Science Environmental Protection (688480)2025-04-24 13:35Financial Performance - The company achieved a net profit attributable to ordinary shareholders of RMB 180,757,969.30 for the year 2024, with a proposed cash dividend of RMB 6.30 per 10 shares, totaling RMB 60,055,492.77, which represents 33.22% of the net profit [5]. - The company achieved operating revenue of CNY 927,193,355.37 in 2024, representing a 14.69% increase compared to CNY 808,404,965.99 in 2023 [22]. - Net profit attributable to shareholders reached CNY 180,757,969.30, a significant increase of 100.11% from CNY 90,327,937.30 in the previous year [25]. - The net cash flow from operating activities was CNY 66,674,122.30, showing a slight decrease of 0.96% compared to CNY 67,318,088.54 in 2023 [26]. - Total assets increased by 22.31% to CNY 1,826,160,633.21 at the end of 2024, up from CNY 1,493,018,387.90 at the end of 2023 [27]. - The net assets attributable to shareholders grew by 15.30% to CNY 1,074,395,389.39, compared to CNY 931,793,098.82 in the previous year [27]. - Basic earnings per share doubled to CNY 1.90 in 2024 from CNY 0.95 in 2023, reflecting a 100% increase [23]. - The company reported a quarterly revenue of CNY 342,402,067.80 in Q4 2024, contributing to the overall annual growth [29]. Research and Development - The R&D expenditure accounted for 6.10% of operating revenue, up from 5.67% in the previous year, indicating a focus on innovation [24]. - The total R&D expenses for the year reached ¥56,570,414.32, a 23.45% increase from ¥45,823,433.56 in the previous year [85]. - The increase in R&D expenses is primarily attributed to the acquisition of high-tech company Longli Chemical, leading to significant investments in R&D personnel and materials [86]. - The company is currently working on multiple R&D projects, with a total investment of ¥3,000 million across various initiatives [89]. - The company has developed advanced bio-agent products for heavy metal wastewater treatment, which significantly reduce operational costs and secondary pollution risks [96]. - The company has accumulated 139 intellectual property rights, including 60 invention patents, as of the end of the reporting period [81]. Business Strategy and Operations - The core business strategy is a "three-in-one" model, integrating technology, comprehensive solutions, and operational services for the non-ferrous metal industry and government departments [46]. - The company aims to be a leader in heavy metal pollution prevention, focusing on comprehensive solutions for wastewater, waste residue treatment, and resource utilization [45]. - The company plans to continue optimizing its business structure and increasing R&D investments to drive future growth [25]. - The company’s solutions are increasingly driving growth in product sales and operational services, creating a mutually beneficial ecosystem [46]. - The company has established a comprehensive service capability in heavy metal pollution prevention, integrating technology, products, production, and services into a unified operational system [98]. Market and Industry Trends - The heavy metal remediation market in China is expected to grow further due to stricter environmental policies and technological advancements [152]. - The heavy metal pollution prevention industry in China is transitioning from a fragmented to a concentrated market, with increasing barriers to entry and a focus on comprehensive service offerings [169]. - Companies with strong core technologies and R&D capabilities are expected to dominate the heavy metal pollution treatment market as regulatory pressures increase [170]. Governance and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm [4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties [7]. - The company has not violated any regulatory decision-making procedures for external guarantees [7]. - The company has not experienced any situation where more than half of the directors cannot guarantee the authenticity, accuracy, and completeness of the annual report [8]. - The company emphasized the importance of accurate and timely disclosure of significant information to protect shareholder interests [189]. Financial Management - The company actively expanded financing channels, resulting in a net cash flow from financing activities of CNY 13,790,269.58, a significant increase compared to the previous year [119]. - The company has a significant accounts receivable balance, which poses operational cash flow risks if not managed properly [108]. - The gross profit margin in the environmental protection industry improved by 5.93 percentage points to 34.64% [120]. - The company benefits from tax incentives as a high-tech enterprise, but changes in tax policies could adversely affect its financial performance [110]. Subsidiaries and International Expansion - The company completed the acquisition of Longli Chemical, which is now a wholly-owned subsidiary, expanding its product offerings in mining reagents and extraction agents [127][128]. - The company is expanding its market presence through the establishment of subsidiaries in Serbia and Australia, indicating a strategic focus on international growth [162]. - The company has a total of 10 subsidiaries, including Sains Engineering and Longli Chemical, focusing on environmental technology and chemical production [156]. Future Outlook - In 2025, the company aims to achieve a balanced development across its three core strategic areas: environmental governance, resource recovery, and new materials, with a focus on product quality and operational excellence [173]. - The company will pursue both internal and external investment opportunities to support sustainable growth and enhance investor relations [180]. - The company aims to expand its market presence and optimize its business layout to promote high-quality sustainable development [182].