ELION(SH:600277)2022-06-07 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥12.44 billion, a decrease of 3.69% compared to ¥12.92 billion in 2020 [28]. - Net profit attributable to shareholders increased by 54.65% to approximately ¥801.65 million in 2021, up from ¥518.38 million in 2020 [28]. - The net profit after deducting non-recurring gains and losses rose by 80.17% to approximately ¥737.27 million in 2021 [30]. - The net cash flow from operating activities increased by 22.46% to approximately ¥2.17 billion in 2021 [28]. - Basic earnings per share increased by 53.33% to ¥0.23 in 2021, compared to ¥0.15 in 2020 [31]. - The weighted average return on equity rose to 5.00% in 2021, an increase of 1.80 percentage points from 2020 [31]. - Total assets decreased by 6.39% to approximately ¥34.09 billion at the end of 2021, down from ¥36.42 billion at the end of 2020 [28]. - The company achieved a total revenue of CNY 12,345,382,636.60, reflecting a year-on-year decrease of 3.84% [173]. - The chemical manufacturing segment generated revenue of CNY 7,545,040,470.30, with a gross margin of 19.91%, an increase of 6.85 percentage points compared to the previous year [170]. Risk Management and Governance - The company has received an unqualified audit report with emphasis on matters related to going concern uncertainties [6]. - The company has identified significant risk factors that may adversely affect its future development and operational goals, detailed in the management discussion and analysis section [8]. - The company has a comprehensive risk management strategy in place to address potential adverse factors affecting its operations [8]. - The company’s board of directors and supervisory board members were present at the board meeting, ensuring governance compliance [6]. - The company emphasizes safety management with a comprehensive HSE system to ensure sustainable operations and risk mitigation [56]. Operational Highlights - The company experienced a significant increase in sales volume for PVC and mixed fertilizers in the second quarter compared to the first quarter [34]. - In 2021, the company achieved a PVC production of 503,200 tons, exceeding the planned capacity of 500,000 tons, while caustic soda production reached 374,300 tons against a target of 400,000 tons [50]. - The company’s subsidiary completed a production of 661,300 tons of calcium carbide, ensuring stable production amidst energy consumption controls and power restrictions [50]. - The company’s modern coal chemical industry chain includes a PVC production capacity of 500,000 tons and a caustic soda capacity of 400,000 tons, supported by a self-owned power plant [68]. - The company’s coal-based ethylene glycol project has a production capacity of 700,000 tons per year, with 400,000 tons already in operation [142]. Research and Development - The company’s R&D expenses rose by 91.57% to RMB 410.81 million, reflecting an increase in high-tech enterprise projects [87]. - The company holds a total of 552 authorized patents, with 93 patents granted in 2021 and 31 more pending [85]. - The company is developing various technologies, including a high-efficiency desulfurization agent and a new flue gas waste heat recovery process, with significant funding allocated [117][119]. - The company has invested significantly in R&D projects, with a total of 45,797,086.38 for ultra-low emissions technology development [121]. - A major focus is on the development of a new mercury-free solid-phase catalyst, with an investment of 35,298,025.56 [123]. Strategic Initiatives - The company has established a strategic focus on photovoltaic sand control and hydrogen energy, with a total installed capacity of 600,000 kW for operational photovoltaic power stations and 2.7 million kW under construction [51]. - The company is actively expanding its clean heating business, which is expected to benefit from national policies promoting energy efficiency and circular economy practices in industrial parks [66]. - The company is focusing on the development of new energy sources, including hydrogen production from renewable sources, in line with national energy transition policies [65]. - The company has formed a unique "six-in-one" circular industrial development model integrating photovoltaic, desertification control, energy storage, green hydrogen, chemicals, and agriculture [78]. - The company aims to leverage opportunities in the Yellow River Basin and focus on "photovoltaic desertification control" investments, extending into green circular industries [193]. Market Conditions - The PVC market in China experienced high prices for an extended period due to rising raw material costs and supply constraints, with a notable price drop starting in late October 2021 [59]. - The domestic caustic soda production reached 38.91 million tons in 2021, reflecting a year-on-year growth of 5.2% [60]. - The company’s coal procurement prices saw significant increases, with raw coal prices rising from 496.46 yuan/ton in Q1 to 1,140.12 yuan/ton in Q4, marking a 129% increase [38]. - The average price of electricity increased by 28.08% year-on-year, significantly impacting the company's operating costs [169]. Financial Management - The total value of restricted assets at the end of the reporting period was ¥13,504,515,983.04, including cash, fixed assets, and long-term equity investments [133]. - The company’s long-term equity investments increased by CNY 9.55 billion, a growth of 16.95%, primarily due to investment income from equity method accounting [174]. - The company’s total procurement of clean thermal coal was 238.76 million tons, with a price increase of 67.41% year-on-year [169]. - The company’s investment in joint ventures amounted to CNY 10.39 billion during the reporting period [174]. Future Outlook - The company expects continued growth in net profit driven by rising chemical product prices and increased sales volume in the upcoming quarters [37]. - The company plans to enhance its modern coal chemical industry chain by implementing hydrogen production projects and developing cutting-edge technologies that couple green electricity, green hydrogen, and coal chemical projects [197]. - The company will continue to focus on the green low-carbon transformation of its energy operations, aligning with national strategic plans [194]. - The company aims to achieve high-quality development through technological upgrades and the integration of new materials and new energy industries [198].