SZHL(SZ:002255)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥2.025 billion, a decrease of 1.68% compared to ¥2.060 billion in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately ¥790 million, representing a significant increase of 142.83% from a loss of ¥1.844 billion in 2019[16]. - Basic earnings per share for 2020 were ¥0.9379, compared to a loss of ¥2.1899 per share in 2019, marking a turnaround[16]. - The company reported a total of approximately 581.88 million in non-recurring gains and losses for 2020, a significant increase from the previous year's loss of approximately 294.44 million[22]. - The company achieved a net profit of 30,268,803.78 yuan for the year 2020, representing a 2.00% contribution to the total net profit[99]. - In 2020, the company achieved operating revenue of 2.025 billion yuan and a net profit attributable to shareholders of 790 million yuan, with a net profit of 208 million yuan after deducting non-recurring gains and losses[101]. Cash Flow and Investments - The net cash flow from operating activities improved to approximately ¥380 million, a 323.98% increase from a negative cash flow of ¥170 million in 2019[16]. - The company reported a net cash flow from operating activities of 379,974,331.94 yuan, a significant increase of 323.98% compared to the previous year[78]. - The company generated a net cash inflow from investment activities of 136,421,423.96 yuan, a 249.66% increase year-on-year[78]. - The company’s financing activities resulted in a net cash outflow of 465,129,891.72 yuan, an increase of 167.68% compared to the previous year[79]. Assets and Liabilities - The total assets at the end of 2020 were approximately ¥5.032 billion, reflecting a 2.50% increase from ¥4.909 billion at the end of 2019[18]. - The net assets attributable to shareholders increased by 50.69% to approximately ¥2.851 billion, up from ¥1.892 billion in 2019[18]. - The company’s total assets included cash and cash equivalents of 468,747,400.01 yuan, which accounted for 9.32% of total assets[83]. - Short-term loans decreased by 13.70% to approximately ¥684.54 million due to repayment and disposal of Jiangnan Integration[84]. - Long-term loans decreased by 1.99% to approximately ¥99.60 million, primarily due to partial repayment[84]. Business Operations and Strategy - The company has undergone significant business restructuring, focusing on industrial waste heat boilers, environmental management services, and photovoltaic power station operations[16]. - The company aims to enhance its technological innovation in the waste heat utilization sector, focusing on high-end products to improve profitability[28]. - The company is actively expanding its product offerings and market presence in the environmental governance services sector, including solid waste and wastewater treatment[25]. - The company is transitioning from a single processing manufacturer to a self-contracting business model to ensure stable future performance[35]. - The company is actively pursuing mergers and acquisitions to expand its operational scope, including the acquisition of 100% equity in two companies related to photovoltaic power and agricultural technology[69]. Market and Industry Trends - The environmental protection equipment manufacturing industry is expected to see increased concentration, with government support for leading enterprises[27]. - The demand for energy-saving and environmental protection solutions remains strong due to regulatory pressures and pollution issues[27]. - The pressure vessel industry in China has seen a compound annual growth rate of 5.35%, increasing from 3.2279 million units in 2014 to 4.1912 million units in 2019[29]. - The nuclear power industry is expected to see a steady increase in installed capacity, with projections of reaching 70 million kW by 2025[33]. - The national garbage incineration capacity reached 591,400 tons per day by 2020, accounting for 54% of the harmless treatment capacity, indicating significant growth potential compared to developed countries with a 75% incineration rate[37]. Research and Development - Research and development expenses increased by 39.80% to 118,310,231.73 yuan, representing 5.84% of operating revenue[77]. - The company is actively engaged in the research and development of new energy vehicles and related technologies[100]. - New product development efforts are focused on innovative technologies, with an investment of 50 million RMB allocated for R&D in the upcoming year[116]. Regulatory and Compliance - The company has faced regulatory scrutiny, with chairman Xu Yuansheng and financial officer Wang Shenshen receiving public reprimands from the Shenzhen Stock Exchange on September 14, 2020[192]. - The company received a public reprimand from the Shenzhen Stock Exchange for inaccurate performance forecasts and prior accounting errors[130]. - The company has a pending arbitration case with Jiangsu Metallurgical Design Institute for CNY 7.55 million, which is currently in execution proceedings[128]. Shareholder and Governance - The company has a total of 42,515 shareholders as of the end of the reporting period[174]. - The company has appointed several independent directors to enhance governance and oversight[191]. - The total remuneration for the chairman and general manager Xu Yuansheng is 68.57 million CNY[194]. - The company has a focus on aligning remuneration with risk and responsibility, ensuring that compensation reflects the roles of its executives[193]. Environmental Responsibility - The company is actively involved in environmental protection, ensuring that all emissions meet national standards and has not faced any major environmental pollution incidents[158]. - The company has a planned project for high-concentration wastewater pretreatment, which has passed environmental impact assessment and is awaiting completion acceptance[159].