HONGCHENG WATERWORKS(SH:600461)2025-04-14 10:55Financial Performance - The company achieved a consolidated net profit of CNY 1,337,740,192.51 for the fiscal year 2024, with a net profit attributable to the parent company of CNY 1,189,979,284.26, representing a year-on-year increase of 9.89%[5]. - Operating revenue for 2024 was CNY 8,226,716,564.40, reflecting a growth of 2.22% compared to CNY 8,048,268,332.00 in 2023[23]. - The total profit reached 1.634 billion yuan, reflecting a growth of 10.58% year-over-year[34]. - The net profit attributable to the parent company was 1.190 billion yuan, up 9.89% from the previous year[34]. - Basic earnings per share stood at 0.97 yuan, a decrease of 2.02% compared to 0.99 yuan in 2023[34]. - The company achieved total operating revenue of 807,000.00 thousand yuan, with water sales revenue at 99,148.84 thousand yuan (12.29%), sewage treatment revenue at 249,953.75 thousand yuan (30.98%), and gas sales revenue at 198,758.47 thousand yuan (24.63%)[36]. - The company reported a total revenue of CNY 7,524,158,946 from Jiangxi Province, reflecting a 2.68% increase year-on-year[53]. - The company reported a revenue increase of 15% year-over-year, reaching 1.2 billion RMB in the last quarter[120]. Assets and Liabilities - The net assets attributable to shareholders reached CNY 9,393,686,969.51 at the end of 2024, an increase of 18.34% from CNY 7,937,573,950.64 at the end of 2023[24]. - Total assets as of the end of 2024 amounted to CNY 24,737,421,971.94, marking a 7.99% increase from CNY 22,906,128,732.77 at the end of 2023[24]. - The company’s long-term borrowings reached 4,713,049,649.96 CNY, a 33.81% increase from the previous period[66]. - The amount of dividends payable at the end of the period was 455,409,884.77 yuan, a year-on-year increase of 64.43%, primarily due to the increase in ordinary share dividends[69]. - The estimated liabilities at the end of the period were 146,403,084.19 yuan, an increase of 31.78% year-on-year, mainly due to increased expenditures for major repairs and replacements of franchise projects[69]. Cash Flow and Dividends - The net cash flow from operating activities for 2024 was CNY 1,974,147,662.11, which is a 14.19% increase from CNY 1,728,828,540.45 in 2023[24]. - The company plans to distribute a cash dividend of CNY 4.64 per share, totaling CNY 595,843,832.62, based on a total share capital of 1,284,146,191 shares[5]. - The company has established a cash dividend policy that mandates a minimum cash dividend ratio of 50% of the net profit attributable to shareholders if there are no major investment plans or cash expenditures[144]. - The company’s cash dividend distribution policy is designed to protect shareholders' rights and ensure reasonable returns on investment, with a focus on sustainability and long-term interests[143]. - The company has a cash dividend distribution plan for the next three years (2024-2026), ensuring a minimum annual cash distribution of 50% of the net profit attributable to shareholders[144]. Operational Highlights - The water sales volume reached 41.575 million cubic meters, an increase of 5.07% year-over-year[35]. - The sewage treatment volume was 1.253 billion cubic meters, up 7.90% from the previous year[35]. - The natural gas sales volume was 54.472 million cubic meters, reflecting a growth of 3.83% compared to the previous year[35]. - The company operates a comprehensive water supply system covering over 8,000 kilometers of pipelines and serves a population of 4 million, ensuring high-quality water services[41]. - The wastewater treatment business operates 109 plants with a market share exceeding 80% in Jiangxi province[42]. Strategic Initiatives - The company is focusing on the development of clean energy and has initiated investments in distributed photovoltaic power stations to support carbon neutrality goals[38]. - The company aims to enhance urban sewage collection rates through the integration of supply and drainage systems, driven by its major shareholder, Nanchang Water Group, which is investing in new pipeline projects[106]. - The company is pursuing new business avenues, including high-quality direct drinking water projects and "water + photovoltaic" projects, aiming for significant capacity in photovoltaic power generation[108]. - The company is committed to optimizing its sewage treatment systems and expanding its solid waste disposal and watershed management services to increase revenue and efficiency[109]. Risk Management - The company has outlined potential risks in its future development discussions, which investors should be aware of[9]. - The company faces risks from global political and economic uncertainties, particularly related to US-China relations, and is focused on enhancing its resilience to these challenges[110]. - The company is addressing regulatory risks by closely following national policies and adapting to new industry standards to ensure compliance and capitalize on policy benefits[110]. - The company is managing pricing and payment risks associated with sewage treatment services, ensuring timely payments from government clients[111]. Governance and Compliance - The controlling shareholder, Nanchang Water Group, holds 31.53% of the company's shares, which may influence operational decisions, prompting the company to strengthen its governance structure[111]. - The company has appointed new independent directors to the board, enhancing its governance structure[115]. - The company has not faced any penalties from securities regulatory agencies in the past three years[128]. - The company has established a performance evaluation mechanism for senior management, promoting accountability and aligning with shareholder interests[154]. Environmental Responsibility - The company invested approximately 150.13 million yuan in environmental protection during the reporting period[157]. - The company reported a cumulative discharge of approximately 14,100 tons of COD, 3,700 tons of BOD, and 580 tons of SS by December 31, 2024, while reducing environmental pollutants by about 408,400 tons[160]. - The company has implemented carbon reduction measures, resulting in a decrease of 36,489 tons of CO2 equivalent emissions[169]. - The company is committed to fulfilling its environmental responsibilities and has disclosed its ESG report, which will be available on April 15, 2025[169].