Financial Performance - The Group's revenue increased by 57.74%, gross profit margin rose by 10 percentage points, and net profit surged by 197.01% in 2021[7]. - For the year ended 31 December 2021, the Group recorded revenue of approximately RMB15,843,947,000, representing an increase of 57.74% compared to RMB10,044,313,000 in the previous year[21]. - Gross profit margin increased to 32.93% (2020: 22.35%) and operating results margin was 23.01% (2020: 11.04%) during the review year[21]. - The Group recorded profit before taxation of approximately RMB3,244,209,000 (2020: RMB1,016,621,000) and net profit of approximately RMB2,681,545,000 (2020: RMB902,856,000)[21]. - Basic earnings per share was RMB0.98 (2020: RMB0.37) with a recommended final dividend of HK$0.34 per share[21]. Research and Development - R&D expenses amounted to approximately RMB 838,893,000, representing a year-on-year increase of 42.07%, accounting for 5.29% of revenue[10]. - The Group launched 92 new products during the year, including high-end environmentally friendly dispersion resins and high-performance polyvinylidene fluoride resins for lithium-ion batteries[12]. - The Group submitted 93 patent applications and was granted approval for 70 patents, with over 460 valid patents currently held[12]. - The Group had a total of 573 R&D staff dedicated to innovation and technological advancement[12]. Market Demand and Product Segments - The domestic new energy industry demand significantly boosted the market for battery-grade PVDF, establishing the Group as a key supplier[11]. - The demand for PVDF surged by 176.04%, significantly contributing to the Group's revenue growth[27]. - The Group's fluoropolymers segment generated revenue of RMB4,825,266,000 with an operating profit margin of 27.88%[24]. - The organic silicon segment achieved revenue of RMB4,184,131,000 with an operating profit margin of 30.30%[24]. - Revenue from the refrigerants segment was RMB3,337,155,000 with an operating profit margin of 17.41%[24]. Capital Expenditure and Production Capacity - Capital expenditure for the year reached approximately RMB 4,803,248,000, representing an increase of 152.74% from approximately RMB 1,900,497,000 in 2020[13]. - The new 10,000 tons/year PVDF project is expected to be completed and put into operation in October 2022, with total PVDF production capacity projected to reach 25,000 tons/year[15]. - By 2025, the total production capacity of PVDF is planned to reach 55,000 tons/year, and the total production capacity of raw material R142b will reach 100,000 tons/year[15]. - Dongyue Organosilicon's 300,000 tons/year organic silicon monomer and 200,000 tons/year organic silicon downstream deep-processing projects began trial production at the end of 2021, with production capacity expected to more than double[15]. Corporate Governance - The Company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2021, except for a deviation regarding the roles of chairman and CEO[114]. - The Company has established various committees, including a Remuneration Committee, Audit Committee, Nomination Committee, Corporate Governance Committee, and Risk Management Committee, to enhance governance[137]. - The Board believes that the placing will broaden the shareholder base and finance the planned rapid development and expansion of the Group's business and production capacity, which is in the interests of the Company and its shareholders[69]. - The Company emphasizes the importance of maintaining high standards of corporate governance as a key responsibility of the Directors[127]. Shareholder Information - The company reported a final dividend of HKD 0.34 per share for the year ended December 31, 2021, compared to HKD 0.14 in 2020, subject to shareholder approval[56]. - The Group's distributable reserves as of December 31, 2021, amounted to RMB4,567,139,000, with HK$766,254,000 (approximately RMB628,747,000) proposed as the Final Dividend[61]. - The Company placed 145,000,000 new shares and repurchased 1,499,000 ordinary shares, resulting in a total of 2,255,190,455 issued shares as of December 31, 2021[36]. Risk Management - The Company acknowledges its obligations under the Securities and Futures Ordinance and the Listing Rules, ensuring immediate publication of inside information when aware[161]. - The Company will continue to improve and monitor the effectiveness of its risk management and internal control systems[161]. - The Risk Management Committee's discussions included internal control measures and policies, which were reviewed before recommending them to the Board for approval[158]. - The Company has developed risk management manuals to clarify responsibilities in risk management among management, the Board, and committees[160]. Environmental, Social, and Governance (ESG) - The ESG report covers the period from January 1, 2021, to December 31, 2021, with some content extending beyond this timeframe[179]. - The report is prepared in accordance with the Environmental, Social and Governance Reporting Guide of the Hong Kong Stock Exchange[182]. - The company emphasizes stakeholder engagement as a crucial channel for sustainable development, collecting and analyzing stakeholder feedback for continuous improvement[192]. - The focus on environmental compliance includes emission compliance and energy conservation efforts[199].
东岳集团(00189) - 2021 - 年度财报