NSWRC(SH:600165)2022-04-26 16:00Financial Performance - In 2021, the company's operating revenue was CNY 192,386,865.11, representing a 61.51% increase compared to CNY 119,114,953.74 in 2020[18]. - The net profit attributable to shareholders of the listed company was a loss of CNY 22,964,880.32, a decrease of 209.85% from a profit of CNY 20,906,030.80 in 2020[18]. - The net cash flow from operating activities was a negative CNY 7,768,636.65, an improvement from a negative CNY 41,059,918.36 in 2020[18]. - The total assets at the end of 2021 were CNY 3,465,248,294.58, an increase of 3.92% from CNY 3,334,571,091.58 at the end of 2020[18]. - The net assets attributable to shareholders of the listed company decreased by 4.47% to CNY 913,444,901.15 from CNY 956,151,389.74 in 2020[18]. - The basic earnings per share for 2021 was -CNY 0.034, a decrease of 209.68% from CNY 0.031 in 2020[19]. - The weighted average return on net assets was -2.431% in 2021, a decrease of 4.747 percentage points from 2.316% in 2020[19]. - The company did not implement profit distribution or capital reserve transfer to increase share capital for the year 2021 due to accumulated losses[4]. Revenue and Sales - In 2021, the company reported total operating revenue of RMB 21,815.94 million, with a net profit of -RMB 6.69 million[29]. - The company achieved operating revenue of CNY 192.39 million, representing a year-on-year increase of 61.51%[37]. - The revenue from the chemical raw materials and chemical products manufacturing segment was RMB 19,043.72 million, with a year-on-year increase of 67.24%[79]. - The company’s sales revenue from direct sales reached RMB 19,043.72 million, reflecting a significant growth compared to the previous year[81]. - Domestic sales accounted for CNY 152.70 million, with a gross margin of 10.69%[42]. - International sales reached CNY 37.73 million, with a gross margin of 19.80%[42]. Costs and Expenses - The cost of sales increased to CNY 168.49 million, up 55.83% from the previous year[38]. - Research and development expenses surged to CNY 20.47 million, a significant increase of 2,021.23%[38]. - The direct material costs increased to 119,115,556.99 yuan, accounting for 71.48% of total costs, up from 61,870,593.63 yuan (59.91%) in the previous year[47]. - The sales expenses rose by 49.18% to 3,738,207.03 yuan, primarily due to the consolidation of Ningxia Tianfu and increased travel expenses[51]. - The manufacturing costs increased to 35,228,076.03 yuan, which is 21.14% of total costs, compared to 30,888,824.15 yuan (29.91%) in the previous year[47]. Research and Development - The company holds 36 patents, including 8 new utility model patents added during the reporting period[32]. - The total R&D investment amounted to 20,467,396.31 yuan, representing 10.64% of the operating revenue[53]. - The number of R&D personnel is 70, making up 6.10% of the total workforce[54]. - The company invested a total of 9.64 million yuan in 22 R&D projects aimed at improving product quality and reducing energy consumption, with a focus on the annual production of 50,000 tons of lauric acid[56]. - The R&D projects resulted in the filing of 5 invention patents and 3 utility model patents, enhancing the company's technological innovation capabilities[56]. Market and Industry Trends - The activated carbon industry is expected to see growth due to increasing environmental awareness and demand in various applications such as water treatment and air purification[70]. - The activated carbon industry is experiencing a shift towards developing countries, with increasing competition and a need for technological advancement among domestic companies[88]. - The market demand for long-chain dicarboxylic acids is expected to grow, driven by applications in high-end energy, new energy vehicles, and various high-tech material industries[87]. Risks and Challenges - The company has disclosed potential risks in its management discussion and analysis section, urging investors to be cautious[5]. - The company faced a net loss attributable to shareholders of RMB 13.99 million in Q2 2021, and continued losses in subsequent quarters[22]. - The company faces risks from fluctuating raw material prices and market demand for lauric acid products, which may impact profitability[93]. - The ongoing COVID-19 pandemic poses risks to production operations, particularly in regions like Europe and the United States[93]. - The company is subject to increased regulatory scrutiny regarding energy consumption and emissions as part of national green development initiatives[93]. Governance and Management - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations[96]. - The board of directors and supervisory board operate independently, ensuring the protection of shareholder rights[97]. - The company has a diverse board with members having extensive experience in finance, management, and law[103]. - The company has maintained a stable management team with long tenures, ensuring continuity in leadership[101]. - The company is exploring opportunities for mergers and acquisitions to strengthen its market presence[103]. Environmental Responsibility - The company invested nearly 400 million RMB in environmental protection facilities, implementing advanced technologies for waste treatment[132]. - The company is listed as a key pollutant discharge unit, with regulated emissions including 119.94 tons of SO2 and 154 tons of NOX annually[134]. - The company has not reported any major environmental pollution incidents during the reporting period[132]. - The company has established a self-monitoring scheme for environmental compliance, with all emissions indicators meeting standards during the testing period[139]. Financial Obligations and Investments - The company has a loan balance of RMB 39 million from Huanghe Bank and RMB 67.3 million from Huanghe New Materials as of December 31, 2021[165]. - The company borrowed a total of RMB 500 million from Guangdong Hongjun Investment Co., Ltd. to repurchase 49% equity of its subsidiary Hengli New Materials[167]. - The company has committed to acquiring 80% equity of Boya Stem Cell, with a total payment of 600 million yuan, including a performance deposit of 50 million yuan already paid[149]. - The company has established a cash dividend payment schedule to ensure the industrial fund's annual returns are met[152]. Employee Engagement and Training - The total number of employees in the parent company and major subsidiaries is 1,156, with 24 in the parent company and 1,132 in subsidiaries[121]. - The company conducted 662 training sessions in 2021, achieving a completion rate of 99% with a total of 13,338 training participants[124].