Financial Performance - Operating revenue for the first quarter reached CNY 2.07 billion, a significant increase of 55.34% year-on-year[12] - Net profit attributable to shareholders rose by 36.73% to CNY 216.83 million compared to the same period last year[12] - Basic earnings per share increased by 35.29% to CNY 0.23 per share[12] - The total profit for the quarter was CNY 311,960,739.33, up 44.49% from CNY 215,906,768.11 year-on-year[23] - Net profit for Q1 2021 was CNY 243,009,788.67, a 38.57% increase from CNY 175,369,045.90 in the previous year[23] - Operating profit for Q1 2021 was ¥310,115,063.94, up from ¥215,507,163.27 in Q1 2020, reflecting a growth of 43.9%[40] - Net profit attributable to shareholders for Q1 2021 was ¥216,829,242.49, compared to ¥158,584,655.97 in Q1 2020, marking an increase of 36.7%[42] Cash Flow - Net cash flow from operating activities improved to CNY 131.58 million, a turnaround from a negative cash flow of CNY 29.13 million in the previous year[12] - Cash flow from operating activities generated a net amount of ¥131,581,581.41, a significant improvement from a negative cash flow of ¥29,134,196.23 in Q1 2020[49] - Net cash flow from financing activities was negative at ¥-253,821,073.68, contrasting with a positive cash flow of ¥422,736,707.85 in Q1 2020[51] - The ending balance of cash and cash equivalents was ¥3,401,032,613.10, compared to ¥2,172,693,906.29 at the end of Q1 2020, reflecting an increase of approximately 56.5%[51] Assets and Liabilities - Total assets increased by 4.75% to CNY 17.28 billion compared to the end of the previous year[12] - Total liabilities reached ¥11,003,825,350.74, up from ¥10,503,260,697.59, marking a growth of around 4.76%[31] - Current liabilities rose to ¥6,490,532,636.21 from ¥6,284,824,770.99, indicating an increase of approximately 3.28%[29] - Total current assets amounted to ¥5,780,969,195.42, remaining stable compared to the previous period[55] - Total non-current liabilities amounted to ¥4,513,292,714.53, compared to ¥4,218,435,926.60, indicating an increase of approximately 6.99%[31] Shareholder Information - The total number of shareholders at the end of the period was 23,075[15] - The largest shareholder, Nanchang Water Industry Group, holds 29.42% of the shares[18] - Shareholders' equity increased to ¥6,278,304,782.30 from ¥5,994,704,903.82, showing an increase of about 4.74%[31] Research and Development - Research and development expenses rose by 89.23% to CNY 14,067,344.62 from CNY 7,434,050.98, reflecting the company's increased investment in R&D[21] - Research and development expenses for Q1 2021 were ¥14,067,344.62, nearly doubling from ¥7,434,050.98 in Q1 2020, indicating a focus on innovation[40] Investment Activities - The company reported a significant decrease in investment income, down 80.33% to CNY 632,852.19 from CNY 3,217,077.73, due to reduced equity method investment income[21] - Cash outflow from investing activities was ¥819,429,933.47, up from ¥456,068,002.82, representing an increase of about 79.7%[51] - Cash inflow from investment activities totaled ¥72,981,527.19, a significant increase from ¥29,451,808.84 in the previous period[53] Other Financial Metrics - The weighted average return on equity rose by 0.63 percentage points to 3.91%[12] - The company reported non-recurring gains of CNY 14.02 million for the quarter[15] - The company executed the new leasing standards effective January 1, 2021, impacting financial reporting and asset recognition[62]

Financial Performance - The company achieved a net profit of ¥784,409,025.73 for the year 2020, with a net profit attributable to the parent company of ¥663,909,525.23[6] - The parent company reported a net profit of ¥295,954,318.20 for 2020, with a proposed distribution of cash dividends of ¥4.21 per share, totaling ¥399,124,145.77[6] - The total distributable profit for the year amounted to ¥643,707,306.27 after accounting for previous retained earnings and dividends paid[6] - The company's operating revenue for 2020 was CNY 6,601,164,525.80, representing a 22.68% increase compared to CNY 5,380,989,963.80 in 2019[28] - Net profit attributable to shareholders for 2020 was CNY 663,909,525.23, a 35.84% increase from CNY 488,736,023.01 in 2019[28] - The net cash flow from operating activities for 2020 was CNY 1,372,145,632.36, up 14.20% from CNY 1,201,537,888.78 in 2019[28] - The total assets at the end of 2020 were CNY 16,497,965,601.41, a 39.47% increase from CNY 11,829,409,625.47 at the end of 2019[28] - Basic earnings per share for 2020 were CNY 0.70, reflecting a 14.75% increase from CNY 0.61 in 2019[29] - The weighted average return on equity for 2020 was 13.45%, an increase of 0.47 percentage points from 12.98% in 2019[29] Market Position and Operations - The company holds a dominant position in the urban water supply market in Nanchang, with a strong regional monopoly[37] - The company occupies over 80% market share in the county-level sewage treatment market in Jiangxi Province[41] - The gas market share in Nanchang has exceeded 90%[41] - The company operates under a franchise model for its main businesses, with franchise rights typically granted for 25-30 years, ensuring stability and exclusivity[41] - The company has established a water quality monitoring department that meets national standards, with over 140 detection capabilities, reflecting its technological leadership[44] - The company has implemented a high-education talent recruitment plan to enhance its operational and technical capabilities[44] - The sewage treatment and environmental governance sectors are expected to see continued growth due to government policies promoting ecological civilization[39] - The natural gas industry is anticipated to grow as the country implements clean and low-carbon development strategies[39] Financial Management and Governance - The company maintains a commitment to transparency and accuracy in its financial reporting, as stated by its management[4] - The company has provided a standard unqualified audit report from Da Xin Accounting Firm[5] - 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 plans to allocate 10% of the parent company's net profit, amounting to ¥29,595,451.82, to statutory reserves[6] - The company has established a cash dividend policy that prioritizes shareholder returns while considering long-term growth[102] - The company will continue to improve its corporate governance structure to protect the interests of minority shareholders[99] Risks and Challenges - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[7] - The company has not disclosed any significant risks in the report, indicating a stable operational environment[10] - The company recognizes the risk of over-reliance on the local market for water supply and aims to expand into surrounding towns and suburbs to mitigate this risk[96] - The company faces potential risks related to price adjustments in the water supply sector due to strict government regulations, which may affect its ability to respond to rising operational costs[96] - The company is at risk of not renewing its operating licenses for wastewater treatment plants after the 20-30 year term expires[99] Environmental Responsibility - The company has implemented an emergency response plan for environmental incidents at all wastewater treatment facilities, enhancing its environmental protection measures[186] - The company’s major pollutants are monitored in real-time, with data accessible to environmental authorities and published on the provincial environmental quality information platform[189] - The company has not faced any penalties for environmental violations during the reporting period, adhering to national environmental laws[190] - The company’s environmental monitoring methods include both manual and online continuous monitoring, demonstrating a commitment to environmental responsibility[187] Subsidiaries and Related Transactions - The company has made long-term commitments regarding related party transactions, ensuring compliance with legal and regulatory requirements[111] - The company has committed to minimizing related party transactions with Hongcheng Water Industry, ensuring fair pricing and timely disclosure[111] - The company will not engage in any business activities that compete with Hongcheng Water Industry's current and future main operations[116] - The company has committed to resolving competition issues with Hongcheng Water Industry within 36 months through various means, including divestiture or closure of competing businesses[129] Investment and Growth Strategies - The company is actively exploring other segments of the environmental industry to drive sustainable growth[37] - The company plans to upgrade over 30 sewage treatment plants to meet Class A discharge standards, ensuring compliance with environmental regulations[95] - The company is focusing on expanding its water supply capabilities by improving old urban pipeline networks and constructing new facilities in key areas[95] - The solid waste treatment sector is expected to grow significantly due to government policies promoting waste classification and resource utilization, with incineration accounting for nearly 50% of waste treatment methods in 2020[94] Financial Instruments and Capital Structure - The company successfully issued convertible bonds, raising 1.8 billion RMB to support sustainable development[49] - The company’s cash flow is robust, ensuring the ability to meet the principal and interest payments on convertible bonds[195] - The total number of ordinary shares increased to 948,038,351 after the issuance of 5,885,000 new shares[198] - The company has 37,305 holders of convertible bonds, with the largest holder owning 20.50% of the total[192]

Financial Performance - Net profit attributable to shareholders of the listed company was ¥520,934,126.48, representing a growth of 48.57% year-on-year[11]. - Operating revenue for the first nine months was ¥4,607,150,812.24, an increase of 25.42% compared to the same period last year[11]. - Total profit increased by 37.77% from CNY 542,470,448.79 to CNY 747,370,784.83, attributed to increased company profits[26]. - Net profit rose by 44.09% from CNY 416,394,757.22 to CNY 600,000,461.49, reflecting overall profit growth[26]. - Total operating revenue for Q3 2020 reached ¥1,830,964,348.86, a 69.8% increase compared to ¥1,077,945,805.74 in Q3 2019[45]. - Net profit for Q3 2020 was ¥225,547,840.23, compared to ¥121,941,874.39 in Q3 2019, representing an 85.0% increase[48]. - The company reported a total profit of ¥280,409,490.08 for Q3 2020, compared to ¥157,902,682.87 in Q3 2019, a 77.2% increase[48]. - The net profit attributable to shareholders was ¥194,795,797.03, compared to ¥107,307,703.90 in Q3 2019, reflecting an 81.6% increase[48]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥14,466,155,670.63, an increase of 22.29% compared to the end of the previous year[11]. - Non-current assets totaled ¥9,870,180,080.84, up from ¥8,239,480,788.00, reflecting an increase of approximately 19.8%[34]. - Total liabilities reached ¥8,996,608,521.50, compared to ¥6,657,976,660.78, indicating a rise of about 35.1%[36]. - Short-term borrowings surged to ¥2,255,910,882.04 from ¥1,225,337,658.31, an increase of approximately 84.1%[34]. - Long-term borrowings increased to ¥2,707,244,726.80, up from ¥1,921,408,574.42, representing a growth of about 40.9%[36]. - Total current assets increased to ¥4,595,975,589.79 as of September 30, 2020, up from ¥3,589,928,837.47 on December 31, 2019, representing a growth of approximately 28.0%[30]. - Total liabilities amounted to $1,922,051,471.78, with current liabilities at $1,637,271,078.39[76]. Cash Flow - The net cash flow from operating activities for the first nine months was ¥883,332,653.67, a decrease of 2.49% year-on-year[11]. - Cash flow from investing activities showed a net outflow of CNY -1,687,945,534.82, an increase in cash payments for fixed assets and other long-term assets[26]. - The company's cash flow from financing activities increased by 576.31% from CNY 147,991,399.80 to CNY 1,000,882,526.58, primarily due to increased cash from loans[26]. - The company reported a net cash flow from operating activities of CNY 883,332,653.67, down from CNY 905,876,655.00 in the previous year[56]. - The total cash inflow from investment activities was 232,445,203.51 RMB, down from 393,269,118.11 RMB year-over-year, resulting in a net cash flow from investment activities of -328,354,734.18 RMB[62]. - The cash flow from financing activities showed a net outflow of 34,715,802.35 RMB, compared to a larger outflow of 377,005,335.93 RMB in the previous year[62]. Shareholder Information - The total number of shareholders at the end of the reporting period was 22,730[17]. - The largest shareholder, Nanchang Water Industry Group Co., Ltd., held 29.42% of the shares, amounting to 278,959,551 shares[17]. - Total equity attributable to shareholders rose to ¥5,044,744,799.75 from ¥4,750,230,007.74, reflecting an increase of approximately 6.2%[36]. Inventory and Receivables - Accounts receivable decreased by 42.08% from CNY 646,092,931.89 to CNY 374,241,133.09 due to changes in accounting policies[21]. - Prepayments increased by 74.42% from CNY 115,786,356.93 to CNY 201,955,635.41 primarily due to increased advance payments for projects and equipment[21]. - Inventory increased by 179.32% from CNY 356,025,396.29 to CNY 994,457,047.20 mainly due to changes in accounting policies[23]. Government Subsidies and Other Income - Government subsidies recognized in the current period amounted to ¥8,180,940.56, with a total of ¥14,161,066.15 for the year-to-date[16]. - Non-current asset disposal gains for the first nine months were ¥23,430,053.48[16]. - The total amount of other comprehensive income reported was $1,825,116.89[76].

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]