京蓝科技(000711) - 2020 Q4 - 年度财报(更正)

Part I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, the report's comprehensive table of contents, and definitions of key terms for clarity Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report, noting risks in competition, funding, and talent development, and no dividend distribution plan - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report content[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] - Key risks include intensified industry competition, significant capital demand and long operating cycles in the ecological environment industry, and rapidly increasing demand for core talent with diverse backgrounds[4] Table of Contents This section presents the complete directory structure of the annual report, covering all chapters from important notices to financial reports and reference documents, providing readers with the overall framework of the report - The report's table of contents comprises thirteen sections, covering core content such as company profile, business overview, operational analysis, significant events, and financial reports[8] Definitions This section provides definitions for common terms and company-related entities used in the report, ensuring accurate understanding of the content - The report clearly defines key entities such as the China Securities Regulatory Commission (CSRC), Shenzhen Stock Exchange, Jinglan Technology, controlling shareholder Yangshu Lantian, Jinglan Holdings, and its main subsidiaries[10] Part II Company Profile and Key Financial Indicators This section outlines the company's fundamental information, historical business changes, and a comprehensive overview of its key financial performance and position over recent periods I. Company Information This section provides the company's basic registration information, stock code, listing exchange, legal representative, registered and office addresses, company website, and email contact details - The company's stock abbreviation is 'Jinglan Technology', stock code 000711, listed on the Shenzhen Stock Exchange[12] - The legal representative is Yang Rengui, with the registered address in Harbin, Heilongjiang Province, and the office address in Chaoyang District, Beijing[12] II. Contact Persons and Information This section lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's board secretary and securities affairs representative, facilitating communication for investors and relevant parties - The Board Secretary is Liu Xin, and the Securities Affairs Representative is Tian Xiaonan, both with contact information at the Beijing office address[13] III. Information Disclosure and Document Availability This section specifies the company's designated information disclosure media, the CSRC-designated website, and the location where the annual report is available for inspection - The company's designated information disclosure media are China Securities Journal, Securities Times, and Shanghai Securities News, with the designated website being **Juchao Information Network (http://www.cninfo.com.cn)**[14](index=14&type=chunk) IV. Registration Changes This section reviews the company's significant business adjustments and changes in controlling shareholders since its listing, reflecting its strategic transformation history - The company's main business has undergone multiple adjustments, from high-tech products and real estate to information system integration, eventually transitioning to focus on ecological and environmental protection businesses (ecological water saving, landscape environment, soil remediation) between 2016 and 2018[15] - Controlling shareholders have changed multiple times, with Yangshu Lantian becoming the largest shareholder in 2016, holding 16.68% of shares at the end of the reporting period[15] V. Other Relevant Information This section discloses information about the accounting firm engaged by the company, the names of its signing accountants, and the financial advisor responsible for continuous supervision during the reporting period - The company engaged Zhongxingcai Guanghua Certified Public Accountants (Special General Partnership) for auditing, with Wang Fengqi and Zhang Mengyong as the signing accountants[16] - During the reporting period, Huatai United Securities Co., Ltd. served as the financial advisor, fulfilling continuous supervision duties[16] VI. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the past three years (2018-2020), showing a significant decline in operating revenue and net profit in 2020, but a positive net cash flow from operating activities 2018-2020 Key Accounting Data and Financial Indicators | Indicator | 2020 | 2019 | YoY Change | 2018 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 995,410,211.62 | 1,901,408,713.75 | -47.65% | 2,490,857,777.77 | | Net Profit Attributable to Listed Company Shareholders (RMB) | -2,399,698,095.52 | -1,036,745,832.56 | -131.46% | 102,535,975.63 | | Net Cash Flow from Operating Activities (RMB) | 60,169,476.13 | -88,641,195.85 | 167.88% | -843,379,277.69 | | Basic Earnings Per Share (RMB/share) | -2.34 | -1.03 | -127.18% | 0.12 | | Weighted Average Return on Net Assets | -69.79% | -22.11% | -47.68% | 2.39% | | Total Assets (RMB) | 9,671,022,194.26 | 12,118,205,650.23 | -20.19% | 10,994,938,944.75 | | Net Assets Attributable to Listed Company Shareholders (RMB) | 2,229,544,945.43 | 4,635,903,674.91 | -51.91% | 4,343,418,610.61 | - The company's net profit, whichever is lower before and after deducting non-recurring gains and losses, has been negative for the past three fiscal years[19] VII. Differences in Accounting Data Under Domestic and International Accounting Standards This section states that during the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[20] - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[21] VIII. Quarterly Key Financial Indicators This section presents the company's 2020 quarterly operating revenue, net profit attributable to listed company shareholders, net profit after deducting non-recurring gains and losses, and net cash flow from operating activities, showing a significant net loss in the fourth quarter 2020 Quarterly Key Financial Indicators | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 158,573,159.16 | 143,222,311.86 | 259,655,768.26 | 433,958,972.34 | | Net Profit Attributable to Listed Company Shareholders (RMB) | -49,845,783.85 | -243,664,863.58 | -143,622,647.95 | -1,962,564,800.14 | | Net Cash Flow from Operating Activities (RMB) | -75,736,894.26 | -112,978,694.35 | 182,154,744.59 | 66,730,320.15 | IX. Non-Recurring Gains and Losses Items and Amounts This section details the company's non-recurring gains and losses items and amounts for the past three years (2018-2020), with a total of 40.44 million RMB in non-recurring gains and losses in 2020 2018-2020 Non-Recurring Gains and Losses Items and Amounts | Item | 2020 Amount (RMB) | 2019 Amount (RMB) | 2018 Amount (RMB) | | :--- | :--- | :--- | :--- | | Non-current asset disposal gains and losses | 79,144.33 | 18,792,269.73 | 14,984,143.92 | | Government grants recognized in current profit or loss | 3,966,846.03 | 8,681,570.64 | 6,120,463.44 | | Fund occupation fees received from non-financial enterprises recognized in current profit or loss | 15,836,442.08 | 25,288,811.71 | 15,087,337.48 | | Reversal of impairment provisions for accounts receivable and contract assets subject to individual impairment testing | 34,106,598.96 | 0.00 | 0.00 | | Other non-operating income and expenses apart from the above | 4,897,346.67 | -16,856,444.28 | -1,958,642.37 | | Less: Income tax impact | 6,236,347.98 | 4,321,541.56 | 4,970,883.34 | | Minority interest impact (after tax) | 12,205,230.60 | 4,555,633.09 | 1,257,471.61 | | Total | 40,444,799.49 | 27,029,033.15 | 28,070,417.04 | Part III Company Business Overview This section outlines the company's core business segments, significant asset changes, and key competitive advantages, highlighting its strategic focus and market position I. Main Businesses During the Reporting Period During the reporting period, the company's main businesses covered four segments: industrial ecology, ecological water conservancy, ecological environment, and smart ecology, with soil remediation being the primary revenue source, accounting for 69.18% of total revenue, utilizing various operating models such as general contracting, EPC, and PPP - The company's main business segments include industrial ecology, ecological water conservancy, ecological environment, and smart ecology, forming a virtuous complementary relationship[27] - In 2020, operating revenue was 995.41 million RMB, primarily from soil remediation business, which generated 688.65 million RMB, accounting for 69.18% of total revenue[27][28] - Ecological water conservancy operation services generated 225.52 million RMB (22.66% of total revenue), while other business segments (e.g., landscape engineering) generated 60.33 million RMB (6.06% of total revenue)[29][30] - The company's operating models primarily include general contracting, EPC projects, and PPP projects[31] II. Significant Changes in Major Assets This section explains significant changes in the company's major assets during the reporting period, including the reasons for variations in equity investments, fixed assets, and intangible assets - The increase in equity investments was primarily due to the combined effect of increased investments in equity-accounted companies and decreased net profit/loss of investees[33] - Changes in fixed assets were mainly due to the combined effect of former subsidiary Jinglan Yunzhi IoT Technology Co., Ltd. no longer being consolidated, new fixed asset purchases, and depreciation accruals[33] - The increase in intangible assets was primarily due to more project companies having concession rights with uncertain revenue amounts[33] III. Analysis of Core Competitiveness The company's core competitiveness lies in its long-term corporate mission, positive core values, clear development strategy, comprehensive functional division, excellent financial and industrial integration capabilities, strong management team and industry resource integration, robust R&D and independent innovation capabilities, and promising market outlook - The company's mission is 'Green Mountains, Clear Waters, Blue Skies, Enduring China Dream,' aiming to become a leading international 'ecological environment planning, investment, construction, and operation service provider'[34] - The company enhances its smart ecological industry chain through mergers and acquisitions, achieving resource integration and improving risk resistance and operational efficiency[35] - The company possesses multiple core technologies (soil remediation, water body treatment, agricultural waste recycling), 232 invention and utility model patents, 68 software copyrights, and operates academician and postdoctoral workstations[36] - The company's main business is in a national strategic investment priority area, with huge market potential in soil remediation and smart water conservancy, giving it a leading industry advantage and competitive barriers[37] Part IV Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial position, and investment activities, highlighting key business segments, asset and liability changes, and future development strategies I. Overview During the reporting period, the company pursued a diversified development strategy, combining organic growth with external expansion, focusing on four business segments: industrial ecology, ecological water conservancy, ecological environment, and smart ecology; in 2020, operating revenue and net profit significantly declined due to the pandemic and macroeconomic factors, total assets decreased mainly due to goodwill impairment, and total liabilities increased primarily due to financing needs - The company's core business focuses on four major segments: industrial ecology, ecological water conservancy, ecological environment, and smart ecology, providing integrated solutions[39] - The industrial ecology segment (Zhongke Dingshi) enhanced its ecological environment layout through acquisitions, gaining 'water and soil co-governance' capabilities and winning bids for multiple soil and groundwater remediation projects[40] - The ecological water conservancy segment (Jinglan Muhe) deepened its positioning as an 'agricultural steward, ecological expert,' providing comprehensive solutions for efficient water saving and water source construction, and signing strategic cooperation agreements[41] - The ecological environment segment (Beifang Yuanlin, Jinglan Environmental Technology, etc.) increased soil remediation technology development, won rural revitalization projects, and signed strategic cooperation agreements[42] 2020 Operating Performance and Asset Status | Indicator | 2020 Amount (RMB 10,000) | YoY Change (RMB 10,000) | Change Ratio | | :--- | :--- | :--- | :--- | | Operating Revenue | 99,541.02 | -90,599.85 | -47.65% | | Net Profit Attributable to Listed Company Shareholders | -239,969.81 | -136,295.23 | -131.46% | | Total Assets (Year-End 2020) | 967,102.22 | -244,718.35 | -20.19% | | Total Liabilities (Year-End 2020) | 704,787.13 | 20,304.42 | 2.97% | - The significant decline in performance was mainly due to the COVID-19 pandemic, macroeconomic conditions, and changes in the financial environment, leading to slower project progress, reduced operating revenue, and decreased profit; the decrease in total assets was primarily due to goodwill impairment; the increase in total liabilities was mainly due to increased external financing to meet operating capital needs[44] II. Main Business Analysis This section details the company's main business revenue and cost structure, including operating revenue and gross profit margins by industry, product, and region; in 2020, ecological water saving and landscape environment business revenues significantly declined, while soil remediation revenue slightly increased; R&D investment decreased year-on-year, but the company still possesses multiple core technologies and research platforms in environmental remediation 2020 Operating Revenue Composition (by Industry) | Industry | 2020 Amount (RMB) | Proportion of Operating Revenue | 2019 Amount (RMB) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ecological Water-Saving Operation Services | 225,519,519.92 | 22.66% | 1,058,342,650.57 | 55.66% | -78.69% | | Landscape Environmental Technology Services | 60,328,661.70 | 6.06% | 153,724,453.24 | 8.08% | -60.76% | | Soil Remediation Operation Services | 688,652,906.71 | 69.18% | 671,511,136.75 | 35.32% | 2.55% | | Other Industries | 20,909,123.29 | 2.10% | 17,830,473.19 | 0.94% | 17.27% | 2020 Operating Revenue and Cost (by Industry) | Industry | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ecological Water-Saving Operation Services | 225,519,519.92 | 421,206,683.23 | -86.77% | -78.69% | -47.18% | -111.43% | | Soil Remediation Operation Services | 688,652,906.71 | 452,829,189.52 | 34.24% | 2.55% | 4.13% | -1.00% | 2020 Expense Situation | Item | 2020 (RMB) | 2019 (RMB) | YoY Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 93,275,196.77 | 69,806,287.96 | 33.62% | Due to increased efforts in collections, higher personnel salaries from sales collection policies, and increased agency service fees | | Administrative Expenses | 311,186,989.24 | 289,921,906.39 | 7.33% | Due to controlled expense outlays and increased agency service fees | | Financial Expenses | 638,639,261.89 | 340,587,187.43 | 87.51% | Primarily due to increased interest from changes in financing structure | | R&D Expenses | 27,886,486.05 | 45,572,033.90 | -38.81% | Due to reduced R&D investment | - The company's subsidiary Zhongke Dingshi possesses core soil remediation technologies such as thermal desorption, ambient temperature desorption, and solidification/stabilization, and participates in multiple national/provincial-level scientific research projects[57][60][61][62][63][64] 2020 R&D Investment | Indicator | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Number of R&D Personnel (people) | 120 | 159 | -24.53% | | R&D Investment Amount (RMB) | 27,886,486.05 | 45,572,033.90 | -38.81% | | R&D Investment as % of Operating Revenue | 2.80% | 2.40% | 0.40% | 2020 Cash Flow | Item | 2020 (RMB) | 2019 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 60,169,476.13 | -88,641,195.85 | 167.88% | | Net Cash Flow from Investing Activities | -134,696,371.62 | -131,707,822.40 | -2.27% | | Net Cash Flow from Financing Activities | 96,617,563.31 | 25,110,334.27 | 284.77% | | Net Increase in Cash and Cash Equivalents | 22,090,667.82 | -195,238,683.98 | 111.31% | III. Non-Core Business Analysis This section analyzes the impact of non-core businesses on total profit, with asset impairment being the primary factor, accounting for 52.36% of total profit, mainly due to goodwill, long-term assets, and inventory impairment 2020 Impact of Non-Core Businesses on Total Profit | Item | Amount (RMB) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -1,176,371.29 | 0.05% | | Yes | | Asset Impairment | -1,334,086,677.94 | 52.36% | Goodwill, long-term assets, and inventory impairment | No | | Non-operating Income | 7,622,908.40 | -0.30% | | No | | Non-operating Expenses | 2,163,047.76 | -0.08% | | No | IV. Analysis of Assets and Liabilities This section analyzes the composition and significant changes in the company's assets and liabilities; at the end of 2020, both total assets and net assets attributable to listed company shareholders decreased, the liability structure changed, and both short-term and long-term borrowings increased Significant Changes in Asset Composition at Year-End 2020 | Major Asset | 2020 Year-End Amount (RMB) | Proportion of Total Assets | 2020 Year-Beginning Amount (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 321,412,946.15 | 3.32% | 383,372,540.97 | 3.16% | 0.16% | Due to the combined impact of cash flows from operating, investing, and financing activities | | Accounts Receivable | 1,279,570,429.23 | 13.23% | 1,966,154,875.23 | 16.22% | -2.99% | Primarily due to enhanced collection efforts for engineering projects across business segments and impairment of receivables | | Inventories | 789,118,010.73 | 8.16% | 680,900,264.45 | 5.62% | 2.54% | Primarily due to increased contract performance costs and decreased raw materials and inventory goods | | Long-Term Equity Investments | 7,860,758.11 | 0.08% | 5,514,569.40 | 0.05% | 0.03% | Due to the combined impact of increased investments in equity-accounted companies and decreased net profit/loss of investees | | Fixed Assets | 432,297,833.39 | 4.47% | 406,028,004.92 | 3.35% | 1.12% | Primarily due to former subsidiary Jinglan Yunzhi IoT Technology Co., Ltd. no longer being consolidated, new fixed asset purchases, and depreciation accruals | | Short-Term Borrowings | 1,649,970,966.15 | 17.06% | 1,728,798,522.72 | 14.27% | 2.79% | Primarily due to changes in financing structure | | Long-Term Borrowings | 586,600,000.00 | 6.07% | 149,771,608.59 | 1.24% | 4.83% | Primarily due to changes in financing structure | | Contract Assets | 2,940,657,649.19 | 30.41% | 3,203,726,524.07 | 26.44% | 3.97% | Primarily due to contract asset impairment | - As of the end of the reporting period, the company's major assets were not subject to seizure or detention, with detailed information on asset mortgages, pledges, and freezes provided in the financial report notes[73] V. Investment Status This section outlines the company's investment activities during the reporting period, showing a significant year-on-year decrease in total investment; it discloses major equity investments, including in Hangzhou Zhenfu Investment Management Partnership, and details the use of raised funds, noting that some projects did not meet planned progress or expected returns, but the company has taken measures for adjustment and closure Investment Amount During Reporting Period | Indicator | Investment Amount During Reporting Period (RMB) | Investment Amount in Prior Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment Amount | 127,424,300.00 | 1,338,943,169.88 | -90.48% | - During the reporting period, the company made an equity investment of 113.32 million RMB in Hangzhou Zhenfu Investment Management Partnership (Limited Partnership), holding a 74.71% stake[75] Status of Committed Projects Funded by Raised Capital (Partial) | Committed Investment Project | Adjusted Total Investment (RMB 10,000) | Cumulative Investment at Period-End (RMB 10,000) | Investment Progress at Period-End | Project Achieved Expected Benefits | | :--- | :--- | :--- | :--- | :--- | | Cash consideration for this transaction | 47,300 | 47,300 | 100.00% | Not applicable | | Jinglan Smart Ecological Cloud Platform Project | 10,232 | 5,204.7 | 50.87% | Not applicable | | Annual production of 600 large intelligent sprinkler irrigation machines project | 5,920.71 | 5,864.65 | 99.05% | No | | Smart high-efficiency agricultural water-saving project | 65,000 | 65,028.7 | 100.04% | No | - The annual production of 600 large intelligent sprinkler irrigation machines project and the smart high-efficiency agricultural water-saving project did not meet planned progress or expected returns, primarily due to market environment changes, design modifications, stricter environmental policies, and insufficient construction time[80] - The Jinglan Smart Ecological Cloud Platform project, through cooperation with Alibaba Cloud, significantly reduced costs and accelerated R&D speed, achieving expected implementation results and project closure[81] VI. Significant Asset and Equity Sales This section states that the company did not have any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[83] - The company did not sell significant equity during the reporting period[84] VII. Analysis of Major Holding and Participating Companies This section analyzes the financial status and operating results of the company's major subsidiaries, Jinglan Muhe Water-Saving Equipment Co., Ltd. and Jinglan Beifang Yuanlin (Tianjin) Co., Ltd., and discloses the acquisition and disposal of subsidiaries during the reporting period Major Holding Subsidiary Financial Data (2020) | Company Name | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jinglan Muhe Water-Saving Equipment Co., Ltd. | 5,371,396,025.40 | 1,873,180,673.54 | 222,229,887.71 | -753,057,707.68 | -762,846,136.42 | | Jinglan Beifang Yuanlin (Tianjin) Co., Ltd. | 2,035,922,583.73 | -382,059,965.67 | 60,328,661.70 | -407,295,725.06 | -398,719,029.48 | - During the reporting period, the company established Jinglan Environmental Technology (Chengdu) Co., Ltd. and Chifeng Muhe Hotel Co., Ltd., and deregistered 3 subsidiaries, including Jinglan Muhe Julu Tiantiantong Agricultural Water Supply Co., Ltd.[87] VIII. Structured Entities Controlled by the Company This section states that the company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[88] IX. Outlook on Company's Future Development The company's future outlook analyzes external factors (pandemic impact and 'new infrastructure' opportunities) and internal strengths (R&D, qualifications, strategic partnerships); it will adhere to a diversified development strategy, focusing on comprehensive ecological environment governance through organic growth and external expansion, with detailed operational plans for synergistic development across business segments and strengthened internal management to address competition, funding, and talent risks - The COVID-19 pandemic in 2020 significantly impacted the progress and collection of the company's engineering projects, but domestic epidemic prevention and control achieved remarkable results, with the central government introducing multiple financial support policies and 'new infrastructure' development opportunities[87][88] - The company's internal strengths include R&D capabilities through cooperation with research institutes and universities (core technologies in soil remediation, water body treatment), multiple high-value qualifications, and strategic partnerships with enterprises and institutions[89] - The company's development strategy is to adhere to diversification, leverage capital market advantages, combine organic growth with external expansion, build a 'solution + investment and operation' business model, and become a leading international ecological environment service provider[91] - Operational plans include: Jinglan Muhe strengthening market development, risk control, refined management, and talent cultivation; Zhongke Dingshi promoting qualification upgrades, market expansion, financial compliance, and technology R&D; Jinglan Environmental deepening market expansion, comprehensive budget management, and business contract management; Jinglan Yuanlin establishing regional marketing and production models, and implementing project manager contracting[92][93][94] - The management headquarters will enhance internal control compliance, improve capital and budget management, strengthen human resource development, perfect management systems, and actively explore domestic and international markets[95] - Potential risks and countermeasures: competition risk (improving industry chain, external growth), funding risk (refinancing, industrial funds, strengthening management), core talent cultivation risk (detailed HR system, optimizing structure, improving incentives)[96] X. Reception of Research, Communication, Interview, and Other Activities This section discloses the company's reception of investor research and communication activities during the reporting period, including 36 phone communications with individual investors, primarily discussing company operations, project progress, fulfillment of compensation obligations, and future development plans, without disclosing undisclosed material information Reception of Research, Communication, Interview, and Other Activities During Reporting Period | Reception Date | Reception Method | Type of Recipient | Recipient | Main Topics Discussed and Materials Provided | Number of Receptions | Number of Individuals Received | Undisclosed Material Information Disclosed, Revealed, or Leaked | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | November 20, 2020 | Phone Communication | Individual | Investor | Company operations, project progress, fulfillment of compensation obligations, future development plans, etc.; no materials provided | 36 | 36 | No | Part V Significant Events This section details the company's profit distribution plans, fulfillment of commitments, major litigation, and other significant events, providing insights into corporate governance and material developments I. Profit Distribution of Ordinary Shares and Capital Reserve Conversion to Share Capital This section discloses the company's ordinary share dividend distribution plans for the past three years (2018-2020), all of which involve no cash dividends, bonus shares, or conversion of capital reserves into share capital - The company planned no cash dividends, bonus shares, or conversion of capital reserves into share capital for the 2018, 2019, and 2020 fiscal years[99] Company's Cash Dividend Distribution for Ordinary Shares in the Past Three Years | Dividend Year | Cash Dividend Amount (incl. tax) (RMB) | Net Profit Attributable to Ordinary Shareholders of Listed Company (RMB) | Ratio of Cash Dividend Amount to Net Profit Attributable to Ordinary Shareholders of Listed Company in Consolidated Statements | | :--- | :--- | :--- | :--- | | 2020 | 0.00 | -2,354,850,607.11 | 0.00% | | 2019 | 0.00 | -1,036,745,832.56 | 0.00% | | 2018 | 0.00 | 102,535,975.63 | 0.00% | II. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period This section reiterates the company's plan for the year to not distribute cash dividends, bonus shares, or convert capital reserves into share capital - The company plans no cash dividends, bonus shares, or conversion of capital reserves into share capital for the year[102] III. Fulfillment of Commitments This section details the fulfillment status of commitments by the company's actual controller, shareholders, related parties, and the company itself during the reporting period, including independence, avoidance of horizontal competition, regulation of related-party transactions, share lock-up, and performance commitments; notably, Beifang Yuanlin's performance commitment was not met, and the company has filed a lawsuit and obtained a judgment - Multiple commitments are ongoing, including long-term commitments from the controlling shareholder and actual controller regarding independence, avoidance of horizontal competition, and regulation and reduction of related-party transactions[103][104][105][106][107][108][109][110][111][112][113] - Beifang Yuanlin's performance commitment was overdue and unfulfilled, primarily due to macroeconomic conditions and changes in the financial environment, leading to reduced operating revenue and decreased profit; the company has filed a lawsuit and obtained a judgment, requiring the compensation obligors to fulfill their compensation obligations[114] Zhongke Dingshi Environmental Engineering Co., Ltd. 2020 Performance Commitment Fulfillment | Indicator | Committed Performance (RMB 10,000) | Actual Performance for Current Period (RMB 10,000) | Performance Commitment Ratio | | :--- | :--- | :--- | :--- | | Net profit attributable to parent company after deducting non-recurring gains and losses | 40,000 (three-year cumulative) | 11,685.96 (2020) | N/A | | Net cash flow from operating activities | 15,000 (three-year cumulative) | N/A | N/A | - Zhongke Dingshi's 2020 performance commitment fulfillment exceeded profit forecast expectations, and no goodwill impairment was recognized during the reporting period[117] IV. Non-Operating Fund Occupation by Controlling Shareholder and Its Related Parties This section states that during the reporting period, there was no non-operating fund occupation by the controlling shareholder and its related parties of the listed company - The company had no non-operating fund occupation by its controlling shareholder or related parties during the reporting period[117] V. Explanations by the Board of Directors, Supervisory Board, and Independent Directors (if any) on the Accounting Firm's 'Non-Standard Audit Report' for the Current Period This section states that the accounting firm did not issue a non-standard audit report for the company during the reporting period - The company did not receive a non-standard audit report from the accounting firm during the reporting period[118] VI. Explanation of Changes in Accounting Policies, Accounting Estimates, and Accounting Methods Compared to the Previous Year's Financial Report This section explains that the company adopted new revenue standards from January 1, 2020, and retrospectively adjusted relevant items in the opening consolidated financial statements, detailing the impact on consolidated balance sheet and income statement items under both new and old standards - The company adopted the Ministry of Finance's revised 'Enterprise Accounting Standard No. 14—Revenue' (New Revenue Standard) starting January 1, 2020[118][119] Impact of Adopting New Revenue Standard on Opening Consolidated Statement Items for 2020 | Statement Item | December 31, 2019 (RMB) | January 1, 2020 (RMB) | | :--- | :--- | :--- | | Contract Assets | 0.00 | 3,203,726,524.07 | | Inventories | 4,354,696,634.50 | 680,900,264.45 | | Advances from Customers | 905,195,208.15 | 0.00 | | Contract Liabilities | 0.00 | 412,191,529.29 | | Undistributed Profits | -581,857,220.20 | -592,947,437.92 | | Owners' Equity Attributable to Parent Company | 4,635,903,674.91 | 4,624,813,457.19 | Impact of Adopting New Revenue Standard on 2020 Consolidated Income Statement Items | Statement Item | Current Period Amount Under New Standard (RMB) | Current Period Amount Under Original Standard (RMB) | | :--- | :--- | :--- | | Asset Impairment Losses | -1,334,086,677.94 | -1,338,171,195.42 | | Total Profit | -2,481,562,301.71 | -2,485,646,819.19 | | Net Profit | -2,531,322,158.15 | -2,534,655,123.93 | VII. Explanation of Significant Accounting Error Corrections Requiring Retrospective Restatement During the Reporting Period This section states that the company had no significant accounting error corrections requiring retrospective restatement during the reporting period - The company had no significant accounting error corrections requiring retrospective restatement during the reporting period[121] VIII. Explanation of Changes in Consolidation Scope Compared to the Previous Year's Financial Report This section explains that the company's consolidation scope changed in 2020, with 2 new subsidiaries added and 3 deregistered, reducing the total number of consolidated subsidiaries from 48 to 47 - In 2020, the company consolidated 47 subsidiaries, an increase of 2 and a decrease of 3 compared to the previous period[122] - Newly consolidated subsidiaries established in the current period are Jinglan Environmental Technology (Chengdu) Co., Ltd. and Chifeng Muhe Hotel Co., Ltd.[123] - Subsidiaries deregistered in the current period are Jinglan Muhe Julu Tiantiantong Agricultural Water Supply Co., Ltd., Tianjin Landscape Water Environment Restoration Technology Co., Ltd., and Tianjin Beifang Kechuang Environmental Testing Co., Ltd.[123] IX. Appointment and Dismissal of Accounting Firms This section discloses that the company appointed Zhongxingcai Guanghua Certified Public Accountants (Special General Partnership) as its 2020 audit firm and states that no change in accounting firms occurred during the reporting period - The company engaged Zhongxingcai Guanghua Certified Public Accountants (Special General Partnership) as its domestic accounting firm, with 6 consecutive years of audit services and a remuneration of 1.05 million RMB[124] - During the reporting period, the company did not change its accounting firm[124] - The company engaged Zhongxingcai Guanghua Certified Public Accountants (Special General Partnership) as its 2020 internal control audit firm, with a fee of 600,000 RMB[124] X. Delisting Risk After Annual Report Disclosure This section states that the company does not face delisting after the annual report disclosure - The company did not face delisting during the reporting period[125] XI. Bankruptcy and Reorganization Matters This section states that the company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[125] XII. Major Litigation and Arbitration Matters This section discloses the company's major litigation and arbitration matters, primarily including lawsuits filed against relevant parties due to Beifang Yuanlin's unfulfilled performance commitment, for which the court has issued a first-instance judgment requiring compensation; it also discloses other litigation and arbitration cases not meeting the materiality threshold - Due to Beifang Yuanlin's unfulfilled performance commitment, the company filed a lawsuit against Beikong Engineering, Gao Xuegang, and other related parties, involving an amount of 720.88 million RMB[126] - The court has issued a first-instance judgment regarding the Beifang Yuanlin performance commitment lawsuit, requiring the defendants to fulfill their compensation obligations, with the judgment result not impacting the company's 2020 net profit[126] Major Litigation and Arbitration Matters During Reporting Period | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Execution Status of Litigation (Arbitration) Judgment | | :--- | :--- | :--- | :--- | :--- | | Beifang Yuanlin performance commitment unfulfilled lawsuit | 72,087.85 | No | Court has issued a first-instance judgment | Not yet started execution | | Litigation/arbitration not meeting major disclosure standards - Company (incl. subsidiaries) suing others | 3,383.36 | No | Some have been concluded with judgments, some are not yet heard or withdrawn/settled | Some executed, some not yet in execution phase | | Litigation/arbitration not meeting major disclosure standards - Others suing the company (incl. subsidiaries) | 26,097 | No | Some have been concluded with judgments, some are not yet heard or withdrawn/settled | Some executed, some not yet in execution phase | XIII. Penalties and Rectification This section states that the company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[129] XIV. Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller This section states that the company, its controlling shareholder, and actual controller maintain good integrity, with no unfulfilled court judgments or overdue unpaid debts - The company, its controlling shareholder, and actual controller maintain good integrity, with no unfulfilled court judgments or large overdue unpaid debts[130] XV. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section states that the company had no implementation of equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period[131] XVI. Major Related-Party Transactions This section states that during the reporting period, the company had no related-party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or non-operating related-party receivables/payables - The company had no related-party transactions related to daily operations during the reporting period[132] - The company had no related-party transactions involving asset or equity acquisitions/disposals during the reporting period[133] - The company had no related-party transactions involving joint external investments during the reporting period[134] - The company had no non-operating related-party receivables or payables during the reporting period[135] XVII. Major Contracts and Their Fulfillment This section discloses the company's major contract fulfillment during the reporting period, including leasing matters, significant guarantees, and major ordinary course contracts; the company has office leases and provided multiple guarantees for subsidiaries, with total guarantees accounting for 149.83% of net assets; it also lists several ongoing major ordinary course contracts - To meet office needs, the company leased part of the second floor of Poly International Plaza T2, Wangjing Dongyuan 7th District, Chaoyang District, Beijing[139] External Guarantees by the Company and Its Subsidiaries (Excluding Guarantees to Subsidiaries) | Guaranteed Party Name | Guaranteed Amount (RMB 10,000) | Actual External Guarantee Balance at Period-End (RMB 10,000) | | :--- | :--- | :--- | | Jiaozuo Runhua Chemical Industry Co., Ltd. | 10,000 | 5,000 | | Ulanqab Jinglan Ecological Technology Co., Ltd. | 40,000 | 25,000 | - At the end of the reporting period, the company's total guarantees amounted to 3.34 billion RMB, accounting for 149.83% of the company's net assets[150] - The company provided multiple guarantees for subsidiaries, including Jinglan Muhe, Beifang Yuanlin, Jinglan Ecological, Jinglan Nengke, Jinglan Environmental Technology, Jinglan Environmental Construction, Jinglan Resource Technology, and Zhongke Dingshi, with guarantee methods including joint and several liability guarantees, mortgage guarantees, and pledge guarantees[143][144][145][146][147][148][149][150][151][152][153] - The company signed multiple major ordinary course contracts, including the Gaotang County Rural Revitalization Demonstration Project, Tianjin Beichen District Chemical Hazardous Goods Trade and Storage Company Site Remediation Project, and Shandong Dacheng Agricultural Chemical Co., Ltd. Phase II Soil Remediation Project, with some projects completed and others in construction or design phases[157][158][159] XVIII. Social Responsibility This section describes the company's fulfillment of social responsibilities, including upholding its corporate mission, developing core businesses, strictly adhering to environmental responsibilities, engaging in public welfare activities, and technological innovation; the company actively participates in targeted poverty alleviation through donations, educational support, elderly care, disability assistance, and medical aid, and implements industry-based poverty alleviation aligned with its main business - The company upholds its mission of 'Green Mountains, Clear Waters, Blue Skies, Enduring China Dream,' focusing on the ecological environment sector and striving to become a leading international 'ecological environment planning, investment, construction, and operation service provider'[161] - The company actively responded to targeted poverty alleviation initiatives, with Jinglan Yuanlin donating to 7 assisted villages in Lintan County, Gansu Province, and Jinglan Muhe donating supplies to students in Shaburitai Village, Chifeng City, and participating in poverty alleviation and warmth-giving activities[163] 2020 Targeted Poverty Alleviation Achievements | Indicator | Unit | Quantity/Status | | :--- | :--- | :--- | | Overall situation: Funds | RMB 10,000 | 7.1 | | Overall situation: Material equivalent | RMB 10,000 | 1.01 | | Other projects: Number of projects | projects | 9 | | Other projects: Investment amount | RMB 10,000 | 8.11 | - The company's subsequent targeted poverty alleviation plan will involve job creation, placement of disabled individuals, and industry-based poverty alleviation leveraging its main business[165] - The company and its subsidiaries are not classified as key polluting units by environmental protection authorities[166] XIX. Explanation of Other Significant Matters This section states that the company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[166] XX. Significant Matters of Company Subsidiaries This section states that the company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[167] Part VI Share Changes and Shareholder Information This section details the company's share capital changes, securities issuance, and the status of its shareholders and actual controller, including major shareholding structures and any pledges or freezes I. Share Change Status This section details the changes in the company's total shares, restricted shares, and unrestricted shares during the reporting period, primarily due to the lifting of restrictions on some shareholders' shares Share Change Status (2020) | Share Class | Number Before Change (shares) | Proportion Before Change | Change (Increase/Decrease) (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 290,697,495 | 28.40% | -88,894,705 | 201,802,790 | 19.71% | | II. Unrestricted Shares | 732,970,321 | 71.60% | 88,894,705 | 821,865,026 | 80.29% | | III. Total Shares | 1,023,667,816 | 100.00% | 0 | 1,023,667,816 | 100.00% | - The main reason for share changes was the company processing the lifting of restrictions on 82,281,059 shares for 9 shareholders, including Yin Xiaodong and Banding Asset Management[170] Changes in Restricted Shares (Partial Shareholders) | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Yin Xiaodong | 113,842,569 | 28,460,642 | 85,381,927 | Additional Issuance | | Banding Asset Management | 48,141,732 | 48,141,732 | 0 | Additional Issuance | | Gu'an Yichang | 5,078,092 | 5,078,092 | 0 | Additional Issuance | II. Securities Issuance and Listing This section states that the company had no securities issuance during the reporting period, no explanations for changes in total shares, shareholder structure, or asset and liability structure, and no existing internal employee shares - The company had no securities issuance (excluding preferred shares) during the reporting period[173] - The company had no explanations for changes in total shares and shareholder structure, or changes in the company's asset and liability structure during the reporting period[173] - The company had no existing internal employee shares during the reporting period[173] III. Shareholders and Actual Controller This section discloses the company's shareholder count and shareholding, including the top 10 shareholders' proportions, quantities, and pledge/freeze status; the controlling shareholder is Beijing Yangshu Lantian Investment Center (Limited Partnership), and the actual controller is Guo Shaozeng, with no changes during the reporting period - At the end of the reporting period, the total number of ordinary shareholders was 32,277[174] Top 5 Shareholders' Shareholding (Year-End 2020) | Shareholder Name | Shareholder Nature | Shareholding Proportion | Shares Held at Period-End (shares) | Pledge or Freeze Status (shares) | | :--- | :--- | :--- | :--- | :--- | | Beijing Yangshu Lantian Investment Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 16.68% | 170,763,781 | Pledged: 170,735,328 | | Yin Xiaodong | Domestic Natural Person | 11.12% | 113,842,569 | N/A | | Beijing Yangshu Jiaye Investment Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 9.21% | 94,316,806 | Pledged: 94,316,806 | | Wuliji | Domestic Natural Person | 5.65% | 57,814,766 | Pledged: 57,799,998 | | Jinglan Holdings Co., Ltd. | Domestic Non-State-Owned Legal Person | 5.10% | 52,200,000 | Pledged: 50,026,701 | - The controlling shareholder is Beijing Yangshu Lantian Investment Center (Limited Partnership), and the actual controller is Guo Shaozeng, with no changes during the reporting period[177][178][179] Part VII Preferred Shares Related Information This section confirms that the company had no preferred shares during the reporting period Preferred Shares Related Information This section states that the company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[184] Part VIII Convertible Corporate Bonds Related Information This section confirms that the company had no convertible corporate bonds during the reporting period Convertible Corporate Bonds Related Information This section states that the company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[186] Part IX Directors, Supervisors, Senior Management, and Employees This section provides details on the shareholdings, changes, professional backgrounds, and compensation of the company's directors, supervisors, and senior management, along with an overview of the employee structure and related policies I. Shareholding Changes of Directors, Supervisors, and Senior Management This section lists the shareholdings of the company's directors, supervisors, and senior management, including opening and closing share counts and changes during the period, noting that some executives, such as Liu Xin, Guo Yuanyuan, Li Guirong, Wuliji, and Yin Xiaodong, hold company shares Shareholding Changes of Directors, Supervisors, and Senior Management (Partial) | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | | Liu Xin | Director, Vice President, Board Secretary | 124,799 | 124,799 | | Guo Yuanyuan | Vice President | 497,400 | 497,400 | | Li Guirong | Vice President | 72,780 | 72,780 | | Wuliji | Vice President | 57,814,766 | 57,814,766 | | Yin Xiaodong | Vice President | 113,842,569 | 113,842,569 | II. Changes in Company Directors, Supervisors, and Senior Management This section discloses changes in the company's directors, supervisors, and senior management during the reporting period, including Jiang Lizhe's resignation as Executive President, position adjustments for Yang Rengui and Hao Xin, and the departures of Wu Chunjun and Li Wenming - Jiang Lizhe resigned as Executive President on April 13, 2021, due to personal reasons[190] - Yang Rengui and Hao Xin's positions were adjusted, with Yang Rengui appointed President and Hao Xin appointed Executive President[190] - Wu Chunjun resigned as Vice Chairman and President, and Li Wenming resigned as Vice President[190] III. Employment Status This section details the professional backgrounds, key work experiences, and internal and external appointments of the company's current directors, supervisors, and senior management, including positions in shareholder entities and other organizations, and states no securities regulatory penalties in the past three years - Chairman Yang Rengui holds a Ph.D. in Finance and previously served as Chairman and President of Boya Software Group[191] - President Hao Xin previously served as Director, Party Secretary, and Executive Deputy General Manager of Beijing Urban Construction Environmental Remediation Co., Ltd.[192] - Board Secretary Liu Xin holds a master's degree and a Tsinghua EMBA background[194] - Supervisory Board Chairman Yin Zhoucheng is a Senior Economist and previously served as Vice President and Chairman of Jilin Pan-Asia Trust and Investment Co., Ltd.[196] - Vice President Yin Xiaodong currently serves as Chairman of Zhongke Dingshi[198] - The company's current and departed directors, supervisors, and senior management had no securities regulatory penalties in the past three years[200] IV. Compensation of Directors, Supervisors, and Senior Management This section discloses the decision-making process, determination basis, and actual payment of compensation for the company's directors, supervisors, and senior management; in 2020, the total pre-tax compensation paid to directors, supervisors, and senior management was 5.54 million RMB - Compensation for directors, supervisors, and senior management is determined by the company's board of directors and general meeting of shareholders, based on job responsibilities, performance appraisals, and industry compensation levels[201] 2020 Compensation of Directors, Supervisors, and Senior Management (Partial) | Name | Position | Total Pre-Tax Compensation from Company (RMB 10,000) | Received Compensation from Company's Related Parties | | :--- | :--- | :--- | :--- | | Yang Rengui | Chairman | 60 | No | | Hao Xin | Director, President | 82.98 | No | | Jiang Lizhe | Director, Executive President | 66.8 | No | | Liu Xin | Director, Vice President, Board Secretary | 50.17 | No | | Nie Xingkai | Independent Director | 12 | No | | Zhu Jiang | Independent Director | 12 | No | | Meng Chen | Supervisor | 0 | Yes | | Total | -- | 554 | -- | V. Company Employee Information This section details the company's employee count, professional composition, and education levels, and outlines its compensation policies and training plans; as of the end of the reporting period, the company had a total of 1,078 active employees, with a higher proportion of engineering and technical personnel 2020 Employee Count and Professional Composition | Indicator | Quantity (people) | | :--- | :--- | | Total number of active employees | 1,078 | | Production personnel | 143 | | Sales personnel | 95 | | Technical personnel | 120 | | Financial personnel | 69 | | Administrative personnel | 53 | | Engineering personnel | 345 | | Other | 253 | 2020 Employee Education Level | Education Level Category | Quantity (people) | | :--- | :--- | | Postgraduate (Doctorate and above) | 15 | | Postgraduate (Master's) | 158 | | Undergraduate | 387 | | Junior College | 229 | | High School and below | 289 | - The company's compensation policy is divided into position-based salary and performance-based salary, determined by employee attendance, work completion, and appraisal results[207] - In 2020, new employee training coverage reached 100%, and online vocational skills training was conducted; in 2021, micro-classroom training will continue to enhance employees' comprehensive quality[208] Part X Corporate Governance This section details the company's corporate governance structure, its independence from the controlling shareholder, the functioning of its board committees and supervisory board, and the internal control system I. Basic Status of Corporate Governance This section outlines the basic status of corporate governance, emphasizing the company's strict adherence to rele