GCEG(SZ:002060)2022-12-08 05:28Group 1: Company Overview - The main business of Guangdong Water and Electricity Second Bureau Co., Ltd. includes hydraulic and hydropower engineering, as well as subway shield tunneling projects [2] - In 2013, the company undertook 76 projects with a total contract amount exceeding 9.17 billion yuan, representing a year-on-year growth of 181% [3] Group 2: Profitability and Market Position - The decline in gross profit margin for engineering construction is attributed to intense market competition and rising labor costs [3] - The company aims to increase its market share and improve gross profit margins by enhancing project management and reducing construction costs [3] Group 3: Subway Shield Tunneling Business - The company operates 16 shield machines and possesses advanced tunneling technology and rich experience in subway construction [3] - The business is expanding in regions such as Guangdong, Jiangxi, and Jiangsu, with a focus on securing more orders as the national government promotes urban rail transit construction [3] Group 4: Clean Energy Projects - The company has advantages in developing clean energy projects, including cost savings through optimized construction and good credit ratings leading to lower financing costs [5] - Funding for clean energy projects comes from self-accumulated funds and loans from financial institutions [5] - The operational personnel for clean energy projects are primarily trained internally, with some specialized talent being recruited [5] Group 5: Project Status and Future Plans - Unstarted clean energy projects are currently undergoing feasibility studies and preliminary preparations [7] - The annual utilization hours for clean energy projects vary by region, with wind power in Xinjiang around 2,500 hours and photovoltaic projects in Gansu between 1,300-1,400 hours [7] - The company has no current plans for refinancing or stock incentive programs [8]