Chongqing Water(SH:601158)2015-04-02 16:00Financial Performance - The company's operating revenue for 2014 was CNY 4,136,582,015.11, an increase of 3.43% compared to CNY 3,999,575,359.35 in 2013[30]. - The net profit attributable to shareholders for 2014 was CNY 1,450,004,306.75, a decrease of 22.76% from CNY 1,877,203,525.25 in 2013[30]. - The net profit after deducting non-recurring gains and losses was CNY 1,255,421,093.34, down 29.24% from CNY 1,774,143,519.35 in 2013[30]. - The cash flow from operating activities for 2014 was CNY 2,177,246,383.36, a decrease of 4.22% compared to CNY 2,273,117,963.10 in 2013[30]. - The total assets at the end of 2014 were CNY 20,570,917,509.41, an increase of 3.46% from CNY 19,882,074,667.89 at the end of 2013[30]. - The net assets attributable to shareholders at the end of 2014 were CNY 13,246,442,209.29, an increase of 1.68% from CNY 13,028,162,085.14 at the end of 2013[30]. - Basic earnings per share for 2014 were CNY 0.30, a decrease of 23.08% from CNY 0.39 in 2013[31]. - The weighted average return on equity for 2014 was 10.94%, down 3.83 percentage points from 14.77% in 2013[31]. - The total non-recurring gains and losses for 2014 amounted to CNY 194,583,213.41, compared to CNY 103,060,005.90 in 2013[34]. - The company's operating revenue for 2014 reached RMB 4.14 billion, an increase of 3.43% compared to the previous year[39]. - Net profit for the year was RMB 1.45 billion, a decrease of 22.76% year-on-year, with earnings per share at RMB 0.30, down 23.08%[39]. - Total assets increased to RMB 20.57 billion, up 3.46% from the beginning of the year, while net assets reached RMB 13.25 billion, a 1.68% increase[39]. Dividends and Share Capital - The company plans to distribute a cash dividend of RMB 120 million, which is RMB 2.50 per 10 shares, based on a total share capital of 4.8 billion shares[2]. - The company will not issue bonus shares or implement capital reserve transfers to increase share capital for the current year[2]. Loans and Financial Risks - The company has foreign currency loans amounting to 12,468,585,000 JPY, 767,428.54 EUR, and 28,075,703.23 USD, which may impact financial expenses and total profit due to exchange rate fluctuations[12]. - The company is facing risks related to the supply of raw materials, particularly due to uneven rainfall and extreme weather conditions affecting water sourcing costs[9]. - The company has committed to enhancing operational management and technical inspections to ensure compliance with the new environmental protection law effective from January 1, 2015[114]. - The company has implemented measures to control costs and improve energy efficiency in response to potential electricity supply and price risks[110]. Revenue and Pricing - The government-approved price for sewage treatment services is set at RMB 2.78 per cubic meter for the period from 2014 to 2016, which may pose risks if costs increase and prices cannot be adjusted in a timely manner[10]. - The company emphasizes the importance of timely price adjustments for water supply services to manage operational risks effectively[10]. - The company's asset-liability ratio at the end of the reporting period was 35.56%, an increase of 1.14 percentage points from the beginning of the year[39]. - Main business revenue from water supply was RMB 943.42 million, up 6.05% year-on-year, while sewage treatment revenue was RMB 2.15 billion, down 8.21%[55]. Investments and Projects - The company has established a strategic partnership with international investors to enhance technology and equipment acquisition[65]. - The company is actively pursuing mergers and acquisitions, with a focus on expanding its market presence in Chongqing[95]. - The company has committed to a total of 201.6 million in fundraising projects, with 11.03 million utilized in the current year[96]. - The company plans to invest CNY 923 million using its own funds to complete ongoing projects during the planning period[110]. Legal and Compliance Issues - The company has been involved in multiple legal disputes related to construction contracts, indicating ongoing operational challenges[124]. - The company has taken legal measures to secure its claims, including applying for asset preservation measures[123]. - The company has faced appeals from defendants in various lawsuits, reflecting a complex legal environment[123]. Corporate Governance - The company has changed its accounting firm from Da Xin to Li Xin, with the new audit fee set at 650,000 RMB, down from 700,000 RMB[160]. - The internal control audit will be conducted by Li Xin, with a fee of 300,000 RMB[160]. - The company has not reported any significant changes in user data or customer base for the year 2014[99]. - The company did not receive any penalties or administrative sanctions from the China Securities Regulatory Commission during the reporting period[161]. Future Outlook - Future projections indicate a delay in the implementation of government regulations affecting road construction, expected to impact operations in 2015[101]. - The company is focusing on expanding its water treatment facilities to meet increasing demand in urban areas[101]. - The company aims to improve its service efficiency by upgrading existing water supply networks[101]. - The company is committed to sustainable practices in its operations, aligning with national environmental policies[101].