CSD Water Service(SH:603903)2021-03-25 16:00Financial Performance - The net profit attributable to the parent company for 2020 was CNY 137,630,805.46, with the parent company achieving a net profit of CNY 97,490,686.47[5]. - The company's operating revenue for 2020 was approximately ¥1.625 billion, representing a year-over-year increase of 21.56% compared to ¥1.337 billion in 2019[24]. - Net profit attributable to shareholders was approximately ¥137.63 million, up 23.87% from ¥111.11 million in 2019[24]. - The basic earnings per share for 2020 was ¥0.68, reflecting a 23.64% increase from ¥0.55 in 2019[25]. - The weighted average return on equity increased to 14.22%, up 1.39 percentage points from 12.83% in 2019[25]. - The net cash flow from operating activities was approximately ¥319.17 million, a 20.09% increase from ¥265.77 million in 2019[24]. - Total assets at the end of 2020 were approximately ¥3.145 billion, a 7.54% increase from ¥2.924 billion at the end of 2019[24]. - The company reported a significant decrease in cash and cash equivalents, down 45.36% to ¥232.79 million due to reduced net inflow from financing activities[43]. - The company achieved operating revenue of 1.625 billion yuan in 2020, an increase of 21.56% compared to 2019[49]. - The net profit attributable to shareholders was 137 million yuan, representing a growth of 23.87% year-on-year[49]. - The net cash flow from operating activities reached 319 million yuan, up 20.09% from the previous year[60]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.70 per 10 shares, totaling CNY 14,161,262.64 to all shareholders[5]. - The company has reported a distributable profit of CNY 87,741,617.82 after allocating 10% of the net profit to statutory surplus reserves[5]. - In 2020, the company distributed cash dividends of 0.70 RMB per share, with a total profit attributable to shareholders of 14,161,262.64 RMB[123]. - In 2019, the cash dividend was 0.77 RMB per share, with a total profit attributable to shareholders of 11,128,970.16 RMB[123]. - The profit distribution ratio for 2020 was 10.29%, while for 2019 it was 10.02%[123]. - The profit distribution policy emphasizes cash dividends, with a minimum cash distribution of 10% of the distributable profits each year, contingent on the absence of major investment plans[120]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[9]. - The company emphasizes the importance of investor awareness regarding investment risks related to forward-looking statements[6]. - The company has detailed potential risks in its report, which investors are encouraged to pay attention to[9]. - The company has implemented effective environmental risk management measures to enhance emergency response capabilities and ensure compliance with increasing environmental regulations[114]. Business Expansion and Strategy - The company expanded its business into urban environmental governance and high-end environmental technology, enhancing its diversified layout in the environmental protection industry[36]. - The company aims to enhance market share through investments and acquisitions, leveraging the rapid growth of the domestic environmental protection industry[39]. - The company is focusing on industrial park water environment control, driven by stricter regulations and increased demand for wastewater treatment solutions[41]. - The company is actively involved in rural environmental governance, addressing issues such as domestic sewage and waste management to support rural revitalization efforts[38]. - The company has established a business model combining operational services, environmental infrastructure construction, comprehensive environmental governance, and technology product sales to drive growth[39]. Research and Development - The company has accumulated 146 patents, 36 registered trademarks, and 24 software copyrights by the end of the reporting period[53]. - The company is focused on the development of non-carbon source-dependent deep biological nitrogen removal technology, achieving international leading standards[52]. - Research and development expenses increased by 33.36% to 55.73 million RMB, reflecting the company's commitment to innovation[64]. - The company is increasing R&D investments in areas such as water resource recovery and advanced nitrogen and phosphorus removal technologies[108]. Corporate Governance - The company has established a structured internal control management system for engineering projects to ensure quality and safety, with no major safety incidents reported during the period[93]. - The company has a dedicated remuneration and assessment committee to oversee the compensation of directors and senior management[195]. - The board of directors must consider independent directors' opinions when formulating cash dividend proposals, ensuring transparency and accountability in the decision-making process[118]. - The company continues to maintain a strong governance structure with independent directors and a diverse management team[192]. Market Conditions and Trends - The demand for urban sewage treatment facility upgrades is expected to accelerate, supported by national policies aimed at improving sewage collection and treatment infrastructure[41]. - The government is providing strong support for the environmental protection industry, which is expected to drive the development of the wastewater treatment sector[84]. - The company is experiencing increased demand for wastewater treatment services due to urbanization and economic growth, with urban water demand expected to reach approximately 132 billion cubic meters by 2030[83]. - The market-oriented reforms are expected to create a favorable operating environment for the wastewater treatment industry, enhancing competition and innovation[84]. Shareholder Information - The total number of ordinary shareholders increased from 15,559 to 16,943 during the reporting period, representing a growth of approximately 8.9%[170]. - The largest shareholder, Zhongzhi (Beijing) Environmental Development Co., Ltd., holds 49,336,556 shares, accounting for 24.39% of the total shares[172]. - The second-largest shareholder, Ningbo Hangzhou Bay New Area Renbao Yuanwangqi Dike Equity Investment Center, holds 20,672,575 shares, representing 10.22% of the total shares[172]. - The company has commitments from major shareholders regarding share transfer restrictions for a period of 36 months post-IPO[125]. Compliance and Legal Matters - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[198]. - There were no major lawsuits or arbitration matters involving the company during the reporting period[138]. - The company has not reported any changes in the actual controller through trusts or other asset management methods[180]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 1,276, with 536 in the parent company and 740 in subsidiaries[199]. - The company employs 701 production personnel, 60 sales personnel, 201 technical personnel, 45 financial personnel, and 269 administrative personnel[199]. - The company has established a series of salary levels and models to attract and retain talent, ensuring internal fairness and external competitiveness in its compensation system[200]. - The company’s management team has extensive experience in environmental management and finance, enhancing its operational capabilities[191].