Bossco(SZ:300422)2022-12-04 09:50Group 1: Financial Performance - In 2019, water treatment business revenue was 2.53 billion, accounting for 78% of total revenue; soil remediation revenue was 356 million, accounting for 11%; professional technical service revenue was 170 million, accounting for 5%; and operational revenue was 160 million, accounting for 5% [5] - The company achieved significant cash flow improvement in 2019, primarily due to 7 PPP projects entering operation and an expected 17 projects to enter operation in 2020, leading to stable revenue inflow [5] - In Q1 2020, revenue remained stable, but net profit decreased slightly due to increased financial expenses of 14 million and delays caused by the pandemic [5][6] Group 2: Project and Order Status - The company currently has orders worth approximately 10 billion, with around 6 billion from controlling PPP projects, which will generate operational revenue during the concession period [6][7] - The company is involved in the upgrade of wastewater treatment systems for several designated hospitals in Guangxi, indicating potential growth in the medical wastewater treatment sector [6] - The company plans to gradually increase the revenue share from equipment supply (EP) to 30%, operational revenue to 30%, and reduce engineering revenue share to 30% over the next two to three years [9] Group 3: Strategic Initiatives - The company aims to enhance project construction and operational entry to mitigate the impact of Q1 construction delays [6] - It is focusing on regional expansion and business coverage by collaborating with state-owned companies to establish joint ventures [6] - The company is continuously optimizing its business model and strengthening payment collection to gradually exit underperforming PPP projects [6][8] Group 4: Competitive Positioning - The company has a strong technical team with high educational backgrounds, which has contributed to its success in obtaining significant national awards [10] - It has established multiple production bases for environmental equipment, ensuring a steady supply for its projects [10] - The company is exploring partnerships with local state-owned enterprises to leverage their investment capabilities for project development [11]