DZUG(SH:600635)2025-03-28 09:10Financial Performance - Basic earnings per share for 2024 increased by 9.69% to CNY 0.078968 compared to CNY 0.071989 in 2023[21]. - Net profit attributable to shareholders for 2024 was CNY 233,149,042, a 9.69% increase from CNY 212,544,222.99 in 2023[23]. - Net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 60.32% to CNY 206,570,454.53 from CNY 520,650,317.62 in 2023[23]. - Operating cash flow for 2024 decreased by 41.21% to CNY 405,521,711.80 from CNY 689,832,669.33 in 2023[22]. - The company achieved operating revenue of 6.248 billion yuan, remaining stable compared to the same period last year; net profit attributable to shareholders increased by approximately 10% to 233 million yuan[32]. - The company achieved operating revenue of 6.248 billion RMB in 2024, a decrease of 0.86% compared to 6.303 billion RMB in the previous year[46]. - The net profit attributable to the parent company was 233 million RMB, an increase of 0.21 million RMB year-on-year[46]. - The main business revenue decreased by 0.59% to 6.188 billion RMB from 6.225 billion RMB year-on-year[49]. - The company reported a significant decrease in net cash flow from operating activities, down 41.21% to 405 million RMB due to reduced cash inflow from sales and services[48]. - The company’s investment income decreased by 55.76% to CNY 292.37 million, primarily due to reduced earnings from equity method investments[64]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.036 per share, totaling RMB 106,287,648.30, which represents 45.59% of the net profit attributable to shareholders for the year[4]. - The cash dividend amount (including tax) is CNY 106,287,648.30, which accounts for 45.59% of the net profit attributable to ordinary shareholders in the consolidated financial statements[112]. - The cumulative cash dividend amount over the last three accounting years (including tax) is CNY 298,195,902.18, with an average annual net profit of CNY 37,700,706.83, resulting in a cash dividend ratio of 790.96%[114]. - The company distributed a cash dividend of 0.035 CNY per share, totaling 103,335,213.63 CNY based on a total share capital of 2,952,434,675 shares as of the end of 2023[109]. - The company has established a cash dividend policy in accordance with the guidelines from the China Securities Regulatory Commission[109]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The company has appointed Lixin Certified Public Accountants as its auditor[18]. - The audit opinion confirms that the financial statements fairly present the financial position and operating results of the company for the year ended December 31, 2024[195]. - The audit identified key audit matters, including the consolidation of financial statements and the valuation of financial instruments[197]. - The company has not been subject to penalties from securities regulatory agencies in the past three years[96]. Governance and Management - The board of directors consists of 9 members, including 4 independent non-executive directors, promoting compliance and scientific decision-making[84]. - A total of 5 board meetings and 7 audit committee meetings were held during the reporting period, with significant governance documents revised[84]. - The supervisory board comprises 3 members, ensuring oversight of financial conditions and compliance of management actions[85]. - The company emphasizes investor relations management, maintaining communication through various channels and hosting online investor meetings[86]. - The company has established a robust internal control system to enhance governance and operational efficiency[83]. - The company has consistently disclosed its ESG report for 8 consecutive years, reflecting its commitment to transparency and accountability[86]. Environmental and Social Responsibility - The company has invested CNY 27,001,700 in environmental protection during the reporting period[120]. - The company reported a reduction of 1,484.45 tons in carbon dioxide equivalent emissions due to the implementation of distributed photovoltaic power generation at the Dazhong Jiading wastewater treatment plant[129]. - The company has established emergency response plans for environmental incidents for all wastewater treatment facilities, which have been submitted to the relevant authorities[125]. - The company has not faced any administrative penalties for environmental issues during the reporting period[127]. - The company donated a total of 100,000 RMB to the Shanghai Children's Health Foundation for the treatment of children with heart disease[131]. Financial Position and Debt Management - The company's interest-bearing debt at the beginning and end of the reporting period was CNY 64.58 billion and CNY 61.35 billion, respectively, reflecting a year-on-year decrease of 5.01%[177]. - The company's consolidated interest-bearing debt at the beginning and end of the reporting period was CNY 81.29 billion and CNY 78.93 billion, respectively, showing a year-on-year decrease of 2.90%[179]. - The total amount of company credit bonds at the end of the reporting period was CNY 19 billion, with CNY 15 billion maturing or redeemable between May and December 2025[178]. - The company has no overdue interest-bearing debts exceeding CNY 10 million at the end of the reporting period[182]. - The company has fully executed the repayment arrangements disclosed in the previous reporting period[177]. Operational Highlights - The company operates 9 sewage treatment plants with a total treatment capacity of 465,000 tons per day, including a daily treatment capacity of 200,000 tons in Shanghai and 265,000 tons in Jiangsu[39]. - The company has a natural gas pipeline length of approximately 7,000 kilometers in Shanghai, serving around 2 million gas users, and over 3,000 kilometers in Nantong, serving about 750,000 users[38]. - In the urban gas sector, Shanghai Dazhong Gas completed the replacement of aging pipelines and achieved a natural gas sales volume of 1.033 billion cubic meters, while Nantong Dazhong Gas reported a sales volume of 420 million cubic meters, a year-on-year increase of approximately 10%[38]. - The wastewater treatment segment maintained a high gross margin of 61.74%, despite a revenue decline of 3.94%[51]. - The company has multiple subsidiaries responsible for wastewater treatment across regions including Shanghai Jiading, Xuzhou, and Lianyungang[1]. Risks and Challenges - The company faces risks from natural gas price fluctuations, which could significantly impact operational performance due to the reliance on government pricing policies[78]. - Environmental policy changes pose a risk, as stricter regulations may pressure the company's operations and require compliance with updated technical standards[78]. - Safety risks related to gas operations and construction projects are a concern, necessitating stringent safety management practices to prevent accidents[79]. - The company is exposed to exchange rate fluctuations, particularly with USD-denominated funds, which could lead to foreign exchange losses[80]. - Investment returns are sensitive to macroeconomic conditions and market performance, impacting the company's profitability and necessitating careful investment management[80].