Delinhai(SH:688069)2022-04-28 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[22]. - The net profit attributable to shareholders for 2021 was CNY 108.80 million, representing a decrease of 43.56% from CNY 192.78 million in 2020[22]. - The net profit after deducting non-recurring gains and losses was CNY 91.87 million, down 49.61% from CNY 182.31 million in the previous year[22]. - 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[22]. - The basic earnings per share for 2021 was CNY 1.83, a decline of 51.84% from CNY 3.80 in 2020[23]. - The weighted average return on equity decreased by 16.87 percentage points to 7.54% in 2021 from 24.41% in 2020[23]. - The company's net profit attributable to shareholders for 2021 was 10,880.08 million RMB, a decrease of 43.56% year-on-year[38]. - The company's operating costs rose to CNY 264.01 million, reflecting a year-on-year increase of 28.31%[109]. - The net cash flow from operating activities was negative at CNY -92.32 million, showing a slight deterioration compared to the previous year's CNY -91.04 million[109]. Research and Development - Research and development expenses accounted for 6.39% of operating revenue in 2021, up from 4.88% in 2020[23]. - The company invested CNY 31.40 million in R&D in 2021, a 30.94% increase from the previous year[26]. - The company's total R&D investment increased by 30.94% year-on-year, reaching ¥31,399,016.45 in 2021, compared to ¥23,978,888.69 in the previous year[71]. - 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[69]. - The company has developed key technologies for blue-green algae management, including integrated secondary enhanced flotation technology and high-efficiency adjustable vortex well algae collection technology, achieving breakthroughs in processing efficiency and water quality improvement[63]. - The company is actively pursuing research on internal source governance technology for eutrophic waters, focusing on flexible dredging technology to address sediment pollution as a major source of water eutrophication[65]. - The company has established a dominant position in the domestic market for emergency response and control of blue-green algae outbreaks through its innovative technologies[94]. Market and Business Strategy - The company aims to transition from a blue algae governance service provider to a comprehensive service provider for lake eutrophication management[37]. - The company is focusing on innovative R&D for "internal source governance" in lake eutrophication management as part of its "Big Lake Clean" strategy[25]. - The company aims to enhance its profitability by focusing on innovative business models in lake ecological management and expanding its service offerings in the industry[153]. - The company plans to develop a comprehensive service model for lake management, emphasizing environmental performance as a payment basis and exploring new business models[153]. - The company plans to accelerate the establishment of the Lake Ecological Hospital ecosystem, focusing on blue algae pollution control and setting up five functional bodies, including a blue algae big data center and a technology integration center[154]. - The company is actively working on commercializing various algae control technologies to create a closed-loop system for prevention and resource utilization[99]. Governance and Compliance - The company has confirmed that all board members attended the board meeting, ensuring governance compliance[5]. - The company has not encountered any violations in decision-making procedures regarding external guarantees[9]. - The company emphasizes that forward-looking statements in the report do not constitute actual commitments to investors[8]. - The board of directors consists of 7 members, including 3 independent directors, ensuring effective oversight and decision-making processes[165]. - The company has established robust information disclosure and investor relations management systems to ensure timely and accurate communication with investors[166]. - The company held its annual shareholder meeting on May 26, 2021, where all proposed resolutions were approved without any rejections[168]. Operational Challenges - The company faced increased bad debt provisions, totaling CNY 50.37 million in 2021, a 249.05% increase compared to the previous year[24]. - The company anticipates potential seasonal fluctuations in revenue, with most income recognized in the second half of the year due to project timelines[102]. - There is a risk of declining gross margins as the company may implement pricing strategies to enhance market competitiveness[102]. - The company faces accounts receivable collection risks, particularly from government clients, which may delay cash inflows[103]. - The financial environment remains uncertain due to the impacts of the COVID-19 pandemic, which may affect future business expansion and cash flow recovery[106]. Revenue and Profit Distribution - The company plans to distribute a cash dividend of 5.60 RMB per 10 shares, totaling approximately 33,303,200 RMB (including tax), which represents 30.61% of the net profit attributable to shareholders for 2021[5]. - The company maintains a cash dividend policy, ensuring that at least 10% of the distributable profits are distributed in cash annually, provided certain conditions are met[200]. - The company's profit distribution policy emphasizes continuity and stability, considering the long-term interests of shareholders[199]. Human Resources and Compensation - The company employed a total of 468 staff members, with 78 in the parent company and 390 in major subsidiaries[193]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 6.6487 million yuan, excluding the remuneration of newly appointed executives[181]. - The total remuneration for core technical personnel at the end of the reporting period was 3.9158 million yuan[181]. - The company has established a competitive and performance-oriented compensation system, implementing a restricted stock incentive plan in 2021[194]. - The company plans to focus on talent development, particularly for young professionals, to enhance its technical and market capabilities[160].