Jiangxi Hongcheng Environment Co.Ltd(600461) 4 on April 21, the annual report of 2021 was released. The company’s fundamentals generally maintained a growth trend, the financial structure and asset status remained good, and the main economic indicators rose steadily, showing a good development momentum. During the reporting period, the company achieved an operating revenue of 817435 million yuan, a year-on-year increase of 23.83%; The net profit attributable to the parent company was 820.04 million yuan, a year-on-year increase of 23.52%.
On the basis of steady performance growth, the company has increased its dividend intensity year by year. In 2021, the company plans to pay out 5 yuan (including tax) for every 10 shares, with a dividend rate of 6.62% based on the share price of 7.55 yuan. From 2018 to 2020, the cash dividends of the company were 1.7 yuan, 2.6 yuan and 4.21 yuan respectively.
The company is further transforming to environmental business. In terms of the composition of main revenue, during the reporting period, the company realized a sewage treatment service revenue of 1640498400 yuan, accounting for 20.07% of the company’s total operating revenue; The income from sewage environmental engineering is 2609643 million yuan, accounting for 31.92% of the company’s total operating income.
Jiangxi Hongcheng Environment Co.Ltd(600461) as a pioneer in the operation of sewage treatment plants in Jiangxi Province, with more than 20 years of experience in sewage treatment operation and management, Jiangxi Province has a market share of more than 80%, 110 sewage treatment plants and a designed sewage treatment capacity of 3.652 million tons / day (including trusteeship). In 2021, the company signed 10 new concession agreement projects with an estimated investment of 690 million yuan. By the end of 2021, a total of 86 BOT projects for upgrading and upgrading urban sewage treatment plants in the province had been undertaken, with a total investment of about 7.155 billion yuan. The effluent quality standard of sewage treatment plants in the whole province has been comprehensively improved from class I B to national class I a.
In 2021, Jiangxi Hongcheng Environment Co.Ltd(600461) also strengthened capital operation and actively cut into the field of solid waste. During the reporting period, the company purchased the assets related to solid waste treatment held by the controlling shareholder water industry group, with a total asset restructuring scale of 944 million yuan. On the basis of the original core business of “water supply + sewage treatment + gas + engineering”, the company added the investment and operation business of solid waste treatment projects, gradually extending from traditional water treatment to urban comprehensive environmental treatment services with ecological environment protection and treatment as the core. The company continues to strive to build itself into an environmental protection enterprise based in Nanchang, deeply cultivated in Jiangxi and radiating the whole country, and further realize the strategic deployment from a regional environmental protection enterprise to a comprehensive operator of the environmental industry.
In 2022, the company acquired blue sky and clear water environmental protection and Anyi tap water in cash on the basis that the asset restructuring of solid waste related businesses was approved by the CSRC, so as to further expand the market value of the company.
At the same time, on the basis of the company’s strong layout of the solid waste sector through asset restructuring and with the help of policy dividends such as “carbon neutralization”, the company actively releases the capacity of existing cogeneration and waste incineration power generation projects. Hongcheng Kangheng undertakes the largest incineration power generation project in Nanchang. At present, the annual treatment of domestic waste can reach about 1 million tons, the annual power generation is 360 million kwh, and the daily average treatment of about 60% of domestic waste in Nanchang will bring sustainable rising business demand and profitability. In addition, the kitchen waste treatment project is designed to treat 200 tons / day, 100 tons / day of kitchen waste and 30 tons / day of waste oil; Leachate treatment project, with a design treatment capacity of 1000 tons / day; The landfill leachate concentrate treatment project, with a designed treatment capacity of 400 tons / day, will be put into operation successively, and the income from solid waste will continue to increase in the future. The company said it would also choose an opportunity to start the construction of photovoltaic power plants in Nanchang solid waste treatment circular economy industrial park.
