QSY Tech(SZ:300437)2023-03-29 16:00Financial Performance - The company achieved operating revenue of 1.805 billion RMB in 2022, an increase of 10.18% compared to the previous year[5]. - The net profit attributable to shareholders was -44 million RMB, a decrease of 148.79% year-on-year, primarily due to a loss of significant influence over Anhui Zhongxu Environmental Construction Co., Ltd.[5]. - The total profit was negatively impacted by 138 million RMB due to the revaluation of remaining equity after losing significant influence over the aforementioned company[5]. - The company's operating revenue for 2022 was ¥1,804,723,664.35, an increase of 10.18% compared to ¥1,637,922,414.58 in 2021[24]. - The net profit attributable to shareholders was -¥43,937,933.19, representing a decrease of 148.79% from ¥90,057,328.22 in the previous year[24]. - The net cash flow from operating activities decreased by 45.59% to ¥177,653,539.15 from ¥326,537,270.53 in 2021[24]. - The total assets at the end of 2022 were ¥3,130,513,886.74, down 12.66% from ¥3,584,419,971.31 at the end of 2021[24]. - The company reported a basic earnings per share of -¥0.1696, a decline of 142.26% from ¥0.4013 in 2021[24]. - The weighted average return on equity was -2.75%, a decrease of 8.61% from 5.86% in the previous year[24]. - The company experienced a significant drop in net profit after deducting non-recurring gains and losses, with a figure of -¥50,036,584.40 for 2022 compared to ¥83,154,045.67 in 2021, a decline of 160.17%[24]. Business Operations - The company operates in the water treatment agent and derivative products sector, which is critical given the increasing water resource scarcity in China[35]. - The company primarily engages in the production and sales of water treatment agents, with a significant capacity and a diverse product range including organic phosphorus and polymer products[45]. - The company has an annual production capacity of 270,000 tons of water treatment agents, positioning it as a leading player in the industry[40]. - The company has established a research team comprising experts from the Chinese Academy of Sciences and industry specialists to strengthen its R&D capabilities[41]. - The company has built long-term partnerships with various domestic and international clients, ensuring high customer satisfaction and loyalty[40]. Market Trends and Strategies - The global water treatment chemicals market was valued at $34.46 billion in 2018 and is projected to reach $46.56 billion by 2023, with a CAGR of 6.20%[39]. - The industrial water treatment chemicals market size was $11.67 billion in 2018, expected to grow to $16.23 billion by 2023, reflecting a CAGR of 6.80%[39]. - The company aims to enhance its core competitiveness by developing new green and environmentally friendly water treatment products[41]. - The company plans to expand its product range and application scope, focusing on high-margin fine chemical products[41]. - The company is committed to closely monitoring national industrial policies and market dynamics to enhance its production and sales of water treatment agents[40]. Financial Management and Risks - There are no major risks affecting the company's ability to continue as a going concern[6]. - The company faces risks from raw material price fluctuations, which could impact gross margins and profitability, and plans to strengthen long-term partnerships with quality suppliers[108]. - The company is aware of potential delays in project construction and will enhance communication with administrative departments to mitigate risks[109]. - Environmental regulations may increase operational costs, and the company is committed to maintaining safety standards and emergency response mechanisms[109]. - The company is exposed to international trade risks, with a significant portion of revenue coming from exports, and will monitor global trade policies closely[110]. Research and Development - The company emphasizes research and development, supported by a team of experts including academicians and PhDs, to drive innovation and improve industry competitiveness[55]. - The company has developed over 10 types of water quality monitoring sensors for industrial circulation water systems, enhancing its product offerings and market competitiveness[79]. - The company is focusing on the development of intelligent wastewater treatment processes, significantly shortening the research and development time for wastewater treatment technologies[80]. - The company has invested 100 million RMB in R&D for new technologies aimed at improving water treatment efficiency[140]. - The company's R&D investment amounted to ¥22,245,941.70 in 2022, representing 1.23% of total revenue, a decrease from 1.69% in 2021[82]. Corporate Governance - The company has established a governance structure with a board of 9 directors, including 3 independent directors and 6 non-independent directors, ensuring effective decision-making and supervision[172]. - The company has a structured remuneration decision-making process based on annual performance targets[148]. - The audit committee held meetings to review the annual audit work plan and internal control evaluation reports, ensuring compliance with regulations[156]. - The independent directors actively monitored the company's operational status and risks, ensuring the protection of shareholders' rights[155]. - The company has implemented a comprehensive internal control system, with regular audits conducted by the internal audit department to ensure compliance with internal control standards[174]. Environmental Compliance - The company adheres to various environmental protection laws and regulations, ensuring compliance in its production processes[196]. - The company has received environmental impact approvals for multiple projects, including a 50,000-ton water treatment agent project approved on December 25, 2009[197]. - The company has implemented various pollution control measures to comply with industry discharge standards[199]. - The company is focused on reducing heavy metal emissions, with standards set at 0.5 mg/Nm³ for lead and 0.1 mg/Nm³ for cadmium[200]. - The company is actively engaged in the treatment of wastewater and has implemented measures to ensure compliance with national standards[200]. Future Outlook - The company aims to enhance its core competitiveness by expanding the production scale of water treatment agents and developing new green and environmentally friendly products in 2023[105]. - The company plans to accelerate the construction of the phosphorus pentachloride project and improve its upstream and downstream industrial chain layout to increase product variety and technological content[105]. - The company will leverage the Water Cloud Trace Internet platform to create a new intelligent operation and maintenance model, focusing on market promotion and strategic partnerships with state-owned enterprises[106]. - In 2023, the company will focus on talent development, aiming to build a high-quality talent team to support long-term growth[107]. - The company has outlined future growth strategies that include potential mergers and acquisitions to strengthen its market position[200].