Source: Visual China
On June 13, Deepwater Haina (300961) held an online performance briefing for 2022, the company lost money last year, reported continuous losses in the first quarter of 2023, and responded cautiously to investors asking whether they have confidence in turning around losses this year.
The second half of the year is cautiously optimistic
At the performance meeting, in response to an investor's question whether Deepwater Haina is confident of turning around losses this year, Li Haibo, chairman and general manager of the company, did not directly answer, he said that this year the company has always adhered to the concept of technology-driven and innovative development, and optimized the business structure and asset structure through the balance of light and heavy water supply in the field of industrial wastewater and high-quality water supply to consolidate the potential of sustainable development. For the forecast of industry trends in the second half of 2023, Li Haibo said that the company is generally cautiously optimistic about the situation in the environmental protection industry in the second half of the year.
According to the 2022 annual report of Deepwater Haina, the revenue was about 498 million yuan, a decrease of 9.36% over the same period of the previous year; The net profit attributable to the parent was about -1.2178 million yuan, a decrease of 103.12% over the same period of the previous year. Net cash flow from operating activities was approximately -25,539,100 yuan, compared to approximately -178 million yuan in the same period last year.
It is worth noting that the revenue of deepwater Haina in the southwest region last year increased by 399448.59% over the same period of the previous year, the highest increase; Northeast China's revenue decreased by 80.65% compared with the same period of last year, the largest decline. The growth rate in North China reached 747.93%, second only to Southwest China. In response to investors' questions about the operation of various regions, Li Haibo explained that in 2022, the company will undertake new business in the southwest region, which will increase the revenue of the business in the southwest region by a large margin; The construction of new projects in North China has led to a significant increase in business revenue in North China. The construction of engineering projects in the northeast region is in the final stage, which has led to a decline in business revenue in the northeast region.
The loss situation was not reversed in the first quarter of 2023, and the revenue during the reporting period was about 102 million yuan, a decrease of 3.55% over the same period of the previous year; The net profit attributable to the parent was about -6.8793 million yuan, a decrease of 211.76% over the same period of the previous year. Net cash flow from operating activities was approximately -37,223,600 yuan, compared to approximately -91,099,600 yuan in the same period last year. As of March 31, 2023, deepwater Haina's total liabilities amounted to approximately $1.570 billion.
At the briefing, some investors asked the reason for the company's loss, and Li Haibo explained that due to the impact of the new crown epidemic, the progress of procedures and project construction in hand was slow; Affected by the new crown epidemic, the macroeconomic environment and the sluggish investment demand for industry projects, market expansion and order acquisition have been affected; Due to the increase in operating costs due to rising factors such as electricity prices and raw materials, the company's revenue and gross profit margin have decreased.
In addition to the above factors, Li Haibo also said that the company's strategic investment and new business layout, comprehensive smart energy business, the construction of zero-carbon comprehensive smart parks, and the promotion of zero-carbon and carbon-energy interactive water plants and other businesses have also led to an increase in the company's current operating costs. Regarding investors' inquiries about the company's operating conditions in the second quarter of this year, Li Haibo said that the operation situation is normal and various businesses are being carried out in an orderly manner.
Stabilize the main business and expand new business
It is understood that the main business of deepwater Haina is industrial sewage treatment and high-quality water supply, and now it has gradually extended its business to new materials, high-end intelligent equipment, smart water, sludge treatment and disposal, comprehensive smart energy and other businesses. In terms of sewage treatment in industrial parks, the company provides customers with investment, design, construction and operation services for sewage treatment plants and their supporting pipe networks in industrial parks or industrial agglomeration areas.
In terms of water system treatment of industrial enterprises, the company provides enterprises in coal chemical, petrochemical, fine chemical, pesticide, pharmaceutical, printing and dyeing, wool, electric power, iron and steel, papermaking, electronics, food processing and other industries with production water supply, desalinated water, circulating cooling water, production wastewater treatment and reuse, zero discharge of concentrated brine, and overall solutions for the whole process water system. High-quality water supply refers to some or all of the services provided by the company in the investment, design, construction and operation of water supply facilities and supporting pipe networks that provide customers with high-quality drinking water and piped direct drinking water.
During the reporting period, relying on territorial development, the company renewed the entrusted operation contracts such as the water supply plant project of Beijing Miyun Gubei Water Town (Simatai Great Wall) International Tourism Resort and the water supply project of Keshan County Industrial Park, and completed the entrusted operation and maintenance work well. The company actively expands the scope of water supply services, and Jiangsu Shenshui and Siyang Branch undertakes the construction, operation and maintenance of a number of urban secondary water supply projects.
The expansion project of Xinyi Water Plant in Siyang County, Jiangsu Province, was completed in June 2022 and entered the operation period. The Qingliu Pipe Network Project in Cao County, Shandong Province, and the first phase of the sewage treatment project in Tunliu District Coal Chemical Industrial Park, Changzhi City, Shanxi Province, will also be completed and put into operation in 2022.
At the briefing, in response to investors' inquiries about the projects under construction, Xiao Jicheng, director and executive deputy general manager of Deepwater Haina, said that the projects currently under construction include the supporting pipe network project of Zhuangzhai Town sewage treatment plant in Cao County, Shandong Province, the industrial sewage treatment plant and supporting pipe network project in Donggang City, Liaoning Province, the water purification plant (reservoir) and supporting pipe network project of the water ecosystem construction of Xiong'an-Gucheng Industrial Eco-city in Hebei Province, the sewage treatment plant and supporting pipe network project in Baimanor District, Old Town of Huanghua City, Cangzhou City, Hebei Province, The second phase construction project of Wulichong sewage treatment plant in Nanming District, Guiyang City, Guizhou Province, and the second phase of water supply project of Keshan County Industrial Park, Qiqihar City, Heilongjiang Province. Among them, the Donggang Industrial Sewage Treatment Plant and the Hebei Xiong'an Ancient City Industrial Ecological Project are both in the late stage of construction, and are scheduled to be put into operation in the second half of 2023.
During the reporting period, Deepwater Haina set up a subsidiary, China Carbon Haina (Shenzhen) Smart Energy Group Co., Ltd., to implement distributed photovoltaic power generation projects in Jiangsu Siyang Water Plant, Shandong Caoxian Water Plant, Shanxi Changzhi Water Plant, Shandong Juye Water Plant and other water plants, all of which are used for the production of electricity in water supply plants and sewage treatment plants, which will save electricity consumption and reduce carbon dioxide emissions every year. In addition to the water plant, it is also actively expanding integrated smart energy projects.
At present, Deepwater Haina invests, constructs and operates a number of sewage treatment and water supply projects nationwide in BOT, ROT, BOO, TOOT, EPC, OM and other modes and their combination models, involving Beijing-Tianjin-Hebei, Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, Yangtze River Midstream City Cluster and Central Plains Economic Zone, and has established 26 subsidiary companies.
The company's financial report pointed out that the ecological protection and environmental governance industry to which the company belongs has no obvious cyclical characteristics, is not a strong cyclical industry, and the industry will maintain a sustained growth trend for a long time in the future. (This article was first published in Titanium Media APP, author | Fang Lu)