On April 28, the environmental protection leader Chengfa Environment released its 2023 annual report, achieving an operating income of 6.522 billion yuan, a year-on-year increase of 2.61%; The net profit attributable to shareholders of the listed company was 1.075 billion yuan, a year-on-year increase of 1.78%.
In order to ensure a reasonable return on investment for shareholders and combine the capital needs of enterprise development, Urban Development Environment intends to distribute cash dividends of RMB 2.52 (tax included) to all shareholders for every 10 shares based on the total number of shares as of December 31, 2023, with a total cash distribution of RMB 162 million, accounting for 15.05% of the net profit attributable to the owners of the parent company in the consolidated statements for this year.
The reporter of Dahe Finance Cube noted that during the reporting period, as of the end of the reporting period, the company's 32 domestic waste incineration power generation projects have been put into operation (of which 5 will be put into operation in 2023), and the company's competitive advantage has been significantly improved.
32 waste-to-energy projects have been put into full operation
The profit of power generation and tons of garbage continued to increase
At present, urban life brings a huge amount of domestic and construction waste, if not dealt with in time, it will cause serious disruption to people's lives. Household waste incineration power generation can be turned into green electricity and heat.
In 2023, solid waste treatment and sanitation business, represented by domestic waste incineration power generation, has become an important aspect of the development of urban development's environmental business. According to the financial report data, during the reporting period, the revenue scale of its solid waste treatment and sanitation business reached 2.665 billion yuan, a year-on-year increase of 27.15%, accounting for 40.87% of the total operating income.
Urban Development Environment said that during the reporting period, the company took waste-to-energy as the center of the circle to develop synergistically and mine value. The construction of 5 domestic waste incineration power generation projects in Kashgar and Changji has been completed, and a number of sanitation projects have been implemented in Xingyang, Minquan, Huangchuan, Luohe Zhaoling District, etc.; Vertical extension to enhance added value, assist the government to attract investment, Jiaozuo Green Expo and other 9 domestic waste incineration power generation projects to carry out heating project transformation.
As of the end of the reporting period, 32 urban development environmental domestic waste incineration power generation projects have been put into operation (5 will be put into operation in 2023), with a total processing capacity of 28,550 tons/day (excluding shareholding companies). Among them, a total of 22,350 tons/day belong to non-competitive allocation projects; Among the non-competitive allocation projects, 8,100 tons/day of subsidy funds are all borne by the central government, and the rest is shared by the central government; Of the 22,350 t/d, 9,900 mt/d have been included in the national renewable energy subsidy list.
Urban Development Environment said that all waste-to-energy projects were transferred to operation, the production indicators achieved "five increases and two decreases", the power generation per ton, the total power generation, and the profit per ton of garbage continued to increase, and the electricity consumption rate of the whole plant decreased by 0.86 percentage points year-on-year, and the main production indicators of many waste-to-energy projects such as Huanggang and Jiyuan reached the leading level in China, and the solid waste treatment business moved towards the leading standard of national solid waste operation.
In addition, thanks to the transfer of all waste-to-energy projects into operation, the heat supply of urban development environment cogeneration continued to grow, with a total of 1.0415 million tons of external heat supply throughout the year, an increase of 461.94% year-on-year. The waste-to-energy projects in Hebi and Huaxian counties have successfully passed the AAA rating of the industry, marking that the harmless treatment has entered the leading ranks in China.
As of the end of the reporting period, the company had 4 hazardous waste disposal projects, with a total annual treatment capacity of 299,500 tons. Among them, 2 projects have been operated, with a total annual processing capacity of 48,500 tons; There are 2 projects under construction, with a total annual processing capacity of 251,000 tons. The company has 5 medical waste disposal projects with a total annual treatment capacity of 16,070 tons, all of which have been put into operation.
The synergistic advantages of the industrial chain are emerging
The digital and intelligent construction of enterprises continues to empower the upgrading of the main business
As a national comprehensive environmental protection platform, the urban development environmental industry chain has obvious synergistic advantages.
It is reported that based on the vein industrial park, the urban development environment vertically extends the environmental protection industry chain, develops comprehensive urban sanitation services and environmental protection program integration consulting services at the front end, lays out waste resource utilization and regional carbon trading services at the end, and horizontally expands the environmental protection industry formats such as kitchen sludge, medical hazardous waste disposal, sewage treatment, and clean energy supply, and gradually covers the whole industrial chain, so as to create an integrated, regionalized, and systematic high-quality environmental comprehensive treatment service capacity.
Through in-depth analysis of the ecological scene of the prefecture and city, it can also formulate a targeted environmental protection portrait of "one place, one policy", and output a replicable and promotable comprehensive environmental management service for the whole industry chain.
In addition, the urban development environment also has a total mileage of 255 kilometers of core road and bridge assets, accounting for 3.85% of the total mileage of expressways in the province. Urban Development Environment said that the company's road and bridge assets have abundant cash flow, which can effectively hedge the macro environmental impact, alleviate the pain points of the industry such as the long collection cycle of accounts receivable of waste-to-energy enterprises, improve the company's ability to resist risks and pass through the cycle, and lay a solid foundation for the company to continue to do better, stronger and bigger environmental protection in the next step.
During the reporting period, the digital intelligence and technological innovation of the urban development environment made steady progress, focusing on improving the ability of scientific and technological innovation and tapping new quality productivity in the digital era. The 3060 Industry Research Institute was established, and a three-level scientific and technological innovation system of "1 institute + 11 institutes + N room" was initially established, and scientific research projects were declared around new energy-saving and environmental protection technologies, complete sets of equipment, and AI-enabled intelligent software. Signed a strategic cooperation agreement with Huanghuai Laboratory to explore technical research and industrialization in fly ash treatment and water ecological recycling.
Activate the digital productivity of environmental protection, and all waste-to-energy operation projects are connected to the one-stop whole-process management and control platform to achieve integrated online dynamic management. Replicate the experience of Hebi smart power plant, develop and build technologies such as "AI + intelligent control system", and iteratively upgrade projects in Jiaozuo, Anyang, Luohe and other projects to form a complete set of intelligent solutions for waste-to-energy power plants that combine cloud and edge.
Accelerate the promotion of the "unattended, less manned" management mode, the development of a smart weighbridge management and control system that integrates functions such as vehicle independent registration and automatic flow limiting, and comprehensively promote its application. The digital supervision platform for smart water affairs was officially established, and the analysis of production and operation was gradually automated. The smart sanitation cloud platform has launched 6 subsystems, including operation cloud, operation cloud, personnel cloud, maintenance cloud, smart environmentalist app, and Yu Xiubao app, to achieve real-time control of the whole process of people, vehicles, materials, and operations.
Great Wall Life Insurance was promoted to the third largest shareholder
We will work with central enterprises to steadily promote the international market
Urban Development Environment is committed to building a national environmental protection industry leader led by specialization and driven by marketization.
According to the annual report, the company's waste incineration projects are all over the country, with good pollutant emission control, continuous growth in asset economic benefits, and the national business layout reflects the company's ability to develop projects and operation management in different regions, which helps to reduce the impact of unfavorable factors in local areas on the whole, and also lays the foundation for expanding overseas and long-term growth businesses such as "incineration +".
According to the plan and arrangement, in 2024, urban development environment will rely on the carrier of waste-to-energy projects to accelerate the transformation and upgrading of low-carbon and environmental protection business with integrated and comprehensive management. Promote the strong synergy of "collection, transfer, transportation and burning" of garbage, take waste-to-energy projects as the center, seize high-quality sanitation projects with "one place, one policy", explore the layout of renewable resource recycling, municipal operation and maintenance, greening management, charging station construction and operation and other businesses, and create a standardized "urban housekeeper" service plan. Accelerate the development of cogeneration, slag recycling and other businesses, the layout of fly ash disposal, landfill remediation and other derivative businesses, improve the comprehensive benefits of the industrial chain. Plan the layout of regional environmental governance, and horizontally expand the kitchen, sludge, and water treatment co-disposal projects.
It is worth noting that in 2024, CDE Environment will also "go overseas hand in hand" with central enterprises to steadily explore overseas high-quality environmental protection projects. According to the annual report, in 2023, CDE Environment's international business has been steadily advanced, and strategic cooperation agreements have been signed with China Construction Group, a leading infrastructure company, and China Harbor to develop high-quality environmental protection projects in ASEAN, Southeast Asia and along the "Belt and Road".
In addition, in the first quarter of this year, "Great Wall Life Insurance Co., Ltd. (hereinafter referred to as Great Wall Life) - Own Funds" has become a new shareholder of Urban Development Environment and its third largest shareholder, with a shareholding scale of 19270478 shares, accounting for 3% of the shares.
The reporter noted that in 2023, Great Wall Life also increased its holdings in another listed company in Henan - Zhongyuan Expressway, as of the end of 2023, Great Wall Life's new and holding of Zhongyuan Expressway accounted for 5.30%, and the shareholding ratio of "Great Wall Life-Dividend-Individual Insurance Dividend Product" increased from 1.91% to 3.20%.
Industry insiders said that the increase in the holdings of two listed companies in Henan by insurance capital also means that the recognition of the development prospects of these two companies also confirms that the "insurance asset management Henan tour" previously promoted by Henan Province is gradually bearing fruit.