On January 21, Niutech Environment Technology Corporation(688309) issued the announcement of annual performance loss in 2021. It is estimated that the operating revenue will reach 83 million yuan to 85 million yuan in 2021, the net profit attributable to the parent company will be – 8.6 million yuan to – 10.3 million yuan, and the non net profit attributable to the parent company will be – 20.5 million yuan to – 22.5 million yuan.
According to the stock listing rules of Kechuang board, the financial data of Niutech Environment Technology Corporation(688309) 2021 touched the financial delisting Portfolio Index of “operating revenue + net profit” (the net profit is negative and the operating revenue is less than 100 million yuan, the net profit shall be subject to the lower before and after deducting non recurring profits and losses, and the operating revenue shall deduct the business revenue irrelevant to the main business and the revenue without commercial substance), This means that Niutech Environment Technology Corporation(688309) may be subject to delisting risk warning.
two major reasons lead to performance decline
Niutech Environment Technology Corporation(688309) said that the decline of the company’s performance in 2021 was mainly affected by the decline of operating revenue, credit impairment loss and contract asset impairment loss.
Specifically, the year-on-year decrease of the company’s operating revenue in 2021 is mainly due to the covid-19 epidemic outside China and the changes in the situation of potential customers. The amount of new orders signed by the company in 2020 is small, which directly affects the amount of revenue recognition in 2021; In 2021, the implementation of individual projects was suspended or suspended due to government approval and other reasons, and affected by covid-19 epidemic and other factors outside China, the implementation progress of some orders in hand of the company was less than expected; The signing progress of some orders of the company in 2021 was delayed than expected, so that the revenue recognition amount of newly signed orders in 2021 was lower than expected.
At the same time, due to the early arrears of some projects not recovered in time, the company accrued the credit impairment loss of accounts receivable and notes receivable of about RMB 2012 million according to the accounting policies. As some projects have not been settled and large contract assets have been formed, the company has accrued about 9.64 million yuan of impairment loss of contract assets according to accounting policies. The total amount of the two is about 29.76 million yuan, which reduces the net profit of the company.
It is worth mentioning that the sharp decline in the performance of Niutech Environment Technology Corporation(688309) has been closely followed and key inquired by the Shanghai Stock Exchange. According to the official website of the Shanghai Stock Exchange, after the disclosure of the company’s semi annual report and third quarterly report in 2021, the Shanghai Stock Exchange issued regulatory inquiry letters at the first time, requiring the company to fully disclose the changes and reasons of the company’s operating performance, and requiring intermediaries to express verification opinions.
there is no significant adverse change in the ability to continue as a going concern
However Niutech Environment Technology Corporation(688309) at the same time, it is emphasized that the performance loss in the current period is the periodic performance fluctuation experienced by the company in the development stage, and there is no significant adverse change in the company’s core competitiveness and sustainable operation ability.
\u3000\u3000 “The above conditions are only factors affecting short-term performance, and there are no substantial adverse changes in the relevant policies, market environment and core competitiveness of the company’s industry. So far, 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, and the promotion of potential orders is relatively smooth. The company signed new orders in 2021 10 contracts were signed, with a contract amount of 190.1 million yuan (including tax). Compared with 2020, the number of contracts increased by 400.00% and the contract amount increased by 540.93%. As of December 31, 2021, the amount of orders on hand that the company has not recognized revenue is 208698700 yuan (including tax). “
According to public information, Niutech Environment Technology Corporation(688309) mainly produces continuous cracking equipment, which is mainly used for the treatment of solid wastes such as waste tires, waste plastics and dirty oil sludge.
According to the analysis of insiders, waste pyrolysis treatment changes the original incineration, landfill and other treatment methods, which is conducive to the harmless treatment or resource utilization of solid waste, reduce resource loss and promote recycling, which is in line with the national strategic orientation of developing green industry and circular economy. However, since the application of cracking treatment in many fields is in its infancy, the unbalanced characteristics of the early stage of the industry restrict the company’s business to maintain sustainable growth. In particular, the sewage sludge solid waste treatment business is greatly affected by the implementation of relevant environmental protection policies around the country. At present, the whole industry is still in the stage of market development.
In addition, the reporter of China Securities Journal noted that Niutech Environment Technology Corporation(688309) has certain technical characteristics in subdivided fields and has won technical awards and industry certification for many times. For example, the company’s core product “complete set of technology and equipment for low-temperature cracking and resource utilization of industrial continuous waste rubber and waste plastics”, won the national science and Technology Progress Award (second prize) in 2011, and is the only award-winning company in the same industry; The complete set of technology and equipment for waste oil sludge thermal decomposition and resource utilization was rated as a major environmental protection technology and equipment encouraged by the state by the Ministry of industry and information technology and the Ministry of science and technology in 2017. It is also the only selected equipment in the field of waste oil sludge treatment.
the performance forecast company of the science and Innovation Board exceeded 90% and increased in advance
At present, A-Shares have entered the peak of performance forecast of listed companies. According to statistics, Niutech Environment Technology Corporation(688309) “with star” is only a case. Among the science and Innovation Board companies that have issued performance forecast or performance description, more than 90% of them have increased in advance.
As of January 21, the official website of Shanghai Stock Exchange shows that 64 companies on the science and innovation board have issued performance forecasts or performance letters. The sector as a whole continued the high growth trend in the first three quarters, with 58 companies increasing in advance, accounting for more than 90%. Among them, 30 companies are expected to increase their net profit by more than 100% year-on-year in 2021, Beijing Hotgen Biotech Co.Ltd(688068) and Dongxin technology are expected to increase by 1684.65% and 1051.89% respectively. In addition, there are Guizhou Zhenhua E-Chem Inc(688707) and Sunshine Guojian Pharmaceutical(Shanghai) Co.Ltd(688336) two companies to turn losses.
Most Sci-tech Innovation Board companies are in the stage of rapid growth. Since the opening of the board, the rapid growth of performance is one of the most distinctive labels of Sci-tech Innovation Board companies.
An accounting expert told the China Securities Journal, “Kechuang board company is in the key stage of climbing the slope, and its performance scale is small. Compared with mature enterprises, growing enterprises face more uncertainty and risk factors. In the short term, fluctuations and changes in operating performance are inevitable. In the long term, technological innovation will contribute to the sustainable development of enterprises.”
As a matter of fact, the role of “wind vane” of net profit is weakening for Sci-tech Innovation Board companies, and factors such as R & D investment, technological innovation and business transformation ability have increasingly become the key to measure the long-term value of enterprises. For example, evaluating the “Market Research rate” of innovative drug enterprises is to evaluate the investment value of enterprises based on the value of R & D investment and R & D pipeline. The establishment and operation of the science and innovation board has gradually transformed the market’s sustainable profitability orientation for listed companies into sustainable operation orientation.
“Practice shows that under more effective market conditions, the enterprise value or long-term development quality is not highly related to the company’s short-term performance, but is closely related to the company’s R & D and innovation ability and technology transformation ability.” The above experts said.
