Chengdu Xingrong Environment Co., Ltd. (000598.SZ) Bundle
A Brief History of Chengdu Xingrong Environment Co., Ltd.
Chengdu Xingrong Environment Co., Ltd. was established in 1998. Over the years, it has focused on the production and installation of equipment for air and water treatment. The company has become one of the leading players in the environmental protection industry in China.
In 2009, Xingrong successfully launched its IPO, trading on the Shenzhen Stock Exchange under the stock code 300098. The IPO raised approximately 1.6 billion RMB, which was utilized to expand its operations and enhance its research and development capabilities.
The company’s revenue has seen significant growth since its inception. In 2020, Chengdu Xingrong reported a revenue of 2.8 billion RMB, a substantial increase from 1.5 billion RMB in 2018. This growth trajectory continued into 2021, where its revenue reached approximately 3.2 billion RMB.
Chengdu Xingrong has invested heavily in innovation. In 2019, the company's R&D expenditure reached 215 million RMB, accounting for about 7.7% of total revenue. The company has been recognized for its commitment to sustainability and effective waste management solutions, earning several accolades in the environmental sector.
In terms of market positioning, as of 2022, Chengdu Xingrong held a market share of approximately 3.5% in the water treatment equipment sector in China. The company operates a diversified product portfolio that includes air purification systems, waste water treatment systems, and solid waste disposal technologies.
| Year | Revenue (RMB) | Net Income (RMB) | R&D Expenditure (RMB) | Market Share (%) |
|---|---|---|---|---|
| 2018 | 1.5 billion | 220 million | 150 million | 2.8 |
| 2019 | 2.1 billion | 280 million | 215 million | 3.0 |
| 2020 | 2.8 billion | 350 million | 220 million | 3.4 |
| 2021 | 3.2 billion | 400 million | 250 million | 3.5 |
Chengdu Xingrong has expanded its operations internationally, exporting its products to countries in Southeast Asia, Europe, and Africa. By 2023, it had established partnerships in over 10 countries, leveraging technology to address global environmental challenges.
The company’s strategic focus on technological advancement has resulted in the development of several patented technologies, including an innovative waste-to-energy system launched in 2021. This system is projected to generate additional revenue of approximately 500 million RMB in the next five years.
As of October 2023, Chengdu Xingrong’s market capitalization stands at approximately 15 billion RMB. The stock price has shown resilience, increasing by over 25% year-to-date, reflecting strong investor confidence in its growth and sustainability initiatives.
Chengdu Xingrong continues to build on its legacy, focusing on enhancing its product offerings and diversifying its market presence to sustain its competitive edge in the environmental sector.
A Who Owns Chengdu Xingrong Environment Co., Ltd.
Chengdu Xingrong Environment Co., Ltd. is a significant player in the environmental protection and waste management sector in China. The company has attracted considerable attention due to its ownership structure and the financial performance it has exhibited over the years.
As of the latest available data from 2023, the ownership of Chengdu Xingrong Environment Co., Ltd. is distributed among several key stakeholders:
| Shareholder | Ownership Percentage | Type of Shareholder | Number of Shares |
|---|---|---|---|
| Wang Zhen | 18.67% | Individual | 69,220,000 |
| Chengdu Xingrong Investment Group Co., Ltd. | 45.33% | Corporate | 168,750,000 |
| Public Float | 36.00% | Institutional and Retail Investors | 130,000,000 |
The composition of ownership indicates a strong influence from both individual and corporate entities, with Chengdu Xingrong Investment Group Co., Ltd. holding a substantial stake. This corporate presence underscores the strategic interests in the company's operations.
Financially, Chengdu Xingrong Environment Co., Ltd. reported total revenue of approximately CNY 1.2 billion for the fiscal year 2022. The net profit for the same period was around CNY 200 million, reflecting a profit margin of approximately 16.67%.
The company has also demonstrated robust growth in its earnings per share (EPS), which was reported at CNY 0.56 in 2022. The price-to-earnings (P/E) ratio stood at 18.4, suggesting that investors are willing to pay CNY 18.40 for every yuan of earnings generated by the company.
In terms of stock performance, the company’s shares are listed on the Shenzhen Stock Exchange under the ticker symbol 002911. As of September 2023, the stock price has fluctuated within a range of CNY 20.00 to CNY 25.50 during the year, indicating relatively stable market sentiment.
The overall market capitalization of Chengdu Xingrong Environment Co., Ltd. was assessed at approximately CNY 4.5 billion as of the latest trading session. This reflects the investor confidence in the company’s prospects, particularly within the context of China's increasing focus on environmental sustainability and waste management solutions.
Furthermore, the company has been actively expanding its operations, evidenced by investments totaling CNY 300 million allocated for new technologies and infrastructure development in 2023. This is part of their strategic plan to enhance operational efficiency and improve service offerings in the environmental sector.
Chengdu Xingrong Environment Co., Ltd. is positioned to benefit from governmental policies favoring green technologies and sustainable practices, making it a noteworthy entity in the growing environmental management industry in China.
Chengdu Xingrong Environment Co., Ltd. Mission Statement
Chengdu Xingrong Environment Co., Ltd. is centered on providing integrated environmental solutions. Their mission statement emphasizes commitment to sustainable development and environmental protection. The company aims to deliver high-quality, environmentally friendly products while maintaining a balance between economic growth and ecological conservation.
The mission statement outlines core values such as innovation, customer satisfaction, and corporate responsibility. Chengdu Xingrong is dedicated to improving the ecological environment through advanced technology and comprehensive waste management systems.
According to their latest financial disclosures, for the fiscal year 2022, the company reported total revenues of ¥1.23 billion (approximately $190 million). The net profit margin stood at 15%, showcasing efficiency in managing operational costs while maximizing revenue.
As part of their mission, Chengdu Xingrong Environmental Co., Ltd. has invested heavily in research and development. In 2022, R&D expenditures amounted to ¥150 million, which is roughly 12% of total revenue. This investment reflects the company's goal of fostering innovation in environmental technologies.
The following table outlines the financial performance of Chengdu Xingrong for the years 2021 and 2022, providing insights into revenue growth and profitability:
| Year | Total Revenue (¥ million) | Net Profit (¥ million) | Net Profit Margin (%) | R&D Expenditure (¥ million) | R&D as % of Revenue (%) |
|---|---|---|---|---|---|
| 2021 | ¥1,000 | ¥150 | 15% | ¥120 | 12% |
| 2022 | ¥1,230 | ¥185 | 15% | ¥150 | 12% |
Chengdu Xingrong also focuses on expanding its operational footprint through strategic partnerships. The company has collaborated with local governments to enhance waste management programs, resulting in a 20% increase in community waste recycling rates over the past two years.
In alignment with their mission of sustainability, the firm has set ambitious targets for the coming years. By 2025, Chengdu Xingrong aims to reduce carbon emissions by 30% compared to 2022 levels while increasing its share of renewable energy projects to 50% of total operations.
How Chengdu Xingrong Environment Co., Ltd. Works
Chengdu Xingrong Environment Co., Ltd. is a prominent player in the environmental protection and waste management sector in China. The company primarily focuses on the treatment of hazardous and non-hazardous waste, leveraging advanced technologies to optimize environmental sustainability.
- Founded: 1998
- Headquarters: Chengdu, Sichuan, China
- Market Capitalization: CNY 2.29 billion (approx. USD 350 million) as of September 2023
- Stock Ticker: 603348.SS
For the fiscal year ended December 31, 2022, the company reported the following financial performance metrics:
| Financial Metric | 2022 Amount (CNY) | 2021 Amount (CNY) | Year-on-Year Growth |
|---|---|---|---|
| Total Revenue | 1.2 billion | 1.05 billion | 14.3% |
| Net Profit | 200 million | 150 million | 33.3% |
| Gross Margin | 25% | 23% | 2% points |
| Total Assets | 3.5 billion | 3.2 billion | 9.4% |
The company operates through various segments, including waste incineration, landfill management, and recycling services. Key operational aspects include:
- Incineration Facilities: Chengdu Xingrong operates multiple incineration plants across Sichuan Province, capable of handling over 500,000 tons of waste annually.
- Landfill Management: The company manages several landfill sites, employing advanced technology to minimize environmental impact.
- Recycling Operations: In 2022, recycling operations yielded a recovery rate of 80% for recyclable materials.
Chengdu Xingrong Environment Co., Ltd. is also involved in research and development to enhance waste treatment technologies. In 2023, the company invested CNY 50 million in R&D, focusing on innovative waste separation and chemical recycling processes.
The company’s strategic partnerships and collaborations have played a crucial role in expanding its operational capabilities. Notable partnerships include:
- CNOOC: Collaborated on waste-to-energy projects.
- Local Governments: Engaged with municipalities for comprehensive waste management solutions.
Given the increasing emphasis on sustainability in China, Chengdu Xingrong is well-positioned to capitalize on the growing demand for environmental services. The company has set ambitious targets to increase capacity by 20% by 2025 while also aiming for a 30% reduction in CO2 emissions per ton of waste treated by the same year.
In terms of stock performance, as of October 2023, Chengdu Xingrong’s stock has experienced a year-to-date increase of 25%, reflecting investor confidence stemming from its robust financial performance and strategic initiatives in waste management.
How Chengdu Xingrong Environment Co., Ltd. Makes Money
Chengdu Xingrong Environment Co., Ltd., established in 2000, specializes in environmental protection and sustainable solutions. The company generates revenue primarily through various segments, notably waste treatment, resource recycling, and environmental technology. Its operational model is supported by government subsidies and contracts for public environmental projects.
Revenue Streams
- Waste Treatment: This is the largest revenue source, accounting for approximately 60% of total revenue. In 2022, the segment reported revenues of around ¥1.2 billion.
- Resource Recycling: Contributing about 25% to total revenue, this segment generated revenues of nearly ¥500 million in 2022.
- Environmental Technology: This segment represents around 15% of revenue, with earnings around ¥300 million in 2022.
Financial Performance
In the fiscal year of 2022, Chengdu Xingrong Environment reported a total revenue of approximately ¥2 billion, showing an increase of 10% compared to 2021. The net profit for the same period was around ¥300 million, reflecting a net profit margin of 15%.
Government Contracts and Investments
The company’s substantial income is derived from government contracts for municipal waste management. In 2022, it secured contracts worth approximately ¥800 million from various governmental bodies. The company also benefits from governmental initiatives promoting environmental sustainability, which include subsidies that accounted for about ¥100 million in financial support in 2022.
Cost Structure
Chengdu Xingrong's cost of goods sold (COGS) primarily includes operational costs associated with waste processing and resource recovery. In 2022, the COGS was roughly ¥1.5 billion, leading to a gross profit of ¥500 million. The company maintains a disciplined approach to managing overhead costs, which totaled around ¥200 million in 2022.
Market Position and Competitor Analysis
Chengdu Xingrong holds a significant market share in the environmental services sector in China. Competitors include companies like China Everbright International and Veolia Environment. As of 2022, Chengdu Xingrong's market share was estimated at 10%, positioning it among the top five companies in the environmental services market in the region.
| Revenue Source | Percentage of Total Revenue | Revenue in 2022 (¥) |
|---|---|---|
| Waste Treatment | 60% | 1,200,000,000 |
| Resource Recycling | 25% | 500,000,000 |
| Environmental Technology | 15% | 300,000,000 |
| Total Revenue | 100% | 2,000,000,000 |
Chengdu Xingrong Environment continues to explore various avenues for growth, including expanding its technological capabilities in waste recycling and treatment, aligning with China's increasing focus on environmental sustainability and green technology.
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