Financial Performance - Total revenue for the year decreased by approximately 12% to RMB 2,919.0 million due to a decline in revenue from construction services[14] - Gross profit for the year increased slightly by approximately 1% to RMB 1,335.3 million, with an overall gross profit margin improving to 46% from 40% last year[14] - Profit attributable to equity shareholders decreased to RMB 412.8 million, a decrease of approximately 12% compared to 2020[18] - Basic earnings per share for the year was RMB 19.29 cents[18] - The Group's cost of sales for the year was RMB 1,583.7 million, representing a decrease of approximately 21% from RMB 2,006.8 million in the previous period[59] - Other income and gains amounted to RMB 106.6 million, slightly down from RMB 107.2 million in the previous period, primarily including government grants of RMB 60.5 million[63] - Selling and distribution expenses decreased significantly by approximately 56% to RMB 1.1 million from RMB 2.5 million in the previous period[64] - Administrative expenses increased by approximately 13% to RMB 246.0 million from RMB 217.6 million in the previous period, mainly due to increased staff costs[65] - The Group's financing costs slightly increased to RMB 565.7 million, compared to RMB 561.8 million in the previous year, mainly due to an increase in average interest-bearing bank borrowings[74] Operational Efficiency - The actual wastewater treatment volume increased to 1,262.4 million tonnes, representing an increase of approximately 11% compared to 2020[14] - The Group continues to enhance its operational efficiency despite challenges posed by the pandemic[14] - The annualized utilization rate for wastewater and reclaimed water treatment plants in operation was approximately 86% for the year ended December 31, 2021, compared to 83% in 2020[46] - The Group's wastewater treatment facility projects have been completed and commenced commercial operation, significantly enhancing wastewater treatment capacity[14] - The Group had 101 service concession arrangement projects under operation with an operational treatment capacity exceeding 4 million tons per day as of December 31, 2021[26] - The Group operated 96 wastewater treatment projects, 2 reclaimed water treatment projects, and 3 sludge treatment projects, with a total daily treatment capacity of 3,961,500 tonnes, representing an increase from 3,766,500 tonnes in 2020[46] Strategic Focus - The Group aims to contribute to the long-term development of the wastewater treatment industry as part of building a beautiful China[13] - The Group plans to focus on municipal wastewater treatment and enhance energy-saving measures to increase revenue and profit[19] - The Group aims to explore wastewater resource recycling and reclaimed water utilization to support national goals while creating greater value for shareholders[19] - The Group's strategic direction aligns with national initiatives for energy conservation and emission reduction[13] Financial Position - As of December 31, 2021, the Group's net asset value per share was RMB 2.53, an increase of approximately 4% compared to the same period last year[18] - Total interest-bearing debts increased to RMB 9,469.7 million as of December 31, 2021, compared to RMB 9,272.8 million in 2020, with 66.2% classified as long-term[99] - The Group's trade and bills receivables rose to RMB 1,776.6 million, an increase of RMB 249.6 million, primarily due to an increase in Urban Water Treatment projects receivables of approximately RMB 401.1 million[84] - Cash and cash equivalents decreased to RMB 289.9 million, down RMB 140.4 million from RMB 430.3 million at the end of the previous year, attributed to increased cash outflows in investing activities[89] Governance and Management - The Company is committed to maintaining high standards of corporate governance, as evidenced by the composition of its audit and nomination committees[130] - The Board of Directors is responsible for leadership and control of the Company, overseeing business, strategic decisions, and performance[149] - The Company has established a code of conduct and compliance manual applicable to employees and directors[164] - The Board has formalized corporate governance duties, including the development and review of governance policies and practices[163] - The Company has complied with all applicable provisions of the Corporate Governance Code during the year ended 31 December 2021[144] Human Resources - The group employed 2,426 staff members as of December 31, 2021, with compensation packages reviewed annually based on performance[110] - The Remuneration Committee reviewed Directors' fees considering increasing duties and market conditions[200] - The review of management's remuneration proposals was aligned with the Board's corporate goals and objectives[200] Future Outlook - The Group is confident about its future profitability and will enhance the profitability and effectiveness of its operations[29] - The Group plans to optimize loan structure and expand financing channels to lower the average interest rate in the coming year[71] - The Group will continue to optimize its debt structure and develop financing channels to reduce financing costs[20]
康达环保(06136) - 2021 - 年度财报