Financial Performance - For the six months ended June 30, 2023, the Group's revenue was RMB 86.7 million, a decrease of 56.8% compared to the same period in 2022[16]. - The net loss for the six months ended June 30, 2023, was RMB 1.5 million, with a net loss margin of 1.7%, significantly improved from a net loss of RMB 34.6 million and a margin of 17.2% in the same period of 2022[17]. - Profit attributable to owners of the Company was RMB 0.5 million for the first half of 2023, compared to a loss of RMB 28.0 million in the same period of 2022[17]. - Revenue decreased by 56.8% from RMB200.7 million in the first half of 2022 to RMB86.7 million in the first half of 2023, primarily due to a decline in hazardous waste incineration solutions revenue[32]. - The Group recognized net other income of RMB1.6 million for the six months ended June 30, 2023, a significant increase compared to net other losses of RMB18.2 million for the same period in 2022[53]. - The Group recorded a net loss of RMB1.5 million for the six months ended June 30, 2023, significantly reduced from a net loss of RMB34.6 million for the same period in 2022[67]. - The total comprehensive loss for the period was RMB 1,503,000, compared to a loss of RMB 34,621,000 in the same period last year[196]. Revenue Breakdown - Revenue from hazardous waste incineration solutions fell by 71.4% from RMB167.7 million in the first half of 2022 to RMB47.9 million in the first half of 2023, attributed to market saturation and decreased demand[34]. - Revenue from oilfield auxiliary services increased by 45.0% from RMB22.3 million in the first half of 2022 to RMB32.2 million in the first half of 2023, driven by the recovery of the oil market[38]. Cost and Profitability - The cost of services decreased by 66.2% from RMB173.4 million in the first half of 2022 to RMB58.6 million in the first half of 2023, mainly due to reduced revenue[40]. - The gross profit for the same period was RMB 28.2 million, with a gross profit margin of 32.5%, representing an increase of 3.3% and 18.9 percentage points respectively compared to the prior year[16]. - The gross profit of hazardous waste incineration solutions increased by 18.1% from RMB21.0 million to RMB24.8 million, with the gross profit margin improving from 12.5% to 51.8%[49]. - The gross profit of oilfield auxiliary services increased by 24.1% from RMB2.9 million to RMB3.6 million, although the gross profit margin decreased from 13.0% to 11.1% due to market competition[50]. - The gross profit of other services decreased by 62.5% from RMB1.6 million to RMB0.6 million, with the gross profit margin declining from 29.1% to 16.2%[52]. Project Development and Capacity - The Group completed one hazardous waste incineration project in the first half of 2023, increasing its total completed projects to 39, with an aggregate designed disposal capacity of 903,500 tonnes per annum[23]. - As of June 30, 2023, the Group had 17 ongoing hazardous waste incineration projects across 17 cities in China, with a total designed disposal capacity of approximately 425,000 tonnes per annum[23]. - The Group's ongoing projects reflect its commitment to enhancing its capacity in hazardous waste management and solid waste treatment solutions[22]. - The group completed 38 hazardous waste incineration projects with a total designed disposal capacity of 903,500 tonnes per annum by the end of 2023[25]. - In the first half of 2023, the group completed an additional hazardous waste incineration project in Yunfu, adding approximately 25,000 tonnes per annum to its capacity[25]. Research and Development - The Group is focused on expanding its offerings in solid waste treatment, including thermal desorption of oil sludge and pyrolysis treatment, leveraging its expertise in hazardous waste incineration[21]. - The Group's strategic focus on research and development in new technologies aims to improve its service offerings and operational efficiency in the waste management sector[21]. - The group is expanding its business into new areas such as oil sludge thermal desorption and anaerobic cracking treatment of solid waste[30]. - The group has successfully applied some of its R&D results to new solid waste treatment projects, indicating ongoing innovation and market adaptation[24]. Financial Position and Assets - As of June 30, 2023, the Group's current assets were approximately RMB 482.8 million, total assets were approximately RMB 720.2 million, and the gearing ratio was approximately 31.7%, down from 33.7% as of December 31, 2022[92]. - The Group's material capital expenditure for the six months ended June 30, 2023, was approximately RMB 1.6 million, a decrease from RMB 22.5 million for the same period in 2022[80]. - The Group's borrowings remained stable at RMB 43.1 million as of June 30, 2023, compared to RMB 43.0 million as of December 31, 2022[86]. - Trade and note receivables decreased from RMB 175.8 million as of December 31, 2022, to RMB 175.3 million as of June 30, 2023, indicating relative stability[68]. - The decrease in trade and note payables from RMB 130.9 million as of December 31, 2022, to RMB 100.9 million as of June 30, 2023, was primarily due to fewer ongoing projects[76]. Shareholder Information - As of June 30, 2023, Mr. Cai Zhuhua holds a 39.83% interest in the Company, while Mr. Zhang Weiyang holds a 24.37% interest[118]. - The Group's focus on technology innovation and market expansion is expected to maximize shareholder returns as the domestic economy recovers post-pandemic[105]. - The Group's management emphasizes the importance of maintaining a leading market position and expanding market share in the hazardous waste disposal sector[106]. Corporate Governance - The Company has fully complied with the Corporate Governance Code during the reporting period, ensuring effective internal control measures and high standards of ethics and transparency[145]. - No incidents of non-compliance with the Model Code for Securities Transactions by Directors were noted during the reporting period[151]. Acquisitions and Investments - Debo Environment acquired a 9.27% equity interest in Target Company I for a total consideration of RMB 1, which will be consolidated into the Group's financial statements[182]. - Debo Environment conditionally agreed to acquire 90% of the equity interest in Target Company II for RMB 18,000,000, which will also be consolidated into the Group's financial statements[187]. - The acquisition of both Target Company I and II is part of the Group's strategy to enhance its capabilities in solid and hazardous waste management services in China[185]. - The acquisitions are expected to facilitate the development of new projects and enhance the Group's overall market position in the environmental sector[195].
维港环保科技(01845) - 2023 - 中期财报