Chengbang Eco-Environment (SH:603316)2022-04-28 16:00Financial Performance - The company achieved operating revenue of RMB 1,313.93 million in 2021, representing a year-on-year growth of 14.51% due to steady progress in ongoing PPP and EPC projects[21]. - Basic earnings per share decreased by 50% to RMB 0.08 in 2021 compared to RMB 0.16 in 2020[21]. - The weighted average return on net assets was 2.39% in 2021, down by 2.25 percentage points from 4.64% in 2020[21]. - The company's net profit attributable to shareholders was CNY 21.93 million, a decrease of 47.05% year-on-year, primarily due to rising material costs, increased labor costs, and higher bad debt losses[22]. - Operating revenue for the period was CNY 1,313.93 million, representing a year-on-year increase of 14.51%[22]. - The net cash flow from operating activities increased by 54.07% compared to the same period last year, attributed to normal project progress and significant collections of project payments[22]. - The company's asset-liability ratio at the end of the reporting period was 54.35%[31]. - The company reported a decrease in maintenance costs by 20.64% year-on-year, totaling ¥25,122,189.88, which accounted for 2.22% of total costs[68]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous year, reflecting better cost management[127]. Dividends and Shareholder Returns - The company proposed a cash dividend of RMB 0.15 per 10 shares, totaling RMB 3,963,960.00, subject to shareholder approval[5]. - The total cash dividend, including share repurchase amounts, is RMB 34,957,277.44[5]. - The company plans to distribute a cash dividend of RMB 0.15 per 10 shares, amounting to a total distribution of 3.964 million RMB, which represents approximately 18.07% of the net profit attributable to ordinary shareholders[159]. - Over the past three years, the average annual cash dividend has accounted for 32.46% of the net profit for ordinary shareholders, with cumulative cash dividends from 2019 to 2021 representing about 97.37% of the average net profit over those three years[159]. Business Strategy and Development - The company plans to continue focusing on the development of new technologies and market expansion strategies[6]. - The company plans to expand its business in the "new infrastructure" sector through both organic growth and mergers and acquisitions, focusing on high-tech industries with better cash flow[30]. - The company aims to enhance its operational efficiency while maintaining stable growth in its existing environmental construction business[30]. - The company aims to develop a professional online intelligent operation and maintenance platform to reduce operational costs and improve efficiency in the environmental protection sector[53]. - The company is actively expanding its business across regions, maintaining its market share in the Yangtze River Delta while exploring opportunities nationwide[48]. - The company is focused on risk control while steadily advancing existing PPP and EPC projects, contributing to stable engineering business volume[65]. - The company is committed to becoming a respected green ecological technology enterprise by actively exploring and innovating in ecological environmental services[36]. Research and Development - The company has applied for a total of 86 patents, with 44 valid patents, including 10 invention patents and 30 utility model patents[43]. - R&D expenses grew by 12.14% to ¥45,776,454.25, reflecting the company's commitment to long-term technological development[60]. - The company is focusing on technological advancements, investing 100 million RMB in R&D for sustainable environmental solutions[127]. Governance and Compliance - The audit report issued by Zhonghui Certified Public Accountants confirmed the accuracy and completeness of the financial report[4]. - The company has established a comprehensive governance structure and decision-making rules to ensure compliance and efficient operations in the capital market[159]. - The company has not reported any non-compliance issues or penalties involving its directors, supervisors, or senior management[174]. - The company has appointed Zhonghui Certified Public Accountants as its auditing firm for the 2021 fiscal year, with an audit fee of CNY 750,000[172]. Market Conditions and Risks - The company has faced market and business risks, which are detailed in the management discussion and analysis section[7]. - The company faces risks from intense industry competition and potential market changes that could impact its market share and operational performance[112]. - The company faces potential risks in its PPP business due to policy changes, project approvals, and operational management, which could lead to project delays and increased costs[114]. Social Responsibility and Sustainability - The company has participated in various social responsibility initiatives, including donations of 30,000 RMB to charity organizations in Hangzhou during the reporting period[160]. - The company has constructed a cumulative green area of approximately 29 million square meters, which can absorb about 40,000 tons of carbon dioxide annually[156]. - The company has adopted innovative green technologies in its office environment, contributing to energy savings and environmental sustainability[156]. Employee Management and Development - The company emphasizes talent development, implementing an employee stock ownership plan to align employee interests with company goals[50]. - The company has established a complete training system through the Chengbang Business School, focusing on management and technical personnel, providing professional training for new employees and helping them obtain various professional certificates[162]. - The company conducts annual health checks for all employees and provides professional therapy teams for health assessments and treatments[163].