瀚蓝环境(600323) - 2025 Q2 - 季度财报

Definitions This chapter defines common terms and abbreviations used in the report, including company names, related parties, accounting standards, and business models like BOT, TOT, and PPP, providing a foundation for understanding the report content - Common terms defined include major entities and projects such as the Company, Nanhai SASAC, Nankong Group, Water Supply Group, Urban Construction Investment Company, Grandblue Environment, Grandblue Solid Waste, Grandblue Bio, Grandblue Industrial, Grandblue Engineering, Grandblue City Services, Grandblue Green Power, High-Quality Fund, Grandblue Hong Kong, Grandblue Foshan, Veolia Environment, and Grandblue Xiamen[12] - Business model definitions include BOT (Build-Operate-Transfer), TOT (Transfer-Operate-Transfer), and PPP (Public-Private Partnership in public service sectors), which are common operating models for the company in environmental services[12] Company Profile and Key Financial Indicators This chapter provides the company's basic information, contact details, stock overview, key accounting data and financial indicators for H1 2025, explains significant financial data changes, and discloses non-recurring gains and losses Company Information This chapter introduces the company's basic registration information, including its Chinese name, abbreviation, and legal representative - The company's Chinese name is Grandblue Environment Co., Ltd., and its Chinese abbreviation is Grandblue Environment[14] - The company's legal representative is Jin Duo[14] Contact Person and Information This chapter provides contact information for the company's Board Secretary and Securities Affairs Representative, including name, address, telephone, fax, and email - Both the Board Secretary and Securities Affairs Representative are Tang Yuyun[15] - The contact address is 12th Floor, Grandblue Plaza, No. 23 Ronghe Road, Guicheng, Nanhai District, Foshan City, Guangdong Province, and the telephone number is 0757-86280996[15] Brief Introduction to Changes in Basic Information This chapter discloses basic information such as the company's registered address, office address, website, and email address - Both the company's registered and office addresses are Grandblue Plaza, No. 23 Ronghe Road, Guicheng, Nanhai District, Foshan City[16] - The company's website is http://www.grandblue.cn, and its email address is 600323@grandblue.cn[16] Brief Introduction to Changes in Information Disclosure and Document Placement Locations This chapter lists the company's designated information disclosure newspapers, the website address for semi-annual reports, and the report placement location - The company's selected information disclosure newspapers include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[17] - The website address for semi-annual reports is http://www.sse.com.cn, and the company's semi-annual report placement location is the company's Securities Department[17] Company Stock Overview This chapter provides the company's stock type, listing exchange, stock abbreviation, and code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[18] - The stock abbreviation is Grandblue Environment, stock code is 600323, and the previous stock abbreviation was Nanhai Development[18] Company's Key Accounting Data and Financial Indicators This chapter discloses the company's key accounting data and financial indicators for H1 2025, explains the reasons for decreased operating revenue and increased net profit attributable to parent, and the increase in net cash flow from operating activities Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,762,939,850.74 CNY | 5,824,297,794.14 CNY | -1.05 | | Total Profit | 1,295,316,728.35 CNY | 1,094,630,616.46 CNY | 18.33 | | Net Profit Attributable to Shareholders of Listed Company | 966,864,123.87 CNY | 887,134,621.05 CNY | 8.99 | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | 912,241,071.89 CNY | 871,307,802.06 CNY | 4.70 | | Net Cash Flow from Operating Activities | 1,221,144,352.98 CNY | 941,006,365.41 CNY | 29.77 | | Net Assets Attributable to Shareholders of Listed Company | 13,781,990,308.63 CNY | 13,402,321,274.80 CNY | 2.83 | | Total Assets | 63,438,202,595.35 CNY | 39,305,355,208.01 CNY | 61.40 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (CNY/share) | 1.19 | 1.09 | 9.17 | | Diluted EPS (CNY/share) | 1.19 | 1.09 | 9.17 | | Basic EPS After Non-Recurring Gains and Losses (CNY/share) | 1.12 | 1.07 | 4.67 | | Weighted Average ROE (%) | 7.01 | 7.07 | Decrease of 0.06 percentage points | | Weighted Average ROE After Non-Recurring Gains and Losses (%) | 6.61 | 6.94 | Decrease of 0.33 percentage points | - Operating revenue decreased by approximately 61 million CNY year-on-year, primarily due to a 180 million CNY decrease in PPP project revenue, a 230 million CNY decrease from reduced Nanhai sanitation business, and 130 million CNY in one-time income from Jining solid waste electricity fees and Jinsha Chengbei wastewater treatment plant expansion project fees in the prior period. Excluding these factors, H1 2025 operating revenue increased by approximately 480 million CNY, with 369 million CNY contributed by the newly consolidated Veolia Environment from June[22] - Net profit attributable to shareholders of the listed company increased by approximately 80 million CNY year-on-year, mainly due to Veolia Environment's 117 million CNY net profit in June, contributing approximately 60 million CNY to net profit attributable to parent; growth in heating business; continuous implementation of cost reduction and efficiency improvement measures; and approximately 45 million CNY in performance compensation income from the former shareholder of Jiangxi Grandblue Energy Co., Ltd., a subsidiary, recognized in the current period[22] - Net cash flow from operating activities increased by 280 million CNY, or 29.77%, year-on-year, primarily due to the newly consolidated Veolia Environment's contribution and improved accounts receivable collection[23] Non-Recurring Gains and Losses Items and Amounts This chapter details non-recurring gains and losses items and their amounts during the reporting period, explaining why some items were classified as recurring gains and losses Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | Notes (if applicable) | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets, including the write-back of impairment provisions already made | 340,009.41 | Notes VII-59, 60, 61 | | Government grants recognized in current profit or loss, excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to established standards, and having a continuous impact on the company's profit or loss | 13,967,685.46 | Notes VII-54, 60 | | Gains or losses from entrusted investments or asset management | 20,127,857.47 | Notes VII-55 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 2,269,325.76 | Notes VII-57 | | Other non-operating income and expenses apart from the above | 42,965,100.15 | Performance compensation of 45.64 million CNY from former shareholder of Jiangxi Grandblue Energy Co., Ltd. recognized in current period | | Less: Income tax impact | 17,746,558.18 | Notes VII-60, 61 | | Impact on minority interests (after tax) | 7,300,368.09 | | | Total | 54,623,051.98 | | - Guicheng Water Plant relocation compensation (17.25 million CNY) and Meijia Wastewater Southeast Wastewater Plant renovation and relocation compensation (4.44 million CNY) were classified as recurring gains and losses because they are closely related to the company's normal operations, comply with national policies, are enjoyed according to established standards, and have a continuous impact on the company's profit and loss[26] Management Discussion and Analysis This chapter comprehensively analyzes the company's H1 2025 operations, including industry overview, main business performance, major M&A integration progress, core competencies, reasons for financial data changes, and risks and countermeasures Explanation of the Company's Industry and Main Business Operations During the Reporting Period This chapter describes the environmental services industry, details the four main businesses—solid waste treatment, energy, water supply, and wastewater treatment—and their operating models, highlighting the company's market position in each segment - The company operates in the environmental services industry, with overall stable business operations and no significant changes during the reporting period[29] - Water supply, wastewater treatment, and gas businesses within the energy sector are in a mature industry phase; solid waste treatment is in an expansion phase, with waste-to-energy accelerating towards high-quality development; and the hydrogen business within the energy sector is in an industry incubation phase[29] - The company's main businesses include solid waste treatment (with a vertically and horizontally integrated industrial chain, providing comprehensive full-chain solid waste treatment services), energy (multi-energy supply including piped natural gas, bottled gas, and hydrogen), water supply (full-chain services), and wastewater treatment (network maintenance, pump station management, and wastewater treatment plant operation management)[30][33] - The company holds a relatively advantageous position in water supply, wastewater treatment, and gas businesses in Nanhai District; its waste-to-energy project scale ranks among the top three domestically and first among A-share listed companies, making it one of the top ten influential enterprises in the solid waste treatment industry[34] Discussion and Analysis of Operations This chapter details the company's H1 2025 operating strategies and achievements, including Veolia Environment M&A completion, integration, accounts receivable management, R&D, green environmental rights development, direct green power supply, REITs issuance, and brand refresh, outlining business segment performance and major project construction - The company maintains a "one body, two wings" business development model with solid waste treatment as the core and water and energy businesses developing synergistically, continuously focusing on main business development, consolidating cost reduction and efficiency improvement, advancing key project construction, and enhancing operational levels internally and externally[34] - In June 2025, the company's acquisition and consolidation of Veolia Environment were officially completed, bringing the company's waste-to-energy project scale to 97,590 tons/day (including equity-invested projects), ranking among the top three domestically and first among A-share listed companies, significantly enhancing comprehensive strength and competitiveness[35] - Post-acquisition integration is progressing orderly, including organizational structure adjustment (establishment of Solid Waste Business Unit II), human resource integration, risk management system construction, capital management synergy (Veolia Environment's total loans reduced by approximately 1.3 billion CNY, and financing interest rates decreased), supply chain management system construction, refined engineering budgeting and settlement control, and digital intelligence application (promotion of "Zero-Waste City Digital Brain")[37][38][39][41][42][43] - The company strengthened accounts receivable management, with collections exceeding 1.15 billion CNY (excluding Veolia Environment) during the reporting period, continuously improving cash flow, and plans to recover no less than 2 billion CNY in outstanding accounts receivable in 2025[45] - The company highly values technological innovation and digital intelligence capabilities, obtaining 28 patent authorizations, leading 24 R&D projects, and establishing the "Grandblue Environment Artificial Intelligence Joint Research Institute" to create the nation's first "industry superbrain" and "enterprise superbrain" focused on ecological environment governance[46] - The company actively develops green environmental rights-related businesses, establishing a carbon management center, having issued nearly 13 million green certificates, with total green certificate sales exceeding 6.53 million year-to-date in 2025, effectively promoting carbon emission reduction of 3.504 million tons[47] - The company focuses on "direct green power supply" market opportunities, has established a power sales company, and signed AIDC strategic cooperation agreements with China Unicom Guangdong Branch and Shenzhen Urban Transport Planning and Design Institute Co., Ltd. to promote the implementation of intelligent computing projects[48] - The company continues to promote the issuance of infrastructure public REITs with assets related to wastewater treatment and solid waste treatment as underlying assets, with an estimated scale of 1-3 billion CNY, and related work is accelerating[49][50] - The company's brand has been fully refreshed, launching a new brand vision and spirit, and achieving an "AA-" ESG rating (the highest in the environmental protection industry) from China Chengxin Green Finance International Co., Ltd. in 2025[51] - The company actively rewards shareholders, having implemented the 2024 profit distribution plan (cash dividend of 8 CNY per 10 shares), and plans to implement a H1 2025 profit distribution, proposing a cash dividend of 0.25 CNY per share (tax inclusive) to all shareholders[52] Company Operating Performance This chapter outlines the company's H1 2025 overall financial performance, including operating revenue, net profit, EBITDA, total assets, and asset-liability ratio, and analyzes the revenue, profit, and operational status of the four business segments: solid waste treatment, energy, water supply, and wastewater treatment, as well as major project construction and commissioning progress Overall Financial Performance for H1 2025 | Indicator | Amount | YoY Change (%) | Notes | | :--- | :--- | :--- | :--- | | Operating Revenue | 5.763 billion CNY | -1.05 | Veolia Environment consolidation added 369 million CNY | | Main Business Revenue | 5.606 billion CNY | -1.39 | Accounts for 97.27% of operating revenue, Veolia Environment consolidation added 361 million CNY | | Net Profit Attributable to Shareholders of Listed Company | 967 million CNY | +8.99 | Veolia Environment consolidation added approximately 60 million CNY | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | 912 million CNY | +4.70 | | | EBITDA | 2.225 billion CNY | | EBITDA margin 38.61% | | Total Assets (Period End) | 63.438 billion CNY | +61.40 | Primarily due to Veolia Environment consolidation | | Asset-Liability Ratio (Period End) | 72.46% | Increased by 11.18 percentage points | Primarily due to new M&A loans of approximately 6.1 billion CNY from major asset restructuring | | Net Cash Flow from Operating Activities | 1.221 billion CNY | +29.77 | New contribution of approximately 200 million CNY from Veolia Environment consolidation, improved accounts receivable collection | | Capital Expenditure on Fixed Assets (excluding impact of Interpretation No. 14) | 893 million CNY | -20.11 | Veolia Environment consolidation added approximately 54 million CNY | | Free Cash Flow (excluding equity investments) | 338 million CNY | Increased by 495 million CNY | Veolia Environment consolidation added 147 million CNY | - Solid waste treatment business achieved 2.949 billion CNY in main business revenue in H1 (with 361 million CNY from Veolia Environment consolidation), a 3.36% year-on-year decrease; net profit reached 724 million CNY (with 110 million CNY from Veolia Environment consolidation), a 24.51% year-on-year increase. Waste-to-energy business (excluding engineering and equipment) revenue was 2.126 billion CNY, a 17.63% year-on-year increase, with heating business revenue at 140 million CNY, a 46.50% year-on-year increase[55][56] - Solid waste treatment operational revenue maintained stable growth and high profitability, with operation-related revenue consistently above 90% of total solid waste treatment revenue. External heat supply reached 943,500 tons, a 41.60% year-on-year increase, with 4 new projects signing external heat supply agreements, totaling 29 projects signed, of which 19 have commenced external heat supply[56][59][60] - Waste-to-energy capacity utilization was approximately 115%, with boiler effective operating hours exceeding 4,100 hours; electricity generated per ton of waste and grid-connected electricity per ton of waste increased by 2.60% and 3.51% year-on-year, reaching 386.26 kWh/ton and 337.42 kWh/ton, respectively. AAA-rated waste-to-energy plants increased to 18[61][62] - Energy business achieved 1.865 billion CNY in main business revenue in H1, a 0.71% year-on-year increase, mainly due to a slight increase in natural gas sales volume. Water supply business achieved 458 million CNY in main business revenue, a 2.19% year-on-year increase, with a production-to-sales ratio controlled at 7.68%. Wastewater treatment business achieved 334 million CNY in main business revenue, a 0.23% year-on-year increase, with wastewater treatment volume at 136 million tons, a 2.92% year-on-year increase[64][65][66] - Total waste-to-energy order backlog is 97,590 tons/day, with 66,190 tons/day already in operation (including the newly commissioned Dalian project at 650 tons/day). Projects under construction include the Nanhai Waste-to-Energy Plant Upgrade and Expansion Project (Phase II), Nanhai Sludge Treatment Plant Upgrade and Expansion Project, Huidong County Integrated Waste Treatment Phase III and Food Waste Co-treatment Project, and Baise Waste-to-Energy Project[67][68][70] Analysis of Core Competencies During the Reporting Period This chapter outlines the company's five core competencies in environmental services: a complete green circular industrial chain, "large solid waste" business layout, leading waste incineration operational scale, digital intelligence construction capabilities, and technological R&D and social responsibility competitiveness - The company has formed a replicable and scalable green circular industrial chain, covering solid waste, clean energy, and water sectors, establishing a "one body, two wings" business structure with solid waste treatment as the core and water and energy businesses developing synergistically, demonstrating strong risk resistance capabilities[75] - The company's vertically and horizontally integrated solid waste business layout aligns perfectly with "Zero-Waste City" construction requirements, forming a full-chain vertical development model encompassing front-end integrated sanitation, mid-stream transfer, and back-end treatment, as well as a horizontal integrated business layout for multi-source solid waste co-processing, with its "Grandblue Model" becoming an industry benchmark[77][80] - Through strategic acquisitions, the company's waste-to-energy scale reached 97,590 tons/day (including equity-invested projects), ranking among the top three domestically and first among A-share listed companies, firmly establishing itself in the first tier of the solid waste treatment industry, significantly enhancing market influence and comprehensive strength[81] - The company possesses leading digital intelligence construction capabilities, having built smart platforms like the "Zero-Waste City Digital Brain," and was the first to establish an Artificial Intelligence Joint Research Institute, creating the environmental industry's first "enterprise superbrain" and "industry superbrain" to achieve quality improvement and efficiency gains through new quality productive forces[82][83] - The company's research institute operates under a "technology R&D," "industrial incubation," and "venture capital" tripartite model, accelerating technology R&D and collaboration, becoming a crucial frontier for forging core technological competitiveness[84] - The company adheres to the "Three Goods, Five Hearts Grandblue People" code of conduct, integrating social responsibility into its corporate strategy, operations, and culture, striving to be a "good city manager, good industry role model, and good community neighbor" to promote environmental sustainable development[85] Main Operating Performance During the Reporting Period This chapter details the financial changes in the company's main business during the reporting period, including operating revenue, costs, expenses, and cash flow, deeply analyzes asset and liability status and investment, highlighting the significant impact of Veolia Environment's consolidation on various financial indicators Main Business Analysis This chapter analyzes the changes and reasons for key financial statement items during the reporting period, including operating revenue, operating costs, selling expenses, administrative expenses, financial expenses, R&D expenses, and net cash flows from various activities Analysis of Changes in Financial Statement Items | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,762,939,850.74 | 5,824,297,794.14 | -1.05 | See Section II, "VII. Company's Key Accounting Data and Financial Indicators" | | Operating Costs | 3,812,731,165.83 | 4,008,023,805.05 | -4.87 | Decrease in costs corresponding to lower revenue from solid waste engineering business and Nanhai sanitation business optimization, and impact of water resource fees being reclassified from operating costs to taxes and surcharges | | Selling Expenses | 60,399,869.38 | 55,509,106.01 | 8.81 | Increase in sales personnel labor costs and maintenance expenses | | Administrative Expenses | 325,711,960.54 | 321,911,065.33 | 1.18 | Impact of Veolia Environment consolidation | | Financial Expenses | 269,166,688.02 | 249,146,418.63 | 8.04 | Impact of Veolia Environment consolidation | | R&D Expenses | 36,513,681.73 | 30,011,812.76 | 21.66 | Impact of Veolia Environment consolidation | | Net Cash Flow from Operating Activities | 1,221,144,352.98 | 941,006,365.41 | 29.77 | See Section II, "VII. Company's Key Accounting Data and Financial Indicators" | | Net Cash Flow from Investing Activities | -8,637,524,819.55 | -1,171,992,470.79 | Not applicable | Payment for Veolia Environment consideration in current period | | Net Cash Flow from Financing Activities | 7,112,258,320.30 | 669,330,659.38 | 962.59 | New M&A loan drawdowns in current period | Analysis of Assets and Liabilities This chapter analyzes the composition and changes in the company's assets and liabilities at the end of the reporting period, highlighting the impact of Veolia Environment's consolidation on various asset and liability items, and disclosing major asset restrictions Changes in Assets and Liabilities | Item Name | Current Period End Amount (million CNY) | Proportion of Total Assets at Period End (%) | Prior Year End Amount (million CNY) | Proportion of Total Assets at Prior Year End (%) | YoY Change in Amount at Period End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 0 | 0 | 139.28 | 0.35 | -100.00 | Forward foreign exchange contracts settled, purchased foreign currency used to pay for Veolia Environment privatization consideration, fair value changes of related forward foreign exchange contracts transferred out | | Accounts Receivable | 7,308.55 | 11.52 | 4,251.76 | 10.82 | 71.89 | Veolia Environment consolidation added approximately 2.626 billion CNY | | Prepayments | 250.46 | 0.39 | 181.19 | 0.46 | 38.23 | Veolia Environment consolidation added approximately 49 million CNY | | Inventories | 321.19 | 0.51 | 225.55 | 0.57 | 42.40 | Veolia Environment consolidation added approximately 93 million CNY | | Contract Assets | 1,363.22 | 2.15 | 1,039.25 | 2.64 | 31.17 | Veolia Environment consolidation added approximately 339 million CNY | | Long-Term Equity Investments | 2,784.29 | 4.39 | 1,344.19 | 3.42 | 107.13 | Veolia Environment consolidation added approximately 1.394 billion CNY | | Intangible Assets | 26,655.55 | 42.02 | 12,121.38 | 30.84 | 119.91 | Veolia Environment consolidation added approximately 14.755 billion CNY | | Goodwill | 1,514.89 | 2.39 | 413.10 | 1.05 | 266.71 | Veolia Environment consolidation added new goodwill of approximately 1.102 billion CNY | | Deferred Income Tax Assets | 375.91 | 0.59 | 287.54 | 0.73 | 30.73 | Impact of Veolia Environment consolidation added approximately 81 million CNY | | Other Non-Current Assets | 10,692.03 | 16.85 | 7,899.08 | 20.10 | 35.36 | Veolia Environment consolidation added approximately 2.569 billion CNY | | Short-Term Borrowings | 3,463.64 | 5.46 | 2,516.78 | 6.40 | 37.62 | Veolia Environment consolidation added approximately 842 million CNY | | Taxes Payable | 439.97 | 0.69 | 304.09 | 0.77 | 44.69 | Veolia Environment consolidation added approximately 125 million CNY | | Other Payables | 1,615.75 | 2.55 | 781.62 | 1.99 | 106.72 | Company's 2024 dividend unpaid as of end of June and accrued remaining consideration payable for Veolia Environment | | Non-Current Liabilities Due Within One Year | 4,496.62 | 7.09 | 2,257.49 | 5.74 | 99.19 | Veolia Environment consolidation added approximately 869 million CNY and medium-term notes due within one year increased by approximately 1 billion CNY | | Long-Term Borrowings | 26,132.23 | 41.19 | 9,963.55 | 25.35 | 162.28 | Veolia Environment consolidation added approximately 10.501 billion CNY and new M&A loan drawdowns of approximately 6.1 billion CNY | | Deferred Income Tax Liabilities | 1,717.98 | 2.71 | 611.75 | 1.56 | 180.83 | Veolia Environment consolidation added approximately 1.077 billion CNY | | Other Comprehensive Income | 35.63 | 0.06 | 17.90 | 0.05 | 99.11 | Foreign currency translation fluctuations of Veolia Environment's overseas subsidiaries and associates | | Specific Reserves | 118.35 | 0.19 | 60.42 | 0.15 | 95.89 | Veolia Environment consolidation added approximately 61 million CNY | | Minority Interests | 3,687.59 | 5.81 | 1,818.55 | 4.63 | 102.78 | Grandblue Foshan received 800 million CNY capital injection from High-Quality Fund and impact of Veolia Environment consolidation | - The company's overseas assets totaled 751 million CNY, accounting for 1.18% of total assets, primarily consisting of deposits held abroad[94] - As of the end of the reporting period, the company's major restricted assets included monetary funds, accounts receivable, contract assets, fixed assets, right-of-use assets, intangible assets, and other non-current assets, with a total book balance of 39.191 billion CNY and a book value of 32.931 billion CNY, a significant increase from the beginning of the year, primarily due to the consolidation of Veolia Environment[96][97] Analysis of Investment Status This chapter analyzes the company's overall external equity investments, discloses financial assets measured at fair value, private equity fund investments, and derivative investments, and explains the accounting policies and effects of hedging activities - As of the end of June 2025, the company's total external equity investments amounted to 2.821 billion CNY, an increase of 1.44 billion CNY from the beginning of the year, representing a 104.24% growth, primarily due to the newly consolidated Veolia Environment[98] Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (million CNY) | Fair Value Change in P&L for Current Period (million CNY) | Accumulated Fair Value Change in Equity (million CNY) | Purchases in Current Period (million CNY) | Sales/Redemptions in Current Period (million CNY) | Other Changes (million CNY) | Ending Balance (million CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Derivative Instruments | 139.28 | -83.31 | | | | -55.97 | | | Private Equity Funds | 1.08 | | | | | -0.06 | 1.02 | | Other | 38.89 | | 3.83 | | | -2.62 | 36.27 | | Total | 179.25 | -83.31 | 3.83 | 0 | 0 | -58.65 | 37.29 | - The company participated in establishing Beijing E20 No.1 Environmental Investment Center (Limited Partnership) and Foshan Nanhai Guihan Environmental Industry Equity Investment Partnership (Limited Partnership), primarily for environmental-related industrial investments[101][102] - The company entered into forward foreign exchange contracts to lock in the privatization transaction consideration for Veolia Environment, effectively hedging against exchange rate risks and ensuring the total RMB equivalent of the transaction consideration is controllable[103] Other Disclosures This chapter identifies and explains eight major risks the company may face in its operations, including policy, environmental, product quality, safety production, market competition, financial, management, and macroeconomic fluctuation risks, proposing corresponding countermeasures. Additionally, it discloses the company's entrusted wealth management activities Potential Risks This chapter identifies and explains eight major risks the company may face in its operations, including policy, environmental, product quality, safety production management, market competition, financial, management, and macroeconomic fluctuation risks, proposing corresponding countermeasures - Policy Risk: Adjustments to national renewable energy subsidy policies may impact solid waste business development. The company's strategy is to strengthen policy research, consolidate traditional advantageous industries, tap internal potential for efficiency, and diversify revenue sources[110] - Environmental Risk: Increasingly stringent environmental regulations may lead to penalties or increased environmental investments. The company's strategy is to strictly adhere to corporate social responsibility governance requirements, enhance operational management, and achieve long-term, stable, safe, and compliant operations[111] - Product Quality Risk: Tap water quality is closely related to people's lives and health, and water source pollution may adversely affect water supply operations. The company's strategy is to strengthen production management and quality control, and establish a real-time raw water quality monitoring and early warning system[112] - Safety Production Management Risk: Industries such as solid waste and energy have high safety management requirements and may face safety production accident risks. The company's strategy is to implement safety production responsibility systems, improve internal control systems, and strengthen risk prevention and supervision[113] - Market Competition Risk: Intensified competition in the environmental protection industry makes it harder to acquire high-quality new projects, and hazardous waste business faces challenges. The company's strategy is to enhance operational management capabilities, build multi-dimensional market expansion mechanisms, actively monitor industry consolidation opportunities, and promote vertically and horizontally integrated development of hazardous waste business[114] - Financial Risk: The company has a relatively high asset-liability ratio, changes in external financing markets may lead to increased financing costs, and long government payment cycles may affect cash flow. The company's strategy is to comprehensively and systematically plan funding needs, strengthen accounts receivable collection, and explore diversified financing methods[115] - Management Risk: The large number of subsidiaries and business expansion demand higher management capabilities. The company's strategy is to improve corporate governance and strategic control capabilities, optimize organizational structure and management processes, and strengthen talent development[116] - Macroeconomic Fluctuation Risk: Geopolitical conflicts, tariff disputes, etc., may negatively impact industrial client businesses and government finances. The company's strategy is to adhere to its core environmental protection business, reduce costs and increase efficiency, enhance core business competitiveness, expand potential businesses, and strengthen strategic and market insights[118] Other Disclosure Items This chapter discloses the company's entrusted wealth management activities, including through its subsidiary Grandblue Foshan to improve capital utilization efficiency and returns, emphasizing risk control measures - The company, through its wholly-owned subsidiary Grandblue Solid Waste, together with the High-Quality Fund, jointly injected a total of 4.02 billion CNY into Grandblue Foshan, which used a portion of its temporarily idle own funds for entrusted wealth management to improve capital utilization efficiency and returns[119] - The company has formulated the "Entrusted Wealth Management Management System," primarily focusing on principal-protected fixed-income and principal-protected floating-income wealth management products, with risks within a controllable range[119] - During the reporting period, all structured deposits purchased by the company matured and were redeemed, realizing cumulative pre-tax income of 20.33 million CNY[119] Corporate Governance, Environment, and Society This chapter discloses changes in the company's directors and senior management, profit distribution plan, environmental information disclosure, and efforts in poverty alleviation and rural revitalization Changes in Company Directors and Senior Management This chapter discloses changes in the company's board of directors during the reporting period, including the resignation of Director Wang Weirong, the election of Ma Wenjin, and the resolution to abolish the supervisory board - Mr. Wang Weirong, a company director, resigned from his position on the eleventh board of directors due to work adjustments[121] - Ma Wenjin was elected as a new director to the eleventh board of directors at the 2024 Annual Shareholders' Meeting held on May 7, 2025[121] - The company held an extraordinary general meeting on June 27, 2025, which approved the abolition of the supervisory board, with its functions to be exercised by the Board's Audit Committee[121] Profit Distribution or Capital Reserve Conversion Plan This chapter discloses the company's H1 2025 profit distribution plan, proposing a cash dividend of 2.5 CNY per 10 shares (tax inclusive) to all shareholders - The company proposes to distribute a cash dividend of 2.5 CNY per 10 shares (tax inclusive) based on the total share capital registered on the equity distribution record date[122] - If the company's total share capital changes before the equity distribution record date, the per-share distribution amount will remain unchanged[122] - This profit distribution plan complies with relevant provisions of the company's articles of association and is subject to approval by the shareholders' meeting[122] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law This chapter discloses the company and its major subsidiaries included in the list of enterprises required to disclose environmental information by law, stating that relevant environmental information has been disclosed on local government websites as required - The number of enterprises included in the company's list of those required to disclose environmental information by law is 1[124] - This enterprise is Grandblue Green Power Solid Waste Treatment (Foshan) Co., Ltd., and its environmental information disclosure report can be found on the Guangdong Provincial Department of Ecology and Environment website[124] - The company is not classified as a key pollutant-discharging entity by environmental protection authorities, but its major subsidiary, Grandblue Green Power, is, and has completed relevant environmental information disclosure on local government websites as required[124] Specific Work on Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc. This chapter introduces the company's specific work in poverty alleviation and rural revitalization, including "buy-to-donate" agricultural product initiatives for the Qiandongnan region, sanitation worker care projects, and primary school teaching and scholarship public funds - The company actively responded to national poverty alleviation policies, continuously and stably driving poor farmers out of poverty and increasing their income through assistance such as "buy-to-donate" agricultural product initiatives for the Qiandongnan region[125] - The company launched sanitation worker care projects and primary school teaching and scholarship public funds, contributing to rural education revitalization[125] Significant Matters This chapter details the company's fulfillment of commitments, significant related-party transactions, major contracts and their performance (especially guarantees), and other significant matters during the reporting period Fulfillment of Commitments This chapter discloses the fulfillment of commitments by the company's actual controller, shareholders, and related parties during or continuing into the reporting period, primarily concerning commitments to resolve horizontal competition and related-party transactions - Urban Construction Investment Company committed not to engage directly or indirectly in businesses identical or similar to Grandblue Environment in mainland China to avoid horizontal competition, and to take legal and effective measures to ensure controlled enterprises do not engage in competing businesses[127] - Urban Construction Investment Company committed to fulfill shareholder obligations in good faith, fully respect Grandblue Environment's independent legal entity status, ensure independent operation and autonomous decision-making, and generally avoid related-party transactions with Grandblue Environment[127] - Water Supply Group committed not to engage in businesses that constitute horizontal competition with the company in the future[127] - Nankong Group committed that its directly or indirectly controlled enterprises will not engage in businesses that constitute substantial competition or may constitute competition with the company[127] Significant Related-Party Transactions This chapter did not disclose related-party transactions related to daily operations, asset or equity acquisitions/disposals, significant related-party transactions from joint external investments, or related-party debt and credit during the reporting period Major Contracts and Their Performance This chapter discloses major guarantees performed and unfulfilled by the company during the reporting period, including external guarantees and guarantees for subsidiaries, explaining the significant increase in guarantee balances Company's External Guarantees (Excluding Guarantees for Subsidiaries) | Guarantor | Guaranteed Party | Guaranteed Amount (million CNY) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Jianyang Green Protection Technology Development Co., Ltd. | Jianyang Veolia Environment Power Generation Co., Ltd. | 335.50 | 2024/6/14 | 2035/6/20 | No | | Veolia Environment Kewei Environmental Investment (Guangdong) Co., Ltd. | Dongguan Xindongqing Environmental Investment Co., Ltd. | 32.34 | 2020/5/22 | 2032/5/21 | No | | Total Guarantee Balance at Period End (A) | | 329.14 | | | | Company's Guarantees for Subsidiaries | Indicator | Amount (million CNY) | | :--- | :--- | | Total Guarantees for Subsidiaries Incurred in Current Period | 6,100.00 | | Total Guarantee Balance for Subsidiaries at Period End (B) | 15,005.62 | Company's Total Guarantees (Including Guarantees for Subsidiaries) | Indicator | Amount (million CNY) | | :--- | :--- | | Total Guarantees (A+B) | 15,334.76 | | Proportion of Total Guarantees to Net Assets (%) | 87.78 | | Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 1,580.22 | | Amount of Total Guarantees Exceeding 50% of Net Assets (E) | 6,599.97 | | Total of the Above Three Guarantee Amounts (C+D+E) | 6,599.97 | - The two external guarantee items during the reporting period were primarily due to the new consolidation of Veolia Environment's original outstanding guarantees[136] - The company's guarantees for subsidiaries amounted to 6.1 billion CNY during the reporting period, primarily used by Grandblue Foshan to apply for M&A loans from domestic banks to pay for the privatization consideration of Veolia Environment[137] - The guarantee balance for subsidiaries significantly increased at the end of the reporting period, mainly comprising Grandblue Foshan's M&A loan guarantee balance of 6.0365 billion CNY and the original outstanding guarantee balance of 8.8863323 billion CNY resulting from Veolia Environment's consolidation[137] Share Changes and Shareholder Information This chapter discloses the company's share capital changes during the reporting period, as well as the total number of shareholders, top ten shareholders, and top ten unrestricted shareholders' holdings at the end of the reporting period, explaining the related-party relationships among major shareholders Share Capital Changes This chapter states that the company's total share capital and share structure remained unchanged during the reporting period - During the reporting period, the company's total share capital and share structure remained unchanged[140] Shareholder Information This chapter discloses the total number of common shareholders, top ten shareholders, and top ten unrestricted shareholders' holdings at the end of the reporting period, explaining the related-party relationships among major shareholders - As of the end of the reporting period, the total number of common shareholders was 21,058[141] Top Ten Shareholders' Holdings | Shareholder Name (Full Name) | Shares Held at Period End (shares) | Proportion (%) | Share Status | Amount (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Foshan Nanhai Water Supply Group Co., Ltd. | 139,810,227 | 17.15 | Unrestricted | | State-owned Legal Person | | Guangdong Nanhai Holding Group Co., Ltd. | 127,328,492 | 15.62 | Unrestricted | | State-owned Legal Person | | SDIC Power Holdings Co., Ltd. | 66,014,523 | 8.10 | Unrestricted | | State-owned Legal Person | | Foshan Nanhai Urban Construction Investment Co., Ltd. | 40,427,878 | 4.96 | Pledged | 9,578,400 | State-owned Legal Person | | National Social Security Fund 101 Portfolio | 14,258,259 | 1.75 | Unrestricted | | Other | | Basic Pension Insurance Fund 808 Portfolio | 12,019,585 | 1.47 | Unrestricted | | Other | | National Social Security Fund 115 Portfolio | 8,800,000 | 1.08 | Unrestricted | | Other | | National Social Security Fund 110 Portfolio | 8,006,900 | 0.98 | Unrestricted | | Other | | China Merchants Bank Co., Ltd. - ICBC Credit Suisse Dividend Enjoyment Flexible Allocation Mixed Securities Investment Fund | 7,003,401 | 0.86 | Unrestricted | | Other | | Fu Dengrong | 6,904,739 | 0.85 | Unrestricted | | Domestic Natural Person | - Foshan Nanhai Water Supply Group Co., Ltd. is a wholly-owned subsidiary of Guangdong Nanhai Holding Group Co., Ltd., indicating a related-party relationship. Foshan Nanhai Water Supply Group Co., Ltd., Guangdong Nanhai Holding Group Co., Ltd., and Foshan Nanhai Urban Construction Investment Co., Ltd. are all controlled by Foshan Nanhai District State-owned Assets Supervision and Administration Bureau and are considered parties acting in concert[143] Bond-Related Information This chapter discloses basic information on the company's issued non-financial enterprise debt financing instruments, including medium-term notes and super short-term commercial papers, and explains the upgrade of the company's credit rating to AAA and its positive impact Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This chapter discloses basic information on the company's issued non-financial enterprise debt financing instruments, including medium-term notes and super short-term commercial papers, and explains the upgrade of the company's credit rating to AAA and its positive impact Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Abbreviation | Code | Issue Date | Accrual Date | Maturity Date | Bond Balance (billion CNY) | Interest Rate (%) | Repayment Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Grandblue Environment Co., Ltd. 2023 First Medium-Term Note | Grandblue 23MTN001 | 102383026 | 2023/11/10 | 2023/11/10 | 2025/11/10 | 5 | 2.94 | Interest paid annually, last interest payment with principal | | Grandblue Environment Co., Ltd. 2024 First Medium-Term Note | Grandblue 24MTN001 | 102480116 | 2024/1/10 | 2024/1/12 | 2026/1/12 | 5 | 2.70 | Interest paid annually, last interest payment with principal | | Grandblue Environment Co., Ltd. 2024 Second Medium-Term Note | 24 Grandblue MTN002 | 102480948 | 2024/3/14 | 2024/3/15 | 2026/3/15 | 5 | 2.53 | Interest paid annually, last interest payment with principal | | Grandblue Environment Co., Ltd. 2024 Third Green Medium-Term Note | Grandblue 24MTN003 (Green) | 102481691 | 2024/4/19 | 2024/4/22 | 2029/4/22 | 5 | 2.58 | Interest paid annually, last interest payment with principal | | Grandblue Environment Co., Ltd. 2025 First Medium-Term Note | Grandblue 25MTN001 | 102580169 | 2025/1/9 | 2025/1/10 | 2030/1/10 | 5 | 1.90 | Interest paid annually, last interest payment with principal | | Grandblue Environment Co., Ltd. 2025 First Super Short-Term Commercial Paper | Grandblue 25SCP001 | 12580161 | 2025/1/13 | 2025/1/15 | 2025/9/26 | 5 | 1.75 | Principal and interest repaid at maturity | | Grandblue Environment Co., Ltd. 2025 Second Medium-Term Note | Grandblue 25MTN002 | 102581632 | 2025/4/15 | 2025/4/17 | 2030/4/17 | 5 | 1.92 | Interest paid annually, last interest payment with principal | - The company's corporate credit rating was upgraded to AAA by China Securities Pengyuan Credit Rating Co., Ltd., with a stable outlook, effective from August 21, 2025, to August 20, 2026[151] - The rating upgrade demonstrates an enhancement in the company's comprehensive strength, which is beneficial for reducing financing costs, broadening financing channels, and has positive implications for the company's long-term healthy and sustainable development[151] Key Accounting Data and Financial Indicators | Key Indicator | Current Period End | Prior Year End | YoY Change at Period End (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 0.96 | 1.05 | -8.79 | | | Quick Ratio | 0.94 | 1.03 | -8.82 | | | Asset-Liability Ratio (%) | 72.46 | 61.28 | Increased by 11.18 percentage points | | | Net Profit After Non-Recurring Gains and Losses | 912,241,071.89 CNY | 871,307,802.06 CNY | 4.70 | See Section II, "VII. Company's Key Accounting Data and Financial Indicators" | | Total Debt to EBITDA | 0.06 | 0.12 | -50.00 | Primarily due to M&A loan drawdowns and Veolia Environment consolidation | | Interest Coverage Ratio | 5.40 | 5.12 | 5.47 | | | Cash Interest Coverage Ratio | 4.55 | 4.77 | -4.61 | | | EBITDA Interest Coverage Ratio | 7.59 | 7.43 | 2.15 | | | Loan Repayment Rate (%) | 100.00 | 100.00 | | | | Interest Payment Rate (%) | 100.00 | 100.00 | | | Financial Report This chapter includes the company's H1 2025 audit report, financial statements, basic company information, basis of financial statement preparation, significant accounting policies and estimates, taxation, notes to consolidated financial statement items, R&D expenses, changes in consolidation scope, interests in other entities, government grants, risks related to financial instruments, fair value disclosures, related parties and related-party transactions, share-based payments, commitments and contingencies, post-balance sheet events, other significant matters, notes to parent company financial statement key items, and supplementary information, comprehensively disclosing the company's financial information and related accounting treatments Audit Report This chapter states that this semi-annual report is unaudited - This semi-annual report is unaudited[5] Financial Statements This chapter provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow situation - As of June 30, 2025, the company's consolidated total assets amounted to 63.438 billion CNY, total liabilities to 45.969 billion CNY, and total owners' equity attributable to the parent company to 13.782 billion CNY[158][159] - From January to June 2025, the company's consolidated total operating revenue was 5.763 billion CNY, total profit was 1.295 billion CNY, net profit attributable to parent company shareholders was 967 million CNY, and basic earnings per share was 1.19 CNY/share[164][165][166] - From January to June 2025, the company's consolidated net cash flow from operating activities was 1.221 billion CNY, net cash flow from investing activities was -8.638 billion CNY, and net cash flow from financing activities was 7.112 billion CNY[171][172] Basic Company Information This chapter briefly introduces the company's registered address, headquarters address, and main businesses, and states the approval date for the financial report - The company's registered address is Foshan City, Guangdong Province, and its headquarters address is Grandblue Plaza, No. 23 Ronghe Road, Guicheng, Nanhai District, Foshan City[185] - The company's main businesses include solid waste treatment, energy, water supply, and wastewater treatment[185] - The financial report approval date is August 26, 2025[185] Basis of Financial Statement Preparation This chapter clarifies that the company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission - The company prepares its financial statements on a going concern basis, in accordance with actual transactions and events, and in compliance with "Enterprise Accounting Standards" and the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports" (Revised 2023)[186] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[187] Significant Accounting Policies and Estimates This chapter details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering business combinations, consolidated financial statements, cash and cash equivalents, foreign currency transactions, financial instruments, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, employee benefits, provisions, revenue recognition, government grants, deferred income tax, and leases - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting financial position, operating results, and other information[188] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with a 12-month operating cycle, and the functional currency is RMB[189][190][191] - The company has established detailed accounting policies and estimation methods for business combinations, consolidated financial statements, cash and cash equivalents, foreign currency transactions and translation of foreign currency financial statements, financial instruments, notes receivable, accounts receivable, financing for receivables, other receivables, inventories, contract assets, non-current assets held for sale or disposal groups, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, preferred shares/perpetual bonds and other financial instruments, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, PPP project contracts, and hedge accounting[194][197][207][208][210][218][229][232][235][239][242][246][250][253][254][261][262][264][266][269][275][278][279][280][281][283][284][286][287][290][291][299][301][303][306][310][312][314][319] Taxation This chapter details the company's main tax categories and rates, and discloses various tax preferential policies enjoyed by the company and its subsidiaries, including VAT immediate refund, exemptions, input VAT refund, high-tech enterprise income tax incentives, Western Development income tax incentives, "three-year exemption, three-year half reduction," environmental protection special equipment income tax incentives, R&D expense super deduction, and small and micro enterprise and veteran tax incentives Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Services 6%, engineering installation, transportation revenue, gas sales and cylinder delivery fees 9%, electricity sales and raw material revenue, maintenance revenue 13%, waste treatment revenue and sludge treatment revenue, wastewater treatment revenue 6% | 6%, 9%, 13% | | Value-Added Tax—Input Tax | Materials, equipment, engineering, purchased labor, etc. | 3%-13% | | Value-Added Tax—Simplified Levy | Water fees 3%, rent 5% | 3%, 5% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 5%, 7% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | | Corporate Income Tax | Taxable income | 25%, 20%, 15% | - Several of the company's subsidiaries are subject to a 15% corporate income tax rate, including Grandblue Green Power Solid Waste Treatment (Foshan) Co., Ltd., Grandblue Engineering Technology Co., Ltd., Guangdong Hanzheng Testing Technology Co., Ltd., Grandblue Industrial Services (Ganzhou) Co., Ltd., Ganzhou Grandblue Resource Recycling Co., Ltd., Grandblue (Ganzhou) Logistics Services Co., Ltd., Grandblue (Guiyang) Solid Waste Treatment Co., Ltd., Zhanjiang Veolia Environment Power Co., Ltd., Dongguan Kewei Environmental Power Co., Ltd., Dongguan Veolia Environment Power Co., Ltd., Qianxinan Veolia Environment Power Co., Ltd., Laibin Veolia Environment Power Co., Ltd., Beiliu Veolia Environment Power Co., Ltd., Dehong Veolia Environment Power Co., Ltd., Xinfeng Veolia Environment Power Co., Ltd., and Jianyang Veolia Environment Power Generation Co., Ltd[326][327] - The company enjoys multiple tax incentives, including VAT immediate refund, exemption policies (e.g., VAT exemption for rural household water), input VAT refund policy, high-tech enterprise income tax incentives, Western Development corporate income tax incentives, "three-year exemption, three-year half reduction" corporate income tax, environmental protection special equipment corporate income tax incentives, R&D expense super deduction, and small and micro enterprise and veteran tax incentives[328][329][330][331][332][333][334][335] Notes to Consolidated Financial Statement Items This chapter provides detailed notes for each major item in the consolidated financial statements, including monetary funds, notes receivable, accounts receivable, contract assets, other receivables, inventories, other current assets, long-term receivables, long-term equity investments, other equity instrument investments, other non-current financial assets, investment properties, fixed assets, construction in progress, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, restricted ownership or right-of-use assets, short-term borrowings, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, long-term borrowings, bonds payable, lease liabilities, long-term employee benefits payable, provisions, deferred income, share capital, capital reserves, other comprehensive income, specific reserves, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, credit impairm