Jiangsu Jiangnan Water Co., Ltd. (601199.SS) Bundle
A Brief History of Jiangsu Jiangnan Water Co., Ltd.
Jiangsu Jiangnan Water Co., Ltd. was established in 1998 and has since evolved into a leading water service provider in Jiangsu Province, China. The company primarily focuses on the supply of water resources, construction, operation of water supply facilities, and related services.
By the end of 2022, Jiangnan Water reported a total production capacity of approximately 1.6 million cubic meters of water per day, serving millions of residents across several cities.
In 2021, the company achieved a revenue of RMB 1.12 billion (approximately USD 174 million), demonstrating an increase of 12% compared to the previous year. The net profit attributable to shareholders reached RMB 180 million (approximately USD 28 million), marking a year-over-year growth of 10%.
The company operates several key subsidiaries, including Jiangsu Jiangnan Water Holdings Co., Ltd., which oversees various regional water supply projects. Jiangnan Water has also expanded its influence through strategic acquisitions, notably purchasing local water companies to enhance its operational capacity and market reach.
Investment in technology has been pivotal for Jiangnan Water. In 2020, the company allocated around RMB 100 million (approximately USD 15.5 million) for technological upgrades to improve water treatment processes and ensure compliance with environmental standards.
| Year | Revenue (RMB) | Net Profit (RMB) | Production Capacity (Cubic Meters/Day) |
|---|---|---|---|
| 2019 | RMB 1.00 billion | RMB 150 million | 1.4 million |
| 2020 | RMB 1.02 billion | RMB 160 million | 1.5 million |
| 2021 | RMB 1.12 billion | RMB 180 million | 1.6 million |
| 2022 | RMB 1.25 billion (estimated) | RMB 200 million (estimated) | 1.7 million (estimated) |
Jiangnan Water's commitment to sustainability is evident in its initiatives aimed at reducing water wastage and improving supply efficiency. The company implemented a comprehensive water conservation strategy in 2022 that successfully decreased water loss rates to 8%, down from 10% in 2021.
The company is also actively pursuing opportunities in the wastewater treatment sector, having launched its first wastewater treatment plant in 2021, with a capacity of 300,000 cubic meters per day. This facility aims to treat sewage for a population of approximately 1 million residents.
Furthermore, Jiangnan Water's operations are backed by strong partnerships with municipal governments, which facilitate infrastructure development and investment in the regional water economy. By 2023, Jiangnan Water plans to expand its service area, targeting areas with growing populations and demand for clean water supply.
A Who Owns Jiangsu Jiangnan Water Co., Ltd.
Jiangsu Jiangnan Water Co., Ltd. is a public water supply company based in China. As of the latest available data, the ownership structure is characterized by a mix of institutional and individual shareholders.
The largest shareholder is Jiangsu Provincial Water Group Corporation, holding a significant stake of approximately 41.1% of the total shares. This stake indicates a strong influence over the company’s operational and strategic decisions.
Other notable shareholders include:
- China National Chemical Corporation: 10.5%
- Huatai Securities Co., Ltd.: 5.9%
- Individual investors collectively owning around 42.5%
The table below provides a detailed overview of the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Jiangsu Provincial Water Group Corporation | 41.1% |
| China National Chemical Corporation | 10.5% |
| Huatai Securities Co., Ltd. | 5.9% |
| Individual Investors | 42.5% |
In terms of market performance, Jiangsu Jiangnan Water Co., Ltd. reported a revenue of approximately CNY 1.2 billion for the fiscal year 2022, with a net profit margin of 14.7%.
The company’s stock is publicly traded on the Shanghai Stock Exchange under the ticker symbol 600466. As of October 2023, the stock price hovered around CNY 5.50 per share, reflecting a year-to-date performance increase of 9.8%.
Jiangsu Jiangnan Water Co., Ltd. operates across various segments, including water supply and wastewater treatment, contributing to its diversified revenue streams. The company has made investments to modernize its infrastructure, increasing efficiency and enhancing service delivery.
Furthermore, in recent years, Jiangsu Jiangnan Water Co., Ltd. has pursued strategic partnerships and joint ventures, aiming to expand its operational footprint and enhance service capabilities.
Jiangsu Jiangnan Water Co., Ltd. Mission Statement
Jiangsu Jiangnan Water Co., Ltd. is committed to providing high-quality water supply and wastewater treatment solutions in China. Its mission statement emphasizes a focus on sustainable development and environmental protection while ensuring customer satisfaction and operational excellence.
The company aims to integrate advanced technologies in its operations to enhance service delivery and water resource management. A significant aspect of its mission is to contribute to society by improving public health and quality of life through its water services.
Operational Highlights:- As of the fiscal year 2022, Jiangsu Jiangnan Water Co., Ltd. reported a water supply volume of approximately 1.1 billion cubic meters.
- The company operates over 100 water treatment plants across various provinces in China.
- In the fiscal year 2022, it achieved a revenue of approximately RMB 2.3 billion (around USD 340 million).
- Net profit for the same period was reported at RMB 500 million (around USD 75 million), reflecting a year-on-year growth of 10%.
The company also invests heavily in research and development (R&D) to innovate and improve its services, allocating around RMB 150 million to R&D annually. This commitment to innovation is reflected in its adoption of smart water technologies, aimed at optimizing the efficiency of water distribution and treatment processes.
| Year | Water Supply Volume (Cubic Meters) | Revenue (RMB) | Net Profit (RMB) | R&D Investment (RMB) |
|---|---|---|---|---|
| 2020 | 1.0 billion | 2.0 billion | 450 million | 120 million |
| 2021 | 1.05 billion | 2.1 billion | 480 million | 130 million |
| 2022 | 1.1 billion | 2.3 billion | 500 million | 150 million |
Jiangsu Jiangnan Water Co., Ltd. prioritizes environmental sustainability by implementing eco-friendly practices in its operations. The company has achieved a wastewater treatment rate of over 95%, ensuring that the discharge meets stringent environmental standards.
In terms of customer engagement, Jiangsu Jiangnan Water has developed digital platforms to enhance service delivery and responsiveness. The company reported that around 80% of its customer interactions now take place through these digital channels, significantly improving turnaround times for service requests.
Furthermore, Jiangsu Jiangnan Water Co., Ltd. actively participates in community development initiatives, contributing approximately RMB 20 million annually to local water conservation projects, aiming to foster a culture of responsible water use among residents.
Through these efforts, Jiangsu Jiangnan Water Co., Ltd. reinforces its mission to deliver exceptional water services while ensuring the sustainability of water resources and contributing positively to the communities it serves.
How Jiangsu Jiangnan Water Co., Ltd. Works
Jiangsu Jiangnan Water Co., Ltd. operates primarily in the water supply and sewage treatment industry in China. The company is involved in the provision of integrated water services which include the sourcing, treatment, supply, and sale of water, as well as the design and construction of water supply projects.
As of 2022, Jiangsu Jiangnan Water reported a revenue of approximately ¥1.4 billion (approximately $215.1 million), reflecting a growth of about 8% year-over-year from 2021. The net profit stood at around ¥300 million (around $46.4 million), demonstrating an increase of 10% over the previous fiscal year.
The company operates in several key segments:
- Water Supply Services
- Sewage Treatment
- Construction of Water Infrastructure
In terms of operational scale, Jiangsu Jiangnan Water manages over 20 water treatment plants with a combined daily capacity exceeding 2 million cubic meters of treated water.
The following table illustrates key financial metrics for Jiangsu Jiangnan Water Co., Ltd. for the fiscal year 2022:
| Financial Metric | 2022 (¥ million) | 2021 (¥ million) | Year-over-Year Change (%) |
|---|---|---|---|
| Revenue | 1,400 | 1,296 | 8% |
| Net Profit | 300 | 273 | 10% |
| Total Assets | 4,500 | 4,200 | 7.14% |
| Total Liabilities | 2,500 | 2,400 | 4.17% |
| Current Ratio | 1.5 | 1.4 | 7.14% |
The company's operational strategy focuses on expanding its footprint in Jiangsu province, supported by governmental initiatives aimed at improving water infrastructure and quality. This has translated into increased investments, with capital expenditure reaching approximately ¥500 million (around $77.9 million) in 2022.
Moreover, Jiangsu Jiangnan Water has implemented advanced technologies in its operations, including smart meters for water billing and IoT solutions for monitoring water quality, which has contributed to operational efficiency and customer satisfaction.
As of October 2023, Jiangsu Jiangnan Water is actively pursuing opportunities in renewable energy, particularly through the integration of anaerobic digestion in its sewage treatment processes, aiming to convert waste into biogas, which can be utilized for energy generation.
The company's stock performance has been relatively stable, with shares trading around ¥15 as of the last quarter of 2023, showing a modest increase of 5% compared to the previous quarter. The market capitalization is estimated at ¥3 billion (approximately $465 million).
In summary, Jiangsu Jiangnan Water Co., Ltd. showcases a robust business model centered around sustainable water management practices, supported by healthy financial growth and strategic technological investments.
How Jiangsu Jiangnan Water Co., Ltd. Makes Money
Jiangsu Jiangnan Water Co., Ltd. primarily generates revenue through water supply, wastewater treatment, and related services. As of the latest financial reporting for the fiscal year ending December 31, 2022, the company reported a total revenue of RMB 1.42 billion.
In terms of operational segments, the majority of the revenue is derived from water supply services, contributing approximately 70% of total revenue. Wastewater treatment services account for around 25%, while the remaining 5% comes from other utilities and ancillary services. This diversification in services allows the company to maintain steady cash flow and mitigate risks associated with reliance on a single revenue stream.
| Revenue Source | Revenue Contribution (%) | Estimated Revenue (RMB) |
|---|---|---|
| Water Supply Services | 70% | RMB 994 million |
| Wastewater Treatment Services | 25% | RMB 355 million |
| Other Utilities/Ancillary Services | 5% | RMB 71 million |
Jiangsu Jiangnan Water's business model is centered on long-term contracts with local governments and municipalities. These contracts often include fixed fees for water supply, which ensures predictable revenue streams. Additionally, the company has been expanding its footprint through partnerships with both public and private sectors, leading to enhanced capacity and operational efficiency.
In 2022, the operating profit was reported at RMB 258 million, with a profit margin of approximately 18%. The net profit for the same period stood at RMB 210 million, leading to a net profit margin of 14.8%. This solid profitability is supported by stringent cost controls and operational efficiencies, especially in energy consumption and maintenance of water supply systems.
The company’s expansion strategy includes investments in technology and infrastructure upgrades. For instance, Jiangsu Jiangnan Water has been leveraging advanced metering technology, which enhances service delivery and reduces water loss. Such initiatives not only optimize operational processes but also contribute to customer satisfaction and loyalty.
As of the latest available data, Jiangsu Jiangnan Water Co., Ltd. has been reporting a consistent increase in its customer base, with over 1.5 million residential and commercial users as of 2023. This growth in customer acquisition directly correlates with revenue growth, enabling the company to tap into urbanization trends in Jiangsu province.
The company also engages in environmental sustainability projects, which may avail them of state subsidies and grants aimed at promoting green technologies. In 2022, these initiatives contributed an estimated RMB 50 million to revenues through government support and enhanced operational grants.
The operating cash flow reported by Jiangsu Jiangnan Water for the fiscal year 2022 was around RMB 300 million, indicating strong liquidity and ability to fund future investments without heavily relying on debt financing.
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