TCEPC(SH:600874)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was RMB 212,928.9 million, an increase of 11.84% compared to RMB 190,395.4 million in the same period last year[21]. - The net profit attributable to shareholders of the listed company reached RMB 39,636.3 million, reflecting a growth of 30.17% from RMB 30,448.9 million year-on-year[21]. - The net profit after deducting non-recurring gains and losses was RMB 36,190.3 million, which is a 36.90% increase compared to RMB 26,435.2 million in the previous year[21]. - Basic earnings per share for the first half of 2022 were RMB 0.28, up 30.52% from RMB 0.21 in the same period last year[21]. - The diluted earnings per share also stood at RMB 0.28, reflecting the same percentage increase of 30.52% compared to the previous year[21]. - The weighted average return on net assets was 5.49%, an increase of 0.92 percentage points from 4.57% in the previous year[21]. - The company reported a significant increase in the weighted average return on net assets after deducting non-recurring gains and losses, which rose to 5.02% from 3.97% year-on-year, an increase of 1.05 percentage points[24]. - The company achieved operating revenue of CNY 212,928.9 million, an increase of 11.84% compared to the previous year[36]. - Net profit attributable to the parent company reached CNY 39,636.3 million, up 30.17% year-on-year[36]. - The wastewater treatment business generated revenue of CNY 154,817.9 million, growing by 12.07% compared to the same period last year[36]. Cash Flow and Assets - The net cash flow from operating activities was RMB 32,240.5 million, showing a decrease of 53.24% from RMB 68,947.5 million in the same period last year[21]. - The total assets at the end of the reporting period were RMB 2,145,459.8 million, an increase of 1.85% from RMB 2,106,529.2 million at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were RMB 731,139.9 million, which is a 2.69% increase from RMB 712,019.8 million at the end of the previous year[21]. - The company's cash flow from operating activities decreased by 53.24% to CNY 32,240.5 million compared to the previous year[36]. - The company's total assets include CNY 8,981.3 million in prepayments, representing 0.42% of total assets, a significant increase of 331.09% year-on-year[39]. - The current ratio improved to 1.56, up 3.31% from 1.51 at the end of the previous year, attributed to an increase in accounts receivable[104]. - The debt-to-asset ratio was 61.25%, slightly down by 0.28% from 61.53% at the end of the previous year, indicating stability in the company's financial structure[104]. - The interest coverage ratio increased to 3.88, a 16.17% improvement from 3.34 in the same period last year, reflecting higher total profits[104]. Investments and Research - The company plans to invest no less than CNY 38.15 million in technology research and development for wastewater and sludge treatment[36]. - Research and development expenses increased by 76.74% to CNY 655 million due to higher investment in personnel and materials[36]. - Research and development expenses increased significantly to 937 thousand RMB in the first half of 2022, compared to only 5 thousand RMB in the same period of 2021[135]. Environmental and Social Responsibility - The company aims to improve rural sewage treatment rates to 40% by 2025, as part of national environmental policies[31]. - The company has been recognized as one of the "Top Ten Influential Enterprises in China's Water Industry" for 17 consecutive years, enhancing its brand reputation[32]. - The company donated RMB 2.95 million to support poverty alleviation and rural revitalization efforts in Tianjin, with RMB 800,000 allocated in 2022 and RMB 2.15 million planned for 2023[73]. - The company has implemented environmental self-monitoring in compliance with national requirements, with monitoring results publicly disclosed on local environmental information platforms[70]. - The company’s wastewater treatment projects have met the national and local discharge standards, ensuring compliance with environmental regulations[65]. Business Operations - The total scale of the company's wastewater, water supply, and reclaimed water business reached approximately 5.6046 million cubic meters per day, with PPP model wastewater treatment capacity at about 4.8696 million cubic meters per day[27]. - The company operates under various business models including BOT, TOT, and PPP for its core wastewater treatment and water supply services[27]. - The company has a hazardous waste disposal capacity of 128,000 tons per year across four projects, with a market-oriented pricing model for services provided mainly in Shandong and Jiangsu provinces[30]. - The company has a sludge disposal capacity of 2,970 tons per day, with operations mainly in Tianjin, Gansu, and Zhejiang[30]. - The company is actively promoting water projects and developing new energy businesses in response to the national "dual carbon" strategy[32]. - The company has expanded its recycled water business, focusing on the development, construction, and operation of recycled water utilization projects[180]. Financial Management and Risks - The company faces risks related to government credit, policy changes, and operational management, which could impact cash flow and financial stability[50]. - The company emphasizes the importance of legal compliance and risk management to mitigate potential financial risks[53]. - The company has approved a guarantee for loans to Tianjin Zhongshui Company, indicating ongoing financial support for its subsidiaries[55]. - The total amount of guarantees provided by the company (including those to subsidiaries) is CNY 536,617.90 million, accounting for 73.39% of the company's net assets[83]. - The company provided guarantees totaling CNY 104,500.00 million to subsidiaries during the reporting period[83]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 62,075[88]. - The largest shareholder, Tianjin Municipal Investment Co., Ltd., holds 715,565,186 shares, representing 50.14% of the total shares[88]. - HKSCC Nominees Limited holds 337,954,810 shares, accounting for 23.68% of the total shares[89]. - The top ten shareholders collectively hold 9.841% of the company's total share capital, with no pledges on their shares[95]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[95]. Compliance and Accounting - The financial statements for the first half of 2022 were approved by the board on August 31, 2022, reflecting the company's financial performance[186]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that its financial reports accurately reflect its financial status and operational results[193]. - The accounting period for the company runs from January 1 to December 31, with the current financial report covering January 1 to June 30, 2022[194]. - The company includes all subsidiaries in its consolidated financial statements, starting from the date of actual control acquisition[197].