Financial Performance - The company's operating revenue for the first half of 2020 was ¥723,191,238.24, a decrease of 2.11% compared to ¥738,778,742.10 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥164,619,837.80, down 17.18% from ¥198,771,265.45 in the previous year[19]. - Basic earnings per share for the first half of 2020 were ¥0.23, a decrease of 17.86% from ¥0.28 in the same period last year[20]. - The weighted average return on net assets was 3.13%, down 0.77 percentage points from 3.90% in the previous year[21]. - The company reported a significant decrease of 93.83% in net cash flow from operating activities, primarily due to reduced receivables from sewage treatment service fees[41]. - Financial expenses increased by 34.91% compared to the previous year, mainly due to increased borrowing costs and foreign exchange losses[40]. - The company reported a total comprehensive income of -6,593,319.16 RMB, indicating a significant loss compared to the previous period[162]. - The total equity attributable to the owners of the parent company at the end of the period was 3,925,534.84 RMB, reflecting a decrease of 81,807.70 RMB from the beginning of the year[162]. Assets and Liabilities - The total assets at the end of the reporting period were ¥16,668,843,683.23, an increase of 7.02% from ¥15,575,553,892.38 at the end of the previous year[19]. - The total liabilities amounted to CNY 11.16 billion, an increase of 9.9% compared to CNY 10.15 billion at the end of 2019[134]. - Long-term borrowings rose by 54.34% to ¥4.57 billion from ¥2.96 billion, as the company increased borrowing for fixed asset construction[45]. - The company's retained earnings increased to CNY 2.78 billion, compared to CNY 2.69 billion, showing a growth of 3.9%[134]. - The company's total equity decreased to CNY 3,843,726,578.35 from CNY 3,925,534,284.86, reflecting a decline of 2.1%[138]. Operational Capacity and Projects - The total wastewater treatment capacity of the company reached 217,000 tons per day by the end of the reporting period[27]. - The company operates nine wastewater treatment plants with a combined design capacity of 2.06 million tons per day, serving the main urban area of Wuhan[26]. - The company has secured a 30-year exclusive operating right for wastewater treatment services in Wuhan, starting from April 25, 2012[26]. - The company has won several new projects, including a 10,000 tons per day wastewater treatment plant in the Dongxihu District and a 1,000 tons per day plant in Yidu, both under BOT agreements[26]. - The company plans to enhance its sewage treatment capacity through ongoing projects, including the expansion of the Sanjintan sewage treatment plant and the Longwangzui sewage treatment plant[38]. Market Position and Strategy - The company holds over 90% market share in the water supply business in the Hankou area, with a total design capacity of 130,000 tons per day[31]. - The company is positioned to benefit from the growing demand for wastewater treatment services due to increased government focus on ecological civilization and water environment management[27]. - The company is actively pursuing technological advancements and has established a scientific management system to enhance operational efficiency[31]. - The company is exploring new strategies for market expansion, including participation in PPP projects and EPC+O projects in Hainan[26]. Environmental Compliance and Monitoring - The average concentration of COD emissions at the Erliangmiao sewage treatment plant was 16.00 mg/L, significantly below the limit of 60 mg/L, with a total discharge of 822,224 kg in the first half of 2020[72]. - The company has not faced any penalties for environmental violations during the reporting period, indicating compliance with relevant environmental laws[100]. - The company has established emergency response plans for environmental incidents, enhancing its risk management capabilities[102]. - The company employs both manual and online monitoring systems for wastewater treatment plants, with specific monitoring frequencies for various parameters such as COD, BOD, and ammonia nitrogen[92]. Shareholder and Corporate Governance - There were no profit distribution plans or capital reserve transfer plans during the reporting period[4]. - The company completed a capital contribution of 38.2 million yuan for the joint venture in the Wuhan Huangxiahe and Airport River environmental governance PPP project, increasing external equity investment by 38.2 million yuan compared to the same period last year[49]. - The company has committed to implementing a management equity incentive plan by June 30, 2024[60]. - The company guarantees that the restructuring will not affect the independence of Wuhan Holdings, maintaining separation in assets, personnel, finance, and operations[60]. Financial Reporting and Accounting - The company has implemented a new revenue recognition model effective from January 1, 2020, in compliance with the revised accounting standards, impacting the recognition and measurement of contract revenues[104]. - The company's financial statements comply with the requirements of the accounting standards and reflect its financial position, operating results, changes in shareholders' equity, and cash flows accurately[173]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[180]. - The company assesses expected credit losses based on the credit risk of financial assets, with significant increases in credit risk leading to loss provisions based on the entire lifetime expected credit loss[198].

Financial Performance - The company's operating revenue for 2019 was CNY 1,529,490,559.62, representing a year-on-year increase of 5.38% from CNY 1,451,353,305.32 in 2018[20] - The net profit attributable to shareholders of the listed company decreased by 10.78% to CNY 279,926,419.66 compared to CNY 327,948,552.15 in the previous year[20] - The basic earnings per share for 2019 was CNY 0.35, down 10.26% from CNY 0.39 in 2018[22] - The weighted average return on equity decreased to 4.90% in 2019 from 5.74% in 2018, a decline of 0.84 percentage points[22] - The net cash flow from operating activities significantly increased by 291.06% to CNY 1,084,427,075.80 from CNY 277,306,432.05 in the previous year[20] - The total non-recurring gains and losses for 2019 amounted to RMB 30.98 million, slightly higher than RMB 30.71 million in 2018[25] - The company reported a comprehensive compliance rate of 100% for wastewater discharge during the year[42] - The company reported a net profit margin of 30.16% in 2018, slightly decreasing from 30.12% in 2019[113] Assets and Investments - The total assets of the company increased by 20.82% to CNY 15,575,553,892.38 from CNY 12,891,937,349.07 in 2018[21] - The company's net assets attributable to shareholders increased by 3.62% to CNY 5,176,346,966.56 from CNY 4,995,477,513.94 in 2018[21] - The company has increased its construction in progress by 73.78%, amounting to approximately 4.71 billion, due to investments in new wastewater treatment plants and water supply plant expansions[34] - The company's long-term equity investments rose by 80.99%, reaching approximately 204.13 million, primarily due to capital contributions to environmental management projects[34] - The company has increased its intangible assets by 63.26%, totaling approximately 718.46 million, due to the completion of BOT project agreements[35] Market Position and Growth - The company is positioned as a leader in the wastewater treatment industry in Wuhan, benefiting from government contracts and a growing market for environmental services[29] - The wastewater treatment industry is expected to see significant growth due to national policies aimed at improving urban wastewater management and environmental standards[32] - The company holds over 90% market share in water supply in the Hankou area of Wuhan, establishing a dominant position in the region[36] - The company has successfully expanded its operations outside Hubei province, participating in multiple wastewater treatment projects in Hainan and Yunnan, laying a solid foundation for future market expansion[39] - The company is focused on rural wastewater treatment and sponge city construction, aiming to enhance its comprehensive environmental service capabilities[33] Operational Efficiency and Cost Management - The company plans to enhance its wastewater treatment capacity further with ongoing construction projects, which will improve regional operational advantages[42] - The total cost for the current period is CNY 279,173,480.95, accounting for 37.65% of total costs, an increase of 21.57% compared to the previous year[53] - The cost of chemicals and disinfectants increased by 65.43% to CNY 59,346,381.93, representing 8.00% of total costs, primarily due to the expansion of the South Taizi Lake plant[53] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[54] - The company is committed to improving its operational management capabilities and cost control in response to stricter environmental regulations and rising production costs[101] Environmental Compliance and Monitoring - The company has established a comprehensive environmental monitoring scheme to enhance pollution control measures across its operations[158] - The wastewater treatment plants are implementing both manual and online monitoring systems for effluent quality, with specific monitoring frequencies established for various parameters[158] - The company has completed the emergency response plans for environmental incidents, which have been filed with the local environmental bureau[157] - The company has received national pollutant discharge permits for its facilities, with the latest updates completed in December 2019[156] - The company is actively upgrading its wastewater treatment plants to meet increasingly stringent environmental protection requirements[140] Shareholder and Governance - The company has established a cash dividend policy requiring that the cumulative cash dividends over the last three years should not be less than 30% of the average distributable profit for those years[111] - In 2019, the company distributed cash dividends amounting to approximately 75.21 million RMB, representing 30.12% of the net profit attributable to ordinary shareholders[112] - The total remuneration for directors, supervisors, and senior management amounted to 3.0546 million yuan, with an actual payment of 2.9103 million yuan at the end of the reporting period[188] - The company has established a governance structure that complies with the requirements of the Company Law and the China Securities Regulatory Commission[197] - The company has a plan to implement a management equity incentive program by June 30, 2024, to align interests with shareholders[115] Future Outlook and Strategic Initiatives - The company aims to enhance its core competitiveness in investment, construction, operation, and environmental services, while actively exploring new market expansion models through public bidding[102] - The company anticipates significant growth in environmental investment, projected to exceed RMB 17 trillion during the 13th Five-Year Plan[71] - The company is exploring new strategies for cost reduction, aiming for a 5% decrease in operational costs[183] - The company plans to invest 50 million in R&D for sustainable water technologies[183] - Future outlook indicates a focus on enhancing user data analytics capabilities to improve service delivery[183]

[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].

[Important Notice](index=3&type=section&id=Important%20Notice) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility - The company's board of directors, supervisory board, 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) - Company head Huang Si, chief accountant Cao Ming, and head of accounting Sun Li guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[6](index=6&type=chunk) - This first quarter report is unaudited[6](index=6&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) [Key Financial Data](index=3&type=section&id=Key%20Financial%20Data) In Q1 2019, total assets and net assets grew, operating cash flow increased **127.93%**, revenue rose **4.37%**, and net profit increased **11.25%** 2019 Q1 Key Financial Data | Indicator | Current Period End/Year-to-Date (CNY) | Prior Year End/Prior Year-to-Date (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet (Period End):** | | | | | Total Assets | 13,593,426,646.20 | 12,888,794,910.77 | 5.47 | | Net Assets Attributable to Shareholders | 5,096,561,070.36 | 4,992,335,075.64 | 2.09 | | **Cash Flow Statement (Year-to-Date):** | | | | | Net Cash Flow from Operating Activities | 57,926,837.45 | 25,414,016.61 | 127.93 | | **Income Statement (Year-to-Date):** | | | | | Operating Revenue | 353,409,662.94 | 338,600,129.35 | 4.37 | | Net Profit Attributable to Shareholders | 85,050,094.72 | 76,447,845.15 | 11.25 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 78,009,599.72 | 76,447,845.15 | 2.04 | | Weighted Average Return on Net Assets (%) | 1.69 | 1.58 | increased by 0.11 percentage points | | Basic Earnings Per Share (CNY/share) | 0.12 | 0.11 | 9.09 | | Diluted Earnings Per Share (CNY/share) | 0.12 | 0.11 | 9.09 | Non-recurring Gains and Losses | Item | Current Period Amount (CNY) | | :--- | :--- | | Non-current asset disposal gains and losses | 660.00 | | Government grants recognized in current profit or loss | 7,040,000.00 | | Income tax impact | -165.00 | | Total | 7,040,495.00 | [Shareholding Information](index=4&type=section&id=Shareholding%20Information) As of the end of the reporting period, the company had **38,497 shareholders**. Wuhan Water Group Co., Ltd. was the largest shareholder with a **55.18%** stake, followed by Beijing Originwater Technology Co., Ltd - As of the end of the reporting period, the company had **38,497 shareholders**[9](index=9&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Wuhan Water Group Co., Ltd. | 391,536,000 | 55.18 | State-owned Legal Entity | | Beijing Originwater Technology Co., Ltd. | 35,731,092 | 5.04 | Domestic Non-state-owned Legal Entity | | Datong Securities Co., Ltd. | 5,326,000 | 0.75 | Domestic Non-state-owned Legal Entity | | Ruan Rongjing | 3,559,600 | 0.50 | Domestic Natural Person | | Chen Yihui | 2,107,601 | 0.30 | Domestic Natural Person | | Fu Daqing | 1,728,500 | 0.24 | Domestic Natural Person | | He Fangjian | 1,520,094 | 0.21 | Domestic Natural Person | | Yang Lei | 1,240,102 | 0.17 | Domestic Natural Person | | Xiang Yi | 1,200,000 | 0.17 | Domestic Natural Person | | Bao Mingzhong | 1,200,000 | 0.17 | Domestic Natural Person | [Significant Events](index=5&type=section&id=Significant%20Events) [Significant Changes in Key Financial Statement Items and Indicators and Their Reasons](index=5&type=section&id=Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators%20and%20Their%20Reasons) Q1 2019 financial items showed significant changes, with decreases in certain assets and payables, and increases in investments and cash flows, driven by new accounting standards and operations Significant Changes in Key Financial Statement Items and Indicators | Item | Period-End Balance/Current Period Amount (CNY) | Year-Beginning Balance/Prior Year Same Period Amount (CNY) | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Inventory | 1,878,508.67 | 4,201,917.69 | -55.29% | Goods issued met revenue recognition criteria and were transferred to cost | | Available-for-sale financial assets | 0 | 5,000,000.00 | -100.00% | Implemented new financial instrument standards, reclassified to other equity instrument investments | | Other equity instrument investments | 24,175,900.00 | 0 | 100.00% | Implemented new financial instrument standards, adjusted from available-for-sale financial assets | | Employee compensation payable | 51,820,783.16 | 77,291,770.42 | -32.95% | Unpaid salaries from previous period were paid in current period | | Taxes payable | 45,090,546.14 | 14,520,628.57 | 210.53% | Increase in total profit led to a corresponding increase in corporate income tax | | Other comprehensive income | 33,581,156.52 | 14,405,256.52 | 133.12% | Implemented new financial instrument standards, available-for-sale financial assets reclassified to fair value measurement | | Financial expenses | 28,789,582.45 | 13,906,015.84 | 107.03% | Decrease in foreign currency loan exchange gains, increase in loan principal led to higher interest expenses | | Asset impairment losses | 11,334,746.32 | 5,238,029.16 | 116.39% | Increase in receivables led to higher bad debt losses | | Non-operating income | 7,040,660.00 | 0 | 100.00% | Increase in government subsidy income | | Minority interest | -743,720.14 | 46,047.62 | -1715.11% | Decrease in net profit of controlled subsidiary | | Net cash flow from operating activities | 57,926,837.45 | 25,414,016.61 | 127.93% | Decrease in cash paid for goods and services, and taxes paid | | Net cash flow from financing activities | 508,879,822.14 | 899,741,943.28 | -43.44% | Decrease in borrowings, increase in cash paid for debt repayment | [Progress of Significant Events](index=6&type=section&id=Progress%20of%20Significant%20Events) The company disclosed updates on accounts receivable, with the Municipal Urban Construction Fund Office agreeing to pay **2.215 billion CNY** in outstanding sewage treatment service fees by 2021. The company also completed the re-election of its board and supervisory board and appointed new senior management - The Municipal Urban Construction Fund Office will pay **2.215 billion CNY** in outstanding sewage treatment service fees as of year-end 2018, in annual installments from 2019 to 2021, resolving the accounts receivable issue[13](index=13&type=chunk) - The company completed the re-election of its Eighth Board of Directors and Supervisory Board, with Huang Si elected as Chairman and Wang Jing as Chairman of the Supervisory Board[13](index=13&type=chunk) - Cao Ming was appointed General Manager, Tu Lijun and Liu Ning as Deputy General Managers, Li Kai as Board Secretary, and Sun Li as Chief Financial Officer[13](index=13&type=chunk) [Overdue Unfulfilled Commitments During the Reporting Period](index=7&type=section&id=Overdue%20Unfulfilled%20Commitments%20During%20the%20Reporting%20Period) There were no overdue unfulfilled commitments during the reporting period - No overdue unfulfilled commitments during the reporting period[14](index=14&type=chunk) [Warning of Significant Changes in Cumulative Net Profit](index=7&type=section&id=Warning%20of%20Significant%20Changes%20in%20Cumulative%20Net%20Profit) The company did not issue a warning regarding potential cumulative net profit loss or significant changes compared to the prior year-end - The company did not issue a warning regarding potential cumulative net profit loss or significant changes[15](index=15&type=chunk) [Appendix](index=8&type=section&id=Appendix) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the unaudited Q1 2019 consolidated and parent company financial statements, reflecting financial position, operating results, and cash flows [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2019, the company's consolidated total assets were **13.59 billion CNY**, a **5.47%** increase from year-end 2018; consolidated total liabilities were **8.25 billion CNY**, and total owner's equity was **5.34 billion CNY** Consolidated Balance Sheet Key Data (As of March 31, 2019) | Item | March 31, 2019 (CNY) | December 31, 2018 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 13,593,426,646.20 | 12,888,794,910.77 | 5.47 | | Total Liabilities | 8,253,635,632.93 | 7,652,486,172.08 | 7.86 | | Total Owner's Equity | 5,339,791,013.27 | 5,236,308,738.69 | 1.97 | | Total Owner's Equity Attributable to Parent Company | 5,096,561,070.36 | 4,992,335,075.64 | 2.09 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2019, the parent company's total assets were **5.36 billion CNY**, a **1.62%** increase from year-end 2018; total liabilities were **1.32 billion CNY**, and total owner's equity was **4.04 billion CNY** Parent Company Balance Sheet Key Data (As of March 31, 2019) | Item | March 31, 2019 (CNY) | December 31, 2018 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,363,897,873.88 | 5,278,319,903.87 | 1.62 | | Total Liabilities | 1,322,917,808.31 | 1,255,910,157.26 | 5.34 | | Total Owner's Equity | 4,040,980,065.57 | 4,022,409,746.61 | 0.46 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In Q1 2019, the company achieved consolidated total operating revenue of **353.41 million CNY**, a **4.37%** year-on-year increase; net profit attributable to parent company shareholders was **85.05 million CNY**, an **11.25%** year-on-year increase Consolidated Income Statement Key Data (Q1 2019) | Item | Q1 2019 (CNY) | Q1 2018 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 353,409,662.94 | 338,600,129.35 | 4.37 | | Operating Profit | 105,612,289.81 | 102,859,525.63 | 2.68 | | Total Profit | 112,652,949.81 | 102,859,525.63 | 9.52 | | Net Profit | 84,306,374.58 | 76,493,892.77 | 10.21 | | Net Profit Attributable to Parent Company Shareholders | 85,050,094.72 | 76,447,845.15 | 11.25 | | Basic Earnings Per Share (CNY/share) | 0.12 | 0.11 | 9.09 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2019, the parent company's operating revenue was **52.92 million CNY**, a slight decrease year-on-year; net profit was a loss of **0.61 million CNY**, but the loss narrowed compared to the prior year Parent Company Income Statement Key Data (Q1 2019) | Item | Q1 2019 (CNY) | Q1 2018 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 52,921,581.17 | 53,617,267.52 | -1.29 | | Operating Profit | -8,604,181.35 | -2,008,906.09 | -328.31 | | Total Profit | -1,564,181.35 | -2,008,906.09 | 22.14 | | Net Profit | -605,581.04 | -2,021,067.16 | 70.04 | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2019, the company's net cash flow from operating activities was **57.93 million CNY**, a significant **127.93%** year-on-year increase; net cash flow from investing activities was **-596.42 million CNY**, and net cash flow from financing activities was **508.88 million CNY** Consolidated Cash Flow Statement Key Data (Q1 2019) | Item | Q1 2019 (CNY) | Q1 2018 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 57,926,837.45 | 25,414,016.61 | 127.93 | | Net Cash Flow from Investing Activities | -596,422,166.09 | -513,036,207.38 | -16.26 | | Net Cash Flow from Financing Activities | 508,879,822.14 | 899,741,943.28 | -43.44 | | Net Increase in Cash and Cash Equivalents | -29,625,581.84 | 412,100,643.29 | -107.19 | [Parent Company Cash Flow Statement](index=19&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2019, the parent company's net cash flow from operating activities was **-3.93 million CNY**, with the loss significantly narrowing year-on-year; net cash flow from investing activities was **-83.82 million CNY**, and net cash flow from financing activities was **73.81 million CNY** Parent Company Cash Flow Statement Key Data (Q1 2019) | Item | Q1 2019 (CNY) | Q1 2018 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -3,930,369.54 | -30,027,625.82 | 86.91 | | Net Cash Flow from Investing Activities | -83,822,299.74 | 97,983,838.05 | -185.55 | | Net Cash Flow from Financing Activities | 73,811,833.33 | -2,249,100.00 | 3381.59 | | Net Increase in Cash and Cash Equivalents | -13,940,835.95 | 65,707,112.23 | -121.22 | [Adjustments for First-Time Adoption of New Financial Instrument Standards](index=21&type=section&id=Adjustments%20for%20First-Time%20Adoption%20of%20New%20Financial%20Instrument%20Standards) The company adopted new financial instrument standards from January 1, 2019, adjusting financial statement presentation, primarily reclassifying available-for-sale financial assets to other equity instrument investments and other comprehensive income [Consolidated Balance Sheet Adjustments](index=21&type=section&id=Consolidated%20Balance%20Sheet%20Adjustments) The first-time adoption of new financial instrument standards resulted in a **5 million CNY** decrease in "Available-for-sale financial assets" and a corresponding **24.18 million CNY** increase in "Other equity instrument investments" and **19.18 million CNY** adjustment in "Other comprehensive income" in the consolidated balance sheet, leading to a **19.18 million CNY** increase in both total assets and total owner's equity Consolidated Balance Sheet Adjustments (January 1, 2019) | Item | December 31, 2018 (CNY) | January 1, 2019 (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | 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 | | Total Assets | 12,888,794,910.77 | 12,907,970,810.77 | 19,175,900.00 | | Total Owner's Equity Attributable to Parent Company | 4,992,335,075.64 | 5,011,510,975.64 | 19,175,900.00 | [Parent Company Balance Sheet Adjustments](index=23&type=section&id=Parent%20Company%20Balance%20Sheet%20Adjustments) The first-time adoption of new financial instrument standards resulted in a **5 million CNY** decrease in "Available-for-sale financial assets" and a corresponding **24.18 million CNY** increase in "Other equity instrument investments" and **19.18 million CNY** adjustment in "Other comprehensive income" in the parent company balance sheet, leading to a **19.18 million CNY** increase in both total assets and total owner's equity Parent Company Balance Sheet Adjustments (January 1, 2019) | Item | December 31, 2018 (CNY) | January 1, 2019 (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | 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 | 0 | 19,175,900.00 | 19,175,900.00 | | Total Assets | 5,278,319,903.87 | 5,297,495,803.87 | 19,175,900.00 | | Total Owner's Equity | 4,022,409,746.61 | 4,041,585,646.61 | 19,175,900.00 | [Standard Explanation](index=23&type=section&id=Standard%20Explanation) The company adopted the revised new financial instrument standards from January 1, 2019, adjusting financial statement presentation without requiring restatement of prior comparative financial data - The company adopted the revised "Accounting Standard for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments," "No. 23 – Transfer of Financial Assets," "No. 24 – Hedge Accounting," and "No. 37 – Presentation of Financial Instruments" from January 1, 2019[41](index=41&type=chunk)[46](index=46&type=chunk) - The standards stipulate that financial instruments should be classified and measured on the implementation date, and prior comparative financial statement data does not need to be adjusted if inconsistent with the new standards[41](index=41&type=chunk)[46](index=46&type=chunk)

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 ...