Zhejiang Longsheng(SH:600352)2023-04-14 16:00Financial Performance - The company's operating revenue for 2022 was CNY 21,225,642,671.37, representing a 27.41% increase compared to CNY 16,659,819,623.52 in 2021[15]. - Net profit attributable to shareholders for 2022 was CNY 3,003,132,773.22, a decrease of 10.99% from CNY 3,373,965,680.06 in 2021[15]. - The net profit after deducting non-recurring gains and losses was CNY 2,758,641,690.12, which is a 16.59% increase from CNY 2,366,027,185.29 in 2021[15]. - The net cash flow from operating activities decreased by 79.58% to CNY 955,938,154.82 from CNY 4,681,061,864.70 in 2021[15]. - The company's total assets at the end of 2022 were CNY 65,161,739,457.60, a slight decrease of 0.86% from CNY 65,726,507,288.30 in 2021[15]. - Basic earnings per share for 2022 were CNY 0.9357, down 10.27% from CNY 1.0428 in 2021[16]. - The weighted average return on net assets for 2022 was 9.61%, a decrease of 2.03 percentage points from 11.64% in 2021[16]. - Total profit amounted to 3.998 billion yuan, a decrease of 7.00% year-on-year[28]. - Net profit attributable to shareholders was 3.003 billion yuan, down 10.99% year-on-year[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 2.759 billion yuan, an increase of 16.59% year-on-year[28]. - Total revenue for 2022 is 22.002 billion CNY, an increase of 32.07% compared to the previous year[126]. - Total profit for 2022 is 5.31 billion CNY, reflecting a growth of 23.51% year-over-year[126]. - Net profit attributable to shareholders is 4.25 billion CNY, up by 25.96% from the previous year[126]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling an undistributed profit of 1,503,624,615.60 CNY as of December 31, 2022[3]. - The cumulative undistributed profits will be carried forward to the next fiscal year, with no capital reserve fund to be converted into share capital[3]. - The company declared a cash dividend of 2.50 RMB per 10 shares, totaling 788,932,962.75 RMB, which represents 26.27% of the net profit attributable to ordinary shareholders in the consolidated financial statements[133]. - The total amount of cash dividends, including share repurchases, reached 1,774,895,091.18 RMB, accounting for 59.10% of the net profit attributable to ordinary shareholders[133]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[2]. - The board of directors and supervisory board members have all attended the board meeting, ensuring the integrity of the annual report[2]. - The company has confirmed that all directors can guarantee the authenticity, accuracy, and completeness of the annual report[4]. - The company has not violated any decision-making procedures regarding external guarantees[4]. - The company reported no significant risks that could materially affect its production and operations during the reporting period[5]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[4]. - The company has established a comprehensive internal control system, which was evaluated in the 2022 annual internal control evaluation report[96]. - The company received a standard unqualified opinion on its internal control audit for the fiscal year 2022, confirming effective financial reporting controls[141]. Research and Development - The company holds nearly 1,900 domestic and international patents, supporting its strong R&D capabilities[26]. - The company aims to enhance its product line through continuous internal R&D and external acquisitions[26]. - Research and development expenses rose by 8.72% to ¥709,411,015.68, attributed to increased investment in materials and energy for R&D[29]. - The number of R&D personnel is 546, making up 8.25% of the total workforce[45]. - Zhejiang Longsheng is investing 200 million RMB in R&D for innovative dyeing technologies over the next two years[113]. Environmental Responsibility - The company has invested 57,078.48 million RMB in environmental protection during the reporting period[142]. - The company reported a total wastewater discharge of 2,776,299 tons during the reporting period, with COD concentration ranging from 0.84 to 94.48 mg/L, totaling 203.034 tons of COD discharged[144]. - The company generated 66,675.04 tons of general solid waste and 24,096.42 tons of hazardous solid waste, all disposed of legally and compliantly[144]. - The company’s wastewater discharge met the annual requirements of 4,576,160 tons and COD and ammonia nitrogen limits of 338.093 tons and 51.147 tons respectively[144]. - The company has implemented measures to ensure that all emissions from its facilities are treated to meet environmental standards before being released into the atmosphere[143]. - The company has established various pollution control facilities, including a 15,000 tons/day wastewater treatment facility and a 3,000 tons/day wastewater treatment facility, ensuring zero accidents in environmental governance[145]. - The company has published its 2022 Corporate Social Responsibility Report, detailing its efforts in sustainability and community engagement[150]. Market Strategy and Expansion - The company plans to focus on expanding its market presence in both domestic and international regions, including key areas in Germany, the USA, and Brazil[33]. - The company aims to achieve a green and low-carbon transformation in the chemical industry during the 14th Five-Year Plan period, in line with national carbon peak goals[54]. - The company is focusing on new product development and technological advancements to drive future growth[85]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[113]. - The company is committed to enhancing its core competitiveness through innovation-driven development strategies and sustainable practices[54]. Legal and Governance Issues - The company is currently involved in a significant lawsuit regarding patent infringement, with a claim for economic damages of RMB 230 million[157]. - The court ruled that the company must pay RMB 14 million in damages and additional costs related to the patent infringement case[157]. - The company has faced multiple legal challenges, including an ongoing appeal regarding the valuation of the aforementioned stake[158]. - The company has established a legal framework to ensure the independence of its operations from its controlling shareholders[98]. - The company has established specialized committees, including the audit committee and the strategic committee, to enhance governance and oversight[121]. Shareholder Information - The total number of shares held by the chairman and general manager remained unchanged at 346,321,538 shares, with a pre-tax remuneration of 412.43 million yuan[104]. - The total number of shares held by the vice general manager and board secretary also remained unchanged at 4,891,467 shares, with a pre-tax remuneration of 123.31 million yuan[104]. - The total number of shares held by the financial director remained unchanged at 0 shares, with a pre-tax remuneration of 131.31 million yuan[104]. - The total number of shares held by the deputy general manager remained unchanged at 3,306,329 shares, with a pre-tax remuneration of 160.76 million yuan[104]. - The total number of shares held by the independent directors remained unchanged at 0 shares, with a pre-tax remuneration of 12.00 million yuan each[104]. - The total number of shares held by the supervisory board chairman remained unchanged at 0 shares, with a pre-tax remuneration of 29.51 million yuan[104]. - The total number of shares held by the employee representative supervisor remained unchanged at 0 shares, with a pre-tax remuneration of 3.43 million yuan[104]. - The total number of shares held by the company’s directors and supervisors at the end of the reporting period was 392,332,236 shares, with a total pre-tax remuneration of 1,435.70 million yuan[104]. Debt and Financing - The company has issued a total of 20 billion RMB in corporate bonds, with interest rates ranging from 2.90% to 3.95%[186]. - The company completed interest payments for its bonds on various dates in 2022, including the first phase on March 3, 2022, and the second phase on April 21, 2022[188]. - The company has issued multiple short-term financing bonds in 2022, with amounts ranging from RMB 2.5 billion to RMB 5 billion, all of which have been repaid on schedule[194]. - The company has issued a total of RMB 8.00 billion in the first phase of 2023 short-term financing bonds, with a repayment date set for August 25, 2023[193]. - The company has no overdue bonds reported, indicating a stable debt repayment status[193].