SPC(SZ:002573)2025-05-12 11:34Financial Performance - The company's net profit turned from profit to loss in 2024, with a significant decline of 92.58% in Q1 2025 compared to the previous year [1] - The main reasons for the profit decline include reduced gross profit from air pollution control projects, increased credit impairment losses due to aging receivables, and asset impairment losses [1][2] - In Q4 2024, the net profit attributable to shareholders was -4.38 billion CNY, with poor performance in non-recurring net profit [2] Revenue and Profitability - Despite a slight revenue increase of 1.18% in 2024, the net profit plummeted by 396.95% due to increased consumption tax and asset impairment provisions [3][4] - The air pollution control business revenue dropped from 30.63% to 22.80%, while resource business revenue increased to 41.43% [5] Strategic Adjustments - The company plans to optimize procurement processes, enhance production efficiency, and invest in R&D to improve gross profit margins [2] - A strategic focus on core businesses, particularly air pollution control and water services, is emphasized, with plans to divest 57% of the resource segment [5][6] Future Growth and Market Outlook - The company aims to leverage its operational assets, including 18 air pollution control projects with a total capacity of 15,220 MW and over 40 water projects with an annual treatment capacity of approximately 1.469 billion tons [5] - The environmental protection industry is expected to benefit from long-term demand for carbon reduction and pollution control, driven by national policies [6][7] R&D and Innovation - R&D investment increased from 318 million CNY to 352 million CNY, representing 4.04% of revenue, despite a slight decrease in R&D personnel [7] - The company is actively exploring AI applications in environmental management, with ongoing projects in smart gas treatment and wastewater management [8] Cash Flow and Financial Health - Operating cash flow increased significantly by 70.11% to 1.492 billion CNY, attributed to improved collections in air pollution control, water, and energy-saving sectors [9] - The company is committed to enhancing its market value management through effective communication with stakeholders and adherence to regulatory requirements [10]