Safbon Water Service (Holding) Inc.Shanghai(300262)
Annual report for 2021
April 2022
Section I important tips, contents and definitions
The board of directors, the board of supervisors and other directors, supervisors and senior managers except for the directors, supervisors and senior managers who have objection statements below guarantee that the contents of the annual report are true, accurate and complete, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities.
Objection statement of directors, supervisors and senior managers
Name, title, content and reason
The specific contents are as follows: (1) the amount of asset impairment provision and write off assets in 2021 is too large; (2) Correction of accounting errors.
(1) it is difficult for Liu Tao to judge the reasonableness of the company’s assets written off in 2021 because of the substantial changes in the amount of assets written off in 2021;
(2) The correction of accounting errors includes the fact that the Dongying project did not have franchise rights in previous years
I think it is a BOT project, and I doubt it.
Ms. Liu Tao, the independent director of the company, cannot guarantee the authenticity, accuracy and completeness of the contents of the 2021 annual report. Please pay attention to it.
Wang Xian, the person in charge of the company, Yu Xiuli, the person in charge of accounting, and Xu Wenjie, the person in charge of the accounting organization (Accounting Supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in this annual report.
All directors have attended the meeting of the board of directors to consider this report.
(I) reasons for performance loss
1. Impact of operating income
In 2021, affected by covid-19 epidemic and the company’s debt crisis financing environment, the company’s external orders decreased; Secondly, the company delayed the commencement of some projects and slowed down the construction progress of projects under construction; In addition, some projects in the early stage have been completed or are in the process of project price review and settlement this year, and the operating income in the early stage has been adjusted according to the latest progress of price review or the final result of price review. As a result, the operating revenue of the company in 2021 decreased by 68.25% compared with the same period of the previous year.
2. Impact of bad debt provision
In 2021, due to the covid-19 epidemic, economic downturn and other external comprehensive factors, the collection of accounts receivable of the company’s customers slowed down. The company accrued 1408991 million yuan of credit impairment loss of various accounts receivable in accordance with the relevant provisions of accounting standards and accounting policies of the company.
3. Impact of withdrawing asset impairment loss
According to the accounting standards and the requirements of the internal control system of listed companies, the company conducted impairment tests on various assets at the end of the year, and accrued 388382100 yuan of impairment losses of various assets in 2021.
(II) overview of main business and core competitiveness
The company focuses on the environmental protection water industry. Its main business areas include municipal water treatment, seawater desalination, zero discharge and recycling of industrial wastewater, solid waste treatment and disposal and other subdivided fields. It has a complete and mature industrial chain in the field of environmental protection water treatment and can provide comprehensive services in the whole industrial chain, such as technology R & D, engineering consulting and design, equipment production and manufacturing, engineering construction and installation, project investment and operation. The company’s main products include integrated water treatment technology solutions with dissolved air flotation technology, nano ceramic flat membrane and other materials as the core, and provide customers with integrated solutions for sewage treatment, tap water treatment, industrial wastewater treatment and zero discharge, seawater desalination, sludge treatment and disposal, distributed energy, urban and watershed ecosystem, sponge city construction and so on.
The core competitiveness of the company is mainly reflected in the advantages of the whole industrial chain and system integration, R & D and innovation ability, technical equipment advantages, characteristic industries of seawater desalination, the layout of new markets and new tracks, the system reform of the business division, the design database of huge systems, the brand reputation of high-value enterprises and the advantages of international talents (for a detailed description, see “III. core competitiveness analysis” in Section III “management discussion and analysis” of this report).
Although the company’s main financial indicators changed adversely in 2021, it was mainly affected by the covid-19 epidemic and the company’s debt crisis financing environment, and the overall trend of the industry was better.
(III) industry situation
2021 is the first year of the 14th five year plan. With the introduction of a series of national policies and increasing investment in the environmental protection industry, environmental protection enterprises will also usher in new development opportunities. On September 22, 2020, Xi Jinping General Secretary announced at the general debate of the 75th UN General Assembly that China will strive to reach the peak of carbon dioxide emissions by 2030, strive to achieve carbon neutralization by 2060, and clarify the timetable for China’s carbon peak and carbon neutralization. In this context, the development of ecological and environmental protection industry will get more support, and the dividend period of the industry will still be long in the future.
(IV) the decline in operating income and net profit this year is caused by various reasons, and the core competitiveness of the company has not been affected. It is expected that with the increase of shareholders’ support for the company and the implementation of the plan, the company will develop continuously and healthily, and there is no major risk in its sustainable operation ability.
(V) progress on the issue of shares to specific objects. Affected by the fact that the company and its former vice chairman, Mr. Zhang Chunlin, are currently being investigated by the China Securities Regulatory Commission, the company will stop issuing shares to specific objects. After the investigation is completed, the company will comprehensively judge whether to reconsider the relevant scheme of issuing shares to specific objects based on the investigation results and meeting the conditions of issuing shares to specific objects.
The company shall comply with the disclosure requirements of “energy conservation and environmental protection service business” in the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 4 – gem industry information disclosure:
In Section III “management discussion and analysis” of this report, “(III) possible risks” of “Xi. Prospect of the company’s future development”, the company describes in detail the possible risks and Countermeasures in the company’s operation. Please pay attention to the relevant contents.
The profit distribution plan approved by the board of directors is: take 669766999 as the base, distribute cash dividend of 0.00 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.
catalogue
Section I important tips, contents and definitions Section 2 company profile and main financial indicators Section III Management Discussion and Analysis Section IV corporate governance 39 Section V environmental and social responsibility Section VI important matters Section VII changes in shares and shareholders Section VIII preferred shares 101 section 9 relevant information of bonds 102 section x financial report one hundred and seven
Directory of documents for future reference
1、 Financial statements signed and sealed by the legal representative of the company, the person in charge of accounting and the person in charge of accounting organization.
2、 The original of the audit report with the seal of the accounting firm and the signature and seal of the certified public accountant. 3、 The originals of all documents and announcements publicly disclosed on the website designated by the CSRC during the reporting period. 4、 The original of the 2021 annual report signed by the legal representative of the company. 5、 Other documents for future reference. The location of the above documents for reference is the Securities Affairs Department of the company.
interpretation
Explanatory item refers to the explanatory content
The company, the company and Safbon Water Service (Holding) Inc.Shanghai(300262) refer to Safbon Water Service (Holding) Inc.Shanghai(300262)
Shandong Gaochuang refers to Shandong Gaochuang Construction Investment Group Co., Ltd
Galaxy assets refers to China Galaxy Securities Co.Ltd(601881) Asset Management Co., Ltd
CSRC refers to the China Securities Regulatory Commission
Shenzhen stock exchange refers to Shenzhen Stock Exchange
The articles of association refers to the Safbon Water Service (Holding) Inc.Shanghai(300262) articles of association
Company Law refers to the company law of the people’s Republic of China
Securities Law refers to the securities law of the people’s Republic of China
3 Rongyu Group Co.Ltd(002622) 017 public offering of “17 ba’an bonds” to qualified investors refers to
Corporate bonds (phase I)
General meeting of shareholders refers to the general meeting of Safbon Water Service (Holding) Inc.Shanghai(300262) shareholders
Board of directors refers to Safbon Water Service (Holding) Inc.Shanghai(300262) board of directors
Board of supervisors refers to Safbon Water Service (Holding) Inc.Shanghai(300262) board of supervisors
SWT refers to the wholly-owned subsidiary of safbon water technology, Inc
Kwi refers to kwi corporate verwaltungs GmbH, a wholly-owned subsidiary of the company
ITN refers to ITN nanovationag, the company’s holding subsidiary
DAF refers to the dissolved air flotation system, which is a kind of equipment or device used for solid-liquid or liquid-liquid separation in waterworks, sewage treatment, seawater desalination, etc.
Engineering procurement is “design procurement”. The core of this mode is system design and equipment integration. Under this business model, the provider first carries out scheme formulation, system design, equipment design and selection, and then purchases general equipment and materials to produce or customize EP
Core equipment and key components, purchased special hardware equipment, etc. Finally, a system that can complete specific functions is formed through system assembly and integration, and the whole set of integrated equipment is sold to the customer as a whole.
Engineering procurement construction: the company usually adopts EPC mode for the overall supporting water treatment projects and municipal water treatment projects of large industries such as electric power, petrochemical and coal chemical industry. This mode means that when the company sells complete sets of water treatment equipment, it also undertakes EPC to direct the civil installation construction related to the system equipment, including planning and design, civil construction, equipment procurement, equipment installation, system commissioning, commissioning and other work of the water treatment system, And be fully responsible for the quality, safety, construction period and cost of the construction project, and finally integrate the system
