Bossco(SZ:300422)2020-04-28 16:00Financial Performance - The company reported a profit distribution plan for 2019, proposing a cash dividend of 1 RMB per 10 shares based on a total share capital of 355,835,250 shares[3]. - The financial report for 2019 was audited by Tianzhi International Accounting Firm, which issued a standard unqualified audit opinion[3]. - The company's operating revenue for 2019 was CNY 3,243,604,062.56, representing a 19.07% increase compared to CNY 2,724,023,569.51 in 2018[14]. - Net profit attributable to shareholders for 2019 was CNY 282,444,334.14, a 20.30% increase from CNY 235,263,045.52 in 2018[14]. - The net profit excluding non-recurring gains and losses was CNY 259,377,506.32, reflecting a 10.01% increase from CNY 236,252,344.41 in 2018[14]. - The net cash flow from operating activities for 2019 was CNY 104,826,712.89, a significant recovery from a negative cash flow of CNY -39,798,716.07 in 2018[14]. - Total assets at the end of 2019 reached CNY 9,182,311,354.05, marking a 40.54% increase from CNY 6,525,506,046.43 at the end of 2018[14]. - The company's total equity attributable to shareholders increased by 16.32% to CNY 1,789,994,263.38 in 2019 from CNY 1,531,273,364.33 in 2018[14]. - The basic earnings per share for 2019 was CNY 0.79, up 19.70% from CNY 0.66 in 2018[14]. - The diluted earnings per share for 2019 was CNY 0.78, reflecting a 16.42% increase from CNY 0.67 in 2018[14]. Business Operations and Projects - The company engaged in comprehensive environmental services, focusing on water treatment, soil remediation, and clean chemical production during the reporting period[24]. - The company has developed the MCO integrated intelligent sewage treatment system, which has been successfully applied in multiple rural sewage treatment projects, significantly improving production efficiency while reducing costs by approximately 30%[26]. - The MCI multi-stage contact bioreactor has been designed to meet the discharge standards of GB18918-2002, with the ability to adapt to different water quality requirements, and has been successfully implemented in various urban and rural sewage treatment projects[28]. - The UCAR anaerobic reactor has been developed to address high-concentration organic wastewater treatment, achieving over 20% reduction in production costs and successfully applied in several industrial wastewater treatment projects[30]. - The company has successfully industrialized and exported its two series of chlorine dioxide preparation systems, achieving treatment efficiency at an internationally advanced level[31]. - The company has developed a sodium hypochlorite preparation system that effectively addresses safety risks associated with hazardous chemicals, suitable for disinfection in densely populated areas[36]. - The company has developed an integrated smart sanitation cloud platform, enhancing urban and rural waste management services[43]. - The company has established multiple business models, including EPC, BOT, and PPP, to enhance project delivery and operational efficiency[49]. - The company's environmental governance projects include significant contracts such as the Nanning urban river black and odorous water treatment project, contributing to revenue growth[53]. Research and Development - The company has achieved a patent technology conversion rate exceeding 70%, with a total of 207 authorized patents, including 34 invention patents[72]. - The company has increased its research and development investment to 5.04% of revenue, with a year-over-year growth of 79.67%[72]. - The company has a high-quality talent team, including many with overseas study backgrounds, enhancing its competitive advantage in technology research and innovation[79]. - The company has 820 R&D personnel, including over 110 senior titles, 400 mid-level titles, 30 PhDs, and 260 master's degrees[80]. - The company has developed various new technologies, including a high-temperature chlorine dioxide bleaching method and a process for producing chlorine dioxide without generating solid waste[91]. - The company is focusing on expanding its market presence through innovative environmental solutions and technologies[90]. - The company is actively involved in the development of new products aimed at improving waste treatment processes[90]. - The company is leveraging its patented technologies to enhance its service offerings in environmental remediation[91]. Market Trends and Projections - The environmental protection industry is entering a phase of quality improvement and efficiency enhancement, with a projected growth rate of 15%-20% for water environment protection products and services expected to grow by 30%-40% over the next five years[56]. - The investment required to meet the goals set by the "Water Ten Measures" is estimated to be around 4-5 trillion yuan by 2020, with approximately 2 trillion yuan needed in the next three years[56]. - The market space for black and odorous water treatment from 2018 to 2020 is estimated to be around 438.7 billion yuan, assuming 100% completion in major cities[57]. - The rural sewage treatment industry is expected to reach a market value of 84 billion yuan by 2020, with projections exceeding 200 billion yuan by 2035[59]. - The soil remediation market is projected to have a market space of approximately 8.84 trillion yuan for agricultural land and 1 trillion yuan for industrial sites[61]. - The hazardous waste disposal industry is expected to reach a scale of 100 billion yuan by 2020, assuming a compound annual growth rate of 12%[63]. - The environmental equipment manufacturing industry is projected to exceed 1.2 trillion yuan in output value by 2020, with a compound annual growth rate of over 20% since 2010[64]. Financial Management and Investments - Cash and cash equivalents grew by 66.25% year-over-year, driven by increased sales collections and bank loans[68]. - The company's long-term receivables rose by 79.17% compared to the previous year, attributed to an increase in project settlements[68]. - The company has made significant investments in environmental projects, with a focus on green and intelligent manufacturing equipment[171]. - The company raised a total of RMB 430 million through the issuance of 4.3 million convertible bonds at a par value of RMB 100 each, with a net amount of RMB 420.89 million after deducting issuance costs[183]. - The company has fully utilized the funds raised from a non-public offering of shares, totaling ¥53,719.14 million, as of December 31, 2019[177]. - The company has committed to investing in various projects, with a total commitment of RMB 53.62 million, of which RMB 53.72 million has been invested cumulatively[179]. Compliance and Certifications - The company has obtained various construction qualifications, including a first-class general contracting qualification for municipal public works, valid until June 17, 2021[95]. - The company has a safety production license valid until November 23, 2020, for construction safety, ensuring compliance with safety regulations[95]. - The company has received evaluation certificates for pollution control facility operation capabilities, including a secondary level for domestic sewage treatment, valid until November 27, 2022[95]. - The company has certifications for urban centralized sewage treatment facility operation services, with a first-level certification valid until November 5, 2022[95]. - The company holds multiple environmental impact assessment qualifications, including a Class A certificate for environmental impact reports valid until May 30, 2020[97]. Strategic Partnerships and Collaborations - The company signed a strategic cooperation framework agreement with Guangxi Environmental Protection Industry Investment Group to enhance collaboration in wastewater treatment, soil remediation, and solid waste disposal, which is expected to provide more business resources and funding support[123]. - The company is actively participating in the "Belt and Road" initiative to strengthen its international brand presence[114]. - The company has hosted or participated in several significant research projects, including a national-level project on large-scale biogas engineering and a key research project on soil remediation technology[85].