鸿承环保科技2023年中期报告

INTERIMREPORT中 期 報 告2023 HONGCHENG ENVIRONMENTALTECHNOLOGY COMPANY LIMITED (Incorporated in the Cayman Islands with limited liability)Stock code: 2265 CONTENTS目錄 2Corporate Information5Financial Performance Highlights6Management Discussion and Analysis16Corporate Governance and Other Information25Condensed Consolidated Statement ofComprehensive Income26Condensed Consolidated Statement ofFinancial Position28Condensed Consolidated Statement ofChanges in Equity29Condensed Consolidated Statement of Cash Flows31Notes to the Condensed Consolidated FinancialStatements71Definitions CORPORATE INFORMATION公司資料 BOARD OF DIRECTORS Mr. Liu Zeming(Executive Director and Chairman)Mr. Zhan Yirong(Executive Director and Chief Executive Officer)Mr. Sheng Haiyan(Executive Director and Chief Technical Officer)Mr. Zhang Shijun(Independent non-executive Director)Ms. Liu Ye(Independent non-executive Director)Mr. Lau Chung Wai(Independent non-executive Director) COMPANY SECRETARY Mr. Wong Yun Fai AUTHORISED REPRESENTATIVES Mr. Wong Yun FaiMr. Zhan Yirong AUDIT COMMITTEE Mr. Lau Chung Wai(Chairman)Mr. Zhang ShijunMs. Liu Ye REMUNERATION COMMITTEE Ms. Liu Ye(Chairlady)Mr. Lau Chung WaiMr. Liu Zeming NOMINATION COMMITTEE Mr. Liu Zeming(Chairman)Ms. Liu YeMr. Zhang Shijun EXTERNAL AUDITOR 22 PricewaterhouseCoopersCertified Public AccountantsRegistered Public Interest Entity Auditor22/F, Prince’s BuildingCentralHong Kong HONG KONG LEGAL ADVISER 826 Fangda Partners26/F, One Exchange Square8 Connaught PlaceCentralHong Kong PRINCIPAL SHARE REGISTRAR AND TRANSFEROFFICE Conyers Trust Company (Cayman) LimitedCricket Square, Hutchins DrivePO Box 2681, Grand CaymanKY1–1111, Cayman Islands Conyers Trust Company (Cayman) LimitedCricket Square, Hutchins DrivePO Box 2681, Grand CaymanKY1–1111, Cayman Islands HONG KONG BRANCH SHARE REGISTRAR ANDTRANSFER OFFICE 1617 Tricor Investor Services Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong REGISTERED OFFICE IN THE CAYMAN ISLANDS Cricket Square, Hutchins DrivePO Box 2681, Grand CaymanKY1–1111, Cayman Islands Cricket Square, Hutchins DrivePO Box 2681, Grand CaymanKY1–1111, Cayman Islands PRINCIPAL PLACE OF BUSINESS IN THE PRC Yeyan Road NorthDadongzhuang Village NorthShahe Town, Laizhou CityShandong ProvincePRC PRINCIPAL PLACE OF BUSINESS IN HONG KONG 303131304 Unit 1304, 13/FOfficePlus@Wan Chai303 Hennessy RoadWan ChaiHong Kong CORPORATE INFORMATION公司資料 PRINCIPAL BANK 566 China Construction Bank (Laizhou Branch)No. 566 Guangzhou East RoadLaizhou CityShandong ProvincePRC 9 Shandong Laizhou Rural Commercial Bank (Jincheng Branch)No. 9 Fuqian StreetJincheng TownLaizhou CityShandong ProvincePRC 1 Bank of China (Hong Kong) Limited1 Garden RoadHong Kong 2265 STOCK CODE 2265 www.sdhcgroup.cn COMPANY WEBSITEwww.sdhcgroup.cn DATE OF LISTING12 November 2021 MANAGEMENT DISCUSSION AND ANALYSIS管理層討論與分析 BUSINESS REVIEW The Group, based in Shandong province, the PRC, has been focusingon gold mine hazardous waste treatment and resource recovery, andcomprehensive utilisation of gold mine hazardous wastes. We collectcyanide tailings, which is a kind of gold mine hazardous wasteresulting from smelting of gold, from the Group’s upstream customers,mainly comprised of gold smelting companies under gold miningcompanies with mine operations in Shandong province and inparticular, in Yantai city, which we, leveraging on our experience andexpertise, detoxify the cyanide tailings and recover therefromresources with economic value such as pyrite concentrate and gold-bearing pyrite concentrate. We then sell the recycled products to ourdownstream customers, mainly comprised of chemical manufacturingcompanies and trading companies of chemicals in the PRC to attaincomprehensive utilisation of gold mine hazardous wastes. The Groupis the only company in Laizhou city, Shandong province that hasobtained the Hazardous Waste Business Licence issued by YantaiMunicipal Ecology and Environment Bureau. Currently, the Group’s production facilities are strategically located inLaizhou city, Shandong province, where the quantity of gold reservesis ranked first among the county-level cities in the PRC. 2023 In 2023, due to complex international environment, the impact ofunexpected domestic and international factors, and unprecedentedchallenges, China’s economic growth was constrained to certainextent. Coupled with increasingly fierce competition in the hazardouswaste industry and structural imbalance between supply and demand,the hazardous waste market was sluggish in general. The hazardouswaste industry was undergoing more severe competition andchallenges. The global economy was still facing a contraction indemand and supply shock, and the upstream and downstream playersalong the value chain where the Company is engaged were affectedto varying degrees. During the Reporting Period, the Company’sresults of operations were also adversely affected by competition inthe industry and ma