LZCIC(SH:600423)2022-02-25 16:00Financial Performance - In 2021, the company's operating revenue was CNY 127.29 million, an increase of 18.83% compared to CNY 107.12 million in 2020[24]. - The net profit attributable to shareholders was CNY 28.81 million, a significant increase of 126.60% from CNY 12.72 million in the previous year[24]. - The net cash flow from operating activities improved to CNY 6.06 million, a turnaround from a negative cash flow of CNY -130.31 million in 2020[24]. - The total assets at the end of 2021 were CNY 485.16 million, reflecting a 3.36% increase from CNY 469.37 million at the end of 2020[24]. - The company's net assets attributable to shareholders increased by 7.53% to CNY 422.52 million from CNY 392.92 million in 2020[24]. - Basic earnings per share rose to CNY 0.04, doubling from CNY 0.02 in the previous year[25]. - The weighted average return on equity increased to 7.07%, up by 3.77 percentage points from 3.30% in 2020[25]. - The company reported a total revenue of 1.2 billion in 2021, representing a year-over-year growth of 15%[111]. Revenue and Sales - Revenue from the chemical industry reached 122,591,387.48 yuan with a gross margin of 20.96%, reflecting a year-on-year decrease of 2.57 percentage points[46]. - Revenue from 27.5% hydrogen peroxide was 101,658,443.06 yuan, with a gross margin of 24.84%, showing a slight increase of 0.23 percentage points year-on-year[46]. - Revenue from 50% hydrogen peroxide surged by 332.18% to 20,576,379.81 yuan, while its gross margin was only 2.04% due to low production capacity utilization of 15.53%[47][48]. - Sales revenue in Guangxi region decreased by 5.76%, while revenue outside Guangxi increased by 40.78% year-on-year, indicating a shift in sales strategy[47]. - Direct sales accounted for 16.84% of revenue in Guangxi region, down from 61.40% the previous year, while distribution sales rose to 83.16%[51]. Production and Capacity - The cumulative production of 27.5% hydrogen peroxide reached 101,970 tons, with a capacity utilization rate exceeding 100%[33]. - The company's actual production of 27.5% hydrogen peroxide was 101,970 tons, achieving a capacity utilization rate of 101.97%[76]. - The production volume of 50% hydrogen peroxide increased by 60.43% to 3,292 tons, while sales volume increased by 309.17% to 11,019 tons[52]. - The company faced production interruptions totaling over 20 days due to power and hydrogen supply shortages, affecting production by more than 8,000 tons[85]. Expenses and Cost Management - The company reported a significant reduction in expenses, including a decrease in employee settlement costs from CNY 122 million in the previous year to CNY 0.92 million in 2021[26]. - Management expenses decreased by 42.83% compared to the same period last year, primarily due to significant work stoppage losses from unplaced employees in the previous year[45]. - Financial expenses decreased by 7.0991 million yuan compared to the same period last year, mainly due to increased interest income during the reporting period[45]. - The cost of direct materials in the chemical industry increased by 10.30% to 59,614,343.38 yuan, accounting for 81.04% of total costs[54]. Market and Strategic Initiatives - The company plans to achieve a revenue target of 100 million yuan in 2022, aiming for profitability amidst a challenging market environment[96]. - The company is actively seeking suitable assets or strategic investors to facilitate its transformation and upgrade efforts[97]. - Market expansion plans include entering three new regional markets by Q3 2022, targeting a 10% market share in each[111]. - A new marketing strategy was introduced, focusing on digital channels, expected to increase customer engagement by 30%[111]. Governance and Compliance - The governance structure has been adjusted, reducing the board of directors from 9 to 7 members to improve operational efficiency[100]. - The company maintained strict compliance with insider information management regulations, ensuring fair disclosure practices[105]. - The company achieved full independence from its controlling shareholders in terms of assets, personnel, finance, and operations during the reporting period[105]. - The internal control system has been effectively implemented during the reporting period, with no significant deficiencies reported[153]. Environmental and Safety Practices - The company has implemented a comprehensive environmental protection strategy, ensuring that all waste emissions meet the required standards[158]. - The company has committed to promoting green office practices, including double-sided printing and energy-saving lighting[159]. - The company emphasizes safety and environmental responsibility, particularly in light of stricter regulations related to hazardous chemical production[97]. Legal and Litigation Matters - The company is currently involved in significant litigation, with a case against Fujian SanNeng Energy Technology Co., Ltd. involving a principal amount of RMB 25.8898 million, which is under retrial[168]. - The company has a pending lawsuit with Shanxi Huaxin Blue Ocean Industrial Co., Ltd. regarding a contract dispute, with a principal amount of RMB 66.0422 million, currently in the first instance[168]. Shareholder Information - The total number of ordinary shareholders increased from 23,488 to 24,182 during the reporting period[180]. - The largest shareholder, Liu Zhou Yuan Tong Investment Development Co., Ltd., holds 201,452,434 shares, representing 25.22% of the total shares[182]. - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profits to be allocated as cash dividends if certain conditions are met[142].