Fynex Textile(SH:600493)2022-04-15 16:00Financial Performance - The company achieved a total revenue of ¥1,301,955,874.40 in 2021, representing a 24.03% increase compared to ¥1,049,746,676.39 in 2020[22]. - The net profit attributable to shareholders was ¥73,194,678.84, a significant increase of 147.05% from ¥29,627,686.74 in the previous year[22]. - The basic earnings per share rose to ¥0.2691, reflecting a 147.11% increase compared to ¥0.1089 in 2020[23]. - The company plans to distribute a cash dividend of ¥0.808 per 10 shares, amounting to a total of ¥21,977,600 (including tax) based on a total share capital of 272,000,000 shares[6]. - The cash dividend payout ratio for the year was 30.03%, calculated as the total cash dividends distributed relative to the net profit attributable to shareholders[6]. - Total assets increased by 10.57% to ¥2,112,810,074.45 at the end of 2021, compared to ¥1,910,833,283.78 at the end of 2020[22]. - The company's net assets attributable to shareholders reached ¥835,451,790.37, an 8.93% increase from ¥766,934,916.39 in the previous year[22]. - The operating cash flow net amount decreased by 42.05% to ¥75,007,031.13 from ¥129,428,197.45 in 2020[22]. - The total amount of non-recurring gains and losses for 2021 was approximately 21.35 million RMB, significantly higher than the previous year's 9.41 million RMB[26]. - The company reported a net cash flow from operating activities of ¥75,007,031.13, a decrease of 42.05% compared to ¥129,428,197.45 in the previous year[67]. Investment and Development - The company has invested in advanced low-bath ratio intelligent equipment to improve product quality and reduce energy consumption, aiming for industry-leading technology levels[30]. - The company has established a new production line at the Antong new plant, which has begun operations and is expected to enhance production capacity and efficiency[30]. - The company is investing in modernizing its dyeing factories to become a benchmark in the industry, emphasizing smart and green technologies[48]. - The company completed the construction of the new factory in An Dong, which is expected to enhance production capacity and market share[104]. - The total investment for the An Dong new factory project was approximately CNY 850,000,000.00[103]. - The company is actively negotiating with government departments to facilitate the relocation of its old factory[104]. - The investment for the "Henan Fengzhu (Anyang) 30,000 tons printing and dyeing project" is estimated to be around 300 million RMB, with the main structure of the dyeing workshop already capped and currently undergoing decoration[107]. Market and Industry Trends - The textile industry is facing challenges and opportunities due to high-end technology and environmental requirements, alongside the impacts of the COVID-19 pandemic[34]. - The new import tariff adjustments effective from January 1, 2021, aim to promote high-quality development in the textile and apparel sectors[35]. - The implementation of the new "Pollutant Discharge Permit Management Regulations" starting March 1, 2021, emphasizes the importance of environmental management in industrial production[36]. - The company is expected to benefit from the Regional Comprehensive Economic Partnership (RCEP), which will enhance trade scale and deepen supply chain cooperation in the textile industry[38]. - The "14th Five-Year Plan" for the textile industry emphasizes high-quality development focusing on technology, fashion, and sustainability[39]. - The company recognizes the importance of domestic demand as a strategic base for industry development, aiming to enhance supply quality and efficiency to address external uncertainties[115]. - The digital economy is shifting focus from consumer internet to industrial internet, requiring the textile industry to adapt to more complex application scenarios[116]. Environmental and Sustainability Initiatives - The company is committed to green manufacturing practices, adhering to national environmental policies and implementing clean production processes[48]. - The company has invested a total of RMB 1,360.93 million in pollution control measures in 2021, an increase of RMB 419.78 million from 2020[174]. - The company has constructed wastewater treatment facilities with a capacity of 25,000 tons/day and 13,000 tons/day, both operating effectively and meeting environmental standards[172][173]. - The company has received multiple environmental honors, including being recognized as a "National Clean Production Demonstration Enterprise" and a "National Circular Economy Pilot Enterprise"[182]. - The company has established a photovoltaic power generation facility with an expected capacity of 6.5 MW, aiming for an annual output of 7 million kWh[184]. - The company has implemented a wastewater reuse rate of over 50%, achieving advanced levels in the industry[184]. - The company has developed a waste heat recovery system for its heat-setting machines, contributing to energy savings and efficiency improvements[182]. Corporate Governance and Management - The company has maintained a transparent and effective governance structure, aligning with legal and regulatory standards[168]. - The company has established various management systems, including shareholder meeting rules and information disclosure management, to ensure compliance and transparency[134]. - The company has implemented a robust internal control system to manage risks and ensure compliance with regulatory requirements[134]. - The company has a comprehensive shareholder return plan for 2020-2022, focusing on dividends and capital appreciation[134]. - The company has appointed new executives including Chen Qiang as Chairman and Chen Chengqing as General Manager due to internal restructuring[146]. - The company has a long-term commitment to not transfer or reduce its shareholdings within three years of the control period[188]. Research and Development - The company has focused on technological innovation and environmental sustainability, aligning with national policies on energy conservation and emission reduction[32]. - Research and development expenses increased by 28.13% to RMB 25,464,364.64, reflecting a rise in direct material inputs for R&D[67]. - The total R&D expenditure for the period amounted to ¥25,464,364.64, representing 1.96% of the operating revenue[86]. - The company developed several new fabric technologies in 2021, including anti-mite knitted fabric and hyaluronic acid blended fabric, targeting health-conscious consumer markets[60][61]. - Ongoing research and development efforts are focused on innovative textile technologies, with a budget allocation of 5 million RMB for the next year[140]. Challenges and Risks - The company is facing pressures from rising raw material prices and geopolitical tensions affecting the textile industry[44]. - The company recognizes potential risks from international trade tensions and the ongoing impact of the COVID-19 pandemic on the textile industry[123]. - The company faced risks from energy price fluctuations, particularly due to large-scale production limits and electricity restrictions during the reporting period[125]. - The RMB appreciated by 2.6% against the USD over the year, with the highest exchange rate at 6.35 and the lowest at 6.57, indicating potential volatility in the foreign exchange market[125]. Future Outlook - The company aims for a revenue target of 1.4 billion and a cost target of 1.18 billion for 2022[122]. - The company plans to enhance its production quality management system and ensure product quality compliance[120]. - The company will focus on expanding its overseas market share, targeting major clients as key growth points for export business[120]. - The company is committed to increasing investment in environmental protection facilities and adopting clean production processes[120]. - The company intends to strengthen new product development and maintain continuous growth in technology investment[120]. - The company will actively monitor international market dynamics and adjust strategies to maintain competitiveness[119].