Financial Performance - The total comprehensive income for the period was a loss of HK$290,407,000, compared to a profit of HK$251,862,000 in the previous period [21]. - The company reported a loss of HK$764,345,000 from subsidiaries during the period [36]. - The company recorded a loss of HK$385,107,000 from total comprehensive income for the period, with contributions from non-controlling interests amounting to HK$806,982,000 [36]. - Total revenue for the six months ended June 30, 2023, was HK$3,819,944,000, a decrease of 9.5% compared to HK$4,220,291,000 for the same period in 2022 [72]. - Profit attributable to equity shareholders for the six months ended June 30, 2023, was HK$263,862,000, down from HK$371,871,000 in the same period of 2022, indicating a decrease of 29.1% [97]. - The consolidated profit before tax was HK$382,405,000, showing a positive performance despite revenue declines [64]. - EBITDA was approximately HK$1,263,506,000, down 3% from HK$1,296,684,000 year-on-year [150]. - Basic earnings per share for the first half of 2023 were 12.77 HK cents, down 5.23 HK cents from 18.00 HK cents in the same period last year [150]. Cash Flow and Financial Position - For the six months ended June 30, 2023, net cash flows used in operating activities amounted to HK$141,694,000, a decrease from HK$657,329,000 in the same period of 2022 [39]. - Cash flows from investing activities showed a net outflow of HK$954,326,000, compared to HK$1,038,750,000 in the previous year [39]. - The net cash flows from financing activities were HK$1,098,706,000, down from HK$2,201,353,000 in the prior year [42]. - Cash and cash equivalents at the end of the period were HK$1,877,393,000, a decrease from HK$2,871,955,000 in 2022 [43]. - The company incurred HK$353,032,000 in purchases of property, plant, and equipment during the first half of 2023 [39]. - The company reported a decrease in cash used in operations, which was HK$87,933,000 for the first half of 2023, compared to HK$632,281,000 in 2022 [39]. - The total accumulated impairment as of June 30, 2023, was HK$7,944,334,000, compared to HK$7,487,578,000 as of December 31, 2022, indicating an increase of 6.1% [106]. Segment Performance - The Group operates through four reportable segments: Integrated biomass utilisation, Hazardous and solid waste treatment, Environmental remediation, and Solar energy and wind power projects [58]. - Revenue from integrated biomass utilization project operation services was HK$2,463,681,000, down from HK$2,533,370,000 in the previous year, reflecting a decrease of 2.7% [72]. - Revenue from hazardous and solid waste treatment project operation services decreased to HK$521,203,000 from HK$615,203,000, a decline of 15.3% [72]. - Revenue from environmental remediation project operation services increased to HK$79,651,000, up from HK$70,256,000, representing a growth of 13.5% [72]. - Revenue from solar energy and wind power project operation services rose to HK$112,451,000, compared to HK$99,621,000 in the previous year, marking an increase of 12.9% [72]. - Adjusted EBITDA for the reportable segments was HK$1,225,600,000, an increase from HK$1,081,917,000, reflecting a growth of 13.3% [64]. Governance and Management - The company established a Sustainability Committee to oversee management effectiveness in sustainability matters, comprising three working groups focused on operations, community investment, and compliance [12]. - The Management Committee meets monthly to discuss investment proposals and project schedules, ensuring alignment with the Board's strategies [11]. - The company has implemented a series of internal controls and risk management strategies to enhance corporate governance and accountability [10]. - The interim financial report indicates a significant focus on enhancing internal audit and risk management capabilities [13]. - The company aims to create long-term value for stakeholders through robust corporate governance practices [10]. Taxation and Grants - The total tax expense for the period ended June 30, 2023, was HK$111,228,000, an increase from HK$88,084,000 in the same period of 2022, representing a 26.2% increase [90]. - The Group's profit before tax for the six months ended June 30, 2023, was impacted by government grants totaling HK$11,383,000, down from HK$61,922,000 in the same period of 2022 [86]. - The Group received PRC value-added tax refunds of HK$78,400,000 during the six months ended June 30, 2023, compared to HK$51,961,000 in the same period of 2022 [86]. Strategic Initiatives - The company aims to build a comprehensive service provider focused on carbon neutrality, integrating environment, resources, energy, and climate [130]. - The interim report highlights a strategic focus on market expansion and the development of new technologies in the carbon neutrality sector [131]. - The company is actively pursuing long-term stability and adapting to market changes, emphasizing the importance of evolving with times [129]. - The management discussion indicates a commitment to enhancing operational efficiency and exploring new business opportunities in the green technology sector [131]. - The Group emphasized the development of smart energy projects, focusing on "Zero-carbon Industry Park" initiatives [144]. Research and Development - The company continues to deepen its research in carbon trading and various environmental technologies, participating in key national R&D projects [146]. - The Group was awarded the "Outstanding Contribution to Environment Award 2022" by KPMG China for its performance in sustainability [183]. - The Group held 224 authorized patents, including 32 invention patents and 192 utility model patents as of June 30, 2023 [145].
中国光大绿色环保(01257) - 2023 - 中期财报