城发环境(000885) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides important notices, the report's table of contents, and definitions of key terms used throughout the document Company Profile and Key Financial Indicators This section introduces the company and presents its key accounting data and financial performance metrics Company Profile Chenfa Environment Co., Ltd. (stock code: 000885) is a company listed on the Shenzhen Stock Exchange, with Huang Xinmin as its legal representative, focusing on environmental protection and related fields Company Information | Item | Information | | :--- | :--- | | Stock Abbreviation | Chenfa Environment | | Stock Code | 000885 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Huang Xinmin | Key Accounting Data and Financial Indicators During the reporting period, the company achieved operating revenue of 3.216 billion yuan, a 11.25% year-on-year increase, and net profit attributable to shareholders of 588.91 million yuan, up 20.15%, with a significant 53.91% increase in net cash flow from operating activities, indicating improved operational quality and cash flow management, alongside steady growth in total assets and net assets Key Financial Performance | Key Financial Indicators | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,216,255,605.51 | 2,891,105,587.53 | 11.25% | | Net Profit Attributable to Shareholders | 588,910,595.26 | 490,141,563.31 | 20.15% | | Net Profit Excluding Non-recurring Items | 555,428,525.02 | 483,732,213.25 | 14.82% | | Net Cash Flow from Operating Activities | 976,686,144.77 | 634,573,997.43 | 53.91% | | Basic Earnings Per Share (RMB/share) | 0.9172 | 0.7634 | 20.15% | | Weighted Average Return on Net Assets | 6.82% | 6.35% | Increase 0.47 percentage points | | Total Assets (RMB) | 31,737,261,353.30 | 30,708,012,724.39 | 3.35% (vs. prior year-end) | | Net Assets Attributable to Shareholders (RMB) | 8,837,879,761.74 | 8,476,428,196.08 | 4.26% (vs. prior year-end) | Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 33.48 million yuan, primarily from a 29.13 million yuan gain on subsidiary acquisition and 10.88 million yuan in government subsidies Non-recurring Items | Item | Amount (RMB) | | :--- | :--- | | Government Subsidies | 10,883,815.43 | | Investment Income from Acquisition of Subsidiaries | 29,134,535.31 | | Other Non-operating Income and Expenses | 4,843,555.71 | | Less: Income Tax Impact | 10,445,683.69 | | Less: Impact on Minority Interests (After Tax) | 934,152.52 | | Total | 33,482,070.24 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, core competencies, and risk factors Principal Business and Operations The company's main business covers five segments: solid waste treatment, environmental sanitation, water treatment, integrated environmental solutions, and expressways, achieving 3.216 billion yuan in revenue (up 11.25%) and 589 million yuan in net profit (up 20.15%), with profit growth outpacing revenue, driven by new project acquisitions, existing project efficiency improvements, reduced financing costs, and accelerated accounts receivable collection, with notable progress in waste-to-energy, environmental sanitation, and emerging businesses - The company's business covers solid waste treatment, environmental sanitation, water treatment, integrated environmental solutions, and expressways, forming a comprehensive environmental protection industry chain layout[26][30][31][33][34] - During the reporting period, profit growth (20.15%) outpaced revenue growth (11.25%), primarily due to four initiatives: "optimizing new" (project acquisitions), "improving existing" (refined operations), "cost reduction" (financing and technological upgrades), and "efficiency enhancement" (accelerated accounts receivable collection)[35] Core Operating Data | Core Operating Data | H1 2025 | Year-on-Year Growth | | :--- | :--- | :--- | | Waste Input (10,000 tons) | 605.57 | 5.63% | | Power Generation (10,000 kWh) | 178,798 | 7.7% | | Hazardous Waste Treatment Volume (tons) | 19,632.02 | 135.41% | | New Environmental Sanitation Single-Year Contract Value (RMB 100 million) | 4.8 | 303.36% | | Wastewater Treatment Volume (10,000 tons) | 11,692 | 102.38% | | Water Supply Volume (10,000 tons) | 6,229 | 126.6% | Analysis of Core Competencies The company's core competencies include a closed-loop environmental industry ecosystem covering the entire "collection-transport-treatment-utilization" value chain, an experienced management team with a nationwide lean operational system, a "second entrepreneurship" cultural gene activating new organizational momentum, and high-quality expressway assets providing stable cash flow to support environmental business expansion - The company has established a vertically integrated, full-industry chain layout based on industrial parks, offering systematic and comprehensive environmental governance services[41][42] - The core management team is highly experienced, and the nationwide business layout mitigates regional risks while laying a foundation for long-term development[43] - The company released "Endless Life – Chenfa Joint Action Program," refining its corporate culture and revitalizing the spirit of "second entrepreneurship"[44] - Core road and bridge assets total 255.36 kilometers with stable traffic flow, providing the company with continuous and steady cash flow, serving as a ballast for the expansion of its environmental protection main business[45] Analysis of Main Business During the reporting period, the company's main business revenue increased by 11.25%, with environmental sector revenue growing by 14.79% to 73.68% of total revenue; solid waste treatment and environmental sanitation were the largest revenue sources, up 16.13% to 58.10%, while Central China remained the primary revenue source, Northeast and Northwest regions saw the fastest growth at 57.28% and 148.32% respectively, and financial expenses decreased by 9.44% with net cash flow from operating activities surging by 53.91%, demonstrating significant cost reduction, efficiency improvement, and cash flow management Key Financial Data | Key Financial Data | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,216,255,605.51 | 2,891,105,587.53 | 11.25% | | Operating Cost | 1,879,321,182.95 | 1,643,132,882.77 | 14.37% | | Financial Expenses | 257,070,663.99 | 283,865,101.03 | -9.44% | | Net Cash Flow from Operating Activities | 976,686,144.77 | 634,573,997.43 | 53.91% | Revenue Composition | Revenue Composition (by Industry) | Current Period Amount (RMB) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Environmental Protection Industry | 2,369,888,861.33 | 73.68% | 14.79% | | Expressway Industry | 660,898,860.92 | 20.55% | 0.05% | | Revenue Composition (by Product) | | | | | Solid Waste Treatment and Environmental Sanitation Business | 1,868,716,767.84 | 58.10% | 16.13% | | Expressway Business | 652,598,754.79 | 20.29% | 1.75% | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets were 31.737 billion yuan, a 3.35% increase from the end of the previous year, with a stable asset structure where accounts receivable and short-term borrowings increased as a proportion of total assets, while long-term equity investments and long-term borrowings slightly decreased, indicating no significant changes in the overall asset and liability structure Key Asset and Liability Items | Key Asset and Liability Items | Period-End Amount (RMB) | Proportion of Total Assets | Change from Prior Year-End Proportion | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,362,255,937.44 | 4.29% | +0.94% | | Accounts Receivable | 4,715,183,505.64 | 14.86% | +2.37% | | Fixed Assets | 5,332,967,402.92 | 16.80% | -0.93% | | Short-term Borrowings | 1,182,526,499.99 | 3.73% | +2.31% | | Long-term Borrowings | 13,057,420,351.93 | 41.14% | -2.57% | Analysis of Major Holding and Participating Companies During the reporting period, key subsidiaries Henan Xupingnan Expressway Co., Ltd. and Zhengzhou Zero Carbon Technology Co., Ltd. significantly contributed to the company's performance, with Xupingnan Expressway achieving 263.59 million yuan in net profit and Zhengzhou Zero Carbon achieving 86.93 million yuan, while the company expanded its business layout through acquisitions and new subsidiary establishments Major Subsidiaries' Performance | Major Subsidiaries | Business Type | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Henan Xupingnan Expressway Co., Ltd. | Expressway Development, Operation | 664,126,377.56 | 263,592,504.01 | | Zhengzhou Zero Carbon Technology Co., Ltd. | Ecological Environmental Protection and Environmental Governance | 419,608,061.94 | 86,934,729.22 | - The company actively expanded its environmental protection and water treatment businesses through acquisitions, such as Aolande Environmental Technology Co., Ltd., and the establishment of new subsidiaries, including Chenfa Renewable Resources (Henan) Co., Ltd.[59] Risks and Countermeasures Faced by the Company The company faces key risks including industry policy changes, intensified market competition, management risks from business expansion (especially overseas), and increased accounts receivable, requiring proactive responses through model innovation, enhanced competitiveness, improved management systems, and strengthened accounts collection - Environmental protection businesses are highly dependent on national industrial policies, and policy changes such as subsidy reductions and competitive bidding for grid access may pose operational risks[60][61] - As the environmental protection industry matures, intensified market competition may increase the difficulty of securing new projects[62] - The company's rapid expansion, especially in pursuing overseas strategies, demands higher requirements for management capabilities, organizational structure, and risk control[63] - Accounts receivable increase with business scale, potentially leading to pressure on operating cash flow and bad debt risks; the company has established a special working group to address this[64] Corporate Governance, Environment, and Society This section details changes in the company's governance structure, environmental information disclosure, and social responsibilities Changes in the Company's Directors, Supervisors, and Senior Management During the reporting period, the company's board of directors, supervisory board, and senior management underwent several personnel changes, involving key positions such as Chairman, Chief Accountant, General Manager, and Deputy General Manager, primarily due to work transfers - During the reporting period, the company's Chairman changed from Bai Yang to Huang Xinmin, the Chief Accountant from Su Changjiu to Rong Jianjun, and several new Deputy General Managers were appointed[66][67] Environmental Information Disclosure The company and its 45 major subsidiaries are included in the list of enterprises required to disclose environmental information by law, demonstrating the company's strong commitment to environmental compliance and information transparency - The company and a total of 45 subsidiaries are included in the list of enterprises required to disclose environmental information by law, with query indexes provided for each enterprise[70][71][72] Significant Matters This section covers major related party transactions and significant contracts, including guarantees and entrusted operations Major Related Party Transactions During the reporting period, the company engaged in multiple related party transactions related to daily operations, primarily involving procurement from, sales to, provision and acceptance of services with, and asset leasing from related parties, all conducted at market prices and within approved annual limits - The company's ordinary related party transactions primarily occur with entities controlled by the same parent company (Henan Investment Group), covering various aspects such as procurement, sales, labor services, and leasing[81][82][83] Related Party Transaction Details | Type of Related Party Transaction | Amount of Related Party Transaction (RMB 10,000) | Proportion of Similar Transactions | | :--- | :--- | :--- | | Procurement of Goods/Services from Related Parties | 15.44 | - | | Sales of Goods/Services to Related Parties | 1,161.20 | - | | Acceptance of Services from Related Parties | 14,254.40 | - | | Related Party Lease (Lessee) | 328.55 | - | | Related Party Lease (Lessor) | 653.44 | - | Major Contracts and Their Performance During the reporting period, the company had a significant entrusted management business where its wholly-owned subsidiary, Environmental Energy, managed Chenfa Environmental Energy (Zhengzhou) Co., Ltd.'s waste-to-energy project, alongside major external guarantees, primarily a 1.5 billion yuan joint liability guarantee for its controlling shareholder, Henan Investment Group, and guarantees for its subsidiary Chenfa Environmental Energy Co., Ltd - The company's wholly-owned subsidiary, Environmental Energy, is entrusted with managing the waste-to-energy project of related party Chenfa Environmental Energy (Zhengzhou) Co., Ltd., to avoid horizontal competition and achieve specialized management[94] Guarantee Status | Guarantee Status | Amount (RMB 10,000) | Remarks | | :--- | :--- | :--- | | Total External Guarantee Balance | 151,700 | Of which, guarantee for controlling shareholder Henan Investment Group 150,000 | | Total Guarantee Balance for Subsidiaries | 18,688.8 | - | | Proportion of Actual Total Guarantee Amount to Company's Net Assets | 19.28% | - | Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Changes During the reporting period, the company's total share capital remained unchanged at 642,078,255 shares, all of which are unrestricted RMB ordinary shares - The company's total share capital remained unchanged during the reporting period, maintaining 642.08 million shares[104] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 20,812 ordinary shareholders, with the top three being Henan Investment Group Co., Ltd. (56.47% stake), China United Cement Group Co., Ltd. (9.72% stake), and Great Wall Life Insurance Co., Ltd. (6.64% stake), indicating a relatively concentrated equity structure Top Three Shareholders | Top Three Shareholders | Shareholder Nature | Shareholding Proportion | Number of Shares Held | | :--- | :--- | :--- | :--- | | Henan Investment Group Co., Ltd. | State-owned Legal Person | 56.47% | 362,579,146 | | China United Cement Group Co., Ltd. | State-owned Legal Person | 9.72% | 62,400,000 | | Great Wall Life Insurance Co., Ltd. - Own Funds | Other | 6.64% | 42,625,218 | - The controlling shareholder, Henan Investment Group Co., Ltd., pledged its held 120 million shares of the company's stock[107] Bond-Related Information This section provides details on the company's outstanding corporate bonds and non-financial enterprise debt financing instruments Corporate Bonds During the reporting period, the company had two outstanding corporate bonds totaling 1 billion yuan, including "24 Chenfa D1," a short-term bond with a 500 million yuan balance and 2.14% interest rate, and "25 Environment 01," a 3-year bond with a 500 million yuan balance and 1.88% interest rate Corporate Bond Details | Bond Abbreviation | Bond Balance (RMB 10,000) | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | | 24 Chenfa D1 | 50,000 | 2.14% | 2025年08月14日 | | 25 Environment 01 | 50,000 | 1.88% | 2028年07月10日 | Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had two outstanding non-financial enterprise debt financing instruments totaling 1 billion yuan, comprising one tranche of super short-term commercial paper and one tranche of green medium-term notes, with interest rates of 1.81% and 2.10% respectively Non-Financial Enterprise Debt Financing Instrument Details | Bond Abbreviation | Bond Balance (RMB 10,000) | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | | 25 Chenfa Environment SCP001 | 50,000 | 1.81% | 2025年10月12日 | | 25 Chenfa Environment MTN001 | 50,000 | 2.10% | 2028年04月24日 | Financial Report This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and detailed notes Financial Statement Summary The financial statements indicate steady growth in total assets and owner's equity, with double-digit increases in total operating revenue and net profit; net cash flow from operating activities significantly improved, reflecting enhanced core business cash generation, while investing activities showed a net outflow primarily for fixed asset acquisition and external investments, and financing activities recorded a net inflow mainly from issuing notes and obtaining borrowings to meet development funding needs Consolidated Balance Sheet Summary | Consolidated Balance Sheet Summary (RMB) | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 31,737,261,353.30 | 30,708,012,724.39 | | Total Liabilities | 21,785,441,525.67 | 21,150,976,492.16 | | Total Owner's Equity | 9,951,819,827.63 | 9,557,036,232.23 | Consolidated Income Statement Summary | Consolidated Income Statement Summary (RMB) | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 3,216,255,605.51 | 2,891,105,587.53 | | Total Profit | 831,392,670.27 | 693,578,727.14 | | Net Profit | 644,238,131.51 | 559,859,927.09 | Consolidated Cash Flow Statement Summary | Consolidated Cash Flow Statement Summary (RMB) | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 976,686,144.77 | 634,573,997.43 | | Net Cash Flow from Investing Activities | -713,002,121.72 | -821,837,011.92 | | Net Cash Flow from Financing Activities | 70,224,581.86 | 37,661,000.88 | | Net Increase in Cash and Cash Equivalents | 333,908,604.91 | -149,602,013.61 | Notes to Consolidated Financial Statements Notes to the financial statements detail the composition and changes of various accounting items, with accounts receivable increasing by 24.75% to 4.979 billion yuan at period-end, primarily for items within one year, and intangible assets, mainly concession rights, being the company's most significant asset with a book value of 16.473 billion yuan; the acquisition of Aolande Environmental Technology Co., Ltd. changed the scope of consolidation, increasing the company's asset and liability scale - The period-end book balance of accounts receivable was 4.979 billion yuan, an increase of nearly 1 billion yuan from the beginning of the period, with approximately 59% of the accounts being within one year[281] - The original book value of intangible assets was 18.534 billion yuan, with concession rights accounting for over 97%, making them the company's core assets[351] - During the reporting period, the company acquired an 85% equity stake in Aolande Environmental Technology Co., Ltd. for 357 million yuan in cash; the acquisition cost was less than the fair value share of identifiable net assets, resulting in a non-recurring gain of 29.13 million yuan[479][481] Other Submitted Data This section includes information on investor relations activities and other data submitted by the company Investor Relations Activities During the reporting period, the company actively engaged with the capital market, communicating with small and medium investors, institutions, and media through on-site visits and online platforms regarding its 2024 annual performance and recent operational status - The company held two investor reception events in May 2025, conducted as on-site research and online communication, primarily discussing annual performance and company operations[597]