Financial Performance - The company reported a total distributable profit of RMB 590,991,573.60 as of December 31, 2021[6]. - A cash dividend of RMB 0.66 per share (including tax) is proposed, amounting to a total of RMB 29,711,060.21 to be distributed to shareholders[6]. - The cash dividend payout ratio for the year is 20.29%[6]. - The company achieved operating revenue of CNY 889,578,798.24 in 2021, representing a year-on-year increase of 21.39%[24]. - Net profit attributable to shareholders reached CNY 146,458,509.74, up 12.62% compared to the previous year[24]. - The company's total assets increased to CNY 4,940,687,049.96, reflecting a growth of 9.62% year-on-year[25]. - The total profit reached 166.93 million RMB, reflecting an 8.40% growth compared to the previous year[49]. - The company reported a basic earnings per share of CNY 0.3254, which is a 12.60% increase from the previous year[26]. - The weighted average return on equity rose to 7.81%, an increase of 1.00 percentage points year-on-year[26]. - The net profit after deducting non-recurring gains and losses was CNY 140,165,383.45, up 9.80% from the previous year[24]. Operational Efficiency - The cash flow from operating activities was CNY 241,560,689.06, a decrease of 23.64% from the previous year[24]. - The company processed 39,741.25 million tons of wastewater, an increase of 16.31% year-on-year[32]. - The actual settlement volume of wastewater reached 40,786.89 million tons, growing by 9.79% compared to the previous year[32]. - The company operates 30 wastewater treatment facilities with a designed treatment capacity of 1,867,900 tons per day, of which 1,270,400 tons per day are currently operational[42]. - The company is focusing on enhancing operational efficiency and cost management to drive high-quality development[34]. - The company is actively pursuing strategic investments in wastewater and solid waste treatment sectors to capitalize on market opportunities[33]. Innovation and Development - The company was recognized as a high-tech enterprise and has obtained 2 invention patents and 33 utility model patents, showcasing its commitment to innovation[35]. - Research and development expenses increased by 22.89% to 21.24 million RMB, indicating a focus on innovation[50]. - The company is investing 50 million RMB in R&D for new technologies aimed at improving operational efficiency[113]. - The company is committed to original innovation and collaborative research, aiming to accelerate the transformation and application of research results in energy-saving and efficiency-enhancing technologies[89]. Environmental Compliance - The company operates under the GB18918-2002 pollution discharge standards, ensuring compliance with national regulations[147]. - The company has implemented pollution prevention facilities that comply with national and local environmental protection laws, achieving standard emissions without any administrative penalties[151]. - The company has been recognized as a "provincial-level water-saving unit" in 2021, contributing to the creation of a water-saving city in Fuzhou[157]. - The company has adopted low-energy and low-carbon wastewater treatment processes for new projects, focusing on eco-friendly design[158]. Strategic Planning and Governance - The company has established fair and transparent performance evaluation standards and procedures for directors, supervisors, and managers, continuously promoting performance evaluation and incentive mechanisms in line with business development strategies[102]. - The company strictly adheres to legal requirements for information disclosure, ensuring that all shareholders have equal access to company information and further standardizing insider information management to prevent insider trading[102]. - The company is focused on optimizing its asset structure and enhancing capital operations to improve overall efficiency and support its growth strategy[88]. - The company has a diverse management team with extensive experience in various sectors, including water management and environmental protection[109]. Market Expansion and Future Outlook - The company provided a future outlook, projecting a revenue growth of 10-12% for the next fiscal year[113]. - Market expansion plans include entering two new provinces, which are projected to increase market share by 5%[112]. - The company aims to achieve a sewage treatment capacity increase of 20 million tons per day by 2025, as part of the national plan to enhance urban sewage treatment infrastructure[84]. - The company is actively pursuing mergers and acquisitions to strengthen its position in the environmental services market and enhance its service offerings[88]. Risk Management - The company faces regulatory and policy risks due to its reliance on environmental protection policies, which may impact its operational speed and scale[92]. - The company is addressing the risk of delayed price adjustments in wastewater treatment services, which could affect profitability due to rising operational costs[93]. - The company is exploring diverse financing methods to address liquidity and debt repayment risks inherent in the capital-intensive wastewater treatment industry[96]. - The company will closely monitor national policy changes and carefully identify project risks to select high-quality, low-risk investment projects due to increased operational risks leading to lower-than-expected economic benefits[98].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 252,562,126.63, representing a year-on-year increase of 32.20%[5] - The net profit attributable to shareholders for the same period was CNY 39,805,661.09, reflecting a growth of 20.92% compared to the previous year[5] - The basic earnings per share for Q1 2022 was CNY 0.0884, which is an increase of 20.93% year-on-year[6] - The weighted average return on equity rose to 2.03%, an increase of 0.23 percentage points from the previous year[6] - The company reported a net profit margin improvement, with net profit for Q1 2022 expected to reflect the increase in revenue and controlled costs[18] - Net profit for Q1 2022 was CNY 38,384,494.09, up from CNY 31,135,759.55 in Q1 2021, representing a growth of about 23%[20] - Operating profit for Q1 2022 reached CNY 47,074,531.51, compared to CNY 39,604,365.18 in Q1 2021, indicating an increase of approximately 19%[19] Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 4,997,252,372.10, a slight increase of 1.14% from the end of the previous year[6] - Total current assets amounted to RMB 1,445,129,075.31, compared to RMB 1,361,948,615.31 at the end of 2021, indicating a growth of 6.1%[14] - Total liabilities as of March 31, 2022, were RMB 2,785,943,227.01, a slight increase from RMB 2,767,890,275.81 at the end of 2021[15] - Total equity attributable to shareholders reached RMB 1,977,085,078.44, up from RMB 1,937,151,540.50 at the end of 2021[16] - Non-current assets totaled RMB 3,552,123,296.79, down from RMB 3,578,738,434.65 at the end of 2021[14] - The total assets as of Q1 2022 amounted to CNY 3,514,490,718.80, compared to CNY 3,307,258,726.03 in Q1 2021, indicating a growth of 6.3%[27] - The total liabilities for Q1 2022 were CNY 1,660,613,371.06, an increase of 11.9% from CNY 1,484,684,720.03 in Q1 2021[27] Cash Flow - The net cash flow from operating activities decreased significantly by 62.38%, primarily due to lower cash receipts from sales compared to the previous year[8] - Cash flow from operating activities for Q1 2022 was CNY 44,540,402.21, significantly lower than CNY 118,402,371.35 in Q1 2021, a decline of approximately 62%[22] - Cash and cash equivalents at the end of Q1 2022 totaled CNY 302,437,160.31, down from CNY 348,461,496.59 at the end of Q1 2021, a decrease of about 13%[23] - The company incurred financial expenses of CNY 17,946,646.12 in Q1 2022, compared to CNY 14,846,664.73 in Q1 2021, marking an increase of approximately 21%[19] - The company reported a decrease in cash flow from investing activities, with a net outflow of CNY 126,548,972.42 in Q1 2022, compared to CNY 103,911,078.38 in Q1 2021[22] - The cash outflow from investment activities was CNY 38,159,121.35, significantly higher than CNY 1,714,727.24 in Q1 2021, indicating increased investment activity[31] - Net cash flow from financing activities was $35.6 million, compared to a net outflow of $28.4 million in the previous period[32] Shareholder Information - The total number of common shareholders at the end of the reporting period was 28,991[10] - Fuzhou Water Group Co., Ltd. held the largest share, owning 57.53% of the company[10] Research and Development - R&D expenses for Q1 2022 were CNY 5,495,031.17, compared to CNY 2,586,537.93 in Q1 2021, reflecting an increase of approximately 112%[19] - Research and development expenses increased to CNY 4,203,416.36, up 106.3% from CNY 2,031,610.67 in the same period last year[28] Operating Costs - Total operating costs for Q1 2022 were RMB 203,425,320.01, up 34.0% from RMB 151,911,236.98 in Q1 2021[18] - Operating costs included RMB 153,902,311.15 in operating expenses, which rose by 36.2% from RMB 112,975,506.67 in the previous year[18]

Financial Performance - The company's operating revenue for Q3 2021 was CNY 209,583,591.14, representing a year-on-year increase of 4.94%[5] - The net profit attributable to shareholders for the same period was CNY 33,147,898.96, reflecting a growth of 6.10% compared to the previous year[5] - The net profit after deducting non-recurring gains and losses was CNY 32,270,677.86, which is an increase of 8.48% year-on-year[5] - Total operating revenue for the first three quarters of 2021 reached RMB 613,107,097.70, compared to RMB 524,403,360.82 in the same period of 2020, representing an increase of approximately 16.9%[20] - Net profit for Q3 2021 was ¥94,836,930.50, slightly down from ¥96,019,869.06 in Q3 2020, indicating a decrease of about 1.2%[22] - The company reported a total profit of ¥119,470,940.15, up from ¥116,302,303.67, reflecting an increase of approximately 2.0% year-over-year[22] Earnings Per Share - The basic earnings per share for Q3 2021 was CNY 0.0737, an increase of 6.20% year-on-year[6] - The diluted earnings per share for the same period was CNY 0.0729, reflecting a growth of 3.99% compared to the previous year[6] - Basic earnings per share increased to ¥0.2258 from ¥0.2187, showing a growth of approximately 5.0%[23] Assets and Liabilities - The total assets at the end of the reporting period amounted to CNY 4,688,905,012.30, up 4.04% from the end of the previous year[6] - As of September 30, 2021, total assets amounted to RMB 4,688,905,012.30, up from RMB 4,507,013,052.87 at the end of 2020, indicating a growth of about 4.02%[18] - The total liabilities as of September 30, 2021, were RMB 2,560,546,641.63, compared to RMB 2,449,980,086.90 at the end of 2020, representing an increase of about 4.5%[18] - The company's equity attributable to shareholders increased to RMB 1,892,309,686.20 from RMB 1,815,674,556.55, reflecting a growth of approximately 4.2%[18] - The total liabilities of the company were CNY 2,449,980,086.90, with current liabilities totaling CNY 1,141,023,179.21[29] - The company's total equity reached CNY 2,057,032,965.97, with equity attributable to shareholders amounting to CNY 1,815,674,556.55[29] Cash Flow - The cash flow from operating activities for the year-to-date was CNY 188,979,074.15, showing a decline of 30.39%[6] - Cash flow from operating activities generated ¥188,979,074.15, down from ¥271,497,232.61, a decrease of about 30.4%[25] - The company incurred a net cash outflow from investing activities of ¥226,379,499.36, compared to a net outflow of ¥263,739,369.56 in the previous year[25] - The company’s financing activities resulted in a net cash outflow of ¥6,833,008.30, an improvement from a net outflow of ¥32,786,186.98 in the same period last year[25] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 30,702[11] - The largest shareholder, Fuzhou Water Investment Development Co., Ltd., held 258,970,588 shares, accounting for 57.53% of the total shares[12] Operating Costs and Expenses - Total operating costs increased to ¥492,050,023.20 from ¥415,263,718.40, representing a growth of approximately 18.4% year-over-year[21] - Research and development expenses rose to ¥14,260,060.89 from ¥10,397,052.96, marking an increase of about 37.5%[21] Current Assets and Inventory - Current assets totaled RMB 1,210,291,477.02 as of September 30, 2021, compared to RMB 1,087,963,828.70 at the end of 2020, reflecting an increase of approximately 11.2%[15] - The company's cash and cash equivalents decreased to RMB 308,271,557.32 from RMB 352,280,924.16, a decline of about 12.5%[15] - Accounts receivable rose to RMB 443,470,950.73 from RMB 392,097,976.90, marking an increase of approximately 13.1%[15] - The company reported a decrease in inventory from RMB 34,900,526.31 to RMB 29,250,081.31, a reduction of about 16.3%[15] Long-term Borrowings - Long-term borrowings increased to RMB 695,838,649.15 from RMB 657,242,239.72, an increase of approximately 5.9%[18] - The company’s long-term borrowings stood at CNY 657,242,239.72, while the total non-current liabilities were CNY 1,308,956,907.69[29] New Developments - The company has not disclosed any significant new product developments or market expansion strategies in the current report[14]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 403,523,506.56, representing a 24.28% increase compared to CNY 324,678,788.88 in the same period last year [20] - The net profit attributable to shareholders of the listed company was CNY 68,468,756.49, a slight increase of 1.91% from CNY 67,188,638.24 year-on-year [20] - The net profit after deducting non-recurring gains and losses was CNY 65,747,319.98, which is a decrease of 3.48% compared to CNY 68,119,200.52 in the previous year [20] - The total profit reached CNY 80.61 million, reflecting a year-on-year growth of 5.72% [37] - The company reported a net profit of 11,824.26 million RMB from Liyang Environmental Co., Ltd., with a registered capital of 4,750 million RMB [55] - The company reported a total of 17.97 million CNY in expected daily related transactions for 2021, with actual transactions amounting to 5.51 million CNY by the end of the reporting period [97] Cash Flow and Liquidity - The net cash flow from operating activities was CNY 145,867,385.17, down 46.41% from CNY 272,182,803.28 in the same period last year [20] - The company reported a significant decrease in cash flow from financing activities, down 312.54% to CNY -87,090,957.11 from CNY 40,976,454.59 in the previous year [45] - The ending balance of cash and cash equivalents was 110,336,176.12 RMB, down 33.3% from 165,500,202.03 RMB at the end of the previous period [158] - The cash and cash equivalents at the end of the first half of 2021 were ¥263.32 million, down from ¥419.21 million at the end of the first half of 2020, a decline of 37.2% [155] Assets and Liabilities - Total assets rose by 1.05% to CNY 4,554,558,444.91 year-on-year [21] - The company's total liabilities at the end of the reporting period amounted to 245,610.48 million RMB, reflecting a growth of 0.25% compared to the beginning of the period [133] - The asset-liability ratio was reported at 53.93%, a slight decrease of 0.43% from the previous year [122] - The total number of shares after the recent changes is 450,167,317 [108] Research and Development - Research and development expenses increased by 29.53% to CNY 7,849,891.40 from CNY 6,060,115.22 in the previous year [45] - Research and development expenses for the first half of 2021 were ¥7,849,891.40, compared to ¥6,060,115.22 in the same period of 2020, marking a 29.5% increase [147] Market and Industry Insights - The company operates in the wastewater treatment sector, which is characterized by stable demand and low sensitivity to economic cycles [26] - The industry is subject to significant regional monopolies due to government authorization and capital intensity, creating high entry barriers for new competitors [27] - The company is focused on developing new technologies and processes to meet market demands, driven by increasing regulatory requirements for wastewater quality [26] Environmental Compliance - The company has been listed as a key pollutant discharge unit in Fujian and Jiangsu provinces, indicating regulatory scrutiny and environmental responsibilities [69] - The company maintained compliance with environmental regulations, with no pollution incidents reported during the reporting period [72] - The company has developed emergency response plans for sudden environmental incidents, including risk assessments and regular training [74] Shareholder and Corporate Governance - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period [65] - The company has committed to ensuring that any unavoidable related transactions are conducted under fair and reasonable principles [94] - The company has established a compensation mechanism for investors in case of losses due to non-fulfillment of commitments [90] Future Outlook - The company plans to continue focusing on expanding its market presence and enhancing product development in the upcoming quarters [167] - Future guidance indicates a cautious optimism regarding revenue growth, with expectations of maintaining or improving current performance metrics [167]

股票代码：603817 股票简称：海峡环保 公告编号：2021-032 转债代码：113532 转债简称：海环转债 福建海峡环保集团股份有限公司 关于参加2021年度福建上市公司投资者网上集体接待日活动的公告 | --- | |--------------------------------------------------------------| | | | 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、 | | 误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承 | | 担个别及连带责任。 | 为进一步加强与投资者的互动交流，使广大投资者能更深入全面 地了解福建海峡环保集团股份有限公司（以下简称"本公司"）情况， 本公司将参加福建证监局与福建省上市公司协会、深圳市全景网络有 限公司举办的"2021年度福建上市公司投资者网上集体接待日活动"。 现将有关事项公告如下： 本次投资者网上集体接待日活动将通过深圳市全景网络有限公 司提供的网上平台采取网络远程的方式进行，投资者可以登录"全景 网投资者关系互动平台"（http://ir.p5w.net）参与本次投资者网 上集体接待日活动，网上互 ...

Financial Performance - Operating revenue for the period was CNY 191,045,948.19, representing a growth of 30.95% year-on-year[5] - Net profit attributable to shareholders of the listed company was CNY 32,917,717.14, a decrease of 3.18% compared to the same period last year[5] - Basic earnings per share were CNY 0.0731, a decline of 3.31% compared to the previous year[5] - The company’s diluted earnings per share were CNY 0.0729, a decrease of 2.54% from the previous year[5] - Net profit for Q1 2021 was CNY 39,595,061.64, slightly up from CNY 39,495,198.01 in Q1 2020, indicating a stable profit margin[25] - The company's operating profit for Q1 2021 was CNY 36,013,438.65, an increase from CNY 34,759,512.70 in Q1 2020, reflecting a growth of 3.6%[29] - The total comprehensive income for Q1 2021 was CNY 30,598,266.72, compared to CNY 29,752,439.06 in Q1 2020, indicating an increase of 2.8%[30] Cash Flow - The net cash flow from operating activities was CNY 118,402,371.35, down 53.52% from the previous year[5] - Net cash flow from operating activities decreased by 53.52% to ¥118,402,371.35 in Q1 2021 from ¥254,745,585.16 in Q1 2020, primarily due to reduced cash received from sales and services[13] - Cash inflow from operating activities in Q1 2021 was CNY 237,997,005.16, down from CNY 336,479,063.98 in Q1 2020, a decrease of 29.1%[32] - The company's net cash flow from operating activities for Q1 2021 was 14,718,728.07 RMB, a decrease of 93.24% compared to 217,249,985.07 RMB in Q1 2020[34] - The total cash outflow from operating activities was 122,194,341.57 RMB, compared to 112,985,482.35 RMB in Q1 2020, reflecting an increase of 8.00%[34] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 4,508,549,478.90, a slight increase of 0.03% compared to the end of the previous year[5] - The company's total assets as of March 31, 2021, were ¥4,508,549,478.90, slightly up from ¥4,507,013,052.87 as of December 31, 2020[17] - The company’s total liabilities decreased to ¥1,074,037,706.24 as of March 31, 2021, from ¥1,141,023,179.21 at the end of 2020, indicating improved financial stability[18] - Total liabilities decreased to CNY 1,373,009,982.64 in Q1 2021 from CNY 1,395,230,043.58 in Q4 2020, showing a reduction of 1.6%[23] - Total liabilities reached ¥2,449,980,086.90, with current liabilities at ¥1,141,023,179.21 and non-current liabilities at ¥1,308,956,907.69[39] Shareholder Information - The total number of shareholders at the end of the reporting period was 34,368[8] - The largest shareholder, Fuzhou Water Investment Development Co., Ltd., held 258,970,588 shares, accounting for 57.55% of the total shares[8] Research and Development - R&D expenses rose by 65.96% to ¥2,586,537.93 in Q1 2021 from ¥1,558,518.11 in Q1 2020, reflecting increased investment in research and development[12] - The company reported a research and development expense of CNY 2,586,537.93 in Q1 2021, which is an increase from CNY 1,558,518.11 in Q1 2020, indicating a focus on innovation[25] Government Subsidies - The company received government subsidies amounting to CNY 1,794,021.93, which are included in the current period's profit[7] Financial Stability - The company’s retained earnings increased to CNY 631,500,872.17 in Q1 2021 from CNY 598,583,155.03 in Q4 2020, reflecting a growth of 5.1%[23] - The total equity attributable to shareholders rose to CNY 1,848,594,077.98 in Q1 2021 from CNY 1,815,674,556.55 in Q4 2020, an increase of 1.8%[23] - Total equity amounted to $1,713,926,932.85, reflecting the company's financial strength[44] - Unallocated profits reached $496,835,531.33, indicating retained earnings available for future investments[44] - Surplus reserve was recorded at $65,353,484.74, contributing to the company's financial stability[44] Other Financial Metrics - The weighted average return on equity decreased by 0.17 percentage points to 1.80%[5] - The company reported a significant decrease in other income, down 62.10% to ¥2,006,303.51 in Q1 2021 from ¥5,294,373.83 in Q1 2020, due to reduced tax refund income[12] - The company reported a decrease in investment income, with a loss of CNY 712,259.81 in Q1 2021, compared to a loss of CNY 164,724.05 in Q1 2020[29]

Financial Performance - The company reported a total distributable profit of RMB 496,835,531.33 as of December 31, 2020, with a proposed cash dividend of RMB 0.58 per share, resulting in a total cash dividend distribution of RMB 26,100,314.60[5]. - The cash dividend payout ratio for the year was 20.07%, based on a total share capital of 450,005,424 shares[5]. - The company's operating revenue for 2020 was CNY 732.80 million, representing a 14.40% increase compared to CNY 640.55 million in 2019[24]. - The net profit attributable to shareholders for 2020 was CNY 130.04 million, a slight decrease of 0.08% from CNY 130.14 million in 2019[24]. - The basic earnings per share for 2020 was CNY 0.2890, a decrease of 0.07% compared to CNY 0.2892 in 2019[24]. - The total profit for the year was CNY 153.99 million, an increase of 3.58% year-on-year[54]. - The net cash flow from operating activities increased by 41.71% to CNY 316.33 million in 2020 from CNY 223.23 million in 2019[24]. - The total assets at the end of 2020 were CNY 4.51 billion, reflecting a 13.56% increase from CNY 3.97 billion at the end of 2019[24]. - The company's inventory rose by 1,858.81 million yuan to 3,490.05 million yuan, mainly due to increased stock of raw materials and finished products[43]. - The company's long-term equity investments increased by 3,940.28 million yuan to 12,109.28 million yuan, primarily due to investments in a joint venture[43]. Operational Capacity and Projects - The company operates 22 wastewater treatment plants with a designed treatment capacity of 1.7 million tons per day, and an actual treatment capacity of 1.165 million tons per day[31]. - The company has invested in a sludge disposal project with a processing capacity of 150 tons per day, utilizing aerobic fermentation technology[32]. - The company has a garbage leachate treatment project in Fuzhou with a processing capacity of 2,600 tons per day, employing advanced treatment technologies[31]. - The project in Jin'an District has a planned processing capacity of 1 million tons/year for construction waste, while the second phase aims for 500,000 tons/year[33]. - The hazardous waste disposal project is designed to handle 38,000 tons/year of industrial and medical hazardous waste[34]. - The company processed 34.17 million tons of wastewater, a year-on-year increase of 14.97%[49]. - The company has a daily production capacity of 4,428.9 million tons of reclaimed water, with a utilization volume of 11.608 billion tons[42]. - The company’s wastewater treatment capacity reached 42,676.09 million tons/year with a utilization rate of 80.52%[87]. Financial Management and Investments - The company is under continuous supervision by its sponsor, with the supervision period lasting until the raised funds from the convertible bonds are fully utilized[21]. - The company has ongoing capital expenditures totaling ¥1,141,299,200.00, with significant investments in various PPP projects, including ¥61,983,984.01 for the Fuzhou Floating Village Wastewater Treatment Plant Phase II[89]. - The company reported a 41.24% increase in income tax expenses, totaling 30.44 million yuan, primarily due to the profitability of the newly acquired Fujian Liyang Environmental Co., Ltd.[72]. - The company’s long-term equity investments increased by 48.23% to 121.09 million yuan, mainly due to investments in affiliated companies[81]. - The company’s financial expenses increased by 16.06% to 62.58 million yuan, mainly due to financing through loans and short-term financing notes[72]. Compliance and Governance - The company has received a standard unqualified audit opinion from the accounting firm Xinyong Zhonghe[4]. - The company’s board of directors and supervisory board have confirmed the authenticity and completeness of the annual report[7]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company has not reported any instances of more than half of the directors being unable to guarantee the authenticity of the annual report[7]. - The company has committed to ensuring that the prospectus for its initial public offering (IPO) does not contain false records, misleading statements, or significant omissions[128]. - The company guarantees to compensate investors for losses incurred due to any false records or misleading statements in the IPO prospectus, with compensation procedures starting within 3 working days of the regulatory authority's recognition[129]. Market and Industry Trends - The company aims to enhance its core competitiveness in environmental governance by expanding its business from traditional wastewater treatment to comprehensive water environment management[31]. - The water environment governance industry is characterized by stability in demand, with less sensitivity to economic cycles[38]. - The company’s wastewater treatment capacity is expected to expand in response to increasing regulatory requirements and population growth[39]. - The company is adapting to industry trends that favor integrated solutions over traditional project-based competition, enhancing its competitive edge[98]. - The company is actively investing in new technologies and expanding its market presence through strategic acquisitions and partnerships[92][97]. Risks and Challenges - The company has outlined potential risks in its future development strategies, which are detailed in the "Discussion and Analysis of Operating Conditions" section[8]. - The company faces risks related to delayed price adjustments for wastewater treatment services, which could lead to decreased profitability if operational costs rise without timely compensation[108]. - The company acknowledges the risk of declining capacity utilization rates due to new projects not reaching full operational capacity initially, which may impact overall profit margins[109]. - The company has a large accounts receivable balance, typically taking 2-3 months to collect, which may lead to cash flow challenges despite a low risk of bad debts[109]. Shareholder Commitments and Stock Management - The company has established a three-year dividend plan (2020-2022) to ensure the continuity and stability of its profit distribution policy[113]. - The company will not reduce its holdings of Haixia Environmental shares by more than 10% within 12 months after the lock-up period ends[120]. - The company will ensure that the price of any shares sold after the lock-up period will not be lower than the initial issue price, adjusted for any corporate actions[120]. - The company has committed to fair and reasonable pricing principles in related party transactions to protect the rights of non-related shareholders[136]. - The company will disclose any share repurchase plans and must comply with relevant laws and regulations[124]. Environmental Compliance - The company is committed to adhering to environmental regulations and standards set by local authorities[171]. - The company has maintained compliance with environmental regulations, with no pollution incidents reported during the reporting period[177]. - The company has implemented strict monitoring of pollutants, ensuring real-time data is available to environmental authorities[180]. - The report includes detailed pollutant discharge data for various treatment plants, highlighting compliance and areas for improvement[172].

Financial Performance - Net profit attributable to shareholders rose by 5.02% to CNY 98,431,911.09 for the reporting period[8] - Operating revenue for the first nine months increased by 12.81% to CNY 524,403,360.82 compared to the same period last year[7] - Basic earnings per share increased by 4.99% to CNY 0.2187[8] - Total operating revenue for Q3 2020 reached ¥199,724,571.94, an increase of 23.4% compared to ¥161,811,206.60 in Q3 2019[28] - Net profit attributable to shareholders for the first three quarters of 2020 was ¥577,588,616.80, compared to ¥505,252,536.99 in the same period of 2019, reflecting a growth of 14.3%[23] - The net profit for Q3 2020 was CNY 31,630,542.58, slightly up from CNY 31,075,701.15 in the same quarter last year, indicating a growth of 1.8%[30] - The total profit for Q3 2020 was CNY 40,046,722.96, up from CNY 38,951,015.97 in Q3 2019, representing a growth of 2.8%[30] - The net profit for the first three quarters of 2020 was CNY 74,967,258.95, an increase from CNY 71,276,753.70 in the same period of 2019, representing a growth of approximately 3.8%[41] Assets and Liabilities - Total assets increased by 8.62% to CNY 4,310,983,140.57 compared to the end of the previous year[7] - Total liabilities increased to ¥2,285,579,997.84 from ¥2,112,575,154.31 year-over-year, representing a rise of 8.2%[22] - Current liabilities totaled ¥937,134,380.07, compared to ¥898,122,149.65 in the previous year, indicating a growth of 4.5%[22] - Non-current liabilities amounted to ¥1,348,445,617.77, up from ¥1,214,453,004.66, marking an increase of 11.0%[22] - The company's cash and cash equivalents decreased to ¥91,626,928.00 from ¥109,974,384.98, a decline of 16.0%[24] - The total assets amounted to 3,968,985,573.78 RMB, with total liabilities at 2,112,575,154.31 RMB, leading to total equity of 1,856,410,419.47 RMB[52] - The company reported a total of 876,492,581.88 RMB in current assets, with cash and cash equivalents at 109,674,384.98 RMB at the beginning of the period[50] Cash Flow - Net cash flow from operating activities for the first nine months was CNY 271,497,232.61, a 2.31% increase year-on-year[7] - Cash flow from operating activities for the first three quarters of 2020 was CNY 566,300,266.62, up from CNY 534,558,206.95 in the same period of 2019, reflecting a growth of approximately 5.9%[41] - The net cash flow from operating activities for Q3 2020 was CNY 271,497,232.61, compared to CNY 265,365,589.80 in Q3 2019, showing a slight increase of about 1.5%[43] - Investment activities resulted in a net cash outflow of CNY 263,739,369.56 for the first three quarters of 2020, compared to a net outflow of CNY 569,840,423.30 in the same period of 2019, indicating a reduction in cash outflow by approximately 53.8%[43] - The net cash flow from investment activities was -139,013,108.78 RMB, compared to -284,869,635.99 RMB in the previous period, indicating a significant reduction in cash outflow[47] Shareholder Information - The total number of shareholders reached 30,986 by the end of the reporting period[12] - The largest shareholder, Fuzhou Water Investment Development Co., Ltd., holds 57.55% of the shares[12] Expenses and Income - Research and development expenses increased by 34.09% to ¥10.40 million, reflecting higher investment in R&D activities[15] - Other income surged by 100.84% to ¥19.31 million, mainly from VAT refunds and new tax compensation received[15] - The company reported a government subsidy of CNY 1,579,094.30 for the first nine months[9] - The company incurred 386,760,124.00 RMB in debt repayment during the financing activities, alongside 51,377,668.53 RMB in dividend distributions[47] Inventory and Receivables - Accounts receivable increased by 32.95% to ¥609.23 million due to the increase in sewage treatment fees receivable[14] - Prepayments rose significantly by 231.10% to ¥9.56 million, primarily due to increased advance payments for materials[14] - Other receivables decreased by 63.29% to ¥11.61 million, mainly due to the conversion of a previously paid equity transaction deposit into equity transfer payment after acquiring 51% of Fujian Liyang Environmental Protection Co., Ltd.[14] - Inventory increased by 77.99% to ¥29.03 million, attributed to the rise in raw materials and finished goods stock for brick production[14] Financial Standards and Changes - The company has implemented new revenue and leasing standards starting from 2020, affecting the financial statements[48]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 324,678,788.88, representing a 7.14% increase compared to CNY 303,043,962.75 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was CNY 67,188,638.24, which is a 6.40% increase from CNY 63,145,436.57 in the previous year[20]. - The net cash flow from operating activities increased by 25.74% to CNY 272,182,803.28, up from CNY 216,470,529.56 in the same period last year[20]. - The total assets of the company at the end of the reporting period were CNY 4,276,454,375.34, reflecting a 7.75% increase from CNY 3,968,985,573.78 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 2.40% to CNY 1,752,811,282.45, compared to CNY 1,711,716,050.59 at the end of the previous year[20]. - The basic earnings per share for the first half of 2020 was CNY 0.1493, a 6.41% increase from CNY 0.1403 in the same period last year[21]. - The diluted earnings per share for the first half of 2020 was CNY 0.1473, which is a 6.05% increase compared to CNY 0.1389 in the previous year[21]. - The total non-recurring losses for the reporting period amounted to -930,562.28[25]. - The government subsidies recognized in the current period amounted to 3,507,358.53[24]. - The company's cash and cash equivalents reached CNY 434.54 million, an increase of CNY 136.39 million compared to the beginning of the period, primarily due to increased sewage treatment fees and net bank loans[37]. Operational Highlights - The company processed 15.77 million tons of wastewater, marking a 10.72% increase from the previous year[44]. - The company completed the acquisition of 51% of Fujian Liyang Environmental Protection Co., adding a wastewater treatment capacity of 150,000 tons per day[46]. - The company is advancing the construction of several wastewater treatment projects, including the second phase of the Fuzhou Floating Village project[46]. - The company is developing a smart operation management platform for urban wastewater treatment, enhancing operational efficiency[47]. - The company is focusing on expanding its business into rural sewage treatment and watershed management, which are emerging growth areas due to stricter environmental regulations[36]. - The company is actively integrating its operations across different environmental services, including waste treatment and resource recovery, to optimize its value chain[40]. Environmental Compliance - The company is classified as a key pollutant discharge unit in Fujian Province, with specific pollutant discharge standards and actual discharge amounts detailed in the report[132]. - The company maintained compliance with environmental standards across multiple facilities, ensuring sustainable operations[134]. - The company has not experienced any environmental pollution incidents and has adhered to all relevant environmental protection laws and regulations[137]. - The company has implemented a comprehensive emergency response plan for environmental incidents, ensuring rapid and effective responses to potential risks[139]. Market Strategy and Expansion - The company plans to expand its market presence through acquisitions, including the purchase of a 51% stake in Fujian Liyang Environmental Protection Co., Ltd.[57]. - The company is exploring market expansion opportunities in regions with stringent environmental regulations to leverage its compliance capabilities[134]. - The company plans to enhance its market development capabilities and establish a professional sales team to track market information and cultivate key customer resources[71]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[170]. Shareholder and Governance Commitments - The company has committed to maintaining its shareholding in the company and adhering to relevant regulations regarding share reduction after the lock-up period[78]. - The company has committed to measures to mitigate the dilution of immediate returns to shareholders, including enhancing fundraising management and accelerating project construction[91]. - The company will not transfer or manage its shares in Haixia Environmental Protection for 12 months post-listing, and any reduction in shares will not exceed 50% within 6 months after the lock-up period[80]. - The company will disclose any share reduction plans 3 trading days in advance and complete the reduction within 6 months[81]. - The company and its controlling shareholder commit to accepting supervision from regulatory bodies and the public regarding their compliance with these commitments[87]. Financial Risks and Challenges - The company faces risks related to industry regulation and policy, which could impact operational costs and pricing adjustments[68]. - The company is facing liquidity and debt repayment risks due to its capital-intensive nature, with significant financing needs for new projects and potential increases in debt levels[71]. - The overall profit margin has declined due to decreased capacity utilization, particularly in newly built sewage treatment projects that initially face insufficient water volume[70]. - The company has a significant amount of accounts receivable, typically taking 2-3 months for collection, which may affect cash flow[69]. Related Party Transactions - The company reported a total of 497.42 million RMB in expected related party transactions, with 108.72 million RMB already realized during the reporting period[101]. - The company confirmed that all related party transactions were conducted at market prices, ensuring fairness and compliance with market principles[105]. - The company’s related party transactions accounted for a significant portion of its operational activities, reflecting its interconnected business relationships[104]. Future Outlook - The company emphasizes that the measures to fill the diluted returns do not guarantee future profits, and investors should be cautious in their investment decisions[91]. - Future guidance indicates a cautious outlook due to market conditions, with a focus on maintaining profitability[192].

Financial Performance - Net profit attributable to shareholders rose by 10.70% to CNY 33,999,496.91 year-on-year[7] - Operating revenue for the period was CNY 145,894,436.27, reflecting a growth of 4.73% compared to the same period last year[7] - Basic earnings per share increased by 10.69% to CNY 0.0756[8] - Diluted earnings per share rose by 9.52% to CNY 0.0748[8] - The company's net assets attributable to shareholders increased by 1.99% to CNY 1,745,721,548.71[7] - Net profit for Q1 2020 was CNY 31,112,880.16, representing a growth of 8.5% compared to CNY 28,688,555.74 in Q1 2019[27] - The total profit for Q1 2020 was ¥39,495,198.01, compared to ¥37,628,838.10 in Q1 2019, marking a growth of 4.9%[28] - The net profit for Q1 2020 reached ¥31,940,000.04, up from ¥30,629,360.98 in the same period last year, representing a growth of 4.3%[29] - The company's total comprehensive income was ¥31,940,000.04 for Q1 2020, compared to ¥30,629,360.98 in Q1 2019, an increase of 4.3%[29] Cash Flow - Net cash flow from operating activities surged by 96.24% to CNY 254,745,585.16 compared to the previous year[7] - Operating cash flow net increased by 96.24% to ¥254,745,585.16, driven by sewage treatment fees and central government funding of ¥30 million for environmental projects[17] - Cash flow from operating activities for Q1 2020 was ¥301,142,155.25, significantly higher than ¥144,537,151.18 in Q1 2019, showing an increase of 108.5%[32] - Net cash flow from operating activities reached CNY 254,745,585.16, compared to CNY 129,811,101.97 in the previous year, indicating a significant increase of about 96.5%[33] - Cash inflow from sales of goods and services was CNY 243,022,574.50, significantly higher than CNY 109,311,560.66 in Q1 2019, representing a growth of about 122.1%[36] - Total cash inflow from financing activities was CNY 189,271,973.00, up from CNY 170,050,000.00 in Q1 2019, reflecting an increase of approximately 11.5%[34] - Net cash flow from financing activities was CNY 51,927,917.46, a decrease from CNY 83,069,139.00 in the same period last year, showing a decline of about 37.4%[34] - Cash and cash equivalents at the end of Q1 2020 totaled CNY 415,637,151.86, compared to CNY 138,545,897.13 at the end of Q1 2019, marking an increase of approximately 200.5%[34] - The net increase in cash and cash equivalents for Q1 2020 was CNY 55,841,897.25, compared to an increase of CNY 43,505,914.13 in Q1 2019, showing a growth of about 28.4%[37] Assets and Liabilities - Total assets increased by 2.42% to CNY 4,065,146,746.41 compared to the end of the previous year[7] - Cash and cash equivalents increased by 51.28% to ¥451,037,151.86, primarily due to the receipt of sewage treatment fees and an increase in net bank loans[16] - Accounts receivable decreased by 27.17% to ¥333,753,328.08, mainly due to the recovery of previous sewage treatment fees[16] - Inventory rose by 32.60% to ¥21,630,809.86, attributed to increased stock of raw materials and finished products[16] - Long-term equity investments increased by 25.54% to ¥102,550,290.14, primarily from investments in Fuzhou Huhong Renewable Energy Co., Ltd.[16] - Total assets as of March 31, 2020, amounted to CNY 2,943,809,369.63, a decrease from CNY 2,996,476,665.49 at the end of 2019[25] - Total liabilities as of March 31, 2020, were CNY 1,280,197,736.07, down from CNY 1,362,623,472.20 at the end of 2019[25] - Shareholders' equity as of March 31, 2020, was CNY 1,663,611,633.56, compared to CNY 1,633,853,193.29 at the end of 2019[26] Shareholder Information - The number of shareholders reached 33,214 by the end of the reporting period[13] Government Support and Other Income - The company received government subsidies amounting to CNY 1,686,961.15 related to standard upgrades[8] - Other income increased by 66.07% to ¥5,294,373.83, mainly from increased VAT refunds[17] Expenses - Financial expenses rose by 35.76% to ¥15,296,190.07, due to the issuance of convertible bonds and related interest expenses[17] - Research and development expenses for Q1 2020 were CNY 1,558,518.11, a decrease from CNY 1,873,663.88 in Q1 2019[27] - The company's management expenses decreased to ¥9,443,728.93 in Q1 2020 from ¥10,579,842.20 in Q1 2019, a reduction of 10.7%[30] - The company's financial expenses increased to ¥10,973,477.99 in Q1 2020 from ¥7,989,886.34 in Q1 2019, indicating a rise of 37.5%[30] Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[18]