HJHS(603616)2025-04-29 16:40Financial Performance - The company reported a net profit attributable to shareholders of -231.56 million RMB for the year 2024, with an ending undistributed profit of -536.64 million RMB as of December 31, 2024[5]. - The proposed profit distribution plan for 2024 includes no cash dividends, no stock dividends from undistributed profits, and no capital reserve conversion into share capital due to the company's operating losses[5]. - The company's operating revenue for 2024 reached ¥786,686,444.44, an increase of 47.66% compared to ¥532,782,153.44 in 2023[24]. - The net profit attributable to shareholders was -¥231,156,227.75 for 2024, showing an improvement of 25.07% from -¥308,488,167.11 in 2023[24]. - The net cash flow from operating activities significantly increased to ¥121,111,737.30, up 970.13% from ¥11,317,487.75 in 2023[24]. - The total assets decreased by 7.46% to ¥1,683,168,504.70 in 2024 from ¥1,818,762,445.07 in 2023[24]. - The basic earnings per share improved to -¥0.6061 in 2024, a 25.07% increase from -¥0.8089 in 2023[26]. - The company reported a significant increase in cash flow due to prepayments received for the PCCP project[24]. - The decrease in net assets attributable to shareholders was primarily due to operating losses and asset impairment provisions[27]. - The company experienced a net loss of -¥190,011,326.99 in the fourth quarter of 2024[29]. Market and Business Strategy - The company plans to expand its market presence through new project bids, particularly in the PCCP sector[24]. - The PCCP business generated revenue of 510.7281 million yuan, representing a year-on-year growth of 71.83%[34]. - The total new contracts signed for the PCCP business in 2024 amounted to approximately 1.2 billion yuan, with an unfulfilled contract amount of about 1.557 billion yuan as of the report date[34]. - The company plans to enhance market engagement and management efficiency to expand its market presence and improve operational performance[38]. - The company aims to accelerate debt recovery processes to ensure timely collection of receivables and mitigate financial risks[39]. - The company aims to enhance its environmental business by transitioning from construction-focused services to a comprehensive investment and operation model, improving market competitiveness[57]. - The company is actively involved in the modernization of irrigation districts, with plans to implement over 150 large and medium-sized irrigation district modernization projects[54]. - The company aims to maintain a market share in new bidding projects by leveraging its brand, technology, and performance advantages, while actively seeking new orders[93]. - By 2025, the company plans to enhance its market expansion efforts, focusing on core markets in Central China, Northern China, and Northeast China, to increase market share[94]. Risks and Challenges - The company’s management has acknowledged the potential risks from macroeconomic changes, market competition, and other factors that could impact operations and finances[8]. - The company faces risks related to bidding failures and uncertainties in contract execution, which could significantly impact future performance[97]. - Major water conservancy projects have long construction cycles and large order values, making the company vulnerable to fluctuations in order acquisition and timely project execution[98]. - The company's revenue and profitability may experience significant volatility due to the mismatch between major project bidding schedules and accounting periods[99]. - Changes in national industrial policies, particularly in water conservancy and environmental protection, could substantially affect the company's operations[99]. - Fluctuations in the prices of key raw materials such as steel and cement pose a risk to the company's production costs and overall financial performance[99]. - The company faces risks related to large accounts receivable due to the long construction periods of water conservancy and municipal projects, with clients typically withholding 3%-10% of contract amounts as quality assurance deposits[101]. Governance and Compliance - The company maintains an independent governance structure, ensuring that operations are not influenced by the controlling shareholder[105]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[104]. - The company has established a complete independent financial management system, including separate bank accounts and tax obligations[105]. - The company has a robust governance framework in place, adhering to the Company Law and Securities Law, ensuring equal rights for all shareholders[103]. - The company has no reported penalties from securities regulatory agencies in the last three years[117]. - There are no dissenting opinions from the board regarding company matters during the reporting period[119]. - The company has no identified risks reported by the supervisory board during the reporting period[123]. Research and Development - The company has a strong focus on R&D, with 11 new patents granted in 2024, including 5 invention patents[60]. - The company is engaged in multiple R&D projects related to PCCP, including the development of a fixed device for PCCP pipeline construction and a strain gauge-equipped prestressed concrete pipe[79]. - In 2024, the company completed several R&D projects, including the development of various modified polycarboxylate superplasticizers and environmentally friendly construction equipment[80]. Environmental and Social Responsibility - The company has established a comprehensive environmental protection management system to ensure compliance with national and local regulations[158]. - The company has made charitable contributions totaling 78,000 yuan, benefiting 212 individuals through various community support initiatives[160]. - The company has invested 22,700 yuan in poverty alleviation projects, specifically purchasing livestock from impoverished households[160]. - The company has implemented measures to control pollutant emissions, achieving a total emission of 2.2576 tons of sulfur dioxide and 1.6674 tons of nitrogen oxides, both compliant with local emission limits[155]. - The company has reduced carbon emissions by 1,546.86 tons through energy-saving measures and the use of clean energy[159]. Legal and Financial Matters - The company reported a significant legal dispute regarding a project with Guangxi Guigang Steel Group, resulting in a court ruling requiring the company to return 43.2 million yuan and pay interest at an annual rate of 3.45%[171]. - The company will adjust its financial statements from 2019 to 2023 due to the correction of accounting errors related to the aforementioned project, impacting accounts receivable, inventory, and deferred tax assets[172]. - The company has retained the accounting firm Xinyong Zhonghe for auditing services at a fee of 800,000 yuan for the year 2024[177]. - The company has also engaged Xinyong Zhonghe for internal control auditing at a fee of 200,000 yuan[177].