TCEPC(SH:600874)2023-03-27 16:00Financial Performance - The net profit attributable to the parent company for 2022 was RMB 751,254,173.95, after deducting the statutory surplus reserve of RMB 45,053,105.75[13] - The actual distributable profit for shareholders in 2022 was RMB 5,075,506,443.79, with a proposed cash dividend of RMB 1.44 per 10 shares, totaling RMB 226,140,204.24, which accounts for 30.10% of the distributable profit[13] - Basic earnings per share for 2022 increased by 4.08% to CNY 0.51 compared to CNY 0.49 in 2021[73] - The weighted average return on equity decreased by 0.23 percentage points to 9.88% in 2022 from 10.11% in 2021[73] - The company achieved a total revenue of CNY 453,557.90 million, reflecting a slight decrease of 0.30% compared to the previous year[87] - The company’s total revenue for 2022 was CNY 452,216.70 million, a slight decrease of 0.30% compared to CNY 453,557.90 million in 2021[101] - Net profit attributable to shareholders increased by 8.38% to CNY 75,125.40 million from CNY 69,318.90 million in the previous year[101] - The net profit after deducting non-recurring gains and losses was CNY 66,366.20 million, reflecting an 8.16% increase year-on-year[101] - The total profit reached 969.298 million RMB, an increase of 8.17% year-on-year[114] Assets and Investments - The company reported total assets of RMB 134,235.49 million and net assets of RMB 35,852.80 million for its subsidiary, Zhongshui Company[3] - The registered capital of Hangzhou Company is RMB 37,744.50 million, with a net profit of RMB 10,186.08 million[3] - The company has a 100% equity stake in Xi'an Company, which reported a net profit of RMB 6,016.11 million[3] - The total asset scale of Jiyuan Xingchuang is RMB 68,332.33 million, with a net profit of RMB 4,432.05 million[3] - Cash and cash equivalents at the end of the period amounted to CNY 325,206.00 million, a 52.00% increase compared to the previous period[49] - The company’s total assets at the end of the period were significantly impacted by operational cash inflows and targeted fundraising efforts[49] - Total assets at the end of 2022 were CNY 2,296,967.40 million, reflecting a 9.04% increase from CNY 2,106,529.20 million at the end of 2021[101] Research and Development - The total R&D investment for the period was CNY 5,418.45 million, accounting for 1.20% of operating revenue[45] - The number of R&D personnel is 410, representing 18.10% of the total workforce[46] - The capitalized R&D investment accounted for 21.95% of total R&D expenditures[45] - The company’s R&D expenses increased by 137.33% to CNY 1,834.50 million during the reporting period[87] - Research and development investments increased by 30%, focusing on innovative water treatment technologies[190] Strategic Initiatives - The company is focusing on the development of new energy technologies and environmental protection services, indicating a strategic shift towards sustainability[3] - The company plans to allocate funds for external project development in 2023, reflecting its growth strategy[13] - The company plans to enhance its comprehensive environmental services, focusing on wastewater treatment and related services[53] - The company is actively promoting public REITs and is working on project audits and compliance with government regulations[107] - The company is focusing on optimizing its business layout and implementing a national expansion strategy, particularly in key regions such as the Beijing-Tianjin-Hebei area and the Yangtze River basin[169] Operational Performance - The company achieved operating revenue of 4,522.167 million RMB in 2022, a decrease of 0.30% compared to the previous year[114] - The company reported a total of 207,183 million yuan in costs related to wastewater treatment, which accounted for 73.73% of total costs, down from 77.95% in the previous year[62] - The company reported a significant increase in operating costs due to rising resource and labor costs, which may impact future profitability[169] - The company is focusing on expanding its sewage treatment and hazardous waste disposal operations, with increased operational volumes leading to higher revenues[116] Governance and Compliance - The company completed the re-election of its board of directors on September 8, 2022, with the new board serving from September 9, 2022, to September 8, 2025[143] - The board consists of 9 members, including 3 independent non-executive directors, ensuring compliance with the Hong Kong Stock Exchange's independence requirements[143] - The company held 22 board meetings and 3 shareholder meetings during the reporting period, demonstrating active governance[143] - The company has implemented a stock management system for directors and senior management, limiting share transfers during their tenure to 25% of their holdings[143] - The company emphasizes continuous professional development for directors, providing training to ensure they meet their responsibilities effectively[143] Market and Customer Relations - The total sales revenue from the top five customers amounted to 225,148.43 million yuan, accounting for 49.79% of the annual total sales[67] - The total procurement amount from the top five suppliers was 56,541.86 million yuan, representing 22.49% of the annual total procurement[67] - The company has maintained a stable relationship with its major customers and suppliers, with no significant reliance on a few entities[67] Future Outlook - For 2023, the company expects to process no less than 1,572.26 million cubic meters of wastewater, with service fee revenue and cost changes not exceeding 20%[169] - The company plans to invest no less than 67 million yuan in technology research and development and technological transformation in 2023, focusing on new processes and application technologies in wastewater and sludge treatment[169] - The company is exploring partnerships with international firms to enhance technological capabilities and market reach[193]