Jiangnan Water(SH:601199) Xin Lang Cai Jing·2025-04-25 04:25Core Insights - Jiangnan Water's 2024 annual report shows steady growth in revenue and profit despite a challenging market environment, but a significant decline in net cash flow from operating activities raises concerns about liquidity and operational efficiency [1] Financial Performance - Revenue growth: In 2024, Jiangnan Water achieved operating revenue of CNY 1,533,067,386.98, a 12.39% increase from CNY 1,364,014,058.89 in 2023. The water supply segment saw a 1.58% increase in main revenue, driven by improved non-residential water usage and higher average water prices [2] - Net profit increase: The net profit attributable to shareholders was CNY 402,004,358.98, up 24.31% year-on-year. The net profit after excluding non-recurring items was CNY 403,750,227.30, a 35.36% increase, largely due to investment income from Jiangyin Rural Commercial Bank [3] - Earnings per share growth: Basic earnings per share reached CNY 0.43, a 22.86% increase, with the same figure for non-recurring earnings per share also at CNY 0.43, reflecting the impact of investment income on profitability [4] Expense Analysis - Sales expenses decreased: Sales expenses were CNY 74,829,790.88, down 6.48% from the previous year, indicating effective cost control in sales operations [5] - Management expenses slightly increased: Management expenses rose to CNY 119,418,893.93, a modest increase of 0.71%, suggesting stable overall management costs [6] - Financial expenses increased: Financial expenses were -CNY 52,308,855.70, an increase of 3.41% from the previous year, indicating a rise in absolute values despite remaining negative [7] - R&D expenses decreased: R&D expenses totaled CNY 6,325,255.37, down 6.14%, which may impact future innovation and business expansion capabilities [8] Cash Flow Analysis - Decline in operating cash flow: The net cash flow from operating activities was CNY 355,408,727.02, a 26.03% decrease, primarily due to reduced cash collections from engineering projects and increased cash payments for goods and services [10] - Significant changes in investment cash flow: The net cash flow from investment activities was -CNY 167,044,897.06, a decrease of CNY 267 million, reflecting adjustments in investment strategies and increased cash recovery from investments [11] - Variability in financing cash flow: The net cash flow from financing activities was -CNY 115,210,094.92, a decrease of CNY 53 million, indicating adjustments in funding strategies and dividend payments [12] R&D and Personnel - R&D investment: Total R&D investment was CNY 6,325,255.37, accounting for 0.41% of operating revenue, with a decrease in investment but still achieving several patents during the reporting period [13] - R&D personnel: The company employed 75 R&D staff, representing 7.86% of total employees, with a balanced educational and age structure, although reduced R&D investment may affect team stability and innovation capacity [14]