ZJHM(SH:600987)2022-04-20 16:00Financial Performance - The net profit attributable to the parent company for 2021 was CNY 666,605,376, with a cash dividend distribution of CNY 315,245,657.70, representing 47.29% of the net profit[7]. - The total distributable profit for shareholders was CNY 4,016,744,046.96 after accounting for various allocations[7]. - The cash dividend for 2021 was CNY 3 per 10 shares, with a total cash distribution of CNY 480,676,253.73, which is 72.11% of the net profit attributable to shareholders[7]. - The company plans to carry forward the remaining undistributed profits to the next fiscal year[7]. - The company's operating revenue for 2021 was approximately CNY 9.49 billion, representing an increase of 81.38% compared to CNY 5.23 billion in 2020[25]. - Net profit attributable to shareholders for 2021 was CNY 666.61 million, a 10.87% increase from CNY 601.23 million in 2020[25]. - The net cash flow from operating activities decreased by 40.77% to CNY 626.62 million in 2021 from CNY 1.06 billion in 2020[25]. - The total assets at the end of 2021 were CNY 7.89 billion, up 5.62% from CNY 7.47 billion at the end of 2020[25]. - The company's net assets attributable to shareholders increased by 5.47% to CNY 5.46 billion at the end of 2021 compared to CNY 5.18 billion at the end of 2020[25]. - Basic earnings per share for 2021 were CNY 0.62, reflecting a 10.71% increase from CNY 0.56 in 2020[25]. - The weighted average return on equity for 2021 was 12.37%, an increase of 0.30 percentage points from 12.07% in 2020[25]. - The company reported a total of CNY 62.00 million in non-recurring gains and losses for 2021, compared to CNY 50.02 million in 2020[30]. - The company achieved a total revenue of CNY 9,491,158,604.55, representing a year-on-year growth of 81.38%[53]. - The operating profit for the year was CNY 86,976,000, reflecting a growth of 9.58% compared to the previous year[53]. - The net profit attributable to the parent company was CNY 66,661,000, which is a 10.87% increase year-on-year[53]. Shareholder Returns - The company has implemented a share repurchase amounting to CNY 165,430,596.03, which is included in the cash dividend calculation[7]. - The company repurchased and canceled 29,999,982 shares to enhance investor confidence[35]. - The company distributed a cash dividend of 2 RMB per 10 shares, totaling 216,163,768.20 RMB, which was implemented on June 7, 2021[154]. Business Operations - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[34]. - In 2021, the company's dyeing business revenue reached 355.84 million yuan, a year-on-year increase of 37.60%[43]. - The total profit for the dyeing business was 58.51 million yuan, up 35.61% compared to the previous year[43]. - The company's R&D expenditure amounted to 17.4 million yuan, reflecting a focus on innovation-driven growth[35]. - The company completed the digital transformation of its dyeing plant, utilizing digital twin technology for real-time production monitoring[35]. - The production volume of dyed fabric increased by 15.07% year-on-year, while sales volume rose by 13.60%[60]. - The inventory of dyed fabric grew significantly by 49.21% compared to the previous year, attributed to regular stocking after the stabilization of business operations post-COVID-19[60]. - The production and sales of gold jewelry saw substantial increases, with production up by 78.95% and sales up by 74.45% year-on-year, leading to a higher inventory level[60]. Market Trends - The overall revenue of the dyeing industry in China was 294.99 billion yuan, increasing by 15.06% year-on-year[38]. - The total output of dyed fabric in China reached 60.58 billion meters in 2021, with a year-on-year growth of 11.76%[38]. - The domestic gold jewelry consumption in China reached 1,120.90 tons in 2021, a year-on-year increase of 36.53%[39]. - The company’s gold jewelry processing volume ranked first in East China and among the top three nationwide[39]. - The company’s gold jewelry sales volume reached 65.57 tons, a year-on-year increase of 74.07%[44]. - Revenue from gold jewelry sales amounted to 516.725 million yuan, representing a year-on-year growth of 171.63%[44]. - The wholesale business revenue increased by 316.359 million yuan, a year-on-year growth of 178.92%[44]. Research and Development - The company has a total of 942 R&D personnel, accounting for 10.26% of the total workforce[71]. - The R&D team consists of 3 master's degree holders, 56 bachelor's degree holders, and 638 with associate degrees, with no PhD holders[71]. - The company’s R&D expenses rose by 25.32% to CNY 174,030,554.94, indicating a focus on innovation and product development[54]. - Total research and development expenses amounted to ¥174,030,554.94, representing 1.83% of total operating revenue[68]. Environmental Responsibility - The company has been recognized as the first in the Chinese printing and dyeing industry to obtain EU carbon footprint certification, demonstrating its commitment to low-carbon energy[175]. - The company has implemented a comprehensive environmental management system, including pollution prevention and emergency response plans, to enhance its environmental protection capabilities[171]. - The company has successfully implemented a zero direct discharge of wastewater initiative in its industrial park, adhering to provincial standards[169]. - The company’s wastewater treatment and flue gas desulfurization projects have been recognized as key national environmental protection demonstration projects[176]. - The company has developed a robust online monitoring system for pollutant emissions, ensuring real-time data tracking and compliance with environmental regulations[172]. Governance and Compliance - The board of directors and management have confirmed the accuracy and completeness of the financial report, ensuring no significant omissions or misleading statements[4]. - The company has established a strong governance structure, with independent directors providing oversight and strategic guidance[128]. - The company has implemented performance evaluation and incentive mechanisms for senior management to align strategic goals with operational actions[111]. - The company maintains independence from its controlling shareholder in various aspects, ensuring independent decision-making[112]. - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company funds[108]. - The company has no independent directors who have raised objections to company matters during the reporting period[144]. Challenges and Risks - The company faces challenges such as increasing policy constraints, energy consumption control, and a lag in talent development[106]. - The dyeing industry is expected to encounter trade friction, environmental constraints, and market homogenization[106]. - The gold jewelry sector is affected by price fluctuations and weak consumer demand due to insufficient purchasing power[106]. Strategic Initiatives - The company aims to strengthen its dual main business strategy in "textile dyeing + gold jewelry" and enhance profitability through industrial synergy[102]. - The company plans to accelerate the construction of the second phase of the gold jewelry fashion industrial park[103]. - The company is committed to digital and intelligent workshop construction, leveraging successful practices from its dyeing plant and Dami company[103].