ECH(SH:603200)2023-04-17 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 36.68 million, an increase of 7.27% 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 were CNY 1,231.60 million, a 5.60% increase from the end of 2020[25]. - The net assets attributable to shareholders of the listed company increased to CNY 834.58 million, up 3.79% from the previous year[25]. - The weighted average return on equity for 2021 was 5.01%, an increase of 0.58 percentage points compared to 2020[24]. Dividend Policy - The company plans to distribute a cash dividend of 1.0 RMB per 10 shares and to convert 3.8 shares from capital reserves 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 included a cash dividend of 1.0 yuan per 10 shares (tax included) and a capital reserve conversion of 3.8 shares for every 10 shares, pending shareholder approval[134]. Business Operations and Challenges - In 2021, the company faced significant challenges due to the COVID-19 pandemic, impacting supply chains and causing a substantial increase in business costs[33]. - The company expanded its business scope to include health life technology services and carbon science technology services, alongside traditional water treatment services[33]. - The company achieved a significant recovery in equipment sales and installation, with notable growth in civil, steel, and petrochemical water treatment sectors, despite a decline in automotive and paper industries[34]. - The company successfully completed several key projects, including the Wuhan landfill leachate project and the Guangdong wastewater treatment project, while winning new contracts in various sectors[34]. 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 is focused on carbon reduction technologies, including carbon capture and storage, as part of its strategic initiatives[82]. - The company plans to invest 100 million RMB in R&D for new technologies in the next fiscal year[116]. Environmental Responsibility - The company has implemented pollution prevention facilities, with a 15-meter exhaust stack for air pollutant discharge[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, aiming for significant breakthroughs in reducing carbon emissions[149]. - The company has committed over 1.3 million yuan in donations for pandemic prevention materials and community support during the reporting period[150]. Governance and Compliance - The company reported a standard unqualified audit opinion from Zhonghua Certified Public Accountants[5]. - The company has not faced significant differences in governance compared to regulations set by the China Securities Regulatory Commission[102]. - The company ensured compliance with legal and regulatory requirements in all shareholder meetings held during the reporting period[102]. - The company has not been subject to penalties from securities regulatory agencies in the past three years[113]. Market Position and Strategy - The company has served over 3,000 important clients, including more than 100 Fortune Global 500 companies[47]. - The company is actively expanding its market presence through strategic investments and partnerships in environmental technology[85]. - 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 plans to leverage capital markets for external growth and enhance management capabilities in strategic planning and resource allocation[37]. Shareholder Information - The total number of shares increased from 100,767,578 to 125,296,539, reflecting an increase of 24,528,961 shares[186]. - The company plans to repurchase and cancel restricted shares for employees who no longer meet the incentive conditions, totaling 662,934 shares[188]. - The top ten shareholders held a total of 56,638,885 shares, representing 45.20% of the total shares, with no shares pledged[197]. - The controlling shareholder is Mr. Wang Wei, who serves as the chairman and general manager of the company[199]. Financial Management - The company has entrusted a total of 580 million RMB in structured deposits and 34 million RMB in private equity funds, indicating a strong reliance on self-owned funds for investment[174]. - The company has a total of 8 million RMB in entrusted financial management with a 7% annualized return, which has not been recovered upon maturity[173]. - The company has ongoing significant contracts, including a project with China National Petroleum Corporation for a rolling development of 3.4 billion cubic meters per year, which has been extended until December 31, 2021[180].