Niutech(SH:688309)2022-05-27 16:00Financial Performance - In 2021, the company's operating revenue and net profit declined by over 50% compared to 2020, primarily due to a decrease in operating income and credit impairment losses [4]. - The net profit attributable to shareholders for 2021 was -9,481,804.13 RMB, with the parent company reporting a net profit of -8,662,230.05 RMB [5]. - 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 net 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 total assets at the end of 2021 were CNY 757,586,527.23, a decrease of 3.24% from CNY 782,980,933.69 in 2020 [21]. - The net assets attributable to shareholders were CNY 702,449,975.96, down 1.29% from CNY 711,643,692.31 in 2020 [21]. - The company reported a significant decline in net profit due to decreased operating revenue and impairment losses [23]. - The company achieved operating revenue of 84.57 million yuan, a decrease of 51.56% year-on-year [32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -21.32 million yuan, down 151.23% year-on-year [32]. Operational Challenges - The company faced challenges in 2021 due to the COVID-19 pandemic, which affected new order signings and project execution [23]. - The company faced challenges in 2021 due to the COVID-19 pandemic and delays in project approvals, impacting revenue recognition [32]. - The company emphasizes that the decline in performance is a short-term impact, with no substantial adverse changes in industry policies, market environment, or core competitiveness [4]. - The company has outlined potential risks in its operations, including delisting risks, which investors should be aware of [4]. - The company is experiencing uncertainty in the downstream market application of pyrolysis technology due to factors such as incomplete waste collection systems and policy changes [139][140]. - The ongoing impact of the pandemic continues to pose risks to the company's operational performance and project timelines [152]. 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 and long-term shareholder interests [5]. - The company plans to focus on improving operational efficiency and expanding its market presence in the coming years [23]. - The company aims to integrate technology innovation into areas with urgent market demand, enhancing its core competitiveness [46]. - The company is actively expanding its market presence through online promotion and enhanced customer interaction [32]. - The company aims to enhance its core competitiveness by continuously improving product quality and reducing costs through technological advancements [92]. - The company aims to maintain a strong order backlog to support future revenue growth and operational stability [155]. 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 obtained a total of 14 new patents in 2021, including 1 US patent and 12 domestic utility model patents, bringing the total to 92 patents by the end of the reporting period [43]. - The company has developed several core technologies, including anti-coking technology, which prevents material from forming coking and ensures continuous operation of the pyrolysis equipment [86]. - The company is currently working on 11 R&D projects with a total expected investment of CNY 2,860 million, of which CNY 824.7 million has been invested to date [99]. - The company has expanded its application fields from waste tires and plastics to include oil sludge, organic hazardous waste, and new areas such as tar residue and medical waste [110]. - The company is leading the industry in developing a set of technologies for the harmless treatment and resource utilization of sludge, with a total investment of CNY 200 million planned for this project [99]. Market and Industry Trends - The environmental equipment manufacturing industry is projected to reach a market value of 1.3 trillion yuan by 2025, driven by increased investment and policy support [61]. - The chemical recycling of waste plastics is in its early development stage, with a focus on converting waste plastics into high-value products, which can significantly reduce reliance on petroleum resources [70]. - The company is recognized for its successful application of industrial continuous cracking technology in the treatment of organic hazardous waste, positioning it as a leader in this field [68]. - The company’s waste plastic project has gained recognition from BASF, highlighting its significant role in the chemical recycling of waste plastics [72]. - The company is a pioneer in the application of industrial continuous pyrolysis technology for medical waste, which is expected to enhance the capacity for harmless, reduced, and resourceful treatment of medical waste [78]. Customer and Contract Management - The company's top five customers accounted for 73.64% of total revenue in 2021, down from 91.47% in 2020, indicating a decrease in customer concentration risk [141]. - The total contract amount for the top five customers in 2021 was 17.28 million yuan, with the largest contract being 14.48 million yuan for the Xinjiang project [152]. - The company’s reliance on large contracts with long project cycles poses risks if clients request contract changes or delays [143]. - The company is committed to improving project execution, with completion rates for major projects ranging from 61.79% to 99.73% [153]. Financial Health and Investment - The company has a strong reserve of domestic and international customers, with expectations for new orders in the second, third, and fourth quarters of 2022 [160]. - The company’s investment activities generated a net cash flow of 130,432,037.72 RMB in 2021, a significant increase from -321,722,526.67 RMB in the previous year [162]. - The company plans to continue increasing R&D investment and focus on building its R&D team, optimizing and upgrading core technologies and products [198]. - The company reported a total order backlog of 29,572.75 million RMB, with an expectation that at least 60% of this amount will be recognized as revenue in 2022 [160].