CSD Water Service(SH:603903)2025-04-29 03:11Financial Performance - The net profit attributable to shareholders for 2024 was -116,923,668.92 CNY, indicating a loss for the year[6]. - The parent company reported a net profit of -46,726,300.90 CNY for 2024[6]. - The total distributable profit available for shareholders at the end of the year was 385,215,701.15 CNY[6]. - The company plans not to distribute profits or increase capital reserves for 2024 due to the negative net profit[6]. - The company's operating revenue for 2024 was CNY 1,057,970,468.05, a decrease of 33.83% compared to CNY 1,598,954,368.66 in 2023[24]. - The net profit attributable to shareholders was a loss of CNY 116,923,668.92 in 2024, a decline of 171.56% from a profit of CNY 163,388,406.11 in 2023[24]. - The basic earnings per share for 2024 was -CNY 0.46, down 171.88% from CNY 0.64 in 2023[25]. - The weighted average return on equity decreased to -7.12% in 2024, down 16.65 percentage points from 9.53% in 2023[25]. - The company reported a net cash flow from operating activities of CNY 183,507,995.51, a decrease of 7.28% compared to CNY 197,906,081.37 in 2023[24]. - The total assets at the end of 2024 were CNY 4,631,949,979.13, a decrease of 5.47% from CNY 4,900,110,478.97 at the end of 2023[24]. Operational Challenges - The company faced significant challenges in the infrastructure construction service sector, with a gross profit decline of approximately CNY 240 million due to changes in the economic and market environment[25]. - The company implemented strategic adjustments, including slowing down or suspending certain projects to reduce capital outlay risks, resulting in a noticeable decrease in the number of new projects won in 2024[26]. - The company recorded an impairment loss of CNY 44,321,800.00 related to goodwill due to the significant decline in performance during the reporting period[26]. - The company increased its impairment provision for assets by 71.9353 million yuan due to deteriorating customer payment capabilities[36]. Strategic Initiatives - The company won the "2023 Excellent Supplier Partner" award from Moutai Group and secured a major project for the renovation of the Moutai wastewater treatment plant system[37]. - The company established a strategic cooperation framework with Wujiang Water Group to enhance collaboration in smart networks and AI[38]. - The company is focusing on technology advantages and has developed a series of technical products, including the Smart-IES environmental management platform[38]. - The company plans to merge regional companies to enhance organizational efficiency and streamline management[39]. - The company aims to accelerate the collection of receivables and improve project turnover rates to ensure healthy operations[40]. - The company is enhancing its R&D capabilities in microbial technology for industrial wastewater treatment and sludge processing[41]. Revenue and Cost Analysis - The company's operating costs decreased by 24.90% to 801.8 million RMB due to the decline in operating revenue[51]. - Research and development expenses decreased by 31.42% to 38.1 million RMB as the company slowed down its R&D investment[51]. - The company's revenue from urban sewage treatment was 50,398.77 million, a decrease of 19.81% compared to the previous year, with a gross margin of 26.31%[55]. - Revenue from industrial park and industrial wastewater treatment was 43,058.10 million, down 24.56% year-on-year, with a gross margin of 32.46%[55]. - The gross margin for the operation service segment was 35.34%, with revenue of 61,382.47 million, showing a slight increase of 0.41% year-on-year[55]. Governance and Compliance - The company strictly adheres to the Company Law and Securities Law, ensuring a well-structured governance system and effective internal controls[101]. - The board of directors operates with a clear division of responsibilities, supported by four specialized committees, enhancing decision-making processes[102]. - The company maintains independence from its major shareholder, ensuring no interference in operational decisions and compliance with legal regulations[103]. - Information disclosure is executed in a timely and accurate manner, ensuring transparency and fairness for all shareholders[103]. - The company has established a robust investor relations management system, facilitating effective communication with investors[103]. Shareholder Relations - The company plans to implement a shareholder return plan for the next three years (2023-2025) to enhance shareholder value[104]. - The company has approved the issuance of shares to specific investors to dilute immediate returns and fill the gap in return measures[104]. - The company has conducted annual reports and financial statements for 2023, ensuring compliance with regulatory requirements[106]. - The total compensation for executives amounted to 62.43 million CNY, with Zhang Yifei, the Chairman, receiving 1.636 million CNY[108]. - The company reported no changes in shareholdings for executives during the year, maintaining a total of 6,242,800 shares[109]. Environmental Management - The company has established a comprehensive environmental governance service model, including urban sewage treatment and industrial wastewater treatment[49]. - The company has implemented pollution prevention facilities that are operational and stable[153]. - The company has conducted environmental impact assessments for its projects, which have passed regulatory approvals[154]. - The company has developed emergency response plans for environmental incidents, detailing management and operational protocols[155]. - The company has initiated carbon reduction measures since 2016, focusing on sustainable water quality and energy self-sufficiency, achieving 50% self-supply of electricity at the Suixian Third Sewage Treatment Plant[158]. Future Outlook - The company is exploring new development paths in response to the evolving environmental industry landscape, which is shifting from pollution control to comprehensive water management[86]. - The company aims to enhance operational efficiency and technology integration in wastewater treatment facilities, focusing on smart upgrades and service improvements[91]. - The company plans to invest in AI technology to improve operational efficiency and business innovation, establishing a dedicated AI leadership role[93]. - The company will continue to focus on the Yangtze River Delta region, enhancing wastewater treatment efficiency through innovative practices and technology integration[92].