Financial Performance - The Group's net profit for the year increased by 31.2% to RMB170.9 million compared to last year[11]. - Total revenue for the year was RMB2,261.3 million, representing an increase of 2.0% year-on-year, with urban water treatment operations accounting for 95.5% of the total[12]. - Revenue from construction services increased by 53.2% to RMB266.0 million compared to last year due to the completion of certain construction-in-progress projects[12]. - The actual wastewater treatment volume reached 1,278.4 million tonnes, representing a slight increase of 1% compared with last year[12]. - The overall gross profit margin for the year stood at 48.2%, remaining largely flat compared to 48.5% for the same period last year[12]. - Total operating revenue for the Group's Urban Water Treatment services was RMB1,176.2 million for the year ended December 31, 2024, a decrease of approximately 7% from RMB1,265.3 million in 2023[39]. - The Group's gross profit margin for the year remained stable at 48.2%, compared to 48.5% in the previous corresponding period[55]. - The Group's cost of sales for the year was RMB1,172.3 million, representing an increase of approximately 3% from RMB1,140.4 million in the previous period[51]. Cash Flow and Financing - Net operating cash inflow of RMB403.1 million was recorded for the year, which had remained positive since 2019[16]. - The average borrowing interest rate for the year decreased by 0.44 percentage points to 5.51% compared with last year[17]. - Finance costs amounted to approximately RMB544.2 million, representing a decrease of 6.0% compared with last year[17]. - The Group recorded an operating cash inflow of RMB 403.1 million for the year, maintaining positive cash flow since 2019[19]. - As of December 31, 2024, the Group's debt-to-asset ratio improved to 68.6% from 69.6% in the previous year, while the current ratio increased to 1.32 from 1.15[19]. - The average borrowing rate decreased by 0.44 percentage points to 5.51%, resulting in financing costs of approximately RMB 544.2 million, a reduction of 6.0% year-on-year[19]. - The Group's total interest-bearing debts decreased to RMB 9,854.0 million as of December 31, 2024, from RMB 9,917.0 million as of December 31, 2023, with 69.4% classified as long-term[94]. - The gearing ratio decreased to 68.6% as of December 31, 2024, compared to 69.6% in the previous year[95]. Operational Capacity and Projects - The Group operated 105 service concession arrangement projects with a total operational treatment capacity exceeding 4 million tons per day as of December 31, 2024[27]. - The total daily treatment capacity for wastewater, reclaimed water, and sludge treatment plants in operation reached 4,089,500 tonnes, 65,000 tonnes, and 550 tonnes respectively, showing an increase from 4,024,500 tonnes in 2023 for wastewater treatment[38]. - The actual aggregate processing volume for the year ended December 31, 2024, was 1,278.4 million tonnes, representing a minor increase compared to 1,265.7 million tonnes in 2023[38]. - The Group had 100 wastewater treatment projects, 2 reclaimed water treatment projects, and 3 sludge treatment projects in operation as of December 31, 2024[38]. - The total daily treatment capacity of service concession arrangements still in the construction stage was 50,500 tonnes as of December 31, 2024[44]. Strategic Initiatives and Future Plans - The Group plans to seek reasonable adjustments to wastewater treatment prices to offset rising operational costs and enhance profitability[21]. - The Group aims to optimize its debt structure during the interest rate cut cycle to further reduce financing costs[21]. - The Group is focused on expanding its Urban Water Treatment chain to improve profitability and competitiveness[33]. - The Group is confident in the sustainable development of the wastewater treatment industry, supported by national policies promoting private enterprises[20]. - The Group will enhance energy-saving and cost-reduction measures to improve operational efficiency and gross margins[21]. - The Group is focusing on integrating resources to execute Water Environment Comprehensive Remediation projects under EPC and O&M contracts[45]. - The company aims to expand its market presence and enhance its operational efficiency through strategic investments and management practices[116]. Governance and Management - The Group has complied with all applicable provisions of the Corporate Governance Code during the year ended December 31, 2024[133]. - The Board of Directors is responsible for overseeing the Group's businesses, strategic decisions, and performance, with authority delegated to the CEO and senior management for day-to-day operations[147]. - The Company has established a corporate governance framework, ensuring compliance with the Listing Rules, including the appointment of at least three independent non-executive Directors[153]. - The Board is collectively responsible for corporate governance duties and has reviewed the Company's policies and practices on compliance with legal and regulatory requirements[169]. - The Company is committed to developing and monitoring policies on corporate governance, compliance, and ethical conduct[172]. - The Board has established three committees: the nomination committee, the remuneration committee, and the audit committee[190]. - The Nomination Committee is tasked with reviewing Board composition and assessing the independence of independent non-executive Directors[168]. - The Company ensures compliance with applicable laws and regulations through the Board's oversight and independent professional advice[195]. Human Resources - The Group had 2,285 employees as of December 31, 2024, with remuneration packages determined based on market conditions and individual performance[101]. - The attendance record for Board meetings shows full participation from most Directors, with Li Zhong, Liu Yujie, and Duan Jerry Linnan attending all 9 meetings[186]. - All Directors participated in continuous professional development, including updates on rules and regulations[180]. Environmental Commitment - The Group actively promotes a green and low-carbon culture by developing and applying new technologies in sewage treatment projects to improve energy efficiency[141]. - The Group organized a "Public Open Day for Environmental Protection Facilities" to raise public awareness of ecological environment protection and water conservation[144]. - The Group aims to achieve harmonious development of people, nature, and the environment by focusing on building an environment-friendly and resource-saving enterprise[145].
康达环保(06136) - 2024 - 年度财报