Financial Performance - The total revenue for the year 2021 reached RMB 6,949.9 million, an increase of 53.3% compared to RMB 4,534.9 million in 2020[14]. - The profit attributable to shareholders was RMB 277.0 million, representing an 83.7% year-on-year growth from RMB 150.8 million in 2020[14]. - The group reported a gross profit of RMB 790.5 million for 2021, up 47.2% from the previous year, primarily due to increased copper product sales[33]. - Other income decreased to RMB 15.4 million, down RMB 9.6 million from the previous year, mainly due to reduced government subsidies[34]. - Administrative expenses rose to RMB 314.0 million, an increase of RMB 71.8 million from RMB 242.2 million in 2020, attributed to higher R&D and employee costs[37]. - The company reported a significant increase in high-precision copper strip revenue to RMB 6,447.0 million, a 52.4% increase from RMB 4,229.3 million in the previous year[21]. - The copper business generated revenue of RMB 6,939.5 million, driven by an 18.8% increase in copper product sales, totaling 162,158 tons sold[33]. Production and Sales - The group achieved a production and sales volume of 156,000 tons, marking a significant milestone in its development history[10]. - In 2021, the company's copper processing business achieved revenue of RMB 6,939.5 million, an increase of 53.5% year-on-year, with sales volume reaching 162,158 tons, up 18.8% from the previous year[21]. - The company plans to achieve a production and sales target of 200,000 tons in 2022, building on the momentum from 2021[27]. - The company expanded its customer base by acquiring 30 new clients in 2021, with 4 to 5 of these clients identified as having significant potential[22]. - The company’s copper strip consumption in China reached 2.7 million tons in 2021, reflecting a year-on-year growth of 17.0%[17]. - The company’s capacity utilization rate for copper strip processing was 74% in 2021, an increase of 7.6% year-on-year[17]. Market Conditions - The average LME copper price fluctuated between USD 7,700 and USD 10,750 per ton during 2021, with a closing price of USD 9,755 per ton at the end of the year, up 25.81% from the previous year[15]. - The SHFE three-month copper price reached a peak of RMB 78,270 per ton on May 10, 2021, the highest since 2006, and closed at RMB 70,380 per ton at the end of the year, an increase of 21.87% year-on-year[15]. - The group benefited from increased domestic orders due to reduced production in international peers, maintaining a supply-demand imbalance in the copper processing industry[10]. Strategic Initiatives - The company emphasized innovation and cost reduction as key strategies for development in 2021[9]. - The company plans to face external challenges in 2022, including geopolitical tensions and trade frictions, while continuing to pursue its vision of becoming a century-old enterprise and a world-class company[11]. - The company is actively pursuing the construction of new facilities and the introduction of advanced equipment to enhance production capacity[23]. Corporate Governance - The board of directors held a total of five meetings during the year, with all directors attending all meetings, ensuring high levels of accountability and governance[68]. - The company emphasizes strict compliance with environmental regulations and has established a recycling workshop to minimize environmental impact[58]. - The board is committed to maintaining high standards of corporate governance, which is considered key to the company's success[61]. - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the year[62]. - The board's main responsibilities include formulating long-term strategies, approving business plans, and monitoring risk management[67]. - The company has a clear written authority framework for management to report to the board on daily operations[67]. - The company ensures that shareholder interests are prioritized, especially in cases of conflict with other interests[70]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an ESG management strategy that includes compliance, environmental sustainability, employee welfare, customer satisfaction, and social responsibility[144]. - The company is committed to enhancing communication with stakeholders and ensuring effective ESG risk management systems[141]. - The board of directors is responsible for overseeing and evaluating the effectiveness of the ESG governance framework[140]. - The company aims to reduce unit water consumption by 40% by 2025 compared to 2018 levels[155]. - The company targets a 50% reduction in unit greenhouse gas emissions by 2025 compared to 2018 levels[155]. - The company plans to decrease the generation of non-hazardous waste per unit product by 30% by 2025 compared to 2019 levels[155]. - The company aims for a 15% reduction in hazardous waste generation per unit product by 2025 compared to 2018 levels[155]. - The company targets a 20% reduction in comprehensive energy consumption per unit product by 2025 compared to 2015 levels[155]. Employee and Talent Management - The company had 1,449 employees as of December 31, 2021, with 1,391 in the copper business and 58 in the online gaming business[53]. - The company is committed to recruiting, retaining, and motivating talented employees to enhance achievements and create value for shareholders[94]. - The company actively collaborates with Central South University to enhance talent development in materials science[159]. Product Development and Innovation - In 2021, the company successfully developed new copper products K24 and K40, contributing to industry advancement and providing higher quality material options[164]. - The K24 copper product achieved a conductivity rate of over 90% and demonstrated excellent high-temperature resistance, enhancing efficiency for 5G applications[165]. - The sales volume of new products K36 and K40 reached 1,000 tons in 2021, generating significant economic benefits for the company[165]. - The company participated in the completion of the national standard for copper and copper alloy foil materials, contributing to industry progress[168]. - The company has made significant breakthroughs in copper-iron alloy CFA95, filling a domestic gap and receiving preliminary recognition from Japan[165]. Risk Management - The company’s risk management and internal control systems are designed to provide reasonable assurance against material misstatements or losses[105]. - The company has established a department responsible for risk monitoring and internal auditing, with quarterly audits conducted to ensure effective risk management[110]. - The board reviewed the effectiveness of the risk management and internal control systems and deemed them effective and complete[111].
兴业合金(00505) - 2021 - 年度财报