according to the 2021 annual report released on Tianyu Eco-Environment Co.Ltd(603717) april 25, the company achieved an operating revenue of 638 million yuan last year, a year-on-year increase of 9.53%; The net profit attributable to the parent company was -215 million yuan, with a year-on-year increase of 36.39%; The net profit after deducting non-profit was – 247 million yuan, with a loss increase of 52.62%. The company explained that under the background of revenue growth, the increase in losses was mainly due to the rise in the price of raw materials, the increase in production costs and the single withdrawal of bad debt reserves for accounts receivable of engineering projects.
It is understood that during the reporting period, the company focused on the suburban and rural markets and the new energy market, and formed three sectors of “ecological environment”, “ecological agriculture and animal husbandry” and “photovoltaic new energy” by reclassifying and summarizing the existing businesses. Among them, the “ecological environment” business actively shrinks, mainly completes the performance of orders on hand, and actively promotes the debt settlement of key projects; The “ecological farming and animal husbandry” business included pig breeding into the development strategy, but it coincided with the trough of the “pig cycle”, which led to an obvious drop in pig prices. The company took the initiative to control the breeding scale and only put into operation the relevant pig farms in Chongming and Wuhan to ensure that the losses were controllable; “Photovoltaic new energy” business, as the transformation and supplement of eco-environmental engineering business, the company has obtained the power construction qualification required for distributed photovoltaic construction, formed a mature business team, negotiated and signed some “distributed photovoltaic power generation project” contracts, but has not yet contributed to the operating revenue.
The company believes that under the current situation, the threshold of the garden engineering industry has been reduced, the profitability has gradually declined, and the problems such as financing and collection have not been effectively solved. Although the company continues to actively seek strategic transformation and has made some progress and breakthroughs, its management and operation experience is still insufficient. The above-mentioned new business segments are different from the company’s traditional business in terms of customers, market environment and technical background, and there is great uncertainty about whether the transformation can succeed in the end. In addition, by the end of the 21st century, the book value of the company’s accounts receivable had reached 569 million yuan, accounting for 17.09% of the total assets in the same period, of which long-term accounts receivable accounted for a large proportion, which had a great impact on the company’s financing ability and cash flow.
Looking forward to the future, Tianyu Eco-Environment Co.Ltd(603717) said that it would continue to focus on suburban and rural markets and new energy markets, reclassify and summarize existing businesses, adopt a stable training model, reasonably allocate all kinds of resources for the harmonious development of traditional and emerging businesses, and complete the strategic transformation of the company.
