As the era of AI driving revolutionary leaps in productivity and profound changes in production relations arrives, artificial intelligence's "thirst" for water has been overlooked. According to Morgan Stanley estimates, by 2028, the annual water consumption of AI data centers for cooling and power generation will reach 1,068 billion liters (baseline scenario), an 11-fold increase compared to 2024 estimates. Against the backdrop of global expansion of AI infrastructure, water resource management will become a critical theme. Additionally, in a country like China, which has nearly 20% of the world's population but only 7% of freshwater resources, efficient utilization and scientific management of water resources are particularly important.

With accelerated urbanization, problems such as aging water supply networks, external damage, and insufficient maintenance have led to serious leakage losses, not only causing resource waste but also increasing operational costs and water quality management difficulties for water supply companies. How to solve the industry's persistent problem of "high gap between production and sales in water supply" has become an important challenge facing major water supply enterprises.

CHINA WATER (00855) has continued to deepen its refined management and efficient operations in its main water supply business in recent years, particularly in innovative practices in the smart water field, setting a benchmark for the industry. The company has significantly reduced water supply network loss rates through comprehensive introduction of GIS, DMA zoning metering, remote monitoring, and digital work order systems, not only reaching but even exceeding international advanced levels, achieving dual benefits in economic and social terms.

**Refined Management: From "Experience-Based Networks" to "Digital Networks"**

Traditional water supply network management often relies on experience and manual inspections, which is both inefficient and difficult to detect concealed leaks in time. CHINA WATER has taken the lead in promoting network GIS systems in multiple subsidiary companies, digitalizing information such as network length, pipe diameter, material, burial depth, installation dates, and valves and fire hydrants, forming a "visualized underground map."

With GIS support, staff can quickly query and search, locate pipe burst points, and even achieve emergency dispatch through "valve closing search," significantly improving maintenance efficiency. At the same time, the company has interfaced GIS with SCADA systems, enabling rapid response to emergencies. This refined management approach of "moving from experience to data" has brought network management from behind the scenes to "on screen," greatly improving operational efficiency.

**Smart Water Services: DMA Zone Metering for Precise Leak Control**

Leak control is a recognized difficulty in the industry. CHINA WATER has established a closed-loop management model of "zone monitoring—intelligent analysis—rapid response" with DMA (District Metering Area) as the core.

Taking Shenzhen Industrial Zone Water Company as an example, the company has installed smart sensors at key nodes to monitor flow, pressure, and water quality changes in real time, combined with insertion flowmeters to complete secondary zone metering. When the system detects abnormal increases in minimum night flow, it automatically issues warnings and generates work orders, pushing them to inspection personnel immediately. This model not only makes leak location more precise but also compresses processing time to the shortest possible duration.

According to statistics, Shenzhen Industrial Zone Water Company's average loss rate is only 3%, even better than globally leading Japan (about 3.7%). This achievement has not only won industry recognition but also received the "Excellent Smart Water Application Case" award from the Ministry of Water Resources.

**Success Case: Huizhou Yiyuan's "Smart Leak Reduction"**

The value of smart water services has been fully demonstrated in the practice of Huizhou Yiyuan Company. Since 2019, the company has used the Aotou area as a pilot, taking the lead in completing DMA zone metering construction. Through multi-level zoning and remote monitoring, over 40 major leak points were discovered within just one year, cumulatively reducing water leakage by more than 1.05 million cubic meters.

As the system gradually improved, Yiyuan Company established a DMA system covering 7 primary zones, 15 secondary zones, 27 tertiary zones, and 87 quaternary zones. By the end of 2024, the company's production-sales gap rate had decreased from 12% in 2018 to below 7%, saving enormous costs for the enterprise while ensuring the safety and sustainability of regional water supply.

**Efficient Operations: Digital Work Orders Make Leak Repairs More Convenient**

Reducing leakage requires not only "precise leak detection" but also "rapid leak repair." CHINA WATER has digitalized and informatized work orders, inspections, maintenance, and other processes through field management systems. When the DMA system detects abnormalities and generates work orders, the orders immediately appear on the main map, showing dispatch time, on-site photos, safety briefing content, and maintenance results. The entire process is transparent, not only improving processing efficiency but also strengthening supervision and management.

With this system, the company has significantly shortened leak repair response time, truly achieving "fast leak detection, fast leak repair, and fast loss prevention."

**Industry Comparison: CHINA WATER's Leading Advantages**

According to Ministry of Housing and Urban-Rural Development data, the comprehensive loss rate of public water supply in cities and counties nationwide was 13.26% in 2020, with some cities exceeding 20%, while developed countries like Japan and Singapore maintain levels around 3.7% and 5% respectively. Against this backdrop, CHINA WATER has reduced loss rates in some areas to 3% through smart water applications, reaching or even exceeding international first-class levels.

This not only reflects the company's leadership in technology application and management models but also demonstrates its commitment to social responsibility: while conserving water resources, it has ensured the stability and safety of urban water supply.

**Conclusion**

As AI development becomes highly dependent on water resources, and driven by the national strategy of "water conservation first" and "dual carbon" goals, water supply enterprises must move toward more refined, digitalized, and intelligent development paths. CHINA WATER has charted a development path of "technology empowerment, refined management, and efficient operations" through continuous exploration and application in the smart water field.

From the 3% loss rate in Shenzhen Industrial Zone to the continuous decline in production-sales gap rate brought by Huizhou Yiyuan's DMA system, CHINA WATER has proven the tremendous value of smart water services through a series of successful cases. In the future, with the deep promotion of smart water services, CHINA WATER will not only continue to lead industry development but also contribute greater strength to ensuring national water security and promoting sustainable development.