Financial Performance - Total revenue for 2022 was RMB 3,878.47 million, a decrease of 3.41% compared to RMB 4,015.23 million in 2021[8]. - Gross profit for 2022 was RMB 610.38 million, with a gross margin of 15.74%, down from 27.48% in 2021, representing a decline of 11.85 percentage points[8][17]. - The company recorded a net loss attributable to equity holders of RMB 501.79 million for 2022, compared to a profit of RMB 160.75 million in 2021[8][17]. - The revenue from industrial waste resource recovery and treatment was approximately RMB 1.308 billion and RMB 1.217 billion, down 16.41% and 28.92% year-on-year, respectively[17]. - The group's consolidated gross profit margin for the year ended December 31, 2022, was 15.74%, a decrease of approximately 11.74 percentage points compared to 27.48% in 2021, primarily due to increased industry competition and rising costs in resource recovery operations[21]. - The net loss attributable to equity holders of the parent company for the year ended December 31, 2022, was approximately RMB 501.79 million, compared to a profit of RMB 160.75 million in 2021, largely due to a decrease in business from major customers and a decline in overall market waste volume[22]. - The financial cost for the year was approximately RMB 176.74 million, accounting for 4.56% of total revenue, an increase from 3.36% in 2021, primarily due to an increase in interest-bearing debt[45]. - The income tax expense for the year was approximately RMB 28.42 million, a decrease from RMB 35.67 million in 2021, mainly due to a decline in pre-tax profit[23]. - Administrative expenses for the year were approximately RMB 439,603,000, accounting for 11.33% of total revenue, up from 10.15% in 2021[71]. - The company recorded a loss for the year ended December 31, 2022, and the board does not recommend paying any final dividend for the year[123]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 11,705.96 million, while total liabilities were RMB 6,929.49 million[8]. - As of December 31, 2022, the total liabilities of the group were approximately RMB 6,929,486,000, an increase from RMB 6,365,415,000 in 2021, resulting in a debt-to-asset ratio of 59.2% compared to 53.88% in 2021[47]. - The group had current liabilities of approximately RMB 3,458,429,000 as of December 31, 2022, down from RMB 3,805,521,000 in 2021[47]. - As of December 31, 2022, the company's current liabilities exceeded current assets by approximately RMB 431,506,000[167]. - The company had available unused bank financing of approximately RMB 6,465,844,000 as of December 31, 2022[169]. Market and Operational Strategy - The company plans to focus on market expansion and key project development in 2023 to enhance operational performance[14]. - The company aims to enhance its core competitiveness in hazardous waste management and expand its market share through flexible pricing strategies[18]. - The overall hazardous waste market environment remains challenging, with significant reductions in hazardous waste output from customers and excess disposal capacity in some regions[39]. - The company aims to enhance market share and capacity utilization by focusing on hazardous waste management and expanding into high-difficulty waste segments[55]. - The company plans to accelerate the issuance of non-public A-shares to raise sufficient funds for development and expedite key project construction[55]. - The company is focusing on core hazardous waste operations and implementing a diversified market strategy to address intense competition[65]. - The company aims to focus on "dual carbon" growth points while solidifying its core business, anticipating a recovery in industrial production and an increase in hazardous waste volume in 2023[81]. - The company will implement "three precision management" strategies to maintain its leading position in a highly competitive market and improve operational performance[81]. - The environmental protection industry has seen increased competition due to significant capacity expansion and low processing prices, impacting the company's revenue and profit[84]. - The company will focus on internal management reforms and digital transformation to enhance efficiency and product value, thereby expanding its industry influence[84]. Research and Development - The company added 121 new patents in 2022, bringing the total to 602, with one technology recognized as internationally leading[10]. - R&D investment for the year was approximately RMB 169 million, remaining stable compared to the previous year[68]. Financial Management and Policies - The company has recognized credit impairment losses and asset impairment losses, which significantly impacted annual profits[34]. - The company has assessed its assets for impairment, ensuring that any asset's carrying amount is reduced to its recoverable amount if necessary[130]. - The company has not made any adjustments or changes to its profit distribution policy during the reporting period, which stipulates a cumulative cash distribution of no less than 30% of the average distributable profit over the last three years[99]. - The company has cumulatively distributed profits in cash from 2020 to 2022, meeting the requirement of distributing no less than 20% of the distributable profits for the year[121]. - The company confirmed that financial assets are initially recognized at fair value plus transaction costs, with trade receivables measured at their transaction price[184]. - The company applies a simplified approach to calculate expected credit losses for trade receivables and contract assets, establishing a provision matrix based on historical credit loss experience[195]. - The company recognizes any gains or losses from the termination of assets based on the difference between the net proceeds from the sale and the carrying amount of the asset[154]. Joint Ventures and Investments - The group established a joint venture, Jiyang City Guangye Energy Environmental Protection Co., Ltd., in November 2022, holding a 13% stake with an investment of approximately RMB 12,884,000[48]. - The company completed the sale of its 31% stake in Jiangsu Suquan Solid Waste Disposal Co., Ltd. for approximately RMB 40,600,000 in October 2022[75]. - The company entered into a framework agreement with Guangdong Anjiatai Environmental Technology Co., Ltd. on April 7, 2022, for hazardous waste disposal services[127]. Compliance and Risk Management - The company continues to strengthen pollution control facility management and enhance employee compliance awareness to minimize safety and environmental production risks[106]. - The company is closely monitoring interest rate risks and will consider a suitable mix of fixed and floating rate debt to manage these risks[50].
东江环保(00895) - 2022 - 年度财报