Jiangnan Water(SH:601199)2022-04-26 16:00Financial Performance - In 2021, Jiangsu Jiangnan Water Co., Ltd. achieved a net profit attributable to shareholders of 137,119,688.13 CNY, with a retained profit of 1,290,717,943.64 CNY available for distribution to shareholders[5]. - The company reported a 10% statutory surplus reserve deduction of 13,711,968.81 CNY from the net profit for the year[5]. - The financial report received a standard unqualified audit opinion from the auditing firm[4]. - The company's operating revenue for 2021 was CNY 1,113,597,477.53, representing a 16.83% increase compared to CNY 953,142,149.51 in 2020[21]. - The net profit attributable to shareholders for 2021 was CNY 276,400,580.88, up 13.29% from CNY 243,986,217.80 in 2020[21]. - The basic earnings per share for 2021 was CNY 0.30, reflecting a 15.38% increase from CNY 0.26 in 2020[22]. - The weighted average return on equity increased to 8.65% in 2021, up from 8.15% in 2020, marking an increase of 0.50 percentage points[22]. - The total assets at the end of 2021 were CNY 5,716,490,407.50, a 4.79% increase from CNY 5,454,989,201.47 at the end of 2020[21]. - The net cash flow from operating activities for 2021 was CNY 442,160,096.25, down 19.47% from CNY 549,042,858.16 in 2020[21]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 264,368,807.85, an increase of 14.24% compared to CNY 231,419,856.27 in 2020[21]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.09 CNY per share, amounting to approximately 84,168,926.28 CNY, based on a total share capital of 935,210,292 shares[5]. - The company has not proposed any capital reserve conversion or stock distribution for the year[5]. - A cash dividend of 0.09 CNY per share was proposed, amounting to an estimated total of 84,168,926.28 CNY, with the remaining undistributed profits carried forward to the next year[177]. - The company has implemented a cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring transparency and protection of minority shareholders' rights[179]. Operational Highlights - In 2021, the company's water supply volume reached 28,344.64 million cubic meters, an increase of 8.12% compared to 2020[32]. - The total water sales volume was 25,681.54 million cubic meters, reflecting a growth of 7.52% year-on-year[32]. - The average daily water supply was 776,600 cubic meters, with a production and sales discrepancy rate of 9.40%[32]. - The company completed 109.02% of its annual water supply plan and 111.66% of its annual water sales plan[32]. - The company achieved a 100% compliance rate for water quality standards during the reporting period[32]. - The company has a water treatment capacity of 35,000 tons per day through its subsidiaries, focusing on industrial wastewater and municipal sewage treatment[42]. - The company holds a 30% stake in Everbright Water (Jiangyin) Co., which operates three sewage treatment plants with a combined capacity of 220,000 tons per day[43]. Investments and Acquisitions - The company acquired 100% equity of Jiangyin Qingyuan Pipeline Engineering Co., Ltd. for RMB 32 million, enhancing its wastewater treatment capabilities[34]. - The company invested RMB 10 million to hold a 10% stake in Jiangyin Big Data Co., Ltd. to promote smart city development[34]. - The company’s registered capital for Qingyuan Pipeline Engineering Co., Ltd. increased from RMB 50 million to RMB 350 million after capital injection[34]. - The company confirmed investment income from joint ventures totaling RMB 1,507.21 million from Everbright Water (Jiangyin) Co., Ltd.[104]. - The company has ongoing major projects with a total investment of RMB 6,297.75 million, with varying completion percentages[87]. Research and Development - The company is actively engaged in R&D, with 9 research projects completed, including studies on water quality and treatment technologies[48]. - Research and development expenses surged by 180.63% to CNY 5,779,197.79, indicating a strong focus on innovation[54]. - The company holds 18 utility model patents and 14 software copyrights, enhancing its intellectual property portfolio[51]. - The company has 28 R&D personnel, making up 3.9% of the total workforce[75]. - Eight new utility model patents were obtained during the reporting period, enhancing the company's technological capabilities[76]. Environmental Compliance - The company has implemented a comprehensive environmental monitoring system, including both manual and online monitoring, to ensure compliance with environmental regulations[195]. - The company has established emergency response plans for environmental incidents at both wastewater treatment plants, detailing preventive measures and response protocols[193]. - Both wastewater treatment plants maintained compliance with environmental standards, with no instances of exceeding discharge limits reported[188]. - The company is committed to continuous improvement in its environmental management practices, as evidenced by its adherence to national standards and regular monitoring[195]. - The company has engaged third-party firms for monitoring non-routine environmental indicators, ensuring comprehensive oversight of its environmental impact[195]. Governance and Management - The company is committed to transparency in its governance practices, as evidenced by the detailed disclosure of board member compensation and qualifications[145]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 4.96 million CNY[145]. - The company has appointed a new general manager, Chi Yong, effective from May 14, 2021[146]. - The board includes independent directors with various professional backgrounds, enhancing governance and oversight[146]. - The company has established specialized committees under the board, including the audit committee, nomination committee, compensation and assessment committee, and strategic committee[161]. Challenges and Risks - The company recognizes policy risks associated with its reliance on national industrial policies and aims to adapt to changes in economic policies[134]. - The company's operating costs have increased due to factors such as energy conservation and emission reduction, leading to a slowdown in the development of the water supply business[135]. - The company is facing challenges in market expansion due to intensified competition in the water environment industry and limited market space[135]. - Financial risks are considered low, but the demand for funds will increase as the company expands its projects and business[136]. Future Plans - The company plans to achieve an annual water supply volume of 27 million cubic meters and a sales volume of 24 million cubic meters in 2022, with a production and sales difference rate not exceeding 10%[130]. - The company aims to control the national urban public water supply network leakage rate to below 9% by 2025, with pilot cities having a target of no more than 8%[126]. - The company is implementing a Smart Water 2.0 plan, integrating IoT, big data, and AI to enhance operational capabilities and decision-making[128]. - The company will actively expand its sewage treatment business and develop drainage facility operation and maintenance services[130]. - The company is focused on diversifying its operations within the municipal infrastructure sector while enhancing its core water supply business[129].