Company code: Chongqing Water Group Co.Ltd(601158) company abbreviation: Chongqing Water Group Co.Ltd(601158) Chongqing Water Group Co.Ltd(601158)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should http://www.sse.com.cn. The website carefully reads the full text of the annual report. 2. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 3. All directors of the company attend the board meeting. 4 Tianzhi International Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 5. The profit distribution plan or the plan of converting accumulation fund into share capital in the reporting period adopted by the resolution of the board of directors
The company’s 2021 profit distribution plan approved at the 15th meeting of the Fifth Board of directors (2021 annual board meeting) on March 31, 2022 is: Based on the company’s total share capital of 4.8 billion shares on December 31, 2021, it is proposed to distribute a cash dividend of RMB 1233.6 million to all shareholders at the proportion of RMB 2.57 (tax included) for every 10 shares; No bonus shares will be given this year, nor will the capital reserve be converted into share capital.
Section II basic information of the company
1 company profile
Company stock profile
Stock type stock exchange stock abbreviation stock abbreviation before stock code change
A-share Shanghai Stock Exchange Chongqing Water Group Co.Ltd(601158) Chongqing Water Group Co.Ltd(601158)
Contact person and contact information secretary of the board of directors securities affairs representative
Name: LV Xianghong, Chen Tao
Office address: No. 1, Longjiawan, Yuzhong District, Chongqing No. 1, Longjiawan, Yuzhong District, Chongqing
Tel: 0236386082702363860827
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period
(I) business conditions of the company
1. Water supply business
The company was granted the franchise right of urban water supply in the main urban area of Chongqing by Chongqing municipal government in 2007, with a term of 30 years. The non wholly-owned subsidiary of the company engaged in water supply business in the main urban area has the franchise right of water supply business in the local franchise area granted by the relevant district government of Chongqing. The company’s water supply business mainly includes the whole process of the group’s subordinate water plants taking the Yangtze River and Jialing River as the main water sources, treating the raw water according to the conventional (or advanced) treatment process of tap water, and transporting the tap water meeting the national quality standards to the end users through the transmission and distribution pipe network. The tap water produced by the company’s subsidiaries is mainly used to meet the group’s domestic water, industrial and commercial water and other water needs in the water supply franchise area authorized by the government. After the price of water has been adjusted by the government, the company has the right to directly collect a certain amount of water fee from the users in accordance with the price adjustment procedures of the government.
2. Sewage treatment business
The company was granted a drainage franchise by Chongqing municipal government in 2007 for a period of 30 years. The company’s five major wholly-owned subsidiaries engaged in sewage treatment business in Chongqing also have the franchise rights granted by the implementation plan of the company’s drainage business franchise. The sewage treatment business includes the whole process of physical, chemical and biochemical treatment of domestic sewage, industrial and commercial sewage, initial rainwater and other sewage collected by the company’s main sewage treatment enterprises through the urban sewage pipe network, which is discharged into the corresponding receiving water body after reaching the relevant national environmental protection standards. The sewage treatment business of the company’s subordinate enterprises is mainly used to meet the sewage treatment of the group in the franchise area authorized by Chongqing municipal government, so as to meet the environmental protection requirements and protect the water safety of the upper reaches of the Yangtze River and the Three Gorges Reservoir area. The company has the right to charge reasonable service fees from the government under the condition that sufficient, continuous and qualified sewage treatment services are provided within the franchise period and franchise area. The company’s sewage treatment business mainly adopts the way that the government purchases services and pays fees. The settlement price of sewage treatment services is approved by relevant government departments every three years. In addition, the company’s sewage treatment projects in Bishan district and Dazu District of Chongqing, Qingbaijiang District of Chengdu City, Sichuan Province and Anlu City, Hubei Province also enjoy the franchise rights granted by the local government.
3. Sludge treatment and disposal business
Chongqing Yushui Environmental Protection Technology Co., Ltd. and other wholly-owned and holding subsidiaries of the company are mainly engaged in the treatment and disposal of wet sludge produced by urban domestic sewage treatment plants. Through the use of various process technologies such as sludge aerobic fermentation to produce nutrient soil, sludge collaborative firing of ceramsite, sludge cogeneration, sludge thermal drying and so on, the sludge is treated by unit process combination, Achieve the goal of “reduction, stabilization and harmlessness”. The company’s sludge treatment and disposal business mainly adopts the way that the government (or users) purchase services and pay fees. The main service scope covers the central urban area of Chongqing, Yongchuan District, Dianjiang County, Wansheng District, Qingbaijiang District of Chengdu City, Sichuan Province, and the main urban area of Kunming City, Yunnan Province. By the end of the reporting period, the design capacity of the sludge treatment and disposal project operated and managed by the company had reached 1992 tons / day. 4. Engineering construction and other business
In addition to the above businesses, the wholly-owned and holding subsidiaries of the company also operate: municipal public works, electromechanical installation engineering, housing construction and other engineering construction businesses; Supervision of housing construction engineering and municipal public works; Water supply and drainage equipment manufacturing business, etc.
Other businesses of the company include material sales, pipeline installation, water meter installation, etc.
(II) industry description
With the in-depth implementation of the Xi Jinping ecological civilization thought, based on the new development stage, the complete, accurate and comprehensive implementation of the new development concept and the construction of a new development pattern, the construction of ecological civilization is being strengthened. With the overall focus on realizing the synergy of pollution reduction and carbon reduction, the improvement of the quality of the ecological environment as the core, and the working policy of precise and scientific pollution control, we will coordinate pollution control, ecological protection and climate change, and maintain our efforts Expand the depth and breadth, fight for the blue sky, clear water and pure land with higher standards, promote high-quality development with high-level protection, create high-quality life, and strive to build a beautiful China with harmonious coexistence between man and nature.
The protection of the ecological environment has been strengthened in an all-round way, and the battle of pollution prevention and control has been well fought. The development of the water industry has ushered in an important period of strategic opportunities and in-depth reform and adjustment. Policy supervision has become stricter, discharge standards have been raised, market-oriented reform has been promoted, and the utilization of sewage resources has become a new trend. The development of water industry has gradually changed to the integration of urban and rural water supply and the integrated treatment of factories, networks, rivers and lakes, from “emphasizing water and light mud” to “paying equal attention to mud and water” and “integrating mud and water”, emphasizing the improvement of enterprise production and operation efficiency and market competitiveness. Nowadays, the water industry is using digitization and intelligence to provide comprehensive solutions along the vertical and horizontal expansion of the industrial chain, and is booming in the new stage of pursuing high-quality development. A series of policies and measures have been introduced one after another. The national development and Reform Commission and other five ministries and commissions issued the notice on the opinions on clearing and standardizing the charges of urban water supply, power supply and heating industry and promoting the high-quality development of the industry, and actively promoted the marketization of the water supply industry. We need to make sure that the government has the right to market-oriented and standardized production and operation of water supply enterprises. We need to make sure that the market-oriented and market-oriented production and operation of water supply enterprises will be more efficient, and that the government will play a more effective role in defining the market-oriented and market-oriented production and operation of water supply enterprises. We need to make sure that the market-oriented production and operation of water supply enterprises are more efficient. The national development and Reform Commission and other four ministries and commissions issued the guiding opinions on accelerating the construction of urban environmental infrastructure, and carried out systematic layout and overall planning in the field of domestic sewage treatment and other environmental protection. The exploration of the new model is conducive to improving the marketization, scale and specialization of urban environmental infrastructure construction and operation, and cultivating new business forms of environmental protection industry. Facing the new development situation, the company will actively participate in the construction of urban environmental infrastructure and comprehensively promote the high-quality development of its main business.
The pattern of sewage resource utilization has gradually taken shape. By 2025, the policy system and market mechanism for sewage resource utilization will be basically established; By 2035, a systematic, safe, environmental friendly and economic pattern of sewage resource utilization will be formed. It is of great significance to optimize the water supply structure, increase the supply of water resources, alleviate the contradiction between supply and demand, reduce water pollution and ensure water ecological security by harmless treatment of sewage to meet specific water quality standards, replacing conventional water resources as reclaimed water for industrial production, municipal miscellaneous use, residents’ life, ecological water supplement, agricultural irrigation and groundwater recharge, and extracting other resources and energy from sewage.
Based on the existing policy documents, the rigid demand of the water market is accelerated, the market space is continuously expanded, and the industrial scale is continuously expanded. In 2021, the state successively issued policies such as the opinions of the CPC Central Committee and the State Council on deepening the battle of pollution prevention and control, the outline of the construction plan of Chengdu Chongqing double city economic circle, the notice on printing and distributing the development plan of urban sewage treatment and resource utilization in the 14th five year plan, and the notice on printing and distributing the plan on comprehensively promoting the financial and tax support policies for the development of the Yangtze River economic belt, Chongqing Municipal People’s government has released the “14th five year plan” for Chongqing to build an important ecological barrier in the upper reaches of the Yangtze River (20212025), which has greatly released the market development space. In the market trend, the competition of nationalization, regionalization and platform is still intensifying; Under the background of continuous cross-border entry, environmental protection of industry, combination of industry and finance, resource capitalization and asset financialization, the market concentration will be further improved.
The business area of the company is mainly Chongqing. The company enjoys the water supply and drainage franchise granted by Chongqing municipal government, and occupies about 54% of the tap water market and 83% of the sewage treatment market in the main urban area of Chongqing; The company and joint ventures jointly occupy about 86% of the tap water market and 92% of the sewage treatment market in the main urban area of Chongqing, and have significant regional leading advantages in the water supply and drainage market in Chongqing. While doing a good job in the construction and operation projects in Chongqing, the company is marching into the water and environmental protection industry in Sichuan, Yunnan, Hubei, Henan and other provinces and cities across the country. Focusing on the strategic goal of building a first-class comprehensive water service provider in China, the company is adhering to the new development concept, strengthening market awareness, seizing market opportunities, actively expanding the water supply and drainage and related industrial markets inside and outside the city, and accelerating the realization of cross regional development.
3 main accounting data and financial indicators of the company 3.1 main accounting data and financial indicators in recent three years
Unit: yuan currency: RMB
20212020 compared with 2019 of the previous year
Increase or decrease (%) before adjustment and adjustment
Total assets 29244789287612453429234235 19.2022026026235182171284832468
Net assets attributable to shareholders of listed companies 16434352469361552266033447 5.8715405899381541514707193864
Operating income 725225408848634959984462 14.22563854942706563854942706
Net profit attributable to shareholders of listed company 207755412267177373016183 17.13166298504484166510488430
Net profit attributable to shareholders of listed companies after deducting non recurring profits and losses of 175074730119167194618490 4.71153970985301153970985301
Net cash flow from operating activities 273470490194230131398225 18.83223984504833224192214286
Weighted average return on net assets (%) 13.15 11.57
