance or listing of securities during the reporting period - Not applicable[132] Number of Shareholders and Shareholding At the end of the reporting period, there were 6,611 common shareholders, with controlling shareholder Chen Baixiao holding 36.38%, and Jiangxi Wenxin Industrial Co., Ltd. having reduced its holdings and pledged 1,744,195 shares - At the end of the reporting period, the total number of common shareholders was 6,611[133] - Chen Baixiao is the company's controlling shareholder, and Chen Baixiao and Lu Wei are a married couple, serving as the company's actual controllers[133] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Change in Holdings during Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Baixiao | Domestic Natural Person | 36.38% | 29,100,000 | 0 | 29,100,000 | 0 | Not applicable | 0 | | Zhejiang Guotai Construction Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 7.50% | 6,000,000 | 0 | 0 | 6,000,000 | Not applicable | 0 | | Jiangxi Wenxin Industrial Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.18% | 1,744,195 | -2,025,365 | 0 | 1,744,195 | Pledged | 1,744,195 | Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period; refer to the 2024 annual report[135] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[136] - The company's actual controller did not change during the reporting period[137] Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[138] Part VII: Bond-Related Information This section confirms that there is no bond-related information for the company during the reporting period Bond-Related Information The company had no bond-related information during the reporting period - Not applicable[140] Part VIII: Financial Report This section presents the company's comprehensive financial statements and detailed notes for the reporting period Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[142] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[143][147][151][153][155][157][160][166] Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 1,519,388,853.98 RMB, with total liabilities of 56,906,338.81 RMB and total owners' equity of 1,462,482,515.17 RMB Consolidated Balance Sheet Key Data | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Current Assets | 1,200,072,443.46 | 1,223,116,092.53 | | Total Non-Current Assets | 319,316,410.52 | 299,368,951.07 | | Total Assets | 1,519,388,853.98 | 1,522,485,043.60 | | Total Current Liabilities | 54,550,512.50 | 60,672,134.19 | | Total Non-Current Liabilities | 2,355,826.31 | 1,820,861.00 | | Total Liabilities | 56,906,338.81 | 62,492,995.19 | | Total Owners' Equity Attributable to Parent Company | 1,449,170,448.49 | 1,447,135,576.12 | | Total Owners' Equity | 1,462,482,515.17 | 1,459,992,048.41 | Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was 166,987,559.50 RMB, with a net profit of 66,490,466.76 RMB, and basic earnings per share of 0.83 RMB Consolidated Income Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 166,987,559.50 | 168,905,803.49 | | Total Operating Costs | 87,564,880.87 | 87,787,319.95 | | Operating Profit | 76,951,110.61 | 82,564,590.80 | | Total Profit | 76,753,278.22 | 82,568,525.68 | | Net Profit | 66,490,466.76 | 71,559,762.75 | | Net Profit Attributable to Parent Company Shareholders | 66,034,872.37 | 70,551,247.35 | | Basic Earnings Per Share | 0.83 | 0.88 | Consolidated Cash Flow Statement For the first half of 2025, net cash flow from operating activities increased by 47.84% to 61,188,433.85 RMB, while investing and financing activities resulted in net outflows, with period-end cash and cash equivalents at 233,859,453.18 RMB Consolidated Cash Flow Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 61,188,433.85 | 41,387,149.48 | | Net Cash Flow from Investing Activities | -54,790,623.09 | -19,893,772.00 | | Net Cash Flow from Financing Activities | -66,009,102.79 | -122,426,081.78 | | Net Increase in Cash and Cash Equivalents | -59,611,292.03 | -100,932,704.30 | | Cash and Cash Equivalents at Period-End | 233,859,453.18 | 972,469,442.60 | Company Basic Information Hangzhou Guotai Environmental Technology Co., Ltd., established on June 25, 2014, with a registered capital of 80 million RMB, was listed on the Shenzhen Stock Exchange on April 4, 2023, specializing in ecological protection and environmental governance - Hangzhou Guotai Environmental Technology Co., Ltd. was established on June 25, 2014, with a registered capital of 80 million RMB and a total of 80 million shares[172] - The company's shares were listed and traded on the Shenzhen Stock Exchange on April 4, 2023[172] - The company belongs to the ecological protection and environmental governance industry, with main business activities including R&D and sales of environmental technologies and equipment for sludge treatment and water environment ecological restoration[172] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis[173] - The company has no matters or circumstances that would cause significant doubt about its ability to continue as a going concern for the next 12 months from the end of the reporting period[175] Significant Accounting Policies and Estimates The company has formulated specific accounting policies and estimates for financial instrument impairment, inventory, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition, adhering to enterprise accounting standards - The company has formulated specific accounting policies and estimates for transactions or matters such as financial instrument impairment, inventory, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition based on its actual production and operation characteristics[176] - The company assesses at each balance sheet date whether the credit risk of relevant financial instruments has significantly increased since initial recognition and makes loss provisions based on expected credit losses[195] - The company measures revenue by allocating the transaction price to each distinct performance obligation and recognizes revenue based on whether the performance obligation is satisfied over time or at a point in time[236] Taxes The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, property tax, and education surcharges, benefiting from various tax incentives such as a 70% VAT refund for sludge treatment and a 15% CIT rate for high-tech enterprises Main Tax Categories and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services, calculated as output tax minus input tax | 6%, 13% (varies for sludge treatment services based on treatment method) | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% (varies by taxpayer entity) | - The company and its subsidiary Shaoxing Taipu Environmental Technology Co., Ltd. enjoy a 70% VAT refund policy for sludge treatment services provided from January to June 2025[252] - The company and its subsidiaries Shaoxing Taipu Environmental Technology Co., Ltd. and Hangzhou Min'an Environmental Engineering Co., Ltd. apply a 15% corporate income tax rate from January to June 2025, benefiting from high-tech enterprise incentives[253] - The company and its subsidiaries enjoy a 100% super deduction policy for R&D expenses before tax[255] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including 958 million RMB in cash and equivalents (16.40 million RMB restricted), 187 million RMB in accounts receivable (22.34 million RMB impairment), and 226 million RMB in construction in progress Cash and Equivalents Period-End Balance | Item | Period-End Balance (RMB) | | :--- | :--- | | Cash on Hand | 37,953.90 | | Bank Deposits | 957,777,796.51 | | Other Cash and Equivalents | 32,780.00 | | Total | 957,848,530.41 | - Period-end bank deposits include unexpired accrued interest of 16,366,297.23 RMB, and other cash and equivalents include a guarantee deposit of 26,280.00 RMB for letters of guarantee and 6,500.00 RMB frozen for bank ETC[257] Accounts Receivable Period-End Balance and Impairment Provision | Category | Book Balance (RMB) | Impairment Provision (RMB) | Book Value (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable for which impairment provision is made by portfolio | 186,775,037.78 | 22,337,866.90 | 164,437,170.88 | Construction in Progress Period-End Balance | Item | Book Value (RMB) | | :--- | :--- | | Equipment Manufacturing Base Project | 16,312,581.27 | | R&D Center Project | 67,364,649.40 | | Sci-Tech Innovation Center Project | 134,325,266.28 | | Dangwan Xingfu Village Property Renovation Project | 8,373,885.85 | | Total | 226,376,382.80 | Operating Revenue and Operating Cost | Item | Revenue (RMB) | Cost (RMB) | | :--- | :--- | :--- | | Main Business | 166,789,619.58 | 75,461,509.80 | | Other Business | 197,939.92 | 78,303.60 | | Total | 166,987,559.50 | 75,539,813.40 | Financial Expenses | Item | Amount Incurred in Current Period (RMB) | | :--- | :--- | | Interest Income | -9,807,091.87 | | Interest Expense | 95,270.67 | | Handling Fees | 2,323.78 | | Total | -9,709,497.42 | R&D Expenses Total R&D expenses for this reporting period were 8,088,431.11 RMB, all expensed, primarily comprising personnel, direct input, depreciation, and technical service fees, with no capitalized R&D projects R&D Expense Composition | Item | Amount Incurred in Current Period (RMB) | Amount Incurred in Prior Period (RMB) | | :--- | :--- | :--- | | Personnel Expenses | 6,238,710.87 | 6,974,646.27 | | Direct Input | 692,636.39 | 1,485,150.34 | | Depreciation and Amortization | 280,232.81 | 175,377.03 | | Technical Service Fees | 655,410.68 | 194,174.76 | | Other | 221,440.36 | 339,024.76 | | Total | 8,088,431.11 | 9,168,373.16 | | Of which: Expensed R&D Expenditure | 8,088,431.11 | 9,168,373.16 | - There were no R&D projects meeting capitalization conditions in this period[536] Changes in Consolidation Scope The company's consolidation scope increased this period due to the establishment of Hainan Haoke Energy Technology Co., Ltd., with no non-same control, same control, reverse acquisition, or loss of control over subsidiaries - The consolidation scope increased in this period with the establishment of Hainan Haoke Energy Technology Co., Ltd., with the equity acquisition date being January 3, 2025, and the company's subscribed proportion being 51%[546] - No non-same control business combinations occurred in this period[538] - No same control business combinations occurred in this period[542] Interests in Other Entities The company holds interests in several subsidiaries, primarily in ecological protection and environmental governance, and an associate, Zhejiang Jianshui Environment Co., Ltd., with a period-end investment carrying value of 13,817,515.58 RMB Composition of Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Registered Capital (RMB) | Business Nature | Shareholding Proportion (Direct) | | :--- | :--- | :--- | :--- | | Shaoxing Taipu Environmental Technology Co., Ltd. | 12,000,000.00 | Ecological Protection and Environmental Governance | 100.00% | | Shanghai Danyuan Environmental Technology Co., Ltd. | 20,000,000.00 | Ecological Protection and Environmental Governance | 90.00% | | Hangzhou Min'an Environmental Engineering Co., Ltd. | 30,000,000.00 | Ecological Protection and Environmental Governance | 51.00% | | Hainan Haoke Energy Technology Co., Ltd. | 10,000,000.00 | Technology Promotion and Application Services | 51.00% | Financial Information of Significant Non-Wholly Owned Subsidiaries (Hangzhou Min'an Environmental Engineering Co., Ltd.) | Indicator | Amount Incurred in Current Period (RMB) | | :--- | :--- | | Minority Shareholding Proportion | 49.00% | | Net Profit Attributable to Minority Shareholders in Current Period | 475,766.55 | | Minority Interest Balance at Period-End | 12,749,454.98 | | Operating Revenue | 10,811,897.83 | | Net Profit | 970,952.14 | Summary Financial Information of Associates | Item | Period-End Balance/Amount Incurred in Current Period (RMB) | | :--- | :--- | | Total Investment Carrying Value | 13,817,515.58 | | Net Profit | 317,515.58 | | Total Comprehensive Income | 317,515.58 | Government Grants Total government grants recognized in current profit or loss for this reporting period amounted to 5,912,827.03 RMB, primarily through the "Other Income" account, with no disclosure of grants recognized based on receivables Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount Incurred in Current Period (RMB) | Amount Incurred in Prior Period (RMB) | | :--- | :--- | :--- | | Other Income | 5,912,827.03 | 4,092,200.07 | Risks Related to Financial Instruments The company faces credit, liquidity, and market risks (interest rate and foreign exchange), managing them through credit assessments, diverse financing, and noting that foreign exchange risk is not significant as most activities are RMB-denominated, with no hedging activities undertaken - The company faces various risks related to financial instruments in its daily activities, primarily including credit risk, liquidity risk, and market risk[563] - The company's credit risk mainly arises from cash and equivalents and accounts receivable; the company places bank deposits and other cash and equivalents in financial institutions with higher credit ratings and regularly conducts credit assessments for customers trading on credit[565] - To control liquidity risk, the company comprehensively utilizes various financing methods such as bill settlement and bank loans, and adopts an appropriate combination of long-term and short-term financing[566] - The company operates in mainland China, and its main activities are denominated in RMB; therefore, the foreign exchange market risk undertaken by the company is not significant[569] - The company does not engage in hedging activities for risk management[570] Disclosure of Fair Value At period-end, the company's total assets measured at fair value amounted to 43,207,612.01 RMB, primarily comprising other non-current financial assets and accounts receivable financing, all categorized as Level 3 fair value measurements Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | Other Non-Current Financial Assets | 30,000,000.00 | 30,000,000.00 | | Accounts Receivable Financing | 13,207,612.01 | 13,207,612.01 | | Total Assets Continuously Measured at Fair Value | 43,207,612.01 | 43,207,612.01 | - The company's accounts receivable financing measured at Level 3 fair value are bank acceptance bills, with their fair value determined by their face amount[577] - The company's other equity instrument investments measured at Level 3 fair value are equity interests in unlisted companies, with fair value estimated by comprehensively considering market approach and discounted future cash flow methods[577] Related Parties and Related Party Transactions The company's ultimate control rests with Chen Baixiao and Lu Wei, with significant related party transactions involving Zhejiang Guotai Construction Group Co., Ltd. for purchases, leases, and technical services, and key management personnel compensation totaling 2,494,000.00 RMB - The ultimate controlling parties of the company are Chen Baixiao and Lu Wei, who collectively hold 40.13% of the company's shares[578][579] Purchase of Goods/Acceptance of Services | Related Party | Related Transaction Content | Amount Incurred in Current Period (RMB) | | :--- | :--- | :--- | | Zhejiang Guotai Construction Group Co., Ltd. | Utilities, Engineering Services | 2,675,339.51 | The Company as Lessee (Related Party Lease) | Lessor Name | Type of Leased Asset | Rent Paid in Current Period (RMB) | | :--- | :--- | :--- | | Zhejiang Guotai Construction Group Co., Ltd. | Buildings | 476,190.48 | Key Management Personnel Compensation | Item | Amount Incurred in Current Period (RMB) | Amount Incurred in Prior Period (RMB) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 2,494,000.00 | 2,310,000.00 | Share-Based Payment The company had no share-based payment situations during the reporting period - Not applicable[600] Commitments and Contingencies The company has significant commitments, including a 235 million RMB construction contract with Zhejiang Guotai Construction Group Co., Ltd., and contingencies related to a 26,280.00 RMB advance payment guarantee with equivalent collateral - On March 1, 2021, the company's subsidiary Hangzhou Guotai Environmental Development Co., Ltd. signed a "Construction Engineering Construction Contract" with Zhejiang Guotai Construction Group Co., Ltd., with a total contract price of 235 million RMB; as of June 30, 2025, the contract is being performed normally[600] - Subsidiary Hangzhou Min'an Environmental Engineering Co., Ltd. has opened an advance payment guarantee at China Merchants Bank Hangzhou Branch; as of June 30, 2025, there are two unexpired guarantees totaling 26,280.00 RMB, secured by a 26,280.00 RMB margin deposit[601] Post-Balance Sheet Events The company has important non-adjusting events, with other post-balance sheet events detailed in an announcement published on Juchao Information Network on August 17, 2025 - Other post-balance sheet events are detailed in the announcement (No.: 2025-021) published on Juchao Information Network (www.cninfo.com.cn) on August 17, 2025[605] Other Significant Matters The company did not experience prior period error corrections, debt restructurings, asset exchanges, annuity plans, or discontinued operations, and reports segments based on business lines including sludge treatment, equipment sales, and water environment restoration - The company did not experience prior period error corrections, debt restructurings, asset exchanges, annuity plans, or discontinued operations[606][608][609][610] - The company determines its reportable segments based on its internal organizational structure, management requirements, and internal reporting system, with business segments as the basis for reportable segments[610] Financial Information of Reportable Segments | Item | Sludge Treatment Services (RMB) | Equipment Sales (RMB) | Water Environment Ecological Restoration (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business Revenue | 154,517,243.13 | 1,584,528.33 | 10,687,848.12 | 166,789,619.58 | | Main Business Cost | 68,406,253.82 | 81,415.93 | 6,973,840.05 | 75,461,509.80 | Notes to Parent Company Financial Statement Items This section provides detailed notes on the parent company's financial statement items, including 180 million RMB in accounts receivable (16.81 million RMB impairment), 489 million RMB in other receivables (mainly intercompany balances), and 98.82 million RMB in long-