SPC(002573)2022-12-03 09:52Business Performance and Profitability - The company's BOT segment maintained stable gross margins in 2017 due to normal operations of existing desulfurization and denitrification projects and the addition of new projects, contributing significantly to the company's performance [1][2] - The EPC segment experienced a decline in gross margins in 2017 due to increased competition and price wars in the ultra-low emissions market, which entered its third year [2] - The company plans to actively monitor industry trends and market competition to manage external risks and explore new competitive opportunities to ensure profitability and sustainable development [2] Market Position and Operations - The company has a service scale of over 26 million kilowatts in the thermal power industry, accounting for approximately 3% of the market share, ranking second in the industry [2] - In 2017, the company's operational performance improved due to increased power generation hours and enhanced operational efficiency through refined management [2] - The company is transitioning from traditional bidding models to diversified cooperation models, such as partnerships with Aluminum Energy Qingxin and Guizhou Qingxin, to leverage resources and enhance competitiveness [2] Non-Power Sector Development - In 2017, stricter policies and standards were introduced for non-power sector air pollution control, marking the beginning of new construction and upgrades in this sector [2] - In the steel industry, desulfurization and denitrification facilities had an installation rate of over 90% by the end of 2016, but operational issues such as high equipment failure rates and low operation rates persisted [2][3] - The company is advancing in the non-power sector with projects in multiple sub-industries, utilizing wet, dry, and semi-dry technologies tailored to regional policy environments and customer needs [3] Financial Management - High accounts receivable are attributed to the rapid growth of ultra-low emissions projects and delayed payments from some clients, a common industry phenomenon [3] - The company is intensifying efforts to manage receivables, incorporating collection rates into performance evaluations, and strengthening financial controls to reduce receivables and optimize financial leverage [3] - The company is exploring financing channels such as green bonds and ultra-short-term financing to ensure stable cash flow management [3] Debt and Expansion Strategy - The company's debt-to-asset ratio is within the normal industry range and is considered manageable [3] - The company plans to balance debt and equity financing to optimize its capital structure [3] - In 2018, the company will focus on external mergers and acquisitions, targeting projects aligned with its core business, upstream and downstream service chain enterprises, and complementary technology or market-oriented projects [3][4] - The investment department is actively tracking policy changes to identify new opportunities for mergers and acquisitions, ensuring risk control while creating growth opportunities for the company's long-term development [4]