TCEPC(600874)2021-03-25 16:00Financial Performance - The net profit attributable to the parent company for 2020 was RMB 570,040,574.29, after deducting the statutory surplus reserve of RMB 60,804,977.56 and adding the beginning retained earnings of RMB 3,757,519,230.68, resulting in a distributable profit of RMB 4,114,041,385.40[7] - The company's operating revenue for 2020 was CNY 336,387.4 million, representing a year-on-year increase of 17.97% compared to CNY 285,145.3 million in 2019[25] - The net profit attributable to shareholders for 2020 was CNY 57,003.9 million, an increase of 12.41% from CNY 50,710.7 million in 2019[25] - The net cash flow from operating activities for 2020 was CNY 53,243.6 million, a decrease of 39.83% compared to CNY 88,493.3 million in 2019[25] - The total assets at the end of 2020 were CNY 1,880,296.9 million, reflecting a 4.51% increase from CNY 1,799,080.7 million at the end of 2019[25] - The basic earnings per share for 2020 was CNY 0.40, up 11.11% from CNY 0.36 in 2019[28] - The weighted average return on net assets for 2020 was 8.95%, an increase of 0.47 percentage points from 8.48% in 2019[28] - The company achieved operating revenue of RMB 336,387.4 million in 2020, representing a 17.97% increase compared to the previous year[47] - The operating cost increased by 12.65% to RMB 218,511.9 million, primarily due to increased business volume and higher effluent quality standards[50] - The net profit attributable to the parent company rose by 12.41% to RMB 57,003.9 million, driven by increased business volume and operating profit growth[47] Dividend Policy - The cash dividend proposed for 2020 is RMB 1.20 per 10 shares, totaling RMB 171,267,411.60, which accounts for 30.04% of the distributable profit for the year[7] - The total cash dividends for 2020 will be submitted for approval at the annual general meeting[7] - The company emphasizes the importance of cash dividends, stating that at least 20% of the distributable profits should be allocated as cash dividends each year, with a cumulative minimum of 30% over three years[110] - In the case of significant capital expenditures, the company will ensure that cash dividends constitute at least 40% of the profit distribution if in a mature phase[110] - The company has revised its profit distribution policy to prioritize cash dividends, ensuring transparency and sustainability in returns to shareholders[107] - The company aims to maintain a stable and continuous profit distribution policy while considering long-term interests and sustainable development[110] - The company will only distribute profits if it has positive distributable profits and sufficient cash flow, ensuring that it does not affect ongoing operations[110] Risk Management - The company has not reported any major risk warnings for the year[8] - The company has confirmed that there are no violations of decision-making procedures regarding external guarantees[8] - The company is focused on risk management, establishing a comprehensive risk management system to identify and respond to various business risks[109] - The company will continue to monitor external risks and implement risk prevention plans while focusing on production and operations amid the ongoing pandemic[99] - The company recognizes the potential risks associated with policy changes and operational management, particularly in the context of environmental regulations[109] Operational Developments - The company is still in a development phase and plans to allocate funds for external project development in 2021[7] - The company has established a big data operation management platform to promote high-quality development in operational management[41] - The company plans to raise up to RMB 1.8 billion through a private placement to repay interest-bearing debts and supplement working capital, pending regulatory approval[46] - The company plans to expand its operations in the central and western regions, driven by new project launches[59] - The company is positioned to benefit from increasing market opportunities in rural environmental governance and wastewater resource utilization, as outlined in national policy directives[37] Environmental Impact - The cumulative reduction of environmental pollutants included approximately 409,000 tons of COD and 209,000 tons of BOD, contributing significantly to water environment management[143] - The company’s wastewater treatment projects strictly adhered to relevant discharge standards, with normal operational conditions reported[144] - All operational wastewater treatment projects passed environmental impact assessments and received approvals from environmental protection departments[145] - The company has established emergency response plans for sudden environmental incidents, which have been reviewed and filed with local environmental authorities[146] - Environmental self-monitoring plans were implemented, with results publicly disclosed on local environmental monitoring platforms[147] Corporate Governance - The company has engaged PwC Zhongtian as its domestic auditor and RSM Hong Kong as its overseas auditor, both with a 26-year auditing history[119] - The supervisory board is responsible for overseeing the board's formulation and execution of profit distribution policies and shareholder return situations[113] - The company has confirmed compliance with the disclosure requirements of the Hong Kong Stock Exchange regarding related party transactions[131] - The company has consistently prioritized reasonable returns to investors since its restructuring in December 2000, with cash dividends issued in all years except 2018 due to the planning of a non-public offering in A-shares[113] Strategic Initiatives - The company is exploring opportunities for mergers and acquisitions to further its growth objectives[178] - The company is actively pursuing strategic investments to enhance its market position[178] - The company is considering strategic acquisitions to bolster its market position, targeting firms with complementary technologies[183] - The company has initiated a strategic partnership with a tech firm to enhance its digital capabilities[189] Employee and Management - The company has a workforce of 2,034 employees, with 21 holding senior titles, indicating a strong professional team in various fields[41] - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 13.2294 million yuan[195] - Changes in the board included the resignation of several directors and the appointment of new management personnel, indicating a restructuring within the company[198]