Red Avenue New Materials(SH:603650)2023-04-11 16:00Financial Performance - The company's operating revenue for 2022 was approximately RMB 2.5 billion, representing a year-on-year increase of 7.74% compared to RMB 2.32 billion in 2021[23]. - The net profit attributable to shareholders of the listed company decreased by 8.71% to approximately RMB 298 million in 2022 from RMB 327 million in 2021[23]. - The net profit after deducting non-recurring gains and losses was approximately RMB 212 million, down 14.15% from RMB 247 million in the previous year[24]. - Cash flow from operating activities decreased significantly by 70.19% to approximately RMB 103 million in 2022, compared to RMB 345 million in 2021[24]. - Basic earnings per share decreased by 9.09% to CNY 0.5 in 2022 compared to CNY 0.55 in 2021[25]. - The weighted average return on equity decreased by 2.58 percentage points to 10.26% in 2022 from 12.84% in 2021[25]. - The company achieved operating revenue of CNY 250,005.18 million in 2022, an increase of 7.74% year-on-year[63]. - Net profit attributable to shareholders decreased by 8.71% year-on-year to CNY 29,815.15 million[63]. Dividend Policy - The company plans to distribute a cash dividend of 0.8 CNY per 10 shares, totaling approximately 47.69 million CNY, representing a cash dividend payout ratio of 16.00%[5]. - The company's cash dividend policy aims for a minimum distribution of 15% of the available profit, contingent on profitability and cash flow sufficiency[195]. - The company declared a cash dividend of 0.9 yuan per 10 shares, totaling 53,650,766.25 yuan, which represents 16.43% of the net profit attributable to ordinary shareholders in the consolidated financial statements[198]. Audit and Compliance - The company has received a standard unqualified audit report from Ernst & Young Hua Ming[4]. - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[4]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company adheres to strict information disclosure regulations, ensuring timely and accurate communication with investors, thereby enhancing transparency[157]. Risk Management - The company has outlined potential risks in its future development discussions[7]. - The company emphasizes the importance of investor awareness regarding investment risks related to forward-looking statements[6]. - The company faces risks related to fluctuations in raw material prices, which could impact production costs and operational stability[149]. - The company faces significant foreign exchange risk due to sales and procurement in foreign currencies, which can impact operating performance if the RMB exchange rate fluctuates significantly[152]. Research and Development - The company is focusing on the research and development of advanced materials, particularly in the semiconductor sector[15]. - The company has accumulated 550 patent applications, including 389 invention patents, and has received 43 new invention patent authorizations during the reporting period[61]. - The company implemented 27 R&D projects in 2022, with 11 products entering industrial production and sales, including new types of adhesive resins and modified phenolic resins[98]. - The company is actively developing new products, with 23 new product projects planned for future research, focusing on bio-based materials and advanced rubber compounds[101]. Market Expansion and Strategy - The company plans to expand its market presence and invest in new product development to enhance competitiveness[16]. - The company aims to expand its global market share by diversifying its product offerings and enhancing collaboration across the supply chain[55]. - The company is committed to achieving breakthroughs in the domestic semiconductor and display materials industry, aiming for overall localization of key chemical materials[138]. - The company plans to produce 10,000 tons of display photoresist and 1,000 tons of semiconductor photoresist in 2023, enhancing its market share in electronic materials[142]. Organizational Structure and Governance - The company held 1 annual general meeting and 3 extraordinary general meetings during the reporting period, ensuring transparency and fairness in decision-making processes[154]. - The board of directors consists of 9 members, including 3 independent directors, and held 8 meetings during the reporting period, ensuring compliance and diligence in governance[155]. - The company has established specialized committees under the board, including audit, nomination, compensation and assessment, and strategy committees[181]. - The leadership changes are expected to strengthen the company's operational capabilities and market positioning[171]. Employee and Management - The total number of employees across the parent company and major subsidiaries is 1,118, with 441 in production, 149 in sales, and 264 in technical roles[190]. - The company has established a welfare system that complies with market requirements and actively provides social insurance and supplementary medical insurance for employees[192]. - The company has implemented a training plan to enhance employee competency in line with strategic goals, promoting efficient management system operations[193]. - The total pre-tax compensation for directors, supervisors, and senior management during the reporting period amounted to 2,102.12 million CNY[167].