Stock Option Plan - The total number of shares available for issuance under the stock option plan is 15,965,397 shares, accounting for approximately 2.78% of the company's issued shares (excluding treasury shares) [2] - The company maintains its commitment to transparency by providing supplementary information regarding the stock option plan [2] - The stock option plan is part of the company's broader strategy to incentivize and retain key personnel [2] Governance and Leadership - The board of directors includes both executive and independent non-executive directors, ensuring a diverse governance structure [3] - The announcement was made by the chairman and executive director, Mr. Zhu Yongjun, indicating leadership involvement [3] Announcement Details - The announcement is supplementary to the annual report for the year ending December 31, 2024, published on April 29, 2025 [2] - The announcement was issued on May 27, 2025, reflecting the company's ongoing communication with stakeholders [3] - The additional information provided does not affect other data contained in the annual report [2] - The company emphasizes that the supplementary announcement is not a replacement for the annual report's other contents [2] - The company does not assume any responsibility for the accuracy or completeness of the announcement's content [1]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of HKD 536,631,000, a decrease of 28.35% compared to HKD 748,973,000 in 2023[8] - The gross profit for 2024 was HKD 87,125,000, down 52.27% from HKD 182,521,000 in the previous year[8] - The company experienced a net loss of HKD 334,025,000 in 2024, which is a 56.35% increase in losses compared to HKD 213,635,000 in 2023[8] - The EBITDA for 2024 was reported at a loss of HKD 80,144,000, a significant decline of 389.93% from a profit of HKD 27,643,000 in 2023[8] - The cash and cash equivalents decreased to HKD 45,156,000 in 2024 from HKD 148,785,000 in 2023, reflecting liquidity challenges[8] - Total revenue and gross profit for the fiscal year 2024 were HKD 536,630,000 and HKD 87,130,000, respectively, representing declines of HKD 212,340,000 and HKD 95,390,000 from the previous fiscal year[35] - The net loss for the fiscal year ending December 31, 2024, was approximately HKD 334,030,000, an increase of HKD 120,390,000 compared to the net loss of HKD 213,640,000 for the fiscal year ending December 31, 2023[32] Operational Efficiency and Management - The company plans to optimize internal management and enhance operational efficiency to address challenges such as increased accounts receivable, which totaled over RMB 40 million[11] - The company plans to optimize three wastewater treatment companies to alleviate pressure from accounts receivable in the first half of 2025[27] - The company has implemented stricter cost control measures, resulting in reduced administrative and sales expenses[33] - The total sales and distribution expenses and administrative expenses for fiscal year 2024 were HKD 202,210,000, down by HKD 40,580,000 from HKD 242,780,000 in fiscal year 2023, attributed to cost control measures and the integration of only nine months of Yichun Water Group's expenses[38] Business Development and Expansion - The company aims to explore diversified business models and expand into overseas markets, particularly in promoting China's biomass gas technology and services[11] - The company is expanding its overseas market presence, focusing on Southeast Asia and the Middle East, with significant project developments in the Philippines and Indonesia[19] - The company will actively participate in overseas environmental projects, extending its business footprint to broader international markets[26] - The company is shifting its business focus from water supply to renewable energy and biomass energy, which involves significant capital investment and a return period[130] Environmental and Sustainability Initiatives - The company estimates to reduce carbon dioxide emissions by over 2 million tons by the end of 2024 through comprehensive optimization of production processes and equipment maintenance[14] - The company has successfully launched two new projects, adding a total installed capacity of 3.7 MW in landfill gas power generation[14] - The company achieved a 40% improvement in energy conversion efficiency through the industrial application of "light quantum gasification technology" in its pilot project[17] - The company is advancing the comprehensive treatment of agricultural organic waste, with a demonstration project in Fengtai District progressing to 30% completion[24] Financial Management and Capital Structure - The company will enhance its financing capabilities, including issuing new shares and obtaining loans from domestic and international banks to support future project development[29] - The company raised a net amount of up to HKD 90,100,000 through a rights issue completed in January 2025, issuing 287,360,964 shares[60] - The total liabilities of the remaining group decreased by HKD 130,600,000 to HKD 1,264,140,000, primarily due to the repayment of bank and other borrowings[78] - The debt-to-asset ratio increased to 54.51% as of December 31, 2024, compared to 52.93% in the previous year, reflecting a higher proportion of liabilities relative to total assets[78] Corporate Governance - The company aims to achieve high levels of corporate governance, ensuring transparency and effective risk management[140] - The board of directors held 20 meetings in 2024, ensuring adequate notice and information for informed decision-making[141] - The company has a commitment to maintaining an ethical corporate culture, promoting values throughout all departments[140] - The chairman and CEO roles are currently held by the same individual, which does not comply with the corporate governance code requiring separation of these roles[145] Risk Management - The company has established an Enterprise Risk Management (ERM) framework to effectively manage risks and internal controls[177] - The management regularly identifies and mitigates key risks, which are outlined in a risk register submitted to the board and audit committee for review[190] - The company conducts annual reviews of its risk management and internal control systems to ensure their effectiveness[184] - The group faces foreign exchange rate risk due to most assets and loans being denominated in RMB, with a slight increase in risk noted[124] Employee Management and Development - The company has established an employee incentive plan to attract and retain talent, which includes personal development plans and annual incentive programs[174] - The company ensures all eligible employees have equal training and career development opportunities without discrimination[164] - The company is implementing measures to attract and retain talent, including competitive compensation packages and a positive work environment[129] - The company has 376 employees as of December 31, 2024, down from 592 employees a year earlier[122]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 292,195 thousand, a decrease of 24.26% compared to HKD 385,769 thousand in 2023[7]. - Gross profit for the same period was HKD 49,913 thousand, down 55.19% from HKD 111,382 thousand in 2023[7]. - The company reported a loss of HKD 77,301 thousand for the period, representing an increase of 104.65% compared to a loss of HKD 37,773 thousand in 2023[7]. - EBITDA for the six months was HKD 45,640 thousand, a decline of 48.61% from HKD 88,819 thousand in the previous year[7]. - The company reported a net loss attributable to owners of HKD 78,821,000 for the period, compared to a loss of HKD 90,305,000, indicating a decrease in loss of approximately 12.8%[18]. - The company reported a significant cash outflow from investing activities of HKD 23,089,000, contrasting with a cash outflow of HKD 94,442,000 in the same period of 2023[22]. - The company reported a net loss of approximately HKD 77.3 million for the first half of 2024, compared to a net loss of HKD 37.77 million in the same period of 2023, representing an increase in loss of HKD 39.53 million[88]. - Revenue decreased from HKD 385.77 million in the first half of 2023 to HKD 292.20 million in the first half of 2024, a decline of HKD 93.57 million, or approximately 24.3%[90]. Assets and Liabilities - Total assets decreased by 3.20% to HKD 3,262,822 thousand from HKD 3,370,677 thousand[8]. - Total liabilities decreased slightly by 0.88% to HKD 1,714,282 thousand from HKD 1,729,433 thousand[8]. - Current assets fell by 4.22% to HKD 1,199,882 thousand compared to HKD 1,252,689 thousand in 2023[8]. - The current ratio decreased to 1.05 times from 1.17 times in the previous period, a decline of 10.26%[8]. - Cash and cash equivalents decreased by 47.88% to HKD 77,541 thousand from HKD 148,785 thousand[8]. - The company's total assets as of June 30, 2024, were HKD 2,062,940,000, compared to HKD 2,117,988,000 as of December 31, 2023, showing a decrease of approximately 2.6%[17]. - Current liabilities increased to HKD 1,137,707,000 from HKD 1,070,201,000, representing an increase of about 6.3%[17]. - The company's equity attributable to owners decreased to HKD 1,039,618,000 from HKD 1,129,387,000, a decline of approximately 7.9%[17]. - Non-current liabilities decreased to HKD 576,575,000 from HKD 659,232,000, indicating a reduction of about 12.5%[17]. - Total liabilities as of June 30, 2024, were HKD 561,779,000, up from HKD 465,364,000, marking an increase of 20.7%[62]. - The company reported a total of HKD 531,756,000 in current liabilities due within one year, compared to HKD 435,596,000 in the previous period, indicating a rise of 22%[62]. Cash Flow and Investments - The company reported a net cash inflow from operating activities of HKD 17,500,000 for the six months ended June 30, 2024, compared to HKD 5,362,000 for the same period in 2023, representing a significant increase[22]. - Cash and cash equivalents decreased by HKD 65,352,000, compared to a decrease of HKD 90,924,000 in the previous year[22]. - The company has a significant outstanding loan receivable of HKD 58,430,000, with ongoing legal actions to recover the amount[65]. - The company has established sufficient provisions for impairment losses on receivables, indicating a stable financial position despite ongoing legal disputes[79]. Revenue Segmentation - The revenue from water supply services decreased to HKD 53,096,000, down 9.7% from HKD 58,666,000 in the previous year[29]. - The revenue from wastewater treatment services increased to HKD 46,437,000, up 7.1% from HKD 43,400,000 in the previous year[29]. - The construction services for water supply and wastewater treatment contributed revenue of HKD 92.38 million, a decrease of 17.94% from HKD 112.59 million in the first half of 2023[130]. - The renewable energy segment reported revenue of HKD 100.28 million, a decline of 41.41% from HKD 171.11 million in the first half of 2023[135]. Legal and Regulatory Matters - The company has been involved in multiple legal proceedings regarding the recovery of debts from various parties, including 泰恒 and 雲南超越燃氣[70]. - The company has submitted applications to freeze all equity of 四会污水 for an additional two years, extending the freeze until June 2026[68]. - The arbitration ruling confirmed that guarantors are jointly and severally liable for the repayment of principal and accrued interest[68]. - The company is pursuing legal actions in China to enforce arbitration awards against guarantors who have refused to acknowledge the rulings[68]. - The company has received a civil lawsuit regarding the sale of Anfa, which has been accepted by the court[144]. Employee and Operational Changes - Employee costs for the six months ended June 30, 2024, totaled HKD 85,306,000, down 11.4% from HKD 96,238,000 in the previous year[47]. - The company reduced its workforce from 936 full-time employees to 739, primarily due to the closure of several landfills in 2023[92]. - Employee welfare expenses for the first half of 2024 amounted to HKD 85,310,000, down from HKD 96,240,000 in the same period of 2023, attributed to cost control measures due to layoffs[153]. Future Plans and Strategic Initiatives - The company plans to expand its renewable energy segment, focusing on sales from biogas power plants and solid organic fertilizers[30]. - The company is focused on enhancing its renewable energy capacity, with multiple projects in the pipeline across different provinces[139]. - The company plans to enhance its wastewater treatment capabilities and continue upgrading existing facilities to mitigate the impact of market challenges[130]. - The company is actively expanding financing channels to support sustainable development and maintain a reasonable debt-to-asset ratio[190].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 292,195 thousand, a decrease of 24.26% compared to HKD 385,769 thousand for the same period in 2023[2]. - Gross profit for the same period was HKD 49,913 thousand, down 55.19% from HKD 111,382 thousand year-over-year[2]. - The company reported a net loss of HKD 77,301 thousand, which is a 104.65% increase in losses compared to HKD 37,773 thousand in the previous year[2]. - EBITDA for the six months was HKD 45,640 thousand, reflecting a decrease of 48.61% from HKD 88,819 thousand in the prior year[2]. - The total loss before tax for the period was HKD 27,442,000[16]. - The company reported a total revenue of HKD 385,769,000 for the six months ended June 30, 2023, with a significant portion coming from water supply and wastewater treatment services[16]. - The net loss for the first half of 2024 was approximately HKD 77.3 million, compared to a net loss of HKD 37.77 million in the first half of 2023, representing an increase in loss of 104.5%[53]. - Revenue decreased from HKD 385.77 million in the first half of 2023 to HKD 292.2 million in the first half of 2024, a decline of 24.3%[54]. - Gross profit fell from HKD 111.38 million in the first half of 2023 to HKD 49.91 million in the first half of 2024, a decrease of 55.3%[54]. - The gross profit margin for the first half of 2024 was 17.1%, down from 28.9% in the first half of 2023[53]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 3,262,822 thousand, down 3.20% from HKD 3,370,677 thousand as of the same date in 2023[2]. - Total liabilities decreased slightly to HKD 1,714,282 thousand, a reduction of 0.88% from HKD 1,729,433 thousand year-over-year[2]. - The current ratio was 1.05 times, down 10.26% from 1.17 times in the previous year[2]. - Cash and cash equivalents decreased by 47.88% to HKD 77,541 thousand from HKD 148,785 thousand in the prior year[2]. - The company’s asset-to-liability ratio increased to 52.54%, up 2.40% from 51.31% in the previous year[2]. - As of June 30, 2024, total assets amounted to HKD 2,125,115, a decrease from HKD 2,300,476 as of December 31, 2023, reflecting a decline of approximately 7.6%[8]. - Current liabilities totaled HKD 1,137,707, an increase from HKD 1,070,201, indicating a rise of about 6.3%[8]. - The company’s total liabilities reached HKD 3,262,822 million, with significant contributions from various business segments[22]. - The total liabilities of the group as of June 30, 2024, were HKD 1,714,280,000, down from HKD 1,729,430,000 as of December 31, 2023, reflecting a reduction of HKD 15,150,000 primarily due to the repayment of additional bank borrowings and lease liabilities[83]. Revenue Breakdown - Water supply services revenue decreased to HKD 53,096,000 from HKD 58,666,000, a decline of 9%[13]. - Wastewater treatment services revenue increased to HKD 46,437,000 from HKD 43,400,000, a growth of 7%[13]. - Revenue from water-related installation and construction services dropped to HKD 57,550,000 from HKD 93,775,000, a significant decrease of 39%[13]. - Revenue from electricity sales decreased to HKD 91,001,000 from HKD 156,602,000, a decline of 42%[13]. - The segment "Water Supply, Wastewater Treatment and Construction Services" reported a profit of HKD 31,539,000, while "Renewable Energy Development and Sales" incurred a loss of HKD 16,804,000[16]. - The total revenue from the water supply business for the first half of 2024 was HKD 53.09 million, a decrease of HKD 5.58 million compared to HKD 58.67 million in the same period of 2023, representing a decline of 9.50%[90]. - The revenue from the wastewater treatment business was HKD 46.44 million in the first half of 2024, an increase of HKD 3.04 million from HKD 43.40 million in the same period of 2023, representing a growth of 7.00%[93]. - The company reported a revenue of HKD 92.38 million and a gross profit of HKD 20.20 million for the water supply and sewage treatment construction services, accounting for 31.62% and 40.48% of total revenue and gross profit respectively[96]. Operational Highlights - The company has identified three reportable segments: Water Supply, Renewable Energy Sales, and Property Investment and Development[14]. - The company plans to continue focusing on expanding its renewable energy segment, particularly in biogas power generation and solid organic fertilizer sales[14]. - The company has five wastewater treatment projects located in Jiangxi, Guangdong, and Shandong provinces, maintaining a daily treatment capacity of 240,000 tons[92]. - The company has 50 solid waste treatment projects, with 36 operational and a total installed capacity of 109.63 MW, while 10 projects are under construction with an estimated capacity of 10.7 MW[97]. - The company is focusing on the development of organic waste recycling, comprehensive water treatment, overseas business expansion, landfill maintenance, and engineering services to enhance its professional capabilities in the environmental protection sector[151]. - The company has secured a 39-month service contract for food waste collection in West Kowloon, valued at approximately HKD 87 million, starting operations in March 2024[103]. Legal and Compliance Issues - The company has initiated legal actions to recover the outstanding loan balance of HKD 35,400,000, which remains unpaid despite multiple demands[38]. - The court has issued a winding-up order for the borrower, indicating potential recovery challenges for the company[39]. - The company has been involved in legal proceedings in China, with ongoing litigation as of the announcement date[41]. - The company has submitted a request for the recognition and enforcement of the Hong Kong arbitration award in Shenzhen and Huizhou courts[41]. - The company has not conducted any capital raising activities during the interim period[115]. - The company does not recommend the payment of an interim dividend for the six months ending June 30, 2024, maintaining the interim dividend at zero[125]. Strategic Initiatives - The company has made significant adjustments to its subsidiary structure, upgrading three tier-three subsidiaries to tier-two subsidiaries for better management and flexibility[128]. - The company has optimized cash flow by selling individual water assets, supporting the development of core businesses[129]. - The new biogas power generation segment has implemented strategies to optimize organizational structure and reduce operational costs significantly[130]. - The company is actively pursuing electricity price subsidies and aims to meet its annual revenue targets from these subsidies[132]. - The company has outlined future operational plans for projects in Shandong, with 100% ownership and expected start dates in October 2023[100]. Employee and Governance - As of June 30, 2024, the group had 739 employees, a decrease from 936 employees on June 30, 2023, with total employee benefits expenses amounting to HKD 85,310,000, down from HKD 96,240,000 in the first half of 2023[113]. - The company has adhered to the corporate governance code throughout the interim period, with a noted deviation regarding the separation of the roles of Chairman and CEO[120]. - The company currently has only two independent non-executive directors, which is below the minimum requirement of three as per listing rules[121].

Financial Performance - Total revenue for 2023 decreased to HKD 733,788 thousand, a significant drop compared to HKD 1,219,143 thousand in 2022[4] - Net profit for 2023 was a loss of HKD 213,635 thousand, compared to a loss of HKD 29,719 thousand in 2022[4] - Gross profit in 2023 was HK$184,202,000, down HK$186,732,000 from 2022, with a gross margin of 25.10%, a decrease of 5.33 percentage points[69] - Revenue for 2023 decreased by 39.81% to HKD 733.788 million compared to HKD 1,219.143 million in 2022[90] - Gross profit for 2023 dropped by 50.34% to HKD 184.202 million from HKD 370.934 million in 2022[90] - Annual loss for 2023 increased by 618.85% to HKD 213.635 million compared to HKD 29.719 million in 2022[90] - Loss attributable to owners of the company for 2023 rose by 172.93% to HKD 243.451 million from HKD 89.198 million in 2022[90] - Basic and diluted loss per share for 2023 increased by 118.30% to 8.47 HK cents from 3.88 HK cents in 2022[90] - EBITDA for 2023 decreased by 89.58% to HKD 27.643 million from HKD 265.182 million in 2022[90] - Net loss for the fiscal year 2023 was HK$213,640,000, a significant increase from HK$29,720,000 in 2022[68] - Revenue in 2023 was HK$733,788,000, a decrease of HK$485,355,000 compared to 2022[69] - The company's loss attributable to owners was HK$243,451,000 in 2023, compared to HK$89,198,000 in 2022[69] - The decrease in revenue and gross profit was primarily due to reduced electricity generation from renewable energy projects and fewer construction contracts[69] - Group revenue decreased by HKD 485.35 million to HKD 733.79 million in 2023, primarily due to reduced waste-to-energy projects and real estate market downturn[52] - Gross profit declined by HKD 186.73 million to HKD 184.2 million in 2023, driven by lower construction service performance in renewable energy and water supply businesses[52] - Total expenses increased by HKD 5.36 million to HKD 242.78 million in 2023, mainly due to higher administrative costs[53] - Net other expenses amounted to HKD 9.13 million in 2023, impacted by equipment write-offs and legal settlement costs[54] - The company's total assets decreased to HKD 3,370,677 thousand in 2023 from HKD 3,463,508 thousand in 2022[4] - The company's equity attributable to owners decreased to HKD 1,129,387 thousand in 2023 from HKD 1,395,640 thousand in 2022[3] - The Group's net asset value per share decreased to HKD 0.57 as of December 31, 2023, from HKD 0.66 in the previous year[31] - The Group's total assets decreased to HKD 1.64 billion as of December 31, 2023, from HKD 1.90 billion in the previous year[31] - Total assets decreased by HKD 92,830,000 to HKD 3,370,680,000 as of December 31, 2023, primarily due to the completion of the sale of New Zhongshui Carbon Energy, reduced bank and cash balances, and RMB depreciation against HKD[105] - Net current assets decreased to HKD 182,490,000 as of December 31, 2023, with a current ratio of 1.17, down from 1.31 in the previous year[120] - The company's trade and other payables decreased by HKD 43.83 million to HKD 465.36 million as of December 31, 2023, primarily due to RMB depreciation and settlement of construction liabilities for the Nanjing property project[142] - The company's total revenue decreased by HKD 121.79 million to HKD 205.87 million in 2023, with a gross profit margin of 30.27%[144] - Revenue from water supply-related installation and construction business decreased by HKD 90.62 million to HKD 135.88 million in 2023, with a gross profit margin of 46.14%[144] - Revenue from water supply and sewage infrastructure construction business decreased by HKD 31.17 million to HKD 69.99 million in 2023, with a gross loss margin of 0.56%[144] - Total revenue from electricity sales and other sources decreased to HKD 289.69 million in 2023, accounting for 90.55% of total revenue, compared to HKD 420.41 million (92.53%) in 2022[163] - Revenue from compressed natural gas and biogas services decreased to HKD 30.25 million in 2023, accounting for 9.45% of total revenue, compared to HKD 33.96 million (7.47%) in 2022[163] - Construction services revenue decreased to HKD 205.87 million in 2023, accounting for 28.06% of total revenue, compared to HKD 327.66 million in 2022[164] - Gross profit from construction services decreased to HKD 62.31 million in 2023, accounting for 33.83% of total gross profit, compared to HKD 107.40 million in 2022[164] - Revenue from electricity sales decreased to HKD 289.69 million in 2023, compared to HKD 420.41 million in 2022, with gross profit decreasing to HKD 39.71 million (13.71% gross margin) from HKD 147.56 million (35.10% gross margin)[168] - Revenue from compressed natural gas sales increased to HKD 11.03 million in 2023, compared to HKD 4.44 million in 2022, with gross profit improving to HKD 3.01 million (27.29% gross margin) from a loss of HKD 0.41 million (-9.23% gross margin)[168] - Revenue from biogas collection services decreased to HKD 18.35 million in 2023, compared to HKD 29.52 million in 2022, with gross profit decreasing to HKD 1.61 million (8.77% gross margin) from HKD 2.84 million (9.62% gross margin)[168] - Total revenue decreased to HKD 319.94 million in 2023, compared to HKD 454.37 million in 2022, with gross profit decreasing to HKD 43.97 million (13.74% gross margin) from HKD 149.99 million (33.01% gross margin)[168] - In the 2023 fiscal year, the company's revenue and gross profit were HK$319,940,000 and HK$43,970,000, accounting for 43.60% and 23.87% of the total revenue and gross profit, respectively[189] - Compared to the 2022 fiscal year, the company's revenue and gross profit decreased by HK$134,430,000 and HK$106,020,000, respectively[189] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 148,785 thousand in 2023 from HKD 184,447 thousand in 2022[3] - The asset-liability ratio increased to 51.31% in 2023 from 45.07% in 2022[3] - The company maintained a conservative financial policy, focusing on internal cash flow and bank loans for operations[16] - Financing costs for 2023 decreased by HKD 21.34 million to HKD 46.2 million due to lower interest rates on new loans[95] - Capital expenditures for FY2023 amounted to HKD 79,960,000, primarily for the acquisition of intangible assets related to franchise rights[121] - Expected credit loss provisions decreased by HKD 49,380,000 to HKD 73,390,000 in FY2023, mainly due to reduced balances in loans and other receivables[126] - The company signed a financing lease agreement with Sinopharm Leasing for RMB 30,000,000 (approximately HK$34,047,000) for landfill gas power generation facilities[197] - Another financing lease agreement was signed with Sinopharm Leasing for RMB 29,000,000 (approximately HK$32,912,000) for landfill gas power generation facilities[198] - A third financing lease agreement was signed with Sinopharm Leasing for RMB 7,000,000 (approximately HK$7,923,000) for landfill gas power generation facilities[198] Environmental and New Energy Sector - The company's environmental and new energy sector accelerated development, with key projects in Anhui and Shandong provinces[6] - Yichun Fangke Sewage Treatment Company processed a total of 46.81 million tons of sewage, with a daily average of 128,300 tons, and 30,308 tons of sludge[38] - Foshan Gaoming Huaxin Sewage Treatment Company achieved a reduction of over 10% in sludge transportation and electricity consumption through process adjustments[39] - Annual sewage treatment revenue exceeded initial performance targets by 6%, with profits surpassing expectations[43] - Sewage treatment price increased from RMB 1.19/ton and RMB 1.24/ton to RMB 2.06/ton after the upgrade project[43] - Anherui Environmental Energy Technology (Shanghai) Co., Ltd. successfully delivered multiple sewage treatment projects in 2023[44] - The company's total wastewater treatment capacity remained at 240,000 tons per day, with a total of 75.75 million tons of wastewater treated in 2023, an increase of 6.53% compared to 2022[146] - The company's revenue and gross profit from wastewater treatment business were HKD 85.20 million and HKD 34.15 million, respectively, accounting for 11.61% and 18.54% of the total revenue and gross profit[146] - The company's total wastewater treatment fee ranged from HKD 0.98 to HKD 1.43 per ton in 2023, compared to HKD 0.99 to HKD 1.44 per ton in 2022[146] - The company successfully signed four biogas power generation projects in 2023, adding 8 MW of power generation capacity[93] - The company's revenue from renewable energy business was HKD 203.14 million from electricity sales to local grid companies and HKD 81.68 million from government electricity price subsidies, accounting for 63.50% and 25.53% of the total renewable energy revenue, respectively[148] - The company's total installed capacity decreased by 3.46% to 145.3 MW as of December 31, 2023, compared to 150.50 MW in 2022[149] - The company's average electricity price was HKD 0.58 per kWh in 2023, compared to HKD 0.60 per kWh in 2022[149] - Government electricity subsidies decreased to HKD 81.68 million in 2023, accounting for 25.53% of total revenue, compared to HKD 129.34 million (28.47%) in 2022[163] - Revenue from sales to local grid companies decreased to HKD 203.14 million in 2023, accounting for 63.50% of total revenue, compared to HKD 289.88 million (63.80%) in 2022[163] - The company has 34 renewable energy projects, with 100% ownership in 24 projects and partial ownership in the remaining 10 projects, primarily focused on power generation and compressed natural gas[173] - The company signed 8 landfill gas collection and power generation agreements with various Chinese government departments and companies in the 2023 fiscal year, using a "Build-Own-Operate" investment model[179] - The Shenzhen Xiaping Landfill project has an 88% ownership stake, with compressed natural gas operations starting in July 2015 and power generation in October 2017[173] - The Chengdu City project has a 49% ownership stake, with power generation operations starting in May 2017 and expected to continue until December 2027[173] - The Zhangjiakou project has a 70% ownership stake, with power generation operations starting in October 2018[173] - The Dongyang project has a 90% ownership stake, with power generation operations starting in March 2018 and expected to continue until June 2025[173] - The company's renewable energy projects are distributed across multiple provinces in China, including Shaanxi, Hunan, Chongqing, Hainan, Guangdong, Sichuan, Hebei, Shandong, Zhejiang, Liaoning, Hubei, Guangxi, Jiangxi, and Fujian[173] - The company has a total of 51 solid waste treatment projects, with 35 projects already in operation, totaling 133.8 MW of installed capacity, and 11 projects under construction with an estimated total installed capacity of 11.5 MW[189] - The company acquired 8 new projects in Bolí, Shandong Chengwu, Xingcheng, Dashiqiao, Longnan, Yunyang, Jianping, and Zhangwu, with an estimated total installed capacity of 8 MW[189] - The company's projects in Bolí, Xingcheng, Dashiqiao, and Longnan have daily waste processing capacities of 500-550 tons, 300 tons, and 300 tons, respectively[190] - The company's registered capital for the Bolí project is RMB 30,000,000, with a 60% indirect shareholding[190] - The company's registered capital for the Xingcheng, Dashiqiao, and Longnan projects are RMB 6,000,000, RMB 6,000,000, and RMB 3,000,000, respectively, with 100% indirect shareholding[190] Property and Real Estate - Total rental income increased by 420.55% to HKD 3.8 million in 2023, driven by the leasing of office buildings in the Nanjing property project[34] - The fair value of investment properties decreased by HKD 12.29 million to HKD 201.39 million, mainly due to fair value and exchange rate losses[34] - Nanjing Space Big Data Industrial Park had a total leasable area of 17,808.23 square meters, with a year-end occupancy rate of 53%[45] - The company completed the sale of all commercial units in the Nanjing property project, with a total floor area of 8,496 square meters[176] - The company currently has four property projects with a total site area of approximately 70,985 square meters, including the Nanjing Leopard Nest Project and the Hongxun Blue Valley Smart Plaza[177] - The company's property projects have an estimated total floor area of 131,625 square meters upon completion, with lease terms of 50 years for most projects[177] - The company's investment properties in Nanjing and Jiangxi have a total gross floor area of 18,630.38 square meters, with a 53% occupancy rate for the Nanjing property[135] - The company recorded a fair value loss of HKD 9,300,000 on investment properties in Nanjing and Jiangxi, compared to a gain of HKD 590,000 in the previous fiscal year, due to a decline in the office leasing market in China[111] International Expansion and Strategic Initiatives - The group plans to focus on core business areas, including biomass gas resource utilization and overseas market expansion in 2024[49] - Established an overseas business division in August 2023 to actively expand into international markets, focusing on regions such as Indonesia, the Philippines, the Middle East, and Africa[57] - Successfully completed a pilot project for the photonic gasification pyrolysis technology in November 2023, processing 30 tons of aged waste per day at Guangzhou Huadu landfill site[58] - Secured a second green loan from the International Finance Corporation (IFC) in July 2023, with plans for further collaboration in overseas business development in 2024[59] Water Supply and Sewage Treatment - Water supply volume in 2023 reached 87,887,100 tons, a 2.5% year-on-year increase, with sales volume of 69,029,900 tons, up 5.89% year-on-year[62] - Revenue from water supply and sewage treatment services in 2023 was RMB 110,520,000, a 5.47% increase compared to the previous year[62] - The company holds a 65% equity interest in Yichun Mingyueshan Fangke Sewage Treatment Co., Ltd., which contributed HKD 1,140,000 to the company's share of profits from joint ventures in FY2023[129] Impairment and Fair Value Adjustments - The expected credit loss rate for loans and advances ranged from 72.10% to 100% as of December 31, 2023, compared to 9.17% to 100% in 2022[13] - Impairment losses on property, plant, and equipment for 2023 amounted to HKD 4.78 million, primarily related to renewable energy projects[97] - The company has been closely monitoring foreign exchange risks due to fluctuations in the RMB to HKD exchange rate[103] - The company completed the sale of New Zhongshui (Nanjing) Carbon Energy Co., Ltd., recording a gain of HKD 2,960,000 in FY2023, compared to HKD 530,000 in FY2022[117] - Tax expenses decreased by HKD 13,820,000 to HKD 15,430,000 in FY2023, reflecting lower operating profits and the completion of the sale of Linyi Fenghuang in the previous fiscal year[118] - Net income from financial assets at fair value through profit or loss increased by HKD 1,030,000 to HKD 1,730,000 in FY2023, driven by dividend income and gains from the sale of non-listed funds in China[111] Other Business Operations - Inventory decreased by HKD 11.05 million to HKD 56.01 million, mainly due to the

Financial Performance - For the fiscal year ending December 31, 2023, total revenue was HKD 733,788 million, a decrease from HKD 891,484 million in the previous year, representing a decline of approximately 17.7%[14] - The segment revenue from water supply, wastewater treatment, and construction services was HKD 413,846 million, down from HKD 557,457 million, indicating a decrease of about 25.7%[14] - The renewable energy segment reported revenue of HKD 319,942 million, a decline from HKD 454,371 million, reflecting a decrease of approximately 29.5%[14] - The company reported a total comprehensive loss of HKD 213,635,000 for the year ended December 31, 2023, compared to a loss of HKD 29,719,000 in the previous year[41] - The company reported a net loss of HKD 213,635,000 for 2023, compared to a loss of HKD 29,719,000 in 2022, representing an increase in losses of 618.85%[61] - The company's total assets as of December 31, 2023, amounted to HKD 1,252,689,000, a decrease from HKD 1,367,808,000 in the previous year[43] - The company reported a loss attributable to shareholders of HKD 243,450,000 for the fiscal year 2023, compared to HKD 89,200,000 for the fiscal year 2022[125] Revenue Breakdown - Revenue from wastewater treatment and related services was HKD 8,910 million, demonstrating strong performance in this segment[19] - Revenue from water supply services was HKD 122,776,000 in 2023, down from HKD 146,351,000 in 2022, indicating a decline of about 16.1%[35] - Revenue from electricity sales decreased to HKD 289,691,000 in 2023 from HKD 420,413,000 in 2022, a drop of approximately 30.9%[35] - Revenue from the sale of compressed natural gas increased to HKD 11,032,000 in 2023, compared to HKD 4,441,000 in 2022, marking an increase of about 148.5%[35] Expenses and Costs - Interest expenses totaled HKD (67,535) million, compared to HKD (46,203) million previously, indicating a rise in financing costs[17] - Total expenses increased by HKD 5,360,000 to HKD 242,780,000 in fiscal year 2023, compared to HKD 237,420,000 in fiscal year 2022[130] - The company's financing costs decreased to HKD 46,200,000 in fiscal year 2023, down HKD 21,340,000 from HKD 67,540,000 in fiscal year 2022[131] Asset and Liability Management - The company reported a total of HKD 3,463,508 million in segment assets, showing a robust asset portfolio across various divisions[19] - The company’s segment liabilities totaled HKD (1,561,090) million, which reflects the financial obligations across its operations[19] - The asset-to-liability ratio increased to 51.31% from 45.07% in the previous year[61] - Current ratio decreased to 1.17 times from 1.31 times year-on-year[61] - Total liabilities increased by HKD 168,340,000 to HKD 1,729,430,000, attributed to new bank borrowings and financing lease arrangements[188] Taxation and Compliance - The company did not incur any Hong Kong profits tax for the years ended December 31, 2022, and December 31, 2023, due to taxable profits being exempt[26] - The company has recorded a tax expense of HKD 15,430,000 for fiscal year 2023, a decrease of HKD 13,820,000 compared to HKD 29,250,000 in fiscal year 2022[141] Operational Efficiency and Strategy - The company is focusing on resource allocation and performance evaluation for its reporting segments to improve operational efficiency[11] - The company plans to focus on expanding its renewable energy investments, aiming to enhance its sustainability initiatives moving forward[19] - The company has implemented financial risk management policies to ensure all payables are settled within the agreed terms with suppliers[85] Employee and Human Resources - Employee costs for the year reached HKD 170,783,000, down from HKD 190,323,000 in the previous year, indicating a reduction in operational expenses[57] - As of December 31, 2023, the group had 1,053 employees, an increase from 1,010 employees as of December 31, 2022[72] - The group encourages employee participation in continuous education programs to enhance personal potential and skills[72] Legal and Compliance Issues - The company has initiated legal actions to recover the outstanding loan receivable balance, which includes HKD 35,400,000 thousand that remains unpaid[114] - The company has a judgment against Tai Heng for approximately HKD 3,900,000 in principal and interest, with a judgment interest rate of 8% from October 23, 2017, to December 31, 2018, and 8.08% from January 1, 2019, until payment[116] - The company is in the process of enforcing a judgment in the Shantou Intermediate People's Court and the Guangdong High People's Court regarding the arbitration award against the guarantors[116] Future Outlook - The company has plans for market expansion and new strategies, although specific details are not disclosed in the provided content[38] - The company is currently negotiating with several borrowers and potential business partners to recover related loans and/or advances[137] - The company plans to consider new financing options in response to upcoming investments and debt maturities[196]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 385,769, a decrease of 33.07% compared to HKD 576,399 in 2022[7] - Gross profit for the same period was HKD 111,382, down 38.67% from HKD 181,601 in the previous year[7] - The company reported a loss of HKD 37,773 for the period, a significant decline from a profit of HKD 6,214 in 2022, representing a 707.87% change[7] - EBITDA for the first half of 2023 was HKD 88,819, a decrease of 45.23% from HKD 162,162 in the prior year[7] - The company reported a total comprehensive loss of HKD 90,943 for the six months ended June 30, 2023, compared to a loss of HKD 81,555 for the same period in 2022[27] - The company experienced a foreign exchange loss of HKD 51,047 during the period, compared to a loss of HKD 87,925 in the previous year[27] - The company reported a total of HKD 250,870,000 in bank loans due within one year, representing 53.81% of total loans[135] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 3,264,082, down 5.76% from HKD 3,463,508 at the end of 2022[8] - Total liabilities decreased by 5.75% to HKD 1,471,314 from HKD 1,561,090[8] - Current assets fell by 10.36% to HKD 1,226,159 compared to HKD 1,367,808 at the end of 2022[8] - The company’s cash and cash equivalents decreased by 50.44% to HKD 91,417 from HKD 184,447[8] - The company’s total equity as of June 30, 2023, was HKD 1,792,768, a decrease from HKD 1,902,418 at the end of 2022, representing a decline of about 5.8%[24] - Total liabilities decreased to HKD 965,806 as of June 30, 2023, compared to HKD 1,020,004 at the end of 2022, indicating a reduction of approximately 5.3%[24] - The company’s accumulated losses as of June 30, 2023, were HKD 33,215,000[40] Shareholder Information - Basic and diluted loss per share for the period was HKD 1.96, compared to HKD 1.26 in 2022, reflecting a 55.56% increase in loss per share[7] - The company did not recommend any interim dividend for the reporting periods[64] - The company’s issued and fully paid ordinary shares as of June 30, 2023, totaled 2,873,610,000 shares, with a capital amount of HKD 28,736,000[127] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 5,362,000, a decrease from HKD 10,876,000 in the prior year[47] - The company experienced a net cash outflow from investing activities of HKD 94,442,000 for the six months ended June 30, 2023, compared to HKD 93,345,000 in the same period of 2022[47] - The cash and cash equivalents decreased by HKD 90,924,000 during the six months ended June 30, 2023, compared to a decrease of HKD 97,667,000 in the previous year[47] Revenue Breakdown - Water supply business revenue for the first half of 2023 was HKD 58.67 million, down HKD 13.41 million (approximately 18.60%) from HKD 72.08 million in the first half of 2022[149] - The sewage treatment business generated revenue of HKD 43.40 million, representing an increase of HKD 0.22 million (approximately 0.51%) compared to HKD 43.18 million in the previous year[148] - The construction services segment reported revenue of HKD 112.59 million, a significant decrease of HKD 107.67 million (approximately 48.88%) from HKD 220.26 million in the same period of 2022[148] - The renewable energy development and sales segment generated revenue of HKD 171.11 million, down HKD 69.77 million (approximately 28.98%) from HKD 240.88 million in the previous year[148] Trade Receivables - Trade receivables (net of impairment losses) increased by HKD 23,940,000 to HKD 751,280,000 as of June 30, 2023, from HKD 727,340,000 as of December 31, 2022, primarily due to increased government subsidies and delayed payments for water and sewage services[84] - Trade receivables from renewable energy business amounted to HKD 641,050,000, accounting for 85.33% of total trade receivables[104] - Trade receivables for water supply and sewage treatment services increased by HKD 8,730,000 to HKD 82,510,000, representing 10.98% of total trade receivables[105] Operational Highlights - The total daily water supply capacity is approximately 260,000 tons, down from 310,000 tons in the first half of 2022, reflecting a reduction of 50,000 tons[149] - The group processed a total of 37,920,000 tons of wastewater, representing a 5.66% increase compared to 35,890,000 tons in the same period last year[163] - The group has five wastewater treatment projects located in Jiangxi, Guangdong, and Shandong provinces, with a total daily treatment capacity of approximately 240,000 tons[163] Legal and Regulatory Matters - The group has received a court ruling requiring Tai Heng to repay approximately HKD 3,900,000 in principal and interest, with a judgment interest rate of 8% per annum[157] - The group has successfully obtained recognition from the Zhaoqing Intermediate People's Court for the enforcement of arbitration awards in mainland China[159] - The group has reported a full impairment of receivables amounting to HKD 43,600,000 from Da Xin[159] Renewable Energy Initiatives - The company is exploring new strategies for market expansion and product development in the renewable energy sector[191] - The company holds 100% equity in multiple renewable energy projects, including Shenzhen Pingshan and Hunan Chengzhou, with operational start dates ranging from January 2016 to April 2022[200] - The company plans to expand its renewable energy portfolio with projects in various provinces, including Shandong and Fujian, with operational dates extending to 2030[200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中 期 業 績 公 告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 千港元 千港元 % 財務業績 收入 385,769 576,399 (33.07%) 毛利 111,382 181,601 (38.67%) 期內（虧損）╱溢利 (37,773) 6,214 (707.87%) 本公司擁有人應佔虧損 (56,364) (24,185) (133.05%) 每股虧損（港仙） — 基本及攤薄 (1.96) (1.26) (55.56%) EBITDA（附註1） 88,819 162,162 (45.23%) 於二零二三年 於二零二二年 六月三十日 十二月三十一日 變動 ...

Financial Performance - The company reported revenue of HKD 1,219,143,000 for the year ended December 31, 2022, representing a 10.65% increase from HKD 1,101,791,000 in 2021[6]. - The gross profit decreased by 11.79% to HKD 370,934,000 from HKD 420,530,000 in the previous year[6]. - The company incurred a loss of HKD 29,719,000 in 2022, a significant decline of 216.33% compared to a profit of HKD 25,547,000 in 2021[6]. - The EBITDA for 2022 was HKD 265,182,000, down 20.48% from HKD 333,467,000 in 2021[6]. - The group’s revenue increased from HKD 992,100,000 in fiscal year 2021 to HKD 1,175,390,000 in fiscal year 2022, representing an increase of HKD 183,290,000[33]. - The renewable energy business contributed HKD 454,370,000 to the group's revenue in fiscal year 2022, down from HKD 569,200,000 in fiscal year 2021[34]. - The construction services segment generated revenue of HKD 308,150,000 in fiscal year 2022, an increase from HKD 216,370,000 in fiscal year 2021[34]. - Total revenue for the group in 2022 was HKD 1,175,390,000, compared to HKD 992,100,000 in 2021, marking an increase of 18.46%[104]. - The energy business revenue decreased significantly to HKD 454,370,000 in 2022 from HKD 569,200,000 in 2021, a decline of 20.14%[104]. Assets and Liabilities - The company’s total assets decreased to HKD 3,463,508,000 in 2022 from HKD 3,861,867,000 in 2021[9]. - The asset-liability ratio improved to 45.07% in 2022 from 50.13% in 2021[6]. - The group’s total liabilities decreased to HKD 1,561,090,000 from HKD 1,857,720,000, attributed to debt repayment and contract liabilities being reclassified to related income[97]. - The debt-to-asset ratio was 45.07% as of December 31, 2022, compared to 49.61% in the previous year, indicating improved financial leverage[60]. - The group’s net current assets increased to HKD 319,850,000 as of December 31, 2022, compared to HKD 182,630,000 on December 31, 2021, resulting in a current ratio of 1.31, up from 1.12 a year earlier[63]. Cash Flow and Financing - The company’s net cash and cash equivalents were HKD 184,447,000, down from HKD 291,358,000 in the previous year[6]. - The group’s cash and cash equivalents amounted to HKD 184,450,000, a decrease of HKD 30,140,000 from HKD 214,590,000 on December 31, 2021, primarily due to debt repayment and investments in renewable energy[63]. - The group recorded an increase in expected credit loss provisions for receivables, contributing to the overall net loss in fiscal year 2022[30]. - Financing costs slightly increased by HKD 1,550,000 to HKD 67,540,000, attributed to increased borrowing in China for renewable energy development[40]. - The group has identified liquidity risk, emphasizing the importance of maintaining sufficient cash and cash equivalents to meet financial obligations[163]. Operational Highlights - The company achieved operational revenue of HKD 1,012,000,000 in its water services and environmental renewable energy sectors in 2022[10]. - As of December 2022, the company achieved a total online electricity generation of 672 million kWh, with a total installed capacity of 150.50 MW[11]. - The company signed eight new biogas power generation projects, adding a generation capacity of 18 MW[11]. - The average daily sewage treatment capacity of Jining City Haiyuan Water Co., Ltd. increased by 39% year-on-year in 2022[21]. - The company achieved a water supply of 85,741,400 tons, a year-on-year increase of 6.67%[17]. Strategic Initiatives - The company plans to expand its overseas projects, particularly in biomass and gas power generation, with a focus on the Jakarta project in Indonesia[10]. - The group plans to focus resources on developing environmental protection and new energy sectors, including the establishment of a dedicated production line for glass recycling in Xisha[24]. - The group aims to restart the Jakarta project as a starting point for expanding into overseas markets in 2023[24]. - The company plans to focus on becoming a leading biomass gas operator in China and will optimize its traditional water service sector[23]. - The company is actively expanding its renewable energy portfolio, with projects in regions like Jakarta and Guangxi, indicating a focus on international market expansion[120]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange, except for a deviation noted in section C.2.1[192]. - The board is committed to enhancing transparency and quality of disclosures, aiming to provide effective risk and internal control measures[192]. - The company emphasizes a culture of integrity and ethical conduct, promoting its values throughout all departments[192]. - The management team includes experienced professionals with backgrounds in finance, corporate management, and investment, enhancing the company's operational capabilities[185][186][189][190]. - The board includes members with extensive experience in accounting, tax, and corporate finance, which supports the company's financial strategies[184]. Employee and Talent Management - As of December 31, 2022, the remaining group had a total of 1,010 employees, an increase from 996 employees as of December 31, 2021[173]. - Total employee benefits expenditure for the year amounted to HKD 182,790,000, a decrease from HKD 194,530,000 in the previous fiscal year[173]. - The company encourages employees to participate in continuous education programs, seminars, and online learning to enhance their skills and knowledge[173]. Risks and Challenges - The group faces foreign exchange rate risk due to most assets and loans being denominated in RMB, with management actively monitoring exchange rate fluctuations[161]. - Investment risk is a concern, with the group conducting feasibility assessments and requiring board approval for investment decisions[166]. - The group is expanding into renewable energy and biomass energy, which involves significant capital investment and potential uncertainties[168]. - The group is closely monitoring regulatory changes in China to mitigate legal and compliance risks[168].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 末 期 業 績 公 告 財務摘要 截至十二月三十一日止年度 二零二二年 二零二一年 變動 千港元 千港元 % 財務業績 收益 1,219,143 1,101,791 10.65% 毛利 370,934 420,530 (11.79%) 年度（虧損）╱溢利 (29,719) 25,547 (216.33%) 本公司擁有人應佔虧損 (89,198) (44,020) (102.63%) 每股虧損（港仙） — 基本及攤薄 (3.88) (2.76) (40.53%) EBITDA（附註） 265,182 333,467 (20.48%) 二零二二年 二零二一年 千港元 千港元 ...