Delinhai(SH:688069)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was CNY 491.46 million, a slight increase of 0.02% compared to CNY 491.39 million in 2020[20]. - The net profit attributable to shareholders decreased by 43.56% to CNY 108.80 million from CNY 192.78 million in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 91.87 million, down 49.61% from CNY 182.31 million in 2020[20]. - The company's total assets increased by 12.10% to CNY 1.84 billion at the end of 2021, compared to CNY 1.64 billion at the end of 2020[20]. - The company's net assets attributable to shareholders increased by 5.20% year-on-year, reaching 1.49 billion RMB[36]. - The company experienced negative cash flow from operating activities of CNY -92.32 million, compared to CNY -91.04 million in 2020[20]. - The company's revenue from ecological protection and environmental management reached ¥488,469,134.72, with a gross margin of 46.39%, reflecting a decrease of 11.84 percentage points year-over-year[112]. - Revenue from blue-green algae treatment technology integration was ¥327,783,955.22, showing a year-over-year increase of 5.48%, while the gross margin decreased by 6.54 percentage points to 45.23%[112]. - Revenue from blue-green algae operation and maintenance services increased by 26.52% year-over-year to ¥102,274,179.50, with a gross margin of 38.64%, down by 12.15 percentage points[112]. - Governance service revenue fell by 40.00% year-over-year to ¥58,411,000.00, with a gross margin of 66.47%[112]. Research and Development - Research and development expenses accounted for 6.39% of operating revenue, an increase of 1.51 percentage points from 4.88% in 2020[21]. - The total R&D investment for the year was CNY 31.40 million, representing a growth of 30.94% year-on-year[24]. - The company obtained a total of 7 new patents in 2021, including 1 invention patent and 6 utility model patents, bringing the total number of patents to 65[67]. - The company is actively developing "trap-type" flexible dredging technology to address the issue of nutrient release from sediment in water bodies[71]. - The company has made breakthroughs in pressure control algae technology, integrating it into various equipment for effective blue-green algae control, which combines pressure inactivation and in-situ algae control[62]. - The company is focusing on the resource utilization of dredged sediment, researching suitable extraction methods and equipment integration[82]. - The company has established a grid division standard system for water quality monitoring, achieving a target of 2,780,000 units in grid division and 5,636,697.46 units in water quality data processing[80]. Operational Strategy - The company has established a comprehensive and effective mainstream technology route for blue-green algae management, addressing both emergency response and preventive measures[62]. - The company is exploring the commercial application of its new technologies and is upgrading its integrated equipment for internal source governance of eutrophic waters[64]. - The company aims to maintain and expand its technological leadership in the field of blue-green algae pollution control and resource utilization[66]. - The company has established a scalable public facility platform for algae governance in major freshwater lakes, enhancing its platform effect and creating barriers for new competitors[97]. - The company aims to optimize its organizational structure and enhance project assessment methods to consolidate its market advantages, with a focus on improving accounts receivable management and accelerating cash flow[155]. Market Position and Competition - The company has established a dominant position in blue algae treatment technology, focusing on emergency response and prevention methods that effectively control blue algae growth in large water bodies[92]. - The company has developed advanced environmental technology equipment, achieving over 95% algae removal rate for eutrophic water and up to 99.99% for high-concentration algae slurry[93]. - The company is the only specialized algae governance enterprise successfully implementing large-scale emergency response and prevention in major lakes, with over 30 algae water separation stations across the country[94]. - The company has a dominant position in the algae governance industry, having pioneered the concept of algae water separation stations since 2007, leading to substantial project implementations[95]. Risk Management - The company has detailed various operational risks and corresponding countermeasures in the report[4]. - The company has a comprehensive risk statement regarding forward-looking statements in the report[6]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity, accuracy, and completeness of the annual report[7]. Corporate Governance - The company held its annual shareholder meeting on May 26, 2021, where all proposed resolutions were approved without any rejections[168]. - The company has established specialized committees under the board, including the audit committee and the remuneration and assessment committee[185]. - The company disclosed the changes in senior management and their reasons in its announcements on the Shanghai Stock Exchange[176]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 6.6487 million RMB, excluding the remuneration for newly appointed Vice General Manager Xu Jinjian and Financial Responsible Person Ji Lehua[179]. Future Outlook - The company plans to increase R&D investment and strengthen the promotion and application of key core technologies, particularly in deep lake governance[153]. - The company aims to expand its services from emergency response in large lakes to comprehensive governance solutions for smaller lakes, addressing water quality improvement and eutrophication[96]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[174]. - The company provided a positive outlook, projecting a revenue growth of 20% for the next quarter[174].