SQM(688138)2022-06-15 16:00Financial Performance - The company's operating revenue for 2021 was RMB 543,912,423.04, representing an increase of 11.64% compared to RMB 487,192,557.45 in 2020[20]. - The net profit attributable to shareholders of the listed company decreased by 41.64% to RMB 44,525,813.82 from RMB 76,290,284.24 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 32,665,126.64, down 51.00% from RMB 66,668,779.52 in 2020[20]. - The net cash flow from operating activities was RMB 194,179,867.59, an increase of 3.86% compared to RMB 186,964,489.27 in 2020[20]. - The total assets at the end of 2021 were RMB 1,523,487,024.84, reflecting a growth of 6.91% from RMB 1,425,066,322.85 at the end of 2020[20]. - The net assets attributable to shareholders of the listed company increased by 1.74% to RMB 1,198,751,500.49 from RMB 1,178,237,686.67 in 2020[20]. - Basic earnings per share decreased by 41.38% to CNY 0.17 in 2021 compared to CNY 0.29 in 2020[21]. - The gross profit margin for the quartz mask segment was 21.86%, with revenue of 441.84 million yuan, which decreased by 14.27% compared to the previous year[130]. - The company reported a net profit margin of 12%, up from 10% in the previous year[173]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.6 per 10 shares, totaling RMB 16,008,000.00, which represents 35.95% of the net profit attributable to shareholders[5]. - The company emphasizes cash dividends as a primary method of profit distribution, prioritizing investor returns[200]. - The company maintains a policy of continuous and stable profit distribution, considering the long-term interests of all shareholders[200]. Research and Development - The company is focusing on the development of new technologies such as MicroLED and IGZO for future product enhancements[12]. - The company's R&D expenditure as a percentage of operating income increased by 1.80 percentage points to 6.77%[22]. - The company has applied for 5 national invention patents and 20 utility model patents during the reporting period, indicating a strong focus on innovation[40]. - The company achieved 16 major R&D results in 2021, which have been applied in mask production, enhancing the technical capabilities for 6th generation high-precision AMOLED/LTPS and 8.6 generation high-precision masks[98]. - The total R&D investment for the year 2021 reached 36.84 million yuan, representing a year-on-year growth of 52.24%[96]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency[173]. - The company is investing in R&D, with a budget increase of 25% to enhance technology development and innovation[174]. Market Position and Strategy - The company is positioned to benefit from the domestic substitution and growth opportunities in the semiconductor chip industry, aiming to expand its market share among key clients[33]. - The company plans to expand its market presence and explore potential mergers and acquisitions to enhance growth opportunities[12]. - The company aims to increase its market share in the domestic mid-to-high-end mask plate market, which currently lags behind international competitors[114]. - The company is focused on achieving the first market share in domestic flat panel display mask plates and aims for a global ranking of third in the same category within five years[159]. - The company is actively expanding its market presence through both self-initiated and agent-based strategies, leveraging industry events and customer referrals[47]. - The company is committed to driving domestic high-end manufacturing of mask plates, enhancing service quality through localized support[110]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has not experienced any inability of the majority of directors to ensure the authenticity, accuracy, and completeness of the annual report[7]. - The company has established a remuneration management system for its directors and senior management, which includes fixed salaries and floating allowances[182]. - The company is committed to enhancing corporate governance and has initiated a self-examination and rectification plan[185]. - The company emphasizes its commitment to compliance with the Shanghai Stock Exchange's regulations and guidelines throughout its operations[191]. Risks and Challenges - The company faces risks related to production capacity ramp-up after expansion, which may temporarily impact operational performance[115]. - The company relies heavily on imported raw materials and equipment, creating risks associated with supply shortages and price fluctuations[116]. - The company is exposed to risks from concentrated major customers, where adverse changes in their operations could negatively affect business performance[117]. - The company operates in a capital-intensive industry, which poses risks related to high fixed costs and potential overcapacity if demand decreases significantly[118]. - The company is at risk of market competition intensifying as the demand for mask plates increases with the growth of the flat panel display and semiconductor industries[119]. Employee and Management - The company employs a total of 459 staff members, with 338 in the parent company and 121 in major subsidiaries[196]. - The workforce includes 277 production personnel, 41 sales personnel, and 83 technical personnel[196]. - The number of R&D personnel increased to 83, representing 18.08% of the total workforce, up from 76 and 19.24% in the previous period[106]. - Total R&D personnel compensation rose to ¥1,710.47 million, a 25% increase from ¥1,367.80 million in the prior period[106]. - The company has established a training program to enhance employee skills and management capabilities through internal and external resources[199]. Acquisitions and Partnerships - The company completed a strategic acquisition for 200 million, enhancing its capabilities in the semiconductor sector[173]. - A new strategic partnership has been established with a leading tech firm to co-develop advanced technologies, expected to enhance competitive advantage[174]. - The company is exploring acquisition opportunities to strengthen its product portfolio, targeting companies with a combined revenue of 1.3 billion and $1.4 billion, representing a growth of 10% to 15%[173]. - The company provided a future outlook projecting a revenue growth of 20% for the next fiscal year, driven by new product launches[176]. - The company plans to enter two new international markets in the upcoming year, targeting a 15% increase in global sales[178].