CECO(SH:603698)2022-04-21 16:00Financial Performance - The company achieved operating revenue of RMB 2,431,555,519.22 in 2021, representing a year-on-year increase of 17.44%[25]. - The net profit attributable to shareholders was RMB 155,497,581.73, a decrease of 13.29% compared to the previous year[25]. - The net profit after deducting non-recurring gains and losses was RMB 94,462,075.06, down 46.34% year-on-year[25]. - The company reported a net cash flow from operating activities of RMB 298,638,292.77, an increase of 6.47% from the previous year[25]. - The company's total assets increased by 4.18% to RMB 4,535,428,503.73 at the end of 2021[25]. - The company's operating costs increased by 26.97% to CNY 2.07 billion compared to the previous year[45]. - The gross profit margin for the company was 14.87%, down 6.39 percentage points from the previous year, due to intensified market competition and increased project costs[53]. - The weighted average return on net assets decreased to 5.24%, down 1.05 percentage points from the previous year[25]. Strategic Initiatives - The company launched its "14th Five-Year" strategic plan, focusing on four major business sectors: clean and efficient coal utilization, high-end equipment manufacturing, environmental operation, and green hydrogen engineering technology[26]. - The company is actively planning to establish the Zhejiang Aerospace Environmental Protection Engineering Technology Research Institute to create new economic growth points[29]. - The company is focusing on the development of hydrogen energy technologies, completing the development of key technologies for fuel cell-grade hydrogen purification and filling processes[29]. - The company is committed to promoting clean and efficient coal utilization and developing clean gasification technologies to support national energy security and carbon neutrality goals[35]. - The company is advancing automation and intelligence in gasification equipment, with new generation gasification technology development progressing well[29]. - The company is actively engaging in strategic transformation in emerging industries such as environmental protection and hydrogen energy, aligning with national major projects and industry development trends[35]. Research and Development - The company completed 39 patent applications during the year, with 33 granted, including 9 invention patents (7 of which are international), and received the "Patent Gold Award" from the Petrochemical Federation for its invention patent[29]. - The total R&D investment amounted to RMB 183,837,626.14, accounting for 7.56% of operating revenue[63]. - Research and development expenses rose to CNY 157,880,018.23, a 41.96% increase, reflecting the company's commitment to enhancing core competitiveness and adapting to market changes[50]. - The company has 189 R&D personnel, representing 30.7% of the total workforce[64]. Corporate Governance - The company has maintained independence from its controlling shareholder, ensuring no asset encroachment or harm to minority shareholders' interests[97]. - The company has strengthened its internal control systems and governance structures to enhance operational transparency and compliance with regulatory requirements[94]. - The company has revised its articles of association to optimize its governance framework, which includes 5 major functional areas and 198 business elements[95]. - The total pre-tax remuneration for the board members during the reporting period amounted to CNY 791.99 million[102]. - The company has a structured decision-making process for determining the remuneration of directors and senior management, based on annual performance and operational goals[112]. Environmental Responsibility - The company has established a comprehensive environmental protection management system and regularly monitors its environmental impact[142]. - The company has implemented measures to reduce carbon emissions and promote energy conservation among employees[143]. - The company achieved 100% compliance in wastewater and waste gas emissions, with noise levels also meeting national standards[145]. - The company’s wastewater discharge was approximately 40,700 tons, while the total annual waste gas emissions were about 8.71 million cubic meters[139]. Market Position and Competition - The company faced challenges due to rising raw material prices and a decline in gross profit margin, impacting overall profitability[25]. - The company continues to lead in coal gasification technology, but faces increased competition and declining profitability due to the implementation of dual carbon policies and rising raw material costs[90]. - The company is focusing on enhancing its market competitiveness through strategic partnerships and improved financial management[50]. Shareholder Returns - The company plans to distribute a cash dividend of 0.88 RMB per share, totaling approximately 47,167,120.00 RMB based on a total share capital of 53,599,000 shares as of December 31, 2021[3]. - The company has a policy to distribute at least 20% of its distributable profits as cash dividends, ensuring a return to shareholders[128]. - The company successfully completed a cash dividend distribution of 54.13 million CNY for the 2020 fiscal year, with a per-share distribution of 0.101 CNY[128]. Legal Matters - The company is involved in a significant lawsuit against Luxi Chemical Group, claiming damages of RMB 42 million due to patent infringement[156]. - The company has initiated legal proceedings to recover RMB 69.15 million from Sichuan Gasification Co., which remains unpaid despite a court ruling in favor of the company[158].