Chongqing Water(SH:601158) Zheng Quan Zhi Xing·2025-08-22 12:10Core Viewpoint - The report highlights the financial performance and operational stability of Chongqing Water Group Co., Ltd. for the first half of 2025, showcasing growth in revenue and profit, while emphasizing the company's leading position in the water supply and wastewater treatment market in Chongqing [1][11]. Company Overview and Financial Indicators - Chongqing Water Group Co., Ltd. reported a revenue of approximately 3.52 billion RMB, representing a 7.16% increase compared to the same period last year [7]. - The total profit reached approximately 612.43 million RMB, up by 7.26% year-on-year [7]. - The net profit attributable to shareholders was about 457.92 million RMB, reflecting a 10.06% increase from the previous year [7]. - The net cash flow from operating activities surged by 109.43%, amounting to approximately 980.64 million RMB [7]. - Total assets increased by 5.06% to approximately 35.58 billion RMB, while net assets decreased slightly by 0.62% to about 17.00 billion RMB [7]. Business Operations - The company holds a 30-year exclusive right for water supply and wastewater treatment in Chongqing, with a market share of approximately 54% in the water supply sector and about 80% in the wastewater treatment sector [4][7]. - The company operates 41 water treatment plants with a total design capacity of 328.71 million cubic meters per day and 123 wastewater treatment plants with a capacity of 558.795 million cubic meters per day [11][14]. - The company has expanded its operations beyond Chongqing, targeting markets in Sichuan, Yunnan, Hubei, and Henan provinces [7]. Industry Context - The water services industry is crucial for economic and social development, with its growth closely linked to urbanization and population growth [6]. - The industry is currently transitioning from scale expansion to value enhancement, driven by dual goals of carbon reduction and environmental protection [6]. - Government policies are encouraging the participation of social capital in infrastructure and public utility projects, enhancing service quality and efficiency [6]. Operational Highlights - The company has implemented strict production management and enhanced service quality, achieving a customer satisfaction rate of 95.2% [12]. - The company is actively pursuing green development initiatives, including the construction of distributed photovoltaic projects at water treatment facilities [12]. - The company has integrated technology and innovation into its operations, with 80 patents obtained in the first half of 2025 [12][15].