Chongqing Water(SH:601158)2022-04-01 16:00Financial Performance - The company's operating revenue for 2021 was CNY 7,252,254,088.48, representing a 14.22% increase compared to CNY 6,349,599,844.62 in 2020[17]. - Net profit attributable to shareholders was CNY 2,077,554,122.67, up 17.13% from CNY 1,773,730,161.83 in the previous year[17]. - The net cash flow from operating activities increased by 18.83% to CNY 2,734,704,901.94 from CNY 2,301,313,982.25 in 2020[17]. - Basic earnings per share rose to CNY 0.43, a 16.22% increase from CNY 0.37 in 2020[18]. - The weighted average return on equity increased to 13.15%, up 1.58 percentage points from 11.57% in 2020[18]. - The total assets at the end of 2021 were CNY 29,244,789,287.61, reflecting a 19.20% increase from CNY 24,534,292,342.35 in 2020[17]. - The company reported a quarterly revenue of CNY 2,134,490,026.21 in Q3 2021, the highest among the four quarters[20]. - The company achieved a total revenue of 7.252 billion yuan, an increase of 14.22% year-on-year, and a net profit of 2.078 billion yuan, up 17.13% year-on-year[26]. - The company's total assets reached 29.245 billion yuan, a 19.20% increase from the previous year, while net assets (excluding minority interests) rose by 5.87% to 16.434 billion yuan[26]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 123.36 million, which is RMB 2.57 per 10 shares based on a total share capital of 4.8 billion shares as of December 31, 2021[4]. - The company has not proposed any bonus shares or capital reserve transfers in the profit distribution plan[4]. - The company has a cash dividend policy that mandates distributing no less than 60% of the distributable profits to shareholders[110]. Audit and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[3]. - The company emphasizes the importance of the accuracy and completeness of the financial report, with key personnel affirming its integrity[3]. - The company has maintained strict compliance with information disclosure regulations, ensuring no false records or significant omissions occurred during the reporting period[1]. - The internal control audit report issued by Tianzhi International Accounting Firm provided a standard unqualified opinion[114]. - The company has not reported any significant deficiencies in internal controls during the reporting period[113]. Environmental and Social Responsibility - The company reduced COD emissions by approximately 317,100 tons and ammonia nitrogen by about 30,800 tons, demonstrating its commitment to environmental responsibility[27]. - The company actively participated in social responsibility initiatives, including donating 28 tons of drinking water to flood-affected areas and supporting rural revitalization efforts with financial contributions[27]. - The company has established a comprehensive environmental self-monitoring plan, regularly monitoring wastewater, odor, and noise[121]. - The company has received no administrative penalties for environmental issues during the reporting period[123]. Market Position and Expansion - The company holds approximately 54% of the tap water market and about 83% of the sewage treatment market in the main urban area of Chongqing[29]. - The company aims to expand its water service operations to provinces such as Sichuan, Yunnan, Hubei, and Henan, targeting a comprehensive service provider status in the domestic water industry[29]. - The company is positioned to leverage the increasing market demand and regulatory support for environmental protection and sewage treatment services[30]. - The company is actively involved in multiple water investment projects across various cities, showcasing its market expansion strategy[90]. Research and Development - The company launched 39 new research and innovation projects and implemented 16 research topics, focusing on technological advancements and digital transformation[27]. - The company is focusing on digital transformation and technology innovation, implementing a "smart water" initiative using big data and cloud computing[32]. - The company reported a total R&D investment of ¥565.58 million, accounting for 0.08% of total revenue, with 43.97% of the R&D costs capitalized[47]. Governance and Management - The company’s board of directors consists of 7 members, including 3 independent directors, and all directors fulfilled their duties diligently without any absences[1]. - The supervisory board comprises 5 members, including 2 employee representatives, and has conducted regular meetings to oversee the company's operations and financial compliance[1]. - The company has established a performance evaluation mechanism for senior management, focusing on performance contributions and market benchmarks[112]. - The company has implemented a performance assessment system for determining annual remuneration based on operational performance and major shareholder opinions[93]. Financial Stability and Risk Management - The company’s asset-liability ratio was 43.57%, an increase of 7.12 percentage points from the previous year, primarily due to the issuance of 1 billion yuan in corporate bonds and increased bank loans[26]. - The company has maintained a focus on financial stability and risk management in its investment strategies[167]. - The company has provided guarantees totaling RMB 22,921.87 million, including those to subsidiaries, with RMB 14,139.78 million in guarantees to subsidiaries during the reporting period[162]. Legal and Regulatory Matters - The company has ongoing significant litigation related to a construction contract dispute, with a claim amounting to CNY 33,500,000[145]. - The arbitration process for the construction contract dispute has involved multiple hearings and evidence submissions, with the latest hearing occurring in October 2021[146]. - The company maintains a good integrity status, with no significant debts or court judgments outstanding during the reporting period[148]. Strategic Acquisitions and Investments - The company has established a joint venture, Chongqing Quality Water Supply Co., Ltd., with a total investment of 10,000,000 CNY, where the company holds a 49% stake[157]. - The company has invested RMB 10 billion to establish a drainage network company with Changjiang Ecological Environmental Group, holding 40% of the shares[169]. - The company has completed the acquisition of sewage treatment assets for RMB 10,376.06 million in Qianjiang District[168].