On the evening of January 21, Niutech Environment Technology Corporation(688309) (688309) released the performance forecast. It is estimated that the operating revenue will reach 83 million yuan to 85 million yuan in 2021, and the net profit attributable to the owner of the parent company will reach – 8.6 million yuan to – 10.3 million yuan in 2021, a decrease of about 54.572 million yuan to 56.272 million yuan compared with the same period of the previous year.
According to the Listing Rules of Shanghai Stock Exchange’s science and innovation board, the financial data of Niutech Environment Technology Corporation(688309) 2021 touch the financial delisting Portfolio Index of “operating revenue + net profit”, and the company’s shares will be subject to delisting risk warning after the disclosure of the 2021 annual report.
This means that Niutech Environment Technology Corporation(688309) will become the first * ST company since the opening of the science and innovation board.
Niutech Environment Technology Corporation(688309) it 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 the company in the announcement, there is no significant adverse change in the company’s core competitiveness and sustainable operation ability. The decline in performance in 2021 is the periodic performance fluctuation experienced by the company in the development stage, mainly due to the following three factors.
First, the industry characteristics at this stage are easy to cause short-term performance fluctuations.
The various industrial continuous cracking production lines provided by the company to customers are a large-scale system project. This business belongs to heavy asset investment. With the gradual implementation of customer orders, old customers usually do not add project orders in a short time. Therefore, the company needs to continuously expand new customers and maintain business continuity. The company has a long order cycle and many business links. It takes a long time period from contacting customers through online publicity, exhibitions and other channels to finally signing sales contracts with customers. The promotion of the project is vulnerable to epidemic situation or policies and other factors.
second, the implementation of orders in 2021 did not meet expectations, which was greatly affected by major customers.
Affected by changes in the external environment, customers’ own conditions and the epidemic situation in 2020, orders from Chinese and overseas customers failed to be signed as scheduled. The actual amount of orders signed by the company in 2020 was only 29.66 million yuan, and the amount of new orders signed in 2020 was less, which directly affected the amount of revenue recognition in 2021. Meanwhile, 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, the implementation progress of some orders in hand of the company was less than expected.
According to the company’s disclosure in the reply to the regulatory inquiry letter of the third quarterly report of 2021, the company has a certain dependence on major customers, and about 60% of its revenue in recent years comes from Karamay Shuntong Environmental Protection Technology Co., Ltd., the largest customer. With the reduction of solid waste, customers’ demand for the treatment of cracking equipment decreased accordingly. The company’s sales revenue from Shuntong environmental protection decreased significantly to 8.2468 million yuan, accounting for only 18% of the total revenue.
third, affected by the epidemic, new orders were delayed or failed to sign.
Affected by the epidemic in 2021, the company’s market development was delayed, customers’ on-site visit and due diligence were limited, and the order signing time was later than expected. At the same time, the customer’s project approval procedures are time-consuming, and the implementation progress of newly signed orders is delayed. The company signed 10 new orders in 2021, with an order amount of 190.1 million yuan. Among them, the contract amount in December was 89.8 million yuan, accounting for 47.24%. According to the company’s revenue recognition policy, the revenue of the above new orders in December can only be recognized as less than 10000 yuan in 2021.
The company also stated in the announcement that by the end of 2021, the amount of orders on hand that the company has not confirmed revenue is about 208698700 yuan (including tax), and it is expected that about 60% of the revenue will be confirmed in 2022. At the same time, the reserves of customers outside China are good, and it is expected that new orders will be signed in 2022.
According to the analysis of insiders, waste pyrolysis treatment changes the original treatment methods such as incineration and landfill, 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.
The sharp decline of Niutech Environment Technology Corporation(688309) performance has also received close attention and key inquiries from the Shanghai Stock Exchange. According to the official website of Shanghai Stock Exchange, after the disclosure of the company’s semi annual report and third quarterly report in 2021, 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.
The 21st Century Business Herald reporter noted that at present, the performance forecast unit of the science and innovation board has increased by more than 90%, and the “Star” of Niutech Environment Technology Corporation(688309) is only a case. 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.
