LK(SH:600388)2022-08-04 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately CNY 4.89 billion, a slight increase of 0.27% compared to the same period last year[27]. - Net profit attributable to shareholders of the listed company decreased by 5.51% to approximately CNY 381.75 million[27]. - The net cash flow from operating activities dropped significantly by 77.59% to approximately CNY 31.59 million[27]. - The company's total assets as of June 30, 2022, were approximately CNY 26.89 billion, a decrease of 0.08% from the end of the previous year[27]. - The net asset attributable to shareholders of the listed company increased by 5.55% to approximately CNY 7.27 billion[27]. - The basic earnings per share for the first half of 2022 was CNY 0.36, down 5.26% from CNY 0.38 in the same period last year[28]. - The company's debt-to-asset ratio was 72.32%, a decrease of 1.58 percentage points compared to the end of the previous year[28]. - The total liabilities amounted to CNY 194.44 billion, with contract liabilities accounting for 40.98% of the total[28]. - The company plans to distribute a cash dividend of CNY 2.5 per 10 shares, with no capital reserve transfer to increase share capital[7]. Environmental Initiatives - Longking Environmental is a leading enterprise in China's environmental protection industry, focusing on air pollution control and aiming to transform into a technology-driven low-carbon environmental service operator[33]. - The company has developed a comprehensive range of products and services in air pollution control, including electrostatic precipitators, flue gas desulfurization systems, and VOCs treatment technologies[34]. - Longking has established multiple hazardous waste disposal centers capable of handling thousands of types of hazardous waste, covering 35 major categories and 253 subcategories[38]. - The company has received numerous accolades, including being recognized as a national innovative enterprise and a national technology innovation demonstration enterprise[33]. - In the first half of 2022, nearly 1.03 billion kilowatts of coal-fired power units in China achieved ultra-low emissions, representing 93% of the total coal power installed capacity, indicating significant market potential for environmental services[41]. - Longking's operational model combines equipment manufacturing, engineering services, and asset operation, ensuring stable revenue and cash flow growth[40]. - The company is actively expanding into the renewable energy sector, aiming to create a dual-driven industrial layout of environmental protection and new energy[51]. - The company completed three key technology projects related to environmental dust removal systems and carbon capture technology, enhancing its innovation capabilities[57]. - The company’s carbon capture system achieved over 95% CO₂ capture efficiency under specific conditions, demonstrating advanced domestic standards[57]. Research and Development - The company has a strong focus on technological innovation, with many of its products filling domestic gaps and achieving international leading standards[44]. - Longking has established a comprehensive R&D and production base across multiple cities in China, enhancing its manufacturing capabilities and reducing costs[48]. - The company is actively pursuing market expansion and collaboration with international research teams to enhance its technological edge[33]. - Research and development expenses increased by 30% to support new technology initiatives[133]. Employee Engagement - Longking is implementing a ten-year employee stock ownership plan to align employee interests with company growth, fostering long-term motivation[47]. - The employee stock ownership plan includes 502 participants in the sixth phase, 532 in the seventh phase, 528 in the eighth phase, and 530 in the ninth phase[83]. - The total funds for the sixth phase of the employee stock ownership plan amount to 80,121,723.70 yuan, while the seventh phase totals 85,102,969.84 yuan, the eighth phase totals 70,278,863.13 yuan, and the ninth phase totals 86,034,855.54 yuan[83]. Corporate Governance - The company underwent a change in control on May 30, 2022, leading to adjustments in the board of directors and senior management[77]. - Lin Hongfu was elected as the new chairman of the board, and He Mei was elected as the co-chairman[78]. - The company’s ninth board of directors includes 10 members, with various roles including independent directors and financial directors[78]. - The company’s second extraordinary general meeting of 2022 approved the replacement of directors and supervisors[76]. Market Expansion - The company signed engineering contracts totaling CNY 5.49 billion during the reporting period, with a backlog of contracts amounting to CNY 21.48 billion, providing a solid foundation for sustained profitability and business growth[52]. - The environmental equipment manufacturing and engineering segment generated revenue of CNY 4.35 billion, a decrease of 0.98%, while the operating projects saw revenue growth of 38.3% to CNY 413 million[52]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of the year[132]. Financial Stability - The company’s debt-to-asset ratio was 72.32%, a decrease of 1.58 percentage points from the end of the previous year, indicating improved financial stability[52]. - The company reported a significant decrease of 81.39% in receivables, down to approximately ¥20.27 million, due to accounting methods[62]. - The company faced increased competition in the environmental protection industry, with challenges from economic downturns and price competition[69]. Compliance and Monitoring - The company has established a comprehensive monitoring plan for various locations, including dormitory areas and waste treatment facilities, to ensure compliance with environmental regulations[150]. - The company adheres to strict limits for various pollutants, including 0.005 mg/L for antimony and 0.001 mg/L for mercury in the JK4 monitoring well[152]. - The monitoring methods include advanced techniques such as inductively coupled plasma mass spectrometry for detecting multiple elements in water quality[152]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[155]. Strategic Goals - The new strategic goal focuses on strengthening existing environmental business while accelerating entry into the new energy sector, leveraging the advantages of its major shareholder, Zijin Mining[56]. - The company has initiated a "carbon reduction research center" to focus on "pollution reduction and carbon reduction" strategies and technology[159]. - The company committed to ensuring independence in personnel, assets, finance, and operations during the control period by Zijin Mining and Minxi Xinghang[162].