2021 Interim Results Presentation Financial Business 01 Position 02 Highlights
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2021 Interim Results Presentation Financial Business 01 Position 02 Highlights Performance Outlook 03 Review 04 PART 01 Financial Information Steadily Growing Operating Results Operating revenue Net profit attributable to equity shareholders (RMB’00 million) 38.79 (RMB’00 million) 34.68 34.77 28.17 31.41 25.30 21.03 14.41 10.41 10.20 2017H 2018H 2019H 2020H 2021H 2017H 2018H 2019H 2020H 2021H Profit of associates attributable to equity Net profit of principal activities attributable to shareholders equity shareholders (RMB’00 million) (RMB’00 million) 7.33 27.12 29.10 27.47 22.42 5.58 4.29 11.98 2.44 2.89 2017H 2018H 2019H 2020H 2021H 2017H 2018H 2019H 2020H 2021H 4 Continuously Robust Financial Indicators Assets (RMB 100 million) Liabilities (RMB 100 million) +12.5% 611.21 185.92 543.28 143.50 2020 2021H 2020 2021H Equity attributable to equity shareholders Liabilities/assets ratio (RMB 100 million) +6.88% 412.16 385.65 30.42% 26.41% 2020 2021H 2020 2021H 5 Continuously Sound Financial Performance Proportion of Revenue of Each Segment Net Profit Attributable to Parent Company in 2021H of Each Segment in 2021H 730M 18.86% 270M 36.43% 310M 390M 2,670M 7.90% 53.70% 68.75% 110M 2.89% 60M 30M 1.60% 50M 4.73% 6.17% Solid waste and hazardous Waste incineration Energy-saving Port logistics New building materials solutions waste solutions equipment 6 PART 02 Business Highlights Prominent Brand Advantages Elected as Vice Chairman of China Cement Association In the second council meeting of the 8th session of China Cement Association, Guo Jingbin, the chairman of the Company, was elected as the Vice Chairman of China Cement Association with unanimous votes, which further enhanced the Company's project expansion ability and industry influence in the field of joint disposal of solid and hazardous waste by cement kilns. Granted with Anhui Province Science and Technology Award Conch Venture was granted with the third prize of Anhui Province Science and Technology Award for its important scientific research achievement of Key Technology Development and Application of Cement Kiln Joint Resource Treatment System for Urban Waste, which provides strong scientific and technological support for the company's high-quality development. Joint Visit to the Company by Overseas Chinese Media Executives A joint delegation of 21 overseas Chinese media presidents, chief editors and senior journalists from 18 countries and regions visited Chongqing Environmental Protection to show the world the Company's leading development concept and refined operation results in the environmental protection field. High Recognition in Capital Market and Industry The Company has been titled as the New Fortune Best IR Hong Kong Listed Company for the third consecutive year; MSCI Evaluation upgraded the ESG rating of the company from BB to BBB; The project companies have been widely praised and strongly supported by local governments and environmental protection departments, fully recognizing the Company's outstanding contribution to local environmental construction and protection. 9 PART 03 Performance Review Operation of Solid Waste and Hazardous Waste Solutions · Up to now, a total of 43 solid waste and hazardous waste disposal projects have been put into operation, with an annual disposal scale of 4.755 million tons and a hazardous waste certification scale of 2 160 140 120 100 80 62.17 60 32.26 40 26.99 15.67 17.1 20 10.2 0 Hazardous waste Solid waste 2019H 2020H 2021H 2021FY Results of Solid Waste and Hazardous Waste Solutions · Operating revenue was RMB 732 million, including RMB 528 million contributed by hazardous waste solutions, representing an increase of 71.86%YoY and RMB 204 million contribution by solid waste solutions, representing a significant increase of 141.72%YoY. · Gross profit was RMB 454 million, the comprehensive gross profit margin of products was 61.99% where the gross profit margin of hazardous waste solutions was 64.42% and the gross profit margin of solid waste solutions was 55.69%. 20.00 18(.0R0 MB 100 million) 16.00 14.00 +86.93% 12.00 10.00 8.00 +66.88% +74.17% 7.32 6.00 4.54 3.91 4.00 2.67 2.60 2.77 1.60 2.04 2.00 1.23 0.00 Net profit attributable to parent company Gross profit Operating revenue 2019H 2020H 2021H 2021FY 12 Data of Solid Waste and Hazardous Waste Solutions by Regions Data of Solid and Hazardous Waste Solutions by Regions in 2021H Average price of hazardous Average price of solid waste Receiving capacity Receiving capacity Region waste (Including tax / (Including tax / excluding of hazardous waste of solid waste excluding tax) tax) East China 63,500 tons RMB 1,777 / 1,677 358,900 tons RMB 326 / 308 Northwest China 73,500 tons RMB 1,132 / 1,068 76,000 tons RMB 452 / 426 Southwest China 63,800 tons RMB 1,969 / 1,857 65,000 tons RMB 230 / 217 South China 54,600 tons RMB 2,009 / 1,895 67,700 tons RMB 446 / 421 Central China 29,100 tons RMB 2,529 / 2,386 36,000 tons RMB 376 / 355 North China 38,200 tons RMB 1,360 / 1,283 18,100 tons RMB 174 / 164 Remark: ①East China includes the projects in operation in Wuhu (including fly ash), Suzhou, Huaining, Huaibei, Fanchang, Chizhou, Ningguo, Quanjiao, Zongyang and Ninghai; Northwest China includes the projects in operation in Fuping, Qianxian, Qianyang, Tongchuan, Mianxian, Xianyang and Bangda; Southwest China includes the projects in operation in Chongqing, Qingzhen, Liangping and Guangyuan; South China includes the projects in operation in Xingye, Yangchun, Long'an, Wenshan, Guilin and Chongzuo; Central China includes the projects in operation in Yiyang, Qiyang, Linxiang, Yiyang and Sanming; and North China includes the projects in operation in Sishui, Luoyang, Jiyuan, Dezhou, Tai'an, Baoding, Dengfeng and Huabin. ②The varieties of hazardous wastes through joint treatment by cement kilns by the Group mainly include: 35 varieties of hazardous waste, such as HW02 medical waste, HW04 pesticide waste, HW06 waste organic solvent and organic solvent- containing waste, HW08 waste mineral oil and mineral oil-containing waste, HW11 refined distillation residue, HW12 fuel , paint waste, HW13 organic resin waste, HW39 phenol waste, HW45 organic halide waste, HW49 other waste and so on. Waste Incineration Solutions During the reporting period, the Group's Waste Incineration Solutions: l received a total of 2,633,500 tons of household waste, of which 2,320,800 tons were used for power generation, representing an increase of approximately 96.18% YoY. l disposed 2,277,000 tons of household wastes, of which 1,962,700 tons were used for power generation, representing an increase of approximately 107.72% YoY. 5000 l generated 701 million kWh of electricity, representing an increase of approximately 121.14% YoY. 4500 150000 4000 3500 100000 3000 701M kWh 2500 50000 2000 317M kWh 2,320,800 tons 120M kWh 1,962,700 tons 1500 47M kWh 72M kWh 1000 1,183,000 tons 0 944,900 tons 500 496,400 tons 232,300 tons 309,000 tons399,400 tons 190,000 tons 258,600 tons 0 -50000 2017 2018H 2019H 2020H 2021H 2021FY Waste treated Waste received On-grid electricity 15 Waste Incineration Solutions Up to now, a total of 48 projects have been put into operation, processing 20,200 tons of household waste per day and 6.95 million tons of household waste per year. Operation Capacity Breakdown by Region Average On-grid Electricity Of Each Ton Trend Unit: t/d, project 3800 400 3600 357 kWh 360 346 kWh 2900 2800 319 kWh 2300 320 1800 280 kWh 280 8 9 6 5 7 3 249 kWh 1000 900 240 400 4 2 300 200 200 1 1 1 1 200 Xianggan Anhui Shan'gan Yunnan Guizhou Jijimeng Guangxi Xinjiang Shandong Chongqing Guangdong Sichuan 2017 2018 2019 2020 2021H 2021FY 16 Waste Incineration Solutions · Achieved revenue of RMB 2.667 billion, including revenue of RMB 2.107 billion during the construction period, representing an increase of 16.44% YoY; and operating revenue of RMB 560 million, representing an increase of 88.2%. · Achieved gross profit of RMB 662 million; gross margin of 24.83%, including gross margin of 15.3% during the construction period and 60.65% during the operation period. Net profit attributable to parent Operating revenue (RMB 100 million) Gross profit (RMB 100 million) company (RMB 100 million) (RMB 100 million) (RMB 100 million) (RMB 100 million) 60 16 12 50 12 40 8 30 26.67 8 6.62 21.07 5.60 5.59 3.94 4 3.47 20 2.98 1.86 3.40 4 1.57 2.5 10 21.07 18.09 3.72 3.22 1.91 1.44 0 0 0 2020H 2021H 2021FY 2020H 2021H 2021FY 2020H 2021H 2021FY Construction Period Operation Period Construction Period Operation Period Construction Period Operation Period 17 Waste Disposal Revenue Composition January - June 2021 January - June 2020 Change in Change in Revenue amount proportion Composition Amount Amount Proportion (%) Proportion (%) (%) (ppts) (RMB’000) (RMB’000) Construction 2,106,658 78.99 1,809,173 85.87 16.44 -6.88 revenue Waste treatment by 7,872 0.30 27,544 1.31 -71.42 -1.01 cement kilns Grate furnace waste 2,098,786 78.69 1,781,629 84.56 17.80 -5.87 power generation Operating revenue 468,914 17.58 226,677 10.76 106.86 6.82 Waste treatment by 22,197 0.83 23,478 1.11 -5.46 -0.28 cement kilns Grate furnace waste 446,717 16.75 203,199 9.65 119.84 7.10 power generation Interest income 91,526 3.43 71,106 3.37 28.72 0.06 Waste treatment by 19,878 0.74 25,216 1.19 -21.17 -0.45 cement kilns Grate furnace waste 71,648 2.69 45,890 2.18 56.13 0.51 power generation Total 2,667,098 100.00 2,106,956 100.00 26.59 - 18 Operating Performance of Other Segments (RMB million) Operating revenue of other Net profit of other segments 350 segments attributable to parent company 306 60 300 50 250 44 45 40 200 35 169 30 150 108 112 20 100 62 10 50 42 10 -3 -8 0 0 Energy-saving equipment New building materials Port logistics Energy-saving equipment New building materials Port logistics -10 2020H 2021H 2020H 2021H 19 PART 04 Future Prospects Contracting and Production Planning of Solid Waste and Hazardous Waste Solutions Focusing on the five-year development planning goals, adhering to the integration of multiple channels, and achieving the further expansion of the business .