Dividend Distribution - The company plans to distribute a cash dividend of 1.70 CNY per 10 shares, totaling approximately 103.78 million CNY based on a total share capital of 610,479,037 shares as of December 31, 2021[4]. - The company has no plans for capital reserve transfers to increase share capital in the current dividend distribution proposal[4]. - The company plans to distribute cash dividends of 1.10 CNY per 10 shares, totaling approximately 67.15 million CNY based on a total share count of 610,479,037 shares as of December 31, 2020[199]. - The cash dividend policy stipulates that the total cash dividends should not be less than 20% of the audited net profit attributable to shareholders of the listed company for the year[194]. - In the case of a mature company without significant capital expenditure, the cash dividend proportion should be at least 80% of the profit distribution[195]. - The company emphasizes the importance of reasonable returns to investors while ensuring sustainable development[194]. - The company will consider cash or stock dividends, with a preference for cash[194]. - The board of directors must propose the profit distribution plan, which requires approval from more than half of the directors[197]. - The company retains undistributed profits primarily for investments related to business operations, asset purchases, and enhancing R&D capabilities[197]. - The company will communicate with shareholders, especially minority shareholders, to gather opinions on profit distribution plans[197]. - The company’s profit distribution policy can be adjusted if there are significant changes in the operating environment or if deemed necessary by the board[198]. Financial Performance - The company's operating revenue for 2021 was CNY 4,048,445,944.19, representing a year-on-year increase of 48.80% compared to CNY 2,720,728,128.47 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 536,168,573.50, a significant increase of 141.69% from CNY 221,845,912.48 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses reached CNY 483,980,617.11, up 218.33% from CNY 152,036,673.13 in 2020[20]. - The net cash flow from operating activities decreased by 53.16% to CNY 243,488,177.90 from CNY 519,775,864.19 in 2020, primarily due to a significant increase in the prices of HFCs refrigerant products[21]. - The company's total assets at the end of 2021 were CNY 6,051,148,356.58, reflecting a 12.78% increase from CNY 5,365,526,243.35 at the end of 2020[20]. - The net assets attributable to shareholders increased by 6.14% to CNY 5,288,370,820.57 at the end of 2021 from CNY 4,982,218,202.57 at the end of 2020[20]. - Basic earnings per share for 2021 were CNY 0.88, a 144.44% increase compared to CNY 0.36 in 2020[21]. - The weighted average return on net assets for 2021 was 10.30%, an increase of 5.82 percentage points from 4.48% in 2020[21]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements, which may differ significantly from actual future results[5]. - The company has detailed potential risks and corresponding countermeasures in the management discussion and analysis section of the report[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or their affiliates[6]. - The company has not violated decision-making procedures in providing guarantees to external parties[6]. - The company maintains a commitment to transparency and accuracy in its financial reporting, as stated by its management[7]. Research and Development - The company holds 71 authorized patents, including 25 invention patents, with 3 invention patents and 11 utility model patents added during the reporting period[41]. - The company has initiated 32 R&D projects focusing on new refrigerants, foaming agents, and lithium battery materials, aligning with its strategic development plan[41]. - The company has invested in 32 R&D projects focusing on optimizing production processes and developing new products such as high-purity hydrogen fluoride and new refrigerants[111]. - The company employs a production model that integrates production, supply, and sales, allowing for timely adjustments based on market conditions[54]. Market and Industry Trends - The company is positioned in the chemical raw materials and products manufacturing industry, focusing on fluorinated refrigerants, foaming agents, and hydrogen fluoride[105]. - The company is actively extending its downstream industrial chain to utilize existing HCFCs capacity for non-ODS applications, ensuring sustainable development amid regulatory pressures[155]. - The company is committed to enhancing its environmental management practices and investing in pollution reduction technologies to comply with stricter regulations[148]. - The company is focusing on the development of new environmentally friendly refrigerants and foaming agents, as well as fluoropolymers and fluorochemicals to enhance its product portfolio and reduce cyclical risk exposure[150]. Corporate Governance - The company has established a performance evaluation system for senior management, linking compensation to performance and ensuring alignment with company growth[164]. - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, and operations, ensuring independent accounting and risk management[165]. - The company actively engages with investors through various communication channels, ensuring fair treatment of institutional and retail investors[166]. - The company emphasizes environmental protection and social responsibility, investing in clean production and community support initiatives[167]. Management and Personnel - The company has a management team with extensive experience in various sectors, including real estate and pharmaceuticals, indicating a diverse skill set[176]. - The current management includes individuals with significant tenure, such as Hu Qixiang, who has been with the company since 2012, showcasing stability in leadership[176]. - The company has a total of 1,722 employees, with 811 in the parent company and 911 in major subsidiaries[191]. - The professional composition includes 957 production personnel, 123 sales personnel, 210 technical personnel, 70 financial personnel, 185 administrative personnel, and 177 logistics personnel[191]. Regulatory Environment - The Ministry of Ecology and Environment announced a phased reduction plan for HCFCs, aiming for a 35% reduction by 2020 and a complete phase-out by 2030, excluding maintenance and special uses[95]. - The EU's F-gas regulation mandates a 55% reduction in HFCs by 2021-2023, with a target of 79% reduction by 2030[96]. - The Kigali Amendment to the Montreal Protocol, effective from January 1, 2019, sets a timeline for HFCs reduction, including a 10% reduction by 2019 and 85% by 2036 for developed countries[97]. - The Ministry of Ecology and Environment prohibits new projects for producing controlled ozone-depleting substances as refrigerants, foaming agents, and other uses[98].

Financial Performance - Operating revenue rose by 19.49% to CNY 840,680,933.11 year-on-year[3] - Net profit attributable to shareholders decreased by 36.42% to CNY 63,512,237.74 compared to the same period last year[3] - Total operating revenue for Q1 2021 was CNY 840,680,933.11, an increase of 19.5% compared to CNY 703,534,935.70 in Q1 2020[16] - Net profit for Q1 2021 was CNY 63,512,237.74, a decrease of 36.4% from CNY 99,951,456.11 in Q1 2020[17] - Total profit for Q1 2021 was CNY 83,082,585.44, a decline of 35.5% compared to CNY 128,834,711.93 in Q1 2020[17] - Operating profit for Q1 2021 was CNY 120,010,033.38, a decrease of 9.6% from CNY 132,751,393.20 in Q1 2020[16] - The total comprehensive income for Q1 2021 was CNY 33,615,828.93, compared to CNY 67,642,590.12 in Q1 2020, indicating a decrease of approximately 50%[19] Cash Flow - Net cash flow from operating activities dropped significantly by 96.72% to CNY 8,143,402.08[3] - Cash inflow from operating activities in Q1 2021 was CNY 625,512,313.64, down from CNY 672,943,578.40 in Q1 2020, reflecting a decline of about 7%[20] - The net cash flow from operating activities for Q1 2021 was CNY 8,143,402.08, significantly lower than CNY 248,400,483.42 in Q1 2020, representing a decrease of approximately 97%[21] - Cash outflow from investing activities in Q1 2021 totaled CNY 1,365,754,490.58, compared to CNY 674,198,856.56 in Q1 2020, indicating an increase of about 102%[21] - The net cash flow from investing activities for Q1 2021 was -CNY 570,223,899.58, contrasting with a positive CNY 201,953,553.33 in Q1 2020[21] - The company reported a cash flow from operating activities net amount of CNY 81,796,272.96 in Q1 2021, down from CNY 236,133,829.25 in Q1 2020, indicating a decline of approximately 65%[23] Assets and Liabilities - Total assets increased by 2.09% to CNY 5,477,886,602.36 compared to the end of the previous year[3] - Total assets as of March 31, 2021, amounted to $5,477,886,602.36, compared to $5,365,526,243.35 at the end of 2020, showing a slight increase[11] - The company’s total liabilities as of March 31, 2021, were $401,428,593.62, up from $355,088,151.73, reflecting an increase in current liabilities[12] - Total liabilities increased to ¥429,633,288.63 from ¥383,308,040.78, representing a growth of approximately 12.1% year-over-year[13] - Total equity attributable to shareholders rose to ¥5,048,253,313.73, up from ¥4,982,218,202.57, indicating an increase of about 1.3%[13] - Cash and cash equivalents decreased to ¥1,747,384,185.62 from ¥2,345,125,667.25, a decline of approximately 25.5%[14] - Current liabilities totaled ¥921,830,961.27, up from ¥760,007,403.14, which is an increase of around 21.3%[15] Expenses - Operating costs rose to $699,979,485.29, a 30.98% increase from $534,419,413.90, mainly driven by higher sales volume and material price increases[9] - Research and development expenses increased by 41.05% to $6,681,438.98 from $4,736,876.87, reflecting a rise in R&D activities[9] - The company reported a 72.16% decrease in selling expenses to $12,455,150.66 from $44,746,093.15, attributed to the reclassification of transportation costs[9] - Other income increased by 83.04% to $3,116,225.18 from $1,702,516.46, mainly due to an increase in government subsidies[9] - Financial expenses improved, with a decrease in foreign exchange losses, resulting in a financial expense of -$15,495,267.04 compared to -$23,343,243.00[9] Shareholder Information - The number of shareholders reached 22,188, with the top shareholder holding 36.99% of the shares[6]