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 reached RMB 1,004,559,208.33, marking 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 independent directors have expressed clear agreement with the profit distribution plan, which is subject to approval at the annual shareholders' meeting[6]. - The company has not proposed any stock dividends or capital reserve transfers for the year[6]. - 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]. - Research and development expenses amounted to CNY 15.95 million, representing 4.18% of operating revenue, with 31 patents applied for during the reporting period[45]. - 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]. - 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]. - During the reporting period, the company applied for and was granted 31 new patents, including 3 invention patents and 28 utility model patents[85]. Risk Management - The company has detailed potential risks in its annual report, emphasizing the importance of risk awareness for investors[4]. - The company has a comprehensive risk statement regarding forward-looking statements, cautioning investors about potential uncertainties[7]. - 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 to enhance sustainability[109]. - The company is actively monitoring industry policies and competition, adapting its strategies to mitigate risks from potential changes in the regulatory environment and increasing competition[112][113]. Corporate Governance - The company has a structured governance framework in place, ensuring accountability and transparency in its operations[8]. - The company has established a robust corporate governance structure, holding three shareholder meetings in 2021 to ensure compliance with legal and regulatory requirements[164]. - The board of directors convened eight meetings in 2021, ensuring effective decision-making and adherence to governance protocols[164]. - The company has implemented a management system for insider information, ensuring confidentiality and compliance with disclosure regulations[167]. - The company is committed to investor relations management, enhancing communication with shareholders and addressing their concerns[166]. Market Expansion and Strategy - The company is focusing on the resource utilization of organic and inorganic high-water-content waste, particularly through the transformation of organic waste into feed products[153]. - The company plans to expand its business through mergers and acquisitions in the solid waste treatment sector, enhancing its capabilities in both organic and inorganic waste processing[154]. - The company is deepening cooperation with major liquor enterprises to secure long-term supply agreements, thereby increasing its market share in wine lees acquisition[159]. - The company is exploring partnerships with local firms to strengthen its supply chain and reduce costs by 15%[181]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[182]. Environmental and Technological Innovations - The company has developed a core technology system for sludge dewatering and solidification, which includes 9 invention patents and 55 utility model patents[18]. - The company’s insect protein feed production, initiated in September 2021, utilizes insect and microbial degradation technology to convert organic waste into high-value insect protein feed[56]. - The company has developed synthetic soil from dewatered sludge, meeting the standards for greening planting soil as per CJ/T 340-2016[82]. - The company has implemented a high-efficiency thermal drying process for sludge, allowing for energy recovery during combustion in power plant boilers[82]. - The company’s innovative technologies enhance the efficiency of solid-liquid separation and organic matter degradation, contributing to sustainable waste management solutions[82].