[Important Notice](index=3&type=section&id=I.%20Important%20Notice) This chapter confirms the board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, explicitly stating it is unaudited - The company's board of directors, supervisory board, and directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[6](index=6&type=chunk) - All company directors attended the board meeting to review the quarterly report[6](index=6&type=chunk) - This company's first quarter report is unaudited[6](index=6&type=chunk) [Company Overview](index=3&type=section&id=II.%20Company%20Overview) This chapter outlines the company's key financial data for Q1 2020, including balance sheet, operating results, and cash flow metrics, along with detailed shareholder structure information at the end of the reporting period [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) The company's Q1 2020 key financial data shows slight growth in total assets and net assets attributable to shareholders, but a significant decline in net cash flow from operating activities, operating revenue, and net profit attributable to shareholders Key Financial Indicators | Indicator | End of Current Period / Year-to-Date | End of Prior Year / Prior Year-to-Date | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet Items:** | | | | | Total Assets | 16,732,977,047.43 | 15,575,553,892.38 | 7.43 | | Net Assets Attributable to Listed Company Shareholders | 5,227,478,387.49 | 5,176,346,966.56 | 0.99 | | **Income Statement Items:** | | | | | Operating Revenue | 335,335,070.63 | 353,409,662.94 | -5.11 | | Net Profit Attributable to Listed Company Shareholders | 51,131,420.93 | 85,050,094.72 | -39.88 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 44,095,269.99 | 78,009,599.72 | -43.47 | | Weighted Average Return on Net Assets (%) | 0.98 | 1.69 | Decrease by 0.71 percentage points | | Basic Earnings Per Share (CNY/share) | 0.07 | 0.12 | -41.67 | | Diluted Earnings Per Share (CNY/share) | 0.07 | 0.12 | -41.67 | | **Cash Flow Statement Items:** | | | | | Net Cash Flow from Operating Activities | -94,011,877.85 | 57,926,837.45 | -262.29 | Non-Recurring Gains and Losses | Item | Current Period Amount (CNY) | | :--- | :--- | | Government grants included in current profit and loss | 7,040,000.00 | | Other non-operating income and expenses apart from the above | -7,547.17 | | Impact of minority interests (after tax) | 3,698.11 | | Total | 7,036,150.94 | [Shareholder Information at Report End: Total Shareholders, Top Ten Shareholders, Top Ten Non-Restricted Shareholders](index=4&type=section&id=2.2%20Shareholder%20Information%20at%20Report%20End%3A%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20Top%20Ten%20Non-Restricted%20Shareholders) As of the end of the reporting period, the company had 46,491 shareholders, with Wuhan Water Group Co. Ltd. and Yangtze Ecological Environmental Protection Group Co. Ltd. as the top two, holding 40.18% and 15.00% respectively, and Yangtze Ecological Environmental Protection Group Co. Ltd. being a concerted party with Three Gorges Capital Holdings Co. Ltd - Total shareholders: **46,491** households[9](index=9&type=chunk) Top Shareholders at Period-End | Shareholder Name (Full) | Shares Held at Period-End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Wuhan Water Group Co. Ltd. | 285,100,546 | 40.18 | State-owned Legal Person | | Yangtze Ecological Environmental Protection Group Co. Ltd. | 106,435,454 | 15.00 | State-owned Legal Person | | Beijing Bewell Technology Co. Ltd. | 35,731,092 | 5.04 | Domestic Non-state-owned Legal Person | | Three Gorges Capital Holdings Co. Ltd. | 34,768,416 | 4.90 | State-owned Legal Person | - Yangtze Ecological Environmental Protection Group Co. Ltd. and Three Gorges Capital Holdings Co. Ltd. are both subsidiaries of China Three Gorges Corporation, acting as concerted parties[11](index=11&type=chunk) [Preferred Shareholder Information at Report End: Total Preferred Shareholders, Top Ten Preferred Shareholders, Top Ten Non-Restricted Preferred Shareholders](index=5&type=section&id=2.3%20Preferred%20Shareholder%20Information%20at%20Report%20End%3A%20Total%20Preferred%20Shareholders%2C%20Top%20Ten%20Preferred%20Shareholders%2C%20Top%20Ten%20Non-Restricted%20Preferred%20Shareholders) The company had no preferred shareholders at the end of the reporting period - Not applicable, the company has no preferred shareholders[11](index=11&type=chunk) [Significant Events](index=5&type=section&id=III.%20Significant%20Events) This chapter details significant financial indicator changes and their causes during Q1 2020, along with key events such as major equity transfers, legal proceedings updates, and green bond issuance [Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20Key%20Financial%20Statement%20Items%20and%20Indicators) Several of the company's financial indicators underwent significant changes in Q1 2020, with cash and cash equivalents and bonds payable substantially increasing due to corporate bond issuance, while operating profit and net profit significantly declined due to pandemic impact, reduced water supply and sewage revenue, increased costs, and higher exchange losses and interest expenses Major Financial Item Changes and Reasons | Item | Period-End Balance / Current Period Amount (CNY) | Year-Beginning Balance / Prior Year Same Period Amount (CNY) | Change | | :--- | :--- | :--- | :--- | | **Balance Sheet Item Changes:** | | | | | Cash and cash equivalents | 2,044,796,724.52 | 1,440,244,019.12 | 41.98% | | Prepaid accounts | 4,416,015.01 | 1,484,138.08 | 197.55% | | Inventories | 5,286,842.98 | 1,847,277.40 | 186.20% | | Other non-current assets | 167,956,298.11 | 34,418,759.01 | 387.98% | | Advances from customers | 525,163.87 | 1,027,212.96 | -48.87% | | Taxes payable | 28,672,159.45 | 20,309,167.20 | 41.18% | | Bonds payable | 1,215,406,799.94 | 349,452,853.06 | 247.80% | | **Income Statement Item Changes:** | | | | | Administrative expenses | 8,469,369.79 | 13,606,450.40 | -37.75% | | Financial expenses | 64,867,570.05 | 28,789,582.45 | 125.32% | | Credit impairment losses | -4,207,083.30 | -11,334,746.32 | -62.88% | | Operating profit | 53,272,794.40 | 105,612,289.81 | -49.56% | | Non-operating expenses | 7,547.17 | 0 | 100.00% | | Total profit | 60,305,247.23 | 112,652,949.81 | -46.47% | | Income tax expense | 9,330,234.41 | 28,346,575.23 | -67.09% | | Net profit | 50,975,012.82 | 84,306,374.58 | -39.54% | | Minority interest income/loss | -156,408.11 | -743,720.14 | 78.97% | | Net profit attributable to listed company shareholders | 51,131,420.93 | 85,050,094.72 | -39.88% | | Net profit attributable to listed company shareholders after deducting non-recurring gains and losses | 44,095,269.99 | 78,009,599.72 | -43.47% | | Net cash flow from operating activities | -94,011,877.85 | 57,926,837.45 | -262.29% | | Net cash flow from financing activities | 1,181,784,792.87 | 508,879,822.14 | 132.23% | - Cash and cash equivalents at period-end increased by **41.98%**, primarily due to the company's issuance of corporate bonds during this period[13](index=13&type=chunk) - Operating profit, total profit, net profit, net profit attributable to listed company shareholders, and net profit attributable to listed company shareholders after deducting non-recurring gains and losses decreased by **49.56%**, **46.47%**, **39.54%**, **39.88%**, and **43.47%** respectively compared to the same period last year, primarily due to: (1) reduced water supply and sewage revenue and increased costs from disinfectant expenses due to the pandemic; (2) increased financial expenses from exchange losses due to exchange rate fluctuations and increased loan principal and interest expenses[13](index=13&type=chunk) - Net cash flow from operating activities decreased by **262.29%** compared to the same period last year, mainly due to uncollected sewage treatment service fees impacted by the pandemic during this period[14](index=14&type=chunk) [Analysis of Progress, Impact, and Solutions for Significant Events](index=7&type=section&id=3.2%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) During the reporting period, the company completed the equity transfer of 15% shares from Wuhan Water Group to Yangtze Environmental Protection Group, resolved a construction contract dispute with China Railway Tunnel Group Co. Ltd. requiring compensation payment, and successfully issued green bonds - Wuhan Water Group has transferred **15%** of its shares in Wuhan Holdings to Yangtze Ecological Environmental Protection Group Co. Ltd., with the equity transfer completed on January 16, 2020[15](index=15&type=chunk) - The construction contract dispute between the company's controlling subsidiary, Wuhan Yangtze River Tunnel Construction Co. Ltd., and China Railway Tunnel Group Co. Ltd. has been arbitrated, requiring Yangtze River Tunnel Co. to pay **CNY 11,914,184.6**[15](index=15&type=chunk) - The company completed the book-building and issuance of green bonds on March 9, 2020, having previously obtained approval from the National Development and Reform Commission[15](index=15&type=chunk) [Unfulfilled Commitments Beyond Due Date During Reporting Period](index=7&type=section&id=3.3%20Unfulfilled%20Commitments%20Beyond%20Due%20Date%20During%20Reporting%20Period) The company had no unfulfilled commitments beyond their due date during the reporting period - Not applicable[15](index=15&type=chunk) [Warning and Explanation for Potential Cumulative Net Profit Loss or Significant Change from Prior Year-End to Next Reporting Period End](index=7&type=section&id=3.4%20Warning%20and%20Explanation%20for%20Potential%20Cumulative%20Net%20Profit%20Loss%20or%20Significant%20Change%20from%20Prior%20Year-End%20to%20Next%20Reporting%20Period%20End) The company had no warnings regarding potential cumulative net profit loss or significant changes during the reporting period - Not applicable[15](index=15&type=chunk) [Appendix](index=8&type=section&id=IV.%20Appendix) The appendix includes the company's unaudited Q1 2020 financial statements, comprising consolidated and parent company balance sheets, income statements, and cash flow statements, along with explanations of new accounting standard implementation and audit report status [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section provides the company's unaudited Q1 2020 consolidated and parent company financial statements, detailing assets, liabilities, owner's equity, revenue, expenses, and cash flow data [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, the company's consolidated total assets amounted to CNY 16.733 billion, a 7.43% increase from year-end 2019, primarily driven by significant increases in cash and cash equivalents and bonds payable | Item | March 31, 2020 (CNY) | December 31, 2019 (CNY) | | :--- | :--- | :--- | | Cash and cash equivalents | 2,044,796,724.52 | 1,440,244,019.12 | | Accounts receivable | 2,581,380,929.62 | 2,224,202,928.60 | | Prepaid accounts | 4,416,015.01 | 1,484,138.08 | | Inventories | 5,286,842.98 | 1,847,277.40 | | Total current assets | 4,802,575,145.26 | 3,820,843,817.41 | | Total non-current assets | 11,930,401,902.17 | 11,754,710,074.97 | | Total assets | 16,732,977,047.43 | 15,575,553,892.38 | | Short-term borrowings | 1,930,000,000.00 | 1,908,000,000.00 | | Accounts payable | 2,244,575,410.81 | 2,428,460,228.21 | | Bonds payable | 1,215,406,799.94 | 349,452,853.06 | | Total liabilities | 11,260,803,645.62 | 10,154,355,503.39 | | Total owner's equity attributable to parent company | 5,227,478,387.49 | 5,176,346,966.56 | | Total owner's equity | 5,472,173,401.81 | 5,421,198,388.99 | [Parent Company Balance Sheet](index=10&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2020, the parent company's total assets amounted to CNY 5.989 billion, a significant increase from year-end 2019, primarily due to substantial increases in cash and cash equivalents and bonds payable | Item | March 31, 2020 (CNY) | December 31, 2019 (CNY) | | :--- | :--- | :--- | | Cash and cash equivalents | 949,963,174.80 | 81,372,212.43 | | Accounts receivable | 51,812,168.94 | 15,619,321.26 | | Total current assets | 1,753,292,038.40 | 840,431,731.24 | | Total assets | 5,988,688,302.91 | 5,057,521,804.87 | | Short-term borrowings | 300,000,000.00 | 226,000,000.00 | | Bonds payable | 1,215,406,799.94 | 349,452,853.06 | | Total liabilities | 2,065,374,825.41 | 1,131,987,520.01 | | Total owner's equity | 3,923,313,477.50 | 3,925,534,284.86 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2020, the company's consolidated total operating revenue was CNY 335 million, a 5.11% year-on-year decrease, with net profit attributable to parent company shareholders at CNY 51.13 million, a significant 39.88% year-on-year decline, mainly due to the pandemic and increased financial expenses | Item | Q1 2020 (CNY) | Q1 2019 (CNY) | | :--- | :--- | :--- | | Total operating revenue | 335,335,070.63 | 353,409,662.94 | | Total operating costs | 301,399,137.30 | 264,591,171.61 | | Financial expenses | 64,867,570.05 | 28,789,582.45 | | Operating profit | 53,272,794.40 | 105,612,289.81 | | Total profit | 60,305,247.23 | 112,652,949.81 | | Net profit | 50,975,012.82 | 84,306,374.58 | | Net profit attributable to parent company shareholders | 51,131,420.93 | 85,050,094.72 | | Basic earnings per share (CNY/share) | 0.07 | 0.12 | | Diluted earnings per share (CNY/share) | 0.07 | 0.12 | [Parent Company Income Statement](index=15&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2020, the parent company's operating revenue was CNY 42.94 million, with a net loss of CNY 2.22 million, an expanded loss compared to the prior year, primarily due to decreased operating revenue and various expenses | Item | Q1 2020 (CNY) | Q1 2019 (CNY) | | :--- | :--- | :--- | | Operating revenue | 42,936,667.25 | 52,921,581.17 | | Operating profit | -9,833,573.38 | -8,604,181.35 | | Total profit | -2,793,573.38 | -1,564,181.35 | | Net profit | -2,220,807.36 | -605,581.04 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2020, the company's net cash flow from operating activities was -CNY 94.01 million, a significant 262.29% year-on-year decrease, mainly due to uncollected sewage treatment service fees impacted by the pandemic, while net cash flow from financing activities substantially increased by 132.23% to CNY 1.182 billion due to corporate bond issuance | Item | Q1 2020 (CNY) | Q1 2019 (CNY) | | :--- | :--- | :--- | | Net cash flow from operating activities | -94,011,877.85 | 57,926,837.45 | | Net cash flow from investing activities | -481,297,951.96 | -596,422,166.09 | | Net cash flow from financing activities | 1,181,784,792.87 | 508,879,822.14 | | Net increase in cash and cash equivalents | 606,486,496.12 | -29,625,581.84 | | Cash and cash equivalents at period-end | 2,014,609,594.80 | 1,087,328,315.77 | [Parent Company Cash Flow Statement](index=18&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2020, the parent company's cash flows from operating and investing activities were negative, but net cash flow from financing activities reached CNY 934 million, primarily due to increased borrowings, leading to a significant increase in cash and cash equivalents at period-end | Item | Q1 2020 (CNY) | Q1 2019 (CNY) | | :--- | :--- | :--- | | Net cash flow from operating activities | -29,821,138.99 | -3,930,369.54 | | Net cash flow from investing activities | -33,674,504.20 | -83,822,299.74 | | Net cash flow from financing activities | 934,020,396.28 | 73,811,833.33 | | Net increase in cash and cash equivalents | 870,524,753.09 | -13,940,835.95 | | Cash and cash equivalents at period-end | 949,963,174.80 | 212,943,771.85 | [Information on Adjustments to Beginning-of-Year Financial Statements Upon First Adoption of New Revenue and Lease Standards from 2020](index=19&type=section&id=4.2%20Information%20on%20Adjustments%20to%20Beginning-of-Year%20Financial%20Statements%20Upon%20First%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020) The company's Q1 2020 report does not involve adjustments to beginning-of-year financial statements upon first adoption of new revenue and lease standards - Not applicable[35](index=35&type=chunk) [Explanation of Retrospective Adjustments to Prior Period Comparative Data Upon First Adoption of New Revenue and Lease Standards from 2020](index=19&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustments%20to%20Prior%20Period%20Comparative%20Data%20Upon%20First%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020) The company's Q1 2020 report does not involve retrospective adjustments to prior period comparative data upon first adoption of new revenue and lease standards - Not applicable[35](index=35&type=chunk) [Audit Report](index=19&type=section&id=4.4%20Audit%20Report) The company's Q1 2020 report is unaudited and therefore does not include an audit report - Not applicable[35](index=35&type=chunk)

[Company Profile and Financial Overview](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company's first three quarters of 2019 saw steady growth in operating revenue and net profit, significant asset expansion driven by investments, and a stable controlling shareholder structure [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of September 30, 2019, the company reported significant growth in total assets, operating revenue, and net profit for the first three quarters, with non-recurring gains primarily from government subsidies Financial Performance Summary | Indicator | Year-to-Date (Jan-Sep) | Prior Year-to-Date (Jan-Sep) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,154,326,955.60 | 1,050,242,241.29 | 9.91% | | Net Profit Attributable to Shareholders (RMB) | 252,796,061.93 | 227,593,331.13 | 11.07% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 229,677,137.66 | 205,331,105.66 | 11.86% | | Net Cash Flow from Operating Activities (RMB) | 301,146,630.90 | 265,103,199.09 | 13.60% | | Basic Earnings Per Share (RMB/share) | 0.36 | 0.32 | 12.50% | | Weighted Average Return on Net Assets (%) | 4.98% | 4.68% | Increased by 0.30 percentage points | | **Balance Sheet Indicators** | **As of Report Period End** | **As of Prior Year End** | **Change (%)** | | Total Assets (RMB) | 15,132,365,910.94 | 12,891,937,349.07 | 17.38% | | Net Assets Attributable to Shareholders (RMB) | 5,179,868,244.22 | 4,995,477,513.94 | 3.69% | - Year-to-date (Jan-Sep), the company's total non-recurring gains and losses amounted to **RMB 23.1189 million**, primarily comprising **RMB 21.4844 million** in government subsidies[10](index=10&type=chunk) [Shareholder Structure](index=4&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the report period end, the company had 34,694 shareholders, with Wuhan Water Group Co., Ltd. as the controlling shareholder, and Beijing Originwater Technology Co., Ltd. and China Three Gorges Capital Holdings Co., Ltd. as the second and third largest shareholders Top Shareholders | Shareholder Name | Number of Shares Held | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Wuhan Water Group Co., Ltd. | 391,536,000 | 55.18 | | Beijing Originwater Technology Co., Ltd. | 35,731,092 | 5.04 | | China Three Gorges Capital Holdings Co., Ltd. | 34,768,416 | 4.90 | [Significant Events](index=5&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) During the reporting period, the company's financial position saw significant changes due to project investments, financing, and accounting policy shifts, alongside key business developments including a major equity transfer, management changes, and subsidiary financing guarantees [Analysis of Significant Changes in Key Financial Indicators](index=5&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Several financial statement items showed significant changes from the beginning of the year, with substantial increases in assets driven by new borrowings and project investments, and increased liabilities reflecting intensified financing for construction, with some changes also due to the initial adoption of new financial instrument standards - Cash, long-term borrowings, and notes payable increased by **52.37%**, **61.87%**, and **424.10%** respectively from the beginning of the year, primarily due to increased bank borrowings and bill financing to meet production and construction funding needs[14](index=14&type=chunk)[15](index=15&type=chunk) - Intangible assets increased by **63.93%** from the beginning of the year, mainly because the company's BOT projects commenced operations, reclassifying concession rights into intangible assets[14](index=14&type=chunk) - Long-term equity investments increased by **39.45%** due to the current period's investment in China Construction Wuhan Huangxiaoriver Airport River Water Environment Comprehensive Treatment Construction and Operation Co., Ltd[14](index=14&type=chunk) - Available-for-sale financial assets decreased by **100%**, while other equity instrument investments and other comprehensive income increased by **100%** and **133.12%** respectively, primarily due to the reclassification of original available-for-sale financial assets upon adoption of new financial instrument standards[14](index=14&type=chunk)[15](index=15&type=chunk) [Progress of Significant Matters](index=7&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) During the reporting period, the company saw three significant developments: the controlling shareholder's proposed 15% equity transfer (approved by SASAC), a change in financial controller, and the provision of a 100% joint and several liability guarantee for a subsidiary's PPP project financing - Controlling shareholder Wuhan Water Group Co., Ltd. plans to transfer **15%** of the company's shares to China Yangtze River Ecology and Environment Group Co., Ltd., a matter approved by Wuhan SASAC in July 2019[17](index=17&type=chunk) - To facilitate financing for the Huangmei County Township Wastewater Treatment Facilities PPP project, the company provided a **100%** joint and several liability guarantee for the bank loans of its controlling subsidiary, Huangmei Jize Water Environment Technology Co., Ltd[17](index=17&type=chunk)[18](index=18&type=chunk) [Financial Statements and Notes](index=8&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) This appendix provides the company's unaudited consolidated and parent financial statements as of September 30, 2019, and details adjustments made to the 2019 opening financial statements due to the initial adoption of new financial instrument standards, primarily involving financial asset reclassification [Financial Statement Overview](index=8&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section includes the company's unaudited consolidated and parent company's three major financial statements, comprehensively reflecting the financial position as of September 30, 2019, and the operating results and cash flow for the first three quarters of 2019 - The appendix provides unaudited consolidated and parent company financial statements: **Balance Sheet**, **Income Statement**, and **Cash Flow Statement**[19](index=19&type=chunk)[24](index=24&type=chunk)[28](index=28&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) [Impact of Accounting Policy Changes](index=22&type=section&id=4.2%20%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) Effective January 1, 2019, the company adopted new financial instrument standards, adjusting opening financial statements primarily by reclassifying equity investments from 'available-for-sale financial assets' to 'other equity instrument investments' measured at fair value, with changes recognized in 'other comprehensive income' - The company adopted the Ministry of Finance's revised accounting standards for financial instruments effective **January 1, 2019**, adjusting the opening financial statements without requiring adjustments to prior comparative data[45](index=45&type=chunk)[49](index=49&type=chunk) Adjustments to Consolidated Financial Statements | Adjustment Item (Consolidated Statement) | Before Adjustment (2018-12-31) (RMB) | After Adjustment (2019-01-01) (RMB) | Change Amount (RMB) | | :--- | :--- | :--- | :--- | | Available-for-Sale Financial Assets | 5,000,000.00 | 0 | -5,000,000.00 | | Other Equity Instrument Investments | 0 | 24,175,900.00 | 24,175,900.00 | | Other Comprehensive Income | 14,405,256.52 | 33,581,156.52 | 19,175,900.00 | | Retained Earnings | 2,524,177,682.07 | 2,521,035,243.77 | -3,142,438.30 |

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 738,778,742.10, representing a 6.04% increase compared to CNY 696,692,993.99 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2019 was CNY 198,771,265.45, which is a 17.74% increase from CNY 168,826,192.72 in the previous year[19]. - Basic earnings per share for the first half of 2019 were CNY 0.28, up 16.67% from CNY 0.24 in the same period last year[20]. - The weighted average return on equity increased to 3.90%, up 0.42 percentage points from 3.48% in the previous year[20]. - The company reported non-recurring gains of CNY 15,646,108.58, which included government subsidies and gains from the disposal of non-current assets[23]. - The company reported a total of 87,733,943.69 RMB in related party transactions with its controlling shareholder, Wuhan Water Group Co., Ltd., during the reporting period[62]. - The company reported a net loss of 98,630,187.00 million RMB for the current period[152]. - The total comprehensive income for the current period was 171,054,501.00 million RMB, reflecting a decrease of 331,343.4 million RMB compared to the previous period[150]. Cash Flow - The net cash flow from operating activities increased by 144.24% to CNY 172,500,399.03, primarily due to an increase in the collection of sewage treatment service fees[21]. - The company achieved a sewage treatment volume of approximately 36,146.44 million tons in the first half of 2019, completing 47.8% of the annual target of 75,619 million tons[34]. - The actual water supply volume reached approximately 15,798.25 million tons, representing 46.88% of the annual target of 33,700 million tons[34]. - The company's operating revenue for the first half of 2019 was approximately 73,877.87 million yuan, achieving 46.25% of the annual target of 159,737 million yuan[34]. - The net cash flow from operating activities improved to 172,500,399.03, compared to 70,628,362.94 in the previous year, marking an increase of about 143.4%[137]. - Cash inflow from operating activities increased to 601,292,126.84, up from 544,224,538.79, reflecting a growth of about 10.5%[136]. - Cash flow from investing activities showed a significant outflow of -791,220,390.79, worsening from -637,215,741.99 year-over-year[138]. - Cash flow from financing activities generated a net inflow of 737,345,227.30, down from 1,252,227,354.99, indicating a decrease of approximately 41.0%[138]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 14,077,469,298.54, a 9.20% increase from CNY 12,891,937,349.07 at the end of the previous year[19]. - The net assets attributable to shareholders at the end of the reporting period were CNY 5,125,843,447.74, reflecting a 2.61% increase from CNY 4,995,477,513.94 at the end of the previous year[19]. - The company's total current assets reached RMB 4,013,390,726.89, an increase from RMB 3,616,408,536.82 at the end of 2018[120]. - The company's asset-liability ratio increased to 61.87% from 59.36% year-on-year, reflecting a 2.51% rise[115]. - Total liabilities reached ¥8,709,061,970.09, up from ¥7,652,486,172.08, marking a growth of around 13.8%[122]. - Long-term borrowings increased to ¥2,961,604,536.44 from ¥2,253,738,434.69, representing a growth of around 31.2%[121]. Market Position and Operations - The company operates nine wastewater treatment plants with a total design capacity of 2.06 million tons per day, serving the main urban area of Wuhan[24]. - The company’s water supply business holds over 90% market share in the Hankou area, operating two water plants with a total capacity of 1.3 million tons per day[26]. - The company’s wastewater treatment business is the leading provider in Wuhan, with stable inflow quality and quantity, ensuring compliance with treatment standards[29]. - The company is actively expanding its market presence by successfully bidding for projects in surrounding regions, enhancing its competitive position[29]. - The company has secured various projects through public bidding, including a 100,000 tons/day wastewater treatment plant in the Dongxihu District and a 10,000 tons/day project in Yidu City, with concession periods of 21 and 29 years respectively[25]. Environmental Compliance and Management - The company operates multiple wastewater treatment plants, all of which complied with pollution discharge standards in the first half of 2019, with no instances of exceeding limits reported[70][71][72][73][74][75][76][77][78][79]. - The company has implemented advanced treatment standards, with several plants operating under Class A discharge standards, ensuring high-quality effluent[71][72][74][76][79]. - Continuous monitoring systems are in place at various wastewater treatment plants, with manual monitoring conducted daily and automated monitoring every two hours[87][88][89][90]. - The company is committed to enhancing environmental risk monitoring and emergency measures to prevent pollution incidents[86]. - The environmental monitoring data is published in real-time on the Wuhan Environmental Protection Bureau's online monitoring management system[89][90]. Shareholder and Corporate Governance - The controlling shareholder, Water Group, transferred 106,435,454 shares to Changjiang Environmental, representing 15% of the total share capital of the company[53]. - The company held its third extraordinary general meeting on June 28, 2019, approving the change in the performance period of the equity incentive commitment made by the controlling shareholder, Water Group[59]. - The company has committed to implement the management equity incentive plan by June 30, 2024, as per the regulations of the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission[56]. - The largest shareholder, Wuhan Water Group Co., Ltd., holds 391,536,000 shares, representing 55.18% of the total shares[101]. - The company has undergone changes in its board of directors, with several members resigning and new members elected[103]. Risk Management - The company has faced risks related to water source pollution, production cost increases, and compliance with new environmental standards, necessitating upgrades to water treatment facilities[49][50]. - The company is actively managing risks related to interest rates and exchange rates to control financing costs and project expenses[50][51]. - The company is focusing on enhancing its risk management strategies in response to the current financial performance[152].

2019 年第一季度报告 公司代码：600168 公司简称：武汉控股 武汉三镇实业控股股份有限公司 2019 年第一季度报告 1 / 26 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 5 | | 四、 | 附录 8 | 2019 年第一季度报告 一、 重要提示 非经常性损益项目和金额 √适用 □不适用 3 / 26 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人黄思、主管会计工作负责人曹明及会计机构负责人（会计主管人员）孙丽保证季 度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 2019 年第一季度报告 单位：元 币种：人民币 | 项目 | 本期金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益 | 660.00 | | | 计入当期损益的政府补助，但与公 | 7,040,000.00 | | | 司 ...

Financial Performance - The company's operating revenue for 2018 was CNY 1,451,353,305.32, representing a 16.02% increase compared to CNY 1,250,921,369.14 in 2017[21] - The net profit attributable to shareholders for 2018 was CNY 279,926,419.66, a decrease of 14.64% from CNY 327,948,552.15 in 2017[21] - The basic earnings per share for 2018 was CNY 0.39, down 15.22% from CNY 0.46 in 2017[23] - The weighted average return on equity decreased to 5.74% in 2018 from 7.00% in 2017, a decline of 1.26 percentage points[23] - The profit margin for 2018 was 30.16%, slightly up from 30.07% in 2017, indicating a stable profitability despite revenue decline[116] - The company reported a total revenue of 248.86 million for the year 2018[185] Cash Flow and Assets - The net cash flow from operating activities increased by 81.86% to CNY 277,306,432.05 from CNY 152,485,827.40 in the previous year[21] - Total assets at the end of 2018 reached CNY 12,891,937,349.07, a 23.11% increase from CNY 10,471,797,260.18 in 2017[22] - The company reported a significant increase in cash flow from operating activities, amounting to 277,306.43 million yuan, a year-on-year increase of 81.86%[52] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.19 per 10 shares, totaling CNY 84,438,793.35 based on the total share capital as of December 31, 2018[5] - The company did not propose any cash profit distribution plan for ordinary shareholders during the reporting period, despite having positive distributable profits[117] - The company has established a cash dividend policy, ensuring that cumulative cash distributions over the last three years will not be less than 30% of the average annual distributable profits[113] Operational Capacity and Projects - The company operates nine wastewater treatment plants with a total design capacity of 2.06 million tons per day, serving the main urban area of Wuhan[31] - The company has secured several new projects, including a 100,000 tons/day wastewater treatment plant in the Dongxihu District, under a 21-year BOT agreement[33] - The company is currently in the construction phase for four new wastewater treatment projects, which are expected to enhance future revenue streams once operational[33] - The company is expanding its wastewater treatment capacity through several projects, including the North Lake and South Taizi Lake treatment plant expansions[45] - The company is actively expanding its wastewater treatment projects in regions such as Yidu, Xiantao, and Huangmei, creating new growth opportunities[102] Market Position and Competition - The company holds a dominant position in the wastewater treatment sector in Wuhan, with a total design treatment capacity of 2.06 million tons per day[37] - The company’s water supply business accounts for over 90% of the market share in the Hankou area, indicating a monopolistic position[38] - The company is focusing on enhancing operational efficiency and expanding market share through competitive bidding in domestic water and environmental projects[102] Environmental Compliance and Standards - The company maintained a comprehensive compliance rate for wastewater discharge of 99.7% and a water quality compliance rate of 99.77%[46] - The company has implemented a comprehensive environmental self-monitoring program to ensure compliance with regulatory requirements[158][159] - The company has established a systematic approach to risk assessment and emergency preparedness across its wastewater treatment operations[157] Financial Management and Costs - Financial expenses surged by 222.52% to CNY 186,462,131.21, primarily due to increased foreign exchange losses from currency depreciation and higher interest expenses from increased borrowing[58] - The total cost for wastewater treatment was CNY 114,583,663.86, accounting for 17.02% of total costs, an increase of 4.37% compared to the previous year[55] - Labor costs reached CNY 117,762,645.50, which is 17.49% of total costs, showing a 6.96% increase compared to last year[55] Management and Governance - The company has a structured decision-making process for the remuneration of directors and senior management based on local salary levels and job complexity[191] - The company has undergone changes in its board and supervisory personnel, with several members leaving due to term expiration and new members being elected[192] - The company is focused on maintaining transparency and accountability in its financial reporting and governance practices[185] Future Outlook and Strategic Initiatives - The company expects a total water supply of 33.7 million tons and a sewage treatment volume of 75,619 tons for the year 2019, with projected revenue of 1,597.37 million RMB and a net profit attributable to shareholders of 296.89 million RMB[107] - The company is actively pursuing new projects to enhance its service offerings and operational efficiency[184] - The company aims to improve its core competitiveness by optimizing its business structure and enhancing its management and technical capabilities[106] Employee and Shareholder Information - The total number of employees in the parent company is 333, while the total number of employees in major subsidiaries is 733, resulting in a combined total of 1,066 employees[196] - The largest shareholder, Wuhan Water Group, holds 391,536,000 shares, representing 55.18% of total shares[175] - The company has maintained a stable shareholder structure with no significant changes in the top ten shareholders during the reporting period[175]

2018 年第三季度报告 公司代码：600168 公司简称：武汉控股 武汉三镇实业控股股份有限公司 2018 年第三季度报告 1 / 21 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人黄思、主管会计工作负责人曹明及会计机构负责人（会计主管人员）孙丽保证季 度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 9 | 2018 年第三季度报告 一、 重要提示 2.1 主要财务数据 3 / 21 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 11,981,831,335.87 10,471,797,260.18 14.42 归属于上市公司 股东的净资产 ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 696,692,993.99, representing a 22.27% increase compared to CNY 569,778,884.48 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 168,826,192.72, a slight increase of 2.04% from CNY 165,445,713.19 in the previous year[17]. - Basic earnings per share for the first half of 2018 were CNY 0.24, up 4.35% from CNY 0.23 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2018 was approximately 168.83 million yuan, achieving 64.76% of the annual target of 260.70 million yuan[34]. - The company reported a comprehensive income total of ¥171,054,501.92, up from ¥163,603,530.68 year-on-year[126]. - The company reported a net profit of CNY 9,833,746.40 for the first half of 2018, a decrease of 31.5% compared to CNY 14,471,968.37 in the same period last year[129]. - Operating profit was negative at CNY -4,083,909.53, contrasting with a positive operating profit of CNY 531,739.65 in the previous year[129]. Cash Flow and Financing - The net cash flow from operating activities decreased by 17.92%, amounting to CNY 70,628,362.94 compared to CNY 86,046,595.33 in the same period last year[17]. - Financial expenses increased significantly by 197.94% due to currency exchange losses and increased borrowing costs for operational needs[40]. - The net cash flow from financing activities increased by 279.89% due to additional borrowings for production and construction needs[40]. - The company experienced a significant increase in cash flow from financing activities, with a net inflow of CNY 1,252,227,354.99 compared to CNY 329,625,187.20 in the previous period[132]. - Total cash and cash equivalents at the end of the period reached CNY 1,341,102,879.79, up from CNY 445,380,664.21 at the end of the previous period[132]. - The company incurred financial expenses of CNY 25,427,822.08, which is an increase from CNY 20,389,304.71 in the previous year[129]. - The total cash inflow from financing activities was CNY 30,000,000.00, while the total cash outflow was CNY 146,272,901.49, resulting in a net cash outflow of CNY 146,272,901.49[135]. Assets and Liabilities - The total assets of the company at the end of the reporting period were CNY 11,704,130,187.97, reflecting an increase of 11.77% from CNY 10,471,797,260.18 at the end of the previous year[17]. - Current liabilities increased to ¥3,093,556,993.65 from ¥2,937,088,489.23, a rise of about 5.3%[119]. - Long-term borrowings rose to ¥2,433,976,799.88 from ¥1,447,467,852.40, reflecting an increase of approximately 68.3%[119]. - Total liabilities reached ¥6,594,754,705.36, up from ¥5,448,846,092.30, indicating a growth of about 21.0%[120]. - Shareholders' equity increased to ¥5,109,375,482.61 from ¥5,022,951,167.88, representing a growth of approximately 1.7%[120]. Market Position and Operations - The company operates nine wastewater treatment plants with a total design capacity of 1.91 million tons per day, serving the main urban area of Wuhan[22]. - The company holds a 30-year exclusive concession agreement for wastewater treatment services with the Wuhan municipal government, effective from April 25, 2012[22]. - The company’s water supply business has a total design capacity of 1.3 million tons per day, capturing over 90% of the market share in the Hankou area[28]. - The company is positioned as a leading player in the water services sector in Central China, focusing on wastewater treatment, water supply, and tunnel operations[27]. - The company achieved a water supply volume of approximately 162.52 million tons in the first half of 2018, completing 51.43% of the annual target of 316 million tons[34]. Environmental Compliance and Risk Management - The company’s wastewater treatment business is characterized by stable influent quality and quantity, primarily from domestic sewage, ensuring compliance with discharge standards[28]. - The company has strengthened its management systems, achieving compliance with ISO9001:2015, ISO14001:2015, and OHSAS18001:2007 standards, indicating effective operational management[30]. - The company is implementing measures to monitor water quality and ensure compliance with discharge standards to mitigate operational risks[50]. - The company has completed various upgrades and expansions across multiple sewage treatment plants to meet higher discharge standards, including the transition from Level B to Level A standards[74][75][76]. - The company has established a comprehensive environmental risk assessment and emergency response framework for its sewage treatment operations[81]. Shareholder and Corporate Governance - The total number of common shareholders at the end of the reporting period was 40,262[98]. - The largest shareholder, Wuhan Water Group Co., Ltd., held 391,536,000 shares, representing 55.18% of the total shares[100]. - The company has committed to actively promote the management equity incentive plan for Wuhan San Zhen Industrial Holdings Co., Ltd. by June 30, 2019[56]. - The company guarantees that it will not harm the independence of Wuhan Holdings post-restructuring and will maintain separation in assets, personnel, finance, and operations[56]. - The company held a second temporary shareholders' meeting on July 20, 2018, to approve changes to the commitment fulfillment period of its controlling shareholder[58]. Financial Reporting and Accounting Practices - The company adheres to the enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[152]. - The company prepares consolidated financial statements based on control, including itself and all subsidiaries as of December 31, 2017[160]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired, which is crucial for financial reporting[159]. - The company applies an aging analysis method for estimating bad debt provisions, with specific percentages for different aging categories, such as 5% for within 1 year and 100% for over 5 years[186]. - The company recognizes impairment losses for financial assets if there is objective evidence of impairment, including significant financial difficulties of the issuer or debtor[176].

2018 年第一季度报告 公司代码：600168 公司简称：武汉控股 武汉三镇实业控股股份有限公司 2018 年第一季度报告 1 / 18 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 5 | | 四、 | 附录 8 | 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 非经常性损益项目和金额 □适用 √不适用 3 / 18 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 11,161,743,977.08 10,471,797,260.18 6.59 归属于上市公司 股东的净资产 4,789,407,812.06 4,811,590,154.10 -0.46 年初至报告期末 上年初至上年报告期末 比上年同期增减(%) 经营活动产生的 现金流量净额 25,414,016.61 34,227,599.84 -25.75 年初至报告期末 上年初至上年报告期末 比上年同期增减（%） 营业收入 338,600,129.35 273,833,433.93 23.65 归属于上市公司 股东的净利润 7 ...

Financial Performance - The company's operating revenue for 2017 was CNY 1,250,921,369.14, representing a 4.41% increase compared to CNY 1,198,104,193.76 in 2016[21] - The net profit attributable to shareholders for 2017 was CNY 327,948,552.15, which is a 9.07% increase from CNY 300,676,486.75 in 2016[21] - The total assets at the end of 2017 reached CNY 10,471,797,260.18, marking a 21.46% increase from CNY 8,621,738,217.50 in 2016[21] - The net assets attributable to shareholders increased to CNY 4,811,590,154.10, a 5.18% rise from CNY 4,574,466,522.53 in 2016[21] - The basic earnings per share for 2017 was CNY 0.46, up 9.52% from CNY 0.42 in 2016[23] - The cash flow from operating activities for 2017 was CNY 152,485,827.40, which is a decrease of 25.88% compared to CNY 205,718,826.48 in 2016[21] - The weighted average return on equity for 2017 was 7.00%, an increase of 0.24 percentage points from 6.76% in 2016[23] - The company reported operating revenue of 1.2509214 billion yuan, with operating profit of 328.3188 million yuan and net profit of 323.5462 million yuan, of which the net profit attributable to shareholders was 327.9486 million yuan[43] Operational Highlights - The company operates nine wastewater treatment plants with a total design capacity of 1.91 million tons per day, serving the main urban area of Wuhan[32] - The total design capacity for the municipal water supply business is 1.3 million tons per day, effectively meeting the regional demand for water[34] - The company has a 30-year exclusive operating right for wastewater treatment services in Wuhan, starting from April 25, 2012[32] - The company achieved a total water supply of 316.685 million tons, a decrease of 1.02825 million tons or 3.14% year-on-year, while the sewage treatment volume increased by 4.02906 million tons or 7.16% year-on-year to 602.8336 million tons[43] - The company holds over 90% market share in the Hankou area for water supply, indicating a regional monopoly position[39] - The company has successfully expanded its market presence by signing several key agreements, including the BOT agreements for sewage treatment projects in Huangmei County and Yidu City, enhancing its competitive position and profitability[38] Investment and Expansion - The company is actively involved in the PPP model for water supply projects, which is expected to provide new market opportunities[36] - The company is focused on enhancing its operational capabilities in response to the increasing regulatory requirements for project management and risk control in the PPP market[94] - The company is exploring partnerships and investments to enhance its overall competitiveness across the entire industry chain, from design to operation[98] - The company plans to accelerate the progress of ongoing projects, including the North Lake (new construction of 800,000 tons/day) and South Prince Lake (expansion of 150,000 tons/day)[98] Cost Management and Financial Strategy - The operating cost was 932,279,705.14 RMB, reflecting a 7.24% increase year-on-year[49] - The company implemented strict cost control measures, resulting in a 50.49% reduction in financial expenses to 57,814,595.42 RMB[49] - The sludge disposal cost rose to 77,175,205.71 CNY, a 36.70% increase from the previous year's 56,455,305.96 CNY[56] - The company has maintained a loan repayment rate of 100% and an interest payment rate of 100% during the reporting period[178] Regulatory and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7] - The company has complied with the regulations regarding profit distribution and has ensured that minority investors have the opportunity to express their opinions[104] - The company has not encountered any major litigation or arbitration matters during the reporting period[120] - The company has maintained compliance with governance regulations, ensuring clear responsibilities among shareholders, the board, and management[163] Leadership and Governance - The company appointed Huang Si as the new chairman of the board on June 12, 2017, following the resignation of Wang Xianbing[153] - The company reported a leadership change with Zhou Qiang resigning as general manager on June 15, 2017, while Zhang Yong is acting as the interim general manager[153] - The company has a diverse board with members holding various positions in other organizations, enhancing its governance structure[154] - The leadership changes are expected to drive the company's strategic initiatives and enhance its competitive position in the market[153] Environmental and Social Responsibility - The company has actively upgraded its wastewater treatment plants to meet increasing environmental protection demands and regulatory standards[136] - The company emphasizes social responsibility by contributing to urban development and improving public welfare through its core business operations[136] - The company has not been penalized for any violations of environmental regulations during the reporting period[136] Future Outlook - The company anticipates challenges from intensified competition in the water supply and sewage treatment sectors, necessitating improved market expansion and cost control capabilities[97] - The expected total water supply for 2018 is 31.6 million tons, with sewage treatment volume projected at 64,255 tons, and main operating revenue estimated at 1.33 billion yuan[99] - The company aims to enhance its water supply business by leveraging its accumulated experience in construction, operation, and management, seeking suitable investment opportunities to expand its scale[96]

Financial Performance - Net profit attributable to shareholders rose by 4.28% to CNY 262.85 million for the first nine months[6] - Operating revenue for the first nine months increased by 4.02% to CNY 893.46 million[6] - Basic earnings per share increased by 2.78% to CNY 0.37[7] - Total revenue for Q3 2017 was CNY 323,679,184.29, an increase of 6.4% compared to CNY 304,514,879.14 in Q3 2016[24] - Year-to-date revenue reached CNY 893,458,068.77, up from CNY 858,948,662.51 in the same period last year, reflecting a growth of 4.1%[24] - The total profit for the first nine months of 2017 was 299,686,161.21 CNY, compared to 276,540,497.58 CNY in the same period last year, representing an increase of approximately 8.3%[25] - Net profit for the first nine months of 2017 was CNY 21,789,576.48, a decrease from CNY 33,729,821.34 in the same period last year, representing a decline of approximately 35.4%[29] Assets and Liabilities - Total assets increased by 11.26% to CNY 9.59 billion compared to the end of the previous year[6] - The company's total liabilities increased significantly, with accounts payable rising by 100% due to the issuance of bank acceptance bills for project payments[11] - Total liabilities increased to CNY 4,633,424,822.60 from CNY 3,843,410,318.14, representing a rise of 20.5%[18] - Non-current assets totaled CNY 7,321,280,632.15, up from CNY 6,775,303,942.06, marking an increase of 8.1%[18] - Current liabilities rose to CNY 2,351,391,284.15, compared to CNY 1,755,789,689.32, reflecting a growth of 33.9%[18] - The balance of other non-current assets increased by 141,804.61% compared to the beginning of the year, mainly due to prepayments for equipment and project payments[11] Cash Flow - Cash flow from operating activities decreased by 5.58% to CNY 169.54 million compared to the same period last year[6] - The net cash flow from investing activities decreased by 158.63% year-on-year, attributed to increased investment expenditures for wastewater construction projects[12] - The net cash flow from financing activities increased by 244.76% year-on-year, primarily due to a rise in cash received from borrowings[12] - Cash inflow from financing activities was $95,000,000.00, down from $348,250,000.00, a decrease of about 73%[35] - Cash outflow for dividends and interest payments was $104,005,428.08, slightly up from $101,468,465.96, an increase of about 3%[35] Investments and Income - Investment income increased by 189.15% year-on-year, mainly due to higher returns from investments in Wuhan Hanxi Wastewater Treatment Co., Ltd.[12] - The company received government subsidies amounting to CNY 21.12 million during the reporting period[9] - Other income surged by 100% compared to the previous year, as government subsidies were recognized under this category starting in 2017[12] - The company reported other income of 38,615,943.84 CNY in Q3 2017, compared to 0 CNY in Q3 2016, indicating a significant increase in other income sources[25] Shareholder Information - The number of shareholders reached 41,286 at the end of the reporting period[8] Operational Metrics - The company's operating profit for the first nine months of 2017 was 278,585,739.86 CNY, compared to 108,397,604.55 CNY in the same period last year, indicating a growth of approximately 157.5%[25] - Total operating costs for Q3 2017 were 258,233,184.57 CNY, slightly down from 272,065,248.49 CNY in Q3 2016, a decrease of about 5.1%[25] - The company's financial expenses decreased by 47.63% year-on-year, mainly due to increased foreign exchange gains[12] - The company's tax expenses for Q3 2017 were 14,818,774.05 CNY, compared to 6,009,266.79 CNY in Q3 2016, which is an increase of approximately 146.5%[25]