Financial Performance - Total revenue for the six months ended June 30, 2022, decreased by 13.7% to HK$265,585,000 compared to HK$307,623,000 for the corresponding period in 2021[16]. - Net profit for the six months ended June 30, 2022, decreased by 67.1% to HK$12,807,000 compared to HK$38,984,000 for the corresponding period in 2021[16]. - Profit attributable to owners of the Company for the six months ended June 30, 2022, decreased by 48.7% to HK$14,761,000 compared to HK$28,746,000 for the corresponding period in 2021[17]. - Total earnings per share attributable to owners of the Company for the six months ended June 30, 2022, were HK cents 0.49 compared to HK cents 0.95 for the corresponding period in 2021[18]. - The Board resolved not to declare a dividend for the six months ended June 30, 2022[18]. - Average gross profit margin decreased by 31.9% to 20.9% compared to 30.7% in the previous year[57]. - EBITDA for the Group was HK$67,887,000 for the six months ended June 30, 2022, compared to HK$95,133,000 in 2021, reflecting a decrease of about 28.5%[77]. - Profit for the period decreased to HK$12,807,000 for the six months ended 30 June 2022, down from HK$38,984,000 in 2021, representing a decline of approximately 67.1%[77]. Revenue Breakdown - Total segment revenue from environmental treatment and disposal services for industrial and medical wastes was approximately HK$186,823,000, down from HK$235,819,000 in 2021[21]. - For the six months ended June 30, 2022, the Group collected and disposed of approximately 49,614 tonnes of waste, generating segment revenue of approximately HK$186,823,000, a decrease from 56,720 tonnes and HK$235,819,000 in 2021, representing a revenue decline of about 20.8%[22][23]. - Total revenue from environmental plating sewage treatment services was approximately HK$74,453,000 for the six months ended June 30, 2022, an increase from HK$71,804,000 in 2021, with a profit margin of approximately 17.3%[36][39]. Assets and Equity - Equity attributable to owners of the Company was approximately HK$998,101,000 at June 30, 2022, compared to HK$1,052,779,000 at December 31, 2021[17]. - The Group's consolidated total assets decreased to approximately HK$1,679,451,000 as of June 30, 2022, compared to HK$1,784,011,000 as of December 31, 2021, representing a decline of approximately 5.9%[68]. - The Group's total equity decreased to HK$1,120,827,000 as at 30 June 2022, down from HK$1,182,810,000 at the end of 2021, indicating a decline of approximately 5.2%[82]. Cash Flow and Financing - Cash and cash equivalents of the Group were approximately HK$310,380,000 at June 30, 2022, compared to HK$302,074,000 at December 31, 2021[17]. - Total interest-bearing borrowings decreased to HK$183,374,000 as at 30 June 2022, down from HK$200,440,000 at the end of 2021, a reduction of approximately 8.5%[82]. - The Group's available unused unsecured banking facilities increased to HK$26,520,000 as of 30 June 2022, compared to HK$14,640,000 as of 31 December 2021[71]. Operational Challenges - The Group is facing challenges due to a downsizing market for hazardous waste treatment and increasing costs associated with collection and transportation[45]. - The Group has faced significant increases in credit risk due to underperforming accounts receivable from distressed clients amid economic uncertainty and the ongoing impact of COVID-19[123]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code throughout the six months ended June 30, 2022, except for code provision C.2.1[142]. - Mr. XI Yu has assumed the roles of both Chairman and CEO, which constitutes a deviation from code provision C.2.1, but the Board believes this structure is in the best interest of the Company at the current stage[143]. - The Company has sufficient internal controls to provide checks and balances on the functions of the Chairman and CEO[143]. Share Options and Employee Incentives - The Share Option Scheme adopted on May 5, 2015, is valid for ten years and aims to enhance the value of the Company and its shares for the benefit of shareholders[148]. - The total number of shares that can be issued upon the exercise of share options is capped at 10% of the total issued shares as of May 5, 2015, which amounts to 295,569,701 shares, approximately 9.74% of the total issued shares as of the report date[157]. - The fair value of share options granted and outstanding during the reporting period was estimated using specific assumptions, although the details of these assumptions were not provided[171]. Legal and Regulatory Matters - The asset preservation related to ongoing legal proceedings is not expected to adversely impact the operations of Zhenjiang New Universe[98]. - As of June 30, 2022, there were no other significant contingent liabilities reported by the Group[99].
新宇环保(00436) - 2022 - 中期财报