WHKG(SH:600168)2022-03-18 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,011,899,168.53, representing a 22.41% increase compared to CNY 1,643,603,463.84 in 2020[21]. - The net profit attributable to shareholders of the listed company reached CNY 398,936,276.95, a 56.19% increase from CNY 255,424,226.19 in the previous year[21]. - The net cash flow generated from operating activities was CNY 198,693,965.39, a significant decrease of 82.32% compared to CNY 1,124,117,634.73 in 2020[22]. - The total assets of the company at the end of 2021 were CNY 18,025,521,487.00, showing a growth of 10.39% from CNY 16,329,035,788.80 in 2020[22]. - The net assets attributable to shareholders of the listed company increased to CNY 5,706,440,388.50, reflecting a 6.17% growth from CNY 5,374,784,955.40 in the previous year[22]. - The company's net profit attributable to shareholders for 2021 was CNY 399 million, an increase of 56.19% year-on-year, primarily due to asset disposal gains from the subsidiary's land recovery[23]. - The basic and diluted earnings per share for 2021 were CNY 0.56, both reflecting a 55.56% increase compared to the previous year[24]. - The company's operating revenue reached 2,011,899,168.53 RMB, a year-on-year increase of 22.41%, while operating costs rose by 26.50% to 1,483,744,956.82 RMB[46]. Cash Flow and Investments - The net cash flow from operating activities for 2021 was CNY 199 million, a decrease of 82.32% year-on-year, attributed to longer receivable collection periods and increased operational costs[24]. - Cash flow from investment activities was negative at -¥2,177,392,778.40, a 6.57% increase in outflows compared to the previous year[69]. - Cash paid for purchasing goods and services increased by 55.78% to ¥794,380,299.32, attributed to higher sewage treatment costs[68]. - Cash flow from financing activities increased by 34.56% to ¥1,352,008,510.05, primarily due to reduced loan repayments[69]. - The company's long-term investments amounted to approximately 314.95 million, showing a 37.09% increase compared to the previous year[72]. Operational Performance - The company processed 929.82 million tons of wastewater in 2021, an increase of 18.76% year-on-year, while the water supply volume rose by 2.87% to 303.84 million tons[32]. - The company achieved total operating revenue of CNY 2.01 billion in 2021, with operating profit of CNY 425.9 million[32]. - The company’s wastewater treatment design capacity is 3.1843 million tons per day, with a production capacity of 3.11 million tons per day in Wuhan[32]. - The company processed 929,818,100 tons of wastewater during the reporting period, representing an 18.76% year-on-year increase[40]. - The company achieved a total sewage treatment settlement volume of 93,024.42 million tons, with an average settlement price of 1.99 RMB/ton, contributing to a revenue of 176,440.69 million RMB, accounting for 87.70% of total revenue[44]. Market Position and Expansion - The company holds a 90% market share in the water supply business in the Hankou area of Wuhan, establishing a dominant position[36]. - The company is actively expanding its water service market nationwide, with several projects under the BOT and PPP models, enhancing its operational footprint[39]. - The company is focusing on improving water ecological environments, with core businesses including urban sewage treatment, water supply, and tunnel operations[37]. - The company is advancing the expansion projects for the Nan Taizi Lake and Longwangzui wastewater treatment plants, which will further enhance its treatment capacity[40]. - The company is positioned to benefit from ongoing government initiatives aimed at enhancing water quality and environmental protection[76]. Research and Development - The company’s research and development expenses increased by 100% year-on-year, reflecting a commitment to enhancing wastewater treatment quality and compliance with environmental regulations[46]. - The total research and development expenditure amounted to ¥58.69 million, accounting for 2.92% of total operating revenue, with no capitalized R&D costs reported[62]. - The company has ongoing R&D projects aimed at optimizing wastewater treatment processes and energy efficiency, including the development of a portable remote-controlled sludge collection device[64][66]. Governance and Compliance - The company has received a standard unqualified audit report from Zhongshun Zhonghuan Accounting Firm[4]. - The company has established a comprehensive human resources management system to support sustainable development and enhance operational capabilities[43]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures in providing guarantees[7]. - The company has established a subsidiary management system to enhance control and ensure compliance, approved by the board in August 2021[139]. Environmental Responsibility - The company has committed to environmental responsibility by ensuring all wastewater treatment plants operate within the established pollution discharge standards[141]. - The company has established connections with local environmental monitoring systems to ensure real-time compliance tracking[159]. - The company has completed environmental impact assessments for multiple wastewater treatment plants, ensuring compliance with local regulations[160]. - The company has organized the preparation of emergency response plans for environmental incidents across its sewage treatment plants, ensuring compliance with environmental risk monitoring regulations[164]. - The company has not faced any administrative penalties for environmental issues during the reporting period, indicating strong compliance with environmental laws[174]. Future Outlook - The company anticipates growth opportunities in wastewater treatment and resource utilization due to favorable government policies and increasing market demand[87]. - The expected total operating revenue for 2022 is 301.686 million yuan, with operating costs projected at 244.739 million yuan[91]. - The company plans to explore the integration of light and heavy asset models to expand into photovoltaic power generation and sludge treatment[89]. - Future guidance indicates a projected revenue increase of 15% for the upcoming fiscal year, driven by strategic initiatives and market expansion efforts[106]. - The company plans to implement a management equity incentive plan by June 30, 2024, to align interests with shareholders[192].