Financial Performance - For the six months ended June 30, 2025, total revenue increased by approximately 4.6% year-on-year to RMB 1,166.5 million, driven primarily by an increase in project upgrading and renovation projects[12]. - The overall gross margin for the period was 50.3%, representing an increase of 1.5 percentage points compared to the same period last year, with gross profit reaching RMB 587.3 million, an increase of 7.9% year-on-year[12]. - The Group recorded net operating cash flow of RMB 394.2 million for the period, marking the best interim results since its listing[13]. - The total operating revenue of the Group's Urban Water Treatment services for the six months ended 30 June 2025 was RMB649.8 million, representing an increase of approximately 5% compared to RMB621.7 million for the same period last year[34][36]. - The total construction revenue recognized for 14 projects, including 12 wastewater treatment plants, was RMB133.7 million, reflecting a year-on-year increase of approximately 51% from RMB88.5 million[38][39]. - The Group recorded total revenue of RMB1,166.5 million for the six months ended 30 June 2025, an increase of approximately 5% from RMB1,115.5 million in the previous corresponding period[46][49]. - Profit before tax increased to RMB 169,989,000, up 10.9% from RMB 153,297,000 in the previous year[164]. - Profit for the period was RMB 107,395,000, slightly up from RMB 106,099,000 in 2024[164]. - Total comprehensive income for the period was RMB 111,645,000, compared to RMB 110,349,000 in 2024[165]. Cost and Expenses - Financing costs decreased significantly by approximately 15.1% year-on-year to RMB 232.7 million due to a decrease in borrowing interest rates and total liabilities[12]. - Administrative expenses decreased by approximately 8% to RMB 121.7 million for the six months ended June 30, 2025, compared to RMB 132.8 million in the previous period[54]. - Other expenses significantly increased to RMB 97.0 million for the six months ended June 30, 2025, from RMB 20.4 million in the previous corresponding period, mainly due to increased losses on disposal of a subsidiary[55]. - Income tax expense for the six months ended June 30, 2025, was RMB 62.6 million, with an effective tax rate of approximately 37%, an increase of 6 percentage points from about 31% in the previous period[63]. Assets and Liabilities - The Group's total interest-bearing debts decreased to RMB9,584.7 million as of June 30, 2025, from RMB9,854.0 million as of December 31, 2024, with 68.1% classified as long-term[88]. - The Group's gearing ratio decreased to 67.8% as of June 30, 2025, down from 69.2% in the corresponding period last year[89]. - The total daily treatment capacity for wastewater treatment plants was 4,059,500 tonnes, while the total processing volume for the six months ended June 30, 2025, was 595.0 million tonnes, a decrease of 5% compared to the same period last year[30]. - Financial receivables increased to RMB 11,681.9 million as of June 30, 2025, from RMB 11,674.0 million as of December 31, 2024, reflecting a minor increase of RMB 7.9 million[67]. - Trade receivables increased to RMB 3,335.8 million as of June 30, 2025, from RMB 3,169.7 million as of December 31, 2024, an increase of RMB 166.1 million[71]. - The total assets as of June 30, 2025, amounted to RMB 19,055,003,000, with segment assets for Urban Water at RMB 16,664,933,000[195]. - Total liabilities stood at RMB 12,924,841,000, with Urban Water segment liabilities at RMB 12,160,792,000[195]. Operational Highlights - The actual wastewater treatment volume decreased by approximately 4.7% year-on-year to 595.0 million tonnes, while the wastewater treatment plant capacity utilization rate remained high at 81%[13]. - The Group plans to enhance profitability through upgrading and expansion of existing projects and reasonable adjustments to wastewater treatment prices[17]. - The Group aims to pursue collections on accounts receivable and seek diversified solutions to reduce financial burdens and interest expenses[17]. - The wastewater treatment industry is expected to continue developing in a healthy and sustainable manner, supported by government policies and increased budget allocations[16]. - The Group plans to enhance profitability and competitiveness by further expanding its Urban Water Treatment chain[27]. Shareholder Information - Mr. Zhao Juanxian holds 546,728,004 shares, representing 25.55% of the company's issued share capital[113]. - China Water Affairs Group Limited and Sharp Profit Investments Limited each hold 608,990,000 shares, accounting for 28.46% of the issued share capital[121]. - As of June 30, 2025, no other directors or chief executives have interests or short positions in the company's shares that require disclosure[115]. - The company maintains a public float of at least 25% of its total issued share capital, as required by the Stock Exchange[124]. Governance and Compliance - The Group has complied with the Corporate Governance Code during the six months ended June 30, 2025, with no deviations reported[103]. - The Group has strengthened control over budget, risk, performance, and responsibilities to enhance operational efficiency[104]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited interim results for the six months ended June 30, 2025[148]. - The Remuneration Committee is responsible for reviewing and approving management's remuneration proposals and consists of one non-executive Director and two independent non-executive Directors as of June 30, 2025[151]. Segment Information - The Group's operating segments include Urban Water Treatment, Water Environment Comprehensive Remediation, and Rural Water Improvement, each representing a strategic business unit with distinct risks and returns[184][193]. - Urban Water Treatment segment generated revenue of RMB 1,136,702,000, contributing the majority to total segment revenue[194]. - Segment results for Urban Water Treatment were RMB 275,909,000, while Rural Water Improvement reported a loss of RMB 6,440,000[194].
康达环保(06136) - 2025 - 中期财报