BGE(SH:603588)2021-04-08 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥6.83 billion, representing a 34.51% increase compared to ¥5.08 billion in 2019[24]. - The net profit attributable to shareholders for 2020 was approximately ¥550.07 million, a 33.51% increase from ¥412.02 million in 2019[24]. - The net cash flow from operating activities for 2020 was approximately ¥1.09 billion, reflecting a 38.41% increase from ¥786.68 million in 2019[24]. - The total assets at the end of 2020 were approximately ¥15.43 billion, a 34.70% increase from ¥11.46 billion at the end of 2019[24]. - The basic earnings per share for 2020 was ¥0.752, up 21.68% from ¥0.618 in 2019[24]. - The company reported a weighted average return on equity of 14.25% for 2020, an increase of 0.24 percentage points from 14.01% in 2019[24]. - The company's operating income for 2020 was 6.827 billion RMB, an increase of 34.51% year-on-year[86]. - The operating costs for the same period were 5.246 billion RMB, reflecting a year-on-year increase of 34.55%[86]. - The net cash flow from operating activities was 1.089 billion RMB, up 38.41% from the previous year[86]. - The company’s financing activities generated a net cash flow of 1.994 billion RMB, a significant increase of 83.53% year-on-year[86]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.70 per 10 shares and to convert capital reserves into shares at a ratio of 3 shares for every 10 shares held[6]. - The cash dividend per 10 shares for 2020 was ¥0.70, consistent with the previous year, while the stock bonus was 3 shares per 10 shares[154]. - The company has committed to a cash dividend policy ensuring that at least 10% of the distributable profit will be distributed as cash dividends annually[151]. - The company plans to maintain a cash dividend proportion of no less than 20% in its profit distribution during its growth phase[151]. - In 2020, the company distributed cash dividends amounting to ¥56,640,000.55, representing 10.30% of the net profit attributable to ordinary shareholders[154]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The company emphasizes the importance of accurate and complete financial reporting, with management responsible for the integrity of the report[4]. - The company has made commitments regarding related party transactions and competition, ensuring compliance with regulations[157]. - The company committed to avoid competition with its major shareholder, Li Weiguo, as detailed in the prospectus[165]. - The company has engaged Tianjian Accounting Firm for auditing services, with a remuneration of RMB 60,000 for five years[189]. Business Operations and Strategy - The company has outlined its future plans and development strategies, which are subject to investment risks[7]. - The company aims to become a global leader in environmental system services, emphasizing technological innovation and public service[34]. - The company has developed a comprehensive environmental service platform, including wastewater treatment and flue gas treatment[34]. - The company is positioned for growth in its solid waste and hazardous waste resource utilization business, which is a key strategic focus[45]. - The company plans to expand its operations in the East and Southwest regions, where revenue growth has been significant[95]. Market and Industry Trends - The company anticipates favorable developments in the solid waste treatment industry due to new national and industry standards being implemented[128]. - The solid waste and hazardous waste resource utilization market is expected to expand due to stricter regulations, benefiting larger companies with capital and operational advantages[129]. - Urban household waste incineration processing volume increased from 11 million tons in 2006 to 122 million tons in 2019, with incineration accounting for 51% of harmless treatment by 2019[129]. Risks and Challenges - The company faces risks from industry policy changes, particularly regarding subsidies for waste incineration power generation[140]. - The impact of the COVID-19 pandemic on the economy remains uncertain, with potential delays in project timelines and payment from owners[149]. - The company has implemented hedging strategies to mitigate risks associated with commodity price fluctuations[148]. - The company is implementing measures to manage accounts receivable risks, including enhancing client credit assessments and improving collection processes[145]. Acquisitions and Investments - The company completed the acquisition of 51% equity in Hangzhou New Materials, expanding its solid waste resource utilization business[64]. - The company acquired 40% of Yangxin Pengfu for a total consideration of CNY 190 million and cash payment of CNY 20 million[119]. - The company acquired 30.01% of Jingyuan Gaoneng for a total consideration of CNY 127.55 million and cash payment of CNY 30 million[119]. - The company acquired 19.01% of Jingyuan Gaoneng for a total consideration of CNY 79.80 million and cash payment of CNY 20 million[119]. Legal Matters - The company is currently involved in arbitration regarding claims against the former shareholders of Guizhou Hongda, with no resolution as of yet[173]. - The company has been involved in a major lawsuit related to the acquisition of Guizhou Hongda, with an unresolved claim amounting to RMB 57,120,200[197]. - The company reported a significant arbitration case involving Jilin Guoyuan Investment Holding Group, with a total claim amount of RMB 12,568,130.81[194]. - The arbitration ruling required Jilin Guoyuan to pay the claimed amount within ten days, but the payment has not been made, leading to a forced execution application by the company[194]. Research and Development - The company holds 390 authorized patents and has participated in the development of 84 national and industry standards, showcasing its strong R&D capabilities[47]. - The company invested 21,147.26 million in R&D, representing 3.10% of total revenue[102]. - The company has achieved a 20% improvement in reduction smelting capacity and a 5% increase in the recovery rate of valuable metals through its advanced technologies in hazardous waste resource utilization[48].