XLDY(SH:600769)2022-04-20 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of CNY 6,921,437.88, an increase of 30.89% compared to CNY 5,288,175.37 in 2020[6] - The operating revenue for 2021 was CNY 52,987,310.68, representing a growth of 72.77% from CNY 30,668,649.13 in 2020[22] - The net cash flow from operating activities reached CNY 30,850,998.94, up 60.72% from CNY 19,195,762.80 in the previous year[22] - The basic earnings per share rose to CNY 0.0185, a 31.21% increase from CNY 0.0141 in 2020[23] - The weighted average return on equity improved to 10.84%, an increase of 1.68 percentage points from 9.16% in 2020[23] - The net profit after deducting non-recurring gains and losses was CNY 6,104,613.22, which is a 101.50% increase from CNY 3,029,636.31 in 2020[22] - The company reported a quarterly revenue of CNY 11,083,208.19 in Q1, CNY 17,710,462.60 in Q2, CNY 10,061,057.96 in Q3, and CNY 14,132,581.93 in Q4 of 2021[25] - The company’s net assets attributable to shareholders increased by 11.46% to CNY 67,325,849.94 at the end of 2021, compared to CNY 60,404,412.06 at the end of 2020[22] - The company reported a significant increase in construction project completion, with a total of 25 projects completed, amounting to 2,787.85 million RMB[54] Revenue Breakdown - Water supply business revenue reached CNY 27.20 million, up 45.46% year-over-year, while construction installation revenue surged to CNY 25.37 million, a 120.29% increase[39] - The construction business generated revenue of 25.37 million yuan, representing a 120.29% increase compared to the previous year[33] - The company produced and sold 15,387,260 tons of tap water, maintaining a stable production and sales volume[45] - The company achieved a total water supply of 15.39 million tons, with a daily average supply exceeding 40,000 tons and a peak daily supply surpassing 50,000 tons[33] Asset and Liability Management - The company's total assets increased by 21.38% to CNY 187,509,409.63 at the end of 2021, compared to CNY 154,487,582.94 at the end of 2020[22] - The total amount of contracts in hand at the end of the reporting period was 30,273.00 million RMB, including 4,680.70 million RMB for projects that have been signed but not yet started[58] - The company’s total assets increased by 209.57% for contract assets, reaching 13,504,320.45 RMB, due to the growth in construction business[51] - The company reported a total liability of CNY 163,000,000.00, indicating a significant increase from the previous year[144] Governance and Management - The company has focused on enhancing internal governance and management efficiency, receiving awards for modern management innovation in 2020 and 2021[34] - The company maintained a "zero COVID-19 infection" policy for employees while actively participating in community pandemic prevention efforts[34] - The company has a structured approach to evaluating the performance of its directors and senior management, linking remuneration to the achievement of operational goals[77] - The company has a well-established internal control system, continuously enhancing risk management and internal controls based on internal and external changes[95] Market Strategy and Expansion - The company is strategically planning to expand its market presence by collaborating with large state-owned construction enterprises[33] - The company plans to enhance its water supply business in 2022 to align with the growth of industrial water demand in the region[67] - The company is experiencing significant growth in its surrounding park areas, indicating potential for future market expansion[39] - The company is positioned in the East Lake High-tech Zone, which is experiencing rapid GDP growth and population influx, providing a broad market development space[66] Related Party Transactions - The company reported a total of 7,565,930.36 RMB in related party transactions, with an average market price deviation of 14.92%[109] - The company reported a significant related party sales amount of 8.8734 million yuan, accounting for 16.75% of the total revenue for the year 2021[134] - In the water supply segment, related party revenue was 2.4095 million yuan, representing 8.72% of the total revenue for that segment[134] - In the construction segment, related party revenue reached 6.4639 million yuan, which is 25.48% of the total revenue for that segment[134] Audit and Compliance - The company’s financial statements were audited and deemed to fairly reflect its financial position as of December 31, 2021[129] - The audit report confirmed that the financial statements were prepared in accordance with the applicable accounting standards[130] - The company identified revenue recognition as a key audit matter due to the risk of management manipulation to meet specific targets[134] - The company’s internal controls related to revenue recognition were evaluated for effectiveness during the audit process[134] Future Outlook - The company plans to continue optimizing its internal governance and improve its governance level through ongoing self-examination and enhancement[96] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[154] - The company aims to improve customer satisfaction and service capabilities as part of its operational strategy[67]