绿能慧充(600212) - 2020 Q4 - 年度财报

Company Profile and Key Financial Indicators Company Basic Information This section provides basic corporate information, contact details, stock profile, and disclosure channels for Shandong Jiangquan Industrial Co, Ltd (*ST Jiangquan) | Item | Information | | :--- | :--- | | Company Name (Chinese) | 山东江泉实业股份有限公司 | | Company Ticker | *ST Jiangquan | | Stock Exchange | Shanghai Stock Exchange | | Stock Code | 600212 | | Legal Representative | Zhao Tongyu | Key Accounting Data and Financial Indicators for the Last Three Years The company achieved a turnaround to profitability in 2020 with a net profit of RMB 19.54 million, a significant improvement from the substantial loss in 2019 | Key Accounting Data (RMB) | 2020 | 2019 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 276,801,552.07 | 261,171,078.43 | 5.98% | | Net Profit Attributable to Shareholders | 19,540,812.88 | -351,609,433.29 | N/A | | Net Profit Attributable to Shareholders (Non-recurring items deducted) | 18,203,606.75 | -355,193,048.40 | N/A | | Net Cash Flow from Operating Activities | 20,396,201.34 | -1,815,122.68 | N/A | | Total Assets (Year-end) | 298,314,557.02 | 269,878,547.40 | 10.54% | | Net Assets Attributable to Shareholders (Year-end) | 252,445,388.74 | 232,360,667.10 | 8.64% | | Key Financial Indicators | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | 0.0382 | -0.6871 | N/A | | Weighted Average Return on Equity (%) | 8.07% | -86.24% | Increased by 94.31 percentage points | - The company's turnaround was driven by two main factors: the elimination of significant investment losses from an affiliate's production halt in the prior year, and improved performance in both the thermal power and railway transport businesses[22] - In 2020, the company's total non-recurring gains and losses amounted to RMB 1.34 million, primarily from the disposal of non-current assets (RMB 1.05 million) and income from wealth management products (RMB 0.51 million)[26][27] Business Overview Main Business, Operating Model, and Industry Situation The company's main operations are divided into power generation and dedicated railway line transportation, with both segments showing improved profitability during the reporting period - The company's main business comprises two segments[29]: - Power Generation: Utilizes industrial off-gas from upstream steel and coking enterprises for comprehensive power generation, with improved profits due to cost reductions - Dedicated Railway Line Transportation: Operates a 13-kilometer railway line and freight yard, with both revenue and profit increasing significantly due to higher freight rates and volumes Management Discussion and Analysis Review of Operations and Key Initiatives In 2020, the company achieved revenue of RMB 277 million and net profit of RMB 19.54 million while focusing on asset optimization, boosting market confidence, and exploring business transformation - During the reporting period, the company actively disposed of loss-making assets by shutting down operations of two subsidiaries and transferring all equity in its Shenzhen subsidiary to optimize its business structure[32] - The company's directors, senior management, and controlling shareholder implemented a share purchase plan, demonstrating confidence in the company's future development[33][34] - To cultivate new profit growth, the company initiated a non-public offering plan to raise funds for the acquisition of 100% equity in Beijing Core Fire Technology Co, Ltd, exploring a business transformation[34] Analysis of Key Operations In 2020, revenue grew by 5.98% to RMB 277 million, while operating costs decreased by 8.16%, resulting in a net profit of RMB 19.54 million and an optimized balance sheet Analysis of Income Statement and Cash Flow Statement Items The company's financial performance improved significantly, driven by a substantial increase in investment income and a sharp reduction in impairment losses, leading to positive operating cash flow | Account | Current Period (RMB) | Prior Period (RMB) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 276,801,552.07 | 261,171,078.43 | 5.98 | Increase in railway operation revenue | | Operating Cost | 226,008,556.85 | 246,081,949.97 | -8.16 | Decrease in operating cost of thermal power | | Investment Income | 1,316,552.90 | -153,966,277.12 | N/A | No investment loss from associates in the current period | | Credit Impairment Loss | -1,741,674.57 | -22,482,419.88 | N/A | Decrease in bad debt provisions | | Asset Impairment Loss | 0 | -167,091,158.42 | N/A | No impairment provision for associates in the current period | | Net Cash Flow from Operating Activities | 20,396,201.34 | -1,815,122.68 | N/A | Increase in cash received from sales of goods and services | Revenue and Cost Analysis The railway transport business showed strong growth in both revenue and gross margin, while the power segment's profitability improved due to significant cost reductions | By Industry | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Revenue Y-o-Y | Cost Y-o-Y | Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Power Industry | 204,187,149.27 | 172,607,401.99 | 15.47 | -1.03% | -14.00% | Increase 12.75 p.p. | | Railway Transport | 72,180,742.57 | 52,954,142.10 | 26.64 | 35.00% | 17.81% | Increase 10.71 p.p. | | Agricultural Products Trade | 433,660.23 | 447,012.76 | -3.08 | -7.08% | 36.88% | Decrease 33.10 p.p. | - The cost reduction in the power industry was mainly due to lower raw material prices, while the revenue growth in railway transport was driven by increased freight prices and volume[43] - The company has a high customer concentration, with sales to the top five customers accounting for 94.84% of total annual sales[49] Analysis of Assets and Liabilities As of year-end 2020, total assets grew by 10.54% to RMB 298 million, with notable changes in financial assets, accounts receivable, and intangible assets | Item | Year-End Balance (RMB) | Beginning Balance (RMB) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 33,035,075.00 | 15,093,575.34 | 118.87 | Increase in bank wealth management products purchased by a subsidiary | | Accounts Receivable | 25,645,073.77 | 4,880,184.81 | 425.49 | Increase in receivables from sales | | Construction in Progress | 4,095,412.83 | 27,338,067.76 | -85.02 | Completed projects transferred to fixed assets | | Intangible Assets | 24,892,057.76 | 43,760,325.20 | -43.12 | Disposal of land use rights | Analysis of Power Industry Operational Information The power generation business, with an installed capacity of 50 MW, saw increased electricity sales and a significant 14.03% reduction in sales cost in 2020 | Indicator | Unit | 2020 | 2019 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | | Power Generation | 10k kWh | 33,900.20 | 33,287.00 | 1.84 | | Electricity Sales | 10k kWh | 31,420.87 | 30,681.24 | 2.41 | | Electricity Sales Revenue | RMB | 159,096,776.59 | 154,534,477.27 | 2.95 | | Electricity Sales Cost | RMB | 129,224,100.68 | 150,317,489.38 | -14.03 | - The company's total installed capacity is 50 MW[59] Disposal of Major Assets and Equity In December 2020, the company sold its wholly-owned Shenzhen subsidiary for RMB 33.5 million to optimize its asset structure - In December 2020, the company transferred 100% equity of its non-operational Shenzhen subsidiary to Linyi Rongxin Holdings Co, Ltd for RMB 33.5 million, and this subsidiary is no longer consolidated[62][64] Discussion and Analysis of Future Development The company's future strategy focuses on business diversification and improving quality, while managing risks related to raw material supply and environmental regulations - Development Strategy: Actively promote business diversification and enhance the quality of the listed company by introducing high-quality assets to create new profit growth points while stabilizing existing operations[66][67] - 2021 Business Plan[68]: - Stabilize and enhance the profitability of the thermal power and railway businesses - Continue the non-public offering to acquire Core Fire Technology to achieve business diversification - Strengthen risk management and improve the management system - Potential Risks[69]: - Raw Material Supply Risk: Power production relies entirely on gas fuel from upstream steel and coking enterprises, whose production pace could affect supply - Environmental Risk: Increasingly strict national environmental policies may lead to higher environmental protection investments, pressuring operating costs Significant Matters Profit Distribution and Dividend Policy Due to a negative distributable profit of -RMB 829 million in 2020, the company proposed no profit distribution or capitalization of capital reserves - The company decided against profit distribution and capitalization of capital reserves as the distributable profit to shareholders for 2020 was -RMB 828.95 million[5][73] - The company has not distributed cash dividends or converted capital reserves for three consecutive years (2018-2020)[74] Fulfillment of Commitments The controlling shareholder, Jinghong Yicheng, has been duly fulfilling all commitments made regarding non-competition, related-party transactions, and maintaining company independence - Commitments made by the controlling shareholder, Jinghong Yicheng, regarding avoiding competition, regulating related-party transactions, and maintaining the company's independence have been strictly observed[76][78] Changes in Accounting Policies and Estimates The company adopted the new revenue recognition standard starting January 1, 2020, which resulted in the reclassification of advance payments without impacting prior-year results - The company implemented the new revenue standard on January 1, 2020, and changed its accounting policies accordingly, with no retrospective adjustment to prior-year data[80] | Item | Dec 31, 2019 (RMB) | Jan 1, 2020 (RMB) | Adjustment (RMB) | | :--- | :--- | :--- | :--- | | Advances from Customers | 367,877.20 | 0 | -367,877.20 | | Contract Liabilities | 0 | 331,778.85 | 331,778.85 | | Other Current Liabilities | 0 | 36,098.35 | 36,098.35 | Significant Contracts and Their Performance During the period, the company engaged in structured deposit investments totaling RMB 119 million and executed a significant equity transfer agreement for RMB 33.5 million - The company invested a total of RMB 119 million of its own funds in structured deposits, with an outstanding balance of RMB 33 million at year-end and no overdue amounts[100] - The company signed and executed a major contract to transfer 100% equity of its Shenzhen subsidiary to Linyi Rongxin Holdings Co, Ltd for RMB 33.5 million[103] Social Responsibility and Environmental Information As a key polluting entity, the company ensures compliance with emission standards and has invested RMB 50.7 million in a new project to significantly reduce dust pollution - The company's thermal power plant is a key polluting unit in Linyi City, with major pollutants being sulfur dioxide, nitrogen oxides, and particulate matter, all of which met emission standards during the period[106] - To enhance environmental protection, the company invested RMB 50.7 million to construct two large-span enclosed sheds to control dust pollution at its railway freight yard, which is expected to reduce annual dust emissions by 2,100 tons upon completion[112][113] Share Capital Changes and Shareholders Shareholders and Actual Controller As of year-end 2020, the company's controlling shareholder was Shenzhen Jinghong Yicheng Industrial Development Co, Ltd, with the total share capital remaining unchanged - During the reporting period, the company's total number of common shares and share capital structure remained unchanged[117] | Shareholder Name | Year-End Shareholding (Shares) | Percentage (%) | | :--- | :--- | :--- | | Shenzhen Jinghong Yicheng Industrial Development Co, Ltd | 70,280,485 | 13.73 | - The company's controlling shareholder is Shenzhen Jinghong Yicheng Industrial Development Co, Ltd, and the actual controller is Mr. Xu Yiming[119][122] Directors, Supervisors, Senior Management, and Employees Changes in Shareholdings and Remuneration of Directors, Supervisors, and Senior Management Key management personnel increased their shareholdings during the year, with the Chairman receiving a total pre-tax remuneration of RMB 0.655 million - During the reporting period, key management including Chairman Zhao Tongyu and CEO Zhai Baoxing increased their holdings by a total of 601,800 shares, representing 0.1176% of the total share capital[128][130] | Name | Position | Total Pre-tax Remuneration from the Company (RMB 10,000) | | :--- | :--- | :--- | | Zhao Tongyu | Chairman | 65.50 | | Zhai Baoxing | General Manager, Director | 61.19 | | Zhang Qian | Director, Board Secretary | 57.46 | | Mao Liyan | CFO | 51.65 | Employee Information As of the end of the reporting period, the company had 489 employees, with production personnel constituting the largest group | Professional Composition | Number of People | | :--- | :--- | | Production Personnel | 362 | | Technical Personnel | 57 | | Administrative Personnel | 42 | | Financial Personnel | 26 | | Sales Personnel | 2 | | Total | 489 | Corporate Governance Corporate Governance Overview The company maintains a sound corporate governance structure in compliance with regulations, ensuring operational independence and receiving an unqualified internal control audit report - The company has a well-established governance structure and maintains independence from its controlling shareholder in personnel, assets, finance, organization, and business[140] - The company disclosed its Internal Control Self-Assessment Report and received a standard unqualified opinion on its internal control audit report from Hexin Certified Public Accountants, confirming effective internal control over financial reporting in all material respects[146][150][157] Financial Report Audit Report Hexin Certified Public Accountants issued a standard unqualified audit opinion on the 2020 financial statements, identifying "bad debt provision" as a key audit matter - The audit firm, Hexin Certified Public Accountants (Special General Partnership), issued a standard unqualified audit opinion[4][161][162] - The key audit matter was "bad debt provision", with the auditor focusing on the recoverability and impairment of receivables due to their significance and the management judgment involved[164][166] Notes to Consolidated Financial Statements The notes detail key financial items, including a significant provision for bad debts on related-party receivables and a year-end unappropriated loss of -RMB 829 million - At year-end, the gross amount of accounts receivable was RMB 271 million, with a 100% bad debt provision made for receivables totaling RMB 244 million from four related parties due to their deteriorating financial condition[379][381] - The company transferred its equity in Shandong Huayu Alloy Materials Co, Ltd to its Shenzhen subsidiary in August 2020 and subsequently sold the subsidiary in December, thus no longer holding this long-term equity investment at year-end[414] - The company received a government grant of RMB 2.93 million related to environmental treatment for dust suppression at its railway freight yard, which was recorded as deferred income[461]