ECH(603200)2025-04-28 12:40Financial Performance - In 2024, the company's operating revenue was CNY 510.02 million, a decrease of 5.80% compared to 2023, primarily due to a decline in water treatment equipment integration projects and municipal projects [24]. - The net profit attributable to shareholders in 2024 was CNY 42.95 million, an increase of 10.21% year-on-year, driven by high-margin engineering consulting services for offshore wind farms and improved collection of receivables [24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 14.19 million, a significant decrease of 57.69% compared to the previous year, mainly due to the decline in water treatment projects [24]. - The net cash flow from operating activities in 2024 was CNY 30.69 million, down 39.33% year-on-year, attributed to increased payments to employees and taxes [24]. - Basic and diluted earnings per share for 2024 were CNY 0.2452, reflecting a year-on-year increase of 9.61% due to the rise in net profit [25]. - The weighted average return on equity increased by 0.26 percentage points to 4.58% in 2024 [23]. - Total assets at the end of 2024 were CNY 1,582.65 million, a 7.62% increase from the end of 2023 [22]. - The net assets attributable to shareholders at the end of 2024 were CNY 960.73 million, up 4.15% from the previous year [22]. Dividend Policy - The profit distribution plan for 2024 is to distribute a cash dividend of 0.90 yuan per 10 shares (including tax), with no stock increase or bonus shares issued [6]. - The company has a cash dividend policy that prioritizes stable returns to investors while ensuring long-term operational sustainability [150]. - The company plans to continue expanding its market presence and investing in new technologies [125]. - The cumulative cash dividends over the last three accounting years amounted to 41.09 million CNY, with an average cash dividend ratio of 99.26% [160]. - The proposed cash dividend for 2024 is 0.90 CNY per 10 shares, pending approval from the shareholders' meeting [155]. Corporate Governance - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report [3]. - The company has received a B-level assessment result for its annual information disclosure work from the exchange [120]. - The board of directors includes independent members with diverse backgrounds, contributing to robust governance practices [125]. - The company has established a remuneration and assessment committee under the board to determine the compensation standards for directors and senior management [130]. - The company held its first extraordinary general meeting of 2024 on January 5, 2024, where several proposals, including amendments to the Articles of Association, were approved [122]. Risk Management - The company has detailed risk disclosures in the management discussion and analysis section of the report [8]. - The company operates in a challenging industry environment, with water resource scarcity and increasing demands for water conservation and wastewater discharge regulations impacting its business [37]. - The company has a risk emergency plan in place to mitigate potential environmental incidents, maintaining risks at acceptable levels [171]. - The company is exposed to environmental and safety risks associated with the handling of hazardous materials in its production processes [114]. Research and Development - The company has established a team of experienced professionals in the lithium-ion battery field, focusing on the development of advanced materials such as solid electrolytes and silicon-carbon anodes [52]. - The company is committed to enhancing its capabilities in environmental temperature control and system cooling for key areas such as data centers and energy storage [36]. - The company is focusing on innovative solutions in water treatment and has developed a comprehensive service system that includes water quality analysis, chemical dosing, and system management [53]. - Total R&D expenses amounted to ¥45,246,269.05, representing 8.87% of total revenue [71]. Market Strategy - The company aims to enhance its market share in industrial water treatment by providing new products, technologies, and personalized solutions, targeting sectors such as petrochemicals, coal chemicals, and new materials [34]. - The company is actively expanding its market presence in the fields of water treatment and advanced materials, leveraging its extensive project experience and technical expertise [52]. - The company plans to strengthen its market strategies in Southeast Asia, particularly in Vietnam, Thailand, and Indonesia, while exploring opportunities in the Middle East [106]. Environmental Compliance - The company has implemented measures to achieve zero wastewater discharge through advanced treatment processes at its facilities [170]. - The company’s environmental monitoring includes annual assessments of wastewater and air emissions at various points, ensuring compliance with environmental standards [171]. - The Ministry of Ecology and Environment released the "Technical Specification for Quality Verification of Pollutant Discharge Permits" (HJ 1299-2023), effective from July 1, 2023, providing comprehensive technical guidance for quality verification of discharge permits [83]. Production Capacity - The company has established a stable production line for homogeneous silicon-carbon anode materials with an annual capacity of ten tons, which has been in stable production for over a year [33]. - The company is expanding its production capacity with a hundred-ton production line completed in Zhejiang, which has passed customer inspections and is now planning production based on market demand [33]. - The company has completed nearly 70 key data center projects and has participated in over 170 data center projects, providing cooling services to major clients like Tencent and Huawei [103]. Financial Management - The net cash flow from investing activities for 2024 was -¥181,229,788.90, an increase of 28.29% from -¥141,260,324.23 in 2023 [74]. - The company has received a verbal warning from the Shanghai Stock Exchange on March 3, 2023, due to insufficient risk disclosure regarding the trial production of lithium-ion battery solid electrolyte powder [133]. - The company has made a 100% provision for impairment on the aforementioned assets in the 2019 fiscal year [198].