Financial Performance - The company's operating revenue for the first half of 2020 was CNY 2,776,186,463.38, representing a 6.97% increase compared to CNY 2,595,317,193.29 in the same period last year[25]. - The net profit attributable to shareholders of the listed company reached CNY 326,138,329.45, a significant increase of 34.03% from CNY 243,335,142.46 in the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 300,489,480.49, up 30.85% from CNY 229,641,055.74 in the same period last year[25]. - The net cash flow from operating activities was CNY 410,743,447.79, showing a slight decrease of 1.37% compared to CNY 416,443,267.61 in the previous year[25]. - The company achieved a water sales volume of 16,321.35 million cubic meters, a decrease of 5.41% year-on-year[42]. - The sewage treatment volume increased by 5.13% year-on-year, reaching 42,542.34 million cubic meters[42]. - The company reported a total revenue of 277,618.65 million yuan, an increase of 6.97% compared to the same period last year[42]. - The net profit attributable to shareholders was 32,613.83 million yuan, reflecting a growth of 34.03% year-on-year[42]. - Total assets reached 1,305,875.06 million yuan, up 28.47% year-on-year, while net assets attributable to shareholders increased by 34.54% to 508,319.25 million yuan[42]. Assets and Liabilities - Total assets increased by 10.39% to ¥13,058,750,599.71 from the previous year[27]. - The net assets attributable to shareholders reached ¥5,083,192,500.85, an increase of 7.01% compared to the previous year[27]. - Total liabilities reached CNY 7,490,695,716.02, up from CNY 6,657,976,660.78, indicating an increase of about 12.5%[149]. - Short-term borrowings at the end of the period amounted to ¥2,028,188,867.29, a year-on-year increase of 94.97% from ¥1,040,244,000, primarily due to new bank loans[48]. - Current liabilities rose to CNY 5,246,894,776.19, an increase of 15.4% from CNY 4,549,763,857.67[149]. Investment and R&D - Research and development expenses rose by 79.28% to 27,324,836.26 yuan, indicating increased investment in innovation[42]. - Research and development expenses for the first half of 2020 were ¥27,324,836.26, which is a 79.49% increase compared to ¥15,241,130.82 in the same period of 2019[160]. - The company has committed to ensuring that Hongcheng Water Industry remains the professional development platform for its water production and sewage treatment business, with no new water supply or sewage treatment businesses to be added[70]. Market Position and Expansion - The company maintains a leading position in the urban water supply market in Nanchang, with a strong natural monopoly[33]. - The wastewater treatment business is expanding, with operations in multiple provinces and a focus on government-conferred operating rights[33]. - The company plans to enhance its market presence beyond Nanchang to become a nationwide comprehensive environmental service provider[58]. - Future growth in the wastewater treatment sector is expected due to government policies aimed at enhancing ecological civilization and environmental protection[36]. Risks and Challenges - The company faces risks related to national policy changes that could impact the water supply and wastewater treatment sectors[58]. - Market expansion risks are present due to the company's reliance on the Nanchang region for its water and gas services[58]. - The company faces risks related to water supply pricing adjustments due to strict government regulations, which can lead to mismatches between input costs and output pricing[61]. - The company is actively seeking backup water sources and improving production management to address potential risks from water quality and supply from the Gan River[61]. Shareholder and Governance - The company has a 29.42% shareholding by its controlling shareholder, Water Industry Group, and a total of 42.08% by the actual controller, Municipal Public Utility Group, which may influence operational decisions[61]. - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period[65]. - The company has committed to not engaging in any business activities that would compete with Hongcheng Water Industry's current and future operations[86]. Financial Management and Compliance - The company has appointed Daixin Accounting Firm as its financial and internal control auditor for the 2020 fiscal year[98]. - There are no significant litigation or arbitration matters reported during the reporting period[100]. - The company has complied with environmental laws and regulations, with no penalties for violations reported during the reporting period[126]. Cash Flow and Financing - Cash and cash equivalents at the end of the period were 2,089,423,803.83 yuan, an increase of 81.70% year-on-year, primarily due to new bank loans[45]. - The net cash flow from financing activities was CNY 475,527,350.60, a turnaround from CNY -14,041,909.24, indicating a significant improvement[173]. - Financing cash inflows totaled CNY 1,870,732,093.10, compared to CNY 1,130,326,000.00, representing an increase of about 65.54%[171]. Equity and Share Capital - The total number of shares held by the top ten restricted shareholders amounts to 124,434,726 shares, with varying lock-up periods[137]. - The company’s total shares increased from 942,153,351 to 948,038,351 due to the issuance of 5,885,000 new shares[129]. - The company has a three-phase unlocking schedule for the restricted shares, with 40% unlockable after 24 months, 30% after 36 months, and 30% after 48 months[132].

2020 年第一季度报告 公司代码：600461 公司简称：洪城水业 江西洪城水业股份有限公司 2020 年第一季度报告 1 / 25 2020 年第一季度报告 目 录 | --- | --- | |-------|---------------| | | | | í | 重要提示 | | I Í | 公司基本情况… | | IIÍ | 重要事项 | | 四、 | 附录 | 2 / 25 2020 年第一季度报告 单位：元 币种：人民币 非经常性损益项目和金额 一、 重要提示 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 公司负责人邵涛、主管会计工作负责人王剑玉及会计机构负责人（会计主管人员）黄立群保 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。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |----------------------------------- ...

Financial Performance - The company achieved a net profit of ¥580,841,946.26 for the year 2019, with a net profit attributable to the parent company of ¥488,736,023.01[6]. - The parent company reported a net profit of ¥238,492,627.35 for 2019, with a proposed distribution of cash dividends of ¥2.6 per share, totaling ¥246,489,971.26[6]. - The total distributable profit for shareholders in 2019 amounted to ¥623,838,411.15, after accounting for dividends paid[6]. - The company plans to allocate 10% of the parent company's net profit, amounting to ¥23,849,262.74, to statutory reserves[6]. - The remaining undistributed profit of ¥377,348,439.89 will be carried forward to the next fiscal year[6]. - The company's operating revenue for 2019 was CNY 5,380,989,963.80, representing a 22.92% increase compared to CNY 4,377,751,056.23 in 2018[25]. - Net profit attributable to shareholders for 2019 was CNY 488,736,023.01, a 45.45% increase from CNY 336,006,633.61 in 2018[25]. - The net cash flow from operating activities for 2019 was CNY 1,201,537,888.78, showing a 7.07% increase from CNY 1,122,157,808.89 in 2018[25]. - The total assets at the end of 2019 were CNY 11,829,409,625.47, an 18.46% increase from CNY 9,986,382,242.90 at the end of 2018[25]. - Basic earnings per share for 2019 were CNY 0.61, up 41.86% from CNY 0.43 in 2018[25]. - The weighted average return on equity for 2019 was 12.98%, an increase of 3.02 percentage points from 9.96% in 2018[25]. Risk Management - The company has outlined potential risks in its report, which investors should be aware of[10]. - The company faces risks related to policy changes that may require technological upgrades in water supply and sewage treatment, impacting performance[97]. - The company is currently reliant on the local market in Nanchang for water supply, which poses a risk of over-dependence on a single market[97]. - The water pricing mechanism is strictly regulated, and the company may struggle to adjust prices in response to rising operational costs due to lengthy approval processes[97]. - The company is exposed to energy supply risks, particularly regarding electricity, which could affect production capacity and increase costs[97]. - The quality of raw water sourced from the Gan River is crucial for the company's operations, with potential risks from extreme weather and pollution events[97]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - There are no violations of decision-making procedures regarding external guarantees[8]. - The audit report for the financial statements was issued by Da Xin Certified Public Accountants with an unqualified opinion[5]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has committed to maintaining transparency in its dividend policy and ensuring it aligns with shareholder interests[103]. - The board of directors must propose any adjustments to the profit distribution policy, which requires a two-thirds majority approval from shareholders[103]. Market Position and Industry Trends - The company holds a dominant position in the Nanchang water supply market, with over 90% market share in the sewage treatment sector within the province[40]. - The wastewater treatment industry is in a rapid growth phase, driven by increasing demand for comprehensive environmental services and government policies aimed at enhancing ecological civilization[37]. - The natural gas market in China is expected to grow rapidly, with consumption projected to exceed 10% by 2020 and 15% by 2030, driven by ongoing reforms and policies[37]. - Future growth in the wastewater treatment sector is anticipated due to the implementation of various government initiatives aimed at improving water quality and environmental management[37]. - The company is well-positioned for future expansion through mergers and acquisitions, which will facilitate overcoming regional and technical barriers in the water services industry[37]. Investment and Capital Expenditures - The company invested 208,957,726.42 RMB in capital expenditures during the reporting period, with a total project budget of 1,034,682,700 RMB[80]. - The company has ongoing construction projects with planned capacities expected to be operational in 2020, including several water supply and sewage treatment facilities[71]. - The company completed the renovation of 138.8 kilometers of old gas pipelines during the reporting period[43]. Environmental Commitment - The company achieved a cumulative reduction of environmental pollutants by approximately 224,500 tons during the reporting period[178]. - The company operates 79 subsidiaries and branches listed as key pollutant discharge units in Jiangxi Province, Zhejiang Province, and Liaoning Province[178]. - All wastewater treatment facilities have passed environmental acceptance inspections and are operating normally[181]. - The company has established emergency response plans for environmental incidents at all wastewater treatment facilities[183]. - The company’s online monitoring data for major pollutants is supervised by environmental authorities and published in real-time[184]. Shareholder Relations and Dividends - The company’s profit distribution policy emphasizes protecting shareholders' rights and ensuring reasonable returns, with a minimum cash dividend ratio of 80% for mature companies without major capital expenditures[103]. - In 2019, the cash dividend amounted to ¥246,489,971.26, representing 50.43% of the net profit attributable to ordinary shareholders, which was ¥488,736,023.01[106]. - The company has a three-year dividend plan, with the latest plan covering 2018-2020, focusing on sustainable development and operational needs[103]. - The company distributed a total of ¥199,153,058.80 in cash dividends over the last three years, exceeding the required 30% of the average distributable profit of ¥356,865,999.70[103]. Related Party Transactions - The company will ensure fair pricing and timely disclosure for any unavoidable related party transactions[116]. - The company has committed to minimizing related party transactions with Hongcheng Water Industry[116]. - The company will not use its controlling power to harm the interests of Hongcheng Water Industry and its other shareholders[115]. Financial Adjustments and Compliance - The company has made adjustments to its financial reporting in accordance with new financial instrument standards, impacting the classification of financial assets and liabilities[147]. - The company has not yet completed its commitment to ensure the proper use of raised funds in accordance with regulatory requirements[142]. - The company has not yet fulfilled its commitment to reduce related party transactions and ensure fair pricing in transactions with Hongcheng Water[138].

Financial Performance - Net profit attributable to shareholders was ¥350,642,846.36, representing a 47.30% increase year-on-year[18]. - Operating revenue for the first nine months was ¥3,673,262,999.03, up 11.33% from the same period last year[18]. - The company reported a net profit excluding non-recurring gains and losses of ¥329,504,482.34, a 42.52% increase year-on-year[20]. - Basic earnings per share rose to ¥0.44, a 46.67% increase from the previous year[20]. - Net profit for Q3 2019 was ¥121,941,874.39, compared to ¥88,630,822.24 in Q3 2018, reflecting a 37.6% growth[56]. - Net profit for Q3 2019 was ¥209,984,702.84, compared to ¥116,719,313.17 in Q3 2018, reflecting an increase of 79.9%[61]. - Total comprehensive income attributable to the parent company for Q3 2019 was ¥106,766,047.51, up from ¥67,792,719.10 in Q3 2018[58]. - The company reported a total of ¥125.20 million in deferred revenue, indicating future revenue recognition[87]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥10,632,740,421.83, an increase of 6.47% compared to the end of the previous year[18]. - Total liabilities reached ¥6,569,419,396.76, up from ¥6,126,799,916.00, which is an increase of approximately 7.3%[44]. - Current liabilities decreased to ¥4,124,322,623.78 from ¥4,357,890,098.74, reflecting a reduction of approximately 5.3%[44]. - Long-term borrowings rose significantly to ¥2,301,400,533.42 from ¥1,630,330,533.42, marking an increase of about 41.2%[44]. - The total non-current liabilities increased to ¥2,445,096,772.98 from ¥1,768,909,817.26, indicating a rise of about 38.3%[44]. - The company reported a total liability of approximately ¥6.13 billion, with current liabilities at ¥4.36 billion and non-current liabilities at ¥1.77 billion[79]. - Total assets amounted to approximately $5.35 billion, with non-current assets totaling around $4.07 billion[85]. Cash Flow - Net cash flow from operating activities amounted to ¥905,876,655.00, reflecting a 29.22% increase compared to the previous year[18]. - Cash flow from financing activities decreased by 68.42% to CNY 147,991,399.80, mainly due to repayment of bank loans[31]. - Cash flow from operating activities for the first three quarters of 2019 was ¥4,109,340,158.30, compared to ¥3,616,990,539.94 in the same period of 2018, showing a 13.6% increase[64]. - Cash received from operating activities increased to CNY 663,709,266.14, compared to CNY 496,294,664.57 in the same period last year[70]. - Cash outflow for financing activities totaled CNY 1,665,825,096.35, compared to CNY 1,154,927,050.48 in the previous year[70]. Shareholder Information - The total number of shareholders at the end of the reporting period was 20,112[23]. - The largest shareholder, Nanchang Water Group Co., Ltd., holds 31.33% of the shares, with 90,720,000 shares pledged[23]. - Shareholders' equity rose to ¥4,063,321,025.07 from ¥3,859,582,326.90, reflecting an increase of about 5.3%[44]. - The company’s total equity attributable to shareholders is approximately ¥3.53 billion[81]. Research and Development - Research and development expenses rose significantly by 240.76% to CNY 43,502,010.29, reflecting the company's increased investment in R&D[31]. - Research and development expenses in Q3 2019 amounted to ¥28,260,879.47, significantly higher than ¥6,451,461.05 in Q3 2018, indicating a 338.5% increase[54]. - Research and development expenses for Q3 2019 amounted to ¥20,154,720.48, indicating ongoing investment in innovation[61]. Inventory and Prepayments - The company's prepaid accounts increased by 37.68% to CNY 170,931,308.72, primarily due to increased project payments by its subsidiary[31]. - Inventory surged by 129.87% to CNY 504,133,006.11, mainly attributed to unresolved project costs at its subsidiary[31]. Investment Income - Investment income increased by 78.49% to CNY 7,315,839.54, attributed to higher equity method earnings from joint ventures[31]. - The company reported investment income of ¥163,724,954.52 in Q3 2019, compared to ¥99,389,441.12 in Q3 2018, marking a 64.7% increase[61].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 2,595,317,193.29, representing a 15.51% increase compared to CNY 2,246,794,537.51 in the same period last year[21]. - The net profit attributable to shareholders of the listed company reached CNY 243,335,142.46, a significant increase of 48.62% from CNY 163,735,211.65 year-on-year[21]. - The net cash flow from operating activities was CNY 416,443,267.61, which is a 63.58% increase compared to CNY 254,586,781.48 in the previous year[21]. - Basic earnings per share for the first half of 2019 were CNY 0.31, up 47.62% from CNY 0.21 in the same period last year[21]. - The diluted earnings per share also stood at CNY 0.31, reflecting a 47.62% increase compared to CNY 0.21 in the same period last year[21]. - The company reported a net profit excluding non-recurring gains and losses of CNY 229,641,055.74, which is a 44.50% increase from CNY 158,922,115.78 year-on-year[21]. - The total revenue reached CNY 259.532 million, representing a year-on-year growth of 15.51%[43]. - The company reported a net profit attributable to shareholders of CNY 24.334 million, up 48.62% compared to the previous year[42]. - The company achieved a total water sales volume of 16.452 million cubic meters, an increase of 4.37% year-on-year[42]. - The total comprehensive income amounted to CNY 298,765,581.57, an increase of 42% compared to CNY 210,174,271.67 from the previous period[188]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,164,683,903.65, reflecting a 1.79% increase from CNY 9,986,382,242.90 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company increased to CNY 3,778,166,216.43, marking a 7.06% rise from CNY 3,528,959,295.14 at the end of the previous year[24]. - Total current assets decreased to ¥2,475,138,225.95 from ¥2,559,390,007.34, a decline of approximately 3.3%[171]. - Total non-current assets rose to ¥7,689,545,677.70 from ¥7,426,992,235.56, an increase of about 3.5%[174]. - Total liabilities decreased to ¥6,007,784,599.15 from ¥6,126,799,916.00, a decline of about 1.9%[174]. - Shareholders' equity increased to ¥4,156,899,304.50 from ¥3,859,582,326.90, representing a growth of approximately 7.7%[176]. Market Position and Operations - The company holds a dominant position in the urban water supply market in Nanchang, with a strong regional monopoly[31]. - The company occupies over 80% of the market share in the county-level sewage treatment market in Jiangxi Province[37]. - The gas market share in Nanchang has exceeded 90%, with a gasification rate of approximately 70% in the urban area, indicating significant growth potential[37]. - The company operates under a franchise model for its main businesses, with franchise rights typically granted for 25-30 years, ensuring strong exclusivity and stability[38]. - The company has established a comprehensive water quality monitoring department, meeting national standards and possessing over 140 detection capabilities, reflecting its technological leadership[40]. - The company is committed to becoming a comprehensive environmental operation service provider, integrating water supply, sewage treatment, and gas energy services[34]. Research and Development - Research and development expenses surged by 141.35% to CNY 15.241 million, reflecting increased investment in innovation[46]. - The company is actively exploring other segments of the environmental protection industry to drive sustainable growth[30]. Risks and Challenges - The company faces policy risks related to the construction and development of water supply and sewage treatment facilities, which are crucial for urban development[61]. - Market expansion risks are present as the company's water and gas services are currently limited to the Nanchang area, leading to over-reliance on a single market[61]. - The company is exposed to pricing risks due to strict government regulations on water pricing, which may not align with rising operational costs[61]. - Energy supply and price risks are significant, as electricity supply shortages can directly impact production capacity and profitability[64]. - Environmental responsibility risks are heightened due to increasing regulatory scrutiny, which could lead to penalties for non-compliance with wastewater discharge standards[64]. Shareholder Commitments and Governance - The major shareholder, Water Industry Group, holds 31.33% of the company's shares, which may influence operational decisions and potential conflicts of interest[64]. - The company has made long-term commitments related to avoiding competition with its subsidiaries, ensuring compliance with agreements and regulations[76]. - The company has committed to not engaging in any business activities that compete with the main operations of Hongcheng Water Industry, its subsidiary[76]. - The company has established a commitment to avoid conflicts of interest in transactions involving related parties[76]. Environmental Compliance - The company’s wastewater treatment operations reported an average discharge of chemical oxygen demand (COD) of approximately 6,700 tons in the first half of 2019[141]. - The total nitrogen (TN) discharge from the company’s wastewater treatment operations was approximately 270 tons in the first half of 2019[141]. - The company achieved a cumulative reduction of environmental pollutants amounting to approximately 91,800 tons as of June 30, 2019[141]. - The company’s wastewater treatment projects complied with the Class A discharge standards as of June 30, 2019[140]. - The company reported no penalties for environmental violations during the reporting period, adhering to relevant environmental laws[148]. Financial Management and Guarantees - Total guarantees provided by the company amounted to RMB 135,211 million, representing 35.79% of the company's net assets[129]. - The company provided a guarantee of RMB 100 million for Jiujing Bank, effective from June 24, 2019, to June 3, 2029[134]. - The company approved a guarantee of RMB 92 million for its wholly-owned subsidiary Jiangxi Hongcheng Water Environmental Protection Co., Ltd. for a loan from Minsheng Bank[129]. - The company is actively managing its guarantee exposure to ensure it remains within acceptable limits relative to its net assets[129].

Financial Performance - Operating revenue rose by 23.80% to CNY 1,334,133,506.33 year-on-year[10] - Net profit attributable to shareholders increased by 41.95% to CNY 131,179,861.17 compared to the same period last year[10] - Basic earnings per share increased by 41.67% to CNY 0.17[10] - The company's net profit attributable to shareholders reached ¥131,179,861.17, an increase of 41.95% compared to the previous year[23] - Total operating revenue for Q1 2019 reached ¥1,334,133,506.33, an increase of 23.8% compared to ¥1,077,622,203.99 in Q1 2018[43] - Net profit for Q1 2019 was ¥148,411,660.52, representing a 18.3% increase from ¥125,473,172.85 in Q1 2018[46] - The company reported a comprehensive income total of ¥153,995,322.13 for Q1 2019, compared to ¥122,879,159.70 in Q1 2018, marking a growth of 25.3%[46] - The company's retained earnings rose to ¥590,758,257.45 in Q1 2019, up from ¥542,561,299.15 in Q1 2018, an increase of 8.9%[43] Assets and Liabilities - Total assets increased by 6.57% to CNY 10,642,011,467.18 compared to the end of the previous year[10] - The company's total current assets increased to ¥3,098,402,144.43, up from ¥2,559,390,007.34 in the previous year[29] - The total receivables, including notes and accounts receivable, amounted to ¥774,988,051.41, compared to ¥630,776,920.94 last year[29] - The company's total liabilities decreased by 85.36% in interest payable, down to ¥726,378.92 from ¥4,963,060.18[23] - Total liabilities reached ¥6,636,504,063.71, up from ¥6,126,799,916.00, indicating a growth of around 8.3%[34] - Current liabilities totaled ¥4,450,605,261.21, compared to ¥4,357,890,098.74, reflecting a growth of approximately 2.1%[34] - The total liabilities decreased to ¥2,192,517,612.06 in Q1 2019 from ¥2,324,946,312.02 in Q1 2018, a reduction of 5.7%[41] - The total equity attributable to shareholders reached CNY 3,528,959,295.14, contributing to total equity of CNY 3,859,582,326.90[68] Cash Flow - Net cash flow from operating activities decreased by 49.87% to CNY 25,190,239.70 compared to the previous year[10] - The net cash flow from financing activities surged by 831.91% to ¥441,036,419.62, mainly due to new bank loans[26] - Cash flow from operating activities for Q1 2019 was CNY 25,190,239.70, down from CNY 50,251,446.16 in Q1 2018[55] - The net cash flow from operating activities was 123,552,303.00 RMB, compared to 66,794,808.36 RMB in the previous year, reflecting an increase of about 85%[60] - Total cash inflow from investment activities reached 327,127,227.01 RMB, a substantial rise from 3,459,502.42 RMB in the prior year[60] Research and Development - Research and development expenses increased by 43.09% to ¥4,035,072.10, reflecting the company's commitment to enhancing innovation[23] - Research and development expenses for Q1 2019 were ¥4,035,072.10, an increase of 43.1% compared to ¥2,819,970.10 in Q1 2018[46] Shareholder Information - The total number of shareholders at the end of the reporting period was 23,234[16] - The largest shareholder, Nanchang Water Group Co., Ltd., holds 31.33% of the shares[16] Other Comprehensive Income - Other comprehensive income rose to ¥3,119,303.80, reversing from a loss of ¥2,464,357.81 in the previous year[23] - The company has reported a decrease in other comprehensive income amounting to CNY -2,464,357.81[68] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[50]

Financial Performance - In 2018, the company achieved a consolidated net profit of ¥418,062,514.74, with a net profit attributable to the parent company of ¥336,006,633.61[7] - The parent company reported a net profit of ¥162,595,032.81 for the year 2018[7] - The proposed cash dividend is ¥1.7 per share, totaling ¥134,230,916.25, with the remaining undistributed profit of ¥408,330,382.90 carried forward to the next year[7] - The company plans to allocate 10% of the parent company's net profit, amounting to ¥16,259,503.28, to the statutory reserve fund[7] - The total distributable profit for shareholders in 2018 is ¥542,561,299.15, which includes the beginning balance of ¥396,225,769.62[7] - The company's operating revenue for 2018 was approximately RMB 4.38 billion, an increase of 23.52% compared to 2017[26] - Net profit attributable to shareholders for 2018 was approximately RMB 336 million, reflecting a growth of 22.64% year-over-year[26] - The net cash flow from operating activities reached approximately RMB 1.12 billion, marking a significant increase of 44.80% from the previous year[26] - The total assets at the end of 2018 amounted to approximately RMB 9.99 billion, an increase of 18.25% compared to the end of 2017[26] - Basic earnings per share for 2018 were RMB 0.43, up 22.86% from RMB 0.35 in 2017[26] - The company maintained a weighted average return on equity of 9.96% for 2018, an increase of 1.22 percentage points from the previous year[26] Operational Highlights - The company operates in water supply, sewage treatment, and gas energy sectors, holding a dominant position in the Nanchang water supply market[35] - The sewage treatment business is spread across multiple provinces, with government-granted operating rights allowing for price adjustments based on inflation and investment[35] - The company has a first-class qualification for municipal public engineering construction, enabling it to undertake various engineering projects[37] - The company is focused on expanding its service offerings in pipeline natural gas, compressed natural gas (CNG), and liquefied natural gas (LNG) within its licensed operational scope[36] - In 2018, the company achieved a water sales volume of 346.75 million cubic meters, an increase of 8.17% year-on-year, with a wastewater treatment volume of 728.59 million cubic meters, up 14.45%[43] - The company completed the construction of 40.18 kilometers of new and renovated water pipelines to improve the water supply network layout[43] - The company signed 13 wastewater concession agreements during the reporting period, with an estimated investment of 587 million yuan[43] - The company has invested approximately 2.5 billion yuan in 47 wastewater expansion and upgrading projects, with 16 completed and 14 entering the charging phase[43] Revenue and Cost Structure - The company's revenue reached 4.38 billion yuan, representing a year-on-year growth of 23.52%, while the net profit attributable to the parent company was 336.01 million yuan, an increase of 22.64%[48] - The company's revenue from water supply and drainage business reached ¥2,572,466,825.93, with a year-on-year increase of 46.80%[49] - Gas sales revenue amounted to ¥1,764,740,481.77, showing a slight increase of 0.34% year-on-year[49] - The gross margin for water sales was 40.25%, an increase of 1.86 percentage points compared to the previous year[49] - The gross margin for sewage treatment services was 30.43%, with a year-on-year increase of 1.19 percentage points[49] - Sales expenses increased by 15.87% to ¥171,950,000, primarily due to higher personnel costs[59] - Management expenses rose by 13.88% to ¥212,760,000, mainly driven by increased employee compensation[59] - The company reported a 52.99% increase in financial expenses, totaling ¥133,730,000, mainly due to higher interest expenses[59] Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[7] - The company has detailed potential risks in the "Discussion and Analysis of Operating Conditions" section of the report[10] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8] - There are no violations of decision-making procedures regarding external guarantees[8] - The company recognizes the risk of over-reliance on the local market for water supply and aims to expand its service area to surrounding towns and suburbs[96] - The company faces potential policy risks related to environmental standards and pricing mechanisms in the water and gas sectors[96] - The company will leverage its existing technological advantages to minimize risks associated with industry policy changes[96] Investments and Future Plans - The company aims to explore new businesses such as distributed energy and charging stations, currently in the preliminary exploration stage[43] - The company plans to enhance gas supply and storage capacity through high-pressure pipeline and station construction[95] - The company will focus on high-standard upgrades of wastewater treatment plants, ensuring timely collection of wastewater treatment fees post-upgrade[95] - The company plans to allocate CNY 8.878 billion for capital expenditures in 2018, focusing on various projects including water treatment plants and gas station construction[104] Shareholder Relations and Governance - The company’s major shareholder, Nanchang Water Group, holds 31.33% of the shares, while the actual controller holds 46.52%, indicating potential influence over company operations[99] - The company has established dual gas supply sources to mitigate risks associated with gas supply interruptions[99] - The company has committed to avoiding any competition with Hongcheng Water during its control period[113] - The company will not engage in any new water supply or sewage treatment businesses that compete with Hongcheng Water[114] - The company has pledged to minimize related party transactions with Hongcheng Water[116] - The company will comply with all legal and regulatory requirements in its dealings with Hongcheng Water[116] Environmental and Social Responsibility - The company has been recognized as a key pollutant discharge unit, with 79 subsidiaries listed under environmental protection regulations[199] - The average discharge concentration of pollutants from the company's sewage treatment operations did not exceed the specified standards, with total COD emissions of approximately 14,600 tons for the year[199] - The company has successfully reduced environmental pollutants by approximately 219,400 tons during the reporting period[199] - The company has implemented a sodium hypochlorite disinfection system across all water plants, effectively eliminating safety hazards associated with traditional chlorine disinfection[196] - The company has completed the renovation of power distribution systems in water plants, further ensuring water supply safety[196]

Financial Performance - Operating revenue for the first nine months reached CNY 3,299,322,552.69, a growth of 37.45% year-on-year[7] - Net profit attributable to shareholders of the listed company rose by 14.19% to CNY 238,042,414.72 for the first nine months[7] - Basic and diluted earnings per share increased by 15.38% to CNY 0.30[8] - The company's operating revenue for the third quarter reached RMB 3,299,322,552.69, an increase of 37.45% compared to RMB 2,400,422,001.56 in the same period last year[17] - Total operating revenue for Q3 reached ¥1,052,528,015.18, a 17.4% increase from ¥896,755,229.18 in the same period last year[30] - The company reported a total profit of ¥118,696,274.69 for Q3, slightly down from ¥129,372,508.17 year-over-year[31] - The company’s total profit for Q3 2018 was CNY 122,941,629.19, compared to CNY 152,853,561.43 in Q3 2017, a decline of 19.6%[35] Cash Flow - Net cash flow from operating activities increased by 103.66% to CNY 701,050,693.83 compared to the same period last year[7] - The net cash flow from operating activities was RMB 701,050,693.83, reflecting a significant increase of 103.66% from RMB 344,219,334.22 year-on-year[18] - Cash flow from operating activities for the first nine months of 2018 was CNY 701,050,693.83, significantly higher than CNY 344,219,334.22 in the same period of 2017, an increase of 103%[37] - Net cash flow from operating activities was $189,223,350.62, significantly up from $97,979,112.64 year-over-year[41] - The net increase in cash and cash equivalents for the period was $338,854,537.49, reversing a decrease of $101,880,099.03 from the previous year[42] Assets and Liabilities - Total assets increased by 16.78% to CNY 9,861,553,190.14 compared to the end of the previous year[7] - The company's total assets increased, with cash and cash equivalents at RMB 1,703,763,989.01, up from RMB 1,420,658,858.63 at the beginning of the year[21] - Total liabilities increased significantly, with accounts payable rising by 43.29% to RMB 1,110,896,594.12, reflecting increased operational costs[17] - Total liabilities increased to ¥6,082,460,894.78 from ¥4,888,161,525.21, indicating a rise of around 24.4%[23] - Current liabilities amounted to ¥4,712,288,831.07, compared to ¥3,548,016,584.05, showing an increase of about 33%[23] Shareholder Information - The total number of shareholders reached 22,428 by the end of the reporting period[13] - The largest shareholder, Nanchang Water Group, holds 31.33% of the shares, with 90,720,000 shares pledged[13] Investment and Expenses - The company reported a decrease in other comprehensive income by 93.75%, down to RMB 805,425.60, due to reduced returns from investments[17] - Financial expenses increased to ¥37,734,470.71, compared to ¥22,243,835.47 in the previous year, primarily due to higher interest costs[30] - The company's investment income decreased by 81.71% to RMB 4,098,792.68, primarily due to reduced returns from financial investments[18] - Research and development expenses for the period were ¥6,451,461.05, reflecting ongoing investment in innovation[30] Future Outlook - The company has not disclosed any new product developments or market expansion strategies in this report[6] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[30]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,246,794,537.51, representing a 49.42% increase compared to CNY 1,503,666,772.38 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2018 was CNY 163,735,211.65, which is a 31.15% increase from CNY 124,842,549.92 in the previous year[19]. - The net cash flow from operating activities for the first half of 2018 was CNY 254,586,781.48, up 27.67% from CNY 199,416,681.24 in the same period last year[19]. - The total profit amounted to 284.24 million RMB, marking a year-on-year increase of 29.92%[38]. - The net profit attributable to shareholders was 161.40 million RMB, up 29.28% year-on-year[38]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 158,922,115.78, which is a 42.26% increase from CNY 111,716,237.52 in the previous year[19]. - The company achieved a total water sales volume of 157.64 million cubic meters, an increase of 4.96% year-on-year[38]. - The total sewage treatment volume reached 344.45 million cubic meters, reflecting a year-on-year growth of 12.48%[38]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 9,480,319,266.18, a 22.33% increase from CNY 7,749,843,582.40 at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were CNY 3,370,750,288.03, reflecting a 5.31% increase from CNY 3,200,908,274.68 at the end of the previous year[20]. - Total current assets increased to CNY 2,713,939,945.35 from CNY 2,342,957,282.74, representing a growth of approximately 15.9%[153]. - Total liabilities increased to CNY 5,714,543,523.64 from CNY 4,888,161,525.21, showing an increase of about 16.9%[155]. - Short-term borrowings at the end of the period reached ¥1,989,500,000.00, a year-on-year increase of 209.17%, primarily due to new bank loans from Jiangxi Hongcheng Water Industry Co., Ltd.[47]. Market Position and Strategy - The company holds a dominant market position, with over 80% market share in the county-level sewage treatment market in Jiangxi Province and over 90% in the gas market in Nanchang[32]. - The company is actively exploring new segments in the environmental industry, including air governance, watershed management, and soil remediation, to drive sustainable growth[26]. - The company is leveraging its existing resources to achieve organic growth while actively participating in market competition for external growth[31]. - The company has a significant focus on enhancing production service quality and market competitiveness through strategic investments and acquisitions[37]. Management and Governance - The company has a strong management team with extensive industry experience, focusing on innovation and operational efficiency[34]. - The company has been recognized as a high-tech enterprise, reflecting its commitment to technological research and development[35]. - The company operates under a franchise model for its main businesses, providing strong stability and exclusivity for 25-30 years[33]. Environmental Compliance - The company has established a comprehensive water quality monitoring system to ensure compliance with national drinking water standards, enhancing user trust[27]. - The average discharge concentration of pollutants from wastewater treatment operations has been maintained below the established standards, with COD emissions totaling approximately 6,600 tons in the first half of 2018[124]. - The company has implemented environmental monitoring measures, including both manual and online continuous monitoring, to ensure compliance with environmental regulations[128]. - All major wastewater treatment facilities have passed environmental assessments and are currently operating normally[125]. Commitments and Obligations - The company has made commitments related to major asset restructuring, which are valid from October 26, 2015, and are still effective[69]. - The company has commitments regarding refinancing and resolving land ownership issues, which are valid until June 30, 2010, and are still effective[69]. - The company has commitments to avoid competition with its subsidiaries, which are valid from September 29, 2015, and are still effective[70]. - The company has committed to ensuring that the net profit attributable to the parent company for Nanchang Gas from 2016 to 2018 will not be less than 74 million, 79 million, and 84 million yuan respectively, with compensation promised if these targets are not met[88]. Shareholder Information - The company has a total of 21,872 common stock shareholders as of the end of the reporting period[142]. - The total number of unrestricted circulating shares held by the top ten shareholders is 221,982,481 shares, with South Jiangxi Water Industry Group Co., Ltd. being the controlling shareholder[145]. - The actual controller of the company is Nanchang Municipal Public Utilities Investment Holding Co., Ltd., which is a wholly-owned subsidiary of Nanchang Water Industry Group Co., Ltd.[145]. Financial Management - The company has not disclosed any plans for profit distribution or capital reserve conversion during the reporting period[4]. - The company did not distribute dividends during the period, maintaining cash reserves for future investments[174]. - The company has not engaged in any significant asset acquisitions or sales during the reporting period[110]. - The company has not issued any new shares to strategic investors or general legal entities during the reporting period[147].

Financial Performance - In 2017, the company achieved a total operating revenue of CNY 3,544,170,588.07, representing a year-on-year increase of 14.65% compared to CNY 3,091,211,667.26 in 2016[21] - The net profit attributable to shareholders of the listed company for 2017 was CNY 273,969,542.03, an increase of 17.9% from CNY 232,374,734.89 in 2016[21] - The total profit amounted to 456.72 million yuan, which is an 18.66% increase year-on-year[36] - The company’s basic financial indicators show a significant increase in both revenue and net profit over the past three years[20] - The net profit attributable to shareholders of the listed company for 2017 was CNY 3,212,589,200.64, an increase of 4.24% compared to CNY 3,081,783,843.63 in 2016[22] - The total assets of the company reached CNY 8,444,887,491.05, reflecting an 8.98% increase from CNY 7,748,810,553.56 in 2016[22] - Basic earnings per share for 2017 were CNY 0.35, a 16.67% increase from CNY 0.30 in 2016[23] - The weighted average return on equity increased to 8.74% in 2017, up from 8.28% in 2016, representing an increase of 0.46 percentage points[23] - The company generated a net cash flow from operating activities of CNY 774,967,732.56, compared to CNY 723,310,482.59 in 2016, marking a 7.14% increase[22] - The quarterly revenue for Q4 2017 was CNY 1,143,748,586.51, with a net profit attributable to shareholders of CNY 65,514,354.06[24] Profit Distribution and Retained Earnings - The company plans to retain earnings and not distribute profits for 2017, in line with its strategic development plans for 2018[6] - The company extracted 10% of the net profit for 2017 as statutory reserve fund, amounting to CNY 17,353,676.79[6] - The total distributable profit for shareholders in 2017 was CNY 396,225,769.62 after accounting for previous dividends[6] - The board proposed no profit distribution for 2017 to ensure long-term development and maximize shareholder interests[101] Business Operations and Market Position - The company is focused on expanding its business operations and industry layout in 2018[6] - The company maintains a leading position in the water supply market in Nanchang, with a strong regional monopoly[29] - The company has obtained exclusive operating rights for sewage treatment services across Jiangxi Province and other regions, allowing for price adjustments based on government negotiations[29] - The company is involved in the supply and sale of natural gas, including pipeline natural gas, compressed natural gas (CNG), and liquefied natural gas (LNG), under government-issued licenses[29] - The company holds over 80% market share in wastewater treatment at the county level in Jiangxi Province[31] - The company has a market share of over 90% in the natural gas market in Nanchang, indicating strong competitive positioning[59] Environmental and Sustainability Initiatives - The company emphasizes the importance of ecological civilization and green finance, aligning with national policies to boost the environmental protection industry[80] - The company has promoted clean energy initiatives, including natural gas and solar energy, to enhance sustainability[168] - The company has engaged in pipeline renovation projects to reduce leakage and improve water supply efficiency[168] - The company reported a total discharge of approximately 10,100 tons of Chemical Oxygen Demand (COD) and 3,500 tons of Biochemical Oxygen Demand (BOD) in 2017, adhering to environmental standards[170] - The company successfully reduced environmental pollutants by approximately 132,900 tons during the reporting period[170] - The company has implemented a comprehensive emergency response plan for environmental incidents at all wastewater treatment facilities[171] Research and Development - The company reported a total R&D expenditure of ¥23,198,549.11, representing 0.65% of total revenue, with no capitalized R&D expenses[51][52] - The number of R&D personnel was 214, accounting for 11% of the total workforce[52] - The company is investing 50 million RMB in R&D for new technologies aimed at improving water purification processes[189] Financial Management and Governance - The company has committed to a cash distribution policy that requires cumulative cash dividends over three years to be no less than 30% of the average distributable profit[98] - The company has a commitment to improve corporate governance to protect the interests of minority shareholders[93] - The company has not faced any major litigation or arbitration matters during the reporting period[146] - The company has adopted various energy-saving measures, including paperless operations, to lower energy consumption across its operations[168] Future Plans and Strategic Goals - The company plans to achieve total assets of 9.663 billion yuan, net assets of 3.834 billion yuan, total operating revenue of 4.650 billion yuan, and total profit of 427 million yuan by the end of 2018[86] - The company aims to complete the construction of 40 sewage treatment plants meeting Class A discharge standards by the end of 2018[87] - The company plans to establish 260 LNG refueling stations by 2020, with 200 located in urban areas[84] - The company is planning market expansion into two new provinces, aiming to increase market share by 5% in the next year[190] Shareholder and Equity Information - The controlling shareholder, Nanchang Water Industry Group, holds 29.34% of the company's total shares, while the actual controller, Municipal Public Utilities Group, holds 44.54%[93] - The largest shareholder, Nanchang Water Industry Group Co., Ltd., holds 29.40% of shares, totaling 232,167,041 shares, with 25,393,325 shares pledged[178] - The total number of ordinary shareholders increased from 24,630 to 26,215 during the reporting period[176] Employee and Management Information - The number of employees in the parent company was 1,938, while the main subsidiaries employed 2,567, totaling 4,505 employees[195] - The company conducted 74 training sessions throughout the year, with a total of 1,152 participants, aimed at enhancing employee skills and business capabilities[197] - The total remuneration for all directors, supervisors, and senior management was 4.6902 million yuan (pre-tax) at the end of the reporting period[194] - There were changes in management positions, including the appointment of Shao Tao as General Manager and Shi Xiaohua as Deputy Chairman[193]