FEIDA ENVIRO(SH:600526)2020-04-08 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥3.42 billion, a decrease of 2.98% compared to ¥3.52 billion in 2018[21]. - Net profit attributable to shareholders turned from a loss of ¥421.67 million in 2018 to a profit of ¥906.49 million in 2019, an increase of ¥498.70 million[23]. - The basic earnings per share for 2019 was ¥0.17, compared to a loss of ¥0.77 per share in 2018[22]. - The weighted average return on equity increased to 4.62% in 2019 from -19.80% in 2018, a rise of 24.42 percentage points[22]. - Cash flow from operating activities increased by ¥585.40 million, reaching ¥554.61 million in 2019, attributed to improved fund management[23]. - The company achieved a consolidated operating revenue of CNY 3,416,030,256.19, with a net profit of CNY 90,515,569.98, and a net profit attributable to shareholders of CNY 90,649,098.38, primarily due to a recovery in gross margin, cost savings, increased investment income, and reversal of asset impairment losses[44]. - The company reported a net profit of ¥90,515,569.98, a significant recovery from a net loss of ¥427,060,997.22 in the previous year, indicating a turnaround in profitability[36]. - Operating profit increased to ¥94,861,166.02, compared to a loss of ¥410,508,295.93 in the prior year, driven by higher main business profits and increased investment income[36]. Assets and Liabilities - Total assets decreased by 11.72% to approximately ¥7.14 billion at the end of 2019, down from ¥8.09 billion at the end of 2018[21]. - The company's short-term borrowings decreased by 32.65% to approximately 1.617 billion, attributed to the repayment of loans[35]. - The company's long-term receivables increased by 3,441.11%, reflecting the recognition of revenue from BT projects[34]. - The company's asset-liability ratio decreased by 4.50 percentage points to 71.00% as of December 31, 2019[44]. - The total current liabilities decreased from $5.50 billion in 2018 to $4.67 billion in 2019, a decrease of approximately 15%[198]. - The company's total equity attributable to shareholders increased from $1.92 billion in 2018 to $2.01 billion in 2019, a growth of approximately 4.5%[199]. Investment and R&D - The company has obtained 27 new patents during the reporting period, including 2 invention patents, and published 72 papers, showcasing its commitment to innovation[41]. - The company’s research and development expenses increased by 24.14% to CNY 49,875,986.87, reflecting a commitment to innovation[46]. - Total R&D investment reached ¥102,528,331.45, accounting for 3.00% of operating revenue, with 51.35% of R&D costs capitalized[59]. - The company has established a comprehensive technology R&D system, including a national-level engineering laboratory and multiple research institutes, to support its innovation efforts[38]. Environmental Compliance and Initiatives - The company has established emergency response plans for environmental incidents[138]. - The self-monitoring scheme ensures compliance with national standards for sampling and analysis methods[139]. - The company aims for zero discharge of cooling water after treatment, achieving near-zero emissions[140]. - The total air emissions include 2.81 tons of dust, 8.57 tons of nitrogen oxides, and 3.45 tons of sulfur dioxide[131]. - The company received administrative penalties totaling CNY 350,000 for exceeding air pollutant emissions from its incinerator, which has since been rectified[141]. Shareholder and Governance - The total number of ordinary shareholders increased from 40,134 to 43,298 during the reporting period, reflecting a growth of approximately 7.3%[146]. - The largest shareholder, Hangzhou Steel Group Co., Ltd., holds 140,515,222 shares, representing 25.67% of the total shares, with shares currently frozen[148]. - The company has established a clear cash dividend policy to protect shareholder rights, as outlined in its articles of association[101]. - The company is focused on maintaining independence from its controlling shareholder to ensure fair operations and protect the interests of all shareholders[104]. Legal and Litigation Matters - The company is involved in a lawsuit where Huaneng International Power Co. is seeking 2 million CNY for electronic bank acceptance bills[116]. - The company has prioritized the recovery of 69 million CNY from the liquidation of 18 commercial properties in Zhuji Dingsheng Garden[115]. - The company has reached a settlement with Shanxi Guojin Coal and Electricity Co., Ltd. for a total of 1,641.5 million CNY in equipment and service fees[115]. - The company has ongoing litigation cases, including a request for payment of 5,536,000 yuan from Ningde Zhangwan Waste Incineration Power Co., Ltd.[118]. Market and Strategic Focus - The company is focused on modernizing its manufacturing facilities and enhancing production lines to compete with multinational corporations[39]. - The company is actively collaborating with local strong enterprises to consolidate existing markets and explore new business opportunities[69]. - The company aims to achieve a comprehensive transformation from equipment manufacturing to environmental services, covering air, water, and solid waste management[70]. - The company faced significant market pressure due to the shrinking market for flue gas treatment projects in the coal power industry, prompting a strategic expansion into wastewater, solid waste, and non-coal power sector emissions treatment[99].