Economic Performance - In 2021, China's GDP reached 114 trillion yuan, with a growth rate of 8.1%, significantly higher than other major economies[9]. Business Development and Strategy - The group achieved breakthroughs in industrial catalyst marketing, expanding into sectors such as cement, glass, and solid waste incineration, with both plate and honeycomb catalysts progressing simultaneously[10]. - The group secured bulk orders for its natural gas vehicle Euro VI catalyst, marking its entry into the vehicle industry[10]. - In 2022, the group plans to strengthen market development, cost control, and technology R&D in both industrial and vehicle catalyst sectors[12]. - The group aims to enhance the sales team's construction and training, improving the incentive system to drive greater market breakthroughs[13]. - The company plans to strengthen market expansion efforts and develop competitive sales incentive policies in 2022[89]. - The company continues to invest in R&D for vehicle catalysts, focusing on the National VI standards for natural gas and diesel vehicles[88]. - The company aims to balance resource allocation between traditional industrial catalysts and vehicle catalysts in response to market changes[88]. Financial Performance - The company recorded total revenue of approximately RMB 715.6 million in 2021, an increase of 10.3% compared to approximately RMB 648.0 million in 2020[92]. - Revenue from sales of plate denitrification catalysts decreased by 22.3% to approximately RMB 343.7 million in 2021, primarily due to market demand fluctuations[93]. - Revenue from sales of honeycomb denitrification catalysts increased by 39.3% to approximately RMB 183.1 million in 2021, driven by market demand[93]. - The company achieved a gross profit of approximately RMB 122 million in 2021, attributed to the price recovery of plate denitrification catalysts and increased sales volume of honeycomb catalysts[95]. - Administrative expenses rose by 11.9% to approximately RMB 202 million in 2021, mainly due to increased personnel wages and social security costs[97]. Governance and Board Structure - The board consists of six directors, including two executive directors and three independent non-executive directors, ensuring strong independence[20]. - The board is responsible for business and investment plans, annual financial budgets, and financial reporting, with a focus on effective governance and management oversight[21]. - All directors are required to disclose their public company roles and commitments annually, ensuring they dedicate sufficient time to the company's affairs[24]. - Attendance records show that all directors attended 100% of board meetings, indicating strong engagement and commitment[25]. - The company has appointed three independent non-executive directors, representing over one-third of the board, to ensure adequate checks and balances[26]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to fulfill its governance responsibilities[33]. - The company’s governance structure is reviewed periodically to maintain high standards of corporate governance[29]. - The board believes that combining the roles of Chairman and CEO under Zhao Shu provides strong and stable leadership for the company's strategic implementation[29]. Risk Management and Compliance - The company has established a risk management framework that includes five key components: risk identification, risk assessment, risk treatment, risk reporting, and risk monitoring[48]. - The company’s internal control and risk management systems are reviewed annually to ensure ongoing effectiveness[48]. - The company has engaged external internal control consultants to audit the effectiveness of its internal control system, covering all major controls including financial, operational, and compliance[48]. - The company’s compliance procedures ensure adherence to applicable laws and regulations, which are regularly reviewed by the audit committee[130]. Shareholder and Investor Relations - The company maintains regular communication with institutional investors and analysts to inform them of its strategies and operations[64]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting[56]. - The company ensures that all shareholders receive timely information regarding significant business matters through various communication channels[63]. - The company encourages shareholders to attend general meetings and allows proxy voting for those unable to attend[64]. Production and Operations - The company completed 560 catalyst technical solutions and signed 65 supply contracts by the end of 2021[79]. - The company produced over 8,000 cubic meters of catalysts in 2021, with a stable production situation for honeycomb catalysts[81]. - The honeycomb catalyst contracts showed significant growth in 2021, indicating a successful market transition[79]. - The company achieved initial acceptance for 17 units across 12 power plants and completed final acceptance for 2 units in one power plant[79]. - The company secured two orders in the cement industry, establishing a competitive foundation for future promotions[79]. - The overall market for industrial denitrification catalysts is stabilizing, with average profit margins expected to align with manufacturing industry standards[76]. - The company is focusing on optimizing processes and improving production efficiency to counteract raw material price fluctuations[81]. Human Resources and Training - The company aims to increase female representation in senior management and board positions through comprehensive training programs[70]. - The group has established an annual training program for employees to enhance their skills, emphasizing the importance of human resources in a competitive industry[135]. Financial Health and Liquidity - Current ratio decreased from 3.1x as of December 31, 2020, to 2.4x as of December 31, 2021[102]. - Quick ratio decreased from 1.9x as of December 31, 2020, to 1.3x as of December 31, 2021[102]. - Cash and cash equivalents as of December 31, 2021, were approximately RMB 71.4 million, down from RMB 85.0 million as of December 31, 2020[104]. - The net amount of unutilized proceeds from the IPO as of December 31, 2021, was approximately RMB 29.5 million[106]. - Total capital expenditure for the year ended December 31, 2021, was approximately RMB 4.5 million, significantly down from RMB 24.3 million in 2020[114]. - The company had no outstanding bank loans or other borrowings as of December 31, 2021[110]. - The company recorded no return on equity or return on total assets for the years ended December 31, 2020, and December 31, 2021, due to losses attributable to owners[103]. - The company has no significant contingent liabilities as of December 31, 2021[116]. Share Options and Equity - The company has a share option plan with a maximum limit of 49,403,700 shares, which is 10% of the total shares in issue as of the report date[146]. - The share options granted to each eligible participant within any twelve-month period cannot exceed 1% of the issued shares as of the grant date[149]. - The share option plan is valid for a period of ten years from October 14, 2015, with approximately three years and seven months remaining[153]. - No share options were granted, exercised, cancelled, or lapsed during the reporting period up to the report date[154]. - As of December 31, 2021, the company had a total of 494,037,000 shares issued, with significant shareholdings including 30.98% by Advant Performance Limited and 10.34% by EEC Technology Limited[167]. Director and Management Information - Mr. Li Ke has been appointed as an executive director since October 19, 2015, and is responsible for production management, equipment management, R&D, and quality control[193]. - Ms. Chen Yuehua has extensive experience in investment banking and commercial banking, having worked on various mergers and acquisitions and private equity fund establishment[196]. - Mr. Li Min has published over 20 papers in domestic and international academic journals, with more than 10 indexed by EI[199]. - Mr. Wang Zuowei has over 30 years of experience in finance and accounting, and is a member of both the Institute of Chartered Accountants in England and Wales and the Hong Kong Institute of Certified Public Accountants[200].
迪诺斯环保(01452) - 2021 - 年度财报