Chongqing Water(SH:601158)2023-03-31 16:00Financial Performance - The company's operating revenue for 2022 was CNY 7,778,871,869.01, representing a 7.26% increase compared to CNY 7,252,254,088.48 in 2021[16]. - Net profit attributable to shareholders of the listed company decreased by 8.11% to CNY 1,909,085,670.79 from CNY 2,077,554,122.67 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 1,750,726,434.13, remaining stable compared to CNY 1,750,747,301.19 in 2021[16]. - Basic earnings per share for 2022 was CNY 0.40, a decrease of 6.98% compared to CNY 0.43 in 2021[17]. - The company reported a decrease in diluted earnings per share to CNY 0.40 in 2022, consistent with basic earnings per share[17]. - The company achieved a net profit margin of 12% for 2022, an increase from 10% in 2021, reflecting improved operational efficiency[80]. - The company reported a total revenue of 1.5 billion CNY for the fiscal year 2022, representing a year-over-year increase of 10%[81]. Cash Flow and Assets - The net cash flow from operating activities was CNY 2,694,876,520.43, a decrease of 1.46% from CNY 2,734,704,901.94 in the previous year[16]. - Total assets increased by 9.28% to CNY 31,957,520,340.33 from CNY 29,244,789,287.61 in the previous year[16]. - As of the end of 2022, the net assets attributable to shareholders of the listed company were CNY 17,073,036,315.99, an increase of 3.89% from CNY 16,434,352,469.36 at the end of 2021[16]. - The company’s total assets reached CNY 31.96 billion, reflecting a growth of approximately 9.3%[195]. - Cash and cash equivalents increased to CNY 2.82 billion from CNY 2.66 billion, reflecting a growth of about 5.3% year-over-year[193]. Market Position and Operations - The company holds approximately 55% of the drinking water market and about 86% of the sewage treatment market in Chongqing, with a combined market share of around 90% for drinking water and 95% for sewage treatment in the main urban area[27]. - The company operates 25 water treatment plants with a designed production capacity of 3.2215 million cubic meters per day and 122 sewage treatment plants with a designed treatment capacity of 4.606 million cubic meters per day[30]. - The company processed a total of 1.479 billion cubic meters of wastewater, a decrease of 0.45% year-on-year, while tap water sales volume reached 643 million cubic meters, an increase of 3.62% year-on-year[25]. - The company’s daily water supply capacity totaled 3.2215 million cubic meters, with an increase of 196,000 cubic meters, and daily wastewater treatment capacity reached 4.60595 million cubic meters, with an increase of 357,400 cubic meters[25]. Investments and Acquisitions - Total assets increased significantly due to the acquisition of seven water purification plants for CNY 3.947 billion, with CNY 2.077 billion recognized as assets[17]. - The company successfully acquired assets of seven water quality purification plants in the Kunming Dianchi Basin for 3.947 billion yuan, adding 465,000 m³/day of wastewater treatment capacity[25]. - The company participated in two capital increases for its associate, Zhongzhou Water Holdings, totaling CNY 159.9793 million, maintaining a 20% equity stake[158]. Research and Development - The company launched 76 technology projects and completed 174 innovation projects, obtaining 219 patents in 2022[26]. - The total R&D investment amounted to 453.37 million yuan, accounting for 0.06% of operating revenue, with 31.38% of the R&D investment being capitalized[46]. - Research and development efforts have increased by 25%, with a budget allocation of 100 million for new technologies in water treatment[80]. Governance and Compliance - The company held two temporary shareholder meetings and one annual shareholder meeting during the reporting period, ensuring compliance with legal requirements and protecting shareholder rights[73]. - The board of directors consists of 7 members, including 3 independent directors, all of whom fulfilled their duties diligently without any absences[73]. - The company has adhered to strict information disclosure practices, with no instances of false records or significant omissions reported[73]. - The company has established a comprehensive internal control system with 170 categorized regulations, enhancing management and risk prevention measures[107]. Future Outlook and Risks - The company aims to achieve an asset scale of 50 billion yuan and revenue exceeding 10 billion yuan by the end of 2025, with a total water supply and drainage capacity of over 9.3 million m³/day and daily sludge treatment capacity of 4,680 tons[68]. - For 2023, the company targets a revenue of 8 billion yuan and a net profit of 1.815 billion yuan[69]. - The company faces risks related to the supply of raw materials, particularly due to uneven rainfall in Chongqing, which can increase water extraction and purification costs[70]. - The company is at risk of not being able to adjust water prices in a timely manner, which could affect profitability amid rising supply costs[70]. Social Responsibility and Environmental Impact - The company actively supported rural revitalization, donating 500,000 yuan for the construction of a water plant in Shizhu Qiaotou Town[26]. - The company achieved a COD reduction of nearly 313,600 tons and an ammonia nitrogen reduction of approximately 32,800 tons in 2022[26]. - The company has adopted measures to reduce carbon emissions, including the utilization of reclaimed water and tailwater power generation[119].