Red Avenue New Materials(SH:603650)2022-04-14 16:00Financial Performance - The company's operating revenue for 2021 was approximately RMB 2.31 billion, representing a year-over-year increase of 12.83% compared to RMB 2.05 billion in 2020[18]. - The net profit attributable to shareholders for 2021 was approximately RMB 326.58 million, a decrease of 20.44% from RMB 410.49 million in 2020[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 246.90 million, down 33.13% from RMB 369.25 million in 2020[18]. - The net cash flow from operating activities increased by 66.56% to approximately RMB 344.72 million, compared to RMB 206.97 million in 2020[18]. - The total assets at the end of 2021 were approximately RMB 5.98 billion, reflecting a 30.50% increase from RMB 4.58 billion at the end of 2020[18]. - The company's net assets attributable to shareholders increased by 13.74% to approximately RMB 2.78 billion, compared to RMB 2.45 billion at the end of 2020[18]. - The basic earnings per share for 2021 were RMB 0.55, a decrease of 21.43% from RMB 0.70 in 2020[19]. - The weighted average return on equity for 2021 was 12.84%, down 4.64 percentage points from 17.48% in 2020[19]. - The company achieved operating revenue of 2,308.36 million in 2021, representing a year-on-year growth of 12.83%[26]. - The net profit attributable to shareholders was RMB 326.58 million, a decrease of 20.44% compared to the previous year[26]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 0.9 yuan per 10 shares, totaling approximately 53.74 million yuan, which represents a cash dividend payout ratio of 16.46%[4]. - The company has retained undistributed profits for future allocation[4]. - The company has not proposed any capital reserve transfer to increase share capital for the year[4]. - The company has a cash dividend policy that mandates at least 15% of the distributable profits to be allocated as cash dividends, provided certain conditions are met[135]. Audit and Governance - The company has received a standard unqualified audit report from Ernst & Young Hua Ming[3]. - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report[2]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. - There are no violations of decision-making procedures regarding external guarantees[5]. - The company has not experienced any inability of the majority of directors to ensure the authenticity of the annual report[5]. - The company maintains independence from its controlling shareholder, ensuring autonomous operations and decision-making processes[98]. - The company strictly adheres to information disclosure regulations, ensuring accurate and timely information for all investors[99]. - The company has established a comprehensive information disclosure management system to enhance transparency and protect investor rights[99]. Research and Development - The company has significantly increased its investment in R&D to enhance product development and quality, aiming for international competitiveness[54]. - The company launched 33 R&D projects in 2021, focusing on enhancing existing product quality and developing new functional materials for rubber tire production[58]. - The company plans to continue expanding its R&D efforts in electronic materials and biodegradable materials[36]. - The number of R&D personnel was 228, making up 24% of the total workforce[45]. - The company has developed multiple product applications based on PBAT, including shopping bags, agricultural films, and fresh-keeping films, and has established three development platforms for biodegradable materials[32]. Market and Industry Trends - The global semiconductor market sales are projected to reach $553 billion in 2021, a year-on-year increase of 25.6%[28]. - The global photoresist market size reached $2.471 billion in 2021, growing by 19.49% year-on-year, with the Chinese mainland market growing by 43.69% to $493 million[28]. - The demand for biodegradable plastics is expected to grow significantly, with the global compostable and biodegradable garbage bag market projected to reach $467 million by 2028[29]. - The company is actively expanding its market share in the automotive rubber sector, focusing on bio-based materials for new energy vehicle tires[26]. - The company aims to address the high-end material supply issue and become a leading Chinese photoresist brand in the international market[28]. Environmental and Social Responsibility - The company has actively adhered to environmental protection laws and regulations, with no significant environmental pollution incidents reported during the period[142]. - The company has established a comprehensive emergency response system to handle potential environmental incidents[142]. - The company is committed to environmental production and the development of eco-friendly products, with a core value of social responsibility[34]. - The company has implemented new pollution control facilities, including a thermal oxidation system for process waste gas and wastewater treatment stations, which are now operational[145]. - The company published its 2021 Sustainable Development Report, available on the Shanghai Stock Exchange website[155]. Management and Organizational Changes - The company has undergone significant management changes, with multiple key positions filled by new appointees in 2021[106]. - The company appointed Yu Yaoming as the new Vice President and Chief Financial Officer on May 6, 2021, following the resignation of Ding Yongtao[105]. - The company reported a significant management change with the appointment of Ding Lin as President on November 1, 2021[110]. - The company emphasizes the importance of performance in determining year-end bonuses for senior management[114]. - The company has a structured compensation decision process for directors and senior management, which is approved by the board and shareholders[114]. Risks and Challenges - The company experienced a significant increase in raw material prices and freight costs, impacting profitability[19]. - The company faces risks from raw material price volatility, particularly for phenolic resin, which relies on petrochemical industry inputs[96]. - Environmental regulatory changes pose risks to the company's operations, as compliance with various environmental laws is mandatory[96]. - The company has implemented measures to mitigate foreign exchange risks, as some sales and raw material purchases are settled in foreign currencies[97]. Related Party Transactions - The company has not faced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[182]. - The company will minimize related party transactions and ensure fairness in dealings with the listed company[159]. - The company will not engage in direct or indirect competition with the listed company and will take measures to prevent such competition[160].