Orient Landscape(SZ:002310)2022-04-26 16:00markdown [Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice,%20Table%20of%20Contents,%20and%20Definitions) This section outlines key disclaimers, the report's structure, and essential terminology - Company directors Jiang Jianming, He Lan, and supervisor He Qiaoling abstained from voting on this annual report, citing the company's failure to timely provide meeting materials, which prevented them from verifying the report's truthfulness, accuracy, and completeness[4](index=4&type=chunk)[5](index=5&type=chunk) - The company's 2021 profit distribution plan proposes no cash dividends, no bonus shares, and no capitalization of reserves[7](index=7&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company and its key financial performance metrics [Company Basic Information](index=8&type=section&id=I.%20Company%20Information) Beijing Orient Landscape and Environment Co Ltd (stock code: 002310) is a company listed on the Shenzhen Stock Exchange, with its controlling shareholder changing to Beijing Chaohuixin Enterprise Management Co Ltd and actual controller to Beijing Chaoyang District State-owned Assets Supervision and Administration Commission in 2019 - The company's controlling shareholder is Beijing Chaohuixin Enterprise Management Co Ltd (Chaohuixin), with the actual controller being Beijing Chaoyang District SASAC. This change was completed in 2019, and Chaohuixin and its concerted parties collectively hold **26.80% of voting rights**[24](index=24&type=chunk) [Key Accounting Data and Financial Indicators](index=9&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2021, revenue grew **20.18%**, but net profit was a significant loss, while operating cash flow turned positive Key Accounting Data and Financial Indicators Data | Indicator | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (yuan)** | 10,486,627,571.98 | 8,725,535,437.62 | 20.18% | | **Net Profit Attributable to Shareholders (yuan)** | -1,158,373,779.68 | -492,260,346.93 | -135.32% | | **Net Cash Flow from Operating Activities (yuan)** | 754,543,825.83 | -746,222,484.42 | 201.12% | | **Basic Earnings Per Share (yuan/share)** | -0.43 | -0.18 | -138.89% | | **Weighted Average Return on Net Assets** | -10.21% | -4.04% | -6.17% | | **Total Assets (yuan)** | 45,247,267,698.44 | 45,379,124,099.99 | -0.29% | | **Net Assets Attributable to Shareholders (yuan)** | 10,756,917,309.57 | 11,926,768,920.04 | -9.81% | [Quarterly Key Financial Indicators](index=11&type=section&id=VIII.%20Quarterly%20Key%20Financial%20Indicators) The company's 2021 quarterly revenue remained stable, but net profit fluctuated significantly, with Q4 showing the largest loss Quarterly Key Financial Indicators Data | Indicator (yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,005,350,885.68 | 2,398,739,850.32 | 3,328,196,700.02 | 2,754,340,135.96 | | **Net Profit Attributable to Shareholders** | -318,649,247.58 | -211,257,945.23 | 4,881,759.76 | -633,348,346.63 | | **Net Cash Flow from Operating Activities** | 47,682,189.80 | -158,006,425.34 | 1,002,253,571.30 | -137,385,509.93 | [Non-recurring Gains and Losses](index=11&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) In 2021, non-recurring gains and losses totaled **2.947 million yuan**, a significant decrease from the previous year Non-recurring Gains and Losses Data | Item | 2021 Amount (yuan) | 2020 Amount (yuan) | | :--- | :--- | :--- | | Non-current asset disposal gains and losses | -2,983,071.47 | 3,054,672.18 | | Government grants recognized in current profit/loss | 21,605,972.65 | 13,075,280.46 | | Other non-operating income and expenses | -9,870,910.07 | 9,151,800.55 | | **Total** | **2,946,968.86** | **40,925,440.02** | [Management Discussion and Analysis](index=12&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operations, financial performance, and future outlook [Industry Overview and Competitive Advantages](index=12&type=section&id=I.%20Industry%20Overview%20During%20the%20Reporting%20Period) The company's industry benefits from '14th Five-Year Plan' and REITs policies, with strong growth in hazardous waste disposal - Policy environment benefits the company's three major business segments: - **Water Environment Governance**: The '14th Five-Year Plan' requires urban domestic sewage collection rates to exceed **70%**, and public REITs pilot programs improve industry financing - **Environmental Hazardous Waste**: New 'Solid Waste Law' and 'Hazardous Waste List' strengthen regulation, leading to insufficient hazardous waste disposal capacity - **Circular Economy**: The '14th Five-Year Plan' targets a resource recycling industry output value of **5 trillion yuan** by 2025[36](index=36&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - The company in water ecological restoration and industrial hazardous waste disposal is a leader in the industry, holding over 400 ecological restoration patents and more than 130 hazardous waste treatment technology patents[43](index=43&type=chunk)[44](index=44&type=chunk) - During the reporting period, the company's hazardous waste disposal business achieved rapid growth, with revenue increasing by **52.72%** and gross profit by **65.82%** year-on-year[44](index=44&type=chunk) [Principal Businesses and Operating Models](index=17&type=section&id=II.%20Principal%20Businesses%20During%20the%20Reporting%20Period) The company operates in ecological, environmental, and circular economy sectors, with **15.561 billion yuan** in financing balance - Company business segments and models: - **Ecological Business**: Engages in comprehensive water environment management and municipal landscaping through EPC (Engineering, Procurement, and Construction) or PPP (Public-Private Partnership) models - **Environmental Protection Business**: Provides integrated industrial hazardous waste disposal services, including harmless treatment, resource utilization, and on-site services - **Circular Economy Business**: Focuses on dismantling, recycling, and deep processing of waste home appliances, metals, and electronic waste[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) Principal Businesses and Operating Models Data | Financing Channel | Financing Balance (billion yuan) | Financing Cost Range | | :--- | :--- | :--- | | Bank Loans | 75.34 | 3.85%-8.00% | | Bills | 1.08 | —— | | Bonds | 9.98 | 5.2% | | Trust Financing | 67.13 | 5.97%-7.50% | | Finance Lease | 2.08 | 5.00%-6.00% | | **Total** | **155.61** | **——** | [Core Competitiveness Analysis](index=20&type=section&id=III.%20Core%20Competitiveness%20Analysis) The company's core strengths include pioneering water environment solutions, integrated services, and advanced hazardous waste technologies - The company, with its 'three-in-one' ecological comprehensive governance concept, pioneered water environment businesses, becoming an industry forerunner and leading enterprise[61](index=61&type=chunk) - The company possesses a systematic hazardous waste disposal technology system, being one of the few enterprises in the industry capable of disposing of most categories listed in the 'National Hazardous Waste List'[63](index=63&type=chunk) [Main Business Analysis](index=21&type=section&id=IV.%20Main%20Business%20Analysis) In 2021, revenue grew **20.18%** to **10.487 billion yuan**, but net profit was a **1.158 billion yuan** loss due to impairments [Operating Overview](index=21&type=section&id=1.%20Overview) In 2021, revenue grew over **20%**, but net profit was a **1.158 billion yuan** loss, with industrial waste recycling becoming the main revenue source Operating Overview Data | Business Segment | Operating Revenue (billion yuan) | Share of Total Revenue | Gross Profit (billion yuan) | | :--- | :--- | :--- | :--- | | Ecological Construction Business | 34.14 | 32.56% | 9.10 | | Industrial Waste Recycling | 62.67 | 59.76% | 1.50 | | Solid Waste Disposal Business | 5.05 | 4.81% | 2.04 | - During the reporting period, net cash flow from operating activities was **755 million yuan**, a **201.12% increase** year-on-year, primarily due to strengthened project settlement and collection efforts, and the rapid development of businesses with faster capital turnover[68](index=68&type=chunk) - As of the end of the reporting period, the company's interest-bearing debt balance was **15.453 billion yuan**, with **4.717 billion yuan** due within one year, a **13.66% decrease** from the beginning of the period, indicating controllable short-term debt risk[69](index=69&type=chunk) [Revenue and Cost Analysis](index=22&type=section&id=2.%20Revenue%20and%20Costs) In 2021, environmental business revenue grew **68%** to **6.772 billion yuan**, becoming the largest segment, while engineering revenue declined Revenue and Cost Analysis Data | By Industry | 2021 Revenue (yuan) | Share of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Engineering Construction | 3,414,027,659.90 | 32.56% | -23.76% | | Environmental Protection Business | 6,771,620,117.88 | 64.57% | 68.00% | | Design and Planning | 132,333,644.60 | 1.26% | -16.37% | Revenue and Cost Analysis Data | By Product | 2021 Revenue (yuan) | Share of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Industrial Waste Sales | 6,266,725,269.75 | 59.76% | 69.36% | | Comprehensive Water Environment Governance | 1,358,462,864.84 | 12.95% | -35.20% | | Municipal Landscaping | 1,246,075,325.10 | 11.88% | -23.44% | - During the reporting period, sales to the top five customers accounted for **30.24%** of total annual sales, and purchases from the top five suppliers accounted for **6.48%** of total annual purchases, indicating low customer and supplier concentration[83](index=83&type=chunk) [Expense Analysis](index=27&type=section&id=3.%20Expenses) In 2021, selling expenses increased **78.36%** due to industrial waste business growth, while R&D expenses decreased Expense Analysis Data | Expense Item | 2021 (yuan) | 2020 (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 33,795,571.59 | 18,948,263.07 | 78.36% | | Administrative Expenses | 601,752,070.27 | 488,139,522.98 | 23.27% | | Financial Expenses | 850,653,011.57 | 809,854,622.39 | 5.04% | | R&D Expenses | 170,069,655.45 | 187,927,760.45 | -9.50% | [R&D Investment Analysis](index=27&type=section&id=4.%20R%26D%20Investment) In 2021, R&D investment totaled **170 million yuan**, representing **1.62%** of revenue, with a **27.10%** reduction in R&D personnel R&D Investment Analysis Data | Indicator | 2021 | 2020 | Change Percentage | | :--- | :--- | :--- | :--- | | R&D Investment (yuan) | 170,069,655.45 | 191,870,908.51 | -11.36% | | R&D Investment as % of Operating Revenue | 1.62% | 2.20% | -0.58% | | R&D Personnel (persons) | 468 | 642 | -27.10% | [Cash Flow Analysis](index=30&type=section&id=5.%20Cash%20Flow) In 2021, operating cash flow significantly improved to **755 million yuan**, but financing cash flow sharply decreased Cash Flow Analysis Data | Item (yuan) | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 754,543,825.83 | -746,222,484.42 | 201.12% | | Net Cash Flow from Investing Activities | -1,132,586,255.79 | -1,285,450,324.81 | 11.89% | | Net Cash Flow from Financing Activities | 125,900,413.06 | 2,451,365,609.34 | -94.86% | | Net Increase in Cash and Cash Equivalents | -252,142,016.92 | 419,374,590.18 | - A significant discrepancy exists between net operating cash flow (**755 million yuan**) and net profit (**-1.17 billion yuan**), primarily due to substantial non-cash asset impairment provisions and strengthened collection efforts for engineering projects during the period[94](index=94&type=chunk) [Outlook on Future Development](index=34&type=section&id=XI.%20Outlook%20on%20Company's%20Future%20Development) The company aims to become a leader in ecological, environmental, and circular economy sectors, leveraging national policies - The company expects to benefit from industry development dividends, driven by national initiatives to intensify pollution prevention and control, and the promotion of 'zero-waste cities' and 'beautiful countryside' construction[112](index=112&type=chunk)[113](index=113&type=chunk) - The circular economy business has vast market potential, with the scrap steel market alone exceeding **900 billion yuan** annually. The company will seize 'carbon peak' and 'carbon neutrality' opportunities to develop resource recycling businesses[118](index=118&type=chunk) [Significant Risk Warnings](index=36&type=section&id=XII.%20Significant%20Risk%20Warnings) The company faces risks from local government finances, business model challenges, and contract asset impairment - Industry risk: Local government fiscal conditions, influenced by the real estate sector and stricter debt regulation, may lead to reduced municipal landscaping investments and slower settlements and collections[119](index=119&type=chunk) - Business model risk: Traditional EPC models require upfront funding, leading to substantial contract assets and accounts receivable; PPP models have long cycles with policy and performance uncertainties[120](index=120&type=chunk)[121](index=121&type=chunk) - Contract asset impairment risk: As of the end of 2021, the company's contract asset balance was **16.341 billion yuan**, posing impairment risk, for which the company has provisioned **271 million yuan**[126](index=126&type=chunk) [Corporate Governance](index=39&type=section&id=Section%20IV%20Corporate%20Governance) This section details the company's governance structure, board composition, and employee incentive programs [Overview of Corporate Governance](index=39&type=section&id=I.%20Basic%20Status%20of%20Corporate%20Governance) The company maintains a robust corporate governance structure in compliance with relevant laws and regulations - The company has established a corporate governance structure with clear responsibilities, coordinated operations, and effective checks and balances among power, decision-making, supervisory bodies, and management[131](index=131&type=chunk) [Directors, Supervisors, and Senior Management](index=43&type=section&id=V.%20Directors,%20Supervisors,%20and%20Senior%20Management%20Information) Liu Xiaofeng was appointed as the new director and president, with total executive compensation at **7.0429 million yuan** - Company director and president Liu Weijie resigned on February 6, 2022, due to personal reasons, and the board appointed Liu Xiaofeng as the new director and president[146](index=146&type=chunk)[147](index=147&type=chunk) Directors, Supervisors, and Senior Management Data | Name | Position | Total Pre-tax Compensation from Company (million yuan) | Received Compensation from Related Parties | | :--- | :--- | :--- | :--- | | Mu Yingjie | Chairman | 0 | Yes | | Liu Xiaofeng | Director, President | 81.77 | No | | Cheng Xianghong | Director, Vice President | 80.52 | No | | Chen Ying | Director, Vice President, Board Secretary | 80.52 | No | | He Lan | Director | 0 | Yes | | Wang Yan | Chairman of Supervisory Board | 0 | Yes | | Liu Weijie | Director, President (Resigned) | 100.52 | No | | **Total** | **--** | **704.29** | **--** | [Employee Incentive Plans](index=55&type=section&id=XI.%20Implementation%20of%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures) The second employee stock ownership plan was terminated after full divestment, while the third plan remains active - The company's second employee stock ownership plan divested all its shares (**3.16% of total share capital**) between July and September 2021, and the plan has been fully implemented and terminated[180](index=180&type=chunk)[181](index=181&type=chunk) [Environmental and Social Responsibility](index=60&type=section&id=Section%20V%20Environmental%20and%20Social%20Responsibility) This section details the company's environmental compliance, pollution control efforts, and social contributions [Significant Environmental Issues](index=60&type=section&id=I.%20Significant%20Environmental%20Issues) The company and its subsidiaries are key pollutant-discharging entities, strictly adhering to environmental compliance and emergency plans - The company and its subsidiaries, including Ningxia Laide, Nantong Jiuzhou, Jiangsu Yingtian, Sichuan Ruiheng, and Shandong Xiyuan, are listed as key pollutant-discharging entities by environmental protection authorities[190](index=190&type=chunk) - The company's construction projects strictly adhere to the 'three simultaneities' system for pollution control facilities and main works, and some projects undergo upgrades to ensure pollutant discharge meets standards[193](index=193&type=chunk)[194](index=194&type=chunk) [Social Responsibility](index=65&type=section&id=II.%20Social%20Responsibility%20Status) The company actively fulfills social responsibilities, protecting shareholder and employee rights, and promoting rural revitalization - Shanghai New Century Rating has assigned the company an **AA corporate credit rating** with a stable outlook, reflecting capital market recognition of its creditworthiness[205](index=205&type=chunk) - The company actively participates in rural revitalization, with projects like the Tianjin Dongli Green Ecological Barrier becoming landmark initiatives[213](index=213&type=chunk) [Significant Matters](index=68&type=section&id=Section%20VI%20Significant%20Matters) This section covers non-operating funds occupancy, related party transactions, significant contracts, and other material events [Non-Operating Funds Occupancy](index=72&type=section&id=II.%20Non-Operating%20Funds%20Occupancy%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) The company had **48.1361 million yuan** in non-operating funds occupied by former actual controllers, now subject to recovery efforts Non-Operating Funds Occupancy Data | Related Party | Reason for Occupancy | Beginning Balance (million yuan) | New Additions During Period (million yuan) | Repaid During Period (million yuan) | Ending Balance (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | He Qiaonv, Tang Kai | Related loan matters | 0 | 11,653.63 | 6,840.02 | 4,813.61 | [Significant Related Party Transactions](index=75&type=section&id=XIV.%20Significant%20Related%20Party%20Transactions) The company engaged in significant related party transactions, including **2.55 billion yuan** in funds borrowed from affiliates Significant Related Party Transactions Data | Related Party (Borrowed From) | Relationship | New Amount This Period (million yuan) | Repaid Amount This Period (million yuan) | Ending Balance (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Chaohuixin Enterprise Management Co Ltd | Parent Company | 156,000 | 156,000 | 0 | | Beijing Chaoyang State-owned Capital Operation Management Co Ltd | Indirect Controlling Shareholder | 245,000 | 85,000 | 245,386.29 | | Beijing Yingrun Huimin Fund Management Center | Shareholder with >5% Stake | 39,500 | 9,500 | 30,045.19 | - To support the company's development, the controlling shareholder and its concerted parties provided liquidity support, including credit enhancement and entrusted loans; the total estimated related party transactions for 2021 were not to exceed **350 million yuan**, with actual transactions amounting to **126 million yuan**[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk) [Significant Contracts and Their Performance](index=77&type=section&id=XV.%20Significant%20Contracts%20and%20Their%20Performance) The company provided **615 million yuan** in external guarantees, with **2.2624231 billion yuan** in guarantees to subsidiaries, including one overdue case Significant Contracts and Their Performance Data | Guarantee Type | Total Approved Amount During Period (million yuan) | Total Actual Guarantee Balance at Period End (million yuan) | | :--- | :--- | :--- | | External Guarantees | 109,025.5 | 53,000 | | Guarantees to Subsidiaries | 25,000 | 226,242.31 | | Subsidiary to Subsidiary Guarantees | 0 | 19,343 | | **Total** | **134,025.5** | **298,585.31** | - The company's guarantee for its subsidiary, Tongliao Dongli Environmental Governance Co Ltd, carries overdue risk as the subsidiary failed to pay finance lease contract rentals on time, leading creditors to file lawsuits, with a guarantee balance of **96.9733 million yuan**[260](index=260&type=chunk) [Other Significant Matters](index=86&type=section&id=XVI.%20Explanation%20of%20Other%20Significant%20Matters) The company's credit rating was adjusted to **AA**, and significant asset impairment provisions were made for 2021 - The company's corporate credit rating was adjusted to **AA** by Shanghai New Century Rating, with a stable outlook[263](index=263&type=chunk) - On April 26, 2022, the company approved the provision of **972 million yuan** for various asset impairment losses for 2021, expected to reduce net profit attributable to parent company by **856 million yuan**[265](index=265&type=chunk) [Share Changes and Shareholder Information](index=88&type=section&id=Section%20VII%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and information regarding its shareholders and actual controller [Share Change Status](index=88&type=section&id=I.%20Share%20Change%20Status) Total share capital remained unchanged, but restricted shares decreased by **40.348523 million** due to executive share unlocking Share Change Status Data | Share Type | Before Change (shares) | After Change (shares) | Change Amount (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 164,305,959 | 123,957,436 | -40,348,523 | | Unrestricted Shares | 2,521,156,045 | 2,561,504,568 | +40,348,523 | | **Total Share Capital** | **2,685,462,004** | **2,685,462,004** | **0** | [Shareholders and Actual Controller](index=90&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of 2021 end, the company had **81,469** shareholders, with former actual controllers' shares largely pledged and frozen Shareholders and Actual Controller Data | Shareholder Name | Shareholding Percentage | Shares Held at Period End (shares) | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | | He Qiaonv | 29.03% | 779,541,885 | Almost entirely pledged and frozen | | Tang Kai | 5.73% | 153,912,147 | Almost entirely pledged and frozen | | Beijing Chaohuixin Enterprise Management Co Ltd | 5.00% | 134,273,101 | No | | Beijing Yingrun Huimin Fund Management Center | 5.00% | 134,273,101 | No | - Controlling shareholder Chaohuixin holds **5%** of the company's equity and an additional **16.8%** of voting rights through proxy, totaling **21.8%** of voting rights. The actual controller is Beijing Chaoyang District SASAC[276](index=276&type=chunk)[834](index=834&type=chunk) [Preferred Shares Related Information](index=95&type=section&id=Section%20VIII%20Preferred%20Shares%20Related%20Information) This section confirms the absence of preferred shares during the reporting period - The company had no preferred shares during the reporting period[284](index=284&type=chunk) [Bonds Related Information](index=96&type=section&id=Section%20IX%20Bonds%20Related%20Information) This section provides details on the company's outstanding bonds and other overdue interest-bearing debts [Corporate Bonds](index=96&type=section&id=II.%20Corporate%20Bonds) The company has one outstanding green corporate bond '20 Donglin G1' with a **1 billion yuan** balance and **5.2%** interest rate Corporate Bonds Data | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | 20 Donglin G1 | 149263.SZ | 2020-12-23 | 2025-12-23 | 1,000,000,000.00 | 5.2% | - During the reporting period, the company's corporate credit rating was downgraded to **AA** with a stable outlook, but the rating for its outstanding bond '20 Donglin G1' remained **AAA**[295](index=295&type=chunk) [Other Interest-Bearing Debt Overdue Status](index=99&type=section&id=VI.%20Overdue%20Interest-Bearing%20Debts%20Excluding%20Bonds%20at%20Period%20End) The company had over **250 million yuan** in overdue interest-bearing debts, primarily finance leases and private loans - The company has an overdue finance lease of **150 million yuan**, with the borrower being its controlling subsidiary Tongliao Dongli, currently under litigation[299](index=299&type=chunk) - Multiple private loan defaults exist, totaling over **100 million yuan**, primarily occurring before the change in actual control, with some resolved through litigation[299](index=299&type=chunk)[300](index=300&type=chunk) [Financial Report](index=102&type=section&id=Section%20X%20Financial%20Report) This section presents the company's audited financial statements, including the balance sheet, income statement, and cash flow statement [Audit Report](index=102&type=section&id=I.%20Audit%20Report) The auditor issued an unqualified opinion, highlighting revenue recognition, asset impairment, and goodwill impairment as key matters - The audit opinion is an unqualified opinion, stating that the financial statements fairly present the company's financial position and operating results in all material respects[306](index=306&type=chunk) - Key audit matters include: - **Revenue Recognition for Engineering Business**: The company recognizes revenue based on performance progress using the input method, involving significant estimates of total revenue and costs - **Impairment of Accounts Receivable and Contract Assets**: Management assesses impairment based on the expected credit loss model, involving significant accounting estimates and judgments - **Goodwill Impairment**: Goodwill impairment testing involves forecasting future cash flows, which inherently carries uncertainty[308](index=308&type=chunk)[310](index=310&type=chunk)[312](index=312&type=chunk) [Financial Statements](index=106&type=section&id=II.%20Financial%20Statements) As of 2021 end, total assets were **45.247 billion yuan**, with a **73.09%** asset-liability ratio, and a **1.17 billion yuan** net loss [Consolidated Balance Sheet](index=106&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of 2021 end, total assets were **45.247 billion yuan**, with contract assets at **16.071 billion yuan**, and total liabilities at **33.071 billion yuan** Consolidated Balance Sheet Data | Item (yuan) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **45,247,267,698.44** | **45,379,124,099.99** | | Contract Assets | 16,070,658,124.52 | 15,942,233,497.44 | | Accounts Receivable | 6,987,490,788.40 | 8,540,254,786.49 | | **Total Liabilities** | **33,071,246,144.87** | **32,085,950,856.48** | | Short-term Borrowings | 3,990,522,854.23 | 4,282,726,267.00 | | Long-term Borrowings | 9,738,886,787.38 | 7,504,358,230.73 | | **Total Equity Attributable to Parent Company Shareholders** | **10,756,917,309.57** | **11,926,768,920.04** | [Consolidated Income Statement](index=111&type=section&id=3.%20Consolidated%20Income%20Statement) In 2021, total operating revenue was **10.487 billion yuan**, but significant impairment losses led to a **1.17 billion yuan** net loss Consolidated Income Statement Data | Item (yuan) | 2021 | 2020 | | :--- | :--- | :--- | | **Total Operating Revenue** | **10,486,627,571.98** | **8,725,535,437.62** | | **Total Operating Costs** | **11,285,506,099.81** | **8,760,719,872.80** | | Credit Impairment Losses | -713,242,174.27 | -687,472,722.68 | | Asset Impairment Losses | -258,643,992.45 | -153,785,070.19 | | **Operating Profit** | **-1,289,921,959.84** | **-566,990,778.12** | | **Net Profit** | **-1,169,808,173.35** | **-489,170,472.26** | | Net Profit Attributable to Parent Company Shareholders | -1,158,373,779.68 | -492,260,346.93 | [Consolidated Cash Flow Statement](index=116&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) In 2021, operating cash flow significantly improved to **755 million yuan**, but financing cash flow sharply decreased Consolidated Cash Flow Statement Data | Item (yuan) | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 754,543,825.83 | -746,222,484.42 | 201.12% | | Net Cash Flow from Investing Activities | -1,132,586,255.79 | -1,285,450,324.81 | 11.89% | | Net Cash Flow from Financing Activities | 125,900,413.06 | 2,451,365,609.34 | -94.86% | | Net Increase in Cash and Cash Equivalents | -252,142,016.92 | 419,374,590.18 |