Financial Performance - The company's main business revenue reached RMB 7.903 billion, an increase of 3.35% compared to 2020[15] - The net profit attributable to shareholders was RMB 511 million, marking an increase of approximately 9.83% compared to 2020[15] - The net profit for the year was RMB 573 million, representing a year-on-year increase of 15.57%[29] - The company's revenue for the year ended December 31, 2021, was RMB 7,902,604 thousand, an increase of 3.34% from RMB 7,646,659 thousand in 2020[198] - Gross profit for the same period was RMB 2,397,337 thousand, up from RMB 1,934,337 thousand, reflecting a growth of 24.0%[198] - The net profit for the year was RMB 573,139 thousand, representing an increase of 15.6% compared to RMB 495,922 thousand in 2020[198] - Basic and diluted earnings per share for the parent company's ordinary shareholders were RMB 3.57, compared to RMB 3.25 in the previous year, indicating a growth of 9.85%[198] - Administrative expenses increased to RMB 804,441 thousand from RMB 679,324 thousand, marking a rise of 18.4%[198] - The company reported a decrease in other income and gains, which fell to RMB 90,325 thousand from RMB 160,393 thousand, a decline of 43.6%[198] - Financing costs for the year were RMB 580,502 thousand, slightly up from RMB 554,713 thousand, indicating an increase of 4.6%[198] - The company's share of profits from joint ventures was RMB 54,553 thousand, an increase from RMB 39,758 thousand, reflecting a growth of 37.2%[198] - The income tax expense for the year was RMB 287,718 thousand, compared to RMB 281,365 thousand in 2020, showing a slight increase of 2.4%[198] Assets and Liabilities - Total assets exceeded RMB 26.173 billion, growing approximately 8.79% year-on-year[15] - Net assets surpassed RMB 7.717 billion, reflecting a growth of about 7.34% from the previous year[15] - The total waste processed amounted to 5.9225 million tons, while hazardous waste processed was 12,000 tons[43] - The group’s total assets as of December 31, 2021, were approximately RMB 26,173,239,000, with a net asset value attributable to owners of approximately RMB 6,210,896,000[52] - The debt-to-asset ratio increased slightly to 70.52% from 70.12% in 2020[52] - Cash and bank balances as of December 31, 2021, were approximately RMB 1,720,491,000, a decrease of about RMB 1,096,753,000 from RMB 2,817,244,000 at the end of 2020[53] - The group’s outstanding borrowings as of December 31, 2021, were approximately RMB 11,730,624,000, an increase of about RMB 3,013,478,000 from RMB 8,717,146,000 at the end of 2020[54] Environmental Initiatives - The company has implemented 69 environmental projects across over 20 provinces and cities in China, serving a population of over 60 million[15] - Total investment in these projects exceeded RMB 18.790 billion[15] - The company is committed to sustainable development and has been recognized as one of the top ten influential companies in China's solid waste industry[19] - The company is aligning with national strategies to promote green development and has set goals for carbon peak and carbon neutrality by 2030 and 2060, respectively[27] - The group emphasizes environmental management and has established policies to minimize adverse environmental impacts during operations[40] - The group has established a technology innovation management system and is advancing key research projects, including the development of low-emission technologies and waste treatment solutions[36] Strategic Focus - The company is focusing on a new strategic plan called "Ecology + 2025," integrating various business sectors for enhanced synergy[15] - The company aims to enhance its core competitiveness through technology-driven innovation[15] - The company is committed to expanding its market presence and optimizing its business structure[15] - The company is actively pursuing a "four precision" strategy to improve management in cost, capital, and safety[15] - The company aims to enhance operational efficiency and project conversion rates by expanding its project information database[29] - The group plans to focus on high-quality projects and systematic development in the regions where it operates[49] Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the year ending December 31, 2021[75] - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[78] - The company emphasizes diversity in its board composition, considering factors such as gender, age, and professional experience to support strategic goals[77] - The company is committed to high standards of corporate governance, which it views as critical to its success[75] - The board is responsible for setting strategic direction and overseeing management performance, ensuring alignment with business objectives[77] - The company has a structured approach to internal controls and risk management, which is essential for sustainable development[77] - The management team has been involved in various environmental projects, indicating a focus on sustainability and market expansion[71] Risk Management - The company emphasizes the importance of risk management and internal control systems to identify and manage significant risks[106] - The board is responsible for establishing and maintaining effective risk management and internal control systems[106] - The company aims to ensure compliance with relevant laws and regulations through its internal control systems[105][106] - The company has a structured risk governance framework to enhance internal control effectiveness[106] - The company has established a comprehensive internal control system to enhance governance standards, aligning with regulatory requirements[112] Audit and Compliance - The consolidated financial statements for the year ended December 31, 2021, have been audited by Ernst & Young, confirming compliance with Hong Kong Financial Reporting Standards[176] - The audit opinion states that the financial statements present a true and fair view of the group's financial position as of December 31, 2021, and its financial performance for the year then ended[177] - Key audit matters include the accounting treatment of service concession arrangements related to waste management and energy business, which involve significant management judgments and estimates[181] - The auditor's procedures included reviewing contract terms of service concession arrangements and assessing the accounting model adopted by the group[181] - The auditor evaluated the future guaranteed receipts and current market rates for engineering gross profit margins, comparing them with observable market data and industry peers[181] Shareholder Relations - The company is committed to improving investor relations through regular communication with institutional investors, analysts, and shareholders[125] - The board confirmed that financial statements for the year ended December 31, 2021, were prepared in accordance with applicable laws and listing rules, ensuring accurate reflection of the group's financial position[127] - The company did not recommend the declaration of a final dividend for the year ended December 31, 2021, consistent with the previous year[134] - The company has no distributable reserves as of December 31, 2021[137] - The board aims to provide continuous returns to shareholders while retaining sufficient reserves for future development[135]
首创环境(03989) - 2021 - 年度财报