Financial Performance - Operating revenue increased by 16.09% to CNY 3,613,561,844.61 compared to the same period last year[8] - Net profit attributable to shareholders decreased by 9.78% to CNY 1,257,081,125.07 compared to the same period last year[8] - Basic earnings per share decreased by 6.45% to CNY 0.29[8] - Total operating revenue for Q3 2018 reached ¥1,326,770,068.82, an increase of 20.4% compared to ¥1,102,675,235.96 in Q3 2017[28] - Net profit for Q3 2018 was ¥595,551,628.78, representing a 25.8% increase from ¥473,598,725.90 in Q3 2017[30] - The total profit for the first nine months of 2018 was ¥1,491,290,004.65, a decrease of 9.3% compared to ¥1,643,823,674.91 in the same period of 2017[30] - The total comprehensive income for the first nine months of 2018 reached ¥1,000,016,882.53, compared to ¥1,323,646,196.80 for the same period in 2017, showing a decline of 24.4%[36] Assets and Liabilities - Total assets decreased by 7.73% to CNY 18,650,391,494.59 compared to the end of the previous year[7] - Cash and cash equivalents decreased by 47.76% to ¥3,159,970,418.08 from the beginning of the year[11] - Total current assets decreased from ¥8,476,682,956.09 to ¥6,461,030,135.63, a decline of approximately 23.7%[20] - Total non-current assets increased from ¥11,735,560,859.70 to ¥12,189,361,358.96, reflecting a growth of about 3.9%[21] - Total liabilities decreased from ¥5,918,565,904.43 to ¥4,481,126,152.72, a reduction of approximately 24.3%[22] - Current liabilities fell from ¥3,905,988,066.86 to ¥2,461,949,634.43, a decrease of about 37.0%[22] - Total equity attributable to shareholders decreased from ¥14,247,826,786.43 to ¥14,121,980,200.18, a reduction of about 0.9%[22] Cash Flow - Net cash flow from operating activities increased by 15.99% to CNY 1,606,890,085.73 for the period from January to September[7] - Operating cash inflow for the year-to-date period reached ¥4,821,415,438.65, a decrease of 3.9% compared to ¥5,016,701,299.94 in the previous year[39] - Cash inflow from investment activities totaled ¥2,173,897,431.25, down 26.8% from ¥2,969,838,835.63 in the same period last year[40] - Cash outflow from financing activities amounted to ¥3,152,730,292.33, significantly higher than ¥1,620,358,502.17 in the prior year[40] - The net increase in cash and cash equivalents was -¥2,888,689,401.36, compared to -¥959,987,900.25 in the same period last year[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 46,204[9] - The largest shareholder, Chongqing Derun Environment Co., Ltd., holds 50.04% of the shares[10] Other Financial Metrics - Government subsidies recognized in the current period amounted to CNY 26,044,904.76[8] - Non-operating income and expenses totaled CNY 65,569,721.24 for the current period[8] - The weighted average return on net assets decreased by 1.05 percentage points to 9.89%[8] - Research and development expenses decreased by 69.49% to ¥50,810.07 compared to the same period last year[13] - Other income dropped by 64.49% to ¥185,388,763.88 year-on-year[13] - The company received a tax refund of ¥114,137,965.24 for VAT overpayment from April 2017 to April 2018[16] - The company recorded other income of ¥101,330,316.86 in Q3 2018, a significant increase from ¥29,970,000.00 in Q3 2017, reflecting improved operational efficiency[35]

Financial Performance - The company's operating revenue for the first half of 2018 was approximately RMB 2.29 billion, representing a year-on-year increase of 13.77% compared to RMB 2.01 billion in the same period last year[17]. - The net profit attributable to shareholders of the listed company decreased by 22.14% to approximately RMB 796 million, down from RMB 1.02 billion in the previous year[17]. - The basic earnings per share for the first half of 2018 was RMB 0.17, a decrease of 19.05% compared to RMB 0.21 in the same period last year[18]. - The company reported a significant decrease in cash assets, with a year-end balance of ¥2,638,610,970.09, down 56.38% from the beginning of the year[29]. - The company reported a net cash flow from operating activities of approximately RMB 807 million, an increase of 9.28% compared to RMB 739 million in the same period last year[17]. - Net profit was 796 million RMB, a decrease of 22.14% year-on-year, but adjusted for a one-time tax refund last year, it increased by 10.66%[34]. - The profit margin decreased to 34.9% from 50.9% year-over-year[131]. - The total profit for the current period was ¥851,635,381.82, down 25.8% from ¥1,147,786,939.26 in the previous period[130]. Assets and Liabilities - The total assets of the company at the end of the reporting period were approximately RMB 17.79 billion, a decrease of 11.98% from RMB 20.21 billion at the end of the previous year[17]. - The company's asset-liability ratio improved to 23.71%, down 5.57 percentage points from the beginning of the year[34]. - Total assets decreased from CNY 20,212,243,815.79 to CNY 17,791,088,624.75, a decline of approximately 6.5%[124]. - Current liabilities decreased from CNY 3,905,988,066.86 to CNY 2,165,890,529.75, representing a reduction of about 44.6%[124]. - Total liabilities decreased from CNY 5,329,814,790.24 to CNY 3,376,648,176.00, a reduction of approximately 36.6%[128]. Cash Flow - The company reported a net cash flow from operating activities of 808 million RMB, an increase of 9.28% year-on-year[37]. - Cash outflow from financing activities totaled CNY 3,125,004,800.81, significantly higher than CNY 1,544,050,638.64 in the same period last year[137]. - The ending balance of cash and cash equivalents was CNY 2,619,218,188.64, down from CNY 3,965,984,210.26 at the end of the previous period[137]. - Operating cash inflow for the first half of 2018 was CNY 3,006,888,581.87, a decrease of 10.8% compared to CNY 3,371,812,267.17 in the same period last year[136]. Acquisitions and Investments - The company completed the acquisition of 100% equity in Chongqing Qianjiang Drainage Co., Ltd., which is a wholly-owned subsidiary of Chongqing Water Asset Management Co., Ltd.[19]. - The company acquired 100% equity of Qianjiang Drainage Co., Ltd. for 71.21 million RMB during the reporting period[43]. - The company provided a shareholder loan of RMB 117 million to Chongqing Sino-French Water, with a loan term of ten years, primarily for the acquisition of the Chongqing Changshou Chemical Park water supply and drainage project[74]. Operational Highlights - The company operates under a 30-year exclusive franchise for water supply and sewage treatment in Chongqing, ensuring stable revenue streams[31]. - The company operates 39 sewage treatment plants that meet the Class A discharge standards, as per the national pollution discharge standards[79]. - The company has established a comprehensive water quality monitoring system with over 300 detection capabilities, ensuring the safety and quality of water supply and sewage discharge[83]. - The company has 51 wastewater treatment plants with a daily processing capacity of 2.4489 million cubic meters[160]. Risk Management - The company has outlined potential risks in its operations, which are detailed in the report[5]. - The company faces risks related to raw material supply, energy supply and pricing, and government-regulated water pricing adjustments[48][49]. - The company is subject to increased operational costs and potential penalties due to stricter environmental regulations[52]. - The company plans to enhance risk management and cost control measures to mitigate potential financial impacts from rising costs and regulatory changes[50][52]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,038[100]. - The top shareholder, Chongqing Derun Environment Co., Ltd., holds 2,401,800,000 shares, representing 50.04% of the total shares[101]. - The company reported no changes in its total share capital or share structure during the reporting period[99]. Legal and Compliance - The company has ongoing significant litigation matters, including arbitration initiated by its subsidiary, which has not yet proceeded to a hearing[62]. - There were no significant penalties or administrative sanctions imposed on the company or its executives during the reporting period[66]. - The company has not faced any penalties for environmental violations during the reporting period, adhering to relevant environmental laws and regulations[86]. Corporate Governance - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[68]. - The company’s vice president, Wang Taolang, resigned due to reaching retirement age, effective January 1, 2018[106]. - The company’s actual controller remains the Chongqing State-owned Assets Supervision and Administration Commission[153]. Accounting Policies - The company's financial statements are prepared based on the going concern principle, indicating no significant issues affecting its ability to continue operations[163]. - The company’s accounting policies comply with the requirements of enterprise accounting standards, ensuring accurate financial reporting[165]. - The company recognizes interest income on held-to-maturity investments using the effective interest method, with the effective interest rate determined at acquisition[180].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Board of Directors' Statement](index=3&type=section&id=1.1%20Board%20of%20Directors%27%20Statement) The Board of Directors, Supervisory Board, and senior management affirm the truthfulness and completeness of this unaudited quarterly report - Company management guarantees the truthfulness, accuracy, and completeness of this quarterly report[7](index=7&type=chunk) - This company's first quarter report is unaudited[7](index=7&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2018, operating revenue grew by 11.33% to RMB 976 million, while net profit attributable to shareholders declined by 42.99% to RMB 319 million due to a high prior-year base Key Financial Indicators for Q1 2018 | Indicator | Current Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 976,338,577.38 | 876,980,127.43 | 11.33% | | Net Profit Attributable to Shareholders (RMB) | 318,754,868.52 | 559,147,807.57 | -42.99% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 290,662,044.29 | 543,852,999.11 | -46.56% | | Net Cash Flow from Operating Activities (RMB) | 358,402,162.72 | 276,347,441.01 | 29.69% | | Basic Earnings Per Share (RMB/share) | 0.07 | 0.12 | -41.67% | | Weighted Average Return on Net Assets (%) | 2.22% | 4.08% | Decrease of 1.86 percentage points | - Total non-recurring gains and losses for the period amounted to **RMB 28.09 million**, primarily comprising government subsidies and non-operating income/expenses[7](index=7&type=chunk)[8](index=8&type=chunk) [Shareholder Information](index=4&type=section&id=2.2%20Shareholder%20Information) As of the reporting period end, the company had 49,204 shareholders, with the top two state-owned entities holding a concentrated 88.56% stake as parties acting in concert - As of the end of the reporting period, the company had **49,204 shareholders**[9](index=9&type=chunk) Top Two Shareholders' Holdings | Shareholder Name | Number of Shares Held | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Chongqing Derun Environment Co, Ltd | 2,401,800,000 | 50.04 | State-owned Legal Entity | | Chongqing Water Assets Management Co, Ltd | 1,849,160,689 | 38.52 | State-owned Legal Entity | - The top two shareholders, Chongqing Derun Environment Co, Ltd and Chongqing Water Assets Management Co, Ltd, are parties acting in concert[10](index=10&type=chunk) [Significant Events](index=6&type=section&id=Item%20III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=6&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) Significant financial changes include a 41.95% decrease in cash due to bond redemption and wealth management product purchases, and a 42.86% decline in net profit due to a high prior-year base from a VAT refund - Cash and cash equivalents at period-end decreased by **41.95%** from the beginning of the year, primarily due to the redemption of the '12 Yu Shui Wu' corporate bond principal and interest totaling **RMB 1.577 billion** and the purchase of **RMB 1 billion** in entrusted wealth management products[11](index=11&type=chunk) - Other receivables at period-end increased by **89.24%** from the beginning of the year, mainly due to the purchase of **RMB 1 billion** in principal-protected, income-guaranteed entrusted wealth management products[11](index=11&type=chunk)[12](index=12&type=chunk) - Net profit and basic earnings per share significantly decreased year-on-year, primarily because the company received a **RMB 338 million** VAT refund for centralized procurement of sewage treatment services from the Chongqing Municipal Finance in the prior year, which was recorded as 'Other Income' and is absent this period[13](index=13&type=chunk)[14](index=14&type=chunk) [Progress of Significant Events](index=7&type=section&id=3.2%20Progress%20of%20Significant%20Events) On January 29, 2018, the company fully redeemed the '12 Yu Shui Wu' corporate bond, totaling RMB 1.5768 billion in principal and interest, leading to its delisting - On January 29, 2018, the company timely and fully redeemed the principal and interest of the '12 Yu Shui Wu' corporate bond, totaling **RMB 1.5768 billion**, and the bond has been delisted[16](index=16&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This appendix provides the company's unaudited consolidated and parent company financial statements for Q1 2018 - Consolidated Balance Sheet as of March 31, 2018 is provided[18](index=18&type=chunk)[19](index=19&type=chunk) - Consolidated Income Statement for January-March 2018 is provided[26](index=26&type=chunk)[27](index=27&type=chunk) - Consolidated Cash Flow Statement for January-March 2018 is provided[31](index=31&type=chunk)[33](index=33&type=chunk)

Financial Performance - The company's operating revenue for 2017 was approximately CNY 4.47 billion, a slight increase of 0.40% compared to CNY 4.45 billion in 2016[22]. - The net profit attributable to shareholders for 2017 was approximately CNY 2.07 billion, representing a significant increase of 93.51% from CNY 1.07 billion in 2016[22]. - The basic earnings per share for 2017 was CNY 0.43, up 95.45% from CNY 0.22 in 2016[23]. - The total assets at the end of 2017 were approximately CNY 20.12 billion, a decrease of 0.57% from CNY 20.24 billion in 2016[22]. - The net assets attributable to shareholders increased to approximately CNY 14.18 billion, a growth of 5.69% from CNY 13.41 billion in 2016[22]. - The weighted average return on equity for 2017 was 15.09%, an increase of 7.06 percentage points from 8.03% in 2016[23]. - The company reported a net cash flow from operating activities of approximately CNY 1.99 billion, a decrease of 6.20% from CNY 2.13 billion in 2016[22]. - The total amount of non-recurring gains and losses for 2017 was CNY 156.10 million, compared to CNY 184.19 million in 2016[28]. - The company achieved an operating revenue of 4.472 billion yuan in 2017, a year-on-year increase of 0.40%[44]. - The net profit reached 2.067 billion yuan, representing a significant year-on-year increase of 93.51%[44]. - The total assets amounted to 20.121 billion yuan, a decrease of 0.57% compared to the beginning of the year[44]. - The net assets (excluding minority interests) increased to 14.176 billion yuan, up by 5.69% from the beginning of the year[44]. - The company's earnings per share rose to 0.43 yuan, reflecting a 95.45% increase compared to 2016[44]. Revenue Breakdown - In Q1 2017, the company's operating revenue was approximately CNY 876.98 million, with a net profit attributable to shareholders of CNY 559.15 million[26]. - The total operating revenue for Q2 2017 reached CNY 1,132.99 million, while the net profit attributable to shareholders was CNY 465.12 million[26]. - For Q3 2017, the operating revenue was CNY 1,102.68 million, and the net profit attributable to shareholders was CNY 474.43 million[26]. - In Q4 2017, the company reported an operating revenue of CNY 1,358.91 million, with a net profit attributable to shareholders of CNY 568.22 million[26]. - The total sewage treatment volume reached 91,437.30 million cubic meters, generating revenue of CNY 214,884.39 million, which accounted for 48.06% of total operating revenue[50]. - The company’s self-water sales volume was 44,652.96 million cubic meters, with an average selling price of CNY 2.70 per cubic meter, contributing CNY 120,659.62 million to total revenue, or 26.98%[50]. Operational Capacity and Market Position - The company holds approximately 58% of the tap water market and 76% of the sewage treatment market in the main urban area of Chongqing[40]. - The company has a daily water production capacity of 2.186 million cubic meters and a sewage treatment capacity of 2.4489 million cubic meters[40]. - The company expanded its daily sewage treatment capacity by 165,000 cubic meters in 2017[45]. - Water production reached 51,758 million cubic meters, an increase of 5.04% year-over-year, while sales volume was 44,652.96 million cubic meters, up 6.12% year-over-year[58]. - Wastewater treatment production was 87,496.74 million cubic meters, with sales volume at 91,437.30 million cubic meters, reflecting a year-over-year increase of 6.96%[58]. Investments and Expenditures - The company’s R&D expenditure increased significantly by 258.58% to CNY 985,525.25 from CNY 274,843.00[53]. - The company plans to complete capital expenditures of 3.796 billion yuan, which will involve infrastructure projects, upgrades, and acquisitions[106]. - The company has ongoing projects with a total budget of 10,398 million RMB and 20,572.51 million RMB, with significant investments already made[92]. - The company invested a total of 612.24 million yuan in Chongqing Sino-French Water Co., Ltd. and 525 million yuan in Chongqing Sino-French Environmental R&D Center, with a 25% decrease in external equity investment compared to the previous year[95]. Risk Management and Compliance - The company has outlined potential risks in its future development, which are detailed in the management discussion and analysis section of the report[7]. - The company faces risks related to raw material supply, particularly due to uneven rainfall in Chongqing, which can increase water extraction and purification costs[108]. - The company is exposed to energy supply and price risks, as electricity is its main energy source, and rising electricity prices could impact profitability[109]. - The company has not received the 70% VAT refund for wastewater treatment since April 2017, amounting to CNY 99.57 million, and is seeking resolution from local government[113]. - The company plans to strengthen operational management and risk control to mitigate tax risks associated with changes in tax policies[112]. Corporate Governance and Shareholder Relations - The company appointed Tianzhi International Accounting Firm (Special General Partnership) as the auditor for the 2017 annual financial report, replacing Lixin Accounting Firm (Special General Partnership) after a tenure of 3 years[128]. - The company has committed to maintaining independence in its operations and avoiding competition with its controlling shareholder, Chongqing Water Affairs[123]. - The company has established a priority right for transactions with its controlling shareholder to avoid conflicts of interest[123]. - The company has maintained a consistent cash dividend distribution policy, ensuring transparency and protection of minority shareholders' rights[117]. - The company reported a total of 35,511.84 million RMB in actual daily related party transactions, which is a decrease of 1,188.36 million RMB compared to the expected amount, representing 0.08% of the net assets attributable to shareholders at the end of 2017[134]. Future Outlook and Strategic Initiatives - The company plans to increase its production capacity in Chongqing for both water supply and sewage treatment, with new projects expected to be operational in 2018[73]. - The company is focusing on expanding its market share in Chongqing and entering emerging markets such as sludge treatment and rural sewage processing[103]. - The company aims to achieve an operating revenue of 4.702 billion yuan and expects total operating costs and expenses to be 3.473 billion yuan[106]. - The company is exploring opportunities in emerging markets to diversify its revenue streams[190]. - The company is considering strategic acquisitions to enhance its service offerings, with potential targets identified in the technology sector[188].

Financial Performance - Operating revenue for the first nine months decreased by 10.83% to CNY 3,112,645,184.13 compared to the same period last year[6] - Net profit attributable to shareholders increased by 19.15% to CNY 1,498,700,482.82 for the first nine months[6] - Total operating revenue for Q3 2017 was approximately ¥1.10 billion, a decrease of 17.5% compared to ¥1.34 billion in Q3 2016[27] - Net profit for Q3 2017 was approximately ¥474 million, a decrease of 5.3% compared to ¥501 million in Q3 2016[30] - The company reported a total profit of approximately ¥496 million for Q3 2017, compared to ¥510 million in Q3 2016, reflecting a decrease of 2.6%[30] - The company’s net profit attributable to shareholders was approximately ¥474 million, compared to ¥501 million in the same period last year[30] - Total operating revenue for Q3 2017 was CNY 561,381,317.69, a decrease of 12.24% compared to CNY 639,881,479.18 in Q3 2016[33] - Net profit for Q3 2017 was CNY 385,366,358.39, down 7.48% from CNY 416,675,323.20 in Q3 2016[34] - Total operating profit for the first nine months of 2017 was CNY 1,322,818,097.21, an increase of 30.38% compared to CNY 1,014,426,344.17 in the same period last year[34] Assets and Liabilities - Total assets decreased by 3.59% to CNY 19,510,223,401.55 compared to the end of the previous year[6] - The company reported a significant decrease of 88.99% in other receivables, amounting to CNY 134,183,633.31 at the end of the reporting period[11] - The company's total current assets decreased from CNY 5,432,270,506.67 at the beginning of the year to CNY 4,472,338,321.83 by the end of the reporting period, reflecting a decline of approximately 17.6%[19] - Current liabilities increased from CNY 3,100,277,135.15 to CNY 3,887,881,037.11, an increase of about 25.38%[21] - Non-current liabilities decreased from CNY 3,672,663,455.77 to CNY 1,959,791,746.12, a reduction of approximately 46.61%[21] - Total liabilities decreased from CNY 6,772,940,590.92 to CNY 5,847,672,783.23, a decrease of about 13.66%[21] - Owner's equity increased from CNY 13,464,182,890.31 to CNY 13,662,550,618.32, an increase of approximately 1.47%[22] - Accounts receivable decreased from CNY 952,214,357.59 to CNY 923,527,650.69, a decline of about 3.02%[20] - Inventory increased from CNY 294,974,956.68 to CNY 451,222,323.83, an increase of approximately 52.83%[20] - Cash and cash equivalents decreased from CNY 4,524,758,556.21 to CNY 3,554,065,882.70, a decline of about 21.48%[23] Cash Flow - Cash flow from operating activities decreased by 15.05% to CNY 1,385,419,124.40 compared to the same period last year[6] - Cash flow from financing activities resulted in a net outflow of -¥1,610,798,502.17, compared to -¥1,381,564,840.82 in the same period last year, reflecting increased financing costs[38] - The total cash outflow for operating activities was ¥3,631,282,175.54, which is an increase of 24.31% compared to ¥2,921,332,593.72 in Q3 2016[38] - The net cash flow from operating activities for Q3 2017 was ¥1,385,419,124.40, a decrease of 15.06% compared to ¥1,630,854,912.63 in Q3 2016[38] - The total cash inflow from investment activities was ¥2,969,838,835.63, down 46.14% from ¥5,509,922,907.25 in the previous year[38] - The net cash flow from investment activities was -¥734,552,807.07, compared to -¥527,501,767.09 in Q3 2016, indicating a worsening investment cash flow situation[38] - The total cash and cash equivalents at the end of Q3 2017 were ¥4,453,052,201.05, down from ¥5,227,169,696.88 at the end of Q3 2016[39] - The company received cash from sales and services amounting to ¥1,927,703,084.33, an increase of 17.19% from ¥1,645,969,371.24 in the previous year[39] - The cash inflow from investment activities for the first nine months of 2017 was ¥3,071,121,881.47, a decrease of 46.06% from ¥5,672,299,382.46 in the same period last year[40] - The net increase in cash and cash equivalents for Q3 2017 was -¥970,692,673.51, compared to -¥379,738,794.71 in Q3 2016, indicating a significant decline in liquidity[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 50,275[9] - The top two shareholders hold a combined 88.56% of the shares, indicating significant ownership concentration[9] Tax and Other Income - Non-operating income for the first nine months totaled CNY 103,041,304.52, with various components contributing to this figure[8] - The company reported a significant increase in tax and additional charges, rising by 201.66% to CNY 63,038,686.31 compared to the previous year[14] - The income tax expense surged by 371.33% to CNY 146,435,112.14, indicating a significant increase in taxable income[14] - The company’s other comprehensive income increased to CNY 24,913,764.93, compared to a loss of CNY 2,165,114.91 in the previous period[14] - The company received a substantial other income of CNY 422,241,667.63, which was not applicable in the previous reporting period[14] Future Outlook - The company is awaiting the finalization of the fourth-period pricing for wastewater treatment services, which may impact future revenue recognition[15] - Future outlook includes continued investment in new technologies and potential market expansion initiatives[36] - Management indicated a focus on cost control, with operating costs reduced to CNY 254,997,576.67 in Q3 2017 from CNY 287,002,200.62 in Q3 2016[33]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥2,009,969,948.17, a decrease of 6.69% compared to ¥2,154,120,557.41 in the same period last year[17]. - The net profit attributable to shareholders of the listed company increased by 35.32% to ¥1,024,271,623.32 from ¥756,916,563.83 year-on-year[17]. - The net cash flow from operating activities decreased by 21.90% to ¥739,118,988.97 compared to ¥946,381,093.36 in the previous year[17]. - The total assets at the end of the reporting period were ¥19,001,059,216.65, down 6.11% from ¥20,237,123,481.23 at the end of the previous year[17]. - The basic earnings per share for the first half of 2017 was ¥0.21, an increase of 31.25% from ¥0.16 in the same period last year[18]. - The weighted average return on net assets increased by 1.97 percentage points to 7.47% from 5.50% year-on-year[18]. - The company achieved operating revenue of CNY 2.01 billion, a decrease of 6.69% compared to the same period last year, primarily due to reduced engineering construction income and VAT impacts on sewage treatment services[34]. - Net profit reached CNY 1.02 billion, an increase of 35.32% year-on-year, largely attributed to a VAT refund of CNY 357 million from the Chongqing municipal government[34]. - The total assets amounted to CNY 19.00 billion, a decrease of 6.11% from the beginning of the year, while net assets were CNY 13.15 billion, down 1.99% due to cash dividends distributed[34]. Cash Flow and Investments - The net cash flow from operating activities was CNY 739,118,988.97, down 21.9% from CNY 946,381,093.36 in the previous year[126]. - Cash inflows from operating activities amounted to CNY 3,371,812,267.17, an increase of 15.4% from CNY 2,921,264,794.35 in the previous year[126]. - Cash outflows from investing activities were CNY 2,574,376,362.04, a decrease of 47.5% compared to CNY 4,911,467,357.51 in the same period last year[126]. - The company reported a total cash outflow from financing activities of ¥1,515,028,759.17, compared to ¥1,351,709,195.48 in the previous year, indicating an increase of 12.1%[131]. - The net cash flow from financing activities was -¥1,487,253,138.86, worsening from -¥1,326,460,942.21 year-on-year[131]. Assets and Liabilities - The total liabilities decreased from 6.773 billion yuan to 5.802 billion yuan, a decline of about 14.32%[114]. - The total current liabilities increased from 3.100 billion yuan to 3.840 billion yuan, an increase of approximately 23.83%[114]. - The company has a total credit line of 2.7 billion yuan, with no amount utilized as of the reporting date[108]. - The total assets as of June 30, 2017, amounted to CNY 17,041,031,840.56, a decrease from CNY 18,162,822,733.85 at the beginning of the year[119]. - The company's total equity as of June 30, 2017, was CNY 11,826,925,963.25, a decrease from CNY 12,238,896,768.94 at the beginning of the year[119]. Shareholder and Equity Information - The company has proposed no profit distribution or capital reserve fund transfer for the half-year period[58]. - The total equity attributable to the parent company's owners at the end of the period was 13,604.03 million RMB, compared to 12,238.89 million RMB at the end of the previous year, reflecting an increase of approximately 11.16%[137]. - The company reported a profit distribution of -1,248.0 million to shareholders, reflecting a decrease in retained earnings[142]. - The total amount of unallocated profits at the end of the period was 6,768.94 million RMB, showing a decrease from the previous period[140]. - The company has a registered capital of 480,000 million, with major shareholders including Chongqing Water Asset Management Co., Ltd. holding 75.104%[145]. Operational Highlights - The company maintains a unique advantage in its exclusive water supply and drainage operation rights granted by the Chongqing municipal government[30]. - The company is positioned as the largest integrated water supply and drainage operator in Chongqing, benefiting from a complete industrial chain[30]. - The company operates 51 sewage treatment plants with a daily processing capacity of 2.3239 million cubic meters[152]. - The company has received government authorization for a 30-year water supply and drainage franchise[148]. - The company has a total of 34 water treatment systems with a production capacity of 2.186 million cubic meters per day[149]. Risk Factors - The company faces risks related to raw material supply, particularly due to uneven rainfall in Chongqing, which may increase water extraction and purification costs[49]. - The company is exposed to energy supply and price risks, as electricity is the main energy source, and rising electricity prices could impact profitability[49]. - Water supply prices are regulated by the Chongqing government, and there is a risk that costs may rise without timely price adjustments[50]. - The company has experienced a downward trend in government procurement prices for wastewater treatment services, which could affect future profitability[50]. - The implementation of stricter environmental regulations may increase operational costs and investment requirements for wastewater treatment facilities[51]. Compliance and Governance - The company has not disclosed specific performance metrics or financial figures in the provided documents[60]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[63]. - The company has maintained a good integrity status, with no significant debts due that remain unpaid[65]. - The company is actively monitoring and managing risks associated with environmental compliance to ensure wastewater treatment meets national standards[51]. - The company will ensure compliance with decision-making procedures and fair market pricing principles in any unavoidable related transactions[62]. Accounting and Financial Reporting - The company's financial statements are prepared based on the going concern principle and comply with the relevant accounting standards[155]. - The company includes all subsidiaries in its consolidated financial statements based on control[163]. - The company recognizes the fair value of remaining equity investments when control is lost, and the difference is recorded as investment income in the period of loss of control[168]. - The company applies the aging analysis method for bad debt provision on receivables, with a provision rate of 5% for receivables within 1 year, 10% for 1-2 years, 50% for 2-3 years, and 90% for over 3 years[188]. - The company recognizes assets held for sale if they can be sold immediately in their current condition and if a decision to dispose of them has been made[192].

Financial Performance - Operating revenue for the period was CNY 876,980,127.43, down 9.59% year-on-year[5] - Net profit attributable to shareholders rose by 83.66% to CNY 559,147,807.57[5] - Basic earnings per share doubled to CNY 0.12 from CNY 0.06[5] - Net profit for the reporting period reached ¥559,490,988.06, an increase of 83.56% compared to ¥304,803,158.25 in the previous year[16] - Basic earnings per share doubled from ¥0.06 to ¥0.12, indicating significant growth in profitability[16] - The company reported a total profit of CNY 568,916,429.17, up from CNY 314,548,299.86 in the same period last year, marking a growth of 81.1%[30] Assets and Liabilities - Total assets at the end of the reporting period were CNY 20,008,226,379.45, a decrease of 1.13% compared to the end of the previous year[5] - Total assets decreased to CNY 20,008,226,379.45 from CNY 20,237,123,481.23, a decline of approximately 1.13%[25] - Current liabilities increased to CNY 3,928,540,247.20 from CNY 3,100,277,135.15, an increase of about 26.67%[24] - Non-current liabilities decreased significantly from CNY 3,672,663,455.77 to CNY 2,019,550,623.70, a reduction of approximately 45.03%[24] - Total equity rose to CNY 14,060,135,508.55 from CNY 13,464,182,890.31, an increase of about 4.43%[25] Cash Flow - Net cash flow from operating activities decreased by 28.59% to CNY 276,347,441.01[5] - Operating cash inflow for the current period reached ¥1,966,396,905.20, a 38.5% increase from ¥1,419,467,833.21 in the previous period[36] - Cash inflow from investment activities totaled ¥583,059,674.18, a decline of 43.2% compared to ¥1,025,277,417.92 in the previous period[37] - Net cash flow from investment activities was -¥646,018,446.49, improving from -¥1,103,562,683.61 in the previous period[37] - Cash outflow for operating activities was ¥1,690,049,464.19, compared to ¥1,032,500,786.86 in the previous period, indicating a significant increase[36] Shareholder Information - The total number of shareholders at the end of the reporting period was 51,358[10] - The top two shareholders, Chongqing Derun Environment Co., Ltd. and Chongqing Water Assets Management Co., Ltd., hold 50.04% and 38.52% of shares, respectively[10] Investments and Subsidiaries - The company established a wholly-owned subsidiary, Chongqing Yushui Environmental Technology Co., Ltd., with a registered capital of ¥10 million to expand into the sludge treatment market[19] - Investment income from joint ventures and associates was CNY 9,510,083.02, compared to CNY 4,878,963.85 in the previous year, reflecting a significant increase[30] Other Financial Metrics - The weighted average return on equity increased by 1.87 percentage points to 4.08%[5] - The company received government subsidies amounting to CNY 3,239,557.46 related to its normal business operations[6] - Financial expenses decreased by 50.4% from ¥42,718,033.60 to ¥21,189,524.84, reflecting improved cost management[16] - Other comprehensive income after tax was CNY 1,007,030.18, recovering from a loss of CNY 2,265,817.93 in the previous year[30]

Financial Performance - The company's operating revenue for 2016 was approximately CNY 4.45 billion, a decrease of 0.77% compared to 2015[21]. - The net profit attributable to shareholders for 2016 was approximately CNY 1.07 billion, representing a decline of 31.16% year-over-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 883.91 million, down 33.07% from the previous year[21]. - Basic earnings per share decreased by 31.25% to CNY 0.22 compared to CNY 0.32 in the previous year[22]. - The weighted average return on equity fell by 3.62 percentage points to 8.03% from 11.65% in the previous year[22]. - Operating revenue for the fourth quarter was CNY 962.95 million, while the net profit attributable to shareholders was a loss of CNY 189.71 million[24]. - The company achieved operating revenue of 4.45 billion RMB, a decrease of 0.77% year-on-year, primarily due to a VAT provision of 509.67 million RMB for sewage treatment services[44]. - Net profit was 1.068 billion RMB, down 31.16% year-on-year, largely impacted by a profit reduction of 570.83 million RMB from the same VAT provision[44]. Cash Flow and Assets - The net cash flow from operating activities for 2016 was approximately CNY 2.13 billion, an increase of 3.74% compared to 2015[21]. - Total assets at the end of 2016 amounted to approximately CNY 20.24 billion, reflecting a growth of 3.32% from the previous year[21]. - The net assets attributable to shareholders at the end of 2016 were approximately CNY 13.41 billion, a decrease of 1.34% compared to the end of 2015[21]. - The company's asset-liability ratio at the end of 2016 was 33.47%, an increase of 2.92 percentage points from the end of 2015[44]. - Cash flow from operating activities was approximately 2.13 billion, a 3.74% increase from the previous year[62]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.80 per 10 shares, totaling CNY 1.34 billion to shareholders[3]. - The company distributed cash dividends of CNY 1,344,000,000.00 in 2016, representing 125.83% of the net profit attributable to ordinary shareholders[109]. - In 2015, the cash dividends amounted to CNY 1,248,000,000.00, which was 80.43% of the net profit attributable to ordinary shareholders[109]. - The company has committed to distributing no less than 60% of the distributable profits as cash dividends from 2009 to 2015[108]. Operational Capacity and Projects - As of December 31, 2016, the company operates 34 water production systems with a capacity of 218.60 million cubic meters per day and 51 sewage treatment plants with a capacity of 228.39 million cubic meters per day[39]. - The company expanded its daily water supply capacity by 200,000 m³ and sewage treatment capacity by 110,600 m³ in 2016, maintaining its market advantage in Chongqing[44]. - The company has acquired new projects, including the Chongqing Dazhu Longshui sewage treatment project and the Chengdu Qingbai River project, both of which have local government franchise rights[39]. - The company will build 84 new or expanded urban sewage treatment plants, adding a design treatment capacity of 2.098 million m³/day[95]. Market and Industry Outlook - The water industry is experiencing significant growth opportunities due to national strategies for ecological civilization and water pollution prevention[36]. - The company plans to expand its market presence in the water industry, which is expected to grow significantly due to favorable policies and increasing environmental regulations, with a projected investment increase compared to the previous five-year plan[93]. - By 2020, the urban and county sewage treatment rates are expected to reach approximately 95% and 85%, respectively, with significant infrastructure improvements planned[94]. Risks and Compliance - The company has outlined potential risks in its future development in the management discussion and analysis section[6]. - The company faces risks related to raw material supply, energy prices, and regulatory changes affecting water pricing and treatment standards[100][101][102]. - The company is committed to ensuring compliance with environmental regulations and maintaining water quality standards[102][104]. Governance and Management - The company has established a governance structure in compliance with the Company Law and Securities Law, ensuring orderly operations and information disclosure[183]. - The company has implemented a performance evaluation mechanism for senior management, based on the annual target responsibility system[191]. - The company has a total of 2,421 production personnel, 599 sales personnel, 794 technical personnel, 239 financial personnel, and 1,135 administrative personnel[177]. Research and Development - R&D expenditure significantly decreased by 95.31% to 274,843 RMB, indicating a need for increased investment in innovation[49]. - Research and development investments are set to increase by 30%, focusing on innovative water treatment solutions[171]. Related Party Transactions - The company reported a total of 29,152.98 million yuan in actual related party transactions during the reporting period, which is an increase of 11,049.08 million yuan compared to the expected amount[120]. - The company has not reported any significant changes in major related transactions during the reporting period[126]. Environmental and Social Responsibility - The company actively participated in environmental awareness campaigns such as "World Water Day" and "World Environment Day"[148]. - The company donated 750,000 RMB to poverty alleviation efforts in impoverished counties in Chongqing[148].

Financial Performance - Operating revenue for the first nine months rose by 12.90% to CNY 3,490,711,997.67 year-on-year[7] - Net profit attributable to shareholders decreased by 7.19% to CNY 1,257,805,756.76 compared to the same period last year[7] - Basic earnings per share decreased by 7.14% to CNY 0.26[8] - Total operating revenue for Q3 2016 was CNY 1,336,591,440.26, an increase of 20.2% compared to CNY 1,112,252,761.47 in Q3 2015[30] - Net profit for the first nine months of 2016 reached CNY 1,259,165,636.64, a decrease of 7.1% from CNY 1,355,276,033.89 in the same period last year[32] - Operating profit for the first nine months of 2016 was CNY 1,160,308,320.47, down from CNY 1,267,671,558.13 in the same period last year[32] - The company's operating profit for the first nine months of 2016 was ¥1,014,426,344.17, down from ¥1,172,875,237.07 in the same period last year, a decrease of approximately 13.5%[36] - The total comprehensive income for the first nine months of 2016 was ¥1,089,452,907.32, compared to ¥1,238,725,530.68 in the same period last year, reflecting a decrease of approximately 12%[37] Assets and Liabilities - Total assets increased by 2.26% to CNY 20,030,060,748.84 compared to the end of the previous year[7] - The total liabilities increased to CNY 6,376,788,334.66 from CNY 5,983,594,026.10, representing a rise of approximately 6.59%[25] - The company's current assets totaled CNY 8,959,621,649.66, compared to CNY 8,724,016,024.05 at the start of the year, indicating an increase of about 2.69%[23] - The company's non-current assets totaled CNY 11,070,439,099.18, up from CNY 10,863,614,361.92, reflecting an increase of approximately 1.91%[24] - The company's total equity decreased to CNY 12,403,388,249.40 from CNY 12,561,935,342.08 year-over-year[28] Cash Flow - Net cash flow from operating activities decreased by 12.62% to CNY 1,630,854,912.63 year-on-year[7] - Operating cash inflow for the first nine months reached ¥4,552,187,506.35, an increase from ¥4,321,931,296.39 in the previous year, reflecting a growth of approximately 5.34%[40] - Cash inflow from investment activities totaled ¥5,509,922,907.25, compared to ¥6,300,827,362.19 in the previous year, representing a decline of approximately 12.56%[41] - The ending cash and cash equivalents balance was ¥5,227,169,696.88, a decrease from ¥5,939,163,471.80, reflecting a decline of approximately 12.00%[41] - The net increase in cash and cash equivalents for the period was -¥278,211,695.28, contrasting with an increase of ¥1,861,191,194.92 in the previous year, indicating a negative shift in liquidity[41] Shareholder Information - The total number of shareholders reached 49,280 by the end of the reporting period[10] - The largest shareholder, Chongqing Derun Environment Co., Ltd., holds 50.04% of the shares[10] - The second-largest shareholder, Chongqing Water Asset Management Co., Ltd., holds 38.52% of the shares[10] Investments and Acquisitions - The company acquired 80% of Chengdu Huikai Water Treatment Co., Ltd. for ¥31,200,000, enhancing its investment in wastewater treatment projects[16] - The first phase of the wastewater treatment project has a designed capacity of 49,500 tons per day and is currently in trial operation[16] - The company has completed the payment for the equity transfer, and the registration of the equity change has been finalized[17] Government Subsidies - The company received government subsidies amounting to CNY 11,203,234.36 during the first nine months[9] Financial Ratios - The weighted average return on net assets decreased by 1.02 percentage points to 9.20%[8] - Financial expenses surged by ¥83,740,773.33, reflecting a 141.94% increase compared to ¥58,996,862.54 from the previous year[14] - Investment income decreased by ¥74,379,722.76, a 35.40% decline from ¥210,094,669.92 in the previous year[14] Compliance and Commitments - The company will not engage in any business that competes with Chongqing Water Affairs and its subsidiaries[19] - The company will ensure that its subsidiaries comply with the commitments outlined in the document[20] - The company commits to avoiding any related party transactions that could harm the interests of Chongqing Water Affairs and its minority shareholders[20]