GCEG(SZ:002060)2022-12-05 05:46Business Overview - The main business of Guangdong Water and Electricity No. 2 Bureau Co., Ltd. includes engineering construction and clean energy (hydropower, wind power, photovoltaic) generation [2][3] - The company is actively exploring investment opportunities in clean energy projects, including offshore wind power and biomass power generation [3][4] Project Details - The company has invested CNY 870 million to establish the Guangdong Beijiang Navigation Development Investment Co., Ltd. for the Beijiang Navigation Capacity Upgrade Project, with a 25% shareholding [3][4] - The contract amount for the Beijiang Navigation Capacity Upgrade Project is CNY 1,604.71 million [3] - The total investment for the Hanjiang Gaocuo Water Conservancy Hub Project is CNY 591.87 million, with a construction contract amount of CNY 272.14 million [4] PPP Projects - Current PPP projects include the Beijiang Navigation Capacity Upgrade Project, Hanjiang Gaocuo Water Conservancy Hub Project, and municipal infrastructure projects in Huizhou [4][6] Competitive Advantages - The company owns 16 shield machines and has advanced technology in rail transit construction, which enhances its competitive edge [6] - The company has obtained several patents related to construction technology, addressing technical challenges in the field [6] Financial Insights - The low gross profit margin in construction is attributed to intense market competition and rising labor costs [6] - The implementation of the "VAT reform" policy has led to a decline in gross profit margins for existing projects [6] Management and Future Plans - The company is progressing with its mixed-ownership reform according to the approved plan [6][7] - Currently, there are no refinancing plans or asset securitization for PPP projects [7]