Dear Valued Shareholders,
On behalf of the Board of Directors, I am pleased to announce the results of SIIC Environment Holdings Ltd. (“SIIC Environment” or the “Company”, together with its subsidiaries, the “Group”) for the 12 months ended 31 December 2024 (“FY2024”). In FY2024, the Group actively responded to various challenges and the complex and volatile environment by adjusting and upgrading its governance structure to enhance management, strictly controlling financial risks and steadily advancing the operation of different projects. In FY2024, the Group’s revenue amounted to RMB7.596 billion, and its net profit attributable to shareholders reached RMB605 million. Four quality wastewater treatment projects were awarded to the Group during the year and the group has a total designed capacity of 13.43 million tonnes per day.
Achieving progress while maintaining stability, striving forward
In 2024, the global economy struggled to recover amid profound changes. Even though China’s economy has been operating smoothly, the water industry still faced various challenges, such as local government debt, a saturated market, the need for innovation and transformation of traditional industries, and the detailed enhancement of management efficiencies. Still, since proposing the “carbon peaking” and “carbon neutrality” goals, China has fully implemented new development concepts, adhered to a people-centric philosophy, and embraced the harmonious coexistence of humanity and nature as a crucial feature and connotation of modernization with Chinese characteristics, giving prominence to building a Beautiful China in the development of a strong nation. It has actively responded to climate change, and achieved significant results in expediting the construction of a national carbon market, policy systems and support mechanisms, while vigorously engaging in global governance to address climate change.
In FY2024, the Group developed and implemented the management improvement action plan to step up the construction of the Group’s headquarters and enhance its management and control capabilities. The Group made significant progress in strategic planning and control, financial capital management, market investment expansion, scientific and technological innovation, etc., and continued to boost its brand influence and core competitiveness. It also maintained its focus on the core environmental health business, unswervingly followed the path of high-quality development, and consolidated and enhanced its leading position in China’s water and environmental protection industries
In FY2024, in the face of a complex and volatile environment, the Group maintained stable operations while spurring innovation-driven development, and also focused on refining management, which allowed its results to achieve steady progress. Revenue increased by 0.3% year on year to RMB7.596 billion, of which income from service concession arrangements, service revenue, and other revenue collectively rose by 2% to RMB5.8 billion. Net profit attributable to shareholders was up by 0.2% year on year to RMB605 million. The Group will continue to focus on refined and digital management, and use innovation to protect and drive its high-quality development.
Preventing risks and forging ahead
The Group vigorously managed liquidity risks and reinforced its financial stability. The pressure on local fiscal revenue and expenditures has extended the recovery cycles of water enterprises, hence the Company has increased its fund recovery efforts, continued to optimize its financing structure, and actively replaced high-interest loans to control financial risks. With greater financing scale, financial expenses declined by 6.6% compared with the same period in 2023, and the Group also avoided exchange rate risks caused by RMB fluctuations.
The Group watched closely for opportunities from high-quality new projects and continued to expand its market share. In FY2024, the Group acquired four new projects in Hubei Province, Shandong Province, Guangxi Zhuang Autonomous Region, and Hunan Province. Two projects have been upgraded and expanded, and four expansion projects were completed and have commenced commercial operation. The Group’s key solid waste treatment project, Shanghai Baoshan Renewable Energy Utilization Center (“Baoshan Project”), started operation in FY2024. As the first key municipal project for integrated end-processing of wet and dry solid waste following the formal implementation of waste classification in Shanghai, the Baoshan Project can effectively tackle the issue of waste treatment in the service segment. As of the end of FY2024, the Group has nearly 250 wastewater treatment and water supply projects, solid waste incineration projects, and sludge treatment projects.
The Board of Directors has recommended the payment of a final dividend of S$0.011 per ordinary share.
Technology leading to green development
The environmental headquarters has established a technology operations center to create a technology innovation team, coordinate process optimization and technology innovation, and explore and promote technology productization. The technical strengths of all segments have been drawn to focus on niche areas such as domestic sewage, industrial wastewater, water supply treatment, and sludge treatment. Also, a special technology center has been set up to coordinate the plans and budgets of annual scientific research projects, conduct research projects, and promote the commercialization of related innovations. At the same time, in accordance with the overall planning of informatization construction, it also examines and assesses the results and status of informatization construction of different segments, and optimizes and adjusts the informatization construction plans to promote the standardization and regulation of operation management and control, as well as improve the level of refined management and intelligent operation through digital intelligence empowerment.
The Company has integrated ESG into its daily policies and operations, and continuously improves its governance policies, commitments and goals. Several related policies have been formulated, including but not limited to “Environmental, Social and Governance Works Management Measures of SIIC Environment Holdings Ltd.”, “Sustainability Policy of SIIC Environment Holdings Ltd.”, and “Management and Operation Manual for Environmental, Social and Governance Index Database”. A professional third party has been appointed to conduct an internal review of the Sustainability Report based on the Company’s governance structure, which is buttressed by an effective internal control and risk management system. Compliant with the International Standards for the Professional Practice of Internal Auditing, issued by The Institute of Internal Auditors (The IIA), the identified processes relating to the Sustainability Report have been incorporated into its annual internal audit plan.
Appreciation
On behalf of the Board of Directors, I would like to express my sincere gratitude to all shareholders, customers, and business partners for their continued trust and support in the Group, and my highest respect to all employees for their dedication.
In the future, the Group will continue to seize opportunities from national strategies and policies, be attentive to high-quality new projects and business M&A opportunities, and increase expansion efforts in the Guangdong-Hong Kong-Macao Greater Bay Area and the Asia-Pacific region. It will increase its market share, continue to consolidate its foundation, empower corporate development with technological innovation, and enhance the Company’s core competitiveness. The Group will reinforce its leading position in China’s water and environmental protection industries, and strive to bring fruitful investment returns to shareholders.
Mr. Zhou Yuding
Chairman of the Board and Executive Director