Customer and Supplier Concentration - For the year ended December 31, 2022, the group's sales to the top five customers accounted for 88.3% of total sales, a slight decrease from 88.9% in 2021[1] - The sales to the largest customer represented 29.7% of total sales, compared to 29.6% in 2021[1] - The procurement amount from the top five non-construction suppliers accounted for 77.5% of total non-construction procurement, down from 86.6% in 2021[1] - The procurement amount from the largest non-construction supplier was 22.4% of total non-construction procurement, compared to 28.1% in 2021[1] - The procurement amount from the top five construction-related suppliers was approximately RMB 289.6 million, down from RMB 448.2 million in 2021[1] Share Capital and Shareholder Information - The issued share capital of the company as of December 31, 2022, was 200,000,000 shares, consisting of 150,000,000 domestic shares and 50,000,000 H shares[1] - The company maintained a minimum public float of 25% in accordance with listing rules[4] - Major shareholders hold 25.00% of H shares, equating to 12,500,000 shares each, representing approximately 6.25% of the total issued shares[15] Governance and Compliance - The company has no significant relationships among directors, supervisors, and senior management[7] - There are no service contracts that are unbreakable within one year for directors or supervisors[8] - The company has maintained compliance with the relevant laws and regulations during the reporting period, ensuring proper governance and oversight[30] - The company has adopted corporate governance codes to ensure high standards of governance and protect shareholder interests[62] - The board of directors has established mechanisms to ensure independent viewpoints are provided[68] Financial Performance - Total revenue for 2022 was RMB 542,659,000, an increase of 4.3% from RMB 520,279,000 in 2021[183] - Gross profit decreased to RMB 211,279,000, down 6.7% from RMB 226,601,000 in the previous year[183] - Net profit for the year was RMB 57,754,000, a decline of 57.2% compared to RMB 134,991,000 in 2021[183] - Basic and diluted earnings per share were RMB 0.28, down from RMB 0.60 in the previous year[183] - The company's net assets increased to RMB 1,166,571,000, up from RMB 1,130,368,000 in 2021[186] Cash Flow and Financial Position - Cash flow from investing activities decreased to RMB (457,593) thousand in 2022 from RMB (934,487) thousand in 2021, a reduction of approximately 51%[41] - Cash flow from financing activities decreased to RMB 291,794 thousand in 2022 from RMB 649,404 thousand in 2021, a decline of about 55%[41] - Cash and cash equivalents increased by RMB 79,047 thousand in 2022, compared to a decrease of RMB (39,649) thousand in 2021[41] - The total cash and cash equivalents at the end of 2022 amounted to RMB 269,759 thousand, up from RMB 190,699 thousand at the end of 2021, representing an increase of approximately 42%[41] Related Party Transactions - The company entered into a water supply framework agreement with Huangyan Water on October 27, 2019, which has a renewal period until December 31, 2021, and was further extended on September 1, 2021[18] - The company established a new water supply framework agreement with Yuhuan Water on December 28, 2022, effective from December 1, 2022, until December 31, 2024[24] - The company also signed a water supply agreement with Wenling Water on December 28, 2022, with the same effective dates as the Yuhuan agreement[25] - The annual cap for the related party transactions under the 2021 Huangyan Water framework agreement was approved by independent shareholders at a special general meeting held on October 27, 2021[20] Internal Control and Risk Management - The company has established a strong internal control system to ensure the effectiveness of its financial reporting processes[38] - The internal audit department conducts audits on the authenticity, legality, and effectiveness of the group's economic activities and financial expenditures[100] - The audit committee has been actively involved in overseeing the financial reporting process, ensuring transparency and accountability[148] Employee and Board Diversity - As of December 31, 2022, the gender ratio of employees (including senior management) was 157 males to 80 females, reflecting the company's commitment to diversity in hiring[130] - The company has adopted a board diversity policy to ensure a balanced mix of skills and experiences among board members[92] - The company is implementing a gender diversity policy in recruitment to cultivate potential female successors for the board[93] Training and Development - The company organized training courses for all directors covering topics such as director duties, continuous related transactions, and regulatory updates[110] - The company emphasizes the importance of continuous professional development for directors to keep their knowledge and skills updated[110] - The company provided formal and comprehensive onboarding training for each new director to ensure understanding of business operations and responsibilities[110] Audit and Financial Reporting - The company's financial statements for the year ended December 31, 2022, were audited by Ernst & Young[62] - The total fees paid or payable to Ernst & Young for audit and non-audit services during the reporting period are detailed in the report[103] - The audit committee reviewed the company's accounting policies and internal control matters for the year ended December 31, 2022[62]
台州水务(01542) - 2022 - 年度财报