香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任 何責任。 雲南水務投資股份有限公司 Yunnan Water Investment Co., Limited* （於中華人民共和國註冊成立的股份有限公司） （股份代號：6839） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 財務摘要 — 收益約為人民幣3,789百萬元，較截至二零二一年十二月三十一日止年度減少約28% — 本年虧損約為人民幣1,158百萬元，較截至二零二一年十二月三十一日止年度虧損 增加約10% — 本公司普通股股東應佔虧損約為人民幣1,060百萬元，較截至二零二一年十二月 三十一日止年度應佔虧損增加約6% — 每股基本虧損約為人民幣0.889元，較截至二零二一年十二月三十一日止年度每股 基本虧損增加0.049元 ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of CNY 1.2 billion, representing a growth of 15% compared to the previous year[5]. - Revenue for the six months ended June 30, 2022, was RMB 2,180,340, a decrease of 19.5% compared to RMB 2,707,734 in 2021[34]. - Gross profit for the same period was RMB 469,248, reflecting a decline of 28.9% from RMB 660,261 in 2021[34]. - Loss before income tax increased to RMB 499,898, compared to RMB 379,194 in the previous year, marking a 31.8% increase[34]. - The basic loss per share was RMB (0.414), which is a 58.5% increase from RMB (0.261) in 2021[34]. - The company reported an EBITDA loss attributable to ordinary shareholders of RMB (494,015), compared to RMB (311,647) in the prior year, representing a 58.5% increase in loss[34]. - The Group recorded a net loss of approximately RMB 502.3 million, compared to a loss of RMB 363.3 million for the six months ended June 30, 2021[78]. - The gross profit margin decreased to approximately 21.5%, down approximately 2.9% from 24.4% for the six months ended June 30, 2021[82]. - The company reported a total comprehensive loss for the period of RMB (494,015) for the six months ended June 30, 2022[142]. Operational Highlights - User data showed an increase in customer base, with active users rising to 3 million, a 20% increase year-on-year[6]. - Operating profit margin improved to 30%, up from 28% in the previous period[9]. - Cash flow from operations increased to CNY 300 million, reflecting a 10% increase compared to the last reporting period[12]. - The Group's total daily treatment capacity for water-related projects reached approximately 6,408,100 tonnes as of June 30, 2022[58]. - The annual treatment capacity for solid waste treatment projects was approximately 4,081,900 tonnes as of June 30, 2022[58]. - The average utilization rate of wastewater treatment during the reporting period was approximately 77.7%, with an average unit charge of approximately RMB1.60 per tonne[63]. - The average utilization rate of water supply was approximately 61.1%, with an average unit charge of approximately RMB2.46 per tonne[66]. - The Group had 11 BT projects, with income from 10 of these projects recognized as revenue during the reporting period[67]. Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[6]. - New product development includes the launch of a smart water management system, expected to enhance operational efficiency by 25%[6]. - The company is expanding its market presence, targeting three new provinces for service expansion by the end of the fiscal year[6]. - A strategic acquisition of a local water treatment company was completed, expected to increase market share by 5%[6]. - The company plans to invest CNY 200 million in technology upgrades over the next two years to improve service delivery[6]. - The company has initiated a sustainability program aimed at reducing water waste by 15% over the next three years[6]. Market and Economic Context - The management highlighted that the international economic situation has become severe and complicated, impacting near-term economic prospects[37]. - The company noted that the environmental protection industry is facing challenges but remains favorable in the long term due to supportive national policies[38]. - The year 2022 is identified as the first year for promoting the "double carbon" goal, creating new development opportunities for the ecological and environmental protection sectors[38]. - Economic indicators showed a recovery trend in June 2022, indicating stabilization and recovery of the national economy[37]. - The water industry in China is entering a phase of high-quality development, with comprehensive water environment treatment becoming a focal point supported by government policies and funding[44]. Corporate Governance - The Company is committed to corporate governance and transparency in its operations[115]. - The Nomination Committee is responsible for reviewing the structure and composition of the Board, ensuring fair and transparent nominations[117]. - The company has a diversity policy for Board members, which is monitored by the Nomination Committee[117]. - The Remuneration Committee oversees the compensation structure for the company's executives[118]. - The Company complied with all code provisions set out in the Corporate Governance Code throughout the six months ended June 30, 2022[125]. Financial Position and Risks - Total liabilities increased to RMB 41,439,591 as of June 30, 2022, compared to RMB 40,827,482 as of December 31, 2021, marking an increase of about 1.5%[140]. - The gearing ratio increased from approximately 78.8% to approximately 80.5%, representing an increase of approximately 1.7%[92]. - The Group's borrowings increased to approximately RMB 29,680.1 million from approximately RMB 28,655.5 million[89]. - The Group's total borrowings amounted to RMB 7,739 million, with RMB 6,329 million classified as current liabilities due to cross-default events[157]. - Material uncertainties exist regarding the Group's ability to achieve its plans and measures, which could affect its operational continuity[167]. - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[177].

Financial Performance - Yunnan Water Investment reported a revenue of RMB 1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[24]. - The company achieved a net profit of RMB 300 million, which is a 10% increase compared to the previous year[24]. - Revenue for the year ended December 31, 2021, was RMB 5,280,743,000, a decrease of 37.1% from RMB 8,396,630,000 in 2020[35]. - Gross profit for 2021 was RMB 1,316,564,000, down 37.2% from RMB 2,096,132,000 in the previous year[35]. - The Group reported a loss before income tax of RMB 1,030,933,000, compared to a profit of RMB 502,624,000 in 2020, representing a change of -305.1%[35]. - EBITDA for 2021 was RMB 1,158,649,000, a decline of 50.6% from RMB 2,346,764,000 in 2020[35]. - The loss attributable to ordinary shareholders for the year was approximately RMB 1,001.9 million, compared to a profit of approximately RMB 223.1 million in 2020[36]. - Basic loss per share for 2021 was approximately RMB 0.840, a significant decrease from basic earnings of RMB 0.187 per share in 2020[37]. - Return on shareholders' equity for 2021 was -13.89%, compared to 4.49% in the previous year[35]. - The company experienced a significant decline in both revenue and profit margins, indicating challenges in the operational environment[35]. - Future strategies may need to focus on recovery and growth to address the substantial losses reported in 2021[35]. Operational Efficiency and Strategy - The company has outlined a strategic goal to reduce operational costs by 5% through improved resource management in the next fiscal year[24]. - Yunnan Water Investment is investing RMB 200 million in new technology for water purification systems, aiming to enhance service efficiency by 30%[24]. - Future guidance indicates a projected revenue growth of 12% for the upcoming fiscal year, driven by increased demand for water services[24]. - The Group aims to improve operational quality and efficiency, focusing on energy conservation and consumption reduction through a scientific budgeting system[56]. - The Group plans to accelerate the construction progress of ongoing projects to enhance cash flow stability[57]. - The Group intends to reduce its gearing ratio by promoting equity financing and optimizing its financing structure[58]. - The Group will enhance its technology research and development, particularly in low-temperature aerobic pyrolysis and carbonization technology for organic solid waste[59]. - The company will focus on improving operational efficiency and energy conservation, aiming for stable project operations and scientific budgeting[61]. - The company plans to accelerate the construction progress of ongoing projects to release early investment dividends, establishing a solid foundation for stable cash flow[61]. - The company aims to reduce its asset-liability ratio through equity financing and optimizing the debt structure, while enhancing debt collection to increase net cash inflow[61]. Market Expansion and Acquisitions - The company plans to expand its market presence in neighboring provinces, targeting a 25% growth in service coverage by 2023[24]. - Yunnan Water Investment is exploring potential acquisitions of smaller water service providers to increase market share by 15%[24]. - The company is committed to expanding its market presence through strategic acquisitions and partnerships in the environmental sector[123]. - The Group will focus on the two main businesses of "water + solid waste" and improve operational management levels while accelerating project construction[82]. - The Group aims to create significant value for shareholders by enhancing technical strength and core competitiveness[82]. Environmental and Governance Practices - The company is committed to enhancing its environmental, social, and governance (ESG) practices, with a focus on sustainability initiatives[24]. - The environmental protection industry in China is entering a period of structural adjustment, with opportunities arising from new national policies[44]. - The "Wasteless City" initiative aims to promote approximately 100 cities to implement solid waste management improvements by 2025, focusing on reducing waste generation and enhancing resource utilization[69]. - The Group's strategy focuses on expanding overseas investments and gradually extending its business to other promising regions in China and emerging markets[179]. - The Group aims to improve its profitability structure by engaging in upstream and downstream development industries[179]. Management and Leadership - The company has a management team with over 18 years of experience in the environmental and water works industry, focusing on strategic planning and business development[129]. - The management team includes individuals with advanced degrees and significant industry experience, enhancing the company's strategic direction[135]. - The financial management team is well-versed in corporate finance, ensuring effective oversight and strategic financial planning[132]. - The company emphasizes the importance of experienced leadership in navigating financial strategies and market challenges[141]. - The board composition reflects a blend of financial expertise and strategic oversight, crucial for future growth[141]. Financial Challenges and Defaults - As of December 31, 2021, the total defaulted and cross-defaulted borrowings amounted to approximately RMB 16,397,304,000[77]. - The Group reported a net loss of RMB 1,055,254,000 for the year ended December 31, 2021, with current liabilities exceeding current assets by RMB 19,359,615,000[108]. - Total borrowings amounted to RMB 28,655,546,000 as of December 31, 2021, with current borrowings of RMB 20,685,107,000 and cash and cash equivalents of only RMB 428,427,000[108]. - The gearing ratio increased from approximately 77.26% as of December 31, 2020, to approximately 78.79% as of December 31, 2021, mainly due to increased debt financing during the Reporting Period[108]. - The Group was in default on borrowings totaling RMB 5,616,161,000 due to late or overdue payments of loan principals and interests[108]. Shareholder and Dividend Information - The Board does not recommend the payment of a final dividend for the year ended 31 December 2021, compared to a dividend of RMB0.06 per ordinary share for the year ended 31 December 2020[39]. - The Board decided not to recommend the payment of final dividends for the year ended December 31, 2021, pending shareholder approval[181].

雲南水務投資股份有限公司 YUNNAN WATER INVESTMENT CO., LIMITED* (於中華人民共和國註冊成立的股份有限公司) (a joint stock limited liability company incorporated in the People's Republic of China) 股份代號 Stock Code : 06839 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|----------------|-------|------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INTERIM REPORT | | 中 期 報 ...

雲南水務投資股份有限公司 YUNNAN WATER INVESTMENT CO., LIMITED* (於中華人民共和國註冊成立的股份有限公司) (a joint stock limited liability company incorporated in the People's Republic of China) 股份代號 Stock Code : 06839 年度 報 貨|２０２０ ＊ 僅供識別 For identification purposes only Contents 目 錄 Corporate Information 2 公司資料 Definitions 5 釋義 Financial Highlights 9 業績摘要 Chairman's Statement 10 董事長致詞 General Manager's Report 13 總經理報告 Management Discussion and Analysis 17 管理層討論及分析 Directors, Supervisors and Senior Management 38 董事、監事及高級管理人員 Directors' Repo ...

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2020, representing a year-on-year increase of 15%[5]. - Net profit for the same period was RMB 300 million, up 20% compared to the previous year[5]. - Revenue for the first half of 2020 reached RMB 3,038,646, representing a 17.1% increase compared to RMB 2,593,757 in the same period of 2019[28]. - The Group recorded revenue of approximately RMB3,038.6 million during the Reporting Period, representing a period-on-period increase of approximately 17.1% compared to the same period in 2019[60]. - Revenue from the wastewater treatment business segment increased by approximately 80.8% from approximately RMB973.8 million to approximately RMB1,760.9 million for the Reporting Period[64]. - Revenue from the water supply segment decreased by approximately 39.2% from approximately RMB667.1 million to approximately RMB405.4 million for the Reporting Period[64]. - The company reported a loss for the period of RMB 193,171, compared to a profit of RMB 121,040 in the same period last year[130]. - The Group realized a net loss of approximately RMB193.2 million, representing a period-on-period decrease of approximately 259.7% compared to the same period in 2019[60]. Operational Developments - The total number of water supply customers increased by 10% to 1.5 million[6]. - The company plans to expand its service coverage by 25% in the next two years, targeting rural areas[6]. - New technology initiatives include the implementation of smart water meters, expected to reduce operational costs by 15%[6]. - The company has allocated RMB 200 million for research and development of water purification technologies in 2021[6]. - A strategic partnership with Beijing OriginWater is expected to enhance service efficiency and expand market reach[6]. - The Group has 32 projects related to municipal comprehensive environmental treatment as of June 30, 2020, indicating a strong project pipeline[48]. - The Group obtained several new projects, including infrastructure construction for urban and rural wastewater treatment in Yingde City, Guangdong, and a concession project in Xinjiang Uygur Autonomous Region[51]. Financial Position - The Group's total cash balance decreased by approximately RMB456.7 million to approximately RMB2,011.7 million, representing a decrease of approximately 18.5%[72]. - The Group's borrowings increased to approximately RMB26,186.5 million from approximately RMB21,618.9 million as of 31 December 2019[72]. - The gearing ratio increased from approximately 69.14% as at 31 December 2019 to approximately 78.89% as at 30 June 2020, representing an increase of approximately 9.8%[74]. - The company’s total assets rose to RMB 42,229,378, compared to RMB 39,869,132 at the end of 2019[137]. - Total liabilities rose from RMB 31,323,147,000 to RMB 35,761,425,000, an increase of around 14.5%[142]. - Borrowings increased from RMB 15,199,525,000 to RMB 20,848,324,000, reflecting a rise of approximately 37.5%[139]. Market Conditions - The environmental protection industry is facing increasing pressures due to the COVID-19 pandemic, impacting overall market conditions[32]. - The integration of water business is on the rise, with comprehensive service providers expected to become the most competitive players in the market[33]. - New regulations and policies are being introduced to improve environmental governance and waste management, which may create opportunities for investment in rural water services[32]. - The environmental protection industry is experiencing a significant shift towards waste recycling, driven by new policies and technological advancements, indicating a booming demand for solid waste treatment[37]. - The outbreak of COVID-19 has introduced unprecedented challenges and uncertainties affecting the environmental protection industry, including construction projects and market demand[155]. Corporate Governance - The Company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[125]. - The Company has confirmed that all Directors and Supervisors complied with the Model Code for Securities Transactions throughout the six months ended June 30, 2020[128]. - The Company is actively seeking to ensure compliance with the Listing Rules regarding the composition of its Board and committees[123]. - The election of the board of directors and supervisory committee was postponed due to incomplete nominations, ensuring continuity in governance[95]. Shareholder Information - Yunnan Province Water holds 361,487,162 Domestic Shares, which is 43.58% of the issued Domestic Shares and 30.30% of the total Shares in issue[107]. - Beijing Origin Water has a beneficial ownership of 286,650,000 Domestic Shares, representing 34.56% of the issued Domestic Shares and 24.02% of the total Shares in issue[109]. - The total number of Domestic Shares held by substantial shareholders indicates significant ownership concentration within the Company[107]. - The Acting in Concert Agreement among key shareholders indicates a strategic alignment in voting rights and corporate governance[2]. Strategic Initiatives - The company is exploring potential acquisitions in the water treatment sector to bolster its market position[6]. - The Group's strategic goal is to become a leading integrated environmental services provider, focusing on national and international expansion[49]. - The Group aims to enhance operational management standards and optimize project expansion capabilities to increase competitiveness in the environmental protection industry[51].

Financial Performance - Yunnan Water reported a revenue increase of 15% year-on-year, reaching RMB 1.2 billion in the latest fiscal year[7]. - The company achieved a net profit of RMB 300 million, representing a growth of 20% compared to the previous year[7]. - Revenue for the year ended December 31, 2019, was RMB 6,538,024,000, representing a 4.5% increase from RMB 6,255,628,000 in 2018[61]. - Gross profit increased by 22.3% to RMB 1,832,313,000 compared to RMB 1,498,009,000 in the previous year[61]. - Profit before income tax rose by 5.2% to RMB 677,549,000 from RMB 644,226,000 in 2018[61]. - EBITDA for the year was RMB 2,012,308,000, an 18.8% increase from RMB 1,693,610,000 in 2018[61]. - Profit for the year attributable to ordinary shareholders was approximately RMB 398.2 million, slightly up from RMB 397.8 million in 2018[62]. - Basic earnings per share for the Reporting Period was RMB 0.334, a marginal increase from RMB 0.333 in 2018[63]. - The Group achieved total annual revenue of approximately RMB 6,538.0 million, representing an increase of approximately 4.5% compared to RMB 6,255.6 million in the previous year[74]. - Profit for the year was approximately RMB 553.8 million, reflecting an increase of approximately 11.5% from RMB 496.7 million in the previous year[74]. Market Expansion and Strategy - The company plans to expand its market presence in southwestern China, targeting a 25% market share by 2025[10]. - The company has set a performance guidance of 10-15% revenue growth for the next fiscal year[9]. - Yunnan Water Investment is exploring potential acquisitions of smaller water utility companies to enhance its service portfolio and geographic reach[197]. - The company plans to expand its market presence by entering two new provinces in 2020, aiming for a 20% increase in market share[197]. - The Group aims to optimize its debt structure while enhancing corporate value through its strategic focus on water and solid waste treatment[75]. - The Group plans to continue promoting research and marketing of key projects such as sludge carbonization and seek breakthroughs in rural sewage treatment and industrial wastewater treatment equipment[96]. Product Development and Technology - New product development includes a smart water management system, expected to launch in Q3 2020, aiming to reduce operational costs by 15%[10]. - Investment in technology upgrades is projected at RMB 200 million, focusing on improving water quality monitoring systems[10]. - Yunnan Water Investment is investing RMB 200 million in new technology for water purification systems, expected to enhance operational efficiency by 25%[197]. - The company has initiated a new product line focused on smart water management solutions, projected to contribute an additional RMB 50 million in revenue by 2021[197]. - The Group achieved initial success in sludge carbonization treatment technology and filed over ten patent applications related to wastewater and solid waste treatment[89]. Environmental Commitment - Environmental initiatives have been prioritized, with a commitment to reduce carbon emissions by 30% by 2025[21]. - The management emphasized a commitment to sustainability, with plans to reduce operational carbon emissions by 30% over the next five years[197]. - The hazardous waste treatment industry is expected to see increased concentration due to stricter national legislation and supervision[112]. - The demand for medical waste treatment surged during the COVID-19 pandemic, highlighting the need for stringent regulatory measures[112]. Operational Efficiency - The company reported a cash flow from operations of RMB 400 million, indicating strong liquidity[18]. - The company reported a significant improvement in operational efficiency, with a reduction in water loss rates from 15% to 10% in 2019[197]. - The Group's efforts in quality and efficiency enhancement of existing projects are expected to increase operational levels and business scale[95]. - The effective wastewater treatment utilization rate during the reporting period was approximately 77.35%, with an average unit charge of approximately RMB 1.40 per tonne[134]. - The effective water supply utilization rate was approximately 74.27%, with an average unit charge of approximately RMB 2.46 per tonne during the reporting period[136]. Leadership and Management - The company has seen significant leadership changes, with Mr. Yang Tao serving as the Chairman of the Board since August 2017[181]. - The company has been expanding its management team, with Mr. Yu Long appointed as General Manager and Executive Director since December 2018[181]. - The company has appointed several directors with significant experience in finance and technology sectors, enhancing its governance structure[186]. - The management team has a strong educational background, with degrees in accounting, business administration, and computer science from reputable universities[186]. - The independent directors bring extensive expertise in environmental engineering and corporate governance, supporting the company's strategic direction[190]. Financial Management - The Group's financing management strategy includes centralized management of internal funds to improve capital usage efficiency and enhance project financing capabilities[93]. - The average interest rate on borrowings increased to approximately 5.32% per annum from approximately 4.86% per annum for the year ended 31 December 2018[149]. - The gearing ratio increased from approximately 67.98% as at 31 December 2018 to approximately 69.14% as at 31 December 2019[153]. - The total cash balance increased by RMB 254.0 million, representing an increase of approximately 11.5% from RMB 2,214.4 million as at 31 December 2018 to RMB 2,468.4 million as at 31 December 2019[151]. Acquisitions and Investments - The Company entered into an equity transfer agreement for the acquisition of Liaocheng Chuanglian Environmental Technology Co., Ltd. at a consideration of RMB 40,300,000[163]. - The estimated total investment for the PPP project in Yila Lake Circular Economy Industrial Park is approximately RMB 381,400,000[160]. - The company conditionally agreed to acquire 20% equity interests in Fujian Dongfei Environment Group Co., Ltd. at a consideration of RMB 120,000,000[169]. - The company won the PPP project for the sewage treatment infrastructure in Yingde City, Guangdong Province[174].

Financial Performance - Yunnan Water Investment reported a revenue of RMB 1.2 billion for the interim period, representing a year-on-year increase of 15%[9]. - The company achieved a net profit of RMB 300 million, up 20% compared to the same period last year[9]. - Revenue for the six months ended June 30, 2019, was RMB 2,593,757,000, representing a 7.1% increase from RMB 2,422,877,000 in the same period of 2018[25]. - Gross profit increased by 26.9% to RMB 738,289,000 compared to RMB 581,866,000 in the previous year[25]. - Profit for the period was RMB 121,040,000, slightly down from RMB 127,095,000 in the previous year, a decrease of 4.8%[114]. - Basic earnings per share decreased by 24.5% to RMB 0.050 from RMB 0.066 in the same period of 2018[25]. - The Group recorded a profit before income tax of approximately RMB 155.9 million for the six months ended June 30, 2019, representing a decrease of approximately 3.0% compared to approximately RMB 160.7 million for the six months ended June 30, 2018[66]. Market Expansion and Development - The company plans to expand its market presence in Yunnan province, targeting a 25% increase in service coverage by the end of the fiscal year[9]. - Future guidance estimates a revenue growth of 12% for the next fiscal year, driven by increased demand for water services[9]. - The company is exploring market expansion opportunities, particularly in water resource management and infrastructure development[88]. - The rural sewage treatment sector is expected to become a blue ocean for the water industry, entering a high growth phase due to low treatment rates and urgent quality improvement needs[32]. - The intelligent water business market is anticipated to grow, with a focus on enhancing water information technology and resource integration[30]. Research and Development - The company has allocated RMB 200 million for research and development in new technologies for water purification[9]. - New product development includes the introduction of smart water meters, expected to enhance operational efficiency by 30%[9]. - New product development initiatives are underway, focusing on sustainable water solutions and technology integration[88]. Financial Position and Cash Flow - The interim report highlights a strong cash flow position with RMB 500 million in cash reserves, providing flexibility for future investments[9]. - The Group's total cash balance increased by approximately RMB 630.7 million, from approximately RMB 2,214.4 million as of December 31, 2018, to approximately RMB 2,845.1 million as of June 30, 2019, representing an increase of approximately 28.5%[68]. - The Group recorded cost of sales of approximately RMB 1,855.5 million, representing a period-on-period increase of approximately RMB 14.5 million or a growth rate of approximately 0.8% compared to RMB 1,841.0 million for the six months ended June 30, 2018[63]. - The Group's liquidity risk management includes monitoring rolling forecasts to ensure sufficient cash and cash equivalents to meet operational needs[5.2]. Strategic Initiatives and Acquisitions - Yunnan Water Investment is exploring potential acquisitions to enhance its service capabilities and market share[9]. - The Company conditionally agreed to acquire 20% of Fujian Dongfei Environment Group Co., Ltd. for RMB 120,000,000 and to subscribe for an additional 20% at a consideration of RMB 200,000,000[73]. - A joint venture agreement was established for Luoding City Yunshui Environmental Protection Co., Ltd. with a total investment amount of RMB 732,882,600[73]. Environmental and Regulatory Factors - The water business industry is expected to see new market space due to the implementation of the Prevention and Control of Soil Pollution Law and the Three-Year Action Plan on Urban Wastewater Treatment[30]. - Stricter environmental law enforcement has led to increased prices for industrial and medical solid waste treatment, indicating a growing market space and higher requirements for treatment capacity and efficiency[34]. - The solid waste treatment industry has maintained strong development momentum, with the implementation of the Soil Pollution Prevention and Control Law and comprehensive waste sorting creating new opportunities and challenges[34]. Corporate Governance and Shareholder Information - The company emphasizes the importance of maintaining transparency in shareholder interests and corporate governance practices[89]. - The total number of shares held by major shareholders indicates significant concentration of ownership, with the top three shareholders holding over 93% of domestic shares[87]. - The Board does not recommend any distribution of interim dividend for the six months ended June 30, 2019, consistent with the previous year[73]. Operational Efficiency and Cost Management - The Group aims to enhance its investment and financing capabilities, technological capabilities, and core competitiveness while expanding its solid waste business segment[43]. - The Group will enhance area management and control financial costs to improve operational efficiency and cash flow[41]. - The Group has achieved operational benefits and continuous development by advancing project construction and improving management levels despite challenges[38].

Financial Performance - Yunnan Water reported a revenue increase of 15% year-on-year, reaching RMB 1.2 billion for the fiscal year[11]. - The company achieved a net profit of RMB 300 million, representing a growth of 20% compared to the previous year[11]. - The company has set a performance guidance of 10-15% revenue growth for the next fiscal year[11]. - Revenue for the year ended December 31, 2018, was RMB 6,255,628, representing a 21.7% increase from RMB 5,142,242 in 2017[20]. - Profit for the year was approximately RMB 496.7 million, a decrease of approximately 8.7% from RMB 544.0 million in the previous year[35]. - Profit attributable to ordinary shareholders was approximately RMB 397.8 million, down from approximately RMB 422.8 million in 2017[21]. - Basic earnings per share for 2018 was RMB 0.333, a decrease of 5.9% from RMB 0.354 in 2017[22]. - The Group's total cash balance decreased by RMB 682.5 million from approximately RMB 2,896.9 million as at 31 December 2017 to approximately RMB 2,214.4 million as at 31 December 2018, representing a decrease of approximately 23.6%[103]. User Growth and Market Expansion - User data showed an increase in active users by 10%, totaling 1.5 million users by the end of the reporting period[11]. - The company plans to expand its market presence in southwestern China, targeting a 25% increase in market share over the next three years[11]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2020[154]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a projected growth of 25%[164]. Product Development and Innovation - New product development includes the launch of a smart water management system, expected to enhance operational efficiency by 30%[11]. - New product development initiatives were highlighted, with an investment of 50 million allocated for R&D in advanced water treatment technologies[155]. - The company has invested 100 million RMB in research and development for innovative water management solutions, aiming to lead in environmental sustainability[164]. Strategic Acquisitions and Investments - Yunnan Water is exploring potential acquisitions to diversify its service offerings, with a budget of RMB 500 million allocated for this purpose[11]. - A strategic acquisition was announced, with the company acquiring a local competitor for 200 million, aimed at enhancing operational capabilities[157]. - The company conditionally agreed to acquire 20% equity interests in Fujian Dongfei Environment Group Co., Ltd. for RMB 120,000,000 and to subscribe for another 20% for RMB 200,000,000[131]. Environmental Commitment - The management emphasized a commitment to environmental sustainability, with plans to reduce water waste by 15% over the next five years[11]. - The company emphasized its commitment to sustainability, with a goal to reduce operational carbon emissions by 30% by 2025[156]. - The environmental protection industry is expected to benefit from new policies and improved financing conditions, presenting new opportunities[46]. Financial Management and Cost Control - Investment in technology upgrades is projected to be around RMB 200 million, aimed at improving service delivery and customer satisfaction[11]. - The financial controller highlighted a reduction in operational costs by 5% through improved efficiency measures implemented in the last quarter[167]. - The Group's gearing ratio increased from approximately 61.96% as at 31 December 2017 to approximately 67.98% as at 31 December 2018, mainly due to increased scale of debt financing during the Reporting Period[103]. Management and Governance - The company has appointed several key executives with extensive experience in management and finance, enhancing its leadership team[149]. - The management team includes individuals with extensive backgrounds in finance, law, and business administration, enhancing the Company's strategic capabilities[158]. - The Company emphasizes compliance with laws and regulations, ensuring adherence to the Articles of Association and resolutions of Shareholders' meetings[158]. Shareholder Returns and Dividends - The Board recommended a final dividend of RMB 0.15 per ordinary share for 2018, up from RMB 0.13 per share in 2017[23]. - The final dividend declared is RMB0.15 per share, amounting to approximately RMB179.0 million, subject to shareholder approval at the AGM[181]. - The company emphasizes shareholder returns and regularly distributes cash dividends[181].