Financial Performance - The revenue for Zhejiang Tengy Environmental Technology Co., Ltd for the six months ended 30 June 2025 was approximately RMB224.82 million, representing a decrease of approximately 36.98% compared to the same period last year[2]. - The profit attributable to owners of the parent for the Reporting Period was approximately RMB15.84 million, reflecting an increase of approximately 7.21% year-over-year[2]. - The Group's gross profit for the Reporting Period was approximately RMB85.53 million, down from RMB90.62 million in the previous year, indicating a decline of about 5.67%[3]. - The net cash generated from operating activities for the six months ended 30 June 2025 was RMB1.64 million, a significant decrease from RMB78.75 million in the same period of 2024[6]. - The basic earnings per share for the Reporting Period was RMB0.12, compared to RMB0.11 for the same period last year[3]. - The Group's income tax expense for the six months ended June 30, 2025, was RMB 7,870,000, a decrease of 29.3% from RMB 11,113,000 in 2024[33]. - The cost of sales for the Reporting Period was approximately RMB139.29 million, representing a decrease of approximately 47.66% from approximately RMB266.13 million in the corresponding period of 2024[128]. - The unaudited profit attributable to the owners of the parent was approximately RMB15.84 million, an increase of approximately 7.21% from approximately RMB14.78 million in the same period of 2024[134]. Assets and Liabilities - The total assets less current liabilities as of 30 June 2025 amounted to RMB970.66 million, compared to RMB954.82 million as of 31 December 2024[4]. - The Group's inventories increased to RMB517.65 million as of 30 June 2025, up from RMB366.78 million at the end of 2024, representing an increase of approximately 41.0%[4]. - The total equity attributable to owners of the parent increased to RMB970.66 million as of 30 June 2025, compared to RMB954.82 million at the end of 2024[5]. - Trade receivables as of June 30, 2025, amounted to RMB 634,914,000, down from RMB 700,281,000 as of December 31, 2024, reflecting a decrease of 9.3%[45]. - The Group's bank and cash balances as of June 30, 2025, were approximately RMB 698,517,000, an increase from RMB 659,758,000 as of December 31, 2024, showing a growth of 5.9%[51]. - The provision for loss allowance on trade receivables was RMB 159,928,000 as of June 30, 2025, compared to RMB 156,049,000 as of December 31, 2024, indicating a slight increase of 1.8%[45]. - Trade payables increased to RMB 201,088,000 as of June 30, 2025, compared to RMB 184,900,000 as of December 31, 2024, reflecting a rise of 8.8%[55]. - Bills payables decreased to RMB 10,993,000 as of June 30, 2025, down from RMB 18,293,000 as of December 31, 2024, indicating a decline of 39.5%[55]. - Secured bank loans increased to RMB 114,000,000 as of June 30, 2025, from RMB 85,000,000 as of December 31, 2024, marking a growth of 34.1%[60]. - The Group's gearing ratio as of 30 June 2025 was approximately 11.74%, an increase from approximately 8.90% as of 31 December 2024[136]. - The Group's debt-to-equity ratio was approximately 11.74%, up from 8.90% as of December 31, 2024[141]. Revenue Sources - Sales of environmental protection equipment amounted to RMB 222,447,000, down 37% from RMB 350,711,000 in the previous year[21]. - The major product, electrostatic precipitator, generated revenue of RMB 144,598,000, a decline of 47% from RMB 272,518,000 in 2024[21]. - Revenue from environmental protection equipment products constituted approximately 98.94% of the Group's total revenue, primarily from the manufacture, installation, and sale of electrostatic precipitators[126]. - For the six months ended June 30, 2025, the Group's revenue was primarily derived from electrostatic precipitators (64.32%) and SO2 and NOx emission reduction products (14.79%)[81]. Costs and Expenditures - The Group's finance costs increased to RMB9.87 million for the Reporting Period, compared to RMB4.91 million in the previous year, indicating an increase of approximately 100.0%[3]. - Research and development expenditure for the period was RMB 12,007,000, slightly up from RMB 11,819,000 in 2024, indicating a year-on-year increase of 1.6%[36]. - The cost of inventories sold decreased significantly to RMB 139,293,000 in 2025 from RMB 266,127,000 in 2024, representing a reduction of 47.6%[36]. Corporate Governance and Management - The Group's Board consists of nine members, including three executive Directors, three non-executive Directors, and three independent non-executive Directors[158]. - The Company has a strong management team with members holding significant shares, indicating alignment of interests with shareholders[166][173][178]. - The company has a strong governance structure with a diverse board of directors, including independent members with significant industry experience[190]. - The management team has extensive experience in finance and operations, contributing to the Company's strategic direction[176][170]. Market Trends and Future Outlook - The super-large dust collector industry is expected to see significant growth due to increasing global manufacturing demand and stricter pollution regulations[147]. - The demand for super-large dust collectors in China is driven by stricter emission standards, with all types of pollutant emissions required to meet ultra-low emission standards in 2024[114]. - The global waste-to-energy industry market size is expected to reach $33.28 billion in 2024, with a projected growth rate of 15% driven by the adoption of super-large dust collectors[114][115]. - The Asia-Pacific environmental protection equipment market is expected to grow at an annual rate of over 10%[98]. - The Chinese government has introduced tax reductions for environmental protection equipment manufacturers to encourage technological innovation and capacity expansion in 2024[109]. - Over 120 countries have committed to achieving carbon neutrality by 2050, increasing the demand for efficient environmental protection equipment globally[110]. Regulatory and Compliance - The Group has adopted new HKFRS Accounting Standards effective from January 1, 2025, with no significant changes to accounting policies reported[14]. - The Group has not yet assessed the material impact of new HKFRS Accounting Standards that have been issued but are not yet effective[15]. - The National Development and Reform Commission mandates energy conservation reviews for enterprises consuming over 10,000 tons of standard coal annually, covering about 70% of energy consumption and carbon emissions by 2025[106]. Shareholder Information - Mr. Bian Yu is the beneficial owner of 7,693,250 domestic shares and has a collective shareholding of approximately 35.70% in the Company through Tengy Group Limited[166]. - Mr. Zhang Yuanyuan is deemed to be interested in 40,500,350 domestic shares held by Tengy Group Limited, which he owns 35.92% of, and 2,739,750 domestic shares held by his spouse[173]. - Ms. Bian Shu directly holds 2,739,750 domestic shares and is also deemed to be interested in 40,500,350 domestic shares held by Tengy Group Limited[178].
天洁环境(01527) - 2025 - 中期财报