盈峰環境科技集團股份有限公司2021年年度報告（英文版）（270頁）.PDF

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1、2021 Annual Report of Infore Environment Technology Group Co.,Ltd.1 Infore Environment Technology Group Co.,Ltd.2021 Annual Report April 2022 Cleaner World,Better Future 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.2 Part I Important Notice,Table of Contents and Definitions The

2、Board of Directors,the Supervisory Committee as well as the directors,supervisors and senior management of Infore Environment Technology Group Co.,Ltd.(hereinafter referred to as the Company)hereby guarantee that the information presented in this report is free of any misrepresentations,misleading s

3、tatements or material omissions,and shall be jointly and severally liable for the truthfulness,accuracy and completeness of its contents.Ma Gang,the Companys legal Representative,Lu Anfeng,the Companys Chief Financial Officer,and Wu Shanshan,the Head of the Companys Accounting Department(equivalent

4、to Financial Manager)hereby guarantee that the financial statements carried in this report are truthful,accurate and complete.All directors of the Company attended the Board meeting to review this report.Any forward-looking statements such as future plans mentioned in this report shall not be consid

5、ered as promises to investors.Investors are advised to pay attention to possible investment risks.The Board has approved a final dividend plan as follows:based on the total share capital(minus shares in the Companys repurchase account)on the date of record for the 2021 final dividend plan,a cash div

6、idend of RMB 1.00(tax inclusive)per 10 shares will be distributed to the shareholders,with no bonus issue from either profit or capital reserves.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.3 Table of Contents Part I Important Notice,Table of Contents and Definitions.2 Part II C

7、ompany Profile and Principal Financial Indicators.6 Part III Management Discussion and Analysis.12 Part IV Corporate Governance.49 Part V Environmental and Social Responsibility.72 Part VI Significant Events.80 Part VII Share Changes and Shareholder Information.96 Part VIII Information on Preference

8、 Shares.106 Part IX Information on Bonds.107 Part X Financial Report.110 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.4 Documents for Reference(I)Financial statements with signatures and seals of the legal representative of the company,principal officer in charge of accounting a

9、nd principal officer of the accounting division.(II)Original audit report with seal of the accounting firm and signature(s)and seal(s)of CPA(s).(III)Originals of all company documents and announcements publicly disclosed on the website appointed by China Securities Regulatory Commission(CSRC)within

10、the reporting period.The original and notarized photocopies of the abovementioned documents are available at the company and the stock exchange for investors reference.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.5 Definitions Term means Definition Company,the Company,Infore Env

11、iro means Infore Environment Technology Group Co.,Ltd.Zoomlion Environmental means Changsha Zoomlion Environmental Industry Co.,Ltd.Infore Technology means Guangdong Infore Technology Co.,Ltd.Greenlander Environmental means Shenzhen Greenlander Environmental Protection Co.,Ltd.CSRC means China Secur

12、ities Regulatory Commission SZSE means Shenzhen Stock Exchange General Meetings means General Meetings of Infore Environment Technology Group Co.,Ltd.Board of Directors means Board of Directors of Infore Environment Technology Group Co.,Ltd.Board of Supervisors means Board of Supervisors of Infore E

13、nvironment Technology Group Co.,Ltd.Company Law means Company Law of the Peoples Republic of China Securities Law means Securities Law of the Peoples Republic of China Articles of Association means Articles of Association of Infore Environment Technology Group Co.,Ltd.PPP means Private-Public Partne

14、rship:an operational model of public infrastructural projects BOT means Build-Operate-Transfer:a way in which private businesses participate in the development of public infrastructure and provide public services to the society EPC means Engineering,procurement and construction:a form of contract fo

15、r large-scale and complex infrastructural projects in which the contractor coordinates all engineering,procurement and construction works and ensures that the entire project is completed and delivered for a guaranteed price by a fixed date and to specified standards.2021 Annual Report of Infore Envi

16、ronment Technology Group Co.,Ltd.6 Part II Company Profile and Principal Financial Indicators I.Company Profile Abbreviated stock name Infore Enviro Stock code 000967 Stocks listed on Shenzhen Stock Exchange Chinese name 盈峰環境科技集團股份有限公司 Chinese abbreviated name 盈峰環境科技集團 Foreign name(if any)Infore Env

17、ironment Technology Group Co.,Ltd.Legal Representative Ma Gang Registered address No.1818 Renmin Road West,Dongguan Street,Shangyu District,Shaoxing City,Zhejiang Province Postal code 312300 Historical updates to registered address NA Office address 23/F,Infore Center,No.7-8 Yixing Road,Xincheng Are

18、a,Beijiao Town,Shunde District,Foshan City,Guangdong Province Postal code 528300 Company website Email II.Contact Details Board Secretary Securities Representative Name Jin Taotao Wang Fei Address 23/F,Infore Center,No.7-8 Yixing Road,Xincheng Area,Beijiao Town,Shunde District,Foshan City,Guangdong

19、Province 23/F,Infore Center,No.7-8 Yixing Road,Xincheng Area,Beijiao Town,Shunde District,Foshan City,Guangdong Province Telephone 0757-26335291 0757-26335291 Fax 0757-26330783 0757-26330783 Email III.Information Disclosure and Access Stock exchange website on which the report is published online Sh

20、enzhen Stock Exchange:http:/ and websites on which the report is published China Securities Journal,Shanghai Securities Journal,Securities Times,Securities Daily and Cninfo(http:/ where the report is lodged Securities Department,23/F,Infore Center,No.7-8 Yixing Road,Xincheng Area,Beijiao Town,Shunde

21、 District,Foshan City IV.Changes to Registered Information Organization code 913300006096799222 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.7 Changes to the Companys principal activities since its listing(if any)Since its listing in 2000,the Company has changed the scope of its

22、 business five times.Scope of business as of November 18,1993:the research,development and production of ventilators,air-cooling and water-cooling equipment,air conditioners,refrigerators,quick-freezing equipment,molds and power generators.Export(refer to the documents of approval from the Ministry

23、of Foreign Trade and Economic Cooperation for details):on July 2,2002,the scope of business expanded to include metal and plastic-steel composite pipes and profiles.On November 14,2003,the scope of business expanded to include environmental engineering.On February 29,2016,a strategic transformation

24、led to an expansion of the Companys scope of business to:the R&D,maintenance and operation of environmental monitoring instruments;the development of as well as and consultancy and other services for environmental management technologies;the operation of environmental management facilities;environme

25、ntal engineering;environmental conservation engineering;municipal engineering;the design and implementation of water conservancy and other water-related projects;the development of and services for technologies for water pollution control,water treatment and ecological restoration;the R&D,sales and

26、relevant technology consultation for communication products,network products,mechatronic products,automation control products,buildings and smart community products;and the design,development,investment,operation,management and technical consultancy for the disposal and recycling of municipal and so

27、lid waste and relevant supporting facilities;the sales of ventilators,air-cooling and water-cooling equipment as well as air conditioners;the operation of import and export businesses,industrial investment,investment management,asset management and investment consultation.On May 18,2016,investment,t

28、he operation of import and export businesses,industrial investment,investment management and asset management were removed from the Companys scope of business.On June 28,2019,the Companys scope of business was updated to:the R&D,manufacturing,sales,technology consultation,maintenance and operation o

29、f sanitation equipment,specialized industrial robots,new energy vehicles,environmental monitoring equipment,special equipment for environmental protection and automobile charging equipment and parts;the leasing,design,operation,management,technological development and services for the disposal and r

30、ecycling of municipal and solid waste and relevant supporting facilities;the design,construction,operation,management,technological development and services for environmental engineering,municipal engineering,landscape engineering,electrical engineering,water conservancy and other water-related proj

31、ects,water pollution control,air pollution control and soil remediation;the commercial cleaning,collection,transportation and treatment(based on license)of urban solid waste;the development,technological consultation and services for environmental protection,IoT and Internet technologies;the R&D and

32、 sales of software;the sales of ventilators,air-cooling and water-cooling equipment as well as air conditioners;import and export businesses;and investment consultation.Changes to the Companys controlling shareholders since its incorporation(if any)1.In 2000,the Company went public.Its largest share

33、holder was Zhejiang Fan and Air-cooling Equipment Co.,Ltd.2.On February 23,2006,the former controlling shareholder of the Company,Zhejiang Shangfeng Industry Group Co.,Ltd.,and the Companys shareholder,Media Group Co.,Ltd.,transferred their respective stocks of 9,575,027 shares and 24,897,984 shares

34、 to Guangdong Infore Group Co.,Ltd.Guangdong Infore Group Co.,Ltd.became the Companys biggest shareholder.3.On August 5,2008,the Companys controlling shareholder,Guangdong Infore Group Co.,Ltd.changed its name to Guangdong Infore Holding Investment Group Co.,Ltd.4.On September 30,2010,Guangdong Info

35、re Holding Investment Group Co.,Ltd.changed its name to Infore Holding Investment Group Co.,Ltd.The latter became the Companys controlling shareholder.5.On January 4,2019,the private placement of new shares for the purchase of new assets was made and the Company issued 1,017,997,382 shares to Ningbo

36、 Infore Asset Management Co.,Ltd.to acquire its 51%share of Zoomlion Environmental.Ningbo Infore Asset Management Co.,Ltd.became the Companys largest shareholder.As of the end of the reporting period,the Companys controlling shareholder was Ningbo Infore Asset Management Co.,Ltd.2021 Annual Report o

37、f Infore Environment Technology Group Co.,Ltd.8 V.Other Relevant Information The auditor engaged by the company Auditor Pan-China Certified Public Accountants LLP(Special General Partnership)Auditors office address 28/F,Block B,China Resources Building,No.1366 Qianjiang Road,Jianggan District,Hangzh

38、ou City,Zhejiang Province Authorized signatories Bian Shanshan,Pan Jianwu The sponsor engaged by the company to exercise constant supervision over the company during the reporting period Applicable Not Applicable Sponsor Sponsors office address Representative Supervisory period China Renaissance Sec

39、urities(China)Co.,Ltd.Room 2501,No.575 Wusong Road,Hongkou District,Shanghai City Li Zeming,Zheng Zaoshun 2021 The financial advisor engaged by the company to exercise constant supervision over the company during the reporting period Applicable Not Applicable Financial advisor Financial advisors off

40、ice address Representative Supervisory period China Renaissance Securities(China)Co.,Ltd.Room 2501,No.575 Wusong Road,Hongkou District,Shanghai City Li Zeming,Zheng Zaoshun 2021 VI.Major Accounting Data and Financial Indicators Indicate whether there is any retrospectively restated datum in the tabl

41、e below Yes No 2021 2020 Boy change(%)2019 Revenue(RMB)11,813,537,444.48 14,332,025,075.40-17.57%12,695,858,666.40 Net profit attributable to the listed companys shareholders(RMB)728,467,910.42 1,386,476,099.73-47.46%1,361,453,754.17 Net profit attributable to the listed companys shareholders after

42、non-recurring gains and losses(RMB)532,726,168.36 1,432,219,046.72-62.80%1,252,134,237.70 Net cash flows from operating activities(RMB)809,218,720.13 1,688,714,091.75-52.08%1,484,750,054.02 Basic earnings per share(RMB/share)0.23 0.44-47.73%0.43 Diluted earnings per share(RMB/share)0.23 0.44-47.73%0

43、.43 Weighted average return on equity(%)4.33%8.62%-4.29%9.05%December 31,2021 December 31,2020 Boy change(%)December 31,2019 Total assets(RMB)28,332,009,628.13 30,110,536,990.88-5.91%24,854,667,694.94 Net assets attributable to the listed companys shareholders(RMB)16,903,241,702.09 16,920,214,085.42

44、-0.10%15,514,697,715.97 Indicate whether the lower of the net profit attributable to the listed companys shareholders before and after non-recurring gains and losses was negative for the last three accounting years and that there was uncertainty about the Companys ability to continue as a going conc

45、ern in the latest independent auditors report.Yes No Indicate whether the lower of the net profit attributable to the listed companys shareholders before and after non-recurring gains and losses is negative.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.9 Yes No VII.Accounting Dat

46、a Differences Arising from Domestic/Overseas Accounting Standards 1.Net Profit and Net Assets Under China Accounting Standards(CAS)and International Financial Reporting Standards(IFRS)Applicable Not Applicable No such differences for the reporting period.2.Net Profit and Net Assets under CAS and Ove

47、rseas Accounting Standards Applicable Not Applicable No such differences for the reporting period.VIII.Quarterly Key Financial Indicators Unit:RMB Q1 Q2 Q3 Q4 Revenue 2,737,466,332.64 2,710,222,451.64 2,214,117,506.71 4,151,731,153.49 Net profit attributable to the listed companys shareholders 151,7

48、75,586.90 219,603,321.44 189,304,686.57 167,784,315.51 Net profit attributable to the listed companys shareholders after non-recurring gains and losses 218,315,226.13 217,122,682.26 166,728,253.71-69,439,993.74 Net cash flows from operating activities-887,704,591.04-527,674,751.33-189,394,992.84 2,4

49、13,993,055.34 Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have been disclosed in the Companys quarterly or interim reports Yes No IX.Non-recurring Gains and Losses Items and Amounts Applicable Not Applicable Unit:RMB Item 2

50、021 2020 2019 Note Gain or loss for the disposal of non-current assets(inclusive of provisions to write off impaired assets)6,337,251.97-42,036,810.26-60,892,199.11 Gain of RMB 8,040,787.90 for the disposal of long-term equity investments;loss of RMB 2,254,626.67 for the disposal of fixed assets;gai

51、n of RMB 1,092,784.45 for the disposal of construction in progress;loss of RMB 541,693.71 for the retirement of fixed assets Tax rebates,reductions and exemptions granted ultra vires or without official documents of 3,768,945.18 621,422.30-2021 Annual Report of Infore Environment Technology Group Co

52、.,Ltd.10 approval Government subsidies recognized as gain or loss during the reporting period(exclusive of government subsidies given in the Companys ordinary course of business at fixed quotas or amounts as per the governments policies or regulations)55,341,877.03 42,047,479.15 104,385,272.35-Capit

53、al collected from non-financial enterprises that was recognized as gain or loss during the reporting period 3,173,551.55 22,117,071.89 19,799,364.06 Guangdong Liangke Environmental Protection Engineering Co.,Ltd.,RMB 1,211,591.98;Shantou Zhonglian Ruikang Environmental Health Service Co.,Ltd.,RMB 72

54、6,429.04;minority shareholders of Shangfeng Industrial Company,RMB 645,168.12;Lianjiang Greenlander New Energy Co.,Ltd.,RMB 474,994.40;Jilin Xinyu Environmental Technology Group Co.,Ltd.,RMB 92,260.00;Shantou Zhonglian Ruikang Environmental Health Service Co.,Ltd,RMB 19,599.99;Suzhou Xingzhou Enviro

55、nmental Water Treatment Technology Co.,Ltd.,RMB 3,508.02 Gain or loss on assets entrusted to other parties for investment or management 29,170,261.66 23,771,715.03 4,556,023.27 Investment income of RMB 29,170,261.66 on investments in wealth management products Gain or loss arising from changes in fa

56、ir value of financial assets and financial liabilities held for trading as well as the disposal of financial assets and financial liabilities held for trading and financial assets available for sale(exclusive of effective hedges that arise in relation to the Companys ordinary course of business)-79,

57、222,823.84-90,608,285.06 24,337,671.43 Changes in fair value of financial assets held for trading:RMB-73,146,774.32;gain/loss for disposal of financial assets held for trading:RMB-2,883,937.64;gain/loss for ineffective hedges that have been closed:RMB-3,263,048.33;changes in fair value of ineffectiv

58、e hedges that remain open:RMB 72,100.27;gain/loss arising from futures transaction fees:RMB-1,163.82 Reversal of provisions for impaired receivables which have been individually tested for impairment-140,000.00-Other non-operating income and expense 2,598,028.75-7,514,468.68-467,259.49-Other gains a

59、nd losses that fall into the definition of non-recurrent gains and losses 172,459,718.81 839,195.26 24,676,400.00 Gain/loss from the disposal of Guangdong Liangke Environmental Protection Engineering Co.,Ltd.s creditors rights:RMB 8,999,098.81;original shareholders of 2021 Annual Report of Infore En

60、vironment Technology Group Co.,Ltd.11 Greenlander Environmentals compensation for failing to meet committed business performance:RMB 163,460,620.00 Less:Income tax-8,007,245.43-8,391,224.21 6,566,767.92-Impact from minority shareholders interests(after tax)5,892,314.48 3,371,490.83 648,988.12-Total

61、195,741,742.06-45,742,946.99 109,319,516.47-Details on other gains and losses that fall into the definition of non-recurring gain/loss:Applicable Not Applicable Gain/loss from the disposal of Guangdong Liangke Environmental Protection Engineering Co.,Ltd.s creditors rights:RMB 8,999,098.81;original

62、shareholders of Greenlander Environmentals compensation for failing to meet committed business performance:RMB 163,460,620.00 The explanation for why the Company reclassified an item defined as an non-recurring gain/loss item in the Explanatory Announcement No.1 on Information Disclosure for Compani

63、es Offering Their Securities to the PublicNon-recurring Gain/Loss Items as a recurrent item Applicable Not Applicable Item Amount Involved(RMB)Reason Value-added tax rebate 22,195,312.61 Regular government subsidies given in the Companys ordinary course of business at fixed quotas or amounts as per

64、the governments policies or regulations Subsidy for sludge disposal 3,056,730.58 Regular government subsidies given in the Companys ordinary course of business at fixed quotas or amounts as per the governments policies or regulations 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.

65、12 Part III Management Discussion and Analysis I.Industry Performance During Reporting Period 1.Overview The sanitation industry in which the Company operates is classified as a public services industry.The sanitation industry is typically divided into two parts:sanitation equipment and sanitation s

66、ervices.The year 2021 is the inaugural year for the 14th Five-Year Plan.Municipal governments have been facilitating plans for development over the next five years and intensively launching various policies.Some sanitation projects were rescheduled for deferred implementation.The recurring pandemic

67、and other factors such as rising costs of raw materials have resulted in relatively significant fluctuations in the overall sanitation industry in the short term.However,as a provider of essential public services that are closely intertwined with the daily livelihood of the people,the sanitation ind

68、ustry is resilient against the short-term macroeconomic fluctuations,which pose little impact to the long-term development of the sanitation industry.The long-term development of the domestic economy,government policies,expectations of standards of sanitation and the peoples standard of living,on th

69、e other hand,will determine the growth of the industry.The intensive demand and implementation of plans for sanitation by municipal governments in 2021 will pave the way for an early resurgence of the sanitation industry.The overall industry is set for continual growth in the long run.2.Development

70、Trends(1)As separation of government and enterprise accelerates,marketization is becoming the mainstream in the industry The marketization of Chinas sanitation industry refers to municipal governments gradual withdrawal from the actual management and operation in the sanitation industry and a shift

71、towards an operational model in which governments source services and allow service providers to openly bid for such sourcing of services.Under such model,municipal governments make use of the competitive market,constant supervision and other means to effectively boost the operational efficiency and

72、 quality of sanitation services provided.The governments continual investment and implementation of policies that promote urban environmental development have maximized the domestic sanitation industrys potential for growth.The marketization of our domestic sanitation industry will further expand th

73、e industrys room for growth in the future.Players in sanitation industry with competitive advantages such as an established working relationship with the government,capital,management experience,strong brand and cost synergy are well positioned to seize the opportunities granted by the current phase

74、 of marketization and enjoy the benefits of rapid growth.The domestic sanitation industry is set for growth in the future.Increasing market concentration is also to be expected.(2)Rapid development of IoT technologies and increased adoption of smart sanitation Smart sanitation primarily relies on in

75、telligent equipment and the Smart Sanitation Cloud Platform to achieve smart operation of environmental sanitation,reduce reliance on human labor and material resources and boost operational efficiency.It continues to be the future trend of the sanitation industry.Intelligent equipment:The increased

76、 adoption of 5G sanitation robots,autonomous sanitation vehicles,and small smart sanitation robots continues to expand the frontiers of the sanitation equipment industry and offer highly promising market prospects.Thus,the future of urban/rural sanitation services is increasingly steered towards one

77、 that is smart,requires less or even no human labor.Small intelligent equipment and autonomous vehicles will present the next breakthrough and revolutionize the industry.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.13 Smart Sanitation Cloud Platform:a platform that relies on IoT

78、 and mobile Internet technologies and integrates data generated from all aspects involving sanitation equipment and services,such as R&D,manufacturing,logistics,vehicle operation,project management,after-sales services,etc.,in order to achieve a 24/7,all-round integration of four key elements-humans

79、,vehicles,objects and events-within the operating environment alongside backend and frontend platforms,delivering a precise and highly effective model of operation,maintenance and remote monitoring.Such platform will boost the overall standards of urban management and governmental services in the ci

80、ty comprehensively,from management and governance,to provision of services and operation.(3)Growing investment in the sanitation industry and continual expansion of market size As an important part of public services,the sanitation industry obtains its funds mainly from allocation of government fina

81、ncial 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.14 expenditure.The infrastructure investment in the sanitation industry typically has a longer payback period and requires a large scale of resources and capital.Nevertheless,as a necessary public expenditure,the industry is ass

82、ured with a guaranteed and relatively stable source of funds.In general,there has been an increase in the funds invested in the domestic sanitation industry from 2016 to 2020.There has been a gradual increase in the number of sanitation facilities and equipment,the area of roads and streets being cl

83、eaned as well as the volume of domestic waste being collected.These indicators point to the sustained expansion of our domestic sanitation industry,a trend that is expected to persist in the future.For a detailed analysis on the industry,please refer to Discussion and Analysis on the Future Developm

84、ent of the Company II.Principal Business During the Reporting Period 1.Principal activities Infore Enviro is a leading investor and operator in the environmental sanitation services industry.With smart sanitation at the core of its business,the Company employs a flexible business model for investmen

85、t and operation and integrates new energy equipment,autonomous vehicles and other smart sanitation equipment with a smart platform that is empowered by IoT,big data and advanced industry-specific technologies to improve segmented full cycle dynamic control.The Company provides customers with integra

86、ted IoT applications and a smart platform for operations and services across the full life cycle in areas such as cleaning and disinfection in urban and rural areas,domestic waste sorting,collection,transportation and disposal of solid waste,personnel management,collection and transportation of food

87、 waste,supervision of dirt transportation,leachate treatment and smart city development.In 2021,the Company rose swiftly to become a strong competitor in the sanitation services industry,ranking second in terms of annualized new contract value.In terms of sales of sanitation equipment,the Company wa

88、s ranked No.1 for the 21st consecutive year.2.Principal products In terms of intelligent equipment,leveraging its leading position in sanitation equipment industry,strong R&D and manufacturing capabilities and a well-established nation-wide sales network,the Company forged a comprehensive suite of s

89、anitation equipment of over 400 models,providing customers with a wide range of solutions including a variety of sanitation and cleaning equipment,waste collection and transportation equipment,new energy and clean energy sanitation equipment.The 2021 Annual Report of Infore Environment Technology Gr

90、oup Co.,Ltd.15 Companys range of products spans from 5G sanitation robots,autonomous sanitation vehicles,small smart sanitation robots,new energy sanitation equipment,waste collection and transportation equipment,separate stations to sanitation and cleaning equipment,showcasing its leading R&D capab

91、ilities in intelligent equipment.Smart Sanitation Cloud Platform is a big data smart cloud platform that the Company developed independently and a pioneering platform in the domestic sanitation industry that encompasses the full industrial chain.The platform is worth of RMB 150 million investment,su

92、pported by over 20 smart sanitation-related copyrighted software and patents and integrating 5G,AI,big data,cloud computing,edge computing and other advanced technologies to form an immersive framework and develop core technologies such as integrated IoT applications,data communication,video command

93、 and control,safe driving tests,IoT software and hardware compatible technologies and big data applications.Through the platform,the Company can monitor all humans,vehicles,objects and events related to the management of environmental sanitation on a real-time basis and design sanitation management

94、models accordingly,boosting operational quality,reducing operating costs and promoting effective management of environmental sanitation with statistical data and assessment.Currently,the platform has provided smart services to local customers for over 50,000 products.In the future,the Company will c

95、ontinue to deploy digital technologies and innovate new intelligent equipment and smart services.By synergizing with broader development of smart city,it will continue to promote the intensive application of its smart cloud platform as well as steer and drive 2021 Annual Report of Infore Environment

96、 Technology Group Co.,Ltd.16 the digital transformation of the environmental sanitation industry.In terms of smart services,the Companys Environmental Sanitation APP supports remote monitoring,data collection and procedural approval for its line-up of smart equipment and products during operations.T

97、hrough visualized data and automatic analysis,the Smart Sanitation Cloud Platform is able to facilitate the online digitalized management of equipment,sophisticated management of processes and quantified management of materials and achieving the operationalization of smart services.The entire proces

98、s is smart,informatized and integrated,and its management is digitalized.3.Performance in Key Markets(1)Ranked second for annualized new contract value of sanitation services in 2021 According to statistics from Environmental Compass,a total of 75 new contracts for sanitation services were signed du

99、ring the reporting period.The projects are located across 25 provinces with a total contract value of RMB 8.435 billion and an annualized contract value of RMB 1.228 billion,placing the Company as the first runner up in the industry.The Companys operating revenue for sanitation services in 2021 was

100、RMB 3.025 billion,a YoY increase of 53.66%.As of the end of the reporting period,Infore Enviro is operating 179 sanitation services projects with an annualized contract value of RMB 4.068 billion and a cumulative contract value of RMB 45.884 billion.The total value of the Companys executory contract

101、s reached RMB 38.273 billion.The Company ranks second place in the industry and has performed excellently in terms of the ability to continue as a going concern.According to statistics from Environmental Compass,amidst the marketization of the domestic sanitation industry,the total value of projects

102、 that were successfully bid for reached RMB 216.3 billion in 2021,with an annualized new contract value of RMB 71.6 billion.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.17 (2)Ranked first in terms of sales of sanitation equipment in 2021 According to the China Banking and Insura

103、nce Regulatory Commissions statistics on mandatory traffic accident liability insurance for motor vehicles,the Company was ranked first in terms of sales of sanitation equipment in 2021 for the 21st consecutive year.In 2021,the Company recorded sales of 16,521 units of sanitation equipment for a tot

104、al of RMB 6.212 billion.Among the products sold,744 units were electric-only vehicles,which accounted for 18.37%of the market share.According to the abovementioned statistics from the China Banking and Insurance Regulatory Commission,as of December 31,2021,a total of 104,601 sanitation vehicles were

105、 sold in China.Among these,4,050 were electric-only vehicles,amounting to a market penetration rate of 3.87%.4.Technological accumulation and innovation(1)Cumulative R&D capabilities Infore Enviros R&D team comprises of experts from national research institutes.The company has innovation written int

106、o its DNA.The Company has applied for 123 patents,including 69 utility patents.As of the end of the reporting period,it obtained 1,051 independent patents,of which 555 were utility patents,415 were utility models and 81 were design patents.The Company ranked first for the highest number of technical

107、 patents and utility patents in the industry,took the leading role in the establishment of multiple national,industrial as well as local standards and established provincial research centers.It was granted the honorary title of Top 10 Enterprises of Intellectual Property Rights in Hunan Province and

108、 awarded the China Machinery Industry Science and Technology Award,the Hunan Provincial Science and Technology Progress Award,and the China Award for Science and Technology in Construction.The Company was the first company in the environmental sanitation industry to be granted a license for autonomo

109、us driving road testing by the government.It was also included in the Ministry of Industry and Information Technologys list of key enterprises for Chinas new-generation AI industrial innovation,marking the Company as one of Chinas top AI research teams and the national team when it comes to innovati

110、on in the field of smart sanitation robots.(2)Innovation of cloud platform Smart Sanitation Cloud Platform is a big data smart cloud platform that was independently developed by the Company and supported by 14 software copyrights.By integrating advanced underlying technologies such as big data,cloud

111、 computing,IoT,mobile Internet and AI into the platform,the Company developed core technologies such as integrated IoT applications,data communication,video command and control,safe driving tests,IoT software and hardware compatible technologies and big data applications.The seamless integration of

112、sanitation equipment and operations allows the platform to achieve real-time connectivity between humans,vehicles,objects and events involved in the provision of environmental sanitation services as well as standardized,digitalized and smart operation and management.In terms of smart governance,the

113、Company established a digital operation and management system for plants,stations and equipment on the cloud platform.Through smart and safe operation that requires less labor and energy consumption,the Company strives to develop competitive advantages with smart governance.The platform is supported

114、 by over 20 smart sanitation-related software copyrights and patents and has won accolades such as the Ministry of Industry and Information Technologys 2019 Pilot Demonstration of the Integration of Key Industries and the Internet,2021 Outstanding Cases of Mobile IoT,2021 Excellent Industrial App of

115、 Hunan,2022 Changshas Key R&D Project Garbage Classification Collection and Transportation System Based on Image Recognition and CNN Deep Learning Algorithm and 2022 Changsha,Hunans Torch Plan for an Intelligent Vehicle Industry.Currently,the platform has provided smart services to local customers f

116、or over 50,000 products.(3)Leader in new energy The Company was the first to pioneer the development of new energy in the industry and offers the most comprehensive portfolio of new energy products in the industry.Infore Enviro started the research and development of new energy-powered sanitation eq

117、uipment in 2007 and successfully developed the first full-electric sweeper truck in China in July 2008.The Company was tasked with the cleaning and sanitation of the streets during the 2008 Beijing Olympics.Three decades of sustained R&D in sanitation vehicles and over a decade of hard work has led

118、Infore Enviro into developing over 40 types of new energy vehicles for 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.18 cleaning,washing,waste collection and urban sanitation.Its nearly 200 vehicle models form the most comprehensive suite of new energy-powered sanitation vehicles

119、 in China.During the reporting period,Infore Enviro launched its fifth-generation of new energy sanitation vehicles.This new series is the most comprehensive array of sanitation vehicles available in the industry.The fifth-generation products have three main features:they are safer and more reliable

120、;more efficient and environmentally friendly,and more intelligent and energy-saving.Safe and reliable:whole-vehicle competitiveness is improved and meets the strictest regulations of European ECE R45-04;the braking performance exceeds the industry standard by 20%,which leads the industry standard of

121、 alternative energy sanitation equipment;the driving assistance system is launched to allow comprehensive monitoring and ensure safety.Efficient environmental protection:light-weighted environmental protection design and upgraded operation system result in over 10%increase of the operating effect;th

122、e combination of active and passive noise reduction design successfully reduced vehicle noise by 5 decibels.Intelligent and energy-saving:the design of module-free battery pack increases the energy density by over 10%;the energy exchange system enables smart charging and discharging,which effectivel

123、y improves the battery endurance of all products,and can even be used to charge the emergency rescue equipment in emergency situations.(4)Pioneer in smart sanitation robots The Company has independently developed over 10 models of smart sanitation robots(both basic and 5G smart models are available)

124、and offers the most comprehensive suite of cutting-edge smart sanitation robots in the market.The entire series of products are integrated with core technologies such as green new energy,5G+AIOT cluster control,AI,machine vision,360-degree image recognition and are equipped with sensors such as lase

125、r radar,ultrasonic radar,high precision differential GPS,360-degree cameras,allowing for smart robotic operations and smart navigation as well as paving the way for a more diverse operational capacity in a wide range of locations and scenarios.The Companys first 5G Cloud+Sanitation Robot is a smart

126、remote cluster model of operation that redefines how sanitation is carried out.By raising the standards of digitalization and efficiency in the industry drastically and reducing safety risks to sanitation personnel as well as labor costs,the new model of operation presents clear social benefits for

127、the community and economy.The Companys 5G smart sanitation robot crew has been deployed in Shenzhen,Changsha and Suzhou.The crew has become a new benchmark for smart urban sanitation and has been repeatedly recognized by government agencies and other associations as a model for technological innovat

128、ion that breathes new life into the traditional sanitation industry with AI.The 5G smart sanitation robot crew digitalizes and informatizes urban sanitation,raises the capabilities for and standards of informatization in the sanitation industry and improves the standards of sophisticated management

129、of urban public services,creating a better living environment for the people.Other businesses of the Company primarily include environmental monitoring,solid waste treatment and the manufacturing of ventilator equipment.The Companys environmental monitoring business covers the monitoring of smoke,ai

130、r quality,haze,water quality,water conservation,soil and dust and the provision of an integrated one-stop service for environmental protection,water conservation,water supply and smart cities.The sales of products form the main part of the business and is supplemented by the provision of services fo

131、r operation and maintenance.The Companys solid waste disposal business primarily encompasses the incineration of domestic waste to generate energy,the landfilling of domestic waste,the recycling of food waste and the utilization of solid waste in industrial parks.The incineration of domestic waste f

132、or the generation of energy and the utilization of solid waste in industrial parks form the core components of the business.The industrial parks are equipped with treatment facilities for the disposal of domestic and hazardous waste,the treatment of sludge,food waste,sewage,construction waste,leacha

133、te and fly ash and the ecological restoration of landfills.By applying an integrated approach to these related services,the Company is able to provide a one-stop solution for the management of solid waste.PPP forms the primary model of operation for this business.The Companys manufacturing of ventil

134、ation equipment extends mainly to the production of ventilators,mufflers,dampers,2021 Annual Report of Infore Environment Technology Group Co.,Ltd.19 refrigerators,magnetic levitation fans,blowers and nuclear-grade dampers in the areas of nuclear power,subways,tunnels,rail transportation,industrial

135、and civil construction.Its fans are mainly sold via direct sales and retailers.III.Analysis of Core Competitiveness 1.Industry-leader of sanitation equipment As a domestic leader in environmental sanitation equipment,the Company has state-of-the-art core technologies and offers the most comprehensiv

136、e range of environmental sanitation equipment in the industry.In terms of R&D,the Company has successfully mastered the technologies for new energy sanitation equipment,smart sanitation robots,autonomous vehicles and other pioneering technologies that embody the direction in which the industry is he

137、aded.It was the first company in the environmental sanitation industry to be granted a license for autonomous driving road testing by the government.The Company developed the worlds first smart sanitation robot crew and successfully deployed the crew in Orange Isle,a 5A level national scenic spot in

138、 Changsha City,Hunan Province.The Companys 5G autonomous sanitation robot crew has also been deployed in the college town in Changsha.The Company has developed a comprehensive suite of environmental sanitation equipment that spans over 400 models and allows the Company to meet the diverse sanitation

139、 demands across the country.The Company has ranked first in terms of sales in the domestic market for 21 consecutive years.As one of the pioneers in environmental sanitation equipment,the Company developed the first wet and dry vacuum sweeper truck,the first fully hydraulic mini road sweeper,the fir

140、st tunnel road washer,the first electric-only road sweeper and the first natural gas-powered road washer in China.The Company has extensive and proven experience in the environmental sanitation industry and became the most influential brand in the industry.2.Fast growing sanitation business with sta

141、ndardized management The Company established a new sanitation ecosystem with its operational model of mechanized production+smart operation+standardized service.With its new operational model,the Company aims for the centralized management of services and planning,visual monitoring of the entire pro

142、cess of sanitation,swift response to emergencies and a closed-loop management.With smart analysis performed on all data and improvements to management and controls that are based on evidence and rigorous science,the Company strives to achieve standardized service and lead in the new era of smart san

143、itation.From 2016 to 2020,the Company recorded total contract values of RMB 1.237 billion,RMB 5.561 billion,RMB 8.711 billion,RMB 9.72 billion and RMB 12.574 billion respectively and annual service contract values of RMB 55 million,RMB 305 million,RMB 429 million,RMB 855 million and RMB 1.248 billio

144、n respectively for environmental sanitation services,representing annual growths by 454.54%,40.66%,99.3%and 45.96%respectively from 2017 to 2020.In 2021,the Company signed a total of 75 projects for sanitation services across 25 provinces,with an annual value and total value of RMB 1.228 billion and

145、 RMB 8.435 billion respectively.In 2021,The Companys operating revenue of sanitation services was RMB 3.025 billion,a YoY increase of 53.66%.3.The best-in-class and most comprehensive after-sales service network Leveraging its established sales network for sanitation equipment and rich industry expe

146、rience,the Company built a nationwide service network with 300 operational centers and nearly 1,000 environmental management and service projects in 31 provinces,cities and autonomous regions.It has nearly 500 engineers who provide after-sales services and set off within 30 minutes from receiving a

147、request for troubleshooting.Regardless of the location in the country,all general issues can be resolved within 24 hours.Environmental sanitation service projects are relatively localized and necessitate customization in order to meet regional needs.As governments at all levels pay increasing attent

148、ion to environmental sanitation,providers of sanitation services are required to possess more experience in professional operations and provide long-term monitoring services in order to keep existing projects running and continue to win new projects.A highly specialized after-sales network is needed

149、 in the industry to improve the quality of services and delivery,seize commercial opportunities in each region and win new contracts.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.20 4.Excellent corporate culture A companys corporate culture is the cornerstone of its creativity an

150、d unity as well as an important component in a companys key competitiveness.The Company has a corporate vision of Cleaner World,Better Future and a corporate philosophy of providing services that are simple,professional and speedily executed.Its core values represent its beliefs:Our clients are vita

151、l to us,Our employees are our business partners,Performance-oriented,we dont settle for mediocrity and We are built on technical innovation.Facilitated by tech and talent enablements,our strategy places order growth at its core.The Company is committed to becoming a respected and trusted leader that

152、 provides smart sanitation equipment and services with sanitation robotics at the core of its business.Throughout the years,the Companys corporate culture and spirit are closely integrated with its business objectives and daily operations,guiding the Companys various business segments and its subsid

153、iaries to fully implement benchmarking operations,continuously promote refined management and drive quality development of all businesses.The Company is helmed by a pragmatic and competent management team.The Companys management team endorses the corporate culture and shares the same management phil

154、osophy.Each member of the team complements the others strengths and has clearly defined responsibilities.As a whole,the team is united and possesses strong executive abilities.With abundant industry experience and forward-looking vision,the team identifies industry trends with precision and speed an

155、d seizes market opportunities promptly.For many years,the Company has promoted stock incentives and employee stock ownership as well as set up team management frameworks for cornerstone partnerships,senior partnerships and general partnerships,gathering a group of passionate trailblazers who share t

156、he Companys values,building a community for key employees in the Company and propelling the Company towards stable,healthy and long-term growth.IV.Analysis of Principal Business 1.Overview The year 2021 is the inaugural year for the 14th Five-Year Plan.Municipal governments have been facilitating pl

157、ans for development over the next five years and intensively launching various policies.Some sanitation projects were rescheduled for deferred implementation.The recurring pandemic and other factors such as rising costs of raw materials have resulted in relatively significant fluctuations in the ove

158、rall sanitation industry in the short term.In the face of external challenges,the Company remained steadfast to its key 5115 strategy by boosting its core workforce,investing more in technological innovation and R&D and steadily cultivating internal strength.The Company also pushed for digital trans

159、formation and smart upgrades to improve operations.By expanding online coverage,driving standardization and informatization,the Company strove to bring the standard of operational management to the next level and provide a new momentum to push the Company into its next bound.2021 Annual Report of In

160、fore Environment Technology Group Co.,Ltd.21 In 2021,the Company recorded RMB 11,813,537,400 in operating revenue,RMB 728,467,900 in net profit attributable to the listed companys shareholders and RMB 532,726,200 in net profit attributable to the listed companys shareholders after non-recurring gain

161、s and losses,a YoY decrease of 17.57%,47.46%and 62.80%respectively.As of the end of the reporting period,the Companys total assets amounted to RMB 28,332,009,600 and the net assets attributable to the listed companys shareholders amounted to RMB 16,903,241,700,a YoY decrease of 5.91%and 0.10%respect

162、ively.After the divestiture of its electromagnetic wire business,the Company recorded RMB 11,264,667,000 in operating revenue,a YoY decrease of 4.46%.The key operational milestones during the reporting period:1.Rapid development of environmental sanitation services The Companys operating revenue of

163、sanitation services in 2021 was RMB 3.025 billion,a YoY increase of 53.66%.According to statistics from Environmental Compass,a total of 75 new contracts for sanitation services were signed during the reporting period.These projects are located across 25 provinces with a total contract value of RMB

164、8.435 billion and an annual contract value of RMB 1.228 billion,placing the Company as the first runner-up in the industry.As of the end of the reporting period,Infore Enviro is running 179 projects for sanitation services.These contracts amounted to an annual value of RMB 4.068 billion and a cumula

165、tive value of RMB 45.884 billion.The total value of the Companys executory contracts reached RMB 38.273 billion.The Company ranks second place in the industry and has performed excellently in terms of sustainable operation.2.Improvement in quality and efficiency and a focus on Smart Sanitation Durin

166、g the reporting period,the Company kept its focus on its key 5115 strategy and relied on its competitive strengths in sanitation equipment to proactively drive the development of the smart sanitation business and consolidate its core businesses.Its continued focus on the leading advantage in smart s

167、anitation resulted in an increase of 78.19%in revenue generated from this main business segment.The Company made gradual adjustments to its non-core businesses through restructuring,divestiture and spinoffs,revitalizing existing resources and underperforming assets and improving asset management and

168、 operational quality to pave the way for sustained and quality growth for the Company.3.Sustained leadership in sanitation equipment According to the China Banking and Insurance Regulatory Commissions statistics on mandatory traffic accident liability insurance for motor vehicles,the Company recorde

169、d sales of 16,521 sanitation equipment in 2021.The Company ranked first in terms of sales of sanitation equipment in 2021 for the 21st consecutive year.During the reporting period,the Company continued to perfect and innovate its products,injecting RMB 290 million into R&D.The funds invested in the

170、R&D of equipment took up 3.75%of the revenue generated from smart equipment,and created cutting-edge outcomes leading the rest of the industry.During the reporting period,the Company launched the first compression semi-trailer garbage truck and dual function deep road cleaner in the domestic market,

171、developed and launched a fuel cell-powered road washer,a solar panel washer,a waste liquid spraying vehicle and high-altitude pruning vehicle,and launched the first 5G hydrogen-powered sanitation robot in the world.4.Digital transformation and the setup of a highly efficient operating system Over th

172、e years,the Company has remained committed to its digital transformation and in building a digital infrastructure for the full value chain.The entire process of digital transformation has been transparent.As at 2021,Infore Enviros digital transformation has reached a certain phase and achieved resul

173、ts.In the digital factories,the manufacturing cycles for standard and non-standard products are cut down by 22%and 28%respectively,the rate of timely deliveries by suppliers increased by 10%and blueprints transfer efficiency increased by 90%.The Company can now deliver orders for standard products w

174、ithin seven days.In after-sales service,the rate of timely responses rose to 92%and the rate of prompt delivery of components within 15 days rose to 93%.In sales,the accuracy of delivery orders improved to 85%,the rate for manufactured products-to-warehouse improved to 95%and the efficiency level of

175、 completing delivery orders was up by 30%.In R&D,the accuracy of cost estimation increased to 98%while the use of common materials increased by 25%.In the wake of its digital transformation,the Company has integrated R&D,marketing,planning,procurement,warehousing and manufacturing in an end-to-end p

176、rocess.With all decisions driven by data,the standard of management is given a boost to the next level and new momentum provided to propel the Company into its next leap.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.22 5.Active and committed agent to corporate social responsibili

177、ties In 2021,Infore Enviro continued to participate in charity and anti-pandemic activities in Shenzhen,Shijiazhuang,Xingtai,Zhuhai,Fangchenggang and Nanjing,proactively battling the pandemic and fulfilling its corporate social responsibility through the donation of cash and goods.As the prevention

178、and control of the pandemic becomes a norm,the digitalized,mechanized and sophisticated operation mode of Infore Enviro provided highly efficient aid to various regions in combatting the pandemic digitally,it has received much attention from the community as well as repeated media coverage from Shen

179、zhen City Channel,China Science and Technology Network,Shenzhen Special Zone Daily,Securities Daily and the like.During the pandemic,Infore Enviro increased the frequency of its mechanical operations and carried out washing,sweeping,spraying,dust suppression and disinfection on a 24/7 basis.The Comp

180、any capitalized on its small smart equipment and expanded the scope of its mechanical operations in CBDs,squares and parks,back alleys and urban villages to curb cross-infections.It assumed the work of daily sanitation monitoring,disinfection and waste collection in the community promptly and succes

181、sfully built a safety net with no blind spots,no hidden hazards and where all waste are cleared on the day.Infore Enviro also concurrently strived to heed the governments call and resume work and production.The Company actively coordinated its resources and kickstarted production quickly,delivering

182、a set of fog cannon,cleaning and disinfection vehicle,road washer,garbage truck and other large sanitation equipment to various regions across the country.As Infore Enviro endeavored to achieve success in its pandemic response as well as high quality growth,the Company remained committed to working

183、together with the community to overcome challenges.2.Revenue and cost(1)Breakdown of operating revenue Unit:RMB 2021 2020 YoY change(%)Amount Percentage of operating revenue Amount Percentage of operating revenue Total revenue 11,813,537,444.48 100%14,332,025,075.40 100%-17.57%Sector Smart sanitatio

184、n 9,237,262,348.48 78.19%10,323,422,172.13 72.03%-10.52%Others 2,576,275,096.00 21.81%4,008,602,903.27 27.97%-35.73%Product Intelligent equipment 6,211,980,162.80 52.58%8,354,554,126.13 58.29%-25.65%Smart service 3,025,282,185.68 25.61%1,968,868,046.00 13.74%53.66%Others 2,576,275,096.00 21.81%4,008

185、,602,903.27 27.97%-35.73%Region Domestic 11,770,703,070.74 99.64%14,276,021,772.44 99.61%-17.55%Overseas 42,834,373.74 0.36%56,003,302.96 0.39%-23.51%Wholesale Direct sales 10,431,862,062.40 88.30%12,680,076,069.55 88.47%-17.73%Retail 1,381,675,382.08 11.70%1,651,949,005.85 11.53%-16.36%(2)Sector,pr

186、oduct,region or sales model contributing to over 10%of operating revenue/profit Applicable Not Applicable Unit:RMB 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.23 Revenue Operating cost Gross profit margin YoY change in revenue YoY change in cost YoY change in gross profit margi

187、n Sector Smart sanitation 9,237,262,348.48 7,253,801,852.83 21.47%-10.52%-3.22%-5.93%Others 2,576,275,096.00 1,956,516,573.54 24.06%-35.73%-40.19%5.67%Product Intelligent equipment 6,211,980,162.80 4,737,242,308.93 23.74%-25.65%-20.73%-3.49%Smart service 3,025,282,185.68 2,516,559,543.90 16.82%53.66

188、%65.70%-6.04%Others 2,576,275,096.00 1,956,516,573.54 24.06%-35.73%-40.19%5.67%Region Domestic 11,770,703,070.74 9,174,926,853.06 22.05%-17.55%-14.37%-2.89%Overseas 42,834,373.74 35,391,573.31 17.38%-23.51%-30.86%8.78%Wholesale Direct sales 10,431,862,062.40 8,128,524,796.71 22.08%-17.73%-14.61%-2.8

189、4%Retail 1,381,675,382.08 1,081,793,629.66 21.70%-16.36%-13.22%-2.84%The Companys main business data for the year was adjusted to take into account revised statistical standards that were updated during the reporting period Applicable Not Applicable(3)Whether revenue generated from physical sales hi

190、gher than service revenue Yes No Sector Item Unit 2021 2020 YoY change(%)Smart sanitation Sales Unit 18,689 24,233-22.88%Production Unit 19,654 24,515-19.83%Inventory Unit 3,087 2,122 45.48%The explanation for data with YoY differences that exceed 30%Applicable Not Applicable The difference is prima

191、rily a result of an increased storage capacity for the inventory.(4)Fulfillment of major sales/procurement contracts signed during the reporting period Applicable Not Applicable(5)Breakdown of operating cost Sector Unit:RMB Sector Item 2021 2020 YoY change(%)Amount Percentage of operating cost Amoun

192、t Percentage of operating cost Smart sanitation Raw materials 4,554,862,117.93 62.79%6,641,092,791.72 88.77%-31.41%2021 Annual Report of Infore Environment Technology Group Co.,Ltd.24 Smart sanitation Labor expense 758,997,718.92 10.46%343,174,808.02 4.59%121.17%Smart sanitation Depreciation 340,775

193、,770.93 4.70%104,388,340.95 1.40%226.45%Smart sanitation Utilities 412,552,873.06 5.69%66,597,774.16 0.89%519.47%Smart sanitation Other manufacturing overhead 1,186,613,371.99 16.36%325,178,262.77 4.35%264.91%Others Raw materials 1,221,921,019.77 62.45%2,870,104,855.95 88.56%-57.43%Others Labor expe

194、nse 94,761,477.14 4.84%97,432,062.90 3.01%-2.74%Others Depreciation 74,879,413.01 3.83%127,190,822.18 3.93%-41.13%Others Utilities 23,045,821.82 1.18%47,866,336.76 1.48%-51.85%Others Other manufacturing overhead 541,908,841.79 27.70%97,771,335.08 3.02%454.26%Note Labor costs,depreciation,utilities a

195、nd other manufacturing overhead rose significantly on a YoY basis.This is primarily a result of increased revenue from sanitation services in the current period,leading to a corresponding increase in costs for supporting facilities,labor and outsourced labor,as well as cost of construction and servi

196、ces for PPP projects.(6)Changes in the scope of consolidated financial statements for the reporting period Yes No 1.Entities newly included in the consolidated financial statements Company Mode of acquisition Date of acquisition Capital contribution Ratio of capital contribution(%)Xiangtan Yinglian

197、Environmental Industry Co.,Ltd.Incorporation Mar.2021 24,508,110.00 66 Jinzhou Yinglian Urban Environmental Sanitation Management Co.,Ltd.Incorporation Mar.2021 12,000,000.00 100 Handan Yinglian Environmental Sanitation Management Co.,Ltd.Incorporation Apr.2021 2,000,000.00 100 Ordos Environmental S

198、anitation Management Co.,Ltd.Incorporation Jul.2021 1,020,000.00 100 Luanzhou Yinglian Environmental Service Co.,Ltd.Incorporation Aug.2021 2,000,000.00 100 Guangzhou Huadu Yinglian Environment Co.,Ltd.Incorporation Sept.2021 100,000.00 100 Fenghuang Yinglian Environmental Service Co.,Ltd.Incorporat

199、ion Sept.2021 2,000,000.00 100 Xinning Yinglian Urban Environmental Service Co.,Ltd.Incorporation Sept.2021 8,000,000.00 100 Wanning Yinglian Environmental Industry Co.,Ltd.Incorporation Oct.2021 1,000,000.00 100 Foshan Gaoming Yingde Smart City Management Co.,Ltd.Incorporation Oct.2021 5,000,000.00

200、 60 Huayuan Environmental Sanitation Management Co.,Ltd.Incorporation Nov.2021 260,000.00 100 Zhongwei Yinglian Urban Environmental Service Co.,Ltd.Incorporation Dec.2021 1,000,000.00 70 Guangzhou Yingsheng Environmental Sanitation Incorporation Jan.2021 Note 100 2021 Annual Report of Infore Environ

201、ment Technology Group Co.,Ltd.25 Service Co.,Ltd.Yiyang Yinglian Environmental Sanitation Management Co.,Ltd.Incorporation Jan.2021 Note 100 Shenzhen Infore Enviro Robot Co.,Ltd.Incorporation Feb.2021 Note 100 Sanya Yinghe Environmental Sanitation Service Co.,Ltd.Incorporation Feb.2021 Note 100 Wuha

202、n Infore Zhonghui Environmental Protection Technology Co.,Ltd.Incorporation Feb.2021 Note 100 Chongyang Yinglian Environmental Protection Co.,Ltd.Incorporation Feb.2021 Note 100 Puan Yinghe Environmental Sanitation Management Co.,Ltd.Incorporation Mar.2021 Note 100 Guangzhou Yinglian Environmental S

203、anitation Service Co.,Ltd.Incorporation Mar.2021 Note 100 Wuhu Infore Zoomlion Environmental Technology Co.,Ltd.Incorporation Mar.2021 Note 100 Suzhou Xiangcheng Yinglian Environmental Industry Co.,Ltd.Incorporation Mar.2021 Note 100 Susong Yinghe Environmental Sanitation Management Co.,Ltd.Incorpor

204、ation Apr.2021 Note 100 Foshan Shunde Yingsheng Urban Environmental Management Co.,Ltd.Incorporation Apr.2021 Note 100 Taizhou Zhongying Urban Environmental Service Co.,Ltd.Incorporation May 2021 Note 100 Liaocheng Yinghe Environmental Sanitation Service Co.,Ltd.Incorporation May 2021 Note 100 Shenz

205、hen Tongying Environmental Industry Co.,Ltd.Incorporation May 2021 Note 100 Shenzhen Zhongfu Environmental Technology Co.,Ltd.Incorporation Apr.2021 Note 100 Wuhai Yinglian Environmental Engineering Co.,Ltd.Incorporation May 2021 Note 100 Jian ou Yingsheng Environmental Sanitation Management Co.,Ltd

206、.Incorporation Jun.2021 Note 100 Heping Liansheng Environmental Development Co.,Ltd.Incorporation Jun.2021 Note 100 Zhongshan Yinglian Environmental Sanitation Management Co.,Ltd.Incorporation Jun.2021 Note 100 Ruili Yinglian Environmental Industry Co.,Ltd.Incorporation Jul.2021 Note 100 Zongyang To

207、ngying Environmental Sanitation Management Co.,Ltd.Incorporation Jul.2021 Note 100 Guangdong Infore Smart Technology Co.,Ltd.Incorporation Jul.2021 Note 100 Fengxian Zhongying Urban Environmental Sanitation Management Co.,Ltd.Incorporation Jul.2021 Note 100 Shanghai Yingwofeng Environment Technology

208、 Development Co.,Ltd.Incorporation Jul.2021 Note 100 Yichang Yinglian Urban Environmental Service Co.,Ltd.Incorporation Jul.2021 Note 100 Huai an Yinghe Environment Technology Co.,Ltd.Incorporation Jul.2021 Note 100 Zhangjiagang Zhongying Environmental Development Co.,Ltd.Incorporation Aug.2021 Note

209、 100 Guangde Yinghe Environmental Sanitation Development Co.,Ltd.Incorporation Aug.2021 Note 100 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.26 Foshan Shunde Yinghong Smart Environmental Sanitation Management Co.,Ltd.Incorporation Oct.2021 Note 100 Zhongshan Yinglian Urban Envi

210、ronmental Management Co.,Ltd.Incorporation Oct.2021 Note 100 Taizhou Zhongying Environmental Management Co.,Ltd.Incorporation Oct.2021 Note 100 Weihui Yinglian Environmental Service Co.,Ltd.Incorporation Oct.2021 Note 100 Baisha Yinghe Environmental Sanitation Service Co.,Ltd.Incorporation Nov.2021

211、Note 100 Zhoushan Yinghe Environmental Sanitation Service Co.,Ltd.Incorporation Nov.2021 Note 100 Wuhan Tongying Environmental Sanitation Management Co.,Ltd.Incorporation Nov.2021 Note 100 Nanchang Yingsheng Environmental Protection Service Co.,Ltd.Incorporation Nov.2021 Note 100 Wuhu Yinghe Environ

212、mental Sanitation Management Co.,Ltd.Incorporation Nov.2021 Note 100 Huaibei Yinghe Urban Environmental Service Co.,Ltd.Incorporation Nov.2021 Note 100 Hanshou Jinglan Environmental Protection Co.,Ltd.Incorporation Nov.2021 Note 100 Chongqing Tongliang Fenglan Environmental Protection Technology Co.

213、,Ltd.Incorporation Nov.2021 Note 100 Shenzhen Yingli Environmental Sanitation Service Co.,Ltd.Incorporation Dec.2021 Note 100 Guangrao Yinghe Urban Service Co.,Ltd.Incorporation Dec.2021 Note 100 Anning Tongying Environmental Sanitation Service Co.,Ltd.Incorporation Dec.2021 Note 100 Foshan Yinghe I

214、nvestment Co.,Ltd Incorporation Jun.2021 Note 100 Guangdong Yinglian Urban Environmental Management Co.,Ltd.Incorporation Jun.2021 Note 100 2.Disposal of subsidiaries Single disposal of investment in a subsidiary that results in loss of control.Name of subsidiary Consideration of equity disposal Pro

215、portion of equity disposal(%)Mode of equity disposal Date of loss of control Basis determining date of loss of control Difference between the consideration of disposal and the share of the subsidiarys net assets corresponding to investment disposal in consolidated financial statement Foshan Yingtong

216、 Electrical Materials Co.,Ltd.255,000,000.00 51.00 Sale Feb.2021 Substantive transfer of control 2,356,921.46 Hunan Ningxiang Renhe Garbage Comprehensive Treating Co.,Ltd.92,500,000.00 100.00 Sale Nov.2021 Substantive transfer of control 25,170,570.60 Guangdong Yingling Testing Technology Co.,1.00 5

217、1.00 Sale Aug.2021 Substantive transfer of control 4,276,507.83 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.27 Ltd.(continued)Name of subsidiary Proportion of remaining equity interests on date of loss of control(%)Carrying amounts of remaining equity interests on date of loss

218、of control Fair value of remaining equity interests on date of loss of control Gain or loss incurred from remaining equity interests re-measured according to fair value Methodology and key assumptions for determining fair value of remaining equity interest on date of loss of control Other comprehens

219、ive income related to equity investments of subsidiary,amount of transfer of changes in other owners equity to gains and losses on investment Foshan Yingtong Electrical Materials Co.,Ltd.49.00 272,872,012.67 245,000,000.00-27,872,012.67 Determined according to equity value of the portion disposed-Hu

220、nan Ningxiang Renhe Garbage Comprehensive Treating Co.,Ltd.-Guangdong Yingling Testing Technology Co.,Ltd.49.00-4,108,800.68-4,108,800.68 Determined according to equity value of the portion disposed-3.Entities excluded from the consolidation scope Company Mode of equity disposal Date of equity dispo

221、sal Net assets on disposal date Net profit from the beginning of the period to the disposal date Liling Zhongfeng Environmental Industry Co.,Ltd.De-registration June 29,2021-983.54(7)Major changes in the business,products or services in the reporting period Applicable Not Applicable(8)Major customer

222、s and suppliers Major customers of the Company Total sales to top five customers(RMB)931,507,483.46 Total sales to top five customers as percentage of total sales of the reporting period(%)7.88%Total sales to related parties among top five customers as percentage of total sales of the reporting peri

223、od(%)0.00%Top five customers No.Customer Sales revenue(RMB)As percentage of the total sales revenue of the reporting period(%)1 Customer A 431,275,241.23 3.65%2 Customer B 135,070,606.80 1.14%3 Customer C 131,464,510.32 1.11%2021 Annual Report of Infore Environment Technology Group Co.,Ltd.28 4 Cust

224、omer D 130,540,081.73 1.11%5 Customer E 103,157,043.38 0.87%Total-931,507,483.46 7.88%Other information about major customers Applicable Not Applicable Major suppliers of the Company Total purchases from top five suppliers(RMB)1,948,795,492.30 Total purchases from top five suppliers as percentage of

225、 total purchases of the reporting period(%)31.15%Total purchases from related parties among top five suppliers as percentage of total purchases of the Reporting Period(%)0.00%Top five suppliers No.Supplier Purchase in the reporting period(RMB)As percentage of the total purchases(%)1 Customer A 1,311

226、,387,884.96 20.96%2 Customer B 200,092,183.53 3.20%3 Customer C 195,481,317.70 3.12%4 Customer D 125,346,682.22 2.00%5 Customer E 116,487,423.89 1.86%Total-1,948,795,492.30 31.15%Other information about major suppliers Applicable Not Applicable 3.Expenses Unit:RMB 2021 2020 YoY change(%)Reason for m

227、aterial change Selling expenses 738,833,571.05 801,289,013.51-7.79%-Administrative expenses 585,353,407.57 536,466,686.12 9.11%-Financial Expenses 58,604,804.53 66,121,331.59-11.37%-R&D expenses 262,619,127.29 254,677,332.19 3.12%-4.R&D investments Applicable Not Applicable Name of major R&D project

228、s Objectives Progress Proposed goals Expected impact on future development of the Company Anodic Stripping Voltammetry Heavy Metal Detection Water Quality On-line Monitoring Series products To construct an Anodic Stripping Voltammetry technology CP,and to manufacture Trace Amount Heavy Metal On-line

229、 Monitoring equipment,so as to build up a technology and equipment reserve for the water quality monitoring project expansion during the R&D completed To manufacture a full-range Category I Heavy Metal Trace Amount Water Quality Monitoring products and reach a domestic leading level of technology.It

230、 is conducive to the Companys continuous advancement towards high-tech innovative enterprises and breakthroughs in technical difficulties.2021 Annual Report of Infore Environment Technology Group Co.,Ltd.29 14th Five Year Plan.On-line groundwater quality monitoring series Build an Ultra-Low Concentr

231、ation Water Sample Testing Technology CP to solve the problem of on-line monitoring of drinking water sources,groundwater,lakes,and reservoirs with good water quality and very low pollutant concentrations.R&D completed To complete the R&D and launch of Groundwater Ammonia-Nitrogen and Total Phosphor

232、us Water Quality Analyzer.It is conducive to the Companys continuous advancement towards high-tech innovative enterprises and breakthroughs in technical difficulties.On-line carbon emission monitoring series To construct a full-range carbon emission monitors and system to empower carbon neutrality a

233、nd emission reduction.R&D completed To complete the R&D and launch of Atmospheric Carbon Emission CO2,CH4 Analyzer,and Systematic,Pollution Source Carbon Emission CO2、CO、CH4 Analyzer and System.It is conducive to the Companys continuous advancement towards high-tech innovative enterprises and breakt

234、hroughs in technical difficulties.Nuclear-grade double-layered stack-up axial flow Fan To explore and expand the segment R&D completed To industrialize the result and generate market orders This helps to improve the key competitive advantages of the company Large-scale urban transportation smart pur

235、ification system To explore and expand the segment R&D in progress To industrialize the result and generate market orders This helps to improve the key competitive advantages of the company Purification fan dedicated for pastoral purposes To explore and expand the segment R&D completed To industrial

236、ize the result and generate market orders This helps to improve the key competitive advantages of the company Electric garbage truck with detachable back container To develop garbage transferring trucks used for the classified collection and transfer of domestic waste of places such as tenement resi

237、dences,towns and villages,commercial area,tourist attractions,schools,etc.,so as to fill our small sanitation garbage removal spectrum R&D completed To develop a full electrical wet garbage collection&transportation truck with airtight transportation and zero dripping It is conducive to the Companys

238、 continuous advancement towards high-tech innovative enterprises and breakthroughs in technical difficulties.Full electrical direct-drive articulated barrel road sweeper To develop a full electrical direct-drive barrel road sweeper product mainly used for the sweeping and cleaning of urban auxiliary

239、 roads,urban villages and other narrow areas,in response to the trend and demand for new energy in the industry R&D completed To develop a full electrical,direct-drive,articulated,quiet,efficient,and durable product It is conducive to the Companys continuous advancement towards high-tech innovative

240、enterprises and breakthroughs in technical difficulties.Full electrical sidewalk/auxiliary road washer To meet the market demand for mechanized,new energy washing of narrow paths such as sidewalks R&D completed To realize the advantages of light-weight,small,durable,zero-emission,and low noise witho

241、ut compromising the washing capability of the product It is conducive to the Companys continuous advancement towards high-tech innovative enterprises and breakthroughs in technical difficulties.Multi-functional sweeper/mower To stockpile mowing equipment technology and expand the field of applicatio

242、n R&D completed To complete the stockpiling of mowing equipment technology and the development of the It is conducive to the Companys continuous advancement towards high-2021 Annual Report of Infore Environment Technology Group Co.,Ltd.30 device for multi-functional sweeper prototype tech innovative

243、 enterprises and breakthroughs in technical difficulties.11T light-weight airtight leakage-free compression garbage truck To solve the airtightness challenge of leakage-free garbage trucks trash containers.R&D completed To develop an airtight leakage-free compression garbage truck It is conducive to

244、 the Companys continuous advancement towards high-tech innovative enterprises and breakthroughs in technical difficulties.18T short boom Dongfeng commercialized wall cleaning truck To solve the customers problem of occupying a smaller section of the road during vehicle operation and the complicated

245、operation of adjusting the boom R&D completed To meet the customers problem of occupying a smaller section of the road during vehicle operation and simple operation of adjusting the boom It is conducive to the Companys continuous advancement towards high-tech innovative enterprises and breakthroughs

246、 in technical difficulties.12T tall tree pruning truck To expand the array of our products and meet the demand for trimming roadside trees and the pruning and beautifying of tall branches R&D completed To develop a specialized truck for the pruning of roadside trees in the cities,highways,and touris

247、t attractions It is conducive to the Companys continuous advancement towards high-tech innovative enterprises and breakthroughs in technical difficulties.Information about R&D personnel 2021 2020 Change(%)Number of R&D personnel 1,407 1,356 3.76%R&D personnel as percentage of total employees 10.53%1

248、5.54%-5.01%Education background of R&D personnel Bachelors degree 1,064 1,082-1.66%Masters degree 303 223 35.87%Doctoral degree 6 2 200.00%College degree 34 49-30.61%Age composition of R&D personnel 40 years 114 117-2.56%Information about R&D investments 2021 2020 Change(%)R&D investments(RMB)289,92

249、0,069.26 264,110,819.71 9.77%R&D investments percentage of sales revenue 2.45%1.84%0.61%Capitalized R&D investments(RMB)27,300,941.97 9,433,487.52 189.40%Capitalized R&D investments as percentage of total R&D investments 9.42%3.57%5.85%Reasons and impacts of material change in R&D personnel composit

250、ion Applicable Not Applicable Reasons for material YoY change in the percentage of total R&D investments in operating revenue 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.31 Applicable Not Applicable Reasons and rationale for significant change in capitalization rate of R&D inve

251、stment Applicable Not Applicable 5.Cash flow Unit:RMB Item 2021 2020 YoY change(%)Subtotal of cash inflows from operating activities 14,872,489,012.69 15,584,916,372.80-4.57%Subtotal of cash outflows from operating activities 14,063,270,292.56 13,896,202,281.05 1.20%Net cash flows from operating act

252、ivities 809,218,720.13 1,688,714,091.75-52.08%Subtotal of cash inflows from investing activities 5,412,369,009.46 5,451,867,664.79-0.72%Subtotal of cash outflows from investing activities 6,534,593,586.86 6,335,579,681.05 3.14%Net cash flows from investing activities-1,122,224,577.40-883,712,016.26

253、26.99%Subtotal of cash inflows from financing activities 2,901,823,101.45 5,922,067,481.72-51.00%Subtotal of cash outflows from financing activities 3,125,894,632.23 4,680,215,496.91-33.21%Net cash flows from financing activities-224,071,530.78 1,241,851,984.81-118.04%Net increase in cash and cash e

254、quivalents-539,079,213.51 2,046,145,151.54-126.35%Explanation on main impact factor of significant change of the data YoY Applicable Not Applicable(1)Net cash generated from operating activities decreased by 52.08%YoY,mainly due to a)the expansion of business scale in 2020 led to an increase in acco

255、unts payable at the end of the reporting period,which was paid in the current period;b)increase in purchase expenses due to early stocking in the current period.(2)Cash generated from financing activities decreased by 51.00%YoY,mainly due to companys issuance of convertible corporate bonds in the pr

256、evious year.(3)Cash used in financing activities decreased by 33.21%YoY,mainly attributable to decrease in repayment of bank loans compared with the prior period.Explanation on main reasons leading to the material difference between net cash flows from operating activities during the Reporting Perio

257、d and net profit for the year Applicable Not Applicable V.Analysis of Non-Core Business Applicable Not Applicable Unit:RMB Amount Percentage of total profit Reasons for generation Recurrent or non-recurrent 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.32 Investment income 239,93

258、3,995.59 29.20%Mainly comprises performance compensation of the original shareholders of Greenlander Environmental of RMB 163,460,620.00,return on investment recognized using the equity method,and returns on wealth management product.RMB 36,885,135.08 is the returns on long-term equity investments c

259、alculated using the equity method,which is recurrent;the other portion is non-recurrent.Gain or loss on changes in fair value-73,074,674.05-8.89%-No Impairment of assets-230,940,495.92-28.10%Mainly as a result of provision of goodwill impairment loss No Non-operating income 10,028,024.42 1.22%-No No

260、n-operating expenses 11,786,454.06 1.43%-No VI.Assets and Liabilities 1.Material changes of asset items Unit:RMB December 31,2021 January 1,2021 Change in percentage(%)Reason for material change Amount As a percentage of total assets Amount As a percentage of total assets Cash and cash equivalents 4

261、,583,245,371.02 16.18%5,904,127,970.85 19.59%-3.41%-Accounts receivable 4,946,704,963.71 17.46%5,564,834,864.04 18.46%-1.00%-Contract assets 140,367,802.53 0.50%170,840,655.62 0.57%-0.07%-Inventories 1,124,149,719.01 3.97%1,305,177,407.85 4.33%-0.36%-Investment properties 1,837,703.68 0.01%2,009,006

262、.98 0.01%0.00%-Long-term equity investment 603,580,781.31 2.13%318,243,332.69 1.06%1.07%-Fixed assets 1,758,052,005.19 6.21%1,640,546,747.67 5.44%0.77%-Construction in progress 224,068,633.86 0.79%70,735,483.95 0.23%0.56%-Right-of-use assets 25,505,911.86 0.09%30,945,067.78 0.10%-0.01%-Short-term bo

263、rrowings 439,024,733.46 1.55%1,657,905,376.55 5.50%-3.95%-Contract liabilities 210,432,628.98 0.74%181,051,683.90 0.60%0.14%-Long-term borrowings 1,697,742,767.72 5.99%765,643,457.78 2.54%3.45%-Lease liabilities 18,523,740.10 0.07%23,243,848.61 0.08%-0.01%-Intangible assets 5,319,721,844.23 18.78%4,

264、875,729,418.41 16.18%2.60%-Offshore assets account for high proportion Applicable Not Applicable 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.33 2.Assets and liabilities measured at fair value Applicable Not Applicable Unit:RMB Item Opening balance Gain/loss on changes in fair v

265、alue in the current period Cumulative changes in fair value included in equity Accrual of impairment in current period Purchase amount in the current period Sales amount in the current period Other changes Closing balance Financial assets 1.Trading financial assets(exclusive of derivative financial

266、assets)127,192,985.11-76,032,983.26 5,263.80 51,165,265.65 0.00 2.Derivative financial assets 824,750.00 503,500.27 -1,328,250.27 0.00 4.Investments in other entity instrument 26,070,000.00 4,280,000.00 -6,087,028.99 15,702,971.01 Subtotal of financial assets 154,087,735.11-75,529,482.99 4,280,000.0

267、0 5,263.80 51,165,265.65-7,415,279.26 15,702,971.01 Total 154,087,735.11-75,529,482.99 0.00 4,280,000.00 5,263.80 51,165,265.65-7,415,279.26 15,702,971.01 Financial liabilities 810,300.00-431,400.00 -378,900.00 0.00 Other changes Other changes were due to the transfer of derivative financial assets

268、and financial liabilities from Foshan Yingtong Electric Material Co.,Ltd.(hereinafter referred to as Foshan Yingtong)following its disposal during the current period.Indicate whether any material changes occurred to the measurement attributes of the major assets of the Company during the reporting p

269、eriod.Yes No 3.Restricted asset rights as of end of reporting period Item Carrying amounts at the end of the period Reason for restriction Cash and cash equivalents 464,498,485.30 Deposits,certificate of deposit,frozen litigation preservation,escrow account Accounts receivable 226,481,841.35 Pledged

270、 Notes receivable-bank acceptance 5,050,609.92 Pledged Notes receivable-trade acceptance 14,668,452.95 Pledged Receivable financing 143,994,957.80 Pledged Long-term account receivable and non-current assets due within one year 49,479,996.55 Factoring financing with recourse Fixed assets 514,793,694.

271、20 Mortgaged Intangible assets 215,913,237.17 Mortgaged 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.34 100%equity interests of Funan Greenlander Environmental Protection Co.,Ltd.63,725,949.84 Mortgaged Note 100%equity interests of Shouxian Greenlander New Energy Co.,Ltd.83,655,

272、768.30 100%equity interests of Xiantao Greenlander Environmental Protection Power Co.,Ltd.218,180,606.50 100%equity interests of Poyang Greenlander Environmental Protection Power Co.,Ltd.61,177,347.25 100%equity interests of Lianjiang Greenlander New Energy Co.,Ltd.25,074,902.82 Frozen for litigatio

273、n preservation Total 2,086,695,849.95-Note The pledged amount is the net assets of the Companys share of equity.VII.Investments 1.Overview Applicable Not Applicable 2.Significant equity investments made in the reporting period Applicable Not Applicable 3.Significant non-equity investments ongoing in

274、 the reporting period Applicable Not Applicable 4.Financial investments(1)Securities investments Applicable Not Applicable Unit:RMB Securities category Stock code Security abbreviation Initial investment cost Accounting measurement model Carrying amounts at the beginning of the period Gain/loss on c

275、hanges in fair value in the current period Cumulative changes in fair value included in equity Purchase amount in the current period Sales amount in the current period Gain/loss during the reporting period Carrying amounts at the end of the period Accounting subject Source of funds Domestics/oversea

276、s-listed stock 600340 CFLD 3,019,500.00 Fair value measurement 126,067,500.00-73,125,000.00 50,095,697.15-75,971,802.85 0.00 Trading financial assets Original capital contribution Domestics/overseas-listed 002161 Invengo 1,662,299.72 Fair value measurement 1,117,293.21-25,890.93 1,052,950.04-64,343.

277、17 0.00 Trading financial assets Purchased from secondary market 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.35 stock Domestics/overseas-listed stock 605155 Xidamen 2,095.83 Fair value measurement 3,017.52-433.62 2,525.83-491.69 0.00 Trading financial assets Purchased from seco

278、ndary market Domestics/overseas-listed stock 605179 Yiming Food 2,698.53 Fair value measurement 5,174.38-383.83 7,157.40 1,983.02 0.00 Trading financial assets Purchased from secondary market Domestics/overseas-listed stock 605189 Fuchun Dye and Weave 2,992.50 Fair value measurement 1,747.50 2,992.5

279、0 4,165.25 1,172.75 0.00 Trading financial assets Purchased from secondary market Domestics/overseas-listed stock 605277 Xinya Electronic 2,271.30 Fair value measurement 2,749.68 2,271.30 2,769.98 498.68 0.00 Trading financial assets Purchased from secondary market Other securities investments held

280、at the end of the reporting period 0.00-0.00 0.00 0.00 0.00 0.00 0.00 0.00-Total 4,691,857.88-127,192,985.11-73,147,211.20 0.00 5,263.80 51,165,265.65-76,032,983.26 0.00-Disclosure date of the board meeting announcement approving the securities investments April 23,2018 Disclosure date of the genera

281、l meeting announcement approving the securities investments(if any)May 16,2018(2)Derivatives investments Applicable Not Applicable No such cases in the reporting period.5.Use of funds raised Applicable Not Applicable(1)Overall use of funds raised Applicable Not Applicable Unit:RMB 10,000 Year Fund-r

282、aising type Total amount of funds raised Total amount of raised funds used in the Accumulative amount of raised funds used Total amount of raised funds that changed purposes Accumulative amount of raised funds that Proportion of accumulative raised funds that Total amount of unused raised funds Purp

283、ose and tracking of unused raised funds Raised funds left unused for 2 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.36 current period during the reporting period changed purposes changed purposes years 2020 Public offering of convertible corporate bonds 145,733.62 10,106.41 27,5

284、69.8 0 0 0.00%118,728.9 The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and approved at the 15th Meeting of the ninth Board of Directors and the 14th Meeting of the ninth Board of Supervisors held by the Company on October,22,2021,allowing the Company

285、 to use idle raised funds of no more than RMB 1 billion for temporary replenishment of working capital,which shall be used for the production and operation related to the Companys main businesses with a tenor of no more than 12 months as of the date when the Proposal was deliberated and approved by

286、the Board of Directors.0 Total-145,733.62 10,106.41 27,569.8 0 0 0.00%118,728.9-0 Explanation of the overall use of funds raised According to the Approval of the Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co.,Ltd.(CSRC Permit 2020 No.2219)issued by the Chin

287、a Securities Regulatory Commission,the lead underwriter of the Company,China Renaissance Securities(China)Co.,Ltd.(formerly known as Huajing Securities,hereinafter referred to as Huaxing Securities)issued 14,761,896 convertible corporate bonds(hereinafter referred to as CB)to the public with the off

288、ering price of RMB 100 and a par value of RMB 100 for each CB,raising a total of RMB 1,476,189,600.00.Specifically,priority allotment of 9,405,386 CBs were issued to original shareholders of the Company,accounting for 63.71%of the total amount of this public offering;5,304,730 CBs were issued to pub

289、lic investors through online channels,accounting for 35.94%of the total amount of this public offering;51,780 CBs were to be underwritten by the lead underwriter,accounting for 0.35%of the total amount of 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.37 this public offering.Funds

290、 raised in this offering had been remitted to the Companys raised fund supervision account by the lead underwriter Huaxing Securities on November 10,2020,and the amount actually received after deducting RMB 15,238,100 of underwriting and sponsorship fees(net of tax)was RMB 1,460,951,500.After deduct

291、ing RMB 3,615,300(net of tax)of external fees that were directly related to CB such as online offering expenses,printing fee for the prospectus,fees of the reporting accountant,counsel fee,credit rating fee,information disclosure expenses,and issuance commission fee,the net amount of raised funds fr

292、om this offering was RMB 1,457,336,200.The availability of the above-mentioned raised funds has been verified by Pan-China Certified Public Accountants LLP in its Capital Verification Report(T.J.Y.2020 No.490).As of December 31,2021,the accumulated use of raised funds was RMB 275,698,000,and the tot

293、al amount of raised funds not yet used was RMB 1,187,289,000.(2)Committed projects of raised funds Applicable Not Applicable Unit:RMB 10,000 Committed investment projects and investment of excessive raised funds Whether projects have been changed(including partial change)Total amount of funds raised

294、 Adjusted total investment amount(1)The investment amount during the reporting period Accumulative investment amount as at the end of the reporting period(2)Investment progress as at the end of the reporting period(3)=(2)/(1)Date when the projects are ready for their intended use Benefits realized d

295、uring the reporting period Whether the estimated benefits are realized Whether there are material changes in the project feasibility Committed investment projects The project of the comprehensive smart sanitation allocation center No 129,638.49 129,638.49 10,106.41 11,474.67 8.85%December 31,2022 1,

296、175.26 Not applicable No Replenishment of working capital No 16,095.13 16,095.13 0 16,095.13 100.00%December 31,2020 No benefit generated separately Not applicable No Subtotal of committed investment projects-145,733.62 145,733.62 10,106.41 27,569.8-1,175.26-Investment of excessive raised funds Not

297、applicable Repayment of bank loans(if any)-0 0 0 0 0.00%-Replenishment of working capital(if any)-0 0 0 0 0.00%-Subtotal of investment of excessive raised funds-0 0 0 0-0-Total-145,733.62 145,733.62 10,106.41 27,569.8-1,175.26-Cases and reasons for failing to realize the planned progress or predicte

298、d return(by specific projects)None Explanations of the material changes in the None 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.38 project feasibility Amount,purpose,and progress of excessive raised funds Not applicable Location changes in the implementation of investment proje

299、cts of the raised funds Not applicable Adjustments to the implementation method of investment projects of the raised funds Not applicable Early investment and placement of the investment projects of the raised funds Not applicable Temporary replenishment of working capital with the idle raised funds

300、 Applicable The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and approved at the 10th Extraordinary Meeting of the ninth Board of Directors and the 9th Extraordinary Meeting of the ninth Board of Supervisors held by the Company on December 4,2020,allow

301、ing the Company to use idle raised funds of no more than RMB 1 billion for temporary replenishment of working capital,which shall be used for the production and operation related to the Companys main businesses for a period of no more than 12 months as of the date when the Proposal was deliberated a

302、nd approved by the Board of Directors.The Company issued the Announcement on the Early Return of Funds Raised for Temporary Replenishment of Working Capital on October 21,2021,in which the Company returned all the above-mentioned RMB 1 billion of funds raised for temporary replenishment of working c

303、apital to the relevant designated account for funds raised on October 20,2021 in advance for a period not exceeding 12 months.The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and approved at the 15th Meeting of the ninth Board of Directors and the 14th

304、 Meeting of the ninth Board of Supervisors held by the Company on October 22,2021,allowing the Company to use idle raised funds of no more than RMB 1 billion for temporary replenishment of working capital,which shall be used for the production and operation related to the Companys main businesses wi

305、th a tenor of no more than 12 months as of the date when the Proposal was deliberated and approved by the Board of Directors.As of December 31,2021,the balance of the idle raised funds used by the Company for temporary replenishment of working capital was RMB 1,000,000,000.The amount of and reasons

306、for the balance of the raised funds from the project implementation Not applicable Purpose and tracking of the unused raised funds The Proposal on Using Part of the Idle Raised Funds to Replenish Working Capital was deliberated and approved at the 15th Meeting of the ninth Board of Directors and the

307、 14th Meeting of the ninth Board of Supervisors held by the Company on October 22,2021,allowing the Company to use idle raised funds of no more than RMB 1 billion for temporary replenishment of working capital,which shall be used for the production and operation related to the Companys main business

308、es with a tenor of no more than 12 months as of the date when the Proposal was deliberated and approved by the Board of Directors.As of December 31,2021,the balance of the idle raised funds used by the Company for temporary replenishment of working capital was RMB 1,000,000,000.The other unused rais

309、ed fund of RMB 187,289,000 were kept in the designated account for funds raised in the form of demand deposits to be used for the construction of the corresponding investment projects.Problems in the use of raised funds None 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.39 and di

310、sclosure,or other cases(3)Changed projects of raised funds Applicable Not Applicable No such cases in the reporting period.Sale of Major Assets and Equity Investments 1.Sale of major assets Applicable Not Applicable No such cases in the reporting period.2.Sale of major equity investments Applicable

311、Not Applicable Counterparty Equity investments sold Selling date Transaction price(RMB 10,000)Net profit contributed by the equity investment to the listed company from the beginning of the reporting period to the selling date(RMB 10,000)Impact on the Company from the sale of the equity investment P

312、roportion of the net profit contributed to the listed company from the sale of equity investment to total net profit Pricing principle of sale of equity investment Whether it is a related party transaction Related party relationship with the transaction counterparty Whether the equity investments in

313、volved have all been transferred Whether the implementation is on schedule,and if not,the reasons and measures taken by the Company should be explained Disclosure date Disclosure document Guangdong Yinghe Enterprise Management Co.,Ltd.51%of equity interest in Foshan Yingtong Electrical Materials Co.

314、,Ltd.February 28,2021 25,500 735.48 The sale of the wire enamel business is based on the overall development strategy to continue to focus on the core business of smart sanitation,optimize resource allocation and asset structure,and strategicall-3.55%At fair value market price No None Yes Yes March

315、17,2021 For details,please refer to the Announcement on the Completion of the Transfer of 51%Equity Interests in Subsidiaries by Public Listing(Announcement No.2021-014)disclosed on Cninfo( Annual Report of Infore Environment Technology Group Co.,Ltd.40 y divest non-core business assets,which has a

316、positive impact on the companys operations.IX.Analysis of Major Subsidiaries and Joint Stock Companies Applicable Not Applicable Main subsidiaries and joint stock companies with an over 10%influence on the Companys net profit Unit:RMB Company Type of company Principal activities Registered capital(U

317、nit:RMB 10,000)Total assets Net assets Revenue Operating profit Net profit Changsha Zoomlion Environmental Industry Co.,Ltd.Subsidiary Smart sanitation 235152.98 13,832,759,909.86 7,211,512,816.31 8,861,710,574.04 896,221,466.35 785,151,698.46 Shenzhen Greenlander Environmental Protection Co.,Ltd.Su

318、bsidiary Others 15,000 1,888,558,410.13 50,356,767.90 352,289,730.86 10,948,736.66 10,881,641.78 Guangdong Infore Technology Co.,Ltd.Subsidiary Others 11,000 926,920,963.55 112,482,176.21 292,885,322.94 4,122,576.57 6,253,847.02 Foshan Infore Water Environment Investment Co.,Ltd.Subsidiary Others 30

319、,000 546,349,317.95 361,779,370.88 161,634,469.82 57,649,272.90 50,586,828.12 Acquisition and disposal of subsidiaries during the reporting period Applicable Not Applicable Company name Acquisition and disposal of subsidiaries during the reporting period Effects on the overall operations and perform

320、ance Xiangtan Yinglian Environmental Industry Co.,Ltd.Incorporation Positive effects on the Companys business Jinzhou Yinglian Urban Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Handan Yinglian Environmental Sanitation Management Co.,Ltd.Incorpo

321、ration Positive effects on the Companys business Ordos Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Luanzhou Yinglian Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Guangzhou Huadu Yinglian Environment Co.,

322、Ltd.Incorporation Positive effects on the Companys business 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.41 Fenghuang Yinglian Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Xinning Yinglian Urban Environmental Service Co.,Ltd.Incorporation

323、 Positive effects on the Companys business Wanning Yinglian Environmental Industry Co.,Ltd.Incorporation Positive effects on the Companys business Foshan Gaoming Yingde Smart City Management Co.,Ltd.Incorporation Positive effects on the Companys business Huayuan Environmental Sanitation Management C

324、o.,Ltd.Incorporation Positive effects on the Companys business Zhongwei Yinglian Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Guangzhou Yingsheng Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Yiyang Yin

325、glian Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Shenzhen Infore Enviro Robot Co.,Ltd.Incorporation Positive effects on the Companys business Sanya Yinghe Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys

326、business Wuhan Infore Zhonghui Environmental Protection Technology Co.,Ltd.Incorporation Positive effects on the Companys business Chongyang Yinglian Environmental Protection Co.,Ltd.Incorporation Positive effects on the Companys business Puan Yinghe Environmental Sanitation Management Co.,Ltd.Incor

327、poration Positive effects on the Companys business Guangzhou Yinglian Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Wuhu Infore Zoomlion Environmental Technology Co.,Ltd.Incorporation Positive effects on the Companys business Suzhou Xiangcheng Yingl

328、ian Environmental Industry Co.,Ltd.Incorporation Positive effects on the Companys business Susong Yinghe Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Foshan Shunde Yingsheng Urban Environmental Management Co.,Ltd.Incorporation Positive effects o

329、n the Companys business Taizhou Zhongying Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Liaocheng Yinghe Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Shenzhen Tongying Environmental Industry Co.,Ltd.Inc

330、orporation Positive effects on the Companys business Shenzhen Zhongfu Environmental Technology Co.,Ltd.Incorporation Positive effects on the Companys business Wuhai Yinglian Environmental Engineering Co.,Ltd.Incorporation Positive effects on the Companys business Jian ou Yingsheng Environmental Sani

331、tation Management Co.,Ltd.Incorporation Positive effects on the Companys business Heping Liansheng Environmental Development Co.,Ltd.Incorporation Positive effects on the Companys business Zhongshan Yinglian Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys b

332、usiness Ruili Yinglian Environmental Industry Co.,Ltd.Incorporation Positive effects on the Companys business Zongyang Tongying Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business 2021 Annual Report of Infore Environment Technology Group Co.,Ltd.42 Gua

333、ngdong Infore Smart Technology Co.,Ltd.Incorporation Positive effects on the Companys business Fengxian Zhongying Urban Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Shanghai Yingwofeng Environment Technology Development Co.,Ltd.Incorporation Positive effects on the Companys business Yichang Yinglian Urban Environmental Service Co.,Ltd.Incorpor