东江环保(00895) - 2025 - 中期财报

Corporate Information Changes in Board of Directors and Supervisory Committee During the reporting period, there were changes in the company's Board of Directors and Supervisory Committee - Executive Director Yu Fan resigned on April 25, 2025, and Zhu Lintao was appointed on June 25, 2025[4] - Independent Non-executive Director Siu Chi Hung resigned on June 25, 2025, and Li Kwok Tung was appointed on the same day, also taking over as Chairman of the Audit and Risk Management Committee[4] - Supervisor Chan Pui Wan resigned on June 25, 2025, and Ma Xujian was appointed on the same day[4] Share Information and Contact Details The company's A-shares are listed on the Shenzhen Stock Exchange (stock code 002672) and H-shares on the Hong Kong Stock Exchange (stock code 00895) - The company's A-share stock code is 002672, and the H-share stock code is 00895[5] - The auditor is Da Hua Certified Public Accountants (Special General Partnership), and the H-share registrar in Hong Kong is Tricor Investor Services Limited[5] Definitions Consolidated Balance Sheet As of June 30, 2025, the Group's total assets were RMB 11.03 billion, a decrease of 2.24% from the beginning of the period, while total liabilities slightly increased to RMB 7.20 billion Key Data from Consolidated Balance Sheet (As of June 30, 2025 vs December 31, 2024) | Item | Closing Balance (2025-06-30) | Opening Balance (2024-12-31) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Total current assets | 3,600,500,457.56 | 3,563,956,903.50 | +1.02% | | Total non-current assets | 7,425,026,889.93 | 7,714,522,511.96 | -3.75% | | Total Assets | 11,025,527,347.49 | 11,278,479,415.46 | -2.24% | | Liabilities | | | | | Total current liabilities | 3,750,180,723.18 | 3,877,229,219.04 | -3.28% | | Short-term borrowings | 1,890,353,893.69 | 1,197,012,027.16 | +57.92% | | Non-current liabilities due within one year | 927,936,161.65 | 1,599,167,098.28 | -41.97% | | Total non-current liabilities | 3,450,442,664.04 | 3,250,360,379.76 | +6.16% | | Total Liabilities | 7,200,623,387.22 | 7,127,589,598.80 | +1.02% | | Equity | | | | | Total equity attributable to owners of the parent | 3,324,824,504.66 | 3,599,850,228.42 | -7.64% | | Minority interests | 500,079,455.61 | 551,039,588.24 | -9.25% | | Total Equity | 3,824,903,960.27 | 4,150,889,816.66 | -7.85% | | Total Liabilities and Equity | 11,025,527,347.49 | 11,278,479,415.46 | -2.24% | - The company's debt-to-asset ratio increased from 63.20% at the end of 2024 to 65.31% on June 30, 2025[116] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were RMB 7.99 billion, an increase of 2.96% from the beginning of the period, with total liabilities rising to RMB 4.93 billion Key Data from Parent Company Balance Sheet (As of June 30, 2025 vs December 31, 2024) | Item | Closing Balance (2025-06-30) | Opening Balance (2024-12-31) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Total current assets | 3,814,254,494.36 | 3,599,282,904.03 | +6.00% | | Total non-current assets | 4,173,464,516.59 | 4,159,079,166.05 | +0.35% | | Total Assets | 7,987,719,010.95 | 7,758,362,070.08 | +2.96% | | Liabilities | | | | | Total current liabilities | 2,931,223,760.36 | 2,929,887,812.29 | +0.05% | | Short-term borrowings | 1,220,606,552.78 | 745,366,293.49 | +63.76% | | Notes payable | 194,298,000.00 | 84,652,905.76 | +129.53% | | Non-current liabilities due within one year | 668,531,096.43 | 1,269,043,698.82 | -47.24% | | Total non-current liabilities | 1,993,889,056.54 | 1,724,321,614.76 | +15.63% | | Total Liabilities | 4,925,112,816.90 | 4,654,209,427.05 | +5.82% | | Equity | | | | | Total Equity | 3,062,606,194.05 | 3,104,152,643.03 | -1.34% | | Total Liabilities and Equity | 7,987,719,010.95 | 7,758,362,070.08 | +2.96% | Consolidated Income Statement (Unaudited) For the six months ended June 30, 2025, the Group's total operating revenue decreased by 3.40% year-over-year to RMB 1.50 billion, with the net loss attributable to parent company shareholders widening by 8.09% to RMB 278.18 million Key Data from Consolidated Income Statement (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenue | 1,500,470,309.76 | 1,553,358,452.26 | -3.40% | | Total operating costs | 1,846,670,942.48 | 1,882,149,083.44 | -1.89% | | Operating profit | -329,316,352.67 | -313,793,031.30 | -4.95% | | Total profit | -324,780,391.79 | -315,039,567.24 | -3.10% | | Net profit | -328,240,737.00 | -319,313,114.02 | -2.79% | | Net profit attributable to shareholders of the parent company | -278,177,080.22 | -257,357,295.18 | -8.09% | | Basic earnings per share | -0.25 | -0.23 | -8.70% | Parent Company Income Statement (Unaudited) For the six months ended June 30, 2025, the parent company's operating revenue significantly increased by 259.57% year-over-year to RMB 350.82 million, while the net loss narrowed by 18.69% to RMB 41.55 million Key Data from Parent Company Income Statement (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating revenue | 350,817,891.13 | 97,567,903.51 | +259.57% | | Operating costs | 343,887,443.53 | 95,598,420.71 | +259.74% | | Operating profit | -42,333,129.75 | -51,075,902.62 | +17.09% | | Total profit | -41,564,100.28 | -51,075,915.58 | +18.62% | | Net profit | -41,546,448.98 | -51,093,275.17 | +18.69% | Consolidated Statement of Cash Flows (Unaudited) For the six months ended June 30, 2025, the Group's net cash flow from operating activities turned negative to RMB -50.71 million, while net cash flow from financing activities turned positive to RMB 159.54 million Key Data from Consolidated Statement of Cash Flows (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | -50,708,328.58 | 2,381,171.66 | -2237.92% | | Net cash flow from investing activities | -73,967,557.57 | -147,850,885.18 | +49.97% | | Net cash flow from financing activities | 159,540,961.07 | -195,531,541.11 | +181.60% | | Net increase in cash and cash equivalents | 34,893,597.13 | -341,015,021.71 | +110.23% | | Closing balance of cash and cash equivalents | 1,051,200,772.35 | 896,795,765.01 | +17.22% | Parent Company Statement of Cash Flows (Unaudited) For the six months ended June 30, 2025, the parent company's net cash flow from operating activities turned positive to RMB 80.20 million, and net cash inflow from investing activities increased significantly Key Data from Parent Company Statement of Cash Flows (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 80,198,751.91 | -259,911,142.48 | +130.85% | | Net cash flow from investing activities | 81,159,015.34 | 10,372,557.68 | +682.44% | | Net cash flow from financing activities | -157,509,683.94 | -85,456,387.45 | -84.32% | | Net increase in cash and cash equivalents | 3,848,083.31 | -334,994,972.25 | +101.15% | | Closing balance of cash and cash equivalents | 764,109,267.64 | 713,387,722.13 | +7.11% | Consolidated Statement of Changes in Equity (Unaudited) For the six months ended June 30, 2025, the Group's total equity attributable to parent company shareholders decreased by RMB 275.03 million, primarily due to an expanded net loss Key Data from Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | | :--- | :--- | :--- | | Change in total equity attributable to owners of the parent | -275,025,723.76 | -355,628,130.07 | | Total comprehensive income | -328,212,214.79 | -319,326,881.10 | | Total comprehensive income attributable to owners of the parent | -278,148,558.01 | -257,371,062.26 | | Total comprehensive income attributable to minority interests | -50,063,656.78 | -61,955,818.84 | Parent Company Statement of Changes in Equity (Unaudited) For the six months ended June 30, 2025, the parent company's total equity decreased by RMB 41.55 million, mainly due to the net loss Key Data from Parent Company Statement of Changes in Equity (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | | :--- | :--- | :--- | | Change in total equity | -41,546,448.98 | -51,093,275.17 | | Total comprehensive income | -41,546,448.98 | -51,093,275.17 | Notes to the Unaudited Interim Financial Statements 1. General Information Dongjiang Environmental Company Limited is a joint-stock limited company registered in China, with its H-shares and A-shares listed on the Hong Kong and Shenzhen stock exchanges, respectively - The company's H-shares and A-shares are listed on the Hong Kong Stock Exchange and Shenzhen Stock Exchange, respectively[52] - The Group's main business scope includes industrial waste recycling, treatment and disposal, wastewater and waste gas treatment, and precious metal recovery[52] 2. Basis of Preparation The financial statements are prepared on a going concern basis in accordance with China's Accounting Standards for Business Enterprises and relevant disclosure requirements - The financial statements are prepared on a going concern basis, following the Accounting Standards for Business Enterprises of China and relevant disclosure regulations[53] - Management has assessed that the company has sufficient funds to meet its needs for the next 12 months, with no significant doubts about its ability to continue as a going concern[53] - This interim result is unaudited but has been reviewed by the Audit and Risk Management Committee[54] 3. Operating Revenue For the six months ended June 30, 2025, the Group's total operating revenue was RMB 1.50 billion, a year-over-year decrease of 3.40%, mainly due to a significant drop in revenue from precious metal recycling Analysis of Operating Revenue by Industry (For the six months ended June 30, 2025 vs Same period in 2024) | Industry Segment | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Industrial Waste Recycling | 646,104,217.38 | 564,376,350.26 | +14.48% | | Industrial Waste Treatment and Disposal | 396,990,856.03 | 401,533,859.48 | -1.13% | | Precious Metal Recycling | 287,227,264.88 | 396,750,877.20 | -27.61% | | Municipal Waste Treatment and Disposal | 44,642,362.92 | 61,648,664.38 | -27.59% | | Renewable Energy Utilization | 10,590,979.26 | 15,145,986.04 | -30.08% | | Environmental Engineering and Services | 28,246,587.57 | 50,003,630.90 | -43.51% | | E-waste Dismantling | 67,557,360.90 | 54,742,150.14 | +23.41% | | Other Businesses | 19,110,680.82 | 9,156,933.86 | +108.71% | | Total | 1,500,470,309.76 | 1,553,358,452.26 | -3.40% | 4. Segment Information The Group's operations are divided into eight reportable segments, with most segments reporting a loss for the period, led by industrial waste treatment and disposal - The company's business is divided into 8 reportable segments, including industrial waste recycling, industrial waste treatment and disposal, precious metal recycling, and others[56] Segment Operating Revenue and Total Profit (For the six months ended June 30, 2025) | Item | Industrial Waste Recycling | Industrial Waste Treatment & Disposal | Precious Metal Recycling | Municipal Waste Treatment & Disposal | E-waste Dismantling | Environmental Engineering & Services | Renewable Energy Utilization | Others | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB Yuan) | 661,524,909.18 | 418,926,680.14 | 287,227,264.88 | 44,642,362.92 | 67,557,360.90 | 40,908,544.61 | 10,590,979.26 | 26,187,343.82 | | Total Profit (RMB Yuan) | -52,618,411.21 | -194,426,714.65 | -9,576,803.30 | 6,359,051.30 | -9,750,112.09 | 3,576,311.30 | -2,889,308.65 | 1,410,322.78 | 5. Finance Costs For the six months ended June 30, 2025, the Group's total finance costs were RMB 93.87 million, remaining stable compared to the same period last year Breakdown of Finance Costs (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest expense | 94,743,471.81 | 99,028,016.25 | -4.29% | | Less: Interest income | 2,603,195.24 | 4,522,859.03 | -42.45% | | Foreign exchange gains/losses | 1,517,236.25 | -753,018.73 | +301.35% | | Bank charges and others | 217,207.84 | 143,120.45 | +51.76% | | Total | 93,874,720.66 | 93,895,258.94 | -0.02% | 6. Taxation For the six months ended June 30, 2025, the Group's income tax expense was RMB 3.46 million, a year-over-year decrease of 19.03%, while the company benefits from various tax preferential policies Income Tax Expense (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current income tax expense | 3,749,946.01 | 4,759,422.68 | -21.21% | | Deferred income tax expense | -289,600.80 | -485,875.90 | +40.39% | | Total | 3,460,345.21 | 4,273,546.78 | -19.03% | - The company enjoys a "three-year exemption and three-year half-reduction" income tax preferential policy for environmental protection and energy-saving projects, involving several subsidiaries[72] - Multiple subsidiaries of the company enjoy income tax incentives for comprehensive resource utilization, with revenue calculated at 90% of the total amount[72] - Subsidiaries such as Humen Lvyuan and Xiantao Dongjiang enjoy a preferential 15% income tax rate for third-party pollution control enterprises[73] - Multiple subsidiaries are recognized as high-tech enterprises and enjoy a preferential 15% income tax rate[73] - The company benefits from various VAT incentives, including 100% refund for landfill gas power generation and partial refunds for waste/sludge/sewage treatment services[76] 7. Loss Per Share For the six months ended June 30, 2025, the Group's basic loss per share was RMB 0.25, an increase from RMB 0.23 in the same period last year Loss Per Share (For the six months ended June 30, 2025 vs Same period in 2024) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic loss per share (RMB Yuan) | -0.25 | -0.23 | | Diluted loss per share (RMB Yuan) | -0.25 | -0.23 | | Loss attributable to ordinary equity holders of the parent (RMB Yuan) | 278,177,080.22 | 257,357,295.18 | | Weighted average number of shares in issue (shares) | 1,105,255,802 | 1,105,255,802 | - The Group had no potential dilutive ordinary shares outstanding during the current and prior periods[78] 8. Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[79][141] 9. Trade and Other Receivables As of June 30, 2025, the Group's total trade receivables amounted to RMB 1.13 billion, with a credit period generally set at three months for customers Aging Analysis of Trade Receivables (As of June 30, 2025 vs December 31, 2024) | Aging | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Within 1 year | 512,746,062.02 | 540,139,017.80 | | 1-2 years | 168,691,267.01 | 188,934,086.00 | | 2-3 years | 180,468,225.19 | 192,854,302.94 | | Over 3 years | 272,364,960.69 | 235,942,934.55 | | Total | 1,134,270,514.91 | 1,157,870,341.29 | - The company applies an internal credit assessment policy for new customers, with a credit period generally of three months, which can be extended to six months for major customers[81] 10. Trade and Other Payables As of June 30, 2025, the Group's total trade payables amounted to RMB 500.16 million, a decrease of 18.63% from the beginning of the period Aging Analysis of Trade Payables (As of June 30, 2025 vs December 31, 2024) | Aging | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Within 90 days | 367,098,862.85 | 479,203,580.77 | | 91 to 180 days | 17,720,105.81 | 23,751,599.77 | | 181 to 365 days | 40,511,096.30 | 34,502,763.87 | | Over 1 year | 74,830,599.44 | 77,278,936.55 | | Total Trade Payables | 500,160,664.40 | 614,736,880.96 | 11. Net Current Assets As of June 30, 2025, the Group's net current assets were RMB -149.68 million, showing an improvement but remaining negative Net Current Assets (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Current assets | 3,600,500,457.56 | 3,563,956,903.50 | | Less: Current liabilities | 3,750,180,723.18 | 3,877,229,219.04 | | Net Current Assets | -149,680,265.62 | -313,272,315.54 | 12. Total Assets Less Current Liabilities As of June 30, 2025, the Group's total assets less current liabilities amounted to RMB 7.28 billion, a slight decrease from the end of 2024 Total Assets Less Current Liabilities (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Total assets | 11,025,527,347.49 | 11,278,479,415.46 | | Less: Current liabilities | 3,750,180,723.18 | 3,877,229,219.04 | | Total Assets Less Current Liabilities | 7,275,346,624.31 | 7,401,250,196.42 | 13. Leases For the six months ended June 30, 2025, the Group's rental income from land and buildings was RMB 5.68 million, a year-over-year decrease of 6.89% Lease Income and Future Minimum Lease Payments Receivable (As of June 30, 2025 vs Same period/end of 2024) | Item | H1/End of 2025 (RMB Yuan) | H1/End of 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Rental income from land and buildings | 5,684,646.06 | 6,104,944.86 | -6.89% | | Minimum lease payments receivable within one year | 10,894,111.22 | 12,871,557.61 | -15.36% | | Short-term lease expenses recognized in profit or loss | 4,091,997.49 | N/A | N/A | | Total cash outflow for leases | 7,112,406.89 | N/A | N/A | 14. Changes in the Scope of Consolidation During the reporting period, the Group added one new subsidiary, Dongjiang Automobile Resources Recycling (Hubei) Co, Ltd, through establishment with a 51.00% equity interest Increase in Scope of Consolidation (First half of 2025) | Company Name | Method of Acquisition | Date of Acquisition | Capital Contribution (RMB Yuan) | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Dongjiang Automobile Resources Recycling (Hubei) Co, Ltd | Newly established subsidiary | June 3, 2025 | 25,500,000.00 | 51.00 | 15. Commitments and Contingencies As of June 30, 2025, the Group's significant commitments totaled RMB 91.64 million, and it faced several lawsuits, including a franchise agreement termination and a frozen fund issue Significant Commitments (As of June 30, 2025 vs December 31, 2024) | Item | Closing Balance (RMB Yuan) | Opening Balance (RMB Yuan) | | :--- | :--- | :--- | | Major contracting agreements | 57,171,416.77 | 71,830,125.95 | | Commitments for the purchase and construction of long-term assets | 23,043,041.61 | 23,002,506.21 | | External investment commitments | 11,426,136.84 | 23,406,302.44 | | Total | 91,640,595.22 | 118,238,934.60 | - The Shaoyang City operating franchise agreement was unilaterally terminated by the government due to policy changes; the company has filed an administrative lawsuit for compensation, and the case is awaiting judgment[88][89] - Subsidiary Hunan Dongjiang was sued by Jiayuan Environmental over a landfill leachate treatment service contract dispute; the company has filed a counterclaim, and the case has been suspended[91][92] - Some funds in the company's dedicated account for raised capital were frozen due to a contract dispute, involving an amount of RMB 96.32 million; the case has been heard in court and is awaiting judgment[94] 16. Related Party Transactions For the six months ended June 30, 2025, the Group's purchases from related parties increased by 14.31% while sales to related parties decreased by 31.72% Related Party Transactions for Goods and Services (For the six months ended June 30, 2025 vs Same period in 2024) | Transaction Type | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Purchases of goods and services from related parties | 2,613,936.66 | 2,286,862.29 | +14.31% | | Sales of goods and provision of services to related parties | 4,613,057.52 | 6,756,334.30 | -31.72% | Related Party Guarantees (As of June 30, 2025) | Guaranteed Party | Relationship | Guarantee Amount (RMB Yuan) | Start Date | End Date | | :--- | :--- | :--- | :--- | :--- | | Mianyang Dongjiang Environmental Protection Technology Co, Ltd | Subsidiary | 246,000,000.00 | 2021-04-01 | 2030-03-25 | | Foshan Fulong Environmental Protection Technology Co, Ltd | Subsidiary | 160,497,000.00 | 2020-03-18 | 2030-03-18 | | Xiamen Oasis Environmental Protection Industry Co, Ltd | Subsidiary | 80,000,000.00 | 2024-06-27 | 2027-06-27 | | Fujian Xingye Dongjiang Environmental Technology Co, Ltd | Associate | 57,375,000.00 | 2021-06-30 | 2026-09-15 | | Dongguan Fengye Solid Waste Treatment Co, Ltd | Associate | 44,000,000.00 | 2018-10-15 | 2033-10-15 | | Total | | 587,872,000.00 | | | Key Management Personnel Remuneration (For the six months ended June 30, 2025 vs Same period in 2024) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Key management personnel remuneration | 3,620,453.15 | 3,364,618.13 | +7.60% | 17. Approval of the Condensed Interim Financial Information The Group's condensed interim financial information for the six months ended June 30, 2025, was approved by the Board of Directors on August 22, 2025 - The condensed interim financial information was approved by the Board of Directors on August 22, 2025[104] Management Discussion and Analysis Business Review In the first half of 2025, the company's hazardous waste collection volume grew over 10%, but intense competition squeezed profit margins, while new business ventures in auto parts remanufacturing were initiated - Hazardous waste collection volume grew by over 10%, but profit margins were squeezed due to lower prices for harmless treatment and higher discount rates for resource utilization[106] - Revenue from the precious metals recycling business declined by over 20%, significantly impacted by metal prices[106] - The company achieved product sales of RMB 646 million, with sales of new products surging by 272% year-over-year[107] - In R&D, 15 new patents were applied for, and AI was applied to the comprehensive environmental services industry chain[108] - The company entered the auto parts remanufacturing sector and registered three new brands: "Dongjiang Regeneration," "Dongjiang Renewal," and "Dongjiang New Green"[108] - The company will continue to deepen reforms, optimize its business structure, and increase its focus on the resource recycling sector[109] Financial Review In the first half of 2025, the Group's total operating revenue decreased by 3.40% year-over-year to RMB 1.50 billion, with the net loss attributable to parent company shareholders widening by 8.09% to RMB 278.18 million Key Financial Review Indicators (For the six months ended June 30, 2025 vs Same period in 2024) | Indicator | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenue | 1,500,470,309.76 | 1,553,358,452.26 | -3.40% | | Comprehensive gross profit margin | 3.24% | 5.00% | -1.76 percentage points | | Net profit attributable to shareholders of the parent company | -278,177,080.22 | -257,357,295.18 | -8.09% | | Selling expenses | 41,851,616.53 | 38,307,401.98 | +9.26% | | Administrative expenses | 170,893,774.94 | 187,314,630.91 | -8.77% | | Finance costs | 93,874,720.66 | 93,895,258.94 | -0.02% | | Income tax expense | 3,460,345.21 | 4,273,546.78 | -19.03% | - The decrease in total operating revenue was mainly due to a 27.61% reduction in revenue from the precious metals recycling business[110] - The widening net loss attributable to the parent was primarily due to intense market competition and sustained pressure on the main business's profit margins[111] - The increase in selling expenses was mainly due to higher business commissions resulting from increased collection volumes in the harmless treatment business[112] Financial Position and Liquidity As of June 30, 2025, the Group's net current assets were RMB -149.68 million, with a debt-to-asset ratio of 65.31% and cash and cash equivalents of approximately RMB 1.05 billion Key Financial Position and Liquidity Indicators (As of June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Net current assets | -149,680,265.62 | -313,272,315.54 | | Cash and cash equivalents | 1,051,200,772.35 | 1,016,307,175.22 | | Total liabilities | 7,200,623,387.22 | 7,127,589,598.80 | | Debt-to-asset ratio | 65.31% | 63.20% | | Bank loans | 4,827,608,335.70 | 5,088,018,406.13 | - The Board believes the Group has a solid financial position and sufficient liquidity to meet future business development needs[116] Material Investments, Acquisitions, and Disposals of Subsidiaries, Associates, or Joint Ventures During the reporting period, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[117] Future Plans for Material Investments or Capital Assets Other than as disclosed in this report, the Group has no other future plans for material investments or capital assets - Other than as disclosed in this report, the Group has no other future plans for material investments or capital assets[118] Interest Rate and Foreign Exchange Risks The Group is exposed to fair value interest rate risk from fixed-rate bank loans and cash flow interest rate risk from floating-rate loans, while managing foreign exchange risk through forward contracts - The Group is exposed to fair value interest rate risk on fixed-rate bank loans and cash flow interest rate risk on floating-rate bank loans[119] - The company maintains floating-rate bank loans to mitigate cash flow interest rate risk and monitors interest rate fluctuations[119] - Foreign exchange risk mainly arises from assets and liabilities denominated in HKD and USD; the company has used forward foreign exchange contracts to hedge against foreign currency borrowing risks[120] Contingent Liabilities Other than the litigation and guarantee matters disclosed in Note 15 to the financial statements, the Group had no other material contingent liabilities as of June 30, 2025 - Other than as disclosed in Note 15 to the financial statements, the Group had no other material contingent liabilities[121] Employee Information and Remuneration Policy As of June 30, 2025, the Group had 3,904 full-time employees, with total staff costs for the first half of the year amounting to approximately RMB 274.59 million Employee Information and Costs (As of June 30, 2025 vs Dec 31, 2024/Same period in 2024) | Indicator | June 30, 2025/H1 2025 | Dec 31, 2024/H1 2024 | | :--- | :--- | :--- | | Number of full-time employees | 3,904 | 3,984 | | Total staff costs (RMB Yuan) | 274,589,998.00 | 278,693,042.50 | - The Group provides employees with continuous training, a comprehensive remuneration package, and a range of additional benefits, including retirement benefits, housing allowances, and medical insurance[122] Events During the Period During the period, the company fulfilled guarantee obligations for subsidiaries, signed a new financial services agreement, issued RMB 400 million in medium-term notes, and changed its H-share registrar - The company fulfilled its guarantee obligation for its subsidiary Mianyang Dongjiang by paying RMB 21.81 million[123] - The company fulfilled its guarantee obligation for its subsidiary Tangshan Wanders by paying RMB 111.10 million[124] - The company entered into a new financial services agreement with GDFM, which has been approved by independent shareholders[126] - The company successfully issued RMB 400 million of the first tranche of 2025 medium-term notes with an annual interest rate of 2.66%[127] - Effective from July 27, 2025, the H-share registrar will be changed to Tricor Investor Services Limited[128] Use of Proceeds from the Non-public Issuance of A-Shares Of the approximately RMB 1.19 billion in net proceeds, RMB 8.95 million was utilized as of June 30, 2025, with some fundraising projects being postponed Use of Proceeds from Non-public A-Share Issuance (As of June 30, 2025) | Proposed Use of Proceeds | Allocated Net Proceeds (RMB million) | Unutilized Net Proceeds (Jan 1, 2025) (RMB million) | Utilized Net Proceeds (H1 2025) (RMB million) | Unutilized Net Proceeds (June 30, 2025) (RMB million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction of Jieyang Dananhai Petrochemical Industrial Zone Green Recycling Center Phase I | 410.00 | 271.52 | 7.26 | 264.26 | By Dec 2025 | | Expansion of Jingzhou City Jiangling County Sewage Treatment Plant (Phase II) in Hubei Province | 165.00 | 93.99 | – | 93.99 | By Dec 2025 | | Digital and Intelligent Construction Project | 184.31 | 160.25 | 0.09 | 160.16 | By Dec 2028 | | Hazardous Waste Treatment Transformation and Upgrade Project | 95.00 | 64.88 | 1.60 | 63.28 | By Dec 2028 | | Supplement general working capital | 340.00 | – | – | – | – | | Total | 1,194.31 | 590.64 | 8.95 | 581.69 | | - The company has used the proceeds to replace RMB 133 million of self-raised funds pre-invested in the projects and RMB 1.25 million in issuance expenses[130] - Some of the investment projects funded by the proceeds have been postponed[131] Directors', Supervisors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, no directors, supervisors, or chief executives of the Company had any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations - As of June 30, 2025, no directors, supervisors, or chief executives of the Company had any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[132] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Guangdong Rising Holdings Group was the largest shareholder, holding a combined interest of 26.37% of the total share capital Substantial Shareholders' Interests in Shares and Underlying Shares (As of June 30, 2025) | Shareholder Name | Class of Shares | Number of Shares | Approx. % of Relevant Share Class | % of Company's Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Guangdong Rising Holdings Group | A-shares | 266,279,028 | 29.42% | 24.09% | | | H-shares | 25,179,200 | 12.58% | 2.28% | | Baowu Environment | A-shares | 86,629,001 | 9.57% | 7.84% | | | A-shares (Interest of controlled corporation) | 37,664,783 | 4.16% | 4.16% | | Huihong Group | A-shares | 50,087,669 | 5.53% | 4.53% | | | A-shares (Interest of controlled corporation) | 25,995,038 | 2.87% | 2.35% | | | H-shares (Interest of controlled corporation) | 18,204,800 | 9.10% | 1.65% | - Percentages are calculated based on 1,105,255,802 shares in issue as of June 30, 2025 (comprising 200,137,500 H-shares and 905,118,302 A-shares)[135] Share Option Scheme During the reporting period, the Group did not implement any share option scheme as defined in Chapter 17 of the Listing Rules - During the reporting period, the Group did not implement any share option scheme as defined in Chapter 17 of the Listing Rules[137] Competing Interests or Business During the reporting period, no director, supervisor, chief executive, or substantial shareholder of the Company had any interest in a business that competes or is likely to compete with the Group's business - During the reporting period, no director, supervisor, chief executive, or substantial shareholder of the Company had any interest in a business that competes or is likely to compete with the Group's business[138] Audit and Risk Management Committee and Review of Interim Results The Company's Audit and Risk Management Committee, chaired by Mr. Li Kwok Tung, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Audit and Risk Management Committee comprises Mr. Li Kwok Tung (Chairman), Mr. Li Jinhui, and Mr. Wang Shi[139] - The Committee has reviewed the Group's interim results and financial statements for the six months ended June 30, 2025, which have not been reviewed by the company's auditor[139] Purchase, Sale or Redemption of its Listed Securities During the reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's listed securities[140] Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[141] Corporate Governance The Company is committed to maintaining a high standard of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code - The Company is committed to maintaining a high overall standard of corporate governance by continuously improving its corporate management practices and procedures[142] - The Company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[142] Changes in Information of Directors There were no changes in the information of the directors that are required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules - There were no changes in the information of the directors that are required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules[143] Directors' and Supervisors' Dealings in Securities The Company has adopted the Model Code as the code of conduct for securities transactions by directors and supervisors, all of whom have confirmed compliance during the reporting period - The Company has adopted the Model Code as the code of conduct for securities transactions by directors and supervisors[144] - All directors and supervisors have confirmed their compliance with the required standards set out in the Model Code during the reporting period[144]