ECH(SH:603200)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was CNY 559.94 million, representing a year-on-year increase of 5.63%[25]. - The net profit attributable to shareholders of the listed company was CNY 41.03 million, up 17.58% compared to the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 37.80 million, an increase of 10.55% year-on-year[25]. - The basic earnings per share for 2021 was CNY 0.33, reflecting a growth of 17.86% from the previous year[24]. - The diluted earnings per share also stood at CNY 0.33, marking a 17.86% increase year-on-year[24]. - The net cash flow from operating activities was CNY 22.32 million, a significant recovery from a negative cash flow of CNY -12.03 million in the previous year[25]. - Total assets at the end of 2021 reached CNY 1,231.60 million, a 5.60% increase from the previous year[25]. - The net assets attributable to shareholders of the listed company were CNY 834.58 million, up 3.79% compared to the end of 2020[25]. - The weighted average return on equity increased to 5.01%, up 0.58 percentage points from the previous year[24]. - The company achieved operating revenue of CNY 55,993.77 million, a year-on-year increase of 5.63%[48]. - The net profit attributable to shareholders reached CNY 4,103.30 million, reflecting a growth of 17.58% compared to the previous year[48]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 3,779.77 million, up by 10.55% year-on-year[48]. Dividend Policy - The company plans to distribute a cash dividend of 1.0 RMB per 10 shares (including tax) and to convert capital reserves into shares at a ratio of 3.8 shares for every 10 shares held[6]. - The company has a cash dividend policy that mandates a minimum of 30% of distributable profits to be distributed as cash dividends each year, provided certain conditions are met[129]. - In mature stages without significant capital expenditure plans, the cash dividend proportion should be at least 80% of the profit distribution[129]. - The company’s cash dividend policy has been strictly executed in accordance with regulatory guidelines, ensuring clarity and compliance in profit distribution[132]. - The 2021 profit distribution proposal includes a cash dividend of 1.0 yuan per 10 shares (tax included) and a capital reserve increase of 3.8 shares for every 10 shares[134]. Corporate Governance - The company reported a standard unqualified audit opinion from Zhonghua Certified Public Accountants[5]. - The company has maintained compliance with legal and regulatory requirements during all shareholder meetings, ensuring valid voting results[102]. - The company’s governance structure adheres to the regulations set forth by the China Securities Regulatory Commission, with no significant discrepancies noted[102]. - The company has not engaged in any business activities that would compromise its independence from its controlling shareholders[102]. - The company’s supervisory board is responsible for overseeing the actions of the board and senior management, ensuring the protection of shareholder interests[102]. - The company has established a comprehensive evaluation mechanism for senior management, which is implemented by the compensation and assessment committee[140]. - The company has not faced any penalties from securities regulatory agencies in the past three years[113]. Business Operations and Strategy - The company operates multiple subsidiaries, including Shanghai Xiba Environmental Technology Co., Ltd. and Tianjin Blue Sky Environmental Technology Co., Ltd.[12]. - The company expanded its business scope to include health living technology services and carbon science technology services, alongside traditional water treatment services[33]. - The company aims to deepen its market share in industrial water treatment by focusing on personalized chemical technology services and developing near-zero discharge processes[36]. - The company is actively expanding into new business areas, including online air disinfection services and urban river governance projects[43]. - The company is focusing on three main business tracks in the environmental sector: health environment solutions, health life technology solutions, and climate science technology services[90]. - The company plans to invest in R&D for new energy, new materials, and new processes to support its growth strategy[91]. - The company is actively pursuing mergers and acquisitions to strengthen its competitive position and diversify its service offerings[106]. Market and Industry Trends - The water treatment service industry is influenced by local water resource conditions and national policies, with a projected increase in water usage potentially exceeding 700 billion cubic meters by 2030[38]. - Water pollution remains a critical issue, with industrial wastewater posing significant threats to ecological safety and public health[38]. - The industry is experiencing increased regulatory scrutiny, with stricter standards for water conservation and wastewater discharge expected in the future[39]. - The company has reported a significant increase in water treatment technology and processes driven by national regulations on water pollution reduction and environmental quality supervision[41]. - The company has developed a strong brand presence and competitive advantage in industrial water treatment sectors such as steel metallurgy and petrochemicals[45]. Research and Development - The company has 89 authorized patents and software copyrights, with 47 effective invention patents, enhancing its competitive edge in the market[35]. - Research and development expenses increased by 21.53% to CNY 35,867.86 million[49]. - The company’s total R&D expenditure was CNY 35,867,864.90, accounting for 6.41% of total operating revenue[63]. - The management emphasized the importance of sustainability in their business strategy, aligning with global environmental standards and regulations[106]. Environmental Responsibility - The company has implemented pollution prevention facilities, including a 15-meter high exhaust stack for air emissions treatment[145]. - The company has achieved zero wastewater discharge through pre-treatment, reuse, and evaporation concentration processes[146]. - Hazardous waste, including waste chemical packaging and sludge, is managed by qualified disposal units in compliance with regulations[147]. - The company has established a joint venture with a top university to advance carbon capture and utilization (CCUS) technology for the power generation industry[149]. - The company has committed to social responsibility initiatives, donating over 1.3 million yuan in disinfectant supplies during the pandemic[150]. Shareholder Information - The company has a total of 125,296,539 shares outstanding after a capital increase of 25,191,895 shares[186]. - The top shareholder, Wang Wei, holds 56,638,885 shares, representing 45.20% of the total shares, with no pledged shares[197]. - The second-largest shareholder, Weng Huilan, holds 5,512,725 shares, accounting for 4.40% of the total shares[197]. - The company has a total of 662,934 restricted shares that were repurchased and canceled due to performance-related conditions[188]. - The company has not issued any new securities during the reporting period[193].