Niutech(SH:688309)2022-04-26 16:00Financial Performance - In 2021, the company reported a net profit attributable to shareholders of -9,481,804.13 RMB, indicating a significant decline compared to the previous year[5]. - The company's operating revenue and net profit decreased by over 50% compared to 2020, primarily due to revenue decline and impairment losses[4]. - The company's operating revenue for 2021 was CNY 84,565,948.21, a decrease of 51.56% compared to CNY 174,589,275.59 in 2020[20]. - The net profit attributable to shareholders was CNY -9,481,804.13, representing a decline of 120.63% from CNY 45,971,969.20 in the previous year[20]. - The basic earnings per share for 2021 was CNY -0.1185, down 117.62% from CNY 0.6727 in 2020[22]. - The company's cash flow from operating activities was CNY -5,756,743.86, an improvement of CNY 24,743,200.71 compared to CNY -30,499,962.57 in 2020[21]. - The weighted average return on equity decreased to -1.34% in 2021 from 10.59% in 2020, a drop of 11.93 percentage points[22]. - The company reported a significant decline in new orders due to the pandemic and changes in potential customers' situations[23]. - The company's revenue declined in 2021 due to a decrease in new orders and credit impairment losses totaling approximately 29.6 million, impacting net profit[101][102]. Operational Challenges - The company faced delays in project execution due to government approvals and the impact of the COVID-19 pandemic, affecting revenue recognition[23]. - The company faced challenges due to the COVID-19 pandemic and delays in project approvals, impacting revenue recognition[32]. - The company has outlined potential risks in its operations, including delisting risks, which investors should be aware of[4]. - The company has a significant risk of delisting, as it may trigger warnings if the net profit is negative and revenue is below 100 million yuan for the recent fiscal year[106]. - The company’s projects are subject to delays or cancellations due to various factors, which could adversely impact its operational performance and financial results[115]. Strategic Focus and Future Plans - The company plans not to distribute profits or increase capital reserves for the 2021 fiscal year, focusing on maintaining stable operations[5]. - The company does not foresee any major changes in its business fundamentals due to current industry policies and market conditions[4]. - The company's future plans and strategic developments are subject to investment risks and do not constitute a commitment to investors[6]. - The company is actively exploring new business models and analyzing industry chain development trends to strengthen its market position[31]. - The company aims to enhance its market presence by exploring new business models, including equity participation in new operating companies and BOO models[52]. Research and Development - Research and development expenses accounted for 9.75% of operating revenue, an increase of 3.78 percentage points from 5.97% in 2020[22]. - The company is focusing on the research and development of organic waste pyrolysis technology and related equipment design, production, and sales[44]. - The company has successfully entered multiple international markets, including Germany, Hungary, and Brazil, and has established projects recognized as provincial key projects in China[75]. - The company has developed a complete industrial continuous pyrolysis system that addresses key technical challenges such as heat supply temperature and dynamic sealing of input and output materials[76]. - The company is currently working on over ten R&D projects, with a total investment of 2,860 million RMB planned for these projects[90]. Market Environment and Industry Trends - There are no significant risks of industry overcapacity or continuous decline in the company's sector, ensuring a stable market environment[4]. - The environmental equipment manufacturing industry is expected to reach a market value of 1.3 trillion yuan by 2025, driven by increased environmental protection investments and technological advancements[55]. - The hazardous waste treatment sector is seeing an increase in the use of pyrolysis technology, which is pollution-friendly and adaptable to various materials, with a significant growth potential in the market[62]. - The chemical recycling of waste plastics is in its early stages, with a commitment of $1.5 billion (approximately 10.3 billion RMB) from industry players to develop solutions for plastic pollution[63]. - The government has introduced a 90% tax rebate for the recycling of waste plastics and composite materials, encouraging the development of chemical recycling technologies[64]. Governance and Compliance - The company has established a governance structure that includes a board of directors, supervisory board, and management team, ensuring effective operation[159]. - The company has not faced any issues regarding independence from its controlling shareholders or related parties[159]. - The company has implemented various internal control systems to manage related transactions and external guarantees[159]. - The company has maintained a stable shareholding structure with no changes in the number of shares held by directors during the reporting period[166]. - The company has established a comprehensive internal control system that complies with regulations and effectively mitigates major operational risks[194]. Social Responsibility and ESG - The company actively integrates ESG management into its corporate culture, emphasizing environmental protection and social responsibility[197]. - The company participated in social welfare activities, donating 100,000 yuan to support charity initiatives in December 2021[198]. - The company engaged in consumption assistance activities, purchasing over 30,000 yuan worth of products from a poverty-stricken area to support local economic development[198].