Wuhan Sanzhen Industry Holding Co.Ltd(600168) ( Wuhan Sanzhen Industry Holding Co.Ltd(600168) . SH) released its 2021 annual report on the evening of March 18. The company achieved an operating revenue of 2.012 billion yuan last year, with a year-on-year increase of 22.41%; The net profit attributable to the shareholders of the listed company was 399 million yuan, an increase of 56.19% year-on-year; The weighted average return on net assets was 7.21%, an increase of 2.38 percentage points over the previous year. The company’s profit distribution plan for 2021 is to pay out RMB 169 (including tax) for every 10 shares, with a total dividend of RMB 120 million.
Wuhan Sanzhen Industry Holding Co.Ltd(600168) main business focuses on the construction and operation of urban infrastructure focusing on water affairs, such as sewage treatment, tap water production and tunnel operation. The company is not only the main sewage treatment enterprise in the main urban area of Wuhan, but also the tap water business accounts for more than 90% of the market share of tap water production in Hankou area of Wuhan, occupying a regional leading position. The Wuhan Yangtze River Tunnel invested, constructed and operated by the company is an important river crossing channel in Wuhan.
By business, as of the end of the reporting period, Wuhan Sanzhen Industry Holding Co.Ltd(600168) had a total designed sewage treatment capacity of 3.1843 million tons / day (including the entrusted operation scale of 8500 tons / day); The designed production capacity of tap water reaches 1.3 million tons / day. During the reporting period, the company treated 930 million tons of sewage, with a year-on-year increase of 18.76%; The water supply was 304 million tons, with a year-on-year increase of 2.87%; There were 246802 million vehicles passing through the Yangtze River tunnel, an increase of 29% year-on-year.
One of the core competitiveness of Wuhan Sanzhen Industry Holding Co.Ltd(600168) is franchise and regional monopoly advantage. The company has the exclusive right to operate the drainage service in the city of Wuhan (hereinafter referred to as the “subsidiary of city”) within the urban development area of City, and continues to collect the drainage service fee in the city of 168; The water supply capacity of Zongguan and baihezui waterworks owned by the company accounts for more than 90% of the market share of tap water production in Hankou, Wuhan, and is in a regional monopoly position Wuhan Sanzhen Industry Holding Co.Ltd(600168) said that with the continuous expansion of the company’s production scale, regional franchising and regional monopoly have provided favorable support for the development of the company’s water supply and drainage business.
The reporter of the economic information daily noted that in 2021, among the net profit attributable to the parent company of Wuhan Sanzhen Industry Holding Co.Ltd(600168) 399 billion yuan, the non recurring profit and loss items reached 398 million yuan, an increase of 124328% year-on-year, mainly due to the fact that the land and aboveground buildings of Shahu plant subordinate to the drainage company were paid back by Wuhan land storage center during the reporting period, and the company confirmed the income from the disposal of relevant assets.
After deducting non recurring profits and losses, Wuhan Sanzhen Industry Holding Co.Ltd(600168) the net profit attributable to the parent company was only 547400 yuan, a significant decrease of 99.76% year-on-year Wuhan Sanzhen Industry Holding Co.Ltd(600168) explained that the main reason was that in order to improve the quality of sewage treatment and meet the requirements of relevant environmental protection regulations, the company implemented reconstruction and expansion projects for some sewage treatment plants, resulting in a corresponding increase in the operating cost and capital cost of sewage treatment business; In addition, due to the long recovery cycle of receivables, the credit impairment loss also increased accordingly.
In addition, in 2021, Wuhan Sanzhen Industry Holding Co.Ltd(600168) the credit impairment loss reached 181 million yuan, a significant increase of 523.8% compared with 289364 million yuan in the same period of last year, mainly due to the provision for bad debts of accounts receivable.
According to the annual report, by the end of 2021, Wuhan Sanzhen Industry Holding Co.Ltd(600168) accounts receivable had a large ending balance of 2.761 billion yuan; The net assets of the company are 5.939 billion yuan, and accounts receivable account for a large proportion of assets. The company said that although the recovery rate of accounts receivable slowed down, the company’s customers are government administrative institutions with low credit risk, and the company has taken corresponding measures and actively collected, which has reduced the relevant credit risk.
For future development strategy, Wuhan Sanzhen Industry Holding Co.Ltd(600168) said that the company will, in accordance with the principle of “based in Wuhan and radiating the whole country”, continue to deeply cultivate the water environmental protection, water environment treatment and engineering construction market, accelerate the all-round and efficient integration of engineering construction business and the company’s original business sector, and accelerate the improvement of the company’s comprehensive competitiveness in investment, construction, operation and service in the water environmental protection industry.
At the same time, the company will continue to explore the implementation of industrial expansion through the combination of light and heavy assets (such as EPCO, BOT, TOT, rot, etc.), actively expand the derivative industrial chains such as photovoltaic power generation, sludge treatment and water environment treatment, integrate the capabilities of advanced equipment manufacturing and information system integration related to environmental protection technology, improve the overall profitability of the whole industrial chain and comprehensively enhance the company’s core competitiveness.
