CEEP(SZ:300172)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥919.83 million, representing a 1.43% increase compared to ¥906.88 million in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately ¥177.01 million, a 23.85% increase from ¥142.92 million in 2019[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥137.23 million, up 34.75% from ¥101.84 million in 2019[16]. - The net cash flow from operating activities for 2020 was approximately ¥90.66 million, reflecting a 26.10% increase from ¥71.90 million in 2019[16]. - The total assets at the end of 2020 were approximately ¥2.67 billion, a 6.58% increase from ¥2.51 billion at the end of 2019[16]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.64 billion, an increase of 11.60% from ¥1.47 billion at the end of 2019[16]. - The basic earnings per share for 2020 were ¥0.34, representing a 21.43% increase from ¥0.28 in 2019[16]. - The weighted average return on equity for 2020 was 11.38%, an increase of 1.11 percentage points from 10.27% in 2019[16]. Business Expansion and Innovation - The company has expanded its main business from water treatment to include solid and hazardous waste management, flue gas treatment, and an innovation platform[26]. - The company’s sludge treatment design capacity is nearly 300,000 tons per year, which is expected to reduce carbon dioxide emissions by 77,200 tons annually[30]. - The company has developed a "zero discharge" technology for wastewater treatment, which has been successfully promoted in major industrial sectors[27]. - The company has transitioned its business model from system integration EPC to BOT and PPP investment models[26]. - The company’s wastewater treatment services include comprehensive solutions for industrial and municipal clients, focusing on resource reuse and environmental compliance[28]. - The company has established partnerships with major state-owned enterprises for sludge treatment solutions, aligning with national environmental policies[30]. - The company’s innovative technologies have been recognized as part of the "Belt and Road" initiative, enhancing its market position in the environmental sector[30]. - The company has developed a comprehensive pollution soil remediation technology system, including various advanced techniques for different types of contaminated sites[33]. - The company’s subsidiary, Zhongdian Environmental Technology, specializes in air pollution control and has developed integrated core technologies for flue gas treatment, contributing to carbon reduction efforts[32]. - The company is actively building an ecological environment industry innovation cluster to support technology research and talent introduction, enhancing its innovation capabilities[35]. - The company has nearly 500 patents and proprietary technologies, indicating a strong focus on innovation and technology development[36]. Market Trends and Government Policies - The "14th Five-Year Plan" aims to add and upgrade 80,000 kilometers of sewage collection networks and increase sewage treatment capacity by 20 million cubic meters per day by 2023[43]. - The solid waste industry is expected to see a significant market expansion, with a target of achieving a 90% harmless disposal rate for urban sludge[45]. - The government plans to establish a long-term sewage treatment fee mechanism that ensures reasonable pricing to cover operational costs and allow for profit[42]. - By 2025, the ecological environment governance system is expected to be fully established, enhancing the management of ecological protection funds and project reserves[40]. - The company anticipates that the environmental policy dividends will continue to be released, leading to a new development cycle for the environmental protection industry during the "14th Five-Year Plan" period[41]. - The market for wastewater resource utilization and treatment services is expected to grow due to favorable policies aimed at improving treatment standards and pricing[43]. - The company is positioned to benefit from the increasing focus on green finance and the establishment of ecological compensation mechanisms across regions[40]. - The government aims to achieve a 35% recycling rate for urban household waste within five years, promoting a comprehensive waste classification system[44]. - The company is likely to see growth opportunities in the flue gas treatment sector, with policies aimed at reducing coal consumption and enhancing VOCs management[46]. Project Development and Contracts - The company reported a 519.96% increase in construction projects compared to the same period last year, attributed to the new solid waste project in Haifeng Phase II[48]. - The company has established nearly 30 wastewater treatment projects across the country, including significant projects in Ningxia, Henan, and Shanghai, enhancing its market presence[57]. - The company has processed nearly 300,000 tons/year of sludge through coupling treatment projects, with the Shenzhen project being the largest sludge disposal base in China, processing 2,000 tons/day[57]. - The company has successfully implemented major projects in the nuclear power water treatment sector, solidifying its leading position in the market[56]. - The company aims to become a key player in sludge treatment in Nanjing, collaborating with local state-owned assets to enhance its brand influence and market reach[58]. - The company has integrated various resources through a national-level environmental industry innovation platform, enhancing its comprehensive solution capabilities and market competitiveness[50]. - The company has expanded its service capabilities in industrial water treatment, achieving a leading market share in specific segments such as power water treatment[56]. - The company has established a national-level environmental industry technology innovation strategic alliance, undertaking multiple scientific and industrialization projects[53]. Research and Development - The company is focusing on the development of new technologies and processes in water, solid waste, and flue gas treatment to meet rapidly growing market demands[51]. - The company’s R&D investment in 2020 amounted to ¥35,296,167.02, representing 3.84% of total revenue, a decrease from 4.81% in 2019[90]. - The number of R&D personnel decreased to 130 in 2020, representing 22.53% of the total workforce, down from 28.09% in 2019[90]. - The company is currently in the pilot stage for several new technologies, including high-efficiency denitrification and desulfurization systems[90]. - Key projects include the development of zero discharge technology for high-salinity wastewater, aiming to reduce operational costs and support new market opportunities[87]. - The company is working on a new self-sustaining denitrification technology that can save over 60% in operational costs compared to traditional methods, suitable for low carbon-nitrogen ratio wastewater[87]. - A modular wastewater treatment device is in the pilot stage, designed for automated operation and standardization, with potential applications in rural and emergency wastewater treatment[87]. - The company aims to standardize parameters for tubular membrane electrode technology, targeting a treatment cost below 0.3 million CNY/m³ and an operational cost below 1.5 CNY/m³ for chemical wastewater[87]. - The company is developing an integrated smart environmental operation platform to address low network bandwidth and signal stability issues, currently in the research and development stage[6]. - A smart sludge scraper torque measurement device is being developed to enhance continuous operation, with key innovations including automatic torque tracking and high automation levels, currently in the conclusion stage[7]. - A drone gas sampling measurement system is under development, capable of monitoring multiple gas parameters and particulate matter, with real-time data transmission capabilities, currently in the conclusion stage[8]. - The company is researching intelligent control technology for municipal wastewater treatment, aiming to reduce manual operations and improve accuracy in executing wastewater process parameters, currently in the conclusion stage[9]. - A high-speed 5G wireless surveillance camera is being developed, with a target image transmission rate of no less than 1 Gbps and an average bandwidth reduction of at least 35%, currently in the conclusion stage[11]. - The company plans to create a "smart IoT environmental monitoring cloud platform" for real-time monitoring of wastewater treatment and water quality, with a target data collection capacity of up to 10,000 data points, currently in the conclusion stage[12]. - A sludge delivery system is being developed to automatically remove impurities from sludge with a moisture content of 60%, currently in the research and development stage[13]. - The company is working on a belt drying machine to enhance the filtration and granulation systems for sludge treatment, ensuring high impurity removal rates, currently in the research and development stage[14]. - A sludge incoming material management system is being developed to automate the unloading and distribution of sludge transport vehicles, aimed at reducing labor costs and improving unloading efficiency, currently in the pilot testing stage[15]. Shareholder and Dividend Information - The company reported a net profit attributable to shareholders of RMB 177,012,440.92 for the year 2020, with a legal surplus reserve of RMB 11,671,441.90 deducted[130]. - The total distributable profit available for shareholders as of December 31, 2020, was RMB 845,483,718.40, with a year-end capital reserve balance of RMB 200,168,060.28[130]. - The company proposed a cash dividend of RMB 0.50 per share (including tax), totaling RMB 26,035,527.50, which represents 14.71% of the net profit for 2020[131]. - The capital reserve conversion plan included a proposal to increase the share capital by 3 shares for every 10 shares held, resulting in a total of 156,213,165 new shares[131]. - The cash dividend distribution plan was approved at the 2019 annual general meeting, with a total cash dividend of RMB 26,097,500.00 for the year 2019, representing 18.26% of the net profit[132]. - The company maintained a consistent cash dividend policy, with no revisions made to the existing policy during the reporting period[125]. - The cash dividend distribution for the year 2020 was fully compliant with the company's articles of association and shareholder resolutions[126]. - The company’s cash dividend total (including other methods) accounted for 100% of the profit distribution total[127]. - The company is in a growth phase and plans to maintain a minimum cash dividend ratio of 20% in future distributions[128]. - The total cash dividend for 2020 was ¥26,035,527.50, representing 14.71% of the net profit attributable to ordinary shareholders[135]. - In 2019, the cash dividend amounted to ¥26,097,500.00, which was 18.26% of the net profit attributable to ordinary shareholders[135]. - The cash dividend for 2018 was ¥26,110,000.00, accounting for 21.36% of the net profit attributable to ordinary shareholders[135]. - The company reported a positive profit available for distribution to ordinary shareholders but did not propose a cash dividend distribution plan during the reporting period[135]. Risk Management and Compliance - The company emphasizes risk management, particularly in response to the ongoing COVID-19 pandemic, which has heightened the demand for urban public ecological environment services[116]. - The company is enhancing its internal control systems, including legal, procurement, quality, safety supervision, and auditing, to strengthen risk control and ensure healthy development[113]. - The company has implemented measures to manage accounts receivable risks, including contract management and increased collection efforts[121]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[136]. - There were no non-operating fund occupations by controlling shareholders or their related parties during the reporting period[139]. - The company has not made any profit forecasts for assets or projects during the reporting period[139]. - The company has committed to avoiding any competition with its subsidiaries and has provided a commitment letter to this effect[137]. - The company has established measures to ensure that any related party transactions are conducted under fair and reasonable conditions[137]. Share Structure and Stock Incentives - The total number of shares before the recent changes was 521,950,000, with a decrease of 1,239,450 shares, resulting in a total of 520,710,550 shares after the changes[187]. - The company repurchased and canceled a total of 1,104,600 restricted stocks due to the disqualification of certain incentive targets[188]. - The second lock-up period for 3,821,850 shares of the 2018 restricted stock incentive plan was approved for release, with 68 eligible incentive targets[189]. - The total share capital of the company is 520,710,550 shares, with 1,239,450 restricted stock units canceled in 2020[190]. - The number of stockholders holding more than 5% of shares includes Wang Zhengfu with 28.21% (146,912,004 shares) and Lin Huisheng with 4.49% (23,400,372 shares) as of the end of the reporting period[198]. - A total of 1,104,600 restricted stock units were repurchased and canceled at a price of 3.88 CNY per share due to the disqualification of 8 incentive recipients[195]. - The company’s total shares decreased from 521,950,000 to 520,845,400 shares after the cancellation of restricted stock units[195]. - The company repurchased and canceled an additional 134,850 restricted stock units at a price of 3.93 CNY per share due to the disqualification of 21 incentive recipients[196]. - The number of restricted shares at the end of the reporting period is 144,688,563 shares, down from 175,053,909 shares at the beginning[193]. - The company has 37,516 common stockholders at the end of the reporting period[198]. - The company’s stockholder structure includes significant holdings by key executives, with Wang Zhengfu holding 110,184,003 restricted shares[192]. - The company has implemented a stock incentive plan with a gradual unlocking mechanism for restricted shares, typically at a rate of 25% per year[192]. - The company’s stock repurchase and cancellation activities are in compliance with regulatory requirements and have been confirmed by the China Securities Depository and Clearing Corporation[195]. Financial Management and Investments - The company has engaged in cash asset management, with a total of CNY 135,775 million in entrusted financial management, including CNY 34,675 million in bank financial products and CNY 91,500 million in trust financial products[162]. - The company has no overdue amounts in its entrusted financial management[162]. - The company has ongoing major contracts, including a total contract amount of CNY 7,980 million with China Nuclear Engineering Corporation, currently in the design phase[160]. - The company has a contract with China Machinery Equipment Corporation amounting to CNY 6,431.85 million, currently in the warranty phase[160]. - The company has a contract with Jiangsu Debang Xinhua Chemical Co., amounting to CNY 6,615 million, currently in the equipment procurement stage[160]. - The company has a contract with Shandong Shouguang Luqing Stone Co., amounting to CNY 8,800 million, currently in the debugging phase[160]. - The company has a contract with Dongguan Lingyi Precision Manufacturing Co., amounting to CNY 6,550 million, currently in the civil construction phase[160]. - The total amount of trust financial products issued by AVIC Trust reached 1,800 million with a return rate of 7.00%[164]. - AVIC Trust also issued a trust financial product amounting to 5,000 million, achieving a return of 207.12 million, which corresponds to a 7.00% return rate[164]. - A trust financial product of 9,000 million was issued by AVIC Trust, generating a return of 403.89 million at a rate of 7.00%[164]. - The financial product from Ningbo Bank amounted to 2,000 million with a return of 0.5 million, reflecting a return rate of 3.06%[164]. - A total of 6,600 million was raised by Ningbo Bank, yielding a return of 0.54 million at a rate of 3.01%[164]. - AVIC Trust issued another financial product of 5,000 million, which generated a return of 211 million at a return rate of 7.30%[164]. - The financial product from Minsheng Wealth amounted to 1,000 million, achieving a return of 41.42 million with a return rate of 7.20%[165]. - A trust financial product from AVIC Trust raised 3,300 million, yielding a return of 105.82 million at a rate of 7.70%[165]. - The total amount of financial products issued by AVIC Trust in 2020 reached 7,500 million, generating a return of 278.26 million at a return rate of 7.40%[165]. - The financial product from Huaren Trust amounted to 500 million, achieving a return of 0.08 million with a return rate of 3.07%[165]. - The company reported a total of 2,000 million in self-raised funds with an interest rate of 7.20% for a financial product maturing on September 7, 2020[166]. - Another financial product raised 5,000 million with a 7.30% interest rate, maturing on November 19, 2020, showing strong investor interest[166]. - The company issued a financial product of 3,500 million at a 7.00% interest rate, maturing on December 8, 2020, indicating continued growth in trust products[166]. - A financial product from Minsheng Wealth raised 2,000 million with a 7.20% interest rate, maturing on February 25, 2021, reflecting ongoing market confidence[167]. - The company has consistently offered competitive interest rates, with products ranging from 1.75% to 7.80% across various financial instruments[166][167]. - The total amount raised through various financial products in 2020 reached approximately 20,000 million, demonstrating robust fundraising capabilities[166]. - The company plans to expand its product offerings and enhance market penetration through strategic partnerships and innovative financial solutions[166]. - The average interest rate across the financial products offered was approximately 6.50%, indicating a strong yield for investors[166]. - The company is focusing on increasing its market share in the trust and banking sectors through targeted marketing strategies and product diversification[167]. - Future outlook includes a commitment to maintaining high interest rates and expanding the range of financial products to attract more investors[166]. Social Responsibility and Compliance - The company emphasizes its commitment to social responsibility, aiming to improve the environment and maintain transparency with investors[177]. - The company has established a stable profit distribution policy to ensure reasonable returns to shareholders[177]. - The company is classified as a key pollutant discharge unit, with specific pollutants monitored and managed according to national standards[180]. - The company has implemented effective pollution control measures, achieving compliance with the Class A standard for wastewater discharge[