Kangda International Environmental : 【2022-04-25】Financial Statements/ESG Information - 2021 Annual Report

CONTENTS 目錄

Corporate Information 2 ʮ̡༟ࣘ

Chairman's Statement 4 ˴ࢩజѓ

Management Discussion and Analysis 6 ၍ଣᄴীሞʿʱؓ

Directors and Senior Management 20 ໨ԫʿ৷ॴ၍ଣᄴ

Corporate Governance Report 26

Άุ၍طజѓ

Report of Directors 49 ໨ԫึజѓ

Independent Auditor's Report 68 ዹͭࣨᅰࢪజѓ

Consolidated Statement of Profit or Loss and Other Comprehensive Income 76 ၝΥฦूʿՉ˼Όࠦϗूڌ

Consolidated Statement of Financial Position 78 ၝΥৌਕًرڌ

Consolidated Statement of Changes in Equity 80 ၝΥᛆूᜊਗڌ

Consolidated Statement of Cash Flows 81 ၝΥତږݴඎڌ

Notes to the Consolidated Financial Statements 83 ၝΥৌਕజڌڝൗ

Financial Summary 231 ৌਕ฿ࠅ

BOARD OF DIRECTORS

Executive Directors

Mr. Zhao Juanxian (alias, Zhao Junxian) (Co-Chairman) Mr. Li Zhong (Co-Chairman)

Ms. Liu Yujie

Mr. Duan, Jerry Linnan (Chief Executive Officer)

Independent Non-executive Directors

Mr. Chau Kam Wing Donald

Mr. Chang Qing

Mr. Peng Yongzhen

AUDIT COMMITTEE

Mr. Chau Kam Wing Donald (Chairman) Mr. Chang Qing

Mr. Peng Yongzhen

REMUNERATION COMMITTEE

Mr. Peng Yongzhen (Chairman)

Mr. Zhao Juanxian (alias, Zhao Junxian) Mr. Chau Kam Wing Donald

NOMINATION COMMITTEE

Mr. Chau Kam Wing Donald (Chairman) Mr. Zhao Juanxian (alias, Zhao Junxian) Mr. Li Zhong

Mr. Peng Yongzhen Mr. Chang Qing

COMPANY SECRETARY

Mr. Wong Wan Sing

AUTHORISED REPRESENTATIVES

Mr. Zhao Juanxian (alias, Zhao Junxian)

Mr. Li Zhong

REGISTERED OFFICE

Cricket Square

Hutchins Drive P.O. Box 2681

Grand Cayman KY1-1111 Cayman Islands

HEADQUARTER AND PLACE OF BUSINESS IN THE PEOPLE'S REPUBLIC OF CHINA ("CHINA" OR THE "PRC")

No. 72 Avenue of Stars High-Tech Park

North New Zone Chongqing

The PRC

董事會 執行董事

Ⴛཡሬ΋͛€ᑌࢩ˴ࢩ ҽʕ΋͛€ᑌࢩ˴ࢩ ᄎ͗؏ɾɻ ݬ؍฻΋͛€Б݁ᐼ൒

獨立非執行董事 մᎀ࿲΋͛ ੬૶΋͛ ు͑ጲ΋͛

審核委員會

մᎀ࿲΋͛€˴ࢩ ੬૶΋͛ ు͑ጲ΋͛

薪酬委員會

ు͑ጲ΋͛€˴ࢩ Ⴛཡሬ΋͛ մᎀ࿲΋͛

提名委員會

մᎀ࿲΋͛€˴ࢩ Ⴛཡሬ΋͛ ҽʕ΋͛ ు͑ጲ΋͛ ੬૶΋͛

公司秘書

රʙᑊ΋͛

授權代表

Ⴛཡሬ΋͛ ҽʕ΋͛

註冊辦事處

Cricket Square Hutchins Drive P.O. Box 2681

Grand Cayman KY1-1111 Cayman Islands

總部及中華人民共和國（「中國」） 營業地址

ʕ਷ ࠠᅅ ̏௅อਜ ৷อ෤ ݋Έɽ༸ 72 ໮

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 THE CAYMAN ISLANDS

Suntera (Cayman) Limited

Suite 3204, Unit 2A

Block 3, Building D P.O. Box 1586

Gardenia Court, Camana Bay Grand Cayman, KY1-1100 Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor

Hopewell Centre

183 Queen' s Road East Wan Chai

Hong Kong

LEGAL ADVISER

As to Hong Kong law:

Norton Rose Fulbright Hong Kong

PRINCIPAL BANKER

Industrial and Commercial Bank of China Chongqing Rural Commercial Bank Bank of China

Shanghai Pudong Development Bank

Australia and New Zealand Banking Group Limited

AUDITOR

Ernst & Young

STOCK CODE

6136

COMPANY WEBSITE

http://www.kangdaep.com

香港主要營業地點

࠰ಥ ᝄ˺ಥᝄ༸ 18 ໮ ʕᐑᄿఙ 64 ᅽ 6409 ܃

開曼群島股份過戶登記處

Suntera (Cayman) Limited Suite 3204, Unit 2A

Block 3, Building D P.O. Box 1586

Gardenia Court, Camana Bay Grand Cayman, KY1-1100 Cayman Islands

香港股份過戶登記分處

࠰ಥʕ̯ᗇՎ೮াϞࠢʮ̡ ࠰ಥ ᝄ˺ ެΧɽ༸؇ 183 ໮ Υձʕː 17 ᅽ 1712-1716 ໮⧕

法律顧問

Ϟᗫ࠰ಥجܛj ፕ཭ᖯˤ࠰ಥ

主要往來銀行

ʕ਷ʈਠვБ ࠠᅅ༵ӀਠุვБ ʕ਷ვБ ɪऎऌ؇೯࢝ვБ ዦอვБණྠϞࠢʮ̡

核數師

τ͑ึࠇࢪԫਕה

股份代號

6136

公司網址

http://www.kangdaep.com

ੰ༺਷ყᐑڭϞࠢʮ̡ / ɚཧɚɓϋܓజѓ

Chairman's Statement 主席報告

Dear Shareholders,

On behalf of the board (the "Board") of directors (the "Directors") of Kangda International Environmental Company Limited (the "Company") together with its subsidiaries (collectively, the "Group"), I am pleased to present the annual report of the Group for the year ended 31 December 2021 to you.

RESULTS REVIEW

In 2021, when the pandemic rebounded rapidly in most parts of the world amidst the impact of variants of COVID-19, the Chinese government insisted on safeguarding people's health as its core concern and successfully contained the rebound and spread of the pandemic by maintaining high-intensity pandemic prevention and control measures. While enhancing the wastewater-related regulation as an important tool for pandemic prevention and control, the country is also concerned about the long-term development of the wastewater treatment industry as one of the foundations for building a beautiful China. National ministries and commissions, including the State Council and the National Development and Reform Commission, successively released the Guiding Opinions on Promoting the Recycling of Sewage ( ᗫ׵પආϮ˥༟๕ʷлܸٙ͜ኬจԈ'), the Urban Wastewater Treatment and Recycling Program for the "14th FiveYear Plan" Period( "ɤ̬ʞ"۬ᕄϮ˥ஈଣʿ༟๕ʷл͜೯࢝஝ྌ), the Water-saving Social Construction Planning for the "14th FiveYear Plan" Period ( " ɤ̬ʞ " ື˥ٟۨึܔண஝ྌ'), the Comprehensive Management Planning for the Water Environment of Key River Basins for the "14th FiveYear Plan" Period ( " ɤ̬ʞ " ࠠᓃݴਹ˥ᐑྤၝΥط ଣ஝ྌ'), the Comprehensive Work Plan for Energy Conservation and Emission Reduction for the "14th FiveYear Plan" Period ( " ɤ̬ʞ "ື ঐ䁌રၝΥʈЪ˙ࣩ') and other policy documents during the year, which clearly stated the targets for wastewater collection, treatment and recycling by 2025 and by 2035.

యหٙ΢Зٰ؇j ͉ɛස˾ڌੰ༺਷ყᐑڭϞࠢʮ̡€˜͉ʮ̡™ ஹΝՉڝ᙮ʮ̡€୕၈˜͉ණྠ™໨ԫ€˜໨ԫ™ ึ€˜໨ԫึ™d್ؚΣ ტɨ౤я͉ණྠ࿚Ї ɚཧɚɓϋɤɚ˜ɧɤɓ˚˟ϋܓٙϋజf

業績回顧

ίɚཧɚɓϋd຅Όଢɽ௅΅ήਜޥઋίᜊ၇ อۨڿًषݭٙላᏘʕܢ஺ˀᅁٙࣛࡉdʕ਷ ִ݁਺ܵ˸ၪᚐɛ͏਄ੰމࣨːdஷཀၪܵ৷ ੶ܓٙޥઋԣછણ݄dϓ̌༿Փəޥઋٙˀᅁ ձᓒ౳f਷࢕˸౤ʺϮ˥޴ᗫ္၍Ъމޥઋԣ છٙࠠࠅ˓ݬٙΝࣛd͵ᗫءϮ˥ஈଣБุٙ ڗჃ೯࢝dԨ˸ϤЪމܔணߕᘆʕ਷ٙਿᓾʘ ɓfܼ̍਷ਕ৫ʿ਷࢕೯࢝ҷࠧ։ഃ਷࢕௅։ ׵ϋʫ΋ܝ೯бəᗫ׵પආϮ˥༟๕ʷл͜ ٙ ܸ ኬ จ Ԉ 'e˜ ɤ ̬ ʞ ™۬ ᕄ Ϯ ˥ ஈ ଣ ʿ ༟ ๕ ʷ л ͜ ೯ ࢝ ஝ ྌ 'e˜ ɤ ̬ ʞ ™ື ˥ ۨ ٟ ึ ܔ ண ஝ ྌ 'e˜ ɤ ̬ ʞ ™ࠠ ᓃ ݴ ਹ ˥ ᐑ ྤ ၝ Υ ط ଣ ஝ ྌ 'e˜ ɤ ̬ ʞ ™ື ঐ ಯ ર ၝ Υ ʈ Ъ ˙ ࣩ 'ഃ ݁ ഄ ˖ ΁d ׼ ᆽ ౤ ̈ ə Ց 2025 ϋʿՑ 2035 ϋdᗫ׵Ϯ˥ϗණdஈଣʿΎ͛лٙͦ͜ ᅺf

After the peak construction period in the past few years, the Group's wastewater treatment facility projects under construction have been completed and commenced commercial operation in an orderly manner, significantly enhancing the Group's wastewater treatment capacity. The actual treatment volume of wastewater for the year increased to 1,262.4 million tonnes, representing an increase of approximately 11% as compared to 2020. Due to the higher gross profit margin of the wastewater treatment operation business, even though the total revenue for the year decreased by approximately 12% to RMB2,919.0 million as compared to the previous year due to the decrease in revenue from construction services, the gross profit for the year still increased slightly by approximately 1% to RMB1,335.3 million as compared to the previous year, and the overall gross profit margin of the Group improved to 46% from 40% last year.

຾ཀཀ̘ᅰϋٙܔி৷ࢤಂܝd͉ණྠٙίܔ Ϯ˥ஈଣண݄ධͦ௔ᚃϞҏҁϓʿҳɝਠุᐄ ༶dɽష౤ʺəණྠٙϮ˥ஈଣঐɢf͉ϋܓ Ϯ˥ྼყஈଣඎ౤ʺЇ 1,262.4 ϵ ຬ ኚd ༰ ɚ ཧɚཧϋܓᄣ̋ߒ 11%f͟׵Ϯ˥ஈଣ༶ᐄุ ਕٙˣлଟ༰৷dуԴ͉ϋܓᐼϗूΪމܔண ؂ਕϗूɨࠥϾ༰ɪϋܓɨൻߒ 12% Їɛ͏࿆ 2,919.0 ϵ ຬ ʩd ͉ ϋ ܓ ˣ л ʥ ್ ༰ ɪ ϋ ܓ ʃ షɪʺߒ 1% Їɛ͏࿆ 1,335.3 ϵຬʩd͉ණྠ ዆᜗ˣлଟ͵̘͟ϋٙ 40% ౤ʺЇ 46%f