Stable growth of performance, dual main business layout is worth looking forward to

Reproduced in the information morning post, kaineng environmental protection (300272) released its 2015 annual report on Tuesday. In the case of poor overall market environment, the company handed in a satisfactory report card for investors. In 2015, all operating indicators of the company achieved steady growth and maintained stable growth of operating performance.

During the reporting period, kaineng environmental protection achieved an operating revenue of 457 million yuan, an increase of 21.91% over the same period of last year; an operating profit of 82.1347 million yuan, an increase of 4.75% over the same period of last year; a total profit of 86.8277 million yuan, an increase of 7.44% over the same period of last year; a net profit of 76.0126 million yuan, an increase of 18.33% over the same period of last year; and a net profit of 66.487 million yuan, an increase of 11.8% over the same period of last year. The basic earnings per share was 0.231 yuan, and the return on net assets was 13.4%. In 2015, it is planned to distribute 0.7 yuan (including tax) in cash for every 10 shares.

In terms of products, kaineng's environmental protection business is divided into four parts: overall water treatment equipment, core water treatment components, fireplace, service revenue and others. In 2015, in addition to the decrease of service revenue, the other three business revenue increased to varying degrees. Among them, the whole water treatment equipment and water treatment core components are the core products, which contribute a lot to profits. The two achieved revenue of 246 million yuan and 167 million yuan respectively, with a year-on-year growth of 32% and 16.16% respectively. As a supplement to the company's human settlement water treatment products, the fireplace business contributed less than 5% to the company's operating revenue and operating profit, realizing a revenue of 18.3248 million yuan, an increase of 19.74%.

In the first quarter of this year, the company continued the trend of steady growth in performance. According to the quarterly report released by frontline, from January to March this year, the company achieved an operating revenue of 106 million yuan, an increase of 42.26% over the same period of last year, and a net profit of 9.8238 million yuan, an increase of 15.94% over the same period of last year.

However, different from previous years, the distribution plan of kaineng environmental protection is only 0.7 yuan for every 10 shares. In this regard, the company's relevant personnel told reporters that as an important stage of the company's development, this move is for the company to concentrate more funds for the development of the main business, in order to achieve greater profits, so as to bring greater returns to shareholders in the future.

It is worth noting that kaineng environmental protection, as a leading enterprise in the field of human settlement water treatment, has made remarkable achievements in new business development. Yuanneng cell technology group project is the fourth venture project of Qu Jianguo, chairman of kaineng. Kaineng environmental protection holds 50% of the equity of the company. During the reporting period, the primary cell business developed rapidly.

Founded in July 2014, protocell Technology Group is committed to the international standardization of human cells, professional storage, treatment technology, product development and transformation application and other big health industries. Since its establishment, the company has launched a series of health products such as protocell banking, health and immune assessment, whole gene sequencing, private health care and health management, middle and high-end pension, etc., which are highly sought after by people in the industry. At present, protocell has grown into a group company with nearly ten subsidiaries. It has not only established extensive scientific research and cooperation with many domestic well-known universities and hospitals, but also has a number of cell storage customers and health club members. The 10 million copies of immune cell storage base set up in Shanghai is also under construction in an orderly manner. In November 2015, Beijing yuanneng 360000 cell storage was completed and entered the trial operation stage, and the primary cell storage business and related scientific research work are also in orderly progress.

During the reporting period, yuanneng group established a GMP compliant cell preparation laboratory, and made smooth progress in the research and development of fully automated cell bank and biological evaluation, the research and development of new non-specific and specific immune cell therapy technologies, and the storage and application of various stem cell technologies. In 2015, about 8.09 million yuan was invested in the research and development of primary cells, accounting for 1.77% of the operating revenue. Seven invention patents have been applied and accepted.

In order to realize the development strategy of the company's dual main business development, kaineng environmental protection started the issue of non-public shares during the reporting period, with no more than 60 million shares to be issued and no more than 980 million yuan to be raised. The company will expand the main business production scale of water treatment equipment filter element production line project and the acquisition of Zhejiang Runxin equity as a raised investment project into the fixed increase. At the same time, in order to open up a broader development space for the big health industry related to water and cells, the company will also take the construction project of tens of millions of copies of original energy cell repository and the acquisition of Haitai pharmaceutical equity as raised investment projects The project has been included in this additional item, which provides strong financial and market resource support for the development of primary cells.

Based on the good expectation of the future prospect of the fixed value-added project, the fixed value-added project of kaineng has been sought after by institutional investors, and the issuing objects are Shanghai Jielong Group Co., Ltd., Nantong Leyuan Huida Asset Management Co., Ltd., CCB Fund Management Co., Ltd. and Sany Heavy Industry Co., Ltd. Among them, CCB fund subscribes 21 million shares, Leyuan Huida subscribes 15 million shares, Sany Heavy Industry and Jielong group subscribes 12 million shares respectively.

At present, the fixed value-added work is also progressing smoothly. In January this year, the company received the acceptance notice from the CSRC, and in April, the company replied to the review feedback of the CSRC.

In 2016, kaineng environmental protection will officially enter the fourth five years - the five years of take-off. In the face of the future, the company's management is full of confidence and proposes the goal of doubling the group's sales revenue in 2016. Qu Jianguo, chairman of kaineng group, said that driven by the four "wheels" of shareholders, customers, employees and investors, and guided by the corporate culture of "honesty, harmony, diligence and sharing", kaineng environmental protection will surely create a great achievement that will surprise customers and investors.