2025-04-29-港交所-康达环保_2024年度报告_238页_6mb

报告摘要

2024 Annual Report Summary

Core Content

This document is the 2024 Annual Report of Kangda International Environmental Company Limited (the "Company") and its subsidiaries (the "Group"). It includes comprehensive information on corporate structure, financial performance, business operations, and strategic directions for the year ended 31 December 2024.

Key Information

Corporate Information

Board of Directors:
- Executive Directors: Mr. Li Zhong (Chairman), Ms. Liu Yujie, Mr. Duan, Jerry Linnan (CEO), Mr. Zhou Wei (CFO, appointed on 10 April 2024), Mr. Zhao Juanxian (former Co-Chairman, now non-executive director from 1 January 2025).
- Independent Non-executive Directors: Mr. Chau Kam Wing Donald, Mr. Chang Qing, Mr. Peng Yongzhen.
- Committees:
  - Audit Committee: Mr. Chau Kam Wing Donald (Chairman), Mr. Chang Qing, Mr. Peng Yongzhen.
  - Remuneration Committee: Mr. Peng Yongzhen (Chairman), Mr. Zhao Juanxian, Mr. Chau Kam Wing Donald.
  - Nomination Committee: Mr. Chau Kam Wing Donald (Chairman), Mr. Zhao Juanxian, Mr. Li Zhong, Mr. Peng Yongzhen, Mr. Chang Qing.
Company Secretary: Mr. Wong Wan Sing.
Authorized Representatives: Mr. Li Zhong, Mr. Zhou Wei (appointed on 1 January 2025), Mr. Zhao Juanxian (resigned on 1 January 2025).
Registered Office: Cricket Square, Hutchins Drive, P.O.Box 2681, Grand Cayman KY1-1111, Cayman Islands.
Headquarters in China: No. 72 Avenue of Stars, High-Tech Park, North New Zone, Chongqing, PRC.
Principal Place of Business in Hong Kong: Suite 6409, 64/F, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.
Share Registrar and Transfer Office in Cayman Islands: Suntera (Cayman) Limited, Gardenia Court, Camana Bay, Grand Cayman, KY1-1100.
Hong Kong Share Registrar and Transfer Office: Computershare Hong Kong Investor Services Limited, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong.
Legal Adviser: Norton Rose Fulbright Hong Kong (for Hong Kong law).
Principal Banker: Industrial and Commercial Bank of China, Chongqing Rural Commercial Bank, Bank of China, Shanghai Pudong Development Bank.
Auditor: Ernst & Young.
Stock Code: 6136.
Company Website: http://www.kangdaep.com.

Chairman's Statement

The Group maintained a prudent approach in operations, effectively controlling costs and leveraging domestic interest rate downtrends and tax incentives.
Net profit increased by 31.2% to RMB170.9 million.
The Group successfully disposed of underperforming projects, enhancing liquidity and reducing debt.
Total revenue reached RMB2,261.3 million, up 2.0% year-on-year, with 95.5% from urban water treatment.
Construction services revenue increased by 53.2% to RMB266.0 million due to the completion of in-progress projects.
Wastewater treatment volume reached 1,278.4 million tonnes, a 1% increase from the previous year.
Utilization rate of wastewater treatment plants remained at 85%.
Gross profit margin remained stable at 48.2%, slightly lower than 48.5% in 2023.
Profit attributable to owners of the parent increased by 34.6% to RMB168.0 million.

Management Discussion and Analysis

Business Review

Urban Water Treatment:
- The Group has 110 service concession arrangements, including 104 wastewater treatment plants, 1 water distribution plant, 3 sludge treatment plants, and 2 reclaimed water treatment plants.
- Total daily treatment capacity: 4,325,550 tonnes.
- Actual processing volume: 1,278.4 million tonnes.
- Utilization rate: 85%.
- Average water treatment tariff: RMB1.60 per tonne.
- Operation revenue decreased by 7% due to post-project audits and disposal of projects.
- Construction revenue increased by 108% due to new upgrade projects.
Water Environment Comprehensive Remediation:
- The Group completed most of its existing projects.
- Total revenue for the year was RMB22.1 million, down 49% from the previous year due to completion of EPC projects.
- 2 projects under construction in Jiangxi.
Rural Water Improvement:
- The Group has 2 projects in Guangdong.
- Total revenue increased by 58% to RMB78.9 million due to increased operation revenue and reduced construction costs.

Financial Analysis

Revenue: RMB2,261.3 million (up 2.0% from RMB2,216.4 million).
Cost of Sales: RMB1,172.3 million (up 3% from RMB1,140.4 million).
Gross Profit Margin: 48.2% (stable compared to 48.5% in 2023).
Other Income and Gains: RMB66.8 million (up 12% from RMB59.8 million), mainly from government grants and interest income.
Administrative Expenses: RMB284.0 million (slight increase from RMB283.1 million).
Other Expenses: RMB88.3 million (up 103% from RMB43.4 million), mainly due to foreign exchange losses, non-operating expenses, and asset disposal losses.
Finance Costs: RMB544.2 million (down 6% from RMB578.7 million), due to reduced benchmark interest rates.
Average interest rate: 5.51% (down 0.44 percentage points from previous year).
Long-term borrowings: 69.4% of total borrowings (up from 64.7% in 2023).
Net operating cash inflow: RMB403.1 million (positive since 2019).
Gearing ratio: 68.6% (down from 69.6% in 2023).
Current ratio: 1.32 (up from 1.15 in 2023).

Development Strategy and Future Outlook

The Group will continue to focus on urban water treatment to ensure steady cash flow.
It will seek price adjustments for wastewater treatment to offset rising operational costs.
Optimize debt structure and reduce financing costs by capitalizing on the domestic interest rate cut cycle.
Accelerate the disposal of underperforming projects to reduce debt and interest expenses.
Integrate resources to execute Water Environment Comprehensive Remediation projects under EPC and O&M contracts.
Invest in high-quality upstream and downstream businesses to enhance profitability and value creation.
The Group is confident in long-term profitability and future growth.

Conclusion

The Group reported positive financial results in 2024, with net profit up 31.2% and total revenue up 2.0%. Despite challenges such as slower economic growth and fiscal pressures, the Group managed to maintain stable profitability and improve financial ratios. It continues to focus on urban water treatment and leverages national policies to support sustainable growth and enhance operational efficiency.