上海实业环境(00807) - 2025 - 中期财报

Corporate Mission SIIC Environment Holdings Ltd. aims to be a leading operator and investor in China's environmental industry, integrating finance and industry to protect the environment and natural resources while pursuing corporate development - The company's vision is to be a leading operator and investor in China's environmental industry, adhering to an integrated finance and industry development model[4][5] - The company is committed to preserving the Earth, protecting the environment, and cherishing natural resources while developing[4][5] Corporate Profile SIIC Environment is a leading integrated enterprise in China's water and environmental markets, with core businesses including wastewater treatment, water supply, sludge treatment, and waste-to-energy, operating across 20 provinces, municipalities, and autonomous regions in China - SIIC Environment is a top integrated enterprise in China's water and environmental markets, with businesses including wastewater treatment, water supply, sludge treatment, waste-to-energy, and other environmental-related operations[6][9] - The company's operations cover 20 provinces, municipalities, autonomous regions, and special administrative regions in China, with over 250 projects[7][10] - The company's controlling shareholder is Shanghai Industrial Holdings Limited, and a key strategic investor is China Energy Conservation and Environmental Protection Group Co., Ltd[6][9] Business Structure The company's business structure primarily comprises two core segments: waste-to-energy and water treatment, supported by multiple regional divisions to manage its extensive environmental operations across China - The company's business structure primarily includes two core segments: waste-to-energy and water treatment[11][12] - Regional business divisions include Central China (Wuhan Division), South China (Southern Division), North China (Shandong Division), Linkage (Industrial Wastewater Division), Northeast (Longjiang Division), and East China (Fudan Division)[12] Project Location Map The project distribution map visually illustrates the company's extensive business coverage across 20 provinces, municipalities, autonomous regions, and special administrative regions in China, encompassing both waste-to-energy and water treatment projects - The company's projects are widely distributed across 20 provinces, municipalities, autonomous regions, and special administrative regions in China, covering Northeast, North China, Central China, East China, South China, and Southwest regions[13][14] - The map indicates the geographical locations of waste-to-energy projects and various water treatment divisions (e.g., Longjiang, Wuhan, Shandong, Linkage, Southern, Fudan Divisions)[14] Overview of Major Projects This chapter details the Group's major wastewater treatment, water supply, waste-to-energy, and reclaimed/recycled water projects across various provinces and cities in China, demonstrating extensive geographical coverage and diverse business types - The Group operates over 250 projects across 20 provinces, municipalities, autonomous regions, and special administrative regions in China, primarily including wastewater treatment, water supply, waste-to-energy, and reclaimed/recycled water projects[7][10] - Wastewater treatment projects are located across Jiangxi, Guangdong, Hubei, Hunan, Ningxia, Liaoning, Shandong, Shanghai, Heilongjiang, Henan, Jiangsu, and Zhejiang, with individual project daily capacities up to 400,000 tons[15][16][17][18] - Water supply projects are mainly concentrated in Hubei, Shanxi, Heilongjiang, Hunan, and Shandong, with individual project daily capacities up to 250,000 tons[19] Financial Review This chapter outlines the Group's financial position for the six months ended June 30, 2025, covering capital and equity, debt, capital commitments, bank balances, and short-term investments, and details the Group's policies and status regarding capital management, currency risk, interest rate risk, and credit risk I Financial Position of the Group As of June 30, 2025, equity attributable to owners of the Company increased to RMB 10.776 billion, total borrowings rose to RMB 22.977 billion with a significant increase in unsecured credit facilities, while capital expenditure decreased and bank balances and short-term investments substantially increased Equity Attributable to Owners of the Company | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 10,775,848 | 10,635,069 | Total Borrowings and Composition | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total borrowings | 22,977,454 | 22,338,880 | | Unsecured credit facilities ratio | 44.8% | 36.1% | | RMB borrowings ratio | 99.7% | 99.7% | | Fixed-rate borrowings ratio | 11.0% | 22.4% | Capital Commitments and Bank Balances | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Capital expenditure | 338,892 | 546,795 | | Bank balances | 4,012,387 | 2,918,241 | | Short-term investments | 9,797 | 10,061 | II Financial Instruments, Financial Risks and Capital Management The Group's capital management objective is to maintain a sound capital ratio to support business development and maximize shareholder value, with regular reviews of its capital structure, while facing limited transactional currency risk and optimizing interest costs through a mix of fixed and floating rate debt - The Group's capital management objective is to maintain a sound capital ratio to support business and maximize shareholder value, regularly reviewing its capital structure using the gearing ratio[31][33][34] Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net debt (RMB '000) | 19,013,171 | 19,472,640 | | Equity attributable to owners of the Company (RMB '000) | 10,775,848 | 10,635,069 | | Total equity (RMB '000) | 16,402,432 | 16,082,510 | | Net debt to equity attributable to owners of the Company | 1.76 | 1.83 | | Net debt to total equity | 1.16 | 1.21 | - The Group's transactional currency risk is limited, primarily denominated in RMB, and currently not hedged[37][42] - The Group optimizes interest costs through a mix of fixed and floating rate debt and mitigates credit risk by transacting with highly-rated counterparties[38][40][43][44] Management's Discussion and Analysis This chapter provides a detailed analysis of the Group's operating results and financial position for the six months ended June 30, 2025, highlighting increased profit despite lower revenue, driven by higher operation and maintenance income and reduced finance expenses, with net cash inflows from all activities Overall Review For the six months ended June 30, 2025, the Group's total revenue decreased by 4.4% year-on-year, while profit for the period and profit attributable to owners of the Company increased by 8.9% and 7.1%, respectively Key Financial Performance | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,177.1 | 3,323.5 | -4.4% | | Profit for the period | 553.5 | 508.2 | +8.9% | | Profit for the period attributable to owners of the Company | 344.3 | 321.4 | +7.1% | Revenue The Group's total revenue decreased by 4.4%, primarily due to a 51.7% significant reduction in construction revenue, offset by 11.2% and 18.0% growth in service concession arrangement operation and maintenance revenue and entrusted operation revenue, respectively, driven by new projects commencing operations Revenue Composition and Changes | Revenue Type | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Construction revenue | 271,607 | 562,225 | -51.7% | | Service concession arrangement operation and maintenance revenue | 2,122,182 | 1,908,809 | +11.2% | | Service concession arrangement finance income | 527,871 | 616,762 | -14.4% | | Entrusted operation revenue | 119,594 | 101,383 | +18.0% | | Other principal activities revenue | 135,866 | 134,336 | +1.1% | | Total | 3,177,120 | 3,323,515 | -4.4% | - The decrease in construction revenue was primarily due to the substantial completion of major construction projects in FY2024, with new projects expected to commence gradually in the second half of 2025[53][55] - Total revenue from service concession arrangements increased by 4.9%, mainly benefiting from increased water sales due to new projects commencing operations[54][56] Gross Profit ("GP")/Gross Profit Margin ("GPM") For the six months ended June 30, 2025, the Group's gross profit slightly decreased by 1.6%, primarily impacted by reduced construction revenue, while the gross profit margin improved by 1.2 percentage points to 39.6% due to a lower proportion of lower-margin construction revenue and reduced unit costs Gross Profit and Gross Profit Margin | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 1,257.2 | 1,277.4 | -1.6% | | Gross Profit Margin | 39.6% | 38.4% | +1.2% | - The improvement in gross profit margin was primarily due to a lower proportion of lower-margin construction revenue and reduced unit costs from increased water sales[59][67] Other Income For the six months ended June 30, 2025, other income increased by 14.6% to RMB 49.1 million, mainly due to increased engineering and production volumes unrelated to core operations Other Income | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 49.1 | 42.9 | +14.6% | - The increase was primarily attributable to higher engineering and production volumes unrelated to core operations[60][68] Other Gains and Losses For the six months ended June 30, 2025, net gains significantly increased by 117.7% to RMB 5.4 million, primarily due to foreign exchange gains recorded in 2025 Other Gains and Losses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Gains | 5.4 | 2.5 | +117.7% | - The change was primarily due to foreign exchange gains recorded in 2025[61][69] Selling and Distribution Costs For the six months ended June 30, 2025, selling and distribution costs increased by 5.7% to RMB 40.1 million, primarily due to higher repair and maintenance costs Selling and Distribution Costs | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 40.1 | 38.0 | +5.7% | - The increase was primarily due to higher repair and maintenance costs[62][70] Administrative Expenses For the six months ended June 30, 2025, administrative expenses increased by 13.2% to RMB 272.3 million, primarily due to rising costs Administrative Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 272.3 | 240.5 | +13.2% | - The increase was primarily due to rising costs[63][71] Finance Expenses For the six months ended June 30, 2025, finance expenses decreased by 12.5% to RMB 350.1 million, primarily benefiting from optimized financing structure, replacing higher-interest loans with lower-interest RMB loans Finance Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Expenses | 350.1 | 400.1 | -12.5% | - The decrease in finance expenses was primarily due to optimized financing structure, replacing higher-interest loans with lower-interest RMB loans[64][72] Share of Results of Associates/Share of Results of Joint Ventures For the six months ended June 30, 2025, the share of results of joint ventures increased, while the share of results of associates decreased - The share of results of joint ventures increased, primarily due to higher contributions from joint ventures[73][80] - The share of results of associates decreased, primarily due to lower contributions from associates[74][80] Income Tax Expenses For the six months ended June 30, 2025, income tax expenses decreased by 31.9% to RMB 97.9 million, primarily due to the reversal of over-provided income tax and deferred tax from prior years Income Tax Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expenses | 97.9 | 143.7 | -31.9% | - The decrease in income tax expenses was due to the reversal of over-provided income tax and deferred tax from prior years[75][81] Current Assets As of June 30, 2025, the Group's total current assets increased by 11.9% to RMB 12.06 billion, primarily driven by an increase in cash and cash equivalents and trade receivables Total Current Assets | Metric | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Change (%) | | :--- | :--- | :--- | :--- | | Total Current Assets | 12.06 | 10.78 | +11.9% | - The increase in current assets was primarily due to higher revenue-related cash and cash equivalents and trade receivables in H1 2025[76][82] Non-current Assets As of June 30, 2025, the Group's total non-current assets slightly decreased by 2.6% to RMB 33.28 billion, primarily due to a reduction in receivables under service concession arrangements Total Non-current Assets | Metric | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 33.28 | 34.18 | -2.6% | - The decrease in non-current assets was primarily due to a reduction in receivables under service concession arrangements[77][83] Current Liabilities As of June 30, 2025, the Group's total current liabilities decreased by 12.7% to RMB 8.09 billion, primarily due to the repayment of trade and other payables and short-term borrowings Total Current Liabilities | Metric | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Change (%) | | :--- | :--- | :--- | :--- | | Total Current Liabilities | 8.09 | 9.26 | -12.7% | - The decrease in current liabilities was primarily due to the repayment of trade and other payables and short-term borrowings[78][84] Non-current Liabilities As of June 30, 2025, the Group's total non-current liabilities increased by 6.3% to RMB 20.84 billion, primarily due to an increase in bank and other borrowings Total Non-current Liabilities | Metric | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Liabilities | 20.84 | 19.61 | +6.3% | - The increase in non-current liabilities was primarily due to bank and other borrowings[79][85] Condensed Interim Consolidated Statement of Cash Flows As of June 30, 2025, the Group's cash and cash equivalents increased by 37.5% to RMB 4.01 billion, with operating, investing, and financing activities all generating net cash inflows, reflecting improved working capital management, gains from asset disposals, and increased net proceeds from borrowings Cash and Cash Equivalents | Metric | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 4.01 | 2.92 | +37.5% | - Net cash generated from operating activities was RMB 631.5 million, reflecting improved working capital management[86][88] - Net cash generated from investing activities was RMB 255.5 million, primarily from the disposal of intangible assets related to concession arrangements and an associate[87][88] - Net cash generated from financing activities was RMB 202.6 million, primarily due to increased net proceeds from bank and other borrowings[87][88] Corporate Governance and Other Information This chapter discloses detailed information on the company's corporate governance, including interests of directors and substantial shareholders, employee and remuneration policies, gearing ratio, foreign exchange risk management, material investment plans, dividend policy, and compliance with corporate governance codes, along with commentary on industry trends and future outlook Disclosure of Interests This section discloses the interests and short positions of directors and the Chief Executive Officer, as well as substantial shareholders, in the company's shares and related shares as of June 30, 2025, with Director Zhong Ming holding 0.04% and key shareholders holding significant stakes Interests of Directors and Chief Executive Officer | Director Name | Nature of Interest | Number of Ordinary Shares | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Zhong Ming | Beneficial Interest | 1,000,000 (L) | 0.04% | Interests of Substantial Shareholders | Substantial Shareholder Name | Nature of Interest | Number of Ordinary Shares | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | S. I. Triumph Power Limited | Beneficial Interest | 986,929,551 (L) | 38.32% | | S. I. Infrastructure Holdings Limited | Beneficial Interest/Interest of Controlled Corporation | 1,152,348,026 (L) | 44.74% | | SIHL Treasury Limited | Beneficial Interest | 116,137,900 (L) | 4.51% | | Shanghai Industrial Holdings Limited | Interest of Controlled Corporation | 1,268,485,926 (L) | 49.25% | | Shanghai Investment Holdings Limited | Interest of Controlled Corporation | 1,268,485,926 (L) | 49.25% | | Shanghai Industrial Investment Treasury Company Limited | Interest of Controlled Corporation | 1,268,485,926 (L) | 49.25% | | SIIC Trading Company Limited | Beneficial Interest | 22,358,000 (L) | 0.87% | | Shanghai Industrial Investment (Holdings) Company Limited ("SIIC") | Interest of Controlled Corporation | 1,290,843,926 (L) | 50.12% | | China Energy Conservation & Environmental Protection (Hong Kong) Investment Co., Limited ("CECEPHK") | Beneficial Interest | 223,712,917 (L) | 8.69% | | China Energy Conservation and Environmental Protection Group ("CECEP") | Interest of Controlled Corporation | 223,712,917 (L) | 8.69% | | Value Partners Limited ("VPL") | Interest of Controlled Corporation | 7,524,940 (L) | 0.29% | | Value Partners Hong Kong Limited ("VPLHK") | Beneficial Interest/Interest of Controlled Corporation | 231,600,920 (L) | 8.99% | | Value Partners Group Limited ("VPGL") | Interest of Controlled Corporation | 231,600,920 (L) | 8.99% | Employees and Remuneration Policy As of June 30, 2025, the Group's total number of employees was 6,360, with total employee benefits expenses of approximately RMB 435.6 million, and remuneration determined based on qualifications, experience, position, and length of service, including medical, life insurance, and discretionary bonus schemes Number of Employees and Employee Benefits Expenses | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 6,360 | 6,232 | | Total Employee Benefits Expenses (RMB million) | 435.6 | 380.4 | - Remuneration policy is based on employee qualifications, experience, position, and length of service, offering medical, life insurance, and discretionary bonus schemes[104][111] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased or sold any listed securities, nor did they hold any treasury shares - Neither the company nor its subsidiaries purchased or sold any listed securities during the reporting period[105][112] - As of June 30, 2025, the company held no treasury shares[105][112] Future Plans for Material Investments and Capital Assets Other than those disclosed in this interim report, the company currently has no other material investment and capital asset plans - The company currently has no other material investment and capital asset plans[106][113] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was approximately 1.16, a decrease from 1.21 as of December 31, 2024, indicating an improvement in financial leverage Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 1.16 | 1.21 | - The decrease in the gearing ratio indicates an improvement in financial leverage[107][114] Foreign Exchange Exposure The Group's transactional currency risk is limited, primarily denominated in RMB, and currently not hedged, with the Board and management continuously monitoring foreign exchange risk closely - The Group's transactional currency risk is limited, primarily denominated in RMB[108][115] - No hedging is currently undertaken, but the Board and management closely monitor foreign exchange risk[108][115] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities and was not involved in any significant legal proceedings - As of June 30, 2025, the Group had no material contingent liabilities[109][116] - The Group is not involved in any material legal proceedings, nor is it aware of any pending or potential material legal proceedings[109][116] Pledge of Assets As of June 30, 2025, the total carrying value of assets pledged by the Group to secure bank credit facilities, leased assets, and concession assets was RMB 16.696 billion, a decrease from RMB 17.753 billion as of December 31, 2024 Total Carrying Value of Pledged Assets | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Carrying Value of Pledged Assets | 16,696,393 | 17,752,631 | - Pledged assets include pledged bank deposits, intangible assets, and receivables under service concession arrangements, among others[254] Significant Investments Held For the six months ended June 30, 2025, the Group held no significant equity investments in other companies, apart from investments in subsidiaries, joint ventures, and pre-project construction - The Group holds no significant equity investments in other companies, limited to investments in subsidiaries, joint ventures, and pre-project construction[118][124] Material Acquisitions and Disposals Other than those disclosed in this interim report, the Group had no material acquisitions or disposals of subsidiaries for the six months ended June 30, 2025 - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries[119][125] Share Capital As of June 30, 2025, the company's issued and fully paid share capital comprised 2,575,665,726 ordinary shares, amounting to RMB 6.6047 billion, consistent with the end of 2024 Issued and Fully Paid Share Capital | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Ordinary Shares | 2,575,665,726 | 2,575,665,726 | | Amount (RMB '000) | 6,604,723 | 6,604,723 | - Holders of ordinary shares are entitled to receive dividends, with one vote per share, and no par value[250] Interim Dividend The Board did not declare any interim dividend for the six months ended June 30, 2025, primarily because the company requires cash to fund its capital expenditure and project investments - The Board did not declare an interim dividend for the six months ended June 30, 2025[121][127] - The reason for not declaring a dividend is the company's need for cash to fund capital expenditure and project investments[121][127] Audit Committee The company's Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors and has reviewed the unaudited financial statements for the current period[122][128] Compliance with Corporate Governance Codes The Group has applied and complied with the corporate governance codes of Singapore and Hong Kong, with exceptions regarding absentia voting at general meetings, the proportion of independent directors on the Board, and the composition of the Remuneration Committee, with explanations provided for these non-compliances - The company has complied with the Singapore and Hong Kong corporate governance codes, with the following exceptions[123][129] - The company's Articles of Association do not provide for absentia voting (by mail, fax, or email) at general meetings, as it is necessary to ensure information integrity and identity authenticity[123][129] - Independent non-executive directors do not constitute a majority on the Board, but the company believes the current Board size and composition are appropriate and effective, with a Lead Independent Non-Executive Director appointed to address independence concerns[130] - The Remuneration Committee includes an executive director (Mr. Zhou Yuding), despite the code's recommendation for an entirely non-executive composition, as the company believes his extensive experience is beneficial for remuneration recommendations[130] Dealing in Company's Securities The company has adopted a stringent best practice guide for securities dealings, prohibiting directors, management, and executives from trading company securities during specific blackout periods and requiring compliance with insider trading regulations - The company has adopted best practices prohibiting senior officers from trading company securities during specific blackout periods[131][132][137] - Directors, management, and executives must comply with insider trading laws at all times, even during permitted trading periods, especially when possessing material non-public information[133][137] Share Option As of June 30, 2025, the company had no share option schemes - As of June 30, 2025, the company had no share option schemes[135][138] Subsequent Events The Group's management has evaluated all events from the balance sheet date to the date of financial statement issuance and determined that there are no reportable subsequent events requiring disclosure - The Group's management has evaluated all subsequent events and determined that there are no reportable events requiring disclosure[136][139] Audit or Review of the Financial Results The interim results for the six months ended June 30, 2025, have not been audited or reviewed by the company's auditors but have been reviewed by the Audit Committee - The interim results contained in this interim report have not been audited or reviewed by the auditors but have been reviewed by the Audit Committee[140][141] Commentary on Significant Trends and Competitive Conditions In H1 2025, China continued to advance the "Beautiful China" initiative, with the government work report emphasizing green transformation, pollution control, and ecological development, which the Group actively seized through project development, technological innovation, and leveraging green finance policies - The Chinese government continues to advance the "Beautiful China" initiative, emphasizing carbon reduction, pollution control, green development, and ecological civilization system reform[140][141] - The Group actively seizes favorable industry policy opportunities, systematically promotes the construction and upgrading of existing projects, and seeks high-quality new projects[140][141] - Shanghai has introduced a groundwater pollution prevention and control plan, proposing an additional wastewater treatment capacity of 789,000 cubic meters/day by 2025[142][144] - The Group will utilize new technologies to reduce carbon dioxide emissions from wastewater treatment projects, contributing to the achievement of carbon peak and carbon neutrality goals[143][145] - Green finance policies will broaden the Group's financing channels, reduce financing costs, and enhance resource allocation efficiency, benefiting business expansion and new project construction[147][150] - In the future, the Group will focus on its core business, optimize its lean operating model, strengthen technology-driven innovation, accelerate digital transformation, and leverage its dual-listing platform advantage in Singapore and Hong Kong to expand into domestic and international environmental markets[148][150] Other Disclosures This section discloses other compliance information, including the absence of general authorization for interested person transactions, no sales, transfers, cancellations, and/or use of treasury shares or subsidiary holdings during the reporting period, and the directors' confirmation of the financial statements' truthfulness and non-misleading nature - The company has not obtained general authorization from shareholders for interested person transactions[151][152] - There were no sales, transfers, cancellations, and/or use of treasury shares or subsidiary holdings during the reporting period[151][152] - The directors confirm that the financial statements as of June 30, 2025, are true and not misleading in all material aspects[151][152] Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue was RMB 3.177 billion, a 4.4% year-on-year decrease, while profit for the period increased by 8.9% to RMB 553.5 million, and profit attributable to owners of the Company grew by 7.1% to RMB 344.3 million, with basic and diluted earnings per share at RMB 13.37 cents Summary of Condensed Interim Consolidated Statement of Profit or Loss | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,177,120 | 3,323,515 | -4.4% | | Gross Profit | 1,257,151 | 1,277,387 | -1.6% | | Profit before tax | 651,369 | 651,918 | -0.1% | | Income tax expense | (97,854) | (143,701) | -31.9% | | Profit for the period | 553,515 | 508,217 | +8.9% | | Profit for the period attributable to owners of the Company | 344,258 | 321,446 | +7.1% | | Basic earnings per share (RMB cents) | 13.37 | 12.48 | +7.1% | Summary of Other Comprehensive Income Statement | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the period | 553,515 | 508,217 | | Exchange differences on translation | (36,515) | (79,278) | | Fair value changes of equity instruments investments | (10,400) | – | | Exchange differences on translation of foreign operations | – | 61,494 | | Total other comprehensive loss for the period, net of tax | (46,915) | (17,784) | | Total comprehensive income for the period | 506,600 | 490,433 | | Total comprehensive income for the period attributable to owners of the Company | 297,343 | 303,662 | Condensed Interim Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 45.334 billion, a slight increase from the end of 2024, with current assets growing by 11.9% to RMB 12.055 billion and total equity increasing to RMB 16.402 billion, while non-current assets slightly decreased and total liabilities remained stable Summary of Condensed Interim Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | ASSETS | | | | Total Current Assets | 12,055,410 | 10,778,160 | | Total Non-current Assets | 33,278,916 | 34,178,338 | | TOTAL ASSETS | 45,334,326 | 44,956,498 | | LIABILITIES | | | | Total Current Liabilities | 8,087,220 | 9,264,203 | | Total Non-current Liabilities | 20,844,674 | 19,609,785 | | TOTAL LIABILITIES | 28,931,894 | 28,873,988 | | EQUITY | | | | Equity attributable to owners of the Company | 10,775,848 | 10,635,069 | | Non-controlling interests | 5,626,584 | 5,447,441 | | TOTAL EQUITY | 16,402,432 | 16,082,510 | - The increase in current assets was primarily driven by increased cash and cash equivalents and trade receivables[76][82] - The decrease in non-current assets was primarily due to a reduction in receivables under service concession arrangements[77][83] - The decrease in current liabilities was primarily due to the repayment of trade and other payables and short-term borrowings[78][84] - The increase in non-current liabilities was primarily due to bank and other borrowings[79][85] Condensed Interim Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the Group's total equity increased from RMB 16.083 billion to RMB 16.402 billion, with equity attributable to owners of the Company growing to RMB 10.776 billion, primarily from profit for the period, partially offset by other comprehensive losses Summary of Condensed Interim Consolidated Statement of Changes in Equity (H1 2025) | Metric | Share Capital (RMB '000) | Retained Earnings (RMB '000) | Total Other Reserves (RMB '000) | Equity Attributable to Owners of the Company (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as at January 1, 2025 | 6,604,723 | 4,388,207 | (357,861) | 10,635,069 | 5,447,441 | 16,082,510 | | Profit for the period | – | 344,258 | – | 344,258 | 209,257 | 553,515 | | Other comprehensive loss for the period, net of tax | – | – | (46,915) | (46,915) | – | (46,915) | | Total comprehensive income for the period | – | 344,258 | (46,915) | 297,343 | 209,257 | 506,600 | | Dividends declared to equity holders | – | (157,479) | – | (157,479) | – | (157,479) | | Dividends declared to non-controlling interests | – | – | – | – | (2,122) | (2,122) | | Non-controlling interests after proportional capital injection into subsidiaries | – | – | – | – | 1,400 | 1,400 | | Acquisition of non-controlling interests | – | – | – | – | (22,750) | (22,750) | | Balance as at June 30, 2025 | 6,604,723 | 4,519,773 | (348,648) | 10,775,848 | 5,626,584 | 16,402,432 | Summary of Condensed Interim Consolidated Statement of Changes in Equity (H1 2024) | Metric | Share Capital (RMB '000) | Retained Earnings (RMB '000) | Total Other Reserves (RMB '000) | Equity Attributable to Owners of the Company (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as at January 1, 2024 | 5,920,175 | 3,955,497 | 255,835 | 10,131,507 | 5,158,949 | 15,290,456 | | Profit for the period | – | 321,446 | – | 321,446 | 186,771 | 508,217 | | Other comprehensive loss for the period, net of tax | – | – | (17,784) | (17,784) | – | (17,784) | | Total comprehensive income for the period | – | 321,446 | (17,784) | 303,662 | 186,771 | 490,433 | | Dividends declared to equity holders | – | (82,431) | – | (82,431) | – | (82,431) | | Dividends declared to non-controlling interests | – | – | – | – | (5,010) | (5,010) | | Transfer to general reserve | – | (13,976) | 13,976 | – | – | – | | Balance as at June 30, 2024 | 5,920,175 | 4,180,536 | 252,027 | 10,352,738 | 5,340,710 | 15,693,448 | Condensed Interim Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group's cash and cash equivalents increased by RMB 1.0896 billion, with an ending balance of RMB 4.0124 billion, reflecting improved working capital management, gains from asset disposals, and increased net proceeds from borrowings across operating, investing, and financing activities Summary of Condensed Interim Consolidated Statement of Cash Flows | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash generated from (used in) operating activities | 631,492 | (64,417) | | Net cash generated from (used in) investing activities | 255,494 | (384,661) | | Net cash generated from financing activities | 202,580 | 422,042 | | Net increase (decrease) in cash and cash equivalents | 1,089,566 | (27,036) | | Cash and cash equivalents at end of period | 4,012,387 | 2,852,035 | - Net cash from operating activities was RMB 631.5 million, reflecting improved working capital management[86][88][168] - Net cash from investing activities was RMB 255.5 million, primarily from the disposal of intangible assets related to concession arrangements and an associate[87][88][169] - Net cash from financing activities was RMB 202.6 million, primarily due to increased net proceeds from bank and other borrowings after repayments[87][88][170] Notes to the Condensed Interim Consolidated Financial Statements This chapter provides detailed notes to the condensed interim consolidated financial statements, covering general company information, basis of preparation, principal accounting policies, estimates, financial risk management, segment information, revenue composition, breakdown of expenses and income, earnings per share calculation, aging analysis of receivables and payables, fair value measurement of assets and liabilities, related party transactions, capital commitments, contingent liabilities, and subsequent events General SIIC Environment Holdings Ltd. is a public company incorporated in Singapore and dual-listed on the SGX and HKEX, with its ultimate holding company being Shanghai Industrial (Group) Co., Ltd., and financial statements presented in RMB due to the Group's principal operations in China - The company is a public limited company incorporated in Singapore, dual-listed on the SGX and HKEX[175][183] - The ultimate holding company is Shanghai Industrial (Group) Co., Ltd., and financial statements are presented in RMB[176][177][183] Basis of Preparation The unaudited condensed interim consolidated financial statements are prepared in accordance with Singapore Financial Reporting Standard (International) 34 Interim Financial Reporting and the applicable disclosure requirements of Appendix D2 of the Hong Kong Listing Rules - The financial statements are prepared in accordance with Singapore Financial Reporting Standard (International) 34 Interim Financial Reporting and Appendix D2 of the Hong Kong Listing Rules[178][184] Principal Accounting Policies The Group adopted the same accounting policies and methods of computation in its financial statements for this financial period as those applied in the audited financial statements for the year ended December 31, 2024, without early adoption of any new standards not yet effective - The same accounting policies as the 2024 audited financial statements were adopted for this period, with no early adoption of new standards[179][180][185] Estimates The significant judgments, estimates, and assumptions made by management in preparing the condensed interim consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024 - Significant judgments and estimates made by management in preparing the current period's financial statements are consistent with those in the 2024 annual statements[181][182][186] Financial Risk Management Objectives and Policies The Group faces foreign currency risk, interest rate risk, liquidity risk, and credit risk, with management policies reviewed and agreed upon by the Board, and no significant changes in risk management policies since year-end - The Group faces foreign currency, interest rate, liquidity, and credit risks, with management policies set by the Board[187][196] - There have been no changes to risk management policies since the end of 2024[189][197] Seasonal Operations The Group's operations were not significantly affected by seasonal or cyclical factors during this financial period -