1、Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.1 Infore Environment Technology Group Co.,Ltd.Annual Report 2020 April 2021 Make a Cleaner World,Build a Better Future Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.2 Part I Important Notes,Table of Contents and De

2、finitions The Board of Directors(or the“Board”),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 contents of this Report are true,accurate and complet

3、e and free of any misrepresentations,misleading statements and material omissions,and collectively and individually accept legal responsibility for such contents.Ma Gang,the Companys legal representative,Lu Anfeng,the Companys Chief Financial Officer,and Wu Shanshan,the Head of the Companys Accounti

4、ng Department(equivalent to Financial Manager)hereby guarantee that the financial statements carried in this Report are truthful,accurate and complete.All the directors of the Company attended in person the board meeting for the approval of this Report.Any forward-looking statements such as plans fo

5、r the future in this Report shall not be considered as promises to investors.And investors are reminded to exercise caution when making investment decisions.The Board has approved a final dividend plan as follows:based on the total share capital(minus the shares in the Companys repurchase account)at

6、 the date of record for the 2020 final dividend plan,a cash dividend of RMB1.2(tax inclusive)per 10 shares is planned to be distributed to the shareholders,with no bonus issue from either profit or capital reserves.This Report has been prepared in Chinese and translated into English.Should there be

7、any discrepancies or misunderstandings between the two versions,the Chinese version shall prevail.Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.3 Table of Contents Part I Important Notes,Table of Contents and Definitions.2 Part II Corporate Information and Key Financial Informati

8、on.5 Part III Business Summary.13 Part IV Management Discussion and Analysis.21 Part V Significant Events.52 Part VI Share Changes and Shareholder Information.86 Part VII Preference Shares.97 Part VIII Convertible Corporate Bonds.98 Part IX Directors,Supervisors,Senior Management and Staff.100 Part

9、X Corporate Governance.107 Part XI Corporate Bonds.114 Part XII Financial Statements.122 Part XIII Documents Available for Reference.264Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.4 Definitions Term Definition Infore Environment,or the“Company”Infore Environment Technology Grou

10、p Co.,Ltd.Zoomlion Environmental Changsha Zoomlion Environmental Industry Co.,Ltd.Greenlander Shenzhen Greenlander Environmental Protection Co.,Ltd.Infore Technology Guangdong Infore Technology Co.,Ltd.CSRC China Securities Regulatory Commission SZSE,or the“Stock Exchange”Shenzhen Stock Exchange Gen

11、eral Meeting General Meeting of Infore Environment Technology Group Co.,Ltd.Board of Directors Board of Directors of Infore Environment Technology Group Co.,Ltd.Supervisory Committee Supervisory Committee of Infore Environment Technology Group Co.,Ltd.Company Law Company Law of the Peoples Republic

12、of China Securities Law Securities Law of the Peoples Republic of China Articles of Association Articles of Association of Infore Environment Technology Group Co.,Ltd.PPP Public-private partnership,a funding model for a public infrastructure project BOT Build-operate-transfer,a form wherein a privat

13、e enterprise participates in infrastructure construction and provides public services to the society EPC Engineering procurement construction,in which the contractor is responsible for the whole procedure or several stages of a construction project such as design,procurement,construction,and trial o

14、peration based on contractual agreements.Reporting Period The period from 1 January 2020 to 31 December 2020 RMB,RMB0,000 Expressed in the Chinese currency of Renminbi,expressed in tens of thousands of Renminbi Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.5 Part II Corporate Inf

15、ormation and Key Financial Information I Corporate Information Stock name Infore Environment Stock code 000967 Stock exchange Shenzhen Stock Exchange Company name in Chinese 盈峰环境科技集团股份有限公司 Abbr.盈峰环境科技集团 Company name in English(if any)Infore Environment Technology Group Co.,Ltd.Legal representative M

16、a Gang Registered address 1818 Renmin West Road,Dongguan Street,Shangyu District,Shaoxing City,Zhejiang Province,China Zip code 312300 Office address 23/F,Infore Center,7-8 Yixin Road,Xincheng District,Beijiao Town,Shunde District,Foshan City,Guangdong Province,China Zip code 528300 Company website

17、Email address II Contact Information Board Secretary Securities Representative Name JinTaotao Wang Fei Office address 23/F,Infore Center,7-8 Yixin Road,Xincheng District,Beijiao Town,Shunde District,Foshan City,Guangdong Province,China 23/F,Infore Center,7-8 Yixin Road,Xincheng District,Beijiao Town

18、,Shunde District,Foshan City,Guangdong Province,China Tel. Fax Email address III Media for Information Disclosure and Place where this Report is Lodged Newspapers designated by the Company for information disclosure China Securities Journal,Shan

19、ghai Securities News,Securities Times,and Securities Daily Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.6 Website designated by the CSRC for publication of this Report http:/ Place where this Report is lodged The Securities Department,23/F,Infore Center,7-8 Yixin Road,Xincheng D

20、istrict,Beijiao Town,Shunde District,Foshan City,Guangdong Province,China IV Change to Company Registered Information Organization code 9799222 Change to the principal activities of the Company since its listing(if any)Since it went public in 2000,the Company has changed its business scop

21、e five times.Business scope on 18 November 1993:Research,development,and production of ventilators,and air-cooled,water-cooled,and air conditioning equipment,refrigeration and quick-freezing equipment,mold,and power-generating machines.Operation of export businesses(refer to the approval document of

22、 the Ministry of Foreign Trade and Economic Cooperation for details);on 2 July 2002,metal and plastic steel composites pipe and profile was included in the Companys business scope;on November 14,2003,undertaking environmental engineering was included in the business scope;On 29 February 2016,due to

23、the strategic transformation,the Companys business scope was changed to:R&D,maintenance,and operation services of environmental monitoring instruments,development,consulting,and services of environmental management technologies,operation services of environmental management facilities,design and con

24、struction of environmental engineering,environmental protection engineering,municipal engineering,and water conservancy and other water-related projects,development and services of technologies for water pollution control,water treatment,and ecological restoration,R&D,sales,and relevant technology c

25、onsultation services of communication products,network products,mechatronic products,automatic control products,buildings,and intelligent community products,as well as software products,design,development,investment,operation management,and technical consulting services of relevant supporting facili

26、ties for the disposal and recycle of municipal waste and solid waste,sales of ventilators and air-cooled,water-cooled,and air conditioning equipment,operation of import and export businesses,industrial investment,investment management,asset management,and investment consultation;On 18 May 2016,opera

27、tion of import and export businesses,industrial investment,investment management,and asset management were excluded from the Companys business scope;on 28 June 2019,the Companys business scope was changed to:R&D,manufacturing,sales,technology consultation,maintenance,and operation services of sanita

28、tion equipment,special type of working robots,new energy vehicles,environmental monitoring equipment,special equipment for environmental protection,and automobile charging equipment and parts,equipment leasing,design,operation management,technological development and services of relevant supporting

29、facilities for the disposal and recycle of municipal waste and solid waste,design,construction,operation management,technological development and services of environmental engineering,municipal engineering,landscape engineering,Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.7 elec

30、tric power engineering,water conservancy and other water-related projects,water pollution control projects,air pollution control projects,and soil remediation projects,commercial cleaning,collection,transportation,and treatment services(based on the license)of urban solid waste,development,consultat

31、ion,and services of environmental protection,IoT,and Internet technologies,R&D and sales of software,sales of ventilators and air-cooled,water-cooled,and air conditioning equipment,engagement in import and export businesses,and investment consultation.Every change of controlling shareholder since in

32、corporation(if any)1.In 2000,the Company went public,and its largest shareholder was Zhejiang Fan&Air-cooled Equipment Company.2.On 23 February 2006,Zhejiang Shangfeng Industry Group Co.,Ltd.,the former controlling shareholder of the Company,and Media Group Co.,Ltd.,a shareholder,transferred their s

33、tocks of 9,575,027 shares and 24,897,984 shares to Guangdong Infore Group Co.,Ltd.respectively.Therefore,Guangdong Infore Group Co.,Ltd.became the largest shareholder of the Company.3.On 5 August 2008,the Companys controlling shareholder,Guangdong Infore Group Co.,Ltd.changed its name to Guangdong I

34、nfore Holding Investment Group Co.,Ltd.4.On 30 September 2010,Guangdong Infore Holding Investment Group Co.,Ltd.changed its name to Infore Holding Investment Group Co.,Ltd.,which was the controlling shareholder of the Company.5.On 4 January 2019,based on the private placement of new shares for purch

35、asing assets,the Company issued 1,017,997,382 shares to Ningbo Infore Asset Management Co.,Ltd.to acquire the 51%equity of Zoomlion Environmental held by it.The Companys largest shareholder has been changed to Ningbo Infore Asset Management Co.,Ltd.As at the end of the Reporting Period,the Companys

36、controlling shareholder was Ningbo Infore Asset Management Co.,Ltd.V Other Information The independent auditor hired by the Company:Name of the independent auditor Pan-China Certified Public Accountants LLP Office address 28/F,Block B,China Resources Building,1366 Qianjiang Road,Jianggan District,Ha

37、ngzhou City,Zhejiang Province,China Accountants writing signatures Bian Shanshan and Cao Cuijuan The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:Applicable Not applicable Name of sponsor Office address Representative Period of su

38、pervision Huaxing Securities Co.,Ltd.Room 2501,575 Wusong Road,Hongkou District,Shanghai Li Zeming and Zheng Zaoshun 2020-2021 The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:Applicable Not applicable Annual Report 2020

39、 of Infore Environment Technology Group Co.,Ltd.8 Name of financial advisor Office address Representative Period of supervision GF Securities Co.,Ltd.GF Securities Tower,26 Machang Road,Tianhe District,Guangzhou Yuan Fengzhou and Yin Yue 2018-2020 VI Key Financial Information Indicate whether there

40、is any retrospectively restated datum in the table below.Yes No 2020 2019 2020-over-2019 change(%)2018 Operating revenue(RMB)14,332,025,075.40 12,695,858,666.40 12.89%13,044,761,115.49 Net profit attributable to the listed companys shareholders(RMB)1,386,476,099.73 1,361,453,754.17 1.84%928,577,765.

41、32 Net profit attributable to the listed companys shareholders before exceptional gains and losses(RMB)1,432,219,046.72 1,252,134,237.70 14.38%319,411,269.58 Net cash generated from/used in operating activities(RMB)1,688,714,091.75 1,484,750,054.02 13.74%-1,150,744,895.07 Basic earnings per share(RM

42、B/share)0.44 0.43 2.33%0.41 Diluted earnings per share(RMB/share)0.44 0.43 2.33%0.41 Weighted average return on equity(%)8.62%9.05%-0.43%7.62%31 December 2020 31 December 2019 Change of 31 December 2020 over 31 December 2019(%)31 December 2018 Total assets(RMB)30,110,536,990.88 24,854,667,694.94 21.

43、15%24,461,293,934.13 Equity attributable to the listed companys shareholders(RMB)16,920,214,085.42 15,514,697,715.97 9.06%14,471,811,680.32 Indicate whether the lower of the net profit attributable to the listed companys shareholders before and after exceptional gains and losses was negative for the

44、 last three accounting years,and the latest independent auditors report indicated that there was uncertainty about the Companys ability to continue as a going concern.Yes No Indicate whether the lower of the net profit attributable to the listed companys shareholders before and after exceptional gai

45、ns and losses was negative.Yes No Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.9 VII Accounting Data Differences under Chinas Accounting Standards for Business Enterprises(CAS)and International Financial Reporting Standards(IFRS)and Foreign Accounting Standards 1.Net Profit and

46、Equity under CAS and IFRS Applicable Not applicable No difference for the Reporting Period.2.Net Profit and Equity under CAS and Foreign Accounting Standards Applicable Not applicable No difference for the Reporting Period.VIII Key Financial Information by Quarter Unit:RMB Q1 Q2 Q3 Q4 Operating reve

47、nue 2,199,341,508.70 3,420,092,351.48 3,835,286,466.43 4,877,304,748.79 Net profit attributable to the listed companys shareholders 147,734,732.90 378,964,794.02 371,118,285.78 488,658,287.03 Net profit attributable to the listed companys shareholders before exceptional gains and losses 189,096,408.

48、24 358,028,986.55 363,826,725.52 521,266,926.41 Net cash generated from/used in operating activities -144,580,287.91-140,597,577.65 397,179,806.32 1,576,712,150.99 Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have been discl

49、osed in the Companys quarterly or interim reports.Yes No IX Exceptional Gains and Losses Applicable Not applicable Unit:RMB Item 2020 2019 2018 Note Gain or loss on disposal of non-current assets(inclusive of impairment allowance write-offs)-42,036,810.26-60,892,199.11 7,668,560.36 Gains of RMB488,2

50、24.46 on the disposal of long-term equity investments,gains of RMB-1,787,925.37 on the disposal of fixed Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.10 assets,gains of RMB-11,767,441.22 on the retirement of fixed assets,and gains of RMB-28,969,668.13 on the retirement of intang

51、ible assets Tax rebates,reductions and exemptions given with ultra vires approval or in lack of official approval documents 621,422.30 1,728,888.91-Government grants through profit or loss(exclusive of government grants given in the Companys ordinary course of business at fixed quotas or amounts as

52、per the governments uniform standards)42,047,479.15 104,385,272.35 20,368,085.62-Capital occupation charges on non-financial enterprises that are recognized in profit or loss 22,117,071.89 19,799,364.06 4,582,264.18 RMB4,578,541.63 of Lianjiang Greenlander New Energy Co.,Ltd.,RMB2,012,499.98 of Guan

53、gdong Liangke Environmental Protection Engineering Co.,Ltd.,RMB1,328,771.30 of Shantou ZhonglianRuikang Environmental Health Service Co.,Ltd.,RMB264,600.00 of Jilin Xinyu Environmental Protection Engineering Co.,Ltd.,RMB162,543.33 of Guangdong Tianshu New Energy Technology Co.,Ltd.,and RMB20,252.48

54、of Shantou Chaoyang ZhonglianRuikang Environmental Health Service Co.,Ltd.The Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.11 value-added tax amount excluding those incurred from the above-mentioned borrowing and lending stood at RMB178,515.17 and the amortization of installment

55、 receipt of the transfer funds of Universtar Science&Technology(Shenzhen)Co.,Lt.has generated a finance income of RMB13,928,378.34.Gain or loss on assets entrusted to other entities for investment or management 23,771,715.03 4,556,023.27 6,859,065.89 Returns of RMB23,771,715.03 on investments in wea

56、lth management products Restructuring costs in staff arrangement,integration,etc.-26,087,060.31-Current profit or loss on subsidiaries obtained in business combinations involving entities under common control from the period-beginning to combination dates,net -864,922,410.13-Gain or loss on fair-val

57、ue changes on held-for-trading and derivative financial assets and liabilities&income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments(exclusive of the effective portion of hedges that arise in the Companys ordinary course of business)-90,6

58、08,285.06 24,337,671.43 160,990,725.00 Changes of RMB-89,949,855.53 in the fair value of held-for-trading financial assets,gains of RMB5,117,398.33 on the ineffective portion of closed hedges,gains of RMB-5,769,445.94 on the fair value changes of the ineffective portion of open hedges,and futures tr

59、ansaction costs of RMB-6,381.92 Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.12 Reversed portions of impairment allowances for receivables and contract assets which are tested individually for impairment 140,000.00 390,000.00-Non-operating income and expense other than the above

60、-7,514,468.68-467,259.49 19,341,734.66-Other gains and losses that meet the definition of exceptional gain/loss 839,195.26 24,676,400.00 22,611,600.00 Performance commitment compensation from Tengine Innovation(Beijing)Instruments Inc.Less:Income tax effects -8,391,224.21 6,566,767.92 45,211,244.61-

61、Non-controlling interests effects(net of tax)3,371,490.83 648,988.12 428,998,534.09-Total-45,742,946.99 109,319,516.47 609,166,495.74-Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No.1 on Information Disclosur

62、e for Companies Offering Their Securities to the PublicExceptional Gain/Loss Items:Applicable Not applicable Item Amount involved(RMB)Reason Value-added tax rebates 28,804,978.15 Government grants continuously given in the Companys ordinary course of business at fixed quotas or amounts as per the go

63、vernments policies or regulations Subsidy for sludge disposal 2,816,166.83 Government grants continuously given in the Companys ordinary course of business at fixed quotas or amounts as per the governments policies or regulations Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.13 P

64、art III Business Summary I Principal Activities of the Company in the Reporting Period 1.Main business fields Infore Environment is a leading environmental sanitation investor and operator in China.With smart environmental sanitation as its core business strategy,the Company employs a flexible and c

65、ompetitive business model,based on its smart environmental sanitation equipment such as new energy equipment and self-driving equipment,and its proprietary cloud-based smart sanitation platform empowered by IoT,big data and other advanced technologies.The Company provides its customers with full lif

66、ecycle IoT integrated application solutions and smart platform operation services,from cleaning and disinfection in urban and rural areas,domestic waste sorting,collection,transportation and disposal of solid waste,sanitation personnel management,collection and transportation of food waste,to muck t

67、ransportation supervision,leachate treatment and smart city construction.In 2020,the Company has gained a significant momentum in the environmental sanitation service industry,moving up to No.1 by market share in terms of the five-year annualized contract value and the total new contract value.Also,

68、in 2020,it ranked first in sales of sanitation equipment for the 20th consecutive year in China.2.Main business and products In terms of intelligent equipment,by virtue of its scientific research strengths,leading capabilities of producing and manufacturing environmental equipment and a well-establi

69、shed nation-wide sales network,the Company has established a comprehensive product portfolio of environmental sanitation equipment to provide its customers with a wide range of equipment solutions including a variety of environmental sanitation and cleaning equipment,waste collection and transportat

70、ion equipment,new energy and clean energy environmental sanitation equipment with more than 400 product models.With leading capabilities of researching and developing smart equipment,the Company has a range of products covering 5G environmental sanitation robots,autonomous environmental sanitation v

71、ehicles,intelligent small environmental sanitation robots,new energy environmental sanitation equipment,waste collection and transportation equipment,separate station equipment and environmental sanitation and cleaning equipment.Smart Cloud Platform,independently developed by the Company with an inv

72、estment of more than RMB100 million,is a leading big data platform serving across the whole industrial chain in the domestic environmental sanitation industry.With advanced underlying technologies such as 5G,AI,big data,cloud computing and edge computing,and immersive thinking R&D strategy integrate

73、d into the platform,the Company has developed core technologies including IoT integrated application,data communication,video command and control,safe driving tests,IoT hardware and software compatible technology and big data application.Therefore,the Company is able to offer technological solutions

74、 such as market-oriented operation solution,industrial application solution and connected integrated solution to management of environmental sanitation service.With 14 software copyrights related to smart environmental sanitation,the platform has been included in the Top Ten Innovative Cases in Chin

75、as Smart Environmental Sanitation in 2018,Pilot and Demonstration Industrial Internet Platform of MIIT in Key Industries in 2019 and Plan for Building of Provincial Industrial Internet Platform of Hunan Province in 2020.At present,by dint of the platform,the Company has built and operated over 110 s

76、mart environmental sanitation projects in many cities and provinces in China.Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.14 With respect to smart service,through intelligent hardware and the IoT technology,the Company is able to continuously gather and analyze data generated fr

77、om all aspects such as R&D of environmental sanitation equipment,production and manufacturing,operation and management,and after-sales service,across the whole industrial chain of smart sorting,smart environmental sanitation,smart environment,new energy and autonomous driving,allowing the Company to

78、 implement a highly efficient management model for operation and maintenance service and remote monitoring,which features seamless connection between front and back offices on all fronts in terms of personnel,vehicles,items and events involved in environmental sanitation operation service.In this wa

79、y,the Company has managed to improve city management capabilities and public service capabilities of the government from management to service and from governance to operation.3.The Companys main position in the industry(1)With respect to environmental sanitation service,the Company ranked first in

80、terms of the annual contract value and the total new contract value in 2020 According to the statistics of Environmental Compass,the Company witnessed a rapid growth in its market share in the competitive landscape of the environmental sanitation service industry,ranking top 1 in 2020 in terms of th

81、e new contract value and the new annual contract value in China.In 2020,the Company recorded revenue of RMB1,969 million from environmental sanitation service,and signed a total of 59 new contracts of environmental sanitation service projects in 19 provinces in China,adding RMB1,248 million new annu

82、al contract value to the total contract value of RMB12,574 million.As at the end of the Reporting Period,Infore Environment operated 118 environmental sanitation service projects in total,with an annualized contract value of RMB2,831 million and an accumulative contract value of RMB37 billion.Its pr

83、ojects in hand were mainly PPP projects and Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.15 medium-and long-term market-oriented projects,indicating prominent capabilities of sustainable operation.During the period of 2016-2020,the Companys environmental sanitation service busin

84、ess recorded total contract value of RMB1,237 million,RMB5,561 million,RMB8,711 million,RMB9,720 million and RMB12,574 million respectively,and annual service value of RMB55 million,RMB305 million,RMB429 million,RMB855 million and RMB1,248 million respectively,representing a year-on-year growth rate

85、 of annual income from environmental sanitation service of 454.54%,40.66%,99.30%and 45.96%respectively from 2017 to 2020.With increasing competitiveness in the industry,the Company has developed a unique smart environmental sanitation system.(2)The Company ranked first in sales of environmental sani

86、tation equipment in 2020 According to the statistics of compulsory traffic accident liability insurance for motor vehicles from the China Banking and Insurance Regulatory Commission(the CBIRC),in 2020,the Company ranked first in sales of environmental sanitation equipment for the 20th consecutive ye

87、ar.In 2020,the Company recorded sales of environmental sanitation equipment of RMB8,355 million,a year-on-year increase of 18.78%,and it sold a total of 19,199 pieces of equipment,a year-on-year increase of 11.39%.Among them,it sold 10,643 pieces of medium-and high-end products,a year-on-year increa

88、se of 0.59%,representing the largest market share of 29.79%;it also sold 1,367 new energy products,a year-on-year increase of 42.69%,representing the largest market share of 27.85%.According to the statistics of compulsory traffic accident liability insurance for motor vehicles from the CBIRC,as at

89、31 December 2020,a total of 113,867 environmental sanitation vehicles were sold in China,a year-on-year increase of 4,089 or 3.72%,wherein 35,721 medium-and high-end operating vehicles were sold,a year-on-year increase of 499 or 1.42%.4.Technology accumulation and innovation(1)Accumulation of R&D st

90、rengths The Companys R&D team of environmental sanitation equipment came from a background of national scientific research institutes,and“innovation genes”have been embedded in each member of the team.The Company declared 73 patents,including 47 patents of invention.As at the end of the Reporting Pe

91、riod,it had as many as 810 independent patents,including 355 patents of Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.16 invention,390 utility models and 65 patents for design.The Company ranked first in terms of the number of technical patents and patents of invention in the ind

92、ustry,took the lead in formulating multiple national,industrial and local standards,and had established provincial research centers.It was granted the honorary title of Top Ten Enterprises of Intellectual Property Rights in Hunan Province,the China Machinery Industry Science and Technology Award,the

93、 Science and Technology Progress Award by Hunan Province and the China Award for Science and Technology in Construction.Besides,the Company was granted the first drive test license for autonomous driving in environmental sanitation by the government.It was also included on the list of the key enterp

94、rises for Chinas new-generation AI industry innovation issued by the Ministry of Industry and Information Technology(the MIIT),indicating that the Company was among top AI research teams in China and became a national team of innovation in the smart robot industry in terms of environmental sanitatio

95、n.(2)Could platform innovation Smart Cloud Platform,independently developed by the Company,is a leading big data platform serving across the whole industrial chain in the domestic environmental sanitation industry.With advanced underlying technologies such as big data,cloud computing,IoT,mobile Inte

96、rnet and AI integrated into the platform,the Company has developed core technologies including IoT integrated application,data communication,video command and control,safe driving tests,IoT hardware and software compatible technology and big data application.With the integration of environmental san

97、itation equipment and service operation,the platform is able to achieve real-time connection of personnel,vehicles,items and events involved in environmental sanitation service,as well as standardized,digitalized and intelligentized operation and management.In smart governance,the Company establishe

98、d a digital operation and management system for plants,stations and equipment based on the cloud platform,achieving intelligent and safe operation requiring less manual labor and energy consumption,and striving to develop competitive advantages in smart environmental governance.In terms of applicati

99、on of intelligent control platforms,through application integration of four systems,the Company achieved full lifecycle real-time monitoring of equipment products.Besides,based on AI,5G,edge computing and big data,it continuously boosted product innovation and industrial upgrading.In industrial Inte

100、rnet big data,the Company adopted real-time online IoT big data technology for its intelligent product application to learn about equipment status before its customers did.By doing so,it established a new model for active after-sales service,reduced the fault rate of equipment,and improved customer

101、satisfaction.At present,the platform has provided intelligent services for more than 50,000 products of customers across the country.In the future,the Company will continue to apply digital technologies and create innovative intelligent equipment and smart service.Moreover,through in-depth integrati

102、on into smart city development,it will continuously boost application of smart corporate cloud platforms to become a leader and enabler in digital transformation of the environmental sanitation industry by dint of intelligence.(3)Leader in new energy The Company began to research,develop and manufac

103、ture new energy environmental sanitation equipment in 2007,and successfully introduced the first battery-electric sweeping machine in China in July 2008,which was used for cleaning during Beijing Olympic Games in 2008.Based on the experience in professional R&D of environmental sanitation vehicles f

104、or more than three decades,and committed effort in R&D of new energy sanitation vehicles for more than ten years,Infore Environment has managed to offer the most comprehensive and diversified product portfolio in the new energy sanitation vehicles industry in China,with 144 vehicle models and more t

105、han 40 types,covering cleaning,rinsing,waste collection and transportation and municipal vehicles.Key features of the Companys new energy products include,1)Safety:its new energy products are equipped with six layers of protection to ensure safety;2)Leadership in technology:its new energy products h

106、ave six-in-one controllers and industry-leading new technologies;3)Reliability:the Company has formed an alliance with domestically renowned commercial vehicle companies to build the most reliable new energy environmental sanitation vehicles;4)Efficiency:thanks to the optimal match of high-torque pe

107、rmanent magnet synchronous motors+AMT gearboxes+universal drive axles+electric drives,energy consumption dropped by 15%year on year;5)Pertaining to high standards:the Company has strictly controlled quality of its new energy products in the whole process via Annual Report 2020 of Infore Environment

108、Technology Group Co.,Ltd.17 its quality control system including over 500 vehicle inspections and 24 road tests;6)Timely service:the Companys engineers can set out within 30 minutes once receiving customer requests and complete general fault handling within 24 hours across the country.(4)Forerunner

109、in intelligent robots By virtue of Zoomlion Environmentals industry-leading position and R&D capabilities in terms of environmental protection equipment over the years,the Company launched a product mix of intelligent small environmental sanitation robots,which have integrated advanced technologies

110、such as 5G,artificial intelligence,machine vision technology,full-scene image recognition and green new energy power.In this way,it made breakthroughs in the traditional operation model in which manual labor was the main method supported by equipment in areas such as streets and alleys.It also incre

111、ased the mechanical rate of environmental sanitation at a faster pace,and improved ecological,social and economic benefits.For each type of robots,there are two versions available,namely,the standard version and the robot version.Therefore,machines can be seamlessly switched between autonomous drivi

112、ng and manual driving,5G communication models can be installed,and the Car Caretaker-Palm Environmental Sanitation APP of Infore Zoomlion can be used to achieve remote supervision and smart operation for intelligent management of operation equipment,refined management of the operation process and qu

113、antitative management of operation materials.The Company is focused on the development of industrial robots,service robots,specialized robots,automatic systems and related industrial chains,and has got a head start and a competitive advantage in smart environmental sanitation and smart city manageme

114、nt industries.The Companys self developed smart sanitation robot crews have been successfully deployed in projects in Orange Isle Scenic Spot in Changsha City,Hunan Province and Futian District,Shenzhen City.Other businesses of the Company mainly include environmental monitoring and solid waste disp

115、osal,electric materials and ventilation machinery manufacturing.The Companys environmental monitoring business covers smoke,air quality,haze,water quality,water conservation,soil and dust,and provides one-stop comprehensive environmental services for environmental protection,water conservation and w

116、ater service and smart cities.Product sales are the main source of revenue,with operation and maintenance services contributing the rest.The Companys solid waste disposal business mainly engages in the businesses of domestic waste-to-energy,domestic waste landfilling,food waste recycling and industr

117、ial parks of solid waste recycling.With waste-to-energy projects as the core,the industrial parks of solid waste recycling are equipped with treatment facilities of domestic waste disposal,hazardous waste disposal,sludge treatment,food waste treatment,sewage treatment,construction wastewater treatme

118、nt,ecological restoration of landfills,leachate treatment and fly ash disposal.By coordinating these businesses,the Company is able to provide a one-stop solution for solid waste treatment and recycling through Build-Operate-Transfer(BOT)business model.In terms of electric materials,the Company main

119、ly engages in electromagnetic wire processing,whose products include wires at multiple temperature levels such as copper wires,aluminum wires,round wires,flat wires,enameled wires,paper-wrapped wires and silk-covered wires.These products are widely used in electric motors and appliances such as auto

120、mobile motors,refrigeration compressors,explosion-proof motors,electronic coils,electric tools,ultra-high voltage transmission and distribution equipment,rail transportation and wind power generation equipment.The Company has adopted a direct selling model by limiting its production of electromagnet

121、ic wires to its market ability.With respect to ventilation machinery manufacturing,the Companys products mainly include fans,mufflers,dampers,refrigeration equipment,magnetic levitation fans,nuclear grade valve blowers and blowers,and its business scope includes nuclear power,subways,tunnels,rail tr

122、ansportation,industrial and civil construction.It has adopted a direct selling model supported by agency sales for its fans.For further analysis on the industry,please refer to“Discussion and Analysis on the Future Development of the Company”in“Part IV Management Discussion and Analysis”.Annual Repo

123、rt 2020 of Infore Environment Technology Group Co.,Ltd.18 II Significant Changes in Major Assets 1.Significant Changes in Major Assets Major assets Main reason for significant changes Equity assets Profits or losses were recognized,using the equity method,on the equity interests held in Guangdong Sh

124、unkong Environmental Investment Co.,Ltd.(Shunkong Environmental),Tengine Innovation(Beijing)Instruments Inc.(Tengine Innovation),etc.in the current period Fixed assets Transfer of newly purchased equipment and the related construction and installation projects,as well as the completed Shunde Environ

125、mental Protection Industrial Park,into fixed assets Intangible assets Transfer to intangible assets associated with completed BOT Construction in progress Increase in the investment in the sanitation service PPP project of Zoomlion Environmental 2.Major Assets Overseas Applicable Not applicable III

126、Core Competitiveness Analysis 1.Leading advantages in environmental sanitation equipment As a leader in Chinas environmental sanitation equipment,the Company has state-of-the-art core technologies and a comprehensive product line of environmental protection equipment in the industry.In terms of R&D,

127、the Company has mastered industry-leading technologies in new energy environmental sanitation equipment,intelligent robots of environmental sanitation and autonomous environmental sanitation vehicles,and has been granted the first drive test license in environmental sanitation by the government.The

128、worlds first smart sanitation robot crew was developed by the Company and has been successfully deployed in Orange Isle Scenic Spot,a national 5A scenic area in Changsha City,Hunan Province,and the 5G autonomous robot crew for environmental sanitation has come into service in the university town in

129、the same city.In terms of products,the Company has established a comprehensive product line of environmental protection equipment including approximately 400 models,thus allowing the Company to meet various demands in main application scenarios across the country.Regarding market position,the Compan

130、y has ranked the first in sales in the domestic market for 20 consecutive years.According to the data of China Automotive Technology and Research Center,the Company had a market share of 29.79%in terms of medium-and high-end products,and a market share of 27.85%in terms of new energy products,far ah

131、ead of other market competitors.Pertaining to brand,as one of the forerunners in environmental sanitation equipment,the Company has made achievements by developing the first wet and dry vacuum sweeper truck,the first full-hydraulic mini road sweeper,the first tunnel cleaning vehicle,the first pure e

132、lectric road sweeper and the first natural gas-powered cleaning vehicle in China.Therefore,the Company has accumulated abundant experiences in the environmental sanitation industry and made a strong brand impact as the No.1 brand in the industry.2.Edges in intelligent management and rapid growth of

133、environmental sanitation service Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.19 With respect to smart service of environmental sanitation,the Company has invested in and operated flexible business models.Based on advanced underlying technologies such as 5G,IoT,AI,big data,cloud

134、 computing and edge computing,the Company has developed brand-new smart,refined,mechanized and economical environmental sanitation business models,facilitating the whole industrial chain of smart sorting,smart environmental sanitation,smart environment,new energy and autonomous driving,and providing

135、 accurate and efficient full-time operation and maintenance service and remote monitoring and management model which features seamless connection between front and back offices on all fronts in terms of personnel,vehicles,items and events involved in environmental sanitation operation service.Given

136、the above efforts and achievements,the Company has been included in the Top Ten Innovative Cases in Chinas Smart Environmental Sanitation in 2018,Pilot and Demonstration Industrial Internet Platform of MIIT in Key Industries in 2019 and Plan for Building of Provincial Industrial Internet Platform of

137、 Hunan Province in 2020.The Company is equipped with strong leading technological advantages in intelligent operation of environmental sanitation service.According to the statistics of Environmental Compass,during the period of 2016-2020,the Company has recorded a total contract value in environment

138、al sanitation service of RMB1,237 million,RMB5,561 million,RMB8,711 million,RMB9,720 million and RMB12,574 million respectively,and an annual service value of RMB55 million,RMB305 million,RMB429 million,RMB855 million and RMB1,248 million respectively,representing a growth rate of the annual income

139、from environmental sanitation service of 454.54%,40.66%,99.30%and 45.96%respectively from 2017 to 2020.In 2020,the Company ranked first in terms of new annual environmental sanitation service contracts in China,up three places year on year.In terms of environmental sanitation service,with increasing

140、 competitiveness in the industry,the Company has developed a unique smart environmental sanitation system.3.Advantages in the sound marketing network With its mature sales and service network for environmental sanitation equipment as well as excellent industry experience,the Company has established

141、a business marketing network all over the country,including 300 operation centers and nearly 1,000 environmental governance operation service projects in 31 provinces,cities and autonomous regions.Environmental sanitation service projects vary from city to city,and thus require localization and cust

142、omization.As governments at all levels have paid more attention to environmental sanitation,sanitation service providers require higher professional operation experience and long-term follow-up services in order to maintain current cooperation while obtaining new projects.Therefore,the development o

143、f a highly specialized marketing network is needed for sanitation services to explore commercial opportunities in each region,improve service and delivery quality,and eventually obtain business contracts.Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.20 4.Edges in capital and fund

144、s With a sound financial status,good reputation and abundant financing channels,the Company can provide strong funding support for its business development and improve its sustainable operation capabilities,through equity financing and debt financing such as bank loans,corporate bonds(or green bonds

145、),medium-term notes and short-term commercial papers.Meanwhile,the Company has accumulated abundant experience in industrial acquisition,integration and capital operation,as well as strong resources to support itself by multiple means.In addition,the capital strengths and good reputation of the cont

146、rolling shareholder can offer a solid support to the Companys development.Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.21 Part IV Management Discussion and Analysis I Overview In 2020,in the face of the severe external situation caused by the coronavirus pandemic,Infore Environm

147、ent stuck to its development strategies and the annual business plan,seized the industry momentum,focused on its core 5115 strategy,and proactively promoted the development of its smart environmental sanitation business relying on its competitive strengths in environmental sanitation equipment.Thus,

148、the Company has remained an industry leader,by forming its unique smart environmental sanitation system with intelligent equipment,smart service and Smart Cloud Platform as its strategic focuses.During the Reporting Period,the Company witnessed a rapid growth in environmental sanitation service and

149、continued leadership in environmental sanitation equipment.In 2020,the Board of Directors of the Company fully grasped the national economic situation and the development trend of the environmental protection industry,and implemented a business-focused strategy to focus the Companys main business on

150、 smart environmental sanitation,in which the Company has core competitive advantages,and the proportion of the Companys main business of smart environmental sanitation rose to 72.03%.The Company has gradually adjusted the non-core businesses by business structure optimization,asset divestiture and s

151、pin-off and listing,thus revitalizing the existing resources and inefficient assets,improving the asset management capacity and operational quality,and underpinning the Companys high-quality sustainable development.For 2020,the Company recorded operating revenue of RMB14,332.0251 million,up 12.89%ye

152、ar on year;and a net profit attributable to the shareholders of the Company of RMB1,386.4761 million,up 1.84%year on year.For 2020,Zoomlion Environmental recorded operating revenue of RMB10,135.6730 million,up 24.01%year on year;a net profit of RMB1,436.5164 million,up 8.71%year on year;and a net pr

153、ofit attributable to the shareholders of the Company before exceptional gains and losses of RMB1,409.4124 million.Its audited net profit attributable to the shareholders of the Company before exceptional gains and losses totaled RMB3,778 million for the period from 2018 to 2020,higher than the promi

154、sed amount by RMB56 million,which means that the interests of the Listed Company and minority investors are well protected.1.Continuously rapid growth of environmental sanitation service Since the beginning of 2020,the coronavirus pandemic has impacted the environmental sanitation service industry.F

155、rom January to March,the market stagnated.Amid the pandemic,there were both crisis and opportunities.As one of the heroes in harms way,practitioners of environmental sanitation have led the public to reflect and hold that it is imperative that we strengthen modern equipment and high-tech application

156、 to change the weak position of the traditional environmental sanitation service industry.At the early stage,Infore Environment gained presence in smart environmental sanitation in a targeted manner,and seized opportunities for intelligent equipment,smart service and Smart Cloud Platform,resulting i

157、n preliminary benefits during the Reporting Period.According to the statistics of Environmental Compass,in 2020,the Company ranked No.1in the new contract value and the new annual contract value in China.In 2020,the Company recorded operating revenue of RMB1,969 million from environmental sanitation

158、 service,and signed a total of 59 new contracts of environmental sanitation service projects in 19 provinces in China,adding RMB1,248 million new annual contract values to the total contract value of RMB12,574 million.As at the end of the Reporting Period,Infore Environment operated 118 environmenta

159、l sanitation service projects in total,and had contracts worth RMB2,831 million in hand and an accumulative contract value of RMB37 billion.Its projects in hand were mainly PPP projects and medium-and long-term market-oriented projects,indicating prominent capabilities of sustainable operation.Durin

160、g the period of 2016-2020,the Company saw an increase in the total contract value in terms of environmental sanitation service of RMB1,237 Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.22 million,RMB5,561 million,RMB8,711 million,RMB9,720 million and RMB12,574 million,and recorde

161、d annual service value of RMB55 million,RMB305 million,RMB429 million,RMB855 million and RMB1,248 million respectively.During the period of 2017-2020,the Company witnessed a growth rate of the annual income from environmental sanitation service of 454.54%,40.66%,99.30%and 45.96%respectively.With rap

162、id improvement of competitiveness in the industry,the Company has developed a unique smart environmental sanitation system.During the Reporting Period,by virtue of Baoan Project,the Company not only set a record in the industry in terms of volume,but also ranked first place in multiple achievements

163、such as application of new energy environmental sanitation equipment,application of information-based management technologies and AI.It changed city management standards,and fostered internationally-benchmarked public service capabilities of Shenzhen.2.Continuously leading environmental sanitation e

164、quipment Due to the impact of COVID-19,there was a downturn in bidding of environmental sanitation equipment.After the pandemic eased,the industry started to recover in May.Amid the pandemic,the Company strengthened Internet applications,launched cloud models including online product release,publici

165、ty and promotion,and displayed new products by visiting customers across the country.Through promotion with the cloud+offline models,it boosted growth of market demand,and brought new technologies and products to its customers so that they could learn about new products without traveling afar.Moreov

166、er,the Company injected vitality into the market,motivated enterprises,activated capacity,and thus made great achievements and earned a good recognition among customers.According to the statistics of compulsory traffic accident liability insurance for motor vehicles of the CBIRC,in 2020,the Company

167、ranked first in sales of environmental sanitation equipment for the 20th consecutive year.In 2020,the Company recorded sales of environmental sanitation equipment of RMB8,355 million,a year-on-year increase of 18.78%,and it sold a total of 19,199 pieces of equipment,a year-on-year increase of 11.39%

168、.Among them,it sold 10,643 pieces of medium-and high-end products,a year-on-year increase of 0.59%,with the largest market share of 29.79%;it also sold 1,367 new energy products,a year-on-year increase of 42.69%,with the largest market share of 27.85%.3.Continuously leading the new energy environmen

169、tal sanitation equipment In 2020,the Company sold 1,367 new energy environmental sanitation vehicles,a year-on-year increase of 42.69%,accounting for a market share of 27.85%and ranking first.It also sold 860 all-electric environmental sanitation vehicles,representing an increase of 32.10%in the sal

170、es volume,accounting for a market share of 23.06%and ranking first.During the Reporting Period,the Company developed and launched the first hydrogen fuel-powered multifunctional dust suppression vehicle.4.Improvement of quality and efficiency and continuous optimization of net cash generated from op

171、erating activities During the Reporting Period,with the key task of achieving high-quality development,centering on production and operation links,the Company explored multiple methods for improving its asset operation capabilities to reduce existing assets and control incremental assets.It conducte

172、d financing leasing,abandoned high-risk orders,strengthened the mechanism for classification,grading and responsibility regarding contract risks,enhanced reflow of corporate sales income,and accelerated operation turnover efficiency to improve net cash generated from operating activities.As at the e

173、nd of the Reporting Period in 2020,the Company recorded net cash generated from operating activities of RMB1.669 billion,representing a year-on-year increase of 13.74%from RMB1.485 billion in the previous year.Increase in net cash generated from operating activities of the Company led to improvement

174、 of operation quality ultimately.The Company improved quality and efficiency and supported its high-quality sustainable development.5.Issuance of convertible bonds and consolidation of industrial development basis During the Reporting Period,the Company issued convertible corporate bonds of RMB1,476

175、 million to raise funds for building a comprehensive allocation center for smart environmental sanitation.Upon completion,through integration of high-quality Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.23 traditional environmental sanitation equipment,new energy and new technol

176、ogy environmental sanitation equipment,Smart Cloud Platform with leading technologies and professional training for practitioners of environmental sanitation,the project will provide the Companys environmental sanitation service with more high-quality cloud platform with informatization,IoT and big

177、data as the core.It will help continuously improve the data capabilities of the Companys environmental sanitation service,optimize the management capabilities of environmental sanitation service,and establish a professional brand of operation and management of environmental sanitation service.This p

178、roject emphasizes Infore Environments resource integration capabilities in environmental sanitation to build a more professional and modern brand for environmental sanitation service.6.Positive fulfillment of the social responsibility and shouldering the corporate responsibility After the outbreak o

179、f COVID-19,Infore Environment attached great importance to it and set up an emergency working group at the first time to respond to various emergencies.On 23 January,the central government imposed a lockdown in Wuhan.On 24 January,Infore Environment launched an emergency action to support Wuhan,and

180、actively contacted with relevant departments of Wuhan.Knowing that there were many people entering and leaving hospitals in Wuhan,which hampered the disinfection and might endanger relevant staff,Infore Environment decided to donate 15 cleaning and disinfection vehicles and 15 tons of disinfectant t

181、o the Wuhan Urban Management Committee on the same day.On 25 January,Infore Environment urgently deployed equipment and materials and arranged for professional technical engineers and management personnel back to the workshop to ensure the completion of the vehicle modification.On 27 January,through

182、 the concerted efforts of all staff,all 15 cleaning and disinfection vehicles were prepared and sent to Wuhan,accompanied by 15 tons of disinfectant.During the fight against the pandemic,Infore Environment actively donated money and materials,with a total value of nearly RMB10 million.It was honored

183、 by the All-China Federation of Industry and Commerce as an“Outstanding Representative of Private Enterprises in the Fight against the COVID-19 Pandemic”.In addition to supporting Wuhan,the Company also provided emergency support to Zhengzhou Qiboshan Hospital for 2 sets of water quality monitoring

184、stations for pollution sources,and donated medical wastewater monitoring equipment to Huanggang Infectious Disease Hospital,actively undertaking corporate social responsibility.At the same time,in accordance with the governments requirements,Infore Environment made every effort to resume work and pr

185、oduction,actively coordinating all resources to organize production,and timely delivery of a number of fog cannon trucks,cleaning and disinfection vehicles,cleaning trucks,rubbish trucks and other large sanitation equipment across the country.While the society had reached a crucial juncture between

186、fighting against the pandemic in prevention and control,and achieving high-quality development,Infore Environment has always been working with all sectors of the society to overcome difficulties.II Core Business Analysis 1.Overview See“I Overview”above.2.Revenue and Cost Analysis (1)Breakdown of Ope

187、rating Revenue Unit:RMB 2020 2019 Change(%)Operating revenue As a%of total Operating revenue As a%of total Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.24 operating revenue(%)operating revenue(%)Total 14,332,025,075.40 100%12,695,858,666.40 100%12.89%By operating division Smart

188、environmental sanitation 10,323,422,172.13 72.03%8,034,877,719.43 63.29%28.48%Others 4,008,602,903.27 27.97%4,660,980,946.97 36.71%-14.00%By product category Traditional environmental sanitation equipment 7,452,381,951.97 52.00%6,146,996,844.09 48.42%21.24%New-energy environmental sanitation equipme

189、nt 902,172,174.16 6.29%886,400,216.94 6.98%1.78%Environmental sanitation services 1,968,868,046.00 13.74%1,001,480,658.40 7.89%96.60%Others 4,008,602,903.27 27.97%4,660,980,946.97 36.71%-14.00%By operating segment Domestic 14,276,021,772.44 99.61%12,640,299,972.80 99.56%12.94%Overseas 56,003,302.96

190、0.39%55,558,693.60 0.44%0.80%(2)Operating Division,Product Category or Operating Segment Contributing over 10%of Operating Revenue or Operating Profit Applicable Not applicable Unit:RMB Operating revenue Cost of sales Gross profit margin YoY change in operating revenue(%)YoY change in cost of sales(

191、%)YoY change in gross profit margin(%)By operating division Smart environmental sanitation 10,323,422,172.13 7,494,987,200.17 27.40%28.48%35.97%-4.00%Others 4,008,602,903.27 3,271,301,758.83 18.39%-14.00%-15.63%1.58%By product category Traditional environmental sanitation 7,452,381,951.97 5,422,933,

192、163.68 27.23%21.24%27.98%-3.84%Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.25 equipment New-energy environmental sanitation equipment 902,172,174.16 553,314,420.62 38.67%1.78%3.92%-1.26%Environmental sanitation services 1,968,868,046.00 1,518,739,615.87 22.86%96.60%104.59%-3.02

193、%Others 4,008,602,903.27 3,271,301,758.83 18.39%-14.00%-15.63%1.58%By operating segment Domestic 14,276,021,772.44 10,715,099,244.25 24.94%12.94%14.73%-1.17%Overseas 56,003,302.96 51,189,714.75 8.60%0.80%2.84%-1.81%Core business data restated according to the changed methods of measurement that occu

194、rred in the Reporting Period:Applicable Not applicable(3)Whether Revenue from Physical Sales Is Higher than Service Revenue Yes No Operating division Item Unit 2020 2019 Change(%)Environmental sanitation equipment Sales volume Unit 24,233 20,217 19.86%Output Unit 24,515 20,015 22.48%Inventory Unit 2

195、,122 1,840 15.33%Electric materials Sales volume Ton 54,767 60,932-10.12%Output Ton 54,602 60,774-10.16%Inventory Ton 1,870 2,035-8.11%Ventilation machinery Sales volume Unit 150,694 123,694 21.83%Output Unit 149,019 125,068 19.15%Inventory Unit 3,417 5,092-32.89%Any over 30%YoY movements in the dat

196、a above and why:Applicable Not applicable The inventory of ventilation machinery as at the end of the current year decreased 32.89%compared to the end of last year,primarily driven by a decrease in the number of products with a low unit value.(4)Execution Progress of Major Signed Sales Contracts in

197、the Reporting Period Applicable Not applicable Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.26(5)Breakdown of Cost of Sales By operating division Unit:RMB Operating division Item 2020 2019 Change(%)Cost of sales As a%of total cost of sales(%)Cost of sales As a%of total cost of s

198、ales(%)Smart environmental sanitation Raw materials 6,641,092,791.72 88.77%5,307,778,765.76 96.28%25.12%Smart environmental sanitation Labor costs 343,174,808.02 4.59%79,211,526.55 1.44%333.24%Smart environmental sanitation Depreciation 104,388,340.95 1.40%20,132,469.93 0.37%418.51%Smart environment

199、al sanitation Energy resources including water,electricity,and steam 66,597,774.16 0.89%9,119,691.94 0.17%630.26%Smart environmental sanitation Other manufacturing costs 325,178,262.77 4.35%95,795,127.03 1.74%239.45%Others Raw materials 2,870,104,855.95 88.56%3,549,155,655.58 92.03%-19.13%Others Lab

200、or costs 97,432,062.90 3.01%94,467,394.48 2.45%3.14%Others Depreciation 127,190,822.18 3.93%57,679,325.43 1.50%120.51%Others Energy resources including water,electricity,and steam 47,866,336.76 1.48%79,859,131.84 2.07%-40.06%Others Other manufacturing costs 97,771,335.08 3.02%75,211,551.74 1.95%30.0

201、0%Note:Labor costs,depreciation,consumption of energy resources including water,electricity,and steam,as well as other manufacturing costs rose significantly year on year,primarily because revenue from sanitation service increased in the current period,resulting in a corresponding increase in suppor

202、ting facilities,labor costs,and labor outsourcing costs.(6)Changes in the Scope of Consolidated Financial Statements for the Reporting Period Yes No Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.27 1.Entities Newly Included in the Consolidated Financial Statements Name of entity

203、How the interest in the entity was obtained Time of interest obtaining The Companys capital contribution The Companys interest(%)Changde Zelian Environmental Service Co.,Ltd.Incorporation 2020.03 46,695,300.00 90.00 Xiantao Yinglian Environmental Protection Technology Co.,Ltd.Incorporation 2020.04 1

204、,000,000.00 100.00 Shenzhen Yinglian Environmental Industry Co.,Ltd.Incorporation 2020.10 2,000,000.00 100.00 Shenzhen Baoan Yinglian Urban Service Co.,Ltd.Incorporation 2020.05 109,142,740.00 70.00 Binchuan Zhongying Environmental Service Co.,Ltd.Incorporation 2020.06 927,333.00 92.73 Tangyin Yingl

205、ian Environmental Service Co.,Ltd.Incorporation 2020.07 5,760,000.00 100.00 Yangbi Zhongying Environmental Service Co.,Ltd.Incorporation 2020.07 704,682.00 70.47 Shaoyang Zhongfeng Environmental Industry Co.,Ltd.Incorporation 2020.06 10,000,000.00 100.00 Foshan Shunde Yinghe Urban Environmental Serv

206、ice Co.,Ltd.Incorporation 2020.07 1,000,000.00 100.00 Rongcheng Yinglian Urban Environmental Service Co.,Ltd.Incorporation 2020.07 21,000,000.00 100.00 Xian Yinglian Urban Environmental Service Co.,Ltd.Incorporation 2020.07 2,000,000.00 100.00 Yongshun Zhongfeng Jingtou Environmental Technology Co.,

207、Ltd.Incorporation 2020.07 10,246,725.00 75.00 Xianghe Yinglian Environmental Protection Technology Co.,Ltd.Incorporation 2020.05 10,000,000.00 100.00 Lanling Zoomlion Environmental Service Co.,Ltd.Incorporation 2020.12 2,000,000.00 100.00 Yuncheng Zhongying Urban Environmental Service Co.,Ltd.Incorp

208、oration 2020.12 1,000,000.00 100.00 Foshan Yingshun Urban Environmental Service Co.,Ltd.Incorporation 2020.11 7,000,000.00 70.00 Anshan Yinglian Urban Environmental Sanitation Management Co.,Ltd.Incorporation 2020.10 10,000,000.00 100.00 Foshan Yingtong Electric Material Co.,Ltd.Incorporation 2020.1

209、0 350,000,000.00 100.00 Donglan Yinglian Urban Environmental Service Co.,Ltd.Incorporation 2020.01 Note 100.00 Baise Yinglian Urban Environmental Incorporation 2020.01 Note 100.00 Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.28 Service Co.,Ltd.Infore Zoomlion(Tianjin)Environment

210、al Technology Co.,Ltd.Incorporation 2020.12 Note 100.00 Tongbai Tongying Environmental Sanitation Development Co.,Ltd.Incorporation 2020.11 Note 100.00 Guangdong Xingzhou Water Treatment Technology Co.,Ltd.Incorporation 2020.09 Note 100.00 Anhua Yingsheng Environmental Sanitation Service Co.,Ltd.Inc

211、orporation 2020.04 Note 100.00 Foshan Shunde Zhongying Urban Environmental Management Co.,Ltd.Incorporation 2020.12 Note 100.00 Qixian Tongying Environmental Sanitation Service Co.,Ltd.Incorporation 2020.11 Note 100.00 Laian Zhongfeng Environmental Technology Co.,Ltd.Incorporation 2020.07 Note 100.0

212、0 Zhaoyuan Jincheng Environmental Sanitation Management Service Co.,Ltd.Incorporation 2020.07 Note 100.00 Jian Zhongfeng Environmental Technology Co.,Ltd.Incorporation 2020.09 Note 100.00 Heze Yingsheng Environmental Sanitation Service Co.,Ltd.Incorporation 2020.10 Note 100.00 Luannan Yinglian Envir

213、onmental Management Co.,Ltd.Incorporation 2020.11 Note 100.00 Guangxi Guiping Yinghe Environmental Sanitation Management Co.,Ltd.Incorporation 2020.11 Note 100.00 Shennongjia Forestry District Yinghe Environmental Sanitation Management Co.,Ltd.Incorporation 2020.11 Note 100.00 Chongqing Zhongying En

214、vironmental Sanitation Service Co.,Ltd.Incorporation 2020.12 Note 100.00 Renshou Yinglian Urban and Rural Sanitation Service Co.,Ltd.Incorporation 2020.12 Note 100.00 Liucheng Yinglian Environmental Sanitation Management Co.,Ltd.Incorporation 2020.12 Note 100.00 Shengzhou Yinghe Environmental Sanita

215、tion Management Co.,Ltd.Incorporation 2020.10 Note 100.00 Shengzhou Zoomlion Environmental Engineering Co.,Ltd.Incorporation 2020.11 Note 100.00 Foshan Liansheng Environmental Sanitation Service Co.,Ltd.Incorporation 2020.09 Note 100.00 Heping Hesheng Environmental Sanitation Service Co.,Ltd.Incorpo

216、ration 2020.08 Note 100.00 Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.29 Foshan Shunde Lianying Environmental Development Co.,Ltd.Incorporation 2020.10 Note 100.00 Suqian Lianying Urban Service Co.,Ltd.Incorporation 2020.11 Note 100.00 Shouxian Liansheng Environmental Sanitati

217、on Management Co.,Ltd.Incorporation 2020.12 Note 100.00 Zaozhuang Zhongying Urban Environmental Service Co.,Ltd.Incorporation 2020.02 Note 100.00 Note:As of 31 December 2020,the Company has not yet paid in the capital contributions to these entities.2.Entities Newly Excluded from the Consolidated Fi

218、nancial Statements Name of entity How the interest in the entity was disposed of Time of interest disposal Net assets at the date of disposal Net profit from the beginning of the current period to the disposal date Leiyang Zhongfeng Environmental Industry Co.,Ltd.De-registration December 2020 0 2,07

219、1,976.28 Shenzhen Infore Environment Network Technology Co.,Ltd.De-registration August 2020 0 118,157.09 (7)Major Changes to the Business Scope or Product or Service Range in the Reporting Period Applicable Not applicable(8)Major Customers and Suppliers Major customers:Total sales to top five custom

220、ers(RMB)1,207,911,520.82 Total sales to top five customers as a%of total sales of the Reporting Period(%)8.43%Total sales to related parties among top five customers as a%of total sales of the Reporting Period(%)7.01%Top five customers:No.Customer Sales revenue contributed for the Reporting Period(R

221、MB)As a%of total sales revenue(%)1 Customer A 318,593,711.38 2.23%2 Customer B 254,151,014.66 1.77%3 Customer C 242,552,390.47 1.69%4 Customer D 201,878,188.07 1.41%5 Customer E 190,736,216.24 1.33%Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.30 Total -1,207,911,520.82 8.43%Othe

222、r information about major customers:Applicable Not applicable Major suppliers:Total purchases from top five suppliers(RMB)2,819,265,985.89 Total purchases from top five suppliers as a%of total purchases of the Reporting Period(%)31.13%Total purchases from related parties among top five suppliers as

223、a%of total purchases of the Reporting Period(%)0.00%Top five suppliers:No.Supplier Purchase in the Reporting Period(RMB)As a%of total purchases(%)1 Supplier A 1,526,789,831.86 16.86%2 Supplier B 427,478,302.52 4.72%3 Supplier C 295,563,961.16 3.26%4 Supplier D 287,050,379.99 3.17%5 Supplier E 282,38

224、3,510.37 3.12%Total -2,819,265,985.90 31.13%Other information about major suppliers:Applicable Not applicable 3.Expenses Unit:RMB 2020 2019 Change(%)Reason for any significant change Selling expense 801,289,013.51 917,261,553.74-12.64%-Administrative expense 536,466,686.12 391,834,512.74 36.91%Incre

225、ase in employee remunerations,intermediary consulting expenditures and other administrative expenses as a result of growth in the Companys business Finance costs 66,121,331.59 53,955,504.01 22.55%Increase in interest expense,as well as a decrease in cash discount income and financing income in the c

226、urrent period R&D expense 254,677,332.19 245,637,610.35 3.68%Increase in R&D investments Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.31 4.R&D Investments Applicable Not applicable The Company continued to promote technological innovation,process reform and product development.T

227、he total R&D investments amounted to RMB264 million in the Reporting Period,accounting for 1.56%of the audited net assets as at the end of the Reporting Period,and 1.84%of the operating revenue.Particulars about R&D investments:2020 2019 Change(%)Number of R&D personnel 1,356 1,286 5.44%R&D personne

228、l as a%of total employees 15.54%17.99%-2.45%R&D investments(RMB)264,110,819.71 245,637,610.35 7.52%R&D investments as a%of operating revenue 1.84%1.93%-0.09%Capitalized R&D investments(RMB)9,433,487.52 27,560,044.93-65.77%Capitalized R&D investments as a%of total R&D investments 3.57%11.22%-7.65%Rea

229、sons for any significant YoY change in the percentage of R&D investments in operating revenue:Applicable Not applicable Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:Applicable Not applicable 5.Cash Flows Unit:RMB Item 2020 2019 Change(%)Subtotal of ca

230、sh generated from operating activities 15,584,916,372.80 13,800,108,466.88 12.93%Subtotal of cash used in operating activities 13,896,202,281.05 12,315,358,412.86 12.84%Net cash generated from/used in operating activities 1,688,714,091.75 1,484,750,054.02 13.74%Subtotal of cash generated from invest

231、ing activities 5,451,867,664.79 5,111,910,988.96 6.65%Subtotal of cash used in investing activities 6,335,579,681.05 6,075,274,324.63 4.28%Net cash generated from/used in investing activities -883,712,016.26-963,363,335.67 8.27%Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.32 Sub

232、total of cash generated from financing activities 5,922,067,481.72 3,188,986,842.48 85.70%Subtotal of cash used in financing activities 4,680,215,496.91 2,814,654,695.61 66.28%Net cash generated from/used in financing activities 1,241,851,984.81 374,332,146.87 231.75%Net increase in cash and cash eq

233、uivalents 2,046,145,151.54 891,714,315.91 129.46%Explanation of why any of the data above varies significantly on a year-on-year basis:Applicable Not applicable 1)Cash generated from financing activities increased 85.70%year on year,primarily driven by the issuance of convertible corporate bonds in

234、the Reporting Period.2)Cash used in financing activities increased 66.28%year on year,primarily driven by a greater amount of bank borrowings repaid upon maturity.Explanation of why the net cash generated from/used in operating activities varies significantly from the net profit of the Reporting Per

235、iod:Applicable Not applicable III Analysis of Non-Core Businesses Applicable Not applicable Unit:RMB Amount As a%of gross profit Primary source/reason Recurrent or not Return on investment 78,328,670.09 4.78%Return on investment recognized using the equity method,and returns on wealth management pro

236、ducts RMB41,578,662.81 is the returns on long-term equity investments calculated using the equity method,which is recurrent.And the other portion is not recurrent.Gain/loss on changes in fair value -95,719,301.47-5.85%-Not Asset impairment loss-82,478,500.15-5.04%-Not Non-operating income 9,844,019.

237、69 0.60%-Not Non-operating expense 58,229,724.05 3.56%-Not Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.33 IV Analysis of Assets and Liabilities 1.Significant Changes in Asset Composition Indicate whether the Company has adopted the new accounting standards governing revenue and

238、 leases since 2020 and restated the beginning amounts of relevant financial statement line items in the year.Applicable.Unit:RMB 31 December 2020 1 January 2020 Change in percentage(%)Reason for any significant change Amount As a%of total assets Amount As a%of total assets Monetary assets 5,904,127,

239、970.85 19.61%3,160,767,624.40 12.72%6.89%-Accounts receivable 5,564,834,864.04 18.48%4,912,568,006.30 19.77%-1.29%-Inventories 1,305,177,407.85 4.33%1,145,000,730.01 4.61%-0.28%-Investment property 2,009,006.98 0.01%568,026.39 0.00%0.01%-Long-term equity investments 318,243,332.69 1.06%303,292,231.0

240、1 1.22%-0.16%-Fixed assets 1,640,546,747.67 5.45%994,681,585.66 4.00%1.45%-Construction in progress 1,782,529,087.95 5.92%1,550,462,442.48 6.24%-0.32%-Short-term borrowings 1,657,905,376.55 5.51%1,606,673,817.48 6.46%-0.95%-Long-term borrowings 765,643,457.78 2.54%643,843,170.78 2.59%-0.05%-Bonds pa

241、yable 1,199,466,109.60 3.98%3.98%-2.Assets and Liabilities at Fair Value Applicable Not applicable Unit:RMB Item Opening amount Gain/loss on fair-value changes in the current period Cumulative fair-value changes recognized in equity Impairment allowance for the current period Purchased in the curren

242、t period Sold in the current period Other changes Closing amount Financial assets Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.34 1.Held-for-trading financial assets(exclusive of derivative financial assets)217,138,046.28-89,949,855.53 4,794.36 127,192,985.11 2.Derivative financ

243、ial assets 51,100.00-3,205,100.27 4,793,300.00 0.00 814,549.73 824,750.00 3.Other debt investments 0.00 4.Investments in other equity instruments 26,070,000.00 26,070,000.00 Subtotal of financial assets 243,259,146.28-93,154,955.80 0.00 0.00 4,798,094.36 0.00 814,549.73 154,087,735.11 Total of the a

244、bove 243,259,146.28-93,154,955.80 0.00 0.00 4,798,094.36 0.00 814,549.73 154,087,735.11 Financial liabilities 866,300.00-2,564,345.67 0.00 2,622,150.00 1,804.33 810,300.00 Particulars about other changes:Other changes in derivative financial assets and financial liabilities were changes in the fair

245、value of a hedged itemcopper in stock.Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.Yes No 3.Assets to which the Companys Rights Were Restricted as at the Period-End Unit:RMB Item Closing carrying amount Reason for restrict

246、ion Monetary assets 1,246,301,871.62 Security deposits,frozen and preserved amount in legal procedures,and amount in escrow account Accounts receivable 103,965,922.09 In pledge Receivables financing 306,145,249.74 In pledge Long-term receivables and current portion of 49,160,385.66 Factoring with th

247、e right of recourse Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.35 non-current liabilities Fixed assets 551,470,379.29 As collateral Investment property 51,185.99 As collateral Intangible assets 236,472,755.88 As collateral 100%equity interests of Funan Greenlander Environmenta

248、l Protection Co.,Ltd.58,236,923.40 In pledge 100%equity interests of Shouxian Greenlander New Energy Co.,Ltd.80,691,695.44 In pledge 100%equity interests of Xiantao Greenlander Environmental Protection Power Co.,Ltd.204,935,012.39 In pledge 25%equity interests in Lianjiang Greenlander New Energy Co.

249、,Ltd.23,149,733.54 Frozen and preserved in legal procedures Total 2,860,581,115.04-V Investments Made 1.Total Investment Amount Applicable Not applicable 2.Significant Equity Investments Acquired in the Reporting Period Applicable Not applicable 3.Significant Non-Equity Investments of which the Acqu

250、isition Was Uncompleted in the Reporting Period Applicable Not applicable 4.Financial Investments(1)Securities Investments Applicable Not applicable Unit:RMB Security type Security code Security name Initial investment cost Measurement method Opening carrying amount Gain/loss on fair-value changes i

251、n the current period Cumulative fair-value changes recognized in equity Purchased in the current period Sold in the current period Gain/loss in the current period Closing carrying amount Accounting title Funding source Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.36 Domestically

252、/overseas listed stock 600340 CFLD 3,019,500.00 Fair value 215,250,000.00-89,182,500.00 -89,182,500.00 126,067,500.00 Held-for-trading financial assets Original contribution Domestically/overseas listed stock 002161 Invengo 1,662,299.72 Fair value 1,888,046.28-770,753.07 -770,753.07 1,117,293.21 Hel

253、d-for-trading financial assets Purchased from the secondary market Domestically/overseas listed stock 605155 Xidamen 2,095.83 Fair value 0.00 921.69 0.00 2,095.83 921.69 3,017.52 Held-for-trading financial assets Purchased from the secondary market Domestically/overseas listed stock 605179 Yiming Fo

254、od 2,698.53 Fair value 0.00 2,475.85 0.00 2,698.53 2,475.85 5,174.38 Held-for-trading financial assets Purchased from the secondary market Total 4,686,594.08-217,138,046.28-89,949,855.53 0.00 4,794.36 0.00-89,949,855.53 127,192,985.11-Disclosure date of the board announcement approving the securitie

255、s investments 23 April 2018 Disclosure date of the general meeting announcement approving the securities investments(if any)16 May 2018(2)Investments in Derivative Financial Instruments Applicable Not applicable No such cases in the Reporting Period.5.Use of Raised Funds Applicable Not applicable An

256、nual Report 2020 of Infore Environment Technology Group Co.,Ltd.37(1)Overall Use of Raised Funds Applicable Not applicable Unit:RMB0,000 Year for fund-raising Method of fund-raising Total raised funds Total raised funds that have been used in the current period Total raised funds that have been used

257、 accumulatively Total raised funds with altered purposes during the Reporting Period Total accumulative raised funds with altered purposes Proportion of total accumulative raised funds with altered purposes Total raised funds that have not been used yet Use and ownership change of unused raised fund

258、s Raised funds that have been left unused for over two years 2020 Public offering 145,733.62 17,463.39 17,463.39 0 0 0.00%128,270.23 The Proposal on Using Some Idle Raised Funds to Replenish Working Capital was deliberated and approved at the 9th Extraordinary Meeting of the 9th Board of Directors a

259、nd the 10th Extraordinary Meeting of the 9th Board of Directors held by the Company on 4 December 2020,allowing the Company to use restricted raised funds of no more than RMB1 0 Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.38 billion for temporary replenishment of working capita

260、l,which shall be used for the production and operation related to the Companys main businesses with a term of no more than 12 months as of the date when the Proposal was deliberated and approved by the Board of Directors.Total-145,733.62 17,463.39 17,463.39 0 0 0.00%128,270.23-0 Explanation of the o

261、verall use of raised funds Upon approval by the Document ZH.J.X.K.2020 No.2219 of the China Securities Regulatory Commission(CSRC)and with the consent of the Shenzhen Stock Exchange(SZSE),the lead underwriter of the Company,Huaxing Securities Co.,Ltd.(formerly known as“Huajing Securities”,hereinafte

262、r referred to as Huaxing Securities)issued 14,761,896 convertible corporate bonds(hereinafter referred to as CB)to the public with the offering price of RMB100,each having a par value of RMB100,totaling RMB1,476,189,600.00.Specifically,priority allotment of 9,405,386 CB was issued to original shareh

263、olders of the Company,accounting for 63.71%of the total amount of this public offering;5,304,730 CB was issued to public investors through online channels,accounting for 35.94%of the total amount of this public offering;51,780 CB was to be underwritten by the lead underwriter,accounting for 0.35%of

264、the total amount of this public offering.Funds raised in this offering had been remitted to the Companys raised fund supervision account by the lead underwriter Huaxing Securities on 10 November 2020,and the amount actually received after deducting RMB15,238,100 of underwriting and sponsorship fees(

265、tax-exclusive)was RMB1,460,951,500.After deducting RMB3,615,300(tax-exclusive)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

266、 commission fee,the net raised funds of the Company from this offering were RMB1,457,336,200.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).Annual Report 2020 of Infore Environ

267、ment Technology Group Co.,Ltd.39(2)Committed Projects of Raised Funds Applicable Not applicable Unit:RMB0,000 Committed investment projects and investment of excessive raised funds Whether projects have been altered(including partial alternation)Total committed investment with raised funds Adjusted

268、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 recorded during the

269、Reporting Period Whether the estimated benefits are reached Whether there are material changes in the project feasibility Committed investment projects The project of the comprehensive intelligent sanitation allocation center No 129,638.49 129,638.49 1,368.26 1,368.26 1.06%31 December 2022 N/A No Re

270、plenishment of working capital No 16,095.13 16,095.13 16,095.13 16,095.13 100.00%31 December 2020 N/A No Subtotal of committed investment projects-145,733.62 145,733.62 17,463.39 17,463.39-Investment of excessive raised funds N/A Repayment of bank loans(if any)-0 0 0 0 0.00%-Replenishment of working

271、 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 17,463.39 17,463.39-0-Cases and reasons for None Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.40 failing to reach the planned progress or predicted return(by spe

272、cific projects)Explanations of the material changes in the project feasibility None Amount,use,and use progress of excessive raised funds N/A Implementation of location changes in the investment projects with the raised funds N/A Implementation of method adjustments to the investment projects with t

273、he raised funds N/A Early investment and placement concerning the investment projects with the raised funds N/A Temporary replenishment of working capital with the idle raised funds Applicable The Proposal on Using Some Idle Raised Funds to Replenish Working Capital was deliberated and approved at t

274、he 9th Extraordinary Meeting of the 9th Board of Directors and the 10th Extraordinary Meeting of the 9th Board of Directors held by the Company on 4 December 2020,allowing the Company to use restricted raised funds of no more than RMB1 billion for temporary replenishment of working capital,which sha

275、ll be used for the production and operation related to the Companys main businesses with a term of no more than 12 months as of the date when the Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.41 Proposal was deliberated and approved by the Board of Directors.As at 31 December 202

276、0,the balance of the idle raised funds used by the Company for temporary replenishment of working capital was RMB1,000,000,000.Surplus raised funds for project implementation and reasons for the surplus N/A Use and ownership change of unused raised funds The Proposal on Using Some Idle Raised Funds

277、to Replenish Working Capital was deliberated and approved at the 9th Extraordinary Meeting of the 9th Board of Directors and the 10th Extraordinary Meeting of the 9th Board of Directors held by the Company on 4 December 2020,allowing the Company to use raised funds of no more than RMB1 billion for t

278、emporary replenishment of working capital,which shall be used for the production and operation related to the Companys main businesses with a term of no more than 12 months as of the date when being deliberated and approved by the Board of Directors.As at 31 December 2020,the balance of the idle rai

279、sed funds used by the Company for temporary replenishment of working capital was RMB1,000,000,000.Other unused raised funds of RMB284,509,100 were still retained on the special account of raised funds in the form of demand deposits at banks for the purpose of continuous construction of corresponding

280、 fund-raising projects.Problems in the use of raised funds and disclosure,or other cases None (3)Altered Projects of Raised Funds Applicable Not applicable No such cases in the Reporting Period.VI Sale of Major Assets and Equity Investments 1.Sale of Major Assets Applicable Not applicable No such ca

281、ses in the Reporting Period.2.Sale of Major Equity Investments Applicable Not applicable VII Principal Subsidiaries and Joint Stock Companies Applicable Not applicable Principal subsidiaries and joint stock companies with an over 10%effect on the consolidated net profit:Annual Report 2020 of Infore

282、Environment Technology Group Co.,Ltd.42 Unit:RMB Name Relationship with the Company Principal activities Registered capital Total assets Net assets Operating revenue Operating profit Net profit Changsha Zoomlion Environmental Industry Co.,Ltd.Subsidiary Intelligent sanitation RMB2,351.5298 million 1

283、4,748,699,793.30 6,813,202,919.41 10,135,672,962.73 1,701,177,612.90 1,436,516,377.48 Shenzhen Greenlander Environmental Protection Co.,Ltd.Subsidiary Environment monitoring and treatment of solid waste RMB150 million 1,741,873,028.13 38,592,327.42 181,203,208.46 2,913,858.34 1,458,573.11 Guangdong

284、Infore Technology Co.,Ltd.Subsidiary Environment monitoring and treatment of solid waste RMB110 million 789,035,728.95 101,177,283.36 211,026,157.11 16,676,579.49 22,011,639.68 Foshan Infore Environment Water Treatment Co.,Ltd.Subsidiary Environment monitoring and treatment of solid waste RMB100,000

285、 595,470,908.92 163,408,762.29 156,482,090.72 62,080,036.62 55,592,595.40 Foshan Yingtong Electric Material Co.,Ltd.Subsidiary Manufacturing of electric materials and others RMB350 million 1,275,456,508.41 552,633,962.43 2,541,740,190.79 48,813,200.25 33,222,086.94 Subsidiaries acquired or disposed

286、of in the Reporting Period:Applicable Not applicable Name Way of acquisition or disposal Effects on the overall operations and performance Donglan Yinglian Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Baise Yinglian Urban Environmental Service Co.,Ltd.I

287、ncorporation Positive effects on the Companys business Zaozhuang Zhongying Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Changde Zelian Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business XiantaoYinglian Environmental Pr

288、otection Incorporation Positive effects on the Companys business Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.43 Technology Co.,Ltd.Xianghe Yinglian Environmental Protection Technology Co.,Ltd.Incorporation Positive effects on the Companys business Binchuan Zhongying Environment

289、al Service Co.,Ltd.Incorporation Positive effects on the Companys business Shenzhen Baoan Yinglian Urban Service Co.,Ltd.Incorporation Positive effects on the Companys business Foshan Shunde Yinghe Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Foshan Lia

290、nsheng Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Shaoyang Zhongfeng Environmental Industry Co.,Ltd.Incorporation Positive effects on the Companys business Tangyin Yinglian Environmental Service Co.,Ltd.Incorporation Positive effects on the Compa

291、nys business Xian Yinglian Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Yangbi Zhongying Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Rongcheng Yinglian Urban Environmental Service Co.,Ltd.Incorporation Positive

292、effects on the Companys business Laian Zhongfeng Environmental Technology Co.,Ltd.Incorporation Positive effects on the Companys business Zhaoyuan Jincheng Environmental Sanitation Management Service Co.,Ltd.Incorporation Positive effects on the Companys business Jian Zhongfeng Environmental Technol

293、ogy Co.,Ltd.Incorporation Positive effects on the Companys business Heping Hesheng Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Yongshun Zhongfeng Jingtou Environmental Technology Co.,Ltd.Incorporation Positive effects on the Companys business Fosh

294、an Shunde Lianying Environmental Development Co.,Ltd.Incorporation Positive effects on the Companys business Shouxian Liansheng Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Foshan Shunde Zhongying Urban Environmental Management Co.,Ltd.Incorpora

295、tion Positive effects on the Companys business Suqian Lianying Urban Service Co.,Ltd.Incorporation Positive effects on the Companys business Anshan Yinglian Urban Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Liucheng Yinglian Environmental Sanit

296、ation Management Co.,Ltd.Incorporation Positive effects on the Companys business Chongqing Zhongying Environmental Incorporation Positive effects on the Companys business Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.44 Sanitation Service Co.,Ltd.Renshou Yinglian Urban and Rural

297、Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Infore Zoomlion(Tianjin)Environmental Technology Co.,Ltd.Incorporation Positive effects on the Companys business Yuncheng Zhongying Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys bu

298、siness Lanling Zoomlion Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Tongbai Tongying Environmental Sanitation Development Co.,Ltd.Incorporation Positive effects on the Companys business Shennongjia Forestry District Yinghe Environmental Sanitation Management

299、 Co.,Ltd.Incorporation Positive effects on the Companys business Shengzhou Zoomlion Environmental Engineering Co.,Ltd.Incorporation Positive effects on the Companys business Shengzhou Yinghe Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Guangxi G

300、uiping Yinghe Environmental Sanitation Management Co.,Ltd.Incorporation Positive effects on the Companys business Heze Yingsheng Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Shenzhen Yinglian Environmental Industry Co.,Ltd.Incorporation Positive ef

301、fects on the Companys business Foshan Yingshun Urban Environmental Service Co.,Ltd.Incorporation Positive effects on the Companys business Guangdong Xingzhou Water Treatment Technology Co.,Ltd.Incorporation Positive effects on the Companys business Foshan Yingtong Electric Material Co.,Ltd.Incorpora

302、tion Positive effects on the Companys business Qixian Tongying Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Anhua Yingsheng Environmental Sanitation Service Co.,Ltd.Incorporation Positive effects on the Companys business Shenzhen Infore Environment

303、 Network Technology Co.,Ltd.De-registration Asset optimization,with no significant impact on the Companys operations and performance Leiyang Zhongfeng Environmental Industry Co.,Ltd.De-registration Asset optimization,with no significant impact on the Companys operations and performance Other informa

304、tion on principal subsidiaries and joint stock companies:VIII Structured Bodies Controlled by the Company Applicable Not applicable Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.45 IX Prospects(I)Industry Development and Trend 1.National policies will promote the development of t

305、he sanitation industry According to the New Energy Vehicle Industry Development Plan(2021-2035),from 2021,new energy vehicles(NEVs)should account for no less than 80%of the vehicles newly added and replaced in public transport areas such as national ecological civilization pilot zone and key regions

306、 for prevention and control of atmospheric pollution.The State Council has issued the Guidelines on Carrying out the Patriotic Public Health Campaign in a Deep-going Way to perfect public health facilities,improve the living environments for urban and rural residents,and promote the comprehensive ma

307、nagement of environmental hygiene in urban and rural areas;enhance social health management,make coordinated efforts to promote the building of a healthy China,and vigorously boost the construction of health cities and towns.The Fifth Plenary Session of the 19th CPC Central Committee raised clear re

308、quirements for drawing up an action plan for carbon emissions to peak by 2030,putting forward specific objectives,indicators,main ways,and policy suggestions for the plan to make it practical and feasible and can be continued and carried forward in the future.Many local governments clearly stated th

309、at they would take solid steps toward the goals of achieving peak carbon emissions and carbon neutrality,develop action plans for carbon emissions to peak by 2030,optimize the industrial and energy structures,promote the clean and efficient use of coal,and make a major push to the development of new

310、 energy resources.According to the Several Opinions on Further Promoting the Classification of Domestic Waste,China aims to take another five years or so to establish a fundamentally complete system of laws and regulations for domestic waste classification;cities at the prefecture level and above sh

311、all establish a system for domestic waste sorting,separate collection,classified transportation,and sorting treatment according to local conditions.Residents shall generally cultivate household waste sorting habits;the recycling rate of domestic garbage in cities across the country should exceed 35%

312、.The Guiding Opinions on Building a Modern Environmental Governance System require that key environmental protection technologies and products shall be enhanced,the demonstration and application of first(set of)technical equipment for environmental protection shall be advanced,and the quality of tec

313、hnical equipment for the environmental protection industry shall be expeditiously improved.2.The demands for sanitation services will keep increasing As a part of public services,sanitation services income comes from the governments fiscal expenditure as inflexible items and is less affected by macr

314、oeconomic regulation.Therefore,sanitation services are featured by sustainability and stability.(1)Urbanization has led to increasing service demands With the constant development of urbanization,the construction of urban roads will directly increase road cleaning space,urban housing,community const

315、ruction,and urban green space,and thus give rise to higher demands for sanitation equipment and cleaning services in cities and towns.In addition,public sanitation is a necessary guarantee condition for cities in different provinces to engage in a series of urban upgrading and construction as nation

316、al civilized cities,national health cities,national environmental protection exemplary cities,national ecological garden cities,etc.According to the statistical data released by Ministry of Housing and Urban-Rural Development,from 2010 to 2018,Chinas road cleaning space in cities and counties increa

317、sed from 6,257 million square meters to 11,249 million square meters,with the overall road cleaning space increasing by nearly 80%.Meanwhile,the domestic waste generated in cities and counties increased from 221 million tons to 295 million tons,with the overall domestic waste increasing by 33%.In th

318、e context of urbanization,to ensure the roads,residential districts,and municipal gardens in cities and towns Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.46 are clean,and maintain the normal transportation and treatment of domestic waste,cities and towns are continuously raisin

319、g demands for sanitation services.(2)The rural sanitation market is gradually developing with the onset of building beautiful villages For a long time,not enough attention has been paid to the waste produced in Chinas rural areas.In most rural areas,the construction of waste disposal facilities is r

320、are,with an extremely unsound treatment mechanism for rural waste.The 13th Five-Year Plan for National Integrated Rural Environment Management specified that by 2020,additional 130,000 incorporated villages would have completed the integrated environmental management,adding the number of such villag

321、es up to over one third of the total incorporated villages across the country,and more than 4.5 million pieces/sets garbage collection,transportation,and treatment facilities would have been established.The 13th Five-Year Plan for Ecological&Environmental Protection released by the State Council in

322、November 2016 also clarified that China would speed up the construction of waste treatment facilities in counties and realize the full coverage of waste treatment facilities in cities and towns by the end of 2020.In the era of building beautiful villages and boosting urban and rural sanitation integ

323、ration,projects like promotion by all counties and comprehensive management have emerged continuously and the rural sanitation market will enter a new stage for further rapid market expansion.In the further,with great potential,the rural sanitation market will be able to provide a broad market and l

324、arge room for improvement for the sanitation service industry and even the whole sanitation market.(3)With the continuous advancement of waste sorting,the market demands will be increasing constantly In September 2020,President Xi Jinping chaired the meeting of the Central Commission for Comprehensi

325、vely Deepening Reform,at which the Several Opinions on Further Promoting the Classification of Domestic Waste were deliberated and passed.With the accelerated promotion of waste sorting policies,since the traditional collection and transportation facilities cannot satisfy the demands for classified

326、collection and transportation and the four treatment procedures including delivery,collection,transportation,and treatment of domestic waste will be divided into four steps,the traditional collection and transportation system for domestic waste will be completely changed.Accordingly,as demands to up

327、grade traditional practices and sanitation technologies and equipment keeps rising,plus the investment demand for intelligent system improvement,the market demands will be constantly increasing.(4)Under the influence of the goal of carbon neutrality,the process of sanitation equipment using new ener

328、gy resources will be further accelerated According to the relevant policies that have been successively issued by local governments,in principle,the updated sanitation vehicles should be mainly based on new energy resources.In the future,it is expected that the procurement of new energy sanitation v

329、ehicles will be on the rise,which will further accelerate the process of sanitation equipment using new energy resources for years to come.In November 2020,the New Energy Vehicle Industry Development Plan(2021-2035)was issued,requiring that new energy vehicles(NEVs)should account for no less than 80

330、%of the vehicles newly added and replaced in key regions and public areas.Since 2012,China has worked out the guiding policy on accelerating fostering the new energy vehicle industry and issued several important documents successively for implementation.In addition,after going through a gestation pe

331、riod,the promotion of new energy sanitation vehicles has now entered a period of explosive growth.(5)The enhanced mechanization rate will drive the growth in the incremental volume of sanitation equipment in the market The improvement in the mechanization rate in the sanitation industry can reduce t

332、he cost of the sanitation work and reduce the financial burdens on the government and enterprises.With the increasing expansion of road cleaning space in Chinas urban and rural areas,the mechanization rate in the sanitation industry will gradually rise.According to the statistical communique on urba

333、n and rural construction prepared by Ministry of Housing and Urban-Rural Development,at the end of 2018,the mechanical cleaning space of the road in cities across the country reached 5,986 million square meters,with a mechanical cleaning rate of 68.85%;the Annual Report 2020 of Infore Environment Technology Group Co.,Ltd.47 mechanical cleaning space of the road in counties across the country reach