ZPUG(SZ:000685)2019-04-23 16:00Financial Performance - The company's operating revenue for 2018 was ¥2,021,725,305.08, representing a 14.88% increase compared to the adjusted revenue of ¥1,759,843,667.51 in 2017[21]. - The net profit attributable to shareholders for 2018 was ¥686,463,263.42, a decrease of 36.58% from the adjusted net profit of ¥1,082,426,473.33 in 2017[21]. - The basic earnings per share for 2018 was ¥0.47, down 36.58% from ¥0.73 in 2017[24]. - The total assets at the end of 2018 were ¥17,143,654,004.32, reflecting a 7.26% increase from ¥15,983,675,652.39 at the end of 2017[24]. - The net assets attributable to shareholders at the end of 2018 were ¥12,280,474,160.72, a 1.24% increase from ¥12,129,547,987.88 at the end of 2017[24]. - The net profit after deducting non-recurring gains and losses was CNY 623 million, down 39.17% year-on-year[66]. - The total revenue for the company reached 186,316.37 million RMB, with a significant increase compared to the previous period[121]. - In 2018, the company achieved total revenue of 2.037 billion yuan, a year-on-year increase of 15.74%[168]. - The net profit attributable to shareholders was 686 million yuan, a year-on-year decrease of 36.58%[168]. Cash Flow and Dividends - The company reported a cash dividend of 1.39 RMB per 10 shares (including tax) based on a total of 1,475,111,351 shares[6]. - The cash dividend payout ratio for 2018 was 29.87%, with a total net profit attributable to ordinary shareholders of 686,463,263.42 CNY[189]. - The company has a policy to distribute at least 30% of the annual distributable profit as dividends, with a minimum cash dividend ratio of 20%[181]. - The company reported a negative cash flow from operating activities for two consecutive years, which restricts high dividend payouts[181]. - The cash dividend distribution will be implemented within two months after the annual general meeting approval[190]. - The total distributable profit for the year is 4,386,792,955.89 CNY, with cash dividends accounting for 100% of the profit distribution[190]. - The remaining undistributed profit after the dividend distribution will be 4,181,752,478.10 CNY, which will be carried forward to future distributions[190]. Investments and Acquisitions - The company acquired Mingcheng Technology during the reporting period, which was accounted for under the same control, leading to retrospective adjustments in financial data[23]. - The company acquired 95.50% of Guangdong Mingcheng Environmental Technology Co., Ltd. for ¥236,062,917.00, with a payment of ¥157,375,282.00 made by the end of 2018[87]. - The company completed a cash acquisition of 95.50% of Guangdong Mingcheng Environmental Technology Co., for CNY 23,606,291.70, with additional shares acquired later[111]. - The company has invested CNY 122,447,300 in the environmental industry through the establishment of a partnership with Guangfa Xinde Investment Management Co.[108]. - The company has established several new subsidiaries, including Zhongshan Public Water Environment Governance Co., Ltd., which will contribute to revenue growth[157]. Operational Highlights - The company has maintained its main business operations without significant changes since its listing[18]. - The company has a daily water supply capacity of 2.38 million cubic meters and a daily sewage treatment capacity of 640,000 cubic meters, covering 80% of Zhongshan City's water supply[38]. - The Tianyi Energy project has a waste processing capacity of approximately 970 tons per day, with ongoing construction to increase capacity to 1,200 tons per day[39]. - The company has successfully won 11 sanitation projects in the local market, demonstrating its strong presence in the waste management sector[60]. - The company is actively expanding its market presence, with 17 successful bids in municipal engineering projects across 19 cities[60]. Financial Management and Policies - The company has a commitment to enhance shareholder confidence through a management equity incentive plan post the completion of the share reform[196]. - The company has fulfilled its commitments regarding non-competitive business practices and fair market principles in related transactions[193]. - The company has made changes to its accounting policies, including the consolidation of various receivables and payables into broader categories[200]. - The company has effectively managed the raised funds in accordance with the regulations, ensuring efficient use of resources[136]. Market and Economic Conditions - The company faces risks related to macroeconomic policies and water quality safety, which it aims to mitigate through proactive measures[172]. - The solid waste treatment industry is expected to grow rapidly, with the company planning to extend its industrial chain in this sector[163]. - The company plans to continue expanding its environmental services, focusing on urban water supply and sewage, solid waste treatment, and sanitation services in 2019[168].