NBSS(SH:600884)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 reached ¥20,699,382,624.28, a 151.94% increase compared to ¥8,215,896,691.46 in 2020[16]. - Net profit attributable to shareholders was ¥3,339,696,517.63, marking a significant increase of 2,320.00% from ¥138,004,106.09 in the previous year[16]. - The total assets at the end of 2021 were ¥40,288,469,003.76, reflecting a 64.17% increase from ¥24,540,658,795.91 in 2020[16]. - Basic earnings per share for 2021 were ¥2.040, a dramatic increase of 2,003.09% from ¥0.097 in 2020[17]. - The weighted average return on equity rose to 23.75%, an increase of 22.54 percentage points from 1.21% in 2020[17]. - The company reported non-recurring gains of ¥1,454,376,391.77 in 2021, compared to ¥301,787,703.06 in 2020[20]. - The total equity attributable to shareholders increased by 52.55% to ¥18,928,381,475.79 at the end of 2021 from ¥12,407,995,674.62 in 2020[16]. - The company's net cash flow from operating activities was negative at ¥-364,495,067.15, a decrease of 210.69% compared to ¥329,292,015.26 in 2020[16]. - The company achieved a substantial investment income of approximately $2.39 billion, a year-on-year increase of 514.96% from $389 million[75]. - The effective tax expense rose dramatically to approximately $1.10 billion, reflecting an increase of 1,812.51% compared to $58 million last year[75]. Dividend Policy - The company plans to distribute a cash dividend of RMB 3.3 per 10 shares, totaling RMB 707,163,579.54, which represents 21.17% of the net profit attributable to shareholders for 2021[4]. - The company has a cash dividend policy prioritizing stable and continuous returns to investors, with a preference for cash dividends when conditions allow[186]. - The company implemented a cash dividend policy, distributing at least 10% of the annual distributable profit in cash, with a cumulative cash distribution over the last three years not less than 30% of the average annual distributable profit[187]. - The company's profit distribution plan requires approval from two-thirds of the voting rights at the shareholders' meeting after independent directors provide their opinions[188]. - The company's cash dividend policy is subject to change only under significant circumstances such as natural disasters or major operational changes, requiring thorough justification and approval processes[189]. Market Position and Growth Strategy - The company plans to continue expanding its market presence and investing in new technologies to sustain growth in the upcoming years[16]. - The company is expanding its production capacity with the Inner Mongolia Baotou Phase II project, designed to reach a capacity of 60,000 tons, expected to be operational by Q3 2022[28]. - The company has established long-term partnerships with major battery manufacturers, including CATL and LGES, enhancing its market position[53]. - The company is focusing on expanding its market presence through new product development and strategic acquisitions in the LCD polarizer sector[99]. - The company aims to enhance its product competitiveness and market share by addressing technology gaps in small and medium-sized LCD polarizers compared to overseas competitors[60]. Research and Development - The company has a strong R&D capability, leveraging over 20 years of technology development in the polarizer field, leading to innovations in large-size, ultra-thin, and high-contrast polarizers[60]. - The company plans to increase R&D investment in 2022 to strengthen its competitive edge in large-size LCD panels and accelerate the development of high-end IT and OLED polarizer products[60]. - The company has developed several new anode materials, including high energy density and fast charging options, with some already in mass production[94]. - The company is committed to continuous technological innovation to mitigate risks associated with market competition and policy adjustments[149]. - The company is set to establish a research and development center in China to enhance its technological leadership and foster innovation[144]. Acquisitions and Investments - The company completed the acquisition of the LCD polarizer business, which contributed significantly to revenue and profit growth[76]. - The company successfully completed the acquisition of LG Chem's LCD polarizer business, enhancing its main business scope and significantly increasing revenue and profitability due to strong downstream market demand[117]. - The company has implemented comprehensive financial control measures for its subsidiaries, including appointing financial directors and establishing independent financial departments to enhance compliance and efficiency[119]. - The company has established governance structures for its subsidiaries, ensuring compliance with internal regulations and effective management of operations[119]. - The company invested a total of 1,247,593.40 thousand yuan in external investments during the reporting period, a significant increase of 733.77% year-on-year[109]. Operational Efficiency - The company has seen a significant improvement in overall operational efficiency through lean production and cost innovation measures, optimizing production and supply chain processes[39]. - The company has installed a total of 24 RTP production lines globally, leading in scale and production line quantity, which enhances operational efficiency and reduces costs[38]. - The company’s integrated production line project in Baotou, Inner Mongolia, has achieved full production capacity of 100,000 tons per year, leveraging local electricity cost advantages to reduce costs and improve gross margins[67]. - The company has divested non-core businesses, including the sale of its remaining stake in a financing leasing company and the completion of equity disposal in its energy storage operations[40]. - The company has developed a rapid raw material evaluation system, significantly shortening the time required to verify raw material quality, thus enhancing product delivery capabilities[65]. Risks and Challenges - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in the report[5]. - The company anticipates potential risks from policy changes and market competition, particularly in the lithium battery and polarizer sectors[147][148]. - The company acknowledges the potential challenge to its LCD polarizer business from emerging display technologies like OLED and Micro LED[151]. - The company is exposed to risks from the supply of polarizer raw materials, primarily sourced from Japanese and Korean companies, which could lead to operational uncertainties[150]. - The company faces foreign exchange risks due to international procurement and sales, involving currencies like USD and EUR[152]. Corporate Governance - The company adheres to corporate governance standards and has established a transparent performance evaluation and incentive mechanism for its executives[159]. - The company has conducted seven shareholder meetings in the reporting period, ensuring compliance with legal requirements and protecting shareholder rights[154]. - The company has a diverse board composition, including independent directors who contribute to governance[173]. - The company has maintained a consistent attendance record at board meetings, with no directors missing two consecutive meetings[173]. - The internal control audit report received a standard unqualified opinion, indicating effective internal control measures are in place[200].