China Boqi Environmental : ANNOUNCEMENT OF THE ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

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China Boqi Environmental (Holding) Co., Ltd.

ʕ਷௹փᐑڭ€છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2377)

ANNOUNCEMENT OF THE ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

ANNUAL RESULTS HIGHLIGHTS

For the year ended 31 December 2021, the revenue of the Group amounted to RMB2,092 million, representing an increase of 27.1% as compared with last year.

For the year ended 31 December 2021, the gross profit of the Group amounted to RMB388 million and the gross profit margin of the Group was 18.5%, representing an increase of 14.1% and a decrease of 2.2 percentage points as compared with last year, respectively.

For the year ended 31 December 2021, the net profit of the Group amounted to RMB348 million with a net profit margin of 16.6%. Excluding gains on fair value changes in financial asset at fair value through profit or loss, the Group's net profit was RMB242 million, representing an increase of 16.9% as compared with last year.

The Board has recommended the payment of HK$7.40 cents per ordinary share as final dividend for the year ended 31 December 2021 (31 December 2020: HK$7.40 cents).

The board (the "Board") of directors (the "Directors") of China Boqi Environmental (Holding) Co., Ltd. (the "Company", together with its subsidiaries collectively referred to as the "Group") is pleased to announce the consolidated annual results of the Group for the year ended 31 December 2021 (the "2021 financial year" or the "Reporting Period"), together with comparative figures for the corresponding period of 2020 (the "2020 financial year").

In this announcement, "we", "us" and "our" refer to the Company and where the context otherwise requires, the Group.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2021

2021	2020
Notes	RMB'000	RMB'000
Revenue	4	2,092,172	1,646,131
Cost of sales and services	(1,704,613)	(1,306,053)
Gross profit	387,559	340,078
Other income and gains	5	151,137	44,500
Other expense and losses	(14,574)	(10,968)
Selling and distribution expenses	(30,189)	(22,352)
Administrative expenses	(89,546)	(79,540)
Research and development expenses	(40,040)	(33,810)
Impairment losses on financial and contract assets	892	(11,633)
Share of profits of associates	30,601	19,337
Finance costs	(9,786)	(9,910)
PROFIT BEFORE TAX	6	386,054	235,702
Income tax expenses	7	(37,652)	(28,309)
PROFIT FOR THE YEAR	348,402	207,393
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR	348,402	207,393

2021	2020
Notes	RMB'000	RMB'000
Profit attributable to:
Owners of the parent	9	348,239	207,608
Non-controlling interests	163	(215)
348,402	207,393
Total comprehensive income attributable to:
Owners of the parent	348,239	207,608
Non-controlling interests	163	(215)
348,402	207,393
EARNINGS PER SHARE ATTRIBUTABLE TO
ORDINARY EQUITY HOLDERS OF THE PARENT
- Basic (RMB)	0.35	0.21
- Diluted (RMB)	0.35	0.21

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of 31 December 2021

2021	2020
Notes	RMB'000	RMB'000
NON-CURRENT ASSETS
Property, plant and equipment	590,267	401,486
Investment properties	10,271	11,079
Goodwill	147,957	-
Other intangible assets	650,714	697,656
Receivables under service concession arrangement	10	316,691	340,038
Investments in associates	80,101	69,952
Long term receivable	45,548	42,620
Contract assets	202,027	21,459
Amounts due from related parties	138,852	139,296
Deferred tax assets	33,158	34,591
Other non-current assets	98,606	42,604
Total non-current assets	2,314,192	1,800,781
CURRENT ASSETS
Receivables under service concession arrangement	10	24,865	27,376
Debt instruments at fair value through
other comprehensive income	284,168	199,501
Inventories	29,549	27,685
Equity instrument at fair value through profit or loss	178,771	45,599
Contract assets	240,308	126,091
Trade receivables	11	885,420	675,852
Prepayments, deposits and other receivables	157,426	217,944
Amounts due from related parties	177,547	132,251
Pledged time deposits and bank balances	142,009	92,904
Cash and cash equivalents	342,958	519,128
Total current assets	2,463,021	2,064,331

2021	2020
Notes	RMB'000	RMB'000
CURRENT LIABILITIES
Trade and bills payables	12	1,136,336	947,781
Other payables, deposits received and accrued expenses	392,200	227,655
Contract liabilities	116,197	71,873
Income tax payable	26,222	25,224
Interest-bearing bank and other borrowings	82,566	15,335
Lease liabilities	3,264	3,879
Amounts due to related parties	15,701	7,606
Total current liabilities	1,772,486	1,299,353
NET CURRENT ASSETS	690,535	764,978
TOTAL ASSETS LESS CURRENT LIABILITIES	3,004,727	2,565,759
NON-CURRENT LIABILITIES
Interest-bearing bank and other borrowings	83,399	63,956
Lease liabilities	35,020	33,871
Deferred tax liabilities	28,942	17,114
Contingent consideration	10,060	-
Long term payable	99,420	-
Total non-current liabilities	256,841	114,941
Net assets	2,747,886	2,450,818
EQUITY
Equity attributable to owners of the parent
Share capital	67	67
Treasury shares	(1)	(1)
Other reserves	2,741,045	2,451,841
2,741,111	2,451,907
Non-controlling interests	6,775	(1,089)
TOTAL EQUITY	2,747,886	2,450,818