YAXING CHEMICAL(SH:600319)2022-05-08 16:00Financial Performance - In 2021, the company's operating revenue reached approximately CNY 192.70 million, a significant increase of 290.93% compared to CNY 49.29 million in 2020[21]. - The net profit attributable to shareholders of the listed company was approximately CNY 193.03 million, recovering from a loss of CNY 25.67 million in 2020[21]. - The company's total assets at the end of 2021 were approximately CNY 1.78 billion, a slight decrease of 1.51% from CNY 1.81 billion in 2020[22]. - The net assets attributable to shareholders of the listed company increased to approximately CNY 231.84 million, a substantial increase of 497.05% from CNY 38.83 million in 2020[22]. - The basic earnings per share for 2021 was CNY 0.61, compared to a loss of CNY 0.08 per share in 2020[23]. - The weighted average return on net assets was 142.62% in 2021, a significant recovery from -49.62% in 2020[23]. - The company achieved operating revenue of 192.7 million RMB in 2021, an increase of 143.41 million RMB year-on-year, indicating a recovery growth trend[33]. - The net profit attributable to shareholders of the listed company for 2021 was 193 million RMB, after deducting operational losses[33]. - The company reported a significant increase in non-operating income, including government subsidies related to the relocation[28]. - The company reported a net profit attributable to shareholders significantly boosted by government compensation related to the demolition of old facilities[44]. Production and Operations - The company has resumed production and sales of CPE (Chlorinated Polyethylene) in 2021 after a halt in production since late 2019[23]. - The first phase of the 50,000 tons/year CPE project was completed and put into operation in June 2021, leading to a substantial increase in sales volume in the third and fourth quarters[26]. - The company completed the construction and operation of a 50,000 tons/year CPE facility and a 120,000 tons/year ion membrane caustic soda facility, which is ready for production[39]. - The production of CPE reached 23,998 tons, with sales volume at 22,190.60 tons, including 2,317.25 tons from trial production[48]. - The company has resumed production with a focus on high-demand product lines, ensuring continuous supply to key customers, while adjusting its sales model to increase the proportion of distribution sales temporarily[68]. Research and Development - The company’s R&D expenses rose by 128.20% to CNY 5.15 million, reflecting a focus on innovation[43]. - The total R&D investment for the period was 5,150,159.06, representing 2.67% of operating revenue[55]. - The company has 55 R&D personnel, making up 6.52% of the total workforce[56]. - The company is committed to R&D for new product categories and applications in CPE, aiming for strategic transformation and upgrades[89]. - The company has initiated feasibility studies and early development for new products, including magnesium series chemicals and conductive polymer materials, leveraging local resources[70]. Financial Management - The company’s financial expenses increased by approximately CNY 20 million due to new related party borrowings and changes in accounting for financial costs during the relocation period[42]. - The net cash flow from financing activities was CNY 187.87 million, a decrease of 76.49% compared to the previous period[44]. - The company received a total of 1.051 billion RMB in relocation compensation funds, which significantly increased the annual net profit and year-end net asset value[33]. - The company proposed a non-public offering of A-shares to raise up to 300 million RMB for working capital, with the plan already accepted by the China Securities Regulatory Commission[34]. - The company received a bank loan of 23.5 million while repaying 1.25 million in due loans during the reporting period[60]. Governance and Compliance - The company held 4 shareholder meetings, 11 board meetings, and 5 supervisory board meetings during the reporting period, ensuring compliance with regulations and equal rights for all shareholders[93]. - The company maintained independent operations, with no interference from the controlling shareholder or actual controller in business decisions[94]. - The company’s governance structure complies with relevant laws and regulations, ensuring operational independence from its controlling shareholder[97]. - The company received a disciplinary notice from the Shanghai Stock Exchange for incomplete information disclosure regarding a major asset restructuring, leading to significant stock price fluctuations[116]. - The company plans to strictly adhere to legal and regulatory requirements for information disclosure in the future[117]. Environmental and Social Responsibility - The company has established a self-monitoring plan for environmental compliance, including regular monitoring of wastewater, air emissions, soil, groundwater, and noise[143]. - The company has made significant investments in environmental protection measures, including the installation of dust suppression systems at construction sites[137]. - The company emphasizes employee rights and welfare, providing a comprehensive compensation and benefits system to support staff development[147]. - The company has developed emergency response plans for environmental incidents related to production shutdowns and relocations[142]. - The company faced an administrative penalty of 550,000 yuan due to exceeding particulate matter emission standards, which has since been rectified[145]. Future Outlook - The company provided a performance guidance for 2022, expecting revenue to grow by 20% to reach approximately 1.8 billion[103]. - New product launches are anticipated to contribute an additional 300 million in revenue in 2022[103]. - The company plans to implement a second phase project for an additional 50,000 tons/year CPE facility and a 150,000 tons/year hydrogen peroxide project, with construction already underway[74]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 200 million allocated for potential deals[103]. - The company aims to complete the construction of a 150,000 tons/year hydrogen peroxide project and a second 50,000 tons/year CPE facility to restore profitability in 2022[88].