SLSVC(SH:600123)2022-04-25 16:00Financial Performance - The company achieved a net profit attributable to the parent company of CNY 2,352,524,935.31 in 2021, with a net profit of CNY 2,329,307,886.65 for the parent company [2]. - The company achieved a total operating revenue of RMB 12.86 billion in 2021, representing a year-on-year increase of 94.07% [11]. - The net profit attributable to shareholders reached RMB 2.35 billion, a significant increase of 527.84% compared to the previous year [11]. - The net cash flow from operating activities was RMB 3.29 billion, up 380.26% year-on-year [11]. - Basic earnings per share were RMB 2.0593, marking a 527.84% increase from the previous year [12]. - The weighted average return on equity was 19.79%, an increase of 16.26 percentage points year-on-year [12]. - The company reported a total profit of 2,951 million, an increase of 488.33% from 502 million in the previous year, primarily due to rising prices of coal and urea [46]. - The company reported a net profit of 2,401,608,421.79 RMB for 2021, a significant increase of 626.95% compared to 330,367,176.49 RMB in 2020 [168]. - The operating revenue for the reporting period reached 12.86 billion RMB, reflecting strong performance in coal and chemical product sales [173]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 7.5 per 10 shares, totaling CNY 856,800,000, which accounts for 36.42% of the net profit attributable to the parent company for 2021 [2]. - The company plans to distribute cash dividends of 0.1 CNY per share, totaling 114,240,000 CNY, which is 30% of the net profit attributable to shareholders for the year [104]. - The board has approved a dividend increase of 5% for shareholders, reflecting the company's strong financial performance [88]. Operational Performance - The company produced 10.40 million tons of coal and sold 10.27 million tons during the reporting period [16]. - The company produced 92.82 million tons of urea and sold 91.42 million tons, reflecting strong operational performance [16]. - The company achieved a coal production of 10.40 million tons, a 14.87% increase from 9.06 million tons in the same period last year [29]. - Sales volume for coal reached 10.27 million tons, up 14.99% from 8.93 million tons year-over-year [29]. - The average selling price of coal (excluding tax) increased by 73.32% to 806.54 RMB per ton from 465.36 RMB per ton [29]. - Total sales revenue surged to 8.28 billion RMB, a 99.30% increase compared to 4.16 billion RMB in the previous year [29]. - The company's gross profit rose to 5.60 billion RMB, reflecting a 167.75% increase from 2.09 billion RMB year-over-year [29]. Investment and Capital Expenditure - The company invested approximately RMB 1 billion in environmental protection initiatives throughout the year [17]. - The company completed an investment of 1.71 billion yuan in the Tang'an Green Coal Filling Mining Project, which is expected to fundamentally change coal production methods [19]. - The company allocated 54,070.91 million yuan for the Qinyu 90 million tons technical transformation project, with a cumulative investment of 56,728.76 million yuan [65]. - The company has a total of 282,606.2 million yuan allocated for various technical transformation projects in 2021 [66]. Environmental and Safety Compliance - The company maintained a stable safety production record with no environmental accidents reported during the year [17]. - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report as stated by its board of directors and management [2]. - The company has established a robust environmental management system, adhering to the Environmental Impact Assessment Law for all new and modified projects [126]. - The company has committed to a sustainable environmental management approach, with all major pollutant discharge units meeting regulatory standards for emissions [112]. - The company reported a total emission of SO2 at 28.19 mg/m³, which is below the regulatory limit of 150 mg/m³ [115]. - The company achieved a COD level of 3.22 mg/L, which is within the acceptable limit of 20 mg/L [116]. - The company completed the elimination of coal-fired boilers below 10t/h at four coal mines, transitioning to clean heating solutions [125]. Governance and Management - The company is committed to enhancing its governance structure in line with regulatory requirements [85]. - The company has implemented measures to ensure the independence of its operations despite the competition from its controlling shareholder [85]. - The company has established a performance evaluation mechanism for senior management, linking their assessments to performance management [106]. - The company has a governance structure in place to ensure accountability and performance evaluation of its senior management [93]. - The company has identified four governance issues during its self-inspection, three of which have been rectified, while the issue of competition with its controlling shareholder remains under discussion [109]. Market and Strategic Outlook - The company is actively pursuing market expansion and has integrated its coal, chemical, and fertilizer production processes to enhance efficiency [28]. - The company plans to expand its market presence and invest in new technologies to enhance production efficiency and product offerings [47]. - The company is considering strategic acquisitions to enhance its product portfolio, with a target of acquiring at least one company in the next 12 months [88]. - The company is focusing on performance evaluation and incentive mechanisms, establishing a salary distribution system aligned with comprehensive performance evaluation indicators [80]. Financial Health and Ratios - The company's current ratio improved to 0.59 from 0.43, an increase of 37.21% year-on-year [168]. - The debt-to-asset ratio decreased to 55.10%, down 3.39 percentage points from 58.49% in the previous year [168]. - The interest coverage ratio rose to 5.60, a substantial increase of 302.88% compared to 1.39 in 2020 [168]. - The total liabilities increased to CNY 11,599,541,792.50 in 2021 from CNY 10,863,889,899.08 in 2020, marking an increase of about 6.8% [184]. - The total equity rose to CNY 17,079,944,123.31 in 2021, up from CNY 14,774,110,344.08 in 2020, reflecting an increase of approximately 15.6% [184]. Research and Development - Research and development expenses amounted to 23.71 million, accounting for 0.18% of total revenue [42]. - The company is investing heavily in R&D, with a budget allocation of 150 million for new technologies and product development [88]. - The company employed 923 R&D personnel, making up 5% of the total workforce, with a significant portion in the 30-40 age range [43]. Employee and Talent Management - The total number of employees in the company is 18,348, with 11,814 in the parent company and 6,534 in major subsidiaries [101]. - The company has established four skill master studios to promote the spirit of craftsmanship and continuously cultivate professional technical personnel [103]. - The company is actively enhancing talent development through partnerships with various educational institutions and implementing a "talent strong enterprise" strategy [103].