Yonker Environmental Protection Co.Ltd(300187) : summary of 2021 Annual Report

Securities code: Yonker Environmental Protection Co.Ltd(300187) securities abbreviation: Yonker Environmental Protection Co.Ltd(300187) Announcement No.: 2022026 Yonker Environmental Protection Co.Ltd(300187)

Summary of annual report 2021

1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. All directors attended the meeting of the board of directors to consider the annual report in person. The audit opinion of Tianzhi International Certified Public Accountants (special general partnership) on the company’s financial report of this year is: standard unqualified opinion. Changes of accounting firm during the reporting period: the accounting firm of the company was changed from Tianzhi international accounting firm (special general partnership) this year. Tips on non-standard audit opinions □ applicable √ not applicable the company was not profitable at the time of listing and is not profitable at present □ applicable √ not applicable to the profit distribution plan of common stock or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable

The company’s profit distribution plan for common shares reviewed and approved by the board of directors is: take 644500165 as the base, distribute cash dividend of 0.80 yuan (including tax) to all shareholders for every 10 shares, send bonus shares of 0 shares (including tax), and transfer capital reserve to all shareholders for every 10 shares.

Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile

Stock abbreviation Yonker Environmental Protection Co.Ltd(300187) stock code Yonker Environmental Protection Co.Ltd(300187)

Shenzhen Stock Exchange

Contact person and contact information secretary of the board of directors securities affairs representative

Name: Pan Jie Huangtian

Office address: Liuyang national biomedical industry base, Changsha, Hunan national biomedical industry base, Liuyang, Changsha, Hunan (next to national highway 319) (next to national highway 319)

Fax: 073183285599

Tel: 073183285599

Email: jie.com [email protected]. [email protected].

2. Main business or product profile during the reporting period (I) main business of the company

The company is a leading comprehensive environmental service enterprise in China. Relying on a number of key core technologies and environmental protection project implementation cases with international and China’s leading level in the field of environmental protection, the company can provide a package of high-quality and efficient policy consulting services and technical solutions for enterprises in key carbon emission industries. The company continues to optimize the strategic development of the company, that is, the strategic positioning of “dual core” (Engineering and operation) + “dual carbon”, strive to realize the business combination mode of combining light and heavy assets, ensuring cash flow and comprehensive technical service ability, and create a highly competitive comprehensive environmental protection platform. 1. Environmental engineering services

The main business of the environmental engineering service sector is soil remediation and atmospheric governance. As the leader in the field of environmental governance in Hunan Province, the company’s soil remediation business is the focus of the company’s development.

The soil remediation business carried out by the company mainly includes farmland remediation and site remediation. Farmland remediation refers to reducing the input, total amount or activity of pollutants in cultivated land soil through source control, agronomic regulation, soil improvement, phytoremediation and other measures, so as to reduce the risk of Shenzhen Agricultural Products Group Co.Ltd(000061) pollutants exceeding the standard and improve the soil environmental quality of polluted cultivated land; Site restoration refers to the activities of removing, reducing, fixing or controlling the risk at an acceptable level by means of engineering, technology, policy and other management means.

At present, the company has established a complete industrial chain covering the whole process of environmental remediation planning consultation, site investigation, risk assessment, engineering design and construction and pharmaceutical production. Its business scope covers the whole business field of farmland pollution control, site pollution control and mining area pollution control. Focusing on farmland restoration and site restoration, the company has built an all-round polyhedral core competitive advantage.

In 2021, the contract amount of the company’s soil remediation project reached 362 million, with a year-on-year increase of 118%. Among them, there are not only the continuous breakthroughs of large-scale industrial site restoration projects, such as the design and construction project of contaminated soil treatment and restoration project at the original site of heavy steel and iron smelting plant, the emergency disposal project of solid waste landfill in the West and north of plot 4 of Xinpu Industrial Park (formerly Jiangsu Ruihe chemical fertilizer Co., Ltd.), but also the continuous development of cultivated land restoration projects, which are the traditional advantages of the company, For example, the safe utilization project of contaminated cultivated land in Baguazhou street, Qixia District, Nanjing in 2021. According to the list of repair industry enterprises released by the authoritative consulting organization of the industry, the company ranks eighth in the industry, and its comprehensive strength is recognized by the market. At the same time, as one of the main completion units, the company participated in the project of “precision treatment technology and standardized application of typical heavy metal polluted cultivated land” and won the “first prize of scientific and technological progress” of Guangdong Province.

Air pollution control business is the traditional main business of the company. The company has accumulated many years of technical advantages and project construction experience in the field of air pollution control. It has strong technical R & D capacity and engineering strength, enjoys a good reputation in the Chinese market, and has been appointed by the Ministry of environmental protection to prepare iron and steel desulfurization standards. It is committed to the development, commissioning and other fields of air desulfurization and denitrification facilities for the company, and is committed to providing comprehensive services in the fields of coal-fired power plants, such as the design, installation and operation of desulfurization, denitrification and other fields. 2. Environmental operation services

The main businesses of the environmental operation service sector are solid waste operation, hazardous waste operation and new energy photovoltaic projects. In recent years, the operation sector has focused on the field of hazardous waste disposal as one of the company’s core businesses.

Waste incineration is the mainstream harmless treatment of domestic waste.

Compared with traditional composting, landfill and other treatment methods, incineration has the advantages of high treatment efficiency, small floor area and relatively small impact on the environment. It can better meet the requirements of reduction, harmlessness and recycling of municipal solid waste treatment. The company wholly owns Hengyang and Xinyu waste incineration power plants and shares in Changsha domestic waste incineration power plant. At present, the designed waste disposal scale of Hengyang and Xinyu waste incineration power plants is 2400 tons / day, and the disposal scale of Changsha domestic waste incineration power plant project company is 5100 tons / day.

Hazardous waste harmless disposal refers to the process of reducing hazardous waste, reducing its harmfulness and finally eliminating the pollution attribute of hazardous waste through incineration, landfill, physicochemical and other treatment processes. The hazardous waste business belongs to the rigid needs of the industrial system, has the characteristics of stronger certainty, more marketization and easier to reflect the long-term value of high-quality enterprises. At present, the company has two hazardous waste disposal projects, Jiangsu yongzhiqing and Gansu Hexi, The approved disposal scale is 71400 tons / year.

In the field of new energy, the company has obtained a core technology research and innovation platform with independent intellectual property rights, and has rich engineering practical experience in the design, construction and operation management of new energy projects. At present, the company has invested and built photovoltaic projects such as lingjiaocha in Yiyang, Jiaoshan rice industry in Hengyang, Xingyi logistics park in Chenzhou and Gaoling International Trade City, with an annual power generation of about 41.7 million kwh. 3. Environmental advisory services

The company’s environmental consulting services include environmental consulting and environmental testing business. In the process of carbon neutralization, the construction of relevant environmental protection projects and energy conservation and emission reduction are inseparable from the front-end consulting and testing work. The company’s consulting and testing businesses include environmental stewardship, environmental impact assessment, ecological and environmental protection planning, pollution site investigation and risk assessment, environmental supervision, carbon neutralization implementation path research and other businesses.

The company has established a dual carbon Research Institute in August 2021 to study the policy, market, technology and business model in the dual carbon field, carry out the R & D, transformation and application of carbon neutralization technology, and provide policy consulting services and technical solutions for leading enterprises in key carbon emission industries such as iron and steel, petrochemical, electric power, building materials and nonferrous metals. (II) market position

Under the background of good policies and rigid market demand, the company will further deepen and consolidate its industry leading position in soil remediation, air pollution control, new energy and other fields, and actively promote solid waste and hazardous waste disposal business and environmental consulting business by relying on its core technology advantages and continuous innovation and R & D strength. After years of deep cultivation in the industry, the company has certain core competitive advantages in the field of environmental protection. It will continue to give full play to its advantages in comprehensive environmental protection services, adhere to the development strategy of “engineering + operation” and “double carbon” comprehensive service providers, actively expand its business across the country, and has gradually extended from traditional air pollution control to the whole industrial chain of environmental protection, such as solid and hazardous waste treatment, soil remediation, environmental consulting, new energy and double carbon comprehensive services, Business performance and industrial scale have developed steadily. The company has the leading R & D technology and mode innovation ability, constructs a sound sustainable development trend from the perspective of technical achievements, technical application, good customer base and rich project operation experience, and further consolidates and improves the strategic positioning of “China’s leading comprehensive environmental service provider”.

(III) performance drivers

1. The system of laws and regulations has been improved day by day, and the support of industrial policies has been strengthened

With the increasingly severe environmental situation, in recent years, the state has strengthened the supervision of soil and environmental pollution and the support for relevant pollution control and remediation. The construction of systems related to industrial laws and regulations has also made significant progress. The increasingly sound and perfect legal and regulatory system, the gradual implementation of industrial policies and the increasing policy support have created a favorable environment for the standardization and sustainable development of the environmental remediation industry.

In January 2015, the revised environmental protection law was officially implemented, which stipulated the basic systems such as environmental planning, environmental standards, environmental monitoring, environmental assessment, ecological compensation and pollutant discharge permit, improved the basic system of environmental protection and strengthened the environmental responsibility of the government and enterprises. The implementation of the new environmental protection law is of great significance to protect and improve the environment and prevent pollution and other public hazards.

In August 2018, the Standing Committee of the National People’s Congress passed the law on the prevention and control of soil pollution. The law on the prevention and control of soil pollution put forward the principle of “adhering to prevention first, protection priority, classified management, risk control, pollution responsibility and public participation”, emphasizing that the person responsible for soil pollution has the obligation to implement soil pollution risk control and remediation. The promulgation and implementation of the law on the prevention and control of soil pollution provides a legal guarantee for the prevention and control of soil pollution and the solid promotion of the battle for the defence of pure land.

At the general debate of the 75th UN General Assembly in September 2020, China clearly put forward the goal of carbon peaking and carbon neutralization for the first time. The president told the world that China would adopt stronger policies and measures, and promised to reach the peak by 2030 and achieve the ambitious goal of carbon neutrality by 2060. Subsequently, carbon neutralization and carbon peaking goals were mentioned in several major working meetings and external Q & A.

In addition to the above-mentioned laws, regulations and industrial policies, the state has also actively issued relevant support policies in the protection of the Yangtze River, ecological protection and high-quality development of the Yellow River Basin, rural revitalization, “waste free city” construction, comprehensive land improvement throughout the region, establishment of incentive mechanism and acceleration of mine ecological restoration, so as to promote the healthy, stable and orderly development of the industry. 2. Broad market space

The 2021 government work report pointed out that in 2021, we will continue to strengthen pollution prevention and ecological construction and continuously improve environmental quality. We will further implement the strategy of sustainable development, consolidate the achievements of the battle to defend blue sky, clear water and pure land, promote the green transformation of production and lifestyle, and propose to continue to strengthen the governance of ecological environment. At the same time, we will do a solid job in carbon peaking and carbon neutralization. Formulate an action plan for peaking carbon emissions by 2030. With the introduction of the government work report, the signal of continuously strengthening green development and expanding and strengthening the environmental protection industry is becoming more and more obvious, and the industries and sectors related to environmental protection are expected to continue to benefit.

From 2013 to 2019, China’s fixed asset investment in ecological protection and environmental governance continued to increase from 142.57 billion yuan to 749.92 billion yuan, with a six-year CAGR of 31.9%. In 2020, the fixed asset investment for ecological protection and environmental governance exceeded 810 billion yuan, a year-on-year increase of 8.6%. Since February 1, 2021, the administrative measures for Carbon Emission Trading (for Trial Implementation) issued by the Ministry of ecology and environment has been officially implemented, and the national carbon market has been put into operation, effectively stimulating the willingness of enterprises to save energy and reduce emissions, so as to ensure the realization of the goal of “carbon peak and carbon neutralization”. 3. Main accounting data and financial indicators (1) whether the company needs to retroactively adjust or restate the accounting data of previous years in recent three years √ yes □ no retroactively adjust or restate the reasons for business merger under the same control

Unit: Yuan

At the end of 2020, the end of this year is higher than that at the end of 2019 of last year

Increase or decrease at the end of 2021

After adjustment, after adjustment, base note top note

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