Financial Performance - For the six months ending June 30, 2025, the group's revenue was approximately RMB 777.18 million, a decrease of 3.34% compared to the same period last year[5]. - The net profit attributable to equity shareholders for the same period was approximately RMB 4.33 million, representing a significant decrease of 94.73% year-on-year[5]. - The gross profit for the period was RMB 246.25 million, down from RMB 359.65 million in the previous year[6]. - The operating profit for the period was RMB 64.76 million, compared to RMB 164.56 million in the previous year[6]. - The total comprehensive loss for the period was RMB 9.03 million, contrasting with a profit of RMB 92.30 million in the same period last year[7]. - Basic and diluted earnings per share were both RMB 0.24, down from RMB 4.50 in the previous year[6]. - The pre-tax profit for the six months ended June 30, 2025, was RMB 60,902,000, compared to RMB 52,804,000 for the same period in 2024, representing an increase of approximately 15.5%[20]. - The net profit attributable to the company's shareholders for the six months ended June 30, 2025, was RMB 4,325,000, while the profit for the same period in 2024 was RMB 82,141,000, indicating a substantial decrease[23]. - The pre-tax profit was RMB 2.66 million, reflecting a significant decline of 97.56% compared to the previous year[51]. - The net loss for the period was RMB 9.03 million, marking a year-over-year increase in losses of 109.79%[51]. Dividends and Shareholder Returns - The board of directors resolved not to declare an interim dividend for the six months ending June 30, 2025[5]. - The board of directors does not recommend the distribution of interim dividends for the six months ending June 30, 2025[31]. Expenses and Costs - The company reported a significant increase in administrative expenses, totaling RMB 150.98 million compared to RMB 148.79 million last year[6]. - The financial expenses for the period were RMB 60.90 million, an increase from RMB 52.80 million in the previous year[6]. - The cost of services provided was RMB 530,931,000 for the six months ended June 30, 2025, compared to RMB 444,356,000 for the same period in 2024, an increase of about 19.5%[21]. - The total interest expense on financial liabilities was RMB 63,859,000 for the six months ended June 30, 2025, compared to RMB 78,087,000 for the same period in 2024, indicating a decrease of about 18.2%[20]. - The distribution costs for the group were RMB 58.74 million, down 19% year-on-year, mainly due to an increase in direct supply to customers[57]. - The administrative expenses increased by 1.47% year-on-year to RMB 150.98 million, primarily due to depreciation and amortization from new projects[58]. - The financial expenses rose by 15.34% year-on-year to RMB 60.9 million, mainly due to the cessation of capitalizing certain financial costs[59]. Assets and Liabilities - Total assets as of June 30, 2025, amounted to RMB 8,180,039 thousand, a decrease from RMB 8,242,107 thousand in 2024, reflecting a decline of approximately 0.75%[9]. - Current liabilities were reported at RMB 1,985,701 thousand, down from RMB 2,271,937 thousand in the previous year, indicating a reduction of about 12.6%[10]. - The net value of total assets minus current liabilities stands at RMB 7,819,798 thousand, compared to RMB 7,478,441 thousand in 2024, representing an increase of approximately 4.56%[10]. - Non-current liabilities decreased from RMB 4,170,199 thousand in 2024 to RMB 3,649,599 thousand in 2025, showing a decline of about 12.5%[10]. - The company's equity attributable to shareholders was RMB 2,952,305 thousand, slightly up from RMB 2,947,980 thousand in the previous year, reflecting a marginal increase of 0.11%[10]. - The total liabilities decreased from RMB 4,170,199 thousand in 2024 to RMB 3,649,599 thousand in 2025, reflecting a reduction of about 12.5%[10]. - Trade and other receivables as of June 30, 2025, amount to RMB 898,488 thousand, down from RMB 998,218 thousand as of December 31, 2024, representing a decrease of approximately 10.0%[26]. - The total amount of current and non-current trade and other receivables is RMB 1,123,804 thousand, compared to RMB 1,292,209 thousand in the previous period, indicating a decline of about 13.1%[26]. - The group's non-current assets amounted to RMB 8,180.04 million, a decrease of 0.75% compared to the end of the previous year, primarily due to a reduction in trade and other receivables due over one year[63]. - The group's current assets were RMB 1,625.46 million, an increase of 7.77% from the end of the previous year, mainly due to an increase in bank deposits[63]. - The group's non-current liabilities stood at RMB 4,170.20 million, an increase of 9.18% year-on-year, primarily due to the issuance of RMB 1 billion green medium-term notes by Anhui Conch Environmental Protection Group[64]. Revenue Sources - The group reported revenue from industrial solid waste and hazardous waste disposal solutions, totaling RMB 682,819,000 for the six months ending June 30, 2025, compared to RMB 755,920,000 for the same period in 2024, reflecting a decrease of approximately 9.7%[15]. - Revenue from hazardous waste disposal services, specifically general hazardous waste, was RMB 395,276,000 for the six months ending June 30, 2025, down from RMB 469,119,000 in 2024, indicating a decline of about 15.7%[16]. - The group generated other income of RMB 37,756,000 for the six months ending June 30, 2025, compared to RMB 38,143,000 in 2024, showing a slight decrease of 1.0%[19]. - Interest income from bank deposits increased to RMB 2,963,000 for the six months ending June 30, 2025, up from RMB 2,279,000 in 2024, representing an increase of approximately 30.1%[19]. - Government grants received amounted to RMB 30,029,000 for the six months ending June 30, 2025, compared to RMB 28,278,000 in 2024, reflecting an increase of about 6.2%[19]. - The industrial hazardous waste disposal service generated RMB 497.55 million, accounting for 64.02% of total revenue, a decrease of 10.93% year-over-year[52]. - The general hazardous waste segment reported revenue of RMB 395.28 million, representing 50.86% of total revenue, down 15.74% year-over-year[52]. - The resource comprehensive utilization segment saw a significant increase in revenue, reaching RMB 94.37 million, up 96.24% year-over-year[52]. - The revenue from resource comprehensive utilization increased by 96.24% year-on-year to RMB 94.37 million, primarily due to the operation of alternative fuel projects in Chizhou and Wuhu[53]. Market and Operational Developments - The company is responding to external environmental pressures by actively expanding its market presence[36]. - The macroeconomic environment remains stable, with a focus on green and low-carbon transformation initiatives by the government[34]. - The hazardous waste disposal industry is facing challenges, including increased competition and downward pressure on disposal prices[35]. - The company is committed to enhancing compliance awareness among waste-producing enterprises, which is expected to gradually release disposal demand[35]. - The group has established and is operating 85 environmental projects across 21 provinces, with a processing capacity of approximately 11.92 million tons per year[37]. - During the reporting period, the group processed approximately 518,700 tons of industrial hazardous waste, a decrease of about 5.67% year-on-year, including 440,500 tons of general hazardous waste[39]. - The group has successfully signed a contract for a 150,000 tons per year industrial solid waste project in Jiangxi, expected to be operational by July 2025[40]. - The group has achieved a 32.70% year-on-year increase in the sale of resource recycling products, totaling approximately 1,500 tons[39]. - The group has expanded its market by successfully establishing a collection center for alternative fuel sources in Jiangsu Nantong, enhancing its operational capabilities[38]. - The group has advanced the copper tailings resource utilization project with a capacity of 800,000 tons per year, focusing on market research and investment verification[38]. - The group processed approximately 850,700 tons of industrial solid waste during the reporting period, reflecting a year-on-year increase of about 3.57%[40]. - The group has strengthened production management collaboration with cement enterprises, optimizing production organization and continuously reducing operational costs[39]. - The group has successfully established a cross-province transportation channel for fly ash from Zhejiang to Anhui, enhancing its service capabilities[38]. - The group has implemented digital transformation initiatives, promoting information systems in the Northwest, East China, and Zhejiang regions[39]. - The company is actively pursuing market expansion through new project developments across various regions in China[42]. Governance and Compliance - The company has adhered to the corporate governance code as stipulated by the Hong Kong Stock Exchange during the reporting period[92]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2025, and had no objections to the accounting practices adopted by the company[95]. - No significant events affecting the group occurred from the end of the reporting period to the date of this announcement[96]. - The interim results announcement will be available on the Hong Kong Stock Exchange website and the company's website[97].
海螺环保(00587) - 2025 - 中期业绩