With entering the intensive disclosure period of the annual report, the major listed companies finally opened the curtain in front of the operating performance.
On March 26, Central Plains Environment Protection Co.Ltd(000544) released its annual report for 2021. Then on March 28 and 29, Central Plains Environment Protection Co.Ltd(000544) went down for two consecutive trading days, with declines of 0.48% and 1.77% respectively. As of the closing on March 30, the closing price was 6.15 yuan / share.
According to the annual report, Central Plains Environment Protection Co.Ltd(000544) 2021 achieved a total operating revenue of 6.14 billion, a year-on-year increase of 185.6%, a 14 year high; The net profit attributable to the shareholders of the listed company was 510 million, a year-on-year increase of 2.5%; Earnings per share was 0.52 yuan.
To this end, the reporter of Huaxia times called the Central Plains Environment Protection Co.Ltd(000544) secretary office, and the relevant staff said that the specific information is subject to the disclosure of the annual report.
operating revenue increased by 185.6% year on year
On March 26, Central Plains Environment Protection Co.Ltd(000544) disclosed the annual report of 2021. In 2021, the company achieved a total operating revenue of 6.14 billion, an increase of 185.6% year-on-year; The total profit was 65400 yuan, a year-on-year increase of 5.16%; The net profit actually attributable to the shareholders of the listed company was 510 million, a year-on-year increase of 2.5%; Earnings per share was 0.52 yuan.
According to the annual report, Central Plains Environment Protection Co.Ltd(000544) 2021’s operating revenue in the four quarters was 1.209 billion, 1.380 billion, 1.118 billion and 2.434 billion respectively. Year on year growth of 191.28%, 196.74%, 100.59% and 241.51%. Among them, in view of the growth of operating revenue in the fourth quarter, Central Plains Environment Protection Co.Ltd(000544) said that the new projects continued to promote, and the revenue was recognized according to the progress of contract performance.
It is worth noting that the net profit of Central Plains Environment Protection Co.Ltd(000544) did not rise with the rising operating income. Among them, the net profit in the fourth quarter was 42.64 million, which was far from the net profit of 150 million, 160 million and 157 million in the first three quarters. In this regard, Central Plains Environment Protection Co.Ltd(000544) indicates that it is related to the provision of asset impairment loss and the provision of year-end labor cost. It is understood that the company made provision for asset impairment in 2021, reducing the total profit of the current period by 668728 million yuan.
Meanwhile, the cash outflow from operating activities in Central Plains Environment Protection Co.Ltd(000544) 2021 was 4.531 billion yuan, with a year-on-year increase of 265.3%, and the cash outflow from investment activities decreased by 84.93%. In this regard, Central Plains Environment Protection Co.Ltd(000544) said that the main reason was the change of accounting policies. According to the interpretation of accounting standards for Business Enterprises No. 14 and the Q & A and application cases of accounting treatment of social capital side of PPP project contract published on the website of the accounting department of the Ministry of Finance in August 2021, the cash flow of PPP project under construction forming financial assets was adjusted from investment activities to operating activities.
The 283.68% increase in financial expenses in 2021 is also affected by the change of accounting policies. For the PPP projects under construction that form financial assets, the borrowing costs during the period of construction in this year are included in the financial expenses.
ppp project as revenue support
Central Plains Environment Protection Co.Ltd(000544) 2021’s operating cost was 4.83 billion, an increase of 261.5% year-on-year, which is higher than the growth rate of 185.6% of its operating revenue.
Therefore, the gross profit margin decreased by 16.5% compared with last year and 43.59% year-on-year. Among them, the gross profit margin of sewage treatment is relatively high. Although it has decreased compared with last year, it still maintains the gross profit margin of 47.50%. As the main revenue support of Central Plains Environment Protection Co.Ltd(000544) 2021, the gross profit margin of PPP project is 14.80%.
Although the gross profit margin of PPP project income is lower than that of sewage treatment, PPP project income has become the main force contributing to Central Plains Environment Protection Co.Ltd(000544) operating income. From the perspective of the business structure of Central Plains Environment Protection Co.Ltd(000544) , the revenue of PPP project is the main support of its operating revenue. Specifically, the operating revenue of PPP project revenue was 4.55 billion, accounting for 74.06%, an increase of 5951481% from 7.63 million in the same period of last year.
In fact, Central Plains Environment Protection Co.Ltd(000544) in 2021, the composition of operating income changes obviously. The proportion of sewage treatment decreased from nearly half in 2020 to less than one fifth, and the engineering construction and management decreased from 36.28% in 2020 to 3.51%, accounting for less than one tenth of the past. In the past, the main forces of the two major operating revenues are now insufficient to compete with the proportion of PPP project revenue.
It is worth noting that although the proportion of operating income of sewage treatment has decreased significantly, the operating income of 1.104 billion obtained by sewage treatment is still very considerable, an increase of 8.90% compared with last year. However, the corresponding operating cost increases in the same direction as the operating revenue. The operating cost of sewage treatment is 5.8 billion yuan, an increase of 25.21% year-on-year, which has exceeded the growth rate of operating revenue.
It is understood that by the end of 2021, Central Plains Environment Protection Co.Ltd(000544) operated 21 sewage treatment plants, with an annual sewage treatment capacity of 519 million cubic meters and reclaimed water utilization of 21.8 million cubic meters; One water supply plant, supplying 12.58 million cubic meters of water throughout the year.
Central Plains Environment Protection Co.Ltd(000544) believes that the sewage treatment business is the basic business of the company’s operation and development, which mainly adopts the franchise mode. The company is responsible for the daily treatment of sewage during the project cooperation period and collects the sewage treatment fee according to the price agreed in the agreement. The company continues to strengthen the overall management of water affairs, promote the construction of smart water affairs, improve operation efficiency and help reduce costs and increase efficiency.
For the future development of sewage treatment, Central Plains Environment Protection Co.Ltd(000544) said that in recent years, the state has successively issued a number of sewage treatment related policies, such as the guiding opinions on promoting the utilization of sewage resources, the implementation plan for the strengths and weaknesses of urban domestic sewage treatment facilities, and the three-year action plan for improving the quality and efficiency of urban sewage treatment (20192021), so as to promote the continuous standardized development of China’s sewage treatment market. According to relevant policies, deepen water pollution control, pay more attention to water ecological protection and restoration on the basis of improving water environmental quality, and upgrading and reconstruction is still the key work of the industry; Strengthening the construction of sewage treatment capacity, promoting the full coverage of urban sewage pipe network, promoting digital, refined and systematic development, and improving the level of industrial intelligence and overall efficiency are important industrial development directions in the future.
