DZUG(SH:600635)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was CNY 5,417,593,979.70, an increase of 13.26% compared to CNY 4,783,236,756.44 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 303,356,221.16, a decrease of 41.12% from CNY 515,231,416.65 in 2020[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 107.02% to CNY 342,864,753.47 in 2021[26]. - The net cash flow from operating activities increased by 194.35% to CNY 674,261,904.04 in 2021, compared to CNY 229,066,802.14 in 2020[26]. - The weighted average return on equity decreased by 2.71 percentage points to 3.52% in 2021 from 6.23% in 2020[26]. - The total assets at the end of 2021 were CNY 24,074,948,288.80, an increase of 1.92% from CNY 23,622,080,255.74 at the end of 2020[24]. - The net assets attributable to shareholders at the end of 2021 were CNY 8,715,731,073.26, an increase of 0.84% from CNY 8,643,440,050.36 at the end of 2020[24]. - The basic earnings per share for 2021 were CNY 0.102748, a decrease of 41.12% from CNY 0.174511 in 2020[26]. - The diluted earnings per share for 2021 were also CNY 0.102748, reflecting the same decrease as the basic earnings per share[26]. - The company achieved operating revenue of CNY 5.42 billion in 2021, an increase of 13.26% compared to CNY 4.78 billion in the previous year[75]. - The net profit attributable to the parent company was CNY 303 million, a decrease of 41.12% from the previous year's CNY 514 million[75]. Dividend and Share Capital - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares, totaling 147,621,733.75 RMB for the year 2021[6]. - The total share capital at the end of 2021 was 2,952,434,675 shares[6]. - The company distributed a cash dividend of 0.55 yuan per 10 shares, totaling 162,383,907.13 yuan for the 2020 fiscal year[158]. - The company has no adjustments to its cash dividend policy during the reporting period[158]. - The company’s cash dividend policy is designed to provide stable returns to investors based on economic performance[156]. Audit and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - The management has confirmed the authenticity, accuracy, and completeness of the financial report[4]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[8]. - The company has established a sound corporate governance structure and internal control system, ensuring compliance with relevant laws and regulations[121]. - The company has actively engaged in environmental, social, and governance (ESG) reporting to showcase its commitment to sustainable development[121]. - The company has not experienced any violations regarding insider trading during the reporting period[123]. - The company has a dedicated audit committee, nomination committee, compensation and assessment committee, and strategic development committee to ensure clear responsibilities and compliance[121]. - The internal control audit report for the reporting period received a standard unqualified opinion[164]. Risk Management - There were no significant risk events reported during the reporting period[8]. - The company has outlined potential risks and corresponding countermeasures in the report[8]. - The company faces risks from domestic natural gas price fluctuations, which could impact gross margins and profitability[112]. - Environmental risks are present due to stricter regulations in wastewater treatment and solid waste management, requiring proactive compliance measures[113]. - Currency exchange rate fluctuations pose a risk due to some funds being held in USD, necessitating close monitoring[116]. - The company will prioritize "capital safety" in overseas investments, focusing on mature projects to mitigate risks[117]. Investments and Projects - As of the end of 2021, the company has invested in 1,406 projects, with 206 of these companies listed on 17 global capital markets, and 399 projects have exited (including IPOs)[47]. - The company has completed the reduction of its holdings in Junyao Health, achieving certain investment returns[47]. - The company has invested in two semiconductor industry projects through its affiliated special funds in 2021, generating some investment income[47]. - The company reported a total investment in financial assets of approximately 3.61 billion, with a fair value change of -100.14 million during the period[102]. - The company transferred 21% of its shares in Dazhong Transportation, totaling 52.5 million shares, to Dazhong Transportation and Dazhong Management in November 2021[103]. Environmental Compliance - The company maintains compliance with environmental discharge standards across its subsidiaries, with no exceedances reported in the latest assessments[171]. - The company achieved a significant improvement in wastewater treatment quality, now meeting Class A+ standards after major upgrades[176]. - The company invested approximately RMB 1.1 million in automatic monitoring equipment for total phosphorus, total nitrogen, and pH at various wastewater treatment plants[176]. - The company has implemented a self-monitoring scheme for environmental compliance, with automatic monitoring facilities installed at inflow and outflow points[181]. - The company emphasizes compliance with environmental regulations, ensuring all emissions meet required standards[186]. Corporate Governance - The company has committed to improving its governance structure and operational levels continuously[121]. - The company’s board of directors and senior management remuneration is linked to performance, with annual performance targets set by the assessment committee[137]. - The company held a total of 8 board meetings in 2021, with all directors attending all meetings[142][145]. - The company has a diverse board with members holding various significant positions in other organizations, enhancing its governance structure[128]. - The company is focused on maintaining strong corporate governance through its independent directors and supervisory board[128]. Employee and Management - The company had a total of 3,019 employees, with 60 in the parent company and 2,959 in major subsidiaries[153]. - The company’s employee composition includes 2,416 production staff, 132 sales personnel, and 200 technical staff[153]. - The company emphasized training for new employees to enhance execution and dedication[155]. - The company has established a comprehensive performance evaluation and compensation management system for senior management, with the 2021 performance assessment plan approved by the board of directors[160]. Future Outlook - The company aims to explore new energy projects and establish sustainable profit models in the urban gas sector[61]. - The wastewater treatment sector is anticipated to grow rapidly due to government initiatives aimed at increasing water recycling rates by 2025[94]. - The company plans to strengthen cash flow management and control the debt ratio to maintain a strong risk resistance capability[111]. - The company is committed to improving asset quality and profitability through differentiated competition and collaboration in the financial services sector[69].