BAOTI(SH:600456)2022-04-15 16:00Financial Performance - The company achieved an operating revenue of RMB 5.25 billion in 2021, representing a year-on-year increase of 20.94% compared to RMB 4.34 billion in 2020[21]. - Net profit attributable to shareholders reached RMB 560.28 million, a significant increase of 54.49% from RMB 362.66 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was RMB 514.01 million, up 61.25% from RMB 318.76 million in 2020[21]. - The company reported a net cash flow from operating activities of RMB 205.89 million, down 49.04% from RMB 404.03 million in 2020[21]. - Total assets increased by 34.38% to RMB 11.76 billion at the end of 2021, compared to RMB 8.75 billion at the end of 2020[21]. - Operating costs amounted to 4.03 billion RMB, reflecting a year-on-year increase of 22.52%[59]. - The gross margin for titanium products decreased by 2.52 percentage points to 23.38%, while the gross margin for other products increased by 7.47 percentage points to 19.37%[1]. - Titanium product revenue reached ¥4,742,897,459.24, with a year-over-year increase of 27.75%[1]. - Domestic revenue was ¥4,547,541,165.81, reflecting a 24.46% increase compared to the previous year, while foreign revenue decreased by 7.32% to ¥537,846,182.74[1]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 8.5 per 10 shares, totaling RMB 406,110,908.15, based on a total share capital of 477,777,539 shares as of December 31, 2021[6]. - The cash dividend amount for 2021 is set to be distributed on July 29, 2021, with the record date being July 28, 2021[181]. - The independent directors have expressed that the profit distribution plan is beneficial for shareholders, particularly minority shareholders, and does not adversely affect the company's operations or long-term development[182]. - The cash dividend policy is in compliance with the company's articles of association and the resolutions of the shareholders' meeting[182]. - The company has established a three-year shareholder return plan (2019-2021) to ensure adherence to its profit distribution policy[182]. Corporate Governance - The company has a robust governance structure that complies with regulatory requirements, with no significant discrepancies noted[136]. - The company has established specialized committees, including an audit committee and a remuneration and assessment committee, to oversee various governance aspects[170]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to 579.91 million CNY[148]. - The company has a total of 14 directors and senior management, with 8 independent directors serving on the board[146]. - The company has not reported any changes in shareholding for its directors and senior management during the reporting period[146]. - The company has conducted six supervisory board meetings during the reporting period, effectively fulfilling its supervisory role[134]. Market and Industry Position - The company is recognized as the largest specialized rare metal production and research base in China, with a leading position in titanium production capacity[43]. - The titanium industry in China is experiencing stable growth, with high demand in aerospace and defense sectors, presenting significant market opportunities[44]. - The company focused on expanding into high-end markets such as aerospace, marine engineering, and new energy sectors, enhancing its market share[32]. - The company aims to achieve an operating revenue of 5.5 billion RMB and a titanium product output of 30,000 tons in 2022[100]. - The company is expanding its market presence in Europe, targeting a 25% increase in sales in that region over the next year[153]. Research and Development - The company has a strong R&D capability, being a national high-tech enterprise with multiple technology centers and partnerships with universities[53]. - The company received 6 awards for technological achievements and was granted 8 patents in 2021, highlighting its commitment to innovation[36]. - Total R&D expenditure was ¥163,091,309.17, accounting for 3.11% of total revenue[71]. - Research and development investments increased by 12%, focusing on advanced materials technology[153]. Environmental Responsibility - The company emphasizes green development and successfully met all environmental assessment indicators in 2021, with no major safety or environmental incidents[42]. - The company has adhered to national environmental protection laws and regulations, implementing pollution control measures, with all pollutants discharged meeting national standards and no penalties from environmental authorities[198]. - The company is committed to environmental responsibility and has not faced any environmental penalties during the reporting period[198]. - The company has implemented strict quality management systems, completing 15 domestic certifications and 13 international certifications in 2021[37]. Strategic Planning - The company plans to enhance its production capacity to 50,000 tons of titanium products and a certain amount of zirconium and nickel products[99]. - The company intends to invest 654 million RMB in fixed assets in 2022[100]. - The company will focus on market expansion and product upgrades to capture emerging market demands for titanium[101]. - The company is implementing cost reduction strategies, including optimizing inventory management and enhancing resource utilization efficiency[110]. Risk Management - The company faces raw material price fluctuation risks, particularly with sponge titanium, and will adjust inventory levels and strengthen supplier relationships to mitigate these risks[127]. - The company has implemented comprehensive measures to combat the ongoing COVID-19 pandemic, ensuring operational continuity and high-quality development[128]. - The company has emphasized strict production management and quality control to address potential risks in technology and product quality[125]. Investor Relations - The company plans to enhance investor relations management, ensuring timely and accurate information disclosure to build trust with investors[111]. - The company aims to improve the quality and transparency of annual report disclosures, facilitating two-way communication with investors[112]. - The company will maintain its website and investor relations section, ensuring up-to-date information is available for investors[115].