三峰环境(601827) - 2021 Q4 - 年度财报

Definitions This section clarifies professional terminology, business models (e.g., BOT, PPP, EPC), and key company entities, forming a foundational understanding for the report - This section clarifies professional terminology, business models (e.g., BOT, PPP, EPC), and key company entities, forming a foundational understanding for the report[16][18] Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance over recent periods Key Accounting Data and Financial Indicators for the Past Three Years In 2021, the company achieved significant performance growth with revenue increasing by 19.16% and net profit attributable to shareholders by 71.78%, driven by new waste-to-energy projects and renewable energy subsidies Key Accounting Data for the Past Three Years (Unit: billion RMB) | Key Accounting Data | 2021 | 2020 | YoY Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5.87 | 4.93 | 19.16 | 4.36 | | Net Profit Attributable to Shareholders of Listed Company | 1.24 | 0.72 | 71.78 | 0.55 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 1.22 | 0.69 | 76.40 | 0.51 | | Net Cash Flow from Operating Activities | 1.85 | 1.08 | 71.00 | 1.37 | | Total Assets | 21.47 | 18.84 | 13.94 | 14.49 | Key Financial Indicators for the Past Three Years | Key Financial Indicators | 2021 | 2020 | YoY Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.74 | 0.47 | 57.45 | 0.43 | | Weighted Average Return on Net Assets (%) | 15.00 | 11.33 | Increased by 3.67 percentage points | 13.00 | - The significant increase in net profit and earnings per share was primarily due to projects like Baiguoyuan, Fuling, Korla, and Meizhou, along with some associated entities, being included in the renewable energy subsidy list during the period[31] - Net cash flow from operating activities increased by 71.00% year-on-year, mainly attributed to strong sales collection from subsidiaries including Sanfeng Cavanta, Sanfeng Technology, Chongqing Baiguoyuan, and Fuling Sanfeng[31] Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, industry landscape, core competencies, and future outlook Discussion and Analysis of Operations In 2021, the company achieved significant performance growth by constructing and operating waste-to-energy projects, expanding into new businesses, and making strides in technological innovation and financing - In 2021, the company commissioned 10 new waste-to-energy projects, adding 10,450 tons/day to its processing capacity, resulting in a 26.30% increase in annual waste processing volume and a 29.56% increase in power generation[40][42] - Market expansion included winning 3 new waste-to-energy BOT/PPP projects, adding 1,700 tons/day capacity, and entering new sectors such as road sweeping, kitchen waste, and medical waste disposal[42] - Subsidiary Sanfeng Cavanta signed 20 contracts for incinerators and complete equipment sets, covering 33 incineration lines, including the landmark Beijing Anding Circular Economy Industrial Park project serving the capital[42] - Total R&D investment for the year was 159 million RMB, resulting in 53 new patent authorizations and breakthroughs in ultra-low flue gas emissions, big data intelligent applications, and leachate treatment technologies[43] Industry Overview In 2021, China's solid waste treatment industry maintained strong growth driven by "green and low-carbon" and "dual carbon" goals, despite challenges from reduced market expansion, intensified competition, and the phase-out of renewable energy subsidies - The industry's strategic direction is "green and low-carbon," promoting waste reduction, resource utilization, and harmless treatment to achieve "dual carbon" goals[47] - The industry faces challenges including an anticipated reduction in daily urban domestic waste incineration capacity growth by the end of 2025 compared to the "13th Five-Year Plan" period, leading to intensified market competition and increased difficulty in securing and operating new projects[48] - Policy changes, including the full implementation of "competitive bidding for grid connection" for new waste-to-energy projects, mean renewable energy subsidies will gradually be phased out, posing significant challenges to project profitability[50] Business Overview The company's core business spans the entire waste-to-energy industry chain, including project investment and operation, EPC construction, and core equipment manufacturing, with 51 projects and a leading market position - The company possesses comprehensive full-industry-chain service capabilities in waste-to-energy, covering investment and operation, EPC construction, and core equipment R&D and manufacturing[51] - As of the end of the reporting period, the company had invested in 51 waste-to-energy projects with a designed daily processing capacity of 56,050 tons (including equity participation), and its technology and equipment have been applied in 225 projects and 375 incineration lines both domestically and internationally[51] Core Competencies The company's core strengths lie in its strong brand, advanced technology, proprietary equipment manufacturing, integrated industry chain, extensive operational experience, and a seasoned management team - Brand Advantage: The company has been recognized as one of China's "Top Ten Influential Enterprises in the Solid Waste Industry" for five consecutive years, with its products and technologies applied in 28 provinces and cities domestically and 8 countries overseas[52] - Technology and R&D: Leveraging national-level innovation platforms, the company has led the compilation of 6 national and industry standards and participated in 11, continuously advancing in flue gas purification and fly ash resource utilization[54] - Core Equipment: The company pioneered the localization of core waste incineration equipment (reverse-push mechanical grate furnace), known for its excellent combustion efficiency and stable operation[55] - Full Industry Chain Synergy: Possessing comprehensive capabilities in technology R&D, investment, construction, equipment manufacturing, and operation across the entire industry chain, effectively reducing costs and enhancing efficiency[55] Key Operating Performance During the reporting period, the company achieved operating revenue of 5.87 billion RMB, a 19.16% increase, and net profit attributable to shareholders of 1.24 billion RMB, a 71.78% increase, primarily driven by its power generation business Analysis of Income Statement and Cash Flow Statement During the reporting period, the company saw significant growth in several financial indicators, with operating revenue up 19.16% due to new projects and subsidy recognition, and net cash flow from operating activities increasing by 71.00% due to strong sales collection Major Changes in Income Statement and Cash Flow Statement Items | Item | Current Period (billion RMB) | Prior Period (billion RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5.87 | 4.93 | 19.16 | | R&D Expenses | 0.08 | 0.05 | 54.21 | | Net Cash Flow from Operating Activities | 1.85 | 1.08 | 71.00 | | Net Cash Flow from Financing Activities | -0.03 | 2.65 | -101.02 | Revenue and Cost Analysis The power generation segment was the strongest performer, with revenue and costs increasing by 44.38% and 31.37% respectively, and gross margin improving by 5.14 percentage points, driven by new projects and subsidy recognition Main Business by Product (Unit: billion RMB) | By Product | Operating Revenue | Operating Cost | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EPC Construction | 2.20 | 2.00 | 8.80 | -8.01 | -6.75 | Decreased by 1.23 percentage points | | Project Operation | 3.21 | 1.66 | 48.14 | 44.38 | 31.37 | Increased by 5.14 percentage points | | Equipment Sales | 0.46 | 0.34 | 26.08 | 48.59 | 49.53 | Decreased by 0.47 percentage points | Main Business by Region (Unit: billion RMB) | By Region | Operating Revenue | Operating Cost | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Within Chongqing | 2.66 | 1.69 | 36.22 | 55.55 | 37.47 | Increased by 8.39 percentage points | | Outside Chongqing | 3.22 | 2.32 | 27.99 | -0.13 | -4.06 | Increased by 2.94 percentage points | Analysis of Assets and Liabilities As of the end of the reporting period, total assets reached 21.47 billion RMB, a 13.94% increase, with significant shifts in asset structure due to accounting standard changes, and increased liabilities from contract liabilities and bond issuance Major Changes in Balance Sheet Items | Item Name | Period-End Balance (billion RMB) | Period-Beginning Balance (billion RMB) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 1.52 | 0.99 | 52.60 | New projects commissioned and subsidy list revenue recognition | | Construction in Progress | 0.10 | 4.59 | -97.88 | Accounting Standard Interpretation No. 14 reclassified PPP projects to intangible assets | | Intangible Assets | 14.75 | 8.05 | 83.34 | Accounting Standard Interpretation No. 14 reclassified PPP projects to intangible assets | | Contract Liabilities | 1.07 | 0.62 | 74.17 | Increase in advance receipts for goods sold | | Bonds Payable | 1.00 | - | Not applicable | Issuance of green medium-term notes | Future Development and Risk Analysis The company plans to maintain its focus on waste-to-energy while expanding into upstream and downstream segments, facing risks from policy changes, market competition, rising costs, and environmental compliance - Development Strategy: Focus on waste-to-energy as the core, vertically expanding into upstream and downstream businesses such as waste sorting, collection, and fly ash disposal, and horizontally into synergistic treatment of industrial solid waste and kitchen waste[109][111] - Operating Plan: In 2022, the company will continue to acquire high-quality projects, advance ongoing construction, and intensify R&D in key technologies such as big data factories, smart incineration, and fly ash resource utilization[112] - Major Risks: - Industry Policy Risk: The phase-out of renewable energy subsidies and competitive bidding policies introduce uncertainty to project profitability[113] - Market Competition Risk: The industry is maturing, with market penetration shifting to second and third-tier cities and counties, leading to intensified competition[115] - Cost Increase Risk: Rising raw material and labor costs, coupled with increased environmental investments, may erode project profitability[116] - Environmental and Safety Risk: Increasingly stringent environmental standards and safety production requirements pose compliance pressure[119] Corporate Governance This section details the company's governance structure, compliance with regulations, and the composition and changes within its board of directors, supervisors, and senior management Overview of Corporate Governance During the reporting period, the company maintained a standardized corporate governance structure, operating in strict compliance with laws and regulations, ensuring independence from its controlling shareholder, and transparent information disclosure - The company's governance structure is robust, with the General Meeting of Shareholders, Board of Directors, and Board of Supervisors operating in a standardized manner, and the re-election of the Board of Directors and Board of Supervisors completed during the reporting period[124][125] - The company maintains "five separations" (personnel, assets, finance, organization, business) from its controlling shareholder, Derun Environment, and indirect controlling shareholder, Water Affairs Environment, ensuring independent operation[127][129] Directors, Supervisors, and Senior Management During the reporting period, the company completed the re-election of its Board of Directors and Board of Supervisors, with some members departing and new ones appointed, and Mr. Lei Qinping elected as Chairman of the Second Board of Directors - The Board of Directors underwent re-election during the reporting period, with Wang Xiaojun, Zhang Zichun, Xu Haiyun, and Sun Changjun stepping down as directors, and Wang Qi, Kong Qingjiang, Leng Xiang, and Ming Yancheng elected as new directors[170] - The Board of Supervisors also completed its re-election, with Zou Hui stepping down as supervisor and Yang Xiaofan elected as a new supervisor[170] - Changes occurred in senior management, with Yang Zhengwen resigning as Board Secretary and Deputy General Manager, and Qian Jing appointed as Board Secretary and Deputy General Manager, and Wang Jiahong as Deputy General Manager[170] Environmental and Social Responsibility This section outlines the company's environmental performance, including compliance with emission standards, pollution control measures, and contributions to carbon reduction Environmental Information Several of the company's subsidiaries are designated as key pollution sources, primarily emitting flue gas and wastewater, all of which met discharge standards during the reporting period, with no exceedances - 25 of the company's subsidiaries are designated as key pollution sources for flue gas or wastewater, and all pollutants met discharge standards during the reporting period, with no exceedances[203][205] - The company has established an environmental execution system comprising flue gas treatment, leachate treatment, and other systems, along with strict environmental regulations and emergency response plans[244][248] - By incinerating waste instead of landfilling, the company avoids greenhouse gas emissions like methane and achieves carbon dioxide reductions through power generation that displaces fossil fuels, while continuously lowering its own carbon emissions through refined operations and technological innovation[253] Significant Matters This section covers the fulfillment of commitments made by the company's controlling shareholders and related parties, significant related party transactions, and the company's guarantee situation Fulfillment of Commitments During the reporting period, the company's controlling shareholder, actual controller, and other related parties strictly fulfilled all commitments made during the initial public offering, including share lock-up, avoidance of horizontal competition, and regulation of related party transactions - Controlling shareholders Derun Environment and Water Affairs Environment committed not to transfer shares for 36 months from the listing date, and this commitment remains in effect[261] - The 12-month share lock-up commitments of shareholders such as CITIC Environment and Chongqing Real Estate expired and were fulfilled on June 5, 2021[264][312] - Commitments by the controlling shareholder and actual controller regarding the avoidance of horizontal competition and the regulation of related party transactions are long-term and were strictly fulfilled during the reporting period[264][267] Significant Related Party Transactions The company's daily related party transactions in 2021 primarily involved providing leachate treatment services and selling spare parts to, and procuring hazardous waste disposal and waste transportation services from, related parties, all within estimated limits and approved procedures - Services provided and goods sold to related parties (Chongqing Derun Environment and its subsidiaries, etc.) amounted to 34.67 million RMB, which was below the estimated 61.40 million RMB[287] - Goods purchased and services received from related parties (Chongqing Herun Zhongtian Environmental Protection, etc.) amounted to 9.84 million RMB, which was below the estimated 14.93 million RMB[284] Guarantees As of the end of the reporting period, the company's total guarantees amounted to 3.31 billion RMB, representing 37.60% of its net assets, with all guarantees in normal fulfillment and no overdue situations Company's Total Guarantees (Unit: billion RMB) | Item | Amount | | :--- | :--- | | Total Guarantee Balance at Period-End (A) (excluding guarantees to subsidiaries) | 0.45 | | Total Guarantee Balance to Subsidiaries at Period-End (B) | 2.86 | | Total Guarantees (A+B) | 3.31 | | Ratio of Total Guarantees to Company's Net Assets (%) | 37.60% | Share Changes and Shareholder Information This section details the company's share capital movements and the profile of its shareholders and actual controller Changes in Share Capital During the reporting period, the company's total share capital remained unchanged at 1,678,268,000 shares, with a decrease in restricted shares and a corresponding increase in unrestricted tradable shares due to the lifting of initial public offering restrictions - During the reporting period, the company's total number of shares and share capital structure remained unchanged[309] - 421,473,000 shares were released from restrictions this year, all due to the expiration of initial public offering commitments, resulting in 878,527,000 restricted shares at year-end[312] Shareholder and Actual Controller Information As of the end of the reporting period, the company had 60,038 shareholders, with Chongqing Derun Environment Co., Ltd. as the controlling shareholder (43.86% stake) and the Chongqing State-owned Assets Supervision and Administration Commission as the actual controller Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | Chongqing Derun Environment Co., Ltd. | 736,099,000 | 43.86 | | CITIC Environment Investment Group Co., Ltd. | 185,978,400 | 11.08 | | Chongqing Water Affairs Environment Holding Group Co., Ltd. | 142,428,000 | 8.49 | | Chongqing City Real Estate Group Co., Ltd. | 101,725,000 | 6.06 | | China Cinda Asset Management Co., Ltd. | 61,035,000 | 3.64 | - The company's controlling shareholder is Chongqing Derun Environment Co., Ltd., and the actual controller is the Chongqing State-owned Assets Supervision and Administration Commission[331][334] Bond-Related Information This section details the company's bond issuance and management activities during the reporting period Bond Issuance and Management During the reporting period, the company successfully issued its first tranche of green medium-term notes for 2021, raising 1 billion RMB at a 3.01% coupon rate over a 3-year term, with all proceeds utilized as committed Basic Information on 2021 First Tranche Green Medium-Term Notes | Bond Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (billion RMB) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 21 Sanfeng Environment GN001 | 132100164 | 2021/12/22 | 2024/12/24 | 1.00 | 3.01 | - The company successfully issued 1 billion RMB in green medium-term notes in December 2021, with all proceeds utilized in accordance with the prospectus commitments[313][347] Financial Report This section presents the company's audited financial statements, including the audit opinion, key audit matters, and a summary of core financial data Audit Report Tianjian Certified Public Accountants issued a standard unqualified audit opinion on the company's 2021 financial statements, highlighting EPC construction revenue recognition and intangible assets (concession rights) as key audit matters due to significant management judgment - Audit Opinion: Standard unqualified opinion[353] - Key Audit Matters: - EPC Construction Revenue Recognition: Due to its significance as a key performance indicator and the substantial judgments involved in estimating performance progress and total costs[355] - Recognition and Measurement of Intangible Assets - Concession Rights: Due to their material amount and the significant management judgments involved in impairment testing[359] Financial Statements Summary The financial statements show the company achieved robust asset growth and strong profitability in 2021, with total assets increasing by 13.9% to 21.47 billion RMB, operating revenue up 19.2% to 5.87 billion RMB, and net profit attributable to shareholders rising 71.8% to 1.24 billion RMB Consolidated Financial Statements Core Data (Unit: billion RMB) | Item | December 31, 2021 / 2021 Annual | December 31, 2020 / 2020 Annual | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 21.47 | 18.84 | +13.94% | | Total Liabilities | 12.09 | 10.66 | +13.41% | | Total Equity Attributable to Parent Company Owners | 8.81 | 7.76 | +13.46% | | Total Operating Revenue | 5.87 | 4.93 | +19.16% | | Net Profit Attributable to Parent Company Shareholders | 1.24 | 0.72 | +71.78% | | Net Cash Flow from Operating Activities | 1.85 | 1.08 | +71.00% |