TCEPC(SH:600874)2019-03-27 16:00Financial Performance - The net profit attributable to the parent company for 2018 was RMB 501.17 million, with a statutory surplus reserve of RMB 37.20 million deducted, resulting in a distributable profit of RMB 3.44 billion[7]. - The cash dividend proposed for 2018 is RMB 1.06 per share (including tax), totaling RMB 151.29 million, which accounts for 30.19% of the distributable profit[7]. - The company reported an opening undistributed profit of RMB 2.98 billion at the beginning of the year[7]. - The company's operating revenue for 2018 was CNY 2,447.5 million, an increase of 13.93% compared to CNY 2,148.3 million in 2017[26]. - The net profit attributable to shareholders for 2018 was CNY 501.2 million, a decrease of 1.39% from CNY 508.3 million in 2017[26]. - The cash flow from operating activities for 2018 was CNY 734.3 million, down 55.20% from CNY 1,638.9 million in 2017[26]. - The total assets at the end of 2018 were CNY 15,687.4 million, representing a 25.97% increase from CNY 12,452.9 million at the end of 2017[26]. - The basic earnings per share for 2018 were CNY 0.35, a decrease of 2.78% from CNY 0.36 in 2017[28]. - The weighted average return on equity for 2018 was 9.05%, down 1.28 percentage points from 10.33% in 2017[28]. Operational Highlights - The company expanded its wastewater treatment capacity by 304,650 cubic meters per day, entering rural wastewater treatment projects[39]. - The company successfully issued CNY 1.1 billion bonds to support daily operational funding[39]. - Research and development efforts resulted in 28 projects, with 8 patents granted, including 3 inventions[39]. - The company’s main business revenue reached CNY 2,260.132 million, an increase of 16.99% year-on-year[43]. - The company is focusing on expanding its capabilities in sludge treatment, recycled water utilization, and hazardous waste disposal[38]. - The company achieved a main business revenue of 34,501 million yuan and an operating profit of 12,957 million yuan in 2018[102]. Cash Flow and Investments - Operating cash flow net amount decreased due to a lower government subsidy received compared to the previous year[46]. - Investment cash flow net amount decreased as the company's various engineering project investments exceeded the previous year's expenditures[46]. - The company reported a decrease in investment income due to lower dividends received from Tianjin Northern Talent Port Co., Ltd. compared to the previous year[46]. - The company plans to achieve a capital expenditure of 3.3 billion yuan in 2019, primarily for water project upgrades and new energy projects[108]. Risk Management and Compliance - The company emphasizes the importance of risk prevention and technology research to ensure stable and healthy development[105]. - The company is facing operational management risks due to stricter environmental standards during the "13th Five-Year Plan" period, necessitating upgrades to wastewater treatment facilities[111]. - The company aims to enhance its comprehensive risk management framework to identify, analyze, and respond to various business risks effectively[111]. - The company has established a cash dividend policy, committing to distribute at least 20% of the annual distributable profit to shareholders, with a minimum of 30% over three years[115]. Shareholder Engagement and Governance - The company must disclose the cash dividend policy and its execution status in the annual report, ensuring clarity on the standards and ratios for dividends[121]. - The supervisory board is responsible for overseeing the board's compliance with the cash dividend policy and ensuring accurate disclosure of its execution[126]. - The company has engaged PwC as its domestic auditor and PwC Hong Kong for its Hong Kong audit, both having provided services for 24 years[126]. - The company has ongoing litigation with Jiyuan Xingchuang, involving a total amount of RMB 12,030,003, which was upheld by the court after appeals[129]. Environmental Compliance - The company aims to achieve Tianjin's A-level discharge standards by August 1, 2019, as part of its compliance with environmental regulations[160]. - The company has implemented targeted technical optimization measures for wastewater treatment facilities, enhancing effluent quality[160]. - The company has adhered to national and local wastewater discharge standards, ensuring compliance with environmental regulations[155]. - The company has established emergency response plans for environmental incidents, which have been approved by local environmental authorities[162]. Future Outlook - The company plans to process no less than 1.2 billion cubic meters of wastewater in 2019, with expected revenue and cost changes not exceeding 20%[108]. - The company intends to invest no less than 18 million yuan in technology research and development in 2019, focusing on new processes and application technologies in wastewater and sludge treatment[108]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of $300 million allocated for this purpose[193]. - The company aims to achieve a 10% growth in net profit for the upcoming fiscal year, driven by strategic initiatives and market expansion[196].