Financial Performance - For the year ended December 31, 2021, China Sanjiang Fine Chemicals Company reported a revenue increase of approximately 14.1% due to a rise in average selling prices of key products, including ethylene oxide, glycol, and polypropylene, which increased by about 8.4% to 37.0%[10] - The overall gross profit margin decreased significantly by approximately 12.3% to about 6.9%, with net profit attributable to shareholders around RMB 381 million, representing a decrease of about 66.1% compared to 2020[10] - The total revenue for the year 2021 was RMB 9,498,708 thousand, representing a 14.1% increase compared to RMB 8,322,716 thousand in 2020[22] - The revenue from ethylene glycol increased by approximately 69.1% in 2021, attributed to increased production capacity, with sales volume rising by 20.7%[26] - The revenue from polypropylene rose by about 15.4%, driven by a 22.9% increase in average selling price, despite a 6.1% decrease in sales volume[27] - The profit attributable to equity shareholders (excluding dividends) for the fiscal year was RMB 380,611,000, a decrease of 66.1% compared to RMB 1,122,931,000 in the previous year[156] Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.06 per share, resulting in a total dividend payout ratio of approximately 48.0% for the year ended December 31, 2021[10] - The interim dividend distributed was HKD 0.125 per share, with the final dividend subject to shareholder approval at the upcoming annual general meeting[37] - As of December 31, 2021, the total issued shares of the company were 1,190,000,000[173] - The company has a significant shareholding structure, with 韩建红 and 管思怡 collectively holding 536,234,000 shares, representing approximately 45.06% of the issued share capital[171] - Sure Capital Holdings Limited holds 516,496,000 shares, accounting for approximately 43.40% of the issued share capital[175] - The board of directors is subject to rotation, with one-third of the directors required to retire at each annual general meeting[164] Production and Operational Efficiency - The company is advancing the construction of a new production facility with an annual capacity of 1,000,000 tons of ethylene oxide/ethylene glycol, expected to commence commercial operations in the second half of 2022, potentially doubling its market share in East China[16] - The company anticipates overall revenue growth of over 50% following the operational launch of the new production facility and its upstream supporting facilities[16] - The company aims to enhance operational efficiency and reduce the impact of external events by positioning itself as a diversified and vertically integrated chemical group[14] - The company has implemented strategies to mitigate various impacts from external events, focusing on maintaining competitive advantages through improved production efficiency[14] - The company continues to operate and produce normally despite disruptions in raw material procurement logistics caused by the COVID-19 pandemic[14] Environmental Impact and Sustainability - The company reported a total wastewater discharge of 404,702 tons in 2021, a decrease from 497,628 tons in 2020, representing a reduction of approximately 18.7%[80] - The industrial water consumption for 2021 was 7,361,900 tons, slightly down from 7,408,780 tons in 2020, indicating a decrease of about 0.6%[80] - The greenhouse gas emissions for Scope 1 were 1,748,460 tons in 2021, compared to 1,715,935 tons in 2020, showing an increase of approximately 1.9%[80] - The company invested RMB 55.7 million in environmental protection in 2021, up from RMB 43.5 million in 2020, reflecting an increase of approximately 28.6%[80] - The harmful waste generated was 2,174 tons in 2021, significantly higher than 266 tons in 2020, indicating a substantial increase[80] - The company is committed to reducing its impact on climate change by optimizing production efficiency and utilizing waste heat for low-pressure steam generation[89] Employee and Workforce Management - The number of full-time employees increased to 1,110 in 2021 from 1,037 in 2020, reflecting the company's growth[36] - Employee turnover rate rose to 9.3% in 2021, compared to 8.4% in 2020, with a notable increase in turnover among employees aged 18-35 to 12.1%[92] - The company provided training to 1,110 employees in 2021, maintaining an average of 96 hours of training for both male and female employees[99] - The total number of employees increased to 1,110 in 2021, up from 1,037 in 2020, with a male to female ratio of 963 to 147[92] Corporate Governance and Compliance - The board of directors believes that good corporate governance strengthens accountability and investor confidence, adhering to the corporate governance code as of December 31, 2021[112] - The board has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to ensure effective corporate governance[118] - The Audit Committee consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and internal control systems[121] - The board confirmed its responsibility for the preparation of the financial statements for the year ended December 31, 2021, ensuring they present a true and fair view of the group's performance[134] - The company has a zero-tolerance policy against bribery, extortion, fraud, and money laundering, with no known violations reported for the year ending December 31, 2021[110] Supply Chain and Procurement - The number of major suppliers in China (annual procurement amount exceeding RMB 1 million) decreased from 160 in 2020 to 155 in 2021, a decline of approximately 3.1%[103] - The number of overseas suppliers (annual procurement amount exceeding RMB 1 million) decreased from 22 in 2020 to 15 in 2021, a decline of approximately 31.8%[103] - The largest supplier contributed 22.05% to total procurement, with the top five suppliers accounting for 57.60%[183] Market and Pricing Trends - Coal prices increased from approximately RMB 600 per ton at the beginning of 2021 to about RMB 1,000 per ton by September 1, 2021, peaking at around RMB 2,300 per ton on October 15, 2021, before falling to about RMB 1,200 per ton by the end of October[10] - Methanol prices followed a similar trend to coal prices, with fluctuations impacting the overall gross profit margin, as methanol accounts for about 70% of the company's current raw material procurement[10] - Ethylene and propylene prices increased by approximately 38.9% and 27.2% respectively compared to 2020, driven by weather-related shutdowns of key oil cracking plants in the U.S.[14]
中国三江化工(02198) - 2021 - 年度财报