CSD Water Service(SH:603903) Zheng Quan Zhi Xing·2025-06-27 16:22Core Viewpoint - The company, Zhongzhi Water Co., Ltd., reported a significant decline in revenue and a net loss for the reporting period, attributed to a decrease in project bids and substantial reductions in audit results compared to contract amounts [2][3]. Financial Performance - The company achieved operating revenue of 1.058 billion RMB, a year-on-year decrease of 33.83%, and a net profit of -117 million RMB, indicating a shift from profit to loss [2][3]. - Major business segments include urban sewage treatment (504 million RMB, down 19.81%), industrial park and industrial wastewater treatment (431 million RMB, down 24.56%), and comprehensive environmental governance (123 million RMB, down 69.13%) [2][3][8]. Order and Project Management - The company reported a significant drop in new contracts for environmental infrastructure construction and technical product sales from 2023 to 2024, with government clients' payment capabilities weakening, particularly in Hebei and Henan regions [4][5]. - The total amount of orders on hand as of December 31, 2024, was approximately 868.63 million RMB, slightly up from 987.05 million RMB in the previous year, indicating a cautious approach to project execution due to market conditions [6][8]. Business Strategy and Adjustments - The company plans to focus on business innovation in the Yangtze River Delta region, enhance operational efficiency, and expand high-value technical product sales to improve revenue and profit margins [10]. - Measures include optimizing project selection criteria, improving operational project efficiency, accelerating smart innovations, and strengthening accounts receivable recovery [10]. Comparison with Industry Peers - The company's revenue trends align with industry peers, with a notable decline in environmental infrastructure construction revenue, while operational service revenue remained relatively stable compared to competitors [10]. - The company’s operational service revenue showed a slight increase of 0.41% compared to the previous year, indicating stability in this segment amidst broader industry challenges [10].