ZEHO ECO(SH:605069)2023-04-26 16:00Financial Performance - The net profit attributable to shareholders of the company for 2022 was negative, leading to no cash dividends, bonus shares, or capital reserve transfers to share capital [6]. - The company received a qualified audit opinion from Lixin Certified Public Accountants for its 2022 financial statements [5]. - The company's operating revenue for 2022 was approximately ¥349.51 million, a decrease of 69.19% compared to ¥1,134.39 million in 2021 [24]. - The net profit attributable to shareholders was approximately -¥339.13 million in 2022, a decline of 414.85% from ¥107.71 million in 2021 [24]. - The basic earnings per share for 2022 was -¥1.60, down 362.30% from ¥0.58 in 2021 [25]. - The weighted average return on equity for 2022 was -20.32%, a decrease of 27.78 percentage points from 7.46% in 2021 [25]. - The total assets at the end of 2022 were approximately ¥4.22 billion, a decrease of 6.49% from ¥4.51 billion at the end of 2021 [24]. - The net assets attributable to shareholders decreased by 20.10% to approximately ¥1.48 billion at the end of 2022, down from ¥1.85 billion at the end of 2021 [24]. - The cash flow from operating activities for 2022 was -¥179.53 million, an improvement from -¥499.65 million in 2021 [24]. - The company reported a significant increase in credit impairment losses, which rose by 92.19% year-on-year [82]. Business Strategy and Operations - The company is shifting its focus from the North China region to the East and South China regions, particularly targeting first-tier cities and high-quality urban clusters [40]. - The company has expanded its business to include marine ecological restoration, in addition to its existing river and lake ecological restoration services, winning several key projects [39]. - The company is transitioning from a single engineering design and construction model to a full industry chain service model, including property management and park operation services [41]. - The company has signed strategic cooperation agreements with research institutions to enhance its product system and technology capabilities in ecological restoration and environmental protection [43]. - The company is implementing measures to ensure timely project delivery and improve accounts receivable recovery, including establishing special teams for effective payment collection [45]. - The company has developed six major product systems, including "Carbon Neutral Technology Demonstration Zone" and "Lake and River Ecosystem Construction," to improve profitability and manage risks [47]. - The company has expanded its business into three new areas: coastal nearshore governance, ecological stewardship, and the "Kingdom of Life" theme park [67]. - The company is focusing on marine ecological restoration under the NbS concept, integrating multiple disciplines to address coastal ecological issues [68]. - The company has established a comprehensive internal control system to ensure the accuracy and completeness of financial information, with no significant deficiencies found in internal control design or execution, except for credit risk management [131]. Market and Competitive Landscape - The company faced significant challenges in 2022 due to external economic pressures and a volatile policy environment affecting the industry [34]. - The ecological protection industry in China experienced a slowdown in overall revenue growth in 2022, with increased losses and accounts receivable issues, yet companies remain optimistic about future development [51]. - The company faces intensified market competition due to increased participation from large state-owned enterprises in the ecological protection and environmental governance sector, which may adversely affect its market share and operating performance [121]. - The company has maintained a stable governance structure with no significant changes in the board composition during the reporting period [138]. Research and Development - In 2023, the company plans to strengthen product research and development and continue technological innovation, adding 11 new research projects to enhance its competitive edge [44]. - The total R&D expenditure for the period was CNY 38,508,544.98, accounting for 11.02% of the operating revenue [98]. - The company has obtained 15 invention patents, 63 utility model patents, and 47 software copyrights, showcasing its technological advancements in ecological protection and environmental governance [78]. Corporate Governance - The company has a complete and effective corporate governance structure, with separate operational and office facilities from its controlling shareholders [135]. - The company has established a remuneration policy linking salaries to positions and performance, with quarterly and annual assessments [162]. - The company has actively engaged with investors through multiple earnings calls to discuss financial performance, operational status, and governance issues [129]. - The company has not faced any penalties from securities regulatory authorities in the past three years [152]. Environmental and Social Responsibility - The company invested 12.3663 million yuan in environmental protection and governance projects during the reporting period [176]. - The company successfully restored 29.8 kilometers of coastline and 6.2 square kilometers of marine area as part of the "Blue Bay" ecological restoration demonstration zone [179]. - The ecological restoration efforts have improved the quality of life for approximately 770,000 residents and created around 6,000 job opportunities in the region [187]. - The company launched the "Life Kingdom" nature park product at the COP15 conference, emphasizing its commitment to biodiversity protection [193]. Future Outlook - The company provided guidance for 2023, expecting revenue to grow by 10% to $1.65 billion [142]. - Future guidance indicates a positive outlook for revenue growth, driven by new product launches and market expansion strategies [140]. - The company plans to enhance its profitability by improving project management and accelerating the collection of accounts receivable, targeting a reduction in bad debt losses [118].