CEEP(SZ:300172)2022-04-24 16:00Financial Performance - The company's operating revenue for 2021 was ¥874,384,526.15, a decrease of 4.94% compared to ¥919,833,075.77 in 2020[18]. - The net profit attributable to shareholders for 2021 was ¥106,556,615.58, down 39.80% from ¥177,012,440.92 in 2020[18]. - The net profit after deducting non-recurring gains and losses was ¥72,669,794.42, a decline of 47.04% from ¥137,225,157.23 in 2020[18]. - The basic earnings per share for 2021 were ¥0.16, a decrease of 38.46% from ¥0.26 in 2020[18]. - The weighted average return on net assets was 6.32% in 2021, down from 11.38% in 2020, a decrease of 5.06 percentage points[18]. - The company's total revenue for Q1, Q2, Q3, and Q4 was approximately $158.73 million, $250.17 million, $189.57 million, and $275.92 million respectively, showing a significant increase in Q2 and Q4[20]. - The net profit attributable to shareholders for the same quarters was $21.21 million, $40.15 million, $17.96 million, and $27.23 million, indicating strong performance in Q2[20]. - The company's total operating revenue for 2021 was approximately 874.38 million yuan, a decrease of 4.94% compared to 2020[80]. - Water services contributed 625.60 million yuan, accounting for 71.55% of total revenue, while solid waste treatment revenue dropped by 32.41% to 180.50 million yuan[80]. - The company achieved a revenue increase of 7.61% in the water services sector compared to the previous year[80]. - The company’s international revenue increased by 192.60% to 25.27 million yuan, while domestic revenue decreased by 6.81%[82]. Cash Flow and Investments - The net cash flow from operating activities increased by 28.56% to ¥116,555,530.40 in 2021, compared to ¥90,664,943.13 in 2020[18]. - The net cash flow from investment activities was -¥207,372,461.00, a significant decline of 174.08% compared to the previous year, mainly due to increased purchases of financial products[100]. - The net cash flow from financing activities improved to ¥4,868,300.54, a 127.95% increase, attributed to reduced cash payments for debt repayment[100]. - Operating cash inflow totaled ¥731,562,545.11 in 2021, showing a slight decrease of 0.01% compared to the previous year[99]. - The cash and cash equivalents net decrease was -¥85,948,630.06, reflecting a significant decline of 3,456.69% compared to the previous year[99]. - As of the end of 2021, cash and cash equivalents decreased to CNY 48,104,004.73, representing 1.73% of total assets, down from 5.12% at the beginning of the year, a decrease of 3.39%[102]. Market Position and Industry Outlook - The company operates in the ecological environment governance industry, which is expected to grow significantly due to strong policy support and increasing market demand[27]. - The water treatment sector is transitioning towards comprehensive management of water resources, with a focus on zero discharge and resource reuse, indicating a growing market opportunity[28]. - The solid waste management industry is expanding, driven by policies promoting waste reduction and resource recovery, presenting further investment opportunities[29]. - The flue gas treatment market is evolving to include non-electric sectors, with a focus on carbon reduction technologies, aligning with national carbon neutrality goals[30]. - The company anticipates significant market opportunities in wastewater treatment, resource utilization, and zero discharge due to the implementation of various national policies[37]. - The solid waste industry is projected to see a comprehensive utilization rate of 60% for major solid waste by 2025, with a focus on sludge and biomass coupling treatment[39]. - The market for flue gas governance is anticipated to expand significantly, with a focus on ultra-low emissions and comprehensive governance in key industries[41]. Technological Innovation and R&D - The company has developed several core technologies, including high-salt wastewater zero discharge technology and sludge drying coupling treatment technology, which have been recognized in national and provincial awards[59]. - The company is developing a zero liquid discharge (ZLD) technology aimed at resource recovery from wastewater and waste salt, currently in the pilot stage[94]. - The company is focusing on the development of self-owned intellectual property products, materials, and equipment for reduction and recycling, particularly in the field of pollution-resistant reverse osmosis membranes[95]. - The company is actively involved in the development of technologies for pollution control, aiming to contribute to carbon peak and carbon neutrality goals[41]. - The company is enhancing its technological innovation capabilities by integrating IoT, AI, and big data into the environmental protection industry, aiming for digital and intelligent transformation[117]. - The company has established a national-level environmental industry technology innovation strategic alliance, undertaking over 20 major scientific and industrialization projects[61]. Corporate Governance and Management - The company maintains independence from its controlling shareholders in business, personnel, assets, institutions, and finance, ensuring autonomous operational capabilities[138]. - The company has established an independent financial accounting department with a separate accounting system and financial management protocols[139]. - The company has a clear ownership of all assets related to its business activities, ensuring complete control and management[138]. - The company has implemented a talent strategy focused on employee health, safety, and satisfaction, enhancing overall employee quality[190]. - The company has established a transparent performance evaluation and incentive mechanism to enhance employee motivation and management efficiency[135]. - The company has a performance appraisal system that links individual performance to the company's operational development[164]. Risks and Challenges - The company faces significant risks from the ongoing COVID-19 pandemic, which could adversely impact its financial performance and operational management if not effectively controlled[123]. - The prices of steel, copper, and chemical products have increased significantly due to the pandemic and the Russia-Ukraine conflict, with carbon steel plate prices rising approximately 43% from 4,610 RMB/ton in January 2021 to a peak of 6,580 RMB/ton in May 2021[124]. - The company has a significant amount of accounts receivable, which poses cash flow risks, but its clients are primarily government departments and large enterprises with strong creditworthiness[129]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of ¥0.50 per 10 shares to all shareholders, based on a total of 676,710,000 shares[5]. - The company plans to distribute a cash dividend of RMB 0.50 per share (including tax), totaling RMB 33,835,500, which represents 31.75% of the net profit attributable to shareholders for the year 2021[169]. - The total distributable profit available to shareholders as of December 31, 2021, is RMB 919,125,980.16[169]. - The cash dividend amount represents 100% of the total profit distribution for the period[168]. - The company has a cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring transparency and compliance[167]. Employee and Talent Management - The company has a total of 574 employees, with 231 in production, 37 in sales, 232 in technical roles, 18 in finance, and 56 in administration[163]. - The management team includes professionals with significant experience in the energy and environmental sectors, enhancing the company's strategic capabilities[150]. - The company emphasizes talent development and management, implementing incentive plans to drive performance and ensure long-term growth[67]. - The company has implemented an annual training plan that includes both internal and external training programs[165]. Environmental Responsibility - The company emphasizes environmental responsibility and aims to contribute to a cleaner environment while fulfilling its social responsibilities[189]. - The company has established a stable wastewater treatment facility that meets the GB18918-2002 Class A standard, ensuring effective pollution control[186]. - The company faced an administrative penalty of 170,000 yuan due to exceeding wastewater discharge standards, attributed to an increased proportion of industrial wastewater[188].