Financial Performance - For the year ended December 31, 2021, the group's sales revenue was approximately RMB 547,976,000, an increase of about 23% compared to RMB 444,106,000 in the same period last year[15]. - The net profit attributable to equity holders of the company was approximately RMB 58,318,000, representing a growth of about 247% from RMB 16,827,000 in the previous year[15]. - Revenue for 2021 was RMB 547,976,000, an increase of 23.5% from RMB 444,106,000 in 2020[38]. - Other income for 2021 was RMB 124,176,000, a significant increase from a net loss of RMB 4,075,000 in 2020, mainly due to relocation compensation[41]. - The group experienced a net loss of RMB 49,195,000 after excluding relocation income, mainly due to impairment of construction projects and increased production costs leading to a decline in gross margin[43]. - Gross margin for 2021 decreased to 7.1% from 21.5% in 2020, primarily due to increased production costs and reduced overseas demand[38]. - The company incurred a projected loss of RMB 7,982,000 due to rising raw material prices affecting irrevocable sales contracts[38]. Production and Operations - The company has completed the relocation of production equipment related to succinic anhydride from its factories in Changzhou and Lianyungang to Dalian[15]. - The company completed the relocation and transformation of its Changzhou factory, enhancing automation and improving production processes to increase product competitiveness[18]. - The Dalian new factory project is a key focus for the company, with the first phase expected to begin trial production in 2022, expanding phthalic anhydride production capacity[27]. - The Lianyungang factory resumed production in 2021 but faced challenges due to unstable steam supply, with plans to improve operations in 2022 following the Dalian factory's production start[29]. - The company plans to relocate its production line to a new factory in Dalian, which is expected to restore normal production of phthalic anhydride[39]. - The company plans to resume production of phthalic anhydride at the new Dalian factory, which is expected to utilize self-generated steam for production[146]. Research and Development - The company emphasizes technological investment and innovation, having won several awards related to production technology, including first-class and second-class awards in the petrochemical industry[8]. - The company aims to leverage its strong R&D capabilities to drive rapid development in the future[8]. - The research and development bases are located in Changzhou and Shanghai, where the company continuously launches new products and technologies[8]. - The pharmaceutical division has made progress in the development of malic acid raw materials, which are set to be used in various medical applications, potentially increasing sales of high-value products[25]. - The company is committed to increasing R&D investment to drive technological innovation and product upgrades[32]. Environmental Management - The company has established a clean production audit report, achieving advanced domestic standards in pollution reduction and resource utilization efficiency[23]. - The company is committed to enhancing environmental management during the Changzhou factory's relocation, ensuring compliance with government standards for soil investigation and pollution cleanup[21]. - The company invested approximately RMB 9 million in environmental protection efforts in 2021[131]. - The company has implemented a new method for producing phthalic anhydride since 2018, significantly reducing greenhouse gas emissions[134]. - The company has established a dedicated environmental protection workshop to manage wastewater and solid waste effectively[130]. - The total greenhouse gas emissions amounted to 73,278 tons in 2021, slightly down from 75,808 tons in 2020, while emissions per unit of production increased to 2.61 tons per ton[137]. - The total wastewater discharged was 329,204 tons, a decrease from 384,199 tons in 2020 and 393,492 tons in 2019[137]. - The company has not reported any significant violations of environmental protection laws and regulations in 2021[131]. Corporate Governance - The company emphasizes high-quality corporate governance, believing it establishes a framework for effective management and enhances shareholder value[71]. - The board of directors confirmed their responsibility for the preparation of the financial statements for the fiscal year ending December 31, 2021[108]. - The company has adopted a standard code of conduct for securities trading, ensuring compliance among all directors[77]. - The board includes independent directors with significant experience in finance and investment banking, enhancing corporate governance[62]. - The company has established three board committees: the remuneration committee, audit committee, and nomination committee[72]. - The Audit Committee held five meetings in 2021, with a 100% attendance rate from all members, focusing on reviewing the financial reporting procedures and internal control systems of the group[89]. - The company has adopted a board diversity policy, recognizing the benefits of diverse perspectives and experiences among board members[99]. Employee Management - Employee costs totaled approximately RMB 64,859,000 for the year, an increase from RMB 55,946,000 in 2020, driven by higher average employee numbers and salaries[51]. - The employee turnover rate for males was 25% in 2021, an increase from 18% in 2020, while the turnover rate for females rose to 15% from 8%[154]. - The average training hours per employee was 69 hours in 2021, slightly up from 68 hours in 2020[156]. - The company has established a detailed social responsibility system covering employment regulations and social welfare[151]. Market and Sales - Domestic sales grew by approximately 27% in 2021, driven by adjustments in sales strategies and increased efforts in promoting products like tartaric acid and malic acid[19]. - Export sales accounted for approximately 33.7% of total revenue, a decrease from 35.6% in 2020, while domestic sales increased to 66.3% from 64.2%[45]. - The company is actively developing high-end end-user clients and expanding into international markets[35]. - The company will continue to focus on food additives while exploring new market segments and applications[36]. Financial Position - As of December 31, 2021, the total outstanding bank loans amounted to RMB 88,400,000, with RMB 86,900,000 due within one year[47]. - The debt-to-asset ratio increased to 27.1% as of December 31, 2021, up from 23.3% in 2020, mainly due to increased bank loans for the new factory[50]. - Cash and cash equivalents decreased to approximately RMB 58,178,000 from RMB 133,693,000 in 2020, primarily due to funding for the new factory[50]. - The company aims for a dividend payout ratio of 30% to 70% of the consolidated net profit attributable to shareholders[121]. Shareholder Information - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 517,198,000, an increase from RMB 511,932,000 in 2020[171]. - The company did not declare any interim dividends for the year, nor did it recommend a final dividend for the year ending December 31, 2021[168]. - The beneficial ownership structure indicates significant control by key individuals, with Mr. Rui and Ms. Leng both holding substantial shares[188]. - The company continues to maintain a diverse ownership structure with both domestic and foreign investments[188].
常茂生物(00954) - 2021 - 年度财报