JDL(SH:688057)2022-03-25 16:00Financial Performance - The company's operating revenue for 2021 was CNY 912.60 million, a decrease of 6.00% compared to CNY 970.88 million in 2020[23]. - The net profit attributable to shareholders for 2021 was CNY 383.04 million, down 0.94% from CNY 386.69 million in 2020[23]. - The basic earnings per share for 2021 was CNY 1.39, a decrease of 23.65% from CNY 1.82 in 2020[24]. - The company's gross profit margin has remained stable at 60% to 70% over recent years, reflecting its focus on high-value and high-margin service areas[35]. - The company's main business revenue reached ¥910,438,852.53, a year-on-year decrease of 6.01%[111]. - The water environment overall solution revenue was ¥336,811,741.40, down 27.76% due to project delays caused by the pandemic[112]. - Revenue from water pollution control equipment increased by 4.18% to ¥315,165,981.30, attributed to the completion of several projects[112]. - The water pollution control project operations revenue rose by 25.48% to ¥223,445,144.68, driven by an increase in operational projects[112]. - Other business revenue surged by 60.04% to ¥35,015,985.15, mainly due to increased maintenance and design fees[112]. - The company's operating cost for the reporting period was CNY 316,501,370.85, down 5.24% year-on-year, primarily due to the slowdown in the progress of water environment solutions projects[108]. Dividend Policy - The company plans to distribute cash dividends of RMB 10.00 per 10 shares, totaling approximately RMB 276 million, which accounts for 72.05% of the net profit attributable to shareholders for 2021[5]. - The company has established a cash dividend policy that stipulates a minimum annual cash dividend of 10% of the distributable profit, with a cumulative distribution of at least 30% of the average annual distributable profit over the last three years[178]. - The company has not proposed any stock dividends or capital reserve transfers during the reporting period[179]. Research and Development - Research and development expenses accounted for 5.84% of operating revenue in 2021, an increase of 0.38 percentage points from 5.46% in 2020[24]. - The total R&D investment for the year was approximately ¥53.30 million, representing a 0.60% increase compared to the previous year, with R&D expenses accounting for 5.84% of total revenue[81]. - The company has developed 20 ongoing research projects and added 5 new patents during the reporting period, bringing the total to 106 authorized patents, including 62 invention patents[36]. - The company is focusing on enhancing its R&D capabilities and expand its R&D center to optimize core processes and improve environmental benefits[141]. - The company plans to promote a distributed water treatment model and expand its market presence in municipal wastewater treatment and black-odor water governance[141]. Technology and Innovation - The company has developed the FMBR technology for organic wastewater treatment, significantly improving effluent quality while minimizing sludge production[12]. - The company's FMBR technology offers significant advantages, including reduced organic sludge, lower operational costs, and high integration, leading to stable effluent quality and lower comprehensive costs[57]. - The FMBR process allows for simultaneous removal of carbon, nitrogen, and phosphorus pollutants, significantly improving effluent quality and reducing sludge production[70]. - The company has developed a PLC intelligent control system that automates the operation of the FMBR system, achieving unattended operation and precise control of various parameters[74]. - The company is focusing on technological advancements and core competencies to enhance its competitive edge in the market[155]. Market Position and Strategy - The company is positioned in a rapidly growing water environment governance market, with significant government support and increasing regulatory requirements for pollution control[54]. - The company has become a leading provider in the rural sewage treatment market in China, with a significant market share in the sector[58]. - The company is actively exploring overseas markets, particularly in regions like the United States, to seek new growth opportunities despite current project delays due to the pandemic[38]. - The company aims to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[157]. - The company is committed to improving internal controls and governance levels, optimizing internal management teams to enhance decision-making efficiency[145]. Environmental Compliance and Sustainability - The company has established a comprehensive environmental management system, including regulations and emergency response plans, ensuring compliance with environmental laws[195]. - The company actively promotes resource conservation and energy efficiency, utilizing high-efficiency equipment to reduce unnecessary consumption of electricity and water[196]. - The company has not faced any administrative penalties related to environmental issues during the reporting period, demonstrating adherence to environmental regulations[191]. - The company’s wastewater treatment processes allow for the recycling of treated water for irrigation and ecological restoration, contributing to sustainable development[200]. - The company has received recognition as an advanced collective in ecological civilization construction from the Jiangxi provincial government[198]. Governance and Management - The company has established a scientific governance structure and has been improving various operational rules to ensure orderly daily operations[148]. - The company’s board and supervisory committees have played a positive role in protecting minority investors' interests and ensuring scientific decision-making[148]. - The company has implemented a robust internal control system, with no significant deficiencies reported during the reporting period[183]. - The company has established specialized committees under the board, including the audit committee, nomination committee, compensation and assessment committee, and strategic committee[167]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to CNY 1,099.74 million[161]. Risks and Challenges - The company faces risks related to the malicious imitation of its proprietary technologies, which could adversely affect its market position and operational stability[98]. - The company is exposed to risks from changes in environmental policies that could impact government investment in water treatment projects[102]. - The company continues to face risks related to the promotion of its FMBR technology, as traditional methods remain preferred by clients[99]. - The company has implemented measures to manage accounts receivable effectively, but remains vulnerable to potential delays in payments from government clients[101]. - The company is actively seeking to expand its customer base and markets to mitigate risks associated with a rapidly changing client demographic[100].