Dividend and Capital Structure - The company plans to distribute a cash dividend of 4.00 RMB per 10 shares to all shareholders, based on a total of 82,199,410 shares[4]. - The company will increase its capital reserve by converting 3 shares for every 10 shares held by shareholders[4]. - The company plans to increase its total share capital by 24,659,823 shares through a capital reserve transfer of 3 shares for every 10 shares held, raising the total share capital to 106,859,233 shares[125]. - The company issued 20,550,000 new shares, increasing the total share capital from 61,649,410 to 82,199,410 shares[179]. - The company issued 20,550,000 shares at a price of 25.56 RMB per share, raising a total of 525,258,000 RMB, with a net amount of 454,500,000 RMB after expenses[185]. - The capital reserve after the IPO was 433,950,000 RMB, indicating strong financial backing post-issuance[186]. Financial Performance - The company’s operating revenue for 2021 was CNY 933,190,774.90, a decrease of 1.31% compared to CNY 945,619,144.44 in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 96,431,032.27, down 19.36% from CNY 119,582,172.50 in 2020[22]. - The basic earnings per share for 2021 was CNY 1.56, a decrease of 19.59% compared to CNY 1.94 in 2020[22]. - The company achieved total operating revenue of CNY 933.19 million, with a net profit attributable to shareholders of CNY 96.43 million, and earnings per share of CNY 1.56[46]. - Sales of casting materials reached 738,267.22 tons, a year-on-year increase of 12.65%, while revenue from casting materials was CNY 739.27 million, up 10.07%[46]. - The company faced significant cost pressures from rising raw material and energy prices, impacting revenue scale and product gross margins, leading to a decrease in profit margins[46]. Operational Insights - The report outlines the company's operational scope, including various subsidiaries involved in the production of casting materials[12]. - The company is focused on enhancing its market position through strategic initiatives and potential expansions[4]. - The company has established production bases across multiple provinces, serving over 400 automotive and aerospace casting enterprises nationwide[33]. - The company has developed the CZS series energy-saving flexible foundry waste sand regeneration technology, achieving industry-leading status and addressing high energy consumption and low yield issues[35]. - The company has successfully developed the CZS series energy-saving flexible casting waste sand regeneration technology and equipment, achieving a cumulative recycling of over 200 million tons of casting waste sand, generating several hundred million RMB in output value[43]. Research and Development - The company is developing a new type of self-hardening phosphate binder, which aims to enhance environmental sustainability in the casting sand process[64]. - The company has completed the development of a new low-density composite proppant for oil and gas production, enhancing production efficiency[64]. - The company's R&D investment amounted to ¥16,440,817.93 in 2021, a decrease of 17.89% compared to ¥20,022,067.57 in 2020[67]. - The number of R&D personnel increased by 5.00% to 63 in 2021, with a notable increase in younger employees under 30 years old by 66.67%[66]. Governance and Compliance - The report includes a comprehensive overview of the company's governance structure and compliance with regulatory requirements[4]. - The company has a total of 7 board members, including 3 independent directors, complying with legal and regulatory requirements[97]. - The company has an independent financial department and has established a complete financial accounting system, ensuring independent financial decision-making[99]. - The company has established a transparent performance evaluation system for its directors and senior management[97]. - The company has no significant differences in governance practices compared to the regulations set by the China Securities Regulatory Commission[97]. Market and Industry Trends - The foundry coating sand production and sales are influenced by the economic cycle, with demand fluctuating based on the automotive and oil and gas industries' performance[33]. - The company is positioned to capture market share in the resin-coated proppant sector, which is expected to grow due to increasing demand for high-strength and corrosion-resistant materials[36]. - The company anticipates that the geopolitical risks from the Russia-Ukraine conflict will keep international oil prices at a high level, impacting the oil and gas extraction industry[88]. - The company expects that the implementation of stricter environmental standards will drive demand for its eco-friendly products, such as CCATEK and CCITEK[89]. Risk Management - The report emphasizes the importance of accurate financial reporting and the potential risks associated with forward-looking statements[4]. - The company’s future development strategy and operational goals may face various risk factors, which are detailed in the management discussion section[4]. - The company is preparing for potential risks related to rising raw material prices and transportation costs, which could impact its competitive position[92]. - The company faces risks from macroeconomic fluctuations and changes in downstream industry environments, which could affect its operational strategies[92]. Social Responsibility and Community Engagement - The company donated a total of 300,000 RMB for infrastructure projects in Taiping Village, including 30,000 RMB for streetlight installation and 50,000 RMB for elderly activity facilities[138]. - The company has a strong focus on environmental responsibility, achieving significant economic, social, and environmental benefits through its new technology[135]. - The company actively promotes the recycling of foundry waste sand, contributing to resource conservation and reducing transportation costs[140]. Employee Management - The total number of employees at the end of the reporting period was 874, with 571 in production, 40 in sales, 63 in technical roles, and 34 in finance[119]. - The company has implemented a diversified compensation system to enhance employee motivation and align with performance contributions[121]. - The company conducted various training programs to improve management skills and operational capabilities among employees[122].