Road Environment(SH:688156)2022-04-20 16:00Financial Performance - The company's operating revenue for 2021 was RMB 382,000,137.03, representing a 52.56% increase compared to RMB 250,399,501.97 in 2020[20]. - The net profit attributable to shareholders for 2021 was RMB 75,539,102.26, up 58.23% from RMB 47,740,797.49 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 65,218,599.61, reflecting a 73.53% increase from RMB 37,584,273.43 in 2020[20]. - The net cash flow from operating activities for 2021 was RMB 44,812,668.69, a significant increase of 90.46% compared to RMB 23,528,354.56 in 2020[20]. - As of the end of 2021, the net assets attributable to shareholders were RMB 770,076,330.47, an 8.78% increase from RMB 707,906,229.13 at the end of 2020[20]. - The total assets at the end of 2021 amounted to RMB 1,004,559,208.33, which is a 14.31% increase from RMB 878,794,589.11 at the end of 2020[20]. - Basic and diluted earnings per share rose to 0.82 RMB, reflecting a year-on-year increase of 28.13%[21]. - The company's gross profit margin for 2021 was 37.52%, a decrease of 7.59% year-on-year, attributed to temporary facility amortization and equipment depreciation costs incurred during the pandemic[122]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 27,552,000.00 (including tax) based on a total share capital of 91,840,000 shares as of December 31, 2021, resulting in a cash dividend payout ratio of 36.47%[6]. - The company has a cash dividend policy in place to ensure sustainable returns to investors, as outlined in its three-year shareholder return plan[200]. - In 2020, the company distributed cash dividends of RMB 2.0 per 10 shares, totaling RMB 18.368 million[200]. Research and Development - The company's R&D expenditure accounted for 4.18% of operating revenue, a decrease of 0.28 percentage points from the previous year[22]. - The company increased its R&D investment by 42.80% in 2021, totaling ¥15,949,008.29, compared to ¥11,169,090.59 in the previous year[88]. - Research and development expenses increased by 20%, totaling $100 million, to support new technology initiatives[181]. - The company has developed a core technology system for sludge dewatering and solidification, which includes 9 invention patents and 55 utility model patents[12]. - The company holds a total of 99 patents, including 16 invention patents and 81 utility model patents, as of the end of the reporting period[85]. Market Expansion and Strategy - The company has a strategic focus on expanding its market presence and enhancing its technological capabilities in environmental management[11]. - The company plans to continue expanding its business in sludge treatment and functional feed products in line with national policies[22]. - The company is focusing on expanding its market presence through direct sales and distributor partnerships, enhancing its operational efficiency in the sludge treatment sector[60]. - The company is exploring trade pathways for insect protein feed to expand its revenue and achieve economies of scale in the short term[160]. - The company plans to invest 300 million RMB in R&D over the next two years to further enhance its technological edge[175]. Risk Management - The company has detailed potential risks in its annual report, emphasizing the importance of risk awareness for investors[4]. - The company is exposed to risks related to raw material price fluctuations, which could impact profitability, and plans to adjust procurement policies accordingly[108]. - The company faces risks from concentrated market regions, particularly in the Yangtze River Delta, and aims to diversify its resource utilization projects[109]. - The company is aware of potential industry policy changes that could affect its market environment and is committed to adapting its strategies accordingly[112]. Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and has held three shareholder meetings in 2021[163]. - The board of directors convened eight meetings in 2021, adhering to governance rules and ensuring effective decision-making processes[164]. - The company has implemented a comprehensive information disclosure management system to ensure transparency and protect the rights of minority shareholders[166]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making or operations[166]. Environmental Focus - The company is focused on environmental technology, particularly in the treatment of high-water-content waste materials, which includes river and lake sludge, engineering mud, and organic residues[11]. - The company aims to achieve a reduction in waste and promote harmless and stable resource utilization through its innovative technologies[12]. - The company is strategically positioned to benefit from supportive environmental policies and regulations, which are expected to drive rapid growth in the sludge treatment industry[75]. - The company is leveraging advanced fermentation technologies to convert liquor lees into high-value biological feed, contributing to a circular economy and reducing reliance on traditional feed sources[66]. Operational Efficiency - The company has established several subsidiaries to enhance its operational capabilities and market reach[11]. - The company has implemented cost control measures by using self-developed materials and direct procurement strategies, which help reduce purchasing costs[103]. - The company is actively enhancing its talent pool by recruiting high-end professionals in animal nutrition and biological fermentation[46]. - The company has established long-term supply agreements with major liquor enterprises, securing a stable source of high-water-content organic waste, particularly from liquor production[101].