Datang Environment Industry Group Co., Ltd. - Interim / Quarterly Report 2021

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(A joint stock limited company incorporated in the People's Republic of China with limited liability) Stock Code: 1272

2021 INTERIM REPORT

For identification purpose only

Company Profile	2
Financial Highlights	3
Management Discussion and Analysis	6
Changes in Share Capital and Shareholdings of Substantial Shareholders	23
Significant Events	28
Profile of Directors, Supervisors and Senior Management	34
Independent Review Report	48
Interim Condensed Consolidated Statement of
Profit or Loss and Other Comprehensive Income	49
Interim Condensed Consolidated Statement of Financial Position	51
Interim Condensed Consolidated Statement of Changes in Equity	53
Interim Condensed Consolidated Statement of Cash Flows	54
Notes to the Interim Condensed Consolidated Financial Information	55
Definition and Glossary of Terms	91
Corporate Information	94

Company Profile

The predecessor of the Company (stock code: 1272) was China Datang Group Environment Technology Co., Ltd. (中國大唐集團環境技術有限公司), which was established in July 2011. Since the establishment of the Company and after several years of rapid development and a series of business restructuring, the Company has been successfully listed on the Main Board of the Stock Exchange since 15 November 2016. As at 30 June 2021, the Company had a total of 2,967,542,000 issued Shares, among which the Controlling Shareholder, China Datang, holds, directly and indirectly, an aggregate of approximately 78.96%.

The Group is the sole platform for the development of environmental protection and energy conservation business under China Datang Group. The principal business of the Group includes environmental protection facility concession operation, denitrification catalysts, environmental protection facilities engineering, water treatment business, energy conservation business and renewable energy engineering business.

As at 30 June 2021, the Company’s major corporate structure was as follows:

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100% China Datang Corporation Ltd. (中國大唐集團有限公司（PRC） ) Public Shareholdersof H Shares
78.17% 21.04%
China Datang Group Capital Holding Co., Ltd.
(中國大唐集團資本控股有限公司)
（PRC）
0.79% The Company
（PRC）
100% 65% 100% 56% 100% 92.11% 100% 65% 10%
Hengtong Mechanical Transport Co., Ltd.”(北京大唐恒通機械輸送技術有限公司)Beijing Datang Hengtong Science & (formerly known as “Beijing Datang (北京大唐恒通科技有限公司)Technology Co., Ltd.（PRC） ) Technology Co., Ltd.(大唐Datang (Beijing) Energy Saving(有限公司（北京PRC)節能技術）) Datang (Beijing) EnergyManagement Co., Ltd.(大唐管理有限公司（(PRC北京）)能源) China Datang Technologies& Engineering Co., Ltd.(中國大唐集團科技工程有限公司（PRC） ) & Technology Co., Ltd. Water Engineering (大唐Datang (Beijing)技術有限公司(（北京PRC)水務工程） ) Environmental ProtectionTechnology Co., Ltd.(大唐南京環保科技Datang Nanjing有限責任公司（PRC） ) (Design Institute Co., Ltd.Jiangsu Nanjing Thermal江蘇南京熱電工程設計院Electricity Engineering有限責任公司（PRC） ) Environmental Protection(Zhejiang Datang Tiandi浙江大唐天地環保科技Technology Co., Ltd.有限公司（PRC）) (formerly known as “China Datang OverseasElectric Technology and O&M Co., Ltd.”((中國大唐集團海外技術服務有限公司中國大唐集團海外電力運營有限公司China Datang Overseas Power Operating Co., Ltd.（PRC） )))
100%
Datang Technologies &
Engineering India
Private Limited
(大唐科技工程印度有限公司)
（India）
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2 Datang Environment Industry Group Co., Ltd.

Financial Highlights

The following table sets forth the Group’s interim condensed consolidated statements of profit or loss and other comprehensive income for the periods indicated:

	For the six months ended 30 June
	2021 2020 (unaudited) (unaudited) RMB’000 RMB’000
Revenue Cost of sales	2,196,597 2,867,941 (1,798,319) (2,443,412)
Gross profit Selling and distribution expenses Administrative expenses Other income and losses Other expenses Finance costs Impairment losses on financial and contract assets	398,278 424,529 (10,023) (10,046) (220,839) (193,474) 56,019 56,614 – (98,865) (111,960) (137,170) (9,502) (8,394)
Profit before tax Income tax expense	101,973 33,194 (35,548) (29,005)
PROFIT FOR THE PERIOD	66,425 4,189
OTHER COMPREHENSIVE INCOME Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Exchange differences on translation of foreign operations	2,029 (736)
Net other comprehensive income that may be reclassified to profit or loss in subsequentperiods	2,029 (736)

2021 Interim Report 3

Financial Highlights (Continued)

	For the six months ended 30 June
	2021 2020 (unaudited) (unaudited) RMB’000 RMB’000
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: Equity investments designated at fair value through other comprehensive income: Changes in fair value Impact of income tax	(4,748) 1,730 712 (260)
Net other comprehensive income that will not be reclassified toprofit or loss in subsequentperiods (4,036) 1,470
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX (2,007) 734
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX 64,418 4,923
Profit attributable to: Owners of the parent 86,645 50,299 Non-controllinginterests (20,220) (46,110)
66,425 4,189
Total comprehensive income attributable to: Owners of the parent 83,745 51,357 Non-controllinginterests (19,327) (46,434)
64,418 4,923
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT Basic and diluted (RMB) 0.03 0.02

4 Datang Environment Industry Group Co., Ltd.

Financial Highlights (Continued)

The following table sets forth selected items from the Group’s interim condensed consolidated statements of financial position as at the dates indicated:

	As at	As at
	30 June 2021	31 December 2020
	(unaudited)	(audited)
	RMB’000	RMB’000
ASSETS
Total current assets	10,852,342	11,778,902
Total non-current assets	8,083,639	8,401,956
Total assets	18,935,981	20,180,858
LIABILITIES AND EQUITY
Total current liabilities	9,255,662	9,927,604
Total non-current liabilities	2,415,975	2,913,976
Total equity	7,264,344	7,339,278
Total liabilities and equity	18,935,981	20,180,858

The following table sets forth a summary of the Group’s interim condensed consolidated statements of cash flows for the periods indicated:

	For the six months ended 30 June
	2021 2020 (unaudited) (unaudited) RMB’000 RMB’000
Net cash flows generated from operating activities Net cash flows used in investing activities Net cash flows used in financingactivities	327,008 628,682 (155,951) (142,890) (1,031,196) (766,650)

2021 Interim Report 5

Management Discussion and Analysis

MANAGEMENT DISCUSSION AND ANALYSIS

As an environmental protection and energy conservation solution provider, the principal business of the Group includes environmental protection facility concession operation, the manufacture and sale of denitrification catalysts, environmental protection facilities engineering, water treatment business, energy conservation business and renewable energy engineering business. Customers of the Group spread over 30 provinces, autonomous regions and municipal cities in the PRC as well as 8 countries.

I. INDUSTRY OVERVIEW

Based on the overall performance of the environmental protection industry in the first half of 2021, there are mainly the following highlights and industry trends:

National strategies boost the steady expansion of ecological protection market in the Yangtze River and Yellow River Basin

The Yangtze River Protection Law of the People’s Republic of China (《中華人民共和國長江保護法》), which became effective on 1 March 2021, requires that the local people’s governments above the county level in the Yangtze River Basin shall coordinate the construction of centralised treatment facilities of urban and rural wastewater and supporting pipeline network to ensure normal operation and improve the capacity of urban and rural wastewater collection and treatment, and enterprises are required to reduce resource consumption and pollutant emissions through technological innovation. On 31 August 2020, Political Bureau of the CPC Central Committee considered the “Outline of the Yellow River Basin Ecological Protection and High-quality Development Plan”, requiring adaptable actions, classifying policies and respecting laws, to enhance ecological environment in the Yellow River Basin; promoting the intensive and economical utilization of water resources in the Yellow River and taking water resources as the most rigid constraint to expand the room for development through water conservation. Ecological protection policy in the Yangtze River and Yellow River Basin.

Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

The “double carbon” goal boosts the development of the renewable energy industry for reaching a new peak

General Secretary Xi Jinping proposed that the PRC’s CO2 emissions are strived to reach a peak by 2030 and to achieve carbon neutrality by 2060. Along with the economic growth and increased demand of energy, the PRC has continuously reduced coal power generation, vigorously developed and utilized non-fossil energy sources such as wind power, solar power, hydropower and nuclear power, replacing coal-fired power with clean energy. In 2021, the NDRC and the National Energy Administration have successively promulgated a series of guiding opinions to promote the integration of grid source, charge storage and multi-energy complementary development, the development and construction of wind power and photovoltaic power generation, and entire county (city and district) distributed rooftop photovoltaic power development, the development of new energy will reach a peak. It is estimated that in the next five years, clean energy in the PRC will account for about 80% of the increase in energy consumption, and the annual total additional installed capacity of wind power and photovoltaic power will be no less than 100 million kW.

“Fourteenth Five-Year Plan” boosts resource recycling industry to embrace new opportunities

On 1 July 2021, the NDRC printed and distributed the “‘Fourteenth Five-Year’ Recycling Economy Development Plan”, requiring to construct a resource-recycling industry system, improve resource utilization efficiency, introduce green design of key products, strengthen clean production in key industries, promote cyclical development of parks, enhance resource comprehensive utilization, and boost co-processing of urban waste. As to 2025, the yield of main resources will improve by approximately 20% as compared with 2020, and unit gross domestic product energy consumption and water consumption will decrease by approximately 13.5% and 16%, respectively, as compared with 2020, the comprehensive utilization rate of crop straws will remain at above 86%, the comprehensive utilization rate of bulk solid waste will reach 60%, the comprehensive utilization rate of construction waste reaches 60%, waste paper utilization will reach 60 million tonnes, scrap steel utilization will reach 320 million tonnes, output of recycled non-ferrous metals will reach 20 million tonnes, and output value of resource-recycling industry will reach RMB5 trillion, embracing new opportunities from the development in the industry.

2021 Interim Report 7

Management Discussion and Analysis (Continued)

II. BUSINESS OVERVIEW

1. Environmental Protection and Energy Conservation Solution Business

Environmental protection facility concession operation business

As at 30 June 2021, the cumulative installed capacity in operation for desulfurization concession operations of the Group reached 48,220MW. The cumulative installed capacity in operation for denitrification concession operations reached 41,210MW and the installed capacity of the desulfurization entrusted operation projects reached 1,960MW.

During January to June 2021, the Group was devoted to optimizing the operation and energy consumption diagnosis, intensifying the indicator management and control and first-rate benchmarking, and realizing the consecutive reduction of electricity consumption, limestone consumption and water consumption. The Group also sped up the application of new technologies, such as the renovation of energy conservation for slurry circulation pumps and the intelligent control technology of denitrification and ammonia injection, with decrease in 19–25% of the electricity consumption rate of circulation pumps and reduction of 10% of ammonia injection volume.

Denitrification catalysts business

During January to June 2021, the production volume and the sales volume of the denitrification catalysts business of the Group were 14,780.8m³ and 18,190.2m³, respectively. The following table sets forth the breakdown of the key figures of the Group’s denitrification catalysts business during January to June 2021:

		(Unit: m3)
Production volume	Sales volume	Delivery volume
14,780.8	18,190.2	17,076.4

During January to June 2021, the Group sold 7,531.8m³ of catalyst to customers other than China Datang Group, among which, 2,631.3m³ of catalyst was sold to overseas customers and 1,034m³ of catalyst was sold to customers from non-electric industry such as glass and alumina sectors.

In addition, during January to June 2021, the Group conducted business in relation to integrated use of an aggregate of 1,770.8m³ of spent denitrification catalysts.

Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

Environmental protection facilities engineering business

As of 30 June 2021, the environmental protection facilities engineering business in the power industry of the Group won bids for 5 projects, including denitrification project with an installed capacity of 9,560MW and 2 industrial site dust treatment projects with an installed capacity of 3,300MW. The Group has 22 projects under construction, with a total installed capacity of 17,720MW.

Water treatment business

During January to June 2021, the Group entered into contracts for 1 new water engineering project. As at 30 June 2021, the Group has 4 water treatment operation projects and 6 water engineering projects under construction.

Energy conservation business

As at 30 June 2021, the Group has 10 energy management contract projects under execution with a total investment of RMB340.2 million.

2. Renewable Energy Business

During January to June 2021, the Group has entered into 3 renewable energy project contracts, namely Huangji Photovoltaic Project, Taonan Photovoltaic Project and Jiulong Baisha Photovoltaic Project, with a total installed capacity of 310MW. As at 30 June 2021, the Group has a total of 4 renewable energy projects under construction with an installed capacity of 360MW. In addition, the Group continued to carry out whole process management business of photovoltaic projects. As at 30 June 2021, the Group has 2 projects under construction with an installed capacity of 82MW.

3. Thermal Power Engineering Business

From January to June 2021, the Group has yet to commence the thermal power engineering business.

4. Overseas Business

In the first half of 2021, the Group focused on dust desulfurization and denitrification of environmental protection markets in India and actively develops renewable energy markets such as biomass power stations in Southeast Asia. Due to the impact of worldwide COVID-19, during January to June 2021, the Group has not signed newly overseas project. As at 30 June 2021, the Group has 4 overseas projects under execution.

2021 Interim Report 9

Management Discussion and Analysis (Continued)

5. Research and Development

The ISO international standard “Evaluation method of industrial wastewater treatment and reuse technology” (ISO 23043: 2021) jointly applied by the Group and Nanjing University and other units has been officially released. As of 30 June 2021, the Group was the editor in chief for 7 of the domestic and international standards among the 35 domestic and international standards being compiled by the Group.

In the first half of 2021, the Group obtained 64 patents, including 4 invention patents. As at 30 June 2021, the Group has accumulatively obtained 1,446 patents, 147 of which were invention patents.

III. MANAGEMENT DISCUSSION AND ANALYSIS ON FINANCIAL POSITION AND OPERATING RESULTS

The following discussion should be read in conjunction with the financial information of the Group together with the accompanying notes included in this interim report and other sections therein.

There are inter-segment sales among the Group’s segments and sub-segments, and accordingly the Group records intra-segment elimination and inter-segment elimination among these segments/sub-segments for the relevant revenue and cost of sales. In this interim report, unless otherwise specified herein, (i) all discussion about total revenue, total gross profit and overall gross profit margin are based on the amounts after all intra- and inter-segment elimination among the segments/sub-segments (being the figures reflected in our consolidated statement of profit or loss and other comprehensive income), and (ii) all discussion about the revenue, gross profit and gross profit margin of business segments and subsegments are based on the amounts before any intra- or inter-segment elimination of such segment or sub-segment.

10 Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

1. Overview

The Group’s revenue decreased by 23.4% to RMB2,196.6 million for the six months ended 30 June 2021 as compared with RMB2,867.9 million for the same period in 2020. The Group’s profit for the six months ended 30 June 2021 amounted to RMB66.4 million, representing an increase of RMB62.2 million as compared with RMB4.2 million for the same period in 2020. Profit attributable to the owners of the parent amounted to RMB86.6 million for the six months ended 30 June 2021. As at 30 June 2021, the Group’s cash and cash equivalents decreased by 56.2% to RMB671.3 million as compared with RMB1,531.7 million as at 31 December 2020. The Group’s total assets decreased by 6.2% to RMB18,936.0 million as at 30 June 2021 as compared with RMB20,180.9 million as at 31 December 2020. The Group’s total liabilities decreased by 9.1% to RMB11,671.6 million as at 30 June 2021 as compared with RMB12,841.6 million as at 31 December 2020. The Group’s return on total assets for the six months ended 30 June 2021 was 0.34%, as compared with 0.02% for the same period in 2020.

2. Results of Operation

Revenue

The Group’s revenue decreased by 23.4% to RMB2,196.6 million for the six months ended 30 June 2021 as compared with RMB2,867.9 million for the same period in 2020, primarily due to the decrease in revenue of engineering businesses.

Cost of sales

The Group’s cost of sales decreased by 26.4% to RMB1,798.3 million for the six months ended 30 June 2021 as compared with RMB2,443.4 million for the same period in 2020. The decrease of the Group’s cost of sales was due to the decrease in costs along with the decrease in revenue of engineering businesses.

Selling and distribution expenses

The Group’s selling and distribution expenses remained unchanged at RMB10.0 million for the six months ended 30 June 2021 and for the same period in 2020.

Administrative expenses

The Group’s administrative expenses increased by 14.1% to RMB220.8 million for the six months ended 30 June 2021 as compared with RMB193.5 million for the same period in 2020, mainly due to the increase in research and development expenses.

2021 Interim Report 11

Management Discussion and Analysis (Continued)

Other income and losses

The Group’s other income and losses decreased by 1.1% to RMB56.0 million for the six months ended 30 June 2021 as compared with RMB56.6 million for the same period in 2020.

Other expenses

The Group’s other expenses decreased by 100% to RMB0 million for the six months ended 30 June 2021 as compared with RMB98.9 million for the same period in 2020, mainly because during the same period in 2020, during an arbitration proceeding, the arbitration authority ruled that China Datang Technologies & Engineering Co., Ltd. (“Technologies & Engineering Company”) (a subsidiary of the Company) shall pay a total amount of RMB98,865,000 to Jiangsu Jiuding Tiandi Wind Power Co., Ltd. (“Jiuding Tiandi Wind Power”) for economic losses, and there was not any other compensation incurred for the six months ended 30 June 2021.

Finance costs

The Group’s finance costs decreased by 18.4% to RMB112.0 million for the six months ended 30 June 2021 as compared with RMB137.2 million for the same period in 2020, mainly due to the decrease in the balance of interest-bearing bank borrowings of the Group and the replacement of high-interest bank borrowings through the issuance of super short-term commercial papers, which lowered the average financing cost.

Profit before tax

As a result of the foregoing factors, the Group’s profit before tax increased by 207.2% to RMB102.0 million for the six months ended 30 June 2021 as compared with RMB33.2 million for the same period in 2020.

Income tax expense

The Group’s income tax expense was RMB35.5 million for the six months ended 30 June 2021, representing an increase of 22.4% from RMB29.0 million for the same period in 2020.

Profit for the period

The Group’s profit for the Reporting Period increased by RMB62.2 million from RMB4.2 million for the six months ended 30 June 2020 to RMB66.4 million for the six months ended 30 June 2021. For the six months ended 30 June 2021, the Group’s profit during the Reporting Period as a percentage of its total revenue increased to 3.0% as compared with 0.1% for the same period in 2020.

Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

Profit attributable to owners of the parent

The profit attributable to owners of the parent increased by RMB36.3 million to RMB86.6 million for the six months ended 30 June 2021 as compared with RMB50.3 million for the same period in 2020.

Profit attributable to non-controlling interests

The profit attributable to non-controlling interests increased by 56.2% to RMB-20.2 million for the six months ended 30 June 2021 as compared with RMB-46.1 million for the same period in 2020.

3. Results on Business Segments

The following table sets forth a breakdown of the Group’s revenue by segment/subsegment and each segment/sub-segment as a percentage of total revenue for the six months ended 30 June 2021 and 30 June 2020, respectively, as well as the percentage of change:

	13 2021 Interim Report For the six months ended 30 June 2021 2020 Revenue Percentage of total revenue before elimination(1) Revenue Percentage of total revenue before elimination(1) Change RMB’000 % RMB’000 % % 2,162,153 96.5 2,104,396 71.9 2.7 (42,776) (46,090) 2,119,377 2,058,306 3.0 – – 2,119,377 2,058,306 3.0
Environmental Protection and Energy Conservation Solutions: Total revenue of environmental protection Intra-segment elimination(2)
Total revenue of environmental protection and energy conservation solutions after intra-segment elimination Inter-segment elimination
External revenue of environmental protection and energy conservation solutions

Management Discussion and Analysis (Continued)

	For the six months ended 30 June 2021 2020 Revenue Percentage of total revenue before elimination(1) Revenue Percentage of total revenue before elimination(1) Change RMB’000 % RMB’000 % %
Renewable Energy Engineering: Total revenue of renewable energy engineering business Inter-segment elimination	43,206 2.0 752,011 25.8 (94.3) – –
External revenue of renewable energy engineering business	43,206 752,011 (94.3)
Thermal Power Engineering: Total revenue of thermal power engineering Inter-segment elimination	927 – – – 100 – –
External revenue of thermal power engineering	927 – 100
Other Businesses: Total revenue of other businesses Inter-segment elimination(3)	33,441 1.5 68,598 2.3 (51.3) (354) (10,974)
External revenue of other businesses 33,087 57,624 (42.6)
Total revenue before intra- and inter- segment elimination(4) 2,239,727 100.0 2,925,005 100.0 (23.4)
Total intra- and inter-segment elimination(5) (43,130) (57,064)
Total revenue 2,196,597 2,867,941 (23.4)

Notes:

(1) Represents the revenue of each business segment or sub-segment (before any intra- or inter-segment elimination) as a percentage of the total revenue before any intra- or inter-segment elimination.

Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

(2) Intra-segment elimination of revenue from sub-segments under environmental protection and energy conservation solutions segment mainly arises from the intra-segment sales between denitrification catalysts sub-segment to denitrification facilities engineering sub-segment and environmental protection facility concession operation, respectively.
(3) Inter-segment elimination of revenue from other businesses segment mainly arises from the intersegment sales between other businesses segment and environmental protection and energy conservation solutions segment, respectively.
(4) Represents the aggregate amount of the revenue of all segments/sub-segments before any intra- or inter-segment elimination.
(5) Represents the aggregate amount of all intra- and inter-segment elimination.

The following table sets forth a breakdown of the Group’s gross profit by segment/subsegment and gross profit margin of each business segment/sub-segment for the six months ended 30 June 2021 and 30 June 2020, respectively, as well as the percentage of change in gross profit:

	For the six months ended 30 June 2021 2020 Gross profit(1) Gross profit margin(2) Gross profit(1) Gross profit margin(2) Change of gross profit RMB’000 % RMB’000 % %
Environmental Protection and Energy Conservation Solutions: Total gross profit of environmental protection and energy conservation solutions	371,615 17.2 397,664 18.9 (6.6)
Total gross profit of renewable energy engineering	366 0.8 6,839 0.9 (94.6)
Total gross profit of thermal power engineering	(5) (0.5) (659) – (99.2)
Total gross profit of other businesses	18,144 54.3 11,769 17.2 54.2
Total gross profit and gross profit margin(3)	398,278 18.1 424,529 14.8 (6.2)

2021 Interim Report 15

Management Discussion and Analysis (Continued)

Notes:

(1) Calculated based on the revenue of each segment or sub-segment (before any intra- or inter-segment elimination) minus the cost of sales of such segment or sub-segment (before any intra- or intersegment elimination).
(2) Calculated based on the gross profit of each segment or sub-segment calculated according to note (1) divided by the revenue of such segment or sub-segment (before any intra- or inter-segment elimination).
(3) Total gross profit equals total revenue (being the revenue reflected on our consolidated statement of profit or loss and other comprehensive income) minus total cost of sales (being the cost of sales reflected on our consolidated statement of profit or loss and other comprehensive income). Overall gross profit margin equals total gross profit divided by total revenue.

4. Cash Flows

As at 30 June 2021, the Group’s cash and cash equivalents decreased by 56.2% to RMB671.3 million as compared with RMB1,531.7 million as at 31 December 2020. Such decrease was mainly attributable to the increase in the cash flow used in financing activities of the Group.

5. Working Capital

As at 30 June 2021, the Group’s net current assets decreased by 13.8% to RMB1,596.7 million as compared with RMB1,851.3 million as at 31 December 2020, primarily due to the increase of receivables, and the decrease of interest-bearing bank borrowings and other loans.

6. Indebtedness

As at 30 June 2021, the Group’s borrowings decreased by 14.1% to RMB5,214.8 million as compared with RMB6,070.9 million as at 31 December 2020.

7. Capital Expenditure

The Group’s capital expenditure increased by 14.5% to RMB43.5 million for the six months ended 30 June 2021 as compared with RMB38.0 million for the six months ended 30 June 2020. Capital expenditure mainly comprises the construction costs of concession projects for newly developed environmental protection facilities and water treatment facilities projects.

Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

8. Net Gearing Ratio

As at 30 June 2021, the Group’s net gearing ratio (net debt (total borrowings minus cash and cash equivalents) divided by the sum of net debt and total equity) was 38.5%, representing an increase of 0.3 percentage point as compared with 38.2% as at 31 December 2020.

IV. RISK FACTORS AND RISK MANAGEMENT

Risks on environmental protection and energy conservation policies

The Group provides substantially all of its products and services in the PRC, and the development of its business is greatly dependent on the environmental protection policies of the PRC. Environmental protection industry is one of the major industries that benefit from the constant support of the PRC government. The market demand for the Group’s environmental protection and energy conservation products and services and the revenue generated therefrom are directly affected by the environmental protection policies of the PRC. However, if there is any adverse change in energy conservation policies, it may result in a material and adverse effect on the business prospects, results of operations and financial condition of the Group. The management of the Group is of the view that it is unlikely for the PRC government to revise such environmental protection policies to result in an adverse effect or to withdraw any resources invested in the environmental protection industry. Moreover, the Group, as a trendsetter and leader of the environmental protection and energy conservation for the PRC’s electric power industry, has participated in the formulation of various industrial policies and standards, which allows it to catch the latest industry trends and respond in a timely fashion.

Risks on connected transactions with China Datang Group

The Group has been conducting various transactions with China Datang Group, and will continue to enter into such transactions in the future. During January to June 2021, the total value of products and services provided by the Group to China Datang Group (other than concession operations) was approximately RMB0.169 billion, representing approximately 7.69% of the total revenue of the Group. During January to June 2021, the total value of the services provided by the Group to China Datang Group under the concession operations (desulfurization and denitrification) was approximately RMB1.765 billion, representing approximately 80.34% of the total revenue of the Group. The Group has been actively expanding its client base, for example, during January to June 2021, the Group entered into contracts in the amount of RMB0.153 billion with clients other than China Datang Group, representing 18.18% of the total of contracts entered into during January to June 2021.

2021 Interim Report 17

Management Discussion and Analysis (Continued)

Cash flow risks

The Group had positive operating cash flows for the six months ended 30 June 2021. The Group cannot assure that its operating cash flows for any future period will be positive. The Group’s ability to generate cash inflows from operating activities in the future will depend in large part on project schedule and billing arrangement, its ability to collect receivables from its customers in a timely manner and the credit terms it can obtain. If the Group is not able to generate sufficient cash flows from its operations or obtain sufficient financing to support its business operation, the Group’s growth prospects may be materially and adversely affected. The Group plans to adopt various measures to collect receivables in order to significantly improve operating cash flow. In addition, the Group has been proactively seeking finance to support the development and expansion of its business. As at 30 June 2021, the Group had available bank facilities of RMB14.783 billion.

Industry risks

Macroeconomic environment of the PRC will influence the development of the environmental protection industry. If economic growth of the PRC slows down or experiences a downward trend, the environmental industry of the PRC will be adversely affected. The Group’s business primarily focuses on the environmental protection and energy conservation for coal-fired power plants, the market demand for its business relies heavily on the growth rate of the coal-fired power generation output in the PRC. In particular, the revenue generated from concession operations will be directly affected by the power generation output of coal-fired power plants. At present, the PRC government has shown considerable concern for the adjustment to the national energy structure and development. Therefore, there can be no assurance that coal-fired power generation output in the PRC will continue to grow at the current pace. If the increase of coal-fired power generation output in the PRC slows down, it may result in a decrease of utilization hours of coal-fired power generation units, or a lower demand for the Group’s products and services, which will materially and adversely affect our business prospects, results of operations and financial position. The management of the Group is of the view that, in terms of the power generation portfolio in the PRC, coal-fired power generation still dominates the market. In addition, the vast majority of the Group’s concession operations locate in coastal areas or economically developed areas, where the utilization hours of coalfired power generation are higher than the average level nationwide. The Group plans to actively explore clients in the iron and steel, cement and petro-chemical industries.

18 Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

Risks on overseas business

The Group is aggressively developing its overseas business, especially in the Belt and Road Initiative countries. The Group’s global business expansion may be hindered by risks such as: lack of availability of overseas financing, possible difficulties in the management of personnel and business operations, lack of understanding of the local business environment, financial and management system or legal system, volatility in currency exchange rates, cultural differences, changes in political, regulatory or economic environments in the foreign countries or other regions, as well as the risk of barriers. If the Group fails to manage the above risks effectively, its overseas expansion may be hindered, which may in turn result in a material and adverse effect on its business prospects, results of operations and financial condition. The management of the Group is of the view that, the PRC government has been actively establishing friendly diplomatic relations with the Belt and Road Initiative countries and improving the overseas investment atmosphere. The Group has extensive project experience in some countries, for instance India and Thailand, which can serve as examples for its future overseas development, and the Group has established rather mature risk management and internal control systems to mitigate risks on overseas business to the greatest extent possible.

V. EMPLOYEES AND REMUNERATION POLICY

As at 30 June 2021, we had 1,045 employees, substantially all of whom were based in the PRC. The Group has individually established labor union branches. Currently, the Group has entered into employment agreements with all employees, in which the position, duties, remuneration, employment benefits, training, confidentiality obligations relating to trade secrets and grounds for termination are specified pursuant to the PRC Labor Law and other relevant regulations.

2021 Interim Report 19

Management Discussion and Analysis (Continued)

The table below sets forth the number of employees as at 30 June 2021 by their functions:

		Percentage
		of the total
	Number of	number of
Function	employees	employees
Concession operation management personnel	319	30.53%
Engineering and technical personnel	201	19.24%
Sales personnel	74	7.08%
Research and development personnel	330	31.58%
Administrative and management personnel	85	8.13%
Manufacture personnel	23	2.20%
Others	13	1.24%
Total	1,045	100.00%

According to the development requirements, the Company further established and improved the overall responsibility management system and the whole staff performance evaluation system on the basis of clear position objectives. In order to inspire the potential and work enthusiasm of employees, to fully embody the incentive and constraint behavior, and to lay a solid foundation for the orderly career development of all the employees, the Company divides the specific task in development planning into each department and position, objectively and accurately evaluates the job targets completing performance of employees by building position performance targets and performance standard, and realizes awards and punishments according to the score that is formed by evaluation results quantification.

The remuneration package of our employees includes salaries, bonuses and allowances. Our employees also receive welfare benefits, including medical care, housing subsidies, retirement and other benefits. We carry out employee performance appraisals, establish diversified and dynamic appraisal mechanisms. The department heads’ salaries and remunerations will be adjusted corresponding to the results of their performance appraisals. Pursuant to applicable PRC regulations, we have contributed to social insurance funds, including pension plans, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance, and housing funds for our employees.

In order to attract and retain high-quality employees and further improve their knowledge, skill level and professional attainments, we place a strong emphasis on the training of our employees. We offer in-service education, training and other opportunities to our managers and employees to improve their professional skills and knowledge.

20 Datang Environment Industry Group Co., Ltd.

Management Discussion and Analysis (Continued)

During the Reporting Period, the Group provided 4 training programs on business management, professional techniques and production skills, with 100% employees attending the trainings.

The Group complies with the Labor Law of the PRC and the Labor Contract Law of the PRC in all material respects and makes contributions to social insurance and housing provident fund for our employees according to the above laws, among which the social insurance includes basic pension insurance, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance.

VI. OUTLOOK ON THE GROUP’S FUTURE DEVELOPMENT

Encountering complexity of and constant changes in the industry and development environment, the Group will focus on four aspects as follows:

Focus on resource-recycling utilization to vigorously develop recycling economy

The Group will receive profound understanding on the important meaning of developing recycling economy as the significant strategy of the PRC economical and social development, fully utilize the project of country’s construction of urban waste resources recycling, the project of recycling development of parks and the demonstration project of comprehensive utilization of bulk solid waste and other work opportunities, intensively plan for comprehensive utilization of waste, energy cascade utilization, recycling and reuse of water resources, and resource utilization of wastewater, gas and liquid and other businesses, strive for the implementation of key projects of the sludge drying processing and desulfurization gypsum reuse, and completely fulfill green and low-carbon recycling development.

Focus on comprehensive energy service to push forward green and low-carbon development

The Group will focus on the area of integrated energy service, strengthening the concept of “park”, continue to develop the distributed rooftop photovoltaic power project, seize high-quality resources, actively develop “photovoltaic+”, “smart energy” and “electric heating and cold steam storage”, and integrate comprehensive energy service with intelligent technology, in order to jointly promote green, low-carbon and intelligent transformation of business. The Group will continue to deeply develop the centralized photovoltaic project, and effectively seize the projects of “agriculturesolar photovoltaic power complementation” and “fishery-solar photovoltaic power complementation”, further contributing to green and low-carbon development.

2021 Interim Report 21

Management Discussion and Analysis (Continued)

Implement the three-year action plan to fully actualize market-oriented reform

The Group will fully implement the three-year action plan for reform of state-owned enterprises, and try hard to take the responsibility as pacesetter, and reform persistent in the direction of being more conducive to the development of enterprises, and establish a “dual contract” management system of “labor contract + post-recruitment contract” for all employees through implementing the term system and contractual reform of the managers of the enterprises, and making great efforts to build the “Four Can” system adaptable to the market-oriented development, namely “cadres can be promoted or demoted, staff can enter or quit, remuneration can be high or low, and institutions can increase and decrease”.

Adhere to self-reliance in science and technology to improve innovation level of science and technology

The Group will enhance the market-oriented mechanism in technology innovation, strengthen the level as an innovative body, and leverage the significant supporting of high quality development from technological innovation. The Group will focus on enhancing the level of concession operation, focus on reducing operational energy and material consumption, focus on improving engineering and technology ability, and focus on supporting the development of new businesses to maintain a key focus on “carbon peak emissions and carbon neutrality”, “resources recycling”, “green and low-carbon”, “new energy” as well as other national strategies and current hot spots, and promote organic integration of design power, technology power and research power with the Company’s businesses, in order to achieve comprehensive output effects.

22 Datang Environment Industry Group Co., Ltd.

Changes in Share Capital and Shareholdings of Substantial Shareholders

I. CHANGES IN SHARE CAPITAL OF THE COMPANY

		Number of Shares	Increase/decrease
	Number of Shares	as at 31 December	(+, -) during
	as at 30 June 2021	2020	the Reporting Period
Domestic Shares	2,343,245,800	2,343,245,800	0
H Shares	624,296,200	624,296,200	0
Total	2,967,542,000	2,967,542,000	0

II. INTERESTS AND SHORT POSITIONS OF THE DIRECTORS, S U P E R V I S O R S A N D C H I E F E X E C U T I V E I N T H E S H A R E S, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS

As at 30 June 2021, none of the Directors, Supervisors or chief executive of the Company had any interest or short position in the Shares, underlying Shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which would have to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO), or which were required, pursuant to Section 352 of the SFO, to be recorded in the register referred to therein, or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code.

2021 Interim Report 23

Changes in Share Capital and Shareholdings of Substantial Shareholders (Continued)

III. I N T E R E S T S A N D S H O R T P O S I T I O N S O F S U B S T A N T I A L SHAREHOLDERS AND OTHER PERSONS IN SHARES AND UNDERLYING SHARES

As at 30 June 2021, to the best of the Directors’ knowledge, having made all reasonable enquiries, the following persons (other than the Directors, Supervisors or chief executive of the Company) had interests or short positions in the Shares or underlying Shares which would fall to be disclosed to the Company pursuant to the provisions of Divisions 2 and 3 of Part XV of the SFO and, which were entered in the register required to be kept by the Company pursuant to Section 336 of the SFO:

Name of Substantial
Shareholder

As at 30 June 2021

Class of
Shares
Capacity
Number of Shares/
underlying Shares
held or deemed to
be held
Approximate
percentage of
Shares/underlying
Shares(1)
Percentage in the
total Shares(2)
(Share)
(%)
(%)

China Datang
Anbang Investment Holdings Co.,
Limited (安邦投資控股有限公司)(3)
Anbang Group Holdings Co. Limited
(安邦集團控股有限公司)(3)
Dajia Life Insurance Co., Ltd.
(大家人壽保險股份有限公司)(3)
Dajia Insurance Group Co., Ltd.
(大家保險集團有限責任公司)(3)
China Chengtong Hong Kong Company
Limited (中國誠通香港有限公司)(4)
China Chengtong Holdings Group Ltd.
(中國誠通控股集團有限公司)(4)
China Energy Engineering Corporation
Limited (中國能源建設集團有限公司)
State Grid International Development
Limited (國家電網國際發展有限公司)(5)
State Grid Corporation of China
(國家電網公司)(5)

Domestic Shares
Beneficial owner
2,343,245,800
(Long position)
100
78.96
H Shares
Beneficial owner
120,540,000
(Long position)
19.31
4.06
H Shares
Interest in controlled
corporation
120,540,000
(Long position)
19.31
4.06
H Shares
Interest in controlled
corporation
120,540,000
(Long position)
19.31
4.06
H Shares
Interest in controlled
corporation
120,540,000
(Long position)
19.31
4.06
H Shares
Beneficial owner
61,557,000
(Long position)
9.86
2.07
H Shares
Interest in controlled
corporation
61,557,000
(Long position)
9.86
2.07
H Shares
Beneficial owner
61,557,000
(Long position)
9.86
2.07
H Shares
Beneficial owner
61,467,000
(Long position)
9.85
2.07
H Shares
Interest in controlled
corporation
61,467,000
(Long position)
9.85
2.07

24 Datang Environment Industry Group Co., Ltd.

Changes in Share Capital and Shareholdings of Substantial Shareholders (Continued)

Name of Substantial
Shareholder

As at 30 June 2021

Class of
Shares
Capacity
Number of Shares/
underlying Shares
held or deemed to
be held
Approximate
percentage of
Shares/underlying
Shares(1)
Percentage in the
total Shares(2)
(Share)
(%)
(%)

Three Gorges Capital Holdings Co., Ltd.
(三峽資本控股有限責任公司)(6)
China Three Gorges Corporation
(中國長江三峽集團公司)(6)
China Huaneng Group Hong Kong
Limited (中國華能集團香港有限公司)(7)
China Huaneng Group
(中國華能集團公司)(7)
China Huadian Hong Kong Company
Limited (中國華電香港有限公司)(8)
China Huadian Corporation
(中國華電集團公司)(8)
Taiping General Insurance Co., Ltd.
(太平財產保險有限公司)(9)
China Taiping Insurance Holdings
Company Limited (中國太平保險控股
有限公司)(9)
China Taiping Insurance (HK) Company
Limited (中國太平保險集團（香港）
有限公司)(9)
China Taiping Insurance Group Ltd.
(中國太平保險集團有限責任公司)(9)
China Life Franklin Asset Management
Co., Limited (中國人壽富蘭克林資產管
理有限公司)(10)
China Life Asset Management
Company Limited (中國人壽資產管理
有限公司)(10)

H Shares
Beneficial owner
59,506,000
(Long position)
9.53
2.01
H Shares
Interest in controlled
corporation
59,506,000
(Long position)
9.53
2.01
H Shares
Beneficial owner
49,002,000
(Long position)
7.85
1.65
H Shares
Interest in controlled
corporation
49,002,000
(Long position)
7.85
1.65
H Shares
Beneficial owner
48,628,000
(Long position)
7.79
1.64
H Shares
Interest in controlled
corporation
48,628,000
(Long position)
7.79
1.64
H Shares
Beneficial owner
41,038,000
(Long position)
6.57
1.38
H Shares
Interest in controlled
corporation
41,038,000
(Long position)
6.57
1.38
H Shares
Interest in controlled
corporation
41,038,000
(Long position)
6.57
1.38
H Shares
Interest in controlled
corporation
41,038,000
(Long position)
6.57
1.38
H Shares
Beneficial owner
41,038,000
(Long position)
6.57
1.38
H Shares
Interest in controlled
corporation
41,038,000
(Long position)
6.57
1.38

2021 Interim Report 25

Changes in Share Capital and Shareholdings of Substantial Shareholders (Continued)

Name of Substantial Shareholder	As at 30 June 2021
	Class of Shares Capacity Number of Shares/ underlying Shares held or deemed to be held Approximate percentage of Shares/underlying Shares(1) Percentage in the total Shares(2) (Share) (%) (%)
China Life Insurance Company Limited (中國人壽保險股份有限公司)(10) China Life Insurance (Group) Company (中國人壽保險（集團）公司)(10)	H Shares Beneficial owner 20,519,000 (Long position) 3.29 0.69 Interest in controlled corporation 41,038,000 (Long position) 6.57 1.38 H Shares Beneficial owner 41,038,000 (Long position) 6.57 1.38 Interest in controlled corporation 20,519,000 (Long position) 3.29 0.69 Interest in controlled corporation 41,038,000 (Long position) 6.57 1.38

Notes：

(1) The calculation is based on the percentage of shareholding in a total of 2,343,245,800 Domestic Shares and a total of 624,296,200 H Shares respectively as at 30 June 2021.
(2) The calculation is based on the percentage of shareholding in a total of 2,967,542,000 Shares as at 30 June 2021.
(3) Anbang Investment Holdings Co., Limited is a wholly-owned subsidiary of Anbang Group Holdings Co. Limited. Anbang Group Holdings Co. Limited is a wholly-owned subsidiary of Dajia Life Insurance Co., Ltd., which is wholly-owned by Dajia Insurance Group Co., Ltd..
(4) China Chengtong Hong Kong Company Limited is a wholly-owned subsidiary of China Chengtong Holdings Group Ltd..
(5) State Grid International Development Limited is a wholly-owned subsidiary of State Grid Corporation of China.
(6) Three Gorges Capital Holdings Co., Ltd. is the wholly-owned subsidiary of China Three Gorges Corporation.
(7) China Huaneng Group Hong Kong Limited is a wholly-owned subsidiary of China Huaneng Group.
(8) China Huadian Hong Kong Company Limited is a wholly-owned subsidiary of China Huadian Corporation.

26 Datang Environment Industry Group Co., Ltd.

Changes in Share Capital and Shareholdings of Substantial Shareholders (Continued)

(9) Taiping General Insurance Co., Ltd. is a subsidiary of China Taiping Insurance Holdings Company Limited. China Taiping Insurance Holdings Company Limited is a subsidiary of China Taiping Insurance (HK) Company Limited, which is a wholly-owned subsidiary of China Taiping Insurance Group Ltd..
(10) China Life Asset Management Company Limited is a controlling shareholder of China Life Franklin Asset Management Co., Limited. China Life Asset Management Company Limited is a subsidiary of China Life Insurance Company Limited, which is controlled by China Life Insurance (Group) Company.

Save as disclosed above, as at 30 June 2021, to the best knowledge of the Directors, the Directors were not aware of any persons who had interests and/or short positions in the Shares or underlying Shares which would be required to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO and which were entered in the register required to be kept by the Company pursuant to section 336 of the SFO.

2021 Interim Report 27

Significant Events

I. COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE

During the Reporting Period, the Company complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules and did not conduct any acts which deviated from such provisions.

II. COMPLIANCE WITH THE MODEL CODE FOR DEALING IN THE SECURITIES OF THE COMPANY BY ITS DIRECTORS, SUPERVISORS AND RELEVANT EMPLOYEES

The Group has adopted the Model Code set out in Appendix 10 to the Listing Rules as the code of conduct for dealing in the securities of the Company by the Directors, Supervisors and relevant employees of the Company (as defined in the Model Code). According to the specific enquiries of the Directors and Supervisors, each Director and Supervisor confirmed that he/she had strictly complied with the standard set out in the Model Code during the Reporting Period.

III. DIVIDEND DISTRIBUTION PLAN FOR THE SIX MONTHS ENDED 30 JUNE 2021

According to the resolution of the Board passed on 20 August 2021, the Board did not recommend to distribute any interim dividend to Shareholders for the six months ended 30 June 2021.

IV. MATERIAL LITIGATION OR ARBITRATION EVENTS

In November 2016, Technologies & Engineering Company, a subsidiary of the Company, and two other third parties have entered into arrangement with Datang Xinjiang Clear Energy Co., Ltd. (“Datang Xinjiang”) to construct a wind farm on a land owned by Datang Xinjiang. As required by the arrangement, Technologies & Engineering Company purchased 33 wind turbines from Jiuding Tiandi Wind Power. In March 2017, Jiuding Tiandi Wind Power received a notice from Datang Xinjiang that the construction of the wind form may be suspended. After a series of negotiation between the parties, Jiuding Tiandi Wind Power brought an arbitration proceeding against Technologies & Engineering Company in December 2018. In June 2020, the arbitration authority ruled that Technologies & Engineering Company shall compensate Jiuding Tiandi Wind Power for economic losses in an aggregate amount of RMB98,865,000 (the “Ruling”). In June 2020, Technologies & Engineering Company submitted application to the Fourth Intermediate People’s Court of Beijing (the “Court”) to overrule the Ruling. In September 2020, the Court rejected the application of Technologies & Engineering Company to overrule the Ruling. Subsequently, Technologies & Engineering Company and Jiuding Tiandi Wind Power reached an agreement regarding the above compensation amount.

28 Datang Environment Industry Group Co., Ltd.

Significant Events (Continued)

Save as disclosed above, as at 30 June 2021, the Group was not involved in any material litigation or arbitration event. So far as the Directors are aware, no such litigation or claims are pending or threatened against the Group.

V. CHANGES IN ACCOUNTING POLICIES

There was no change in accounting policies of the Group during the Reporting Period, except for the adoption of the revised accounting standards effective as of 1 January 2021. For details, please refer to Note 2.2 to the interim condensed consolidated financial information in this interim report.

VI. PUBLIC FLOAT

Based on information publicly available to the Company and so far as the Directors are aware, not less than 20% of the issued share capital of the Company was held by the public as at the date of this interim report, which was in compliance with the requirements and public float waiver approved by the Stock Exchange under the Listing Rules. For details of the public float waiver, please refer to the section headed “Waivers from Strict Compliance with the Listing Rules” in the Prospectus.

VII. MATERIAL CONTRACTS

During the Reporting Period, none of the Company or any of its subsidiaries entered into material contracts with the Controlling Shareholder or any of its subsidiaries other than the Group, nor was there any material contract between the Group and the Controlling Shareholder or any of its subsidiaries other than the Group in relation to provision of services.

VIII. REPURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY

For the six months ended 30 June 2021, neither the Company nor any of its subsidiaries has repurchased, sold or redeemed any of the Company’s listed securities.

IX. RESERVES

Details of the changes in reserves of the Group during the Reporting Period are set out in the interim condensed consolidated statement of changes in equity.

2021 Interim Report 29

Significant Events (Continued)

X. USE OF NET PROCEEDS FROM INITIAL PUBLIC OFFERING

The Company has been listed on the Main Board of the Stock Exchange since 15 November 2016. The net proceeds from the initial public offering and partial exercise of the overallotment option, after deducting the underwriting fees and relevant expenses, amounted to approximately HK$2,032.3 million, which will be used in the ways stated in the section headed “Future Plans and Use of Proceeds” of the Prospectus.

The use of net proceeds from the initial public offering for the six months ended 30 June 2021 is set out as follows:

	Use of net	Actual use of	Unutilised	Expected
	proceeds as	net proceeds	net proceeds	time of full
	disclosed in the	up to 30 June	up to 30 June	utilization
	Prospectus	2021	2021	of remaining
	(HK$ million)	(HK$ million)	(HK$ million)
To finance the capital expenditures for
expanding the desulfurization and
denitrification concession operations	1,219.50	1,219.50	0.00	–
To develop new sources of growth in
the revenue and profit, including but
not limited to EMC business for coal-
fired power plants, water treatment
business, and providing customers
with overall solution plans of ultra-
low emissions	304.80	304.80	0.00	–
To repay some of the existing bank
loans in order to lower the finance
costs and improve the financial
leverage ratio	203.20	203.20	0.00	–
For working capital and other general
corporate purposes	203.20	203.20	0.00	–
For research and development
expenditures	101.60	42.76	58.84	December 2022
Total	2,032.30	1,973.46	58.84

30 Datang Environment Industry Group Co., Ltd.

Significant Events (Continued)

XI. ASSET TRANSACTIONS

During the Reporting Period, the Group had no significant assets transactions other than those in the ordinary and usual course of business.

XII. INSOLVENCY AND RESTRUCTURING

During the Reporting Period, the Group was not involved in any insolvency or restructuring matters.

XIII. SIGNIFICANT TRUSTEESHIP, CONTRACTING AND LEASE

During the Reporting Period, the Group was not involved in significant trusteeship, contracting or lease of any other company’s assets, nor placing its assets to or under any other companies’ trusteeship, contracting or lease which would require disclosure.

XIV. MATERIAL ACQUISITIONS AND DISPOSALS

For the six months ended 30 June 2021, the Group had no material acquisition or disposal.

XV. SIGNIFICANT INVESTMENT AND FUTURE PLANS FOR MAJOR INVESTMENTS

For the six months ended 30 June 2021, the Group did not hold any significant investment and has not executed any agreement in respect of material acquisitions, investments or capital asset and did not have any other future plans relating to material acquisitions, investments or capital asset as at the Latest Practicable Date. Nonetheless, if any potential investment opportunity arises in the coming future, the Group will perform feasibility studies and prepare implementation plans to consider whether it is beneficial to the Group and the shareholders of the Company as a whole.

XVI. FINANCIAL INSTRUMENTS FOR HEDGING PURPOSES

During the Reporting Period, the Group had not used any financial instruments for hedging purposes.

XVII. CHARGED AND PLEDGED ASSETS

The details of charged and pledged assets of the Group as at 30 June 2021 are set out in Note 17 to the interim condensed consolidated financial information in this interim report.

2021 Interim Report 31

Significant Events (Continued)

XVIII. BANK BORROWINGS AND OTHER LOANS

The details of bank borrowings and other loans of the Group as at 30 June 2021 are set out in Note 17 to the interim condensed consolidated financial information in this interim report.

XIX. CONTINGENT LIABILITIES

As at 30 June 2021, the Group had no material contingent liabilities.

XX. C H A N G E S T O B I O G R A P H I C A L D E T A I L S O F D I R E C T O R S, SUPERVISORS AND CHIEF EXECUTIVES UNDER RULE 13.51B(1) OF THE LISTING RULES

With effect from January 2021, Mr. Chen Li resigned as employee representative Supervisor, while Ms. Luo Li served as employee representative Supervisor from January 2021.

With effect from June 2021, Mr. Qu Bo resigned as chairman of the Board and continued to serve as non-executive Director. Mr. Wang Yanwen served as chairman of the Board and executive Director and resigned as general manager of the Company. Mr. Tian Dan was re-designated as general manager of the Company from deputy general manager of the Company. Mr. Bu Baosheng and Mr. Wang Haijie resigned as the deputy general managers of the Company.

With effect from September 2021, Mr. Qu Bo, Mr. Liu Quancheng, Mr. Liu Ruixiang and Mr. Li Zhenyu retired from the positions of Directors, and Ms. Huo Yuxia and Mr. Liu Liming retired from the positions of Supervisors. Mr. Wang Junqi, Mr. Wu Daqing and Mr. Chen Kan served as the non-executive Directors, Mr. Huang Yuan served as the Supervisor and the chairman of the Supervisory Committee, and Mr. Zhang Xuefeng served as the Supervisor.

Save as disclosed above, there are no other changes to the biographical details of the Directors, Supervisors and chief executives of the Company which is required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules.

XXI. REVIEW OF INTERIM REPORT

The audit committee of the Company (the “Audit Committee”) has reviewed the unaudited interim condensed consolidated financial statements and the interim report of the Group for the six months ended 30 June 2021.

Datang Environment Industry Group Co., Ltd.

Significant Events (Continued)

XXII. IMPORTANT SUBSEQUENT EVENTS AFTER THE REPORTING PERIOD

There was no other important subsequent event affecting the Group which has taken place after the Reporting Period and up to the Latest Practicable Date.

XXIII. OTHER IMPORTANT MATTERS

During the Reporting Period, none of the Company, the Directors or the Supervisors was punished by administrative means or criticized through circular by the SFC or publicly condemned by the Stock Exchange.

2021 Interim Report 33

Profile of Directors, Supervisors and Senior Management

I. EXECUTIVE DIRECTORS

Mr. Wang Yanwen (王彥文)

born in November 1964, is the chairman of the Board, executive Director, secretary of the Party Committee and the authorized representative of the Company. He holds a bachelor’s degree, and is a senior engineer and a member of the Communist Party of China. Mr. Wang successively served as an electrical technician of the engineering department, the head of the microwave office, specialized engineer and deputy director of the communication branch, as well as director of the communication engineering office of the repair and maintenance engineering division, the Party branch secretary of the heating ventilation department and head of the fuel management department of Shuangyashan Power Plant (雙鴨山發電廠); head of the general office of Heilongjiang Power Fuel Corporation (黑龍江省電力燃料總公司); head of the Heilongjiang transportation office of Datang Power Fuel Co., Ltd. (大唐電力燃料有限公司); deputy director of the fuel management center of Datang Heilongjiang Power Generation Co., Ltd. (大唐黑龍江發電有限公司) and deputy general manager of Datang Heilongjiang Power Fuel Co., Ltd. (大唐黑龍江電力燃料有限公司); director of the fuel management center of Datang Heilongjiang Power Generation Co., Ltd. and general manager of Datang Heilongjiang Power Fuel Co., Ltd.; vice chief economist and director of the fuel management center of Datang Heilongjiang Power Generation Co., Ltd., and general manager of Datang Heilongjiang Power Fuel Co., Ltd; vice chief economist, and director of the ideological and political department as well as deputy secretary of the Party Committee directly administered and director of the labor union office of Datang Heilongjiang Power Generation Co., Ltd.; a member of Party Committee, head of the discipline inspection committee and the chairman of the labor union of Datang Jilin Power Generation Co., Ltd. (大唐吉林發電有限公司); deputy director of the fuel management department of China Datang; secretary of the Party Committee, deputy general manager, chairman and secretary of the Party Committee of Datang Power Fuel Co., Ltd.; the secretary of the Party Committee and deputy general manager of the Company; the general manager and deputy secretary of the Party Committee of the Company.

34 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Tian Dan (田丹)

born in March 1965, is an executive Director, general manager and deputy secretary of the Party Committee of the Company. He holds a bachelor’s degree and is a member of the Communist Party of China and a principal senior engineer. Mr. Tian successively served as a shift supervisor and technician of the Shanxi Shentou No. 2 Power Plant (山西神頭第二發電廠); an engineer at the Thermal Power Simulation Training Center of Shanxi Electric Power Company (山西省電力公司); an engineer of the Engineering and Technology Department, manager of the Production Preparation Department, manager of the Power Generation Department, deputy chief engineer and deputy general manager of Yangcheng International Power Generation Co., Ltd. (陽城國際發電有限責任公司); the deputy general manager of Yangcheng International Power Generation Co., Ltd. and Datang Yangcheng Power Generation Co., Ltd. (大唐陽城發電有限責任公司); the secretary of the Party Committee and the deputy general manager of Yangcheng International Power Generation Co., Ltd. and the deputy general manager of Datang Yangcheng Power Generation Co., Ltd.; the general manager and the secretary of the Party Committee of Yangcheng International Power Generation Co., Ltd. and the general manager of Datang Yangcheng Power Generation Co. Ltd.; the secretary of the Party Leadership Group and the deputy general manager of the Chongqing Branch of Datang International Power Generation Co., Ltd. (大唐國際發電股份有限公司重慶分公司) and the secretary of Communist Party Committee and the deputy general manager of Chongqing Yuneng (Group) Co., Ltd. (重慶渝能（集團）有限責任公司); the secretary of the Party Leadership Group and the general manager of Chongqing Branch of Datang International Power Generation Co., Ltd., the general manager and the deputy secretary of the Party Committee of Chongqing Yuneng Industry (Group) Co., Ltd. (重慶渝能產業（集團）有限責任公司); the general manager and the deputy secretary of the Communist Party Committee, the chairman and the secretary of the Communist Party Committee of the Ningxia Branch of China Datang (中國大唐寧夏分公司); the director of the Ningxia Planning and Development Center of China Datang (中國大唐集團寧夏規劃發展中心); the chairman and secretary of the Party Committee of Xiongan Energy Co., Ltd. of China Datang (中國大唐集團雄安能源有限公司); an executive Director, the secretary of the Party Committee and deputy general manager of the Company; an executive Director, the general manager and the deputy secretary of the Party Committee of the Company.

2021 Interim Report 35

Profile of Directors, Supervisors and Senior Management (Continued)

II. NON-EXECUTIVE DIRECTORS

Mr. Wang Junqi (王俊啟)

born in September 1968, is a non-executive Director. He holds a bachelor’s degree, and is a principal senior engineer and a member of the Communist Party of China. Mr. Wang successively served as a technician of the ontology team of the steam turbine maintenance branch of Pingdingshan Yaomeng Power Plant; a technician in the maintenance department, and steam turbine engineer in the production department of Sanmenxia Thermal Power Plant; deputy director, deputy chief engineer and deputy director of production department, deputy chief engineer, chief engineer, deputy general manager and chief engineer, and a member of Party Committee of Sanmenxia Huayang Power Generation Co., Ltd.; deputy general manager and chief engineer of Datang Sanmenxia Power Generation Co., Ltd.; the secretary of the Party Committee of Datang Luoyang Thermal Power Plant; a Party member, deputy general manager, discipline inspection team leader and chairman of the trade union of Datang Xinjiang Power Generation Co., Ltd.; general manager of Datang Hutubi Energy Development Co., Ltd.; secretary of the Party Committee and deputy general manager of Datang Xinjiang Power Generation Co., Ltd.; the general manager and deputy secretary of the Party Committee of Shanxi Branch of China Datang; the general manager and deputy secretary of the Party Committee of Datang Shanxi Power Generation Co., Ltd.; chairman and secretary of the Party Committee of Datang Henan Power Generation Co., Ltd.; a full-time director of China Datang. He concurrently serves as a director of China Datang Group Energy Investment Co., Ltd., and director of Datang Huayin (a company listed on the Shanghai Stock Exchange, stock code: 600744).

36 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Wu Daqing (吳大慶)

born in June 1964, is a non-executive Director. He holds a bachelor’s degree, and is a principal senior economist and a member of the Communist Party of China. Mr. Wu successively served as a reporter editor, deputy director member, and director member of the Editorial Department of China Electric Power Newspaper Office; manager of Beijing Zhongdianxing Art Development Company; manager and director of Exhibition Office of Beijing Zhongdianxing Art Development Company; deputy director of Ideological and Political Work Department of China Datang Corporation Ltd.; secretary of the Party Leadership Group and dean of China Datang Corporation Institute of Technology and Economics; dean and secretary of the Party Leadership Group of the Cadre Training Institute of China Datang Corporation; director of the School Affairs Department of the Party School of the CPC China Datang Corporation; director of the Party School of the CPC China Datang Corporation; deputy secretary of the Direct Committee of the CPC China Datang Corporation; director of the Political Work Department and director of the News Center of China Datang Corporation; general manager, deputy secretary of the Party Leadership Group, chairman and secretary of the Party Committee of Datang Hebei Power Generation Co., Ltd.; leader of the Party Group Inspection Team of China Datang; a full-time director of China Datang. He concurrently serves as a director of China Datang Corporation Energy Investment Co., Ltd..

2021 Interim Report 37

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Chen Kan (陳侃)

born in December 1964, is a non-executive Director. He holds a post-graduate degree, and is a principal senior economist and a member of the Communist Party of China. Mr. Chen successively served as an assistant teacher in Water Resources Teaching and Research Office of Wuhan College of Water Resources and Hydroelectric Engineering; economist, section chief, deputy director and director of the Operation Management Office of Guangxi Yantan Hydropower Project Construction Company; director, deputy general manager of Planning Contract Department of Longtan Hydropower Development Co., Ltd.; a member of Party Leadership Group and deputy general manager of Longtan Hydropower Development Co., Ltd.; director and deputy general manager (shareholding) of Jinsha River Midstream Hydropower Development Co., Ltd.; director of Guanyinyan Hydropower Project Preparation Office of China Datang Corporation; general manager of Datang Guanyinyan Hydropower Development Co., Ltd.; deputy secretary of the Party Leadership Group and deputy general manager of Yunnan Branch of China Datang Corporation; general manager and secretary of the Party Committee of Datang Guanyinyan Hydropower Development Co., Ltd.; secretary of the Party Leadership Group and general manager of Yunnan Branch of China Datang Corporation; general manager and deputy secretary of the Party Leadership Group of Yunnan Branch of China Datang Corporation; deputy chief engineer of Datang International Power Generation Co., Ltd. and general manager and deputy secretary of the Party Committee of Inner Mongolia Branch of Datang International Power Generation Co., Ltd.; chairman and secretary of the Party Committee of Inner Mongolia Branch of China Datang; deputy chief engineer of Datang International Power Generation Co., Ltd.; director of Inner Mongolia Planning and Development Center of China Datang; deputy director of Southern Business Department of China Datang; a full-time director of China Datang. He concurrently serves as a director of China Datang Corporation Energy Investment Co., Ltd..

38 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

III. INDEPENDENT NON-EXECUTIVE DIRECTORS

Mr. Ye Xiang (叶翔)

born in January 1964, is an independent non-executive Director. He holds a Doctor’s degree and is a chartered financial analyst. Mr. Ye has successively served as an economist of the People’s Bank of China, a senior analyst at the Hong Kong Monetary Authority (香港金融管理局), the executive director of Bank of China International Holdings Limited (中銀國際控股有限公司), the director of China Affairs of the SFC, an independent director of UBS Securities LLC (瑞銀證券有限責任公司), a member of the Public Shareholders Group of the SFC and the managing director of Vision Gain Capital limited (匯信資本有限公司). He concurrently serves as an independent non-executive director of Wuling Motors Holdings Limited (五菱汽車集團控股有限公司) (a company listed on the Stock Exchange, stock code: 0305), an independent director of Digital China Group Co., Ltd. (神州數碼集團股份有限公司) (a company listed on the Shenzhen Stock Exchange, stock code: 000034), an independent non-executive director of 51 Credit Card Inc. (51信用卡有限公司) (a company listed on the Stock Exchange, stock code: 2051), and an independent non-executive director of Jinshang Bank Co., Ltd. (晉商銀行股份有限公司) (a company listed on the Stock Exchange, stock code: 2558).

2021 Interim Report 39

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Mao Zhuanjian (毛專建)

born in June 1953, is an independent non-executive Director. He has a bachelor’s degree, and is a professor-level senior engineer, a core professional of China Electricity Council (“CEC”), and expert of environmental protection and energy conservation professionals for the power industry (電力行業環保節能專家庫專家), and a member of the Communist Party of China. Mr. Mao successively served as the engineer and director member head of the environmental protection office of the planning department of the Ministry of Water and Power Industry (國家水電部); the deputy head and senior engineer of the Environmental Protection and Management Division (環境保護管理處) under the environmental protection center for CEC (中國電力企業聯合會環境保護中心); deputy director of the Ministry of Electric Power, State Grid Corporation of China and the CEC General Office, director and consulting engineer of the technical consulting office; the manager of environmental protection division and the manager of climate change response division of the industry development and the environment and resources department under the CEC; the vice secretary for the National Collaborative Network for Desulfurization and Denitrification Technologies for the Power Industry (全國電力行業脫硫脫硝技術協作網); the deputy secretary and deputy secretary general for the energy conservation and environmental protection sub-division under the CEC; an senior expert of the energy conservation and environmental protection sub-division under the CEC; a member of the energy and environment professional committee of China Energy Research Association; a member of the electric power environmental protection committee of the Chinese Society of Electrical Engineering; a member of the low-carbon economy working committee of the CAPEC (中國設備監理協會).

40 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Gao Jiaxiang (高家祥)

born in January 1974, is an independent non-executive Director. He holds a post-graduate degree. He is a certified public accountant and certified tax agent. Mr. Gao successively served as an audit manager at Xinxiang Juzhongyuan Certified Public Accountants (新鄉巨中元會計師事務所有限責任公司); the manager of audit department at the Beijing branch of Nanfang Minhe Certified Public Accountants; the department manager at Beijing Zhonghe Dingxin Certified Public Accountants (北京中和鼎信會計師事務所); the department manager at Beijing Tianyuanquan Certified Public Accountants (北京天圓全會計師事務所); the chief financial officer of Beijing Guanshi Foundation International Investment Management Company Limited (北京管氏基業國際投資管理有限公司); the chief accountant of Risun Chemical Co., Ltd. (旭陽化工有限公司); an executive director and the general manager of Beijing Huamai Huizhong Technology Co., Ltd. (北京華麥惠眾科技有限公司).

2021 Interim Report 41

Profile of Directors, Supervisors and Senior Management (Continued)

IV. SUPERVISORS

Mr. Huang Yuan (黃源)

born in June 1972, is the chairman of the Supervisory Committee, deputy secretary of the Party Committee and chairman of the labor union. He holds a post-graduate degree, and is a member of the Communist Party of China and a senior political engineer. Mr. Huang successively served as assistant editor and reporter of News Department, editor and reporter of Special Edition Department, editor and reporter of the Agriculture and Electricity Department, editor, reporter and vice chairman of the labour union, secretary to the president, and vice chairman of the labour union of China Electric Power Newspaper Office; second-level staff, deputy director and director of Publicity Division of Ideological and Political Work Department, director of Publicity Division of the Political Work Department, deputy director of News Center, deputy director of News Center of China Datang Corporation, and director of Preparation Group for Datang Culture Media Co., Ltd.; general manager, deputy secretary of the Party Committee of China Datang Group Culture Media Co., Ltd. and deputy director of the News Center of China Datang; deputy director of the News Center of China Datang; the deputy secretary of the Party Committee of the Company, the deputy secretary of the Party Committee and chairman of the trade union.

Mr. Zhang Xuefeng (張學峰)

born in September 1968, holds a bachelor’s degree, and is a principal senior accountant and a member of the Communist Party of China. He successively served as an intern in the Education Division and other divisions of Chifeng Thermal Power Plant; an accountant in the Finance Division, a cashier of Finance Division, general ledger statements and cost accountant, and chief accountant of Hongshan Power Plant; deputy director of Finance Division of Chifeng Thermal Power Plant; director of Finance Division of Donglong Industrial Co., Ltd.; manager of Finance Division of Auxiliary Industry Company; director of Finance Division of Datang Chifeng Saihanba Wind Power Co., Ltd.; deputy chief accountant and director of Finance Division of Datang Chifeng Saihanba Wind Power Co., Ltd.; chief accountant, chief accountant and director of Finance and Property Management Department, deputy chief accountant and director of Finance and Property Management Department of China Datang Corporation Renewable Power Co., Ltd.; chief accountant, member of the Party Leadership Group, chief accountant and member of the Party Committee of Datang Guizhou Power Generation Co., Ltd.; chief accountant and member of the Party Committee of China Datang Corporation Energy Investment Co., Ltd.; a full-time supervisor of China Datang Corporation Ltd. He concurrently serves as a supervisor of Zhongxin Energy and Chemical Technology Company Limited.

42 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

Ms. Luo Li (羅莉)

born in August 1971, is an employee representative Supervisor. She holds a bachelor’s degree, and is a member of the Communist Party of China and a senior political engineer. Ms. Luo had previously served as: publicity officer of the Party Office of China Hydropower Second Bureau Construction Branch (中國水電二局建築分局), officer of the Party Office, deputy secretary and secretary of Communist Youth League of China Water Resources and Hydropower Second Engineering Bureau (中國水利水電第二工程局), assistant director, deputy director (in charge of work), and director of the Supervision and Audit Department (Department of Ideological and Political Work) of Datang Environmental Technology Engineering Co., Ltd. (大唐環境科技工程有限公司), director of the Supervision and Audit Department (Department of Ideological and Political Work) of China Datang Group Environmental Technology Co., Ltd. (中國大唐集團環境技術有限公司), director of the Supervision and Audit Department (Ideological and Political Work Department) and secretary of the Party Committee of the Environmental Protection Branch of Datang Technology Industry Group Co., Ltd. (大唐科技產業集團有限公司), secretary of the Party Committee of the Environmental Protection Branch of the Company and secretary of the Party Branch of Datang Electric Power Design and Research Institute (大唐電力設計研究院), secretary of the Party Committee of Environmental Protection Branch, party secretary, vice president, principal of the Discipline Inspection Commission Office of Datang Electric Power Design and Research Institute (大唐電力設計研究院).

2021 Interim Report 43

Profile of Directors, Supervisors and Senior Management (Continued)

V. SENIOR MANAGEMENT

Mr. Chen Song (陳崧)

born in May 1968, has been serving as the chief accountant and a member of the Party Committee of the Company since July 2019. Mr. Chen has nearly 30 years of experience in power industry. Prior to joining the Company, Mr. Chen consecutively served as an accountant of financial department of North China Power Institute (華北電力設計院) from July 1991 to January 1993, an accountant of North China Power Group Co., Ltd. (華北電力集團公司) from January 1993 to January 1998, senior head of financial department, vice director of the funds division and director of property funds division of the financial department of Beijing Datang Power Generation Company Limited (北京大唐發電股份有限公司) from January 1998 to December 2004, plant manager assistant, deputy plant manager and concurrently chief accountant of Beijing Gao Jing Thermal Power Plant (北京高井熱電廠) from December 2004 to December 2006, vice manager, vice general manager and vice director of the financial department of Datang International Power Co., Ltd. (大唐國際發電股份有限公司) from December 2006 to November 2009, general manager and director of phase II construction preparation department of Yunnan Datang International Honghe Power Generation Company Limited (雲南大唐國際紅河發電有限責任公司) from November 2009 to December 2012, director of the financial department of Datang International Power Co., Ltd. from December 2012 to December 2013, and chief accountant and a Party Committee member of Datang Renewable from December 2013 to July 2019. Mr. Chen graduated from Xiamen University (廈門大學) with a bachelor’s degree of economics in accounting in July 1991. He obtained the qualification as a senior accountant in December 2002.

44 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Liu Chundong (劉春東)

born in February 1970, a member of the Communist Party of China, a senior engineer. Mr. Liu has been serving as the deputy general manager of the Company since July 2020. Mr. Liu has nearly 30 years of extensive experience in the power industry. Prior to joining the Company, Mr. Liu served successively as a watch of operation, chief watch of operation, deputy shift leader, specialist engineer in operation, specialist engineer in electric operation and maintenance of the Production Technology Department, shift supervisor of the Production Technology Department, the director (maintenance) of the Electrical Branch of Tongliao Power Generation Plant (通遼發電總廠發電分廠) from July 1991 to January 2005. He served as a senior engineering supervisor of the Power Generation Management Department of CPI Holingol Coal (中電霍煤發電管理部) from January 2005 to May 2008. He served as deputy director of the Safety Division and Engineering Department of the Power Generation Department of CPI East Inner Mongolia Energy (中電投蒙東能源發電事業部安全生產與工程部) and the deputy director of the Tender and Bid Management Center of CPI East Inner Mongolia Energy Co., Ltd. (中電投蒙東能源集團公司招標管理中心) from May 2008 to February 2011. He served as the deputy president of Datang Renewable Power Maintenance Co., Ltd. (大唐新能源電力檢修有限公司) as well as the deputy general manager of Beijing Tanghao Electricity Engineering Technology Research Co., Ltd. (北京唐浩電力工程技術研究有限公司) from February 2011 to January 2012. He served successively as the deputy director (in charge) of the Science and Information Department and the director of President Office Department (International Cooperation Department, Policy and Law Department) of Datang Renewable from January 2012 to October 2015. He served as the dean of Datang Renewable Energy Test and Research Institute (大唐新能源試驗研究院) from October 2015 to December 2016, and the chief engineer of Datang Renewable from December 2016 to December 2017. He served as the deputy general manager and member of the Party Committee of China Datang Group Overseas Investment Co., Ltd. (中國大唐集團海外投資有限公司) from December 2017 to May 2018. He served as the deputy general manager and member of the Party Committee of China Datang Group Overseas Investment Co., Ltd. as well as the director of the Preparatory Office of China Datang Group Africa Co., Ltd. (中國大唐集團非洲公司) from May 2018 to March 2019. He served as the associate dean and member of the Party Committee of China Datang Corporation Renewable Power Science and Technology Research Institute Co., Ltd. (中國大唐集團新能源科學技術研究院有限公司) from March 2019 to June 2020. Mr. Liu studied in Harbin Institute of Technology from July 1987 to July 1991, obtained his bachelor’s degree majoring in electric power system and automation.

2021 Interim Report 45

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Zhou Ce (周策)

born in September 1969, has been serving as a member of the Party Committee, the secretary of the Discipline Inspection Committee and chairman of the labor union of the Company since March 2020. Mr. Zhou possessed approximately 19 years of work experience in the power industry. Before joining the Company, Mr. Zhou worked as an intern, technician and assistant engineer in the power workshop of Shandong Heze Second Woolen Textile Factory (山東菏澤第二毛紡織廠) from July 1991 to March 1993. He served as the deputy manager of Shandong Heze Modern Office Equipment Company (山東菏澤現代辦公設備公司) from March 1993 to June 1995. Mr. Zhou served as the secretary, judge of the fourth rank, judge of the third rank and chief judge of Shandong Heze Intermediate People’s Court (山東菏澤中級人民法院) from June 1995 to September 2000. He studied for master of law (international economic law) in China University of Political Science and Law (中國政法大學) from September 2000 to August 2003. He served as the fourth-class employee of economy and law department of State Grid Corporation of China (國家電網公司) from August 2003 to December 2006. Mr. Zhou served as the deputy director and director of economy and law department of State Grid Corporation of China from December 2006 to June 2013. He served as the head of integrated administrative team, head of Party Committee working group, director of office and director of legal office of State Grid Integrated Energy Service Group Co, Ltd. (國網節能服務有限公司) from June 2013 to August 2017. Mr. Zhou served as the deputy director of corporate management and legal affairs department, the deputy director of monitoring division (the office of disciplinary team of the Communist Party Committee and inspection office) and the deputy director of inspection office of the Communist Party Committee of China Datang from August 2017 to March 2020. Mr. Zhou studied in Shandong University (山東大學) with the major of Law from December 1997 to June 2002 and obtained the university degree. Mr. Zhou obtained master’s degree in law of China University of Political Science and Law in August 2003.

46 Datang Environment Industry Group Co., Ltd.

Profile of Directors, Supervisors and Senior Management (Continued)

Mr. Liang Xiuguang (梁秀廣)

born in January 1979, has been serving as secretary of the Board, joint company secretary and authorized representative of the Company since November 2020 and deputy general manager of the Company since March 2018. He is responsible for materials management and market development of the Company. He has nearly 20 years of experience in power industry. Before joining the Company, Mr. Liang worked for Shandong Huangdao Electric Power Plant (山東黃島發電廠) from July 2000 to September 2009, served successively as boiler operator, secretary of the general office, deputy director of the general office and director of the politics department. When serving for Datang Shandong Renewable Energy Co., Ltd. (大唐山東新能源有限公司) from September 2009 to March 2012, Mr. Liang acted successively as head of the general office, deputy chief economist, deputy general manager and member of Party Committee. He served concurrently as deputy general manager of Datang Shandong Clean Energy Development Co., Ltd. (大唐山東清潔能源開發有限公司) from November 2010 to March 2012, and acted as deputy general manager and member of Party Committee of Datang Shandong Clean Energy Development Co., Ltd. from March 2012 to March 2013. From March 2013 to November 2013, Mr. Liang worked for Shenyang Huachuang Wind Power Co., Ltd. (瀋陽華創風能有限公司) as member of Party Committee and deputy general manager. He served successively as deputy general manager of the automation department, deputy director of materials management department (in charge of overall operation) and director of materials management department of the Company from November 2013 to January 2017. From January 2017 to March 2018, Mr. Liang acted as general manager and member of Party Committee of Technology & Engineering Company. Mr. Liang graduated from the Power Faculty of Shandong Electric Power College (山東省電力高等專科學校) in July 2000, with major in thermal power, and took undergraduate courses on thermal energy and power engineering from the School of Continuing Education of Harbin Institute of Technology (哈爾濱工業大學) from March 2010 to July 2012. Subsequently, he obtained a master’s degree in engineering from Xi’an University (西安電子科技大學) in June 2017. Mr. Liang was granted the qualification of senior administration engineer by China Datang in December 2016.

2021 Interim Report 47

Independent Review Report

Ernst & Young 安永會計師事務所 Tel 電話 : +852 2846 9888 27/F, One Taikoo Place 香港鰂魚涌英皇道979號 Fax 傳真 : +852 2868 4432 979 King’s Road 太古坊一座27樓 ey.com Quarry Bay, Hong Kong

To the board of directors of Datang Environment Industry Group Co., Ltd. (Incorporated in the People’s Republic of China with limited liability)

INTRODUCTION

We have reviewed the interim financial information set out on pages 49 to 90, which comprises the condensed consolidated statement of financial position of Datang Environment Industry Group Co., Ltd. (the “Company”) and its subsidiaries (the “Group”) as at 30 June 2021 and the related condensed consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and International Accounting Standard 34 Interim Financial Reporting (“IAS 34”) issued by the International Accounting Standards Board. The directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34. Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

SCOPE OF REVIEW

We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Hong Kong Institute of Certified Public Accountants. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with IAS 34.

Ernst & Young Certified Public Accountants

Hong Kong 20 August 2021

Datang Environment Industry Group Co., Ltd.

Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

Notes	2021	2020 Unaudited RMB’000
	Unaudited
	RMB’000
Revenue 4 Cost of sales Gross profit Selling and distribution expenses Administrative expenses Other income and losses 5 Other expenses 6 Finance costs 7 Impairment losses on financial and contract assets, net Profit before tax Income tax expense 8 PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Exchange differences on translation of foreign operations Net other comprehensive income that may be reclassified to profit or loss in subsequent periods		2,867,941 (2,443,412)
	2,196,597
	(1,798,319)
		424,529 (10,046) (193,474) 56,614 (98,865) (137,170) (8,394)
	398,278

	(10,023)
	(220,839)
	56,019
	–
	(111,960)
	(9,502)
		33,194 (29,005)
	101,973

	(35,548)
		4,189
	66,425
		(736)



	2,029
		(736)
	2,029

2021 Interim Report 49

Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

Notes	2021	2020 Unaudited RMB’000
	Unaudited
	RMB’000
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: Equity investments designated at fair value through other comprehensive income: Changes in fair value Income tax effect Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX Profit attributable to: Owners of the parent Non-controlling interests Total comprehensive income attributable to: Owners of the parent Non-controlling interests EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT Basic and diluted (RMB) 10		1,730 (260)


	(4,748)
	712
		1,470
	(4,036)
		734
	(2,007)
		4,923
	64,418
		50,299 (46,110)

	86,645
	(20,220)
		4,189
	66,425
		51,357 (46,434)

	83,745
	(19,327)
		4,923
	64,418
		0.02

	0.03

50 Datang Environment Industry Group Co., Ltd.

Interim Condensed Consolidated Statement of Financial Position

As at 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

Notes	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
NON-CURRENT ASSETS Property, plant and equipment 11 Right-of-use assets Intangible assets Equity investments designated at fair value through other comprehensive income Deferred tax assets Other non-current assets Total non-current assets CURRENT ASSETS Inventories Trade, bills receivables and contract assets 12 Prepayments, other receivables and other assets 13 Restricted cash 14 Cash and cash equivalents 14 Total current assets CURRENT LIABILITIES Trade and bills payables 15 Other payables and accruals Provisions 16 Interest-bearing bank borrowings and other loans 17 Income tax payable Total current liabilities	7,044,278 7,294,595 316,916 329,146 250,799 273,478 24,166 28,914 47,623 46,191 399,857 429,632
	8,083,639 8,401,956
	226,394 190,609 9,268,697 9,363,850 637,906 624,977 48,065 67,727 671,280 1,531,739
	10,852,342 11,778,902
	4,814,797 4,904,475 1,595,341 1,789,559 6,405 6,320 2,833,504 3,192,305 5,615 34,945
	9,255,662 9,927,604

2021 Interim Report 51

Interim Condensed Consolidated Statement of Financial Position (Continued)

As at 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

Notes	30 June	31 December 2020 Audited RMB’000
	2021
	Unaudited
	RMB’000
NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions 16 Interest-bearing bank borrowings and other loans 17 Other non-current liabilities Total non-current liabilities Net assets EQUITY Equity attributable to owners of the parent Share capital Reserves Non-controlling interests Total equity		1,851,298
	1,596,680
		10,253,254
	9,680,319
		1,000 2,878,584 34,392

	655
	2,381,323
	33,997
		2,913,976
	2,415,975
		7,339,278
	7,264,344
		2,967,542 4,250,117


	2,967,542
	4,201,510
		7,217,659 121,619
	7,169,052
	95,292
		7,339,278
	7,264,344

Wang Yanwen Director

Tian Dan General Manager

52 Datang Environment Industry Group Co., Ltd.

Interim Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

	Attributable to owners of the parent Share capital Capital reserve Statutory surplus reserve Fair value reserve of financial assets at fair value through other comprehensive income Exchange fluctuation reserve Retained profits* Total Non- controlling interests Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
At 31 December 2020 (audited) Profit for the period Other comprehensive income for the period: Change in fair value of equity investments at fair value through other comprehensive income, net of tax Exchange difference on translation of foreign operations Total comprehensive income for the period Final 2020 dividends declared (Note 9) Dividends declared by a subsidiary to its non-controlling interests At 30 June 2021 (unaudited) At 31 December 2019 (audited) Profit for the period Other comprehensive income for the period: Change in fair value of equity investments at fair value through other comprehensive income, net of tax Exchange difference on translation of foreign operations Total comprehensive income for the period Final 2019 dividends declared (Note 9) Dividends paid by a subsidiary to its non-controlling interests At 30 June 2020 (unaudited)
	2,967,542 1,315,483 406,481 3,327 (627) 2,525,453 7,217,659 121,619 7,339,278
	– – – – – 86,645 86,645 (20,220) 66,425

	– – – (4,036) – – (4,036) – (4,036)
	– – – – 1,136 – 1,136 893 2,029

	– – – (4,036) 1,136 86,645 83,745 (19,327) 64,418
	– – – – – (132,352) (132,352) – (132,352)
	– – – – – – – (7,000) (7,000)

	2,967,542 1,315,483 406,481 (709) 509 2,479,746 7,169,052 95,292 7,264,344
	2,967,542 1,315,483 368,312 2,260 (7) 2,361,053 7,014,643 219,238 7,233,881 – – – – – 50,299 50,299 (46,110) 4,189 – – – 1,470 – – 1,470 – 1,470 – – – – (412) – (412) (324) (736)
	– – – 1,470 (412) 50,299 51,357 (46,434) 4,923 – – – – – (100,303) (100,303) – (100,303) – – – – – – – (1,785) (1,785)
	2,967,542 1,315,483 368,312 3,730 (419) 2,311,049 6,965,697 171,019 7,136,716

These reserve accounts comprise the consolidated reserves of RMB4,201,510,000 and RMB3,998,155,000 as at 30 June 2021 and 2020, respectively, in the interim condensed consolidated statement of financial position.

2021 Interim Report 53

Interim Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

	2021 2020 Unaudited Unaudited RMB’000 RMB’000
NET CASH FLOWS GENERATED FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest received Purchase of items of property, plant and equipment, intangible assets and other non-current assets Proceeds from disposal of items of property, plant and equipment Receipt of government grants for property, plant and equipment Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank borrowings and other loans Repayments of bank borrowings and other loans Principal portion of lease payments Dividends paid to shareholders Dividends paid to non-controlling interests Interest paid Net cash flows used in financing activities NET DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the period Effect of foreign exchange rate changes, net CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	327,008 628,682
	3,763 2,304 (159,714) (146,022) – 23 – 805
	(155,951) (142,890)
	1,776,495 3,073,938 (2,635,832) (3,713,921) (1,777) (1,030) (51,433) – (12,400) (5,000) (106,249) (120,637)
	(1,031,196) (766,650)
	(860,139) (280,858) 1,531,739 1,580,367 (320) (242)
	671,280 1,299,267

54 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

1. CORPORATE INFORMATION

Datang Environment Industry Group Co., Ltd. (大唐環境產業集團股份有限公司) (the “Company”) was established on 25 July 2011 in the People’s Republic of China (the “PRC”) with limited liability. On 26 June 2015, the Company converted into a joint stock company with limited liability from a limited liability company. The shares of the Company have been listed on the Main board of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) from 15 November 2016. The address of its registered office is No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC.

The Company and its subsidiaries (together the “Group”) are involved in the following principal activities: environmental protection facility concession operation, the manufacture and sale of denitrification catalysts, environmental protection facilities engineering, water treatment business, energy conservation business and renewable energy engineering business.

In the opinion of the directors of the Company (“Directors”), the immediate holding company and ultimate holding company of the Company is China Datang Corporation Ltd. (“China Datang”), a company established and domiciled in the PRC and wholly owned by the Stateowned Assets Supervision and Administration Commission of the State Council.

The interim condensed consolidated financial information is presented in thousands of Renminbi (“RMB”), unless otherwise stated.

The interim condensed consolidated financial information has not been audited.

2. BASIS OF PREPARATION AND CHANGES IN THE GROUP’S ACCOUNTING POLICIES AND DISCLOSURES

2.1 Basis of preparation

The interim condensed consolidated financial information for the six months ended 30 June 2021 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS 34”).

The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2020.

2021 Interim Report 55

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

BASIS OF PREPARATION AND CHANGES IN THE GROUP’S ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)
2.2 Changes in accounting policies and disclosures

The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2020, except for the adoption of the following revised International Financial Reporting Standards (“IFRSs”) for the first time for the current period’s financial information.

Amendments to IFRS 9, IAS 39, Interest Rate Benchmark Reform – Phase 2 IFRS 7, IFRS 4 and IFRS 16

Amendment to IFRS 16 Covid-19-Related Rent Concessions

The nature and impact of the revised IFRSs are described below:

(a) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 address issues not dealt with in the previous amendments which affect financial reporting when an existing interest rate benchmark is replaced with an alternative riskfree rate (“RFR”). The phase 2 amendments provide a practical expedient to allow the effective interest rate to be updated without adjusting the carrying amount of financial assets and liabilities when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, if the change is a direct consequence of the interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis immediately preceding the change. In addition, the amendments permit changes required by the interest rate benchmark reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued. Any gains or losses that could arise on transition are dealt with through the normal requirements of IFRS 9 to measure and recognise hedge ineffectiveness. The amendments also provide a temporary relief to entities from having to meet the separately identifiable requirement when an RFR is designated as a risk component. The relief allows an entity, upon designation of the hedge, to assume that the separately identifiable requirement is met, provided the entity reasonably expects the RFR risk component to become separately identifiable within the next 24 months. Furthermore, the amendments require an entity to disclose additional information to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy. These amendments had no material impact on the interim condensed consolidated financial statements of the Group.

56 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

BASIS OF PREPARATION AND CHANGES IN THE GROUP’S ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)

2.2 Changes in accounting policies and disclosures (Continued)

(b) Amendment to IFRS 16 issued in April 2021 extends the availability of the practical expedient for lessees to elect not to apply lease modification accounting for rent concessions arising as a direct consequence of the covid-19 pandemic by 12 months. Accordingly, the practical expedient applies to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. The amendment is effective retrospectively for annual periods beginning on or after 1 April 2021 with any cumulative effect of initially applying the amendment recognised as an adjustment to the opening balance of retained profits at the beginning of the current accounting period. Earlier application is permitted. The amendment did not have any impact on the financial position and performance of the Group as there were no lease payments reduced or waived by the lessors as a result of the covid-19 pandemic during the period.

2.3 Accounting judgments and estimates

The preparation of the interim condensed consolidated financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing the interim condensed consolidated financial information, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that are applied to the annual consolidated financial statements for the year ended 31 December 2020.

2021 Interim Report 57

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

3. OPERATING SEGMENT INFORMATION

For management purposes, the Group’s operating businesses are structured and managed separately according to their nature. Each of the Group’s operating segment represents a strategic business unit that provides services which are subject to risks and returns that are different from those of the other operating segments. Summary details of the operating segments are as follows:

(a) Environmental protection and energy conservation solutions

The environmental protection and energy conservation solutions business mainly includes flue gas desulfurization and denitrification facilities concession operation for coal-fired power plants; the manufacture and sale of denitrification catalysts; engineering for coal-fired power plants, including the engineering of denitrification, desulfurization, dust removal, ash and slag handling and other environmental protection facilities and industrial site dust management related engineering; water treatment; and energy conservation including energy conservation facilities engineering and energy management contracting (“EMC”).

(b) Renewable energy engineering

The renewable energy engineering business mainly includes the engineering general contracting for newly built wind power plants, biomass power plants and photovoltaic power plants.

58 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

(c) Thermal power engineering

The thermal power engineering business mainly includes the engineering procurement construction (“EPC”) services for thermal power plants.

(d) Other businesses

Other businesses currently mainly include various businesses such as fiberglass chimney anti-corrosion and air cooling system engineering general contracting.

Management monitors the results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment results, which is a measure of adjusted profit before tax. The adjusted profit before tax is measured consistently with the Group’s profit before tax except that other income and losses, other expenses, non-leaserelated finance costs as well as corporate and other unallocated expenses are excluded from such measurement.

Segment assets and liabilities mainly comprise operating assets and liabilities that are directly attributable to the segment or can be allocated to the segment on a reasonable basis.

Segment assets exclude unallocated intangible assets, unallocated deferred tax assets, unallocated prepayments, other receivables and other assets, restricted cash, cash and cash equivalents and other unallocated head office and corporate assets as these assets are managed on a group basis.

Segment liabilities exclude interest-bearing bank borrowings and other loans (other than lease liabilities) for daily operation purpose and other unallocated head office and corporate liabilities as these liabilities are managed on a group basis.

2021 Interim Report 59

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

Six months ended 30 June 2021 (unaudited)	Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Other businesses	Total
	RMB’000 RMB’000 RMB’000 RMB’000	RMB’000

Segment revenue(note 4) Sales to external customers Intersegment sales Reconciliation: Elimination of intersegment sales Revenue Segment results Reconciliation: Other income and losses Finance costs (other than interest on lease liabilities) Corporate and other unallocated expenses Profit before tax As at 30 June 2021 (unaudited) Segment assets Reconciliation: Elimination of intersegment receivables Corporate and other unallocated assets Total assets Segment liabilities Reconciliation: Elimination of intersegment payables Corporate and other unallocated liabilities Total liabilities

	2,119,377 43,206 927 33,087	2,196,597
	– – – 354	354

	2,119,377 43,206 927 33,441	2,196,951


		(354)

		2,196,597

	187,076 366 (5) 17,317	204,754

		56,019
		(105,533)
		(53,267)

		101,973


	16,942,578 1,429,116 27,069 209,472	18,608,235

		(1,463,972)
		1,791,718

		18,935,981

	8,314,889 1,327,545 57,887 184,646	9,884,967

		(1,463,972)
		3,250,642

		11,671,637

Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

Six months ended 30 June 2020 (unaudited)	Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Other businesses RMB’000 RMB’000 RMB’000 RMB’000	Total RMB’000
Segment revenue(note 4) Sales to external customers Intersegment sales Reconciliation: Elimination of intersegment sales Revenue Segment results Reconciliation: Other income and losses Other expenses Finance costs (other than interest on lease liabilities) Corporate and other unallocated expenses Profit before tax As at 31 December 2020 (audited) Segment assets Reconciliation: Elimination of intersegment receivables Corporate and other unallocated assets Total assets Segment liabilities Reconciliation: Elimination of intersegment payables Corporate and other unallocated liabilities Total liabilities	2,058,306 752,011 – 57,624 – – – 10,974	2,867,941 10,974
	2,058,306 752,011 – 68,598	2,878,915
	325,607 6,839 (659) (2,424) 16,869,285 1,880,096 34,307 243,953 9,964,595 1,790,837 82,234 148,481	(10,974)
		2,867,941
		329,363 56,614 (98,865) (130,302) (123,616)
		33,194
		19,027,641 (1,655,898) 2,809,115
		20,180,858
		11,986,147 (1,655,898) 2,511,331
		12,841,580

2021 Interim Report 61

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

Geographical information

The majority of the non-current assets are located in the PRC, and the majority of revenues are generated from the PRC. Therefore, no geographical information is presented.

Information about major customers

Revenue of approximately RMB1,934 million for the six months ended 30 June 2021 was derived from sales of goods and the rendering of services to China Datang and its subsidiaries (excluding the Group) (“China Datang Group”) (for the six months ended 30 June 2020: RMB2,583 million).

4. REVENUE

An analysis of revenue is as follows:

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Revenue from contracts with customers Revenue from other sources – Gross rental income	2,196,313 2,867,941 284 –
	2,196,597 2,867,941

62 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

4. REVENUE (CONTINUED)

Disaggregated revenue information for revenue from contracts with customers:

Segments	Six months ended 30 June 2021 (unaudited)
	Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Other businesses Total
	RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Types of goods or service Sale of industrial products Construction services Desulfurization and denitrification services Total revenue from contracts with customers Timing of revenue recognition Goods transferred at a point in time Services transferred over time Total revenue from contracts with customers

	152,204 – – 25,783 177,987
	195,489 43,206 927 7,020 246,642
	1,771,684 – – – 1,771,684

	2,119,377 43,206 927 32,803 2,196,313


	152,204 – – 25,783 177,987
	1,967,173 43,206 927 7,020 2,018,326

	2,119,377 43,206 927 32,803 2,196,313

2021 Interim Report

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

4. REVENUE (CONTINUED)

Disaggregated revenue information for revenue from contracts with customers: (Continued)

Segments	Six months ended 30 June 2020 (unaudited)
	Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Other businesses Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
	148,822 – – 16,261 165,083 380,554 752,011 – 41,363 1,173,928 1,528,930 – – – 1,528,930
	2,058,306 752,011 – 57,624 2,867,941
	148,822 – – 16,261 165,083 1,909,484 752,011 – 41,363 2,702,858

64 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

4. REVENUE (CONTINUED)

Set out below is the reconciliation of the revenue from contracts with customers to the amounts disclosed in the segment information:

Segments	Six months ended 30 June 2021 (unaudited)
	Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Other businesses Total
	RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Revenue from contracts with customers External customers Intersegment sales Intersegment adjustments and eliminations Total revenue from contracts with customers Segments

	2,119,377 43,206 927 32,803 2,196,313
	– – – 354 354

	2,119,377 43,206 927 33,157 2,196,667
	– – – (354) (354)

	2,119,377 43,206 927 32,803 2,196,313
	Six months ended 30 June 2020 (unaudited)
	Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Other businesses Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Revenue from contracts with customers External customers Intersegment sales Intersegment adjustments and eliminations Total revenue from contracts with customers	2,058,306 752,011 – 57,624 2,867,941 – – – 10,974 10,974
	2,058,306 752,011 – 68,598 2,878,915 – – – (10,974) (10,974)
	2,058,306 752,011 – 57,624 2,867,941

2021 Interim Report 65

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

5. OTHER INCOME AND LOSSES

six months ended 30 June 2021 nts expressed in thousands of RMB unless otherwise stated) OTHER INCOME AND LOSSES
	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Other income Interest income Government grants Exchange gains Other losses, net Loss on disposal of items of property, plant and equipment Exchange losses	4,910 5,404 52,830 48,205 – 3,075
	57,740 56,684
	– (70) (1,721) –
	(1,721) (70)
	56,019 56,614

6. OTHER EXPENSES

OTHER EXPENSES
	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
	2021
	Unaudited
	RMB’000
Compensation losses (Note)		98,865
	–

Note: In November 2016, China Datang Technologies & Engineering Co., Ltd. (“Technologies & Engineering Company”) a subsidiary of the Company, and two other third parties have entered into an arrangement with Datang Xinjiang Clean Energy Co., Ltd. (“Datang Xinjiang”) to construct a wind farm. As required by the arrangement, Technologies & Engineering Company purchased 33 wind turbines from Jiangsu Jiuding Tiandi Wind Power Co., Ltd. (“Jiuding Tiandi Wind Power”). In March 2017, Jiuding Tiandi Wind Power received a notice from Datang Xinjiang that the construction of the wind farm may be suspended. After a series of negotiation between the parties, Jiuding Tiandi Wind Power brought an arbitration proceeding against Technologies & Engineering Company in December 2018. In June 2020, the arbitration authority ruled that Technologies & Engineering Company shall compensate Jiuding Tiandi Wind Power for economic losses in an aggregate amount of RMB98,865,000 (the “Ruling”).

On 21 June 2020, Technologies & Engineering Company submitted an application to the Fourth Intermediate People’s Court of Beijing (the “Court”) to overrule the Ruling. On 6 July 2020, the application has been duly accepted by the Court. On 3 September 2020, the Court issued a civil ruling, dismissing the application for revocation of the Ruling by Technologies & Engineering Company. Subsequent to the civil ruling, Technology & Engineering Company and Jiuding Tiandi Wind Power reached an agreement regarding the above compensation amount.

66 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

7. FINANCE COSTS

An analysis of finance costs is as follows:

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Interest on lease liability Interest expenses on bank borrowings and other loans Less: interest capitalised	6,427 6,868 108,846 135,087 (3,313) (4,785)
	111,960 137,170

8. INCOME TAX EXPENSE

The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the interim condensed consolidated statement of profit or loss and other comprehensive income are as follows:

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Current Deferred	36,268 27,819 (720) 1,186
	35,548 29,005

2021 Interim Report 67

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

9. DIVIDENDS

On 26 March 2021, the board of Directors of the Company (the “Board”) proposed to distribute the final dividend for the year ended 31 December 2020 of RMB0.0446 (2019 final: RMB0.0338) per share (before tax) amounted to RMB132,352,000 (2019 final: RMB100,303,000) in cash to the shareholders, which was approved by the shareholders of the Company at the 2020 Annual General Meeting on 30 June 2021. As at 30 June 2021, the final dividend has not been paid to the shareholders of the Company (30 June 2020: nil).

The Board did not recommend any interim dividend for the six months ended 30 June 2021 (for the six months ended 30 June 2020: nil).

10. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

The calculation of the basic earnings per share amounts is based on the profit attributable to ordinary equity holders of the parent, and the weighted average number of ordinary shares in issue for the six months ended 30 June 2021 and 2020, respectively.

The Company did not have any potential dilutive shares in issue during the six months ended 30 June 2021 and 2020. Accordingly, the diluted earnings per share amounts are the same as the basic earnings per share amounts.

The calculations of basic and diluted earnings per share are based on:

	Six months ended 30 June 2021 2020 Unaudited Unaudited
Earnings Profit attributable to ordinary equity holders of the parent, used in the basic/diluted earnings per share calculations (RMB) Shares Weighted average number of ordinary shares in issue during the period, used in the basic/diluted earnings per share calculations (share) Earnings per share Basic/diluted earnings per share (RMB)	86,645,000 50,299,000
	2,967,542,000 2,967,542,000
	0.03 0.02

Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

11. PROPERTY, PLANT AND EQUIPMENT

Acquisitions and disposals

During the six months ended 30 June 2021, the Group acquired items of property, plant and equipment with a cost of RMB35,861,000 (for the six months ended 30 June 2020: RMB33,036,000).

There was no item of property, plant and equipment disposed of by the Group during the six months ended 30 June 2021 (for the six months ended 30 June 2020: RMB93,000, with a loss of RMB70,000, which is included in “other income and losses” in the interim condensed consolidated statement of profit or loss and other comprehensive income).

12. TRADE, BILLS RECEIVABLES AND CONTRACT ASSETS

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Trade receivables Less: provision for impairment Bills receivable Contract assets Less: provision for impairment	8,180,531 7,932,517 (282,420) (272,662)
	7,898,111 7,659,855
	828,253 968,588
	548,039 741,369 (5,706) (5,962)
	542,333 735,407
	9,268,697 9,363,850

The Group’s trading terms with its customers are mainly on credit, except for new customers, where payment in advance is normally required. The credit period is generally within one year. Trade receivables are non-interest-bearing.

2021 Interim Report 69

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

12. TRADE, BILLS RECEIVABLES AND CONTRACT ASSETS (CONTINUED)

An ageing analysis of the trade and bills receivables, based on the invoice date, at the end of the reporting period is as follows:

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Within 1 year Between 1 and 2 years Between 2 and 3 years Over 3 years Less: provision for impairment	5,237,576 5,231,239 889,477 798,872 998,534 890,505 1,883,197 1,980,489
	9,008,784 8,901,105 (282,420) (272,662)
	8,726,364 8,628,443

Contract assets are initially recognised for revenue earned from construction services as the receipt of consideration is conditional on successful completion of construction. Upon completion of construction and acceptance by the customer, the amounts recognised as contract assets are reclassified to trade receivables.

70 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

13. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS

14.		30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000 166,592 133,734 51,233 59,443 59,975 62,226 369,649 379,117 647,449 634,520 (9,543) (9,543) 637,906 624,977 DEPOSIT AND RESTRICTED 30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000 719,345 1,599,466 (48,065) (67,727) 671,280 1,531,739 708,728 1,568,278 – 17,484 6,622 6,698 3,995 7,006 719,345 1,599,466
	Prepayments Deposits Other receivables Other current assets Less: provision for impairment CASH AND CASH EQUIVALENTS, TIME CASH
	Cash and bank balances Less: restricted cash (Note) Cash and cash equivalents Cash and bank balances denominated in: – RMB – US Dollars – Hong Kong dollars – Indian rupees

Note: Restricted cash mainly represented deposits held for issued bills payable and performance obligations for engineering services, property maintenance and frozen deposits mainly related to the Ruling as mentioned in note 6.

2021 Interim Report 71

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

15. TRADE AND BILLS PAYABLES

Trade and bills payables are non-interest-bearing and are normally settled within one year.

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Bills payable Trade payables	174,690 122,600 4,640,107 4,781,875
	4,814,797 4,904,475

An ageing analysis of trade and bills payables as at the end of the reporting periods, based on the invoice date, is as follows:

	30 June	31 December 2020 Audited RMB’000
	2021
	Unaudited
	RMB’000
Within 1 year 1 year to 2 years 2 years to 3 years More than 3 years		2,379,678 605,142 679,509 1,240,146
	2,122,430
	599,560
	703,815
	1,388,992
		4,904,475
	4,814,797

72 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

16.	PROVISIONS	Warranties Other losses Total RMB’000 RMB’000 RMB’000
	At 1 January 2021 Additional provision Amounts utilised during the period At 30 June 2021 Portion classified as current liabilities Non-current portion	2,820 4,500 7,320 – – – (260) – (260)
		2,560 4,500 7,060 (1,905) (4,500) (6,405)
		655 – 655

2021 Interim Report 73

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

17. INTEREST-BEARING BANK BORROWINGS AND OTHER LOANS

Effective interest rate Maturity (%)	30 June 2021 31 December 2020 Unaudited Audited RMB’000 RMB’000
Current Bank borrowings: – unsecured 3.10%–4.35% 2022 Other loans: – secured (Note a) 4.50% 2021 – short-term bonds (Note b) 2.64% 2021 Current portion of long- term bank borrowings and other loans Bank borrowings – unsecured 3.25%–6.62% 2021–2022 Bank borrowings – guaranteed (Note c) 4.28%–4.41% 2021–2022 Other loans – unsecured 4.75%–5.15% 2021–2022 Other loans – secured (Note d) 5.70% 2021 Lease liabilities 4.41% 2021–2022	1,291,495 1,590,560 70,000 70,000 500,000 500,000
	1,861,495 2,160,560
	419,904 461,232 32,404 35,167 141,791 153,186 345,750 350,000 32,160 32,160
	972,009 1,031,745
	2,833,504 3,192,305

74 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated) 17. INTEREST-BEARING BANK BORROWINGS AND OTHER LOANS (CONTINUED)

(CONTINUED)
Effective interest rate Maturity (%)	30 June 2021 31 December 2020 Unaudited Audited RMB’000 RMB’000
Non-current Long term bank borrowings and other loans: Bank borrowings – unsecured 3.25%–6.62% 2022–2027 Bank borrowings – guaranteed (Note c) 4.28%–4.41% 2022–2023 Other loans – unsecured 4.75%–5.15% 2022–2024 Other loans – bonds 3.65% 2024 Lease liabilities 4.41% 2022–2038 Interest-bearing bank borrowings and other loans denominated in – RMB	1,468,725 1,948,661 10,000 27,700 11,800 14,700 600,000 600,000 290,798 287,523
	2,381,323 2,878,584
	5,214,827 6,070,889
	5,214,827 6,070,889

Note a: The above secured other loans are secured by trade and bills receivables with a net carrying value of RMB70,260,000 (31 December 2020: RMB89,455,000).

Note b: On 11 January 2021 and 9 April 2021, the Company issued two tranches of short-term bonds with a par value of RMB100 amounting to RMB500 million each. The bonds had an annual effective interest rate of 2.65% and 2.64%. The first tranche of short-term-bond was already matured in April 2021, and the second tranche of short-term bond will be matured in July 2021.

Note c: The above guaranteed bank borrowings were guaranteed by the Company for certain subsidiaries.

Note d: The above secured other loans are secured by buildings and other infrastructure with a net carrying value of RMB140,610,000 (31 December 2020: RMB144,567,000).

2021 Interim Report 75

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

17. INTEREST-BEARING BANK BORROWINGS AND OTHER LOANS (CONTINUED)

The maturity profile of the interest-bearing bank borrowings and other loans at the end of the reporting periods is as follows:

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Analysed into: Bank borrowings repayable: Within one year In the second year In the third to fifth years, inclusive Beyond five years Other loans repayable: Within one year In the second year In the third to fifth years, inclusive Beyond five years	1,743,803 2,086,959 464,864 579,784 988,837 1,298,331 25,024 98,246
	3,222,528 4,063,320
	1,089,701 1,105,346 44,099 35,289 685,709 690,073 172,790 176,861
	1,992,299 2,007,569
	5,214,827 6,070,889

76 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

18. CAPITAL COMMITMENTS

(a) The Group had the following capital commitments at the end of the reporting period:

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Contracted, but not provided for Buildings Plant and machinery	– 8,613 151,377 187,792
	151,377 196,405

(b) The Group had no lease contracts that have not yet commenced as at 30 June 2021.

19. RELATED PARTY TRANSACTIONS

The Group is part of China Datang and had significant transactions with China Datang Group.

In addition to the related party transactions disclosed elsewhere in the financial information, the following is a summary of the significant related party transactions entered into the ordinary course of business between the Group and its related parties during the six months ended 30 June 2021 and 2020. All transactions with related parties were conducted at prices and terms mutually agreed by the parties involved.

2021 Interim Report 77

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(a) Significant related party transactions

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Sales of goods and rendering of services to China Datang Group Environmental protection and energy conservation solutions Renewable energy engineering Thermal power engineering Others Sales of goods and rendering of services to the associates and joint ventures of China Datang Group Environmental protection and energy conservation solutions Purchases of goods and receiving of services from China Datang Group Water supply and electricity supply Ancillary services under the concession operations Logistics services Wind power electricity and other products Purchases of goods and receiving of services from the associates and joint ventures of China Datang Group Water supply and electricity supply	1,894,199 1,832,233 39,419 749,295 – – – 986
	1,933,618 2,582,514
	12,954 27,831
	400,109 358,964 108,956 73,004 14,256 7,185 67,901 549,662
	591,222 988,815
	14,560 9,222

78 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(a) Significant related party transactions (Continued)

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Loans from subsidiary of China Datang Group China Datang Finance Co., Ltd. (“Datang Finance”) (Note a) – 500,000 Interest expense on loans from subsidiaries of China Datang Group Datang Finance 526 6,176 Datang Financial Lease Co., Ltd. (“Datang Financial Lease”) 10,366 11,044 Datang Commercial Factoring Co., Ltd. (“Datang Commercial Factoring”) 1,584 1,769 12,476 18,989 Interest income from subsidiary of China Datang Group Datang Finance 3,073 4,483	– 500,000
	12,476 18,989
	3,073 4,483

2021 Interim Report 79

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(a) Significant related party transactions (Continued)

Note a:

Loans from subsidiary of China Datang Group	31 December 2020 Proceeds Repayment 30 June 2021 Duration Effective interest rate Type (%)
Datang Finance Loans from subsidiary of China Datang Group	20,500 – 1,500 19,000 27/12/2017–26/12/2023 5.15 Unsecured 31 December 2019 Proceeds Repayment 30 June 2020 Duration Effective interest rate Type (%)
Datang Finance	356,300 500,000 802,900 53,400 13/9/2017–26/12/2023 3.92–5.15 Unsecured

(b) Outstanding balances with related parties

The outstanding balances with related parties at 30 June 2021 and 31 December 2020 are as follows:

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Cash and cash equivalents Datang Finance Trade, bills receivables and contract assets Trade and bills receivables China Datang Group The associates and joint ventures of China Datang Group	453,500 1,361,014
	6,360,531 6,431,807 402,679 471,401
	6,763,210 6,903,208

80 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(b) Outstanding balances with related parties (Continued)

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Contract assets China Datang Group The associates and joint ventures of China Datang Group Prepayments, other receivables and other assets Prepayments China Datang Group Deposits and other receivables China Datang Group The associates and joint ventures of China Datang Group	476,431 543,535 7,374 8,321
	483,805 551,856
	7,247,015 7,455,064
	23,358 18,827
	58,566 63,995 866 947
	59,432 64,942
	82,790 83,769

2021 Interim Report

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(b) Outstanding balances with related parties (Continued)

	30 June	31 December 2020 Audited RMB’000
	2021
	Unaudited
	RMB’000

Other non-current assets China Datang Group Interest-bearing bank borrowings and other loans (other than lease liabilities) Datang Finance Datang Financial Lease Datang Commercial Factoring Trade and bills payables China Datang Group The associates and joint ventures of China Datang Group Other payables and accruals China Datang Group The associates and joint ventures of China Datang Group		28,228

	7,172
		20,500 369,305 70,000

	19,000
	352,261
	70,000
		459,805
	441,261
		1,297,813 55,418

	1,288,178
	43,263
		1,353,231
	1,331,441
		625,295 8,257

	474,597
	6,098
		633,552
	480,695

82 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(c) Transactions with other government-related entities in the PRC

The Group operates in an economic regime currently dominated by entities directly or indirectly controlled, jointly controlled or significantly influenced by the PRC government and numerous government authorities and agencies (collectively referred to as “government-related entities”). China Datang, the parent and ultimate holding company of the Company, is a PRC state-owned enterprise and these governmentrelated entities are also considered as related parties of the Group in this respect.

Apart from transactions with China Datang Group mentioned above, the Group also conducts some business activities with other government-related entities in the ordinary course of business. These transactions are carried out on terms similar to those that would be entered into with non-government-related entities.

The Group prices its services and products based on the commercial negotiations. The Group has also established its approval process for sales of goods, provision of services, purchase of products and receiving of services and its financing policy for borrowings. Such approval process and financing policy do not depend on whether the counterparties are government-related entities or not.

Having considered the possibility for transactions to be impacted by related party relationships, the Group’s approval processes and financing policy, and what information would be necessary for an understanding of the potential effect of the relationship on the financial Information, the Directors are of the opinion that further information about the following transactions that are collectively significant is required for disclosure:

– Deposits and borrowings

Except for the cash and cash equivalents deposited in Datang Finance and Wing Lung Bank in Hong Kong, the Group deposits most of its cash in governmentrelated financial institutions, and also obtains short-term and long-term loans from these financial institutions in the ordinary course of business. The interest rates of the bank deposits and loans are regulated by the People’s Bank of China.

2021 Interim Report 83

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(d) Compensation of key management personnel of the Group

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Short term employee benefits Post-employment benefits Total compensation paid to key management personnel	3,858 4,894 229 238
	4,087 5,132

(e) Property Leases

As a lessee, the Group leases buildings for desulfurization and denitrification facilities from Datang Financial Lease and some power plants from the China Datang Group, with a general lease term of 20 years. The related right-of-use assets and lease liabilities recorded in the interim condensed consolidated statement of financial position, payment of lease liabilities and the related expenses recognised during the period are as follows:

	30 June 31 December 2021 2020 Unaudited Audited RMB’000 RMB’000
Right-of-use assets Lease liabilities	296,303 308,214
	321,593 318,255

84 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

19. RELATED PARTY TRANSACTIONS (CONTINUED)

(e) Property Leases (Continued)

	Six months ended 30 June 2021 2020 Unaudited Unaudited RMB’000 RMB’000
Depreciation charge Interest expense Payments	11,912 11,948
	6,398 6,812
	3,060 1,420

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values and those carried at fair value, are as follows:

	30 June 2021 (Unaudited) 31 December 2020 (Audited) Carrying amounts Fair values Carrying amounts Fair values RMB’000 RMB’000 RMB’000 RMB’000
Financial assets Financial assets included in other non-current assets Financial liabilities Long term interest-bearing bank borrowings and other loans (other than lease liabilities) (note 17)	– – 9,253 8,807
	2,090,525 2,076,438 2,591,061 2,568,420

2021 Interim Report 85

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Management has assessed that the fair values of cash and cash equivalents, restricted cash, trade and bills receivables, financial assets included in prepayments, other receivables and other assets, trade and bills payables, financial liabilities included in other payables and accruals, and the current portion of interest-bearing bank borrowings and other loans, approximate to their carrying amounts largely due to the short term maturities of these instruments.

The Group’s corporate finance team headed by the finance manager is responsible for determining the policies and procedures for the fair value disclosure of financial instruments. The corporate finance team reports directly to management. As at 30 June 2021 and 31 December 2020, the corporate finance team analysed the movements in the values of financial instruments and determined the major inputs applied in the valuation. The valuation was reviewed and approved by management.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The fair values of the financial assets included in other non-current assets have been calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities.
The fair values of the non-current portion of long term interest-bearing bank borrowings and other loans (other than lease liabilities) have been calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities. The changes in fair value as a result of the Group’s own non-performance risks for interest-bearing bank borrowings and other loans as at 30 June 2021 and 31 December 2020 were assessed to be insignificant.
The fair values of the bills receivables which are measured at fair value through other comprehensive income have been calculated by discounting the expected future cash flows using the one-year bank loan interest rate published by the People’s Bank of China.
The fair values of the unlisted equity investments designed at fair value through other comprehensive income have been measured based on valuation multiples of enterprise value (“EV”) to sales (“EV/sales”) multiple, adjusted by a discount for lack of marketability. The discount for lack of marketability represents the amounts of premiums and discounts determined by the Group that market participants would take into account when pricing the investments.

86 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

20. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Set out below is a summary of significant unobservable inputs to the valuation of financial instruments together with a quantitative sensitivity analysis as at 30 June 2021 and 31 December 2020:

			Significant		Sensitivity of fair value
	Valuation	technique	unobservable input	Input	to the input
Unlisted equity investments	Valuation	multiples	Average EV/sales	EV/sales: 5.5x	10% (31 December 2020: 10%)
			Multiple of peers	(31 December 2020:	increase/decrease in multiple
				EV/sales: 4.0x)	would result in increase/
					decrease in fair value by 7%
					(31 December 2020: 6%)
			Discount for lack of	25% (31 December	10% (31 December 2020: 10%)
			marketability	2020: 25%)	increase/decrease in discount
					would result in decrease/
					increase in fair value by 3%
					(31 December 2020: 3%)

2021 Interim Report 87

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:

Assets measured at fair value

	Fair value measurement using
	Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Total RMB’000 RMB’000 RMB’000 RMB’000
As at 30 June 2021 (unaudited) Equity investments designated at fair value through other comprehensive income – – 24,166 24,166 Trade and bills receivables – 828,253 – 828,253 As at 31 December 2020 (audited) Equity investments designated at fair value through other comprehensive income – – 28,914 28,914 Trade and bills receivables – 968,588 – 968,588

	– – 24,166 24,166
	– 828,253 – 828,253

88 Datang Environment Industry Group Co., Ltd.

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021 (Amounts expressed in thousands of RMB unless otherwise stated)

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy (Continued)

The movements in fair value measurements within Level 3 during the period are as follows:

	2021	2020
	Unaudited	Unaudited
	RMB’000	RMB’000
Equity investments at fair value through other comprehensive income – unlisted: At 1 January Total (losses)/gains recognised in other comprehensive income	28,914 (4,748)	7,658 1,730
At 30 June	24,166	9,388

Liabilities measured at fair value

The Group did not have any financial liabilities measured at fair value as at 30 June 2021 and 31 December 2020.

During the period, there were no transfers of fair value measurements between Level 1 and Level 2 and no transfers into or out of Level 3 for both financial assets and financial liabilities (six months ended 30 June 2020: nil).

2021 Interim Report 89

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2021

(Amounts expressed in thousands of RMB unless otherwise stated)

EVENTS AFTER THE REPORTING PERIOD

There are no significant reportable events or transactions incurred after the reporting period.

22. APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The interim condensed consolidated financial statements were approved and authorised for issue by the Board on 20 August 2021.

Datang Environment Industry Group Co., Ltd.

Definition and Glossary of Terms

“Board”

the board of Directors of the Company

“China Datang” China Datang Corporation Ltd. (中國大唐集團有限公司), a stateowned enterprise established on 9 April 2003 in accordance with the PRC laws and the Controlling Shareholder and a promoter of the Company

“China Datang Group”

China Datang and its subsidiaries (excluding the Group)

“Company” Datang Environment Industry Group Co., Ltd. (大唐環境產業集團股份有限公司) was converted to a joint stock limited company on 26 June 2015, unless otherwise stated, including its predecessor China Datang Group Environment Technology Co., Ltd. (中國大唐集團環境技術有限公司) (a limited liability company established on 25 July 2011 pursuant to the PRC law and was renamed to Datang Technology Industry Co., Ltd. (大唐科技產業有限公司) in September 2013 and further to Datang Technology Industry Group Co., Ltd. (大唐科技產業集團有限公司) in December 2013)

“Controlling Shareholder” has the meaning ascribed under the Listing Rules, and in this interim report, refers to the controlling shareholder of the Company, China Datang

“Datang Finance” China Datang Finance Co., Ltd. (中國大唐集團財務有限公司), a company incorporated in the PRC with limited liability, and a nonwholly owned subsidiary of China Datang

“Datang Huayin” Datang Huayin Electric Power Co., Ltd. (大唐華銀電力股份有限公司), a joint stock limited company established on 22 March 1993 in accordance with the PRC laws and a subsidiary of China Datang, which is listed on the Shanghai Stock Exchange (stock code: 600744)

“Datang Renewable” China Datang Corporation Renewable Power Co., Ltd. (中國大唐集團新能源股份有限公司), a joint stock limited company established on 23 September 2004 in accordance with the PRC laws and a subsidiary of China Datang, which is listed on the Main Board of the Stock Exchange (stock code: 1798)

“Director(s)”

the director(s) of the Company

2021 Interim Report 91

Definition and Glossary of Terms (Continued)

“Domestic Share(s)”
ordinary shares in the Company’s share capital, with a nominal value of RMB1.00 each, which are subscribed for and paid up in RMB

“EMC” a business model that the energy conservation companies provide energy-conservation services to customers according to the energy-conservation service contracts entered into with customers, and recover the investment and gain profit from the energy efficiency achieved upon the completion of energy conservation facilities refurbishment

“EPC” engineering, procurement and construction, a common form of contracting arrangement whereby the contractor is commissioned by the customer to carry out works, such as design, procurement, construction and trial operations, either through the contractor’s own employees or by subcontracting part or all of the works, and be responsible for the quality, safety, timely delivery and cost of the project
“Group”, “our Group”, the Company and all or any of our subsidiaries (as the context so “we” or “us” requires)
“H Share(s)” overseas listed foreign shares in ordinary share capital of the Company with a nominal value of RMB1.00 each, subscribed for and traded in Hong Kong dollars and listed and traded on the Stock Exchange
“Latest Practicable Date” 21 September 2021, being the latest practicable date prior to the printing of this interim report for ascertaining certain information contained in this interim report
“Listing Rules”

Rules Governing the Listing of Securities on the Stock Exchange

“Model Code”

Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules

“NDRC” National Development and Reform Commission
“PBOC” or “People’s Bank of China”

the People’s Bank of China

92 Datang Environment Industry Group Co., Ltd.

Definition and Glossary of Terms (Continued)

“PRC”

the People’s Republic of China, unless it has specifically specified, it excludes Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan

“Prospectus”	the prospectus of the Company dated 3 November 2016 with
	respect to the listing of the Company on the Main Board of the
	Stock Exchange
“Reporting Period”	the six months ended 30 June 2021
“RMB”	Renminbi, the current lawful currency of the PRC
“Senior Management”	senior management of the Company
“SFC”	the Securities and Futures Commission
“SFO”	the Securities and Futures Ordinance (Chapter 571 of the Laws of
	Hong Kong), as amended, supplemented or otherwise modified
	from time to time
“Shareholder(s)”	holder(s) of the Share(s)
“Share(s)”	ordinary share(s) with nominal value of RMB1.00 each in the share
	capital of the Company, composed of the Domestic Shares and H
	Shares
“Stock Exchange”	The Stock Exchange of Hong Kong Limited
“Supervisor(s)” or	supervisor(s) or supervisory committee of the Company
“Supervisory Committee”
“%”	percent

If there is any inconsistency between the Chinese names of entities or enterprises established in the PRC and their English translations, the Chinese names shall prevail.

2021 Interim Report 93

Corporate Information

LEGAL NAME OF THE COMPANY

大唐環境產業集團股份有限公司

ENGLISH NAME OF THE COMPANY

Datang Environment Industry Group Co., Ltd.*

DIRECTORS

Executive Directors

SUPERVISORS

Mr. Huang Yuan (Chairman) (appointed in September 2021)

Mr. Zhang Xuefeng (appointed in September 2021) Ms. Luo Li (appointed in January 2021) Ms. Huo Yuxia (retired in September 2021) Mr. Liu Liming (retired in September 2021) Mr. Chen Li (resigned in January 2021)

LEGAL REPRESENTATIVE OF THE COMPANY

Mr. Wang Yanwen

(appointed in June 2021 as Chairman of the Board) Mr. Tian Dan

Non-executive Directors

Mr. Wang Junqi (appointed in September 2021) Mr. Wu Daqing (appointed in September 2021) Mr. Chen Kan (appointed in September 2021) Mr. Qu Bo (resigned in June 2021 as Chairman of the Board, and retired in September 2021 as Director)

Mr. Liu Quancheng (retired in September 2021) Mr. Liu Ruixiang (retired in September 2021) Mr. Li Zhenyu (retired in September 2021)

Independent non-executive Directors

Mr. Ye Xiang Mr. Mao Zhuanjian Mr. Gao Jiaxiang

Mr. Wang Yanwen (appointed in June 2021) Mr. Qu Bo (resigned in June 2021)

AUTHORIZED REPRESENTATIVES

Mr. Wang Yanwen Mr. Liang Xiuguang

JOINT COMPANY SECRETARIES

Mr. Liang Xiuguang Ms. Wong Sau Ping (FCG; FCS)

COMMITTEES UNDER THE BOARD

Audit Committee

Mr. Gao Jiaxiang (Chairman) Mr. Ye Xiang Mr. Chen Kan (appointed in September 2021) Mr. Liu Quancheng (ceased in September 2021)

94 Datang Environment Industry Group Co., Ltd.

Corporate Information (Continued)

Nomination Committee

Mr. Wang Yanwen (Chairman) （appointed in June 2021） Mr. Mao Zhuanjian Mr. Gao Jiaxiang Mr. Qu Bo (resigned in June 2021)

AUDITOR

Ernst & Young

Certified Public Accountants 27F, One Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong

LEGAL ADVISORS

Remuneration and Evaluation Committee

Mr. Ye Xiang (Chairman) Mr. Mao Zhuanjian Mr. Wu Daqing (appointed in September 2021) Mr. Wang Yanwen (ceased in September 2021)

As to Hong Kong law

Zhong Lun Law Firm LLP 4/F, Jardine House, 1 Connaught Place, Hong Kong

As to the PRC law

Strategy and Investment Committee

Mr. Tian Dan (Chairman) (appointed in September 2021) Mr. Mao Zhuanjian Mr. Wang Junqi (appointed in September 2021) Mr. Wang Yanwen (ceased in September 2021) Mr. Liu Ruixiang (ceased in September 2021)

REGISTERED OFFICE

No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC

HEAD OFFICE IN THE PRC

No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

31/F, Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong

Zhong Lun Law Firm 23-31/F, South Tower of CP Center, 20 Jin He East Avenue, Chaoyang District, Beijing, PRC

PRC PRINCIPAL BANKS

China Development Bank Corporation China Development Bank 11088 Fortune Resource International Center No. 16 Taipingqiao Street, Xicheng District, Beijing, the PRC

China Construction Bank Corporation Beijing Xuanwu Sub-branch No. 314 Guang’anmennei Street, Xicheng District, Beijing, the PRC

Industrial and Commercial Bank of China Limited Beijing Haidian Sub-branch

No. 100 Zhongguancun East Road, Haidian District, Beijing, the PRC

2021 Interim Report 95

Corporate Information (Continued)

Agricultural Bank of China Beijing Xuanwu Sub-branch No. 1A Xuanwumenwai Avenue, Xicheng District, Beijing

Bank of Beijing Co., Ltd. Shangdi Sub-branch

No. 1 Shangdi Xinxi Road, Haidian District, Beijing

Ningbo Bank Corporation Beijing Zhongguancun Sub-Branch 1st Floor, Dream Laboratory, 1 Haidian Avenue, Haidian District, Beijing

Agricultural Bank of China Limited Beijing Luomashi Sub-branch F1, Block A, Fenghua Haojing, No. 6–4 Guang’an Men Nei Da Jie, Xicheng District, Beijing

H SHARE REGISTRAR

Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17/F, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong

S T O C K A B B R E V I A T I O N A N D STOCK CODE

DATANG ENVIRO (1272)

INVESTOR INQUIRIES

Investor Hotline: +86 10 5838 9858 Fax: +86 10 5838 9860 Website: www.dteg.com.cn E-mail: [email protected]

For identification purpose only

Huaxia Bank Co., Ltd. Beijing Mentougou Sub-branch No. 57 Dayu Xinqiao Street, Mentougou District, Beijing

China Minsheng Bank Wanliu Branch Block 2, 6 Wanliuzhong Road, Haidian District, Beijing

Postal Savings Bank of China Dashanzi Branch 13 Jiuxianqiao Road, Chaoyang District, Beijing

China Merchant Bank Beijing East Third Ring Branch 1 East Third Ring North Road, Chaoyang District, Beijing

Bank of Jiangsu Beijing Branch 1 Building, Guangxi Homeland, Chaoyang District, Beijing

Datang Environment Industry Group Co., Ltd.

AI assistant

Datang Environment Industry Group Co., Ltd. — Interim / Quarterly Report 2021

49815_rns_2021-09-29_3725703a-acbc-4463-bb52-b1f074f23f51.pdf

2021 INTERIM REPORT

Contents

Management Discussion and Analysis

MANAGEMENT DISCUSSION AND ANALYSIS

I. INDUSTRY OVERVIEW

II. BUSINESS OVERVIEW

1. Environmental Protection and Energy Conservation Solution Business

Environmental protection facility concession operation business

Denitrification catalysts business

Environmental protection facilities engineering business

Water treatment business

Energy conservation business

2. Renewable Energy Business

3. Thermal Power Engineering Business

4. Overseas Business

5. Research and Development

III. MANAGEMENT DISCUSSION AND ANALYSIS ON FINANCIAL POSITION AND OPERATING RESULTS

1. Overview

2. Results of Operation

Revenue

Cost of sales

Selling and distribution expenses

Administrative expenses

Other income and losses

Other expenses

Finance costs

Profit before tax

Income tax expense

Profit for the period

Profit attributable to owners of the parent

3. Results on Business Segments

4. Cash Flows

5. Working Capital

6. Indebtedness

7. Capital Expenditure

8. Net Gearing Ratio

IV. RISK FACTORS AND RISK MANAGEMENT

Risks on environmental protection and energy conservation policies

Risks on connected transactions with China Datang Group

Cash flow risks

Industry risks

Risks on overseas business

V. EMPLOYEES AND REMUNERATION POLICY

VI. OUTLOOK ON THE GROUP’S FUTURE DEVELOPMENT

I. CHANGES IN SHARE CAPITAL OF THE COMPANY

III. I N T E R E S T S A N D S H O R T P O S I T I O N S O F S U B S T A N T I A L SHAREHOLDERS AND OTHER PERSONS IN SHARES AND UNDERLYING SHARES

Notes：

Changes in Share Capital and Shareholdings of Substantial Shareholders (Continued)

I. COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE

III. DIVIDEND DISTRIBUTION PLAN FOR THE SIX MONTHS ENDED 30 JUNE 2021

IV. MATERIAL LITIGATION OR ARBITRATION EVENTS

V. CHANGES IN ACCOUNTING POLICIES

VI. PUBLIC FLOAT

VII. MATERIAL CONTRACTS

VIII. REPURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY

IX. RESERVES

X. USE OF NET PROCEEDS FROM INITIAL PUBLIC OFFERING

XI. ASSET TRANSACTIONS

XII. INSOLVENCY AND RESTRUCTURING

XIII. SIGNIFICANT TRUSTEESHIP, CONTRACTING AND LEASE

XIV. MATERIAL ACQUISITIONS AND DISPOSALS

XV. SIGNIFICANT INVESTMENT AND FUTURE PLANS FOR MAJOR INVESTMENTS

XVI. FINANCIAL INSTRUMENTS FOR HEDGING PURPOSES

XVII. CHARGED AND PLEDGED ASSETS

XVIII. BANK BORROWINGS AND OTHER LOANS

XIX. CONTINGENT LIABILITIES

XXI. REVIEW OF INTERIM REPORT

XXII. IMPORTANT SUBSEQUENT EVENTS AFTER THE REPORTING PERIOD

XXIII. OTHER IMPORTANT MATTERS

I. EXECUTIVE DIRECTORS

Mr. Wang Yanwen (王彥文)

Mr. Tian Dan (田丹)

II. NON-EXECUTIVE DIRECTORS

Mr. Wang Junqi (王俊啟)

Mr. Wu Daqing (吳大慶)

Mr. Chen Kan (陳侃)

III. INDEPENDENT NON-EXECUTIVE DIRECTORS

Datang Environment Industry Group Co., Ltd. Interim / Quarterly Report 2021