Taihe(605081)2023-04-27 16:00Financial Performance - In 2022, the company's operating revenue was CNY 205,407,095.53, a decrease of 55.37% compared to CNY 460,285,200.98 in 2021[20]. - The net profit attributable to shareholders was a loss of CNY 163,937,841.90, compared to a profit of CNY 90,944,279.66 in 2021, marking a significant decline[20]. - The net cash flow from operating activities improved by 24.91%, reaching a loss of CNY 96,428,580.72, compared to a loss of CNY 128,410,994.14 in the previous year[20]. - Total assets decreased by 10.17% to CNY 1,913,165,873.55 from CNY 2,129,796,198.29 in 2021[20]. - The net assets attributable to shareholders decreased by 13.17% to CNY 1,595,903,756.26 from CNY 1,837,966,294.12 in 2021[20]. - The weighted average return on equity was -9.58% for the reporting period[22]. - The basic earnings per share were -1.45 yuan, reflecting a significant decline compared to the previous year[22]. - The company achieved a main business revenue of 205.41 million yuan, a year-on-year decrease of 55.37%[49]. - The net profit attributable to the parent company was -163.94 million yuan, a decline of 280.27% compared to the previous year[49]. Operational Developments - The company completed the acquisition of Heilongjiang Haihe Beverage Co., Ltd. in August 2022, entering the health consumption sector[35]. - A specialized food and beverage sales company was established to leverage resources and improve revenue structure and cash flow[35]. - In Q4, the company successfully won two major projects, each exceeding 100 million yuan, which are expected to contribute to new project orders in 2023[34]. - The company aims to optimize and improve its revenue structure and cash flow by tapping into the high-margin consumer goods industry[35]. - The company launched new products, including the Ba Bai Quan-Tai He water co-branded product and the new "TAIHESHUI" brand, which received positive market feedback[42]. Research and Development - The company received 30 patents in 2022, including 19 invention patents and 8 authorized patents[36]. - The company has a research and development team of 50 members, including 3 PhDs and 20 Masters, led by Professor He Wenhui[47]. - Research and development expenses totaled 22,787,366.12 yuan, which is 11.09% of the operating revenue[66]. - The company has implemented a technology incentive mechanism to encourage continuous learning and innovation among its technical staff[36]. Market and Industry Trends - The company faced challenges due to a slowdown in the environmental governance industry, resulting in reduced investment demand and longer project payment cycles[34]. - The water pollution control industry is experiencing increased mergers and acquisitions, with a trend towards higher market concentration and competition among existing companies[91]. - The industry is shifting towards a more diversified demand, integrating multiple sectors such as water conservancy, municipal services, and ecology[92]. - The company is actively seeking growth through transformation and upgrading, including acquisitions and increased R&D investment in clean energy and recycling sectors[92]. Governance and Compliance - The company is committed to enhancing its governance structure and ensuring compliance with legal and regulatory requirements to protect investor rights[101]. - The company has not faced any penalties from securities regulatory authorities in the past three years, reflecting a strong compliance record[114]. - The company has established a complete internal control system for its subsidiaries, ensuring oversight of assets and strategic planning[132]. - The company has committed to minimizing investor losses and protecting their interests in case of unfulfilled commitments[162]. Shareholder and Capital Management - The total number of shares held by Chairman and General Manager He Wenhui increased from 17,623,150 to 25,553,567, reflecting an increase of 7,930,417 shares due to capital reserve conversion[104]. - The total share capital increased from 78,101,429 shares to 113,247,072 shares due to a capital reserve conversion, resulting in a significant impact on earnings per share and net asset value per share[190]. - The company has a cash dividend policy that was not adjusted during the reporting period, maintaining a stable profit distribution mechanism[128]. - The company will ensure compliance with all relevant laws and regulations regarding share transfers and reductions[149]. Environmental and Social Responsibility - The company continues to focus on ecological restoration and water pollution control, aligning with national environmental goals[138]. - The company invested a total of 2.018 million yuan in social responsibility projects, including 2 million yuan donated to Shanghai Ocean University in January 2022[139]. - The company has implemented carbon reduction measures, including planting aquatic plants for water purification, although specific CO2 equivalent reduction figures are not applicable[139]. - The company has not disclosed a separate social responsibility report or ESG report[139]. Future Outlook - In 2023, the company aims to enhance revenue through traditional business expansion and new business development, particularly in the water ecological environment governance sector, which remains a strategic focus in China[94]. - The company expects to improve its aquatic ecological business performance in 2023, leveraging its core technology and strong reputation in the industry, while adopting a cautious approach to project selection based on order progress and profit margins[95]. - The company plans to implement strict cost control measures and transition to industrialized, intelligent, and digital construction methods to reduce labor costs and improve construction quality[96].