FEIDA ENVIRO(SH:600526)2021-04-07 16:00Financial Performance - The company's operating revenue for 2020 was CNY 3,111,281,414.84, a decrease of 8.92% compared to 2019[22]. - The net profit attributable to shareholders decreased by 42.28% to CNY 52,319,352.86, primarily due to reduced revenue and increased provisions for credit impairment[24]. - The net cash flow from operating activities decreased by 54.93% to CNY 249,960,925.58, attributed to a decrease in total cash recovery[25]. - Basic earnings per share for 2020 were CNY 0.10, down 41.18% from CNY 0.17 in 2019[23]. - The weighted average return on equity decreased to 2.60%, down 2.02 percentage points from 4.62% in 2019[23]. - The total assets at the end of 2020 were CNY 6,742,652,277.60, a decrease of 5.63% from the previous year[22]. - The net assets attributable to shareholders increased slightly by 1.63% to CNY 2,040,102,472.46[22]. - The company reported a significant increase in income tax expenses, rising by 224.06% to CNY 23.76 million due to a decrease in deferred tax assets[64]. - The company reported a consolidated asset-liability ratio of 68.20% as of December 31, 2020, a decrease of 3.78 percentage points from the beginning of the year[51]. Revenue and Cost Management - The company's total revenue for 2020 was approximately CNY 2.92 billion, representing a year-on-year increase of 17.33%[55]. - The revenue from environmental equipment accounted for 82.69% of the total revenue, while installation services contributed 3.44%[55]. - The total cost of sales decreased by 19.43% to CNY 1.26 billion, primarily due to improved cost control measures[59]. - The company's operating revenue decreased by 8.92% year-on-year, while operating costs decreased by 9.45%, indicating improved cost management[54]. Research and Development - Research and development expenses rose by 88.58% to approximately CNY 94.05 million, driven by increased investment in new technologies and products[39]. - The total number of R&D personnel was 358, with R&D expenditures representing 3.02% of total revenue[65]. - The company has been granted 34 new patents and published 30 scientific papers during the reporting period, enhancing its innovation capabilities[42]. - The company has developed new technologies for ultra-low emissions and unconventional pollutant removal, improving its market competitiveness in environmental protection[42]. Legal and Compliance Issues - The company has significant litigation and arbitration matters, including a compensation amount of CNY 57,143,683.08 related to a court ruling[120]. - The company is involved in a dispute regarding a payment of CNY 15,032,622.41 for a third equity transfer, with an additional claim for interest loss of CNY 3,243,424.30 pending[120]. - The company has completed the payment of 2,042,832 CNY to Xiamen Baorui Environmental Technology Co., Ltd. as per the court ruling[121]. - The company has received 180,000 CNY from Hangzhou Yijin Clean Source Environmental Engineering Technology Co., Ltd. as per the mediation agreement[121]. Environmental Compliance - The company executed pollution discharge standards for wastewater treatment plants according to GB 18918-2002, with CODcr standard at 60 mg/L[134]. - The company has no instances of exceeding discharge standards during the reporting period[134]. - The company operates 5 sets of waste gas treatment devices and 1 set of wastewater treatment devices, achieving stable operation and compliance with emission standards[137]. - The wastewater treatment system is a buried sewage treatment device that operates stably and meets discharge standards[138]. Market Position and Strategy - The company is positioned to benefit from ongoing environmental policies and market expansion in various sectors, including steel and waste management[35]. - The company aims to transition from equipment manufacturing to comprehensive environmental services, including air, water, and solid waste management[77]. - The company is focusing on innovative environmental governance models, including third-party management and integrated environmental governance, to enhance service levels and sustainability[99]. - The company is committed to enhancing its competitive edge in the international market by advancing its pollution control technologies to meet global standards[98]. Shareholder and Governance Structure - The total number of ordinary shareholders at the end of the reporting period was 42,131, a decrease from 84,426 at the end of the previous month[153]. - The top ten shareholders hold a total of 140,515,222 shares, representing 25.67% of the total shares, with no changes during the reporting period[155]. - The company has a robust governance structure, with independent directors actively participating in board activities to ensure compliance and strategic oversight[170]. - The company has a strong focus on market expansion and strategic investments, with executives responsible for market work and quality management[171]. Operational Challenges - The company faced challenges due to the pandemic and changes in revenue recognition standards, impacting overall financial performance[24]. - The company is actively collaborating with local strong enterprises to consolidate its coal-fired power station base and expand into non-electric sectors[76]. - The traditional coal power market is expected to continue declining, leading to increased competition and pricing pressures[106]. - The company faces risks from the ongoing COVID-19 pandemic, particularly in overseas project development and execution[106].