WELL.E(300190)2023-04-24 16:00Financial Performance - In 2022, the company achieved operating revenue of CNY 2,084,913,835.88, a decrease of 34.98% compared to the previous year[4]. - Environmental engineering revenue was CNY 575,568,379.79, down 66.51% year-on-year[4]. - The company recorded a net profit attributable to shareholders of CNY -449,599,778.43, a decline of 334.80% compared to the previous year[6]. - The company’s operating profit was CNY -502,982,728.27, reflecting a decrease of 363.66% year-on-year[6]. - The net cash flow from operating activities was ¥163,055,124.28, down 51.19% from ¥334,089,371.00 in 2021[24]. - The basic earnings per share for 2022 was -¥0.57, a decrease of 337.50% compared to ¥0.24 in 2021[24]. - The total assets at the end of 2022 were ¥9,905,726,198.16, a decrease of 7.01% from ¥10,652,680,394.80 at the end of 2021[24]. - The net assets attributable to shareholders of the listed company decreased by 12.44% to ¥3,838,942,970.11 from ¥4,384,394,800.00 in 2021[24]. - The company reported a significant loss in the fourth quarter with a net profit of -¥489,939,014.39, compared to profits in the first three quarters[27]. - The company experienced a substantial decline in non-recurring gains, totaling ¥16,178,926.67 in 2022 compared to ¥27,049,263.64 in 2021[32]. Impairment and Losses - The company recognized impairment losses on receivables totaling CNY 95,749,067.84 due to prolonged collection periods[5]. - Total goodwill impairment for subsidiaries amounted to CNY 172,820,571.99 during the reporting period[6]. - The company has made a total goodwill impairment provision of ¥172,820,571.99 due to the decline in performance of its subsidiaries[55]. Market Challenges - The company continues to face challenges in project bidding and execution, leading to lower-than-expected new orders[4]. - The energy-saving and emission-reduction services of the subsidiary were impacted by insufficient operating rates of upstream industrial clients[5]. - The overall market demand for biogas engineering services has been slow due to policy implementation delays and project planning issues[5]. - The overall demand for wet waste processing has not met expectations due to external economic factors, indicating potential challenges ahead[40]. Strategic Initiatives - The company plans to distribute a cash dividend of CNY 0.5 per 10 shares to all shareholders[7]. - The company has established over 60 projects for kitchen waste treatment, contributing to its strong position in the wet waste processing sector[41]. - The company is actively expanding its market presence in wet waste treatment through successful projects in key cities like Shanghai[41]. - The company aims to reduce energy consumption in industrial sectors by expanding its energy-saving business into the beer industry, utilizing high-temperature heat pump technology to achieve simultaneous heating and cooling[45]. - The company is focusing on industrial wastewater treatment, particularly in coal chemical, coking, and brewery wastewater sectors, with an estimated investment scale exceeding 5 billion for new coal chemical projects during the "14th Five-Year Plan" period[46]. Research and Development - The company emphasized research and development, achieving several awards and establishing a postdoctoral research station during the reporting period[58]. - The company continues to focus on technological innovation as a core competitive advantage, having participated in over 30 national and provincial research projects[59]. - The company obtained 10 new authorized invention patents and 53 utility model patents during the reporting period, along with participation in the development of 3 national standards and 3 industry standards[60]. Environmental Compliance - The company is engaged in the environmental protection industry, adhering to various national environmental laws and industry standards[173]. - The company has obtained all necessary environmental permits, which are currently valid[174]. - The company reported a total wastewater COD discharge of 120 tons, with a permitted limit of 250 tons per year, indicating compliance with environmental standards[175]. - The ammonia nitrogen discharge was recorded at 1.6 tons, well below the annual limit of 3.3 tons[175]. - The company has implemented advanced wastewater treatment technologies to ensure regulatory compliance and environmental protection[177]. Governance and Management - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making or operational activities[122]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[119]. - The company has established a complete and efficient organizational structure, independently exercising management authority[122]. - The company has developed a robust internal control system to promote effective governance and protect investor interests[118]. - The company completed a board restructuring in June 2022, with several directors and independent directors stepping down due to term expiration[126]. Future Outlook - The company provided a performance guidance for 2023, projecting a revenue growth of 10% to 1.65 billion RMB[140]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 300 million RMB allocated for potential mergers[140]. - Future strategies include expanding market presence and investing in new technologies for waste management[179]. - The company plans to deepen its core business while exploring emerging business areas, including industrial wastewater treatment and landfill restoration, aiming for new growth curves[106].