QJSL(SH:600283)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,538,519,305.75, representing a year-on-year increase of 16.99% compared to CNY 1,315,071,908.75 in 2020[22]. - The net profit attributable to shareholders of the listed company was CNY 150,757,637.46, an increase of 8.76% from CNY 138,611,912.16 in the previous year[22]. - The net cash flow from operating activities reached CNY 558,953,902.43, marking an 18.97% increase from CNY 469,842,808.88 in 2020[22]. - The total assets of the company at the end of 2021 were CNY 6,382,847,330.31, a 10.89% increase from CNY 5,755,848,121.57 at the end of 2020[23]. - The net assets attributable to shareholders of the listed company were CNY 2,081,248,602.55, reflecting a 4.89% increase from CNY 1,984,199,581.19 in the previous year[23]. - Basic earnings per share for 2021 were CNY 0.43, up 10.26% from CNY 0.39 in 2020[24]. - The weighted average return on equity increased to 7.42% in 2021, compared to 7.20% in 2020, an increase of 0.22 percentage points[24]. - Operating costs increased to approximately CNY 923.33 million, up 15.18% from CNY 801.65 million in the previous year[54]. - The gross profit margin for the water supply and treatment sector was 39.88%, an increase of 1.15 percentage points from the previous year[57]. Water Supply and Treatment Operations - Water supply volume reached 45.13 million tons, up 8.22% year-on-year, while sales volume increased by 7.35% to 41.54 million tons[32]. - The company processed 11.99 million tons of wastewater, a year-on-year increase of 10.24%[33]. - The company achieved a total water supply of 45,132 million tons in 2021, an increase of 8.22% year-on-year[51]. - The company reported a wastewater treatment volume of 11,991 million tons in 2021, representing a year-on-year growth of 10.24%[51]. - The company has a total design capacity for water supply of 1.8 million tons per day, with a market share of approximately 10% in Zhejiang province[48]. - The company’s wastewater treatment design capacity is 510,000 tons per day, with projects operated in multiple cities[47]. - The company’s water supply business covers the entire industry chain, with a total design capacity of 231,000 tons/day[77]. - The company plans to increase its water supply capacity by 24,000 tons/day in Zhejiang Province, expected to be operational between 2023 and 2024[79]. Strategic Initiatives and Future Plans - The company plans to focus on smart water management and infrastructure upgrades as future growth areas[34]. - The company aims to enhance its core capabilities in water supply and wastewater treatment to ensure high-quality development[31]. - The company plans to invest a total of CNY 352,314,852 in capital expenditures, funded through self-owned funds and bank loans[96]. - The company is focusing on expanding its water supply business and enhancing its core capabilities in planning, construction, and technology consulting to improve its competitive edge in the market[105]. - The company plans to enhance its water quality monitoring and implement necessary facility upgrades to ensure safe and high-quality water supply, addressing risks related to water quality and cost control[109]. Environmental and Regulatory Compliance - The company’s wastewater treatment facilities have met the discharge standards, with no instances of exceeding pollutant limits reported[149][152]. - The average concentration of COD in the wastewater treatment process was 30.77 mg/l, well below the discharge limit of 50 mg/l[149]. - The company has successfully completed the environmental impact assessments and obtained the necessary environmental permits for multiple wastewater treatment projects, including the Lishui Water Supply and Drainage Company and Yongkang Qianjiang Water Company[165][168][169]. - The company has implemented emergency response plans for environmental incidents, with the latest plans being filed with the relevant environmental authorities in 2021[168][169][170]. - The company has made significant strides in reducing carbon emissions, with the Ninghai County North Wastewater Treatment Plant being recognized as a low-carbon demonstration project in 2021[178]. Governance and Management - The company held 1 shareholders' meeting and 4 board meetings during the reporting period, ensuring compliance with governance regulations and maintaining transparency[113]. - The company emphasizes investor relations by organizing online performance briefings to enhance communication and build investor confidence[115]. - The company has established a comprehensive internal control management system, ensuring compliance and effective execution of internal controls[144]. - The board of directors includes members with extensive experience in water resource management and investment[119]. - The company has retained its accounting firm for the 2021 financial audit, ensuring continuity in financial oversight[116]. Market and Competitive Landscape - The company is facing risks related to market competition and resource availability, which may impact the speed of business expansion[107]. - The company has a significant market presence in Zhejiang Province, supplying about 10% of the total water in the region, which provides a competitive advantage[103]. - The company anticipates a positive outlook for the future of the environmental protection and water treatment industry in China[45]. - The market space for water environment governance and sewage quality improvement is estimated to reach several hundred billion yuan in the coming years[43]. Research and Development - The company completed 15 patent applications in 2021, with 10 patents granted, including 9 utility model patents and 1 software copyright[50]. - Research and development expenses decreased by 20.82% to approximately CNY 5.21 million from CNY 6.59 million in the previous year[54]. - Research and development investments increased by 30%, totaling $150 million, to support new technology initiatives[120]. Customer and Community Engagement - The company has expanded its rural water supply services, successfully covering 40,000 rural residents' drinking water safety issues, contributing to poverty alleviation and rural revitalization efforts[182]. - The company has successfully completed the construction of 498 water stations in various regions, enhancing its service coverage from urban to rural areas[180]. - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[120].