Affected by the decline in operating income and impairment losses, Niutech Environment Technology Corporation(688309) 4 disclosed the annual report of 2021 with losses. In 2021, the company achieved an operating revenue of 845659 million yuan, a year-on-year decrease of 51.56%; The net profit attributable to the parent company is -9.4818 million yuan. Due to the delisting clause that triggered a negative net profit and an operating income of less than 100 million yuan, the company will suspend trading for one day on April 27 and implement the delisting risk warning and resumption trading on April 28.
At the same time, the first quarter report of 2022 disclosed that the company’s performance rebounded sharply in the first quarter of this year, with an operating revenue of 394015 million yuan during the reporting period, a year-on-year increase of 101.15%; The net profit attributable to the parent company was 13.126 million yuan, a year-on-year increase of 442.23%. At the end of the first quarter, the company’s orders on hand reached 296 million yuan, consolidating the basis of annual performance.
Niutech Environment Technology Corporation(688309) is an innovative enterprise integrating research and development of organic waste cracking technology and manufacturing of cracking equipment, which is in a dominant position in the industry of organic waste cracking equipment. For the loss in 2021, the company is defined as “short-term periodic performance fluctuation in the development stage”.
The company explained that due to the epidemic situation outside China and changes in the situation of potential customers, the amount of new orders signed by the company in 2020 was less, which directly affected the amount of revenue recognition in 2021. At the same time, the implementation of individual projects of the company in 2021 was suspended or suspended due to government approval and other reasons, and affected by factors such as epidemic situation outside China, the implementation progress of some orders in hand of the company was less than expected; In addition, affected by the credit impairment loss and contract asset impairment loss, the net profit of the company decreased in 2021.
Niutech Environment Technology Corporation(688309) said that the above adverse factors are only factors affecting short-term performance. The company firmly believes that the company’s main business contributes to the realization of China’s “double carbon” and “double control” goals, can serve the high-quality development and sustainable development strategy of China and the world economy, and has long-term growth opportunities and space. The company will stick to its focus on the pyrolysis industry, adhere to R & D and innovation, continue to create specialized and new enterprise characteristics, and lead and promote the development of the industry.
High customer concentration is an important reason for Niutech Environment Technology Corporation(688309) performance fluctuations. From the annual report, the company is also actively changing this situation. The company said that in 2021, it strengthened the sales strategy of “actively going out”, actively sought and visited customers, and the quantity and quality of customer reserves have been greatly improved. During the reporting period, the company signed 10 new contracts with a contract amount of 190 million yuan (including tax). Compared with 2020, the number of contracts increased by 400% and the contract amount increased by 540.93%. Up to now, the execution of other orders in hand that have entered the implementation stage of the company is basically normal, the reserves of customers outside China are good, the promotion of potential orders is relatively smooth, and the number and coverage of customers of the company have increased significantly.
In the first quarter of this year, the company’s orders continued to rise. As of March 31, 2022, the company’s orders on hand are about 296 million yuan (including tax).
In terms of revenue structure, “other cracking production line” products were added in Niutech Environment Technology Corporation(688309) 2021, and the business segment achieved a revenue of 243541 million yuan and a gross profit margin of 53.42%.
The company actively explores new business models and extends the industrial chain and makes progress. In 2021, Niutech Environment Technology Corporation(688309) signed the organic hazardous waste boo project framework agreement and the oil-bearing hazardous waste treatment system boo project contract of Enshi shale gas “three wastes” resource pilot experimental base with an environmental protection enterprise in Zhejiang and Enshi selerun Environmental Protection Engineering Co., Ltd., respectively, to start the technical service business in the field of paint residue and oil-based rock debris hazardous waste treatment, forming a new profit model.
According to the annual report, the R & D investment of the company in 2021 was 8.247 million yuan, accounting for 9.75% of the operating revenue, an increase of 3.78 percentage points year-on-year. In 2021, the company obtained 14 newly authorized foreign patents, including 1 US patent, 12 Chinese utility model patents and 1 Chinese design authorization; There are 17 newly applied patents, including 7 Foreign invention patents, 6 Chinese invention patents and 4 Chinese utility model patents. At the same time, the company’s products began to be upgraded iteratively based on the development of technology, and were successfully used in some new customer orders. By the end of the reporting period, the company had obtained 92 foreign patents, including 37 invention patents, 52 utility model patents and 3 appearance patents.
During the reporting period, the national standard “technical specification for thermal cracking of waste tires and rubber” of the company as the first drafting unit was implemented on November 1, 2021, and the group standard “waste tires / rubber reclaimed oil” of the company as the first drafting unit was implemented on June 1, 2021.
It is noteworthy that the company’s technology began to promote replication in more fields. In 2021, the company realized equipment manufacturing and installation with industrial continuous coal tar pyrolysis technology, equipment manufacturing with industrial continuous metal resource pyrolysis reduction technology, expansion and application in the fields of paint residue, oil-based rock debris and medical waste, and signing of contracts or cooperation intentions.
While disclosing the annual report, the company also threw out a repurchase plan. The total amount of funds to be repurchased by the company shall not be less than 10 million yuan (inclusive), not more than 20 million yuan (inclusive), and the repurchase price shall not exceed 21 yuan / share (inclusive). All repurchased shares will be used for the implementation of employee stock ownership plan or equity incentive.
At the same time, the company’s major shareholders also threw out the lock up plan. According to the announcement, Beijing rongxinyuanchuang Investment Management Co., Ltd. and its related parties, Hefei fengderui high tech industry investment partnership (limited partnership) and its related parties, which hold more than 5% of the company’s shares in total, have no plan to reduce the company’s shares in the next three months. The controlling shareholders, actual controllers, other shareholders holding more than 5%, directors, supervisors and senior managers of the company have no plans to reduce their shares in the next three months and six months.
