WHKG(SH:600168)2019-10-30 16:00Company Profile and Financial Overview The company's first three quarters of 2019 saw steady growth in operating revenue and net profit, significant asset expansion driven by investments, and a stable controlling shareholder structure Key Financial Data As of September 30, 2019, the company reported significant growth in total assets, operating revenue, and net profit for the first three quarters, with non-recurring gains primarily from government subsidies Financial Performance Summary | Indicator | Year-to-Date (Jan-Sep) | Prior Year-to-Date (Jan-Sep) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,154,326,955.60 | 1,050,242,241.29 | 9.91% | | Net Profit Attributable to Shareholders (RMB) | 252,796,061.93 | 227,593,331.13 | 11.07% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 229,677,137.66 | 205,331,105.66 | 11.86% | | Net Cash Flow from Operating Activities (RMB) | 301,146,630.90 | 265,103,199.09 | 13.60% | | Basic Earnings Per Share (RMB/share) | 0.36 | 0.32 | 12.50% | | Weighted Average Return on Net Assets (%) | 4.98% | 4.68% | Increased by 0.30 percentage points | | Balance Sheet Indicators | As of Report Period End | As of Prior Year End | Change (%) | | Total Assets (RMB) | 15,132,365,910.94 | 12,891,937,349.07 | 17.38% | | Net Assets Attributable to Shareholders (RMB) | 5,179,868,244.22 | 4,995,477,513.94 | 3.69% | - Year-to-date (Jan-Sep), the company's total non-recurring gains and losses amounted to RMB 23.1189 million, primarily comprising RMB 21.4844 million in government subsidies10 Shareholder Structure As of the report period end, the company had 34,694 shareholders, with Wuhan Water Group Co., Ltd. as the controlling shareholder, and Beijing Originwater Technology Co., Ltd. and China Three Gorges Capital Holdings Co., Ltd. as the second and third largest shareholders Top Shareholders | Shareholder Name | Number of Shares Held | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Wuhan Water Group Co., Ltd. | 391,536,000 | 55.18 | | Beijing Originwater Technology Co., Ltd. | 35,731,092 | 5.04 | | China Three Gorges Capital Holdings Co., Ltd. | 34,768,416 | 4.90 | Significant Events During the reporting period, the company's financial position saw significant changes due to project investments, financing, and accounting policy shifts, alongside key business developments including a major equity transfer, management changes, and subsidiary financing guarantees Analysis of Significant Changes in Key Financial Indicators Several financial statement items showed significant changes from the beginning of the year, with substantial increases in assets driven by new borrowings and project investments, and increased liabilities reflecting intensified financing for construction, with some changes also due to the initial adoption of new financial instrument standards - Cash, long-term borrowings, and notes payable increased by 52.37%, 61.87%, and 424.10% respectively from the beginning of the year, primarily due to increased bank borrowings and bill financing to meet production and construction funding needs1415 - Intangible assets increased by 63.93% from the beginning of the year, mainly because the company's BOT projects commenced operations, reclassifying concession rights into intangible assets14 - Long-term equity investments increased by 39.45% due to the current period's investment in China Construction Wuhan Huangxiaoriver Airport River Water Environment Comprehensive Treatment Construction and Operation Co., Ltd14 - Available-for-sale financial assets decreased by 100%, while other equity instrument investments and other comprehensive income increased by 100% and 133.12% respectively, primarily due to the reclassification of original available-for-sale financial assets upon adoption of new financial instrument standards1415 Progress of Significant Matters During the reporting period, the company saw three significant developments: the controlling shareholder's proposed 15% equity transfer (approved by SASAC), a change in financial controller, and the provision of a 100% joint and several liability guarantee for a subsidiary's PPP project financing - Controlling shareholder Wuhan Water Group Co., Ltd. plans to transfer 15% of the company's shares to China Yangtze River Ecology and Environment Group Co., Ltd., a matter approved by Wuhan SASAC in July 201917 - To facilitate financing for the Huangmei County Township Wastewater Treatment Facilities PPP project, the company provided a 100% joint and several liability guarantee for the bank loans of its controlling subsidiary, Huangmei Jize Water Environment Technology Co., Ltd1718 Financial Statements and Notes This appendix provides the company's unaudited consolidated and parent financial statements as of September 30, 2019, and details adjustments made to the 2019 opening financial statements due to the initial adoption of new financial instrument standards, primarily involving financial asset reclassification Financial Statement Overview This section includes the company's unaudited consolidated and parent company's three major financial statements, comprehensively reflecting the financial position as of September 30, 2019, and the operating results and cash flow for the first three quarters of 2019 - The appendix provides unaudited consolidated and parent company financial statements: Balance Sheet, Income Statement, and Cash Flow Statement192428343739 Impact of Accounting Policy Changes Effective January 1, 2019, the company adopted new financial instrument standards, adjusting opening financial statements primarily by reclassifying equity investments from 'available-for-sale financial assets' to 'other equity instrument investments' measured at fair value, with changes recognized in 'other comprehensive income' - The company adopted the Ministry of Finance's revised accounting standards for financial instruments effective January 1, 2019, adjusting the opening financial statements without requiring adjustments to prior comparative data4549 Adjustments to Consolidated Financial Statements | Adjustment Item (Consolidated Statement) | Before Adjustment (2018-12-31) (RMB) | After Adjustment (2019-01-01) (RMB) | Change Amount (RMB) | | :--- | :--- | :--- | :--- | | Available-for-Sale Financial Assets | 5,000,000.00 | 0 | -5,000,000.00 | | Other Equity Instrument Investments | 0 | 24,175,900.00 | 24,175,900.00 | | Other Comprehensive Income | 14,405,256.52 | 33,581,156.52 | 19,175,900.00 | | Retained Earnings | 2,524,177,682.07 | 2,521,035,243.77 | -3,142,438.30 |