Bossco(SZ:300422)2020-04-28 16:00Financial Performance - Total operating revenue for Q1 2020 was ¥631,867,660.25, a decrease of 1.42% compared to ¥640,958,086.12 in the same period last year[8]. - Net profit attributable to shareholders was ¥60,800,271.82, down 14.16% from ¥70,826,639.02 year-on-year[8]. - Net profit excluding non-recurring gains and losses was ¥54,242,229.72, a decline of 21.57% compared to ¥69,162,913.10 in the previous year[8]. - Basic earnings per share decreased by 15.00% to ¥0.17 from ¥0.20 year-on-year[8]. - The company reported a slight decline in revenue and profit in Q1 2020 due to delays caused by the COVID-19 pandemic, affecting project implementation timelines[45]. Cash Flow and Financial Position - The net cash flow from operating activities improved to -¥88,126,990.48, a 20.18% increase from -¥110,402,985.53 in the same period last year[8]. - The company’s cash and cash equivalents decreased to CNY 741,493,147.75 from CNY 815,228,405.53[74]. - Cash and cash equivalents at the end of the period totaled ¥676,037,055.31, a decrease from ¥688,896,616.49 in the previous period[89]. - The company’s financing activities generated a net cash inflow of ¥391,189,419.79, a decrease from ¥544,282,927.66 in the previous period[89]. - The net cash flow from financing activities was -29,620,556.39, a decrease from 299,069,624.22 in the previous period[91]. Assets and Liabilities - Total assets at the end of the reporting period were ¥9,865,022,455.81, an increase of 7.44% from ¥9,182,311,354.05 at the end of the previous year[8]. - The company’s total liabilities reached CNY 7,807,773,097.79, up from CNY 7,184,297,476.41, which is an increase of about 8.67%[71]. - Long-term borrowings increased to CNY 1,686,567,432.13 from CNY 1,442,458,303.50, marking a rise of approximately 16.94%[71]. - The company had CNY 288,454,458.47 in inventory as of March 31, 2020, compared to CNY 243,523,174.48 at the end of 2019, representing an increase of about 18.46%[68]. - The total current liabilities rose to CNY 5,231,110,972.04 from CNY 4,842,215,184.03, indicating an increase of about 8.05%[71]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,222[12]. - Net assets attributable to shareholders rose to ¥1,850,612,081.55, reflecting a 3.39% increase from ¥1,789,994,263.38 at the end of the last year[8]. - The largest shareholder, Wang Shuangfei, held 21.28% of the shares, amounting to 75,705,752 shares, with 53,584,367 shares pledged[12]. Operational Highlights - The environmental comprehensive governance revenue was CNY 573.32 million, a decline of 4.48% compared to the same period last year, while water treatment revenue increased by 3.33% to CNY 531.15 million[27]. - The company completed an investment of CNY 808.03 million in the PPP project for urban river black and odorous water treatment, achieving an investment progress of 88.02%[29]. - The company has developed a thermal desorption system for oil sludge treatment, achieving a solid-phase oil content of less than 0.3% after processing, with a heat recovery rate exceeding 70%[32]. - The company has developed new efficient treatment technologies for urban black and odorous water, including lightweight denitrification filter pools and continuous drip filter pools, which are now in demonstration project construction and industrial equipment production stages[33]. - The company aims to deepen its leading position in traditional core areas while expanding into niche markets such as rural sewage treatment and hazardous waste disposal, focusing on regions like South China (Guangdong) and East China (Zhejiang, Jiangsu) for domestic growth[43]. Strategic Initiatives - The company has signed a strategic cooperation framework agreement with Chongqing Solid Waste Treatment Co., aiming to collaborate on ecological restoration projects, including soil pollution and municipal sludge treatment[50]. - The company has obtained approval from the China Securities Regulatory Commission to publicly issue up to 70 million A-shares, which is valid for 12 months from the date of approval[49]. - The company has established Guangxi Keyang Renewable Resources Co., with a registered capital of 30 million yuan, which will be included in the consolidated financial statements starting March 2020[54]. - The company has invested in Zhejiang Environmental Technology Co., acquiring an 18% stake, which will strengthen its strategic foothold in the central China region for water pollution control and soil remediation[52]. Challenges and Responses - The company is actively adjusting its business model and priorities in response to the COVID-19 pandemic, focusing on project implementation and cash collection to mitigate adverse impacts on operations[46]. - The company has increased its efforts in accounts receivable collection and is exploring various financing channels to improve cash flow and enhance risk resilience[46]. - The company has exited several marginal PPP projects that were unable to proceed due to government reasons, optimizing its project portfolio[41].