Stock Code: 000967
Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2 024 Annu al
Report
April 2025 1
Infore Environment Technology Group Co. Ltd.Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2024 Annual Report
Part I Important Notice Table of Contents and Definitions
The Board of Directors the Board of Supervisors as well as the directors
supervisors and senior officers of Infore Environment Technology Group Co. Ltd.warrant that the information in this report includes no misrepresentations
misleading statements or material omissions and jointly and severally accept
liability for the truthfulness accuracy and completeness of information in this
report.Ma Gang the Company's legal representative Wang Qingbo the Company's
principal officer in charge of accounting and Wu Shanshan the principal officer
of the Company's accounting division (head of accounting) warrant that the
financial statements in the Annual Report are true accurate and complete.All directors of the Company attended the Board meeting to review this report.Any forward-looking statements such as future plans mentioned in this
report shall not be considered as promises to investors. Investors are advised to
pay attention to possible investment risks.The Board has approved a proposal on dividend plan as follows: Based on
the total share capital (minus shares in the Company's repurchase account) on the
date of record for the 2024 final dividend plan a cash dividend of RMB 1.89 (tax
inclusive) per 10 shares will be distributed to the shareholders with no conversion
of the capital reserve to share capital.
2Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Contents
Part I Important Notice Table of Contents and Defi... 2
Part II Company Profile and Principal Financial In... 6
Part III Management Discussion and Analysis ........ 12
Part IV Corporate Governance ....................... 48
Part V Environmental and Social Responsibility ..... 69
Part VI Significant Events ......................... 84
Part VII Share Changes and Shareholder Information.. 97
Part VIII Information on Preference Shares ........ 106
Part IX Information on Bonds ...................... 107
Part X Financial Report ........................... 111
3Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Documents Available for Reference
(I) Financial statements with signatures and seals of the legal representative of the Company principal officer in charge of
accounting and principal officer of the accounting division.(II) Original audit report with the seal of the accounting firm and signed and stamped by certified public accountants (CPAs).(III) Originals of all corporate documents and announcements publicly disclosed on the website designated by the CSRC during
the reporting period.The originals and legally effective photocopies of the aforesaid documents are available at the Company and the stock exchange
for inspection by investors.
4Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Definitions
Term means Definition
Company the Company Infore Enviro means Infore Environment Technology Group Co. Ltd.CSRC means China Securities Regulatory Commission
SZSE means Shenzhen Stock Exchange
General Meeting of Shareholders of Infore
General Meeting of Shareholders means
Environment Technology Group Co. Ltd.Board of Directors of Infore Environment
Board of Directors the Board means
Technology Group Co. Ltd.Board of Supervisors of Infore Environment
Board of Supervisors means
Technology Group Co. Ltd.Company Law means Company Law of the People's Republic of China
Securities Law means Securities Law of the People's Republic of China
Articles of Association of Infore Environment
Articles of Association means
Technology Group Co. Ltd.
5Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part II Company Profile and Principal Financial Indicators
I. Company Information
Stock name Infore Enviro Stock code 000967
Stock listed on Shenzhen Stock Exchange
Chinese name of the盈峰环境科技集团股份有限公司
Company
Chinese abbreviation of the盈峰环境科技集团
Company
Foreign name of the
Infore Environment Technology Group Co. Ltd.Company (if any)
Legal representative of the
Ma Gang
Company
1818 Renmin West Road Dongguan Sub-district Shangyu District Shaoxing City Zhejiang
Registered address
Province China
Postal code of registered
312300
address
Historical change in On February 29 2016 the Company changed its registered address to 1818 Renmin West Road
registered address of the Dongguan Sub-district Shangyu District Shaoxing City Zhejiang Province China from Shangpu
Company Town Shangyu City Zhejiang Province.
23/F Infore Center 7-8 Yixing Road Xincheng Area Beijiao Town Shunde District Foshan
Office address
City Guangdong Province
Postal code of office address 528300
Official website www.inforeenviro.com
E-mail inforeenviro@infore.com
II. Contact Details
Board Secretary Securities Representative
Name Huang Junjie Wang Fei
23/F Infore Center 7-8 Yixing Road 23/F Infore Center 7-8 Yixing Road
Xincheng Area Beijiao Town Shunde Xincheng Area Beijiao Town Shunde
Address
District Foshan City Guangdong District Foshan City Guangdong
Province Province
Telephone 0757-26335291 0757-26335291
Fax 0757-26330783 0757-26330783
E-mail wangyf@infore.com wangyf@infore.com
III. Information Disclosure and Access
Stock exchange website on which the report is published Shenzhen Stock Exchange: http://www.szse.cn/
Publications and websites on which the report is published China Securities Journal Securities Times Securities Daily
Shanghai Securities Journal and Cninfo
(http://www.cninfo.com.cn/)
Place where the report is lodged Securities Department 23/F Infore Center 7-8 Yixing Road
6Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Xincheng Area Beijiao Town Shunde District Foshan City
IV. Changes to Registered Information
Unified Social Credit Code 913300006096799222
Since it went public in 2000 the Company has changed its
business scope five times. Scope of business as at November 18
1993: the research development and production of ventilators
air-cooling and water-cooling equipment air conditioners
refrigerators quick-freezing equipment molds and power
generators. Export (refer to the documents of approval from the
Ministry of Foreign Trade and Economic Cooperation for
details). On July 2 2002 the scope of business expanded to
include "metal and plastic-steel composite pipes and profiles".On November 14 2003 the scope of business expanded to
include "environmental engineering". On February 29 2016 a
strategic transformation led to an expansion of the Company's
scope of business to: R&D maintenance and operation services
of environmental monitoring instruments development
consulting and services of environmental management
technologies operation services of environmental management
facilities; design and construction of environmental engineering
environmental protection engineering municipal engineering
and water conservancy and other water-related projects
technological development and services for water pollution
control water treatment and ecological restoration; R&D sales
and relevant technical consulting services of communication
products network products mechatronic products automatic
control products intelligent building and community products
as well as software products; design development investment
Changes to the Company's principal activities since its listing
operation management and technical consulting services of
(if any)
relevant supporting facilities for the disposal and recycle of
municipal waste and solid waste; sales of ventilators and air-
cooled water-cooled and air conditioning equipment; operation
of import and export business; industrial investment investment
management asset management and investment consultation.On May 18 2016 "investment the operation of import and
export business industrial investment investment management
and asset management" were removed from the Company's
scope of business. On June 28 2019 the Company's scope of
business was updated to: R&D manufacturing sales technical
consultation maintenance and operation services of sanitation
equipment special operation robots new energy vehicles
(NEV) environmental monitoring equipment special
equipment for environmental protection car charging equipment
and parts; equipment leasing; design operations management
technological development and technical services of supporting
facilities relating to disposal and recycling of municipal garbage
and solid waste; design construction operations management
technological development technical services of environmental
engineering municipal engineering garden engineering electric
power engineering water conservancy engineering water
pollution treatment engineering air pollution treatment
engineering and soil remediation engineering; operational
cleaning collection transportation and treatment services of
urban household garbage (operating with license); development
7Infore Environment Technology Group Co. Ltd. 2024 Annual Report
technical consultation and technical services of environmental
protection IoT and Internet technologies; software development
and sales; sales of ventilators air cooling water cooling and air
conditioning equipment; import and export business and
investment consultation.
1. In 2000 the Company went public and its largest shareholder
was Zhejiang Fan & Air-cooled Equipment Co. Ltd.
2. On February 23 2006 the former controlling shareholder of
the Company Zhejiang Shangfeng Industry Group Co. Ltd. and
the Company's shareholder Midea Group Co. Ltd. transferred
their respective stocks of 9575027 shares and 24897984
shares to Guangdong Infore Group Co. Ltd. Guangdong Infore
Group Co. Ltd. became the Company's largest shareholder.
3. On August 5 2008 the Company's controlling shareholder
Guangdong Infore Group Co. Ltd. changed its name to
"Guangdong Infore Holding Investment Group Co. Ltd."
Changes to the Company's controlling shareholders since its
4. On September 30 2010 Guangdong Infore Holding
incorporation (if any)
Investment Group Co. Ltd. changed its name to "Infore Holding
Investment Group Co. Ltd." The latter became the Company's
controlling shareholder.
5. On January 4 2019 the private placement of new shares for
the purchase of new assets was made and the Company issued
1017997382 shares to Ningbo Infore Asset Management Co.
Ltd. to acquire its 51% equity interest in Zoomlion
Environmental. Ningbo Infore Asset Management Co. Ltd.became the Company's largest shareholder. As at the end of the
reporting period the Company's controlling shareholder was
Ningbo Infore Asset Management Co. Ltd.V. Other Relevant Information
The accounting firm engaged by the Company
Pan-China Certified Public Accountants LLP (Special General
Name of accounting firm
Partnership)
27/F Run'ao Business Center (T2) Qianjiang Century CBD
Office address of accounting firm
Xiaoshan District Hangzhou City Zhejiang Province
Authorized signatories Lin Wang and Cao Cuijuan
Authorized signatories
□ Applicable □ Not Applicable
Sponsor Sponsor's office address Representative Supervisory period
Huaxing Securities 2301
Raffles City The Bund East
Huaxing Securities Co. Ltd. Tower No. 1089 Li Zeming and Yue Yalan 2024
Dongdaming Road Hongkou
District Shanghai
The financial advisor engaged by the Company to exercise constant supervision over the Company during the reporting period
□ Applicable □ Not Applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate previous years' accounting data
□ Yes □ No
8Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Reasons for retrospective adjustments or restatements
Change in Accounting Policies
2023 YoY change 2022
2024 Before After After Before After
adjustment adjustment adjustment adjustment adjustment
1263105012631050912255992912255992
Operating revenue (RMB) 13117894323.95 3.85%
967.3467.3438.42938.42
Net profit attributable to the listed 49838373 498383730. 418794179. 41879417
513514275.543.04%
company's shareholders (RMB) 0.00 00 13 9.13
Net profit attributable to the listed
44475343444753430.324753411.32475341
company's shareholders after non- 502176740.07 12.91%
0.2222181.18
recurring gains and losses (RMB)
Net cash flows from operating 13855565 138555650 166248228 16624822
1162049481.48-16.13%
activities (RMB) 09.49 9.49 7.71 87.71
Basic earnings per share
0.160.160.160.00%0.130.13
(RMB/share)
Diluted earnings per share
0.160.160.160.00%0.130.13
(RMB/share)
Weighted average return on equity 2.94% 2.88% 2.88% 0.06% 2.41% 2.41%
December 31 2023 YoY change December 31 2022
December 31 2024 Before After After Before After
adjustment adjustment adjustment adjustment adjustment
2904820129048201529271291829271291
Total assets (RMB) 29636330337.87 2.02%
560.3660.3659.98859.98
Net assets attributable to the listed 17437509 174375091 172886020 17288602
17519445625.130.47%
company's shareholders (RMB) 156.73 56.73 18.09 018.09
Reasons for changes in accounting policies and corrections of accounting errors
The Company has implemented the provisions of "Accounting Treatment of Assurance-type Warranty That Does Not Belong to
a Single Performance Obligation" in Interpretation No. 18 of the Accounting Standards for Business Enterprises promulgated by the
Ministry of Finance since January 1 2024 and has made retroactive adjustments to the information of the comparable period.The lower of net profit before and after non-recurring gains and losses is negative for the most recent three fiscal years and the latest
auditor's report shows there is uncertainty as to the Company's ability to continue as a going concern
□ Yes □ No
The lower of the net profit before and after non-recurring gains and losses is negative
□ Yes □ No
VII. Accounting Data Differences Arising from Domestic/Overseas Accounting Standards
1. Differences in net profit and net assets under Chinese Accounting Standards and International
Accounting Standards
□ Applicable □ Not Applicable
No such differences during the reporting period.
9Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Differences in net profit and net assets under Chinese Accounting Standards and Overseas Accounting
Standards
□ Applicable □ Not Applicable
No such differences during the reporting period.VIII. Quarterly Principal Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 2998009860.25 3234972347.21 3044603403.77 3840308712.72
Net profit attributable to the listed company's
172498196.39208354383.66222793829.28-90132133.79
shareholders
Net profit attributable to the listed company's
shareholders after non-recurring gains and 186412749.23 195743875.79 221966068.88 -101945953.83
losses
Net cash flows from operating activities -332971774.46 149994339.14 86595449.86 1258431466.94
Whether the financial indicators above or their sums differ materially from those in the Company's disclosed quarterly and interim
reports
□ Yes □ No
IX. Non-recurring Gains and Losses Items and Amounts
□ Applicable □ Not Applicable
Unit: RMB
Items Amount in 2024 Amount in 2023 Amount in 2022 Note
Gain or loss for the disposal of non-current assets
-47196844.86-4146549.53-2289681.16——
(inclusive of provisions to write off impaired assets)
Government subsidies recognized as gain or loss
during the reporting period (exclusive of government
subsidies given in the Company's ordinary course of
55557305.6552966550.7580268041.82——
business based on the established criteria and having a
continuous impact on the Company's gain or loss as
per the government policies or regulations)
Gain or loss arising from changes in fair value of
financial assets and financial liabilities held by non-
financial enterprises as well as from the disposal of
17102059.94——
financial assets and financial liabilities (exclusive of
effective hedges that arise in relation to the
Company's ordinary business operations)
Capital collected from non-financial enterprises that
was recognized as gain or loss during the reporting 6113509.25 52623.28 1280730.46 ——
period
Gain or loss on entrusting other parties with Income from
investment or asset management wealth
24183474.63 12111406.99 19091108.25 management
products:
RMB
10Infore Environment Technology Group Co. Ltd. 2024 Annual Report
24183474.6
3.
Reversal of provisions for impaired receivables that
10424873.13484240.00——
have been individually tested for impairment
Gain/loss on debt restructuring -2318575.60 -3130560.92 -5380200.00 ——
Operating revenue and expenses other than the above
-31994184.649532774.642164235.04——
items
Other gains and losses that fall into the definition of
19785940.63——
non-recurring gains and losses
Tax rebates reductions and exemptions granted ultra
1004379.44——
vires or without official documents of approval
Less: Income tax 12036883.47 11730712.09 22153064.81 ——
Minority interest affected (after tax) 8497198.56 2509473.34 -269278.28 ——
Total 11337535.47 53630299.78 94040767.95 --
Details on other gains and losses that fall into the definition of non-recurring gain/loss:
□ Applicable □ Not Applicable
No such cases during the reporting period.Explanation of classification of non-recurring gains and losses listed in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public — Non-recurring Gains and Losses as recurring gains and losses
□ Applicable □ Not Applicable
No such cases during the reporting period.
11Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part III Management Discussion and Analysis
I. Industry Performance During Reporting Period
1. Industry overview
Infore Enviro (Stock code: 000967) is a technology-based enterprise in the field of urban cleaning services in China. The
Company's main business is urban cleaning services. Relying on "intelligent equipment Smart Sanitation Cloud Platform and smart
services" it creates a new urban service model that combines ecology and technology and builds a full-chain service system of "front-
end intelligent operation middle-end intelligent dispatching and back-end lean management" in the industry empowering the
intelligent and refined operation of urban cleaning services all day long in all aspects and throughout the whole process.Urban cleaning services are an important part of the modern environmental management and operation system covering multiple
fields such as road cleaning and maintenance snow and ice removal waste collection and transportation waste sorting municipal
infrastructure maintenance urban landscaping water area cleaning and marine sanitation. The Company adopts diversified business
models commonly including "government procurement" "franchising" and "equity cooperation". By providing a full-cycle solution
including planning investment construction and operation it comprehensively maintains a clean sanitary and beautiful urban
environment and creates a healthy and comfortable living and working space for residents effectively supporting the improvement and
sustainable development of the human settlement environment.
2. Industry development
2024 marked a crucial year for fully implementing the guiding principles of the 20th CPC National Congress and for carrying out
the "14th Five-Year Plan". The urban service market has maintained robust growth thanks to the sanitation marketization reform and
the "urban steward" model. Although the environmental protection equipment market has maintained a relatively high total demand in
the long term driven by policies affected by the approval of special treasury bond projects and the disbursement of funds concentrated
in the fourth quarter equipment procurement will be postponed to 2025. Coupled with factors such as the weakening of local fiscal
payment capabilities and the reduction of customers' budgets the industry continues the downward trend of the previous year. It is
worth noting that new energy-powered environmental protection equipment has achieved a rapid growth of 45% against the trend
becoming a prominent highlight in the market.The growth in both the annual value and the total value of urban service contracts in China over the past nine years:
The total sales of environmental protection equipment and sales of pure electric new energy-powered environmental protection
equipment in the past nine years:
12Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Urban service is an essential item of government spending as it is closely related to people's livelihoods. The sector's long-term
growth has little to do with short-term fluctuations in the macro economy and it is tied to long-term economic trends policy directives
environmental requirements and people's living standards without notable seasonal and regional features.Looking ahead to 2025 policy drivers and industry cycles are expected to align closely. The urban services market is likely to
maintain steady growth supported by the ongoing deepening of the sanitation marketization reform and the "urban steward" model. In
addition the environmental protection equipment market is poised for growth supported by multiple drivers. From the perspective of
policy support the report on the work of the government for 2025 proposed to raise the deficit ratio to 4% issue over RMB 300 billion
of ultra-long-term special treasury bonds and RMB 500 billion of local government special bonds. In addition the RMB 12 trillion
"debt resolution" plan in 2024 is expected to improve local financial resources providing financial guarantees for the procurement of
environmental protection equipment. From the perspective of the industry cycle the expansion of the large-scale equipment renewal
policy coupled with the delayed implementation of the funded projects issued in 2024 and the natural renewal demand of environmental
protection equipment will boost the industry back onto the growth track. It is worth noting that as the penetration rate of new energy-
powered environmental protection equipment breaks through the critical point of 10% where demand explodes with the support of
policies such as the expansion of the pilot program for full electrification of public service vehicles the demand for new energy
equipment will enter a period of rapid growth.
3. Development trends
(1) Urban services: Deepening of the intelligent transformation
The urban service scenarios continue to expand. Relying on technologies such as the Internet of Things big data and AI it realizes
the upgrade from single sanitation management to comprehensive urban operation promoting a systematic innovation in the service
mode and management efficiency. With the acceleration of the urbanization process the traditional sanitation management mode has
been difficult to meet the transformation demand from the "sanitation integration" to the "urban steward" model and the intelligent
urban service system has emerged as the times require. Based on the Internet of Things and mobile Internet this system conducts full-
process and dynamic monitoring of all sanitation management elements such as personnel vehicles objects and tasks. By optimizing
the management mode it improves the operation quality reduces the operation cost and builds a digital management evaluation system.Its service architecture adopts a cloud-based deployment model deeply integrating with the smart city management network and using
the cloud service platform as the carrier to deliver service capabilities to both the management and operation ends. With technological
iteration and the extension of application scenarios the smart urban services will become a key support for promoting the green low-
carbon and sustainable development of cities.
13Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(2) Environmental protection equipment: Accelerated integration of new energy and intelligence
The environmental protection equipment sector is rapidly shifting towards greener and more efficient solutions with new energy
technologies like electrification and hydrogen energy gaining significant traction. These innovations are being further enhanced by
innovative technologies such as intelligent sensing and autonomous operations. Against the backdrop of China's "dual carbon" strategy
which is deeply embedded in the broader vision of ecological civilization policies promoting new urbanization and the pilot program
for full electrification of public service vehicles are working in tandem to accelerate the transition to new energy solutions in
environmental protection equipment. By 2024 the sector's penetration of new energy technologies has reached 14.9% and the lifecycle
cost advantages driven by economies of scale are further accelerating the substitution process. The synergy between policy guidance
and market forces is driving this transformation.In response to structural labor shortages and rising costs in traditional environmental protection sectors smart equipment has
emerged as a crucial solution. Guided by national strategies such as "vehicle-road-cloud integration" and "artificial intelligence+" the
development of smart city infrastructure and the deployment of intelligent connected vehicles are becoming increasingly integrated.This creates large-scale opportunities for the application of intelligent environmental protection equipment and other equipment. A
shift toward more automated labor-light operations driven by technological iteration is reshaping the industry.II. Principal Business During the Reporting Period
(I) Principal activities
Infore Enviro has 315 subsidiaries establishing 3 major industrial bases in Changsha Foshan and Shaoxing across the country
and 2 overseas factories in Thailand and Italy. Equipped with 22 R&D platforms and 361 service outlets it forms a comprehensive
support system. The Company focuses on urban service business with "intelligent equipment Smart Sanitation Cloud Platform and
smart services" as the core drivers. Relying on the most complete equipment matrix in the industry as the foundation and taking the
digital platform as the hub it forms intelligent solutions covering all scenarios of urban environmental cleaning. The services range
from road cleaning and maintenance snow and ice removal waste collection and transportation waste sorting municipal infrastructure
maintenance urban landscaping water area cleaning to marine sanitation. The Company also offers customers one-stop services
including planning design investment construction and operation of environmental sanitation projects.In terms of business operation the Company implements an "urban steward + sanitation integration" dual strategy and adapts to
the needs of different projects through diversified channels such as government procurement franchising and equity cooperation. The
intelligent system deeply integrates Internet of Things technology and municipal facility data and conducts digital control over all
elements of "personnel vehicles objects and tasks" in sanitation operations. With the service capabilities of the entire industrial chain
and the advantages of intelligent technology it creates a full-process and fully intelligent solution for urban cleaning services.
14Infore Environment Technology Group Co. Ltd. 2024 Annual Report
In 2024 the Company ranked No.1 for the increase in the annual contract amount of the Company's urban service projects under
operation and ranked No.3 for total contract amount of urban service projects under operation in the same industry. The Company
ranked No.1 in terms of sales of environmental protection equipment in 2024 for the 24th consecutive year in China.(II) Principal products
1. Intelligent equipment
The Company has the most comprehensive suite of environmental protection equipment of over 500 models within the industry
providing customers with a wide range of solutions including various traditional cleaning equipment new energy cleaning equipment
and cleaning robots. The Company's products cover cleaning and maintenance equipment waste collection and transportation
equipment waste compression station equipment kitchen food waste recycling equipment municipal and landscaping equipment
municipal emergency equipment photovoltaic cleaning equipment aerial work equipment integrated solutions for photovoltaics
energy storage and charging as well as intelligent small unmanned cleaning robots and other intelligent environmental protection
equipment.Market performance: In 2024 the Company's sales volume of environmental protection equipment reached 12173 units and the
market share reached 19.3%. Both the sales volume and the market share of the environmental protection equipment ranked first in the
market of the same industry. The Company's sales amount of environmental protection equipment has been ranked first in the domestic
industry for 24 consecutive years.
15Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Smart Sanitation Cloud Platform
The Smart Sanitation Cloud Platform developed by the Company is a pioneering platform in China's sanitation industry that
encompasses the full industrial chain with an investment of nearly RMB 250 million. Based on multi-modal large model technology
it builds a dual intelligent engine of "equipment networking + operation management" forming a technical foundation that covers
vertical industry data intelligent algorithms and AI-driven large models. By deploying the independently developed T-BOX remotecontrol terminal a “terminal pipeline and cloud" collaborative system covering autonomous cleaning equipment and traditionaloperation vehicles is established. It enables real-time interconnection of the four-dimensional elements of personnel vehicles objects
and tasks in urban services achieving standardized digital and intelligent sanitation operation management.Market performance: The Company's Smart Sanitation Cloud Platform integrates more than 40 software copyrights and patents
related to smart cities. The number of daily active users exceeds 70000. It has connected 168000 Internet of Things devices (sanitation
vehicles/sensors/intelligent terminals) and the online rate of the devices is 90%. The big data middle platform processes more than
260 million pieces of data per day successfully establishing the largest database of sanitation operation conditions in China.
3. Smart servicesThe Company implements the “digitalization and intelligence-driven" strategy deeply integrating Internet of Things big data andartificial intelligence technologies and builds an innovative smart city service operation system featuring "mechanized production +
smart operation + standardized service". Through the three core carriers of intelligent equipment the Smart Sanitation Cloud Platform
and the Environmental Sanitation APP it realizes the closed-loop management of the whole process of sanitation operation such as
intelligent dispatching real-time monitoring and emergency response. The system integrates intelligent algorithms and multi-source
data establishes a "standardized" service model promotes the digital collaboration of personnel vehicles objects and tasks empowers
the refined management of urban services and achieves intelligent and safe operation with fewer people and low energy consumption.Market performance: The Company began its foray into the field of urban intelligent cleaning services in 2021 with a forward-
looking perspective. From 2021 to 2023 the Company recorded a contract amount of RMB 8.435 billion RMB 9.251 billion and
RMB 7.652 billion respectively and an annual service contract amount of RMB 1.228 billion RMB 1.819 billion and RMB 1.553
billion respectively for urban services. In 2024 the Company's operating revenue from intelligent services increased by 14.41% YoY
to RMB 6.441 billion. The contract amount was RMB 4.447 billion and the annual service contract amount was RMB 1.486 billion.
16Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Other business of the Company primarily includes ventilator equipment manufacturing environmental monitoring and solid
waste treatment.The Company's ventilation machinery manufacturing covers ventilators mufflers dampers refrigerators magnetic levitation fans
blowers and nuclear-grade dampers for nuclear power subways tunnels rail transportation industrial and civil construction and other
areas. Its fans are mainly sold via a combination of direct sales and retailers.The Company's environmental monitoring business mainly covers the monitoring of smoke air quality haze water quality water
conservation soil and dust and the provision of an integrated one-stop service for environmental protection water conservation water
supply and smart cities. Product sales are the main business operations supplemented by the provision of services for operation and
maintenance.The Company's solid waste disposal business primarily encompasses the incineration of domestic waste to generate energy the
landfilling of domestic waste sewage treatment the recycling of food waste low-carbon recycling and utilization of renewable
resources and the utilization of solid waste in industrial parks. With waste-to-energy projects as the core the industrial parks of solid
waste recycling are equipped with treatment facilities for domestic waste disposal hazardous waste disposal sludge treatment food
waste treatment construction wastewater treatment ecological restoration of landfills leachate treatment and fly ash disposal. All of
these are organically coordinated to solve solid waste problems in a package. Their operating model is a public-private partnership
(PPP).(III) Principal technical achievements
1. Upgrading of cleaning robots
The Company's independently developed 5G intelligent cleaning robot has the capabilities of human-machine collaborative
operation and autonomous driving. Through the high-precision automated cleaning system it can achieve real-time positioning
autonomous navigation and intelligent obstacle avoidance in complex scenarios. Relying on the digital management system of the
Smart Sanitation Cloud Platform an all-weather intelligent monitoring and precise operation and maintenance service system has been
built. Since the first-generation product was launched in 2017 continuous technological breakthroughs have been achieved. In 2019
it was identified by the Ministry of Industry and Information Technology (MIIT) as a leading enterprise with key tasks in AI industry
innovation making it a top player in the innovation of intelligent cleaning robots; in 2021 it was rated as the excellent enterprise for
its second-generation model in the special evaluation of "Intelligent Sanitation Operation Robots".In 2024 the Company's upgraded third-generation product reached the Level 4 autonomous driving. After testing and verification
it has the ability of large-scale commercial use. Currently it has carried out regular operations in limited scenarios and is planned to be
fully launched on the market in 2025. This equipment supports the time-sequence management of preset tasks conducts off-peak
operations through the intelligent dispatching system and integrates the functions of automatic replenishment (water filling/charging)
17Infore Environment Technology Group Co. Ltd. 2024 Annual Report
and garbage removal realizing unmanned operation of the whole process. The remote management platform can monitor the equipment
status in real time implement remote control and environmental modeling. While reducing management costs and alleviating the
problem of labor shortage it effectively improves the working environment of sanitation workers shortens the exposure time under
harsh working conditions and provides a replicable solution for the intelligent transformation of the industry.In addition the Company's photovoltaic cleaning robot was promoted through long-term trials in 8 photovoltaic power stations
such as Changsha in Hunan Binzhou in Shandong and Wuhai in Inner Mongolia in 2024. The longest trouble-free operation time has
exceeded 12 months and it has been widely recognized by customers. It is expected to achieve large-scale market application in 2025.
2. Innovation of new energy products and technologies
In December 2024 the Company's 9000th new energy-powered environmental protection equipment rolled off the production
line. Since successfully developing the first domestic new energy road sweeper in 2007 the Company has leveraged its 18 years of
experience in the new energy market and 39 years of expertise in environmental protection equipment technology. Its new energy
products now cover more than 40 categories such as sweeping cleaning garbage collection and transportation and municipal services
with nearly 200 vehicle models. It has formed the most complete combination of new energy-powered sanitation vehicles in terms of
categories and models in China and has accumulated 187 industry-first achievements and 1155 patented technologies ranking first in
the industry and continuously leading the industry in technological innovation.The Company sold 2691 pure-electric powered sanitation vehicles in 2024 with a market share of 30.5% ranking No.1 in the
industry for three consecutive years according to the motor vehicle accident liability insurance data (hereinafter referred to as the
"insurance data") released by the National Financial Regulatory Administration. In the first quarter of 2025 the sales volume increased
significantly by 117% year-on-year and the market share rose to 35% firmly ranking first in the industry.The core competitive advantage comes from the independently developed INFORE intelligent management system which has
achieved energy consumption optimization in multiple key areas such as the EIC system design vehicle control upper installation
control system and drive system. The energy consumption of the whole vehicle has been reduced by about 20% and the system
efficiency has been increased by about 21% improving product performance and operational benefits. Based on the innovative battery
safety system vehicle control architecture and energy recovery technology the products have differentiated advantages such as long
endurance time good operation effect and low operation noise. The average market share has been stably maintained at over 30% in
the past three years setting a technical benchmark for the industrial development of new energy-powered environmental protection
equipment.
3. Comprehensive empowerment and upgrade of the Smart Sanitation Cloud Platform
In 2024 the Company completed a strategic upgrade of its Smart Sanitation Cloud Platform creating a comprehensive matrix thatincludes the "Smart Sanitation Cloud Platform" "IOT Platform" and “Autonomous Remote Cloud Platform" enhancing the digitalintegration of intelligent equipment connectivity and smart urban service operations while also reconstructing its intelligent central
architecture through AI-driven large models edge cloud computing and big data technologies. Three core technical modules have been
developed: The smart IoT system which supports 50 types of device protocols; the AI decision-making central system which constructs
12 intelligent algorithm models; and the data middleware platform which processes more than 260 million pieces of data per day and
has built the largest sanitation operation database in China. Currently the platform has over 70000 active daily users and connects
168000 IoT devices including environmental protection vehicles sensors and smart terminals. The device online rate remains stable
at 90% while equipment utilization efficiency has increased by 16%. Additionally overall costs have decreased by 8% and
management response times have been reduced to the minute level.In the future the Company will continue to innovate in technical fields such as intelligent networking Smart Sanitation Cloud
Platform and algorithm models forming a digital foundation covering the entire chain of urban services. Based on massive industry
data assets it will actively promote the application of AIGC technology to develop professional models in vertical fields such as
intelligent cleaning robots and autonomous equipment and create a "cloud brain" system with self-evolving capabilities in the
18Infore Environment Technology Group Co. Ltd. 2024 Annual Report
sanitation industry.III. Analysis of Core Competitiveness
1. R&D leadership - a leader in technological innovation and a formulator of industry standards
Scientific research foundation: The Company's environmental protection equipment R&D has its roots in a national-level scientific
research institute providing a profound scientific research foundation. It has always been focused on independent innovation and
industrial upgrading. From the development of the first domestic road sweeper in 1988 to nearly a hundred groundbreaking products
including the industry's first pure electric and brushless models it has established a legacy of innovation. For 24 consecutive years the
Company has ranked first in domestic environmental protection equipment sales holding the most cutting-edge core technologies and
offering the most comprehensive product line in the industry.Standardization influence: The Company has led or contributed to the development of more than 80% of national industry local
and group standards having released a total of 83 standards including 10 national and 23 industry ones. In 2024 the Company further
strengthened its leadership in standardization by leading or participating in the formulation of 3 international standards 10 national
and industry standards and 9 local and group standards. The Energy Efficiency Grades rating and Testing Methods for Electric Road
Sweeper and Electric Road Washing Sweeper (T/CAAMTB 110-2022) compiled by the Company was recognized as a typical
promotional case for 2024 by the Ministry of Industry and Information Technology.Core technology library: The Company has developed 160 core technologies in key fields including 33 major disruptive
technologies 43 cutting-edge leading technologies and 84 key common technologies in the industry. Twenty-two of these technologies
have passed national-level appraisals recognized for their strong innovation high technical complexity and independent intellectual
property rights. Overall the Company's technology has reached an internationally advanced level with some technologies achieving
international leadership. In 2024 the Company applied for 264 patents obtained 269 patent authorizations while also passing the
IPMS intellectual property management system certification further consolidating its intellectual property protection system. By the
end of 2024 the Company held a total of 1316 valid patents including 621 invention patents continuously ranking first in the industry.R&D team: The Company has established an interdisciplinary R&D team of more than 1000 R&D personnel including technical
experts and high-end R&D talents in fields such as mechanical design and manufacturing intelligent sensing and control computer
software and algorithms electrical control and hydraulic transmission. It supports a comprehensive R&D system covering demand
insight technical pre-research product development and scenario verification. Additionally the Company has built an innovation
mechanism driven by both technical R&D and market demand.
2. High intelligent manufacturing efficiency - large-scale delivery and rapid response empowered by lean production
The Company has established three clusters of intelligent manufacturing bases in Central China South China and East China
creating a digital and intelligent manufacturing ecosystem covering a total area of about 1333333.33 square meters. It has implemented
digital and intelligent systems for production quality control and supply chain management and introduced world-leading KUKA
industrial robots giving it the largest production capacity in the environmental protection equipment sector. Leveraging its supply
chain integration capabilities the Company can rapidly respond to market demands and maintain a leading position in the industry in
terms of production and manufacturing capabilities.In 2024 the Company successfully delivered 301 hydrogen energy equipment units to Baoding Hebei marking the largest single
order in the history of the hydrogen energy environmental protection equipment sector and setting a new delivery record for the industry.It has continuously maintained an undisputed leadership position in government bidding and procurement with its winning bid amount
consistently ranking first further underscoring its competitive edge in the high-end intelligent manufacturing sector.
3. Quality control assurance - a quality and safe network created via full-process quality control
The Company has established the industry's only verification center for the entire lifecycle of environmental protection equipment
19Infore Environment Technology Group Co. Ltd. 2024 Annual Report
that has passed the CNAS certification (No.: L20716) forming a dual-core system driven by R&D verification and production quality
control. The comprehensive 20000-square-meter experimental base includes a 15000-square-meter full-working-condition simulation
test field (featuring eight major functional test areas and 30 environmental simulation units) and a 5000-square-meter precision
experimental platform (housing six professional laboratories and seven major performance test systems) and is equipped with three
major testing systems such as HIL hardware-in-the-loop testing LMS vibration spectrum analysis and DEWETRON power flow
monitoring providing a robust digital verification capability across all product scenarios.The Company's CNAS-certified experimental base not only supports product testing and verification in the R&D stage but also
plays an integral role in full-process quality control for mass-produced products. A team of nearly a hundred professional quality
engineers and technicians supported by advanced modern testing equipment and cutting-edge detection technologies has established
a quality control system covering all aspects such as raw material incoming inspection production process monitoring and finished
product outgoing inspection. This ensures that the product quality is strictly controllable at all stages and effectively meets and exceeds
customer expectations.By implementing this refined quality control model throughout the entire lifecycle—from R&D and material supply to production
and manufacturing—the Company guarantees long-term product quality stability builds an excellent market reputation for long product
service life and stable and efficient operation and becomes a core competitive advantage for winning customer trust.
4. Service empowerment - digital and intelligent technology driving the full lifecycle service loop
After-sales service has become a critical touch point for deepening connections between enterprises and customers making it a
key factor in market competition. The Company has consistently embraced the philosophy that "service is the best marketing". Through
high-quality services it has built a strong market reputation and earned the trust and praise of a large customer base. With a focus on
"lifetime service" the Company is committed to providing customers with a seamless service experience throughout the entire product
lifecycle.The Company's "Speedy Service" brand has innovatively developed a "direct repair +" equipment service ecosystem. Leveraging
digital and intelligent technologies it has realized the intelligent upgrade of the full lifecycle service of equipment setting new industry
standards for service excellence. Currently the Company has established a unified digital platform for equipment services which
includes 361 directly-operated service outlets 739 service engineers and 400 five-star service stations and has formulated the "1314"
standardized service system: quickly responding to customer needs within 15 minutes; service personnel departing within 30 minutes
and arriving at material service areas within 2 hours; addressing general faults within 1 day and material faults within 3 days; offering
free maintenance services four times each quarter.In 2024 the Company actively implemented the concept of preventive services thoroughly implemented the principle that
"prevention is more important than maintenance" by carrying out more than 1500 professional customer training activities in total.Through systematic training the Company comprehensively enhances the professional skills and maintenance knowledge of customers'
equipment managers and operators effectively reducing equipment failure risks significantly improving product efficiency and
creating substantial value returns for customers.
5. Organizational development - dual-drive of corporate culture and elite management team
Corporate culture is the cornerstone of a company's creativity and unity as well as an important part of a company's key competitive
advantages. With the corporate mission of "Cleaner World Better Future" the Company always sticks to the corporate philosophy of
"simple and professional with quick execution" and the core values of "our clients are vital to us; our employees are our partners in our
endeavors; we aim to be achievement-oriented - competence beats mediocrity; and technology innovation is the basis for our
development." We adopt the development strategy with leading technology at the center being order-driven as the means and
motivating talent as the basis and are committed to becoming a respected and trusted leader in providing intelligent equipment and
services with cleaning robots at its core. Over the years the Company has deeply integrated cultural concepts into its business objectives
and daily management. Through benchmarking operations and refined management it has promoted the coordinated development of
20Infore Environment Technology Group Co. Ltd. 2024 Annual Report
various business segments branches and subsidiaries achieving high-quality growth.In terms of the development of the management team the Company has gathered a group of practical efficient and experienced
professionals. The Company's management team endorses the corporate culture and shares the same management philosophy. Each
member of the team complements the others' strengths and has clearly defined responsibilities thereby demonstrating strong cohesion
and execution. With its keen insight into industry trends and forward-looking vision the team accurately grasps market opportunities
to provide support for its development. At the same time the Company continues to strengthen its stock incentive and employee stock
ownership programs. It has also established a three-tier management framework consisting of cornerstone partnerships senior
partnerships and general partnerships deeply aligns the interests of core employees with the development of the enterprise creates a
"business community" that shares interests and risks and injects sustained momentum into its stable and long-term development.IV. Analysis of Principal Business
(I) Overview
In 2024 facing the current macroeconomic environment and industry competitive landscape the Company firmly implemented
its development strategy systematically promoted the implementation of the business plan around its core "5115" strategy and
continuously enhanced its core competitiveness by strengthening the foundation of internal management. In terms of the talent strategy
the Company strengthened its key teams and optimized the structure of the talent echelon to stimulate organizational efficiency; in the
field of technological innovation it increased investment in technology research and development based on its R&D advantages of
environmental protection equipment and used innovation to drive the transformation and upgrading of the smart urban services.In 2024 the Company generated RMB 13.118 billion in operating revenue and RMB 514 million in net profit attributable to the
listed company's shareholders demonstrating its stable profitability. As at the end of the reporting period the Company reported RMB
29.636 billion in total assets and RMB 17.519 billion in net assets attributable to the listed company's shareholders with the asset
structure continuously optimized. During the reporting period the Company's core business experienced strong growth. The urban
services segment saw significant expansion while the environmental protection equipment sector maintained its industry-leading
position laying a solid foundation for high-quality development.
1. Ranked No.2 for the increase in annual amount of urban service contracts in 2024
According to Huanjing Sinan Infore Enviro continued to make efforts in the field of urban services in 2024. It signed 76 urban
service projects across 20 Chinese provinces and its new contracts have an annual amount of RMB 1.486 billion ranking No.2 in the
industry. The operating revenue from urban services throughout the year increased by 14.41% YoY to RMB 6.441 billion and the total
contract amount increased by RMB 4.447 billion demonstrating strong market expansion capabilities. As at the end of the reporting
period the Company was running 262 urban service projects. The total contract amount of the projects under operation amounted to
RMB 61.285 billion with an annual contract amount of RMB 7.172 billion. Additionally the total amount of executory contracts stood
at RMB 39.383 billion. The substantial project reserves have created a strong foundation for the Company's sustainable development
positioning it as an industry leader in terms of operational stability.
2. Ranked No.1 in terms of sales of environmental protection equipment in 2024
In 2024 the sales of the Company's environmental protection equipment achieved steady growth. The operating revenue was
RMB 5.187 billion a year-on-year increase of 2.01% ranking No.1 in the industry in China for the 24th consecutive year. According
to the motor vehicle accident liability insurance data in 2024 the Company's sales volume of environmental protection equipment
reached 12173 units and the market share reached 19.3%. Both the sales volume and the market share of the environmental protection
equipment ranked first in the market of the same industry.
3. Ranked No.1 in terms of sales of new energy-powered environmental protection equipment in 2024
21Infore Environment Technology Group Co. Ltd. 2024 Annual Report
In 2024 the Company achieved exceptional performance in new energy-powered environmental protection equipment. According
to the motor vehicle accident liability insurance data the Company sold 2691 pure electric environmental protection vehicles in 2024
with a market share of 30.5%. This marks the third consecutive year the Company has ranked No. 1 in the industry solidifying its
leadership in the development of the new energy-powered environmental protection equipment market.
4. Building the foundation with the strategy of flagship products and expanding globally
Emergency drainage equipment - a qualitative leap in the new market
In 2024 the Company achieved a strategic breakthrough in the emergency drainage equipment market. Leveraging years of
technical expertise and addressing key equipment challenges the Company has optimized the overall vehicle performance significantly
enhancing the operational efficiency and safety standards of its drainage equipment. This has garnered strong recognition in the market.In 2024 the Company secured new orders for emergency drainage equipment totaling RMB 710 million marking a remarkable year-
on-year increase of 3450% compared to 2023.Aerial work equipment - initial success of the new business layout
In 2024 the Company made significant strides in its globalization strategy for aerial work equipment. By establishing a
professional company for aerial work equipment and a core technical team of 30 specialists the Company has successfully overcome
key technical challenges such as developing permanent magnet synchronous drive ensuring the stability of lightweight sinking boom
trucks and implementing multiple safety protection measures. Additionally the innovative design of "one machine with multiple
functions" has been realized. In 2024 the Company successfully mass-produced three self-developed vehicle models: 4-ton/23-meter
8-ton/22-meter aerial work vehicles and 12-ton multifunctional tree trimming vehicles filling the gap in special equipment for street
tree trimming in the segmented market. Many products are under research and development further expanding the product portfolio.The Company's globalization strategy for aerial work equipment has now entered the phase of achievement transformation
demonstrating strong development momentum.Globalization strategy - remarkable achievements in overseas market expansion
The Company actively expands its presence in overseas markets through export trade and the strategic establishment of overseas
factories accelerating its globalization process. In 2024 the Company's newly acquired overseas orders amounted to RMB 92.6 million
marking a 135% year-on-year increase and showcasing its strong market expansion capabilities. As the first company in China's
environmental protection equipment industry to establish overseas production facilities the Company continues to deepen its global
industrial footprint. In 2024 it made significant strides with the establishment of new production bases in Thailand and Italy marking
a key milestone in the localized manufacturing of environmental protection equipment and positioning the Company for greater market
share in Southeast Asia and Europe. Leveraging its core strengths in R&D intelligent manufacturing quality control and brand
development the Company will continue to strengthen international partnerships and optimize its global market strategy. By integrating
resources and reinforcing local operations it aims to provide superior intelligent cleaning equipment and solutions to global customers
creating new growth opportunities for its intelligent equipment business and advancing its strategic development on the international
stage.
5. Focusing on principal business to improve quality and efficiency for high-quality development
Focusing on the "Smart Sanitation" strategy and prioritizing high-quality development the Company explored multiple methods
for improving its asset operation capabilities. These efforts focus on reducing existing assets while controlling the growth of new ones.The Company actively declined high-risk orders strengthened risk-accountability mechanisms improved sales revenue recovery and
accelerated operational turnover efficiency. During the reporting period the Company gradually adjusted its non-core business through
asset divestitures and other means and revitalized existing resources and inefficient assets effectively improving its asset operation
ability and operation quality. In 2024 the Company recorded RMB 13.118 billion in operating revenue representing a YoY increase
of 2.01% and 14.41% in gross profit margin from its two principal business segments: intelligent equipment and smart services. By
optimizing its business structure and enhancing operational efficiency the Company has successfully met its goals of improving quality
22Infore Environment Technology Group Co. Ltd. 2024 Annual Report
and efficiency laying a solid foundation for sustainable high-quality development.
6. High cash dividends for shareholders
The Company has always adhered to the concept of "sharing development achievements with shareholders" continuously
implemented a positive and stable profit distribution policy and effectively repaid investors' trust with high cash dividends. According
to the 2024 profit distribution plan (proposed) approved at the tenth meeting of the Tenth Board of Directors a cash dividend of RMB
1.89 (tax inclusive) per 10 shares will be distributed to the shareholders based on the total share capital (minus shares in the Company's
repurchase account) on the date of record for the plan. A total cash dividend of around RMB 599 million (tax inclusive) is expected to
be distributed accounting for 116.56% of the net profit attributable to the listed company's shareholders in 2024. As the proposed plan
is awaiting the approval of the General Meeting of Shareholders the actual dividend amount will be disclosed in the relevant
announcements.In the past three years (2022-2024) the Company is expected to pay a total of RMB 1.437 billion in cash dividends (including the
amount related to share repurchase cancellations) accounting for 83.25% 79.43% and 134.89% of the net profit attributable to the
listed company's shareholders respectively. The stable high-proportion dividend mechanism fully reflects the Company's business
philosophy of attaching importance to shareholder returns and fulfilling its dividend commitment.
7. Active fulfillment of social responsibility as part of its corporate responsibility
In 2024 while advancing high-quality development the Company fulfilled its social responsibility as it got involved in poverty
alleviation and disaster relief efforts demonstrating its commitment through tangible actions.In terms of poverty alleviation the Company aligned itself with the national rural revitalization strategy and played a proactive
role in social welfare initiatives. It carried out targeted poverty alleviation programs in Luanchuan County providing assistance to
those in need. The Company also made ongoing donations to various relief and charitable organizations including disability assistance
funds and other welfare foundations. These donations supported projects focused on poverty alleviation education healthcare elder
care disaster relief innovative poverty reduction efforts and public welfare initiatives. By addressing the needs of vulnerable groups
the Company contributed significantly to the development of a more harmonious society.In emergency disaster relief in response to extreme weather events such as typhoons and heavy rainfall causing floods the
Company acted swiftly. It formed an emergency support team to rush to disaster-stricken areas like Huarong County Pingjiang County
in Yueyang City and Yisuhe in Xiangtan City leading rescue and relief operations. By establishing an emergency rescue mechanism
in partnership with local customers and partners arranging 24-hour duty coverage deploying professional engineers to ensure the
smooth operation of work vehicles and distributing supplies to affected areas the Company played a vital role in restoring production
and normalcy. By fulfilling its corporate social responsibilities with professional capabilities and humanitarian efforts the Company
earned widespread recognition and praise from all sectors of society.(II) Revenue and cost
(1) Breakdown of operating revenue
Unit: RMB
20242023
As a percentage As a percentage YoY
Amount Amount change of operating of operating
revenue revenue
Total revenue 13117894323.95 100% 12631050967.34 100% 3.85%
Sector
23Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Smart urban
11628665569.0688.65%10715122532.5184.83%8.53%
service
Others 1489228754.89 11.35% 1915928434.83 15.17% -22.27%
Product
Intelligent
5187389892.0239.55%5085372879.1440.26%2.01%
equipment
Smart service 6441275677.04 49.10% 5629749653.37 44.57% 14.41%
Others 1489228754.89 11.35% 1915928434.83 15.17% -22.27%
Region
Domestic 13048298182.52 99.47% 12584153957.04 99.63% 3.69%
Overseas 69596141.43 0.53% 46897010.30 0.37% 48.40%
Wholesale
Direct sales 11498614774.38 87.66% 11172859318.43 88.46% 2.92%
Retail 1619279549.57 12.34% 1458191648.91 11.54% 11.05%
(2) Sectors products regions or sales models accounting for over 10% of operating revenue or profit
□ Applicable □ Not Applicable
Unit: RMB
YoY change
Gross YoY change in
YoY change in in gross
Operating revenue Operating cost profit Operating
operating cost profit
margin revenue
margin
Sector
Smart urban
11628665569.069125395459.1521.53%8.53%9.02%-0.35%
service
Others 1489228754.89 1136160336.20 23.71% -22.27% -17.93% -4.03%
Product
Intelligent
5187389892.023845315392.6525.87%2.01%4.50%-1.77%
equipment
Smart
6441275677.045280080066.5018.03%14.41%12.56%1.35%
service
Others 1489228754.89 1136160336.20 23.71% -22.27% -17.93% -4.03%
Region
Domestic 13048298182.52 10209225469.82 21.76% 3.69% 5.02% -0.99%
Overseas 69596141.43 52330325.53 24.81% 48.40% 56.96% -4.10%
Wholesale
Direct sales 11498614774.38 9022522784.52 21.53% 2.92% 4.22% -0.98%
Retail 1619279549.57 1239033010.83 23.48% 11.05% 12.86% -1.23%
The Company's principal business data for the year was adjusted to take into account revised statistical standards that were updated
□ Applicable □ Not Applicable
24Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(3) Whether revenue from goods sales higher than revenue from rendering services
□ Yes □ No
SectorSector Item Unit 2024 2023 YoY change
Sales Unit 14368 14903 -3.59%
Intelligent
Production Unit 15020 15216 -1.29%
equipment
Inventory Unit 2599 1947 33.49%
Explanation of data with YoY differences that exceed 30%
□ Applicable □ Not Applicable
The inventory of intelligent equipment increased by 33.49% compared with the end of the previous year mainly due to the
Company's advance stocking in response to market demand.
(4) Fulfillment of material sales/procurement contracts signed during the reporting period
□ Applicable □ Not Applicable
(5) Breakdown of operating costs
Sector
Unit: RMB
20242023
As a
As a YoY Sector Item percentage
Amount change percentage of Amount
of operating
operating cost
cost
Smart urban
Raw materials 3759750746.26 41.20% 3578986019.54 42.77% 5.05%
service
Smart urban
Labor expense 2101248801.34 23.03% 1762380063.07 21.05% 19.23%
service
Smart urban
Depreciation 537201546.63 5.89% 504195683.78 6.02% 6.55%
service
Smart urban
Utilities 390164837.68 4.27% 403490139.16 4.82% -3.30%
service
Other
Smart urban
manufacturing 2337029527.24 25.61% 2121455841.26 25.34% 10.16%
service
overhead
Others Raw materials 604478948.73 53.20% 596485884.08 43.09% 1.34%
Others Labor expense 92458148.77 8.14% 125343062.94 9.05% -26.24%
Others Depreciation 136092771.46 11.98% 163979538.70 11.85% -17.01%
Others Utilities 11499634.55 1.01% 24003170.66 1.73% -52.09%
Other
Others manufacturing 291630832.69 25.67% 474630883.23 34.28% -38.56%
overhead
Note
25Infore Environment Technology Group Co. Ltd. 2024 Annual Report
The utilities and other manufacturing overhead of other business in this period decreased compared with the previous year
primarily because the Company disposed of Foshan Shunhe Environmental Protection Co. Ltd. on February 1 2024 and the decrease
in the corresponding business led to the decrease in the corresponding supporting facilities and cost expenses.
(6) Changes in the scope of consolidated financial statements for the reporting period
□ Yes □ No
For details of the changes in the scope of the consolidated financial statements during the reporting period please refer to Note 9
"Changes in the Scope of Consolidation" in Part X Financial Report.
(7) Material changes in the business products or services during the reporting period
□ Applicable □ Not Applicable
(8) Major customers and suppliers
Major customers of the Company
Total sales to top five customers (RMB) 941856465.54
Total sales to top five customers as a percentage of annual total
7.18%
sales
Total sales to related parties among top five customers as a
0.00%
percentage of annual total sales
Top five customers
As a percentage of annual
No. Customer Sales revenue (RMB)
total sales
1 Customer A 288840394.52 2.20%
2 Customer B 174235844.59 1.33%
3 Customer C 164269105.01 1.25%
4 Customer D 162399768.66 1.24%
5 Customer E 152111352.76 1.16%
Total -- 941856465.54 7.18%
Other information about major customers
□ Applicable □ Not Applicable
Major suppliers of the Company
Total purchases from top five suppliers (RMB) 1660501602.65
Total purchases from top five suppliers as a percentage of
24.29%
annual total purchases
Total purchases from related parties among top five suppliers as
0.00%
a percentage of annual total purchases
Top five suppliers
Purchase during the reporting As a percentage of total
No. Supplier
period (RMB) purchases
26Infore Environment Technology Group Co. Ltd. 2024 Annual Report
1 Supplier A 919390035.40 13.45%
2 Supplier B 262862016.81 3.84%
3 Supplier C 169438053.10 2.48%
4 Supplier D 161774523.89 2.37%
5 Supplier E 147036973.45 2.15%
Total -- 1660501602.65 24.29%
Other information about major suppliers
□ Applicable □ Not Applicable
(III) Expenses
Unit: RMB
Reason for material
2024 2023 YoY change
change
Selling expenses 713507964.56 784866753.52 -9.09% ——
Administrative
773511609.91726159237.456.52%——
expenses
Financial expenses 81006352.00 75321084.87 7.55% ——
R&D expenses 317117284.00 344030239.33 -7.82% ——
(IV) R&D investments
□ Applicable □ Not Applicable
Expected impact on
Name of major R&D
Objectives Progress Proposed goals future development
projects
of the Company
This helps the
To develop a small pure
3-ton pure electric To develop a small pure Launched on the Company improve
electric sweeper to increase
sweeper electric sweeper market its key competitive
market orders
advantages
To develop a small high- This helps the
High-pressure pure
To develop a small pure Launched on the pressure pure electric Company improve
electric cleaning
electric cleaning machine market cleaning machine to its key competitive
machine
increase market orders advantages
To develop a small pure This helps the
Pure electric rotary To develop a small pure Launched on the electric economical Company improve
sweeper electric economical sweeper market sweeper to increase market its key competitive
orders advantages
Second-generation 9- To improve the performance To develop a side-loading This helps the
ton side-loading self- of the original product and Launched on the self-handling garbage truck Company improve
handling garbage solve the existing problems market with a pushing head its key competitive
truck of the current product compression function advantages
This helps the
20-cubic-meter To solve the problem of the To increase the garbage
Launched on the Company improve
integrated docking low loading capacity of the loading capacity of the
market its key competitive
station existing product original product
advantages
2-ton miniature pure To improve the performance Launched on the To improve the mobility of This helps the
electric sweeper of the original product and market the product achieve Company improve
27Infore Environment Technology Group Co. Ltd. 2024 Annual Report
increase the mobility and flexible and efficient its key competitive
flexibility of the product operation with low noise advantages
and meet the operation
requirements of various
scenarios
To develop a 4-ton four- This helps the
To expand the product
4-ton fire-fighting Launched on the wheel drive high-flow Company improve
spectrum to meet various
sprinkler market high-lift multi-purpose its key competitive
market product demands
fire-fighting sprinkler advantages
To develop an economical
To improve the performance and efficient garbage
This helps the
Horizontal direct of the original product transfer equipment match it
Launched on the Company improve
pressure compressor increase the loading capacity with a new type of
market its key competitive
LYS40A and enhance the product lightweight garbage bin
advantages
competitiveness and further increase the
loading capacity
To optimize the performance
This helps the
Vertical direct of the original product and To improve the
Launched on the Company improve
pressure garbage improve product efficiency performance of the existing
market its key competitive
compressor LYV30A and environmental protection product
advantages
performance
To create a small garbage
To expand the product
station transfer equipment This helps the
spectrum to make the product
High-level split Launched on the that integrates high Company improve
flexibly adaptable to various
compressor LYG10A market adaptability high its key competitive
usage scenarios in cities and
environmental protection advantages
towns
and high efficiency
Information about R&D personnel
2024 2023 Change
Number of R&D personnel 1001 1212 -17.41%
R&D personnel as a
5.20%5.99%-0.79%
percentage of total staff
Education background of R&D personnel
Bachelor's degree 642 802 -19.95%
Master's degree 307 358 -14.25%
Doctoral degree 10 11 -9.09%
Others 42 41 2.44%
Age composition of R&D personnel
< 30 years 351 471 -25.48%
30~40 years 479 560 -14.46%
> 40 years 171 181 -5.52%
Information about R&D investments
2024 2023 Change
R&D investments (RMB) 317117284.00 352849905.78 -10.13%
R&D investments as a
2.42%2.79%-0.37%
percentage of operating
28Infore Environment Technology Group Co. Ltd. 2024 Annual Report
revenue
Capitalized R&D investments
0.008819666.45-100.00%
(RMB)
Capitalized R&D investments
as a percentage of total R&D 0.00% 2.50% -2.50%
investments
Reasons and impacts of material change in R&D personnel composition
□ Applicable □ Not Applicable
Reasons for significant YoY change in total R&D investments as a percentage of operating revenue
□ Applicable □ Not Applicable
Reasons and rationale for significant change in capitalization rate of R&D investment
□ Applicable □ Not Applicable
The capitalization rate of R&D investment decreased by 2.5% YoY mainly due to the fact that the investment in R&D projects in the
development stage during the reporting period was all expensed.(V) Cash flow
Unit: RMB
Item 2024 2023 YoY change
Subtotal of cash inflows from
13872479947.7514265101402.26-2.75%
operating activities
Subtotal of cash outflows from
12710430466.2712879544892.77-1.31%
operating activities
Net cash flows from operating
1162049481.481385556509.49-16.13%
activities
Subtotal of cash inflows from
9316433927.591691155211.72450.89%
investing activities
Subtotal of cash outflows from
9116372798.062766885333.81229.48%
investing activities
Net cash flows from investing
200061129.53-1075730122.09118.60%
activities
Subtotal of cash inflows from
1397723020.381486267737.80-5.96%
financing activities
Subtotal of cash outflows from
1986232528.892462201245.03-19.33%
financing activities
Net cash flows from financing
-588509508.51-975933507.2339.70%
activities
Net increase in cash and cash
774071976.67-664519991.45216.49%
equivalents
Explanation of main impact factor of material change of the data YoY
□ Applicable □ Not Applicable
1) The cash inflows from investing activities increased by 450.89% YoY and the cash outflows from investing activities
increased by 229.48% YoY mainly due to the YoY increase in the purchase and redemption of wealth management products during
the reporting period. The net cash flows from investing activities increased by 118.60% YoY mainly due to the recovery of the
29Infore Environment Technology Group Co. Ltd. 2024 Annual Report
principal and interest of the loans formed by the disposal of subsidiaries and the recovery of performance compensation payments
during the reporting period;
2) The net cash flows from financing activities increased by 39.70% year-on-year mainly due to the year-on-year decrease in
cash paid for debt repayment.Explanation of reasons for the material difference between net cash flows from operating activities during the reporting period and
net profit for the year
□ Applicable □ Not Applicable
V. Analysis of Non-Core Business
□ Applicable □ Not Applicable
Unit: RMB
As a percentage of Reasons for Recurrent or non-recurrent
Amount
total profit generation
RMB 21424762.72 is the returns on
long-term equity investments calculated
Investment income -30889428.46 -4.76% —— using the equity method which is
recurrent; the other portion is non-
recurrent.Gain or loss on
changes in fair 0.00 0.00% —— No
value
Impairment of
-31710185.75 -4.89% —— No
assets
Non-operating
21214649.95 3.27% —— No
revenue
Non-operating
79294913.15 12.23% —— No
expenses
VI. Assets and Liabilities
1. Material changes of asset items
Unit: RMB
December 31 2024 January 1 2024 Reason for
As a percentage As a percentage Change material
Amount Amount
of total assets of total assets change
Cash and cash
5117995117.2217.27%4411376583.7815.19%2.08%——
equivalents
Accounts
6224430217.7721.00%5867669476.8620.20%0.80%——
receivable
Contract assets 94117942.03 0.32% 74803489.48 0.26% 0.06% ——
Inventories 1041115491.00 3.51% 971229637.15 3.34% 0.17% ——
Investment 1053133.20 0.00% 1138868.60 0.00% 0.00% ——
30Infore Environment Technology Group Co. Ltd. 2024 Annual Report
properties
Long-term
equity 682287056.09 2.30% 681629084.69 2.35% -0.05% ——
investment
Fixed assets 2259900141.60 7.63% 2338316124.14 8.05% -0.42% ——
Construction in
460662679.721.55%288057018.890.99%0.56%——
progress
Right-of-use
16456043.600.06%25125671.950.09%-0.03%——
assets
Short-term
113697615.880.38%126939855.260.44%-0.06%——
borrowings
Contract
239860672.030.81%306777173.571.06%-0.25%——
liabilities
Long-term
1987236842.436.71%1884356851.736.49%0.22%——
borrowings
Lease liabilities 7830870.16 0.03% 16170790.76 0.06% -0.03% ——
Intangible
5660386100.8119.10%5984348824.3920.60%-1.50%
assets
Offshore assets account for high proportion
□ Applicable □ Not Applicable
2. Assets and liabilities measured at fair value
□ Applicable □ Not Applicable
Unit: RMB
Gain or
loss on
Sales
changes Cumulative
Accrual of Purchase amount
Opening in fair changes in fair Other Closing
Item impairment amount during during
balance value value included in changes balance
during the period the period the
during equity
period
the
period
Financial assets
4.
Investments
15352-1407012829
in other -18700000.00
971.01000.0071.01
equity
instruments
Subtotal of
15352-1407012829
financial -18700000.00
971.01000.0071.01
assets
15352-1407012829
Total -18700000.00
971.01000.0071.01
Financial
0.000.00
liabilities
Whether any material changes occurred to the measurement attributes of the Company's material assets during the reporting period
□ Yes □ No
31Infore Environment Technology Group Co. Ltd. 2024 Annual Report
3. Restricted asset rights as at the end of the reporting period
Carrying amounts at
Item Closing balance Type of restriction Reason for restriction
the end of the period
Deposits escrow
Cash and cash equivalents 427777886.01 427777886.01 Guarantee freeze etc. accounts frozen due to
litigation preservation
Accounts receivable 440028528.05 417447902.95 Pledged Pledged
Endorsed or discounted
Notes receivable – bank acceptance 1734101.45 1290912.03 Endorsement or discount
but undue
Long-term accounts receivable and Factoring financing and Factoring financing and
1047731.00959813.58
non-current assets due within one year pledge with recourse pledge with recourse
Intangible assets 69926700.00 66896543.00 Mortgaged Mortgaged
100% equity interest in Biyang Fenghe
106118119.06 106118119.06 Pledged Mortgaged [Note]
New Energy Power Co. Ltd.
100% equity interest in Poyang
Greenlander Renewable Energy Co. 73614538.73 73614538.73 Pledged Mortgaged [Note]
Ltd.
75% equity interest in Lianjiang
120095125.17 120095125.17 Pledged Mortgaged [Note]
Company
Total 1240342729.47 1214200840.53
[Note]: The pledged amount refers to the Company's proportionate share in net assets of each entity.VII. Investments
1. Overview
□ Applicable □ Not Applicable
Investment amount for the reporting Investment amount for the prior period
Change
period (RMB) (RMB)
0.007056438.75-100.00%
2. Material equity investments made during the reporting period
□ Applicable □ Not Applicable
3. Material non-equity investments ongoing during the reporting period
□ Applicable □ Not Applicable
4. Financial investments
(1) Securities investments
□ Applicable □ Not Applicable
No such cases during the reporting period.
32Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(2) Derivatives investments
□ Applicable □ Not Applicable
No such cases during the reporting period.
5. Use of proceeds from fundraising activities
□ Applicable □ Not Applicable
(1) Overall use of proceeds
□ Applicable □ Not Applicable
Unit: RMB 10000
Total
As a
amount
percenta
Total of
ge of
amount proceed Share of
Net proceeds Accumulati Purpose
Total of Accumulati s with accumulati Total Proceeds
Listing amount used at ve amount and
Fundraisi amount proceed ve amount change ve proceeds amount left idle
Year date of of the end of proceeds tracking
ng type of s used of proceeds of use with of unused for over 2
securities proceeds of the with change of unused
proceeds during used (2) during change of proceeds years
(1) reporting of use proceeds
the the use
period
period reportin
(3)=(2)
g
/(1)
period
RMB 900
million
will
temporaril
y
Public replenish
offering working
of Novemb capital
202147618.9145733.63268.5104497.5104497.5
convertibl er 4 42104.97 28.89% 0 0 0.00% and the
062544
e 2020 remaining
corporate amount
bonds will be
used to
implemen
t recent
investmen
t projects.Tota 147618.9 145733.6 3268.5 104497.5 104497.5
----42104.9728.89%000.00%--
l 6 2 5 4 4
Explanation of the overall use of proceeds
According to the Approval of the Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. (Z.J.X.K.[2020] No. 2219) issued by the CSRC the lead underwriter of the Company Huaxing Securities Co. Ltd. (formerly known as Huajing Securities
hereinafter "Huaxing Securities") issued 14761896 convertible corporate bonds ("CBs") to the public with the offering price of RMB 100 and a par
value of RMB 100 for each CB raising a total of RMB 1476189600. Specifically priority allotment of 9405386 CBs were issued to original
shareholders of the Company accounting for 63.71% of the total amount of this public offering; 5304730 CBs were issued to public investors through
online channels accounting for 35.94% of the total amount of this public offering; 51780 CBs were to be underwritten by the lead underwriter
accounting for 0.35% of the total amount of this public offering. Proceeds in this offering had been remitted to the Company's raised fund supervision
account by the lead underwriter Huaxing Securities on November 10 2020 and the amount actually received after deducting RMB 15238100 of
33Infore Environment Technology Group Co. Ltd. 2024 Annual Report
underwriting and sponsorship fees (tax exclusive) was RMB 1460951500. After deducting RMB 3615300 (tax exclusive) of external fees that were
directly related to CB such as online offering expenses printing fee for the prospectus fees of the reporting accountant counsel fee credit rating fee
information disclosure expenses and issuance commission fee the net amount of proceeds from this offering was RMB 1457336200. The availability
of the above-mentioned proceeds has been verified by Pan-China Certified Public Accountants LLP in its Capital Verification Report (T.J.Y. [2020]
No.490).As at December 31 2024 the accumulated use of fundraising proceeds was RMB 421049700 and the total amount of fundraising proceeds not yet
used was RMB 1044975400.
(2) Projects with committed investment of proceeds
□ Applicable □ Not Applicable
Unit: RMB 10000
Whethe Investme
Date Cumulati Whethe
r Accumulati nt
Investme when ve r there
Committed projects Adjusted ve progress Benefits Whethe
nt the benefits are
Name of Listing investment have Total total investment as at the realized r the
amount projects realized material
the date of projects and Project been amount investme amount as end of during estimate
during are as at the changes
financing securitie investment nature changed of nt at the end the the d return
the ready end of in the
project s of excessive (includi proceeds amount of the reporting reportin is
reporting for their the project
proceeds ng (1) reporting period g period realized
period intende reporting feasibili
partial period (2) (3)=(2)/(
d use period ty
change) 1)
Committed investment projects
The project
of the
Infore
Novemb comprehens Operation Decemb Not
Converti 129638. 129638. 8162.4 21181.5
er 4 ive smart managemen No 3268.55 26009.84 20.06% er 31 applicab No
ble 49 49 7 1
2020 sanitation t 2026 le
Bonds
allocation
center
No
No
Infore Replenishm Replenishm benefit
Novemb Not benefit Not
Converti ent of ent of 16095.1 16095.1 generate
er 4 No 0 16095.13 100.00% applicab generated applicab No
ble operating working 3 3 d
2020 le separatel le
Bonds capital capital separate
y
ly
145733.145733.8162.421181.5
Subtotal of committed investment projects -- 3268.55 42104.97 -- -- -- --
626271
Investment of excessive proceeds
Not applicable
145733.145733.8162.421181.5
Total -- 3268.55 42104.97 -- -- -- --
626271
On April 26 2024 the Proposal on the Delay of Part of the Projects of Proceeds from the
Public Issuance of A-share Convertible Corporate Bonds was deliberated and approved at the
sixth meeting of the Tenth Board of Directors and the sixth meeting of the Tenth Board of
Supervisors. The Company agreed to adjust the investment progress by changing the date for the
Project-by-project details and reasons for failure to
intended use of the above projects to December 31 2026. The adjustment was made because the
realize planned progress and expected return
investment progress of the project of the comprehensive smart sanitation allocation center was
(including the reasons for choosing "N/A" for
mainly based on the current business size of the Company's sanitation service projects. The
"Whether the expected return is realized")
project's investment progress fell short of expectations due to the impact of the overall decline in
demand for sanitation equipment and the designation of or restrictions on sanitation equipment
suppliers for some projects on the number of orders. Therefore the Company adjusted the
project's investment progress to ensure the quality and full use of proceeds.
34Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Explanations of the material changes in the project
None
feasibility
Amount purpose and progress of excessive proceeds Not applicable
Location changes in the implementation of
Not applicable
investment projects of the proceeds
Adjustments to the implementation method of
Not applicable
investment projects of the proceeds
Early investment and placement of the investment
Not applicable
projects of the proceeds
Applicable
The Proposal on Using Part of the Idle Fundraising Proceeds to Replenish Working Capital
was deliberated and approved at the fourth meeting of the Tenth Board of Directors and the fourth
meeting of the Tenth Board of Supervisors held on October 28 2023 allowing the Company to
use idle fundraising proceeds of no more than RMB 1 billion for temporary replenishment of
working capital which shall be used for the production and operation related to its principal
business with a tenor of no more than 12 months as at the date when the Proposal was deliberated
and approved by the Board of Directors. The Company has returned all the RMB 1 billion of
Temporary replenishment of working capital with fundraising proceeds used to temporarily replenish working capital to the relevant special
idle proceeds account for raised funds on October 25 2024 and the usage period did not exceed 12 months.The Proposal on Using Part of the Idle Fundraising Proceeds to Replenish Working Capital
was deliberated and approved at the fourth meeting of the Tenth Board of Directors and the fourth
meeting of the Tenth Board of Supervisors held on October 28 2024 allowing the Company to
use idle fundraising proceeds of no more than RMB 900 million for temporary replenishment of
working capital which shall be used for the production and operation related to its principal
business with a tenor of no more than 12 months as at the date when the Proposal was deliberated
and approved by the Board of Directors. As at December 31 2024 the balance of the idle
fundraising proceeds used by the Company for temporary replenishment of working capital was
RMB 900 million.The amount of and reasons for the balance of the
Not applicable
proceeds from the project implementation
The Proposal on Using Part of the Idle Fundraising Proceeds to Replenish Working Capital
was deliberated and approved at the fourth meeting of the Tenth Board of Directors and the fourth
meeting of the Tenth Board of Supervisors held on October 28 2024 allowing the Company to
use idle fundraising proceeds of no more than RMB 900 million for temporary replenishment of
working capital which shall be used for the production and operation related to its principal
Purpose and tracking of the unused proceeds business with a tenor of no more than 12 months as at the date when the Proposal was deliberated
and approved by the Board of Directors. As at December 31 2024 the balance of the idle
fundraising proceeds used by the Company for temporary replenishment of working capital was
RMB 900 million. The other unused proceeds of RMB 144975400 were kept in the designated
proceeds account in the form of demand deposits to be used for the construction of the
corresponding investment projects.The Company has the behavior of commingling the proceeds account with its own funds.Guangdong Infore Urban Service Intelligent Technology Co. Ltd. a subsidiary of the Company
as the entity for project implementation its general account used for fundraising proceeds also
receives other funds in addition to fundraising proceeds and fails to fully meet the management
Problems in the use of proceeds and disclosure or
requirement of only receiving fundraising proceeds. In response to this situation the Company
other cases
its subsidiary Guangdong Infore Urban Service Intelligent Technology Co. Ltd. Industrial and
Commercial Bank of China Limited Foshan Beijiao Sub-branch and Huaxing Securities Co.Ltd. have signed the supplementary Four-party Supervision Agreement on Fundraising Proceeds
to ensure the special account storage and special use of proceeds.
(3) Changed projects of proceeds
□ Applicable □ Not Applicable
35Infore Environment Technology Group Co. Ltd. 2024 Annual Report
No such cases during the reporting period.VIII. Sales of Material Assets and Equity Investments Material Assets
1. Sale of material assets
□ Applicable □ Not Applicable
No such cases during the reporting period.
2. Sales of material equity investments
□ Applicable □ Not Applicable
IX. Analysis of Major Subsidiaries and Joint Stock Companies
□ Applicable □ Not Applicable
Major subsidiaries and joint stock companies with an over 10% influence on the Company's net profit
Unit: RMB
Princip
Company Type of al Registered Operating Operating
Total assets Net assets Net profit
name company activitie capital revenue profit
s
Changsha
Zoomlion Smart
Subsidiar 23515298 19078974772. 8349401480. 11546153549. 832495746. 672805295.Environme urban
y 00 25 35 77 18 67
nt Industry service
Co. Ltd.Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not Applicable
Acquisition and
disposal of
Company name Effects on the overall operations and performance
subsidiaries during
the reporting period
Maoming Yingsheng Urban
Incorporation Positive effects on the Company's business
Environment Service Co. Ltd.Guangzhou Yingsheng Environment
Incorporation Positive effects on the Company's business
Co. Ltd.Shaodong Yingsheng Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Pingdingshan Zhongying Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Pingdingshan Yinglian Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Huizhou Tongying Environment
Incorporation Positive effects on the Company's business
Industry Co. Ltd.Luanzhou Zhongying Environmental
Incorporation Positive effects on the Company's business
Service Co. Ltd.Chunhua Yinghe Urban Environment
Incorporation Positive effects on the Company's business
Service Co. Ltd.Foshan Shunde Yinggui Urban
Incorporation Positive effects on the Company's business
Environment Service Co. Ltd.
36Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Hefei Yingsheng Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Zhongyang Tongying Environmental
Incorporation Positive effects on the Company's business
Sanitation Service Co. Ltd.Nantong Gaoying Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Shenzhen Longhua Yinglian
Incorporation Positive effects on the Company's business
Environment Co. Ltd.Hanshou Tongying Environmental
Incorporation Positive effects on the Company's business
Sanitation Service Co. Ltd.Zhongshan Yingluo Environment
Incorporation Positive effects on the Company's business
Technology Co. Ltd.Suzhou Lianying Environment
Incorporation Positive effects on the Company's business
Technology Co. Ltd.Changfeng Tongying Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Xinning Zhongying Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Guangdong Infore Low-carbon
Incorporation Positive effects on the Company's business
Recycling Technology Co. Ltd.Shenyang Yinghe Urban Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Zhaoqing Yingjie Environmental
Incorporation Positive effects on the Company's business
Service Co. Ltd.Jiaxing Yingjia Urban Service Co. Ltd. Incorporation Positive effects on the Company's business
Tongdao Yinglian Jiujie Environment
Incorporation Positive effects on the Company's business
Industry Co. Ltd.Xiangtan Yingsheng Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Taihu Yinghe Environmental Sanitation
Incorporation Positive effects on the Company's business
Management Co. Ltd.Chongqing Jiangbei Yingsheng
Environmental Sanitation Service Co. Incorporation Positive effects on the Company's business
Ltd.Huizhou Yinghe Environment Industry
Incorporation Positive effects on the Company's business
Co. Ltd.Guangze Yingze Environment
Incorporation Positive effects on the Company's business
Development Co. Ltd.Yongzhou Lingling Yingsheng
Environmental Sanitation Management Incorporation Positive effects on the Company's business
Co. Ltd.Datong Yingsheng Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Tangshan Zhongying Environmental
Incorporation Positive effects on the Company's business
Service Co. Ltd.Foshan Shunde Yinghe Urban
Incorporation Positive effects on the Company's business
Environment Service Co. Ltd.Xining Yinglian Urban Environment
Incorporation Positive effects on the Company's business
Service Co. Ltd.Maoming Binhai New Area Yingbin
Incorporation Positive effects on the Company's business
Urban Environment Service Co. Ltd.Suzhou Wujiang Yingzhiyuan
Environmental Sanitation Management Incorporation Positive effects on the Company's business
Co. Ltd.Infore Environment Holdings Co. Ltd. Incorporation Positive effects on the Company's business
37Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Meishan Yinglian Urban Environmental
Incorporation Positive effects on the Company's business
Sanitation Service Co. Ltd.Foshan Shunde Yinglun Renewable
Incorporation Positive effects on the Company's business
Resources Co. Ltd.Dongguan Yinglian Urban Environment
Incorporation Positive effects on the Company's business
Service Co. Ltd.Yangjiang Yingfei Environment
Incorporation Positive effects on the Company's business
Technology Co. Ltd.Linqu Yingchuang Environment
Incorporation Positive effects on the Company's business
Technology Co. Ltd.Dongguan Hefuying Environment
Incorporation Positive effects on the Company's business
Industry Co. Ltd.Zouping Yinglian Urban Environmental
Incorporation Positive effects on the Company's business
Service Co. Ltd.Xiapu Yingjia Environmental Service
Incorporation Positive effects on the Company's business
Co. Ltd.Infore Environment Intelligent
Environmental Sanitation Equipment Incorporation Positive effects on the Company's business
(Thailand) Co. Ltd.Taizhou Yinglian Environmental
Incorporation Positive effects on the Company's business
Management Co. Ltd.Zhanjiang Xiashan Yingde Renewable
Incorporation Positive effects on the Company's business
Resources Co. Ltd.Qianxinan Tongying Environmental
Incorporation Positive effects on the Company's business
Management Co. Ltd.Anshan Lianying Urban Environmental
Incorporation Positive effects on the Company's business
Sanitation Management Co. Ltd.Shangsi Guiying Environmental
Incorporation Positive effects on the Company's business
Technology Co. Ltd.Foshan Chancheng Yingsheng
Incorporation Positive effects on the Company's business
Renewable Resources Co. Ltd.Fujian Pucheng Yingrun Environmental
Incorporation Positive effects on the Company's business
Service Co. Ltd.Luoding Yingxin Urban Environmental
Incorporation Positive effects on the Company's business
Service Co. Ltd.Shenzhen Longgang Yinglian Asset optimization; No material impact on the Company's
De-registration
Environmental Service Co. Ltd. production operation and performance
Shenzhen Yinglian Landscaping Asset optimization; No material impact on the Company's
De-registration
Engineering Co. Ltd. production operation and performance
Shengzhou Yinglian Environmental Asset optimization; No material impact on the Company's
De-registration
Sanitation Management Co. Ltd. production operation and performance
Ji'an Zhongfeng Environmental Asset optimization; No material impact on the Company's
Transfer
Technology Co. Ltd. production operation and performance
Chongqing Zhongying Environmental Asset optimization; No material impact on the Company's
Transfer
Sanitation Service Co. Ltd. production operation and performance
Shengzhou Zhonglian Environmental Asset optimization; No material impact on the Company's
Transfer
Engineering Co. Ltd. production operation and performance
Heze Yingsheng Environmental Asset optimization; No material impact on the Company's
Transfer
Sanitation Service Co. Ltd. production operation and performance
Wuhan Tongying Environmental Asset optimization; No material impact on the Company's
Transfer
Sanitation Management Co. Ltd. production operation and performance
Zhoushan Yinghe Environmental Asset optimization; No material impact on the Company's
Transfer
Sanitation Service Co. Ltd. production operation and performance
Foshan Shunhe Environmental Asset optimization; No material impact on the Company's
Transfer
Protection Co. Ltd. production operation and performance
38Infore Environment Technology Group Co. Ltd. 2024 Annual Report
X. Structural Entities Controlled by the Company
□ Applicable □ Not Applicable
XI. Future Prospects of the Company
(I) Market opportunities
1. The 2024 national policies are favorable for the development of the sanitation industry
On January 11 the Central Committee of the Communist Party of China and the State Council issued the Opinions on
Comprehensively Advancing the Beautiful China Initiative promoting the experience of Zhejiang Province's "Ten Million Project"
adapting it to local conditions and calling for a coordinated effort to advance rural ecological revitalization and improve rural living
environments. It emphasizes improving waste classification management and aims to achieve full coverage of waste sorting in
residential communities in cities at the prefecture level and above.On February 3 the Central Committee of the Communist Party of China and the State Council issued the Opinions on Drawing
on and Applying the Experience from the Green Rural Revival Program in Zhejiang Province to Effectively Promote All-around Rural
Revitalization requiring improvements and upgrading in rural living environments the enhancing of the rural domestic waste sorting
collection transportation and disposal system which directly benefits equipment used for waste collection transportation and transfer.On March 7 the State Council issued the Notice on Printing and Distributing the Action Plan for Promoting Large-Scale
Equipment Renewal and Trade-in of Consumer Goods requiring the acceleration of equipment renewals in the fields of construction
and municipal infrastructure. In addition centering on advancing new urbanization combined with the promotion of urban renewal
and the renovation of old residential areas it is required to categorize updates and renovations in areas such as residential elevators
water heat and gas supply sewage treatment sanitation urban lifeline projects and security. From an operational standpoint due to
the delayed implementation of policies many equipment renewal projects in 2024 are expected to be fully implemented in 2025.On April 1 the General Office of the Ministry of Housing and Urban-Rural Development issued the Notice on Effective Urban
Drainage and Waterlogging Prevention in 2024 focusing on promoting the construction of drainage pipe networks pumping stations
storage and regulation facilities drainage channels and key protection facilities and accelerating the development of an urban drainage
and waterlogging prevention engineering system featuring "source reduction pipe-network discharge a combination of storage and
discharge and emergency response to over-standard situations". It is necessary to make good use of the national debt funds to speed
up the project construction progress and give full play to the benefits as soon as possible.On April 8 the National Development and Reform Commission issued the Notice on Printing and Distributing the Measures for
the Management of Central Budget Investment on Special Projects in Pollution Control which will focus on supporting the
construction of urban and rural environmental infrastructure the clean production transformation of key industries the environmental
governance of key areas the water-pollution control and water-saving etc. The construction of urban environmental infrastructure
includes projects such as the sorting of urban domestic waste the establishment of collection transportation and transfer systems the
construction and upgrading of domestic waste incineration treatment facilities the resource utilization of kitchen waste and the
construction of centralized hazardous waste disposal facilities.On May 7 in accordance with the Provisions on Central Ecological and Environmental Protection Inspections with the approval
of the Central Committee of the Communist Party of China and the State Council the third-round and second-batch of central ecological
and environmental protection inspections were fully launched. Seven central ecological and environmental protection inspection teams
(hereinafter referred to as the inspection teams) were established to conduct approximately one-month inspections in seven provinces
(municipalities) namely Shanghai Zhejiang Jiangxi Hubei Hunan Chongqing and Yunnan and conduct overall river basin and
provincial-level inspections.
39Infore Environment Technology Group Co. Ltd. 2024 Annual Report
On July 24 the National Development and Reform Commission and the Ministry of Finance issued the Notice on Several
Measures to Strengthen Support for Large-Scale Equipment Renewals and Trade-in of Consumer Goods making overall arrangements
for approximately RMB 300 billion of ultra-long-term special treasury bond funds to strengthen support for large-scale equipment
renewals and trade-in of consumer goods.On August 5 the People's Bank of China the National Financial Regulatory Administration and the Ministry of Agriculture and
Rural Affairs issued the Notice on Carrying out the Special Action for Drawing on and Applying the Experience from the "Ten Million
Project" to Strengthen Financial Support for the All-Round Rural Revitalization emphasizing the need to increase financial support
for improvements in rural living environments and ecological conservation. It also encourages active engagement with actions for
improvements in rural living environments and a timely response to credit demands. Key areas of focus include the treatment of rural
toilet waste domestic sewage and garbage and improvements in village appearance. Loan products should be developed specifically
for improvements in rural living environments.On October 30 the Ministry of Finance issued the Notice on the Advance Allocation of the 2025 Energy Conservation and
Emission Reduction Subsidy Budget specifying that 20 cities including Tangshan Shanghai and Zhengzhou will receive the incentive
funds for the demonstration and application of fuel cell vehicles in 2025. Among them there are 5 cities with incentive funds exceeding
RMB 100 million and the total amount of all cities is approximately RMB 1.62 billion.On October 31 the Ministry of Finance issued the Notice on the Advance Allocation of the 2025 Air Pollution Prevention and
Control Fund Budget specifying that RMB 20.4 billion of the 2025 air pollution prevention and control funds will be allocated to
support relevant work in pollution reduction and carbon reduction.On November 8 the Standing Committee of the National People's Congress reviewed and approved an increase in the local
government debt ceilings by RMB 6 trillion to be distributed over three years with RMB 2 trillion each year from 2024 to 2026 to
support local governments in replacing existing hidden debts. In addition to the previous RMB 4 trillion for debt resolution planned
for 2024-2028 (RMB 800 billion per year) and the RMB 2 trillion of hidden debt for shantytown renovation due by 2029 and beyond
the total amount for debt resolution will reach RMB 12 trillion. The introduction of these policies will to a large extent alleviate the
financial pressure on local governments and increase local purchasing power.On December 5 the General Office of the Central Committee of the Communist Party of China and the General Office of the
State Council issued the Opinions on Advancing New Urban Infrastructure and Building Resilient Cities promoting the coordinated
development of smart city infrastructure and intelligent connected vehicles. It encourages the further development of "5G + Internet of
Vehicles" steadily advancing the application of driver assistance and autonomous driving technologies and accelerating the installation
of intelligent perception systems on urban road infrastructure to enhance vehicle-road collaboration. The policy also aims to expand
the application of intelligent connected vehicles in multiple scenarios to meet the growing demand for smart transportation.
2. The demand for urban services and environmental protection equipment will keep increasing
The source of urban services revenue is the government budget with the nature of rigid expenditure and is less affected by
macroeconomic regulation factors. The business is characterized by continuity and stability. Environmental protection equipment is a
rigid demand within the environmental sanitation industry and with favorable industry policies and proactive fiscal measures market
demand is expected to return to a growth trajectory.
(1) Clear direction of urbanization and significant increase in service demand
As urbanization continues the construction of urban roads will directly increase the area for road cleaning urban housing
compound construction and urban greening hence increasing the demand for environmental protection equipment and urban cleaning
services. Furthermore sanitation is one of the prerequisites for each province city and district to construct urban upgrades such as
"national civilized cities" "national hygienic cities" "national model cities of environmental protection" and "national ecological
garden cities". From 2017 to 2023 the area of road cleaning in China's cities and counties increased from 10.896 billion square meters
to 14.514 billion square meters an overall increase of nearly 33.2%; the domestic waste removed and transported in cities and counties
40Infore Environment Technology Group Co. Ltd. 2024 Annual Report
rose from 282 million tons to 322 million tons an overall growth of 14.2% according to the statistics from the National Bureau of
Statistics and the Ministry of Housing and Urban-Rural Development. Driven by urbanization the release of urban service demand is
constantly facilitated in order to maintain the cleanliness and sanitation of urban roads residential compounds and municipal gardens
as well as the normal transfer and treatment of domestic waste.
(2) The "Beautiful Countryside" kick-started and the rural sanitation market is gradually gaining momentum
The Opinions on Drawing on and Applying the Experience from the Green Rural Revival Program in Zhejiang Province to
Effectively Promote All-around Rural Revitalization (2024 No. 1 Document of the Central Committee of the Communist Party of
China) outlines efforts to improve rural living environments in a step-by-step iterative approach. After 20 years of continuous effortsthousands of beautiful rural villages have been created. The document emphasizes the need to “deeply implement actions forimprovements in rural living environment” “advance rural infrastructure to strengthen areas of weakness” and “strengthen ruralecological protection”. The rural sanitation market will enter a new stage for further rapid market expansion. This will create vast
opportunities for urban services and the entire sanitation industry.
(3) Implementation of the policies of the new energy vehicle industry and increasing demand for new energy-powered
environmental protection equipment
In 2024 the number of cities with demand for new energy sanitation vehicles reached 175 an increase of 41 cities compared with
2023. The number of cities with a market demand of 10 vehicles or more was 80 an expansion of 13 cities compared with 2023. Since
2012 China has made a guiding policy to accelerate the cultivation of the new energy vehicle industry and has successively released
important documents for its promotion. In 2024 the penetration rate of new energy-powered environmental protection equipment
exceeded 14%. After a period of development new energy-powered sanitation vehicles are poised for significant growth. It is expected
that the penetration rate of new energy-powered environmental protection equipment will quickly reach about 50%.
(4) The increasing mechanization of urban construction will drive the continuous growth in the environmental protection
equipment market
According to the 2023 Urban and Rural Construction Statistical Yearbook at the end of 2023 the mechanical cleaning space of
roads in cities across the country reached 11.27 billion square meters with a mechanization rate of 81.8%; the mechanical cleaning
space of roads in counties across the country reached 3.25 billion square meters with a mechanization rate of 79.6%. This indicates
that there is still room for development in terms of the mechanization level of sanitation industry in China. In the future as labor costs
continue to rise the mechanized sanitation operations will become the main development direction of the domestic sanitation market
and it will cover road cleaning guardrail cleaning waste collection & transportation and other segments.
(5) The aggravation of aging population will make the expansion of the environmental protection equipment market an inevitable
trend
The frequent adjustments made by China in terms of minimum wages in different cities have largely influenced the operating
costs of urban service enterprises. The defects including high operating costs and low working efficiency in the traditional manual
urban service model have increased the business pressure on sanitation operation enterprises. In addition by the end of 2024 the elderly
population in China had reached 310 million accounting for 22% of the total population according to the data of the National Bureau
of Statistics. The aging trend will increase the pressure of labor shortage in the urban service field. Meanwhile with the diversification
of job options the number of young and middle-aged laborers who are willing to engage in sanitation work is also decreasing. Therefore
improving the mechanization rate of the sanitation industry and expanding the use of environmental protection equipment is not only
a realistic need in the face of the labor market shortage but also the requirement for the development of urban sanitation level.
(6) Implementation of large-scale equipment renewal policy driving release of the demand for environmental protection
equipment
41Infore Environment Technology Group Co. Ltd. 2024 Annual Report
In 2024 the funds for large-scale equipment renewal projects were mainly allocated in the fourth quarter. A small number of
projects in the year began to be implemented and most of the projects are expected to see physical workloads in the first half of 2025.At the same time in January 2025 the National Development and Reform Commission clearly stated that the funds for large-scale
equipment renewal in 2025 will significantly increase compared to 2024. With the growth in policy funding and the implementation
of projects approved in 2024 the sanitation industry is expected to see substantial growth in 2025.
(7) New industry transformation fueled by technological upgrade and innovation
With the rapid development of autonomous driving and artificial intelligence technologies the traditional sanitation cleaning
sector is facing an unprecedented wave of technological innovation and autonomous sweepers are gradually becoming a new force in
urban cleaning. Small-sized smart devices and smart services will be the new bonanza introducing new variables and increments for
the sector. Smart less humanized or even unmanned sanitation will be a general trend. On the policy front both national and local
governments are actively supporting the renewal and purchase of unmanned environmental protection equipment and industry
development accelerating the implementation and application of pilot projects.. For instance Shenzhen and Guangzhou have already
launched benchmark pilot projects for unmanned cleaning vehicles. In the future with the deepening of technological integration the
acceleration of the green transformation and the improvement of standards the unmanned sanitation industry is expected to usher in
a new era of more efficient intelligent and sustainable development.(II) Business plan for 2025
In 2024 the Company closely revolved around its established strategy and annual business plan focusing on its core business
areas. By consolidating the development foundation through measures such as divesting non-core assets and strengthening internal
management it fully promoted the intelligent urban service business. The Company's business targets set at the beginning of the year
were RMB 100 billion in the cumulative contract amount of smart urban services and over RMB 10 billion in annual revenue. The
actual cumulative contract amount of smart urban services reached RMB 61.285 billion while annual revenue posted RMB 6.441
billion. The revenue target achievement rate was 64.41% and the total contract amount target achievement rate was 61.29%. The
failure to meet the expectations was mainly affected by the industry trend. The number of orders with long cycles of more than 5 years
in the market has significantly decreased resulting in a decline in the total amount of orders obtained by the Company.In 2025 the Company will accurately grasp the market trends diversify its operations and actively attract short- and medium-
cycle projects to optimize its order structure. The smart services will focus on "urban mechanized and intelligent" development
further strengthening the core market presence. Leveraging the digital upgrade of the cost management system of the Smart Sanitation
Cloud Platform the Company aims to enhance service efficiency and improve management capabilities. In the intelligent equipment
segment the strategy will emphasize "new energy leadership international expansion and growth through flagship products". The
Company plans to allocate more resources to overseas markets bolster core technology research and development and accelerate the
establishment of global competitive advantages.At the business level in overseas markets the Company will improve its marketing network through significant resource
investment and enhance product competitiveness with localized service capabilities. In the aerial work sector it will continuously
optimize the product line and expand diverse application scenarios to achieve deep market penetration. The small equipment business
will focus on scenario-based solutions and promote the iteration and upgrading of the product system. The new energy business will
add integrated solutions for photovoltaics energy storage and charging innovate business models and marketing strategies and
promote the rapid large-scale development of strategic business.(III) Plan for use of funds
2025 is a crucial year for the Company's strategic development. To meet the capital needs of rapid business expansion the
Company will establish a scientific and dynamic capital supply and demand management system. On the one hand it will strengthen
the overall planning allocation and efficient utilization of its own capital. By improving the full-process management mechanism of
accounts receivable it will shorten collection cycles and improve the capital turnover efficiency. On the other hand it will continuously
42Infore Environment Technology Group Co. Ltd. 2024 Annual Report
optimize its capital structure reasonably control financial leverage and enhance the flexibility and risk resistance of capital use while
ensuring liquidity safety.In terms of fundraising the Company will adopt a diversified financing strategy. By issuing direct financing instruments such as
short-term financing bonds and medium-term notes combined with the accumulation of cash flows from operating activities and
optimizing the structure of bank loans and other multi-channel combinations it will establish a stable capital supply system. At the
same time a dynamic funds monitoring mechanism will be established to adjust the scale and duration of financing in a flexible manner
according to business development rhythms ensuring that fund supply precisely matches the needs of business expansion and providing
a solid financial guarantee for achieving the Company's strategic goals.(IV) Main risk factors that may adversely affect the achievement of the Company's future development strategies and business
objectives
1. Policy-related risks
Against the backdrop of the ongoing strengthening of national environmental protection policies the environmental protection
industry a typical sector driven by policy has ushered in development opportunities. However policy changes may have a direct
impact on the Company's operations. Changes in macroeconomic and environmental regulatory policies adjustments to tax incentives
and upgrades of environmental protection standards may all lead to fluctuations in market demand increases in operating costs or
adjustments to the business layout thereby affecting the Company's operating performance.Countermeasures: The Company has established a dynamic policy tracking mechanism and formed a professional research team
to interpret national macroeconomic policies and industry regulations. By regularly analyzing policy trends and predicting potential
impacts it provides a scientific basis for decision-making for the management. At the same time the insights gained from policy
research are integrated into strategic planning and business development strengthening the Company's ability to adapt to policy
changes and manage risks effectively.
2. Operation management risks
As the Company expands its business scale broadens its markets and develops more subsidiaries its assets personnel and
organizations are also undergoing rapid expansion causing its management to become more complex. Although the Company has
formed a complete internal control system and continuously improved it the difficulties of coordinated management are still increasing
due to factors such as industry characteristics regional differences and cultural backgrounds of its branches.Countermeasures: The Company adopts the strategy of "empowering the enterprise with talent + upgrading management". It
expands the core management team by introducing high-end talent and carrying out special training to enhance the team's overall
capabilities. Moreover it strengthens the development of its management system and risk control mechanisms optimizes the
standardization of business processes improves coordination across regions and departments and fosters the integration of corporate
culture to enhance organizational cohesion and risk prevention and control capabilities.
3. Heightened market competition risks
The sanitation industry in China is an emerging comprehensive industry that is still in the early stages of marketization and has a
relatively low level of concentration. However with its rapid growth the involvement of upstream and downstream enterprises and
the continuous participation of new enterprises in different sectors market competition will continue to intensify. The Company will
likely face the risk of losing market share in the future.Countermeasures: The Company adheres to the strategy of "technological innovation + competitive differentiation" continuously
increases R&D investment focuses on key technologies such as intelligent equipment and digital management and consolidates its
leading technological advantages. At the same time by optimizing the product service system creating differentiated solutions
strengthening brand value and customer service capabilities it improves market competitiveness and ensures a stable industry position.
43Infore Environment Technology Group Co. Ltd. 2024 Annual Report
XII. Visits Paid to the Company for Purposes of Research Communication and Interview
during the Reporting Period
□ Applicable □ Not Applicable
Main content
Reference of the
of discussion
Time Venue Method Visitor type Visitor study's basic
and materials
information
provided
To understand
For details please
the business
"Interactive refer to the Record
development
Platform for Sheet of Investor
Online situation of the
May 14 Investor Relations Activities
communication on Others Investors Company in
2024 Relations" on disclosed by the
Internet platform various fields
Panorama Company on May 14
and its future
Network 2024 on Cninfo
business
(www.cninfo.com.cn)
strategy
XIII. Formulation and Implementation of the Market Value Management System and
Valuation Improvement Plan
Whether the Company formulated a market value management system.□ Yes □ No
Whether the Company disclosed a valuation improvement plan.□ Yes □ No
(I) Improving operation efficiency and practicing high quality development
In 2025 the Company will firmly focus on its strategic direction in "digitalization flagship products and globalization". It will
concentrate on the strategic pillars of "product excellence efficiency-driven growth and intelligent operations". With targeted efforts
in two key areas—intelligent equipment and smart services—the Company aims to enhance organizational efficiency optimize its
business structure and improve operational efficiency through technological innovation industry upgrades and the strengthening of
its talent pool.
1. Intelligent equipment
New energy-powered equipment: Leveraging 18 years of experience in the new energy market and 39 years of technical expertise
in sanitation equipment the Company will seize the opportunities brought by equipment renewal policies and industry transformation.By making efforts in three aspects: product R&D marketing and service system it will lead the market with a comprehensive product
line for all scenarios in new energy-powered sanitation equipment continuing to strengthen its market-leading position. In terms of
international expansion the Company will implement a "strategic positioning product differentiation and service excellence" approach
to increase investment in overseas markets and further improve the global marketing network. With exceptional product capability at
the core the Company will strengthen its local service capabilities and build a globally competitive operational system. For aerial work
equipment the Company will continue to optimize its product line structure and seize the market with differentiated offerings. For
small equipment and intelligent robots the Company will focus on scenario-based solutions driving product system upgrades and
quality improvements. By deeply integrating AI algorithm technology the Company will keep iterating on its cleaning-robot product
line to achieve end-to-end automation across the entire workflow.
2. Smart services
44Infore Environment Technology Group Co. Ltd. 2024 Annual Report
As the "Smart Steward of Cities in the New Era" the Company will continue to enhance operational efficiency and increase the
rate of mechanized production. It will comprehensively upgrade the Smart Sanitation Cloud Platform combine it with equipment
networking technologies to build an AI application middle platform for urban services achieving standardized and integrated
management of urban services through digital and intelligent methods. Leveraging "intelligent sorting equipment + overall production
line solutions + digital intelligence management systems" the Company will actively explore the business of self-operated green
renewable resource sorting centers and realize the "mechanization reduced human presence and informatization" of garbage recycling.While steadily advancing the task of "improving payment collection and controlling risks" it will keenly grasp the opportunity of
industry recovery striving to achieve breakthroughs in high-quality orders and deeply expanding core strategic markets.(II) Maintaining steady operations while actively seeking M&A opportunities
Focusing on its core business the Company actively looks for suitable targets for mergers & acquisitions and restructuring seizes
market opportunities comprehensively uses tools such as shares and cash and conducts mergers & acquisitions and restructuring in a
timely manner. Over the years the Company has completed multiple mergers & acquisitions and restructuring projects which have
strengthened the core competitiveness of its core business leveraged industrial synergies and expanded its business scope obtained
key technologies and markets significantly enhancing its asset scale profitability and overall valuation.The Company will closely align its strategic development plan with actual needs continuously monitoring industry changes and
the competitive landscape. It aims to promote mergers & acquisitions and restructuring initiatives driven by market synergies. The
Company will actively seek opportunities for mergers and acquisitions both domestically and internationally focusing on high-quality
targets. By expanding into overseas markets strengthening its global competitive edge and enhancing the core competitiveness of its
primary business the Company will leverage industrial synergies to bolster its sustainable operations. These efforts will support the
overall growth of the Company and accelerate its global business expansion.(III) Stimulating business vitality and promoting sustained and steady development
On April 10 2025 the Proposal on the Company's Share Repurchase Plan and the Commitment Letter for Securing a Special
Repurchase Loan was deliberated and approved by the Company at the ninth extraordinary meeting of the Tenth Board of Directors.The Company intended to actively carry out the share repurchase plan by using its own funds and the funds of the special repurchase
loan. All repurchased shares will be allocated for the implementation of the Company's equity incentive or employee share ownership
plan.The Company is committed to establishing and improving a benefit-sharing mechanism for its management team and key
employees strengthening employee cohesion and overall competitiveness supporting its long-term continuous and healthy
development while fostering a strong sense of responsibility among employees. Over the years the Company has implemented three
phases of stock option incentive plans and two phases of employee stock ownership plans which have helped enhance the sense of
responsibility and mission of its management team and key employees engaging them in the Company's objectives. By aligning the
interests of shareholders the Company and the core team these efforts have been critical in achieving development goals and ensuring
sustainable growth.In line with the Company's business development stage and long-term strategic plan the Company will continue to focus on
integrating performance growth with the sharing of benefits for the management team and key employees. As the Company steadily
improves its performance and works toward its development strategy and business objectives employees will also share in the benefits
arising from its growth.(IV) Sharing business achievements and actively implementing cash dividends
While continuously promoting its own development the Company has firmly established the awareness of rewarding investors
and attaches great importance to providing reasonable returns to investors. It has distributed cash dividends to all shareholders for 12
45Infore Environment Technology Group Co. Ltd. 2024 Annual Report
consecutive years and has completed the implementation of three phases of share repurchase plans demonstrating its commitment to
actively rewarding investors and protecting their interests thereby boosting investors' confidence in the Company.In 2024 the Company implemented the cash dividend for the year 2024 given that both the distributable profit realized by the
Company and the cumulative distributable profit of the Company were positive. In the past three years (2022-2024) the Company is
expected to pay a total of about RMB 1.437 billion in cash dividends (including the amount related to share repurchase cancellations)
accounting for 83.25% 79.43% and 134.89% of the net profit attributable to the listed company's shareholders respectively. The
Company will strictly implement the profit distribution policy comprehensively considering factors such as the characteristics of the
industry it is in the development stage its own business model profitability debt repayment ability etc. The stable high-proportion
dividend mechanism fully reflects the Company's business philosophy of attaching importance to shareholder returns and fulfilling its
dividend commitment.(V) Improving the quality of information disclosure and strengthening investor
communication
The Company has always attached great importance to investor relations. In 2024 the Company received an A (excellent) rating
in the information disclosure evaluation of the Shenzhen Stock Exchange for the 2023-2024 and also won the "Golden Information
Disclosure" award hosted by China Securities Journal to commend listed companies that have performed outstandingly in information
disclosure communication methods public relations management and investor relations management. To better convey the diversified
internal value to investors and enhance the corporate image and brand value the Company has released social responsibility reports
for three consecutive years. Moreover by virtue of its good ESG management practices and continuous innovation capabilities the
Company has won the "Top 100 ESG Awards for Chinese Listed Companies" and the "ESG Pioneer Practitioner Case for Listed
Companies" demonstrating its rich practices and achievements in sustainable development and social responsibility.The Company will continue to strictly abide by the information disclosure principles of "truthfulness accuracy completeness
timeliness fairness legality and compliance" to ensure that all disclosed information is true and reliable enabling investors to gain a
clear and accurate understanding of its operating conditions and future development prospects. It will make more initiative professional
and deeper communication with investors improve the timeliness and transparency of information dissemination actively and
efficiently convey its long-term investment value promote positive communication between both sides and build a harmonious and
mutually beneficial relationship in the capital markets. The Company will actively organize activities such as annual performance
briefings and investor surveys to strengthen two-way communication with investors. It will also enhance its internal value and promote
its healthy and sustainable development to contribute to the positive and healthy development of the capital market.(VI) Consolidating the governance structure and promoting standardized operation
The Company has continuously improved its internal corporate governance structure perfected its internal management system
clearly defined the responsibilities and authorities of the general meeting of shareholders the board of directors and the board of
supervisors to urge them to fulfill their respective responsibilities jointly promoting its sustainable and healthy development. In 2024
in accordance with relevant laws regulations departmental rules and regulatory documents such as the Administrative Measures for
Independent Directors of Listed Companies the Rules for the Share Repurchase of Listed Companies and the Guidelines for the
Articles of Association of Listed Companies and in combination with the actual situation the Company revised some provisions of the
Articles of Association the Rules of Procedure for the Board of Directors the Rules of Procedure for the General Meeting of
Shareholders and the Working System of Independent Directors.The Company will continue to improve and perfect its corporate governance structure and internal control systems and enhance
the level of corporate governance to effectively protect the legitimate rights and interests of all shareholders and lay a solid foundation
for its development. The Company's management will also further enhance its operational and management capabilities and
46Infore Environment Technology Group Co. Ltd. 2024 Annual Report
continuously improve its core competitiveness profitability and overall risk management capabilities to achieve its long-term and
sustainable development and deliver value to its investors.XIV. Implementation of the Action Plan for Quality and Return Improvements
Whether the Company disclosed the Action Plan for Quality and Return Improvements.□ Yes □ No
47Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part IV Corporate Governance
1. Basic situation of Corporate Governance
1. The Company continuously perfects its corporate governance structure in strict accordance with the requirements of the
Company Law the Securities Law and the relevant laws and regulations of the CSRC. The Board of Directors has four special
committees namely Strategy Committee Audit Committee Nomination Committee and Remuneration & Appraisal Committee
dedicated to providing advice and recommendations to ensure the Board of Directors' deliberation and decision-making are professional
and efficient.
2. The Company convenes the Annual General Meeting of Shareholders in strict accordance with the relevant provisions of the
Articles of Association and the Rules of Procedure for the General Meeting of Shareholders. The Board of Directors which is the
decision-making body of the Company conscientiously implements the resolutions of General Meetings of Shareholders. The Board
of Supervisors exercises its supervisory authorities and powers in strict accordance with the regulations and it supervises the financial
affairs of the Company as well as duty performance and actions of directors and senior officers thus safeguarding the legitimate rights
and interests of the Company and all shareholders. The Management of the Company strictly implements the resolutions of General
Meetings of Shareholders and Meetings of the Board of Directors and executes decisions. All functional departments and subsidiaries
of the Company are responsible for day-to-day operations.
3. During the reporting period in order to regulate its insider information management ensure confidentiality of insider
information and effective registration and management of insiders who have access to insider information effectively prevent securities
violations of laws and regulations such as insider trading maintain the fairness of information disclosure and protect the legitimate
rights and interests of the general investors the Company promptly truthfully and fully recorded all the persons with access to the
insider information before disclosure at stages such as discussion and planning demonstration and consultation establishment and in
phases such as reporting transmission preparation examination resolution and disclosure as well relevant information archives
regarding the content time place basis and method etc. for the insiders to know the insider information and file with the relevant
regulatory authorities to strictly prevent the occurrence of insider trading pursuant to the laws and regulations such as the Securities
Law the Measures for the Administration of Information Disclosure by Listed Companies as well as the relevant provisions of the
Articles of Association Information Disclosure Management Policy and Policy on Internal Reporting of Material Information of the
Company.
4. The Company discloses information in strict accordance with the provisions of the Company Law the Securities Law the Rules
Governing the Listing of Shares on SZSE and other relevant laws regulations and normative documents as well as the Information
Disclosure Management Policy to ensure that it makes true accurate complete timely and fair information disclosure to increase the
openness and transparency of its operations. The Company has received no disciplinary actions such as criticism and reprimand from
the stock exchange for issues relating to information disclosure. During the reporting period there were no governance irregularities
such as the provision of undisclosed information to the controlling shareholder and the de facto controller.
5. During the reporting period there was no change in the stock price arising from leakage of inside information of the Company.
As part of its next steps the Company will constantly improve its corporate governance structure further standardize corporate
operations and raise the level of corporate governance pursuant to relevant laws and regulations as well as the requirements of the
SZSE.As to the actual status of corporate governance whether there is any material departure from laws administrative regulations and the
rules issued by the CSRC on listed company governance
□ Yes □ No
48Infore Environment Technology Group Co. Ltd. 2024 Annual Report
As to the actual status of governance of the Company there is no material non-compliance with laws administrative regulations and
the rules issued by the CSRC on the governance of listed companies
II. Independence of the Company from the Controlling Shareholder and De Facto Controller
and on Ensuring Company's Assets Personnel Finance Structure and Businesses and Other
Aspects
The Company is completely independent of the controlling shareholder in terms of businesses personnel assets organization and
finance etc. and has fully independent businesses and operation capacity. Details are as follows:
(1) Business independence: The Company's businesses are independent of the controlling shareholder and the controlling
shareholder and its affiliates are not engaged in any businesses in competition with the Company.
(2) Personnel separation: The personnel of the Company are independent of the controlling shareholder and the President CFO
Board Secretary and other senior officers of the Company do not hold positions other than directors in the controlling shareholder the
financial officers of the Company do not have a part-time job in affiliated companies. The Company has put in place independent
policies on labor personnel and remuneration management and established an independent labor and personnel management
department. Thus its labor personnel and remuneration management are completely independent.
(3) Integrity of assets: The Company owns independent and complete assets and has independent production supply and sales
systems and there is no horizontal competition between the Company and its controlling shareholder in the manufacturing and
operation of the same products.
(4) Organizational independence: The Company is organizationally complete and there is no superior-subordinate relationship
between its controlling shareholder and functional departments thereof and the Company and functional departments thereof. The
Company's Board of Directors Board of Supervisors and other internal institutions operate fully independently.
(5) Financial separation: The Company's finance is entirely independent with an independent financial department. It has also
established an independent accounting system and financial accounting management policy dedicated to independent accounting
independent opening of bank accounts and independent tax payment.III. Horizontal Competition
□ Applicable □ Not Applicable
IV. Annual and Extraordinary General Meetings of Shareholders Convened During the
Reporting Period
1. General meetings of shareholders convened during the reporting period
Investor
Date of the Disclosure
Meeting Type participation Meeting resolution
meeting date
ratio
The Announcement on the Resolutions of the
2023 Annual General Meeting of Shareholders
Annual
Annual (Announcement No.: 2024-037) was published
General
General on the Securities Daily the Securities Times the
Meeting of 61.81% May 20 2024 May 21 2024
Meeting of China Securities Journal and Cninfo
Shareholders
Shareholders (http://www.cninfo.com.cn) which are the
in 2023
media designated by the Company for
information disclosure.
49Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Extraordinary general meeting of shareholders convened at the request of preference shareholders with
resumed voting rights
□ Applicable □ Not Applicable
V. Information of Directors Supervisors and Senior Officers
1. Basic information
Number Number
Beginning Ending Reasons for
of shares of shares
Start of End of number of number of share
Name Gender Age Position Incumbent/Former increased decreased Other
tenure tenure shares shares increase/d
during the during the changes
held held ecrease
period period
Chairman of
January
the Board December
Ma Gang Male 46 Incumbent 11 1654600 0 0 0 1654600 None
and 4 2014
2026
President
January
May 20
Zhu Youyi Male 46 Director Incumbent 11 46975 0 0 0 46975 None
2024
2026
January
Kuang January
Male 46 Director Incumbent 11 0 0 0 0 0 None
Guangxiong 30 2019
2026
January
January
Shen Ke Male 54 Director Incumbent 11 0 0 0 0 0 None
302019
2026
January
Independent December
Zhang Yu Male 47 Incumbent 11 0 0 0 0 0 None
director 26 2019
2026
January
Independent December
Li Ruidong Male 48 Incumbent 11 0 0 0 0 0 None
director 26 2019
2026
January
Independent January
Li Yingzhao Male 63 Incumbent 11 0 0 0 0 0 None
director 12 2023
2026
Chairman of January
May 20
Lai Zhiyao Male 44 the Board of Incumbent 11 0 0 0 0 0 None
2024
Supervisors 2026
January
December
Liu Kan Male 41 Supervisor Incumbent 11 0 0 0 0 0 None
262019
2026
January
Employee November
Lin Meiling Female 40 Incumbent 11 0 0 0 0 0 None
Supervisor 14 2016
2026
Vice January
Wang April 29
Male 49 President & Incumbent 11 800 0 0 0 800 None
Qingbo 2022
CFO 2026
January
Huang Board August
Male 36 Incumbent 11 0 0 0 0 0 None
Junjie Secretary 26 2024
2026
April
September
Su Bin Male 47 Director Former 26 0 0 0 0 0 None
62021
2024
Jiao Male 44 Chairman of Former November April 308692 0 0 0 308692 None
50Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Wanjiang the Board of 14 2016 26
Supervisors 2024
Vice
August
President December
Jin Taotao Male 42 Former 26 0 0 0 0 0 None
and Board 26 2019
2024
Secretary
Total -- -- -- -- -- -- 2011067 0 0 0 2011067 --
Whether any director or supervisor left office or any senior officer was dismissed during their tenure during the reporting period
□ Yes □ No
1. On April 26 2024 Mr. Su Bin applied to resign from his positions as a director of the Tenth Board of Directors and a member
of the strategic committee of the Company due to personal reasons. After resigning Mr. Su Bin will no longer hold any positions in
the Company.
2. On April 26 2024 Mr. Jiao Wanjiang applied to resign from his positions as a supervisor and the chairman of the board of
supervisors of the 10th board of supervisors of the Company due to job changes. After resigning he will hold other positions in the
Company.
3. On August 26 2024 Mr. Jin Taotao applied to resign from his positions as a vice president and the secretary of the board of
directors of the Company due to job changes. After resigning he will hold other positions in the Company.Changes of the Company's directors supervisors and senior officers
□ Applicable □ Not Applicable
Name Position held Type Date Reason
Zhu Youyi Non-independent Director Elected May 20 2024 Job transfer
Lai Zhiyao Chairman of the Board of Supervisors Elected May 20 2024 Job transfer
Huang Junjie Board Secretary Appointed August 26 2024 Job transfer
Su Bin Non-independent Director Resigned April 26 2024 Personal reasons
Jiao Wanjiang Chairman of the Board of Supervisors Resigned April 26 2024 Job transfer
Jin Taotao Board Secretary Dismissed August 26 2024 Job transfer
2. Position and biographical information
Professional backgrounds major work experience and current posts in the Company of the incumbent directors supervisors and senior
officers:
1. Mr. Ma Gang born in 1979 holding a master's degree is Chairman of the Tenth Board of Directors of Infore Enviro. Starting
in December 2014 he has been serving as President of Infore Enviro. He joined Midea Group in June 2001 and held successively the
positions of R&D Engineer branch salesman and Regional Director at Midea Rice Cooker Division General Manager at Midea Small
Domestic Appliance Sales Company in China President of China Marketing Headquarters of Midea Daily Home Electric Appliance
Group Vice President and Domestic Sales General Manager at Midea Small Domestic Appliance Division Vice President of Midea
Small Domestic Appliance Division and General Manager at Midea Water Material Product Company and Deputy Director at Midea
Domestic Market Department.
2. Mr. Zhu Youyi born in 1979 holding a Master's degree is Director of the Tenth Board of Directors of Infore Enviro. Starting
in August 2023 he has been Vice President of Infore Group Co. Ltd. From July 2020 to August 2023 he served as a senior director
of human resources at Alibaba Group. From July 2001 to July 2020 he held various director positions in market operations and strategic
investment at Midea Group.
3. Mr. Kuang Guangxiong born in 1979 holding a master's degree is a PRC Certified Public Accountant and International
Accountant in addition to Director of the Tenth Board of Directors of Infore Enviro. He has been Vice President of Infore Group from
October 2018 till now. From July 2002 to October 2018 he held successively the positions of Financial Manager at Midea Daily Home
51Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Electric Appliance Group Financial Manager at Midea subsidiary in the US Financial Director at Midea Kitchen Appliances Division
Financial Director at Midea Commercial Air Conditioner Division and Financial Director at Midea-KUKA Joint Venture in China.
4. Mr. Shen Ke born in 1971 holding a master's degree is Director of the Tenth Board of Directors of Infore Enviro. He has been
Vice President of Zoomlion Heavy Industry Science and Technology Co. Ltd. from September 2020 till now. From July 2003 to
September 2020 he held the positions of Head of the Investment Development Department Board Secretary and Investment Director
at Zoomlion Heavy Industry Science and Technology Co. Ltd.
5. Mr. Zhang Yu born in 1978 holding a doctorate degree is Independent Director of the Tenth Board of Directors of Infore
Enviro. He has served as Associate Professor and Professor at China Europe International Business School since 2015 till now and
held the position of Assistant Professor at University of California Irvine from 2008 to 2015.
6. Mr. Li Ruidong born in 1977 holding a bachelor's degree is Independent Director of the Tenth Board of Directors of Infore
Enviro. He has been President and Editor-in-chief at the China Environment Magazine since November 2013 till now. He served as
Assistant to General Manager of Environmental Protection Magazine Co. Ltd. from February 2012 to November 2013 and Director
of the Office of the Environmental Protection Magazine from March 2008 to January 2012.
7. Mr. Li Yingzhao born in 1962 holding a doctoral degree serves as Independent Director of the Tenth Board of Directors of
Infore Enviro. He was formerly Professor of Accounting at School of Business Administration South China University of Technology
and retired in 2023. He also currently serves as Independent Director at Guangdong TLOONG Technology Group Co. Ltd. and
External Supervisor of Nanhai Rural Commercial Bank Co. Ltd. He served as Independent Director at such listed companies as
Guangzhou Friendship Group Co. Ltd. and Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. He has participated in the SZSE training
and received the Independent Director Qualification.
8. Mr. Lai Zhiyao born in 1981 holding a bachelor's degree is Chairman of the Tenth Board of Supervisors of Infore Enviro. He
currently serves as the Deputy Director of the Marketing Management Department of Shunde Equipment Company. From April 2006
to February 2021 he served successively as the General Manager of a branch of Guangdong Midea Household Appliances
Manufacturing Co. Ltd. From August 2004 to December 2005 he served as an engineer at China Railway Information Technology
Co. Ltd. From October 2000 to September 2002 he served as a teacher at Wudang Town Middle School in Longnan County Jiangxi
Province.
9. Mr. Liu Kan born in 1984 holding a bachelor's degree is Supervisor of the Tenth Board of Supervisors of Infore Enviro. He
is currently Vice President of the Urban Service Business Division and General Manager of the Operation Management Department.He held the positions of General Manager at Infore Network Technology Co. Ltd. from 2017 to November 2019 Director of the
Operation Management Department of Universtar Science & Technology (Shenzhen) Co. Ltd. from 2016 to 2017 and Rice Cooker
Product Planning Manager at Midea Small Domestic Appliance Shenzhen Branch and Midea Small Domestic Appliance Division from
2006 to 2015.
10. Ms. Lin Meiling born in 1985 holding a bachelor's degree is Supervisor of the Tenth Board of Supervisors of Infore Enviro.
She is currently the Director of Human Resources of the Company. Starting in 2010 she has been responsible for the administration
and HR affairs of the Company.
11. Mr. Wang Qingbo born in 1976 holding a bachelor's degree is Vice President and CFO of Infore Enviro. He previously
served as Vice President and Vice President of Finance at Guangdong NVC Lighting Technology Co. Ltd. Vice President of Finance
at Guangdong Xinbang Logistics Co. Ltd. CFO at Midea Annto Logistics Division Deputy CFO at Midea Small Domestic Appliance
Division Financial Manager at Midea Industrial Design Company and Financial Supervisor at Midea Fan Factory.
12. Mr. Huang Junjie born in 1989 holding a master's degree is currently Board Secretary Assistant President and Director of
the Securities and Strategic Development department of Infore Enviro. He served as Senior Investment Director. He served as Senior
Investment Manager of Cedar Holdings Group Co. Ltd. Investment Manager of Tianjin Golden Wutong Investment Management
52Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Partnership (Limited Partnership) International Management Trainee and M&A Analyst of the New York Branch of Standard
Chartered Bank.Positions held in shareholder entities
□ Applicable □ Not Applicable
Whether receiving
Name of the
Position held at remuneration or
personnel
Shareholder entity the shareholder Start of tenure End of tenure allowances from
holding
entity the shareholder
position
entity
Ma Gang Infore Group Co. Ltd. Director March 6 2018 April 24 2024 No
Zhu Youyi Infore Group Co. Ltd. Vice President August 28 2023 - Yes
Kuang Director and Co-
Infore Group Co. Ltd. May 30 2019 - Yes
Guangxiong President
Zoomlion Heavy Industry
Shen Ke Science and Technology Co. Vice President June 29 2015 - Yes
Ltd.Positions held in other entities
□ Applicable □ Not Applicable
Whether
Name of the receiving
personnel Position held in End of remuneration or
Name of other entity Start of tenure
holding other entity tenure allowances
position from other
entities
Guangdong Infore Finance Connect
Zhu Youyi Chairman May 15 2024 - No
Small Loan Co. Ltd.Zhu Youyi KUKA Home Co. Ltd. Director February 2 2024 - No
Zhu Youyi Beijing Baination Pictures Co. Ltd. Director May 16 2024 - No
Kuang Guangdong Infore Finance Connect
Director July 6 2020 - No
Guangxiong Small Loan Co. Ltd.Kuang
KUKA Home Co. Ltd. Chairman September 20 2024 - No
Guangxiong
Kuang
E - Fund Management Co. Ltd. Director January 1 2025 - No
Guangxiong
Kuang Guangdong Infore Material
Chairman October 9 2023 - No
Guangxiong Technology Co. Ltd.Kuang Executive
Foshan Infore Trade Co. Ltd. June 21 2024 - No
Guangxiong Director Manager
Kuang Ningbo Infore Ruihe Investment Executive
May 11 2024 - No
Guangxiong Management Co. Ltd. Director Manager
Kuang Yinghe (Shenzhen) Robotics and
Chairman August 5 2020 - No
Guangxiong Automation Technology Co. Ltd.Kuang Ningbo Infore Baihe Cultural Industry Executive
June 6 2024 - No
Guangxiong Investment Co. Ltd. Director Manager
Kuang Ningbo Infore Asset Management Executive
June 6 2024 - No
Guangxiong Co. Ltd. Director Manager
Hunan Zoomlion Emergency Device
Shen Ke Director August 17 2017 - No
Co. Ltd.Shen Ke Zoomlion Capital Co. Ltd. Director October 22 2015 - No
53Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Shen Ke Zoomlion Finance Co. Ltd. Director May 28 2015 - No
Shen Ke Hunan Teli Hydraulic Co. Ltd. Supervisor March 11 2020 - No
Shen Ke Zoomlion Puroong Leasing Co. Ltd. Director April 12 2016 - No
Bichamp Cutting Technology (Hunan)
Shen Ke Director July 5 2014 - No
Co. Ltd.Changsha Zoomlion Zhitong
Shen Ke Director April 13 2009 - No
Trenchless Technology Co. Ltd.Zoomlion Heavy Machinery Zhejiang
Shen Ke Chairman November 8 2023 - No
Co. Ltd.Shen Ke Zoomlion Agriculture Co. Ltd. Director October 31 2023 - No
Zoomlion Intelligent Agriculture Co.Shen Ke Director November 5 2020 - No
Ltd.Beijing Junlai Capital Management
Shen Ke Director June 22 2018 - No
Company Limited
Chongqing Zoomlion Shenghong Executive
Shen Ke January 5 2024 - No
Machinery Manufacturing Co. Ltd. Director
Hunan Zhongchen Rolled Steel
Shen Ke Director May 20 2020 - No
Manufacturing Engineering Co. Ltd.Hunan Xiangjiang Private Equity
Shen Ke Director April 28 2021 - No
Fund Management Co. Ltd.Zoomlion Business Factoring (China)
Shen Ke Director October 11 2023 - No
Co. Ltd.China Europe International Business
Zhang Yu Professor July 1 2015 - Yes
School
Guangzhou MINO Equipment Co. Independent
Zhang Yu July 28 2020 - Yes
Ltd. director
Aidite (Qinhuangdao) Technology
Zhang Yu Director November 30 2019 - Yes
Co. Ltd.President and
Li Ruidong China Environment Magazine November 1 2013 - Yes
Editor-in-chief
Li Yingzhao Jiangxi Green Recycling Co. Ltd. Director November 19 2020 - Yes
China Broadnet Guangzhou Network Independent
Li Yingzhao April 27 2021 - Yes
Co. Ltd. director
Guangdong TLOONG Technology Independent
Li Yingzhao July 21 2022 - Yes
Group Co. Ltd. director
Guangdong Shunkong Environmental
Wang Qingbo Supervisor February 23 2023 - No
Investment Co. Ltd.Punishments imposed in the past three years by the securities regulator on the incumbent directors supervisors and senior officers as
well as those who left office during the reporting period
□ Applicable □ Not Applicable
3. Remuneration of directors supervisors and senior officers
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior officers
The remunerations of the directors supervisors and senior officers of the Company for 2024 are strictly in compliance with the Proposal
on the Remuneration Plan for Directors Supervisors and Senior Officers in 2024 deliberated and adopted by the Company the Rules
of Procedure for the Board of Directors formulated by the Company the Rules of Procedure for the Board of Supervisors and the
Articles of Association as well as the relevant provisions of the Company Law. The remuneration of the Company's directors
supervisors and senior officers shall be determined on the basis of reasonable remuneration in the market and the Company's
54Infore Environment Technology Group Co. Ltd. 2024 Annual Report
performance appraisal results. The actual remuneration of the independent directors of the Company is paid on an annual basis. The
actual remuneration of senior officers is partly on a monthly basis and the part linked to the Company's performance is paid at year-
end.Remuneration of directors supervisors and senior officers of the Company during the reporting period
Unit: RMB 10000
Receiving
Total pre-tax remuneration
remuneration from the
Name Gender Age Position Incumbent
from the Company's
/Former Company related parties
or not
Chairman of the Board and
Ma Gang Male 46 Incumbent 302.46 No
President
Zhu Youyi Male 46 Director Incumbent 0 Yes
Kuang
Male 46 Director Incumbent 0 Yes
Guangxiong
Shen Ke Male 54 Director Incumbent 0 Yes
Zhang Yu Male 47 Independent director Incumbent 10 No
Li Ruidong Male 48 Independent director Incumbent 10 No
Li Yingzhao Male 63 Independent director Incumbent 10 No
Chairman of the Board of
Lai Zhiyao Male 44 Incumbent 43.25 No
Supervisors
Liu Kan Male 41 Supervisor Incumbent 156.22 No
Lin Meiling Female 40 Employee Supervisor Incumbent 22.27 No
Wang Qingbo Male 49 Vice President & CFO Incumbent 119.98 No
Huang Junjie Male 36 Board Secretary Incumbent 32.39 No
Su Bin Male 47 Director Former 0 Yes
Chairman of the Board of
Jiao Wanjiang Male 44 Former 37.96 No
Supervisors
Vice President and Board
Jin Taotao Male 42 Former 32.59 No
Secretary
Total -- -- -- -- 777.12 --
Other information
□ Applicable □ Not Applicable
VI. Performance of Duties by Directors during the Reporting Period
1. Information on the Board of Directors during the reporting period
Meeting Date of the meeting Disclosure date Meeting resolution
The fifth The Announcement on the Resolutions of the Fifth
extraordinary Extraordinary Meeting of the Tenth Board of Directors
January 8 2024 January 9 2024
meeting of the Tenth (Announcement No.: 2024-002) was published on the
Board of Directors Securities Daily the Securities Times the China Securities
55Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Journal and Cninfo (www.cninfo.com.cn) which are the
media designated by the Company for information
disclosure.The Announcement on the Resolutions of the Sixth Meeting
of the Tenth Board of Directors (Announcement No.: 2024-
The sixth meeting of
012) was published on the Securities Daily the Securities
the Tenth Board of April 26 2024 April 29 2024
Times the China Securities Journal and Cninfo
Directors
(www.cninfo.com.cn) which are the media designated by the
Company for information disclosure.The Announcement on the Resolutions of the Seventh
Meeting of the Tenth Board of Directors (Announcement
The Seventh
No.: 2024-047) was published on the Securities Daily the
Meeting of the Tenth August 26 2024 August 28 2024
Securities Times the China Securities Journal and Cninfo
Board of Directors
(www.cninfo.com.cn) which are the media designated by the
Company for information disclosure.The Announcement on the Resolutions of the Eighth Meeting
of the Tenth Board of Directors (Announcement No.: 2024-
The Eighth Meeting
055) was published on the Securities Daily the Securities
of the Tenth Board October 28 2024 October 29 2024
Times the China Securities Journal and Cninfo
of Directors
(www.cninfo.com.cn) which are the media designated by the
Company for information disclosure.
2. Attendance of directors at Board meetings and general meetings of shareholders
Attendance of directors at Board meetings and general meetings of shareholders
Number of Number of Having failed
Number of Number of Number of
Number of Board Board to attend two
Board Board general
Director's Board meetings meetings consecutive
meetings meetings meetings of
name meetings attended by attended Board
attended on absent with shareholders
held way of through meetings in
site apologies attended
telecoms proxy person or not
Ma Gang 4 4 0 0 0 No 1
Zhu Youyi 2 1 1 0 0 No 0
Kuang
4 3 1 0 0 No 1
Guangxiong
Shen Ke 4 1 3 0 0 No 1
Zhang Yu 4 2 2 0 0 No 1
Li Ruidong 4 2 2 0 0 No 1
Li Yingzhao 4 0 4 0 0 No 1
Su Bin 2 1 1 0 0 No 1
Explanation of failure to attend two consecutive Board meetings
□ Applicable □ Not Applicable
3. Objections raised to relevant matters of the Company
Whether any directors raised an objection to any relevant matter of the Company
□ Yes □ No
Directors did not raise any objection to the relevant matters of the Company during the reporting period.
4. Other information about the performance of duties by directors
Whether any recommendations from directors were adopted by the Company
56Infore Environment Technology Group Co. Ltd. 2024 Annual Report
□ Yes □ No
Explanation of adoption/rejection of directors' recommendations for the Company
During the reporting period the directors of the Company acted in a diligent and responsible manner and actively attended Board
meetings and general meetings of shareholders in strict compliance with provisions and requirements in the Articles of Association the
Rules of Procedure for the Board of Directors as well as relevant laws and regulations. Based on the actual situation of the Company
the directors proposed relevant opinions on the Company's material governance and operation decisions reached a consensus through
adequate communication and discussion firmly supervised and promoted the execution of resolutions of the Board of Directors
ensured the decision-making was scientific timely and highly efficient and protected the legitimate rights and interests of the Company
and all shareholders.VII. Information on Special Committees of the Board during the Reporting Period
Specific
Important Other information
Number
Date of opinions information on matters
Name of the of
Members the Meeting contents and on that
committee meetings
meeting suggestions performance objections
held
proposed of duties were raised
(if any)
1. Pre-approval of the
Financial Statements in
Li Yingzhao
2023 Annual Report; 2. Approved
Kuang
Internal Control Self- the relevant
Audit Guangxiong February Not
5 Assessment Report; 3. proposals --
Committee Li Ruidong 22 2024 applicable
2024 Internal Audit of this
and Zhang
Work Plan Report; 4. meeting.Yu
Ex-ante Communication
of 2023 Annual Report.
1. 2023 Annual Report
and Its Summary; 2.
2023 Annual Final
Financial Accounting
Report; 3. 2024 First
Quarter Report; 4.Proposal on Changes to
Accounting Policy of the
Li Yingzhao
Company and Its Approved
Kuang
Subsidiaries; 5. Proposal the relevant
Audit Guangxiong April 25 Not
5 on the Reappointment of proposals --
Committee Li Ruidong 2024 applicable
Accounting Firms; 6. of this
and Zhang
Report on the meeting.Yu
Performance of
Supervisory Duties of
the Audit Committee
over the Accounting
Firm; 7. Proposal on
Formulating the System
for Selecting Accounting
Firms.
57Infore Environment Technology Group Co. Ltd. 2024 Annual Report
1. 2024 Interim Report
Approved
Li Yingzhao and Its Summary; 2.the relevant
Audit Kuang August 2024 Interim Financial Not
5 proposals --
Committee Guangxiong 23 2024 Report; 3. Summary of applicable
of this
Li Ruidong Internal Audit for the
meeting.First Half of 2024.Approved
Li Yingzhao
the relevant
Audit Kuang October Third Quarter Report for Not
5 proposals --
Committee Guangxiong 25 2024 2023 applicable
of this
Li Ruidong
meeting.Li Yingzhao
Approved
Kuang
Communication on Pre- the relevant
Audit Guangxiong December Not
5 approval of 2024 Annual proposals --
Committee Li Ruidong 18 2024 applicable
Report of this
and Zhang
meeting.Yu
1. Reviewing the
Performance of the
Company's Directors
and Senior Officers in
Fulfilling Their Duties in
2023 and Conducting
Annual Performance
Assessment Based on
Assessment Criteria and
Li Ruidong Approved
Remuneration Policies
Remuneration Kuang the relevant
January 5 and Plans; Not
& Appraisal Guangxiong 2 proposals --
2024 2.Implementation of the applicable
Committee and Zhang of this
Remuneration Plan for
Yu meeting.Directors Supervisors
and Senior Officers in
2023; 3. the Proposal on
the Cancellation of
Expired Unexercised
Stock Options for the
Third Exercise Period of
the Third Stock Option
Incentive Scheme
Li Ruidong Proposal on the Approved
Remuneration Kuang Remuneration Plan for the relevant
April 24 Not
& Appraisal Guangxiong 2 Directors Supervisors proposals --
2024 applicable
Committee and Zhang and Senior Officers in of this
Yu 2024 meeting.Proposal on the Approved
Zhang Yu
Supplemental Election of the relevant
Nomination Ma Gang April 24 Not
2 Non-independent proposals --
Committee and Li 2024 applicable
Directors of the of this
Yingzhao
Company meeting.Approved
Zhang Yu
Proposal on Appointing the relevant
Nomination Ma Gang August Not
2 the Board Secretary of proposals --
Committee and Li 23 2024 applicable
the Company of this
Yingzhao
meeting.
58Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Proposal on the
Approved
Temporary
Ma Gang the relevant
Strategy October Replenishment of Not
Zhu Youyi 1 proposals --
Committee 25 2024 Working Capital with applicable
and Shen Ke of this
Part of the Idle Raised
meeting.Funds
VIII. Work of the Board of Supervisors
Whether the Board of Supervisors identified any risk in the Company in its supervision during the reporting period
□ Yes □ No
The Board of Supervisors has no objection to supervisory matters during the reporting period.IX. Information on Employees of the Company
1. Number specialty and educational backgrounds of employees
Number of in-service employees of the parent company at the
231
end of the reporting period
Number of in-service employees of the major subsidiaries at the
18997
end of the reporting period
Total number of in-service employees at the end of the reporting
19228
period
Total number of paid employees during the reporting period 19228
Number of retirees to whom the parent company or its major
0
subsidiaries need to pay retirement pensions
Specialty
Specialty category Number of people in the specialty
Production personnel 15389
Sales personnel 1002
Technical personnel 1339
Finance personnel 169
Administrative personnel 1329
Total 19228
Educational level
Types of educational level Number of people
Doctoral degree 10
Master's degree 451
Bachelor's degree 2436
College 1919
Below college 14412
Total 19228
59Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Remuneration policy
The remuneration of employees is paid on time according to the remuneration policy of the Company. The fixed remuneration
of employees is determined by the Company according to the position value and individual performance and the floating salary of
employees is determined according to the Company's and individual performance assessment results. The Company swings the weight
of salary payment towards strategic professionals to ensure that the income level of core talent is competitive in the market. The
employee remuneration policy is subject to dynamic adjustments based on regional conditions talent supply staff turnover the extent
of changes in the industry environment and the corporate payment capacity.
3. Training plan
The Company adopts a talent strategy of high quality high incentives high performance and high cultural identity. To support
employees through targeted and efficient training Infore Enviro has put in place a 3-tier training system that covers the company level
division level and department level. The Company has activated the Employee Skills Enhancement Center continuously improving
the competence and capabilities of employees while actively promoting corporate culture. By continuously strengthening the trainer
team and improving online learning platforms and other key resources while maintaining standardized training management processes
the Company is committed to creating a collaborative and efficient organizational climate that empowers employees and promotes
individual growth.Its learning and development programs comprehensively cover three key areas: new skills expertise and leadership. Leadership
development is facilitated through a string of well-designed programs such as Ascent Program Exploration Program Climbing
Program and Seminar Program. These initiatives aim to guide employees in continuously scaling new heights in their professional
growth and development. Expertise programs focusing on job-specific skills are carried out in diverse forms such as specialized
training camps marketing and R&D lectures in order to help employees meet job requirements and adapt to market changes. To better
support new employees in swiftly integrating into the Company and achieving a career transformation within 90 days both from
campus and social recruiting a wide range of training programs are carried out such as the Young Talent Training Camp Graduate
Training Program and programs specific to new employees from social recruiting.Moreover a fair and competitive career development system for employees has been established to ensure that each individual
has opportunities for continuous growth and promotion. The Company regularly conducts comprehensive assessments to promote
employees as part of its tangible actions to support career advances. In 2024 successful promotions for over four hundred professional
employees are not only a recognition of their hard work and talent but also the outcomes of the talent development strategy.
4. Labor outsourcing
□ Applicable □ Not Applicable
Total hours of labor outsourced 65008979.83
Total payment for labor outsourcing (RMB) 789046415.30
X. The Company's Profit Distribution and Converting Capital Reserve into Share Capital
Formulation execution or adjustments of profit distribution policy especially cash dividend policy during the reporting period
□ Applicable □ Not Applicable
According to the Articles of Association while satisfying the conditions of cash dividend and ensuring the Company's normal
operation and long-term development the Company shall in principle pay cash dividends on an annual basis. The Board of Directors
60Infore Environment Technology Group Co. Ltd. 2024 Annual Report
may propose interim cash dividends depending on the Company's profit status cash flow status development stage and capital
requirements. The Company shall maintain the continuity and stability of the profit distribution policy. When the conditions for cash
dividends are met the cumulative profit distributed in cash in the recent three years shall not be less than 30% of the average annual
distributable profit realized in the recent three years.During the reporting period the Company distributed profit in strict accordance with the provisions of the Articles of Association
and fully protected the legitimate rights and interests of small and medium investors. Independent directors have voiced their opinions
on the proposal on the annual profit distribution of the Company.Special remarks on the cash dividend policy
Whether it complies with the Company's Articles of Association
Yes
or resolutions of the general meetings of shareholders:
Whether dividend distribution standards and ratio are explicit
Yes
and clear:
Whether the decision-making procedure and mechanism are
Yes
complete:
Whether independent directors diligently performed their duties
Yes
and played their due role:
In the event that the Company does not distribute cash
dividends it shall disclose the specific reasons and the next Not applicable
steps to elevate the level of return for investors:
Whether minority shareholders have the opportunity to fully
express their opinions and demand and whether their legal Yes
rights and interests are adequately protected:
In case of adjusting or changing the cash dividend policy
whether the conditions and procedures involved are in Yes
compliance with applicable regulations and transparent:
The Company made profits during the reporting period and the parent company's profits distributable to shareholders were positive
but no proposal for cash dividend distribution was put forward
□ Applicable □ Not Applicable
Profit distribution and converting capital surplus into share capital for the reporting period
□ Applicable □ Not Applicable
Bonus shares per 10 shares (share) 0
Dividend per 10 shares (RMB) (tax inclusive) 1.89
Total shares as the basis for the proposal for profit distribution
3166941792.00
(share)
Cash dividends (RMB) (tax inclusive) 598551998.69
Cash dividends in other forms (such as share repurchase)
94132795.17
(RMB)
Total cash dividends (inclusive of those in other forms) (RMB) 692684793.86
Distributable profit (RMB) 787457794.12
Total cash dividends (inclusive of those in other forms) as a
87.96%
percentage of total distributed profit
Information on this cash dividend
Others
61Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Details about the proposal for profit distribution and converting capital reserve into share capital
The profit distribution plan for 2024 is as follows: Based on the total share capital (minus company shares in the Company's
repurchase account) on the date of record for the 2024 profit distribution plan a cash dividend of RMB 1.89 (tax inclusive) per 10
shares will be distributed to the shareholders with no bonus issue from either profit or capital reserves.At the end of 2023 the Company reported RMB 786431614.32 in profits available for distribution and RMB 390563922.07
in retained earnings after cash dividends. In 2024 the Company realized a net profit of RMB 440993191.17 and a surplus reserve
of RMB 44099319.12. As a result profits available for distribution at the end of 2024 reached RMB 787457794.12. When the
profit distribution plan for 2024 is implemented if the total share capital (minus shares in the Company's repurchase account) on
the date of record for the plan remains unchanged which is 3166941792 a cash dividend of RMB 1.89 (tax inclusive) will be
distributed for every 10 shares totaling RMB 598551998.69. As a result retained earnings after cash dividends will be RMB
188905795.43. If the total share capital changes due to reasons such as the conversion of convertible bonds share repurchases
stock incentive exercise and the listing of new shares from refinancing before the plan is implemented the Company will maintain
the policy of distributing RMB 0.189 (tax inclusive) per share and adjust the total cash dividends accordingly.XI. Company's Implementation of Stock Option Incentive Scheme and Employee Stock
Ownership Plan or Other Employee Incentive Measures
□ Applicable □ Not Applicable
1. Stock incentive
Overview of the Third Stock Option Incentive Scheme:
On January 8 2024 the Proposal on the Cancellation of Expired Unexercised Stock Options for the Third Exercise Period of the
Third Stock Option Incentive Scheme was deliberated and approved at the fifth extraordinary meeting of the Tenth Board of Directors.According to the provisions of the Third Stock Option Incentive Scheme (Revised Draft) the Board of Directors agreed to cancel the
21964000 expired stock options of 209 recipients unexercised during the third exercise period. After the cancellation the Third Stock
Option Incentive Scheme will be fully implemented.For details please refer to announcements published on January 9 2024 on the media for information disclosure designated by
the Company and Cninfo (http://www.cninfo.com.cn).Equity incentives granted to directors and senior officers of the Company
□ Applicable □ Not Applicable
Appraisal mechanism and incentives for senior officers
The Company has established a sound performance assessment and incentive system. The Board of Directors has the
Remuneration & Appraisal Committee as the administrative agency for the appointment and remuneration appraisal of the senior
officers of the Company which shall be responsible for formulating remuneration standards and schemes for senior officers reviewing
their performance of duties and formulating scientific and reasonable remuneration schemes and submitting to the Board for review
and discussion. The current senior officers of the Company shall be subject to comprehensive performance appraisal based on their
positions the current remuneration policy of the Company the Company's actual operating performance individual performance
performance of duties and achievement of responsibilities and goals and the result of such appraisal shall serve as the basis to determine
their remunerations. The Company pays the remuneration of senior officers based on the schedule. During the reporting period the
senior officers of the Company conscientiously performed their duties in strict accordance with the Company Law the Articles of
Association and the relevant laws and regulations actively implemented relevant resolutions of the General Meetings of Shareholders
and Board meetings and completed tasks of the year in a quite good way.
62Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Implementation of the employee stock ownership plan
□ Applicable □ Not Applicable
Information on all effective employee stock ownership plans during the reporting period
As a percentage of
Number Source of funds
Total number of the total share
Scope of employees of Changes to implement
shares held capital of the listed
employees the plan
company
Directors (excluding Employees'
independent legitimate
As at December 31 2024
directors) remuneration
the Company cumulatively
supervisors senior self-raised
held 64789616 shares for
officers and funds and other
134 64789616 its Second Employee Stock 2.05%
backbone personnel funds obtained
Ownership Plan accounting
(technology by means
for 2.05% of its total share
marketing permitted by
capital.production etc.) of laws and
the Company regulations.Shareholding of directors supervisors and senior officers in the employee stock ownership plan during the reporting period
As a percentage
Number of shares
Number of shares held at of the total
held at the end of
Name Position the beginning of the share capital of
the reporting period
reporting period (shares) the listed
(shares)
company
Ma Gang Chairman & President 17246996 17246996 0.54%
Wang Qingbo Vice President & CFO 4159493 4159493 0.13%
Huang Junjie Board Secretary 51832 51832 0.00%
Chairman of the Board of
Lai Zhiyao 207327 207327 0.01%
Supervisors
Liu Kan Supervisor 155495 155495 0.00%
Changes in the asset management institution during the reporting period
□ Applicable □ Not Applicable
Changes in equity arising from disposal of shares by holders during the reporting period
□ Applicable □ Not Applicable
Exercise of shareholders' rights during the reporting period
NA.Other relevant circumstances and explanations of the employee stock ownership plan during the reporting period
□ Applicable □ Not Applicable
Change of the members of the employee stock ownership plan management committee
□ Applicable □ Not Applicable
The financial impact of the employee stock ownership plan on the listed company during the reporting period and relevant
accounting treatment
□ Applicable □ Not Applicable
Termination of the employee stock ownership plan during the reporting period
□ Applicable □ Not Applicable
Other statements:
63Infore Environment Technology Group Co. Ltd. 2024 Annual Report
NA.
3. Other employee incentive measures
□ Applicable □ Not Applicable
XII. Establishment and Implementation of the Internal Control Policy during the Reporting
Period
1. Establishment and implementation of internal control
I. Internal control development
Infore Enviro has established and improved rules and regulations regarding corporate governance and internal control in
accordance with the requirements of the Company Law the Securities Law the Basic Standard for Enterprise Internal Control the
Rules Governing the Listing of Shares on SZSE and other statutory documents. The operations of the General Meeting of Shareholders
the Board of Directors and the Board of Supervisors in Infore Enviro are in compliance with the provisions of the relevant laws
regulations the Articles of Association the Rules of Procedure for the General Meeting of Shareholders the Rules of Procedure for
the Board of Directors and the Rules of Procedure for the Board of Supervisors. Corresponding internal management policy with
respect to such material issues as financial accounting fundraising external investment external guarantee related party transactions
and information disclosure has been established in Infore Enviro to ensure the legality and compliance of day-to-day operations and
decision-making procedures for material matters.II. Internal control implementation
(I) Execution of information disclosure management policies
Upon verification the Company effectively complied with the Information Disclosure Management Policy in 2024 with good
performance in information disclosure and was not subject to punishments by the securities regulatory authorities for violation of rules
on information disclosure.(II) Implementation of financial internal control policies
Upon verification with respect to finance and accounting the Company has established the relevant internal management policy
in accordance with the requirements of the Accounting Standards for Enterprises the Company Law and other relevant laws and
regulations which can ensure the accuracy and reliability of the financial and accounting information and the security and effectiveness
of the financial and accounting systems.(III) Implementation of other internal control policies
Upon verification Infore Enviro complied with the provisions of the Articles of Association and the relevant rules and regulations
performed necessary decision-making procedures and implemented the internal control policy quite well.
2. Details of material internal control deficiencies identified during the reporting period
□ Yes □ No
64Infore Environment Technology Group Co. Ltd. 2024 Annual Report
XIII. Management and Control of the Company over the Subsidiaries during the Report
Period
Integration Problems in the Resolution Resolution Follow-up
Company name Integration plan
progress integration measures taken progress resolution plan
Not applicable
XIV. Assessment Report or Audit Report on Internal Control
1. Internal control assessment report
Date of full disclosure of the internal control assessment report April 25 2025
For details please refer to the Internal
Index to full disclosure of the internal control assessment report Control Assessment Report disclosed on
Cninfo (http://www.cninfo.com.cn).The total assets of the organization included in the assessment as a percentage of the
100.00%
total assets in the Company's consolidated financial statements
The revenue of the organization included in the assessment as a percentage of the
100.00%
revenue in the Company's consolidated financial statements
Deficiency identification criteria
Category Related to financial reporting Unrelated to financial reporting
Material deficiencies:
1. Fraud committed by directors
supervisors and senior officers in relation
to financial reporting;
2. Material misstatement in financial
statements of the current period identified
by CPAs which was not identified in the
Material deficiencies:
course of the functioning of internal
If the likelihood of the deficiency is high
controls;
it could materially impair work efficiency
3. Ineffective supervision over internal
or effectiveness materially increase
control by the Audit Committee and the
uncertainty in outcomes or result in a
internal audit agency of the Company;
material deviation from expected targets.
4. Lack of post qualification or obvious
Significant deficiencies:
incompetence of principal financial
If the likelihood of the deficiency is
personnel; and
medium it could significantly diminish
5. Ineffective compliance supervision and
Qualitative criteria work efficiency or effectiveness
violations of regulations that could
significantly increase uncertainty in
materially affect the reliability of
outcomes or result in a significant
financial statements.deviation from expected targets;
Significant deficiencies:
General Deficiencies:
1. No anti-fraud procedures and controls
If the likelihood of the deficiency is low
have been established;
it could diminish work efficiency or
2. Internal control over the selection and
effectiveness increase uncertainty in
application of accounting policy in line
outcomes or result in a deviation from
with the generally accepted accounting
expected targets.standards has not been implemented; and
3. There are one or more deficiencies in
the controls over the year-end financial
reporting process and it cannot
reasonably ensure that the financial
statements are prepared to achieve the
objectives of authenticity and
65Infore Environment Technology Group Co. Ltd. 2024 Annual Report
completeness.General Deficiencies:
Internal control deficiencies that do not
constitute material deficiencies or
significant deficiencies.Material deficiencies:
1. The potentially misstated amount in the
profit statement is greater than or equal to
1% of the operating revenue in the
consolidated financial statements of the
Company for the most recent fiscal year
or 5% of the total pre-tax profit;
2. The potentially misstated amount in the
balance sheet is greater than or equal to
1% of the total assets in the consolidated
financial statements of the Company for
the most recent fiscal year.Significant deficiencies:
1. The potentially misstated amount in the
profit statement is greater than or equal to Material deficiencies:
0.5% of the Company's operating revenue Direct property loss amount is greater
or 3% of the total pre-tax profit in the than or equal to 1% of the Company's total
consolidated financial statements for the assets (latest audited).most recent fiscal year but less than 1% Significant deficiencies:
of the Company's operating revenue or Direct property loss amount is greater
5% of the total pre-tax profit in the than or equal to 0.5% of the Company's
Quantitative criteria
consolidated financial statements for the total assets (latest audited) but less than
most recent fiscal year. 1% of the Company's total assets (latest
2. The potentially misstated amount in the audited).
balance sheet is greater than or equal to General Deficiencies:
0.5% of the total assets in the Direct property loss amount is less than
consolidated financial statements of the 0.5% of the Company's total assets (latest
Company for the most recent fiscal year audited).but less than 1% of the total assets in the
consolidated financial statements for the
most recent fiscal year.General Deficiencies:
1. The potentially misstated amount in the
profit statement is less than 0.5% of the
Company's operating revenue or 3% of
the total pre-tax profit in the consolidated
financial statements for the most recent
fiscal year;
2. The potentially misstated amount in the
balance sheet is less than 0.5% of the
consolidated total assets of the Company
for the most recent fiscal year.Number of material deficiencies related to financial reporting 0
Number of material deficiencies unrelated to financial reporting 0
Number of significant deficiencies related to financial reporting 0
Number of significant deficiencies unrelated to financial reporting 0
2. Audit report on internal control
□ Applicable □ Not Applicable
66Infore Environment Technology Group Co. Ltd. 2024 Annual Report
The Opinion paragraph in the audit report on internal control
Infore Enviro maintained in all material respects effective internal control related to financial reporting as at December 31 2024
in accordance with the Basic Standard for Enterprise Internal Control and other applicable rules.Disclosure status of the audit report on internal control Disclosure
Disclosure date of the full audit report on internal control April 25 2025
For details please refer to the Internal Control Audit Report
Index to the full audit report on internal control
disclosed on Cninfo (http://www.cninfo.com.cn)
Opinion type of the audit report on internal control Standard unqualified opinion
Whether there are any significant deficiencies in non-financial
No
statements
Whether the accounting firm has issued the audit report with a modified opinion on the Company's internal control
□ Yes □ No
Whether the auditor's report on the Company's internal control is consistent with the self-assessment report issued by the Company's
Board of Directors
□ Yes □ No
XV. Rectification of Self-Detected Problems through the Special Campaign to Improve
Governance of Listed Companies
According to the system of the CSRC for filling and reporting the special self-examination list for the governance of listed
companies the Company conducted self-examination work during the special campaign based on facts and in strict accordance with
the Company Law the Securities Law Guidelines No. 1 of SZSE for Self-regulation of Listed Companies—Standardized Operation of
Companies Listed on the Main Board and other relevant laws and regulations as well as its internal rules and regulations carefully
sorted out the issues and filled in the forms. Through this self-examination the Company believes that its corporate governance
complies with the requirements of the Company Law the Securities Law Guidelines No. 1 of SZSE for Self-regulation of Listed
Companies—Standardized Operation of Companies Listed on the Main Board and other laws and regulations and that its corporate
governance structure is sound and functions in a standardized way without material issues or errors. The Company shall continue to
strengthen management in the following areas:
1. Further improving the internal control policy of the Company
The Company shall systematically sort out and improve its corporate governance and internal control in accordance with the
latest laws and regulations and combined with the requirements of the regulatory authorities and its self-examination result further
perfect its internal control policy and implement the corresponding examination and approval procedure on the revised and improved
relevant policies.
2. Further facilitating special committees of the Board to play their roles
During the reporting period the Company maintained special committees in strict accordance with the relevant laws and
regulations and the special committees conducted on-site inspections and supervised and guided the Company's operations
management and the execution of resolutions of the Board of Directors. In the future the Company shall continue to create conditions
for members of the special committees to know well the business of the Company facilitate themselves to play their roles and provide
advice and suggestions on the Company's development planning operations management risk control selection and engagement of
senior officers and back-up personnel performance appraisal of senior officers internal control and internal audit etc. to further
improve the scientific decision-making capacity and risk prevention capacity of the Company.
3. Further improving the quality of information disclosure
67Infore Environment Technology Group Co. Ltd. 2024 Annual Report
The Company shall optimize its policy system in strict accordance with the Administrative System of Information Disclosure and
in combination with its own situation. In day-to-day information disclosure management the Company shall conduct information
disclosure in a concise and easy-to-understand manner on the premise that the Company its shareholders and other information
disclosure obligors shall ensure the authenticity accuracy completeness timeliness and fairness of information disclosure. The relevant
personnel of information disclosure shall treat the information disclosure in a diligent manner prevent errors and ensure the quality of
information disclosure and elevate the level of information disclosure. During the reporting period the Company and its relevant
personnel disclosed information in strict accordance with the requirements of laws and regulations.
4. Further ramping up staff training in laws and regulations
By optimizing internal training programs and increasing training the Company helped its staff better understand laws regulations
and normative documents such as the Securities Law the Rules Governing the Listing of Shares on SZSE and the Guidelines No. 1 of
SZSE for Self-regulation of Listed Companies—Standardized Operation of Companies Listed on the Main Board. Such training also
helped the Company strictly comply with relevant regulations manage its operations in a prudent manner and prevent violations.
68Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part V Environmental and Social Responsibility
I. Material Environmental Issues
Whether the listed company and its subsidiaries are major pollutant emitters designated by national environmental authorities
□ Yes □ No
Environmental policies and industry standards
The Company strictly abides by the laws regulations and emission standards such as the Environmental Protection Law of the People's Republic of China Water Pollution Prevention and
Control Law of the People's Republic of China and Law of the People's Republic of China on the Prevention and Control of Air Pollution. It consistently improves its pollutant and emission
management policies and optimizes pollutant treatment facilities and technologies to minimize the discharge of pollutants.Environmental administrative licensing
The Company has been running all its key pollutant-discharging projects according to laws and regulations for many years. During the construction period environmental impact assessment
was carried out for these projects under relevant laws and regulations such as the Environmental Protection Law of the People's Republic of China and the Law of the People's Republic of China
on Environmental Impact Assessment and environmental impact assessment documents were approved by environmental authorities. Besides the Company obtained approval from environmental
authorities before pilot production organized environmental acceptance inspection for the completed projects during pilot production and simultaneously designed constructed and put into use
the supporting environmental facilities and the main works.Industry discharge standards and discharge of pollutants in production and operating activities
Types of
Names of
main Total
Name of main Number of Layout of Discharge Pollutant discharge Total
pollutants Way of approved Excessive
entity or pollutants and discharge discharge concentration/ standards discharge
and discharge discharge discharge
subsidiary characteristic outlets outlets intensity implemented volume
characteristic volume
pollutants
pollutants
Eastern Emission Standard of
Changsha
Organized exhaust outlet Volatile Organic
Zoomlion
emission of waste gas Compounds and Ni
Environment Waste gas Benzene 2 0.0245 mg/m3 0.09784 t / None
through a 20 m from paint for Surface Coating
Industry Co.chimney drying for (Automobile
Ltd.whole- Manufacturing and
69Infore Environment Technology Group Co. Ltd. 2024 Annual Report
machine Repair Industry)
coating / (DB43 1356-2017)
Western
exhaust outlet
of waste gas
from paint
drying for
whole-
machine
coating
Eastern
exhaust outlet
of waste gas
from paint
drying for Emission Standard of
whole- Volatile Organic
Organized machine Compounds and Ni
emission coating / for Surface Coating
Waste gas Toluene 2 0.06 mg/m3 0.23449 t / None
through a 20 m Western (Automobile
chimney exhaust outlet Manufacturing and
of waste gas Repair Industry)
from paint (DB43 1356-2017)
drying for
whole-
machine
coating
Eastern
exhaust outlet
of waste gas Emission Standard of
from paint Volatile Organic
Organized drying for Compounds and Ni
emission whole- for Surface Coating
Waste gas Xylene 2 1.9325 mg/m3 4.67448 t / None
through a 20 m machine (Automobile
chimney coating / Manufacturing and
Western Repair Industry)
exhaust outlet (DB43 1356-2017)
of waste gas
from paint
70Infore Environment Technology Group Co. Ltd. 2024 Annual Report
drying for
whole-
machine
coating
Eastern
exhaust outlet
of waste gas
from paint
drying for Emission Standard of
whole- Volatile Organic
Organized machine Compounds and Ni
Non-methane emission coating / for Surface Coating 12.15716
Waste gas 2 4.6985 mg/m3 430.5 t/a None
hydrocarbons through a 20 m Western (Automobile t
chimney exhaust outlet Manufacturing and
of waste gas Repair Industry)
from paint (DB43 1356-2017)
drying for
whole-
machine
coating
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Smoke 1 3.1 mg/Nm3 the Municipal Solid 2.083 t 12 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Shouxian Waste gas SO2 1 39.9 mg/Nm3 the Municipal Solid 40.697 t 70.8 t/a None
through an 80 the main plant
Greenlander Waste Incineration
m chimney
New Energy GB18485-2014
Co. Ltd. Standard for
Organized
Pollution Control on
emission West side of
Waste gas NOX 1 139.2 mg/Nm3 the Municipal Solid 135.646t 144 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Organized Standard for
West side of
Waste gas HCl emission 1 20.3 mg/Nm3 Pollution Control on 14.244 t / None
the main plant
through an 80 the Municipal Solid
71Infore Environment Technology Group Co. Ltd. 2024 Annual Report
m chimney Waste Incineration
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas CO 1 13.7 mg/Nm3 the Municipal Solid 13.478 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Pb 1 0.0063 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Cd 1 0.00004 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Hg 1 0.000148 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of 0.0026
Waste gas Dioxins 1 the Municipal Solid / / None
through an 80 the main plant ngTEQ/m3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas Smoke 1 1.17 mg/Nm3 the Municipal Solid 0.233 t / None
through an 80 the main plant
Waste Incineration
Lianjiang m chimney
GB18485-2014
Greenlander
Standard for
New Energy Organized
Pollution Control on
Co. Ltd. (1#) emission East side of
Waste gas SO2 1 11.7 mg/Nm3 the Municipal Solid 17.87 t 46.8 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Waste gas NOX Organized 1 East side of 171.88 mg/Nm3 Standard for 70.01 t 104 t/a None
72Infore Environment Technology Group Co. Ltd. 2024 Annual Report
emission the main plant Pollution Control on
through an 80 the Municipal Solid
m chimney Waste Incineration
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas HCl 1 43.33 mg/Nm3 the Municipal Solid 14.446 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas CO 1 10.49 mg/Nm3 the Municipal Solid 10.028 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of 2.56×10-4
Waste gas Pb 1 the Municipal Solid / / None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas Cd 1 8×10-6 mg/Nm3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas Hg 1 3×10-6 mg/Nm3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of 0.030 ng
Waste gas Dioxins 1 the Municipal Solid / / None
through an 80 the main plant TEQ/Nm3
Waste Incineration
m chimney
GB18485-2014
Lianjiang Organized Standard for
Greenlander emission East side of Pollution Control on
Waste gas Smoke 1 1.74 mg/Nm3 0.983 t 9.12 t/a None
New Energy through an 80 the main plant the Municipal Solid
Co. Ltd. (2#) m chimney Waste Incineration
73Infore Environment Technology Group Co. Ltd. 2024 Annual Report
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas SO2 1 7.29 mg/Nm3 the Municipal Solid 10.418 t 45.6 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas NOX 1 195.64 mg/Nm3 the Municipal Solid 121.689 t 182.4 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas HCl 1 9.32 mg/Nm3 the Municipal Solid 6.81 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas CO 1 10.19 mg/Nm3 the Municipal Solid 6.713 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of 2.86×10-4
Waste gas Pb 1 the Municipal Solid / / None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas Cd 1 8×10-6 mg/Nm3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission East side of
Waste gas Hg 1 3×10-6 mg/Nm3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Organized East side of 0.02 ng Standard for
Waste gas Dioxins 1 / / None
emission the main plant TEQ/Nm3 Pollution Control on
74Infore Environment Technology Group Co. Ltd. 2024 Annual Report
through an 80 the Municipal Solid
m chimney Waste Incineration
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Smoke 1 1.1 mg/m3 the Municipal Solid 0.765 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas SO2 1 42.3 mg/m3 the Municipal Solid 29.25 t 58 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas NOX 1 208.4 mg/m3 the Municipal Solid 143.62 t 148.85 t/a None
through an 80 the main plant
Waste Incineration
m chimney
Xiantao GB18485-2014
Greenlander Standard for
Organized
Environmental Pollution Control on
emission West side of
Power Waste gas HCl 1 13.9 mg/m3 the Municipal Solid 9.42 t / None
through an 80 the main plant
Generation Waste Incineration
m chimney
Co. Ltd. (1# GB18485-2014
furnace) Standard for
Organized
Pollution Control on
emission West side of
Waste gas CO 1 10.3 mg/m3 the Municipal Solid 6.95 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Pb 1 0.0253 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Cd 1 0.000078 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
75Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Hg 1 0.0136 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Dioxins 1 0.044 ngTEQ/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Smoke 1 0.5 mg/m3 the Municipal Solid 0.159 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas SO2 1 22.1 mg/m3 the Municipal Solid 10.63t 58 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Xiantao Organized
Pollution Control on
Greenlander emission West side of
Waste gas NOX 1 182.2 mg/m3 the Municipal Solid 88.19 t 148.85 t/a None
Environmental through an 80 the main plant
Waste Incineration
Power m chimney
GB18485-2014
Generation
Standard for
Co. Ltd. (2# Organized
Pollution Control on
furnace) emission West side of
Waste gas HCl 1 22.9 mg/m3 the Municipal Solid 11 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas CO 1 4.02 mg/m3 the Municipal Solid 1.261 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Organized Standard for
West side of
Waste gas Pb emission 1 0.0175 mg/m3 Pollution Control on / / None
the main plant
through an 80 the Municipal Solid
76Infore Environment Technology Group Co. Ltd. 2024 Annual Report
m chimney Waste Incineration
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of 0.0000501
Waste gas Cd 1 the Municipal Solid / / None
through an 80 the main plant mg/m3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of
Waste gas Hg 1 0.0096 mg/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission West side of 0.0063
Waste gas Dioxins 1 the Municipal Solid / / None
through an 80 the main plant ngTEQ/m3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of
Waste gas Smoke 1 1.176 mg/Nm3 the Municipal Solid 0.609 t 12 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of
Waste gas SO2 1 34.629 mg/Nm3 the Municipal Solid 29.107 t 80 t/a None
through an 80 the main plant
Poyang Waste Incineration
m chimney
Greenlander GB18485-2014
Renewable Standard for
Organized
Energy Co. Pollution Control on
emission North side of 183.378
Ltd. Waste gas NOX 1 the Municipal Solid 154.466 t 250 t/a None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of
Waste gas HCl 1 34.112 mg/Nm3 the Municipal Solid 29.044 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Waste gas CO Organized 1 North side of 8.849 mg/Nm3 Standard for 1.453t / None
77Infore Environment Technology Group Co. Ltd. 2024 Annual Report
emission the main plant Pollution Control on
through an 80 the Municipal Solid
m chimney Waste Incineration
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of
Waste gas Pb 1 0.0157 mg/Nm3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of 0.000359
Waste gas Cd 1 the Municipal Solid / / None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of 0.000118
Waste gas Hg 1 the Municipal Solid / / None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission North side of
Waste gas Dioxins 1 0.027 ng/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of
Waste gas Smoke 1 0.7 mg/Nm3 the Municipal Solid 0.520 t 10.95 t/a None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Biyang Standard for
Organized
Fenghe New Pollution Control on
emission South side of
Energy Power Waste gas SO2 1 37.207 mg/Nm3 the Municipal Solid 25.688 t 31.68 t/a None
through an 80 the main plant
Co. Ltd. Waste Incineration
m chimney
GB18485-2014
Organized Standard for
emission South side of Pollution Control on
Waste gas NOX 1 186.85 mg/Nm3 125.318 t 159.72 t/a None
through an 80 the main plant the Municipal Solid
m chimney Waste Incineration
78Infore Environment Technology Group Co. Ltd. 2024 Annual Report
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of
Waste gas HCl 1 30.49 mg/Nm3 the Municipal Solid 20.570t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of
Waste gas CO 1 5.569 mg/Nm3 the Municipal Solid 5.741 t / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of 0.005925
Waste gas Pb 1 the Municipal Solid / / None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of 0.000047
Waste gas Cd 1 the Municipal Solid / / None
through an 80 the main plant mg/Nm3
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of
Waste gas Hg 1 0 mg/Nm3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Standard for
Organized
Pollution Control on
emission South side of
Waste gas Dioxins 1 0.0086 ng/m3 the Municipal Solid / / None
through an 80 the main plant
Waste Incineration
m chimney
GB18485-2014
Organized
Southwest side Odor Pollutant
Xiantao emission
Waste gas Ammonia 1 of the plant 1.5 mg/Nm3 Emission Standard 0.25404 t / None
Yinghe through a 15 m
area GB14554-1993
Environmental chimney
Protection Organized Southwest side Odor Pollutant
Hydrogen
Co. Ltd. Waste gas emission 1 of the plant 1.5 mg/Nm3 Emission Standard 0.001644t / None
sulfide
through a 15 m area GB14554-1993
79Infore Environment Technology Group Co. Ltd. 2024 Annual Report
chimney
Organized
Southeast side Odor Pollutant
emission
Waste gas Ammonia 1 of the plant 1.49 mg/Nm3 Emission Standard 0.6044 t / None
through a 15 m
area GB14554-1993
chimney
Organized
Southeast side Odor Pollutant
Hydrogen emission 0.006125
Waste gas 1 of the plant 0.048 mg/Nm3 Emission Standard / None
sulfide through a 15 m t
area GB14554-1993
chimney
Organized Emission Standard of
Southwest side
emission Air Pollutants for
Waste gas Smoke 1 of the plant 11 mg/Nm3 0.04156 t 0.241t None
through an 18 Boilers GB13271-
area
m chimney 2014
Organized Emission Standard of
Southwest side
emission Air Pollutants for 0.005613
Waste gas SO2 1 of the plant 7 mg/Nm3 0.467 t None
through an 18 Boilers GB13271- t
area
m chimney 2014
Organized Emission Standard of
Southwest side
emission Air Pollutants for
Waste gas NOX 1 of the plant 108 mg/Nm3 0.536 t 1.809 t None
through an 18 Boilers GB13271-
area
m chimney 2014
Integrated
Southeast side
Intermittent Wastewater
Wastewater COD 1 of the plant 64 mg/L 1.2657 t 4.2627 t None
discharge Discharge Standard
area
GB8978-1996
Integrated
Southeast side
Ammonia Intermittent Wastewater
Wastewater 1 of the plant 0.656 mg/L 0.02612 t 0.427 t None
nitrogen discharge Discharge Standard
area
GB8978-1996
Pollutant treatment
The Company strictly abides by the national environmental protection system in its operations. Its pollution prevention facilities of the projects are designed constructed and put into use
simultaneously with the main projects and it has obtained the pollution discharge permit in accordance with the law. At the same time the Company has established various levels of safety and
environmental management committees and been equipped with full-time management personnel to coordinate its safety and environmental activities. In recent years the Company and its
subsidiaries have been strengthening and improving the environmental protection systems and internal supervision and management work. All environmental protection facilities can operate
80Infore Environment Technology Group Co. Ltd. 2024 Annual Report
normally and efficiently and an adequate amount of environmental protection consumables has been added effectively controlling pollutant emissions and no instances of exceeding discharge
standards have occurred.Environmental self-monitoring plan
The Company's all key entities under environmental supervision developed the 2024 Environmental Self-Monitoring Plan according to the requirements of the project pollution discharge
permit and filed it with the local environmental protection department. In 2024 qualified third-party environmental testing institutions were entrusted with all projects to test various pollutants
according to the annual self-monitoring plan and no instances of exceeding the pollutant emission standards have occurred.Contingency plan for environmental emergencies
The Company engaged a professional third-party agency to develop a contingency plan for environmental emergencies for each of its key pollutant-discharging projects and such plans have
been approved and filed for record. In 2024 the Company carried out regular training and drills among its employees in different projects according to the requirements and contents of the
contingency plans to enable them to timely and accurately deal with environmental pollution emergencies. In 2024 no major environmental risk accidents occurred in all projects.Investment in environmental governance and protection and payment of environmental taxes
The Company's commitment to green development and environmental protection underpins its sustained efforts in clean production energy conservation consumption reduction emission
reduction and efficiency improvement. By incorporating its environmental philosophy into day-to-day management the Company strives to become a resource-conserving and environmentally
friendly business. In 2024 it invested approximately RMB 44.4445 million in environmental protection and paid approximately RMB 52400 in environmental taxes under the relevant laws and
regulations.Measures adopted during the reporting period to reduce carbon emissions and their effects
□ Applicable □ Not Applicable
The Company covered photovoltaic panels on the roof of the plant building and the parking lot for employees' vehicles with a total area of approximately 300000 square meters. In 2024
solar energy was used for photovoltaic power generation of 6483801 kWh achieving a reduction of 3785.89 tons of carbon dioxide emissions.The Company's domestic waste incineration power generation project disposed of a cumulative 1.39 million tons of domestic waste in 2024. The total power generation in 2024 was
approximately 490 million kWh and the total power fed into the grid was approximately 430 million kWh. In 2024 replacing coal-fired power achieved a reduction of approximately 281000
tons of carbon dioxide emissions.Administrative penalties for environmental issues during the reporting period
Impact on the
Name of entity or production and
Reason Violation Penalty Rectification measures
subsidiary operation of the listed
company
81Infore Environment Technology Group Co. Ltd. 2024 Annual Report
1. Conducted training sessions for employees
Violation of Item 1 of Article 31 It had no material on relevant legal provisions;
Wenshui Yingsheng Non- of the Provisions on the impact on the 2. Formulated and refined relevant rules and
Environmental Sanitation compliant Management of Urban Domestic A fine of RMB 30000 production and policies;
Service Co. Ltd. operation Waste Classification in Shanxi operation of the listed 3. Implemented routine inspections to ensure
Province company that projects were operated in compliance
with rules.
1. Conducted training sessions for employees
It had no material on relevant legal provisions;
Changsha Zhiying Non- Violation of Article 64 of the impact on the 2. Formulated and refined relevant rules and
Environmental Sanitation compliant Regulations on the Administration Confiscation of facilities production and policies;
Management Co. Ltd. operation of Traffic Safety in Inland Waters operation of the listed 3. Implemented routine inspections to ensure
company that projects were operated in compliance
with rules.
1. Conducted training sessions for employees
It had no material on relevant legal provisions;
Violation of Item 1 Paragraph 1
Dingnan Zoomlion Non- impact on the 2. Formulated and refined relevant rules and
Article 64 of the Regulations on
Environmental Industry compliant A fine of RMB 3500 production and policies;
the Management of Domestic
Co. Ltd. operation operation of the listed 3. Implemented routine inspections to ensure
Waste in Jiangxi Province
company that projects were operated in compliance
with rules.
1. Conducted training sessions for employees
It had no material on relevant legal provisions;
Lu'an Zhongfeng Urban Non- Violation of Paragraph 1 Article impact on the 2. Formulated and refined relevant rules and
Environmental Service Co. compliant 60 of the Fire Control Law of the A fine of RMB 14000 production and policies;
Ltd. operation People's Republic of China operation of the listed 3. Implemented routine inspections to ensure
company that projects were operated in compliance
with rules.Other environmental information that should be disclosed
The Company disclosed the environmental information of each of its key pollutant discharging projects on the government's environmental information disclosure platform on a regular basis
according to the requirements of local environmental authorities.Other environmental related information
NA.
82Infore Environment Technology Group Co. Ltd. 2024 Annual Report
II. Corporate Social Responsibility
For details please refer to the 2024 Sustainability Report disclosed at Cninfo (www.cninfo.com.cn).III. Performance in Consolidating Achievements in Poverty Alleviation and Promoting Rural Revitalization
During the reporting period the Company donated approximately RMB 3.0423 million in money and materials to support poverty alleviation and rural revitalization efforts.
83Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part VI Significant Events
I. Performance of Undertakings
1. Undertakings of the Company's de facto controller shareholders related parties and acquirer as well as
the Company and other commitment makers fulfilled during the reporting period or ongoing at the period-
end
□ Applicable □ Not Applicable
Term of Fulfillment of
Undertaking Party Type Content Date
undertakings undertakings
Undertaking to
Undertaking to
avoid
avoid horizontal
horizontal
competition
De facto competition
regulate and
Undertaking controllers He regulate and
reduce related It is being properly
made at the Jianfeng reduce related August
party Indefinitely fulfilled without
time of asset Ningbo Infore party 15 2018
transactions and breach.restructuring and Infore transactions
maintain
Group and maintain
independence of
independence
the listed
of the listed
company
company
Ningbo Infore
Hongchuang Undertaking to
Undertaking to
Investment avoid
avoid horizontal
Undertaking Zoomlion horizontal
competition It is being properly
made at the Ningbo competition August
regulate and Indefinitely fulfilled without
time of asset Yingtai regulate and 15 2018
reduce related breach.restructuring Ningbo reduce related
party
Zhongfeng party
transactions
and Ningbo transactions
Liantai
I have no plan to
relinquish
Undertaking control over the
Undertaking
De facto not to listed company It has been fully
made at the January
controller He relinquish in the next 60 60 months fulfilled without
time of asset 3 2019
Jianfeng control over the months from the breach.restructuring
listed company date of
completion of
this transaction.The It has not been
accumulative normally fulfilled.total net profit The audited net
Greenlander
recorded by profit (net profit is
Undertaking Investment
Undertaking Lianjiang the lower before or
made at the Holding Co. October
related to Greenlander 48 months after deducting
time of asset Ltd. and 14 2015
performance New Energy Co. non-recurring
restructuring Zheng
Ltd Xiantao gains and losses)
Weixian
Greenlander for the period from
Environmental 2016 to 2019 is
Power RMB 2156500
84Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Generation Co. RMB -24424500
Ltd. Funan RMB -19192800
Greenlander and RMB -
Environmental 625700
Energy Co. Ltd. respectively; and
and Shouxian the accumulated
Greenlander net profit is RMB -
New Energy Co. 42086600 which
Ltd. from 2016 is RMB
to 2019 shall not 162086600 less
be less than than the
RMB 120 performance
million (net commitment
profit is subject indicating a failure
to the lower after to achieve the
deducting non- commitment in
recurring gains respect of the net
and losses). profit for 2016-
2019.
1. From 2016 to
2019 the newly
signed waste
incineration
power generation
BOT agreements
(subject to the
signing of
franchise
agreement)
signed by
Greenlander
Environmental It has not been
shall specify a normally fulfilled.total daily The newly signed
disposal capacity projects by
of not less than Greenlander
Greenlander
6500 tons (a Environmental
Undertaking Investment
single project from 2016 to 2019
made at the Holding Co. Project October
shall have a daily 48 months totaled 1400 tons
time of asset Ltd. and undertakings 14 2015
disposal capacity 5100 tons less
restructuring Zheng
of not less than than the project
Weixian
500 tons of undertaking. The
which at least project in Jiujian
one shall be has not
more than 2000 commenced
tons). 2. Jiujiang construction.Company shall
start construction
and obtain
approval before
December 31
2020. If it fails to
start construction
or the
construction is
recovered by the
government it
shall compensate
85Infore Environment Technology Group Co. Ltd. 2024 Annual Report
the listed
company at a
consideration of
no less than
RMB 5 million.Whether the undertakings were
No
fulfilled on time
On July 18 2022 the High People's Court of Guangdong Province ruled that Greenlander
Investment Holding Co. Ltd. and Zheng Weixian shall pay the Company RMB 113460600
If the undertaking is not fulfilled for non-fulfillment of performance commitment. As at the date of this report the Company
on time the specific reasons for received RMB 106222600 in proceeds from enforcement of the ruling or RMB 99229300
non-fulfillment and the next steps excluding enforcement fees appraisal fees service fees applicable taxes and costs. For details
plan shall be elaborated please refer to the Announcement on the Litigation Progress of the Compensation Commitment
Not Fulfilled by the Committing Party disclosed by the Company at Cninfo on August 28
2024.
2. Where any earnings forecast was made for any of the Company's assets or projects and the reporting
period is still within the forecast period the Company shall explain whether the performance of the asset or
project reaches the earnings forecast and why
□ Applicable □ Not Applicable
II. Occupation of the Company's Capital by the Controlling Shareholder or Other Related
Parties for Non-Operating Purposes
□ Applicable □ Not Applicable
No such cases during the reporting period.III. Illegal Provision of Guarantees for External Parties
□ Applicable □ Not Applicable
No such cases during the reporting period.IV. Explanations Given by the Board of Directors Regarding the "Modified Audit Opinion"
for the Latest Period
□ Applicable □ Not Applicable
V. Explanation of the Board of Directors the Board of Supervisors and Independent
Directors (If Any) Regarding the "Modified Audit Opinion" for the Reporting Period
□ Applicable □ Not Applicable
VI. Reason for Changes in Accounting Policies Accounting Estimates or Corrections of
Material Accounting Errors as Compared to the Financial Statements for the Prior Year
□ Applicable □ Not Applicable
For details of the changes in accounting policies please refer to the explanation in Note 5.43 in Part X Financial Report.
86Infore Environment Technology Group Co. Ltd. 2024 Annual Report
VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to
the Financial Statements for the Prior Year
□ Applicable □ Not Applicable
For details of the changes in the scope of the consolidated financial statements during the reporting period please refer to Note 9
"Changes in the Scope of Consolidation" in Part X Financial Report.VIII. Engagement and Disengagement of Accounting Firm
Current accounting firm
Pan-China Certified Public Accountants LLP (Special General
Name of the domestic accounting firm
Partnership)
The Company's payment to the domestic accounting firm (in
315
RMB 10000)
Consecutive years of the domestic audit service provided by
23
the accounting firm
Names of the domestic certified public accountants from the
Lin Wang and Cao Cuijuan
accounting firm
Consecutive years of audit service provided by domestic
1 year and 1 year respectively
certified public accountants from the accounting firm
Whether the accounting firm was changed during the current period
□ Yes □ No
Engagement of any accounting firm for internal control audit financial advisor or sponsor
□ Applicable □ Not Applicable
During the year Pan-China Certified Public Accountants LLP (Special General Partnership) was appointed as the Company's
internal control auditor and Huaxing Securities Co. Ltd. was appointed as the Company's sponsor.IX. Possibility of Delisting after the Disclosure of This Report
□ Applicable □ Not Applicable
X. Bankruptcy and Reorganization
□ Applicable □ Not Applicable
No such cases during the reporting period.XI. Material Litigation and Arbitration
□ Applicable □ Not Applicable
During the reporting period other lawsuits that did not meet the disclosure criteria for material litigation primarily included
purchase and sales contract disputes with a total amount of approximately RMB 430 million which are not expected to incur any
provision of large amount.
87Infore Environment Technology Group Co. Ltd. 2024 Annual Report
XII. Punishments and Rectifications
□ Applicable □ Not Applicable
No such cases during the reporting period.XIII. Credit Standing of the Company as well as Its Controlling Shareholder and De Facto
Controller
□ Applicable □ Not Applicable
During the reporting period the Company as well as its controlling shareholder and de facto controller had good credit standing
with no such cases as non-fulfillment of effective court judgments or outstanding debts of large amounts due and unpaid.XIV. Material Related Party Transactions
1. Related party transactions in relation to day-to-day operations
□ Applicable □ Not Applicable
Pricing
Contents As a Approve Available
Type of principle Transacti
Related of percentag d Method market
related of on Over
Related party related Transacti e of transacti of price for
party related amount approv Disclosu Index to disclosure
party relationsh party on price transactio on limit settlemen transactio re date
transacti party (in RMB ed limit
ip transacti ns of the (in RMB t ns of the
on transacti 10000)
on same type 10000) same type
on
Sharehold
Zoomli er holding
Goods or Goods or As per
on more than Market April 29 http://www.cninfo.co
financial financial -- 6228.97 9800 No contractu --
Heavy 5% of the price 2024 m.cn
services services al terms
Industry Company'
s shares
Total -- -- 6228.97 -- 9800 -- -- -- -- --
Details of any large-amount sales return None
Give the actual fulfillment situation during the
Before the Company's routine related party transactions in 2024 subsidiaries comprehensively assessed
reporting period (if any) where an estimate by type
and estimated their related party transactions. However due to changes in the market and customer
had been made for the total amounts of routine
demand there were differences between the Company's related party transactions and the actual situation.related party transactions to occur during the
This was regular business activity and had minimal impact on day-to-day operations and performance.period
Reason for any significant difference between the
transaction price and the market reference price (if Not applicable
applicable)
2. Related party transactions regarding purchase or sales of assets or equity interests
□ Applicable □ Not Applicable
No such cases during the reporting period.
88Infore Environment Technology Group Co. Ltd. 2024 Annual Report
3. Related party transactions regarding joint investments in external parties
□ Applicable □ Not Applicable
No such cases during the reporting period.
4. Current associated rights of credit and liabilities
□ Applicable □ Not Applicable
Whether there are current associated rights of credit and liabilities for non-operating purpose
□ Yes □ No
Current associated rights of credit receivable
Amount
Amount Interest
Whether newly
Opening recovered in the
there is a added in Ending
Related balance in the current
non- the Interest balance
Related party party Causes (in current period
operating current rate (in RMB
relationship RMB period (in (in
fund period (in 10000)
10000) RMB RMB
occupation RMB
10000)10000)
10000)
Passively
Foshan
formed by
Shunhe
Former transferring
Environmental Yes 0 38907.25 39137.74 3.45% 230.49 0
subsidiary the equity
Protection
of the
Co. Ltd.subsidiary
Impact of related party
creditor's rights on the
It has no significant impact.Company's operating results
and financial situation
Current associated rights of liabilities payable
□ Applicable □ Not applicable
5. Transactions with finance companies with related party relationships
□ Applicable □ Not Applicable
Deposit business
Amount of the current period
Maximum
Opening Ending
daily deposit Total Total
Related Related party Range of balance (in
limit (in deposited withdrawn
balance (in
parties relationship deposit rate RMB
RMB amount (in amount (in
RMB
10000)
10000) RMB RMB
10000)
10000)10000)
Related
company of a
shareholder
Zoomlion
holding more No interest
Finance Co. 0 31 31
than 5% of accrued
Ltd.the
Company's
shares
89Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Loan business
□ Applicable □ Not Applicable
Credit or other financial business
□ Applicable □ Not Applicable
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable □ Not Applicable
There is no deposit loan credit or other financial business between the finance company controlled by the Company and related
parties.
7. Other material related party transactions
□ Applicable □ Not Applicable
No such cases during the reporting period.XV. Material Contracts and Execution Thereof
1. Trusts subcontracts and leases
(1) Trusts
□ Applicable □ Not Applicable
No such cases during the reporting period.
(2) Subcontracts
□ Applicable □ Not Applicable
No such cases during the reporting period.
(3) Leases
□ Applicable □ Not Applicable
Description of leases
In accordance with the Property Lease Contract signed between the Company and the related party Foshan Shunde Yinghai
Investment Co. Ltd. the Company leased the 23rd floor of Yingfeng Business Building at 8 Yixing Road Junlan Community Beijiao
Town Shunde District Foshan City as the business premises with a gross floor area of 1578.68 sqm. The rent payable for 2024 was
RMB 1336600 and the actual payment was RMB 1336600. As at December 31 2024 the above amounts have been settled.Items that brought profits or losses to the Company accounting for more than 10% of the gross profit of the Company during the
reporting period
□ Applicable □ Not Applicable
No leasing items brought profits or losses to the Company accounting for more than 10% of the gross profit of the Company during
the reporting period.
90Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Material guarantees
□ Applicable □ Not Applicable
Unit: RMB 10000
Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
Disclosure
Guarante
date of the Counter
Actual Actual Term of e for a
guarantee Guarante Guarante Collatera guarante
Guaranteed occurrenc guarante guarante Complete related
party limit e limit e type l (if any) e (if d or not
e date e amount e party or
announceme any)
not
nt
Joint and
Buyer's several
April 29 August
credit 2073.78 2073.78 liability N/A -- 4 years No No
2024312021
business guarante
e
Joint and
Buyer's several
April 29 July 4
credit 1342.32 1342.32 liability N/A -- 3 years No No
20242024
business guarante
e
Joint and
Buyer's several
April 29 Septembe
credit 716.53 716.53 liability N/A -- 1 year No No
2024 r 18 2022
business guarante
e
Joint and
Buyer's several
April 29 June 30
credit 967.84 967.84 liability N/A -- 3 years No No
20242021
business guarante
e
Joint and
Buyer's several
April 29 Septembe
credit 5397.23 5397.23 liability N/A -- 2 years No No
2024 r 11 2024
business guarante
e
Buyer's
April 29 38904.0
credit -- -- --
20247
business
Total approved limit for external guarantee Total actual amount of external guarantee
5000010497.69
during the reporting period (A1) during the reporting period (A2)
Total approved limit for external guarantee Total actual balance of external guarantee at
5000010497.69
at the end of the reporting period (A3) the end of the reporting period (A4)
Guarantees provided by the Company to subsidiaries
Disclosure
Guarante
date of the Counter
Actual Actual Term of e for a
guarantee Guarante Guarante Collatera guarante Complete
Guaranteed occurrenc guarante guarante related
party limit e limit e type l (if any) e (if d or not
e date e amount e party or
announceme any)
not
nt
Zhejiang Joint and
April 29 February 11894.2
Shangfeng 28600 several None Yes 3 years No Yes
2024320237
Special liability
91Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Blower guarante
Industrial e
Co. Ltd.Zhejiang
Joint and
Shangfeng
several
Special April 29 May 22
22350 9489.6 liability None Yes 1 year No Yes
Blower 2024 2024
guarante
Industrial
e
Co. Ltd.Zhejiang
Joint and
Shangfeng
several
Special April 29 October
30000 21750 liability None Yes 1 year No Yes
Blower 2024 31 2023
guarante
Industrial
e
Co. Ltd.Zhejiang
Joint and
Shangfeng
several
Special April 29 July 15
15000 5432 liability None Yes 1 year No Yes
Blower 2024 2024
guarante
Industrial
e
Co. Ltd.Zhejiang
Joint and
Shangfeng
several
Special April 29 February
10000 1976 liability None Yes 5 years No Yes
Blower 2024 28 2024
guarante
Industrial
e
Co. Ltd.Zhejiang
Joint and
Shangfeng
several
Special April 29 August
20000 8760 liability None Yes 1 year No Yes
Blower 2024 21 2024
guarante
Industrial
e
Co. Ltd.Joint and
Guangdong
several
Infore April 29 August
876 876.08 liability None Yes 1 year No Yes
Technology 2024 16 2023
guarante
Co. Ltd.e
Joint and
Guangdong
several
Infore April 29 April 9
2000 462.95 liability None Yes 3 years No Yes
Technology 2024 2024
guarante
Co. Ltd.e
Guangdong Joint and
Infore Smart several
April 29 May 21
Sanitation 5000 2000 liability None Yes 2 years No Yes
20242024
Technology guarante
Co. Ltd. e
Infore
Joint and
Zoomlion
several
Urban April 29 December
3000 462 liability None Yes 1 year No Yes
Environment 2024 10 2023
guarante
al Service
e
Co. Ltd.Shouxian Joint and
April 30 Novembe
Greenlander 9221 6639.39 several None Yes 15 years No Yes
2022 r 10 2022
New Energy liability
92Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Co. Ltd. guarante
e
Xiantao
Joint and
Greenlander
several
Environment April 30 June 27
27870 23470 liability None Yes 13 years No Yes
al Power 2022 2022
guarante
Generation
e
Co. Ltd.Poyang Joint and
Greenlander several
August 25 April 24
Renewable 25000 22500 liability None Yes 10 years No Yes
20222023
Energy Co. guarante
Ltd. e
Maoming
Infore Joint and
Environment several
December March 20
Water 15000 8442.05 liability None Yes 15 years No Yes
2620172018
Treatment guarante
Technology e
Co. Ltd.Joint and
Lianjiang
several
Greenlander April 30 May 25 15707.1
27563 liability None Yes 15 years No Yes
New Energy 2022 2022 2
guarante
Co. Ltd.e
Lu'an
Joint and
Zhongfeng
several
Urban April 23 June 8
8000 7100 liability None Yes 13 years No Yes
Environment 2021 2021
guarante
al Service
e
Co. Ltd.Changde Joint and
Zelian several
April 23 July 1
Environment 12000 11100 liability None Yes 15 years No Yes
20212021
al Service guarante
Co. Ltd. e
Xiantao Joint and
Yinghe several
August 21 January
Environment 30100 10000 liability None Yes 15 years No Yes
2020202021
al Protection guarante
Co. Ltd. e
Biyang Joint and
Fenghe New several
April 25 May 23
Energy 22000 20278 liability None Yes 14 years No Yes
20232023
Power Co. guarante
Ltd. e
Xiangtan Joint and
Yinglian several
April 30 July 5
Environment 15000 3730 liability None Yes 10 years No Yes
20222022
al Industry guarante
Co. Ltd. e
Huai'an Joint and
Yinghe several
August 25 December
Environment 15000 5409 liability None Yes 15 years No Yes
2022262022
Technology guarante
Co. Ltd. e
Yongshun April 29 3000 June 28 983 Joint and None Yes 15 years No Yes
93Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Zhongfeng 2024 2024 several
Jingtou liability
Environment guarante
al e
Technology
Co. Ltd.Joint and
Hubei
several
Fenghe New April 29 Septembe
15000 1800 liability None Yes 8 years No Yes
Materials 2024 r 27 2024
guarante
Co. Ltd.e
Zhejiang
Shangfeng
Special April 29
44050------
Blower 2024
Industrial
Co. Ltd.Zhejiang
Yolsh
Electric April 29
28000------
Drive 2024
Technology
Co. Ltd.Guangdong
Infore April 29
2124------
Technology 2024
Co. Ltd.Changsha
Zhongbiao
April 29
Environment 5000 -- -- --
2024
al Industry
Co. Ltd.Liling
Zhaoyang
April 29
Environment 50000 -- -- --
2024
al Protection
Co. Ltd.Hubei
Fenghe New April 29
5000------
Materials 2024
Co. Ltd.Other
April 29
holding 10000 -- -- --
2024
subsidiaries
Total actual guarantee
Total approved guarantee limit
amount for
for subsidiaries during the 299000 65884.92
subsidiaries during the
reporting period (B1)
reporting period (B2)
Total actual guarantee
Total approved guarantee limit balance for
for subsidiaries at the end of 516054 subsidiaries at the end 200259.98
the reporting period (B3) of the reporting period
(B4)
Guarantees between subsidiaries
Guaranteed Disclosure Guarante Actual Actual Guarante Collatera Counter Term of Complete Guarante
party date of the e limit occurrenc guarante e type l (if any) guarante guarante d or not e for a
94Infore Environment Technology Group Co. Ltd. 2024 Annual Report
guarantee e date e amount e (if e related
limit any) party or
announceme not
nt
Total approved guarantee limit
Total actual guarantee amount for subsidiaries
for subsidiaries during the 0 0
during the reporting period (C2)
reporting period (C1)
Total approved guarantee limit
Total actual guarantee balance for subsidiaries
for subsidiaries at the end of 0 0
at the end of the reporting period (C4)
the reporting period (C3)
Total guarantee amount (total of the three kinds above)
Total approved guarantee limit Total actual guarantee amount during the
during the reporting period 349000 reporting period (A2+B2+C2) 76382.61
(A1+B1+C1)
Total approved guarantee
limit at the end of the Total actual guarantee balance at the end of
reporting period 566054 the reporting period (A4+B4+C4) 210757.67
(A3+B3+C3)
Total actual guarantees (A4+B4+C4) as a percentage of
12.03%
the Company's net assets
Of which:
Amount of guarantees provided for shareholders the de
0
facto controller and their related parties (D)
Balance of debt guarantees provided directly or
indirectly for the guaranteed party with a liability-to- 158774.97
asset ratio over 70% (E)
Amount of the total guarantee exceeding 50% of net
0
assets (F)
Total of the three types of guarantees above (D+E+F) 158774.97
Description of any cases during the reporting period
where unexpired guarantee contracts led to guarantee
liability or had indications that the Company may None
assume joint and several liabilities for compensation (if
applicable)
Explanation of any violation of the prescribed
procedures in providing guarantees to external parties (if None
applicable)
Description of composite guarantees
□ Applicable □ Not Applicable
3. Entrusted cash management
(1) Entrusted wealth management
□ Applicable □ Not Applicable
Overview of entrusted wealth management during the reporting period
Unit: RMB 10000
Type Funding source Entrusted amount Undue amount Unrecovered Accrued
95Infore Environment Technology Group Co. Ltd. 2024 Annual Report
overdue amount impairment
amount for
unrecovered
overdue wealth
Bank's wealth
management Own funds 211000 0 0 0
product
Total 211000 0 0 0
High-risk entrusted wealth management with a material single amount or low security and low liquidity
□ Applicable □ Not Applicable
Entrusted wealth management with expected irrecoverable principal or other circumstances that may lead to impairment
□ Applicable □ Not Applicable
(2) Entrusted loans
□ Applicable □ Not Applicable
No such cases during the reporting period.
4. Other material contracts
□ Applicable □ Not Applicable
No such cases during the reporting period.XVI. Other Material Events
□ Applicable □ Not Applicable
No such cases during the reporting period.XVII. Material Events of Subsidiaries
□ Applicable □ Not Applicable
Pursuant to the Proposal on Transfer of Subsidiaries' Equity deliberated and approved by the fifth extraordinary meeting of the
Tenth Board of Directors dated January 8 2024 it was agreed to transfer 100% of equity of Foshan Shunhe Environmental Protection
Co. Ltd. to Guangdong Shunkong Development Co. Ltd. at the consideration of RMB 259.6322 million. The industrial and
commercial registration change was completed on February 1 2024.
96Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part VII Share Changes and Shareholder Information
I. Share Changes
1. Share changes
Unit: Share
Material Events of
Material Events of Subsidiaries After change
Subsidiaries
Shares as Shares as
dividend dividend
New
Quantity Ratio converted converted Others Sub-total Quantity Ratio
issues
from from capital
profit reserves
I. Restricted
14724690.05%000352313523115077000.05%
Shares
1. Shares held
00.00%0000000.00%
by the State
2. Shares held
by state-owned 0 0.00% 0 0 0 0 0 0 0.00%
corporations
3. Shares held
by other
14724690.05%000352313523115077000.05%
domestic
investors
Including:
Shares held by
00.00%0000000.00%
domestic
corporations
Shares held by
domestic 1472469 0.05% 0 0 0 35231 35231 1507700 0.05%
individuals
4. Shares held
by overseas 0 0.00% 0 0 0 0 0 0 0.00%
investors
Including:
Shares held by
00.00%0000000.00%
overseas
corporations
Shares held by
overseas 0 0.00% 0 0 0 0 0 0 0.00%
individuals
II. Unrestricted - -
317803420199.95%50400316543409299.95%
Shares 12600613 12600109
1. RMB-
--
denominated 3178034201 99.95% 504 0 0 3165434092 99.95%
1260061312600109
common shares
2.
Domestically
00.00%0000000.00%
listed foreign
shares
3. Overseas
listed foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total
--
Number of 3179506670 100.00% 504 0 0 3166941792 100.00%
1256538212564878
Shares
Reasons for share changes
□ Applicable □ Not Applicable
97Infore Environment Technology Group Co. Ltd. 2024 Annual Report
1. Due to the re-election of directors 35231 locked-up shares of senior officers were added resulting in an increase of 35231
restricted shares and a commensurate decrease of 35231 unrestricted shares.
2. As of June 26 2024 the Company had canceled all 12565382 unused shares which were held in the repurchase special
securities account in accordance with relevant laws and regulations resulting in a commensurate decrease of 12565382 unrestricted
shares.
3. As at December 31 2024 17448 shares in total were converted from the Infore Convertible Bonds issued by the Company. In
particular 504 shares were converted in 2024 resulting in a commensurate increase of the Company's unrestricted shares by 504.Approval of changes in share capital
□ Applicable □ Not Applicable
1. On April 26 2024 and May 20 2024 the sixth meeting of the Tenth Board of Directors the sixth meeting of the Tenth Board
of Supervisors and the 2023 Annual General Meeting of Shareholders were held to review and approve the relevant proposals for the
re-election of non-independent directors and non-employee supervisors for the respective sessions.
2. With the approval granted by the CSRC under Document Z.J.X.K. [2020] No. 2219 the Company publicly issued 14761896
convertible corporate bonds on November 4 2020 with a par value of RMB 100 and a total amount of RMB 1476189600. Per
approval of SZSE the Company's convertible corporate bonds of RMB 1476189600 have been listed for trading on SZSE starting
on December 2 2020. The Infore Convertible Bonds in this offering are convertible into the Company's shares from May 10 2021;
3. Pursuant to the Proposal on Canceling Repurchased Shares and Reducing the Registered Capital deliberated and approved by
the sixth meeting of the Tenth Board of Directors and the 2023 Annual General Meeting of Shareholders on April 26 2024 and May
20 2024 it was agreed to cancel all 12565382 unused shares which were held in the repurchase special securities account and
correspondingly reduce the Company's registered capital.Transfer of shares
□ Applicable □ Not Applicable
1. During the reporting period China Securities Depository and Clearing (Shenzhen) Corporation Limited handled the share
registration procedures for 504 shares converted from convertible corporate bonds.
2. During the reporting period China Securities Depository and Clearing (Shenzhen) Corporation Limited handled the share
cancellation procedures for unused 12565382 shares which were held in the repurchase special securities account.Effects of share changes on basic earnings per share diluted earnings per share net asset value per share attributable to the Company's
common shareholders and other financial indicators of the prior year and the prior accounting period respectively
□ Applicable □ Not Applicable
Other information that the Company deems disclosable or disclosable as required by the securities regulatory authorities
□ Applicable □ Not Applicable
2. Changes in restricted shares
□ Applicable □ Not Applicable
Unit: Share
Number of Increase of Decrease of Number of
Reasons for Date of lifting
Name of shares held at restricted restricted shares shares held at
trading trading
shareholder the beginning of shares during during the the end of the
restriction restriction
the period the period period period
Locked-up Unlocked at
Others 1472469 35231 0 1507700 shares of senior 25% of the total
officers number of
98Infore Environment Technology Group Co. Ltd. 2024 Annual Report
shares held
each year
Total 1472469 35231 0 1507700 -- --
II. Issuance and Listing of Securities
1. Issuance of securities (exclusive of preference shares) during the reporting period
□ Applicable □ Not Applicable
2. Changes in total number of shares shareholder structure and asset and liability structures
□ Applicable □ Not Applicable
1. 35231 locked-up shares of senior officers were added resulting in an increase of 35231 restricted shares and a commensurate
decrease of 35231 unrestricted shares.
2. With the approval granted by the CSRC under Document Z.J.X.K. [2020] No. 2219 the Company publicly issued 14761896
convertible corporate bonds on November 4 2020 with a par value of RMB 100 and a total amount of RMB 1476189600. Per
approval of SZSE the Company's convertible corporate bonds of RMB 1476189600 have been listed for trading on SZSE starting
on December 2 2020. The Infore Convertible Bonds in this offering are convertible into the Company's shares from May 10 2021. On
January 3 2025 the Company disclosed the Announcement on Results of Conversion of Convertible Bonds and Changes in Share
Capital in the Fourth Quarter of 2024. As at December 31 2024 17448 shares in total were converted from the Infore Convertible
Bonds issued by the Company. In particular 504 shares were converted in 2024 resulting in a commensurate increase of the Company's
unrestricted shares by 504;
3. As of December 31 2024 the Company had canceled all 12565382 unused shares which were held in the repurchase special
securities account in accordance with relevant laws and regulations resulting in a commensurate decrease of 12565382 unrestricted
shares.In summary the total number of shares of the Company changed from 3179506670 shares at the beginning of the period to
3166941792 shares. Among them the number of restricted shares changed from 1472469 shares to 1507700 shares and the number
of unrestricted shares changed from 3178034201 shares to 3165434092 shares.
3. Existing internal employee shares
□ Applicable □ Not Applicable
III. Controlling Shareholders and De Facto Controller
1. Number of shareholders and their shareholdings
Unit: Share
Number of Number of Number of Number of preference
shareholders shareholders preference shareholders with
of common at the end of shareholders resumed voting power at
shares at the 30305 the month 46826 with resumed 0 the end of the previous 0
end of the prior to the voting power month prior to the
reporting disclosure at the end of disclosure date of this
period date of this the reporting report (if any) (see Note
99Infore Environment Technology Group Co. Ltd. 2024 Annual Report
report period (if any) 8)
(see Note 8)
Shareholders holding over 5% of total shares or the top 10 shareholders (excluding shares lent through refinancing)
Shareholding s Shares pledged tagged
Increase/decr
at the end of Number of Number of or frozen Name of Nature of Shareholding ease during the
the unrestricted
shareholder shareholders ratio reporting restricted
reporting Share
period shares held
shares held Quantity
period status
Ningbo Domestic
Infore Asset non-state-
32.14% 1017997382 0 0 1017997382 Pledged 407198953
Management owned legal
Co. Ltd. persons
Zoomlion
Heavy Domestic
Industry non-state- Not
12.61%399214659003992146590
Science and owned legal applicable
Technology persons
Co. Ltd.Domestic
Infore
non-state-
Group Co. 11.36% 359609756 0 0 359609756 Pledged 164461047
owned legal
Ltd.persons
Hongchuang
(Shenzhen) Domestic
Investment non-state- Not
9.80%310423813003104238130
Center owned legal applicable
(Limited persons
Partnership)
Infore
Environment
Technology
Group Co.Ltd.－The Not
Others 2.05% 64789616 0 0 64789616 0
Second applicable
Employee
Stock
Ownership
Plan
Domestic
Not
He Jianfeng natural 2.01% 63514690 0 0 63514690 0
applicable
persons
Zara Green
Overseas Not
Hong Kong 1.73% 54778335 0 0 54778335 0
legal person applicable
Limited
Hong Kong
Securities
Overseas Not
Clearing 1.31% 41407476 14216625 0 41407476 0
legal person applicable
Company
Ltd.Domestic
Not
Chen Liyuan natural 0.98% 31018000 0 0 31018000 0
applicable
persons
Guangdong
Hengzejian
State-owned Not
Industrial 0.89% 28059147 0 0 28059147 0
corporation applicable
Investment
Co. Ltd.
100Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Strategic investor/general corporation
becoming a top 10 shareholder in a rights Not applicable.issue (if any) (see Note 3)
Ningbo Infore Asset Management Co. Ltd. and Infore Group Co. Ltd. share the same
Related party or acting-in-concert de facto controller He Jianfeng and they are persons acting in concert mutually. Apart
relationship among the aforementioned from that the Company is not aware of any related party or acting-in-concert
shareholders relationship (as defined in the Measures for the Administration of the Takeover of Listed
Companies) among other shareholders aforementioned.Shareholders above entrusting/entrusted
Not applicable.with or waiving voting rights
Top 10 shareholders with repurchase
NA.account (if any) (see Note 10)
Shareholding of the top 10 unrestricted shareholders (excluding shares lent through securities financing transactions and locked-up
shares of senior officers)
Number of unrestricted shares at the end of the
Type of share
reporting period
Name of shareholder
Type of share Quantity
Ningbo Infore Asset Management Co. RMB-dominated
10179973821017997382
Ltd. common shares
Zoomlion Heavy Industry Science and RMB-dominated
399214659399214659
Technology Co. Ltd. common shares
RMB-dominated
Infore Group Co. Ltd. 359609756 359609756
common shares
Hongchuang (Shenzhen) Investment RMB-dominated
310423813310423813
Center (Limited Partnership) common shares
Infore Environment Technology Group
RMB-dominated
Co. Ltd.－The Second Employee Stock 64789616 64789616
common shares
Ownership Plan
RMB-dominated
He Jianfeng 63514690 63514690
common shares
RMB-dominated
Zara Green Hong Kong Limited 54778335 54778335
common shares
Hong Kong Securities Clearing Company RMB-dominated
4140747641407476
Ltd. common shares
RMB-dominated
Chen Liyuan 31018000 31018000
common shares
Guangdong Hengzejian Industrial RMB-dominated
2805914728059147
Investment Co. Ltd. common shares
Related party or acting-in-concert Ningbo Infore Asset Management Co. Ltd. and Infore Group Co. Ltd. share the same de
relationship among top 10 unrestricted facto controller He Jianfeng and they are persons acting in concert mutually. Apart from
public shareholders as well as between that the Company is not aware of any related party or acting-in-concert relationship (as
top 10 unrestricted public shareholders defined in the Measures for the Administration of the Takeover of Listed Companies)
and top 10 shareholders among other shareholders aforementioned.Top 10 common shareholders involved in
Infore Environment Technology Group Co. Ltd. - Second Employee Stock Ownership
securities margin trading (if any) (see
Plan holds 64789616 shares in the Company through credit accounts.Note 4)
Shareholders holding over 5% of total shares the top 10 shareholders and the top 10 unrestricted shareholders involved in securities
lending through securities financing transactions
□ Applicable □ Not Applicable
Changes in the top 10 shareholders and the top 10 unrestricted shareholders caused by the lending/return of shares through securities
financing transactions compared with the previous period
□ Applicable □ Not Applicable
101Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Whether any top 10 common shareholders or top 10 unrestricted common shareholders of the Company conducted any agreed
repurchase transactions during the reporting period
□ Yes □ No
No such cases during the reporting period.
2. Controlling shareholder
Nature of controlling shareholder: Natural person
Type of controlling shareholder: Corporation
Legal
Name of controlling Date of Principal business
Representative/Person- Organization code
shareholder incorporation activities
in-charge
Asset management
Ningbo Infore Asset
Kuang Guangxiong May 2 2017 91330206MA290L5J3L industrial investment
Management Co. Ltd.investment management.Other domestically and overseas listed companies as controlling
Not applicable.shareholders and equity participants during the reporting period
Changes in controlling shareholders during the reporting period
□ Applicable □ Not Applicable
During the reporting period there was no change in controlling shareholders of the Company.
3. De facto controller and persons acting in concert
Nature of de facto controller: Domestic natural person
Type of de facto controller: Natural person
Residency in other
Name of de facto controller Relationship with de facto controller Nationality
country/region or not
He Jianfeng Himself China Yes
Main occupation and position Chairman of the Board and President of Infore Group Co. Ltd.Controlling interests in other
domestically and overseas Beijing Baination Pictures Co. Ltd. (Stock code: 300291) and Jason Furniture (Hangzhou) Co.listed companies in the past Ltd. (Stock code: 603816).
10 years
Change in de facto controller during the reporting period
□ Applicable □ Not Applicable
During the reporting period there was no change in the de facto controller of the Company.Ownership and control relationship between the de facto controller and the Company
102Infore Environment Technology Group Co. Ltd. 2024 Annual Report
The de facto controller controls the Company via trust or other asset management arrangement
□ Applicable □ Not Applicable
4. The pledged shares in the Company's controlling shareholder or largest shareholder and its persons
acting in concert account for 80% of their total shareholdings
□ Applicable □ Not Applicable
5. Other corporate shareholders with a shareholding of more than 10%
□ Applicable □ Not Applicable
Name of Legal
Date of Principal business or management
corporate representative/Person- Registered capital
incorporation activities
shareholder in-charge
Development production and sales of
engineering machinery agricultural
machinery sanitation machinery crane
trucks and exclusive chassis fire engines
and exclusive chassis aerial work
machines emergency and rescue
equipment mining machinery machinery
in coal mines material transportation
facilities other machinery metal and non-
metal materials and new high-tech
products of optical-electro-mechanical
Zoomlion
integration and provision of leasing and
Heavy
after-sale technical services; Sales of
Industry
Zhan Chunxin August 31 1999 RMB 8677992236 building and decorative materials vehicles
Science and
for engineering and metal materials
Technology
chemical materials and chemical products
Co. Ltd.(excluding hazardous chemicals and
monitoring products); Sales of lubricant
oil lubricating grease and hydraulic oil
(excluding hazardous chemicals); Retail of
refined oil products (operated by licensed
subsidiaries only); Operation of
commodity and technology import and
export businesses; Investment in real
estate with self-owned assets (without
permit to carry out national financially
regulated and financial credit businesses
103Infore Environment Technology Group Co. Ltd. 2024 Annual Report
such as absorbing deposits fund-raising
and collection entrusted loans and issuing
notes and lending). Sales of used vehicles;
Disassembly and recovery of disused
machinery equipment. (Business activities
subject to approval under laws shall not be
carried out unless approval from
competent authorities has been obtained.)
Investment in various industries
investment management investment
consultation and asset management;
Enterprise management and enterprise
consulting; Computer information
services and software services; Film
production and planning (based on
validated licenses); Advertising planning
and production; Appraisal and consultancy
services of artwork (excluding ivory and
ivory products) and collectibles; Planning
of culture and art exhibitions; Sales of
maternal and baby products and clothing;
Supply and marketing of domestic
business and goods except for the above
items; Business information consulting
services; Import and export of
commodities or technologies (excluding
the import and export of commodities and
Infore Group
He Jianfeng April 19 2002 RMB 4450000000 technologies that are prohibited by the
Co. Ltd.state or involve administrative review and
approval); R&D manufacturing sales and
leasing of sanitation equipment robots
new energy vehicles and environmental
monitoring equipment; Cleaning
collection recycling transportation and
treatment services of urban domestic
waste; Undertaking environmental
engineering and water pollution control
projects; R&D manufacturing and sales of
ventilators and air-cooling water-cooling
and air conditioning equipment; R&D
manufacturing and sales of new materials
equipment and products. (Production and
manufacturing projects are operated by
subsidiaries) (Business activities subject to
approval under laws shall not be carried
out unless approval from competent
authorities has been obtained.)
6. Limitations on shareholding reduction by the Company's controlling shareholder de facto controller
reorganizer and other commitment makers
□ Applicable □ Not Applicable
IV. Repurchase of Shares during the Reporting Period
Progress of share repurchase
104Infore Environment Technology Group Co. Ltd. 2024 Annual Report
□ Applicable □ Not Applicable
Progress of reducing the repurchased shares by way of centralized bidding
□ Applicable □ Not Applicable
105Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part VIII Information on Preference Shares
□ Applicable □ Not Applicable
During the reporting period the Company had no preference shares.
106Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part IX Information on Bonds
□ Applicable □ Not Applicable
I. Enterprise Bond
□ Applicable □ Not Applicable
During the reporting period the Company had no enterprise bonds.II. Corporate Bond
□ Applicable □ Not Applicable
During the reporting period the Company had no corporate bonds.III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable □ Not Applicable
During the reporting period the Company had no debt financing instruments of non-financial enterprises.IV. Convertible Corporate Bonds
□ Applicable □ Not Applicable
1. Previous adjustments to conversion price
With the approval granted by the CSRC under Document Z.J.X.K. [2020] No. 2219 the Company publicly issued 14761896
convertible corporate bonds on November 4 2020 with a par value of RMB 100 and a total amount of RMB 1476189600. The initial
conversion price of this tranche of convertible bonds is RMB 8.31 per share. In case of distribution of bonus shares increase of share
capital through conversion issuance of new shares (excluding the increased share capital due to the conversion of convertible corporate
bonds issued this time) allotment of shares and distribution of cash dividends the conversion price will be adjusted accordingly
pursuant to relevant laws and regulations.On July 8 2021 the Company's equity distribution for 2020 was completed. In accordance with the issuance terms of the
Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. and the relevant
regulations of the CSRC on the issuance of convertible bonds the conversion price of Infore Convertible Bonds was adjusted from the
original RMB 8.31 per share to RMB 8.19 per share since July 8 2021. The adjusted conversion price took effect on July 8 2021.On July 20 2022 the Company's equity distribution for 2021 was completed. In accordance with the relevant requirements of the
Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. the conversion
price of Infore Convertible Bonds was adjusted from the original RMB 8.19 per share to RMB 8.09 per share effective on July 20
2022. The adjusted conversion price took effect on July 20 2022.
On July 18 2023 the Company's equity distribution for 2022 was completed. In accordance with the relevant requirements of the
Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. the conversion
price of Infore Convertible Bonds was adjusted from the original RMB 8.09 per share to RMB 7.98 per share effective on July 18
2023. The adjusted conversion price took effect on July 18 2023.
107Infore Environment Technology Group Co. Ltd. 2024 Annual Report
On July 16 2024 the Company's equity distribution for 2023 was completed. In accordance with the relevant requirements of the
Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. the conversion
price of Infore Convertible Bonds was adjusted from the original RMB 7.98 per share to RMB 7.86 per share effective on July 16
2024. The adjusted conversion price took effect on July 16 2024.
2. Information on cumulative conversion of bonds into shares
□ Applicable □ Not Applicable
The
number
of shares
converte
d as a
Unconvert
percentag
Abbreviat Start and Accumulat Accumulat ed amount
Total e of the
ed name end date ed ed Amount as a
issued Total issued total
of of conversion conversion unconverted percentage
number amount (RMB) issued
convertibl conversio amount number (RMB) of the total
(sheet) shares in
e bond n (RMB) (share) issued
the
amount
Company
before
start of
conversio
n
Infore
May 10 1476189 1476189600. 1476046700.Convertibl 142900.00 17448 0.00% 99.99%
202160000
e Bonds
3. Information on the top 10 convertible bond holders
As a
Number of Amount of percentage of
Nature of
convertible bonds convertible bonds convertible
convertible
No. Name of convertible bond holder held at the end of held at the end of bonds held at
bond
the reporting the reporting the end of the
holder
period (sheet) period (RMB) reporting
period
China Merchants Bank Co. Ltd. - Bosera
CSI Convertible and Exchangeable Bonds
1 Others 637756 63775600.00 4.32%
Trading Open-end Index Securities
Investment Fund
China Construction Bank Corporation -
2 Zheshang Fengli Enhanced Bond Securities Others 502119 50211900.00 3.40%
Investment Fund
CITIC Securities - Sany Heavy Industry
Co. Ltd. - CITIC Securities Sany Premium
3 Others 459310 45931000.00 3.11%
Customized No. 1 Single Asset
Management Plan
PICC Asset Flexible Juxin Hybrid Pension
4 Product - China Minsheng Banking Corp. Others 400052 40005200.00 2.71%
Ltd.
5 Basic Pension Insurance Fund 107 Portfolio Others 389467 38946700.00 2.64%
108Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Shanghai Colight Asset Management Co.
6 Ltd. - Colight Tonghui Fixed Income No. 1 Others 374534 37453400.00 2.54%
Innovative Investment Fund
7 National Social Security Fund 210 Portfolio Others 347716 34771600.00 2.36%
China Minsheng Banking Corp. Ltd. -
Anxin Steady Appreciation Flexible
8 Others 340399 34039900.00 2.31%
Allocation Hybrid Securities Investment
Fund
China Minsheng Banking Corp. Ltd. -
Changxin Wenyu Three-month Regular
9 Others 300087 30008700.00 2.03%
Open Bond Initiated Securities Investment
Fund
China AMC Yannianyishou Fixed-income
10 Pension Product - Agricultural Bank of Others 295006 29500600.00 2.00%
China Limited
4. Information on material changes in the profitability asset status and credit standing of guarantor
□ Applicable □ Not Applicable
5. Change in the Company's liabilities and credit standing and cash arrangements for debt repayment in
coming years at the end of the reporting period
On June 24 2024 China Chengxin International Credit Rating Co. Ltd. issued the Follow-up Rating Report on the Public Offering
of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. (2024) (X.P.W.H.Z. [2024] G.Z. No.1193)
assigning the Company a corporate credit rating of AA+ with stable rating outlook for the coming 12 to 18 months. For details please
refer to the Follow-up Rating Report on the Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group
Co. Ltd. (2024) on June 28 2024 on Cninfo (www.cninfo.com.cn).The primary sources of funding for the Company to pay the principal and interest of the convertible bonds in the future are as
follows: (1) The Company seeks organic growth by strengthening financial management and increasing net cash inflows and net profits
from operating activities; (2) The Company has a good credit standing and a reasonable asset mix and can obtain financing from banks
and other avenues to reasonably arrange for redemption funds.V. During the Reporting Period the Loss in the Scope of Consolidated Statements
Outstripped 10% of the Net Assets at the End of the Previous Year
□ Applicable □ Not Applicable
VI. Overdue Interest-Bearing Debts Other Than Bonds at the End of the Reporting Period
□ Applicable □ Not Applicable
VII. Violation of Rules and Regulations During the Reporting Period
□ Yes □ No
109Infore Environment Technology Group Co. Ltd. 2024 Annual Report
VIII. Main Accounting Data and Financial Indicators of the Company in Last Two Years as at
the End of the Reporting Period
Unit: RMB 10000
At the end of the reporting
Items At the end of last year YoY change
period
Current ratio 1.80 1.75 2.86%
Liability-to-asset ratio 39.36% 38.39% 0.97%
Quick ratio 1.67 1.62 3.09%
The reporting period The prior year YoY change
Net profit after deducting
non-recurring gains and 50217.67 44475.34 12.91%
losses
EBITDA/total liabilities 13.77% 14.29% -0.52%
Interest coverage ratio 4.74 4.63 2.38%
Cash/interest coverage ratio 10.93 13.68 -20.10%
EBITDA/interest coverage
9.719.393.41%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage ratio 100.00% 100.00% 0.00%
110Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Part X Financial Report
Audit Report
Type of audit opinions Standard unqualified opinion
Signing date of the auditor's report April 24 2025
Name of the auditor Pan-China Certified Public Accountants LLP (Special General Partnership)
No. of the auditor's report PCCPAAR [2025] No. 7496
Names of certified public accountants Lin Wang and Cao Cuijuan
Main body of the auditor's report
To the Shareholders of Infore Environment Technology Group Co. Ltd.:
I. Audit Opinion
We have audited the financial statements of Infore Environment Technology Group Co. Ltd.(the “Company”) which comprise the consolidated and parent company balance sheets as at
December 31 2024 the consolidated and parent company income statements consolidated and parent
company cash flow statements and consolidated and parent company statements of changes in equity
for the year then ended as well as notes to financial statements.In our opinion the accompanying financial statements present fairly in all material respects the
financial position of the Company as at December 31 2024 and its financial performance and its
cash flows for the year then ended in accordance with China Accounting Standards for Business
Enterprises.II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities
under those standards are further described in the Certified Public Accountant's Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled
other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole and in forming our opinion thereon and
111Infore Environment Technology Group Co. Ltd. 2024 Annual Report
we do not express a separate opinion on these matters.(I) Revenue recognition
1. Key audit matters
Please refer to section III (XXVII) and V (II) 1 of notes to the financial statements for details.The Company is mainly engaged in sales of environmental and sanitation machinery and
ventilation equipment as well as sanitation operation service. In 2024 the operating revenue
amounted to 13117.89 million yuan with year-over-year growth of 3.85%. As operating revenue is
one of the key performance indicators of the Company there might be inherent risks that the
Company's management (the “Management”) adopts inappropriate revenue recognition to achieve
specific goals or expectations we have identified revenue recognition as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition assessed
the design of these controls determined whether they had been executed and tested the effectiveness
of the operation;
(2) We checked sales contracts obtained understandings of main contractual terms or conditions
and assessed whether the revenue recognition method was appropriate;
(3) We performed analysis procedure on operating revenue and gross margin by month product
customer project etc. so as to identify whether there are significant or abnormal fluctuations and
find out the reason;
(4) For revenue from sales of environmental and sanitation machinery ventilation equipment
etc. we selected items to check related supporting documents including sales contracts sales
invoices outbound delivery orders delivery notes delivery receipts etc. For revenue from sanitation
operation service we selected items to check related supporting documents including sales contracts
service assessment statements supervision schedule etc.;
(5) We performed confirmation procedures on sales amount of selected items in combination
with confirmation procedure of accounts receivable and contract assets;
(6) We performed cut-off tests to check whether the operating revenue was recognized in the
appropriate period; and
112Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(7) We checked whether information related to operating revenue had been presented
appropriately in the financial statements.(II) Impairment of accounts receivable and long-term receivables
1. Key audit matters
Please refer to section III (XII) V (I) 3 9 and 11 of notes to the financial statements for details.As of December 31 2024 the book balance of accounts receivable amounted to 7182.52 million
yuan with provision for bad debts of 958.09 million yuan and the carrying amount of 6224.43
million yuan; the book balance of long-term receivables (including those due within one year)
amounted to 1201.90 million yuan with provision for bad debts of 93.11 million yuan and the
carrying amount of 1108.79 million yuan. The carrying amount of accounts receivable and long-term
receivables (collectively referred to as “receivables”) totaled 7333.22 million yuan.Based on credit risk features of receivables the Management measures the loss allowance at the
amount of lifetime expected credit losses either on an individual basis or on a collective basis. As the
amounts of receivables are significant and the impairment test involves significant judgment of the
Management we have identified impairment of receivables as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for impairment of receivables are as follows:
(1) We obtained understandings of key internal controls related to impairment of receivables
assessed the design of these controls determined whether they had been executed and tested the
effectiveness of the operation;
(2) We reviewed the outcome of the Management's previous estimates on provision for bad debts
or their subsequent re-estimations;
(3) We reviewed the consideration of the Management on credit risk assessment of receivables
and objective evidence and assessed whether the credit risk features of receivables had been
appropriately identified by the Management;
(4) For receivables with expected credit losses measured on an individual basis we reviewed
the Management's estimations on the expected future cash flows assessed the appropriateness of
significant assumptions and the appropriateness relevance and reliability of data used in the
estimations and checked them with acquired external evidence;
113Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(5) For receivables with expected credit losses measured on a collective basis we assessed the
reasonableness of portfolio classification on the basis of credit risk features; we assessed the
reasonableness of expected credit loss rate of accounts receivable determined by the Management
including the appropriateness of significant assumptions and the appropriateness relevance and
reliability of data used; we tested whether the Management's calculation of provision for bad debts
was accurate;
(6) We checked the subsequent collection of receivables and assessed the reasonableness of
provision for bad debts made by the Management; and
(7) We checked whether information related to impairment of receivables had been presented
appropriately in the financial statements.(III) Impairment of goodwill
1. Key audit matters
Please refer to section III (XXI) and V (I) 20 of notes to the financial statements for details.As of December 31 2024 the cost of goodwill amounted to 5939.76 million yuan with
provision for impairment of 624.12 million yuan and the carrying amount of 5315.64 million yuan
accounting for 17.94% of total assets.For asset group or asset group portfolio related to goodwill the Management will perform
impairment test on goodwill together with related asset group or asset group portfolio and the
recoverable amount of related asset group or asset group portfolio is determined based on the present
value of estimated future cash flows. As the amount of goodwill is significant and impairment test
involves significant judgment of the Management we have identified impairment of goodwill as a
key audit matter.
2. Responsive audit procedures
Our main audit procedures for impairment of goodwill are as follows:
(1) We obtained understandings of key internal controls related to impairment of goodwill
assessed the design of these controls determined whether they had been executed and tested the
effectiveness of the operation;
(2) We reviewed the outcome of the Management's previous estimates on the present value of
future cash flows or their subsequent re-estimations;
114Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(3) We assessed the competency professional quality and objectivity of external appraisers
engaged by the Management;
(4) We assessed the competency professional quality and objectivity of experts engaged by us
and the appropriateness of their works;
(5) We assessed the appropriateness and consistency of impairment test method adopted by the
Management;
(6) We assessed the appropriateness of significant assumptions used in impairment test and
reviewed whether relevant assumptions were consistent with overall economy environment industry
condition management situation historical experience operation plan approved budget meeting
summary assumptions used in other accounting estimates and related assumptions used in other areas
of business activities;
(7) We reviewed the sensitivity analysis on key assumptions performed by the Management
assessed the effect of changes in key assumptions on impairment test result and identified signs of
possible management bias in choosing key assumptions;
(8) We assessed the appropriateness relevance and reliability of data used by the Management
in the impairment test and reviewed the consistency of related information in the impairment test;
(9) We tested whether the Management's calculation of present value of estimated future cash
flows was accurate; and
(10) We checked whether information related to impairment of goodwill had been presented
appropriately in the financial statements.IV. Other Information
The Management is responsible for the other information. The other information comprises the
information included in the Company's annual report but does not include the financial statements
and our auditor's report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
115Infore Environment Technology Group Co. Ltd. 2024 Annual Report
misstated.If based on the work we have performed we conclude that there is a material misstatement of
the other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for preparing and presenting fairly the financial statements in
accordance with China Accounting Standards for Business Enterprises as well as designing
implementing and maintaining internal control relevant to the preparation of financial statements that
are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the
Company's ability to continue as a going concern disclosing as applicable matters related to going
concern and using the going concern basis of accounting unless the Management either intends to
liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting
process.VI. Certified Public Accountant's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement whether due to fraud or error and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with China Standards on Auditing will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if individually or in the aggregate they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism throughout the audit
performed in accordance with China Standards on Auditing. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due
to fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal
116Infore Environment Technology Group Co. Ltd. 2024 Annual Report
control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management.(IV) Conclude on the appropriateness of the Management's use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However future events or conditions may cause the Company to cease
to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements and
whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We remain sole
responsibility for our audit opinion.We communicate with those charged with governance regarding the planned audit scope time
schedule and significant audit findings including any deficiencies in internal control of concern that
we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable related safeguards.From the matters communicated with those charged with governance we determine those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter or when in extremely rare circumstances
117Infore Environment Technology Group Co. Ltd. 2024 Annual Report
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.Pan-China Certified Public Accountants LLP Chinese Certified Public Accountant:林旺
(Engagement Partner)
Hangzhou · China Chinese Certified Public Accountant:曹翠娟
Date of Report: April 24 2025
The auditor's report and the accompanying financial statements are English translations of the Chinese auditor's report and statutory
financial statements prepared under accounting principles and practices generally accepted in the People's Republic of China. These
financial statements are not intended to present the financial position and financial performance and cash flows in accordance with
accounting principles and practices generally accepted in other countries and jurisdictions. In case the English version does not
conform to the Chinese version the Chinese version prevails.
118Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Consolidated balance sheet as at December 31 2024
(Expressed in Renminbi Yuan)
Note
Assets Closing balance December 31 2023
No.Current assets:
Cash and bank balances 1 5117995117.22 4411376583.78
Settlement funds
Loans to other banks
Held-for-trading financial assets
Derivative financial assets
Notes receivable 2 2444245.61 4947131.83
Accounts receivable 3 6224430217.77 5867669476.86
Receivables financing 4 201675177.13 146814501.64
Advances paid 5 116555682.67 140241046.66
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 6 160267453.49 316661073.26
Financial assets under reverse repo
Inventories 7 1041115491.00 971229637.15
Including: Data resources
Contract assets 8 94117942.03 74803489.48
Assets held for sale
Non-current assets due within one year 9 483484497.10 552082464.00
Other current assets 10 597468283.91 523880405.80
Total current assets 14039554107.93 13009705810.46
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables 11 625304161.32 423098527.59
Long-term equity investments 12 682287056.09 681629084.69
Other equity instrument investments 13 1282971.01 15352971.01
Other non-current financial assets
Investment property 14 1053133.20 1138868.60
Fixed assets 15 2259900141.60 2338316124.14
Construction in progress 16 460662679.72 288057018.89
Productive biological assets
Oil & gas assets
Right-of-use assets 17 16456043.60 25125671.95
Intangible assets 18 5660386100.81 5984348824.39
Including: Data resources
Development expenditures 19
Including: Data resources
Goodwill 20 5315639985.65 5645365375.67
Long-term prepayments 21 32459369.22 31130797.49
Deferred tax assets 22 127979852.03 116448305.64
Other non-current assets 23 413364735.69 488484179.84
Total non-current assets 15596776229.94 16038495749.90
Total assets 29636330337.87 29048201560.36
Legal representative: Officer in charge of accounting: Head of accounting department:
119Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Consolidated balance sheet as at December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Liabilities & Equity Note No. Closing balance December 31 2023
Current liabilities:
Short-term borrowings 25 113697615.88 126939855.26
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 26 1982522352.45 2294276551.46
Accounts payable 27 3672499338.29 2918543704.46
Advances received
Contract liabilities 28 239860672.03 306777173.57
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposits for agency security transaction
Deposits for agency security underwriting
Employee benefits payable 29 586442924.01 490900839.98
Taxes and rates payable 30 220358221.46 124031931.13
Other payables 31 736723069.40 709941824.77
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 32 211138376.82 405027444.29
Other current liabilities 33 28803209.66 36931126.97
Total current liabilities 7792045780.00 7413370451.89
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 34 1987236842.43 1884356851.73
Bonds payable 35 1404699758.75 1360603802.12
Including: Preferred shares
Perpetual bonds
Lease liabilities 36 7830870.16 16170790.76
Long-term payables 37 31687999.95 302949472.95
Long-term employee benefits payable
Provisions 38 1049769.45 1994511.41
Deferred income 39 386252654.20 115340494.42
Deferred tax liabilities 22 45414359.52 47219579.85
Other non-current liabilities 40 8148148.14 8148148.14
Total non-current liabilities 3872320402.60 3736783651.38
Total liabilities 11664366182.60 11150154103.27
Equity:
Share capital 41 3166941792.00 3179506670.00
Other equity instruments 42 266913810.18 266914714.33
Including: Preferred shares
Perpetual bonds
Capital reserve 43 9557237328.20 9661398721.27
Less: Treasury shares 44 94132795.17
Other comprehensive income 45 -17745734.84 -4630000.00
Special reserve 46
Surplus reserve 47 423116339.31 379017020.19
General risk reserve
Undistributed profit 48 4122982090.28 4049434826.11
Total equity attributable to the parent company 17519445625.13 17437509156.73
Non-controlling interest 452518530.14 460538300.36
Total equity 17971964155.27 17898047457.09
Total liabilities & equity 29636330337.87 29048201560.36
Legal representative: Officer in charge of accounting: Head of accounting department:
120Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Parent company balance sheet as at December 31 2024
(Expressed in Renminbi Yuan)
Note
Assets Closing balance December 31 2023
No.Current assets:
Cash and bank balances 681729562.77 564746779.67
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing 3049680.44 43226079.68
Advances paid 264874.65 450233.21
Other receivables 1 4109183327.45 4470847162.66
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 4794227445.31 5079270255.22
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2 16966182637.80 16970439351.38
Other equity instrument investments 1282971.01 15352971.01
Other non-current financial assets
Investment property
Fixed assets
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 610009.02 1830027.06
Intangible assets 205389.99 744535.28
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 16968281007.82 16988366884.73
Total assets 21762508453.13 22067637139.95
Legal representative: Officer in charge of accounting: Head of accounting department:
121Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Parent company balance sheet as at December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance December 31 2023
No.Current liabilities:
Short-term borrowings 8006821.92
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 20254973.30 34562159.28
Accounts payable 1137507.93 1137507.93
Advances received
Contract liabilities
Employee benefits payable 3081440.43 3603061.04
Taxes and rates payable 6018372.68 6535689.77
Other payables 439094958.95 783282804.29
Liabilities held for sale
Non-current liabilities due within one year 11559669.59 12180055.74
Other current liabilities
Total current liabilities 481146922.88 849308099.97
Non-current liabilities:
Long-term borrowings 38100008.00 48985720.00
Bonds payable 1404699758.75 1360603802.12
Including: Preferred shares
Perpetual bonds
Lease liabilities 626060.41
Long-term payables 3000000.00 3000000.00
Long-term employee benefits payable
Provisions 952985.85 1563887.81
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 1446752752.60 1414779470.34
Total liabilities 1927899675.48 2264087570.31
Equity:
Share capital 3166941792.00 3179506670.00
Other equity instruments 266913810.18 266914714.33
Including: Preferred shares
Perpetual bonds
Capital reserve 15243099431.46 15324662735.39
Less: Treasury shares 94132795.17
Other comprehensive income -18700000.00 -4630000.00
Special reserve
Surplus reserve 388895949.89 344796630.77
Undistributed profit 787457794.12 786431614.32
Total equity 19834608777.65 19803549569.64
Total liabilities & equity 21762508453.13 22067637139.95
Legal representative: Officer in charge of accounting: Head of accounting department:
122Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Consolidated income statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Items Note No. Current period cumulative Preceding period comparative
I. Total operating revenue 1 13117894323.95 12631050967.34
Including: Operating revenue 1 13117894323.95 12631050967.34
Interest income
Premiums earned
Revenue from handling fees and commissions
II. Total operating cost 12223590697.65 11755419190.66
Including: Operating cost 1 10261555795.35 9754950286.42
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 2 76891691.83 70091589.07
Selling expenses 3 713507964.56 784866753.52
Administrative expenses 4 773511609.91 726159237.45
R&D expenses 5 317117284.00 344030239.33
Financial expenses 6 81006352.00 75321084.87
Including: Interest expenses 148707477.58 156635777.38
Interest income 74268310.95 99626077.56
Add: Other income 7 137108552.70 119986816.29
Investment income (or less: losses) 8 -30889428.46 -51597205.92
Including: Investment income from associates and joint ventures 21424762.72 4960692.79
Gains from derecognition of financial assets at amortized cost -50286665.91
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses)
Credit impairment loss 9 -262370919.54 -216352591.11
Assets impairment loss 10 -31710185.75 -123390769.02
Gains on asset disposal (or less: losses) 11 -31931.69 -1191825.82
III. Operating profit (or less: losses) 706409713.56 603086201.10
Add: Non-operating revenue 12 21214649.95 19846705.60
Less: Non-operating expenditures 13 79294913.15 13031066.19
IV. Profit before tax (or less: total loss) 648329450.36 609901840.51
Less: Income tax expenses 14 105254332.60 97357651.45
V. Net profit (or less: net loss) 543075117.76 512544189.06
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net loss) 543075117.76 512544189.06
2. Net profit from discontinued operations (or less: net loss)
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company (or less: net loss) 513514275.54 498383730.00
2. Net profit attributable to non-controlling shareholders (or less: net loss) 29560842.22 14160459.06
VI. Other comprehensive income after tax 15 -13115734.84
Items attributable to the owners of the parent company -13115734.84
(I) Not to be reclassified subsequently to profit or loss -14070000.00
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments -14070000.00
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss 954265.16
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve 954265.16
7. Others
Items attributable to non-controlling shareholders
VII. Total comprehensive income 529959382.92 512544189.06
Items attributable to the owners of the parent company 500398540.70 498383730.00
Items attributable to non-controlling shareholders 29560842.22 14160459.06
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.16 0.16
(II) Diluted EPS (yuan per share) 0.16 0.16
Legal representative: Officer in charge of accounting: Head of accounting department:
123Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Parent company income statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Operating revenue 1 86987.42 156799.03
Less: Operating cost 1 45108.06
Taxes and surcharges 172598.34 8724.82
Selling expenses
Administrative expenses 34040383.63 32795434.31
R&D expenses
Financial expenses -32199924.51 -46439991.45
Including: Interest expenses 68523522.05 6683662.60
Interest income 100788936.40 114151812.97
Add: Other income 446474.64 90205.68
Investment income (or less: losses) 2 452505988.13 627767256.36
Including: Investment income from associates and joint ventures 39991003.64 32220248.17
Gains from derecognition of financial assets at amortized cost
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses)
Credit impairment loss -17238362.29 -4535721.98
Assets impairment loss
Gains on asset disposal (or less: losses)
II. Operating profit (or less: losses) 433788030.44 637069263.35
Add: Non-operating revenue 8224413.05 1853259.39
Less: Non-operating expenditures 1019252.32
III. Profit before tax (or less: total loss) 440993191.17 638922522.74
Less: Income tax expenses
IV. Net profit (or less: net loss) 440993191.17 638922522.74
(I) Net profit from continuing operations (or less: net loss) 440993191.17 638922522.74
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax -14070000.00
(I) Not to be reclassified subsequently to profit or loss -14070000.00
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments -14070000.00
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other comprehensive
income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income 426923191.17 638922522.74
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative: Officer in charge of accounting: Head of accounting department:
124Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Consolidated cash flow statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Note
Items Current period cumulative Preceding period comparative
No.I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 12253778468.76 12453986179.20
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest handling fees and commissions
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 54791515.98 30441488.60
Other cash receipts related to operating activities 1.(1) 1563909963.01 1780673734.46
Subtotal of cash inflows from operating activities 13872479947.75 14265101402.26
Cash payments for goods purchased and services received 7269772149.50 7623799094.31
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payments for insurance indemnities of original insurance contracts
Net increase of loans to others
Cash payments for interest handling fees and commissions
Cash payments for policy bonus
Cash paid to and on behalf of employees 2760726135.33 2522411850.58
Cash payments for taxes and rates 539712068.46 534381305.14
Other cash payments related to operating activities 1.(2) 2140220112.98 2198952642.74
Subtotal of cash outflows from operating activities 12710430466.27 12879544892.77
Net cash flows from operating activities 1162049481.48 1385556509.49
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments 4176029.95
Cash receipts from investment income 215921968.00 17581018.93
Net cash receipts from the disposal of fixed assets intangible assets and other long-term assets 22226636.40 22804215.79
Net cash receipts from the disposal of subsidiaries & other business units 252832196.90
Other cash receipts related to investing activities 1.(3) 8821277096.34 1650769977.00
Subtotal of cash inflows from investing activities 9316433927.59 1691155211.72
Cash payments for the acquisition of fixed assets intangible assets and other long-term assets 806085373.66 1119006242.88
Cash payments for investments 4900000.00
Net increase of pledged borrowings
Net cash payments for the acquisition of subsidiaries & other business units 43472.96
Other cash payments related to investing activities 1.(4) 8310287424.40 1642935617.97
Subtotal of cash outflows from investing activities 9116372798.06 2766885333.81
Net cash flows from investing activities 200061129.53 -1075730122.09
III. Cash flows from financing activities:
Cash receipts from absorbing investments 24451900.00 7119980.00
Including: Cash received by subsidiaries from non-controlling shareholders as investments 24451900.00 7119980.00
Cash receipts from borrowings 1244655720.38 1430455757.80
Other cash receipts related to financing activities 1.(5) 128615400.00 48692000.00
Subtotal of cash inflows from financing activities 1397723020.38 1486267737.80
Cash payments for the repayment of borrowings 1314496090.40 1946364301.72
Cash payments for distribution of dividends or profits and for interest expenses 530172889.26 471087036.44
Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit 11034966.64 7622681.40
Other cash payments related to financing activities 1.(6) 141563549.23 44749906.87
Subtotal of cash outflows from financing activities 1986232528.89 2462201245.03
Net cash flows from financing activities -588509508.51 -975933507.23
IV. Effect of foreign exchange rate changes on cash and cash equivalents 470874.17 1587128.38
V. Net increase in cash and cash equivalents 774071976.67 -664519991.45
Add: Opening balance of cash and cash equivalents 3916145254.54 4580665245.99
VI. Closing balance of cash and cash equivalents 4690217231.21 3916145254.54
Legal representative: Officer in charge of accounting: Head of accounting department:
125Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Parent company cash flow statement for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Current period Preceding period
Items
cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 365854.11 118392.43
Receipts of tax refund 178113.41 1008139.39
Other cash receipts related to operating activities 984609199.49 448771549.67
Subtotal of cash inflows from operating activities 985153167.01 449898081.49
Cash payments for goods purchased and services received 199874.65
Cash paid to and on behalf of employees 12878474.03 12214656.58
Cash payments for taxes and rates 191681.93 19920.85
Other cash payments related to operating activities 1251992602.32 448609614.55
Subtotal of cash outflows from operating activities 1265262632.93 460844191.98
Net cash flows from operating activities -280109465.92 -10946110.49
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 596256937.18 355469611.94
Net cash receipts from the disposal of fixed assets intangible assets and other
long-term assets
Net cash receipts from the disposal of subsidiaries & other business units 258552204.53
Other cash receipts related to investing activities 2862551451.99 1133866191.35
Subtotal of cash inflows from investing activities 3717360593.70 1489335803.29
Cash payments for the acquisition of fixed assets intangible assets and other long-
term assets
Cash payments for investments 222046440.00
Net cash payments for the acquisition of subsidiaries & other business units
Other cash payments related to investing activities 2492051286.11 1020256248.67
Subtotal of cash outflows from investing activities 2714097726.11 1020256248.67
Net cash flows from investing activities 1003262867.59 469079554.62
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 108000000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 108000000.00
Cash payments for the repayment of borrowings 18886714.22 430885712.00
Cash payments for distribution of dividends or profits and for interest expenses 420282564.36 367220162.26
Other cash payments related to financing activities 1261241.92 1258782.48
Subtotal of cash outflows from financing activities 440430520.50 799364656.74
Net cash flows from financing activities -440430520.50 -691364656.74
IV. Effect of foreign exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents 282722881.17 -233231212.61
Add: Opening balance of cash and cash equivalents 398120744.73 631351957.34
VI. Closing balance of cash and cash equivalents 680843625.90 398120744.73
Legal representative: Officer in charge of accounting: Head of accounting department:
126Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
interest
Share capital Capital reserve comprehensive Special reserve risk Undistributed profit
Preferred Perpetual
Others Treasury shares income reserve reserve
shares bonds
I. Balance at the end of prior year 3179506670.00 266914714.33 9661398721.27 94132795.17 -4630000.00 379017020.19 4049434826.11 460538300.36 17898047457.09
Add: Cumulative changes of accounting
policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 3179506670.00 266914714.33 9661398721.27 94132795.17 -4630000.00 379017020.19 4049434826.11 460538300.36 17898047457.09
III. Current period increase (or less: decrease) -12564878.00 -904.15 -104161393.07 -94132795.17 -13115734.84 44099319.12 73547264.17 -8019770.22 73916698.18
(I) Total comprehensive income -13115734.84 513514275.54 29560842.22 529959382.92
(II) Capital contributed or withdrawn by owners -12564878.00 -904.15 -104161393.07 -94132795.17 -24461010.86 -47055390.91
1. Ordinary shares contributed by owners -12565382.00 -81567413.17 -94132795.17 25999900.00 25999900.00
2. Capital contributed by holders of other equity
504.00-904.154109.243709.09
instruments
3. Amount of share-based payment included in
equity
4. Others -22598089.14 -50460910.86 -73059000.00
(III) Profit distribution 44099319.12 -439967011.37 -13119601.58 -408987293.83
1. Appropriation of surplus reserve 44099319.12 -44099319.12
127Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period cumulative
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
interest
Share capital Capital reserve comprehensive Special reserve risk Undistributed profit
Preferred Perpetual
Others Treasury shares income reserve reserve
shares bonds
2. Appropriation of general risk reserve
3. Appropriation of profit to owners -395867692.25 -13119601.58 -408987293.83
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation 8763770.25 8763770.25
2. Current period use -8763770.25 -8763770.25
(VI) Others
IV. Balance at the end of current period 3166941792.00 266913810.18 9557237328.20 -17745734.84 423116339.31 4122982090.28 452518530.14 17971964155.27
Legal representative: Officer in charge of accounting: Head of accounting department:
128Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
interest
Share capital Capital reserve comprehensive Special reserve risk Undistributed profit
Preferred Perpetual
Others Treasury shares income reserve reserve
shares bonds
I. Balance at the end of prior year 3179505559.00 266916341.80 9662511254.48 94132795.17 -4630000.00 315124767.92 3963306890.06 448810670.89 17737412688.98
Add: Cumulative changes of accounting policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 3179505559.00 266916341.80 9662511254.48 94132795.17 -4630000.00 315124767.92 3963306890.06 448810670.89 17737412688.98
III. Current period increase (or less: decrease) 1111.00 -1627.47 -1112533.21 63892252.27 86127936.05 11727629.47 160634768.11
(I) Total comprehensive income 498383730.00 14160459.06 512544189.06
(II) Capital contributed or withdrawn by owners 1111.00 -1627.47 -1112533.21 5189851.81 4076802.13
1. Ordinary shares contributed by owners 8619980.00 8619980.00
2. Capital contributed by holders of other equity
1111.00-1627.478673.608157.13
instruments
3. Amount of share-based payment included in
equity
4. Others -1121206.81 -3430128.19 -4551335.00
(III) Profit distribution 63892252.27 -412255793.95 -7622681.40 -355986223.08
129Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Preceding period comparative
Equity attributable to parent company
Items
Other equity instruments Non-controlling
Less: Other Surplus General Total equity
interest
Share capital Capital reserve comprehensive Special reserve risk Undistributed profit
Preferred Perpetual
Others Treasury shares income reserve reserve
shares bonds
1. Appropriation of surplus reserve 63892252.27 -63892252.27
2. Appropriation of general risk reserve
3. Appropriation of profit to owners -348363541.68 -7622681.40 -355986223.08
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation 8608843.62 8608843.62
2. Current period use -8608843.62 -8608843.62
(VI) Others
IV. Balance at the end of current period 3179506670.00 266914714.33 9661398721.27 94132795.17 -4630000.00 379017020.19 4049434826.11 460538300.36 17898047457.09
Legal representative: Officer in charge of accounting: Head of accounting department:
130Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2024
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments
Items Other
Less: Treasury Special Undistributed
Share capital Capital reserve comprehensive Surplus reserve Total equity
Preferred Perpetual shares reserve profit
Others income
shares bonds
I. Balance at the end of prior year 3179506670.00 266914714.33 15324662735.39 94132795.17 -4630000.00 344796630.77 786431614.32 19803549569.64
Add: Cumulative changes of accounting
policies
Error correction of prior period
Others
II. Balance at the beginning of current year 3179506670.00 266914714.33 15324662735.39 94132795.17 -4630000.00 344796630.77 786431614.32 19803549569.64
III. Current period increase (or less: decrease) -12564878.00 -904.15 -81563303.93 -94132795.17 -14070000.00 44099319.12 1026179.80 31059208.01
(I) Total comprehensive income -14070000.00 440993191.17 426923191.17
(II) Capital contributed or withdrawn by
-12564878.00-904.15-81563303.93-94132795.173709.09
owners
1. Ordinary shares contributed by owners -12565382.00 -81567413.17 -94132795.17
2. Capital contributed by holders of other
504.00-904.154109.243709.09
equity instruments
3. Amount of share-based payment included in
equity
4. Others
(III) Profit distribution 44099319.12 -439967011.37 -395867692.25
1. Appropriation of surplus reserve 44099319.12 -44099319.12
131Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Appropriation of profit to owners -395867692.25 -395867692.25
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 3166941792.00 266913810.18 15243099431.46 -18700000.00 388895949.89 787457794.12 19834608777.65
Legal representative: Officer in charge of accounting: Head of accounting department:
132Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2024 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Other equity instruments
Items Other
Less: Treasury Special Undistributed
Share capital Capital reserve comprehensive Surplus reserve Total equity
Preferred Perpetual shares reserve profit
Others income
shares bonds
I. Balance at the end of prior year 3179505559.00 266916341.80 15324654061.79 94132795.17 -4630000.00 280904378.50 559764885.53 19512982431.45
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 3179505559.00 266916341.80 15324654061.79 94132795.17 -4630000.00 280904378.50 559764885.53 19512982431.45
III. Current period increase (or less: decrease) 1111.00 -1627.47 8673.60 63892252.27 226666728.79 290567138.19
(I) Total comprehensive income 638922522.74 638922522.74
(II) Capital contributed or withdrawn by owners 1111.00 -1627.47 8673.60 8157.13
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
1111.00-1627.478673.608157.13
instruments
3. Amount of share-based payment included in
equity
4. Others
(III) Profit distribution 63892252.27 -412255793.95 -348363541.68
1. Appropriation of surplus reserve 63892252.27 -63892252.27
2. Appropriation of profit to owners -348363541.68 -348363541.68
133Infore Environment Technology Group Co. Ltd. 2024 Annual Report
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 3179506670.00 266914714.33 15324662735.39 94132795.17 -4630000.00 344796630.77 786431614.32 19803549569.64
Legal representative: Officer in charge of accounting: Head of accounting department
134Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Infore Environment Technology Group Co. Ltd.Notes to Financial Statements
For the year ended December 31 2024
Monetary unit: RMB Yuan
I. Company Profile
Infore Environment Technology Group Co. Ltd. (the “Company”) formerly known as Zhejiang Shangfeng
Industrial Co. Ltd. was registered at Zhejiang Administration for Industry and Commerce on November 18 1993.Under the approval of Zhejiang Share System Pilot Work Coordination Group with document of approval numbered
Zhe Gu [1993] 51 the Company was established by Zhejiang Fan Air Cooling Equipment Co. Ltd. the main
initiator and Shangyu Fan Factory and Shaoxing Fluid Engineering Research Institute the joint initiators through
targeted fundraising. Headquartered in Shaoxing City Zhejiang Province the Company currently holds a business
license with unified social credit code of 913300006096799222 and has registered capital of 3179506670.00 yuan
and share capital of 3166941792.00 yuan. The difference between the registered capital and share capital is
because the change related to share capital increased and canceled in the current period has not been registered at
the administration for market regulation. The Company has total share of 3166941792 shares (each with par value
of one yuan) of which 1507700 shares are restricted outstanding A shares and 3165434092 shares are
unrestricted outstanding A shares. The Company's shares were listed on the Shenzhen Stock Exchange on March
302000.
The Company belongs to the ecological protection and environmental management industry. The main
business activities include R&D sales maintenance and operation services of environmental protection equipment
sanitation operation services operation services of environmental treatment facilities environmental engineering
environmental protection engineering urban engineering sale of ventilators air-cooling water-cooling and air-
conditioning equipment etc. Its revenue is mainly from sales of environmental protection machinery ventilation
equipment and sanitation operation services.The financial statements were approved and authorized for issue by the tenth meeting of the tenth session of
the Board of Directors dated April 24 2025.II. Preparation Basis of the Financial Statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.(II) Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company's ability to
continue as a going concern within the 12 months after the balance sheet date.
135Infore Environment Technology Group Co. Ltd. 2024 Annual Report
III. Significant Accounting Policies and Estimates
Important note: The Company has set up accounting policies and estimates on transactions or events such as
impairment of financial instruments inventories depreciation of fixed assets construction in progress intangible
assets revenue recognition etc. based on the Company's actual production and operation features.(I) Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting
Standards for Business Enterprises (CASBEs) and present truly and completely the financial position financial
performance and cash flows of the Company.(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.(III) Operating cycle
The Company has a relatively short operating cycle for its business an asset or a liability is classified as current
if it is expected to be realized or due within 12 months.(IV) Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan while the
functional currency of subsidiaries engaged in overseas operations is the currency of the primary economic
environment in which they operate.(V) Determination method and basis for selection of materiality
The Company prepares and discloses financial statements in compliance with the principle of materiality. The
items disclosed in notes to the financial statements involving materiality judgements determination method and
basis for selection of materiality are as follows:
Determination method and basis for selection of
Disclosed items involving materiality judgements
materiality
Significant accounts receivable with provision for bad With individual balance exceeding 0.3% of total
debts made on an individual basis assets
With individual balance exceeding 0.3% of total
Significant accounts receivable written off
assets
With individual balance exceeding 0.3% of total
Significant advances paid with age over one year
assets
Significant other receivables with provision for bad debts With individual balance exceeding 0.3% of total
made on an individual basis assets
With individual balance exceeding 0.3% of total
Significant other receivables written off
assets
Significant contract assets with provision for impairment With individual balance exceeding 0.3% of total
made on an individual basis assets
With individual balance exceeding 0.3% of total
Significant construction in progress
assets
136Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Determination method and basis for selection of
Disclosed items involving materiality judgements
materiality
With individual balance exceeding 0.3% of total
Significant accounts payable with age over one year
assets
With individual balance exceeding 0.3% of total
Significant contract liabilities with age over one year
assets
With individual balance exceeding 0.3% of total
Significant other payables with age over one year
assets
With individual balance exceeding 10% of total
Significant cash flows from investing activities
assets
Significant capitalized R&D projects and outsourced With individual balance exceeding 0.3% of total
R&D projects assets
With total assets exceeding 15% of the group's
Significant subsidiaries not wholly-owned subsidiaries
total assets
With individual balance exceeding 0.5% of total
Significant joint ventures and associates
assets
(VI) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined
party included in the consolidated financial statements of the ultimate controlling party at the combination date.Difference between carrying amount of the equity of the combined party included in the consolidated financial
statements of the ultimate controlling party and that of the combination consideration or total par value of shares
issued is adjusted to capital reserve if the balance of capital reserve is insufficient to offset any excess is adjusted
to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the
acquisition date the excess is recognized as goodwill; otherwise the fair value of identifiable assets liabilities and
contingent liabilities and the measurement of the combination cost are reviewed then the difference is recognized
in profit or loss.(VII) Judgement criteria for control and compilation method of consolidated financial statements
1. Judgement of control
An investor controls an investee if and only if the investor has all the following: (1) power over the investee;
(2) exposure or rights to variable returns from its involvement with the investee; and (3) the ability to use its power
over the investee to affect the amount of the investor's returns.
137Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidatedfinancial statements are compiled by the parent company according to “CASBE 33 – Consolidated FinancialStatements” based on relevant information and the financial statements of the parent company and its subsidiaries.(VIII) Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation it recognizes the following items in relation to
its interest in a joint operation:
(1) its assets including its share of any assets held jointly;
(2) its liabilities including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sale of the assets by the joint operation; and
(5) its expenses including its share of any expenses incurred jointly.
(IX) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash
equivalents refer to short-term highly liquid investments that can be readily converted to cash and that are subject
to an insignificant risk of changes in value.(X) Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the
transaction date at initial recognition. At the balance sheet date monetary items denominated in foreign currency
are translated at the spot exchange rate at the balance sheet date with difference except for those arising from the
principal and interest of exclusive borrowings eligible for capitalization included in profit or loss; non-cash items
carried at historical costs are translated at the spot exchange rate at the transaction date with the RMB amounts
unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at the
date when the fair value was determined with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot exchange rate at the balance
sheet date; the equity items other than undistributed profit are translated at the spot exchange rate at the transaction
date; the revenues and expenses in the income statement are translated into RMB at the spot exchange rate at the
transaction date. The difference arising from the aforementioned foreign currency translation is included in other
comprehensive income.(XI) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial assets
at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair
value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1) financial
138Infore Environment Technology Group Co. Ltd. 2024 Annual Report
liabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset
does not qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee
contracts not fall within the above categories (1) and (2) and commitments to provide a loan at a below-market
interest rate which do not fall within the above category (1); (4) financial liabilities at amortized cost.
2. Recognition criteria measurement method and derecognition of financial assets and financial liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument it is recognized as a financial asset or financial
liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair value;
for the financial assets and liabilities at fair value through profit or loss the transaction expenses thereof are directly
included in profit or loss; for other categories of financial assets and financial liabilities the transaction expenses
thereof are included into the initially recognized amount. However at initial recognition for accounts receivable
that do not contain a significant financing component or in circumstances where the Company does not consider
the financing components in contracts within one year they are measured at the transaction price in accordance with
“CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or
losses on financial assets that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial assets are derecognized reclassified amortized using effective interest
method or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests impairment gains or losses and
gains and losses on foreign exchange that calculated using effective interest method shall be included into profit or
loss while other gains or losses are included into other comprehensive income. Accumulated gains or losses that
initially recognized as other comprehensive income should be transferred out into profit or loss when the financial
assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those
as part of investment cost recovery) shall be included into profit or loss while other gains or losses are included
into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive
income should be transferred out into retained earnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value
(including interests and dividends) shall be included into profit or loss except for financial assets that are part of
hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including
139Infore Environment Technology Group Co. Ltd. 2024 Annual Report
derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The Company
measures such kind of liabilities at fair value. The amount of changes in the fair value of the financial liabilities that
are attributable to changes in the Company's own credit risk shall be included into other comprehensive income
unless such treatment would create or enlarge accounting mismatches in profit or loss. Other gains or losses on
those financial liabilities (including interests changes in fair value that are attributable to reasons other than changes
in the Company's own credit risk) shall be included into profit or loss except for financial liabilities that are part of
hedging relationships. Accumulated gains or losses that originally recognized as other comprehensive income
should be transferred out into retained earnings when the financial liabilities are derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2) and commitments to provide a
loan at a below-market interest rate which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance
with impairment requirements of financial instruments; b. the amount initially recognized less the amount of
accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses
on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall be included
into profit or loss when the financial liabilities are derecognized and amortized using effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with
“CASBE 23 – Transfer of Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the
financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the
financial asset it derecognizes the financial asset and any right or liability arising from such transfer is recognized
independently as an asset or a liability. If it retained substantially all of the risks and rewards related to the ownership
of the financial asset it continues recognizing the financial asset. Where the Company does not transfer or retain
substantially all of the risks and rewards related to the ownership of a financial asset it is dealt with according to
the circumstances as follows respectively: (1) if the Company does not retain its control over the financial asset it
derecognizes the financial asset and any right or liability arising from such transfer is recognized independently as
an asset or a liability; (2) if the Company retains its control over the financial asset according to the extent of its
continuing involvement in the transferred financial asset it recognizes the related financial asset and recognizes the
relevant liability accordingly.
140Infore Environment Technology Group Co. Ltd. 2024 Annual Report
If the transfer of an entire financial asset satisfies the conditions for derecognition the difference between the
amounts of the following two items is included in profit or loss: (1) the carrying amount of the transferred financial
asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the financial asset
and the accumulative amount of the changes of the fair value originally included in other comprehensive income
proportionate to the transferred financial asset (financial assets transferred refer to debt instrument investments at
fair value through other comprehensive income). If the transfer of financial asset partially satisfies the conditions
for derecognition the entire carrying amount of the transferred financial asset is between the portion which is
derecognized and the portion which is not apportioned according to their respective relative fair value and the
difference between the amounts of the following two items is included into profit or loss: (1) the carrying amount
of the portion which is derecognized; (2) the sum of consideration of the portion which is derecognized and the
portion of the accumulative amount of the changes in the fair value originally included in other comprehensive
income which is corresponding to the portion which is derecognized (financial assets transferred refer to debt
instrument investments at fair value through other comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
and information are available to measure fair value. The inputs to valuation techniques used to measure fair value
are arranged in the following hierarchy and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the
Company can access at the measurement date;
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset
or liability either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active
markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than
quoted prices that are observable for the asset or liability for example interest rates and yield curves observable at
commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is
not observable and cannot be corroborated by observable market data at commonly quoted intervals historical
volatility future cash flows to be paid to fulfill the disposal obligation assumed in business combination financial
forecast developed using the Company's own data etc.
5. Impairment of financial instruments
The Company on the basis of expected credit loss recognizes loss allowances of financial assets at amortized
cost debt instrument investments at fair value through other comprehensive income contract assets leases
receivable loan commitments other than financial liabilities at fair value through profit or loss financial guarantee
contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities that arise when
a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach
applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a default
occurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash
141Infore Environment Technology Group Co. Ltd. 2024 Annual Report
shortfalls) discounted at the original effective interest rate. Among which purchased or originated credit-impaired
financial assets are discounted at the credit-adjusted effective interest rate.At the balance sheet date the Company shall only recognize the cumulative changes in the lifetime expected
credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.For leases receivable and accounts receivable and contract assets resulting from transactions regulated in
“CASBE 14 – Revenues” the Company chooses simplified approach to measure the loss allowance at an amount
equal to lifetime expected credit losses.For financial assets other than the above on each balance sheet date the Company shall assess whether the
credit risk on the financial instrument has increased significantly since initial recognition. The Company shall
measure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses if
the credit risk on that financial instrument has increased significantly since initial recognition; otherwise the
Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month expected
credit loss.Considering reasonable and supportable forward-looking information the Company compares the risk of a
default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the
financial instrument as at the date of initial recognition so as to assess whether the credit risk on the financial
instrument has increased significantly since initial recognition.The Company may assume that the credit risk on a financial instrument has not increased significantly since
initial recognition if the financial instrument is determined to have relatively low credit risk at the balance sheet
date.The Company shall estimate expected credit risk and measure expected credit losses on an individual or a
collective basis. When the Company adopts the collective basis financial instruments are grouped with similar
credit risk features.The Company shall remeasure expected credit loss on each balance sheet date and increased or reversed
amounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For
a financial asset measured at amortized cost the loss allowance reduces the carrying amount of such financial asset
presented in the balance sheet; for a debt investment measured at fair value through other comprehensive income
the loss allowance shall be recognized in other comprehensive income and shall not reduce the carrying amount of
such financial asset.
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.However the Company offsets a financial asset and a financial liability and presents the net amount in the balance
sheet when and only when the Company: (1) currently has a legally enforceable right to set off the recognized
amounts; and (2) intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.For a transfer of a financial asset that does not qualify for derecognition the Company does not offset the
transferred asset and the associated liability.(XII) Recognition criteria and accrual method for expected credit losses of receivables and contract assets
1. Receivables and contract assets with expected credit losses measured on a collective basis using similar
142Infore Environment Technology Group Co. Ltd. 2024 Annual Report
credit risk features
Basis for determination of Method for measuring expected credit loss
Categories
portfolio
Based on historical credit loss experience
Bank acceptance receivable the current situation and the forecast of
future economic conditions the Company
Type of notes
calculates expected credit loss through
Trade acceptance receivable exposure at default and lifetime expected
credit loss rate.Based on historical credit loss experience
Accounts receivable – Portfolio the current situation and the forecast of
Balances due from related
grouped with balances due from future economic conditions the Company
parties within the
related parties within the calculates expected credit loss through
consolidation scope
consolidation scope exposure at default and lifetime expected
credit loss rate.Based on historical credit loss experience
the current situation and the forecast of
future economic conditions the Company
Accounts receivable – Portfolio
Ages prepares the comparison table of ages and
grouped with ages
lifetime expected credit loss rate of
accounts receivable so as to calculate
expected credit loss.Other receivables – Portfolio
Balances due from related Based on historical credit loss experience
grouped with balances due from
parties within the the current situation and the forecast of
related parties within the
consolidation scope future economic conditions the Company
consolidation scope calculates expected credit loss through
Other receivables – Portfolio exposure at default and 12-month or
Nature of receivables
grouped with buyer's credit lifetime expected credit loss rate.Based on historical credit loss experience
the current situation and the forecast of
future economic conditions the Company
Other receivables – Portfolio
Ages prepares the comparison table of ages and
grouped with ages
expected credit loss rate of other
receivables so as to calculate expected
credit loss.Long-term receivables – Portfolio
Expected credit loss rates are calculated
grouped with finance lease
based on five-level classification of credit
payment/ Long-term receivables –
assets of non-bank financial institutions:
Portfolio grouped with
Nature of receivables 1.5% for pass category 3% for special-
receivables financing factoring
mention category 30% for substandard
payment /Accounts receivable –
category 60% for doubtful category and
Portfolio grouped with
100% for loss category
commercial factoring payment
Long-term receivables – Portfolio Nature of receivables For long-term receivables within the credit
143Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Basis for determination of Method for measuring expected credit loss
Categories
portfolio
grouped with ages period that has not reached the contractual
payment deadline provision for bad debts
is accrued at 5% of the balance. For long-
term receivables that have exceeded the
contractual payment deadline and have not
yet been paid provision for bad debts is
accrued based on the age of the balance.Based on historical credit loss experience
the current situation and the forecast of
future economic conditions the Company
Contract assets – Portfolio
Ages prepares the comparison table of ages and
grouped with ages
lifetime expected credit loss rate of
contract assets so as to calculate
expected credit loss.
2. Comparison table of ages and expected credit loss rate of portfolio grouped with ages
Expected credit loss rate of Expected credit loss rate of
Expected credit loss accounts receivable of Expected credit loss other receivables of
rate of accounts ventilation equipment rate of other ventilation equipment
Ages
receivable of parent manufacturing industry and receivables of parent manufacturing industry and
company (%) environmental integrated company (%) environmental integrated
industry (%) industry (%)
1-180 days (inclusive the
0505
same hereinafter)
180 days - 1 year 2 5 2 5
1-2 years 10 10 10 10
2-3 years 30 30 30 30
3-5 years 50 50 50 50
Over 5 years 80 100 80 100
Ages of accounts receivable other receivables and long-term receivables are calculated from the month when
such receivables are accrued.
3. Recognition criteria for receivables and contract assets with expected credit losses measured on an individual
basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios the
Company accrues expected credit losses on an individual basis.(XIII) Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business work in process
in the process of production materials supplies etc. to be consumed in the production process or in the rendering
of services.
144Infore Environment Technology Group Co. Ltd. 2024 Annual Report
2. Accounting method for dispatched inventories
Inventories dispatched from storage are accounted for with weighted average method.
3. Inventory system
Perpetual inventory method is adopted.
4. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
Packages are amortized with one-off method.
5. Provision for inventory write-down
Recognition criteria and accrual method of provision for inventory write-down
At the balance sheet date inventories are measured at the lower of cost and net realizable value; provisions for
inventory write-down are made on the excess of its cost over the net realizable value. The net realizable value of
inventories held for sale is determined based on the amount of the estimated selling price less the estimated selling
expenses and relevant taxes and surcharges in the ordinary course of business; the net realizable value of inventories
to be processed is determined based on the amount of the estimated selling price less the estimated costs of
completion selling expenses and relevant taxes and surcharges in the ordinary course of business; at the balance
sheet date when only part of the same item of inventories have agreed price their net realizable value are determined
separately and are compared with their costs to set the provision for inventory write-down to be made or reversed.(XIV) Non-current assets or disposal groups held for sale discontinued operations
1. Classification of non-current assets or disposal groups held for sale
Non-current assets or disposal groups are accounted for as held for sale when the following conditions are all
met: (1) the asset must be available for immediate sale in its present condition subject to terms that are usual and
customary for sales of such assets or disposal groups; (2) its sales must be highly probable i.e. the Company has
made a decision on the sale plan and has obtained a firm purchase commitment and the sale is expected to be
completed within one year.When the Company acquires a non-current asset or disposal group with a view to resale it shall classify thenon-current asset or disposal group as held for sale at the acquisition date only if the requirement of “expected tobe completed within one year” is met at that date and it is highly probable that other criteria for held for sale will be
met within a short period (usually within three months).An asset or a disposal group is still accounted for as held for sale when the Company remains committed to its
plan to sell the asset or disposal group in the circumstance that non-related party transactions fail to be completed
within one year due to one of the following reasons: (1) a buyer or others unexpectedly set conditions that will
extend the sale period while the Company has taken timely actions to respond to the conditions and expects a
favorable resolution of the delaying factors within one year since the setting; (2) a non-current asset or disposal
group classified as held for sale fails to be sold within one year due to rare cases and the Company has taken action
necessary to respond to the circumstances during the initial one-year period and the criteria for held for sale are met.
2. Accounting treatments of non-current assets or disposal groups held for sale
145Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(1) Initial measurement and subsequent measurement
For initial measurement and subsequent measurement as at the balance sheet date of a non-current asset or
disposal group held for sale where the carrying amount is higher than the fair value less costs to sell the carrying
amount is written down to the fair value less costs to sell and the write-down is recognized in profit or loss as assets
impairment loss meanwhile provision for impairment of assets held for sale shall be made.For a non-current asset or disposal group classified as held for sale at the acquisition date the asset or disposal
group is measured on initial recognition at the lower of its initial measurement amount had it not been so classified
and fair value less costs to sell. Apart from the non-current asset or disposal group acquired through business
combination the difference arising from the initial recognition of a non-current asset or disposal group at the fair
value less costs to sell shall be included into profit or loss.The assets impairment loss recognized for a disposal group held for sale shall reduce the carrying amount of
goodwill in the disposal group first and then reduce its carrying amount based on the proportion of each non-current
asset's carrying amount in the disposal group.No provision for depreciation or amortization shall be made on non-current assets held for sale or non-current
assets in disposal groups held for sale while interest and other expenses attributable to the liabilities of a disposal
group held for sale shall continue to be recognized.
(2) Reversal of assets impairment loss
When there is a subsequent increase in fair value less costs to sell of a non-current asset held for sale at the
balance sheet date the write-down shall be recovered and shall be reversed not in excess of the impairment loss
that has been recognized after the non-current asset was classified as held for sale. The reversal shall be included
into profit or loss. Assets impairment loss that has been recognized before the classification is not reversed.When there is a subsequent increase in fair value less costs to sell of a disposal group held for sale at the
balance sheet date the write-down shall be recovered and shall be reversed not in excess of the non-current assets
impairment loss that has been recognized after the disposal group was classified as held for sale. The reversal shall
be included into profit or loss. The reduced carrying amount of goodwill and non-current assets impairment loss
that has been recognized before the classification is not reversed.For the subsequent reversal of the impairment loss that has been recognized in a disposal group held for sale
the carrying amount is increased based on the proportion of carrying amount of each non-current asset (excluding
goodwill) in the disposal group.
(3) Non-current asset or disposal group that is no longer classified as held for sale and derecognized
A non-current asset or disposal group that does not meet criteria for held for sale and no longer classified as
held for sale or a non-current asset that removed from a disposal group held for sale shall be measured at the lower
of: 1) its carrying amount before it was classified as held for sale adjusted for any depreciation amortization or
impairment that would have been recognized had it not been classified as held for sale; and 2) its recoverable amount.When a non-current asset or disposal group classified as held for sale is derecognized unrecognized gains or
losses shall be included into profit or loss.
3. Recognition criteria of discontinued operations
A component of the Company that has been disposed of or is classified as held for sale and can be clearly
146Infore Environment Technology Group Co. Ltd. 2024 Annual Report
distinguished is recognized as a discontinued operation when it fulfills any of the following conditions:
(1) it represents a separate major line of business or a separate geographical area of operations;
(2) it is part of a related plan to dispose of a separate major line of business or a separate geographical area of
operations; or
(3) it is a subsidiary acquired exclusively with a review to resale.
4. Presentation method of discontinued operations
The Company presents gains or losses from continuing operations and gains or losses from discontinued
operations separately in the income statement. Operating gains or losses including impairment loss of discontinued
operations and its reversal amount and gains or losses on disposal are presented as gains or losses from discontinued
operations. For discontinued operations presented in the current period the information previously presented as
gains or losses from continuing operations is reclassified as gains or losses from discontinued operations for the
comparative period in the current financial statements. For discontinued operations that no longer meet criteria for
held for sale the information previously presented as gains or losses from discontinued operations is reclassified as
gains or losses from continuing operations for the comparative period in the current financial statements.(XV) Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. Significant influence is
the power to participate in the financial and operating policy decisions of the investee but is not control or joint
control of these policies.
2. Determination of investment cost
(1) For business combination under common control if the consideration of the combining party is that it
makes payment in cash transfers non-cash assets assumes its liabilities or issues equity securities on the date of
combination it regards the share of the carrying amount of the equity of the combined party included in the
consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The difference
between the initial cost of the long-term equity investments and the carrying amount of the combination
consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset any excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common control
achieved in stages the Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”
stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction” on
the date of combination investment cost is initially recognized at the share of the carrying amount of net assets of
the combined party included the consolidated financial statements of the ultimate controlling party. The difference
between the initial investment cost of long-term equity investments at the acquisition date and the carrying amount
of the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly
acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset any excess is
adjusted to retained earnings.
(2) For business combination not under common control investment cost is initially recognized at the
147Infore Environment Technology Group Co. Ltd. 2024 Annual Report
acquisition-date fair value of considerations paid.When long-term equity investments are obtained through business combination not under common control
achieved in stages the Company determined whether they are stand-alone financial statements or consolidated
financial statements in accounting treatment:
1) In the case of stand-alone financial statements investment cost is initially recognized at the carrying amount
of the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly
acquired equity.
2) In the case of consolidated financial statements the Company determines whether it is a “bundledtransaction”. If it is a “bundled transaction” stages as a whole are considered as one transaction in accounting
treatment. If it is not a “bundled transaction” the carrying amount of the acquirer's previously held equity interest
in the acquiree is remeasured at the acquisition-date fair value and the difference between the fair value and the
carrying amount is recognized in investment income; when the acquirer's previously held equity interest in the
acquiree involves other comprehensive income under equity method the related other comprehensive income is
reclassified as income for the acquisition period excluding other comprehensive income arising from changes in
net liabilities or assets from remeasurement of defined benefit plan of the acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a
long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid; that
obtained on the basis of issuing equity securities is the fair value of the equity securities issued; that obtained through
debt restructuring is determined according to “CASBE 12 – Debt Restructuring”; and that obtained through non-
cash assets exchange is determined according to “CASBE 7 – Non-cash Assets Exchange”.
3. Subsequent measurement and recognition method of profit or loss
For a long-term equity investment with control relationship it is accounted for with cost method; for a long-
term equity investment with joint control or significant influence relationship it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company's loss of control
(1) Judgement principles of “bundled transaction”
For disposal of a subsidiary in stages resulting in the Company's loss of control the Company determines
whether it is a “bundled transaction” based on the agreement terms for each stage disposal consideration obtained
separately object of the equity sold disposal method disposal time point etc. If the terms conditions and economic
effect of each transaction meet one or more of the following conditions these transactions are usually considered
as a “bundled transaction”:
1) these transactions are entered into at the same time or in contemplation of each other;
2) these transactions form a single transaction designed to achieve an overall commercial effect;
3) the occurrence of one transaction is dependent on the occurrence of at least one other transaction; and
4) one transaction considered on its own is not economically justified but it is economically justified when
considered together with other transactions.
(2) Accounting treatments of non-bundled transactions
1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is
148Infore Environment Technology Group Co. Ltd. 2024 Annual Report
recognized in profit or loss. If the disposal does not result in the Company's loss of significant influence or joint
control the remained equity is accounted for with equity method; however if the disposal results in the Company'sloss of control joint control or significant influence the remained equity is accounted for according to “CASBE
22 – Financial Instruments: Recognition and Measurement”.
2) Consolidated financial statements
Before the Company's loss of control the difference between the disposal consideration and the proportionate
share of net assets in the disposed subsidiary from acquisition date or combination date to the disposal date is
adjusted to capital reserve (capital premium) if the balance of capital reserve is insufficient to offset any excess is
adjusted to retained earnings.When the Company loses control the remained equity is remeasured at the loss-of-control-date fair value. The
aggregated value of disposal consideration and the fair value of the remained equity less the share of net assets in
the disposed subsidiary held before the disposal from the acquisition date or combination date to the disposal date
is recognized in investment income in the period when the Company loses control over such subsidiary and
meanwhile goodwill is offset correspondingly. Other comprehensive income related to equity investments in former
subsidiary is reclassified as investment income upon the Company's loss of control.
(3) Accounting treatment of bundled transaction
1) Stand-alone financial statements
Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment.However before the Company loses control over a subsidiary the difference between the disposal consideration at
each stage and the carrying amount of long-term equity investments corresponding to the disposed investments is
recognized as other comprehensive income at the stand-alone financial statements and reclassified as profit or loss
in the period when the Company loses control over such subsidiary.
2) Consolidated financial statements
Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment.However before the Company loses control over a subsidiary the difference between the disposal consideration at
each stage and the proportionate share of net assets in the disposed subsidiary is recognized as other comprehensive
income at the consolidated financial statements and reclassified as profit or loss in the period when the Company
loses control over such subsidiary.(XVI) Investment property
1. Investment property includes land use right of leased-out property and of property held for capital
appreciation and buildings that have been leased out.
2. The initial measurement of investment property is based on its cost and subsequent measurement is made
using the cost model the depreciation or amortization method is the same as that of fixed assets and intangible
assets.(XVII) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services for rental to
others or for administrative purposes and expected to be used during more than one accounting year. Fixed assets
149Infore Environment Technology Group Co. Ltd. 2024 Annual Report
are recognized if and only if it is probable that future economic benefits associated with the assets will flow to the
Company and the cost of the assets can be measured reliably.
2. Depreciation method of different categories of fixed assets
Annual
Depreciation Useful life Residual value
Categories depreciation rate
method (years) proportion (%)
(%)
Straight-line
Buildings and structures 3-50 3.00-5.00 1.90-32.33
method
Straight-line
General equipment 3-5 3.00-5.00 19.00-32.33
method
Straight-line
Special equipment 2-15 0.00-5.00 6.33-50.00
method
Straight-line
Transport facilities 3-15 3.00-5.00 6.33-32.33
method
Straight-line
Other equipment 3-10 5.00 9.50-31.67
method
(XVIII) Construction in progress
1. Construction in progress is recognized if and only if it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. Construction in progress
is measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable
conditions. When the auditing of the construction in progress is not finished while reaching the designed usable
conditions it is transferred to fixed assets using estimated value first and then adjusted accordingly when the actual
cost is settled but the accumulated depreciation is not to be adjusted retrospectively.Categories Standards and time point of transferring construction in progress to fixed assets
When the design requirements or acceptance criteria for use as specified in the
Machinery
contract are met after installation and commissioning
When the completion acceptance is finished and reaching the designed usable
Engineering construction
conditions
(XIX) Borrowing costs
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization it is capitalized and included in the costs of relevant
assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred and are included
in profit or loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset
disbursements have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and
150Infore Environment Technology Group Co. Ltd. 2024 Annual Report
construction or production activities which are necessary to prepare the asset for its intended use or sale have already
started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is
interrupted abnormally and the interruption period lasts for more than 3 months the capitalization of the borrowing
costs is suspended; the borrowing costs incurred during such period are recognized as expenses and are included
in profit or loss till the acquisition and construction or production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready
for the intended use or sale the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for
capitalization the to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred
(including amortization of premium or discount based on effective interest method) of the special borrowings in the
current period less the interest income on the unused borrowings as a deposit in the bank or as a temporary
investment; where a general borrowing is used for the acquisition and construction or production of assets eligible
for capitalization the Company calculates and determines the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the excess of the accumulative capital
disbursements over the special borrowings by the capitalization rate of the general borrowing used.(XX) Intangible assets
1. Intangible assets include land use right franchise patented technology software etc. The initial
measurement of intangible assets is based on its cost.
2. For intangible assets with finite useful lives their amortization amounts are amortized within their useful
lives systematically and reasonably if it is unable to determine the expected realization pattern reliably intangible
assets are amortized by the straight-line method with details as follows:
Items Useful life and determination basis Amortization method
35-50 years; useful life registered on the
Land use right Straight-line method
land use certificate
Franchise Contractual term Straight-line method
Patented technology 5-10 years; economic life cycle Straight-line method
Software 3-10 years; estimated economic life Straight-line method
3. Permitted scope of R&D costs
(1) Personnel costs
Personnel costs include wages and salaries basic endowment insurance premiums basic medical insurance
premiums unemployment insurance premiums occupational injuries premiums maternity premiums and housing
provident funds for the Company's R&D personnel as well as labor costs for external R&D personnel.If R&D personnel serve for multiple R&D projects at the same time personnel costs are recognized based on
their working hour records provided by the Company's administrative department and proportionately allocated
among different R&D projects.
151Infore Environment Technology Group Co. Ltd. 2024 Annual Report
If personnel directly engaged in R&D activities and external R&D personnel are engaged in non-R&D
activities at the same time the Company based on their working hour records at different positions allocates
personnel costs actually incurred between R&D expenses and production and operating expenses using reasonable
methods such as the ratio of actual working hours.
(2) Direct input costs
Direct input costs refer to relevant expenses actually incurred by the Company for R&D activities which
include: 1) materials fuel and power costs directly consumed by R&D activities; 2) development and manufacturing
costs of molds and craft equipment used for intermediate tests and trial production acquisition costs of samples
prototypes and general testing methods that do not constitute fixed assets and inspection costs of trial production;
and 3) operation and maintenance adjustment inspection testing and repairing costs of instruments and equipment
used for R&D activities.
(3) Depreciation and long-term prepayments
Depreciation refers to the depreciation of instruments equipment and in-use buildings used for R&D activities.For instruments equipment and in-use buildings both used for R&D activities and non-R&D activities
necessary records shall be kept on their usage and depreciation actually incurred is allocated between R&D
expenses and production and operating expenses in a reasonable manner based on the actual working hours the
usable area etc.Long-term prepayments refer to those incurred during renovation modification decoration and repairing of
R&D facilities which are collected based on actual amount and amortized evenly over a specified period.
(4) Amortization of intangible assets
Amortization of intangible assets refer to the amortization of software intellectual property and non-patented
technology (proprietary technology licenses design and calculation methods etc.) used for R&D activities.
(5) Design expenses
Design expenses refer to expenses incurred for the conception development and manufacturing of new
products and techniques design of processes technical specifications process specification formulation
operational characteristics etc. including expenses incurred for creative design activities to obtain innovative
creative and breakthrough products.
(6) Equipment commissioning and testing expenses
Equipment commissioning expenses refer to expenses incurred for R&D activities during tooling preparation
including expenses incurred for activities such as development of special and specialized production machines
changes in production and quality control procedures development of new methods and standards etc.Expenses incurred for routine tooling preparation and industrial engineering for the purpose of large-scale/mass
and commercial production are not included in the permitted scope.Testing expenses include clinical trial fees for new drug development on-site testing fees for exploration and
production technologies field testing fees etc.
(7) R&D outsourcing expenses
R&D outsourcing expenses refer to expenses incurred for R&D activities outsourced to other domestic or
foreign organizations or individuals (outcomes of R&D activities are owned by the Company and closely related to
152Infore Environment Technology Group Co. Ltd. 2024 Annual Report
the Company's main business operations).
(8) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to R&D activities
including technical books and materials fees data translation fees expert consultation fees high-tech R&D
insurance premiums R&D outcomes search demonstration evaluation appraisal and acceptance fees intellectual
property application registration and agency fees conference fees business travelling fees communication fees
etc.
4. Expenditures on the research phase of an internal project are recognized as profit or loss when they are
incurred. An intangible asset arising from the development phase of an internal project is recognized if the Company
can demonstrate all of the followings: (1) the technical feasibility of completing the intangible asset so that it will
be available for use or sale; (2) its intention to complete the intangible asset and use or sell it; (3) how the intangible
asset will generate probable future economic benefits among other things the Company can demonstrate the
existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be used internally
the usefulness of the intangible asset; (4) the availability of adequate technical financial and other resources to
complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the
expenditure attributable to the intangible asset during its development.
5. Criteria for distinguishing the research phase from the development phase of an internal project to create an
intangible asset:
The planned investigation phase for acquiring new technology and knowledge should be defined as the research
phase which has the characteristics of planning and exploratory nature; before commercial production or use when
the research results or other knowledge are applied to a certain plan or design with the intention to produce new or
substantially improved materials devices products etc. such stage should be determined as the development phase
which has the characteristics of pertinence and greater possibility of forming results. The Company divides the
research and development phases by forming the prototype drawing and starting the prototype trial production.Expenditures in the research phase of internal research and development projects are included in profit or loss when
they incur. When the Company enters the development phase project expenditures are first calculated by projects
under “development expenditure” and if the capitalization conditions are met they are presented as development
expenditures in the financial statements. The project will be transferred to intangible assets when the project has the
conditions for sale or mass production.(XXI) Impairment of part of long-term assets
For long-term assets such as long-term equity investments investment property at cost model fixed assets
construction in progress right-of-use assets intangible assets with finite useful lives etc. if at the balance sheet
date there is indication of impairment the recoverable amount is to be estimated. For goodwill recognized in
business combination and intangible assets with indefinite useful lives no matter whether there is indication of
impairment impairment test is performed annually. Impairment test on goodwill is performed on related asset group
or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount the difference is
recognized as provision for assets impairment through profit or loss.
153Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(XXII) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year
(excluding one year). They are recorded with actual cost and evenly amortized within the beneficiary period or
stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods
residual values of such items are included in profit or loss.(XXIII) Employee benefits
1. Employee benefits include short-term employee benefits post-employment benefits termination benefits
and other long-term employee benefits.
2. Short-term employee benefits
The Company recognizes in the accounting period in which an employee provides service short-term
employee benefits actually incurred as liabilities with a corresponding charge to profit or loss or the cost of a
relevant asset.
3. Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit
plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution
payable to a defined contribution plan as a liability with a corresponding charge to profit or loss or the cost of a
relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method using unbiased and mutually compatible actuarial
assumptions to estimate related demographic variables and financial variables measure the obligations under the
defined benefit plan and determine the periods to which the obligations are attributed. Meanwhile the Company
discounts obligations under the defined benefit plan to determine the present value of the defined benefit plan
obligations and the current service cost;
2) When a defined benefit plan has assets the Company recognizes the deficit or surplus by deducting the fair
value of defined benefit plan assets from the present value of the defined benefit plan obligation as a net defined
benefit plan liability or net defined benefit plan asset. When a defined benefit plan has a surplus the Company
measures the net defined benefit plan asset at the lower of the surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period the Company recognizes the following components of employee benefits cost
arising from defined benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and
c. changes as a result of remeasurement of the net defined benefit liability (asset). Item a and item b are recognized
in profit or loss or the cost of a relevant asset. Item c is recognized in other comprehensive income and is not to be
reclassified subsequently to profit or loss. However the Company may transfer those amounts recognized in other
comprehensive income within equity.
4. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination
benefits with a corresponding charge to profit or loss at the earlier of the following dates: (1) when the Company
cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
154Infore Environment Technology Group Co. Ltd. 2024 Annual Report
curtailment proposal; or (2) when the Company recognizes cost or expenses related to a restructuring that involves
the payment of termination benefits.
5. Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as
a defined contribution plan those benefits are accounted for in accordance with the requirements relating to defined
contribution plan while other benefits are accounted for in accordance with the requirements relating to defined
benefit plan. The Company recognizes the cost of employee benefits arising from other long-term employee benefits
as the followings: (1) service cost; (2) net interest on the net liability or net assets of other long-term employee
benefits; and (3) changes as a result of remeasurement of the net liability or net assets of other long-term employee
benefits. As a practical expedient the net total of the aforesaid amounts is recognized in profit or loss or included
in the cost of a relevant asset.(XXIV) Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as
providing guarantee for other parties litigation products quality guarantee onerous contract etc. may cause the
outflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the
present obligations and its carrying amount is reviewed at the balance sheet date.(XXV) Share-based payment
1. Types of share-based payment
Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment for settlements modifications and cancellations of share-based payment plans
(1) Equity-settled share-based payment
For equity-settled share-based payment transaction with employees if the equity instruments granted vest
immediately the fair value of those equity instruments is measured at grant date and recognized as transaction cost
or expense with a corresponding adjustment in capital reserve; if the equity instruments granted do not vest until
the counterparty completes a specified period of service or fulfills certain performance conditions at the balance
sheet date within the vesting period the fair value of those equity instruments measured at grant date based on the
best estimate of the number of equity instruments expected to vest is recognized as transaction cost or expense with
a corresponding adjustment in capital reserve.For equity-settled share-based payment transaction with parties other than employees if the fair value of the
services received can be measured reliably the fair value is measured at the date the Company receives the service;
if the fair value of the services received cannot be measured reliably but that of equity instruments can be measured
reliably the fair value of the equity instruments granted measured at the date the Company receives the service is
referred to and recognized as transaction cost or expense with a corresponding increase in equity.
(2) Cash-settled share-based payment
For cash-settled share-based payment transactions with employees if share appreciation rights vest
immediately the fair value of the liability incurred as the acquisition of services is measured at grant date and
recognized as transaction cost or expense with a corresponding increase in liabilities; if share appreciation rights
155Infore Environment Technology Group Co. Ltd. 2024 Annual Report
do not vest until the employees have completed a specified period of service or fulfills certain performance
conditions the liability is measured at each balance sheet date until settled at the fair value of the share appreciation
rights measured at grant date based on the best estimate of the number of share appreciation right expected to vest.
(3) Modifications and cancellations of share-based payment plan
If the modification increases the fair value of the equity instruments granted the Company includes the
incremental fair value granted in the measurement of the amount recognized for services received as consideration
for the equity instruments granted; similarly if the modification increases the number of equity instruments granted
the Company includes the fair value of the additional equity instruments granted in the measurement of the amount
recognized for services received as consideration for the equity instruments granted; if the Company modifies the
vesting conditions in a manner that is beneficial to the employee the Company takes the modified vesting conditions
into account.If the modification reduces the fair value of the equity instruments granted the Company does not take into
account that decrease in fair value and continue to measure the amount recognized for services received as
consideration for the equity instruments based on the grant date fair value of the equity instruments granted; if the
modification reduces the number of equity instruments granted to an employee that reduction is accounted for as a
cancellation of that portion of the grant; if the Company modifies the vesting conditions in a manner that is not
beneficial to the employee the Company does not take the modified vesting conditions into account.If the Company cancels or settles a grant of equity instruments during the vesting period (other than that
cancelled when the vesting conditions are not satisfied) the Company accounts for the cancellation or settlement as
an acceleration of vesting and therefore recognizes immediately the amount that otherwise would have been
recognized for services received over the remainder of the vesting period.(XXVI) Other financial instruments such as preferred shares and perpetual bonds
Pursuant to CASBEs on financial instruments and “Regulations on Accounting Treatments of Perpetual Bonds”
(Cai Kuai [2019] No. 2) issued by the Ministry of Finance for financial instruments such as convertible bonds etc.
the Company classifies a financial instrument or its components at initial recognition as a financial asset or liability
or equity instrument based on contract terms and economic essence it reveals instead of its legal form combining
with the definitions of financial asset liability and equity instrument.At the balance sheet date for a financial instrument classified as an equity instrument its interest expenditure
or dividend distribution is treated as profit distribution and share repurchase and cancelation are treated as changes
in equity; for a financial instrument classified as a financial liability its interest expenditure or dividend distribution
is treated as borrowing expense and gain or loss on repurchase or redemption is included in profit or loss.(XXVII) Revenue
1. Revenue recognition principles
At contract inception the Company shall assess the contracts and shall identify each performance obligation
in the contracts and determine whether the performance obligation should be satisfied over time or at a point in
time.The Company satisfies a performance obligation over time if one of the following criteria is met otherwise
the performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes
156Infore Environment Technology Group Co. Ltd. 2024 Annual Report
the economic benefits provided by the Company's performance as the Company performs; (2) the customer can
control goods as they are created by the Company's performance; (3) goods created during the Company's
performance have irreplaceable uses and the Company has an enforceable right to the payments for performance
completed to date during the whole contract period.For each performance obligation satisfied over time the Company shall recognize revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. In the circumstance that the
progress cannot be measured reasonably but the costs incurred in satisfying the performance obligation are expected
to be recovered the Company shall recognize revenue only to the extent of the costs incurred until it can reasonably
measure the progress. For each performance obligation satisfied at a point in time the Company shall recognize
revenue at the time point that the customer obtains control of relevant goods or services. To determine whether the
customer has obtained control of goods the Company shall consider the following indications: (1) the Company
has a present right to payments for the goods i.e. the customer is presently obliged to pay for the goods; (2) the
Company has transferred the legal title of the goods to the customer i.e. the customer has legal title to the goods;
(3) the Company has transferred physical possession of the goods to the customer i.e. the customer has physically
possessed the goods; (4) the Company has transferred significant risks and rewards of ownership of the goods to
the customer i.e. the customer has obtained significant risks and rewards of ownership of the goods; (5) the
customer has accepted the goods; (6) other evidence indicating the customer has obtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer excluding amounts collected on behalf of third parties and those
expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount the Company shall confirm the best
estimate of variable consideration at expected value or the most likely amount. However the transaction price that
includes the amount of variable consideration only to the extent that it is high probable that a significant reversal in
the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable
consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component the Company shall
determine the transaction price based on the price that a customer would have paid for if the customer had paid cash
for obtaining control over those goods or services. The difference between the transaction price and the amount of
promised consideration is amortized under effective interest method over contractual period. The effects of a
significant financing component shall not be considered if the Company expects at the contract inception that the
period between when the customer obtains control over goods or services and when the customer pays consideration
will be one year or less.
(4) For contracts containing two or more performance obligations the Company shall determine the stand-
alone selling price at contract inception of the distinct good underlying each performance obligation and allocate
the transaction price to each performance obligation on a relative stand-alone selling price basis.
3. Revenue recognition method
157Infore Environment Technology Group Co. Ltd. 2024 Annual Report
The Company mainly sells environmental and sanitation machinery ventilation equipment etc. and engages
in sanitation operation service.
(1)Sale of environmental and sanitation machinery is a performance obligation satisfied at a point in time and
revenue is recognized when the products have been delivered and accepted and the Company has collected the
payments or has obtained the right to the payments and related economic benefits are highly probable to flow to
the Company.
(2) Sale of ventilation equipment is a performance obligation satisfied at a point in time. Revenue from
domestic sales of products that do not require installation is recognized when the Company has delivered goods to
the designated address as agreed by contract and such delivered goods have been verified for acceptance by
customers and the Company has obtained delivery receipts and has collected the payments or has obtained the
right to the payments and related economic benefits are highly probable to flow to the Company. For products that
need to be installed revenue is recognized when the products are delivered and qualified for installation
commissioning and acceptance. Revenue from overseas sales is recognized when the Company has declared goods
to the customs based on contractual agreements and has obtained a bill of lading and the Company has collected
the payments or has obtained the right to the payments and related economic benefits are highly probable to flow
to the Company.
(3) Comprehensive environmental and sanitation management engineering is a performance obligation
satisfied over time. Revenue is recognized based on the performance progress according to the project progress
confirmed by the supervisor.
(4) Sanitation operation service is a performance obligation satisfied over time. Revenue is recognized based
on the service assessment statement confirmed by the labor receiving party etc.
(5) For revenue recognition method of PPP business with BOT model etc. please refer to section III (XXXV)
1 of notes to the financial statements for details.
(XXVIII) Costs to obtain a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected
to be recovered. The costs of obtaining a contract shall be included into profit or loss when incurred if the
amortization period of the asset is one year or less.If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories fixed
assets or intangible assets etc. the Company shall recognize the costs to fulfill a contract as an asset if all the
following criteria are satisfied:
1. the costs relate directly to a contract or to an anticipated contract including direct labor direct materials
manufacturing overhead cost (or similar cost) costs that are explicitly chargeable to the customer under the contract
and other costs that are only related to the contract;
2. the costs enhance resources of the Company that will be used in satisfying performance obligations in the
future; and
3. the costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goods
or services with amortization included into profit or loss.
158Infore Environment Technology Group Co. Ltd. 2024 Annual Report
The Company shall make provision for impairment and recognize an impairment loss to the extent that the
carrying amount of an asset related to contract costs exceeds the remaining amount of consideration that the
Company expects to receive in exchange for the goods or services to which the asset relates less the costs expected
to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized in profit or
loss when the impairment conditions no longer exist or have improved. The carrying amount of the asset after the
reversal shall not exceed the amount that would have been determined on the reversal date if no provision for
impairment had been made previously.(XXIX) Contract assets contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance obligations and customers' payments. Contract assets and contract liabilities under the
same contract shall offset each other and be presented on a net basis.The Company presents an unconditional right to consideration (i.e. only the passage of time is required before
the consideration is due) as a receivable and presents a right to consideration in exchange for goods that it has
transferred to a customer (which is conditional on something other than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has received
consideration (or the amount is due) from the customer as a contract liability.(XXX) Government grants
1. Government grants shall be recognized if and only if the following conditions are all met: (1) the Company
will comply with the conditions attaching to the grants; (2) the grants will be received. Monetary government grants
are measured at the amount received or receivable. Non-monetary government grants are measured at fair value
and can be measured at nominal amount in the circumstance that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company purchases constructs or
otherwise acquires long-term assets under requirements of government. In the circumstances that there is no specific
government requirement the Company shall determine based on the primary condition to acquire the grants and
government grants related to assets are government grants whose primary condition is to construct or otherwise
acquire long-term assets. They offset carrying amount of relevant assets or they are recognized as deferred income.If recognized as deferred income they are included in profit or loss on a systematic basis over the useful lives of
the relevant assets. Those measured at notional amount are directly included into profit or loss. For assets sold
transferred disposed or damaged within the useful lives balance of unamortized deferred income is transferred into
profit or loss of the period in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For government
grants that contain both parts related to assets and parts related to income in which those two parts are blurred they
are thus collectively classified as government grants related to income. For government grants related to income
used for compensating the related future cost expenses or losses they are recognized as deferred income and
included in profit or loss or used to offset relevant cost during the period in which the relevant cost expenses or
losses are recognized; for government grants related to income used for compensating the related cost expenses or
159Infore Environment Technology Group Co. Ltd. 2024 Annual Report
losses incurred to the Company they are directly included in profit or loss or used to offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or used to
offset relevant cost based on business nature while those not related to the ordinary course of business shall be
included into non-operating revenue or expenditures.(XXXI) Deferred tax assets and deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between
the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of
items not recognized as assets and liabilities but with their tax base being able to be determined according to tax
laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be
recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income which is most likely to
obtain and which can be deducted from the deductible temporary difference. At the balance sheet date if there is
any exact evidence indicating that it is probable that future taxable income will be available against which deductible
temporary differences can be utilized the deferred tax assets unrecognized in prior periods are recognized.
3. At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be available
to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to the extent
that it becomes probable that sufficient taxable income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit
or loss excluding those arising from the following circumstances: (1) business combination; and (2) the transactions
or items directly recognized in equity.
5. Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when
the following conditions are all met: (1) the Company has the legal right to settle off current tax assets against
current tax liabilities; (2) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the
same tax authority on either: 1) the same taxable entity; or 2) different taxable entities which intend either to settle
current tax liabilities and assets on a net basis or to realize the assets and settle the liabilities simultaneously in
each future period in which significant amounts of deferred tax assets or liabilities are expected to be recovered or
settled.(XXXII) Leases
1. The Company as the lessee
At the commencement date the Company recognizes a lease that has a lease term of 12 months or less as a
short-term lease which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-
value asset if the underlying asset is of low value when it is new. If the Company subleases an asset or expects to
sublease an asset the head lease does not qualify as a lease of a low-value asset.For all short-term leases and leases of low-value assets lease payments are recognized as cost or profit or loss
with straight-line method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach the
Company recognizes right-of-use assets and lease liabilities at the commencement date.
160Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement
of the lease liabilities; 2) any lease payments made at or before the commencement date less any lease incentives
received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset restoring the site on which it is located or restoring the underlying
asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certain
that the ownership of the underlying asset can be acquired by the end of the lease term the Company depreciates
the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise
the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful
life of the right-of-use asset or the end of the lease term.
(2) Lease liabilities
At the commencement date the Company measures the lease liability at the present value of the lease payments
that are not paid at that date discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined the Company's incremental borrowing rate shall be used. Unrecognized financing expenses calculated
at the difference between the lease payment and its present value are recognized as interest expenses over the lease
term using the discount rate which has been used to determine the present value of lease payment and included in
profit or loss. Variable lease payments not included in the measurement of lease liabilities are included in profit or
loss in the periods in which they are incurred.After the commencement date if there is a change in the following items: 1) actual fixed payments; 2) amounts
expected to be payable under residual value guarantees; 3) an index or a rate used to determine lease payments; 4)
assessment result or exercise of purchase option extension option or termination option the Company remeasures
the lease liability based on the present value of lease payments after changes and adjusts the carrying amount of
the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is reduced to zero but there shall
be a further reduction in the lease liability the remaining amount shall be recognized into profit or loss.
2. The Company as the lessor
At the commencement date the Company classifies a lease as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset. Otherwise it is classified as an operating lease.
(1) Operating lease
Lease receipts are recognized as lease income with straight-line method over the lease term. Initial direct costs
incurred shall be capitalized amortized on the same basis as the recognition of lease income and included into
profit or loss by installments. Variable lease payments related to operating lease which are not included in the lease
payment are charged as profit or loss in the periods in which they are incurred.
(2) Finance lease
At the commencement date the Company recognizes the finance lease payment receivable based on the net
investment in the lease (sum of the present value of unguaranteed residual value and lease receipts that are not
received at the commencement date discounted by the interest rate implicit in the lease) and derecognizes assets
held under the finance lease. The Company calculates and recognizes interest income using the interest rate implicit
161Infore Environment Technology Group Co. Ltd. 2024 Annual Report
in the lease over the lease term.Variable lease payments not included in the measurement of the net investment in the lease are charged as
profit or loss in the periods in which they are incurred.
3. Sale and leaseback
(1) The Company as the lessee
In accordance with the “CASBE 14 – Revenues” the Company would assess and determine whether the
transfer of an asset in the sale and leaseback transaction is accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset the Company measures the right-of-use asset
arising from the leaseback at the proportion of the original carrying amount of the asset that relates to the right of
use retained by the Company. Accordingly the Company recognizes only the amount of any gain or loss that relates
to the rights transferred to the lessor.Otherwise the Company continues the recognition of the transferred assets and recognizes a financial liabilityequal to the amount of transfer income in accordance with the “CASBE 22 – Financial Instruments: Recognitionand Measurement” at the same time.
(2) The Company as the lessor
In accordance with the “CASBE 14 – Revenues” the Company would assess and determine whether the
transfer of an asset in the sale and leaseback transaction is accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset the Company accounts for the purchase of
assets in accordance with other applicable standards and accounts for the lease of assets in accordance with the
“CASBE 21 – Leases”.Otherwise the Company does not recognize the transferred asset but recognizes a financial asset equal to theamount of transfer income in accordance with the “CASBE 22 – Financial Instruments: Recognition andMeasurement”.(XXXIII) Work safety fundThe Company appropriates work safety fund in accordance with the “Circular on Management Measures onthe Appropriation and Use of Work Safety Fund” (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the
Ministry of Emergency Management. Standard work safety fund is included in the cost or profit or loss meanwhile
accounted for under “special reserve”. When work safety fund is used as an expense it is to offset special reserve
directly. When work safety fund is qualified to be included in the cost of fixed assets it is accounted for under
“construction in progress” and transferred to fixed assets when related safety projects reach the designed useful
conditions; meanwhile the cost included in fixed assets is to offset “special reserve” and accumulated depreciation
shall be recognized at the same amount. Such fixed assets shall not be depreciated in future periods.(XXXIV) Segment reporting
Operating segments are determined based on the structure of the Company's internal organization management
requirements and internal reporting system. An operating segment is a component of the Company:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. whose financial performance is regularly reviewed by the Management to make decisions about resource to
be allocated to the segment and to assess its performance; and
162Infore Environment Technology Group Co. Ltd. 2024 Annual Report
3. for which accounting information regarding financial position financial performance and cash flows is
available through analysis.(XXXV) Other significant accounting policies and estimates
1. PPP business
The Company adopts the build-operate-transfer approach (PPP projects mainly using BOT TOT etc.) to
participate in the public infrastructure business. The project company obtains the franchise of public infrastructure
projects from government departments and participates in the construction and operation of the project. After the
franchise expires the project company needs to hand over relevant infrastructure to the government or the
department designated by the government.For the PPP project contract under which the Company provides multiple services (such as the rendering of
construction services of PPP projects as well as post-completion operation services and maintenance services) theCompany identifies each performance obligation in the contracts in accordance with the provisions of “CASBE 14– Revenues” and allocates the transaction price to each performance obligation on the basis of the relative stand-
alone selling prices. If the stand-alone selling price cannot be directly observed or if there is a lack of similar market
prices the Company will take into account market conditions specific factors of the Company and information
related to customers and other relevant information and make a reasonable estimate of the stand-alone selling price
using methods such as market adjustment method cost-plus method residual value method etc. Construction
services are performance obligations satisfied over time. Revenue from construction services is recognized by the
percentage of completion of the performance obligations which is determined based on the proportion of the
incurred costs to the estimated total costs. In the circumstance that the percentage of completion cannot be measured
reasonably but the incurred costs are expected to be recovered the Company recognizes revenue only to the extent
of the incurred costs until it can reasonably measure the percentage of completion.The Company has the right to charge users of public goods and services during the operation of the project in
accordance with the PPP project contracts. However if the amount of the fees is uncertain such right does not
constitute an unconditional right to receive cash and the consideration or construction revenue of the relevant PPP
project assets is recognized as intangible assets when the PPP project assets reach the designed useful conditions
which shall be accounted for in accordance with “CASBE 6 – Intangible Assets”.If the Company is qualified to have the right to receive a determinable amount of cash (or other financial assets)
during the operation of the project in accordance with the PPP project contracts such amount is recognized as
accounts receivable when the Company has the right to such consideration (the right depends only on the factor ofthe passage of time) and is accounted for in accordance with “CASBE 22 – Financial Instruments: Recognition andMeasurement”. The Company recognizes the difference between the consideration or construction revenue of the
relevant PPP project assets and the determinable amount of cash (or other financial assets) as intangible assets when
the PPP project assets reach the designed useful conditions.For the portion of the consideration or construction revenue recognized as intangible assets the contract assets
recognized during the relevant construction period are presented under “intangible assets” in the balance sheet; for
other contract assets recognized during the construction period they are presented under “contract assets” or “othernon-current assets” in the balance sheet if they are expected to be realized within twelve months of the balance sheet
163Infore Environment Technology Group Co. Ltd. 2024 Annual Report
date.After the PPP project assets reach the designed useful conditions the Company recognizes revenue related to
operating services in accordance with “CASBE 14 – Revenues”.
2. Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its
employees if the purchased shares are to be kept as treasury shares the treasury shares are recorded at the cash
distributed to existing shareholders for repurchase; if the purchased shares are to be retired the difference between
the total book value of shares retired and the cash distributed to existing shareholders for repurchase is to reduce
capital reserve or retained earnings when the capital reserve is not enough to reduce. If the Company repurchases
vested equity instruments in equity-settled share-based payment transactions with employees cost of treasury shares
granted to employees and capital reserve (other capital reserve) accumulated within the vesting period are to be
written off on the payment made to employees with a corresponding adjustment in capital reserve (share premium).(XXXVI) Significant changes in accounting policies
Changes in accounting policies arising from changes in CASBEs
1. The Company has adopted the regulations about classification of liabilities as current or non-current in the
“Interpretation of China Accounting Standards for Business Enterprises No. 17” issued by the Ministry of Finance
since January 1 2024. Such change in accounting policies has no impact on the Company's financial statements.
2. The Company has adopted the regulations about disclosure of supplier finance arrangements in the
“Interpretation of China Accounting Standards for Business Enterprises No. 17” issued by the Ministry of Finance
since January 1 2024.
3. The Company has adopted the regulations about accounting treatment of sale and leaseback transactions in
the “Interpretation of China Accounting Standards for Business Enterprises No. 17” issued by the Ministry of
Finance since January 1 2024. Such change in accounting policies has no impact on the Company's financial
statements.
4. The Company has adopted the regulations about accounting treatment of the assurance-type warranty notconsidered a separate performance obligation in the “Interpretation of China Accounting Standards for BusinessEnterprises No. 18” issued by the Ministry of Finance since January 1 2024 and makes retrospective adjustments
on the comparative information as follows:
Financial statement items significantly affected Amounts affected Remarks
Items of income statement of 2023
Operating cost 9468198.50
Selling expenses -9468198.50
IV. Taxes
(I) Main taxes and tax rates
164Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Taxes Tax bases Tax rates
3%6%9%13%.
The output tax calculated based on the revenue
Exported goods are
from sales of goods or rendering of services insubject to “exemptionValue-added tax (VAT) accordance with the tax law net of the inputcredit refund” policies
tax that is allowed to be deducted in the
with refund rate of
current period
13%.
For housing property levied on the basis of price
housing property tax is levied at the rate of 1.2% of
the balance after deducting 30% [Note 1] of the
Housing property tax 1.2% 12%
cost; for housing property levied on the basis of
rent housing property tax is levied at the rate of
12% of lease income
Urban maintenance and
Turnover tax actually paid 7% 5%
construction tax
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2% 1%
15% 20% 25% [Note
Enterprise income tax Taxable income
2]
165Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Note 1: For Changsha Zoomlion Environmental Industry Co. Ltd. (the “Zoomlion Environmental Company”)
and some of its subsidiaries housing property tax is levied on the basis of price and calculated at the rate of 1.2%
of the balance after deducting 20% of the cost.Note 2: The overseas subsidiaries are subject to local tax regulations of the places where they operate.Different enterprise income tax rates applicable to different taxpayers:
Income tax rate
TaxpayersGuangdong Infore Technology Co. Ltd. (the “Infore Technology
15%Company”)
Guangdong Infore Intelligent Sanitation Technology Co. Ltd. 15%
Zoomlion Environmental Company 15%
Zhejiang Shangfeng Special Blower Industrial Co. Ltd. (the
15%
“Shangfeng Industrial Company”)
Fengyun IoT Technology Co. Ltd. 15%
Huaian Chenjie Environmental Engineering Co. Ltd. 15%Zhejiang Yolsh Electric Drive Technology Co. Ltd. (the “Yolsh
15%Company”)
Xiantao Green Oriental Environmental Power Generation Co. Ltd. (the
15%
“Xiantao Company”)Lianjiang Green Oriental New Energy Co. Ltd. (the “Lianjiang
15%Company”)
25% 20% for small enterprises
Taxpayers other than the above-mentioned
with meager profit
(II) Tax preferential policies
1. Enterprise income tax
No. Entities Preferential policies
Zoomlion Environmental Company Fengyun IoT
Technology Co. Ltd. Huaian Chenjie Pursuant to the preferential income tax policy for high-tech enterprises
Environmental Engineering Co. Ltd. Yolsh enterprise income tax rate is reduced to 15% from 2023 to 2025.Company Xiantao Company
Shangfeng Industrial Company Infore
Technology Company Guangdong Infore Pursuant to the preferential income tax policy for high-tech enterprises
Intelligent Sanitation Technology Co. Ltd. enterprise income tax rate is reduced to 15% from 2022 to 2024.Lianjiang Company
Subsidiaries including Guangdong Infore Low
Carbon Recycling Technology Co. Ltd. Revenue from the production of non-restricted and non-prohibited
3 Zhanjiang Xiashan Yingde Recycling Resources products that meet the relevant national and industry standards usingCo. Ltd. Hubei Fenghe New Materials Co. Ltd. resources specified in the “Resources Comprehensive Utilization ofetc. Enterprise Income Tax Preferential Catalog (2021 Edition)” as the main
166Infore Environment Technology Group Co. Ltd. 2024 Annual Report
No. Entities Preferential policies
raw material will be reduced to 90% as taxable income for enterprise
income tax in the current period.Pursuant to the “Announcement of Ministry of Finance (MOF) andState Taxation Administration (STA) on the Further Implementation of
the Enterprise Income Tax Preferential Policies for Small Enterpriseswith Meager Profit and Individually-owned Businesses”
(Announcement of MOF and STA [2022] No. 13) “Announcement ofSubsidiaries including Shenzhen Infore City
MOF and STA on the Enterprises Income Tax Preferential Policies for
Service Intelligent Technology Co. Ltd. Foshan
Small Enterprises with Meager Profit and Individually-owned
4 Liansheng Environmental Sanitation Service Co.Businesses” (Announcement of MOF and STA [2023] No. 6)and the
Ltd. Dingnan Zoomlion Environmental Industry“Announcement of MOF and STA on Further Implementation of theCo. Ltd. etc.Enterprises Income Tax Preferential Policies for Small Enterprises withMeager Profit and Individually-Owned Businesses” (Announcement
[2023] No. 12) from January 1 2023 to December 31 2027 the
enterprise income tax for the portion of the taxable income within 3
million yuan is levied at 20% based on 25% of that portion of income.Pursuant to the “Law of the People's Republic of China on EnterpriseIncome Tax” and its implementation regulations the “Notice of MOFSTA and National Development and Reform Commission (NDRC) on
Publishing the Catalog of Enterprise Income Tax Preferences for
Environmental Protection Energy Saving and Water Saving Projects
Subsidiaries and sub-subsidiaries including(Trial)” (Cai Shui [2009] No. 166) (the “2009 Catalog”) the project
Pingdingshan Yinghe Environmental Sanitation
companies are entitled to enjoy the preferential policy of three-year
5 Management Co. Ltd. Heyang Yinghe Urban
exemption from the first profit-making year followed by three years of
Environmental Service Co. Ltd. Huai'an Yinghe
50% reduction of enterprise income tax. Pursuant to the
Environmental Technology Co. Ltd. etc.“Announcement No. 36 2021 of MOF STA NDRC and Ministry ofEcology and Environment” issued by four departments including the
MOF dated December 16 2021 the entities' business comply with the
“2021 Catalog” and relevant projects can still enjoy the above
preferential policy.Pursuant to the document numbered Guo Ban Han [2012] 103 by the
State Council newly established enterprises that settle in the Ruili Pilot
Zone are entitled to enjoy the five-year-exemption and five-year-half-
reduction policy for the enterprise income tax shared by the local
6 Ruili Yinglian Environmental Industry Co. Ltd. authority of the region (40% of total enterprise income tax) i.e. they
enjoy enterprise income tax exemption from 2021 to 2025 and enjoy a
50% reduction in income from 2026 to 2030 while for the enterprise
income tax shared by central government (60%) they enjoy the
preferential policy as small enterprises with meager profit.
2. VAT
(1) Pursuant to the “Notice of MOF and STA on VAT Policies for Software Products” (Cai Shui [2011] No.
100) general VAT taxpayers who sell software products developed and produced by themselves are subject
to VAT refund upon collection for the amount exceeding 3% of their actual VAT burdens. In 2024 the
subsidiaries Zoomlion Environmental Company is entitled to enjoy the VAT refund upon collection policy
for sale of their self-developed and self-produced software products.
(2) Pursuant to the “Notice of MOF and STA on Extra VAT Deduction Policy for Advanced Manufacturing
167Infore Environment Technology Group Co. Ltd. 2024 Annual ReportEnterprises” (Announcement of MOF and STA [2023] No. 43) from January 1 2023 to December 31 2027
advanced manufacturing enterprises are eligible to enjoy an extra 5% VAT credit. In 2024 the subsidiaries
Zoomlion Environmental Company Infore Technology Company Shangfeng Industrial Company and Yolsh
Company are entitled to enjoy such preferential policy.
(3) Pursuant to Article 2 of the “Announcement of MOF and STA on Improving VAT Policy for ImprovingComprehensive Utilization of Resources” (Announcement of MOF and STA [2021] No. 40) enterprises
producing electricity and heat products with fuel from garbage and biogas resources produced by garbage
fermentation are entitled to enjoy 100% VAT refund upon collection. Pursuant to Article 5 enterprises
rendering garbage treatment and sewage treatment services are entitled to enjoy 70% VAT refund upon
collection. The subsidiaries Lianjiang Company Shouxian Green Oriental New Energy Co. Ltd. (the
“Shouxian Company”) and Huaian Chenjie Environmental Engineering Co. Ltd. are entitled to enjoy such
preferential policy in the current period.
(4) Pursuant to the “Measures for the Implementation of the Pilot Implementation of VAT Reform for theTransportation Industry and Certain Modern Service Industries” (Cai Shui [2011] No. 111) revenue from
technology transfer technology development and related technical consulting and technical service
businesses is exempt from VAT. In 2024 the subsidiary Shenzhen Dingzhu Environmental Technology Co.Ltd. meets the condition and is exempt from VAT.
(5) Pursuant to the “Announcement of MOF STA and Ministry of Veterans Affairs (MVA) on Tax Policiesfor Further Supporting the Business Startup by and the Employment of Veterans Seeking IndependentEmployment” (Announcement of MOF STA and MVA [2023] No. 14) from January 1 2023 to December
31 2027 if an enterprise enters into an employment contract with veteran seeking independent employment
for a term of one year or more and pays social insurance premiums in accordance with the law it may enjoy
a credit within the standard quota against in sequential order VAT urban maintenance and construction tax
educational surcharge local education surcharges and enterprise income tax according to the number of
persons actually employed for three years from the month when the employment contract is signed and the
social premiums are paid. In 2024 the subsidiary Huaian Chenjie Environmental Engineering Co. Ltd. and
some subsidiaries of the subsidiary Zoomlion Environmental Company were entitled to enjoy such tax
reduction and exemption policy.
(8) Pursuant to the “Announcement of the MOF SAT Ministry of Human Resources and Social Security(MHR) Ministry of Agriculture and Rural Affairs (MAR) on Tax Policies for Further Supporting theBusiness Startup by and the Employment of Key Populations” (Announcement [2023] No. 15) from January
1 2023 to December 31 2027 if an enterprise enters into an employment contract with people who have
been lifted out of poverty as well as people who have been registered as unemployed for more than six
months at the public employment service agency of MHR with an “Entrepreneurship Certificate” or
“Unemployment Registration Certificate” (Indicated “Enterprise Tax Absorption Policy”) for a term of one
168Infore Environment Technology Group Co. Ltd. 2024 Annual Report
year or more and pays social insurance premiums in accordance with the law it may enjoy a credit within the
standard quota against in sequential order VAT urban maintenance and construction tax educational
surcharge local education surcharges and enterprise income tax according to the number of persons actually
employed for three years from the month when the employment contract is signed and the social premiums
are paid. In 2024 the subsidiary Zoomlion Environmental Company and its certain subsidiaries were entitled
to enjoy such tax reduction and exemption policy.
3. Reduction and exemption policy on six local taxes and two ratesPursuant to the “Announcement of the MOF and SAT on Tax Policies for Further Supporting theDevelopment of Small Enterprises with Meager Profit and Individually-Owned Businesses” (Announcement
of MOF and STA [2023] No. 12) from January 1 2023 to December 31 2027 for VAT small-scale
taxpayers small enterprises with meager profit and individually-owned businesses resource tax (excluding
water resources tax) urban maintenance and construction tax housing property tax urban land use tax
stamp duty (excluding securities transaction stamp duty) cultivated land occupation tax and education
surcharge local education surcharge will be halved. In 2024 some subsidiaries of Zoomlion Environmental
Company and Shenzhen Infore City Service Intelligent Technology Co. Ltd. were eligible to enjoy such tax
preferential policy.V. Notes to Items of Consolidated Financial Statements
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
Closing balance Opening balance
Items
165440.86310688.91
Cash on hand
4998036090.594150666527.57
Cash in bank
119793585.77260399367.30
Other cash and bank balances
5117995117.224411376583.78
Total
36016679.211519215.68
Including: Deposited overseas
(2) Other remarks
1) Closing balance of cash in bank included certificates of deposit of 300196944.44 yuan factoring
collections held in custody of 6357287.45 yuan funds frozen due to lawsuits of 1968278.41 yuan frozen
security deposits of 261796.72 yuan and others of 362768.22 yuan totaling 309147075.24 yuan which
was with use restrictions.
2) Closing balance of other cash and bank balances included deposits for letters of guarantee of
63861028.22 yuan credit deposits of 49777904.86 yuan deposits for notes of 2134405.12 yuan deposits
for land reclamation of 1382242.32 yuan deposits for buyer's credit of 863453.18 yuan engineering
169Infore Environment Technology Group Co. Ltd. 2024 Annual Report
deposits of 608777.07 yuan and ETC deposits of 3000.00 yuan totaling 118630810.77 yuan which was
with use restrictions.
2. Notes receivable
(1) Details
Closing balance Opening balance
Items
1153333.584597270.24
Bank acceptance
1290912.03349861.59
Trade acceptance
2444245.614947131.83
Total
(2) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision made on
2887435.03100.00443189.4215.352444245.61
a collective basis
Including: Bank acceptance 1153333.58 39.94 1153333.58
Trade acceptance 1734101.45 60.06 443189.42 25.56 1290912.03
Total 2887435.03 100.00 443189.42 15.35 2444245.61
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision made
5005019.28100.0057887.451.164947131.83
on a collective basis
Including: Bank acceptance 4597270.24 91.85 4597270.24
Trade acceptance 407749.04 8.15 57887.45 14.20 349861.59
Total 5005019.28 100.00 57887.45 1.16 4947131.83
2) Notes receivable with provision for bad debts made on a collective basis
170Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance
Items Provision proportion
Book balance Provision for bad debts
(%)
Bank acceptance portfolio 1153333.58
Trade acceptance portfolio 1734101.45 443189.42 25.56
Subtotal 2887435.03 443189.42 15.35
(3) Changes in provision for bad debts
Increase/Decrease
Opening
Items Closing balance
balance Recovery or
Accrual Write-off Others
reversal
Receivables with
57887.45385301.97443189.42
provision made on a
collective basis
57887.45385301.97443189.42
Total
(4) No pledged notes at the balance sheet date.
(5) Endorsed or discounted but undue notes at the balance sheet date
Closing balance not yet
Closing balance derecognized
Items derecognized
1734101.45
Trade acceptance
1734101.45
Subtotal
(6) Notes receivable transferred to accounts receivable due to non-performance of issuer
Amount written off
Items
8539412.75
Trade acceptance
8539412.75
Subtotal
3. Accounts receivable
(1) Age analysis
Closing balance Opening balance
Ages
5167753317.614798113288.74
Within 1 year
1014928501.08930689479.95
1-2 years
488245197.47552003141.94
2-3 years
403022500.69277106854.66
3-5 years
108571288.3189167772.76
Over 5 years
171Infore Environment Technology Group Co. Ltd. 2024 Annual Report
7182520805.166647080538.05
Total book balance
958090587.39779411061.19
Less: Provision for bad debts
6224430217.775867669476.86
Carrying amount
(2) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
% to
Amount Amount proportion
total
(%)
Receivables with provision
205388214.202.86175166701.0185.2930221513.19
made on an individual basis
Receivables with provision
6977132590.9697.14782923886.3811.226194208704.58
made on a collective basis
Total 7182520805.16 100.00 958090587.39 13.34 6224430217.77
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
% to
Amount Amount proportion
total
(%)
Receivables with provision
261607248.183.94108069720.2341.31153537527.95
made on an individual basis
Receivables with provision
6385473289.8796.06671341340.9610.515714131948.91
made on a collective basis
Total 6647080538.05 100.00 779411061.19 11.73 5867669476.86
2) Significant accounts receivable with provision made on an individual basis
Opening balance Closing balance
Debtors Provision
Provision for bad Provision for bad Basis for
Book balance Book balance proportion
debts debts provision made
(%)
Guangdong Tianshu New Energy Expected credit
189921071.3956976321.42130800778.19104640622.5580.00
Technology Co. Ltd. losses
Subtotal 189921071.39 56976321.42 130800778.19 104640622.55 80.00
3) Accounts receivable with provision for bad debts made on a collective basis
172Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance
Items Provision proportion
Book balance Provision for bad debts
(%)
Portfolio grouped with
6944418616.96777955998.6411.20
ages
Portfolio grouped with
commercial factoring 32713974.00 4967887.74 15.19
receivable
Subtotal 6977132590.96 782923886.38 11.22
4) Accounts receivable with provision made on a collective basis using age analysis method
Closing balance
Ages Provision proportion
Book balance Provision for bad debts
(%)
Within 1 year 5015010397.06 250750520.00 5.00
1-2 years 995337204.38 99533720.44 10.00
2-3 years 457161019.70 137148305.91 30.00
3-5 years 372773087.08 186386543.55 50.00
Over 5 years 104136908.74 104136908.74 100.00
Subtotal 6944418616.96 777955998.64 11.20
5) Commercial factoring portfolio grouped by five-level classification
Closing balance
Five-level Unrealized
classification Provision for bad Provision Book balance finance
debts proportion (%)
income
Pass 23938400.00 359076.00 1.50
Special-mention 658844.32 19765.33 3.00
Substandard 936638.02 280991.41 30.00
Doubtful 7180091.66 4308055.00 60.00
Subtotal 32713974.00 4967887.74 15.19
(3) Changes in provision for bad debts
1) Details
173Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Increase/Decrease
Items Opening balance Closing balance
Accrual Recovery or reversal Write-off Others
Receivables with
108069720.23113298440.418712878.6321040111.5716448469.43175166701.01
provision made on an
individual basis
Receivables with
671341340.96133913126.6522330581.23782923886.38
provision made on a
collective basis
779411061.19247211567.068712878.6321040111.5738779050.66958090587.39
Total
2) No significant provisions collected or reversed in the current period.
(4) Accounts receivable actually written off in the current period
1) Accounts receivable written off
Amount written off
Items
21040111.57
Accounts receivable actually written off
2) No significant accounts receivable written off in the current period.
(5) Details of the top 5 debtors with largest balances of accounts receivable and contract assets
Closing book balance Provision for bad
Proportion to the total balance of
debts of accounts
accounts receivable and contract
Contract assets (including receivable and
Debtors assets (including contract assets
contract assets presented provision for
Accounts receivable Subtotal presented under other non-current
under other non-current impairment of
assets) (%)
assets) contract assets
No. 1 130800778.19 130800778.19 1.76 104640622.55
No. 2 102761400.00 102761400.00 1.38 5138070.00
No. 3 97124374.81 97124374.81 1.30 6779718.74
No. 4 93868366.24 17032357.94 110900724.18 1.49 14582973.64
No. 5 89283283.20 89283283.20 1.20 4692696.32
Subtotal 513838202.44 17032357.94 530870560.38 7.13 135834081.25
4. Receivables financing
(1) Details
Closing balance Opening balance
Items
201675177.13146814501.64
Bank acceptance
201675177.13146814501.64
Total
(2) No pledged receivables financing at the balance sheet date.
(3) Endorsed or discounted but undue receivables financing at the balance sheet date
Closing balance derecognized
Items
174Infore Environment Technology Group Co. Ltd. 2024 Annual Report
98574739.77
Bank acceptance
98574739.77
Subtotal
Due to the fact that the acceptor of bank acceptance is commercial bank which is of high credit level there is very
little possibility of failure in recoverability when it is due. Based on this fact the Company derecognized the
endorsed or discounted bank acceptance. However if any bank acceptance is not recoverable when it is due the
Company still holds joint liability on such acceptance according to the China Commercial Instrument Law.
5. Advances paid
(1) Age analysis
1) Details
Closing balance Opening balance
Ages
% to Provision for % to Provision for
Book balance Carrying amount Book balance Carrying amount
total impairment total impairment
Within 1 year 105675560.02 90.67 105675560.02 131172209.02 93.53 131172209.02
1-2 years 6563741.82 5.63 6563741.82 8100756.68 5.78 8100756.68
2-3 years 3747053.86 3.21 3747053.86 327684.83 0.23 327684.83
Over 3 years 569326.97 0.49 569326.97 640396.13 0.46 640396.13
Total 116555682.67 100.00 116555682.67 140241046.66 100.00 140241046.66
2) No material balance with age over one year.
(2) Details of the top 5 debtors with largest balances
Proportion to the total balance of
Debtors Book balance
advances paid (%)
No. 1 5227019.75 4.48
No. 2 3157927.53 2.71
No. 3 1988886.43 1.71
No. 4 1856332.80 1.59
No. 5 1513443.36 1.30
Subtotal 13743609.87 11.79
6. Other receivables
(1) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Temporary advance payment 130942325.64 163429454.84
175Infore Environment Technology Group Co. Ltd. 2024 Annual Report
receivable and petty cash
Security deposits 70844070.44 82240734.41
Performance compensation 14231285.04 113460620.00
Others 12785184.45 4598968.70
Total book balance 228802865.57 363729777.95
Less: Provision for bad debts 68535412.08 47068704.69
Carrying amount 160267453.49 316661073.26
(2) Age analysis
Ages Closing balance Opening balance
Within 1 year 116428153.86 117612450.57
1-2 years 29572716.48 65555129.46
2-3 years 31226881.64 149623905.77
3-4 years 32266905.43 10558177.00
4-5 years 4812643.70 14053059.51
Over 5 years 14495564.46 6327055.64
Total book balance 228802865.57 363729777.95
Less: Provision for bad debts 68535412.08 47068704.69
Carrying amount 160267453.49 316661073.26
(3) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
% to
Amount Amount proportion
total
(%)
Receivables with provision made
26497378.6511.5826497378.65100.00
on an individual basis
Receivables with provision made
202305486.9288.4242038033.4320.78160267453.49
on a collective basis
Total 228802865.57 100.00 68535412.08 29.95 160267453.49
(Continued)
176Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Opening balance
Book balance Provision for bad debts
Categories
Carrying
Provision
amount
Amount % to total Amount proportion
(%)
Receivables with provision made on
an individual basis
Receivables with provision made on
363729777.95100.0047068704.6912.94316661073.26
a collective basis
Total 363729777.95 100.00 47068704.69 12.94 316661073.26
2) Other receivables with provision made on a collective basis
a. Other receivables with provision made on a collective basis – parent company
Closing balance
Portfolios Provision for bad Provision proportion
Book balance
debts (%)
Portfolio grouped with
8859765.361751965.6119.77
buyer's credit
Portfolio grouped with ages 2076218.99 909605.81 43.81
Including: 1-180 days 296956.85
1-2 years 77782.54 7778.25 10.00
2-3 years 185071.33 55521.40 30.00
3-5 years 1222734.87 611367.44 50.00
Over 5 years 293673.40 234938.72 80.00
Subtotal 10935984.35 2661571.42 24.34
b. Other receivables with provision made on a collective basis – ventilation equipment manufacturing
industry and environmental integrated industry
Closing balance
Portfolios Provision for bad Provision proportion
Book balance
debts (%)
Portfolio grouped with ages 191369502.57 39376462.01 20.58
Including: Within 1 year 109187118.74 5459356.06 5.00
1-2 years 25020193.92 2502019.39 10.00
177Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance
Portfolios Provision for bad Provision proportion
Book balance
debts (%)
2-3 years 21334769.63 6400430.89 30.00
3-5 years 21625529.22 10812764.61 50.00
Over 5 years 14201891.06 14201891.06 100.00
Subtotal 191369502.57 39376462.01 20.58
(4) Changes in provision for bad debts
Stage 1 Stage 2 Stage 3
Lifetime expected
Items 12?month Lifetime expected credit losses Total
expected credit credit losses
(credit not
losses (credit impaired)
impaired)
Opening balance 5249420.60 6508951.47 35310332.62 47068704.69
Opening balance in the
——————
current period
--Transferred to stage 2 -1252565.37 1252565.37
--Transferred to stage 3 -2151984.10 2151984.10
--Reversed to stage 2
--Reversed to stage 1
Provision made in the
1521849.18-3098904.5925207588.9223630533.51
current period
Provision recovered or
reversed in the current
period
Provision written off in the
28950.0028950.00
current period
Other changes [Note] 59348.35 830.51 2074697.26 2134876.12
Closing balance 5459356.06 2509797.64 60566258.38 68535412.08
Provision proportion (%) 4.99 10.00 64.28 29.95
Note: Other changes refer to balances transferred out due to the disposal of subsidiaries including Foshan
Shunhe Environmental Protection Co. Ltd. the subsidiary Changsha Zoomlion Environmental Industry Co.Ltd.'s subsidiary Shengzhou Zoomlion Environmental Engineering Co. Ltd. Wuhan Tongying
178Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Environmental Sanitation Management Co. Ltd. and Zhoushan Yinghe Environmental Sanitation Service
Co. Ltd. in the current period.Division basis for each stage: ages of other receivables.
(5) Other receivables actually written off in the current period
1) Other receivables written off
Items Amount written off
Other receivables actually written off 28950.00
2) No significant other receivables written off in the current period.
(6) Details of the top 5 debtors with largest balances
Proportion to the Provision for bad
Closing book total balance of debts at the
Debtors Nature of receivables Ages
balance other receivables balance sheet
(%) date
Performance compensation
No. 1 and temporary advance 14563576.23 [Note] 6.37 14563576.23
payment receivable
Temporary advance payment
No. 2 12063471.72 Within 1 year 5.27 603173.59
receivable and petty cash
Temporary advance payment
No. 3 9707040.68 2-3 years 4.24 9707040.68
receivable and petty cash
No. 4 Others 7740651.66 Within 1 year 3.38 387032.58
No. 5 Security deposits 7120100.00 Within 1 year 3.11 356005.00
Subtotal 51194840.29 22.37 25616828.08
Note: It includes performance compensation of 14231285.04 yuan with age of 3 to 4 years and temporary
advance payment receivable of 332291.19 yuan with age over 5 years.
7. Inventories
(1) Details
Closing balance Opening balance
Items
Provision for Provision for Carrying
Book balance Carrying amount Book balance
write-down write-down amount
106242420.1919036911.5487205508.65124680011.5517707425.98106972585.57
Raw materials
Work in 217036401.50 4864512.39 212171889.11 185705546.49 5117048.20 180588498.29
process
722312988.7320357600.16701955388.57671255477.2710858073.14660397404.13
Goods on hand
179Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items
Provision for Provision for Carrying
Book balance Carrying amount Book balance
write-down write-down amount
Materials on
consignment 202066.19 202066.19 135587.95 135587.95
for further
processing
Costs to fulfill 39580638.48 39580638.48 23135561.21 23135561.21
a contract
1085374515.0944259024.091041115491.001004912184.4733682547.32971229637.15
Total
(2) Provision for inventory write-down
1) Details
Increase Decrease
Items Opening balance Closing balance
Reversal or transfer-
Accrual Others Others
out
17707425.986746207.265416721.7019036911.54
Raw materials
5117048.201813618.812066154.624864512.39
Work in process
10858073.1415778089.356278562.3320357600.16
Goods on hand
33682547.3224337915.4213761438.6544259024.09
Total
2) Determination basis of net realizable value and reasons for the reversal or transfer-out of provision for
inventory write-down
Reasons for transfer-out of provision for inventory
Determination basis of net realizable value
Items write-down
Estimated selling price of relevant finished goods Inventories with provision for inventory write-down
Raw materials
less cost to be incurred upon completion estimated made at the beginning of the period were used or sold
and work in
process selling expenses and relevant taxes and surcharges in the current period.Estimated selling price of relevant finished goods Inventories with provision for inventory write-down
less estimated selling expenses and relevant taxes made at the beginning of the period were sold in the
Goods on hand
and surcharges current period.
(3) Costs to fulfill a contract
Items Opening balance Increase Carried forward Closing balance
Township sewage delivery project phase II of
7208417.2480557.617288974.85
Hanshou County
Kitchen project of Shangrao Guangfeng
4533540.923811704.418345245.33
District
Well-point equipment sales of Leiyang City 1815112.42 1815112.42
Pretreatment equipment procurement project
1681363.401681363.40
of Duyun project
180Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Opening balance Increase Carried forward Closing balance
Leachate delivery project of Xi'an Chanba
1117852.4810803.301128655.78
Transfer Station
Power distribution project phase II of Shunde
4499626.024499626.02
District
Old equipment renewal project of provincial
environmental air automatic monitoring
3566624.873566624.87
stations under Sichuan Provincial Department
of Ecology and Environment
Xinning II Project of Hunan Province 1976576.49 1976576.49
Construction project of township air
automatic monitoring stations in Yangquan 1968007.73 1968007.73
City
Shimen II Project of Hunan Province 624844.57 1077161.26 1702005.83
Leachate project of Nantong Tianhong
1424274.901424274.90
Environmental Services
Leachate and integrated water-waste
174227.39885525.961059753.35
management project of Menghai County
Others 5980202.79 72397256.08 62282664.43 16094794.44
Subtotal 23135561.21 91698118.63 75253041.36 39580638.48
8. Contract assets
(1) Details
Closing balance Opening balance
Items
Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Quality guarantee 109251241.27 15133299.24 94117942.03 84519179.04 9715689.56 74803489.48
deposit receivable
109251241.2715133299.2494117942.0384519179.049715689.5674803489.48
Total
(2) Details on provision for impairment
Closing balance
Book balance Provision for impairment
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
On an individual basis 90969.10 0.08 90969.10 100.00
On a collective basis 109160272.17 99.92 15042330.14 13.78 94117942.03
Total 109251241.27 100.00 15133299.24 13.85 94117942.03
(Continued)
181Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Opening balance
Book balance Provision for impairment
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
On a collective basis 84519179.04 100.00 9715689.56 11.50 74803489.48
Total 84519179.04 100.00 9715689.56 11.50 74803489.48
3) Contract assets with provision for impairment made on a collective basis
Closing balance
Items Provision for Provision proportion
Book balance
impairment (%)
Portfolio grouped with
109160272.1715042330.1413.78
ages
Subtotal 109160272.17 15042330.14 13.78
(3) Changes in provision for impairment
Increase/Decrease
Opening
Items Closing balance
balance Recovery or Transfer-out/
Accrual Others
reversal Write-off
On an individual 90969.10 90969.10
basis
9715689.565326640.5815042330.14
On a collective basis
9715689.565417609.6815133299.24
Total
9. Non-current assets due within one year
Closing balance
Items
Unrecognized finance Provision for Discount rate range
Book balance Carrying amount
income bad debts (%)
Goods sold by installments 447835809.91 8495844.14 69314228.75 370025737.02 3.60-4.30
Finance lease payment 28609032.71 1429392.82 553141.68 26626498.21 3.60-4.30
Factoring of receivables
91339416.683119663.561387491.2586832261.873.60-4.30
financing
Total 567784259.30 13044900.52 71254861.68 483484497.10
(Continued)
Opening balance
Items
Unrecognized finance Provision for Discount rate range
Book balance Carrying amount
income bad debts (%)
182Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Goods sold by installments 328993341.47 6469240.60 15965200.41 306558900.46 4.20-4.30
Finance lease payment 46826104.16 2749700.41 1354452.95 42721950.80 4.20-4.30
Factoring of receivables
215722449.489685000.003235836.74202801612.744.20-4.30
financing
Total 591541895.11 18903941.01 20555490.10 552082464.00
10. Other current assets
(1) Details
Closing balance Opening balance
Items
Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Input VAT to be
591058310.42591058310.42513175804.36513175804.36
credited and excess
input VAT credits
Costs to obtain a 6409973.49 6409973.49 10704601.44 10704601.44
contract
597468283.91597468283.91523880405.80523880405.80
Total
(2) Costs to obtain a contract
Provision for
Items Opening balance Increase Amortization Closing balance
impairment
Costs to obtain a
10704601.4429487764.9633782392.916409973.49
contract
Subtotal 10704601.44 29487764.96 33782392.91 6409973.49
11. Long-term receivables
(1) Details
Closing balance
Items
Unrealized finance Provision for bad Discount rate
Book balance Carrying amount
income debts range (%)
Goods sold by installments 284404413.84 24302615.80 14518418.91 245583379.13 3.60-4.30
Guaranteed collection
27148165.141980892.631357408.2623809864.254.30-4.65
amount for BOT projects
Finance lease payment 27114735.40 1456539.74 605069.27 25053126.39 3.60-4.30
Factoring of receivables
355617452.5019385569.415374091.54330857791.553.60-4.30
financing
Total 694284766.88 47125617.58 21854987.98 625304161.32
(Continued)
Opening balance
Items
Book balance Unrealized finance Provision for bad Carrying Discount rate
183Infore Environment Technology Group Co. Ltd. 2024 Annual Report
income debts amount range (%)
Goods sold by
474463111.3028883881.3569637094.56375942135.394.20-4.30
installments
Guaranteed collection
32146788.993759737.261607339.4526779712.284.30-4.65
amount for BOT projects
Finance lease payment 21422534.54 1929467.83 486521.79 19006544.92 4.20-4.30
Factoring of receivables
1391000.0020865.001370135.004.20-4.30
financing
Total 529423434.83 34573086.44 71751820.80 423098527.59
(2) Provision for bad debts
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision
made on an individual basis
Receivables with provision
647159149.30100.0021854987.983.38625304161.32
made on a collective basis
Total 647159149.30 100.00 21854987.98 3.38 625304161.32
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision
1711994.500.351711994.50100.00
made on an individual basis
Receivables with provision
493138353.8999.6570039826.3014.20423098527.59
made on a collective basis
Total 494850348.39 100.00 71751820.80 14.50 423098527.59
2) No significant long-term receivables with provision for bad debts made on an individual basis.
3) Long-term receivables with provision for bad debts made on a collective basis
Items Closing balance
184Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Provision for bad Provision
Book balance
debts proportion (%)
Portfolio grouped with ages 311552578.98 15875827.17 5.10
Including: Payments undue 132100235.91 6605011.80 5.00
Payments due 179452343.07 9270815.37 5.17
Portfolio grouped with finance
27114735.40605069.272.23
lease payment
Portfolio grouped with receivables
355617452.505374091.541.51
financing factoring payment
Subtotal 694284766.88 21854987.98 3.15
(3) Changes in provision for bad debts
Increase/Decrease
Items Opening balance Closing balance
Recovery or
Accrual Write-off Others
reversal
Receivables with
1711994.501711994.50
provision made on an
individual basis
Receivables with
70039826.30-48184838.3221854987.98
provision made on a
collective basis
71751820.80-48184838.321711994.5021854987.98
Total
12. Long-term equity investments
(1) Categories
Closing balance Opening balance
Items
Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Investments 682287056.09 682287056.09 681629084.69 681629084.69
in associates
682287056.09682287056.09681629084.69681629084.69
Total
(2) Details
Increase/Decrease
Investment Adjustment in
Investees Opening balance
Investments Investments income other
increased decreased recognized under comprehensive
equity method income
Associates
Tengine Innovation (Beijing)
27809668.75-2456331.32
Monitoring Instrument Co. Ltd.
185Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Increase/Decrease
Investment Adjustment in
Investees Opening balance
Investments Investments income other
increased decreased recognized under comprehensive
equity method income
Guangdong Shunkong Environmental
243215652.0538775000.00
Investment Co. Ltd.Guangdong Tianshu New Energy
Technology Co. Ltd. [Note 1]
Shantou Zoomlion Ruikang
Environmental Sanitation Service 24506917.27 2165162.58
Co. Ltd.Shantou Chaoyang District
Zoomlion Ruikang Environmental 32067539.05 360081.50
Sanitation Service Co. Ltd.Changsha Cowa Zoomlion
4671509.074671509.07
Intelligent Technology Co. Ltd.Guangdong Liangke Environmental
32899120.781356900.38
Engineering Co. Ltd.Guangxi Zoomlion Guilv Urban
2622217.24598435.25
Environmental Service Co. Ltd.Shenzhen Yingmei City
28206.3432.15
Housekeeper Co. Ltd.Foshan Yingtong Electrical
201953927.82-27729746.82
Materials Co. Ltd.China Urban Institute (Beijing)
Environmental Technology Co. 101188300.57 3672302.78
Ltd.Beijing Xingyun Zhixing
8665589.98-379184.70
Technology Co. Ltd.Guangdong Yingling Testing
Technology Service Co. Ltd. [Note
2]
Taizhou Jinzhong Environmental
2000435.774209106.23
Industry Co. Ltd.Total 681629084.69 4671509.07 20571758.03
(Continued)
Increase/Decrease Closing balance
Investees Changes Cash dividend/ Provision
Provision for
in other Profit declared Others Carrying amount for
impairment
equity for distribution impairment
Associates
186Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Tengine Innovation (Beijing)
25353337.43
Monitoring Instrument Co. Ltd.Guangdong Shunkong
13667277.56268323374.49
Environmental Investment Co. Ltd.Guangdong Tianshu New Energy
Technology Co. Ltd. [Note 1]
Shantou Zoomlion Ruikang
Environmental Sanitation Service 26672079.85
Co. Ltd.Shantou Chaoyang District
Zoomlion Ruikang Environmental 32427620.55
Sanitation Service Co. Ltd.Changsha Cowa Zoomlion
Intelligent Technology Co. Ltd.Guangdong Liangke Environmental
34256021.16
Engineering Co. Ltd.Guangxi Zoomlion Guilv Urban
3220652.49
Environmental Service Co. Ltd.Shenzhen Yingmei City
28238.49
Housekeeper Co. Ltd.Foshan Yingtong Electrical
174224181.00
Materials Co. Ltd.China Urban Institute (Beijing)
1575000.00103285603.35
Environmental Technology Co. Ltd.Beijing Xingyun Zhixing
8286405.28
Technology Co. Ltd.Guangdong Yingling Testing
Technology Service Co. Ltd. [Note
2]
Taizhou Jinzhong Environmental
6209542.00
Industry Co. Ltd.Total 15242277.56 682287056.09
Note 1: Long-term equity investments of 0.00 yuan in Guangdong Tianshu New Energy Technology Co.Ltd. was due to its long-term loss. The carrying amount of such long-term equity investment was adjusted to
0.00 yuan by the Company under the equity method.
Note 2: Long-term equity investments of 0.00 yuan in Guangdong Yingling Testing Technology Service Co.Ltd. was due to its long-term loss. The carrying amount of such long-term equity investment was adjusted to
0.00 yuan by the Company under the equity method.
13. Other equity instrument investments
187Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Increase/Decrease
Gains or losses
Items Opening balance included into other
Investments Investments
comprehensive Others
increased decreased
income in the
current period
Zhejiang Shangyu Rural Commercial
800000.00
Bank Co. Ltd.Shenzhen Infore Environmental
Protection Industry Fund Management 270000.00
Co. Ltd.Shenzhen Infore Environmental
14282971.01-14070000.00
Protection Industry M&A Fund [Note]
Total 15352971.01 -14070000.00
(Continued)
Accumulated gains or losses
Dividend income
included into other
Items Closing balance recognized in the
comprehensive income at the end
current period
of the period
Zhejiang Shangyu Rural Commercial
800000.00432250.00
Bank Co. Ltd.Shenzhen Infore Environmental
Protection Industry Fund Management 270000.00
Co. Ltd.Shenzhen Infore Environmental
212971.01-18700000.00
Protection Industry M&A Fund [Note]
Total 1282971.01 432250.00 -18700000.00
Note: As of December 31 2024 Shenzhen Infore Environmental Protection Industry M&A Fund is still in
liquidation.
14. Investment property
(1) Details
Items Buildings and structures Total
Cost
Opening balance 1804955.43 1804955.43
Increase 662564.22 662564.22
1) Acquisition 662564.22 662564.22
Decrease 662564.22 662564.22
188Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Buildings and structures Total
1) Disposal 662564.22 662564.22
Closing balance 1804955.43 1804955.43
Accumulated depreciation and
amortization
Opening balance 666086.83 666086.83
Increase 85735.40 85735.40
1) Accrual or amortization 85735.40 85735.40
Decrease
Closing balance 751822.23 751822.23
Carrying amount
Closing carrying amount 1053133.20 1053133.20
Opening carrying amount 1138868.60 1138868.60
(2) Investment property with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Shangyu Wanda real estate 1053133.20 In processing
Subtotal 1053133.20
15. Fixed assets
(1) Details
Buildings and Transport
Items General equipment Special equipment Other equipment Total
structures facilities
Cost
Opening balance 1601668910.67 175881474.60 1436242670.58 59965293.93 37459730.25 3311218080.03
Increase 3017462.99 13653033.62 233203422.45 9282016.68 341071.94 259497007.68
1) Acquisition 4198660.94 180005636.71 9282016.68 341071.94 193827386.27
2) Transferred in from
3017462.999454372.6850504713.1062976548.77
construction in progress
3) Transferred in from
2693072.642693072.64
inventories
Decrease 167253.80 3797959.61 80530393.27 3126803.90 330825.30 87953235.88
1) Disposal/Scrapping 167253.80 2021759.70 80286771.98 2102915.94 330825.30 84909526.72
2) Disposal of
1776199.91243621.291023887.963043709.16
subsidiaries
189Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Buildings and Transport
Items General equipment Special equipment Other equipment Total
structures facilities
Closing balance 1604519119.86 185736548.61 1588915699.76 66120506.71 37469976.89 3482761851.83
Accumulated depreciation
Opening balance 276038235.20 83084198.21 576531948.13 19776609.96 17470964.39 972901955.89
Increase 60981188.10 21119368.75 214090604.45 5981799.09 1519195.33 303692155.72
1) Accrual 60981188.10 21119368.75 214090604.45 5981799.09 1519195.33 303692155.72
Decrease 155187.76 3193696.97 47325104.63 2795847.83 262564.19 53732401.38
1) Disposal/Scrapping 155187.76 1732651.46 47276973.22 1826721.76 262564.19 51254098.39
2) Disposal of
1461045.5148131.41969126.072478302.99
subsidiaries
Closing balance 336864235.54 101009869.99 743297447.95 22962561.22 18727595.53 1222861710.23
Carrying amount
Closing carrying amount 1267654884.32 84726678.62 845618251.81 43157945.49 18742381.36 2259900141.60
Opening carrying amount 1325630675.47 92797276.39 859710722.45 40188683.97 19988765.86 2338316124.14
(2) Fixed assets leased out under operating leases
Items Closing carrying amount
Buildings and structures 32330758.71
Special equipment 1026005.26
Subtotal 33356763.97
(3) Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Bottom renovation workshop in
20741643.13 In processing
Lueryuan
Lueryuan Exhibition Center 15234749.47 In processing
Staff canteen in Lueryuan 22267950.17 In processing
Subtotal 58244342.77
16. Construction in progress
(1) Details
190Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items
Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Infore Environment Shunde
Environmental Protection Technology 392643101.57 392643101.57 256519519.36 256519519.36
Industrial Park (Phase II) Project
Xiantao New Energy Power Battery
Dismantling Recycling and Resource 53895734.40 53895734.40 598521.30 598521.30
Utilization (Phase I) Project
Equipment to be installed 9599505.81 9599505.81 19134556.95 19134556.95
Piecemeal projects 4524337.94 4524337.94 11804421.28 11804421.28
Total 460662679.72 460662679.72 288057018.89 288057018.89
2) Changes in significant projects
Transferred to
Transferred to Other
Projects Budgets Opening balance Increase intangible Closing balance
fixed assets decreases
assets
Infore Environment
Shunde Environmental
Protection Technology 483333200.00 256519519.36 136123582.21 392643101.57
Industrial Park (Phase II)
Project
Xiantao New Energy
Power Battery
Dismantling Recycling 69000000.00 598521.30 53297213.10 53895734.40
and Resource Utilization
(Phase I) Project
Total 257118040.66 189420795.31 446538835.97
(Continued)
Completion
Accumulated Accumulated amount of Amount of borrowing Annual
percentage
Projects input to budget borrowing cost cost capitalization in capitalization Source of funds
(%) capitalization the current period rate (%)
(%)
Infore Environment Shunde Self-raised
Environmental Protection Technology 81.24 81.24 10802904.78 8086904.78 3.35 long-term
Industrial Park (Phase II) Project borrowings
Xiantao New Energy Power Battery Self-raised
Dismantling Recycling and Resource 78.11 78.11 148800.00 148800.00 3.18 long-term
Utilization (Phase I) Project borrowings
Total 10951704.78 8235704.78
17. Right-of-use assets
Items Buildings and structures Total
Cost
Opening balance 39902430.79 39902430.79
191Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Buildings and structures Total
Increase
Decrease
Closing balance 39902430.79 39902430.79
Accumulated depreciation
Opening balance 14776758.84 14776758.84
Increase 8669628.35 8669628.35
1) Accrual 8669628.35 8669628.35
Decrease
Closing balance 23446387.19 23446387.19
Carrying amount
Closing carrying amount 16456043.60 16456043.60
Opening carrying amount 25125671.95 25125671.95
18. Intangible assets
(1) Details
Items Land use right Software Franchise Patented technology Total
Cost
Opening balance 664718247.37 85310078.32 7073103398.41 488760167.48 8311891891.58
Increase 29334400.00 8084335.46 464271293.91 387958.60 502077987.97
1) Acquisition 29334400.00 5391216.13 464271293.91 387958.60 499384868.64
2) Transferred in from
2693119.332693119.33
construction in progress
Decrease 340326.43 912446988.49 912787314.92
1) Disposal 340326.43 97963798.88 98304125.31
2) Disposal of subsidiaries 814483189.61 814483189.61
Closing balance 694052647.37 93054087.35 6624927703.83 489148126.08 7901182564.63
Accumulated amortization
Opening balance 98773281.98 31524424.05 1844722034.29 307650223.83 2282669964.15
Increase 14206101.06 10122109.55 445373373.71 31805489.15 501507073.47
1) Accrual 14206101.06 10122109.55 445373373.71 31805489.15 501507073.47
Decrease 222249.71 588031427.13 588253676.84
192Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Land use right Software Franchise Patented technology Total
1) Disposal 222249.71 72160535.91 72382785.62
2) Disposal of subsidiaries 515870891.22 515870891.22
Closing balance 112979383.04 41424283.89 1702063980.87 339455712.98 2195923360.78
Provision for impairment
Opening balance 24687522.85 20185580.19 44873103.04
Increase
Decrease
Closing balance 24687522.85 20185580.19 44873103.04
Carrying amount
Closing carrying amount 581073264.33 51629803.46 4898176200.11 129506832.91 5660386100.81
Opening carrying amount 565944965.39 53785654.27 5203693841.27 160924363.46 5984348824.39
(2) All land use rights with certificates of title were settled at the balance sheet date.
19. Development expenditures
(1) Details
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Development
9063080.609063080.60
expenditures
Total 9063080.60 9063080.60
(2) Other remarks
Please refer to section VI of notes to the financial statements for details on development expenditures.
20. Goodwill
(1) Details
Closing balance Opening balance
Investees or events
resulting in goodwill Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Zoomlion
Environmental 5714428315.99 620675633.32 5093752682.67 5714428315.99 618097980.83 5096330335.16
Company
Shenzhen Green
65456185.1265456185.1265456185.1265456185.12
Oriental Environmental
Protection Co. Ltd.(the
193Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Investees or events
resulting in goodwill Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment“Green OrientalCompany”)
Foshan Shunhe
Environmental 329083984.91 3152463.61 325931521.30
Protection Co. Ltd.Shangfeng Industrial
100455813.40100455813.40100455813.40100455813.40
Company
Yolsh Company 13389232.61 13389232.61 13389232.61 13389232.61
Lianjiang Company 46032017.84 3445945.99 42586071.85 46032017.84 2229729.76 43802288.08
Total 5939761564.96 624121579.31 5315639985.65 6268845549.87 623480174.20 5645365375.67
(2) Cost
Investees or events resulting
Opening balance Increase Decrease [Note] Closing balance
in goodwill
Zoomlion Environmental
5714428315.995714428315.99
Company
Green Oriental Company 65456185.12 65456185.12
Foshan Shunhe Environmental
329083984.91329083984.91
Protection Co. Ltd.Shangfeng Industrial Company 100455813.40 100455813.40
Yolsh Company 13389232.61 13389232.61
Lianjiang Company 46032017.84 46032017.84
Total 6268845549.87 329083984.91 5939761564.96
Note: Current decrease was mainly due to the Company's disposal of its subsidiary Foshan Shunhe Environmental
Protection Co. Ltd. on February 1 2024.
(3) Provision for impairment
Investees or events
Opening balance Increase Decrease Closing balance
resulting in goodwill
Zoomlion Environmental
618097980.832577652.49620675633.32
Company [Note 1]
Lianjiang Company [Note 2] 2229729.76 1216216.23 3445945.99
Foshan Shunhe
Environmental Protection 3152463.61 3152463.61
Co. Ltd. [Note 3]
Total 623480174.20 3793868.72 3152463.61 624121579.31
194Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Note 1: For current increase in the provision for impairment of goodwill of Zoomlion Environmental Company
as the goodwill of 92031026.04 yuan was recognized at the time of the acquisition of Zoomlion Environmental
Company through deferred tax liabilities arising from appraisal appreciation at the date of business combination not
under common control provision for impairment of goodwill of 2577652.49 yuan was made along with changes
in deferred tax liabilities in the current period. The accumulated provision for impairment of goodwill arising from
this factor totaled 59335142.64 yuan. As the recoverable amount of the equipment asset group portfolio of
Zoomlion Environmental Company exceeded its carrying amount in the current period no impairment loss on
goodwill was recognized for this factor and the accumulated provision for impairment of goodwill arising from this
factor totaled 561340490.68 yuan.Note 2: For impairment of goodwill of Lianjiang Company as the goodwill of 30000000.00 yuan was
recognized at the time of the acquisition of Lianjiang Company through deferred tax liabilities due to appraisal
appreciation at the date of business combination not under common control provision for impairment of
1216216.23 yuan was made along with changes in deferred tax liabilities in the current period. The accumulated
provision for impairment of goodwill arising from this factor totaled 3445945.99 yuan.Note 3: Current decrease in the provision for impairment of goodwill was mainly due to the Company's disposal
of its subsidiary Foshan Shunhe Environmental Protection Co. Ltd. on February 1 2024.
(4) Related information of asset groups or asset group portfolios which include goodwill
Related information of asset groups or asset group portfolios
Whether asset groups or
asset group portfolios are
Asset groups or
Composition of asset groups or asset consistent with those at
asset group Operating segment and its basis
group portfolios and its basis acquisition date/at goodwill
portfolios
impairment testing date in
previous years
Operating long-term assets of 11
11 entities including Zoomlion
entities including Zoomlion
Environmental Company
Environmental Company
(manufacturing and sales of
(manufacturing and sales of sanitation
Sanitation vehicles sanitation vehicles and equipment)
vehicles and equipment) Changsha
and equipment Changsha Zhongbiao Environmental
Zhongbiao Environmental Industry Yes
manufacturing and Industry Co. Ltd. Fengyun IoT
Co. Ltd. Fengyun IoT Technology
sales asset group Technology Co. Ltd. Ningbo Infore
Co. Ltd. Ningbo Infore Trading Co.Trading Co. Ltd. and Infore
Ltd. and Infore Environment
Environment Intelligent Sanitation
Intelligent Sanitation Equipment
Equipment (Thailand) Co. Ltd.(Thailand) Co. Ltd.Operating long-term assets of
Zoomlion Environmental Company
Zoomlion Environmental Company
(sanitation integrated operation)
Urban-rural (sanitation integrated operation)
Green Oriental Company Huaian
sanitation integrated Green Oriental Company Huaian
Chenjie Environmental Engineering Yes [Note]
operation asset group Chenjie Environmental Engineering
Co. Ltd. Biyang County Fenghe
portfolio Co. Ltd. Biyang County Fenghe New
New Energy Power Co. Ltd. and
Energy Power Co. Ltd. and Lianjiang
Lianjiang Company
Company
195Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Whether asset groups or
asset group portfolios are
Asset groups or
Composition of asset groups or asset consistent with those at
asset group Operating segment and its basis
group portfolios and its basis acquisition date/at goodwill
portfolios
impairment testing date in
previous years
Ventilation
equipment Operating long-term assets of
Shangfeng Industrial Company Yes
manufacturing and Shangfeng Industrial Company
sales asset group
Electrical equipment
Operating long-term assets of Yolsh
manufacturing and Yolsh Company Yes
Company
sales asset group
Note: In December 2018 Zoomlion Environmental Company which was acquired under business
combination under common control by the Company had two asset groups i.e. sanitation vehicles and
equipment manufacturing and sales asset group and urban-rural sanitation integrated operation asset group
(including waste transfer landfill and treatment). Data of original goodwill at the formation of Zoomlion
Environmental Company was based on the fair value of the identifiable net assets as at the end of June 2017
under asset-based method in the appraisal report numbered Zhong Rui Ping Bao Zi [2017] 110731042 without
considering the synergy between the urban-rural sanitation integrated operation asset group of Zoomlion
Environmental Company and the waste incineration power generation operation asset group of former Green
Oriental Company. After the business combination of Zoomlion Environmental Company as its urban-rural
sanitation integrated operation asset group and the waste incineration power generation operation asset group
of Green Oriental Company were similar in terms of business acquisition production and operation activities
and cash return realization methods and the Management had started to carry out integrated management
these two asset groups were identified as the urban-rural sanitation integrated operation asset group portfolio.The Company acquired Lianjiang Company through business combination not under common control in
February 2022. After the business combination of Lianjiang Company as its asset group and urban-rural
sanitation integrated operation asset group and the waste incineration power generation operation asset group
of the Company were similar in terms of business acquisition production and operation activities and cash
return realization methods and the Management had carried out integrated management the asset group of
Lianjiang Company was identified as the urban-rural sanitation integrated operation asset group portfolio.As the Company disposed of Funan Company on February 1 2024 Funan Company was removed from
the disposed urban-rural sanitation integrated operation asset group portfolio.
(5) Specific method for determining recoverable amount
Recoverable amount determined based on the present value of estimated future cash flows
196Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Carrying amount of asset groups or
Recoverable amount [Note Provision for
Items asset group portfolios which include
2] impairment
goodwill [Note 1]
Sanitation vehicles and equipment
manufacturing and sales asset 11182390702.76 11602810000.00
group
Urban-rural sanitation integrated
4471406833.925031650000.00
operation asset group portfolio
Ventilation equipment
manufacturing and sales asset 274961014.07 313200000.00
group
Electrical equipment
manufacturing and sales asset 68185540.56 80730000.00
group
Subtotal 15996944091.31 17028390000.00
Note 1: The goodwill of the asset group portfolio has included the portion attributable to non-controlling
shareholders.Note 2: The present value of estimated future cash flows (recoverable amount) of sanitation vehicles and
equipment manufacturing and sales asset group was based on the appraisal report numbered Zhong Rui Ping
Bao Zi [2025] 500680 issued by Chungrui Worldunion Assets Appraisal Group Co. Ltd.The present value of estimated future cash flows (recoverable amount) of urban-rural sanitation integrated
operation asset group portfolio was based on the appraisal report numbered Zhong Rui Ping Bao Zi [2025]
500678 issued by Chungrui Worldunion Assets Appraisal Group Co. Ltd. and the appraisal report numbered
Jun Rui Ping Bao Zi [2025] 061 issued by Shenzhen Junrui Assets Appraisals LLP.
(Continued)
Parameters including
Parameters including revenue
Forecast revenue growth rate and Discount rate and
growth rate and gross margin
Items period gross margin for forecast its determination
for stable period and their
(years) period and their basis [Note 4]
determination basis
determination basis
Sanitation vehicles and
equipment manufacturing 5 [Note 1] The revenue growth rate is 0 9.53%
and sales asset group
Urban-rural sanitation
integrated operation asset [Note 1] [Note 1] [Note 1] 7.78%-10.08%
group portfolio
Ventilation equipment
manufacturing and sales asset 5 [Note 2] The revenue growth rate is 0 11.89%
group
Electrical equipment 5 [Note 3] The revenue growth rate is 0 13.92%
manufacturing and sales asset
197Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Parameters including
Parameters including revenue
Forecast revenue growth rate and Discount rate and
growth rate and gross margin
Items period gross margin for forecast its determination
for stable period and their
(years) period and their basis [Note 4]
determination basis
determination basis
group
Note 1: The recoverable amount of asset groups and asset group portfolios is estimated based on the
business characteristics of different asset groups or asset group portfolios according to the budget approved by
the Management. The revenue growth rate of the product production and sales asset group in 2025 is based on
the existing orders historical data and operating budget while the expense rate is based on the average expense
rate of the previous three years in combination with the reasonable income growth capital depreciation and
labor cost growth in the future; for operation asset groups or asset group portfolios which include multiple
concurrent projects with varying revenue profit rates and operating periods resulting in an irregular
distribution of the expected growth rate stable period growth rate and profit rate of the asset groups and asset
group portfolios when multiple projects are run in parallel and the income costs and expenses are estimated
based on the time to mature operation and design capacity of each specific project.Note 2: The revenue growth rate of ventilation equipment manufacturing and sales asset group during the
forecast period from 2025 to 2029 is 3.28% 3.17% 3.07% 1.95% and 1.91% respectively which are
determined based on the Company's historical annual operating performance growth rates existing orders
and the Management's expectations and forecasts for market development.Note 3: The revenue growth rate of electrical equipment manufacturing and sales asset group during the
forecast period from 2025 to 2029 is 79.78% 52.70% 42.20% 38.50% and 35.50% respectively which are
determined based on the Company's historical annual operating performance growth rates existing orders
and the Management's expectations and forecasts for market development.Note 4: Discount rate: determined based on weighted average cost of capital (WACC) cost of equity
capital and cost of liabilities.
21. Long-term prepayments
Other
Items Opening balance Increase Amortization Closing balance
decreases
Expenditures on
improvement of leased-in 23607681.15 6731098.17 8269312.72 22069466.60
fixed assets
Others 7523116.34 7743937.39 4785850.75 91300.36 10389902.62
Total 31130797.49 14475035.56 13055163.47 91300.36 32459369.22
22. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
198Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items Deductible Deductible Deferred tax
temporary temporary Deferred tax assets
assets
difference difference
Provision for
749632120.63114522455.34697808362.88107271372.72
impairment of assets
Unrealized profit from
21039511.363155926.7020475833.053071374.96
internal transactions
Deductible losses 77488185.09 16409996.88 47114527.25 8894435.03
Lease liabilities 21892910.99 3344937.55 26136462.82 4103472.14
Total 870052728.07 137433316.47 791535186.00 123340654.85
(2) Deferred tax liabilities before offset
Closing balance Opening balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Accelerated depreciation
48454673.3510671145.8726637066.564698936.18
of fixed assets
Assets appraisal
appreciation due to
business combination 245062312.00 41667270.65 267111526.85 45461139.37
not under common
control
Right-of-use assets 16456043.60 2529407.44 25125671.95 3951853.51
Total 309973028.95 54867823.96 318874265.36 54111929.06
(3) Deferred tax assets or liabilities after offset
Closing balance Opening balance
Deferred tax
Items Deferred tax Deferred tax assets Deferred tax assets offset by
assets/liabilities offset by deferred assets/liabilities
deferred tax
after offset tax liabilities after offset
liabilities
Deferred tax assets 9453464.44 127979852.03 6892349.21 116448305.64
Deferred tax liabilities 9453464.44 45414359.52 6892349.21 47219579.85
(4) Details of unrecognized deferred tax assets
199Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Closing balance Opening balance
Deductible temporary difference 1113242396.91 825763726.98
Deductible losses 926437145.29 749514337.17
Unrealized profit from internal transactions 359675062.25 364794037.67
Total 2399354604.45 1940072101.82
(5) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2024 86322391.77
Year 2025 147216122.42 187721684.90
Year 2026 82144535.23 94150648.91
Year 2027 102646185.14 175149966.49
Year 2028 179079090.77 206169645.10
Year 2029 415351211.73
Total 926437145.29 749514337.17
23. Other non-current assets
(1) Details
Closing balance Opening balance
Items
Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Assets to be disposal of 200218595.42 200218595.42 227240727.12 227240727.12
Contract assets – Quality
guarantee deposit 159404912.28 19779021.81 139625890.47 164081168.47 21618229.88 142462938.59
receivable
Advances for long-term
14871583.5614871583.5655114043.3755114043.37
assets
Costs to obtain a contract 58648666.24 58648666.24 63666470.76 63666470.76
Receivables for agent
8518174.258518174.25
construction
Total 433143757.50 19779021.81 413364735.69 518620583.97 30136404.13 488484179.84
(2) Contract assets
200Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items
Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Quality guarantee
159404912.2819779021.81139625890.47164081168.4721618229.88142462938.59
deposit receivable
Subtotal 159404912.28 19779021.81 139625890.47 164081168.47 21618229.88 142462938.59
2) Details on provision for impairment
a. Details on categories
Closing balance
Book balance Provision for impairment
Categories
Provision Carrying amount
% to
Amount Amount proportion
total
(%)
On an individual basis 417980.12 0.26 417980.12 100.00
On a collective basis 158986932.16 99.74 19361041.69 12.18 139625890.47
Total 159404912.28 100.00 19779021.81 12.41 139625890.47
(Continued)
Opening balance
Book balance Provision for impairment
Categories
Carrying
Provision
amount
Amount % to total Amount proportion
(%)
On an individual basis
On a collective basis 164081168.47 100.00 21618229.88 13.18 142462938.59
Total 164081168.47 100.00 21618229.88 13.18 142462938.59
b. Contract assets with provision for impairment made on a collective basis
Closing balance
Items
Book balance Provision for impairment Provision proportion (%)
Portfolio grouped with
158986932.1619361041.6912.18
ages
Subtotal 158986932.16 19361041.69 12.18
3) Changes in provision for impairment
201Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Increase/Decrease
Items Opening balance Closing balance
Recovery or Transfer-out/
Accrual Others
reversal Write-off
On an individual basis 417980.12 417980.12
On a collective basis 21618229.88 -2257188.19 19361041.69
Total 21618229.88 -1839208.07 19779021.81
(3) Costs to obtain a contract
Provision for
Items Opening balance Increase Amortization Closing balance
impairment
Costs to obtain a
63666470.7653925740.2558943544.7758648666.24
contract
Subtotal 63666470.76 53925740.25 58943544.77 58648666.24
24. Assets with title or use right restrictions
(1) Details on assets with restrictions at the balance sheet date
Closing carrying Type of Reasons for
Items Closing book balance
amount restrictions restrictions
Deposits escrow
Guaranteed
Cash and bank balances 427777886.01 427777886.01 account frozen due to
frozen etc.litigation preservation
Notes receivable – Trade Endorsed or Endorsed or discounted
1734101.451290912.03
acceptance discounted but undue
Accounts receivable 440028528.05 417447902.95 Pledged Pledged
Recourse
Long-term receivables and non- Recourse factoring
1047731.00 959813.58 factoring
current assets due within one year pledged
pledged
Intangible assets 69926700.00 66896543.00 Mortgaged Mortgaged
100% of equity of Biyang County
Fenghe New Energy Power Co. 106118119.06 106118119.06 Pledged
Ltd.
100% of equity of Poyang Green
Pledged [Note]
Oriental Renewable Energy Co. 73614538.73 73614538.73 Pledged
Ltd.
75% of equity of Lianjiang Green
120095125.17 120095125.17 Pledged
Oriental New Energy Co. Ltd.Total 1240342729.47 1214200840.53
Note: The pledged amount refers to the Company's proportionate share of net assets in these entities.
202Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(2) Details on assets with restrictions at the beginning of the period
Opening carrying Type of Reasons for
Items Opening book balance
amount restrictions restrictions
Security deposits
Guaranteed escrow account frozen
Cash and bank balances 495231329.24 495231329.24
frozen etc. due to litigation
preservation
Notes receivable – Bank Endorsed or Endorsed or discounted
4472210.784472210.78
acceptance discounted but undue
Notes receivable – Trade Endorsed or Endorsed or discounted
407749.04349861.59
acceptance discounted but undue
Accounts receivable 357237223.82 338232491.18 Pledged Pledged
Receivables financing 55280364.20 55280364.20 Pledged Pledged
Long-term receivables and non- Recourse Recourse factoring
66695425.0061841516.63
current assets due within one year factoring pledged
Fixed assets 72439458.40 27881359.42 Mortgaged Mortgaged
Intangible assets 84779751.51 77778795.88 Mortgaged Mortgaged
100% of equity of Biyang County
Fenghe New Energy Power Co. 105047950.25 105047950.25 Pledged
Ltd.
100% of equity of Funan Green
Oriental Environmental 78720044.41 78720044.41 Pledged
Protection Co. Ltd.Pledged [Note]
100% of equity of Poyang Green
Oriental Renewable Energy Co. 76768690.77 76768690.77 Pledged
Ltd.
75% of equity of Lianjiang Green
112692107.66 112692107.66 Pledged
Oriental New Energy Co. Ltd.
25% of equity of Lianjiang Green Frozen due to
37564035.89 37564035.89 Frozen
Oriental New Energy Co. Ltd. litigation preservation
Total 1547336340.97 1471860757.90
Note: The pledged amount refers to the Company's proportionate share of net assets in these entities.
25. Short-term borrowings
Items Closing balance Opening balance
Guaranteed borrowings 94979664.72 66077658.34
Pledged borrowings 9807159.38 29830000.00
203Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Closing balance Opening balance
Mortgaged borrowings 18018500.00
Credit borrowings 3903916.78 8006821.92
Pledged and guaranteed borrowings 5006875.00 5006875.00
Total 113697615.88 126939855.26
26. Notes payable
Items Closing balance Opening balance
Trade acceptance 39834082.33 58782211.43
Bank acceptance 1942688270.12 2235494340.03
Total 1982522352.45 2294276551.46
27. Accounts payable
(1) Details
Items Closing balance Opening balance
Payments for goods 3370627251.09 2580677947.96
Payments for engineering and equipment 275421830.10 240704266.86
Others 26450257.10 97161489.64
Total 3672499338.29 2918543704.46
(2) No material closing balance with age over one year.
28. Contract liabilities
(1) Details
Items Closing balance Opening balance
Payments for goods received in advance 226592307.86 290854742.72
Rebate for customers 13268364.17 15922430.85
Total 239860672.03 306777173.57
(2) No material closing balance with age over one year.
204Infore Environment Technology Group Co. Ltd. 2024 Annual Report
29. Employee benefits payable
(1) Details
Items Opening balance Increase Decrease Closing balance
Short-term
employee 487271995.49 2714344778.71 2618701890.69 582914883.51
benefits
Post-
employment
benefits -
2632920.50142595914.46143882992.061345842.90
defined
contribution
plan
Termination
995923.9926615613.7925429340.182182197.60
benefits
Total 490900839.98 2883556306.96 2788014222.93 586442924.01
(2) Details of short-term employee benefits
Opening Closing
Items Increase Decrease
balance balance
Wage bonus allowance and
471358528.622549234077.162451938653.17568653952.61
subsidy
Employee welfare fund 1639839.39 51919734.63 52140110.53 1419463.49
Social insurance premium 947570.31 70119935.65 70295265.08 772240.88
Including: Medicare premium 861424.87 61576164.11 61712494.73 725094.25
Occupational injuries
86145.448543771.548582770.3547146.63
premium
Housing provident fund 1632935.07 37103324.22 36937549.22 1798710.07
Trade union fund and employee
11693122.105967707.057390312.6910270516.46
education fund
Subtotal 487271995.49 2714344778.71 2618701890.69 582914883.51
(3) Details of defined contribution plan
Items Opening balance Increase Decrease Closing balance
Basic endowment
2550907.40137734846.61139001451.291284302.72
insurance premium
205Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Opening balance Increase Decrease Closing balance
Unemployment
82013.104861067.854881540.7761540.18
insurance premium
Subtotal 2632920.50 142595914.46 143882992.06 1345842.90
30. Taxes and rates payable
Items Closing balance Opening balance
VAT 128140253.73 86581679.18
Enterprise income tax 81407710.07 27900731.55
Individual income tax withheld for tax authorities 5179247.03 4803397.21
Urban maintenance and construction tax 1046557.99 506023.66
Housing property tax 1308651.99 1191074.92
Land use tax 1131184.98 1168188.55
Stamp duty 1402540.97 1433178.29
Education surcharge 444401.41 252330.39
Local education surcharge 294627.34 135999.15
Others 3045.95 59328.23
Total 220358221.46 124031931.13
31. Other payables
(1) Details
Items Closing balance Opening balance
Dividend payable 536634.94
Other payables 736186434.46 709941824.77
Total 736723069.40 709941824.77
(2) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 536634.94
Subtotal 536634.94
206Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(3) Other payables
1) Details
Items Closing balance Opening balance
Recourse factoring of accounts receivable [Note] 82837731.00 22660825.00
Temporary receipts payable 324686486.30 354511622.56
Security deposits 130234447.82 165161284.82
Others 198427769.34 167608092.39
Subtotal 736186434.46 709941824.77
Note: The balance refers to the recourse factoring of accounts receivable made by Zoomlion Environmental
Company to the non-bank financial institutions. However as non-bank financial institutions have the right to
request Zoomlion Environmental Company to repurchase the accounts receivable if they are overdue the
accounts receivable shall not be derecognized and the receipts of factoring shall be recognized as other
payables.
2) No material closing balance with age over one year.
32. Non-current liabilities due within one year
Items Closing balance Opening balance
Long-term borrowings due within one year 193724340.76 387310047.45
Lease liabilities due within one year 8310036.06 8613396.84
Long-term payables due within one year 9104000.00 9104000.00
Total 211138376.82 405027444.29
33. Other current liabilities
Items Closing balance Opening balance
Output VAT to be recognized 28803209.66 36931126.97
Total 28803209.66 36931126.97
34. Long-term borrowings
Items Closing balance Opening balance
Pledged borrowings 150712074.55 200179577.30
Mortgaged borrowings 290530000.00 154000000.00
Guaranteed borrowings 262950450.00 47300000.00
Credit borrowings 82600000.00 90650000.00
207Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Closing balance Opening balance
Pledged and guaranteed borrowings 1200444317.88 1392227274.43
Total 1987236842.43 1884356851.73
35. Bonds payable
(1) Details
Items Closing balance Opening balance
Convertible bonds 1404699758.75 1360603802.12
Total 1404699758.75 1360603802.12
(2) Current period movements (not including other financial instruments such as preferred shares/perpetual bonds
classified as financial liabilities)
Coupon rate Amount Whether
Bonds Par value Issuing date Maturity
(%) outstanding default
Infore convertible November 4
100 [Note] 6 years 1476189600.00 No
bonds 2020
Subtotal 100 1476189600.00
(Continued)
Funds
returned
Current due to Current
Premium/ Current Converte
Opening period Par value conversio period
Bonds Discount period d to Closing balance
balance issuanc interest n of redemptio
amortization repayment shares
e bonds n
into
shares
Infore
1360603802.122854024.743388452.322141822.51404699758.7
convertibl 3739.36 8.56 950.03
29345
e bonds
1360603802.122854024.743388452.322141822.51404699758.7
Subtotal 3739.36 8.56 950.03
29345
Note: The coupon rate is 0.20% in the first year 0.50% in the second year 0.80% in the third year 1.50%
in the fourth year 1.80% in the fifth year and 2.00% in the sixth year.
(3) Converting conditions time accounting treatment and judgement basis of convertible bondsUnder the “Approval of the Public Offering of Convertible Bonds by Infore Environment TechnologyGroup Co. Ltd.” issued by China Securities Regulatory Commission (Zheng Jian Xu Ke [2020] 2219) dated
September 10 2020 on November 4 2020 the Company issued publicly convertible bonds of 1476189600
yuan with a total issuance of 14761896 pieces and a term of 6 years. The coupon rate of the convertible
bonds issued this time is 0.20% in the first year 0.50% in the second year 0.80% in the third year 1.50% in
the fourth year 1.80% in the fifth year and 2.00% in the sixth year. Interest of the convertible corporate bonds
208Infore Environment Technology Group Co. Ltd. 2024 Annual Report
is paid once a year and principal and the last year's interest are paid at maturity. The Company will redeem all
convertible bonds not converted by investors at the 110% of the par value (including the last year's interest)
within 5 trading days upon maturity of the convertible bonds issued this time.The duration of the convertible bonds issued this time is 6 years from the date of issuance that is from
November 4 2020 to November 3 2026. The initial conversion price of the convertible bonds issued this time
is 8.31 yuan/share; the conversion period of the convertible bonds issued this time starts from the first trading
day (May 10 2021) after the expiration of six months from the end date of the issuance on November 10 2020
to the maturity date of the convertible bonds (November 3 2026).In the current period a total of 40 Infore convertible bonds had been converted to the Company's ordinary A
shares with a total of 504 shares converted. Capital reserve (share premium) of 3958.68 yuan was recognized at
the difference between the carrying amount of the convertible bonds actually converted and other equity instruments
and share capital increased due to actual conversion of bonds into shares. The Company redeemed 10 Infore
convertible bonds in the current period and capital reserve (share premium) of 150.56 yuan was recognized at the
difference between the carrying amount of the convertible bonds and other equity instruments redeemed and their
fair value on the redemption date.
36. Lease liabilities
Items Closing balance Opening balance
Unpaid lease payments 8192889.91 17036813.59
Less: Unrecognized financing expenses 362019.75 866022.83
Total 7830870.16 16170790.76
37. Long-term payables
(1) Details
Items Closing balance Opening balance
Long-term payables 7087999.95 15173333.32
Special payables 24600000.00 287776139.63
Total 31687999.95 302949472.95
(2) Long-term payables
Items Closing balance Opening balance
Factoring funds payable 7087999.95 15173333.32
Subtotal 7087999.95 15173333.32
(3) Special payables
209Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Reasons for
Items Opening balance Increase Decrease Closing balance
balance
Funds from
Special funds for conversion of
3000000.003000000.00
treasury bond projects treasury bonds
into loans
Special
Special funds for Jiayu
government
Sewage Treatment 158287779.83 158287779.83
funds for PPP
Project
projects
Special
Special funds for
government
Tongshan Sewage 126488359.80 126488359.80
funds for PPP
Treatment Project
projects
Special funds for
Special treasury
Hubei Fenghui Battery 21600000.00 21600000.00
bond funds
Dismantling Project
Subtotal 287776139.63 21600000.00 284776139.63 24600000.00
38. Provisions
Items Closing balance Opening balance Reasons for balance
Guarantee for buyer's
Credit guarantees 1049769.45 1994511.41
credit
Total 1049769.45 1994511.41
39. Deferred income
Items Opening balance Increase Decrease Closing balance Reasons for balance
Government Government grants
115340494.42301312660.3830400500.60386252654.20
grants related to assets
Total 115340494.42 301312660.38 30400500.60 386252654.20
40. Other non-current liabilities
Items Closing balance Opening balance
Central special construction funds 8148148.14 8148148.14
Total 8148148.14 8148148.14
41. Share capital
(1) Details
210Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Movements
Items Opening balance Issue of Conversion Closing balance
Bonus
new of reserve Others Subtotal
shares
shares to shares
Total shares 3179506670.00 504.00 -12565382.00 -12564878.00 3166941792.00
(2) Other remarks
1) The Company converted convertible corporate bonds with par value of 4000 yuan into the Company's ordinary
A shares of 504 shares with capital premium (share premium) recognized at 3958.68 yuan.
2) The Company canceled treasury shares of 12565382 shares from the unused portion in the special securities
account for repurchase with capital premium (share premium) decreased by 81567413.17 yuan.
42. Other equity instruments
(1) Please refer to section V (I) 35 of notes to financial statements for basic information of convertible
corporate bonds outstanding at the balance sheet date.
(2) Current period movements of financial instruments such as preferred shares or perpetual bonds outstanding at
the balance sheet date
Opening balance Increase Decrease Closing balance
Items
Carrying Carrying Carrying
Quantity Carrying amount Quantity Quantity Quantity
amount amount amount
Convertible
14760507266914714.3350904.1514760457266913810.18
bonds
Total 14760507 266914714.33 50 904.15 14760457 266913810.18
Note: In the current period convertible corporate bonds with par value of 5000 yuan had been converted and
redeemed with other equity instruments decreased by 904.15 yuan accordingly.
43. Capital reserve
(1) Details
Items Opening balance Increase Decrease Closing balance
Share/capital premium 9603497791.03 4109.24 104165502.31 9499336397.96
Other capital reserve 57900930.24 57900930.24
Total 9661398721.27 4109.24 104165502.31 9557237328.20
(2) Other remarks
1) Current increase of capital premium (share premium) of 4109.24 yuan was due to the conversion and
redemption of convertible corporate bonds issued by the Company with the corresponding premium recognized
211Infore Environment Technology Group Co. Ltd. 2024 Annual Report
as capital reserve in accordance with the CASBEs. Please refer to section V (I) 35 and V (I) 42 of notes to the
financial statements for details.
2) Current decrease of capital premium (share premium) was mainly due to:
a. the difference of 22598089.14 yuan between the consideration for acquisition of 30% of equity of the
subsidiary Green Oriental Company in February 2024 and the proportionate share in net assets of Green Oriental
Company continuously calculated from the acquisition date or combination date;
b. the difference of 81567413.17 yuan between the repurchase price and share capital of 12565382 shares from
the unused portion in the special securities account for repurchase which were canceled based on the resolution of
the shareholders' meeting in May 2024.
44. Treasury shares
(1) Details
Items Opening balance Increase Decrease Closing balance
Treasury shares 94132795.17 94132795.17
Total 94132795.17 94132795.17
(2) Other remarks
Please refer to section V (I) 43 of notes to the financial statements for changes in treasury shares during the
current period.
45. Other comprehensive income
Current period cumulative
Other comprehensive income after tax Less: OCI
previously
Less: OCI recognized but
Opening previously transferred to
Items Closing balance
balance Current period recognized Attributable to retained earnings
Less:
cumulative but Attributable to non- in the current
Income tax
before income transferred to parent company controlling period
expenses
tax profit or loss shareholders (attributable to
in the current parent company
period after tax)
Items not to be
reclassified - - - -
subsequently to profit 4630000.00 14070000.00 14070000.00 18700000.00
or loss
Including: Changes in
fair value of
----
other equity
4630000.0014070000.0014070000.0018700000.00
instrument
investments
Items to be
954265.16954265.16954265.16
reclassified
subsequently to profit
212Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period cumulative
Other comprehensive income after tax Less: OCI
previously
Less: OCI recognized but
Opening previously transferred to
Items Closing balance
balance Current period recognized Attributable to retained earnings
Less:
cumulative but Attributable to non- in the current
Income tax
before income transferred to parent company controlling period
expenses
tax profit or loss shareholders (attributable to
in the current parent company
period after tax)
or loss
Including: Translation
954265.16954265.16954265.16
reserves
----
Total
4630000.0013115734.8413115734.8417745734.84
46. Special reserve
Items Opening balance Increase Decrease Closing balance
Work safety fund 8763770.25 8763770.25
Total 8763770.25 8763770.25
47. Surplus reserve
(1) Details
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 379017020.19 44099319.12 423116339.31
Total 379017020.19 44099319.12 423116339.31
(2) Other remarks
Current increase of 44099319.12 yuan was due to the appropriation of statutory surplus reserve at 10% of net
profit generated by the parent company in the current period.
48. Undistributed profit
Current period Preceding period
Items
cumulative comparative
Opening balance 4049434826.11 3963306890.06
Add: Net profit attributable to owners of the parent
513514275.54498383730.00
company
213Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Items
cumulative comparative
Less: Appropriation of statutory surplus reserve 44099319.12 63892252.27
Dividend payable on ordinary shares 395867692.25 348363541.68
Closing balance 4122982090.28 4049434826.11
(II) Notes to items of the consolidated income statement
1. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 13092045278.10 10246959377.89 12593195441.07 9734951651.18
Other operations 25849045.85 14596417.46 37855526.27 19998635.24
Total 13117894323.95 10261555795.35 12631050967.34 9754950286.42
Including: Revenue
from contracts with 13115089788.96 10259158457.63 12627471564.83 9752551808.30
customers
(2) Breakdown of revenue
1) Breakdown of revenue from contracts with customers by goods or services
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Smart city services 11628543394.30 9125374442.47 10715122532.51 8370507746.80
Other businesses 1486546394.66 1133784015.16 1912349032.32 1382044061.50
Subtotal 13115089788.96 10259158457.63 12627471564.83 9752551808.30
2) Breakdown of revenue from contracts with customers by operating regions
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Domestic 13045493647.53 10206828132.10 12580574554.53 9719212709.12
Overseas 69596141.43 52330325.53 46897010.30 33339099.18
Subtotal 13115089788.96 10259158457.63 12627471564.83 9752551808.30
3) Breakdown of revenue from contracts with customers by time of transferring goods or rendering services
214Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Current period cumulative Preceding period comparative
Recognized at a point in time 6135772464.01 5853953110.98
Recognized over time 6979317324.95 6773518453.85
Subtotal 13115089788.96 12627471564.83
2. Taxes and surcharges
Items Current period cumulative Preceding period comparative
Urban maintenance and construction tax 24148825.72 19347236.29
Education surcharge 10666964.16 9237216.76
Housing property tax 16203888.67 16056747.97
Land use tax 10199996.02 9274170.36
Local education surcharge 6868443.19 4897252.61
Stamp duty 6587025.93 9430645.45
Vehicle and vessel use tax 2112684.94 1791754.71
Environmental protection tax 52355.08 22817.10
Others 51508.12 33747.82
Total 76891691.83 70091589.07
3. Selling expenses
Items Current period cumulative Preceding period comparative
Employee benefits 307251216.27 335609966.84
Marketing expenses and agency fees 220819033.76 265269393.83
Business entertainment expenses 51112112.30 48124800.71
Office expenses 38257930.59 44084358.46
Expenses for tendering and bidding 24630610.09 23714813.45
Vehicle usage fees 24639231.23 26437459.78
Business travelling expenses 24984948.00 24235527.24
Depreciation and amortization 3406740.19 2564157.65
Others 18406142.13 14826275.56
215Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Current period cumulative Preceding period comparative
Total 713507964.56 784866753.52
4. Administrative expenses
Items Current period cumulative Preceding period comparative
Employee benefits 445519388.01 405851793.11
Depreciation and amortization 85688115.35 96124324.58
Office expenses 66533790.62 55346741.42
Business entertainment expenses 47715823.66 57420506.69
Agency consulting fees 56947385.40 49770146.66
Vehicle usage fees 10655045.66 11285144.00
Business travelling expenses 13607851.02 12998629.92
Repair fees 3188966.37 3476335.42
Others 43655243.82 33885615.65
Total 773511609.91 726159237.45
5. R&D expenses
Items Current period cumulative Preceding period comparative
Employee benefits 225296261.02 246795666.58
Direct inputs 24575277.27 34669099.04
Other expenses 67245745.71 62565473.71
Total 317117284.00 344030239.33
6. Financial expenses
Items Current period cumulative Preceding period comparative
Interest expenditures 148707477.58 156635777.38
Interest income -74268310.95 -99626077.56
Gains and losses on foreign exchange 484792.16 -1587128.38
Others 6082393.21 19898513.43
216Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Current period cumulative Preceding period comparative
Total 81006352.00 75321084.87
7. Other income
Amount included in
Current period Preceding period
Items non-recurring profit
cumulative comparative
or loss
Government grants related to assets 26869378.43 9544515.62 2142170.52
Government grants related to income 74123506.76 69450144.75 53415135.13
Refund of handling fees for
954133.65424735.51
withholding individual income tax
VAT extra deductions 35161533.86 40567420.41
Total 137108552.70 119986816.29 55557305.65
8. Investment income
Items Current period cumulative Preceding period comparative
Investment income from long-term equity
21424762.724960692.79
investments under equity method
Investment income from disposal of long-
-21453627.50
term equity investments
Investment income from financial products 24183474.63 12111406.99
Losses from debt restructuring -2318575.60 -3130560.92
Gains from non-recurse factoring of accounts
-67388725.85-64671667.09
receivable
Gains from sale of accounts receivable 17102059.94
Others -2438796.80 -867077.69
Total -30889428.46 -51597205.92
9. Credit impairment loss
Items Current period cumulative Preceding period comparative
Bad debts -263315661.50 -218933128.92
Credit guarantee loss 944741.96 2580537.81
Total -262370919.54 -216352591.11
10. Assets impairment loss
217Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Current period cumulative Preceding period comparative
Inventory write-down loss -24337915.42 -15842992.24
Impairment loss of goodwill -3793868.72 -94237304.12
Impairment loss of other non-current assets 1839208.07 -12686044.85
Impairment loss of contract assets -5417609.68 5615945.43
Development expenditures -6240373.24
Total -31710185.75 -123390769.02
11. Gains on asset disposal
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Gains on disposal of fixed assets -996886.09 -661936.68 -996886.09
Gains on disposal of intangible
964954.40-529889.14964954.40
assets
Total -31931.69 -1191825.82 -31931.69
12. Non-operating revenue
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Gains on damage or retirement of
66171.96428721.5266171.96
non-current assets
Penalty and confiscatory income 17560236.12 14363825.53 17560236.12
Others 3588241.87 5054158.55 3588241.87
Total 21214649.95 19846705.60 21214649.95
13. Non-operating expenditures
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Losses on damage or retirement of
25496831.592654891.9625496831.59
non-current assets
Donation expenditures 1499766.00 1837168.20 1499766.00
Special funds for local water
655418.93490964.79
conservancy construction
Penalty and confiscatory expenses 44581056.24 6546510.22 44581056.24
218Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Amount included in
Current period Preceding period
Items non-recurring profit or
cumulative comparative
loss
Others 7061840.39 1501531.02 7061840.39
Total 79294913.15 13031066.19 78639494.22
14. Income tax expenses
(1) Details
Current period Preceding period
Items
cumulative comparative
Current period income tax expenses 122573790.57 106216873.13
Deferred income tax expenses -17319457.97 -8859221.68
Total 105254332.60 97357651.45
(2) Reconciliation of accounting profit to income tax expenses
Current period Preceding period
Items
cumulative comparative
Profit before tax 648329450.36 609901840.51
Income tax expenses based on tax rate applicable to the
162082362.59152475460.13
parent company
Effect of different tax rate applicable to subsidiaries -101232225.41 -108201596.08
Effect of prior income tax reconciliation 425975.50 10458266.74
Effect of non-taxable income 2081837.94 -1995800.61
Effect of non-deductible costs expenses and losses 11590048.99 17657279.37
Effect of utilization of deductible losses not previously
-9980142.34-13171099.82
recognized as deferred tax assets
Effect of deducible temporary differences or deductible
losses not recognized as deferred tax assets in the current 92928187.83 86948728.47
period
Effect of extra deduction -52880238.87 -46798282.51
Difference between deferred and current income tax rates 238526.37 -15304.24
Income tax expenses 105254332.60 97357651.45
15. Other comprehensive income after tax
Please refer to section V (I) 45 of notes to the financial statements for details.
219Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(III) Notes to items of the consolidated cash flow statement
1. Other cash receipts or payments related to operating activities investing activities and financing activities
(1) Other cash receipts related to operating activities
Current period Preceding period
Items
cumulative comparative
Receipts of deposits for notes letters of credit and letters of
227769983.95167737972.76
guarantee
Receipts of government grants 70100681.48 58010336.36
Receipts of security deposits 64398840.83 111742962.57
Recovery of petty cash and temporary advance payment
65091670.2499329855.08
receivable
Temporary receipts payable 199441444.40 180665554.52
Receipts of interest income 55176330.53 76788792.42
Receipts of factoring payment and principal of finance lease 609740986.98 1066072685.44
Receipt of principal and interest of time deposits 230340333.33
Others 41849691.27 20325575.31
Total 1563909963.01 1780673734.46
(2) Other cash payments related to operating activities
Current period Preceding period
Items
cumulative comparative
Payments for deposits for notes letters of credit and letters of
93276510.85285090684.20
guarantee
Operating period expenses 878207698.46 731115039.63
Payments for security deposits 73120850.95 63056515.55
Payments for petty cash and temporary advance payment
51587935.8360967713.23
receivable
Payments for factoring and principal of finance lease 588127124.82 719746793.47
Purchase of time deposits 300000000.00 230000000.00
Payments for temporary receipts payable 105457623.44 94331472.76
Others 50442368.63 14644423.90
220Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Total 2140220112.98 2198952642.74
(3) Other cash receipts related to investing activities
Current period Preceding period
Items
cumulative comparative
Redemption of financial products 8309070380.37 1638150000.00
Receipts of special payables 21600000.00 12619977.00
Receipts of principal and interest of call loans 391377381.01
Receipts of performance compensation payments 99229334.96
Total 8821277096.34 1650769977.00
(4) Other cash payments related to investing activities
Current period Preceding period
Items
cumulative comparative
Purchase of financial products 8309070380.37 1638150000.00
Recovery of special payables 3000000.00
Cash outflows from disposal of subsidiaries 1217044.03 1785617.97
Total 8310287424.40 1642935617.97
(5) Other cash receipts related to financing activities
Current period Preceding period
Items
cumulative comparative
Receipts of call loans 46325400.00 48692000.00
Recourse factoring of accounts receivable 82290000.00
Total 128615400.00 48692000.00
(6) Other cash payments related to financing activities
Current period Preceding period
Items
cumulative comparative
Return of call loans 56774887.22 32418130.98
Payments for rents 9833360.67 10331775.89
Purchase of non-controlling interest 73059000.00 2000000.00
Payments for factoring service fees and handling fees 1896301.34
221Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Total 141563549.23 44749906.87
2. Supplementary information to the cash flow statement
Current period Preceding period
Supplementary information
cumulative comparative
(1) Reconciliation of net profit to cash flows from operating
activities:
Net profit 543075117.76 512544189.06
Add: Provision for assets impairment 31710185.75 123390769.02
Provision for credit impairment 262370919.54 216352591.11
Depreciation of fixed assets right-of-use assets
312447519.47286959372.71
oil and gas assets productive biological assets
Amortization of intangible assets 496120079.56 508294636.17
Amortization of long-term prepayments 13055163.47 12737945.56
Losses on disposal of fixed assets intangible
31931.691104586.11
assets and other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 25430659.63 2226170.44
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 142928235.60 156286924.35
Investment losses (Less: gains) -21732249.38 -17097464.58
Decrease of deferred tax assets (Less: increase) -15514237.64 -1871173.45
Increase of deferred tax liabilities (Less: decrease) -1805220.33 -6988048.23
Decrease of inventories (Less: increase) -97981316.86 -115741461.68
Decrease of operating receivables (Less: increase) -1113495631.13 -217119189.86
Increase of operating payables (Less: decrease) 585408324.35 -75523337.24
Others
Net cash flows from operating activities 1162049481.48 1385556509.49
(2) Significant investing and financing activities not related
to cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Right-of-use assets increased in the current period
222Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Supplementary information
cumulative comparative
(3) Net changes in cash and cash equivalents:
Cash at the end of the period 4690217231.21 3916145254.54
Less: Cash at the beginning of the period 3916145254.54 4580665245.99
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents 774071976.67 -664519991.45
3. Composition of cash and cash equivalents
(1) Details
Items Closing balance Opening balance
1) Cash 4690217231.21 3916145254.54
Including: Cash on hand 165440.86 310688.91
Cash in bank on demand for payment 4688889015.35 3914780983.13
Other cash and bank balances on demand for
1162775.001053582.50
payment
Central bank deposit on demand for payment
Deposit in other banks
Loans to other banks
2) Cash equivalents
Including: Bond investments maturing within three months
3) Cash and cash equivalents at the end of the period 4690217231.21 3916145254.54
Including: Cash and cash equivalents of parent company or
subsidiaries with use restrictions
(2) Cash and cash equivalents with use restrictions
Reasons for use
restrictions and for
Items Closing balance Opening balance
considered as cash and
cash equivalents
Raised funds 144975442.92 77431277.37 Raised funds
223Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Reasons for use
restrictions and for
Items Closing balance Opening balance
considered as cash and
cash equivalents
Business funds specifically used
21171606.15 22851951.00 Special funds
for project payments
Subtotal 166147049.07 100283228.37
(3) Cash and bank balances not considered as cash and cash equivalents
Reasons for not considered as
Items Closing balance Opening balance
cash and cash equivalents
Deposits for bank Unable to be withdrawn on
51912309.98179001533.41
acceptance demand
Deposits for letters of Unable to be withdrawn on
63861028.2277546493.49
guarantee demand
Unable to be withdrawn on
Engineering deposits 608777.07 929734.93
demand
Unable to be withdrawn on
ETC deposits 3000.00 3000.00
demand
Deposits for land Unable to be withdrawn on
1382242.321003098.32
reclamation demand
Unable to be withdrawn on
Deposits for buyer's credit 863453.18 861924.65
demand
Engineering escrow
Unable to be withdrawn on
accounts that are not 154141.05
demand
available for separate use
Cash in bank frozen due to Unable to be withdrawn on
1968278.415100869.89
lawsuits demand
Unable to be withdrawn on
Time deposits and interests 300196944.44 230340333.33
demand
Factoring collections held Unable to be withdrawn on
6357287.45
in custody demand
Unable to be withdrawn on
Security deposits 261796.72
demand
Unable to be withdrawn on
Others 362768.22 290200.17
demand
Subtotal 427777886.01 495231329.24
4. Changes in liabilities related to financing activities
224Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Increase Decrease
Items Opening balance Closing balance
Changes in Changes in
Changes in cash Changes in cash
non-cash non-cash
Short-term
126939855.26786667037.3510744082.65781153359.3829500000.00113697615.88
borrowings
Dividend
407439293.83406902658.89536634.94
payable
Other
23799636.47128615400.0076636291.09122602932.36106448395.20
payables
Long-term
borrowings
(including
long-term 2271666899.18 457988683.03 85775737.61 634470136.63 2180961183.19
borrowings
due within
one year)
Bonds
payable
(including
bonds 1360603802.12 66238781.39 22142824.76 1404699758.75
payable due
within one
year)
Lease
liabilities
(including
lease 24784187.60 1190079.29 9833360.67 16140906.22
liabilities
due within
one year)
Long-term
payables
(including
long-term 24277333.32 1041922.83 9127256.20 16191999.95
payables
due within
one year)
Subtotal 3832071713.95 1373271120.38 649066188.69 1986232528.89 29500000.00 3838676494.13
5. Significant activities not involving cash receipts and payments
Please refer to section V (III) 4 of notes to the financial statements for details on significant investing and
financing activities not involving cash receipts and payments.(IV) Others
1. Monetary items in foreign currencies
225Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance in RMB equivalent at the
Items Exchange rate
foreign currencies end of the period
Cash and bank balances 54087935.42
Including: USD 4680710.05 7.1884 33646816.12
EUR 1535918.33 7.5257 11558860.58
HKD 9042266.56 0.9260 8373138.83
THB 2394731.36 0.2126 509119.89
Accounts receivable 16468198.57
Including: USD 764.00 7.1884 5491.94
EUR 2119178.74 7.5257 15948303.44
HKD 555511.00 0.9260 514403.19
Other receivables 1393826.66
Including: EUR 100000.00 7.5257 752570.00
HKD 2500.00 0.9260 2315.00
THB 3005370.00 0.2126 638941.66
Accounts payable 7666.38
Including: THB 36060.11 0.2126 7666.38
Other payables 109624.02
Including: HKD 100000.00 0.9260 92600.00
THB 80075.35 0.2126 17024.02
2. Leases
(1) The Company as the lessee
1) Please refer to section V (I) 17 of notes to the financial statements for details on right-of-use assets.
2) Please refer to section III (XXXII) of notes to the financial statements for details on the Company's accounting
policies on short-term leases and leases for which the underlying asset is of low value. The amounts of short-term
leases and low-value asset leases included into profit or loss are as follows:
226Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Items
cumulative comparative
Expense relating to short-term leases 11898616.80 19527703.71
Expense relating to leases of low-value assets (excluding
short-term leases)
Total 11898616.80 19527703.71
3) Profit or loss and cash flows related to leases
Current period Preceding period
Items
cumulative comparative
Interest expenses on lease liabilities 861147.85 1190325.15
Variable lease payments included in profit or loss but not
included in the measurement of lease liabilities
Income from subleasing right-of-use assets
Total cash outflows related to leases 21731977.47 29859479.60
Gains or losses arising from sale and leaseback transactions
4) Please refer to section IX (II) of notes to the financial statements for details on maturity analysis of lease
liabilities and related liquidity risk management.
(2) The Company as the lessor
1) Operating lease
a. Lease income
Current period Preceding period
Items
cumulative comparative
Lease income 2422596.81 3249127.28
Including: Income relating to variable lease payments not
included in the measurement of the lease liabilities
b. Assets leased out under operating leases
Items Closing balance December 31 2023
Buildings and structures 32330758.71 23875232.89
Special equipment 1026005.26
Subtotal 33356763.97 23875232.89
227Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Please refer to section V (I) 15 of notes to the financial statements for details on fixed assets leased out under
operating leases.c. Undiscounted lease payments to be received arising from non-cancellable leases based on the lease contract
signed with lessee
Remaining years Closing balance December 31 2023
Within 1 year 1328438.00 104738.00
1-2 years 104738.00 104738.00
2-3 years 104738.00 104738.00
3-4 years 104738.00 104738.00
4-5 years 104738.00
Total 1642652.00 523690.00
2) Finance lease
a. Profit or loss related to finance lease
Current period Preceding period
Items
cumulative comparative
Finance income on the net investment in the lease 2140490.59 2245842.84
Income relating to variable lease payments not included in
the measurement of the net investment in the lease
b. Reconciliation of undiscounted lease payments to net investment in the lease
Items Closing balance December 31 2023
Undiscounted lease payments 55723768.11 68248638.70
Less: Unrealized finance income relating to lease payments 2885932.56 4679168.24
Add: Present value of unguaranteed residual value
Net investment in the lease 52837835.55 63569470.46
c. Undiscounted lease payments to be received arising from non-cancellable leases based on the lease contract
signed with lessee
228Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Remaining years Closing balance December 31 2023
Within 1 year 28609032.71 46826104.16
1-2 years 22702585.40 19550334.54
2-3 years 1945150.00 1497760.00
3-4 years 1493600.00 374440.00
4-5 years 973400.00
Total 55723768.11 68248638.70
3. Supplier finance arrangements
(1) Terms and conditions of supplier finance arrangements
Categories Terms and conditions
The Company enters into agreements with banks to utilize either the
bank's proprietary service platform or China Enterprise Cloud Chain the
third-party online financing platform for supply chain financing
Supply chain financing
operations. The banks provide payment agency and seller factoring
services to the Company which in turn extends the payment period by
settling the payment on the agreed maturity date of accounts payable.The Company processes domestic letters of credit through banks. The
Company authorizes the banks to directly deduct handling fees interest
Domestic letters of credit and other related charges from its account as well as to execute outward
payments under domestic letters of credit through direct account
deductions.
(2) Liabilities related to supplier finance arrangements
1) Carrying amount of related liabilities
Items Closing balance Opening balance
Accounts payable 196358041.38 77000553.53
Including: Payments already received by suppliers 138583990.82 19966154.50
Subtotal 196358041.38 77000553.53
2) Range of payment due dates for related liabilities
The Company extended the payment terms of related liabilities by 6-9 months through supplier finance
arrangements.VI. R&D Costs
(I) R&D costs
229Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Items
cumulative comparative
Employee benefits 225296261.02 252327439.92
Direct inputs 24575277.27 37083931.61
Other expenses 67245745.71 63438534.25
Total 317117284.00 352849905.78
Including: R&D costs to be expensed 317117284.00 344030239.33
R&D costs to be capitalized 8819666.45
(II) Development expenditures
1. Changes in development expenditures
Increase Decrease
Opening Closing
Items Internal Transferred out
balance Recognized as Disposal/ balance
development Others into profit or
intangible assets Scrapping
expenditures loss
Development
9063080.609063080.60
expenditures
Total 9063080.60 9063080.60
2. Impairment of development expenditures
Increase Decrease
Opening Closing
Items
balance Disposal/ Accrual Others Others balance
Scrapping
Development
9063080.609063080.60
expenditures
Subtotal 9063080.60 9063080.60
VII. Interest in Other Entities
(I) Composition of the consolidation scope
1. The Company has brought 315 subsidiaries including Zoomlion Environmental Company Shangfeng Industrial
Company Infore Technology Company and Green Oriental Company into the consolidation scope.
2. Basic information of significant subsidiaries
230Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Holding proportion
Main operating
(%) Acquisition
Subsidiaries Registered capital place and place Business nature
method
of registration
Direct Indirect
Business
Zoomlion
2351.53 million Changsha Smart city combination
Environmental 100.00
yuan Hunan services under common
Company
control
(II) Disposal of subsidiaries
One-time disposal leading to loss of control over a subsidiary
Difference between
disposal
consideration and
Equity
Equity Equity Loss-of- Determination net assets disposal
Subsidiaries disposal disposal basis for loss- attributable to the
proportion
consideration method control date of-control date Company at the
(%)
consolidated
financial statements
level
Ji'an Zhongfeng
Substantial
Environmental August 22
1184613.45 100.00 Transfer control 15369.49
Technology Co. 2024
transfer
Ltd.Chongqing
Zhongying Substantial
November
Environmental 540000.00 100.00 Transfer control 529.15
272024
Sanitation Service transfer
Co. Ltd.Shengzhou
Zoomlion Substantial
September
Environmental 533558.32 100.00 Transfer control 6009.97
302024
Engineering Co. transfer
Ltd.Heze Yingsheng
Substantial
Environmental July 30
200000.00 100.00 Transfer control 28191.24
Sanitation Service 2024
transfer
Co. Ltd.Wuhan Tongying
Environmental Substantial
December
Sanitation 147905.00 100.00 Transfer control 8320.83
272024
Management Co. transfer
Ltd.Zhoushan Yinghe
Substantial
Environmental December
531542.00 100.00 Transfer control 93152.20
Sanitation Service 27 2024
transfer
Co. Ltd.
231Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Difference between
disposal
consideration and
Equity
Equity Equity
disposal Loss-of-
Determination net assets
Subsidiaries disposal disposal basis for loss- attributable to the
proportion
consideration method control date of-control date Company at the
(%)
consolidated
financial statements
level
Foshan Shunhe Substantial
February 1
Environmental 258552204.53 100.00 Transfer control -21109721.98
2024
Protection Co. Ltd. transfer
(Continued)
Carrying Changes in other
Fair value Determination comprehensive
Proportion of amount of of Gains/Losses method and major
remaining income/ equity remaining remaining on fair value assumption on
Subsidiaries equity at the equity at
related to former
equity at the remeasurement fair value of
loss-of- the loss-of-
subsidiary's equity
loss-of- of remaining remaining equity investment
control date control equity at the loss-of-
control date transferred to
date control date investment income
Ji'an Zhongfeng
Environmental
Technology Co.Ltd.Chongqing
Zhongying
Environmental
Sanitation Service
Co. Ltd.Shengzhou
Zoomlion
Environmental
Engineering Co.Ltd.Heze Yingsheng
Environmental
Sanitation Service
Co. Ltd.Wuhan Tongying
Environmental
Sanitation
Management Co.Ltd.Zhoushan Yinghe
Environmental
Sanitation Service
Co. Ltd.
232Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Carrying Changes in other
Fair value Determination comprehensive
Proportion of amount of of Gains/Losses method and major
remaining remaining
income/ equity
remaining on fair value assumption on
Subsidiaries equity at the equity at
related to former
equity at the remeasurement fair value of
the loss-of- subsidiary's equity loss-of- loss-of- of remaining remaining equity investment
control date control equity at the loss-of-
control date transferred to
date control date investment income
Foshan Shunhe
Environmental
Protection Co. Ltd.(III) Changes in the consolidation scope due to other reasons
1. Entities brought into the consolidation scope
Equity Proportion of
Capital
Name of entities acquisition Equity acquisition date capital
contribution
method contribution (%)
Maoming Yingsheng Urban
Establishment January 9 2024 1700000.00 100.00
Environmental Service Co. Ltd.Guangzhou Yingsheng Environmental
Establishment January 24 2024 [Note] 100.00
Co. Ltd.Shaodong Yingsheng Environmental
Establishment January 24 2024 [Note] 100.00
Sanitation Management Co. Ltd.Pingdingshan Zhongying Environmental
Establishment January 29 2024 [Note] 100.00
Sanitation Management Co. Ltd.Pingdingshan Yinglian Environmental
Establishment January 29 2024 [Note] 100.00
Sanitation Management Co. Ltd.Huizhou Tongying Environmental
Establishment January 31 2024 [Note] 100.00
Industry Co. Ltd.Luanzhou Zhongying Environmental
Establishment January 31 2024 1000000.00 100.00
Service Co. Ltd.Chunhua Yinghe Urban Environmental
Establishment February 2 2024 100000.00 100.00
Services Co. Ltd.Foshan Shunde Yinggui Urban
Establishment February 21 2024 12000000.00 100.00
Environmental Service Co. Ltd.Hefei Yingsheng Environmental
Establishment February 26 2024 500000.00 100.00
Sanitation Management Co. Ltd.Zhongyang Tongying Environmental
Establishment February 29 2024 [Note] 100.00
Sanitation Service Co. Ltd.Nantong Gaoying Environmental
Establishment March 14 2024 100000.00 100.00
Sanitation Management Co. Ltd.Shenzhen Longhua Yinglian Environment
Establishment March 25 2024 2000000.00 100.00
Co. Ltd.
233Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Equity Proportion of
Capital
Name of entities acquisition Equity acquisition date capital
contribution
method contribution (%)
Hanshou Tongying Environmental
Establishment March 26 2024 [Note] 100.00
Sanitation Service Co. Ltd.Zhongshan Yingluo Environmental
Establishment April 2 2024 255000.00 51.00
Technology Co. Ltd.Suzhou Lianying Environmental
Establishment April 19 2024 [Note] 100.00
Technology Co. Ltd.Changfeng Tongying Environmental
Establishment April 22 2024 200000.00 100.00
Sanitation Management Co. Ltd.Xinnin Zhongying Environmental
Establishment April 30 2024 [Note] 100.00
Sanitation Management Co. Ltd.Guangdong Infore Low Carbon Recycling
Establishment May 11 2024 10000000.00 100.00
Technology Co. Ltd.Shenyang Yinghe Urban Environmental
Establishment May 13 2024 5000000.00 100.00
Sanitation Management Co. Ltd.Zhaoqing Yingjie Environmental Service
Establishment May 31 2024 [Note] 100.00
Co. Ltd.Jiaxing Yingjia Urban Service Co. Ltd. Establishment June 3 2024 1000000.00 100.00
Tongdao Yinglian Jiujie Environmental
Establishment June 13 2024 100000.00 100.00
Industry Co. Ltd.Xiangtan Yingsheng Environmental
Establishment June 14 2024 100000.00 100.00
Sanitation Management Co. Ltd.Taihu Yinghe Environmental Sanitation
Establishment June 21 2024 100000.00 100.00
Management Co. Ltd.Chongqing Jiangbei Yingsheng
Environmental Sanitation Service Co. Establishment June 25 2024 200000.00 100.00
Ltd.Huizhou Yinghe Environmental Industry
Establishment June 26 2024 200000.00 100.00
Co. Ltd.Guangze Yingze Environmental
Establishment June 27 2024 [Note] 100.00
Development Co. Ltd.Yongzhou Lingling Yingsheng
Environmental Sanitation Management Establishment July 2 2024 6000000.00 100.00
Co. Ltd.Datong Yingsheng Environmental
Establishment July 19 2024 [Note] 100.00
Sanitation Management Co. Ltd.Tangshan Zhongying Environmental
Establishment July 24 2024 6300000.00 100.00
Service Co. Ltd.Foshan Shunde Yinghe Urban
Establishment August 2 2024 4900000.00 100.00
Environmental Service Co. Ltd.
234Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Equity Proportion of
Capital
Name of entities acquisition Equity acquisition date capital
contribution
method contribution (%)
Xining Yinglian Urban Environmental
Establishment August 5 2024 100000.00 100.00
Service Co. Ltd.Maoming Binhai New Area Yingbin
Establishment August 26 2024 6500000.00 100.00
Urban Environmental Service Co. Ltd.Suzhou Wujiang Yingzhiyuan
Environmental Sanitation Management Establishment August 28 2024 200000.00 100.00
Co. Ltd.USD
Infore Environment Technology Group Establishment September 3 2024 100.00
Co. Ltd. 5230000.00
Meishan Yinglian Urban Sanitation
Establishment September 27 2024 10000000.00 100.00
Service Co. Ltd.Foshan Shunde Yinglun Recycling
Establishment October 10 2024 2000000.00 100.00
Resources Co. Ltd.Dongguan Yinglian Urban Environmental
Establishment October 16 2024 2000000.00 100.00
Service Co. Ltd.Yangjiang Yingfei Environmental
Establishment October 16 2024 [Note] 100.00
Technology Co. Ltd.Linqu Yingchuang Environmental
Establishment October 17 2024 [Note] 100.00
Technology Co. Ltd.Dongguan Hefuying Environmental
Establishment October 23 2024 102000.00 51.00
Industry Co. Ltd.Zouping Yinglian Urban Environmental
Establishment October 29 2024 [Note] 100.00
Service Co. Ltd.Xiapu Yingjia Environmental Service Co.Establishment October 29 2024 500000.00 100.00
Ltd.USD
Infore Environment Intelligent Sanitation Establishment November 1 2024 100.00
Equipment (Thailand) Co. Ltd. 2900000.00
Taizhou Yinglian Environmental
Establishment November 7 2024 [Note] 100.00
Management Co. Ltd.Zhanjiang Xiashan Yingde Recycling
Establishment November 15 2024 580000.00 70.00
Resources Co. Ltd.Qianxinan Tongying Environmental
Establishment November 27 2024 [Note] 100.00
Management Co. Ltd.Anshan Lianying Urban Environmental
Establishment November 28 2024 1000000.00 100.00
Sanitation Management Co. Ltd.Shangsi Guiying Environmental Establishment November 28 2024 [Note] 100.00
Technology Co. Ltd.Foshan Chancheng Yingsheng Recycling
Establishment December 3 2024 1200000.00 100.00
Resources Co. Ltd.
235Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Equity Proportion of
Capital
Name of entities acquisition Equity acquisition date capital
contribution
method contribution (%)
Fujian Pucheng Yingrun Environmental
Establishment December 19 2024 [Note] 100.00
Service Co. Ltd.Luoding Yingxin Urban Environmental
Establishment December 25 2024 [Note] 100.00
Service Co. Ltd.Note: As of December 31 2024 capital contributions of these companies have not yet been paid.
2. Entities excluded from the consolidation scope
Equity Net profit from the
Equity disposal Disposal-date
Name of entities disposal period beginning to
date net assets
method the disposal date
Shenzhen Longgang Yinglian January 10
Cancellation
Environmental Service Co. Ltd. 2024
Shenzhen Yinglian Afforest Engineering
Cancellation July 15 2024
Co. Ltd.Shengzhou Yinglia Environmental September 3
Cancellation -11026.33
Sanitation Management Co. Ltd. 2024
(IV) Transactions resulting in changes in subsidiaries' equity but without losing control
1. Changes in subsidiaries' equity
Holding proportion Holding proportion
Subsidiaries Date of change
before change after change
Green Oriental Company March 1 2024 70.00% 100.00%
2. Effect of transactions on non-controlling interest and equity attributable to parent company
Items Green Oriental Company
Acquisition costs/Disposal considerations 73059000.00
Cash 73059000.00
Acquisition costs/Total disposal considerations 73059000.00
Less: Share in subsidiaries' net assets based on
50460910.86
acquired/disposed net assets proportion
Difference 22598089.14
Including: Capital reserve adjusted 22598089.14
236Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(V) Interest in joint ventures or associates
1. Significant joint ventures or associates
Main Holding Accounting treatment on
Place of Business
Associates operating proportion (%) investments in joint
registration nature
place Direct Indirect ventures or associates
Foshan Yingtong
Electrical
Foshan Foshan Manufacturing 49.00 Equity method
Materials Co.Ltd.
2. Main financial information of significant associates
Closing balance/ Opening balance/
Current period cumulative Preceding period comparative
Items
Foshan Yingtong Electrical Foshan Yingtong Electrical
Materials Co. Ltd. Materials Co. Ltd.Current assets 1251407195.98 1111710931.09
Non-current assets 126393546.48 164920906.11
Total assets 1377800742.46 1276631837.20
Current liabilities 791732615.90 672193265.67
Non-current liabilities 91600000.00 55400000.00
Total liabilities 883332615.90 727593265.67
Non-controlling interest 66618579.35 66338530.17
Equity attributable to owners of
427849547.21482700041.36
parent company
Proportionate share in net assets 209646278.13 236523020.27
Adjustments
Others -35422097.13 -34569092.45
Carrying amount of investments in
174224181.00201953927.82
associates
Operating revenue 2212289063.72 1773954226.95
Net profit -54570444.97 -49874177.08
3. Aggregated financial information of insignificant joint ventures and associates
237Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance/ Opening balance/
Items Current period Preceding period
cumulative comparative
Associates
Total carrying amount of investments 508062875.09 479675156.87
Proportionate shares in the following items
Net profit 48301504.85 31940019.06
Other comprehensive income
Total comprehensive income 48301504.85 31940019.06
VIII. Government Grants
(I) Government grants increased in the current period
Items Increase
Government grants related to assets 16536520.75
Including: Included into deferred income 16536520.75
Government grants related to income 74123506.76
Including: Included into other income 74123506.76
Total 90660027.51
(II) Liabilities related to government grants
Amount included Amount included
Presented under Opening balance Increase into other into non-operating
income revenue
Deferred income 115340494.42 16536520.75 26869378.43
Subtotal 115340494.42 16536520.75 26869378.43
(Continued)
Amount Amount
Related to
Presented under offsetting offsetting Other changes Closing balance
assets/income
expenses assets
281245017.46 Related to
Deferred income 386252654.20
[Note] assets
281245017.46
Subtotal 386252654.20
[Note]
238Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Note: Deferred income decreased by 3531122.17 yuan due to the disposal of subsidiaries and increased by
284776139.63 yuan transferred in from special payables.
(III) Government grants included into profit or loss
Current period Preceding period
Items
cumulative comparative
Government grants included into other income 100992885.19 78994660.37
Total 100992885.19 78994660.37
IX. Risks Related to Financial Instruments
In risk management the Company aims to seek the appropriate balance between the risks and benefits from its use
of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the
Company's financial performance so as to maximize the profits of shareholders and other equity investors. Based
on such risk management objectives the Company's risk management policies are established to identify and
analyze the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and
adherence to limits on a timely and reliable basis.The Company has exposure to the following risks from its use of financial instruments which mainly include:
credit risk liquidity risk and market risk. The Management has deliberated and approved policies concerning
such risks and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date the Company assesses whether the credit risk on a financial instrument has increased
significantly since initial recognition. When assessing whether the credit risk has increased significantly since
initial recognition the Company takes into account reasonable and supportable information which is available
without undue cost or effort including qualitative and quantitative analysis based on historical data external
credit risk rating and forward-looking information. The Company determines the changes in default risk of
financial instruments during the estimated lifetime through comparison of the default risk at the balance sheet date
and the initial recognition date on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when one or more of
the following qualitative and quantitative standards are met:
239Infore Environment Technology Group Co. Ltd. 2024 Annual Report
1) Quantitative standard mainly relates to the scenario in which at the balance sheet date the probability of
default in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor's operation or financial position
present or expected changes in technology market economy or legal environment that will have significant
adverse impact on the debtor's repayment ability;
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred of which the
standard is consistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor's financial difficulty having
granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss given default
and exposure to default risk. The Company develops a model of the probability of default loss given default and
exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating guarantee
measures and collateral type payment method etc.) and forward-looking information.
3. Please refer to section V (I) 2 3 4 6 8 11 and 23 of notes to the financial statements for details on the
reconciliation table of opening balance and closing balance of loss allowances of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company's credit risk is primarily attributable to cash and bank balances and receivables. In order to control
such risks the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively
high credit levels hence its credit risk is relatively low.
(2) Receivables and contract assets
The Company performs credit assessment on customers using credit settlement on a regular basis. The Company
selects credible and well-reputed customers based on credit assessment result and conducts ongoing monitoring
on balance of receivables to avoid significant risks in bad debts.As the Company's credit risks fall into several business partners and customers as of December 31 2024 7.13%
240Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(December 31 2023: 7.33%) of the total accounts receivable and contract assets was due from the five largest
customers of the Company. The Company has no significant central credit risk.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at
the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated
with cash or other financial assets settlement which is possibly attributable to failure in selling financial assets at
fair value on a timely basis or failure in collecting liabilities from counterparties of contracts or early redemption
of debts or failure in achieving estimated cash flows.In order to control such risk the Company comprehensively utilizes financing tools such as notes settlement bank
borrowings etc. and adopts long-term and short-term financing methods to optimize financing structures and
finally maintains a balance between financing sustainability and flexibility. The Company has obtained credit limit
from several commercial banks to meet working capital requirements and expenditures.Financial liabilities classified based on remaining time period till maturity
Closing balance
Items
Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Bank
2294658799.072667409785.09381300821.15739357008.551546751955.39
borrowings
Notes payable 1982522352.45 1982522352.45 1982522352.45
Accounts
3672499338.293672499338.293672499338.29
payable
Other payables 736723069.40 736723069.40 736723069.40
Lease liabilities 16140906.22 17006929.09 8814039.18 8192889.91
Long-term
40791999.9542355305.4510146091.337609214.1224600000.00
payables
Bonds payable 1404699758.75 1532135433.44 26568822.60 1505566610.84
Subtotal 10148036224.13 10650652213.21 6818574534.40 2260725723.42 1571351955.39
(Continued)
December 31 2023
Items
Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Bank borrowings 2398606754.44 2785244392.01 598015270.38 611768269.63 1575460852.00
Notes payable 2294276551.46 2294276551.46 2294276551.46
241Infore Environment Technology Group Co. Ltd. 2024 Annual Report
December 31 2023
Items
Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Accounts
2918543704.462918543704.462918543704.46
payable
Other payables 709941824.77 709941824.77 709941824.77
Lease liabilities 24784187.60 26511358.34 9474544.70 17036813.64
Long-term
312053472.95312053472.959104000.0015173333.32287776139.63
payables
Bonds payable 1360603802.12 1566237165.60 11809516.80 22142844.00 1532284804.80
Subtotal 10018810297.80 10612808469.59 6551165412.57 666121260.59 3395521796.43
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market interest rates. The Company's fair value interest risks arise from fixed-rate
financial instruments while the cash flow interest risks arise from floating-rate financial instruments. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments
based on the market environment and maintains a proper financial instruments portfolio through regular review
and monitoring. The Company's interest risk in cash flows relates mainly to bank borrowings with floating interest
rate.As of December 31 2024 balance of borrowings with interest accrued at floating interest rate totaled
1772042454.13 yuan (December 31 2023: 1811617334.60 yuan). If interest rates had been 50 basis points
higher/lower and all other variables were held constant the Company's gross profit and equity will not be
significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument
resulted from changes in exchange rate. The Company is mainly operated in mainland China whose main
activities are denominated in RMB hence the Company bears insignificant market risk arising from foreign
exchange changes.Please refer to section V (IV) 1 of notes to the financial statements for details on foreign currency financial assets
and liabilities at the balance sheet date.
242Infore Environment Technology Group Co. Ltd. 2024 Annual Report
X. Fair Value Disclosure
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Closing fair value
Items
Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
Recurring fair value measurement
1. Receivables financing 201655996.66 201655996.66
2. Other equity instrument investments 1282971.01 1282971.01
Total assets at non-recurring fair value
202938967.67202938967.67
measurement
(II) Determination basis for market prices of level 3 fair value at recurring and non-recurring fair value
measurement
1. For receivables financing the Company uses specific valuation techniques to determine its fair value based on
its par value.
2. For other equity instrument investments the Company uses specific valuation techniques to determine its fair
value.XI. Related Party Relationships and Transactions
(I) Related party relationships
1. Parent company
(1) Details
Holding proportion Voting right
Place of Registered
Parent company Business nature over the Company proportion over
registration capital
(%) the Company (%)
Industrial 43.50
Infore Group Co. Ltd. Foshan Guangdong 4.45 billion 43.50
investment [Note]
Note: Infore Group Co. Ltd. (the “Infore Group”) directly holds 11.36% of equity of the Company and indirectly
holds 32.14% of equity of the Company through its wholly-owned subsidiary Ningbo Infore Asset Management
Co. Ltd.
(2) The Company's ultimate controlling party is He Jianfeng who directly holds 2.01% of equity of the Company
and indirectly holds 43.50% of equity of the Company through Infore Group.
2. Please refer to section VII of notes to the financial statements for details on the Company's subsidiaries.
3. Joint ventures and associates of the Company
243Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Please refer to section VII of notes to the financial statements for details on the Company's significant joint
ventures and associates. Details of other joint ventures or associates carrying out related party transactions with
the Company in the current period or in preceding period but with balance in the current period are as follows:
Joint ventures or associates Relationships with the Company
Guangdong Tianshu New Energy Technology Co. Ltd. Associate of the Company
Tengine Innovation (Beijing) Monitoring Instrument Co. Ltd. Associate of the Company
Guangdong Shunkong Environmental Investment Co. Ltd. Associate of the Company
Guangxi Zoomlion Guilv Urban Environmental Service Co. Associate of the Company's subsidiary Zoomlion
Ltd. Environmental Company
Shantou Chaoyang District Zoomlion Ruikang Environmental Associate of the Company's subsidiary Zoomlion
Sanitation Service Co. Ltd. Environmental Company
Shantou Zoomlion Ruikang Environmental Sanitation Service Associate of the Company's subsidiary Zoomlion
Co. Ltd. Environmental Company
Associate of the Company's subsidiary Zoomlion
Taizhou Jinzhong Environmental Industry Co. Ltd.Environmental Company
Changsha Cowa Zoomlion Intelligent Technology Co. Ltd. Associate of the Company's subsidiary Zoomlion
[Note] Environmental Company
Associate of the Company's subsidiary Guangdong Infore
Guangdong Liangke Environmental Engineering Co. Ltd.Environmental Investment Co. Ltd.Associate of the Company's subsidiary Guangdong Infore
Foshan Yingtong Electrical Materials Co. Ltd.Environmental Investment Co. Ltd.Associate of the Company's subsidiary Guangdong Infore
Beijing Xingyun Zhixing Technology Co. Ltd.Environmental Investment Co. Ltd.Associate of the Company's subsidiary Infore Technology
Guangdong Yingling Testing Technology Service Co. Ltd.Company
Note: As Changsha Cowa Zoomlion Intelligent Technology Co. Ltd. was canceled in August 2024 the current
disclosure period of related party transactions was from January 2024 to August 2024.
4. Other related parties of the Company
Related parties Relationships with the CompanyZoomlion Heavy Industry Co. Ltd. (the “Zoomlion HeavyShareholder holding more than 5% of the Company's sharesIndustry Company”)
Shenzhen Infore Smart Technology Co. Ltd. Under control of the actual controller
Foshan Shunde District Yinghai Investment Co. Ltd. Under control of the actual controller
Guangdong Shunde Ruiying Investment Management Co. Ltd. Under control of the actual controller
Shenzhen Yingfeng Heyun Management Co. Ltd. Under control of the actual controller
Guangzhou Huayi International Aution Co. Ltd. Under control of the actual controller
Guangdong Meizhi Refrigeration Equipment Co. Ltd. Under control of immediate family of the actual controller
244Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Related parties Relationships with the Company
Foshan Shunde District Midea Hotel Management Co. Ltd. Under control of immediate family of the actual controller
Guangdong Bomei Property Service Co. Ltd. Under control of immediate family of the actual controller
Guangdong Juxinhemei Technology Service Co. Ltd. Under control of immediate family of the actual controller
Guangdong Welling Motor Manufacturing Co. Ltd. Under control of immediate family of the actual controller
Midea Group Co. Ltd. Under control of immediate family of the actual controller
Guangdong Midea HVAC Equipment Co. Ltd. Under control of immediate family of the actual controller
Anhui Meizhi Refrigeration Equipment Co. Ltd. Under control of immediate family of the actual controller
Under control of the Company's associate Foshan Yingtong
Guangdong Ferries New Energy Technology Co. Ltd.Electrical Materials Co. Ltd.Under control of the Company's associate Foshan Yingtong
Guangdong Weiqi Electrical Materials Co. Ltd.Electrical Materials Co. Ltd.Under control of the Company's associate Foshan Yingtong
Anhui Weiqi Electrical Materials Co. Ltd.Electrical Materials Co. Ltd.Formerly under control of the Company's associate Foshan
Liaoning Donggang Magnet Wire Co. Ltd. [Note 1]
Yingtong Electrical Materials Co. Ltd.Under control of the Company's associate Foshan Yingtong
Guangdong Yingtong Zhilian Digital Technology Co. Ltd.Electrical Materials Co. Ltd.Investee of the Company's shareholder Zoomlion Heavy
Hunan Teli Hydraulic Co. Ltd.Industry CompanyGreen Oriental Investment Holdings Co. Ltd. (the “HongNon-controlling shareholder of the former subsidiaryKong Investment Company”) [Note 2]
Foshan Shunhe Environmental Protection Co. Ltd. [Note 3] Former subsidiary
Foshan Shunde Yuanyi Water Environmental Protection Co. Subsidiary of the Company's former subsidiary Foshan Shunhe
Ltd. [Note 3] Environmental Protection Co. Ltd.Subsidiary of the Company's former subsidiary Foshan Shunhe
Funan Green Oriental Environmental Energy Co. Ltd. [Note 3]
Environmental Protection Co. Ltd.Gucheng Yinglian Urban Environmental Service Co. Ltd. The former subsidiary of the Company's subsidiary Zoomlion
[Note 4] Environmental Company
Yichun Yinglian Urban Environmental Service Co. Ltd. [Note The former subsidiary of the Company's subsidiary Zoomlion
4] Environmental Company
Note 1: In March 2024 Foshan Yingtong Electrical Materials Co. Ltd. disposed of all the equity of its former
controlled company Liaoning Donggang Magnet Wire Co. Ltd. The current disclosure period of related party
transactions was from January 2024 to December 2024.Note 2: Hong Kong Investment Company was a non-controlling shareholder of the Company's former subsidiary.In February 2024 the Company acquired 30% of equity of Green Oriental Company held by Hong Kong
Investment Company through judicial auction. The current disclosure period of related party transactions was
from January 2024 to February 2024.
245Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Note 3: The Company disposed of all the equity of its former subsidiary Foshan Shunhe Environmental
Protection Co. Ltd. (including its subsidiaries) in February 2024 which continued to be disclosed as related
parties within one year after disposal and the current disclosure period of related party transactions was from
January 2024 to December 2024.Note 4: The Company disposed of all the equity of Gucheng Yinglian Urban Environmental Service Co. Ltd. and
Yichun Yinglian Urban Environmental Service Co. Ltd. the former subsidiaries of Zoomlion Environmental
Company in August 2023 which continued to be disclosed as related parties within one year after disposal and
the current disclosure period of related party transactions was from January 2024 to July 2024.(II) Related party transactions
1. Purchase and sale of goods rendering and receiving of services
(1) Purchase of goods and receiving of services
Current period Preceding period
Related parties Content of transactions
cumulative comparative
Guangdong Tianshu New Energy
Materials 558526.70 8393506.88
Technology Co. Ltd.Tengine Innovation (Beijing)
Materials 2643820.35 3572705.19
Monitoring Instrument Co. Ltd.Guangdong Ferries New Energy
Materials 899194.69 518435.64
Technology Co. Ltd.Changsha Cowa Zoomlion Intelligent
Materials 150.98
Technology Co. Ltd.Guangdong Shunkong Environmental
Labor services 10692550.78
Investment Co. Ltd.Zoomlion Heavy Industry Company Materials 58453145.65 77364306.08
Information systems
Shenzhen Infore Smart Technology and related
8080866.494253139.63
Co. Ltd. implementation
services
Guangdong Liangke Environmental
Labor services 8000.00 1500000.00
Engineering Co. Ltd.Foshan Shunde District Midea Hotel
Labor services 429236.00 116702.94
Management Co. Ltd.Guangzhou Huayi International
Labor services 484400.00 801033.29
Aution Co. Ltd.Guangdong Shunde Ruiying
Labor services 504717.54
Investment Management Co. Ltd.
246Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Related parties Content of transactions
cumulative comparative
Guangdong Bomei Property Service
Labor services 366016.18 1191467.15
Co. Ltd.Guangdong Juxinhemei Technology
Labor services 1422562.84
Service Co. Ltd.Guangdong Yingtong Zhilian Digital
Materials 5558283.29
Technology Co. Ltd.Shenzhen Yingfeng Heyun
Labor services 147083.80
Management Co. Ltd.Infore Group Co. Ltd. Materials 9887.50
Funan Green Oriental Environmental
Materials 4928.26
Energy Co. Ltd.Subtotal 79570669.29 108403998.56
2) Sale of goods and rendering of services
Current period Preceding period
Related parties Content of transactions
cumulative comparative
Guangdong Liangke
Environmental Engineering Co. Goods and factoring 157248.71 1706918.19
Ltd.Guangdong Tianshu New Energy
Goods and factoring -12421710.58 4572082.14
Technology Co. Ltd.Guangdong Weiqi Electrical
Factoring 2559469.56 5100534.46
Materials Co. Ltd.Liaoning Donggang Magnet Wire
Factoring 2843034.34
Co. Ltd.Anhui Weiqi Electrical Materials Co.Factoring 1095396.91 2323149.35
Ltd.Foshan Yingtong Electrical Materials
Factoring 549056.60
Co. Ltd.Guangdong Ferries New Energy
Goods 23764641.49 32674315.93
Technology Co. Ltd.Guangdong Midea HVAC Equipment
Goods 28141.59
Co. Ltd.Guangdong Welling Motor Goods and labor
43287.67233895.50
Manufacturing Co. Ltd. services
247Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Related parties Content of transactions
cumulative comparative
Beijing Xingyun Zhixing Technology
Goods 943.40
Co. Ltd.Taizhou Jinzhong Environmental
Labor services 49971957.93 22021147.55
Industry Co. Ltd.Guangdong Bomei Property Service Goods and labor
6711163.504719857.33
Co. Ltd. services
Guangxi Zoomlion Guilv Urban Goods and labor
-141215.31
Environmental Service Co. Ltd. services
Zoomlion Heavy Industry Company Goods 3836602.19 3780395.53
Shantou Chaoyang District Zoomlion
Ruikang Environmental Sanitation Goods 28828.32 94726.56
Service Co. Ltd.Shantou Zoomlion Ruikang
Environmental Sanitation Service Goods 58553.98 118489.02
Co. Ltd.Guangdong Yingtong Zhilian Digital
Goods 681968.36
Technology Co. Ltd.Subtotal 76487408.04 80625472.18
2. Related party leases
(1) The Company as the lessor
Types of assets Lease income for Lease income for the
Lessees
leased the current period preceding period
Plant and
Guangdong Tianshu New Energy
comprehensive 309783.67 2304088.08
Technology Co. Ltd.building
Guangdong Yingtong Zhilian Digital
Plant 1555278.57
Technology Co. Ltd.Guangdong Liangke Environmental
Office 15600.00
Engineering Co. Ltd.
(2) The Company as the lessee
248Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period cumulative
Expenses for short-term Lease with right-of-use assets recognized
leases and leases of low-
Types of assets value assets with Lease expenses paid
Lessors
leased simplified approach and (excluding variable Increased Interest
variable lease payments lease payments not principal of
expenses
not included in the included in the lease
recognized
measurement of lease measurement of lease liabilities
liabilities liabilities)
Foshan Shunde Office
District Yinghai building 10000.00 1261241.92 41409.44
Investment Co. Ltd. parking space
Shenzhen Infore
Smart Technology Office building
Co. Ltd.
(Continued)
Preceding period comparative
Expenses for short-term Lease with right-of-use assets recognized
leases and leases of
Types of assets low-value assets with Lease expenses paid
Lessors
leased simplified approach and (excluding variable Increased Interest
variable lease payments lease payments not principal of
expenses
not included in the included in the lease
recognized
measurement of lease measurement of lease liabilities
liabilities liabilities)
Foshan Shunde Office
District Yinghai building 20952.38 1258782.48 84848.59
Investment Co. Ltd. parking space
Shenzhen Infore
Office
Smart Technology 695812.82
building
Co. Ltd.
3. Related party guarantees
(1) The Company and its subsidiaries did not act as guarantors in the current period.
(2) There were no cases where related parties not brought into the consolidation scope provided guarantees for the
Company and its subsidiaries in the current period.
4. Call loans between related parties
Commencement Maturity
Related parties Amount Remarks
date date
Call loans to related
parties
Foshan Shunhe
January 25 April 3 The Company transferred all of the equity of
Environmental 389072490.42
2024 2024 Foshan Shunhe Environmental Protection Co.
Protection Co. Ltd. Ltd. in February 2024. As of the equity transfer
249Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Commencement Maturity
Related parties Amount Remarks
date date
date the outstanding intercompany balances and
loans totaled 389072490.42 yuan which
passively formed financial assistance.According to the equity transfer agreement
signed by both parties interest will be charged
based on the benchmark loan rate during the
same period until the actual repayment. As of
April 3 2024 the entire amount has been fully
repaid.
5. Temporary call loans between related parties
In 2024 Infore Group lent temporary funds to the Company and its subsidiaries totaling 1.30 billion yuan which
were usually returned within one working day. Therefore the two parties have not settled the interest on the funds
occupied.
6. Key management's emoluments
Current period Preceding period
Items
cumulative comparative
Key management's emoluments 7771307.53 7022866.00
(III) Balances due to or from related parties
1. Balances due from related parties
Closing balance Opening balance
Items Related parties
Provision for bad Provision for
Book balance Book balance
debts bad debts
Guangdong Tianshu New
130800778.19104640622.55189921071.3956976321.42
Energy Technology Co. Ltd.Guangdong Liangke
Environmental Engineering 22881300.00 374065.00
Co. Ltd.Shantou Chaoyang District
Zoomlion Ruikang
5743718.141694349.904048556.311185488.39
Environmental Sanitation
Accounts
Service Co. Ltd. receivable
Taizhou Jinzhong
Environmental Industry Co. 5236554.50 261827.73 5934700.00 296735.00
Ltd.Guangdong Ferries New
5126710.80256335.5436921977.001846098.85
Energy Technology Co. Ltd.Zoomlion Heavy Industry
2849505.11339936.131150774.01237645.17
Company
250Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items Related parties
Provision for bad Provision for
Book balance Book balance
debts bad debts
Guangdong Yingtong Zhilian
1906958.0095347.90
Digital Technology Co. Ltd.Guangxi Zoomlion Guilv
Urban Environmental Service 1889210.92 566763.28 1889210.92 188921.09
Co. Ltd.Guangdong Bomei Property
1503411.1276320.56876777.7743838.89
Service Co. Ltd.Guangdong Shunkong
Environmental Investment 643515.71 321757.86 4108567.88 1696739.48
Co. Ltd.Shantou Zoomlion Ruikang
Environmental Sanitation 91166.00 5808.30 77715.00 3885.75
Service Co. Ltd.Guangdong Weiqi Electrical
43161070.83647416.06
Materials Co. Ltd.Liaoning Donggang Magnet
40963666.44614455.00
Wire Co. Ltd.Anhui Weiqi Electrical
21157622.95317364.34
Materials Co. Ltd.Gucheng Yinglian Urban
Environmental Service Co. 2045755.42 102287.77
Ltd.Guangdong Welling Motor
85215.054260.75
Manufacturing Co. Ltd.Guangdong Midea HVAC
31910.001595.50
Equipment Co. Ltd.Subtotal 178672828.49 108633134.75 352374590.97 64163053.46
Guangdong Ferries New
2903986.83
Energy Technology Co. Ltd.Receivables Zoomlion Heavy Industry
1026000.00600000.00
financing Company
Guangdong Tianshu New
3776800.00
Energy Technology Co. Ltd.Subtotal 3929986.83 4376800.00
Zoomlion Heavy Industry
113402.41155660.67
Company
Advances
paid
Guangzhou Huayi
330000.0040800.00
International Aution Co. Ltd.
251Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items Related parties
Provision for bad Provision for
Book balance Book balance
debts bad debts
Gucheng Yinglian Urban
Environmental Service Co. 500000.00
Ltd.Subtotal 443402.41 696460.67
Foshan Shunde District
205228.40164182.72205228.40102614.20
Yinghai Investment Co. Ltd.Gucheng Yinglian Urban
Environmental Service Co. 2739525.00 136976.25
Ltd.Guangdong Shunkong
Environmental Investment 1730000.00 1730000.00
Co. Ltd.Other
receivables
Shantou Chaoyang District
Zoomlion Ruikang
838613.9141930.70
Environmental Sanitation
Service Co. Ltd.Guangzhou Huayi
327600.0016380.00
International Aution Co. Ltd.Anhui Meizhi Refrigeration
5000.00250.00
Equipment Co. Ltd.Subtotal 205228.40 164182.72 5845967.31 2028151.15
Zoomlion Heavy Industry
177180.009084.0022500.001125.00
Company
Guangdong Liangke
Contract Environmental Engineering 125900.00 6295.00
assets and Co. Ltd.other non-
current assets Guangdong Welling Motor
22900.002290.00
Manufacturing Co. Ltd.Guangdong Midea HVAC
31800.003180.00
Equipment Co. Ltd.Subtotal 325980.00 17669.00 54300.00 4305.00
Guangdong Weiqi Electrical
68481000.001027215.00
Materials Co. Ltd.Long-term
receivables Anhui Weiqi Electrical
23892008.33358380.12
and non- Materials Co. Ltd.current assets
due within Shantou Chaoyang District
one year Zoomlion Ruikang 7369548.45 3469063.65 7369548.45 1995153.96
Environmental Sanitation
Service Co. Ltd.
252Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Closing balance Opening balance
Items Related parties
Provision for bad Provision for
Book balance Book balance
debts bad debts
Shantou Zoomlion Ruikang
Environmental Sanitation 3456000.00 1900800.00 3456000.00 1342250.00
Service Co. Ltd.Guangdong Tianshu New
5037500.001511250.00
Energy Technology Co. Ltd.Subtotal 103198556.78 6755458.77 15863048.45 4848653.96
2. Balances due to related parties
Items Related parties Closing balance Opening balance
Zoomlion Heavy Industry Company 31964065.54 33784532.87
Guangdong Yingtong Zhilian Digital Technology
4409651.85
Co. Ltd.Guangdong Tianshu New Energy Technology
1091820.573737470.40
Co. Ltd.Tengine Innovation (Beijing) Monitoring
816441.072963838.75
Instrument Co. Ltd.Midea Group Co. Ltd. 587507.93 587507.93
Accounts payable
Foshan Shunde District Midea Hotel
22848.9122848.91
Management Co. Ltd.Guangdong Ferries New Energy Technology Co.
2050.70519697.82
Ltd.Guangzhou Huayi International Aution Co. Ltd. 16113.36 327600.00
Guangdong Shunkong Environmental Investment
585700.00
Co. Ltd.Changsha Cowa Zoomlion Intelligent
26733.52
Technology Co. Ltd.Subtotal 38910499.93 42555930.20
Zoomlion Heavy Industry Company 4214500.00 51685972.00
Changsha Cowa Zoomlion Intelligent
471035.00
Notes payable Technology Co. Ltd.Guangdong Tianshu New Energy Technology
252000.00
Co. Ltd.Subtotal 4214500.00 52409007.00
Guangxi Zoomlion Guilv Urban Environmental
147964.60
Service Co. Ltd.Contract liabilities
Foshan Shunde Yuanyi Water Environmental
52089.12
Protection Co. Ltd.
253Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Related parties Closing balance Opening balance
Guangdong Meizhi Refrigeration Equipment Co.
800.00
Ltd.Zoomlion Heavy Industry Company 101061.95
Guangdong Liangke Environmental Engineering
987079.70
Co. Ltd.Guangdong Tianshu New Energy Technology
13296.46
Co. Ltd.Subtotal 200853.72 1101438.11
Guangxi Zoomlion Guilv Urban Environmental
1555315.331525315.33
Service Co. Ltd.Shenzhen Infore Smart Technology Co. Ltd. 470381.58
Zoomlion Heavy Industry Company 67759.20 68259.20
Tengine Innovation (Beijing) Monitoring
50000.0050000.00
Instrument Co. Ltd.Foshan Shunde District Midea Hotel
10664.00
Management Co. Ltd.Guangdong Bomei Property Service Co. Ltd. 5000.00 5000.00
Other payables Guangdong Tianshu New Energy Technology
2700.002700.00
Co. Ltd.Shenzhen Yingfeng Heyun Management Co.
1725.00
Ltd.Hong Kong Investment Company 32958498.54
Gucheng Yinglian Urban Environmental Service
3480000.00
Co. Ltd.Taizhou Jinzhong Environmental Industry Co.
1545898.65
Ltd.Yichun Yinglian Urban Environmental Service
63965.82
Co. Ltd.Subtotal 2163545.11 39699637.54
Lease liabilities
and non-current Foshan Shunde District Yinghai Investment Co.
630620.961845892.92
liabilities due Ltd.within one year
Subtotal 630620.96 1845892.92
XII. Commitments and Contingencies
(I) Significant commitments
254Infore Environment Technology Group Co. Ltd. 2024 Annual Report
As of December 31 2024 the Company has no significant commitments to be disclosed.(II) Contingencies
Contingent liabilities incurred by providing debt guarantees for other entities and the financial effect
1. Please refer to section XI of notes to the financial statements for details on guarantees provided by the
Company to related parties.
2. Guarantees provided by the Company and its subsidiaries to non-related parties
(1) Certain customers of the Company use working capital loans provided by banks to finance their purchase.
According to the arrangement of the agreement the Company provides guarantees for such transactions.Meanwhile the actual controller of the borrower provides a joint and several liability guarantee for the full
amount of loans. As of December 31 2024 the Company's maximum exposure to these guarantees is
71091464.57 yuan.
(2) Certain customers of the Company use finance lease services provided by third-party finance lease companies
to finance their purchase from the Company. According to the arrangement of the agreement the Company
provides guarantees for third-party finance lease companies. If customers default the Company will be required to
compensate the third-party finance lease companies for the lease payment owed by customers. Meanwhile the
Company has the right to take back and sell the machinery that is the subject of the lease and keep any sales
income exceeding the balance of the guarantee payment to the lease company. As of December 31 2024 the
Company's maximum exposure to these guarantees is 33885480.68 yuan.XIII. Events after the Balance Sheet Date
(I) Significant non-adjusting events
The Company has no non-adjusting events after the balance sheet date to be disclosed.(II) Profit distribution after the balance sheet date
Profit or dividend planned to be distributed 598551998.69
Profit or dividend approved to be distributed
According to the “Profit Distribution Plan of 2024” deliberated and approved by the tenth meeting of the tenth
session of the Board of Directors on April 24 2025 the Company intends to distribute cash dividends of 1.89
yuan (tax inclusive) per 10 shares based on the current total share capital of 3166941792 shares (net of shares in
the Company's special account for repurchase) with cash dividends distributed totaling 598551998.69 yuan. This
plan is still subject to review and approval by the Company's shareholders' meeting.XIV. Other Significant Events
(I) Segment information
255Infore Environment Technology Group Co. Ltd. 2024 Annual Report
1. Identification basis for reportable segments
Reportable segments are identified according to the structure of the Company's internal organization management
requirements and internal reporting system and based on product segments. Assessments are respectively
performed on the operation performance of smart city services and other businesses. Assets and liabilities shared
by different segments are allocated among segments proportionate to their respective sizes.
2. Financial information of reportable segments
Product segments
Items Smart city services Other businesses Inter-segment offsetting Total
Operating revenue 11638743398.78 1537058561.92 57907636.75 13117894323.95
Operating cost 9154750843.86 1170212756.84 63407805.35 10261555795.35
Total assets 18473127208.12 29109163182.92 17945960053.17 29636330337.87
Total liabilities 9730486620.12 8249637199.77 6315757637.29 11664366182.60
(II) PPP contracts
Main PPP project contracts are listed as follows:
Contract
Items Contracting authority Operation model
signing date
PPP Project of Resource Liling City Urban Management
November DBOT&
Recovery of Liling Urban and and Administrative Law
2018
Rural Domestic Waste Enforcement Bureau ROT
Shenzhen Bao'an District Urban
Xin'an Fuyong and Fuhai Streets
Management and
Sanitation Integration PPP June 2020 BOT
Comprehensive Law
Project
Enforcement Bureau
Lianjiang City Urban
Lianjiang Domestic Waste
Management and
Incineration Power Generation January 2012 BOT
Comprehensive Law
Plant Project
Enforcement Bureau
Xiantao City Urban
Xiantao Circular Economy
Management and Law May 2019 BOT&ROT
Industrial Park PPP Project
Enforcement Bureau
(Continued)
Items Franchise period
PPP Project of Resource The cooperation period is 25 years with details as follows: the
Recovery of Liling Urban and construction period for Liling Urban and Rural Domestic Waste Collection
Rural Domestic Waste and Transportation System Construction Project is 1 year and the
construction period for Liling Urban and Rural Domestic Waste
256Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Franchise period
Pretreatment and Incineration Power Generation Project is 2 years both
calculated from the date of establishment of the project company. The
operation period for Liling Domestic Waste Harmless Disposal Site Project
is 25 years starting from the effective date of the project contract.Xin'an Fuyong and Fuhai Streets The operation period is 15 years (including 1 year of construction and
Sanitation Integration PPP Project equipment configuration period)
Lianjiang Domestic Waste
Incineration Power Generation 30 years (calculated from the date of commercial operation)
Plant Project
Xiantao Circular Economy
30 years (including 1 year of construction period)
Industrial Park PPP Project
(III) Other significant transactions and events that may be influential for investors in decision-making
1. Equity pledge of controlling shareholders actual controllers and persons acting in concert
As of December 31 2024 the Company's controlling shareholder actual controller and persons acting in concert
held a total of 1441121828 shares of the Company accounting for 45.51% of the Company's total share capital
of which 571660000 shares were pledged accounting for 39.67% of its holdings of the Company and 18.05%
of the Company's total share capital. Details are as follows:
Number of Initial Repurchase
Shareholders Holder of the pledge Remarks
shares pledged transaction date date
China Construction Bank
December 28
Infore Group Corporation Limited 100000000 Long-term Financing
2023
Foshan Branch
China Construction Bank
Financing for
Infore Group Corporation Limited 64461047 August 16 2024 Long-term
M&A
Foshan Branch
Ningbo Infore Asset China Construction Bank
Financing for
Management Co. Corporation Limited 97348953 March 29 2024 Long-term
M&A
Ltd. Foshan Branch
Ningbo Infore Asset
Industrial Bank Co. Ltd. Financing for
Management Co. 309850000 April 25 2024 Long-term
Foshan Branch M&A
Ltd.Total 571660000
2. Recognition of performance compensation and indemnity
Pursuant to the “Proposal on Signing the Equity Transfer Agreement and Cooperation Framework Agreement”
deliberated and approved by the 13th interim meeting of the seventh session of the Board of Directors of the
Company dated October 14 2015 the Company signed the “Signing of Equity Transfer Agreement” and the
“Cooperation Framework Agreement of Shenzhen Green Oriental Environmental Protection Co. Ltd.” (the
“Cooperation Framework Agreement”) which stipulated that the Company will acquire 51.00% of equity of
257Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Green Oriental Company held by Shenzhen Feima Investment Co. Ltd. and Shenzhen Qianhai Chima
Environmental Protection Investment Co. Ltd. at the consideration of 100548976.00 yuan of which
96605878.90 yuan is the consideration for the 49.00% of equity of Green Oriental Company held by Shenzhen
Feima Investment Co. Ltd. and 3943097.10 yuan is the consideration for the 2.00% of equity of Green Oriental
Company held by Shenzhen Qianhai Chima Environmental Protection Investment Co. Ltd.According to the Cooperation Framework Agreement Hong Kong Investment Company and Zheng Weixian made
commitments on the business performance of Green Oriental Company in the next four years as follows: (1) from
January 1 2016 to December 31 2019 the total net profit realized by the four project companies includingLianjiang Company Xiantao Company Funan Company and Shouxian Company (collectively the “four projectcompanies”) shall not be less than 120 million yuan. Otherwise Hong Kong Investment Company and Zheng
Weixian shall compensate the Company based on the difference between the accumulated committed net profit
and the accumulated realized net profit multiplied by 60% which should be paid in cash. If the cash compensation
is insufficient they will compensate the Company with the equity of Green Oriental Company held by Hong
Kong Investment Company; (2) within 24 months after the completion of registration of capital increase at the
administration for market regulation Hong Kong Investment Company shall transfer its Luyi Project and Puyang
Project to Green Oriental Company and smoothly start the construction as scheduled according to the law. If the
projects cannot be transferred or partially transferred unable to be transferred or are withdrawn and cancelled by
the government within the above period Hong Kong Investment Company and Zheng Weixian will pay the lump
sum indemnity of not less than 5.00 million yuan for each project to the Company; (3) before December 31 2018
the Poyang Project and the Yangxin Project must officially start construction and obtain approval procedures. If
the construction cannot be started or the projects are withdrawn by the government Hong Kong Investment
Company and Zheng Weixian will pay the indemnity of not less than 10.00 million yuan for each project to the
Company; (4) before December 31 2020 Jiujiang Green Oriental Renewable Energy Co. Ltd. must start
construction and obtain approval procedures. If the construction cannot be started or it is withdrawn by the
government Hong Kong Investment Company and Zheng Weixian will pay the indemnity of not less than 5.00
million yuan for each project to the Company; (5) from January 1 2016 to December 31 2019 for the new waste
incineration power generation BOT agreement (subject to the signed franchise agreement) signed by Green
Oriental Company the total daily processing capacity shall be not less than 6500 tons (the daily processing
capacity of a single project is not less than 500 tons at least one of which must be more than 2000 tons). If the
above conditions are not met Hong Kong Investment Company and Zheng Weixian will compensate Green
Oriental Company 5 million yuan for every 500 tons less than the daily processing capacity.In addition in 2015 the Company and Hong Kong Investment Company entered into the equity pledge contract
stipulating that Hong Kong Investment Company would pledge 49% of equity of Green Oriental Company for the
debt portfolio worth 340 million yuan as agreed in the Cooperation Framework Agreement. The equity pledge was
processed by both parties in the same year.As of October 31 2015 the Company has paid all the equity transfer payments and Green Oriental Company has
been brought into the consolidation scope since the end of October 2015. In April 2016 the Company continued
258Infore Environment Technology Group Co. Ltd. 2024 Annual Report
to acquire 19.00% of equity of Green Oriental Company through capital increase of 86.67 million yuan and finally
held 70% of equity of Green Oriental Company. On April 23 2020 Pan-China Certified Public Accountants LLP
issued an assurance report numbered PCCPAAR [2020] 3439 which stated that: the audited net profits of the four
project companies for the year ended December 31 2016 2017 2018 and 2019 (the lower of net profits before
and after deducting non-recurring profit or loss) amounted to 2.16 million yuan -24.42 million yuan -19.19
million yuan and -0.63 million yuan respectively; the accumulated net profit amounted to -42.09 million yuan
which was 162.09 million yuan less than the amount of performance commitment and the committed net profits
from 2016 to 2019 were not achieved.In order to promote the implementation of performance compensation and indemnity the Company filed a lawsuit
with the Intermediate People's Court of Foshan City Guangdong Province requiring Hong Kong Investment
Company and Zheng Weixian to pay indemnity and compensation to the Company in accordance with the
Cooperation Framework Agreement.On January 13 2021 the Intermediate People's Court of Foshan City Guangdong Province made a first-instance
judgment requesting Hong Kong Investment Company and Zheng Weixian to pay the indemnity of 113.46
million yuan for the unfulfilled performance commitment i.e. [120 million yuan - (-42.09 million yuan)]*70%;
pay the compensation of 50.00 million yuan for the unfinished daily processing volume; at the same time the
court supported the Company to enjoy the priority of compensation within 200 million yuan for the 30% of equity
of Green Oriental Company held by Hong Kong Investment Company.On January 29 2021 Hong Kong Investment Company and Zheng Weixian appealed to the Higher People's Court
of Guangdong Province.On November 2 2021 the Higher People's Court of Guangdong Province held a public hearing of the second-
instance case.On July 18 2022 the Higher People's Court of Guangdong Province made the final judgement of the second
instance ruling that Hong Kong Investment Company and Zheng Weixian shall pay the Company 113.46 million
yuan for the unfulfilled performance commitment and supported the Company to enjoy the priority of
compensation within 200 million yuan for the 30% of equity of Green Oriental Company held by Hong Kong
Investment Company.The Company has applied to the Intermediate People's Court of Foshan City Guangdong Province for compulsory
enforcement and received the notice of acceptance of the enforcement case numbered (2022) Yue 06 Zhi 1500 on
August 4 2022. On January 26 2024 the Intermediate People's Court of Foshan City Guangdong Province
conducted a judicial auction of 30% equity of Green Oriental Company which was won by the Company with a
bid of 73059000 yuan. On February 18 2024 the Intermediate People's Court of Foshan City Guangdong
Province transferred the enforcement payment of 72403790.58 yuan to the Company.On March 29 2024 the Company received the Execution Ruling numbered (2022) Yue 06 Zhi 1500-3 issued
by the Intermediate People's Court of Foshan City Guangdong Province. During the enforcement process
259Infore Environment Technology Group Co. Ltd. 2024 Annual Report
conducted by the Intermediate People's Court of Foshan City Guangdong Province in addition to executing
the auction proceeds of the 30% of equity of Green Oriental Company held by Green Oriental Investment
Holdings Co. Ltd. it also executed a debt claim amount of 33137144.38 yuan and transferred deposits of
26448.58 yuan.
In summary through the above enforcement procedure the Company received a total enforcement amount of
106222592.96 yuan while paid execution fees for this case of 181658.00 yuan equity appraisal fees of
500700.00 yuan online auction service fees of 5000.00 yuan and property right transfer taxes for auctioned
equity of Green Oriental Company of 6305900.00 yuan. Therefore the Company actually received
compensation of 99229334.96 yuan.XV. Notes to Items of Parent Company Financial Statements
(I) Notes to items of parent company balance sheet
1. Other receivables
(1) Details
Items Closing balance Opening balance
Dividend receivable 176000000.00
Other receivables 4109183327.45 4294847162.66
Total 4109183327.45 4470847162.66
(2) Dividend receivable
Items Closing balance Opening balance
Foshan Shunhe Environmental Protection Co. Ltd. 176000000.00
Subtotal 176000000.00
(3) Other receivables
1) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Temporary advance payment receivable 4121058266.15 4189643502.15
Performance commitment compensation 14231285.04 113460620.00
Security deposits 493673.40 493673.40
260Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Nature of receivables Closing balance Opening balance
Book balance 4135783224.59 4303597795.55
Less: Provision for bad debts 26599897.14 8750632.89
Carrying amount 4109183327.45 4294847162.66
2) Age analysis
Ages Closing balance Opening balance
1-180 days 4105590896.71 4163468425.70
180-365 days 10580672.99
1-2 years 4552522.56 12685613.80
2-3 years 9892112.01 113790001.49
3-4 years 14424611.74 2779408.17
4-5 years 1029408.17 205228.40
Over 5 years 293673.40 88445.00
Book balance 4135783224.59 4303597795.55
Less: Provision for bad debts 26599897.14 8750632.89
Carrying amount 4109183327.45 4294847162.66
3) Provision for bad debts
a. Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision made on
23938325.720.5823938325.72100.00
an individual basis
Receivables with provision made on
4111844898.8799.422661571.420.064109183327.45
a collective basis
Subtotal 4135783224.59 100.00 26599897.14 0.64 4109183327.45
(Continued)
261Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Opening balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision made on
an individual basis
Receivables with provision made on
4303597795.55100.008750632.890.204294847162.66
a collective basis
Subtotal 4303597795.55 100.00 8750632.89 0.20 4294847162.66
b. Other receivables with provision made on a collective basis
Closing balance
Portfolios Provision for bad Provision proportion
Book balance
debts (%)
Portfolio grouped with balances due
from related parties within the 4100908914.52
consolidation scope
Portfolio grouped with buyer's credit 8859765.36 1751965.61 19.77
Portfolio grouped with ages 2076218.99 909605.81 43.81
Including: 1-180 days 296956.85
1-2 years 77782.54 7778.25 10.00
2-3 years 185071.33 55521.40 30.00
3-5 years 1222734.87 611367.44 50.00
Over 5 years 293673.40 234938.72 80.00
Subtotal 4111844898.87 2661571.42 0.06
4) Changes in provision for bad debts
Stage 1 Stage 2 Stage 3
Items 12?month Lifetime expected Lifetime expected Subtotal
expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
Opening balance 20382.26 31569.08 8698681.55 8750632.89
Opening balance in
——————
the current period
262Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Stage 1 Stage 2 Stage 3
Items 12?month Lifetime expected Lifetime expected Subtotal
expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
--Transferred to
-1555.651555.65
stage 2
--Transferred to
-18507.1218507.12
stage 3
--Reversed to stage
2
--Reversed to stage
1
Provision made in
-18826.61-6839.3617874930.2217849264.25
the current period
Provision recovered
or reversed in the
current period
Provision written
off in the current
period
Other changes
Closing balance 7778.25 26592118.89 26599897.14
Provision proportion
10.0077.080.64
(%)
Division basis for three stages: Ages of other receivables.
5) Details of the top 5 debtors with largest balances
Proportion to the total Provision for bad
Debtors Nature of receivables Closing book balance Ages balance of other debts at the
receivables (%) balance sheet date
Temporary advance
No. 1 846994343.85 1-180 days 20.48
payment receivable
Temporary advance
No. 2 379735552.13 1-180 days 9.18
payment receivable
Temporary advance
No. 3 351650761.95 1-180 days 8.50
payment receivable
Temporary advance
No. 4 301171830.26 1-180 days 7.28
payment receivable
263Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Proportion to the total Provision for bad
Debtors Nature of receivables Closing book balance Ages balance of other debts at the
receivables (%) balance sheet date
Temporary advance
No. 5 230861568.26 1-180 days 5.58
payment receivable
Subtotal 2110414056.45 51.02
2. Long-term equity investments
(1) Details
Closing balance Opening balance
Items Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Investments
in 16568587435.04 16568587435.04 16597592874.70 16597592874.70
subsidiaries
Investments
in associates
397595202.76397595202.76372846476.68372846476.68
and joint
ventures
Total 16966182637.80 16966182637.80 16970439351.38 16970439351.38
(2) Investments in subsidiaries
Opening balance Increase/Decrease Closing balance
Investees Provision Provision Provision
Investments Investments
Carrying amount for for Others Carrying amount for
increased decreased
impairment impairment impairment
Infore Water
Environment
113055998.06113055998.06
Investment Co.Ltd.Foshan Shunhe
Environmental
250064088.09250064088.09
Protection Co.Ltd.Infore
Technology 134352901.63 134352901.63
Company
Infore Zoomlion
City
15300000.0015300000.00
Environmental
Service Co. Ltd.Changsha
Zhongbiao
5270000.005270000.00
Environmental
Industry Co. Ltd.
264Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Opening balance Increase/Decrease Closing balance
Investees Provision Provision Provision
Investments Investments
Carrying amount for for Others Carrying amount for
increased decreased
impairment impairment impairment
Ningbo Infore
Finance Lease 356322974.66 148987440.00 505310414.66
Co. Ltd.Huaqingyuan
987791.57987791.57
Company
Zoomlion
Environmental 15260177431.68 15260177431.68
Company
Shangfeng
Industrial 200198801.05 200198801.05
Company
Green Oriental
191192917.5073059000.00264251917.50
Company
Xiantao Yinghe
Environmental
70418640.0070418640.00
Protection Co.Ltd.Lianjiang
51330.4651330.46
Company
Guangdong
Infore Intelligent
Cleaning 200000.00 200000.00
Technology Co.Ltd.Subtotal 16597592874.70 222046440.00 251051879.66 16568587435.04
(3) Investments in associates and joint ventures
Opening balance Increase/Decrease
Investment
Adjustment in
Investees Provision income
Investments Investments other
Carrying amount for recognized
increased decreased comprehensive
impairment under equity
income
method
Associates
Shenzhen Yingmei City
28206.3432.15
Housekeeper Co. Ltd.Tengine Innovation
(Beijing) Monitoring 27809668.75 -2456331.32
Instrument Co. Ltd.Guangdong Shunkong
Environmental 243820301.05 38775000.00
Investment Co. Ltd.China Urban Institute
(Beijing) Environmental 101188300.54 3672302.81
Technology Co. Ltd.
265Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Opening balance Increase/Decrease
Investment
Adjustment in
Investees Provision income
Investments Investments other
Carrying amount for recognized
increased decreased comprehensive
impairment under equity
income
method
Total 372846476.68 39991003.64
(Continued)
Increase/Decrease Closing balance
Investees Changes Cash dividend/
Provision for Carrying Provision for
in other Profit declared for Others
impairment amount impairment
equity distribution
Associates
Shenzhen Yingmei City
28238.49
Housekeeper Co. Ltd.Tengine Innovation
(Beijing) Monitoring 25353337.43
Instrument Co. Ltd.Guangdong Shunkong
Environmental Investment 13667277.56 268928023.49
Co. Ltd.China Urban Institute
(Beijing) Environmental 1575000.00 103285603.35
Technology Co. Ltd.Total 15242277.56 397595202.76
(II) Notes to items of the parent company income statement
1. Operating revenue/Operating cost
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 45108.06 45108.06
Other operations 86987.42 111690.97
Total 86987.42 156799.03 45108.06
2. Investment income
266Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period Preceding period
Items
cumulative comparative
Investment income from long-term equity investments
39991003.6432220248.17
under equity method
Investment income from long-term equity investments
400000000.00526000000.00
under cost method
Investment income from disposal of long-term equity
7500324.8769138964.19
investments
Investment income from financial products 4582409.62
Others 432250.00 408044.00
Total 452505988.13 627767256.36
XVI. Other Supplementary Information
(I) Non-recurring profit or loss
Schedule of non-recurring profit or loss
Items Amount Remarks
Gains on disposal of non-current assets including write-off
-47196844.86
of provision for impairment
Government grants included in profit or loss (excluding
those closely related to operating activities of the Company
satisfying government policies and regulations enjoyed 55557305.65
based on certain standards and continuously affecting gains
or losses of the Company)
Gains on changes in fair value of financial assets and
financial liabilities held by non-financial enterprises and
gains from disposal of financial assets and financial 17102059.94
liabilities excluding those arising from hedging business
related to operating activities
Fund possession charge from non-financial entities and
6113509.25
included in profit or loss
Investment income
Gains on assets consigned to the third party for investment from financial products
24183474.63
or management was 24183474.63
yuan.Gains on designated loans
Losses on assets incurred due to force majeure such as
267Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Items Amount Remarks
natural disasters
Reversed provision for impairment of receivables based on
10424873.13
impairment testing on an individual basis
Gains on acquisition of subsidiaries joint ventures and
associates due to the surplus of acquisition-date fair value of
net identifiable assets in acquiree over the acquisition cost
Net profit on subsidiaries acquired through business
combination under common control from the beginning of
the period to the combination date
Gains on non-cash assets exchange
Gains on debt restructuring -2318575.60
One-off expenses incurred due to the discontinuation of
relevant operating activities such as severance payments
One-off effects on profit or loss due to amendments of laws
and regulations on taxation accounting etc.Share-based payments recognized at one time due to
cancellation or modification of equity incentive plan
Gains arising from changes in the fair value of employee
benefits payable after the vesting date for cash-settled
share-based payment
Gains on changes in fair value of investment properties with
subsequent measurement using the fair value model
Gains on transactions with unfair value
Contingent gains on non-operating activities
Management charges for consigned operations
Other non-operating revenue or expenditures -31994184.64
Other profit or loss satisfying the definition of non-
recurring profit or loss
Subtotal 31871617.50
Less: Enterprise income tax affected 12036883.47
Non-controlling interest affected (after tax) 8497198.56
Net non-recurring profit or loss attributable to shareholders
11337535.47
of the parent company
268Infore Environment Technology Group Co. Ltd. 2024 Annual Report
(II) ROE and EPS
1. Details
Weighted average ROE EPS (yuan/share)
Profit of the reporting period
(%) Basic EPS Diluted EPS
Net profit attributable to
2.940.160.16
shareholders of ordinary shares
Net profit attributable to
shareholders of ordinary shares
2.880.160.16
after deducting non-recurring profit
or loss
2. Calculation process of weighted average ROE
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary shares A 513514275.54
Non-recurring profit or loss B 11337535.47
Net profit attributable to shareholders of ordinary shares
C=A-B 502176740.07
after deducting non-recurring profit or loss
Opening balance of net assets attributable to shareholders
D 17437509156.73
of ordinary shares
Net assets attributable to shareholders of ordinary shares
increased due to offering of new shares or conversion of E 3739.36
debts into shares
Number of months counting from the next month when the
F 6
net assets were increased to the end of the reporting period
Net assets attributable to shareholders of ordinary shares
decreased due to share repurchase or cash dividends G 395867692.25
appropriation
Number of months counting from the next month when the
H 7
net assets were decreased to the end of the reporting period
Net assets increased due to translation reserves I1 954265.16
Number of months counting from the next
month when the net assets were increased or J1 6
Others
decreased to the end of the reporting period
Net assets increased due to redemption of
I2 -30.27
convertible bonds
269Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period
Items Symbols
cumulative
Number of months counting from the next
month when the net assets were increased or J2
decreased to the end of the reporting period
Net assets increased due to acquisition of non-
I3 -22598089.14
controlling interest
Number of months counting from the next
month when the net assets were increased or J3 10
decreased to the end of the reporting period
Net assets increased due to changes in other
equity instrument investments of Shenzhen
I4 -14070000.00
Infore Environmental Protection Industry
M&A Fund
Number of months counting from the next
month when the net assets were increased or J4 6
decreased to the end of the reporting period
Number of months in the reporting period K 12
L= D+A/2+ E×F/K-
Weighted average net assets 17437955735.33
G×H/K±I×J/K
Weighted average ROE M=A/L 2.94%
Weighted average ROE after deducting non-recurring
N=C/L 2.88%
profit or loss
3. Calculation process of basic EPS and diluted EPS
(1) Calculation process of basic EPS
Current period
Items Symbols
cumulative
Net profit attributable to shareholders of ordinary shares A 513514275.54
Non-recurring profit or loss B 11337535.47
Net profit attributable to shareholders of ordinary shares after
C=A-B 502176740.07
deducting non-recurring profit or loss
Opening balance of total shares D 3179506670
Number of shares increased due to conversion of reserve to
E
share capital or share dividend appropriation
Number of shares increased due to offering of new shares or
F 504
conversion of debts into shares
270Infore Environment Technology Group Co. Ltd. 2024 Annual Report
Current period
Items Symbols
cumulative
Number of months counting from the next month when the
G 6
shares were increased to the end of the reporting period
Number of shares decreased due to share repurchase H 12565382
Number of months counting from the next month when the
I 12
shares were decreased to the end of the reporting period
Number of shares decreased in the reporting period J
Number of months in the reporting period K 12
L=D+E+F×G/K-
Weighted average of outstanding ordinary shares 3166941540
H×I/K-J
Basic EPS M=A/L 0.16
Basic EPS after deducting non-recurring profit or loss N=C/L 0.16
(2) Calculation process of diluted EPS
The calculation process of diluted EPS is the same as that of basic EPS.Infore Environment Technology Group Co. Ltd.April 24 2025
271
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