Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,807,488, a decrease of 12.5% compared to RMB 2,065,863 in 2022[3] - Gross profit for 2023 was RMB 798,240, down from RMB 857,271 in 2022, reflecting a gross margin of approximately 44.1%[3] - Operating profit decreased to RMB 615,595 in 2023 from RMB 678,302 in 2022, indicating a decline of 9.2%[3] - Profit before tax increased to RMB 381,702, up 3.2% from RMB 367,465 in the previous year[3] - Net profit for the year was RMB 317,727, slightly down from RMB 324,135 in 2022, representing a decrease of 2.3%[3] - Total comprehensive income for 2023 was RMB 318,587, compared to RMB 323,086 in 2022, a decline of 1.5%[5] - Basic and diluted earnings per share remained stable at RMB 0.31 for both 2023 and 2022[5] Assets and Liabilities - Non-current assets decreased to RMB 7,152,430 in 2023 from RMB 7,371,557 in 2022, a reduction of 3%[6] - Current liabilities increased significantly to RMB 4,796,359 in 2023 from RMB 4,239,074 in 2022, an increase of 13.2%[6] - The company reported a total liability of RMB 7,044,613 thousand as of December 31, 2022, with segment liabilities for wastewater treatment at RMB 4,384,230 thousand and water supply at RMB 731,065 thousand[67] - The company's total borrowings amounted to RMB 5,272.1 million, a decrease of 10.2% from RMB 5,869.1 million in 2022[136] - The company's net asset liability ratio as of December 31, 2023, was 50.3%[136] Cash Flow - Cash and bank balances rose to RMB 174,088 in 2023, up from RMB 131,494 in 2022, indicating a growth of 32.3%[6] - Cash generated from operating activities was RMB 220.9 million compared to a cash outflow of RMB 302.6 million in the previous year[183] - Cash used in investing activities was RMB 303.8 million compared to a cash outflow of RMB 96.5 million in the previous year[183] - The net cash inflow from investment activities for the year ended December 31, 2023, was RMB 303.8 million, an increase of RMB 400.3 million compared to 2022, primarily due to reduced cash payments for purchasing property, plant, and equipment, and increased proceeds from the sale of subsidiaries[185] - The financing activities net cash outflow decreased from RMB 973.5 million in 2022 to RMB 480.6 million in 2023, primarily due to a reduction in loan repayments[185] Segment Performance - The wastewater treatment segment generated revenue of RMB 1,233.1 million, down from RMB 1,298.1 million in 2022[41] - Revenue from the wastewater treatment segment for 2023 was RMB 207,399 thousand, a decrease from RMB 905,130 thousand in 2022, while revenue from the water supply segment was RMB 696,460 thousand, not applicable in the previous year[67] - Revenue from the water supply segment accounted for 24.6% of total revenue in 2023[140] - Revenue from the water supply segment increased from RMB 101.2 million to RMB 129.4 million, an increase of RMB 28.2 million or 27.9%[167] - Revenue from other segments decreased from RMB 666.5 million for the year ended December 31, 2022, to RMB 445.0 million for the year ended December 31, 2023, a decline of RMB 221.5 million or 33.2%[144] Expenses and Costs - Total sales cost, sales expenses, administrative expenses, and R&D expenses amounted to RMB 1,123,452 thousand, compared to RMB 1,334,780 thousand in the previous year, indicating a decrease[84] - Sales costs decreased from RMB 1,208.6 million for the year ended December 31, 2022, to RMB 1,009.2 million for the year ended December 31, 2023, a reduction of RMB 199.4 million or 16.5%[145] - Administrative expenses decreased from RMB 121.3 million for the year ended December 31, 2022, to RMB 111.9 million for the year ended December 31, 2023, a decline of RMB 9.4 million or 7.7%[149] - Other income decreased from RMB 68.2 million for the year ended December 31, 2022, to RMB 45.5 million for the year ended December 31, 2023, a decline of RMB 22.7 million or 33.3%[151] - The company incurred depreciation expenses of RMB 232,822 thousand for property, plant, and equipment in 2023, compared to RMB 198,237 thousand in 2022[69] Governance and Compliance - The company has maintained a high level of corporate governance, adhering to the corporate governance code throughout the reporting period[79] - The company is committed to completing the nomination process for board members to ensure compliance with corporate governance standards[80] - The company has adopted the standard code for securities trading by directors and supervisors, ensuring compliance during the reporting period[81] Future Outlook and Strategy - The company aims to enhance its core competitiveness in key technology areas such as sewage treatment and resource utilization of solid waste, while expanding its ecological and environmental protection industry chain[155] - The outlook for 2024 indicates that despite external challenges, the Chinese economy is expected to continue its recovery trend[104] - The average investment recovery period for projects is 5-10 years, and any inability to secure financing may adversely affect the company's business development[160] - The company anticipates continued use of bank loans, corporate bonds, and diversified financing tools for project investments, with interest rates impacting total borrowing costs[161] Operational Capacity - The company operates 39 sewage treatment plants with a total daily sewage treatment capacity of 2.0 million cubic meters as of December 31, 2023[106] - The company has invested in 12 reclaimed water stations and 2 secondary pressurization stations, with a total designed daily capacity of 329,000 cubic meters[107] - The reclaimed water supply volume during the reporting period was 100.5 million cubic meters, showing significant growth due to increased river replenishment supply[108] - The company has 44 operating water treatment plants, including 39 sewage plants and 5 water supply plants, as of December 31, 2023[105] - Total sewage treatment volume was approximately 719.9 million cubic meters, with an average equipment utilization rate of approximately 98.6% as of December 31, 2023[157]
滇池水务(03768) - 2023 - 年度业绩