Chongqing Water(SH:601158)2024-04-02 16:00Financial Performance - The company's operating revenue for 2023 was approximately ¥7.25 billion, a decrease of 6.74% compared to ¥7.78 billion in 2022[14]. - The net profit attributable to shareholders for 2023 was approximately ¥1.09 billion, down 43% from ¥1.91 billion in 2022[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥855 million, a decline of 51.15% from ¥1.75 billion in 2022[14]. - The net cash flow from operating activities for 2023 was approximately ¥2.51 billion, a decrease of 6.93% compared to ¥2.69 billion in 2022[14]. - Basic earnings per share decreased by 42.50% to CNY 0.23 in 2023 from CNY 0.40 in 2022[15]. - The weighted average return on equity dropped by 5.38 percentage points to 6.16% in 2023 compared to 11.54% in 2022[15]. - The company's total revenue was 7.254 billion yuan, a decrease of 6.74% year-on-year, with a net profit of 1.089 billion yuan, down 43.00% year-on-year[24]. - The weighted average return on equity was 6.16%, a decrease of 5.38 percentage points year-on-year, while the return on equity after deducting non-recurring gains and losses was 4.84%, down 5.74 percentage points year-on-year[24]. Cash Flow and Investments - The net cash flow from investing activities was negative RMB 3,345,917,519.75, primarily due to increased cash payments for fixed assets and intangible assets[32]. - The company reported a net cash flow from financing activities of RMB 1,045,182,964.18, a substantial increase of 535.74% compared to RMB 164,405,423.66 in the previous year[32]. - The company has a low debt-to-asset ratio, indicating a stable financial structure and strong cash flow, which supports its development[29]. - The company has a guarantee amount of 25,585 million RMB for another subsidiary, with a remaining loan balance of 9,617.76 million RMB[150]. Market Position and Operations - The company holds approximately 54% of the tap water market and about 84% of the wastewater treatment market in the main urban area of Chongqing, indicating a significant regional competitive advantage[26]. - The company processed a total of 166,514.21 million cubic meters of wastewater, generating service revenue of 382,765.08 million yuan, which accounted for 52.76% of total revenue[31]. - The company achieved wastewater treatment service revenue of 3.827 billion yuan, accounting for 52.76% of total revenue, and tap water sales revenue of 1.704 billion yuan, accounting for 23.49% of total revenue[24]. - The company expanded its daily water supply capacity to 3.2795 million cubic meters, an increase of 58,000 cubic meters, and its daily wastewater treatment capacity to 4.85795 million cubic meters, an increase of 252,000 cubic meters[24]. Strategic Initiatives and Future Plans - The company plans to distribute a cash dividend of ¥1.69 per 10 shares, totaling approximately ¥811.2 million, with no bonus shares or capital reserve transfers planned for this year[3]. - The company aims to reach an asset scale of CNY 50 billion and revenue exceeding CNY 10 billion by the end of 2025[69]. - For 2024, the company targets a revenue of no less than CNY 7.35 billion and plans to invest CNY 1.15 billion in construction and information technology projects[70]. - The company is focused on enhancing operational management and expanding into rural and integrated water supply markets[68]. Governance and Compliance - The board of directors consists of 7 members, including 3 independent directors, ensuring a balanced governance structure[74]. - The company has committed to avoiding related party transactions that could lead to conflicts of interest, ensuring fair practices[74]. - The company has implemented a strict information disclosure policy, adhering to legal requirements and maintaining transparency[74]. - The company has established measures to maintain the independence of its operations from its controlling shareholders[75]. Environmental and Social Responsibility - The company actively responded to national energy conservation and emission reduction initiatives, achieving a COD reduction of approximately 329,200 tons and ammonia nitrogen reduction of approximately 35,400 tons in 2023[25]. - The company has been disclosing its ESG report since 2023, following annual social responsibility reports from 2018 to 2022[123]. - The company is committed to ensuring compliance with environmental standards to prevent penalties that could affect its tax benefits[72]. Risks and Challenges - The company faces risks related to raw water supply due to seasonal rainfall variability and extreme weather events[71]. - The wastewater treatment service pricing is reviewed every three years, with potential downward adjustments posing operational risks[71]. - The company is exposed to risks from rising costs of production chemicals and energy, which may adversely affect future operating efficiency[73]. Employee and Management - The total number of employees is 6,523, with 3,595 in production, 257 in sales, and 142 in technical roles[100]. - The company conducted 635 training programs, training over 29,000 participants in various areas including safety and management[103]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 9.5844 million yuan[88].