GCEG(SZ:002060)2022-12-06 01:42Group 1: Company Overview - The main business of Guangdong Water and Electricity Second Bureau Co., Ltd. is steadily developing, focusing on major water conservancy projects and increasing market share in construction [2][3] - The company aims to strengthen its engineering construction business and reduce costs while enhancing profitability [3] Group 2: Financial Goals - The company plans to achieve a total revenue growth of 13.19% and a net profit growth of 11.75% in 2016 [3] Group 3: Key Projects - The North River Navigation Capacity Upgrade Project spans 258 kilometers and includes the construction of 7 locks, with a total investment of approximately 7.325 billion yuan [3] - The project funding consists of 870 million yuan from the investment construction entity and the remainder from government contributions [3] Group 4: Market Challenges - The low gross profit margin in construction is attributed to intense market competition and rising labor costs, alongside the impact of the "VAT reform" policy [5] - The implementation of the policy has led to a decline in gross profit margins for various projects [5] Group 5: Clean Energy Initiatives - The company is actively developing clean energy projects, focusing on hydropower, wind power, and biomass energy generation [7] - As of now, the total installed capacity for hydropower, wind power, and photovoltaic projects is 560,500 kW, with hydropower at 213,000 kW, wind power at 297,500 kW, and photovoltaic power at 50,000 kW [7]