Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion, representing a year-on-year growth of 15%[1]. - The Group recorded total revenue of approximately RMB 1,286.4 million in 2023, representing a year-on-year decrease of approximately 4.9%[21]. - Net profit amounted to approximately RMB 223.9 million, reflecting a year-on-year increase of approximately 0.3%[21]. - Basic earnings per share remained stable at RMB 0.24, unchanged from the same period in 2022[21]. - The Group's operating revenue for the Reporting Period was RMB 1,286.4 million, a decrease of 4.9% from RMB 1,353.4 million in the same period of 2022[70]. - Revenue from tap water sales amounted to RMB 384.7 million, down 6.4% from RMB 411.1 million in 2022, accounting for 29.9% of total revenue in 2023[71]. - Revenue from wastewater treatment increased by 15.9% to RMB 607.3 million from RMB 524.0 million in 2022, representing 47.2% of total revenue in 2023[76]. - The gross profit for the Group was RMB 444.3 million, a decrease of 10.1% from RMB 494.0 million in 2022, with the gross profit margin declining from 36.5% to 34.5%[88]. - The gross profit from tap water supply operations was RMB -3.0 million, a decrease of 106.8% from RMB 43.6 million in 2022, with a gross profit margin of -0.8%[92]. - The gross profit from wastewater treatment services increased by 16.0% to RMB 257.6 million from RMB 222.1 million in 2022, maintaining a gross profit margin of 42.4%[97]. - Other revenue increased by 29.3% to RMB 82.0 million from RMB 63.4 million in 2022, mainly due to government grants for engineering pipeline networks[102]. Strategic Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[1]. - New product launches are expected to contribute an additional RMB 300 million in revenue over the next year[1]. - Market expansion plans include entering two new provinces, which are projected to increase market share by 5%[1]. - The company is considering strategic acquisitions to enhance its service portfolio, with a budget of RMB 500 million allocated for potential deals[1]. - The management strategy emphasized "consolidation, expansion, capital empowerment, technology leading, and service improvement" to achieve high-quality and sustainable development[18]. - The Group aims to enhance supply and service capabilities while focusing on expanding the industrial wastewater market for liquor-making and shale gas[27]. Research and Development - The company is investing RMB 200 million in research and development for new technologies aimed at improving service efficiency[1]. - The Group obtained 27 utility model patents and 21 software copyrights, enhancing its core competitiveness through technological innovation[22]. - The self-developed intelligent water system has significantly lowered costs and boosted efficiency, maintaining a leading production and operation level in Southwest China[22]. - The Group plans to strengthen its technology research and development efforts to build the "intelligent water" technology brand, enhancing its core competitiveness[27]. - Research and development expenses amounted to RMB 51,245, primarily for the development of "C-MBR integrated wastewater treatment equipment"[106]. Operational Efficiency - Operational efficiency improvements are expected to reduce costs by 8% over the next year[1]. - The Group's operating cost was RMB 842.1 million, a decrease of 2.0% from RMB 859.4 million in the same period of 2022[77]. - Operating costs associated with tap water supply increased by 5.5% to RMB 387.7 million from RMB 367.5 million in 2022, accounting for 46.0% of total operating costs in 2023[82]. Market and Industry Trends - The amount of reclaimed water usage in China was approximately 18 billion cubic meters in 2022, an increase of 11.77% year-on-year, with a projected increase to 20.6 billion cubic meters in 2023[50]. - The urban reclaimed water utilization rate is expected to rise from approximately 28.76% in 2022 to 32% in 2023[50]. - The comprehensive leakage rate of public water supply in China was 12.84% in 2022, with a target to reduce it to within 9% by 2025[47]. Financial Position - Total assets for the year ended December 31, 2023, were RMB 7,054,786,000, a decrease of 1.2% from RMB 7,140,568,000 in 2022[42]. - Total liabilities decreased to RMB 4,042,153,000 in 2023, down 6.0% from RMB 4,299,548,000 in 2022[42]. - Total equity increased to RMB 3,012,633,000, reflecting a growth of 6.0% from RMB 2,841,020,000 in 2022[42]. - Return on average equity for 2023 was 7.7%, a slight decrease from 8.0% in 2022[37]. - The net debts to equity ratio increased to 102.3% at the end of 2023 from 91.2% at the end of 2022[157]. Legal and Compliance - Xinglu Wastewater Treatment is currently involved in a lawsuit with a total litigation amount of RMB 24.7407 million, which is still under trial[172]. - The company is also a third party in another lawsuit with a claim amount of RMB 8.853 million, which is still under trial[173]. - The group has no significant events after the reporting period, aside from those disclosed in the annual report[181]. Management Team - The management team includes Mr. Zhang Qi, who has over 31 years of experience in the wastewater treatment and tap water supply industries[186]. - Mr. Chen has over 23 years of experience in government service and enterprise-government cooperation[198].
兴泸水务(02281) - 2023 - 年度财报