QJSL(SH:600283)2019-04-03 16:00Financial Performance - The company achieved a net profit attributable to shareholders of CNY 57,978,487.43 in 2018, representing a decrease of 20.13% compared to CNY 72,590,347.68 in 2017[5]. - The total operating revenue for 2018 was CNY 1,067,746,400.89, an increase of 8.81% from CNY 981,292,457.32 in 2017[20]. - Basic earnings per share decreased to CNY 0.16 in 2018 from CNY 0.21 in 2017, reflecting a decline of 23.81%[22]. - The company reported a decrease in net assets attributable to shareholders to CNY 1,809,473,636.13 at the end of 2018, down by 0.83% from CNY 1,824,666,872.97 at the end of 2017[21]. - The company experienced a significant drop in net profit after deducting non-recurring gains and losses, which fell to CNY 31,159,079.82, a decrease of 32.95% from CNY 46,469,217.57 in 2017[20]. - The company reported a negative retained earnings balance of CNY -33,727,090.30 at the end of 2018, indicating no available profits for distribution to shareholders[5]. - The weighted average return on equity decreased to 3.19% in 2018 from 4.09% in 2017, a decline of 0.90 percentage points[22]. - The company’s net profit attributable to the parent company for 2018 was CNY 57.98 million, a decrease of 20.13% compared to CNY 72.59 million in the previous year[51]. Cash Flow and Investments - The net cash flow from operating activities rose by 38.74% to CNY 398,920,865.66 in 2018, up from CNY 287,537,180.39 in 2017[21]. - The investment activities generated a net cash outflow of CNY -325,280,635.84, a significant decrease of 145.27% compared to the previous year, mainly due to increased expenditures on water plant construction[38]. - The company reported a decrease in investment income by 98.60% to CNY 7,511,221.27, attributed to the previous year's gains from equity transfer of a real estate subsidiary[38]. - The company’s total assets impairment loss significantly decreased by 99.36% to CNY 1,937,805.26, primarily due to last year's recognition of impairment losses related to the disposal of real estate subsidiary debts[38]. - The company’s financing activities resulted in a net cash outflow of CNY -11,140,742.59, a reduction of 98.93% compared to the previous year, mainly due to decreased bank loan repayments[38]. Operational Capacity and Performance - The company achieved a total water supply design capacity of 1.61 million tons per day, with a total wastewater treatment capacity of 310,000 tons per day[29]. - In 2018, the company sold 34,752,000 tons of water, an increase of 1,949,000 tons or 5.94% compared to the previous year[35]. - The wastewater treatment volume reached 10,571,000 tons in 2018, representing a year-on-year increase of 1,051,000 tons or 11.04%[35]. - The company's operating revenue for the water supply and treatment segment was CNY 1,033,351,097.76, with an operating cost of CNY 648,366,683.78, resulting in a gross margin of 37.26%, which decreased by 1.02 percentage points year-on-year[41]. - The gross margin for the water supply segment decreased by 0.15 percentage points to 37.02%[41]. Market Position and Strategy - The company is the only listed enterprise in Zhejiang Province focused on water services, benefiting from strong market operation capabilities and resource advantages[31]. - The company aims to transition from an investment management model to an investment operation model, enhancing internal management and risk control[34]. - The company has expanded its operations through acquisitions, including several water supply and wastewater treatment companies, enhancing its market competitiveness[32]. - The company is responding to increasing demands for water quality standards and urban water supply safety, presenting both challenges and opportunities in the water services industry[30]. - The company plans to enhance its market expansion and investment decision control to mitigate business expansion risks due to increasing competition in the water service market[83]. Social Responsibility and Community Engagement - The company has engaged in targeted poverty alleviation efforts, providing a total of 179,500 RMB to various villages and students in 2018[111]. - The company has provided 50,000 RMB for village construction in various locations as part of its social responsibility initiatives[111]. - The company has actively participated in social responsibility efforts, including environmental protection and community support initiatives[115]. Corporate Governance and Management - The current auditor is Tianjian Accounting Firm, with an audit fee of RMB 700,000 for the year[96]. - The company has implemented a performance-based salary system for employees, linking compensation to work ability and contributions[170]. - The board of directors and supervisory board underwent a complete re-election during the reporting period[167]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.9727 million yuan[166]. Future Outlook and Guidance - The management team highlighted plans for market expansion in the upcoming fiscal year, targeting a 15% increase in market share[160]. - Future guidance indicates a projected revenue growth of 10% for the next fiscal year[160]. - The company plans to enhance customer service capabilities, aiming for a 20% improvement in customer satisfaction scores[160]. - The management emphasized the importance of technological advancements in driving future growth[160].