| 股票代码：600635 | 股票简称：大众公用 | 编号：临2023-020 | | --- | --- | --- | | 债券代码：143743 | 债券简称：18公用 04 | | | 债券代码：175800 | 债券简称：21 | 公用 | | | 债券简称：23 | 公用 | | | 01 01 | | | 债券代码：138999 | | | 上海大众公用事业（集团）股份有限公司 关于召开 2022 年度暨 2023 年第一季度业绩说明会的 公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 上海大众公用事业 (集团 )股份有限公司（以下简称"公司"）已于 2023 年 3 月 31 日发布公司 2022 年度报告，将于 2023 年 4 月 28 日发布公司 2023 年第 一季度报告，为便于广大投资者更全面深入地了解公司 2022 年度及 2023 年第一 季度的经营成果、财务状况，公司计划于 2023 年 05 月 10 日下午 15:00 -17:00 举行 2022 年度暨 202 ...

Financial Performance - The company reported a total revenue of RMB 1.5 billion for the fiscal year 2022, representing a year-on-year increase of 10%[12]. - Shanghai Gas Group reported a total revenue of RMB 10.5 billion, representing a year-on-year increase of 8%[15]. - Revenue for 2022 was RMB 5,812,621, an increase of 4.03% compared to RMB 5,587,531 in 2021[18]. - The company achieved a net profit of RMB 1.2 billion, which is a 5% increase compared to the previous year[15]. - The company reported a net profit margin of 15% for 2022, maintaining a stable performance amidst market fluctuations[12]. - The net loss attributable to equity holders of the listed company for 2022 was a loss of RMB 332,591, a decrease of 209.64% from a profit of RMB 303,356 in 2021[18]. - The company recorded total revenue of RMB 5,812.62 million, with a net loss attributable to shareholders of RMB 332.59 million[65]. - The piped gas supply segment generated RMB 5,295,315,000, accounting for 91.10% of total revenue, up from 87.17% in 2021[128]. Dividend and Shareholder Information - The total outstanding shares at the end of 2022 were 2,952,434,675, with a proposed cash dividend of RMB0.30 per ten shares, totaling RMB88,573,040.25[6]. - The profit distribution plan is subject to approval at the 2022 AGM, with specific implementation measures to be announced later[6]. - The final dividend declared is RMB0.30 per ten shares for the year ended December 31, 2022[13]. - Individual holders of H shares will have a withholding tax of 10% on dividends distributed[151]. - Non-resident enterprise holders of H shares will also face a 10% withholding tax on dividends[152]. - The AGM is scheduled for June 28, 2023, with the register of members closing from July 4 to July 7, 2023[154]. - The final dividend payment is expected to be made on or before August 28, 2023[150]. Audit and Compliance - The company received an unqualified audit report from BDO Limited, confirming the accuracy and completeness of the financial report[6]. - The Company has complied with all material aspects of relevant laws and regulations impacting its business for the year ended December 31, 2022[144]. - The Company has implemented compliance procedures to adhere to significant laws and regulations, including the Company Law and Securities Law of the PRC[148]. - The auditor confirmed that the disclosed continuing connected transactions were approved by the Board and complied with relevant agreements[190]. Operational Highlights - User data indicates a growth in active users by 15% year-on-year, reaching 2 million active users by the end of 2022[12]. - The company plans to expand its market presence in the Jiangsu province, targeting a 20% increase in market share by 2025[12]. - New product development includes the launch of a smart utility management system, expected to enhance operational efficiency by 25%[12]. - The company has allocated RMB 200 million for research and development in new technologies for the upcoming fiscal year[12]. - A strategic acquisition of a local competitor is anticipated to be completed by Q3 2023, which is expected to increase overall capacity by 30%[12]. - The company aims for a revenue growth target of 12% for the next fiscal year, driven by new service offerings and market expansion[12]. Risk Management - There were no material risks identified during the reporting period, and potential risks and countermeasures are detailed in the report[8]. - The company has not appropriated funds for non-operating purposes by the controlling shareholder and related parties[8]. - The company has no external guarantees provided in violation of stipulated decision-making procedures[8]. - The company is focusing on investment risk control and improving profitability, emphasizing the management of existing project promotion and exit strategies[37]. Sustainability and Environmental Initiatives - The company is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 30% by 2025[12]. - The company is committed to adhering to environmental protection policies and improving its sewage treatment business to mitigate environmental risks[116]. - Environmental policies are in place to comply with PRC regulations, focusing on reducing greenhouse gas emissions and improving resource efficiency[142]. Strategic Plans and Future Outlook - The company plans to adjust its industrial investment structure to strengthen the public utility sector, particularly in gas and environmental businesses[113]. - In 2023, the company aims to implement the spirit of the 20th National Congress of the CPC, targeting high-quality development while focusing on public utility and financial investment[110]. - The company will enhance its corporate governance structure and performance appraisal mechanisms to ensure stable business development[110]. - The company will continue to improve capital utilization efficiency and effectively control its debt ratio[5]. Challenges and Market Conditions - The company faced significant operational challenges in 2022 due to the global economic slowdown and COVID-19, prompting measures to mitigate impacts on business[65]. - The urban gas industry is experiencing increased competition and regulatory pressure, prompting a shift towards integrated energy service provision[104]. - The financial leasing industry has entered a transformation period since 2020, with companies focusing on serving the real economy and compliance experiencing market share growth[108].

Financial Reporting and Governance - The interim report confirms that the financial statements are true, accurate, and complete, with no material omissions[2]. - The report is unaudited, and all directors attended the board meetings, ensuring collective responsibility for the report's contents[3]. - The report outlines the corporate governance structure, including the roles of the board of directors and the supervisory board[8]. - The corporate governance structure includes a general meeting of shareholders, board of directors, and board of supervisors, ensuring standardized operations[27]. - The audit committee reviewed the interim results announcement and the report as of June 30, 2022[55]. Financial Performance - The company reported a total revenue of RMB 1.2 billion, representing a year-on-year increase of 15%[12]. - Revenue for the first half of 2022 was RMB 3,152,730, showing a slight increase of 0.90% compared to RMB 3,124,641 in the same period last year[16]. - The net profit attributable to shareholders was a loss of RMB 150,732, a significant decrease of 169.52% from a profit of RMB 216,851 in the previous year[16]. - The company reported a loss before income tax expense of RMB 28,760,000 for the first half of 2022, contrasting with a profit of RMB 342,030,000 in the prior year[123]. - The company reported a significant loss on the disposal of financial assets, with dividend income from financial assets at fair value through profit or loss dropping to RMB (107,420,000) in H1 2022 from RMB 42,622,000 in H1 2021[160]. Cash Flow and Liquidity - Net cash flows from operating activities increased by 28.53% to RMB 566,774, compared to RMB 440,995 in the same period last year[16]. - Cash and cash equivalents at the end of the reporting period amounted to RMB 2,018.52 million, representing 8.53% of total assets, with a 73.23% increase from the previous year[38]. - The net cash flows generated from financing activities amounted to RMB 146,882, a decrease from RMB 1,092,708 in the prior year[141]. - The net increase in cash and cash equivalents for the period was RMB 1,434,717, compared to an increase of RMB 1,216,368 in the same period of 2021[141]. Operational Highlights - User data indicated an increase in active users by 20%, reaching a total of 5 million users[12]. - The company is expanding its market presence in Jiangsu province, targeting a 25% market share by 2025[12]. - The company operates in public utility and financial investment sectors, with no material changes in its principal business during the reporting period[19]. - The company operates 9 wastewater treatment plants in Shanghai and Jiangsu with a total capacity of 440,000 tons per day, including 175,000 tons per day from Dazhong Jiading Sewage[21]. Investment and Growth Strategies - Investment in new technology is set at RMB 100 million to improve service delivery and customer experience[12]. - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year[12]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and market reach[12]. - The company aims to reduce operational costs by 5% through process optimization initiatives[12]. Risks and Challenges - There were no material risks identified during the reporting period, and potential risks are detailed in the report[5]. - The company faces risks from fluctuations in domestic natural gas prices, which are influenced by supply and demand dynamics and international gas prices[41]. - The overall economic recovery remains uncertain, adding pressure to the company's gas business operations[41]. - The company is closely monitoring exchange rate fluctuations, particularly the risk of exchange loss due to part of its funds being held in US dollars[44]. Shareholder Information - The total number of issued shares was 2,952,434,675, comprising 2,418,791,675 A Shares and 533,643,000 H Shares[100]. - The top shareholder, Hong Kong Securities Clearing Company, held 533,547,000 shares, representing 18.07% of total shares[101]. - No interim dividends were proposed or declared for the six months ended June 30, 2022, and 2021[175]. - The company has a significant interest from controlled corporations, with multiple entities holding 53,859,000 H shares, each representing 1.82% of the company's total interest[113]. Environmental and Social Responsibility - The company is committed to sustainable development by improving the entire industrial chain and expanding comprehensive new energy services[20]. - The company has established and improved various environmental protection mechanisms and regularly conducts emergency drills to enhance response capabilities to environmental emergencies[83]. - The sewage treatment plants have achieved discharge standards that meet the class A+ of Shanghai's highest level[21]. Employee and Management Changes - As of June 30, 2022, the company had 3,020 employees, with employee expenses amounting to RMB 364.46 million during the reporting period[53]. - Mr. Yang Weibiao resigned as Executive Director and Vice President in March 2022 for personal reasons[96]. - Mr. Liu Zhengdong resigned as Independent Non-executive Director and Chairman of the Nomination Committee in March 2022 due to other work requirements[96].

Financial Performance - Operating revenue for the first quarter was CNY 1,983,080,288.47, representing a year-on-year increase of 9.04%[3] - Net profit attributable to shareholders of the listed company was CNY -325,329,638.02, a decrease of 1,604.39% compared to the same period last year[3] - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -172,388,112.07, a decrease of 231.52% year-on-year[3] - The company reported a gross operating cost of RMB 1,921,128,015.32 for Q1 2022, up from RMB 1,740,484,796.33 in Q1 2021[26] - Basic earnings per share for Q1 2022 was -0.110190, compared to 0.007325 in Q1 2021[35] - Net profit attributable to shareholders of the parent company for Q1 2022 was a loss of RMB 267,347,402.73, compared to a profit of RMB 91,282,130.91 in Q1 2021[33] - The company’s total comprehensive income for Q1 2022 was a loss of RMB 257,387,490.04, compared to a gain of RMB 43,407,840.13 in Q1 2021[35] - Other comprehensive income after tax for Q1 2022 was RMB 9,959,912.69, compared to a loss of RMB 47,874,290.78 in Q1 2021[34] Cash Flow - Net cash flow from operating activities was CNY 510,913,115.28, an increase of 574.24% compared to the previous year[3] - Cash inflow from operating activities for Q1 2022 was approximately ¥2.36 billion, an increase of 17.4% compared to ¥2.01 billion in Q1 2021[37] - Net cash flow from operating activities for Q1 2022 was ¥510.91 million, significantly higher than ¥75.78 million in Q1 2021[37] - Cash inflow from investment activities in Q1 2022 totaled ¥1.00 billion, up from ¥595.98 million in Q1 2021, marking a 67.7% increase[39] - Net cash flow from investment activities for Q1 2022 was ¥476.65 million, a recovery from a negative cash flow of ¥155.94 million in Q1 2021[39] - Cash inflow from financing activities in Q1 2022 was ¥1.46 billion, down 62% from ¥3.85 billion in Q1 2021[40] - Net cash flow from financing activities for Q1 2022 was ¥29.41 million, a decrease of 95.7% compared to ¥689.81 million in Q1 2021[40] Assets and Liabilities - Total assets at the end of the reporting period were CNY 23,956,063,246.33, a decrease of 0.49% from the end of the previous year[4] - Total liabilities as of March 31, 2022, are RMB 8,428,159,916.16, compared to RMB 8,253,696,444.93 at the end of 2021[21] - Total liabilities increased to ¥8,520,575,910.43 as of March 31, 2022, up from ¥7,685,283,685.47 at the end of 2021[46] - The company’s total equity as of March 31, 2022, was RMB 9,739,721,820.76, down from RMB 10,016,197,648.49 at the end of 2021[24] - Total current assets amount to RMB 5,622,670,203.23, an increase from RMB 5,413,365,060.36 as of December 31, 2021[18] - Total non-current assets decreased to RMB 18,333,393,043.10 from RMB 18,661,583,228.44[19] - Current liabilities as of March 31, 2022, totaled ¥5.17 billion, an increase from ¥4.32 billion at the end of 2021[45] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 157,919[10] - The top shareholder, Hong Kong Central Clearing Limited, holds 533,547,000 shares, representing 18.07% of the total shares[11] - Shanghai Dazhong Enterprise Management Limited holds 495,143,859 shares, accounting for 16.77% of the total shares, with 344,000,000 shares pledged[11] Investment Income - Investment income for Q1 2022 showed a loss of RMB 189,900,485.18, compared to a gain of RMB 123,386,842.28 in Q1 2021[28] - The company maintained stable main business operations despite significant decreases in investment income from equity method companies compared to the previous year[9]

Financial Performance - Revenue for 2021 reached RMB 5,587,531, an increase of 12.82% compared to RMB 4,952,510 in 2020[42] - Net profit attributable to equity holders of the listed company decreased by 41.12% to RMB 303,356 from RMB 515,231 in the previous year[42] - Net cash flows from operating activities improved by 37.51%, totaling RMB 578,081 compared to RMB 420,382 in 2020[42] - Net assets attributable to equity holders of the listed company increased slightly by 0.84% to RMB 8,659,565 from RMB 8,587,274 at the end of 2020[42] - Total assets grew by 1.77% to RMB 23,674,116 from RMB 23,263,208 at the end of 2020[42] - Basic and diluted earnings per share fell by 41.18% to RMB 0.10 from RMB 0.17 in 2020[42] - Profit for the year in 2021 was RMB 392,175, a decrease of 33.9% compared to RMB 594,342 in 2020[43] - The company recorded total revenue of RMB5.588 billion in 2021, an increase of 12.82% compared to RMB4.953 billion in 2020[84] - Net profit attributable to the owners of the parent company was RMB303 million, a decrease of 41.12% from the previous year[84] Dividend Distribution - The company plans to distribute a cash dividend of RMB0.5 per ten shares, totaling RMB147,621,733.75 based on 2,952,434,675 outstanding shares at the end of 2021[4] - The profit distribution plan is subject to approval at the 2021 AGM, with implementation measures to be announced later[4] - The final dividend for the year ended December 31, 2021, is RMB0.5 per ten shares (tax inclusive) [22] Audit and Compliance - BDO Limited issued an unqualified audit report for the company, confirming the accuracy and completeness of the financial report[4] - There were no material risks identified during the reporting period, and potential risks and countermeasures are detailed in the report[5] - The company has not appropriated funds for non-operating purposes by controlling shareholders or related parties[5] - The company has not provided external guarantees in violation of stipulated decision-making procedures[5] - More than half of the directors were able to warrant the truthfulness, accuracy, and completeness of the annual report[5] - The company is committed to ensuring the truthfulness, accuracy, and completeness of the financial report as stated by the responsible persons[4] - The company continues to focus on improving governance and information disclosure quality, ensuring compliance with stock exchange regulations[5] Operational Highlights - The company operates 8 wastewater treatment plants with a total capacity of 440,000 tons per day[52] - Shanghai Dazhong Gas has a natural gas pipeline network of 6,867 km, supplying 7.2 million cubic meters daily to over 1.87 million household users[45] - Dazhong Transportation operated 6,255 taxis and 3,304 rental cars by the end of 2021[55] - The company operates under the Public-Private Partnership (PPP) model for long-term cooperative relationships[25] - The company aims to explore new energy projects with economic scale to establish a sustainable profit model[50] Market and Industry Trends - In 2021, China's natural gas consumption reached 372.6 billion cubic meters, marking a year-on-year increase of 12.7% and accounting for approximately 8.4% of total primary energy consumption[68] - The consumption structure of natural gas in 2021 showed that industrial gas accounted for 36.57%, city gas for 35.47%, gas for power generation for 19%, and gas for chemical industries for 8.87%[68] - The "14th Five-Year Plan" aims to increase sewage treatment capacity by 20 million cubic meters per day, focusing on filling the capacity gap in cities and county towns[69] - The environmental protection industry is increasingly supported by the State through policies and funding, transforming environmental governance into an economically beneficial industry[70] - The government has enhanced regulatory measures in the water industry, improving operational efficiency and quality of wastewater treatment projects[71] - The natural gas industry is expected to benefit from the national "peak carbon dioxide emissions" and "carbon neutrality" policies, leading to increased gas demand and consumption growth[199] - The urban transportation industry in Shanghai has about 50,000 taxis, with the Company replacing over 2,000 fuel taxis with electric vehicles, aiming to replace all fuel taxis in the future[200] Strategic Initiatives - The company is committed to expanding its market presence through strategic partnerships and acquisitions[25] - The company aims to enhance its financial product offerings through partnerships with fintech platforms and actively issues bonds and asset-backed securities[63] - The company is focusing on healthy and orderly development trends in the financial leasing industry despite downward pressures on asset quality[6] - The company is committed to improving working efficiency and reducing costs in its logistics and transport operations[61] - The company emphasizes the integration of internal resources and the development of differentiated competition strategies in its financial investment business[63] Investment Activities - The company reported external equity investment of approximately RMB 513 million, a decrease of 13.93% from the previous year[140] - The Company holds a stake in Shenzhen Capital Group Co., Ltd., which has invested in 1,406 projects totaling RMB 80.5 billion, with 206 projects listed globally, indicating strong investment experience[133] - The Company has established a stable multi-channel financing system through corporate bonds and other financial instruments, enhancing its financing ability and reducing costs[134] - The Company invested RMB 20 million in the Shanghai Wuyuefeng Phase III private equity fund, representing 2.95% of the total paid-in capital as of December 31, 2021[148] - The Company invested RMB 50.5 million in the Xuan Yuan Yuan Ding No. 10 private securities investment fund, representing 100% of the total paid-in capital as of December 31, 2021[148] Corporate Social Responsibility - The company was awarded the "Most Socially Responsible Award" in 2021, highlighting its commitment to social responsibility[5] - The company actively promoted pandemic prevention measures, ensuring that all employees received vaccinations and health supplies[121] - The company organized activities to celebrate its 30th anniversary and the 100th anniversary of the Communist Party of China, enhancing corporate culture and employee engagement[122]

Financial Reporting and Governance - The company confirmed that the interim report is true, accurate, and complete, with no material omissions or misleading statements[2]. - The report is unaudited, and the financial reports are warranted for truthfulness and accuracy by the responsible persons[3]. - All directors attended the board meetings, ensuring collective responsibility for the report's contents[2]. - The company is committed to transparency and has outlined its corporate governance practices in the report[7]. - The company adheres to strict corporate governance standards, complying with relevant laws and regulations in both domestic and international markets, ensuring a well-structured governance mechanism[50]. - The Company strictly complies with information disclosure requirements, ensuring timely and consistent disclosure at both listing places[128]. - The Company implemented strict registration and management of individuals possessing inside information, ensuring lawful and fair disclosure[129]. - The company has complied with all corporate governance code provisions throughout the Reporting Period[130]. Financial Performance - For the six months ended June 30, 2021, Dazhong Public Utilities reported a revenue of RMB 1.2 billion, representing a year-on-year increase of 15%[12]. - The company achieved a net profit of RMB 300 million, which is a 10% increase compared to the same period last year[12]. - Revenue for the reporting period (January to June) increased by 19.14% to RMB 3,124,641,000 compared to RMB 2,622,635,000 in the corresponding period last year[16]. - Net profit attributable to shareholders decreased by 14.14% to RMB 216,851,000 from RMB 252,553,000 in the same period last year[16]. - Basic and diluted earnings per share decreased by 22.22% to RMB 0.07 from RMB 0.09 in the same period last year[17]. - Profit for the period attributable to owners of the company was RMB 216,851,000, down from RMB 252,553,000 in the prior year, reflecting a decrease of approximately 14.1%[159]. - Total comprehensive income for the period was RMB 330,226,000, down from RMB 392,046,000, indicating a decrease of about 15.8% compared to the previous year[161]. Cash Flow and Financial Position - Net cash flows from operating activities improved significantly to RMB 440,995,000, compared to a negative RMB 249,528,000 in the previous year[16]. - Cash and cash equivalents at the end of the reporting period amounted to RMB 3,326,876,000, representing 13.55% of total assets, up from 9.11% last year[62]. - The company maintained loan interest rates between 3.045% to 3.2%, effectively reducing capital costs[53]. - The overall expense control system was implemented, improving internal control capabilities[54]. - Cash flows from financing activities included new bank borrowings of RMB 2,427,846, an increase of 32.8% compared to RMB 1,827,876 in the same period last year[181]. - Net cash flows generated from financing activities were RMB 1,092,708, a recovery from a net outflow of RMB 58,356 in the same period last year[181]. Business Operations and Strategy - Dazhong Public Utilities plans to expand its market presence in Jiangsu and Zhejiang provinces, targeting a 25% growth in these regions over the next year[12]. - The company is investing RMB 200 million in new technology for wastewater treatment to enhance operational efficiency by 30%[12]. - The company is exploring potential acquisitions in the renewable energy sector to diversify its portfolio and reduce carbon emissions by 15% by 2025[12]. - The company is focusing on strategic development and market expansion initiatives to enhance operational efficiency and profitability[15]. - The company is engaged in various sectors including piped gas supply, wastewater treatment, and public infrastructure projects, indicating a diversified business model[182]. Environmental Compliance and Risks - The company faces environmental risks due to varying establishment periods and geographical distribution of its sewage treatment plants[71]. - The company has multiple subsidiaries with reported discharging standard violations across various pollutants, indicating a need for improved compliance measures[107][108]. - The company is committed to ecological protection and energy conservation, achieving economic benefits through effective sewage treatment management[110]. - The company has established a sound management structure and continuously improved management systems and operation procedures, resulting in stable water discharge meeting standards[110]. Shareholder Information - The total number of ordinary shareholders as of the end of the Reporting Period was 167,023[136]. - Shanghai Dazhong Business Management Co., Ltd. held 556,321,859 shares, representing approximately 18.84% of the total issued shares of the Company[142]. - The shareholding of Cai Zhishuang decreased by 629,800 shares during the reporting period, bringing the total to 15,288,835 shares, which is 0.52% of the total shares[138]. - The Company did not report any changes in the shareholding of current and resigned Directors, Supervisors, and senior management during the reporting period[153]. Investment and Financing Activities - The company actively practices a multi-channel financing model, creating a stable financing system through corporate bonds, debt financing instruments, and asset securitization, optimizing its investment and financing structure[50]. - The company has deposited all remaining unutilized proceeds into its account for listing, intended for use in the same manner as proposed[90]. - The company proposed the registration and issuance of super-short-term commercial papers and medium-term notes[93]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service capabilities[15].

Financial Performance - Dazhong's overall financial performance showed a net profit increase of 18% year-on-year, reaching RMB1.2 billion for the fiscal year 2020[12]. - The company reported a total revenue of RMB 1.5 billion for the year 2020, representing a year-on-year increase of 10%[16]. - Revenue for 2020 was RMB 4,952,510, a decrease of 11.71% compared to RMB 5,609,649 in 2019[18]. - Net profit attributable to equity holders of the listed company was RMB 515,231, down 2.14% from RMB 526,473 in 2019[18]. - Net cash flows from operating activities decreased by 65.50%, from RMB 1,218,418 in 2019 to RMB 420,382 in 2020[18]. - Total assets rose by 4.61% to RMB 23,263,208 at the end of 2020, up from RMB 22,237,165 at the end of 2019[18]. - The company declared dividends of RMB 162,384 in 2020, down from RMB 177,146 in 2019[19]. - The company distributed a cash dividend of RMB 0.55 per ten shares for the year 2020, representing 31.52% of the net profit attributable to ordinary shareholders[188]. Audit and Compliance - BDO Limited issued an unqualified audit report for the company, confirming the accuracy and completeness of the financial report[3]. - The company confirms that all directors attended the board meeting, ensuring collective responsibility for the report's contents[3]. - The financial report is prepared in both Chinese and English, with the English version prevailing in case of ambiguities[5]. - The company has maintained compliance with the Company Law of the PRC regarding the tenure of independent directors[144]. - The Company has adopted the Corporate Governance Code and complied with all provisions throughout the Reporting Period[181]. Risk Management - There were no material risks identified during the reporting period, and potential risks and countermeasures are detailed in the report[5]. - The company has not engaged in any non-operating appropriation of funds by controlling shareholders or related parties[5]. - The company has not violated any stipulated decision-making procedures regarding external guarantees[5]. - The company faces risks from the COVID-19 pandemic, which may cause operational fluctuations due to ongoing uncertainties in the global situation[101]. - The company's profitability may be affected by government pricing policies related to gas prices, sewage treatment, and urban transportation[105]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in the next fiscal year, aiming for a 20% increase in market share[12]. - Dazhong Financial Leasing has successfully secured new contracts worth RMB1 billion, contributing to a projected revenue growth of 10% for the upcoming year[12]. - The company is exploring potential mergers and acquisitions to enhance its service offerings, targeting a completion date within the next 18 months[12]. - The company aims to achieve a revenue target of RMB5 billion for the next fiscal year, representing a 15% increase compared to the previous year[12]. - The company is investing in new technology for sewage treatment, with an estimated budget of RMB500 million allocated for R&D in the next two years[12]. Operational Efficiency - Dazhong Transportation reported a 12% increase in operational efficiency due to the implementation of new logistics software[12]. - The company aims to improve project operation and management levels while adopting both internal growth and external expansion strategies to increase market share[21]. - The company is enhancing profitability through improved project management and operational efficiency in its infrastructure investment projects[26]. - The company is focusing on digital transformation through big data applications in operational management[25]. Investment and Financing - The Company has established a stable all-round financing system through various financial instruments, enhancing its comprehensive strength and shareholder value[75]. - The Company will continue to promote the transformation of its self-operated financial business, focusing on "consumer finance and platform finance" to enhance management capabilities[99]. - The company plans to broaden its financing channels and improve liquidity management to meet short-term turnover and key investment project funding needs[100]. - The company has a total of ¥40,000,000 in banking wealth management products maturing on June 23, 2021[190]. Shareholder Relations and Dividends - The profit distribution plan is subject to approval at the 2020 Annual General Meeting[3]. - The company plans to maintain its dividend distribution strategy in the coming years[188]. - The decision-making process for profit distribution involves communication with shareholders, especially small and medium shareholders, to gather their opinions[184]. - The AGM is scheduled for June 18, 2021, with the register of members closing from June 15 to June 18, 2021[130]. Environmental and Social Responsibility - The company is committed to sustainable development and strategic planning for operational layout[75]. - The Group's environmental policies comply with various PRC laws aimed at reducing greenhouse gas emissions and improving resource efficiency[123]. - The Group has adopted measures to promote environmental protection and reduce greenhouse gas emissions, as outlined in the 2020 ESG report[125]. - The company has laid a solid foundation for rapid development by completing its "14th Five-year Plan" (2021-2025)[55].

Financial Reporting and Governance - The interim report confirms that the contents are true, accurate, and complete, with no false representations or material omissions[3]. - The report is unaudited, and the financial reports are warranted for truthfulness and accuracy by the responsible persons[4]. - The company has not made any profit distribution or capital reserve conversion during the first half of 2020[98]. - The company has maintained strict compliance with corporate governance standards, including the Company Law of China and relevant listing rules during the reporting period[153]. - The Board consists of 9 Directors, including 3 independent non-executive Directors, ensuring a balanced governance structure[157]. - The company held one annual general meeting during the reporting period, ensuring compliance with legal requirements and protecting minority shareholders' rights[154]. - The Board of Supervisors, consisting of 3 members, effectively supervises the legality and compliance of the company's financial position and management performance[158]. - The company has established a governance mechanism by revising its Articles of Association and procedural rules to enhance decision-making and standard operations of the Board[163]. - The company has not reported any material accounting errors during the reporting period, indicating a stable financial reporting environment[149]. - The company has complied with all provisions of the Corporate Governance Code throughout the reporting period, maintaining transparency and accountability[166]. Financial Performance - Revenue for the reporting period was RMB 2,622,635, a decrease of 12.53% compared to RMB 2,998,246 in the same period last year[18]. - Net profit attributable to shareholders increased by 22.62% to RMB 252,553 from RMB 205,972 in the previous year[18]. - Basic and diluted earnings per share rose by 28.57% to RMB 0.09 from RMB 0.07 in the same period last year[20]. - The company reported significant financial indicators, including total revenue and net profit figures, which are to be detailed in the upcoming sections[17]. - The company anticipates potential risks from the ongoing Covid-19 pandemic, which may cause short-term fluctuations in performance[87]. Strategic Initiatives and Market Expansion - The company is focused on expanding its market presence through strategic partnerships and potential acquisitions[15]. - Dazhong is investing in new technologies, with a budget allocation of RMB 200 million for research and development in the next year[11]. - The company plans to enter two new regional markets by the end of 2021, aiming to increase its market share by 5% in those areas[11]. - Dazhong has completed a strategic acquisition of a local competitor, which is expected to enhance its service capabilities and increase revenue by an estimated RMB 300 million annually[11]. - The company aims to improve user data analytics to better understand customer needs and preferences[15]. Operational Efficiency and Sustainability - Dazhong's operational efficiency has improved, with a reduction in costs by 8% due to streamlined processes and better resource management[11]. - The company is focusing on sustainability initiatives, aiming to reduce carbon emissions by 25% over the next five years[11]. - The company has disclosed environmental, economic, and social indicators to stakeholders, achieving positive results in sustainable development[54]. - The company conducts regular emergency drills to enhance its capabilities in handling environmental accidents, ensuring compliance with all pollutant discharge standards[144]. Risk Management - There were no material risks identified during the reporting period, and potential risks and countermeasures are detailed in the report[6]. - Pricing policy risks could impact profitability due to government regulations on gas distribution and urban transportation[88]. - Environmental policy changes may impose pressure on the company's wastewater treatment operations[91]. - Investment returns from associated companies significantly affect the company's overall net profit, with potential fluctuations due to macroeconomic changes[92]. Shareholder Information - The percentage of shares carrying voting rights held by shareholders attending the 2019 AGM was 24.1697% of the total shares carrying voting rights[114]. - The total number of ordinary shareholders as of the end of the reporting period is 192,229[191]. - The company is not aware of any connected relationships among the top ten shareholders of tradable shares[195]. - As of June 30, 2020, substantial shareholders have interests in the company's shares and related shares as required by the Securities and Futures Ordinance[200]. Debt and Financing - The total amount of bank credit facilities obtained by the company during the reporting period was RMB12,031,105,401.93, with RMB2,850,650,086.83 utilized as of June 30, 2020[189]. - The company maintains a main credit rating of AAA, with the debt credit ratings for its corporate bonds also maintained at AAA[177]. - The company has established rules for bondholders' meetings to guarantee timely and full repayment of principal and interest[181]. - The company emphasizes strict information disclosure to prevent debt repayment risks and ensure transparency for bondholders and shareholders[185]. Employee and Community Engagement - The company has 2,949 employees, with employee expenses amounting to RMB 323.20 million during the reporting period[103]. - The company organized employee donations to support Covid-19 prevention efforts, demonstrating corporate social responsibility[73].

Dividend Distribution - The company plans to distribute a cash dividend of RMB0.60 per 10 shares, totaling RMB177,146,080.50 based on 2,952,434,675 outstanding shares at the end of 2019[4]. - The profit distribution plan is subject to approval at the 2019 Annual General Meeting, with implementation measures to be announced later[4]. - The final dividend declared is RMB0.60 per ten shares for the year ended December 31, 2019[15]. - The Group's final dividend recommendation is RMB0.60 per ten shares, totaling RMB177,146,080.50, subject to shareholder approval[167]. - The Company will withhold and pay individual income tax at a rate of 10% for individual holders of H shares on the distributed dividends[169]. - For non-resident enterprise holders of H shares, the Company will also withhold and pay enterprise income tax at a rate of 10%[169]. Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2019, representing a year-on-year increase of 15%[16]. - Operating revenue for 2019 reached RMB 5,609,649, an increase of 10.81% compared to RMB 5,062,376 in 2018[21]. - Net profit attributable to equity holders of the listed company was RMB 526,473, reflecting a growth of 10.03% from RMB 478,489 in the previous year[21]. - Net cash flows from operating activities surged to RMB 1,218,418, a significant increase of 334.24% compared to RMB 280,589 in 2018[21]. - The company achieved total revenue of RMB 5.610 billion and a net profit attributable to shareholders of RMB 0.526 billion in 2019[72]. - The Group's total revenue for the year ended December 31, 2019, was RMB 5,471,130,000, with a significant contribution from piped gas supply at RMB 4,976,650,000, accounting for 88.72% of total revenue[149]. - Wastewater treatment revenue increased to RMB 324,553,000, representing 5.79% of total revenue, up from RMB 279,523,000 in 2018[149]. - Financial leasing services generated revenue of RMB 138,519,000, maintaining a steady contribution of 2.46% to total revenue[149]. Audit and Compliance - BDO Limited issued an unqualified audit report for the company, confirming the accuracy and completeness of the financial report[3]. - The company confirms that all board members and senior management are responsible for the accuracy of the annual report contents[5]. - The company has not appropriated funds for non-operating purposes by controlling shareholders or related parties[6]. - The company has not provided external guarantees in violation of stipulated decision-making procedures[8]. - The company did not have any material contingent liabilities as of December 31, 2019[71]. - The Group's compliance with relevant laws and regulations has been maintained throughout the year ended December 31, 2019[167]. - The Group has established compliance procedures to ensure adherence to laws that significantly impact its operations[167]. Risk Management - There were no material risks identified during the reporting period, and potential risks and countermeasures are detailed in the report[9]. - The company emphasizes the importance of understanding investment risks related to forward-looking statements in the report[6]. - The company faces risks from environmental regulations, which may impose stricter operational standards on wastewater treatment businesses[140]. - Market competition poses a risk to the taxi business, which holds a significant market share in Shanghai but faces challenges from alternative transportation options[140]. - The venture capital business is subject to high risks and uncertainties, potentially impacting the Company's profitability if macroeconomic conditions worsen[144]. - As of the end of 2019, the Company had multiple overseas subsidiaries, exposing it to risks related to foreign investment environments and exchange rate fluctuations[145]. Strategic Initiatives - The company is investing in new product development, allocating RMB50 million towards R&D initiatives[14]. - Market expansion plans include entering two new provinces in China by Q3 2020[14]. - The company is exploring potential acquisitions to enhance its service offerings in the utilities sector[14]. - A strategic partnership has been established with a local firm to improve operational efficiency[14]. - The company aims to reduce operational costs by 5% through technology upgrades in the next year[14]. - The company plans to enhance its digital platform to better serve its growing user base[14]. - The company will enhance its investment in major public utility projects, focusing on city gas and wastewater treatment, while expanding its domestic and foreign business development[133]. Market and Industry Trends - The company operates in public utility and financial investment sectors, with public utility including city gas, wastewater treatment, urban transportation, infrastructure investment, and logistics[23]. - The wastewater treatment industry is shifting from rapid growth to quality improvement, with new regulations increasing operational costs and competition[40]. - The urban transportation industry experienced significant reforms in 2019, improving infrastructure and public transport services, leading to increased travel willingness[42]. - The logistics industry in China is rapidly developing, with total logistics amounts climbing, while facing challenges in structural adjustment and cost reduction[43]. - The establishment of the new Lingang Sector in Shanghai's Pilot Free Trade Zone is enhancing China's position in the global trade value chain, creating opportunities for logistics enterprises[44]. - The company benefits from the increase in gas sales and connections due to the ongoing urban coal-to-gas conversion and gas price deregulation[23]. Corporate Governance - The company has established a management mechanism with clear authorities and responsibilities to improve corporate governance and operational efficiency[104]. - The Company will continue to adhere to high standards of corporate governance and dual-listing regulations[134]. - The Company completed its three-year HR strategic plan for 2020-2022, enhancing its human resources management and training systems[86]. - The Company organized various cultural activities to motivate staff and promote sustainable development[86]. Investment Activities - The company invested RMB35 million in JuneYao Healthy Beverage Co., Ltd., which filed its IPO application in May 2019[82]. - The company invested RMB20 million in the capital increase of Tianjin Huahai Qingke Project, which is currently undergoing subsequent procedures[84]. - The company’s subsidiary Dazhong Hong Kong made significant investments in various companies, focusing on long-term growth strategies in the big consumption industry and mobile gaming sectors[113][114]. - The company’s financial assets calculated at fair value are detailed in note 34 of the financial statements, indicating a focus on strategic investments and asset management[116]. Future Outlook - Future outlook indicates a projected revenue growth of 10% for the upcoming fiscal year[15]. - The company provided a future outlook, projecting a revenue growth of 10-12% for 2020, driven by market expansion and new product launches[18]. - In 2020, natural gas is expected to account for 8.3-10% of China's primary energy consumption, translating to 320-360 billion cubic meters[125]. - China's environmental protection investment is projected to reach RMB 8.3 trillion during the "13th Five-year Plan" period[127]. - The establishment of the national pipeline network corporation is anticipated to enhance the operation mechanism of the natural gas industry during the "14th Five-year Plan" period[125].