CECM(SZ:300385)2021-04-09 16:00Financial Performance - The company reported a significant loss due to a goodwill impairment of ¥519,365,862.86 related to the acquisition of Nanjing Excellence[4]. - The company's operating revenue for 2020 was ¥1,487,949,564.13, representing a 19.75% increase compared to ¥1,242,529,677.61 in 2019[26]. - The net profit attributable to shareholders was -¥335,643,313.67, a decrease of 473.60% from ¥89,840,477.57 in 2019[26]. - The total assets at the end of 2020 were ¥3,837,629,303.97, reflecting a 15.50% increase from ¥3,322,725,939.11 at the end of 2019[26]. - The company reported a basic earnings per share of -¥1.0075 for 2020, compared to ¥0.2697 in 2019, indicating a significant decline[26]. - The cash flow from operating activities was ¥106,742,864.80, down 5.89% from ¥113,419,342.44 in 2019[26]. - The total net assets attributable to shareholders decreased by 29.34% to ¥861,602,351.21 at the end of 2020 from ¥1,219,306,156.93 at the end of 2019[26]. - The company reported a quarterly operating revenue of ¥578,049,930.43 in Q4 2020, the highest among the four quarters[29]. - The company reported a net profit attributable to shareholders of -335,643,313.67 yuan, a decrease of 473.60% compared to the same period last year, primarily due to intensified competition and a decline in gross profit margins[41]. - The company achieved operating revenue of ¥1,487,949,564.13, representing a year-on-year growth of 19.75%[57]. - The company reported a net loss of ¥335,643,313.67 for the year due to increased competition and goodwill impairment related to its subsidiary[57]. - The company reported a significant impairment loss of approximately ¥528.62 million due to goodwill impairment[95]. - The company reported a total revenue of 384.60 million yuan for the year 2020, with a net profit margin of 57.1%[106]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year 2020, representing a growth of 20% compared to the previous year[145]. - The company reported a net profit of 50 million RMB for the year 2020, representing a 10% increase compared to the previous year[157]. - The total revenue for 2020 reached 500 million RMB, which is a 15% growth year-over-year[158]. Strategic Initiatives - The company plans to enhance its refined management level to reduce costs and improve efficiency in response to the intensified competition in the environmental protection industry[6]. - The company will closely monitor changes in industry policies to strategically expand and diversify its operations, thereby increasing its core competitiveness[7]. - The company aims to strengthen its independent research and development capabilities to maintain its technological advantages and improve brand strength[8]. - The company aims to become a leading provider of comprehensive environmental governance solutions, focusing on flue gas purification and hazardous waste disposal systems[37]. - The company is focusing on the non-electric industry for ultra-low emission transformations, seizing new development opportunities in sectors like steel metallurgy[45]. - The company plans to explore new disposal technologies and move towards resource recovery, aiming to become a leading provider of comprehensive environmental governance solutions[47]. - The company aims to leverage its brand and technological advantages while actively monitoring policy changes in the waste disposal sector[44]. - The company is focusing on technology innovation and has made significant progress in various research projects related to waste treatment technologies[50]. - The company aims to strengthen enterprise management and culture, emphasizing cost reduction and efficiency improvement as key priorities for 2021[120]. - The company plans to enhance its technology innovation mechanisms to improve innovation efficiency and explore cutting-edge technologies[123]. - The company has committed to achieving carbon neutrality by 2025, aligning with national environmental policies and enhancing its market competitiveness[158]. Acquisitions and Investments - The company has completed acquisitions of Nanjing Excellence and Shanghai Changying, which have expanded its business but also increased financial pressure[12]. - The acquisition of Shanghai Changying was completed in July 2020, expanding the company's hazardous waste disposal market into Shanghai and providing a new growth point for performance[39]. - The company completed the acquisition of 52% of Shanghai Changying Environmental Services, increasing its stake to 72% and enhancing its position in the environmental industry[59]. - The company has established two new subsidiaries: Wuxi Xuelang Environmental Engineering Technology Co., Ltd. and Wuxi Xuelang Environmental Equipment Technology Co., Ltd.[80]. - The company has invested 10.8 million yuan in establishing an environmental industry merger fund, indicating a strategic move towards expansion[114]. - The company completed a major asset restructuring by acquiring 52% of Shanghai Changying Environmental Services Co., Ltd., increasing its total ownership to 72%[80]. - The company signed a contract with Shanghai Environmental Engineering Design Research Institute for the purchase of flue gas purification system equipment, with a total contract amount of RMB 16.9 million[185]. - A contract was signed with Wuxi Jiangfeng Resource Recycling Co., Ltd. for an environmental safety improvement project, totaling RMB 57.2 million[185]. Market and Revenue Growth - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[145]. - The company provided a positive outlook for 2021, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[145]. - The company plans to expand its market presence by entering three new provinces in 2021, aiming for a 25% increase in market share[158]. - The company has set a performance guidance of 1.8 billion RMB in revenue for the next year, indicating a strong growth trajectory[147]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[151]. - The company introduced two new products in the environmental technology sector, which are anticipated to contribute an additional 200 million RMB in revenue[162]. - The company aims to reduce operational costs by 15% through efficiency improvements and automation initiatives[162]. Compliance and Governance - The company has maintained compliance with national laws and regulations since January 1, 2017[138]. - The company has not faced any public reprimands from the stock exchange in the last twelve months[138]. - The company has committed to protecting investors' legal rights and ensuring effective compensation for any losses[156]. - The company guarantees the authenticity, accuracy, and completeness of the information provided during the restructuring, with accountability for any misleading statements or omissions that may cause investor losses[150]. - The company has pledged to ensure that all documents related to the restructuring are consistent and accurately signed by authorized personnel[149]. - The company has not experienced any major litigation or arbitration matters during the reporting period[177]. - The company has maintained a clean integrity status with no significant debts or court judgments unfulfilled during the reporting period[179]. - The company has not faced any delisting situations following the annual report disclosure[176]. Research and Development - The company’s R&D investment for 2020 was approximately ¥50.86 million, representing 3.42% of total revenue[90]. - The company has committed to increasing R&D investment by 15% in 2021 to foster innovation and technology advancement[159]. - Investment in new technologies and product development increased by 30%, totaling 300 million RMB in 2020, focusing on sustainable environmental solutions[146]. - The R&D budget has been increased to 200 million RMB, emphasizing innovation in environmental technology[152]. Risk Management - The company faces risks from rising raw material prices, particularly steel, which could impact production costs[9]. - The company is implementing strict management of accounts receivable to ensure timely collection and minimize financial risks[11]. - The company has not disclosed any major contracts affecting revenue recognition during the reporting period[195]. - The company has entrusted 16,500 million CNY in bank wealth management products, with no overdue amounts reported[200]. - There are no significant risks associated with the entrusted wealth management, as there are no expected losses on principal or other impairment risks[200].