Financial Performance - In 2022, the company achieved operating revenue of CNY 8,156,990,683.92, a year-on-year increase of 7.60%[12]. - The net profit attributable to shareholders decreased by 20.57% to CNY 866,248,424.51 due to factors such as equipment upgrades and macroeconomic conditions[12][13]. - The company's cash flow from operating activities increased by 3.73% to CNY 1,315,537,039.02[13]. - Total assets at the end of 2022 were CNY 14,054,269,199.30, reflecting a 16.23% increase from the previous year[13]. - The total operating revenue for 2022 was approximately ¥8.16 billion, representing a year-on-year increase of 7.60% from ¥7.58 billion in 2021[49]. - The company's gross profit margin for advanced polymer materials was 29.76%, a decrease of 4.66% compared to the previous year[52]. - The company reported a significant increase in overseas revenue by 124.10% to approximately ¥52 million[50]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2022, representing a year-over-year growth of 20%[117]. - The company reported a total revenue of 1,791.07 million yuan for the year 2022, representing a 7.90% increase in procurement transactions[197]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 2.00 CNY per 10 shares to all shareholders, based on a total of 1,335,568,000 shares[2]. - The company distributed a cash dividend of 2.00 yuan per 10 shares, totaling 267,113,600.00 yuan, which represents 100% of the total profit distribution[147][148]. Business Operations and Stability - The company has not reported any changes in its main business since its listing, indicating stability in its operations[9]. - The company has not reported any changes in its controlling shareholders since its establishment, indicating stable ownership[9]. - The company has engaged Xinyong Zhonghe Accounting Firm for auditing services during the reporting period[10]. - The company has a registered address in Tengzhou, Shandong Province, which is also its operational base[6]. - The company operates several wholly-owned subsidiaries, including Levima Chemical and Levima Technology, enhancing its market presence[5]. Research and Development - The company has a total of 217 authorized patents, showcasing its strong R&D capabilities[29]. - The company completed 11 new products/new processes in laboratory R&D, developed 10 new production processes, and industrialized 12 new products in 2022[39]. - The company is currently developing a new high VA content EVA product, which is expected to enhance its market share in specialized EVA materials[63]. - The company is investing approximately 12.5 billion yuan in a new integrated project for new energy materials and biodegradable materials, expected to have a capacity of 200,000 tons/year[43]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing production efficiency and sustainability[117]. Market Trends and Growth Potential - The company plans to expand in the advanced polymer materials sector, which is experiencing rapid growth driven by national policies and market demand[20]. - The demand for lithium battery electrolyte additives, particularly VC, is projected to exceed 75,000 tons by 2025, with an annual compound growth rate of over 40%[26]. - By 2025, the total production capacity of biodegradable plastics in China is expected to exceed 6.5 million tons, indicating significant future growth potential[22]. - The global market for biodegradable plastics is rapidly expanding, with China's production capacity accounting for about 60% of the world's total[22]. Environmental Responsibility - The company has been recognized as a national "green factory," maintaining a pollutant discharge compliance rate of 100% since production began[101]. - The company strictly adheres to various environmental protection laws and regulations, ensuring compliance in its daily operations[157]. - The company achieved a 100% compliance rate for all pollution monitoring and self-monitoring during the reporting period[161]. - The company has implemented various measures to promote green production, including upgrading equipment and improving processes[164]. Strategic Initiatives and Future Plans - The company aims to enhance its supply chain efficiency, targeting a reduction in operational costs by 15% over the next fiscal year[117]. - The company plans to enhance its online sales channels, aiming for a 50% increase in e-commerce revenue by the end of 2023[176]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for potential mergers and acquisitions[117]. - The company plans to enter the European market in 2023, targeting a revenue contribution of 15% from this region[127]. Governance and Management - The company maintains a high level of governance with regular shareholder meetings and decision-making processes[108]. - The company has established an independent financial accounting department and a financial management system[107]. - The company has a transparent performance evaluation and incentive mechanism linking executive compensation to company and individual performance[105]. - The company has implemented cash management for idle raised funds, with a total amount not exceeding RMB 50,000 million for a period not exceeding 12 months[90]. Social Responsibility - The company actively participated in social responsibility initiatives, including donations to local charities and support for disadvantaged children[170]. - The company donated 2 million yuan to Changzhou University to establish the "Lianhong Scholarship" to support students[169]. - The company conducted over 4,000 safety morning meetings and provided safety training for 5,308 employees during the reporting period[168].

Industry Overview - The EVA industry in China has entered a rapid development phase since 2010, with apparent consumption of EVA in 2020 reaching approximately 1.8 million tons [3] - Photovoltaic materials account for about 35% of total EVA demand, with consumption of EVA photovoltaic materials around 600,000 tons in 2020 [3] - Domestic EVA production capacity was approximately 990,000 tons in 2019, with a production volume of about 740,000 tons [3] - The import dependency for EVA is around 60%, indicating a significant reliance on foreign supply [3] Company Positioning - The company utilizes ExxonMobil's advanced kettle method for EVA production, focusing on high-value-added products with a VA content of 28% or higher [4] - The company has developed photovoltaic film material FL02528, breaking foreign monopolies and establishing stable partnerships with major photovoltaic film enterprises [4] - The company's EVA production capacity exceeds 120,000 tons per year, with plans to increase capacity by at least 18,000 tons annually after the completion of an upgrade project in 2022 [4] Competitive Advantages - Leading process technology with five production facilities employing world-class techniques [5] - Unique industrial layout and product structure, closely aligned with end-market demands [5] - Strong operational management capabilities, with a team experienced in renowned chemical and new materials companies [5] - Robust R&D innovation capacity, with a high-level team primarily from prestigious research institutions [5] - Comprehensive location advantages, with a solid chemical industry foundation and complete supporting facilities [5] - Established brand reputation and recognition within the industry [5] R&D and Talent Development - The company employs a combination of independent and collaborative R&D, with a team of over 50 specialized researchers, including 8 postdoctoral and over 20 master's degree holders [6] - The company has developed a research system covering catalyst development, synthesis process development, and application system development [6] - Continuous efforts in talent cultivation and recruitment, enhancing the company's ability to attract high-end talent post-IPO [7] Governance and Strategic Management - The company maintains a robust governance structure, emphasizing the importance of strategic development and operational flexibility [7] - There is an ongoing discussion regarding the potential increase of operational management representation on the board of directors [7]

Financial Performance - The company's operating revenue for 2021 was CNY 7,580,762,837.68, representing a 27.81% increase compared to the previous year[13]. - The net profit attributable to shareholders for 2021 was CNY 1,090,569,755.94, reflecting a 70.24% increase year-over-year[13]. - The net profit after deducting non-recurring gains and losses was CNY 880,864,809.28, which is a 43.04% increase from the previous year[13]. - The basic earnings per share for 2021 was CNY 0.82, up 46.43% from CNY 0.56 in 2020[14]. - The total assets at the end of 2021 were CNY 12,091,653,972.22, a 23.90% increase from the end of 2020[14]. - The company received government subsidies amounting to CNY 183,081,917.57 in 2021, significantly higher than CNY 29,856,427.46 in 2020[18]. - The company reported a net cash flow from operating activities of CNY 1,268,213,737.60, which is a 13.11% increase compared to the previous year[13]. - The total operating cost for 2021 was CNY 2,863,768,749.90, representing a 30.96% increase compared to CNY 2,186,781,528.74 in 2020[57]. Dividend Distribution - The company plans to distribute a cash dividend of 2.00 CNY per 10 shares to all shareholders, based on a total of 1,335,568,000 shares[2]. - The company plans to distribute a cash dividend of ¥267,113,600.00, which is 100% of the total distributable profit of ¥1,765,463,036.61[146]. - Each shareholder will receive a cash dividend of ¥2.00 per 10 shares, with a total share capital of 1,335,568,000 shares[147]. Business Operations - The company has not reported any changes in its main business since its listing[10]. - The company has no changes in its controlling shareholders[10]. - The registered address of the company is located in Tengzhou, Shandong Province, with a postal code of 277500[7]. - The company has established several wholly-owned subsidiaries, including Levima Chemical Sales Co., Ltd. and Levima Research Institute[5]. - The company has achieved record-high operating performance, with its main products, including EVA photovoltaic adhesive film and special surfactants, leading in their respective market segments[25]. - The company has a complete analysis and characterization system for lactic acid and polylactic acid production, with capabilities for microbial fermentation process development[40]. Research and Development - The company has accumulated 146 patents and is in the process of applying for 84 additional patents, showcasing its strong focus on innovation[25]. - R&D investment totaled 27,278.43 million yuan, accounting for 3.60% of operating revenue[35]. - The company developed 20 new products/new processes in the reporting period, with 18 new products reaching production stage[35]. - The company has a strong focus on R&D, with all core technical personnel being company employees, ensuring knowledge retention and innovation[39]. - The company plans to develop 21 new products across 4 series in 2022 and file over 12 new national invention patents[99]. Market Trends and Projections - The advanced polymer materials industry is experiencing rapid growth, with a self-sufficiency rate of 61% as of the end of the 13th Five-Year Plan, indicating significant progress but still facing gaps in high-end products[19]. - The lithium battery materials market is projected to grow significantly, with domestic sales of new energy vehicles exceeding 3.5 million units in 2021, a year-on-year increase of nearly 160%[22]. - The company is strategically focusing on high-end new materials, including renewable energy materials and biodegradable materials, to address market needs and enhance its product offerings[25]. - The company plans to invest in new energy materials and biodegradable materials during the 14th Five-Year Plan, focusing on areas such as EVA photovoltaic film materials and PLA[95]. Environmental Responsibility - The company has maintained a 100% compliance rate for pollutant emissions since its inception as a national-level "green factory"[100]. - The company has implemented pollution prevention facilities, with all emissions reported below the regulatory limits[159]. - The company completed the DMTO unit's flue gas treatment control system upgrade, which is expected to save approximately 21,000 tons of standard coal annually[163]. - The company has been recognized as a national-level "green factory," emphasizing its commitment to sustainable development and environmental responsibility[165]. Governance and Compliance - The company has established independent operations in business, personnel, assets, institutions, and finance, ensuring no interference from the controlling shareholder[105]. - The company ensures equal information access for all investors through strict adherence to disclosure regulations[104]. - The company has a commitment to maintaining high standards of corporate governance, with independent directors overseeing operations[117]. - The internal control system was audited, and no significant deficiencies were found, with a standard unqualified opinion issued by the auditing firm[152]. Strategic Initiatives - The company is actively pursuing mergers and acquisitions to bolster its competitive position[124]. - The company plans to enhance its core competitiveness by expanding its product categories in biodegradable materials and special functional materials through various strategies including R&D and mergers[98]. - The company is focusing on high-value-added products, aiming to increase the proportion of EVA photovoltaic film materials and high-end transparent special materials[98]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for this purpose[122]. Employee Engagement and Welfare - The company has implemented various employee training programs to enhance staff competencies and skills[142]. - The company emphasizes a harmonious labor relationship, providing diverse welfare systems including health check-ups and talent development channels[166]. - The company has established a dual accident prevention system focusing on risk control and hidden danger investigation, improving overall safety governance[167]. - The company actively promotes social responsibility among employees, encouraging participation in charitable activities for underprivileged children and families[169].

Dividend and Profit Distribution - The company plans to distribute a cash dividend of 2 CNY per 10 shares to all shareholders, based on a total share capital of 1,027,360,000 shares [2]. - The company achieved a net profit attributable to shareholders of 640,608,573.40 yuan for 2020, with a profit distribution plan proposing a cash dividend of 2 yuan per 10 shares [103]. - The cash dividend total for 2020 is 205,472,000 yuan, representing 32.07% of the net profit attributable to shareholders [101]. - The company’s total distributable profit after legal surplus reserves is 1,087,119,609.97 yuan, ensuring sufficient funds for the proposed dividend [102]. Financial Performance - The company's operating revenue for 2020 was ¥5,931,360,208.63, representing a 4.53% increase compared to ¥5,674,492,427.06 in 2019 [13]. - The net profit attributable to shareholders for 2020 was ¥640,608,573.40, a 20.46% increase from ¥531,815,703.61 in 2019 [13]. - The net profit after deducting non-recurring gains and losses was ¥615,796,022.86, up 20.26% from ¥512,033,048.27 in 2019 [13]. - The total assets at the end of 2020 were ¥9,545,248,033.96, a 20.77% increase from ¥7,903,474,641.85 at the end of 2019 [14]. - The net assets attributable to shareholders increased by 70.78% to ¥5,447,076,606.27 from ¥3,189,579,238.33 at the end of 2019 [14]. - The company reported a basic earnings per share of ¥0.73 for 2020, up 21.67% from ¥0.60 in 2019 [13]. - The company's total assets at the end of the reporting period were CNY 954,524.80 million, with net assets attributable to shareholders of CNY 544,707.66 million, resulting in a debt-to-asset ratio of 41.93% [43]. Operational Efficiency and Production - The company maintained a leading operational efficiency, with key consumption indicators remaining at the forefront of the industry [38]. - EVA product output reached 131,300 tons with a capacity utilization rate of 108.49%, while PP production achieved 247,100 tons with a utilization rate of 104.81%, both showing a year-on-year increase of 3.61% [43]. - The company's production facilities achieved industry-leading economic and technical indicators, with methanol consumption per ton of olefin maintained at 2.757 tons [43]. - The company completed the OCC project in Q4 2020, resulting in a 10% reduction in methanol consumption compared to pre-production levels, significantly lowering production costs [96]. Research and Development - The company invested CNY 16,333.46 million in R&D, accounting for 2.75% of operating revenue, and filed 27 patent applications during the year [45]. - The company has applied for and obtained a total of 28 invention patents and 24 utility model patents, with 50 patents currently under application [24]. - Research and development expenses increased by 546.14% to ¥163,334,592.03 in 2020, compared to ¥25,278,326.28 in 2019 [67]. - The number of R&D personnel rose by 62.58% to 252, making up 24.11% of the total workforce [67]. - The company is focusing on high-end, differentiated, and refined new materials, with plans to develop biodegradable materials, new energy materials, and electronic chemical materials [90]. Market Presence and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years [178]. - The company plans to enter the European market in 2022, with an initial investment of 50 million [189]. - The company aims to improve operational efficiency by 15% through digital transformation initiatives [178]. - The company is exploring potential acquisitions to strengthen its supply chain, with a budget of 500 million yuan allocated for this purpose [178]. Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, which are subject to various uncertainties [2]. - The company recognizes risks from macroeconomic uncertainties, industry competition, raw material price fluctuations, and stringent environmental regulations, and is implementing strategies to mitigate these risks [94][95]. - The company reported no non-operating fund occupation by controlling shareholders or their affiliates during the reporting period [128]. - The company will comply with any new rules or requirements from the regulatory authority regarding stock reduction [114]. Corporate Governance and Shareholding - The controlling shareholder, 联泓集团, has pledged to hold its shares for three years from the date of listing, which is December 8, 2020 [107]. - The company has established a lock-up period of 12 months for certain shareholders, during which they cannot transfer their shares [108]. - The company does not have a single actual controller due to the balanced distribution of shares among major shareholders [168]. - The company has made a commitment to strictly follow the regulations set by the China Securities Regulatory Commission and the stock exchange regarding shareholding and reduction [113]. Community Engagement and Sustainability - The company donated over 1.2 million yuan for pandemic prevention efforts, including contributions to local charities and providing masks to overseas partners [146]. - The company achieved a zero-accident safety goal during the reporting period, enhancing safety management through comprehensive training and risk control measures [145]. - The board of directors emphasized the importance of sustainability in future strategies, aiming for a 25% reduction in carbon emissions by 2025 [178]. - The company has not exceeded any pollution discharge standards, with specific emissions such as COD at 106.33 mg/L, well below the 500 mg/L limit [150].