On the evening of April 22, Cecep Environmental Protection Equipment Co.Ltd(300140) ( Cecep Environmental Protection Equipment Co.Ltd(300140) ) released the annual report of 2021. The data showed that Cecep Environmental Protection Equipment Co.Ltd(300140) achieved an operating revenue of 1.134 billion yuan in 2021, a year-on-year decrease of 39.79%; The net profit attributable to shareholders of listed companies was -236 million yuan, a year-on-year increase of 51.81%.
The reporter of the daily economic news found that due to the decline of profits in the traditional business market, the new kinetic energy market was restricted, which had a significant impact on Cecep Environmental Protection Equipment Co.Ltd(300140) performance. Since 2019, Cecep Environmental Protection Equipment Co.Ltd(300140) has suffered losses for three consecutive years. Even if it was included in the list of “demonstration enterprises of scientific and technological reform” in 2020, it still did not reverse the loss situation.
Net loss of 236 million yuan
As a leading manufacturer of high-end energy-saving and environmental protection equipment in China, it is a central enterprise specializing in the production of environmental protection equipment. Its predecessor was Xi’an Qiyuan electromechanical equipment company. Before 2015, its main business was mainly the R & D, manufacturing and sales of electrical equipment.
According to the latest performance of Cecep Environmental Protection Equipment Co.Ltd(300140) company, in 2021, the company’s main revenue was 1.134 billion yuan, a year-on-year decrease of 39.79%; The net profit attributable to the parent company was -236 million yuan, a year-on-year increase of 51.81%; Deduct non net profit of -377011500 yuan, an increase of 24.91% year-on-year.
The reporter of the daily economic news noted that during the reporting period, the overall operating income of the company decreased and the net profit was negative, which was mainly affected by the business disposal caused by the equity transfer of subsidiaries and the setback of the company’s main business market.
At the beginning of 2021, Cecep Environmental Protection Equipment Co.Ltd(300140) completed the transfer of 100% equity of Beijing integrated environmental protection Co., Ltd., and Qiyuan (Xi’an) Darong Environmental Protection Technology Co., Ltd. was no longer included in the scope of merger. The original environmental energy efficiency monitoring (smart environment) and big data service business and air pollution reduction business were set up, resulting in a sharp decline in the company’s operating income.
In addition, in terms of energy-saving and environmental protection equipment business, due to the impact of the market environment, the operating revenue and net profit of energy efficiency equipment business, sewage treatment equipment and other businesses decreased compared with the same period last year.
The operation of subsidiaries and market business were both frustrated
The reporter of the daily economic news noted that as early as 2020, Cecep Environmental Protection Equipment Co.Ltd(300140) planned to transfer all the equity of its Xi’an Qirong technology industry company and Beijing integrated environmental protection company in succession. By the end of September 2020, the net profit loss of Qirong technology was 6.46 million yuan; By the end of August 2020, the net profit of integrated environmental protection had lost 76.63 million yuan.
Reasonably speaking, in the case of poor performance of subsidiaries, the transfer of equity of the two companies is indeed conducive to Cecep Environmental Protection Equipment Co.Ltd(300140) getting rid of part of the performance burden. For example, during the reporting period, Cecep Environmental Protection Equipment Co.Ltd(300140) deducted non net profit of -377011500 yuan, a year-on-year increase of 24.91%, mainly due to the investment income realized by the equity transfer of Beijing fusion environmental protection Co., Ltd. and government subsidies.
In the long run, the sequelae of the transfer of subsidiaries still exists.
In 2021, due to the transfer of 100% equity and creditor’s rights of integrated environmental protection, the revenue of environmental energy efficiency monitoring (smart environment) and other related businesses decreased significantly year-on-year; From January 1, 2021, Qiyuan Darong will no longer be included in the scope of the company’s merger, and the relevant business income and profit will also decline.
From the perspective of prolonging the annual report, the net profit of Cecep Environmental Protection Equipment Co.Ltd(300140) 2019-2021 after deducting non recurring profits and losses was -472811 million yuan, – 5020478 million yuan and -3770115 million yuan respectively, all of which were negative. And the audit report of the latest year shows that the company’s ability to continue as a going concern is uncertain.
It is not difficult to see that the business losses and transfer of subsidiaries have a great impact on the performance of Cecep Environmental Protection Equipment Co.Ltd(300140) .
According to the statistics of the annual report, from January to December 2021, Cecep Environmental Protection Equipment Co.Ltd(300140) main revenue components are: environmental protection 68.58%, manufacturing 29.67% and other industries 1.76%. Compared with 2020, the overall operating income of the company has decreased to a certain extent, and the net profit attributable to the listed company is negative.
It is worth noting that from 2019 to 2021, the R & D investment of the company was 135 million yuan, 188 million yuan and 525667 million yuan respectively, and the R & D investment accounted for 5.35%, 7.39% and 4.64% of the operating revenue. In 2021, the company’s R & D investment and its proportion in operating revenue decreased compared with last year.
To sum up, Cecep Environmental Protection Equipment Co.Ltd(300140) is in a critical period of strategic and business development adjustment and transformation, and traditional businesses are facing adverse factors such as declining market volume, rising costs and declining profits.
However, for the environmental protection industry, “wisdom + environmental protection” is a new direction for the development of the environmental protection industry in the future, which is of great significance to the sustainable development of the national economy. In recent years, national policies have also strongly supported its development.
Cecep Environmental Protection Equipment Co.Ltd(300140) although some adjustments have been made at the business level, the overall trend is excellent. Therefore, it is urgent for Cecep Environmental Protection Equipment Co.Ltd(300140) to actively promote the transformation and upgrading of the company’s business, increase innovation investment, build a comprehensive environmental protection enterprise, optimize the asset structure and open up new growth space.
