Chongqing Water(601158)2025-04-01 10:00Financial Performance - The company's operating revenue for 2024 was approximately ¥6.999 billion, a decrease of 3.52% compared to ¥7.254 billion in 2023[22]. - The net profit attributable to shareholders for 2024 was approximately ¥785 million, down 27.88% from ¥1.089 billion in 2023[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥621 million, a decrease of 27.41% from ¥856 million in 2023[22]. - The net cash flow from operating activities for 2024 was approximately ¥2.332 billion, down 7.02% from ¥2.508 billion in 2023[22]. - The total assets at the end of 2024 were approximately ¥33.863 billion, an increase of 2.29% from ¥33.104 billion at the end of 2023[22]. - The net assets attributable to shareholders at the end of 2024 were approximately ¥17.109 billion, a slight increase of 0.95% from ¥16.948 billion at the end of 2023[22]. - The company achieved operating revenue of 6.999 billion yuan and a net profit of 785 million yuan in 2024, with earnings per share of 0.16 yuan[35]. - The company reported a weighted average return on equity of 4.61%, down 1.55 percentage points from the previous year[23]. - The company's total operating revenue decreased by 3.52% to 6,999,348,130.78 yuan compared to the previous year[50]. - The company's operating costs decreased by 7.13% to 5,043,144,536.21 yuan, contributing to improved profitability[50]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥628.8 million, at a rate of ¥1.31 per 10 shares, based on a total share capital of 4.8 billion shares[7]. - The company has distributed cash dividends amounting to CNY 628,800,000, which accounts for 80.09% of the net profit attributable to ordinary shareholders in the consolidated financial statements[144]. - Over the last three accounting years, the cumulative cash dividend amount (including tax) reached CNY 2,736,000,001.17, resulting in a cash dividend ratio of 216.96% based on the average annual net profit of CNY 1,261,089,489.99[146]. - The company has maintained a cash dividend policy ensuring that cash dividends are no less than 60% of the distributable profits for the years 2009 to 2023[144]. Operational Highlights - The total wastewater treatment volume reached 1.732 billion cubic meters, an increase of 4.02% year-on-year, while the sales volume of sludge treatment increased by 6.26% to 623,200 tons[35]. - The company completed the construction of key projects, including the expansion of 12 wastewater treatment facilities, enhancing its operational capacity[36]. - The company’s revenue from wastewater treatment services accounted for 58.94% of total operating revenue, while water sales contributed 24.92%[35]. - The company achieved a total wastewater treatment volume of 173,207.65 million cubic meters, generating wastewater treatment service revenue of 412,532.91 million yuan, accounting for 58.94% of total revenue[49]. - The company’s tap water sales volume reached 63,774.77 million cubic meters, resulting in sales revenue of 174,425.16 million yuan, which represents 24.92% of total revenue[49]. Research and Development - Research and development expenses increased by 76.21% to 18,970,630.99 yuan, reflecting the company's commitment to innovation[50]. - The company established 4 new technology-based enterprises and obtained 210 intellectual property rights in 2024, enhancing its innovation capabilities[38]. - The company is investing $50 million in R&D for new technologies aimed at improving water purification processes[114]. - The company is focusing on the development of new technologies in water quality testing, with an investment of 50 million yuan allocated for R&D[125]. Market Position and Strategy - The company holds approximately 54% of the tap water market and about 80% of the wastewater treatment market in the main urban area of Chongqing, indicating a significant regional competitive advantage[41]. - The company is focused on expanding its market presence in both domestic and international water supply and related industries, aiming to become a leading comprehensive water service provider in China[41]. - The company plans to accelerate the "water + new energy" model, completing tenders for 15 distributed photovoltaic power stations[36]. - The company is actively participating in market competition for projects related to the Yangtze River protection and integrated water management, aiming to expand its business scope and enhance capacity[97]. Environmental and Social Responsibility - The company invested CNY 617,188.15 million in environmental protection during the reporting period, which includes investments in wastewater treatment and sludge disposal projects[152]. - The company has established emergency response plans for environmental incidents and conducts regular drills[156]. - The company processed approximately 1.692 billion m³ of wastewater, achieving a reduction of 372,400 tons in COD, 39,300 tons in NH3-N, 41,700 tons in total nitrogen, and 5,900 tons in total phosphorus during the reporting period[160]. - The company implemented carbon reduction measures, resulting in a decrease of 26,674.89 tons of CO2 equivalent emissions through initiatives such as water reuse and biogas utilization[161]. - A total of 550,000 yuan was donated to support local water safety education and other community projects in Chongqing[162]. Governance and Compliance - The company has received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[5]. - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report[3]. - The company has implemented measures to ensure independence from its controlling shareholders, maintaining separate operations and financial responsibilities[107]. - The company has adhered to information disclosure regulations, ensuring no false records or significant omissions occurred during the reporting period[107]. - The company has not faced any penalties from securities regulatory agencies in the past three years[122]. Risks and Challenges - The company faces risks related to raw material supply, particularly due to uneven rainfall in Chongqing, which can increase water extraction and purification costs[93]. - The implementation of the new drinking water hygiene standards (GB5749-2022) may lead to increased costs and risks of exceeding water quality standards[95]. - The company is exposed to environmental compliance risks due to stricter regulations and potential increases in operational costs[99]. - The company is at risk of increased costs due to the rising prices of production chemicals under the new national standards for drinking water[101]. - The company faces increased operational costs due to rising costs associated with sludge disposal and fluctuating electricity prices, which may adversely affect future operating efficiency[102]. Shareholder Structure - The largest shareholder, Chongqing Derun Environment Co., Ltd., holds 2,401,800,000 shares, representing 50.04% of the total shares[192]. - The second largest shareholder, Chongqing Water Affairs Environment Holding Group Co., Ltd., holds 1,849,160,689 shares, accounting for 38.52%[192]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the top two shareholders alone accounting for over 88.56%[192]. - The company has not reported any changes in the shareholding structure due to share lending or borrowing activities[194].