Financial Performance - The company reported a significant year-on-year increase in operating performance, driven by a recovery in downstream market demand [8]. - The company's operating revenue for 2021 was CNY 1,860,537,490.88, representing a 92.48% increase compared to CNY 966,632,204.49 in 2020 [37]. - The net profit attributable to shareholders for 2021 was CNY 282,895,244.91, a 133.49% increase from CNY 121,160,648.66 in 2020 [37]. - The net profit after deducting non-recurring gains and losses reached CNY 296,397,494.18, marking a 235.00% increase from CNY 88,477,107.61 in 2020 [37]. - The net cash flow from operating activities was CNY 399,155,160.28, up 38.78% from CNY 287,627,534.08 in 2020 [37]. - The total assets at the end of 2021 amounted to CNY 7,616,661,050.64, a 33.12% increase from CNY 5,721,471,617.88 at the end of 2020 [37]. - The net assets attributable to shareholders increased by 44.52% to CNY 4,266,760,577.56 at the end of 2021 from CNY 2,952,278,865.15 at the end of 2020 [37]. - The basic earnings per share for 2021 was CNY 0.39, a 44.44% increase from CNY 0.27 in 2020 [37]. - The weighted average return on equity for 2021 was 8.42%, up from 4.32% in 2020 [37]. - The total profit reached 291 million CNY, an increase of 108.38% compared to the previous year [83]. Market Position and Strategy - The company is focusing on expanding its mid-to-high-end market presence to mitigate risks associated with intensified competition in the low-end market [5]. - Major clients include well-known lithium-ion battery manufacturers such as LG Chem, CATL, BYD, and Samsung SDI, indicating a high customer concentration risk [7]. - The company is actively developing new products and technologies, including other functional membranes, to diversify its product offerings and enhance profitability [12]. - The company is committed to maintaining its competitive edge through continuous R&D and strategic partnerships with leading battery manufacturers [16]. - The company is focusing on high-end separator products, which are currently in short supply, to enhance its market share [51]. - The company is actively expanding its production capacity and increasing efforts to penetrate overseas markets [51]. - The company has established long-term partnerships with leading lithium-ion battery manufacturers such as CATL, BYD, and LG Energy Solution, which is expected to drive significant business opportunities as the demand for lithium-ion battery separators increases [149]. Research and Development - The company employs a project-based R&D model, focusing on market needs and technological advancements to develop new products [59]. - The company has applied for a total of 399 patents, including 52 international patents, and has been granted 199 patents, with 85 being invention patents [72]. - The company has a strong R&D capability, allowing for rapid customization of separator products to meet diverse client needs, thus reducing production costs and enhancing product quality [78]. - The company is investing in research and development at its overseas materials research institute in Japan, focusing on new technologies and materials to create competitive advantages in the functional film industry [150]. - The company plans to invest in R&D for new separator functionalities and explore new commercial applications to reduce the impact of potential policy changes [157]. Production and Capacity Expansion - The company plans to build a project in Nantong, Jiangsu, with an annual production capacity of 2 billion square meters of high-performance lithium-ion battery wet separators and coated separators [51]. - The company has established a project with an annual production capacity of 36 million square meters of lithium-ion battery wet separators, which has commenced bulk supply to customers [84]. - A new "super coating factory" project is underway, expected to achieve an annual production capacity of 40 million square meters for dry separators and 60 million square meters for coated separators [84]. - The company has expanded its dry production capacity by 300 million square meters, alleviating production constraints and increasing market share [107]. - The company is enhancing its production capacity for dry, wet, and coated separators through various projects, including the expansion of its facilities in Jiangsu and the construction of a factory in Europe, aiming to solidify its position as a leading specialized separator manufacturer [149]. Financial Management and Governance - The company has implemented strict accounts receivable management to minimize the risk of bad debts as its business scales [13]. - The company has established a complete financial department with dedicated personnel, ensuring independent financial decision-making [172]. - The company has a robust organizational structure that allows for independent decision-making across its various operational departments [173]. - The company has maintained a stable management team, with key executives holding significant shares, indicating alignment of interests with shareholders [179]. - The company is committed to transparency in its governance, as evidenced by the detailed disclosure of board member shareholdings and changes [180]. Risks and Challenges - The company faces risks from exchange rate fluctuations due to its reliance on imported materials and increasing overseas sales, with a strategy to use strong currencies for settlements [15]. - The company acknowledges the potential impact of changes in industry policies on the electric vehicle sector, which could affect its operations [19]. - The company faces risks related to product price declines and fluctuating gross margins due to increasing competition in the lithium-ion battery separator market [151]. - The company is addressing potential risks from rising raw material costs, particularly for PP and PE, by maintaining strong relationships with suppliers and leveraging its bargaining power [153]. - The company is implementing measures to manage accounts receivable risks, ensuring that its client base consists of reputable manufacturers to minimize bad debt losses [154]. Sustainability and Corporate Responsibility - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 20% over the next five years [184]. - The company has implemented incentive policies and management systems to prevent core technology personnel turnover and protect its R&D achievements [157]. - The company is committed to maintaining a robust governance structure in compliance with relevant laws and regulations [163].

Financial Performance - The company reported a significant year-on-year increase in operating performance, driven by a recovery in downstream market demand [8]. - The company's operating revenue for 2021 was CNY 1,860,537,490.88, representing a 92.48% increase compared to CNY 966,632,204.49 in 2020 [37]. - The net profit attributable to shareholders for 2021 was CNY 282,895,244.91, a 133.49% increase from CNY 121,160,648.66 in 2020 [37]. - The net profit after deducting non-recurring gains and losses was CNY 296,397,494.18, which is a 235.00% increase from CNY 88,477,107.61 in 2020 [37]. - The total assets at the end of 2021 were CNY 7,616,661,050.64, a 33.12% increase from CNY 5,721,471,617.88 at the end of 2020 [37]. - The net assets attributable to shareholders at the end of 2021 were CNY 4,266,760,577.56, reflecting a 44.52% increase from CNY 2,952,278,865.15 at the end of 2020 [37]. - The basic earnings per share for 2021 was CNY 0.39, an increase of 44.44% compared to CNY 0.27 in 2020 [37]. - The diluted earnings per share for 2021 was also CNY 0.39, marking a 44.44% increase from CNY 0.27 in 2020 [37]. - The weighted average return on equity for 2021 was 8.42%, up from 4.32% in 2020 [37]. - The total profit reached 291 million yuan, reflecting a growth of 108.38% compared to the previous year [83]. Market Position and Strategy - The company is focusing on expanding its mid-to-high-end market presence to mitigate risks associated with intensified competition in the low-end market [5]. - Major clients include renowned battery manufacturers such as LG Chem, CATL, BYD, and Samsung SDI, indicating a high customer concentration risk [7]. - The company is exploring strategic partnerships and potential acquisitions to strengthen its market position and drive growth [30]. - The company is actively expanding its production capacity and increasing efforts to explore overseas markets [51]. - The company is actively pursuing international market expansion, particularly in Europe, to capitalize on the growing demand for lithium-ion battery separators [143]. - The company has established long-term partnerships with major domestic lithium-ion battery manufacturers, including CATL, BYD, and Guoxuan High-Tech, which is expected to drive significant business opportunities as the demand for separators in the lithium-ion battery industry grows [144]. Research and Development - The company is actively developing new products and technologies, including functional membranes, to diversify its product offerings and enhance profitability [12][16]. - The company is focused on R&D for new materials and technologies to enhance battery performance and safety [30]. - The company employs a project-based R&D model, ensuring a structured process from market demand collection to product development [60]. - The company has established a comprehensive engineering technology development industrial chain, enhancing its R&D capabilities and market competitiveness [70]. - The company is committed to continuous innovation in polymer materials and key technologies related to lithium-ion battery separators to ensure its leading position in the industry [145]. - The company is investing 200 million RMB in R&D for new technologies over the next three years [155]. Production and Capacity - The company plans to build a project in Nantong, Jiangsu, with an annual production capacity of 2 billion square meters of high-performance lithium-ion battery wet separators and coated separators [51]. - The company has established a project with an annual production capacity of 36 million square meters of lithium-ion battery wet separators, which has commenced bulk supply to customers [84]. - A new "super coating factory" project is underway, expected to achieve an annual production capacity of 40 million square meters for dry separators and 60 million square meters for coated separators [84]. - The company has successfully scaled up production of separators using dry and wet processes, achieving mass supply to both domestic and international markets [80]. - The company is expanding its production capacity for dry, wet, and coated separators, with ongoing projects in Jiangsu and Europe, which will enhance its ability to meet market demand and strengthen its competitive position [144]. Financial Management and Investments - The profit distribution plan approved by the board is to distribute a cash dividend of 0.50 CNY per 10 shares, totaling approximately 38.42 million CNY based on 768,408,503 shares [21]. - The company plans to increase its capital reserve by converting 5 shares for every 10 shares held, enhancing shareholder value [21]. - The company plans to raise up to 6 billion yuan for the construction of high-performance lithium-ion battery wet separators and coated separators, which will enhance production capacity significantly [87]. - The company has allocated RMB 67,099.83 million of the remaining raised funds to the construction of the "High-Performance Lithium-Ion Battery Wet Separator and Coating Membrane (Phase I and II) Project" in Nantong, Jiangsu Province [127]. - The company issued convertible bonds in 2021, raising a total of RMB 1,000,000,000, with a net amount of RMB 990,976,763.14 after deducting related expenses [126]. Risk Management - The company faces risks from exchange rate fluctuations due to its reliance on imported raw materials and increasing overseas sales [15]. - The company acknowledges the risk of performance decline due to macroeconomic factors, industry policies, and market competition, and is taking steps to address these challenges [8]. - The company is exploring new commercial applications for its membranes to reduce the impact of potential changes in terminal market policies [19]. - The company is committed to maintaining strong relationships with key clients to enhance market competitiveness and reduce the risk of performance decline [9]. - The company has implemented measures to prevent core technology leakage and retain key technical personnel through incentive policies and confidentiality agreements [18]. Corporate Governance and Social Responsibility - The report outlines the governance structure and compliance with regulatory requirements, reinforcing investor confidence [24]. - The company is committed to environmental and social responsibility, aligning with global sustainability trends [25]. - The company has a robust R&D team and advanced project management mechanisms, enabling it to quickly meet customized product demands from clients [78]. - The company has been awarded multiple national and provincial honors, including the "China Patent Excellence Award" and "Guangdong Province Quality Award," reflecting its strong innovation and quality standards [79]. Employee and Management - The total number of employees at the end of the reporting period is 1,824, with 517 in the parent company and 1,307 in major subsidiaries [198]. - The company implements a performance-based compensation system to encourage employees to create greater economic benefits [199]. - The training program includes a multi-level talent development model and various training initiatives such as online and offline learning [200]. - The management team is continuously optimized through internal training and external recruitment to enhance decision-making efficiency and operational capabilities [82].