TCEPC(SH:600874)2014-08-29 16:00Financial Performance - The company achieved operating revenue of RMB 86,177 million in the first half of 2014, an increase of 1.22% compared to the same period last year[16]. - Net profit attributable to shareholders reached RMB 14,396 million, reflecting a growth of 23.92% year-on-year[16]. - The net cash flow from operating activities surged to RMB 37,984 million, a significant increase of 191.24% compared to the previous year[16]. - Basic earnings per share rose to RMB 0.10, marking a 25% increase from the previous year[16]. - The company's overall operating income increased by 1.22% to RMB 861.77 million, while operating costs decreased by 4.35% to RMB 487.25 million[23]. - The company reported a net profit of RMB 143.96 million, an increase of RMB 27.79 million or 23.92% compared to the same period last year[19]. - The company's operating profit for the first half of 2014 was RMB 198,145 thousand, compared to RMB 159,678 thousand in the same period of 2013, representing an increase of approximately 24.0%[77]. - The company reported a net profit of RMB 143,957 thousand for the first half of 2014, up from RMB 116,169 thousand in the same period of 2013, reflecting a growth of approximately 24%[81]. Asset Management - The company's total assets increased by 2.76% to RMB 1,137,979 million at the end of the reporting period[16]. - The company's total assets reached RMB 11,379,794 thousand as of June 30, 2014, compared to RMB 11,073,751 thousand at the end of 2013, reflecting an increase of approximately 2.8%[76]. - Current assets totaled RMB 3,604,035 thousand, up from RMB 3,274,637 thousand in the previous year[74]. - The company reported a decrease in fixed assets by 85.56% to RMB 44.60 million, while intangible assets increased by 82.11% to RMB 559.96 million due to the transfer of assets related to the sewage treatment plants[26]. - The company's total current assets have significantly increased, indicating a strategic shift in asset management and project handling[165]. Liabilities and Equity - The company's total liabilities increased to RMB 7,212,098 thousand as of June 30, 2014, compared to RMB 6,939,207 thousand at the end of 2013, marking an increase of approximately 3.9%[76]. - The total equity attributable to shareholders of the parent company rose to RMB 4,006,273 thousand, compared to RMB 3,976,494 thousand at the end of 2013, indicating a growth of about 0.7%[76]. - As of June 30, 2014, the company's asset-liability ratio was 63.38%[52]. Cash Flow - Operating cash flow increased significantly to RMB 379.84 million, a 191.24% rise compared to the previous year[23]. - Total cash inflow from operating activities reached RMB 822,913 thousand, compared to RMB 591,072 thousand in the first half of 2013, marking an increase of about 39%[78]. - The total cash outflow from financing activities was RMB 723,223 thousand, compared to RMB 805,399 thousand in the first half of 2013, indicating a reduction of about 10%[79]. - The cash flow statement indicates cash after deducting restricted bank deposits is RMB 1,057,240 thousand, up from RMB 994,982 thousand at the end of 2013, reflecting a growth of about 6.3%[137]. Revenue Streams - The total sewage treated was 540.78 million cubic meters, a 3.13% increase year-on-year, generating revenue of RMB 650.19 million, a decrease of 0.27% from the previous year[19]. - The revenue from reclaimed water sales reached RMB 26.13 million, a 28.1% increase year-on-year, due to reduced river water usage and increased demand from power plants[21]. - The self-water supply business generated RMB 30.64 million in revenue, a significant increase of 68.91% year-on-year, attributed to the inclusion of source water fees in pricing[21]. - The construction business revenue was RMB 4.05 million, a decrease of 70.59% compared to the previous year, as most projects were completed in the prior period[20]. Cost Management - The company reduced its operating costs by RMB 2,217 million, a decrease of 4.35% year-on-year, primarily due to lower depreciation costs[18]. - Financial expenses decreased by RMB 1,143 million to RMB 10,552 million, attributed to reduced loan principal and lower interest expenses from refinancing[18]. Investments and Projects - The company signed a 30-year concession agreement for four wastewater treatment plants, effective from January 1, 2014, ensuring a guaranteed water volume of 80% of their designed capacity[88]. - The company approved a capital increase of RMB 19.6 million for its wholly-owned subsidiary Fuyang Chuangye Water Co., Ltd. to acquire a water reuse project, raising its registered capital to RMB 106.5 million[36]. - A capital increase of RMB 64 million was approved for Xi'an Chuangye Water Co., Ltd. for upgrading wastewater treatment facilities, which is currently in progress[37]. Employee and Compensation - The company employed 1,475 staff members, with total employee compensation of approximately RMB 116.086 million during the reporting period[55]. - Employee compensation includes various forms of remuneration such as salaries, bonuses, and social insurance contributions[124]. Dividends and Shareholder Information - The company distributed a cash dividend of RMB 0.10085 per share to A-shares and H-shares, with the distribution completed on July 31, 2014[41]. - The top shareholder, Tianjin Municipal Investment Co., Ltd., holds 51.58% of the shares, with a total of 736,207,892 shares[64]. Compliance and Audit - The company’s financial statements for the six months ending June 30, 2014, reflect compliance with accounting standards and provide a true and complete view of its financial status[97]. - The company has not reported any significant changes in net profit expectations or non-standard audit reports for the current period[42]. Impairment and Provisions - A provision for impairment loss of RMB 6.9 million was recorded for wastewater treatment projects during the reporting period[45]. - The company assesses the impairment risk of receivables and has made provisions for bad debts as of June 30, 2014[131]. Miscellaneous - The company is currently involved in arbitration regarding unpaid water service fees amounting to RMB 6,000 million, with an interim ruling issued on April 18, 2014[44]. - The company has maintained a stable share structure with no changes in total shares or capital during the reporting period[61].