Financial Performance - The company's operating revenue for the first half of 2021 was CNY 3,178,455,104.60, representing a 22.49% increase compared to the same period last year[15]. - Net profit attributable to shareholders of the listed company reached CNY 1,054,547,816.95, a 35.66% increase year-on-year[16]. - The net profit after deducting non-recurring gains and losses was CNY 773,546,132.90, reflecting a 7.98% increase compared to the previous year[16]. - Basic earnings per share increased by 37.50% to CNY 0.22 compared to the same period last year[17]. - Diluted earnings per share also rose by 37.50% to CNY 0.22 year-on-year[17]. - Revenue growth was primarily driven by increased water supply and adjustments in sewage treatment pricing[18]. - The weighted average return on equity increased by 1.70 percentage points to 6.72% compared to the previous year[17]. - Revenue from tap water supply was 80,727.14 million RMB, reflecting a year-on-year increase of 16.43%, with a gross margin of 29.36%, up by 4.66 percentage points[24]. - Revenue from sewage treatment was 183,556.66 million RMB, showing a year-on-year growth of 25.21%, with a gross margin of 48.86%, an increase of 1.86 percentage points[24]. Assets and Liabilities - Total assets increased by 11.50% to CNY 27,354,733,749.81 compared to the end of the previous year[16]. - The net assets attributable to shareholders of the listed company slightly decreased by 0.09% to CNY 15,509,179,695.20[16]. - The company's debt-to-asset ratio was 43.05%, up 6.60 percentage points from the end of the previous year, mainly due to the issuance of CNY 1 billion bonds and new bank loans of CNY 881 million[33]. - Total liabilities reached CNY 11,776,132,108.72, a rise from CNY 8,943,330,129.40, reflecting a growth of approximately 31.5%[115]. - Current liabilities amounted to CNY 5,501,333,298.14, compared to CNY 4,158,881,253.61, marking an increase of around 32.3%[115]. Cash Flow - The net cash flow from operating activities was CNY 833,391,769.05, showing a decrease of 14.54% from the previous year[16]. - Cash and cash equivalents increased by 15.49% to CNY 3,243,239,166.01 from CNY 2,808,188,993.10[36]. - The total cash inflow from operating activities was ¥3,651,449,170.42, compared to ¥3,453,464,079.64 in the same period of 2020, representing an increase of 5.7%[127]. - The net cash flow from operating activities for the first half of 2021 was ¥1,049,668,603.44, a decrease of 20.1% compared to ¥1,313,776,636.34 in the same period of 2020[129]. Operational Capacity - The company operates 29 water treatment plants with a production capacity of 2.7375 million cubic meters per day and 108 wastewater treatment plants with a daily processing capacity of 4.2408 million cubic meters[31]. - Water supply capacity increased by 29.30 thousand m³/day, reaching a total of 273.75 thousand m³/day, while sewage treatment capacity rose by 67.13 thousand m³/day to 424.08 thousand m³/day[23]. - The company has been granted water supply and sewage treatment concessions in Chongqing with a duration of 30 years[22]. Market Position - The company holds approximately 56% of the tap water market and 83% of the sewage treatment market in Chongqing, with a combined market share of about 88% for tap water and 93% for sewage treatment in the main urban area[23]. - The company plans to expand its market share in Chongqing and actively explore external markets for water supply, sludge disposal, and water environment governance[23]. Strategic Initiatives - The company is focusing on sustainable development and environmental protection as part of its strategic initiatives[22]. - The integration of new technologies such as IoT, big data, and cloud computing is driving the development of smart water services in the industry[23]. - The company aims to enhance operational management levels and ensure compliance with wastewater discharge standards amid increasing environmental regulations[23]. Risks and Challenges - The company faces risks related to the supply of raw materials, particularly due to uneven rainfall and extreme weather conditions affecting water purification costs[45]. - The company is at risk of not being able to adjust water prices in a timely manner, which could impact profitability amid rising supply costs[45]. - The company is exposed to tax risks due to changes in tax policies, which may increase its tax burden if it fails to meet the conditions for VAT refunds[46]. - The company is at risk of increased operational costs due to stricter environmental protection laws and regulations, which may lead to higher compliance costs[46]. Corporate Governance - The company has undergone changes in its board of directors and management, with several new appointments and elections taking place in 2021[50]. - The company reported no profit distribution or capital reserve fund increase plan for the half-year period[53]. - There are no significant lawsuits or arbitration matters reported during the reporting period[74]. Subsidiaries and Joint Ventures - The company has established several new subsidiaries, including a joint venture for environmental management with a capital contribution of CNY 49 million[39]. - The company has a total of 31 wholly-owned and controlling subsidiaries[147]. - The company has a total of 8 joint ventures, including Chongqing Dongyu Water Supply Co., Ltd.[147]. Environmental Compliance - The company maintains a 100% compliance rate for the water quality of its 14 centralized drinking water sources as reported by the Chongqing Ecological Environment Monitoring Center in 2021[30]. - The company has established a three-tier water quality monitoring system to ensure compliance with water quality standards[60]. - The company is committed to environmental responsibility and has developed emergency response plans for environmental incidents[59].

Financial Performance - Net profit attributable to shareholders rose by 117.70% to CNY 568,591,597.64 year-on-year[4] - Operating revenue grew by 28.49% to CNY 1,459,166,739.08 compared to the same period last year[4] - Basic earnings per share increased by 140.00% to CNY 0.12[5] - The company reported a significant increase in income tax expenses, rising by 447.73% to ¥88,894,278.22, due to profits from wastewater treatment services[12] - The company reported a net profit increase, with retained earnings rising to ¥4.38 billion from ¥3.81 billion, reflecting a growth of approximately 15.0%[19] - Net profit for Q1 2021 reached ¥568,960,595.13, compared to ¥261,553,258.00 in Q1 2020, representing a growth of 117.5%[25] - The total comprehensive income for Q1 2021 was approximately ¥285.30 million, significantly higher than ¥88.52 million in Q1 2020[29] Assets and Liabilities - Total assets increased by 10.83% to CNY 27,191,880,733.72 compared to the end of the previous year[4] - Total liabilities increased to ¥11.06 billion from ¥8.94 billion, showing a growth of about 23.7%[19] - Current liabilities totaled ¥6.05 billion, up from ¥4.16 billion, indicating an increase of approximately 45.4%[18] - The company's equity attributable to shareholders increased to ¥16.06 billion from ¥15.52 billion, a growth of approximately 3.5%[19] - Total assets reached ¥21,368,918,702.30 in Q1 2021 from ¥19,951,449,526.37 in Q1 2020, marking an increase of 7.1%[22] - Total liabilities rose to ¥8,256,733,169.50 in Q1 2021, compared to ¥7,124,560,844.41 in Q1 2020, indicating a growth of 15.9%[22] Cash Flow - Net cash flow from operating activities decreased by 5.11% to CNY 398,015,702.87 compared to the previous year[4] - Total cash inflow from operating activities amounted to CNY 1,865,179,718.19, up from CNY 1,632,881,475.59, reflecting a growth of 14.2%[31] - Cash outflow for purchasing goods and services increased to CNY 649,232,210.24 from CNY 469,940,954.56, representing a rise of 38.2%[31] - The net cash flow from investing activities was -CNY 1,170,774,785.85, compared to -CNY 49,489,062.28 in the previous year, indicating a significant increase in cash outflow[32] - Cash inflow from financing activities totaled CNY 1,076,535,566.31, down from CNY 2,067,300,000.00, a decline of 47.9%[32] Operational Highlights - The company signed a new service agreement for wastewater treatment in Chongqing, enhancing its operational scope[14] - The company is involved in a PPP project in Anning, with a total investment of approximately ¥709.55 million, expected to last 15 years[14] - The company has implemented new leasing standards, resulting in the recognition of lease liabilities of ¥2,026,130.73[10] Receivables and Payables - Accounts receivable decreased by 37.38% to CNY 689,109,422.22 compared to the end of the previous year[9] - Accounts payable increased to ¥2,421,665,959.07, up 57.34% from the previous year[10] - Prepayments decreased significantly by 81.80% to ¥1,008,148.95, primarily due to the recognition of rental income[10] - Employee compensation payable decreased by 32.21% to ¥185,671,408.92, reflecting payments made for the previous year's salaries[10] Investment and Expenses - Investment income increased by 44.73% to ¥39,569,534.06, driven by better performance from joint ventures[11] - Research and development expenses for Q1 2021 were ¥322,337.29, up from ¥64,853.27 in Q1 2020, reflecting a substantial increase in investment in innovation[25] - Financial expenses improved significantly, with interest expenses rising by 165.40% to ¥26,333,970.67[11]

Financial Performance - The company's operating revenue for 2020 was approximately RMB 6.35 billion, representing a year-on-year increase of 12.61% compared to RMB 5.64 billion in 2019[15]. - The net profit attributable to shareholders of the listed company for 2020 was approximately RMB 1.77 billion, an increase of 6.66% from RMB 1.66 billion in 2019[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 1.67 billion, reflecting an 8.59% increase from RMB 1.54 billion in 2019[15]. - Basic earnings per share for 2020 was CNY 0.37, an increase of 5.71% compared to CNY 0.35 in 2019[16]. - Diluted earnings per share for 2020 was also CNY 0.37, reflecting the same growth of 5.71% from 2019[16]. - The net profit attributable to shareholders for Q4 2020 was CNY 267,703,085.40, with a total annual net profit of CNY 1,769,000,000.00[20]. - The weighted average return on equity for 2020 was 11.57%, an increase of 0.39 percentage points from 2019[17]. - The total operating revenue for 2020 reached ¥6,349,599,844.62, an increase of 12.6% compared to ¥5,638,549,427.06 in 2019[191]. - Net profit for 2020 was ¥1,776,714,927.77, compared to ¥1,663,849,583.23 in 2019, representing an increase of 6.8%[192]. Cash Flow and Assets - The net cash flow from operating activities for 2020 was approximately RMB 2.30 billion, showing a slight increase of 2.74% compared to RMB 2.24 billion in 2019[15]. - The total assets of the company at the end of 2020 were approximately RMB 24.53 billion, which is an increase of 11.39% from RMB 22.03 billion at the end of 2019[15]. - Cash and cash equivalents increased to CNY 2,808.19 million in 2020 from CNY 2,242.48 million in 2019, indicating improved liquidity[185]. - The total cash and cash equivalents at the end of 2020 reached ¥2,770,324,764.59, compared to ¥2,209,440,885.97 at the end of 2019, indicating a growth of 25.4%[200]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 2.55 per 10 shares, totaling RMB 1.22 billion to shareholders, with no bonus shares or capital reserve conversion planned for this year[4]. - In 2020, the company distributed cash dividends of 2.55 RMB per 10 shares, totaling 1,224,000,000 RMB, which accounted for 69.01% of the net profit attributable to ordinary shareholders[73]. - The company has a cash dividend policy to distribute no less than 60% of the distributable profits, ensuring protection of minority shareholders' rights[72]. Market and Operational Expansion - The company aims to expand its market presence beyond Chongqing to provinces such as Sichuan, Yunnan, Hubei, and Henan[27]. - The company has expanded its sewage treatment projects in regions including Sichuan and Hubei, enhancing its market presence[25]. - The company successfully expanded its market by winning several PPP projects, including the Kunming Wuhua Water Environment Comprehensive Governance Project[30]. - The company aims to exceed 40 billion yuan in total assets and achieve a water supply and drainage capacity of over 8 million tons per day by the end of 2025[68]. Environmental and Social Responsibility - The company reduced COD emissions by nearly 260,000 tons and ammonia nitrogen emissions by 25,000 tons during the year[32]. - The company donated a total of 630,000 RMB to local charities as part of its social responsibility initiatives[32]. - The company provided a water price discount of 25.88 million RMB and waived late fees exceeding 1.25 million RMB to support small and medium-sized enterprises during the pandemic[110]. Risks and Compliance - The company has detailed potential risks in its report, which investors should consider[6]. - The company is committed to complying with environmental regulations to mitigate risks associated with increased operational costs due to stricter enforcement[70]. - The company has ongoing significant litigation involving a construction contract dispute with a claim amount of RMB 59.39 million[84]. Research and Development - The total R&D investment amounted to ¥4,760,972.62, representing 0.07% of total revenue, with 93 R&D personnel, accounting for 1.55% of the total workforce[44]. - Research and development expenses were 4.72 million RMB, a decrease of 3.56% compared to the previous year[34]. - The company is focusing on digital transformation and smart water management through big data and cloud computing technologies[29]. Corporate Governance - The company has a total of 10 board members, ensuring a broad range of expertise and perspectives[135]. - The board of directors consists of 7 members, including 3 independent directors, with 9 meetings held during the reporting period[155]. - The company has maintained a consistent shareholding structure with no changes in shareholdings during the reporting period[135].

Financial Performance - Net profit attributable to shareholders increased by 4.44% to CNY 1,506,027,076.43 for the year-to-date period[4] - Operating revenue for the year-to-date period rose by 8.34% to CNY 4,434,217,485.14 compared to the same period last year[4] - Basic earnings per share increased by 3.33% to CNY 0.31 compared to the same period last year[5] - Total operating revenue for Q3 2020 reached ¥1,839,410,738.81, an increase of 19.87% compared to ¥1,534,967,376.41 in Q3 2019[25] - Net profit for Q3 2020 was ¥716,068,939.47, up 19.59% from ¥599,313,466.55 in Q3 2019[26] - Operating profit for Q3 2020 was ¥920,018,673.70, representing a 46.19% increase from ¥629,048,914.88 in Q3 2019[26] - Total comprehensive income for Q3 2020 was ¥748,129,768.80, an increase from ¥636,377,898.79 in Q3 2019[28] - Net profit for Q3 2020 was ¥525,754,949.14, compared to ¥408,512,945.54 in Q3 2019, reflecting a 28.7% increase[30] Assets and Liabilities - Total assets increased by 9.86% to CNY 23,852,723,050.18 compared to the end of the previous year[4] - The company's total assets amounted to 23.85 billion yuan, an increase from 21.71 billion yuan at the end of 2019, representing a growth of approximately 9.85%[19] - Total liabilities increased to ¥8,553,991,363.40, up from ¥6,541,702,339.70, representing a growth of approximately 30.7% year-over-year[20] - Total current liabilities decreased to approximately 3.91 billion yuan from 4.03 billion yuan, a reduction of about 2.77%[19] - The company's total current liabilities amounted to CNY 6,541,702,339.70, with current liabilities at CNY 4,025,952,019.07[37] Cash Flow - Net cash flow from operating activities increased by 3.69% to CNY 1,754,683,621.89 for the year-to-date period[4] - Cash flow from operating activities for the first three quarters of 2020 was ¥1,754,683,621.89, up from ¥1,692,233,222.55 in the same period of 2019[31] - The net cash flow from operating activities for Q3 2020 was ¥2,532,370,069.31, compared to ¥1,300,271,335.50 in Q3 2019, representing a significant increase[34] - Total cash inflow from financing activities in Q3 2020 was ¥2,037,338,584.25, significantly higher than ¥479,183,855.06 in Q3 2019[34] Shareholder Information - The total number of shareholders reached 41,485 by the end of the reporting period[6] - The largest shareholder, Chongqing Derun Environment Co., Ltd., holds 50.04% of the shares[6] - Total equity attributable to shareholders increased to ¥15,260,152,960.61 from ¥15,147,071,938.64, reflecting a growth of approximately 0.7%[20] Expenses and Income - The company's financial expenses rose by 49.02% to ¥32,939,331.47, driven by increased interest expenses of 231.24% to ¥60,292,539.50[12] - Income tax expenses surged by 158.22% to ¥265,404,659.57, largely due to new sewage treatment revenue[12] - The company reported a total of CNY 22,166,659.98 in non-operating income for the current period[5] Investments and Acquisitions - The company completed the acquisition of a 20% stake in Zhongzhou Water Holdings, impacting non-current assets[10] - The company won a bid for the Kunming Wuhua District Water Environment Comprehensive Treatment PPP project, with a total construction cost estimated at 489.02 million yuan and a construction period of 2 years[14] Other Financial Metrics - The weighted average return on equity decreased by 0.02 percentage points to 9.86%[4] - The company reported a significant increase in minority shareholder profit by 887.08% to ¥2,808,379.83, reflecting improved performance of its subsidiaries[12] - The company reported a decrease in other comprehensive income to ¥492,477,727.35 from ¥651,823,781.81, a decline of about 24.4%[20]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately CNY 2.59 billion, representing a 1.44% increase compared to CNY 2.56 billion in the same period last year[19]. - The net profit attributable to shareholders decreased by 6.06% to approximately CNY 791.94 million, down from CNY 843.01 million in the previous year[19]. - The net cash flow from operating activities was approximately CNY 976.28 million, a decrease of 3.74% compared to CNY 1.01 billion in the same period last year[19]. - Basic earnings per share decreased by 11.11% to CNY 0.16, compared to CNY 0.18 in the same period last year[20]. - The weighted average return on net assets decreased to 5.20%, down from 5.78% in the previous year, a reduction of 0.58 percentage points[20]. - The company reported a net profit margin of approximately 26.8% for the first half of 2020, compared to 28.3% in the same period of 2019[134]. - The total profit for the first half of 2020 was CNY 846,871,180.05, compared to CNY 902,548,041.90 in the first half of 2019, reflecting a decline of 6.2%[135]. - The company's investment income for the first half of 2020 was CNY 106,993,639.29, an increase from CNY 100,601,653.57 in the same period of 2019[137]. - The total comprehensive income for the first half of 2020 was CNY 601,359,633.00, down from CNY 856,719,208.60 in the first half of 2019[136]. Assets and Liabilities - The total assets increased by 4.17% to approximately CNY 22.62 billion, compared to CNY 21.71 billion at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 4.18% to approximately CNY 14.51 billion, down from CNY 15.15 billion at the end of the previous year[19]. - The company's total assets as of June 30, 2020, were CNY 18,626,449,522.79, up from CNY 17,183,081,790.21 at the end of 2019, indicating a growth of approximately 8.4%[132]. - Total liabilities increased to CNY 6,545,302,823.95 as of June 30, 2020, compared to CNY 4,303,451,951.48 at the end of 2019, marking an increase of about 51.9%[132]. - The company's total liabilities were reported at 22,350,549,000 RMB, indicating a rise from 21,000,000,000 RMB, which is an increase of about 6.43%[153]. Cash Flow - The net cash flow from operating activities for the first half of 2020 was 1,313,776,636.34 RMB, a significant increase compared to 355,940,294.09 RMB in the same period of 2019, reflecting a growth of approximately 269%[143]. - The total cash inflow from investment activities was 1,562,745,378.12 RMB, compared to 824,037,685.44 RMB in the previous year, indicating a year-over-year increase of about 90%[143]. - The net cash flow from financing activities was 309,886,135.10 RMB, a recovery from a negative cash flow of -1,351,135,865.34 RMB in the same period last year[144]. - The total cash and cash equivalents at the end of the period reached 2,380,340,702.24 RMB, up from 1,505,182,797.34 RMB at the end of the previous year, marking an increase of approximately 58%[144]. Investments and Acquisitions - The company has acquired a 20% stake in Zhongzhou Water Holdings, indicating strategic expansion in the water services sector[29]. - The company made equity investments totaling 15.095 million RMB in Chengdu Chiyuan Environmental Engineering Co., Ltd. and 26.844 million RMB in Chongqing Luoyu Environmental Technology Co., Ltd.[43]. - The company completed the acquisition of assets related to the Wuling Town-level sewage treatment plant and others for 45.3692 million yuan, with a total payment of 31.7584 million yuan made by the end of the reporting period[72]. - The company has committed to maintaining the independence of Chongqing Water Group's procurement, production, and sales systems post-acquisition[61]. Debt and Financing - The company issued a corporate bond of 2 billion RMB during the reporting period, resulting in a cash increase of 43.75% in monetary funds, totaling approximately 3.216 billion RMB[28]. - The company's debt-to-asset ratio increased to 35.67%, up 5.54 percentage points, primarily due to the issuance of 2 billion RMB in corporate bonds[37]. - The company has foreign currency borrowings amounting to JPY 8.60 billion, EUR 98.78 million, and USD 2.78 million, which are subject to exchange rate fluctuations impacting financial results[51]. - The company’s bond issuance has been successfully completed and listed on the Shanghai Stock Exchange[113]. Operational Capacity - The company has a water supply capacity of 2.658 million cubic meters per day and a wastewater treatment capacity of 3.4995 million cubic meters per day as of June 30, 2020[31]. - The company has a total of 40 water treatment plants and 81 wastewater treatment plants under its operation, indicating a strong infrastructure presence in the region[31]. - The company operates under a government procurement model for wastewater treatment, ensuring stable and reasonable profits through a pricing mechanism reviewed every three years[32]. Risks and Compliance - The company faces risks related to the inability to timely adjust water prices in response to rising supply costs, which could impact profitability[47]. - The company is exposed to risks from extreme weather and sudden water pollution events, which could increase raw water procurement and purification costs[47]. - The company is committed to ensuring compliance with environmental standards to mitigate risks associated with potential penalties and increased operational costs[52]. Corporate Governance - The company held its 2019 annual general meeting on May 13, 2020, where 8 proposals were approved, including the 2019 board work report[57]. - The company confirmed that it has not engaged in any business activities that compete with its main operations as per the commitment made by its controlling shareholder[60]. - The company has appointed Tianzhi International Accounting Firm as the auditor for the 2020 financial report and internal control audit[64]. Research and Development - Research and development expenses decreased by 42.01% to 685 thousand RMB, attributed to reduced material costs for R&D projects[39]. - The company continues to strengthen its technological capabilities by collaborating with renowned universities and research institutions to drive R&D and application of relevant technologies[36]. - The company is focusing on digital transformation and innovation in water management, implementing "smart water" initiatives using big data and cloud computing[33].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section confirms the report's authenticity and audit status, emphasizing management's responsibility for its content [Report Authenticity and Audit Status](index=3&type=section&id=Item%201.1%20Report%20Authenticity%20and%20Audit%20Status) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities; the report was approved by all directors but remains unaudited - Company management guarantees the truthfulness, accuracy, and completeness of this report, free from false records, misleading statements, or major omissions[3](index=3&type=chunk) - This company's Q1 2020 report is unaudited[3](index=3&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) This section provides an overview of the company's key financial performance, shareholder structure, and preferred share status for the reporting period [Key Financial Data](index=3&type=section&id=Item%202.1%20Key%20Financial%20Data) In Q1 2020, the company's operating revenue reached **1.136 billion yuan**, growing by 2.74%, while net profit attributable to shareholders significantly decreased by 20.69% to **269 million yuan**, with non-recurring adjusted net profit down 23.45% and basic EPS at **0.06 yuan**, a 14.29% decline Key Financial Indicators for Q1 2020 | Indicator | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,135,621,880.52 | 1,105,310,883.77 | 2.74% | | Net Profit Attributable to Shareholders (Yuan) | 268,543,628.03 | 338,584,192.42 | -20.69% | | Non-recurring Net Profit Attributable to Shareholders (Yuan) | 237,830,023.32 | 310,667,825.97 | -23.45% | | Net Cash Flow from Operating Activities (Yuan) | 420,139,659.53 | 466,692,105.84 | -9.97% | | Basic Earnings Per Share (Yuan/share) | 0.06 | 0.07 | -14.29% | | Weighted Average Return on Net Assets (%) | 1.77% | 2.29% | Decrease of 0.52 percentage points | Non-recurring Gains and Losses for Q1 2020 | Item | Current Period Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -3,786,884.07 | | Government Subsidies Included in Current P&L | 13,787,133.39 | | Gains/Losses from Entrusted Investments or Asset Management | 4,030,000.00 | | Custody Fee Income from Entrusted Operations | 4,078,296.02 | | Other Non-operating Income and Expenses | 18,047,675.13 | | **Total** | **30,713,604.71** | [Shareholder Ownership](index=4&type=section&id=Item%202.2%20Shareholder%20Ownership) As of the end of the reporting period, the company had 42,959 shareholders, with the top two state-owned legal entities, Chongqing Derun Environment Co., Ltd. and Chongqing Water Assets Management Co., Ltd., holding a combined 88.56% and acting in concert - As of the end of the reporting period, the company had **42,959 shareholders**[7](index=7&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held | Percentage (%) | | :--- | :--- | :--- | | Chongqing Derun Environment Co., Ltd. | 2,401,800,000 | 50.04 | | Chongqing Water Assets Management Co., Ltd. | 1,849,160,689 | 38.52 | | China Securities Finance Co., Ltd. | 114,293,591 | 2.38 | | Central Huijin Asset Management Co., Ltd. | 26,953,900 | 0.56 | - The company's top two shareholders, Chongqing Derun Environment Co., Ltd. and Chongqing Water Assets Management Co., Ltd., are considered parties acting in concert under the "Measures for the Administration of the Takeover of Listed Companies"[8](index=8&type=chunk) [Preferred Shareholder Status](index=5&type=section&id=Item%202.3%20Preferred%20Shareholder%20Status) At the end of the reporting period, the company had no preferred shareholders - The company has no preferred shareholders[8](index=8&type=chunk) [Significant Events](index=5&type=section&id=Item%20III.%20Significant%20Events) This section details major changes in financial statement items and indicators, along with the progress of significant corporate actions during the reporting period [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=Item%203.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators%20and%20Their%20Causes) During the reporting period, several financial statement items underwent significant changes, including an 86.67% increase in monetary funds due to a **2 billion yuan** bond issuance, a 76.72% decrease in accounts receivable reclassified as contract assets under new revenue standards, a shift in financial expenses from negative to positive due to exchange losses, and a **1385.05%** decrease in other comprehensive income from fair value changes of other equity instruments Key Balance Sheet Items with Significant Changes | Statement Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Monetary Funds | 86.67% | Due to issuance of 2 billion yuan corporate bonds | | Accounts Receivable | -76.72% | Implementation of new revenue standards, partly reclassified to contract assets | | Other Receivables | -72.88% | Recovery of 400 million yuan principal from matured entrusted wealth management | | Other Non-current Assets | -61.92% | Completion of 20% equity acquisition of Zhongzhou Water, reclassified to long-term equity investment | | Short-term Borrowings | -100.00% | Repayment of one-year bank loans | | Bonds Payable | Not applicable | New issuance of 2 billion yuan corporate bonds | Key Income Statement Items with Significant Changes | Statement Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Financial Expenses | Not applicable | Exchange rate fluctuations led to exchange losses of **13.67 million yuan** on foreign currency borrowings, compared to exchange gains in the prior year | | Investment Income | -38.53% | Due to changes in operating performance of investees | | Non-operating Expenses | 160.97% | Net loss from disposal of fixed assets increased compared to the prior year | | Minority Interest Income/Loss | 654.87% | Net profit of controlled subsidiaries increased compared to the prior year | | Other Comprehensive Income | -1,385.05% | Due to changes in public quotes of other equity instruments in active markets | [Progress of Significant Events](index=7&type=section&id=Item%203.2%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) On March 10, 2020, the company successfully completed the issuance of its first tranche of **2 billion yuan** corporate bonds with a 5-year term and a 3.37% coupon rate, which began trading on the Shanghai Stock Exchange on March 18 - The company completed the issuance of "20 Yu Shui 01" corporate bonds, totaling **2 billion yuan** with a 5-year term and an annual interest rate of **3.37%**[13](index=13&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) This section provides the company's unaudited financial statements for the first quarter of 2020, along with explanations for adjustments made due to the first-time adoption of new accounting standards [Financial Statements](index=8&type=section&id=Item%204.1%20Financial%20Statements) This appendix includes the company's unaudited Q1 2020 consolidated and parent company balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, total assets were **23.24 billion yuan**, a 7.03% increase from year-end, with net assets attributable to shareholders at **15.275 billion yuan**, up 0.84%, and total liabilities at **7.94 billion yuan**, primarily due to a new **2 billion yuan** in bonds payable Key Consolidated Balance Sheet Items (Unit: Billion Yuan) | Item | March 31, 2020 | December 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 23.24 | 21.713 | +7.03% | | Total Liabilities | 7.94 | 6.542 | +21.37% | | Equity Attributable to Parent Company Owners | 15.275 | 15.147 | +0.84% | [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) In Q1 2020, the company achieved total operating revenue of **1.136 billion yuan**, a 2.74% increase, while total operating costs rose by 10.17% to **916 million yuan**, mainly due to increased financial expenses, resulting in a net profit attributable to parent company shareholders of **269 million yuan**, a 20.69% decrease Key Consolidated Income Statement Items (Unit: Billion Yuan) | Item | Q1 2020 | Q1 2019 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1.136 | 1.105 | +2.74% | | Total Operating Costs | 0.916 | 0.831 | +10.17% | | Total Profit | 0.285 | 0.362 | -21.29% | | Net Profit Attributable to Parent Company Shareholders | 0.269 | 0.339 | -20.69% | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) During the reporting period, net cash flow from operating activities was **420 million yuan**, a 9.97% decrease, while investing activities resulted in a net outflow of **48 million yuan**, and financing activities generated a net inflow of **1.573 billion yuan** from bond issuance, leading to a significant increase in cash and cash equivalents to **4.149 billion yuan** at period-end Consolidated Cash Flow Statement Overview (Unit: Billion Yuan) | Item | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 0.42 | 0.467 | | Net Cash Flow from Investing Activities | -0.048 | 0.216 | | Net Cash Flow from Financing Activities | 1.573 | -0.006 | | Cash and Cash Equivalents at Period-End | 4.149 | 4.039 | [Explanation of First-Time Adoption Adjustments for New Accounting Standards](index=18&type=section&id=Item%204.2%20Adjustments%20to%20Opening%20Financial%20Statements%20Upon%20First-Time%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020) Effective January 1, 2020, the company adopted new revenue standards, adjusting opening financial statements by reclassifying **72.3791 million yuan** from "Accounts Receivable" to "Contract Assets" and **755.245 million yuan** from "Advances from Customers" to "Contract Liabilities," with no impact on total assets, total liabilities, or net assets - The company adjusted its financial statements as of January 1, 2020, due to the adoption of new revenue standards[32](index=32&type=chunk) Impact of New Revenue Standards on Opening Consolidated Balance Sheet | Item | Amount Before Adjustment (Yuan) | Adjustment Amount (Yuan) | Amount After Adjustment (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 968,998,838.67 | -72,379,053.49 | 896,619,785.18 | | Contract Assets | 0.00 | +72,379,053.49 | 72,379,053.49 | | Advances from Customers | 755,245,035.79 | -755,245,035.79 | 0.00 | | Contract Liabilities | 0.00 | +755,245,035.79 | 755,245,035.79 | [Audit Report](index=23&type=section&id=Item%204.4%20Audit%20Report) This quarterly report is unaudited - This quarterly financial report is unaudited[39](index=39&type=chunk)