玉禾田(300815) - 2021 Q4 - 年度财报

Section 1 Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, a detailed table of contents, and definitions of key terms used throughout the report, ensuring clarity and ease of navigation Important Notes This section includes the company's board, supervisory board, and senior management's assurance of the annual report's content, alerts investors to forward-looking statement risks, and discloses the 2021 profit distribution plan - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report, with no false records, misleading statements, or major omissions[7] - The company's profit distribution plan is to distribute a cash dividend of CNY 2.56 (tax inclusive) per 10 shares to all shareholders, based on 276,800,000 shares, and to convert 2 shares from capital reserves per 10 shares[7] Table of Contents This section lists the overall structure of the annual report and the page ranges for each chapter, facilitating reader access Definitions This section provides definitions for common terms used in the report, including company abbreviations, key related parties, business models (e.g., PPP, BOT, TOT), and financial timeframes, ensuring accurate information understanding - The reporting period refers to January 1, 2021, to December 31, 2021[20] - The PPP model is defined as a partnership between government and social capital, a project operation model in public infrastructure[17] Section 2 Company Profile and Key Financial Indicators This section presents the company's fundamental information, including registration details, contact methods, and key consolidated financial data and indicators for 2021, reflecting its overall performance I. Company Information This section provides the company's basic registration details, such as stock abbreviation, code, legal representative, and registered and office addresses Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Yuhetian | | Stock Code | 300815 | | Company Chinese Name | Yuhetian Environmental Development Group Co., Ltd. | | Legal Representative | Bao Jiangyong | | Registered Address | Building 5, E-commerce Industrial Park, Zhumeng Town, Tianxin Avenue, Yuexi County, Anqing City, Anhui Province | | Office Address | 18th Floor, Block A, Haisong Building, Tairan 9th Road, Chegongmiao, Futian District, Shenzhen | II. Contacts and Contact Information This section lists the names, contact addresses, phone numbers, faxes, and email addresses of the company's board secretary and securities affairs representatives, facilitating investor communication - The Board Secretary is Wang Dongyan, and the Securities Affairs Representatives are Deng Na and Guan Xiaofen[25] III. Information Disclosure and Location for Inspection This section specifies the platforms for annual report disclosure and locations for inspection, ensuring information transparency - The company's designated securities exchange website for annual report disclosure is the Shenzhen Stock Exchange (http://www.szse.cn), and designated media include "China Securities Journal," "Shanghai Securities News," "Securities Times," "Securities Daily," and Juchao Information Network (http://www.cninfo.com.cn)[26](index=26&type=chunk) IV. Other Relevant Information This section discloses information about the accounting firm and sponsor institution engaged by the company - The accounting firm engaged by the company is Lixin Certified Public Accountants (Special General Partnership), with signing accountants Li Jianjun and Huang Zao[29] - The sponsor institution engaged by the company is Ping An Securities Co., Ltd., with sponsor representatives Qin Jianhua and Wang Zhi[29] V. Key Accounting Data and Financial Indicators This section presents the company's key consolidated accounting data and financial indicators for 2021 and the preceding two years, reflecting its overall operating performance and financial condition Key Accounting Data and Financial Indicators for 2021 | Indicator | 2021 (CNY) | 2020 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,833,627,585.37 | 4,315,219,469.31 | 12.01% | | Net Profit Attributable to Shareholders of Listed Company | 472,528,405.37 | 631,042,009.37 | -25.12% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 460,175,350.03 | 627,974,190.81 | -26.72% | | Net Cash Flow from Operating Activities | 619,773,596.89 | 521,753,417.33 | 18.79% | | Basic Earnings Per Share (CNY/share) | 1.71 | 2.33 | -26.61% | | Weighted Average Return on Net Assets | 17.38% | 28.98% | -11.60% | | Total Assets (Year-end) | 5,222,277,044.53 | 4,547,848,286.89 | 14.83% | | Net Assets Attributable to Shareholders of Listed Company (Year-end) | 2,880,588,726.04 | 2,558,655,860.90 | 12.58% | VI. Key Quarterly Financial Indicators This section provides the company's key financial indicators for each quarter of 2021, including operating revenue, net profit attributable to shareholders, net profit excluding non-recurring gains and losses, and net cash flow from operating activities 2021 Key Quarterly Financial Indicators (Unit: CNY) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,183,018,673.12 | 1,215,276,126.02 | 1,170,386,099.32 | 1,264,946,686.91 | | Net Profit Attributable to Shareholders of Listed Company | 150,408,502.20 | 164,358,805.28 | 108,357,494.15 | 49,403,603.74 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 148,114,604.21 | 159,178,695.24 | 103,610,438.02 | 49,271,612.56 | | Net Cash Flow from Operating Activities | 31,463,188.86 | 147,558,767.32 | 192,846,504.44 | 247,905,136.27 | VII. Differences in Accounting Data under Domestic and Overseas Accounting Standards This section states that there were no differences in net profit and net assets between financial reports disclosed under International or overseas accounting standards and Chinese Accounting Standards during the reporting period - The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[34] - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[35] VIII. Non-recurring Gains and Losses and Amounts This section details the company's non-recurring gains and losses and their amounts for 2021 and the preceding two years, along with explanations for each item Non-recurring Gains and Losses for 2021 (Unit: CNY) | Item | 2021 Amount | 2020 Amount | 2019 Amount | Explanation | | :--- | :--- | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 926,667.92 | -6,775,135.40 | -4,132,101.29 | Primarily gains from disposal of fixed assets | | Government Subsidies Included in Current Profit and Loss | 18,993,576.66 | 34,889,379.60 | 23,701,310.40 | Primarily government subsidies | | Gains and Losses from Entrusted Investment or Asset Management | 7,847,704.35 | 8,461,139.04 | - | Primarily income from investment in wealth management products | | Other Non-operating Income and Expenses Apart from the Above | -9,736,100.14 | -32,026,109.52 | -4,132,976.08 | Primarily external donations, work-related injury compensation, and litigation expenses | | Less: Income Tax Impact | 4,849,162.23 | 887,384.70 | 3,355,133.59 | - | | Impact on Minority Interests (After Tax) | 829,631.22 | 594,070.46 | 1,185,857.00 | - | | Total | 12,353,055.34 | 3,067,818.56 | 11,019,490.28 | -- | Section 3 Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, main business operations, core competencies, and future development outlook, along with a review of significant awards and risks I. Industry Overview During the Reporting Period This section analyzes the environmental sanitation service industry, including the development stages, characteristics, competitive landscape, and the company's position in municipal sanitation and property cleaning, along with key performance drivers - The company focuses on environmental sanitation services, with core businesses in municipal sanitation and property cleaning, becoming a comprehensive urban and rural environmental integrated operation service provider with significant scale and influence in the industry[45] - The market-oriented reform of municipal sanitation has entered a large-scale promotion phase, ushering in a golden period for the industry, with operating models primarily including government procurement of services, concession, and PPP[50] - The property cleaning industry has a large market space but low market concentration, with few nationwide enterprises, and high-end services showing greater development potential[56] - National strategies (such as the "14th Five-Year Plan," 2035 long-term goals, and "Dual Carbon Strategy") and industrial policies (such as "Waste-Free City" construction and household waste classification) are the main drivers of the company's performance growth[59][60] 1. Municipal Sanitation Business Municipal sanitation business covers integrated management of sweeping, cleaning, waste collection and transfer, and public toilet maintenance, where the company has achieved significant development, covering 26 provinces, municipalities, and autonomous regions nationwide, forming a smart, efficient, low-carbon, and green closed-loop industrial chain - Municipal sanitation services include sweeping and cleaning, waste collection and transfer, public toilet management, waste transfer station operation management, waste classification, and sanitation support for major events[46] - The company's municipal sanitation services cover 26 provinces, municipalities, and autonomous regions nationwide, providing one-stop, customized urban and rural environmental comprehensive management services[46] - China's municipal sanitation service market has entered a phase of comprehensive marketization, characterized by essential, continuous, weak cyclical, and regional demand[50][51] 2. Property Cleaning Business Property cleaning is a traditional advantageous business for the company, cultivated for over 20 years, establishing a standardized service system and expanding into landscaping, pest control, and other areas; the industry has a large market but low concentration, with the company holding a competitive edge in the high-end market - Property cleaning services include daily cleaning, initial cleaning, and specialized cleaning services (such as stone treatment, carpet cleaning, landscaping, indoor air quality management, pest control, epidemic disinfection, and exterior wall cleaning)[53] - The company's property cleaning business covers over 60 cities nationwide, establishing long-term cooperative relationships with many well-known property enterprises, rail transit, and airports[57] 3. Key Performance Drivers The company's performance growth is primarily driven by national strategies (e.g., "14th Five-Year Plan," "Dual Carbon Strategy"), industrial policies (e.g., "Waste-Free City" construction, waste classification), and the company's own competitive advantages (e.g., market pioneering, scale, management experience, brand) - The national "14th Five-Year Plan" and "Dual Carbon Strategy" promote household waste classification, resource utilization, and the application of new energy sanitation equipment, expanding the sanitation market[59] - A series of industrial policies, such as the "Guiding Opinions on Government Procurement of Services from Social Forces" and the "Implementation Plan for Household Waste Classification System," provide important support for the development of the sanitation industry[60][63][66] - The company's own competitive advantages include market pioneering advantage, scale and financial strength, comprehensive cost control capabilities, project operation and management experience, market expansion capabilities, and brand recognition[67] II. Main Businesses Engaged in by the Company During the Reporting Period This section outlines the company's overall operating performance in 2021, detailing the performance, market expansion, and key work progress of its two core business segments, municipal sanitation and property cleaning, including corporate governance, talent development, waste classification, and carbon sink initiatives 2021 Overview of Company's Operating Performance | Indicator | Amount/Ratio | | :--- | :--- | | Operating Revenue | CNY 4,833.6276 million | | Year-on-Year Growth | 12.01% | | Net Profit Attributable to Shareholders of Listed Company | CNY 472.5284 million | | Year-on-Year Decrease | 25.12% | | Total Assets (Period-end) | CNY 5,222.2770 million | | Growth from Beginning of Year | 14.83% | | Owners' Equity Attributable to Shareholders of Listed Company (Period-end) | CNY 2,880.5887 million | | Growth from Beginning of Year | 12.58% | | Gross Profit Margin | 22.66% | | Net Profit Margin | 10.80% | - The municipal sanitation segment achieved operating revenue of CNY 3,759.1338 million, a year-on-year increase of 11.52%, accounting for 77.77% of total operating revenue; new contracts signed during the reporting period totaled approximately CNY 3.68 billion, with total outstanding contracts amounting to CNY 36.725 billion as of the end of 2021[69] - The property cleaning segment achieved operating revenue of CNY 1,070.5964 million, a year-on-year increase of 14.98%, accounting for 22.15% of total operating revenue; new contracts signed during the reporting period totaled approximately CNY 1.344 billion, with total outstanding contracts amounting to CNY 1.679 billion as of the end of 2021[73] - The company strengthened corporate governance and compliance, improved its risk control system, revised policies such as the "Articles of Association," and conducted compliance training[74] - The company established a "Waste Classification Center" and acquired Shenzhen Baotaixin, promoting the integration of "waste classification" and "resource recycling" networks; it also established a carbon asset management and investment division to strategically position itself in "forestry carbon sinks"[78] - The company established a "National Market Development Center" with 15 regional provincial market development centers and launched a city partner recruitment program to optimize its market layout[79] - Continuous investment in "informatization + intelligentization" for integrated platform construction, with "@Digital City Housekeeper" as the top-level design, gradually completing a multi-dimensional, open industrial informatization product matrix[80] (I) Overview of Operating Performance In 2021, amidst a complex market environment, the company adhered to a strategy of "industry and capital synergy, scale and efficiency balance," focusing on technological, management, and mechanism innovation, achieving steady growth in operating revenue, but net profit declined due to the cancellation of COVID-19 policy benefits - In 2021, the company achieved operating revenue of CNY 4,833.6276 million, a year-on-year increase of 12.01%[68] - Net profit attributable to shareholders of the listed company was CNY 472.5284 million, a year-on-year decrease of 25.12%[68] - The gross profit margin for 2021 was 22.66%, and the net profit margin was 10.80%, a decrease from 2020 (gross profit margin 29.72%, net profit margin 15.97%), primarily due to the full cancellation of COVID-19 policy benefits[68] 1. Municipal Sanitation Business Municipal sanitation business is the company's main revenue source and growth driver, achieving CNY 3.759 billion in revenue in 2021, a year-on-year increase of 11.52%; the company further consolidated its market position through new contracts, regional expansion, and acquisitions of waste classification-related companies - The municipal sanitation segment achieved operating revenue of CNY 3,759.1338 million, a year-on-year increase of 11.52%, accounting for 77.77% of total operating revenue[69] - During the reporting period, new municipal sanitation contracts totaled approximately CNY 3.68 billion, with total outstanding contracts amounting to CNY 36.725 billion as of the end of 2021[69] - The company acquired Shenzhen Baotaixin, which primarily focuses on waste classification, extending its business to multiple cities including Jiujiang, Ganzhou, and Hanzhong, enhancing its competitive advantage in the segmented industry[72] 2. Property Cleaning Business Property cleaning business achieved steady growth, with revenue of CNY 1.071 billion in 2021, a year-on-year increase of 14.98%; the company maintained long-term cooperative relationships with high-end clients and established a premium brand image through value-added services and market transformation - The property cleaning segment achieved operating revenue of CNY 1,070.5964 million, a year-on-year increase of 14.98%, accounting for 22.15% of total operating revenue[73] - During the reporting period, new property cleaning contracts totaled approximately CNY 1.344 billion, with total outstanding contracts amounting to CNY 1.679 billion as of the end of 2021[73] - The company shifted its market focus to urban spaces such as rail transit, airports, urban parks, hospitals, schools, high-end office buildings, and large commercial districts, and provided multiple value-added services like "COVID-19 isolation hotel disinfection and sterilization, and residential community waste classification"[73] (II) Key Tasks Completed During the Reporting Period The company completed several key tasks during the reporting period, including strengthening corporate governance and risk control, optimizing talent development and incentive mechanisms, promoting waste classification and carbon sink initiatives, adjusting market layout, and advancing informatization and smart platform construction - The company revised policies such as the "Articles of Association" and "Measures for the Management of External Investments," and conducted compliance training for directors, supervisors, senior management, and controlling shareholders to enhance governance and risk prevention capabilities[74] - The company implemented an equity incentive plan, granting 2.768 million restricted shares of the second category to 90 incentive recipients to establish a long-term incentive mechanism[75][77] - The company established a "Waste Classification Center" and acquired Shenzhen Baotaixin, strategically positioning itself in "forestry carbon sinks" by establishing a carbon asset management and investment division, in response to national dual carbon goals[78] - The company established a "National Market Development Center," set up regional management centers in Jiangxi, Hunan, Shandong, and other regions, and launched a city partner recruitment program to optimize its market layout[79] - Continuous investment in informatization and intelligentization construction, with "@Digital City Housekeeper" as the top-level design, gradually completing a multi-dimensional, open industrial informatization product matrix[80] III. Awards and Honors Received by the Company and Employees in 2021 This section lists the honors and awards received by the company and its employees in 2021, covering industry influence, integrity in operations, high-quality development, contributions to epidemic prevention, and individual recognition, demonstrating the company's comprehensive strength and social recognition - The company was recognized as one of the "Top 50 Chinese Environmental Enterprises," "2021 High-Quality Development Listed Companies," "Top 100 GEM Listed Companies in 2021," and "2021 China's Most Growing Listed Companies"[82] - The company received honors such as "AAA-level Demonstration Enterprise for Integrity in Operations," "2021 Advanced Unit in Fighting COVID-19," and "Beautiful Shenzhen Public Welfare Foundation 2021 Caring Enterprise"[82] - Several employees received individual honors, such as "Heping Youth May Fourth Medal," "Most Beautiful Sanitation Worker," "Most Beautiful Shenyang Resident," and "Tianjin May Day Labor Medal"[86] IV. Analysis of Core Competencies This section deeply analyzes the company's core competitive advantages, including enterprise scale and first-mover advantage, mature management system, rich project operation experience, one-stop environmental sanitation integrated management service industrial chain, strong brand influence, talent and corporate culture advantages, and intelligent and informatization advantages - The company has over 70,000 employees, serving over 1,200 brand clients and nearly 200 government clients, accumulating extensive experience and a large number of high-quality clients in urban integrated management services, possessing industry leadership and first-mover advantage[89] - With 25 years of industry management experience, the company has formed a complete set of standardized management processes and service systems, promoting advanced operating methods and management systems through "Yuhetian University" to achieve replicable management[90][93] - The company has been deeply involved in the industry for 25 years, operating hundreds of sanitation projects across 89 counties and cities in 26 provinces, accumulating rich project operation and management experience, and implementing a business partner system[94] - The company has formed a complete closed-loop from road sweeping to waste classification management, providing one-stop professional urban and rural environmental integrated management services covering various urban and rural areas[95] - The company has received numerous national and provincial honors, established a good brand reputation, and actively fulfilled its social responsibilities, contributing to poverty alleviation and public welfare activities[96][97] - Leveraging IoT, big data, and AI technologies, the company has established smart sanitation command centers in over ten subsidiaries nationwide, building a leading "smart brain"[99] V. Analysis of Main Business This section details the company's main business revenue and cost structure, expense changes, R&D investment, and cash flow, revealing the performance and financial results of each business segment, and disclosing key customer and supplier information 2021 Operating Revenue Composition (Unit: CNY) | Category | 2021 Amount | 2021 Share | 2020 Amount | 2020 Share | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 4,833,627,585.37 | 100% | 4,315,219,469.31 | 100% | 12.01% | | Property Cleaning | 1,070,596,372.25 | 22.15% | 931,108,446.11 | 21.58% | 14.98% | | Municipal Sanitation | 3,759,133,806.91 | 77.77% | 3,370,742,777.08 | 78.11% | 11.52% | | Other Businesses | 3,897,406.21 | 0.08% | 13,368,246.12 | 0.31% | -70.85% | 2021 Operating Cost Composition (Unit: CNY) | Product Category | Item | 2021 Amount | Share of Operating Cost | 2020 Amount | Share of Operating Cost | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Cleaning | Labor Cost | 864,423,271.63 | 89.98% | 743,153,243.45 | 90.28% | 16.32% | | Municipal Sanitation | Labor Cost | 1,808,235,029.00 | 65.16% | 1,443,312,601.90 | 65.62% | 25.28% | | Municipal Sanitation | Vehicle Expenses | 347,784,719.53 | 12.53% | 266,014,741.44 | 12.09% | 30.74% | 2021 Expense Changes (Unit: CNY) | Item | 2021 | 2020 | Year-on-Year Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 44,398,668.92 | 45,762,844.15 | -2.98% | - | | Administrative Expenses | 333,560,186.91 | 300,382,647.27 | 11.05% | Increase due to the addition of several new subsidiaries during the reporting period | | Financial Expenses | 49,506,154.66 | 47,898,847.24 | 3.36% | - | | R&D Expenses | 9,053,594.61 | 4,489,047.98 | 101.68% | Increase due to company acquisitions during the reporting period | Company R&D Investment Over the Past Three Years (Unit: CNY) | Indicator | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | R&D Investment Amount | 9,053,594.61 | 4,489,047.98 | 0.00 | | R&D Investment as % of Operating Revenue | 0.19% | 0.10% | 0.00% | | Capitalized R&D Expenditure | 0.00 | 0.00 | 0.00 | | Number of R&D Personnel (persons) | 41 | 30 | - | - The number of R&D personnel increased to 41 at the end of 2021, a year-on-year increase of 36.67%, primarily due to the acquisition of Shenzhen Baotaixin Environmental Protection Technology Co., Ltd[131] 2021 Key Cash Flow Changes (Unit: CNY) | Item | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 619,773,596.89 | 521,753,417.33 | 18.79% | | Cash Inflow from Investing Activities (Subtotal) | 2,191,243,366.07 | 752,835,460.65 | 191.07% | | Cash Outflow from Investing Activities (Subtotal) | 2,700,067,857.13 | 1,494,912,492.73 | 80.62% | | Cash Inflow from Financing Activities (Subtotal) | 756,400,000.00 | 1,903,751,334.61 | -60.27% | | Net Increase in Cash and Cash Equivalents | -146,443,931.81 | 771,317,378.40 | -118.99% | - Cash inflow from investing activities increased by 191.07% year-on-year, primarily due to the redemption of wealth management products totaling CNY 2.15 billion during the reporting period[132] - Cash inflow from financing activities decreased by 60.27% year-on-year, primarily due to the net proceeds of CNY 960.407 million from new share issuance in 2020 and CNY 100 million received from related party current accounts[135] - Sales to the top five customers accounted for 19.97% of total annual sales, and purchases from the top five suppliers accounted for 29.11% of total annual purchases[119][123] 1. Overview This section provides an overview of the company's overall operating performance in 2021, consistent with the "II. Overview" content in "Management Discussion and Analysis" - Refer to the relevant content in "II. Overview" under "Management Discussion and Analysis"[102] 2. Revenue and Cost This section details the company's 2021 operating revenue and cost composition, categorized by industry, product, region, and sales model, and discloses the performance of significant sales contracts - The company's significant sales contracts, such as the Haikou Xiuying District Environmental Sanitation Integration PPP Project and Chengmai County Chengbei Five Towns Environmental Sanitation Public Service Improvement PPP Project, are all being performed normally[109][111] 3. Expenses This section lists the company's selling, administrative, financial, and R&D expenses for 2021 and their year-on-year changes, explaining the reasons for significant variations 4. R&D Investment This section discloses the company's R&D investment amount, its proportion to operating revenue, and the composition of R&D personnel over the past three years, along with an introduction to key R&D projects, their objectives, and progress - Key R&D projects include the Urban Environmental Operation Cloud (Electronic Attendance) Project, Digital City Housekeeper Platform, Urban Environmental Sanitation Refined Data Management System Project, Environmental Cleaning Integrated Management System Project, and Research and Development Project for Household Waste Incineration and Exhaust Gas Treatment Equipment[128] 5. Cash Flow This section lists the company's cash flow for 2021 and 2020, explaining the main factors influencing significant year-on-year changes in each cash flow item VI. Non-Main Business Operations This section discloses the company's non-main business income and expenses, including investment income, asset impairment, non-operating income and expenses, explaining their causes and sustainability 2021 Non-Main Business Operations (Unit: CNY) | Item | Amount | % of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 19,919,634.26 | 3.01% | Primarily investment income from associate companies and wealth management products | Yes | | Asset Impairment | -22,226,138.25 | -3.36% | Primarily impairment provisions for contract assets and credit impairment losses | No | | Non-operating Income | 3,840,456.63 | 0.58% | Primarily government subsidies for awards and insurance claims income | No | | Non-operating Expenses | 15,251,699.91 | 2.31% | Primarily external donations, net losses from disposal of fixed assets, and insurance claim expenses | No | VII. Analysis of Assets and Liabilities This section analyzes the company's asset and liability composition and significant changes at the end of 2021, and discloses information on restricted assets Significant Changes in Asset Composition at Year-end 2021 (Unit: CNY) | Item | Year-end 2021 Amount | % of Total Assets | Year-end 2020 Amount | % of Total Assets at Year-start | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,158,260,333.89 | 22.18% | 1,320,716,030.60 | - | -6.18% | | Accounts Receivable | 1,500,330,074.68 | 28.73% | 1,021,162,366.29 | - | 6.80% | | Total Assets | 5,222,277,044.53 | - | 4,547,848,286.89 | - | 14.83% | | Short-term Borrowings | 514,500,000.00 | 9.85% | 617,460,445.55 | - | -3.41% | | Long-term Borrowings | 240,500,000.00 | 4.61% | 90,000,000.00 | 1.93% | 2.68% | | Total Liabilities | 2,129,567,346.89 | - | 1,843,801,910.04 | - | 15.50% | Asset Restrictions at Year-end 2021 (Unit: CNY) | Item | Book Value at Period-end | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 12,325,188.33 | Letter of Guarantee Deposit | | Accounts Receivable | 134,094,813.48 | Pledged as Collateral | | Fixed Assets - Operating Vehicles and Equipment | 93,483,189.15 | Finance Lease Assets | | Fixed Assets - Transportation Equipment | 998,725.46 | Finance Lease Assets | | Total | 240,901,916.42 | - | VIII. Analysis of Investment Status This section analyzes the company's overall investment situation in 2021, including significant equity investments, the use of raised funds and the progress of committed projects, and their impact on the company's future development - The company's investment amount during the reporting period was CNY 127.4409 million, a year-on-year decrease of 68.89%[140] Significant Equity Investments in 2021 (Unit: CNY) | Investee Company Name | Main Business | Investment Amount | Shareholding Ratio | Profit/Loss for the Period | | :--- | :--- | :--- | :--- | :--- | | Liaoning Yuhetian City Appearance Environmental Management Co., Ltd. | Municipal Services | 30,000,000.00 | 100.00% | -934,517.00 | | Shenzhen Xiaorun Technology Co., Ltd. | Software Development | 5,500,000.00 | 100.00% | -895,725.49 | | Shenzhen Baotaixin Environmental Protection Technology Co., Ltd. | Waste Classification | 51,500,000.00 | 51.00% | 13,742,454.00 | | Binzhou Yuhetian City Services Co., Ltd. | Municipal Services | 37,500,000.00 | 75.00% | -4,069,150.29 | Overall Use of Raised Funds in 2021 (Unit: CNY 10,000) | Fundraising Year | Fundraising Method | Total Raised Funds | Amount Used in Current Period | Total Amount Used Cumulatively | Unused Raised Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | Public Offering of Shares | 96,040.70 | 20,693.07 | 64,322.65 | 33,886.35 | - The "Smart Environmental Sanitation Project" has a low investment progress, primarily due to the impact of the COVID-19 pandemic, leading the company to appropriately adjust the investment schedule based on changes in service demand for environmental sanitation projects[164] - The company temporarily supplemented working capital with part of its idle raised funds, returning CNY 253.3735 million on July 1, 2021, and prepaying CNY 50 million on November 25, 2021[157][158] IX. Significant Asset and Equity Sales This section states that the company did not have any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[371] - The company did not sell significant equity during the reporting period[372] X. Analysis of Major Holding and Associate Companies This section analyzes the operating performance of the company's major holding and associate companies, including their registered capital, total assets, net assets, operating revenue, operating profit, and net profit, and explains the methods of acquiring and disposing of subsidiaries during the reporting period and their impact on the company's operations and performance Financial Performance of Major Subsidiaries in 2021 (Unit: CNY) | Company Name | Company Type | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Yuhetian Smart City Operations Group Co., Ltd. | Subsidiary | 110,000,000.00 | 1,253,494,816.42 | 464,077,404.71 | 873,311,069.72 | 115,949,973.73 | 101,503,869.88 | | Haikou Yuhetian Environmental Services Co., Ltd. | Subsidiary | 911,655,163.33 | 391,657,012.98 | 226,094,449.88 | 348,678,363.60 | 111,847,939.81 | 100,364,660.16 | - During the reporting period, the company increased its competitive advantage, market expansion, and service capabilities by establishing 31 new subsidiaries and joint ventures, including Tianjin Free Trade Yuhetian City Environmental Services Co., Ltd. and Liaoning Yuhetian City Environmental Engineering Co., Ltd[375][376] - The company deregistered Liuyang Yuhetian Environmental Business Development Co., Ltd. and Mudanjiang Yuhetian Environmental Business Development Co., Ltd., which had no significant impact on the company's overall operating performance[176] XI. Information on Structured Entities Controlled by the Company This section states that the company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[177] XII. Outlook on the Company's Future Development This section outlines the company's development strategy and 2022 business development plan, aiming to become a leading international comprehensive environmental industry operation service provider, identifies potential risks such as market competition, management, rising costs, contract renewal, and accounts receivable collection, and proposes corresponding countermeasures - Company development strategy: Continuously improve the ecological environment, promote green and low-carbon development, and build a moat in business areas such as municipal sanitation, integrated property management, household waste classification and management, landscaping maintenance, smart street light management, smart environmental sanitation construction, public toilet operation management, and carbon sink investment and development[180] - The company will build a five-in-one integrated service network centered around "carbon neutrality + rural revitalization + urban housekeeper + renewable resource recycling + full waste treatment industrial chain"[180] - The 2022 business development plan includes strengthening corporate culture, enhancing human resource management, optimizing enterprise upgrading (management, innovation, industry, market), improving brand, focusing on core business, achieving long-term development through capital, and fulfilling information disclosure obligations[182][183][184][186][187][188][189] - The company may face risks such as market competition, corporate management, rising labor costs, non-renewal of project contracts upon expiration, and inability to timely recover accounts receivable[190][191][192][196][197] XIII. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period This section records the company's investor research, communication, and interview activities in 2021, including reception time, location, method, type of audience, and main topics discussed, reflecting the company's emphasis on investor relations management - The company participated in the 2020 Annual Online Performance Briefing and the 2021 Investor Collective Reception Day for Anhui-listed companies through the Panorama Network "Investor Relations Interactive Platform"[198] - The company engaged in phone communication with institutional investors such as Industrial Securities, GF Fund, and China Merchants Fund, primarily discussing the 2021 semi-annual report, the environmental sanitation industry outlook, the company's future development plans, and order status[198][201] Section 4 Corporate Governance This section details the company's corporate governance structure, independence from controlling shareholders, board and supervisory board operations, employee information, and internal control systems I. Basic Status of Corporate Governance This section outlines the company's corporate governance status in 2021, emphasizing strict adherence to relevant laws and regulations, continuous improvement of governance structure, ensuring legal exercise of powers by shareholders, directors, supervisors, and senior management, and safeguarding the interests of all parties - The actual status of corporate governance complies with the "Guidelines for Corporate Governance of Listed Companies" and "Self-Regulatory Guidelines for Listed Companies on the ChiNext Board No. 2 - Standardized Operation of Listed Companies"[204][213] - The company strictly convenes general meetings of shareholders as required, ensuring all shareholders fully exercise their rights; the controlling shareholder has not interfered with the company's decision-making and operating activities[205][206] - The company's board of directors consists of 8 directors (including 3 independent directors), and the supervisory board consists of 3 supervisors (including 1 employee representative supervisor), both complying with legal and regulatory requirements[207][208] II. Company's Independence from Controlling Shareholder and Actual Controller in Terms of Assets, Personnel, Finance, Organization, and Business This section details the company's independence from its controlling shareholder, actual controller, and other controlled entities in terms of assets, personnel, finance, organization, and business, demonstrating its autonomous operating capability - The company's assets are independent and complete, with clear ownership, and there are no instances of assets being occupied by the controlling shareholder to the detriment of the company's interests[215] - The company's senior management does not hold positions other than director or supervisor in the controlling shareholder, actual controller, or other entities controlled by them, and financial personnel do not hold concurrent positions[216] - The company has established an independent financial department and accounting system, capable of making independent financial decisions, and does not share bank accounts with the controlling shareholder[217] - The company has established an independent, complete, and development-appropriate organizational structure, with each department independently exercising its operational and management powers[218] - The company's main business is independent of the controlling shareholder, actual controller, and other entities controlled by them, with no substantive horizontal competition or obviously unfair related-party transactions[219] III. Horizontal Competition This section states that there was no horizontal competition involving the company during the reporting period - The company had no horizontal competition during the reporting period[220] IV. Information on Annual and Extraordinary General Meetings of Shareholders Held During the Reporting Period This section lists the sessions, types, investor participation rates, dates of convening, disclosure dates, and resolutions of the annual and extraordinary general meetings of shareholders held by the company in 2021 2021 General Meeting of Shareholders | Session | Meeting Type | Investor Participation Rate | Date of Convening | Disclosure Date | | :--- | :--- | :--- | :--- | :--- | | 2020 Annual General Meeting | Annual General Meeting | 57.88% | April 20, 2021 | April 21, 2021 | | 2021 First Extraordinary General Meeting | Extraordinary General Meeting | 74.39% | July 22, 2021 | July 23, 2021 | | 2021 Second Extraordinary General Meeting | Extraordinary General Meeting | 72.47% | August 27, 2021 | August 28, 2021 | V. Company with Differential Voting Rights Arrangement This section states that the company does not have differential voting rights arrangements - The company does not have differential voting rights arrangements[223] VI. Corporate Governance of Red-Chip Structured Company This section states that the company is not a red-chip structured company - The company is not a red-chip structured company[223] VII. Information on Directors, Supervisors, and Senior Management This section details the basic information, employment status, shareholding changes, professional background, main work experience, positions in other entities, and remuneration of the company's directors, supervisors, and senior management Shareholding of Directors, Supervisors, and Senior Management at Year-end 2021 (Unit: Shares) | Name | Position | Employment Status | Shares Held at Beginning of Period | Shares Held at End of Period | | :--- | :--- | :--- | :--- | :--- | | Zhou Ping | Chairman | Current | - | - | | Wang Dongyan | Director, CFO, Board Secretary | Current | 4,000,000 | 8,000,000 | | Zhou Ming | Director | Current | 500,000 | 1,000,000 | | Zhou Cong | Director | Current | 500,000 | 1,000,000 | | Wang Qi | Supervisor | Current | 400 | 800 | | Total | -- | -- | 5,000,400 | 10,000,800 | - During the reporting period, Mr. Zhou Ping, the company's chairman, resigned from the position of general manager due to work changes, and Mr. Bao Jiangyong assumed the role of general manager[230][238] - The company's board of directors consists of 8 members (including 3 independent directors), the supervisory board consists of 3 members (including 1 employee representative supervisor), and there are 3 senior management personnel[231] - The total remuneration paid to the company's 15 directors, supervisors, and senior management personnel in 2021 was CNY 6.7305 million[247][250] VIII. Performance of Duties by Directors During the Reporting Period This section discloses the convening of board meetings and the attendance of directors at board and general meetings, and explains how directors' objections and suggestions on company matters were addressed - During the reporting period, the company's board of directors held 8 meetings, with all directors attending in person or by proxy, and no instances of continuous absence from two consecutive board meetings[251][254] - During the reporting period, directors did not raise any objections to company matters, and all suggestions made by directors were adopted[255][256] [IX. Status of Board's Special Committees During the Reporting Period](index=54&type=section&id=IX.%20Status%20of%20Board's%20Special%2