Haixia Environmental Protection(SH:603817)2020-04-09 16:00Financial Performance - The company reported a total distributable profit of RMB 427,389,679.69 as of December 31, 2019[6]. - A cash dividend of RMB 0.58 per share (including tax) is proposed, amounting to a total of RMB 26,100,209.50 for all shareholders[6]. - The cash dividend payout ratio for the year is 20.06%[6]. - In 2019, the company's operating revenue reached CNY 640.55 million, an increase of 32.76% compared to CNY 482.50 million in 2018[22]. - The net profit attributable to shareholders was CNY 130.14 million, reflecting an 11.58% increase from CNY 116.64 million in 2018[22]. - The basic earnings per share rose to CNY 0.2892, up 11.57% from CNY 0.2592 in the previous year[22]. - The weighted average return on equity increased to 7.95%, a slight rise of 0.01 percentage points from 7.94% in 2018[22]. - The net cash flow from operating activities improved significantly by 57.86%, reaching CNY 223.23 million compared to CNY 141.41 million in 2018[22]. - The total assets of the company at the end of 2019 were CNY 3.97 billion, a 23.26% increase from CNY 3.22 billion at the end of 2018[22]. - The total profit reached CNY 148.67 million, reflecting a growth of 2.38% compared to the previous year[49]. Operational Highlights - The company operates 20 wastewater treatment plants with a designed capacity of 1.55 million tons per day and an actual processing capacity of 1.015 million tons per day[30]. - The sewage treatment volume was 29.72 million tons, a year-on-year increase of 16.06%[44]. - The company has expanded its business model from traditional wastewater treatment to comprehensive water environment management and solid waste resource utilization[30]. - The company has initiated commercial operations for several wastewater treatment projects, including the PPP project in the Beifeng area of Fuzhou[46]. - The company is expanding its solid waste treatment capabilities, with projects for recycling construction waste already partially operational[46]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company has outlined potential risks and countermeasures in its operational analysis section[8]. - The company is committed to ensuring the accuracy and completeness of its financial reports[5]. - The company has established an investment review committee to enhance project evaluation and risk management[47]. Environmental Compliance - The company is classified as a key pollutant discharge unit in Fujian Province, with specific measures in place to manage and report emissions[183]. - The company has established a comprehensive pollution control framework, adhering to the national pollutant discharge standards[184]. - The company has successfully obtained the new pollutant discharge permits as required by local environmental authorities[188]. - All pollution control facilities operated within legal compliance, achieving standard emissions without any environmental pollution incidents[189]. - Continuous monitoring of pollutants is conducted, with real-time data available to environmental authorities[192]. Shareholder Relations - The board of directors has approved the profit distribution plan, pending approval at the annual general meeting[6]. - The company has a profit distribution policy that aligns with regulatory requirements, ensuring clarity and stability in dividend distribution to protect minority investors' rights[123]. - The company has maintained a consistent cash dividend distribution over the past three years, with dividends of RMB 0.23, RMB 0.52, and RMB 0.58 per 10 shares in 2017, 2018, and 2019 respectively[125]. - The company is committed to a stable dividend policy, ensuring that the distribution principles and procedures are well-defined and executed[123]. Investment and Financing - The company issued CNY 460 million in convertible bonds to fund three sewage treatment plant upgrade projects, which have successfully improved effluent quality[45]. - The company plans to enhance its core competitiveness through the establishment of a smart operation platform for wastewater treatment[47]. - The company is exploring diverse financing methods to manage liquidity and debt risks associated with its capital-intensive operations[120]. - The company plans to repurchase shares using its own funds, with the total amount not exceeding 20% of the audited net profit attributable to shareholders from the previous fiscal year[135]. Market Trends - The wastewater treatment industry is expected to see stable investment growth due to increasing government support and the rising importance of ecological civilization[36]. - The company’s wastewater treatment business is positioned at the end of the industry chain, benefiting from the growing demand for water environment governance services as urbanization progresses[37]. - The wastewater treatment sector is expected to see intensified competition as the market evolves towards quality-driven projects and performance-based funding[109]. - The industry is undergoing a consolidation phase, with stronger companies likely to benefit from mergers and acquisitions to enhance their market position[111]. Social Responsibility - The company is committed to fulfilling its social responsibilities and has published a detailed social responsibility report for 2019[182]. - The company has implemented "consumption poverty alleviation" and "technology poverty alleviation" models in Gansu Province, specifically targeting the needs of the local community[177]. - The company has sent three business experts to conduct on-site research and provide technical guidance at two wastewater treatment plants in Dingxi City[178].