Securities code: Dynagreen Environmental Protection Group Co.Ltd(601330) securities abbreviation: Dynagreen Environmental Protection Group Co.Ltd(601330) Announcement No.: pro 2022017 convertible bond Code: 113054 convertible bond abbreviation: Green convertible bond
Dynagreen Environmental Protection Group Co.Ltd(601330)
Announcement of profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Cash dividend per share (including tax of 1.0 yuan).
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the distribution amount per share unchanged, adjust the total distribution accordingly, and make a separate announcement on the specific adjustment.
The cash dividend of this year accounted for 19.97% of the net profit attributable to the shareholders of the parent company in 2021, and the retained undistributed profit was mainly used for the construction of the company’s waste incineration power generation project.
1、 Contents of profit distribution plan
Audited by KPMG Huazhen Certified Public Accountants (special general partnership), as of December 31, 2021, the company’s distributable profit at the end of the period was RMB 19365708803. According to the resolution of the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021. The profit distribution plan is as follows:
It is proposed to distribute a cash dividend of 0.1 yuan per share (including tax) to all shareholders. As of March 30, 2022, the total share capital of the company is 139344 million shares. Based on this calculation, the total cash dividend to be distributed is 139344 million yuan (including tax). The company’s cash dividend in this year accounted for 19.97% of the net profit attributable to shareholders of the parent company in 2021.
If the total share capital of the company changes due to share repurchase from the date of disclosure of this announcement to the date of equity distribution and equity registration, the company plans to maintain the distribution amount per share unchanged and adjust the total distribution accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the net profit attributable to the shareholders of the parent company was 69778587679 yuan, the accumulated undistributed profit of the parent company was 19365708803 yuan, and the total cash dividend to be distributed by the company was 139344 million yuan, accounting for 19.97% of the net profit attributable to the shareholders of the parent company in 2021, less than 30%. The specific reasons are described below.
(I) industry situation and characteristics of the company
The company is mainly engaged in the investment, construction and operation of domestic waste incineration power plant in BOT mode. With the steady growth of China’s population, the continuous promotion of urbanization and economic development, China’s domestic waste generation continues to increase and the demand for treatment is growing. According to the statistical yearbook of China’s urban construction, from 2008 to 2020, the number of harmless treatment plants for urban domestic waste in China increased from 509 to 1287, and the daily treatment capacity increased from 315200 tons to 963500 tons, with a compound growth rate of 9.76%. The harmless treatment of waste is mainly divided into three ways: incineration, landfill and composting. Incineration has the advantages of obvious reduction effect, small floor area and relatively small impact on the environment. It is the fastest-growing subdivision field. From 2008 to 2020, the number of municipal solid waste incineration plants in China increased from 74 to 463, an increase of 525.68%. The daily processing capacity increased from 51600 tons, and the compound growth rate of processing capacity and annual actual processing capacity was more than 20%. The national 14th five year plan proposes that by the end of 2025, the national urban domestic waste incineration capacity will reach about 800000 tons / day, and the urban domestic waste incineration capacity accounts for about 65%, with great growth potential.
Domestic waste incineration power generation industry is a capital intensive industry. The project requires large initial investment. The capital investment of a waste incineration power plant with a daily processing capacity of 1000 tons is generally 400 million yuan to 600 million yuan. At the same time, the investment recovery cycle of waste incineration power generation projects is long, generally 8-12 years.
(II) development stage of the company and its own business model
The company is one of the earliest enterprises engaged in domestic waste incineration power generation in China. As of December 31, 2021, the company has operated 31 projects, 5 projects under construction and 7 projects under preparation in the field of domestic waste incineration power generation. The waste treatment capacity of operating projects has reached 34000 tons / day. The number of projects and waste treatment capacity of the company are among the forefront of the industry, and has formed a foundation based on the Yangtze River Delta, the Pearl River Delta and the Bohai Sea, Radiate the market layout of the whole country. The company mainly invests, constructs and operates the domestic waste incineration power plant in BOT mode. The franchise period is usually 25 to 30 years. After the expiration of the franchise right, the company needs to hand over the domestic waste incineration power plant to the concession grantor free of charge.
(III) profitability and capital demand of the company
Focusing on the development of domestic waste incineration business, the company has seized the development opportunities of the industry in recent years. The waste treatment capacity has increased rapidly and the profitability has maintained a good level. The weighted average return on net assets from 2019 to 2021 is 13.23%, 13.80% and 11.06% respectively. In 2022, the company will promote the continued construction of domestic waste incineration power generation projects such as Huludao, Shuozhou, Enshi, Jingxi and Wuhan phase II, and newly start domestic waste incineration power generation projects such as Zhangqiu phase II, and continue to expand new projects, with large capital demand.
(IV) reasons why the company’s cash dividend level is lower than 30%
According to the articles of association and the shareholder return plan for the next three years (20212023), the annual profit distributed by the company in cash shall not be less than 10% of the distributable profit realized in the current year. Since its listing, the company has attached great importance to cash dividends to investors and strictly abided by the provisions on cash dividends in the articles of association. The proportion of cash dividends in 2020 reached 55.36%. Combined with the company’s profitability and financial situation in 2021 and the capital demand for business development in 2022, the proposed proportion of cash dividend of the company in 2021 is 19.97%.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
The undistributed profits retained by the company will be used for the company’s project construction to ensure the smooth progress of the company’s projects under construction, further strengthen and expand the main business, improve the company’s competitiveness and safeguard the long-term interests of shareholders. The company will always pay attention to the return to shareholders in the form of cash dividends, actively implement the company’s profit distribution policy in strict accordance with the company law, securities law, articles of association and the requirements of regulatory authorities, and share the achievements of the company’s growth and development with shareholders.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
On March 29, 2022, the fifth meeting of the Fourth Board of directors of the company deliberated and adopted the proposal on Dynagreen Environmental Protection Group Co.Ltd(601330) 2021 annual profit distribution plan, and agreed to the profit distribution plan formulated by the company.
(II) opinions of independent directors
The company’s profit distribution plan for 2021 fully considers various factors such as the company’s operation, capital demand, shareholder return and future development, which is conducive to the sustainable and stable development of the company; Comply with the relevant provisions on profit distribution in the company law, the securities law and the articles of association, comply with the interests of the company and all shareholders, and there is no damage to the interests of medium and small shareholders. Therefore, we unanimously agree to the 2021 profit distribution plan of the board of directors of the company.
(III) opinions of the board of supervisors
Combined with the current operating conditions and capital needs of the company, the profit distribution plan of the company is in line with the long-term interests of the company and shareholders and the relevant provisions of the company law, securities law and the articles of association. Therefore, the board of supervisors agrees with the profit distribution plan formulated by the company.
4、 Relevant risk tips
This profit distribution plan combines the company’s development stage, future capital demand and other factors, and will not have a significant impact on the company’s operating cash flow, and will not affect the company’s normal operation and long-term development. This profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Board of directors
