TRE(300332)2022-04-26 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2021, representing a year-on-year growth of 15%[25]. - The net profit attributable to shareholders was 150 million RMB, an increase of 10% compared to the previous year[25]. - The company's operating revenue for 2021 was approximately CNY 2.05 billion, representing a 21.16% increase compared to CNY 1.69 billion in 2020[32]. - The net profit attributable to shareholders for 2021 was approximately CNY 203.93 million, a significant increase of 265.38% from CNY 55.81 million in 2020[32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 148.66 million, up 293.45% from CNY 37.78 million in 2020[32]. - The basic earnings per share for 2021 was CNY 0.24, a 300% increase from CNY 0.06 in 2020[32]. - The company's gross profit for the reporting period was CNY 575.82 million, an increase of CNY 123.12 million year-on-year, mainly driven by increased gas sales volume and operational service revenue[100]. - The net profit attributable to shareholders of the parent company was CNY 203.93 million, representing a year-on-year increase of CNY 148.12 million, with a growth rate of 258.85%[101]. Market Expansion and Strategy - The company plans to distribute a cash dividend of 0.48 RMB per 10 shares, with a total payout amounting to approximately 42 million RMB[9]. - The company is focusing on expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2023[25]. - Future guidance estimates a revenue growth of 18% for 2022, driven by increased demand in the environmental services sector[25]. - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[46]. - The company aims to expand its downstream market by developing commercial users along the Shen'an pipeline, leveraging big data to improve service quality and customer experience[75]. - The company plans to enhance its natural gas supply chain and expand its market presence, aiming to become a comprehensive clean energy service group[193]. Customer and User Growth - User data indicates a growth in customer base by 20%, reaching a total of 500,000 active users by the end of 2021[25]. - The company added 10,658 new residential, commercial, and industrial users, bringing the total to over 110,000 users served[107]. Product Development and Innovation - New product development includes the launch of an advanced water treatment technology expected to reduce operational costs by 30%[25]. - The company has developed key technologies in industrial wastewater treatment and recycling, membrane sewage treatment, near-zero discharge technology, and seawater desalination, enhancing its competitive edge in the water treatment industry[61]. - The company has completed pilot evaluations for a new underground wastewater treatment technology, aiming to enhance market competitiveness[143]. - The company is developing a chemical cleaning device to address membrane pollution in wastewater treatment, ensuring stable operation of the treatment process[143]. - The company has developed a cost-effective seawater desalination and mineralization process, enhancing mineral and alkalinity content to meet drinking water standards[146]. Financial Position and Assets - The total assets of the company reached 3 billion RMB, with a debt-to-equity ratio of 0.5, indicating a stable financial position[25]. - The total assets at the end of 2021 were approximately CNY 8.28 billion, a decrease of 2.46% from CNY 8.49 billion at the end of 2020[32]. - The company has a total asset value of CNY 8,277.37 million, a decrease of 2.46% from the end of the previous year, while the net assets attributable to shareholders increased by 2.77% to CNY 3,633.37 million[101]. Risks and Challenges - The company has identified potential risks including industry cyclicality and regulatory changes, with mitigation strategies outlined in the report[6]. - The company reported a significant increase in the cost of gas supply and installation, which accounted for 66.98% of the total operating costs in 2021, up from 51.57% in 2020, reflecting a 15.41% increase[131]. Research and Development - The company has accumulated 115 patent applications and software copyrights, with 112 patents granted, reflecting its commitment to R&D and intellectual property development[98]. - R&D investment in 2021 was approximately ¥38.54 million, accounting for 1.88% of operating revenue, a decrease from 2.28% in 2020[149]. - The number of R&D personnel decreased by 18.18% from 33 in 2020 to 27 in 2021[149]. Environmental and Regulatory Context - The water treatment sector is projected to see over a trillion yuan in market demand during the 14th Five-Year Plan period, driven by national policies[58]. - The water treatment industry in China is expected to maintain growth despite economic tightening, driven by government policies focused on resource conservation and environmental protection[60]. - The company is exploring clean energy development, including hydrogen and renewable energy, to reduce carbon emissions and dependency on fossil fuels in various sectors[199]. Subsidiary Performance - The subsidiary Beijing Huasheng reported a net profit of 153.27 million RMB, contributing over 10% to the company's net profit[186]. - The subsidiary Sino Water reported a net loss of 46.70 million RMB during the reporting period[186]. - The net profit of Beijing Huasheng increased by 45.49 million CNY, a growth rate of 42.22% compared to the same period last year, mainly due to increased upstream gas output and reduced financial expenses[187]. - The net profit of Sino Water decreased by 83.66 million CNY, a decline of 173.32% year-on-year, primarily due to project delays and increased impairment losses caused by the pandemic[187].