SafBon Water(SZ:300262)2021-05-20 16:00Financial Performance - The company experienced a decline in revenue due to project delays and increased management costs caused by the COVID-19 pandemic, impacting cash flow and financial expenses[6]. - The company's operating revenue for 2020 was approximately ¥429 million, a decrease of 55.26% compared to ¥959 million in 2019[21]. - The net profit attributable to shareholders for 2020 was a loss of approximately ¥470 million, representing a decline of 683.98% from a profit of ¥80 million in 2019[21]. - The net cash flow from operating activities improved to approximately ¥188 million in 2020, a significant increase of 292.50% compared to a negative cash flow of ¥98 million in 2019[21]. - The total assets at the end of 2020 were approximately ¥5.31 billion, down 10.34% from ¥5.92 billion at the end of 2019[21]. - The net assets attributable to shareholders decreased by 21.53% to approximately ¥1.85 billion at the end of 2020, compared to ¥2.36 billion at the end of 2019[21]. - The company reported a basic earnings per share of -¥0.7021 for 2020, a decline of 685.08% from ¥0.12 in 2019[21]. - The company achieved operating revenue of 429.05 million yuan, a decrease of 55.26% compared to the same period last year[68]. - The net profit attributable to ordinary shareholders of the listed company was -470.25 million yuan, a decline of 683.98% year-on-year[68]. Business Segments and Operations - The main business segments include industrial water treatment, municipal water treatment, and solid waste treatment, positioning the company as a comprehensive service provider in the environmental energy sector[6]. - The company operates three high-end water technology manufacturing plants and over twenty operational facilities, including water treatment and hazardous waste incineration plants[7]. - The company operates in three main business segments: industrial water treatment, municipal water treatment, and solid waste treatment, with a focus on providing comprehensive technical solutions in the environmental energy sector[30]. - Ba'an Water has three production plants: Nantong Membrane Plant, Austria Air Floatation Plant, and Jiaxing Water Treatment Plant, focusing on product promotion and sales[31]. - The company has developed a comprehensive water treatment system integrating various technologies, enhancing its competitive advantage in the market[57]. - The company is focusing on strategic sectors such as water treatment, solid waste management, and environmental equipment, aiming to provide comprehensive technical solutions[71]. Technology and Innovation - The company has received multiple certifications, including ASME, NSF, and ISO, and holds leading technologies in air flotation and ceramic ultrafiltration[7]. - The company holds multiple certifications, including ASME, NSF, and ISO, and is recognized for its leading technologies in air pollution control and seawater desalination in China[30]. - The company has developed 101 patents, showcasing strong R&D capabilities in water treatment technologies, including advanced systems for municipal water supply and wastewater treatment[53]. - The company has successfully acquired advanced technologies, including the 100% stake in KWI and a controlling stake in ItN Nanovation AG, expanding its capabilities in water treatment[59]. - The company has established a seawater desalination design research institute to enhance its strategic development in the desalination sector[63]. - The company’s advanced nano-ceramic flat membrane technology is widely applied in water reuse projects, targeting industries such as petrochemicals and pharmaceuticals[60]. Market and Growth Prospects - The water treatment industry in China had a market size of RMB 889 billion in 2019, with a projected compound annual growth rate of around 5% over the next three years[9]. - The government aims to improve urban sewage treatment capacity by 2023, which may benefit the company's future projects[9]. - The environmental water treatment industry is expected to maintain growth despite economic fluctuations, indicating resilience in the company's business model[50]. - The company is actively pursuing market expansion by collaborating with large design institutes and water companies in major cities[73]. - The company is focused on expanding its overseas business while managing risks related to international political and economic factors[141]. Corporate Governance and Management - The company is committed to improving its corporate governance structure to ensure stable development and protect shareholder rights[74]. - The management team, led by Chairman Zhang Chunlin, has over 30 years of experience in the environmental water treatment industry, contributing to the company's growth[66]. - The company is actively addressing management risks associated with its expanding scale and complexity by enhancing internal controls and decision-making processes[140]. - The company is investing in talent retention strategies, including research platforms and incentive programs, to mitigate the risk of core technical personnel turnover[138]. Environmental Impact and Compliance - The company has successfully implemented pollution control facilities, with stable operation and good treatment effects for wastewater, waste gas, and solid waste[198]. - The company has received environmental impact report approvals for multiple projects, including the hazardous waste disposal center and various wastewater treatment plants, with completion and acceptance for several projects confirmed[199]. - The company is currently in the acceptance phase for the urban sewage treatment project in Tai'an, with previous projects having received environmental protection acceptance[198]. - The company has ongoing projects in various locations, including Jiangxi and Shandong, with environmental approvals granted for expansions and upgrades[199]. - The company is classified as a key pollutant discharge unit by the environmental protection department[195]. Financial Management and Investments - The company did not declare any cash dividends or stock bonuses for the reporting period, indicating a focus on capital preservation[10]. - The company has a three-year shareholder return plan (2019-2021) emphasizing a minimum cash dividend of 10% of distributable profits in normal circumstances[145]. - The company has not distributed any cash dividends or stock dividends during the reporting period, with a total distributable profit of approximately ¥200.24 million[149]. - The company has committed to avoiding related party transactions and ensuring fair pricing in any unavoidable transactions[156]. - The total approved external guarantee amount at the end of the reporting period was 40 million RMB, with no actual guarantees executed during the period[184]. Challenges and Risks - The company has acknowledged potential policy risks that may arise from macroeconomic changes and will strengthen its research and response to policy adjustments[135]. - The company has a high customer concentration risk due to significant project amounts, leading to a focus on diversifying customer resources and optimizing accounts receivable management[137]. - The company is experiencing a continuous increase in accounts receivable as business scales up, necessitating enhanced management and recovery efforts to mitigate operational risks[139]. Acquisitions and Subsidiaries - The company has completed acquisitions, including KWI and Doosan Hydro Technology, to enhance its product offerings and market reach[75][76]. - The company acquired a 100% stake in Ji'an Tianyuan Sewage Treatment Co., Ltd. and established several new subsidiaries focused on wastewater treatment, with a total of 100% ownership in each[163]. - The company has engaged in acquisitions, including the purchase of Jilin Province Tianyuan Wastewater Treatment Co., Ltd.[120]. Employee and Stock Ownership - The first phase of the employee stock ownership plan raised a total of 150 million RMB, with contributions from 7 key personnel including directors and senior management[170]. - A total of 12,813,417 shares were purchased under the employee stock ownership plan, representing approximately 1.91% of the company's total share capital, with a transaction amount of 133.65 million RMB at an average price of 10.43 RMB per share[172]. - The employee stock ownership plan's lock-up period is set for 12 months, from September 7, 2017, to September 6, 2018[172].