Jiangnan Water(SH:601199)2023-04-27 16:00Financial Performance - The net profit attributable to the parent company for 2022 was CNY 459,762,059.06, with a statutory surplus reserve of CNY 45,976,205.91 deducted, resulting in an undistributed profit of CNY 413,785,853.15[4] - The total distributable profit for 2022 was CNY 1,620,334,870.51, with a cash dividend of CNY 0.09 per share proposed, amounting to CNY 84,168,926.28 based on a total share capital of 935,210,292 shares[4] - The company reported an increase in undistributed profits from the previous year, starting with CNY 1,206,549,017.36 at the beginning of 2022[4] - The company's operating revenue for 2022 was CNY 1,268,016,553.67, representing a year-over-year increase of 13.87% compared to CNY 1,113,597,477.53 in 2021[23] - The net profit attributable to shareholders of the listed company was CNY 280,420,308.46, a slight increase of 1.45% from CNY 276,400,580.88 in the previous year[23] - The net cash flow from operating activities reached CNY 504,068,553.13, marking a 14.00% increase from CNY 442,160,096.25 in 2021[23] - The total assets at the end of 2022 were CNY 5,853,969,223.58, reflecting a 2.40% increase from CNY 5,716,490,407.50 at the end of 2021[23] - The basic earnings per share remained stable at CNY 0.30, unchanged from 2021, while the diluted earnings per share also held steady at CNY 0.30[24] - The weighted average return on equity decreased to 8.26%, down 0.39 percentage points from 8.65% in 2021[24] - The company reported a net profit of CNY 82,426,975.57 in Q4 2022, which was the highest quarterly profit for the year[26] Operational Highlights - The water supply volume for 2022 was 26,780.47 million cubic meters, a decrease of 5.52% compared to 2021[33] - The sewage treatment volume was 735.08 million cubic meters, down 6.54% year-on-year, while the sewage treatment settlement volume increased by 9.54% to 949.71 million cubic meters[33] - The company completed 99.19% of its annual water supply plan and 99.81% of its annual water sales plan[33] - The average daily water supply was 733,700 cubic meters, with a production and sales difference rate of 9.43%[33] - The company operates three surface water plants with a total designed capacity of 1.1 million tons per day[43] - The wastewater treatment capacity is 35,000 tons per day, handling industrial and domestic wastewater[46] Research and Development - The company has 5 research projects that passed acceptance and 30 ongoing research projects, including smart water supply and sewage treatment technologies[36] - The company filed for 7 new utility model patents and 3 software copyrights during the reporting period[36] - Research and development expenses increased by 43.62% to CNY 83.00 million, indicating a strong focus on innovation[57] - The company has 25 utility model patents and 17 software copyrights, enhancing its intellectual property portfolio[55] - The company is actively developing 30 ongoing research projects, including smart water treatment technologies[54] Environmental and Regulatory Compliance - The company has established a comprehensive quality management system, achieving ISO certifications without any safety quality incidents[50] - The company has implemented a technical transformation project at Huangtang Wastewater Treatment Plant, which was completed and is now operating stably as of November 2022[195] - The company employs both manual and online monitoring systems for wastewater discharge, with daily monitoring for several parameters including COD and ammonia nitrogen[198][199] - Both wastewater treatment plants reported zero instances of exceeding discharge standards in 2022[192][193] - The company has not faced any administrative penalties related to environmental issues during the reporting period[200] Governance and Management - The company has a board of directors consisting of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[146] - The company actively engages in investor relations, ensuring timely and accurate information disclosure to maintain investor trust[147] - The company has established a performance assessment system for determining the remuneration of its directors and senior management[158] - The management team includes experienced professionals with backgrounds in various sectors, enhancing the company's strategic capabilities[154] - The company has established a robust internal control system and governance structure to mitigate operational management risks as it scales[140] Future Outlook and Strategic Initiatives - The company aims to achieve 100% urban sewage treatment quality improvement by 2024, with a target of 88% centralized collection rate for urban domestic sewage[41] - The company plans to achieve an annual water supply volume of 27 million cubic meters and a sales volume of 24 million cubic meters in 2023, with a production and sales difference rate not exceeding 10% and a water fee recovery rate of no less than 98%[135] - The company is focused on enhancing its operational capabilities and brand influence in the context of high-quality development in the water industry[120] - The company is actively expanding its wastewater treatment business and participating in comprehensive water environment governance as part of the Jiangyin City ecological environment improvement plan[136] - The company is committed to achieving a 100% compliance rate for water quality and pipeline pressure in its operations[135]