Bossco(SZ:300422)2018-04-24 16:00Financing and Investment - The company plans to issue convertible bonds with a total scale not exceeding RMB 430 million to fund the Nanning urban river black and odorous water treatment PPP project[5]. - The company has received approval from the China Securities Regulatory Commission for the convertible bond issuance, but is awaiting formal documentation[5]. - The company plans to optimize its funding sources through various channels, including debt and equity financing, to meet its liquidity needs and reduce potential repayment risks[12]. - The company’s overseas investment in RemedX Remediation Service Inc. amounts to CNY 87.27 million, representing 6.74% of the company's net assets[116]. - The company has a total of 11 major contracts signed, with a total investment exceeding 500 million[198]. Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[22]. - The company's operating revenue for 2017 was CNY 1,468,545,794.26, representing a 77.15% increase compared to CNY 828,969,071.31 in 2016[30]. - The net profit attributable to shareholders for 2017 was CNY 146,704,232.04, a significant increase of 134.06% from CNY 62,678,930.72 in 2016[30]. - The total revenue for the company in 2017 was ¥146,852.76 million, compared to ¥82,794.34 million in 2016, reflecting a growth of about 77.5%[42]. - The company’s cash flow from operating activities showed a net outflow of CNY 150,234,947.90, worsening by 168.76% compared to the previous year[160]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[23]. - The company has established 18 branches across various provinces, achieving a zero breakthrough in its environmental steward business in Guangxi[123]. - The company is actively expanding its market presence through strategic partnerships and project collaborations in the environmental sector[200]. - The company’s market expansion strategy focuses on high-quality demonstration projects to enhance its brand and market presence[185]. - The company has a strong focus on compliance with national regulations regarding engineering consulting qualifications[137]. Research and Development - The company aims to strengthen its R&D capabilities and optimize resource integration to maintain its competitive edge in the environmental services sector[10]. - R&D expenses as a percentage of management costs increased from 32.76% in 2015 to 33.30% in 2017, reflecting the company's commitment to innovation in a technology-driven industry[16]. - The company is investing 50 million RMB in R&D for innovative environmental technologies over the next two years[23]. - The company has achieved significant breakthroughs in technological innovation, with a total of 114 patents, including 20 invention patents and 94 utility model patents, and a patent technology conversion rate exceeding 70%[118]. - The company has established various technical research platforms, including an academician workstation and a postdoctoral workstation, attracting over 20 high-end technical experts[127]. Operational Challenges and Risks - The company faces risks related to the repayment of principal and interest on the convertible bonds, which may impact cash flow if business performance does not meet expectations[5]. - The company acknowledges intensified market competition in the environmental protection industry, driven by increased investment and interest from state-owned enterprises[10]. - The company is facing regulatory tightening in the PPP model, which may impact project feasibility and expected economic benefits, necessitating enhanced risk management practices[15]. - There is a risk of key personnel turnover due to competition from state-owned enterprises, which could jeopardize the company's core technologies and operational capabilities[18]. - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, which do not constitute binding commitments[3]. Environmental Services and Projects - The company's main business includes comprehensive environmental governance services, professional technical services, and operational management services, with a focus on water pollution control, soil remediation, and solid waste disposal[41]. - The company’s technologies are designed to effectively reduce pollutants in soil and water, ensuring compliance with national environmental standards[64]. - The company has developed a comprehensive soil remediation service chain, including technologies for solidification/stabilization, chemical oxidation, and microbial remediation, with 3 invention patents and 11 utility model patents obtained[63]. - The company has strategically acquired a Canadian soil remediation service company to enhance its capabilities in oilfield pollution disposal and groundwater remediation[63]. - The company’s wastewater treatment systems achieve compliance with the Class 1B discharge standards as per GB 18918—2002, with potential to reach Class 1A standards with simple follow-up treatment[60]. Employee Engagement and Management - The company has implemented a stock incentive plan and a training program to enhance employee engagement and innovation capabilities[188]. - The company has a high-quality management team with overseas study backgrounds, ensuring competitive advantages in technology research and engineering implementation[125]. - The company has established comprehensive performance assessments and equity incentives for senior management to enhance management stability and innovation[127]. - The company has a total of 815 technical personnel, including over 30 PhDs and 176 master's degree holders, enhancing its research and development capabilities[127]. - The company has actively expanded its PPP business model, resulting in explosive growth in the number of PPP orders during the reporting period[122].