WHKG(SH:600168)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,643,603,463.84, representing a 7.46% increase compared to CNY 1,529,490,559.62 in 2019[19] - The net profit attributable to shareholders of the listed company was CNY 225,766,348.69, up 3.20% from CNY 218,763,454.54 in the previous year[19] - The net cash flow from operating activities was CNY 1,124,117,634.73, reflecting a 3.66% increase from CNY 1,084,427,075.80 in 2019[19] - Total assets at the end of 2020 reached CNY 16,329,035,788.80, a 4.84% increase from CNY 15,575,553,892.38 in 2019[19] - The company's net assets attributable to shareholders increased to CNY 5,374,784,955.40, a 3.83% rise from CNY 5,176,346,966.56 in 2019[19] - Basic earnings per share for 2020 increased by 2.86% to CNY 0.36 compared to CNY 0.35 in 2019[21] - The company reported total operating revenue of 1.6436 billion yuan and a net profit of 254.57 million yuan, with net profit attributable to shareholders at 255.42 million yuan[41] - The total profit reached CNY 30.11 million, with a net profit attributable to the parent company of CNY 25.54 million, resulting in a basic earnings per share of CNY 0.36[48] Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.08 per 10 shares, totaling CNY 76,633,526.74 to all shareholders[5] - In 2020, the company distributed a cash dividend of 1.08 RMB per 10 shares, totaling approximately 76.63 million RMB, which represents 30% of the net profit attributable to ordinary shareholders[95] - In 2019, the cash dividend was 1.06 RMB per 10 shares, amounting to about 75.21 million RMB, which accounted for 30.12% of the net profit attributable to ordinary shareholders[95] - In 2018, the cash dividend was 1.19 RMB per 10 shares, totaling around 84.44 million RMB, representing 30.16% of the net profit attributable to ordinary shareholders[95] Operational Capacity and Projects - The total wastewater treatment capacity reached 301.5 thousand tons per day by the end of the reporting period[30] - The company operates ten wastewater treatment plants with a total design capacity of 286 thousand tons per day[28] - The company’s self-operated water supply capacity is 130 thousand tons per day, effectively meeting local demand[30] - The company is involved in multiple PPP projects, including a 4.5 thousand tons per day project in Xiantao, which commenced commercial operations in December 2020[29] - The company achieved a wastewater treatment capacity of 3.015 million tons per day and a water supply capacity of 1.3 million tons per day, ranking among the top in the Central China region[41] - The company plans to enhance its wastewater treatment capacity further with ongoing projects, including the expansion of the Huangjialake wastewater treatment plant[43] Environmental Compliance and Standards - The company’s wastewater treatment plants achieved a compliance rate of 100% for wastewater discharge standards during the reporting period[43] - The company’s water supply plants maintained a water quality compliance rate of 100% and a pressure compliance rate of 99.64%[43] - The company’s wastewater treatment facilities are designed to handle specific daily capacities, such as the Yidu Chengxi plant with a capacity of 10,000 tons per day, utilizing advanced treatment technologies[150] - The company has established a comprehensive environmental risk assessment and emergency resource investigation report for the Dongxihu sewage treatment plant, submitted for regulatory approval[140] - The company has implemented a dual monitoring system (manual and online) for various sewage treatment plants, ensuring compliance with national environmental protection standards[141] Market Position and Growth Opportunities - The company holds over 90% market share in water supply production in the Hankou area of Wuhan, establishing a dominant position in the region[33] - The wastewater treatment industry is expected to see significant market growth due to government initiatives aimed at improving infrastructure and environmental standards[32] - The company anticipates that the long-term impact of the COVID-19 pandemic will lead to increased investment and regulatory improvements in the wastewater treatment sector[32] - The company is focusing on integrating sewage treatment plants and pipeline networks to meet the increasing demand for systematic wastewater management[32] - The company is actively participating in the "Belt and Road" initiative to promote advanced environmental protection technologies and equipment[74] Financial Management and Investments - The company reported a significant decrease of 99.98% in tax refunds received, dropping to 4,375.46 yuan from 24,527,280.01 yuan[63] - The company has established a series of measures to ensure timely and full payment of bond interest and principal, including dedicated departments and personnel for fund management[199] - The company issued a total of CNY 870 million in green corporate bonds with a maturity of 5 years on March 12, 2020[195] - The company has utilized CNY 653,086,859.93 of the raised funds from the green corporate bonds, leaving CNY 216,913,140.07 unutilized[197] - The company has not reported any interest payment or principal repayment issues for the green corporate bonds as of the reporting date[195] Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[6] - The company is actively managing risks associated with PPP projects, focusing on risk identification, assessment, and response to ensure project feasibility and revenue realization[91] - The company faces risks from water source pollution, production costs, and stricter environmental regulations, which may impact operational stability and profitability[88] - The company will implement measures to monitor water quality and upgrade treatment processes to mitigate risks associated with water quality standards[89] Governance and Management - The board of directors and senior management confirm the accuracy and completeness of the annual report[8] - The company has appointed Zhongshun Zhonghuan Accounting Firm with an audit fee of CNY 900,000 for the year[105] - The company has established a performance evaluation mechanism for all employees, including annual target responsibility assessments for senior management[190] - The company’s governance structure complies with the requirements of the Company Law and the China Securities Regulatory Commission[186] - The company has extended the commitment period to avoid competition with its controlling shareholder for an additional five years[189] Employee and Management Structure - The total number of employees in the parent company is 325, while the total number of employees in major subsidiaries is 702, resulting in a combined total of 1,027 employees[178] - The total remuneration paid to directors, supervisors, and senior management was 3.2346 million yuan, while the actual remuneration received at the end of the reporting period was 2.9956 million yuan[175] - The company has established a training plan to enhance employees' skills and overall performance[180] - The management team includes experienced professionals with extensive backgrounds in water supply and environmental management[170] Future Outlook - For 2021, the company expects a total water supply of 30.345 million tons and a sewage treatment settlement volume of 90.481 million tons, with projected revenue of 192.04 million and net profit of 13.415 million[87] - The company aims to enhance its core competitiveness in investment, construction, operation, and service within the water industry, focusing on market-oriented strategies[86] - The company is focused on expanding its market presence and enhancing operational efficiency through strategic initiatives[171] - Future outlook includes potential growth in user base and service offerings in the water management sector[171]