TCEPC(SH:600874)2024-03-22 16:00Financial Performance - The basic earnings per share for 2023 is CNY 0.55, an increase of 7.84% compared to CNY 0.51 in 2022[23] - The diluted earnings per share for 2023 is also CNY 0.55, reflecting the same growth as the basic earnings per share[23] - The basic earnings per share after deducting non-recurring gains and losses is CNY 0.50, up 11.11% from CNY 0.45 in 2022[23] - The weighted average return on net assets for 2023 is 9.89%, a slight increase of 0.01 percentage points from 9.88% in 2022[23] - The weighted average return on net assets after deducting non-recurring gains and losses is 8.95%, an increase of 0.17 percentage points from 8.78% in 2022[23] - The company reported a total revenue of 231,553,120 RMB from the top five customers, representing 49.64% of total annual sales[39] - The total profit reached RMB 1,106.21 million, reflecting a growth of 14.12% year-on-year[47] - Net profit attributable to the parent company was RMB 865.21 million, up by 15.17% from the previous year[47] - The net profit after deducting non-recurring gains and losses was RMB 77,874.20 million, reflecting a 17.34% increase from RMB 66,366.20 million in 2022[78] - The total assets at the end of 2023 were RMB 2,446,065.40 million, a 6.49% increase from RMB 2,296,967.40 million at the end of 2022[78] Revenue and Costs - The company's operating revenue for the period was 466,508.30 million, an increase of 3.16% compared to 452,216.70 million in the same period last year[31] - Operating costs decreased by 4.74%, from 298,603.80 million to 284,451.70 million[31] - The increase in operating revenue was primarily due to higher settlement water volume from existing projects and new projects coming online, contributing to the sewage treatment business[47] - Operating costs decreased due to lower construction service costs from PPP projects and strict cost control measures[47] - The total cost for wastewater treatment and facility construction was 193,087,000 RMB, accounting for 72.72% of total costs, a decrease of 6.8% compared to the previous year[37] Research and Development - Research and development expenses increased by 21.87%, reaching 5,306.20 million compared to 4,353.90 million in the previous year[31] - Research and development expenses increased due to higher investments in human resources and materials[47] - The company plans to invest no less than 1.25% of its annual operating revenue in R&D for 2024, focusing on new technologies in wastewater treatment, sludge treatment, and renewable energy[135] Operational Efficiency - The company aims to achieve a 25% utilization rate of recycled water in cities with water shortages by 2025, as part of the new policy initiatives[27] - The company plans to enhance its digital transformation by integrating IoT platforms across all five regional wastewater treatment plants[29] - The company continues to enhance project operation management to improve operational quality and control costs[50] - The company is focused on digital transformation and low-carbon operations in wastewater treatment plants to improve operational efficiency[134] - The company is enhancing its internal control and risk management systems, ensuring compliance with corporate governance standards[141] Market and Growth Strategy - The company is committed to becoming a leading service provider in water treatment and resource utilization by the end of the 14th Five-Year Plan, with a focus on the Tianjin area and major river basins[134] - The company recognizes the significant growth potential in the photovoltaic power generation sector, driven by increasing national electricity demand and decreasing costs of solar power[133] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[161] - A strategic acquisition was completed, adding $150 million in annual revenue and expanding the company's service offerings[161] Governance and Compliance - The company held 18 board meetings and 3 shareholder meetings during the reporting period[153] - The company ensures compliance with listing rules and corporate governance codes through regular training and updates for directors[153] - The company has implemented ongoing training for its board members to deepen their understanding of relevant laws and industry developments[154] - The company is committed to transparency in its governance practices, with all committee meetings documented and accessible for review[156] Risk Management - The company faces risks related to government credit, which is crucial for cash flow recovery in wastewater treatment projects[152] - Comprehensive risk management measures are being implemented to identify and respond to various policy risks[152] - The company emphasizes the importance of strengthening legal compliance to protect its interests in contracts[152] - Maintaining smooth communication with local governments and regulatory bodies is deemed essential for operational success[152] Shareholder Engagement - The company emphasizes accurate and timely information provision to investors, enhancing communication through effective channels[170] - The company allows shareholders holding more than 10% of shares to request the board to convene a temporary shareholders' meeting[169] - The company’s board of directors actively engages in investor relations management, ensuring transparency and effective communication with shareholders[170]