HWASU(SH:600935)2023-04-25 16:00Financial Performance - The net profit for 2022 was CNY 422,116,538.02, a decrease of 46.26% compared to the previous year, primarily due to falling market prices of main products and rising costs of bulk raw materials [21]. - The company reported a total comprehensive income of approximately CNY -832.77 million for the year [130]. - The total comprehensive income for 2022 was CNY 370,733,898.49, compared to CNY 832,767,555.36 in the previous year [183]. - The company's net profit for 2022 was CNY 422,116,538.02, with a net profit attributable to shareholders of CNY 422,116,538.02, representing a 30.74% payout ratio for cash dividends [178]. - The net profit after deducting non-recurring gains and losses was approximately ¥388.96 million, down 52.10% from ¥812.07 million in the previous year [41]. - The total operating revenue for the company was CNY 6,730,797,763.45, with a slight decrease of 0.02% compared to the previous year [82]. - The company's total assets at the end of 2022 were approximately ¥8.96 billion, down 1.85% from ¥9.13 billion at the end of 2021 [41]. - The total liabilities and equity at the end of the period amounted to 6,479,272,759.57, reflecting the company's financial stability [163]. Cash Flow and Dividends - The company plans to distribute a cash dividend of CNY 0.37 per share, totaling CNY 129,773,867.04, which represents 30.74% of the net profit attributable to shareholders [28]. - The net cash flow from operating activities was approximately ¥951.07 million, a decrease of 20.7% from ¥1.20 billion in 2021 [95]. - The company reported a net cash flow from investing activities of approximately -¥471.48 million in 2022, compared to -¥124.75 million in 2021 [97]. - The company’s financing activities resulted in a net cash outflow of approximately -¥1.03 billion in 2022, compared to -¥40.34 million in 2021 [97]. - The cash flow from operating activities was CNY 4,808,376,947.79 in 2022, compared to CNY 4,616,585,105.06 in 2021 [186]. - The company has not made any adjustments to its cash dividend policy for the reporting period [197]. Revenue and Sales - In Q4 2022, the revenue was CNY 1,439,985,281.80, with a significant drop in net profit attributable to shareholders, which was CNY -36,026,845.23 [23]. - The company reported a total revenue of CNY 1,752,734,612.95 in Q1 2022, which decreased to CNY 1,544,479,222.69 in Q3 2022 [23]. - The total revenue from operating activities in 2022 was CNY 4,732,291,173.37, an increase from CNY 4,594,371,138.78 in 2021 [186]. Research and Development - Research and development expenses for the year amounted to approximately ¥229.94 million, accounting for 3.41% of operating revenue [62]. - The company employed 477 R&D personnel, representing 19.24% of the total workforce [62]. Governance and Management - The company has established a comprehensive governance framework, including 32 governance systems, to enhance its governance capabilities [114]. - The company has a governance structure in place, with a clear outline of the roles and remuneration of board members and senior management [142]. - The company completed the election of the fifth board of directors and the fifth supervisory board, with key members including Zhao Shitong, Zhao Kai, and Wu Weixiao [151]. - The company has a structured remuneration decision-making process involving a remuneration and assessment committee [155]. - The company has implemented standardized processes for board meetings and profit distribution to enhance operational efficiency [114]. Market and Industry Insights - The gross profit margin decreased due to falling prices of PVC and cement, while the demand for caustic soda remained strong, supporting higher prices [53]. - The total operating revenue for the basic chemical raw materials manufacturing industry was CNY 5,384,172,106.60, with a year-over-year decrease of 1.59% [81]. - The total operating revenue for the mining industry was CNY 640,074,553.91, with a year-over-year increase of 9.31% [81]. - The chlor-alkali industry in China aims for a production capacity utilization rate of over 85% for key products like caustic soda and PVC by the end of the 14th Five-Year Plan [90]. Environmental and Safety Measures - The company is committed to enhancing its risk management and environmental protection measures, adhering to strict safety protocols and carbon emission controls [111]. - The company is actively addressing environmental issues and improving ecological conditions as part of its operational strategy [111]. - The company has implemented a training program focusing on safety, environmental protection, and skill enhancement to improve workforce quality in 2022 [176]. Future Plans and Strategies - The company plans to focus on high-quality development in the chlor-alkali sector and expand into new industries such as acetylene chemicals and organic silicon materials [111]. - The company plans to implement a profit-sharing scheme for the years 2022-2024, which has been recognized as a typical reform experience by the Anhui State-owned Assets Supervision and Administration Commission [114]. - The company aims to ensure full-load production of key products like calcium carbide, PVC, caustic soda, and cement to meet production targets [139]. - The company plans to implement a new project with an annual production capacity of 120,000 tons of biodegradable materials [193]. Employee and Remuneration - The total pre-tax remuneration for the board and senior management in 2022 amounted to 754.74 million yuan [148]. - The chairman and general manager each received a pre-tax remuneration of 92.26 thousand yuan in 2022 [147]. - The independent directors received a pre-tax remuneration of 6.00 thousand yuan each in 2022 [147]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 7.5474 million yuan [155].