Financial Performance - The group's revenue from waste treatment and energy conversion business was approximately RMB 4,076,596,000, a decrease of about 11.17% compared to RMB 4,588,955,000 in 2022[13]. - The net profit attributable to the company's owners from continuing operations was approximately RMB 285,380,000, an increase of about 122.03% compared to RMB 128,533,000 in 2022[14]. - Financing costs decreased by approximately 19.05% to about RMB 440,919,000 compared to RMB 544,670,000 in the same period last year[17]. - The total auditor fees for the year amounted to RMB 5,255,000, with RMB 3,804,000 for audit services and RMB 1,451,000 for non-audit services[90]. - The company has no distributable reserves as of December 31, 2023, consistent with the previous year[171]. Waste Treatment Operations - The group achieved a total waste treatment volume of 9.9727 million tons and hazardous waste treatment volume of 49,800 tons in 2023[2]. - The group successfully acquired the operating rights for the Shihezi municipal solid waste incineration project, with total annual investment and contract amounts exceeding RMB 3 billion[5]. - The group signed 9 projects in the site restoration sector in 2023, with a total contract amount exceeding RMB 1.1 billion[5]. - The company focuses on waste treatment technology and services, particularly in the development, design, and operation of waste-to-energy projects[147]. - The company emphasizes professional and systematic solid waste treatment services to contribute to the future of China's waste management industry[117]. Corporate Governance - The board has appointed four independent non-executive directors, ensuring that at least one possesses appropriate accounting or financial management expertise, maintaining a balance of power within the board[35]. - The company has established mechanisms to ensure independent viewpoints are available to the board, including procedures for the election of directors and assessment of their independence[33]. - The company has a clear strategy for corporate governance, with the board responsible for setting strategic directions and monitoring senior management performance[32]. - The company has a structured approach to internal controls and daily operations, clearly defining the responsibilities and powers of the board and management[32]. - The company’s board is committed to maintaining high corporate governance standards and promoting a corporate culture aligned with long-term goals and values[137]. Board Composition and Diversity - The board's gender diversity is at 28.6%, with two female directors among the seven board members, and aims to maintain this level of female representation[41]. - The company is committed to maintaining a diverse board, considering factors such as gender, age, culture, and professional experience[72]. - The nomination committee considers factors such as integrity, loyalty, industry experience, and professional skills when evaluating new or re-elected directors[44]. - The nomination committee held three meetings to review the composition of the board and ensure compliance with the board diversity policy[80]. - The company has arranged appropriate insurance for its directors and senior management related to potential legal actions arising from their duties[38]. Risk Management and Internal Controls - The company aims to ensure that its risk management and internal control systems are effective in identifying and managing significant risks, including environmental, social, and governance risks[90]. - The company has established a clear risk governance framework to enhance internal control and execution effectiveness[91]. - The internal audit department leads risk assessments and prepares a risk database, reporting results to the audit committee[92]. - The board has reviewed the effectiveness of the risk management and internal control systems and deemed them sufficient for the year ending December 31, 2023[112]. - The company has implemented a whistleblowing policy to encourage reporting of misconduct anonymously[96]. Shareholder Relations - The company values the annual general meeting as an important opportunity for direct communication between the board and shareholders[123]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy, finding it promotes open and ongoing communication with shareholders[143]. - The company did not declare a final dividend for the year ended December 31, 2023, compared to a special dividend of HKD 0.01 per share for the year ended December 31, 2022[149]. - The board aims to maintain sufficient reserves for future development while providing continuous returns to shareholders[149]. - The major shareholder, Beijing Capital Group, holds approximately 66.92% of the company's equity as of December 31, 2023[168]. Strategic Partnerships and Acquisitions - The group completed the acquisition of Xinjiang Tianfu Waste Incineration Power Co., Ltd. for RMB 120,000,000, which is expected to benefit future business expansion[20]. - The company agreed to acquire a 37.91% stake in Duyun City Shichuang Environmental Protection for a total consideration of RMB 52 million[198]. - The company has established robust partnerships with internationally renowned environmental management firms to create synergies in environmental processing solutions[118]. - The company has undergone changes in its board of directors, with Mr. Cao Guoxian resigning as executive director and chairman effective December 20, 2023[156]. - The company has appointed Dr. Cao Fuguo as an independent non-executive director effective May 23, 2023[178].
首创环境(03989) - 2023 - 年度财报