WELL.E(SZ:300190)2022-04-15 16:00Financial Performance - The company reported a significant increase in revenue, with a total of 781,587,620.00 CNY for the year 2021, reflecting a robust financial performance[11]. - The company's operating revenue for 2021 was ¥3,153,242,136.82, a decrease of 1.55% compared to ¥3,202,734,193.99 in 2020[24]. - The net profit attributable to shareholders for 2021 was ¥186,250,872.97, down 47.87% from ¥357,309,344.37 in 2020[24]. - The net cash flow from operating activities decreased by 10.29% to ¥325,378,788.32 in 2021 from ¥362,711,408.89 in 2020[24]. - Basic earnings per share dropped to ¥0.24 in 2021, a decline of 47.83% from ¥0.46 in 2020[24]. - The total assets at the end of 2021 increased by 8.50% to ¥10,647,452,922.92 from ¥9,813,021,924.24 at the end of 2020[24]. - The net assets attributable to shareholders rose by 2.43% to ¥4,379,167,331.79 at the end of 2021 compared to ¥4,275,201,748.98 at the end of 2020[24]. - The company reported a significant decrease in net profit excluding non-recurring gains and losses, which was ¥159,201,609.33 in 2021, down 47.25% from ¥301,777,840.03 in 2020[24]. - The company's operating profit was ¥185,545,011.54, down 54.87% year-on-year, and net profit attributable to shareholders was ¥186,250,872.97, a decline of 47.87%[48]. - The company reported a significant increase in financial expenses compared to the previous year, impacting profit margins[48]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.00 CNY per 10 shares to all shareholders, indicating a commitment to returning value to investors[11]. - The proposed cash dividend distribution for 2021 is CNY 1 per 10 shares, totaling CNY 78,158,762, based on a total of 781,587,620 shares[166]. - The total distributable profit available for shareholders after accounting for legal reserves and retained earnings is CNY 609,180,451.75[166]. Market and Competitive Landscape - The competitive landscape in the environmental sector has intensified, with numerous strong competitors entering the market, prompting the company to enhance its R&D efforts and maintain its technological edge[6]. - The company is actively pursuing mergers and acquisitions to expand its business and market presence, which may introduce additional financial risks if the acquired entities do not perform as expected[10]. - The company is focusing on organic waste resource utilization, emphasizing digital transformation and R&D innovation to enhance competitiveness and industry standing[42]. - The company aims to leverage policy opportunities to expand its anaerobic technology across various sectors, aiming to increase market share and operational performance[40]. - The company is exploring market expansion opportunities to enhance its service offerings in environmental technology[176]. Operational Challenges and Risks - The company is facing risks from macroeconomic fluctuations, particularly due to the ongoing COVID-19 pandemic, which may impact the environmental industry significantly[5]. - Rising material costs due to various factors, including the pandemic, pose a risk to project execution and operational costs, leading the company to implement measures to manage procurement effectively[8]. - The company is closely monitoring policy changes in the environmental sector to capitalize on opportunities and adapt its business strategies accordingly[8]. - The company is focusing on improving its accounts receivable management to mitigate risks associated with high receivables, ensuring better cash flow and reducing potential bad debts[11]. - The company will emphasize cash flow management and accounts receivable collection to improve operational cash flow and reduce financial risks[115]. Research and Development - The company emphasizes research and development, expanding its R&D team and enhancing the efficiency of technology development[50]. - The company has been engaged in leachate treatment for nearly 20 years, possessing advanced core technologies such as MBR, anaerobic, ultrafiltration, nanofiltration, and reverse osmosis[36]. - The company has established a group industry research institute to accelerate the R&D process across various business units[53]. - The company's R&D investment amounted to approximately ¥116.86 million in 2021, representing 3.71% of total revenue, an increase from 3.45% in 2020[74]. - The number of R&D personnel increased by 10.74% from 242 in 2020 to 268 in 2021, with a notable rise in the proportion of personnel holding bachelor's degrees[74]. Environmental Compliance and Initiatives - The company is classified as a key pollutant discharge unit, with specific emissions data reported for various pollutants, including COD at 6.6 tons and ammonia nitrogen at 1.32 tons[175]. - The company has committed to continuous improvement of its internal control system to adapt to business growth and external market changes[172]. - The company is focused on enhancing its environmental compliance and reducing emissions across its operations[176]. - The company plans to invest in new technologies to further improve its wastewater treatment processes[177]. - The company has successfully implemented all environmental protection facilities as per the environmental impact assessment approvals from relevant authorities[181]. Governance and Management - The company has a board of directors consisting of 9 members, including 3 independent directors, complying with legal and regulatory requirements[121]. - The company has established a complete internal control system in compliance with relevant laws and regulations, enhancing governance and risk management capabilities[168]. - The company has a strategic and investment committee, a compensation and assessment committee, an audit committee, and a nomination committee to oversee various functions[121]. - The company actively engages in social responsibility initiatives, contributing to environmental governance and social harmony[122]. - The company has a differentiated compensation policy that includes basic salary, performance pay, social security, and housing fund, aimed at enhancing employee motivation and belonging[159]. Future Outlook and Strategic Plans - Future outlook includes a projected revenue growth of 15% for 2022, driven by new product launches and market expansion strategies[128]. - The company plans to invest 91,723.87 million in various projects, with 27,517.16 million allocated for working capital[104]. - The company aims to strengthen its market position amid increasing competition in the environmental protection industry, driven by stringent regulations and growing market demand[110]. - The company plans to increase its workforce by 10% in 2022 to support growth initiatives and enhance service delivery[130]. - The company will continue to advance its digital transformation, aiming to complete the enterprise management software platform to optimize business processes and improve operational efficiency[114].