ICW(SH:600187)2021-04-22 16:00Financial Performance - The company achieved a net profit of RMB 30.54 million for the consolidated financial statements and RMB 52.96 million for the parent company in 2020[4]. - The parent company reported a distributable profit of RMB -20.97 million at the end of 2020, leading to no profit distribution or capital reserve increase for the year[4]. - The company did not extract the statutory surplus reserve fund during the reporting period[4]. - The company's operating revenue for 2020 was CNY 379,100,938.07, a decrease of 29.51% compared to CNY 537,836,212.60 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 30,544,617.77, an increase of 54.72% from CNY 19,741,340.47 in 2019[21]. - The basic earnings per share for 2020 was CNY 0.0189, reflecting a growth of 54.92% compared to CNY 0.0122 in 2019[23]. - The total assets at the end of 2020 were CNY 4,697,084,384.12, a decrease of 1.81% from CNY 4,783,876,778.22 at the end of 2019[21]. - The cash flow from operating activities for 2020 was negative CNY 217,465,063.21, a decline of 314.86% compared to CNY 101,211,212.95 in 2019[21]. - The company reported a net profit of CNY 16,755,727.25 in Q1 2020, but a loss of CNY 5,665,008.39 in Q4 2020[25]. - Non-recurring gains and losses for 2020 totaled CNY 57,366,766.63, compared to CNY 130,133,271.84 in 2019[27]. - The weighted average return on net assets for 2020 was 0.89%, an increase of 0.31 percentage points from 0.58% in 2019[23]. - The company’s total net assets at the end of 2020 were CNY 3,424,428,542.33, a slight increase of 0.04% from CNY 3,423,085,303.72 at the end of 2019[21]. - Total revenue for the year 2020 was 37,338.67 million, a decrease of 30.83% compared to the previous year[60]. - Total operating costs for the year were 25,107.24 million, down 30.83% from the previous year[64]. - The company reported a significant reduction in financial expenses, down 95.92% to 58.68 million RMB from 1,438.41 million RMB[67]. - The company’s income tax expenses rose by 26.79% to 3,246.54 million RMB, primarily due to the reversal of deferred tax assets[67]. Audit and Compliance - The company received a standard unqualified audit report from Zhongzhun Accounting Firm[7]. - The financial report is guaranteed to be true, accurate, and complete by the board of directors and senior management[7]. - The company has not violated decision-making procedures for external guarantees[5]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[109]. - The company has not reported any significant changes in its internal control audit arrangements[108]. - The company has not disclosed any major litigation or arbitration matters that have not been previously announced[109]. - The company has not made any changes to its accounting policies that would significantly impact its financial condition or operating results[104]. - The company has engaged Zhongzhun Accounting Firm for auditing services with a fee of RMB 800,000 for the year[108]. - The company received a standard unqualified opinion in its internal control audit report, indicating compliance with accounting standards[195]. Business Operations - The company’s main business includes wastewater treatment, water supply, and environmental engineering services, operating under BOT, TOT, and BT models[33]. - The total wastewater treatment capacity across seven project companies is 41.34 million tons/day, with an existing capacity of 40.34 million tons/day[34]. - The water supply business operates through one project company with a contractual capacity of 21 million tons/day and an existing capacity of 11 million tons/day[35]. - The environmental engineering services are provided by subsidiaries specializing in water treatment project design, construction, and consulting[36]. - The industry is supported by national policies emphasizing water pollution prevention and ecological protection, creating a favorable market environment for wastewater treatment[38]. - The water supply industry is experiencing increased demand due to urbanization and rising living standards, leading to higher water quality requirements[38]. - The company has established a strong position in the water services industry, leveraging extensive experience in municipal water projects and environmental management[40]. - The company focuses on innovation and technology development to enhance its capabilities in the environmental sector[42]. - The company is actively pursuing investment and acquisition opportunities in the global environmental technology and health sectors[46]. - The company is actively upgrading its wastewater treatment facilities to meet national standards, with several projects achieving stable operations and price adjustments[50]. - The company is committed to environmental protection and has implemented measures to ensure compliance with national pollution discharge standards across its projects[144]. Market and Strategic Initiatives - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[20]. - The company is actively pursuing investment opportunities in the health and wellness industry, which is supported by government policies and is expected to grow significantly[89]. - The company aims to optimize its business structure and improve operational efficiency to meet the increasing market demand for diversified and systematic services[90]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 500 million RMB allocated for potential deals[171]. - Market expansion plans include entering two new provinces, which are projected to increase market share by 10%[171]. - The company is exploring high-growth emerging markets and sectors through joint ventures and acquisitions, acknowledging the uncertainties involved[97]. Employee and Management - The total number of employees in the company and its main subsidiaries is 716, with 39 in the parent company and 677 in subsidiaries[178]. - The total compensation for all directors, supervisors, and senior management personnel at the end of the reporting period is 502.34 million[177]. - The company has established a performance-oriented compensation policy, linking performance results closely with salary adjustments and bonus distributions[180]. - A comprehensive training plan is in place, targeting new employees, current staff, and management, aimed at enhancing overall employee skills and corporate management levels[181]. - The company has a well-defined governance structure, including a board of directors with 9 members, 3 of whom are independent directors, ensuring effective checks and balances[185]. Legal and Regulatory Matters - The company faced a significant lawsuit involving a claim for RMB 21,702,869.50, which was settled in 2020, resulting in an increase in pre-tax profit by RMB 34,664,888.24[110]. - The company has initiated arbitration proceedings to recover funds due to the respondent's failure to pay[111]. - The company is actively pursuing legal action to protect its rights and recover outstanding payments[111]. - The company has not disclosed any significant penalties or rectifications for its directors, supervisors, or senior management during the reporting period[114]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 115,571, reflecting a slight increase from the previous month[157]. - The largest shareholder, Guozhong (Tianjin) Water Co., Ltd., holds 227,312,500 shares, representing 13.74% of total shares, with 227,000,000 shares pledged[160]. - The second largest shareholder, Lhasa Economic and Technological Development Zone Houkang Industrial Co., Ltd., holds 158,648,700 shares, accounting for 9.59% of total shares, with 90,648,700 shares pledged[160]. - The actual controller, Jiang Zhaobai, is also the chairman of Pengxin Group and has controlling interests in other listed companies[164]. Financial Management and Investments - The company has engaged in various wealth management activities, including a total of CNY 700 million in asset management plans[122]. - The company has invested CNY 320 million in short-term RMB wealth management products[122]. - The company has a total of CNY 200 million in bill wealth management products[122]. - The company raised a total of RMB 951,892,320.00 from a private placement of 198,310,900 shares at RMB 4.80 per share, with a net amount of RMB 922,342,009.10 after deducting issuance costs[131]. - The company redirected RMB 67.36 million of the raised funds, accounting for 64.55% of the original project investment, to the "Nanjing Sewage Treatment Project" to cover funding gaps[131]. Environmental Compliance and Monitoring - The company has implemented a comprehensive environmental monitoring scheme in line with national standards across its operational projects[146][150]. - The company’s wastewater treatment projects are subject to rigorous monitoring and testing protocols to ensure compliance with environmental regulations[147][149][151]. - Automatic monitoring of key pollutants such as COD, total phosphorus, total nitrogen, and ammonia nitrogen is conducted every two hours at the Qinhuangdao and Ma'anshan projects, with real-time data published online[147][149]. - Manual testing for wastewater pollutants is performed monthly, including parameters like pH, BOD, and heavy metals, across various projects[148][149][151].