SPC(SZ:002573)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was ¥3,375,298,869.22, a decrease of 17.43% compared to ¥4,087,726,428.90 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥379,901,458.13, down 27.63% from ¥524,917,581.60 in 2018[23]. - The net profit after deducting non-recurring gains and losses was ¥376,323,251.80, a decrease of 22.39% from ¥484,890,254.30 in 2018[26]. - The total assets at the end of 2019 were ¥9,926,635,026.60, a decrease of 7.48% from ¥10,729,693,544.90 at the end of 2018[26]. - The net assets attributable to shareholders increased by 5.19% to ¥4,896,277,670.28 from ¥4,654,558,738.04 at the end of 2018[26]. - The basic and diluted earnings per share for 2019 were both ¥0.3513, down 27.64% from ¥0.4855 in 2018[26]. - The gross profit margin for the environmental protection industry was 22.45%, down by 6.22% from the previous year[84]. - The operating cost for the environmental protection industry was ¥2,617,596,003.80, a decrease of 10.22% from ¥2,915,638,383.52 in 2018[89]. - The company's cash flow management improved significantly in 2019, leading to a reduction in the asset-liability ratio and enhanced risk resistance[69]. Shareholder Information - The company reported a cash dividend of 1.5 RMB per 10 shares, totaling approximately 162.19 million RMB based on 1,081,272,100 shares[5]. - The company distributed cash dividends of RMB 162,190,815.00, which is 42.69% of the net profit attributable to ordinary shareholders for the year 2019[145]. - The company has maintained a consistent cash dividend policy, distributing cash dividends for three consecutive years, with amounts of RMB 108,127,210.00 in 2017 and 2018[141][142]. Business Operations - The company operates in four main business segments: operation, engineering, resource utilization, and energy saving, focusing on industrial environmental governance[43]. - The company is actively expanding its business in energy saving and resource utilization, aiming to become a leading comprehensive environmental service provider[43]. - The company is steadily promoting business expansion, strategic cooperation, and asset acquisitions in its core business areas[43]. - The company signed an EPC contract worth approximately 480 million RMB for a flue gas desulfurization system in India, marking a significant overseas market breakthrough[49]. - The company has actively participated in the "Belt and Road" initiative, expanding its overseas environmental governance business[49]. - The company’s resource utilization business, operated by Chifeng Boyuan, produced approximately 300,000 tons annually and is expanding into coastal markets such as Jiangsu and Guangdong[74]. - The company established a new energy-saving division in August 2019, focusing on industrial waste heat utilization and energy management, and has formed strategic partnerships with multiple group clients[75]. Research and Development - The company is committed to continuous investment in research and development to apply more self-developed innovative technologies in various energy-saving and environmental protection sectors[48]. - The company has established a post-doctoral workstation and a research institute to attract top talent in the environmental protection field[54]. - The company has increased its intangible assets by 31.62% compared to the previous period, primarily due to the transformation of high-tech project results from independent research and development[53]. - Research and development expenses increased by 18.84% to ¥72,597,222.52, while total R&D investment amounted to ¥131,452,583.23, accounting for 3.89% of operating revenue[97][100]. Compliance and Governance - The company received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[5]. - The company’s financial report was confirmed to be true, accurate, and complete by its board of directors and management[5]. - The company has maintained compliance with all commitments made by its actual controllers and shareholders during the reporting period[160]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[162]. - The company has strictly adhered to commitments regarding non-competition with its main business and will prioritize the interests of the listed company in case of potential conflicts[154]. Market Expansion - The company aims to expand its market presence in the southwest region of China and overseas markets, particularly in India and countries along the Belt and Road Initiative[127]. - The company is actively exploring new business areas and technology upgrades, focusing on industrial wastewater treatment and mobile source pollution control technologies[97][100]. - The company plans to strengthen risk management for international operations, including political and foreign exchange risks, as it expands into international markets[128]. Financial Management - The company reported a significant increase in accounts receivable due to explosive growth in engineering business, necessitating enhanced management of receivables[131]. - The company has reduced other receivables by 66.59%, mainly due to the recovery of approximately 230 million RMB in loans from a subsidiary[53]. - The company has decreased accounts receivable by 27.93% as a result of strengthened collection of business payments[53]. - The company reported a decrease in financial expenses by 38.14% to ¥160,584,164.17, attributed to reduced debt scale from repaying green bonds[96]. - The company’s cash and cash equivalents increased to ¥425,999,422.60, representing 4.29% of total assets, up from 3.55% at the beginning of the year[107]. Corporate Structure - The company underwent a share transfer, changing its controlling shareholder from Beijing Century Dihe Holdings to Sichuan Development Environment Investment Group[21]. - The company was transformed into a state-controlled mixed-ownership listed company in July 2019, enhancing its market expansion and operational capabilities[64]. - The company added one subsidiary, Guizhou Qingxin Wanfeng Energy Technology Co., Ltd., through a business combination under common control, and established two new subsidiaries, Inner Mongolia Yuan Zhen Testing Technology Co., Ltd. and Chifeng Boyuan Resource Utilization Co., Ltd.[92]. Audit and Reporting - The audit firm, Xinyong Zhonghe, has been engaged for 12 consecutive years, with an audit fee of 1.5 million yuan[196]. - There were no significant accounting errors requiring restatement during the reporting period[194]. - The company has not changed its accounting firm during the reporting period[196]. - The company has implemented new accounting standards effective January 1, 2019, which do not impact the consolidated net profit or equity of the company[164].