Greencity Water(SH:601368)2023-08-14 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 1,096,721,657.89, representing a year-on-year increase of 1.09% compared to CNY 1,084,917,636.90 in the same period last year[21]. - The net profit attributable to shareholders of the listed company decreased by 69.17% to CNY 35,583,543.61 from CNY 115,432,981.76 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 72.99% to CNY 28,434,066.00 from CNY 105,266,162.02 in the same period last year[21]. - The basic earnings per share decreased by 69.17% to CNY 0.0403 from CNY 0.1307 in the previous year[22]. - The weighted average return on net assets was 0.76%, down from 2.50% in the same period last year, a decrease of 1.74 percentage points[22]. - The total assets increased by 3.18% to CNY 19,943,786,972.13 from CNY 19,328,814,932.74 at the end of the previous year[21]. - The net cash flow from operating activities was CNY 320,540,005.94, a slight increase of 1.25% compared to CNY 316,568,874.67 in the same period last year[21]. Operational Capacity - The company has a total water supply capacity of 2.07 million cubic meters per day across 8 production units[28]. - The company increased its wastewater treatment capacity to 1.795 million cubic meters per day with the commissioning of new facilities in July 2023[29]. - In the first half of 2023, the company achieved a water sales volume of 24,123.15 million cubic meters, a year-on-year increase of 0.41%[38]. - The company processed 26,503.68 million cubic meters of wastewater, representing a year-on-year growth of 0.53%[38]. Financial Management - The company secured financing for 24 projects totaling 2.06 billion RMB, with interest rates below the current 5-year LPR[43]. - The company launched two phases of medium-term notes, raising a total of 700 million RMB during the reporting period[44]. - The company reported a financial expense of CNY 236,588,694.02 in the first half of 2023, compared to CNY 178,870,829.20 in the same period of 2022, which is an increase of about 32.3%[117]. - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for this reporting period[6]. Cost and Expense Management - The company faced increased costs due to depreciation, power costs, and sludge disposal fees, as well as a 180.15% increase in foreign exchange losses on foreign currency borrowings[23]. - Total operating costs increased to CNY 1,051,423,269.15 in the first half of 2023, compared to CNY 953,894,408.85 in the first half of 2022, marking an increase of about 10.2%[116]. - The company reported a significant increase in interest expenses, which rose to CNY 228,403,912.48 in the first half of 2023, compared to CNY 193,164,578.89 in the same period of 2022[121]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 34,601[89]. - The largest shareholder, Nanning Jianning Water Investment Group Co., Ltd., holds 450,336,273 shares, accounting for 51% of the total shares[91]. - The company has not reported any changes in its total share capital or share structure during the reporting period[88]. Environmental and Social Responsibility - The company has implemented carbon reduction measures during the reporting period, specifically using low-carbon technologies to reduce energy consumption[74]. - The company appointed 4 outstanding mid-level party members as new village secretaries to support poverty alleviation and rural revitalization efforts[75]. - The company plans to invest in water supply projects, macadamia nut planting, and improving living environments in the supported villages, with a donation budget approved for 2023[76]. Risk Management - The company faces risks related to rising costs due to increased operational expenses and potential hikes in raw water prices, which could impact profitability[55]. - The company is exposed to foreign exchange risks due to a portion of its debt being financed through foreign loans, which may affect earnings[56]. - The company has a risk of delayed settlement of sewage treatment service fees, which could lead to increased accounts receivable[57]. Corporate Governance - The company held its first temporary shareholders' meeting on January 30, 2023, to elect the fifth board of directors and supervisory board members[63]. - The company appointed Ye Guihua as the chief accountant, effective from July 19, 2023[64]. - The company has not granted any stock incentives to directors, supervisors, or senior management during the reporting period[95]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern principle, with no identified issues affecting this capability[159]. - The company follows the enterprise accounting standards, ensuring the financial statements reflect a true and complete view of its financial status as of June 30, 2023[161]. - The company assesses its continuous operation ability and has not found any factors that would impact it[159].