HAINAN RUBBER GROUP(SH:601118)2022-04-10 16:00Financial Performance - The company reported a total revenue of CNY 15,332,748,358.20, a decrease of 2.61% compared to 2020[17]. - The net profit attributable to shareholders of the listed company was CNY 150,763,920.24, an increase of 111.99% from the previous year[17]. - The net cash flow from operating activities was CNY 266,185,970.86, down 43.31% from 2020[17]. - The total assets at the end of 2021 were CNY 19,481,004,987.52, an increase of 9.83% compared to the end of 2020[17]. - The basic earnings per share for 2021 was CNY 0.0352, up 112.05% from 2020[18]. - The weighted average return on net assets was 1.57%, an increase of 0.84 percentage points from the previous year[18]. - The company achieved a total revenue of CNY 15,332,748,358.20, a decrease of 2.61% compared to the previous year[34]. - The net profit attributable to shareholders was CNY 150,763,900, while the net profit after deducting non-recurring gains and losses was CNY -233,000,000, a decrease of CNY 144,000,000 year-on-year[34]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2021, representing a growth of 20% year-over-year[84]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2021, representing a growth of 20% compared to the previous year[85]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.106 per 10 shares, totaling RMB 45,361,934.65, based on a total share capital of 4,279,427,797 shares as of the end of 2021[3]. - The company has not proposed any stock bonus or capital increase from reserves for this reporting period[3]. - The profit distribution amount for the year 2020 was 23,964,808.50 yuan, reflecting the company's commitment to shareholder returns[129]. - For the year 2021, the proposed cash dividend is RMB 0.106 per 10 shares, amounting to RMB 45,361,934.65, representing 30.09% of the net profit attributable to shareholders[105]. Risk Management - There are no significant risks affecting the company's ongoing operations during the reporting period[5]. - The company has detailed its risk management strategies in the management discussion and analysis section of the report[5]. - Risk management strategies include optimizing financial and legal oversight, particularly in rubber trading and overseas operations, to mitigate potential risks[69]. - The company acknowledges risks from natural disasters, market price fluctuations of natural rubber, and ongoing global pandemic challenges affecting production and trade[69]. Corporate Governance - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report as stated by its management[2]. - The company has received a standard unqualified audit report from Zhongchao Zhonghuan Accounting Firm[2]. - The board of directors has consistently approved all proposed resolutions during the shareholder meetings, demonstrating effective governance[75]. - The company’s governance structure complies with relevant laws and regulations, ensuring the legality and validity of the resolutions passed during the meetings[76]. - The company is focused on compliance and governance improvements following the regulatory actions taken against it[92]. Shareholder Engagement - The company managed to secure 64.48% of voting shares represented at the first extraordinary general meeting held on January 25, 2021[75]. - At the 2020 annual general meeting on April 20, 2021, 65.81% of voting shares were represented, indicating strong shareholder engagement[75]. - The second extraordinary general meeting on August 19, 2021, had 65.58% of voting shares represented, reflecting continued shareholder participation[75]. - The company held its third extraordinary general meeting on October 15, 2021, with 2,758,589,663 shares represented, accounting for 64.4616% of the total voting shares[76]. - The fourth extraordinary general meeting took place on December 29, 2021, with 2,768,281,024 shares represented, which is 64.6881% of the total voting shares[76]. Operational Efficiency - The company’s cash flow from operating activities was CNY 266,185,970.86, a decrease of 43.31% compared to the previous year[35]. - The company’s R&D expenses decreased by 9.1% to CNY 27,354,459.32, reflecting reduced investment in research[35]. - The company’s financial derivative business investment limit for 2021 was approved in the meetings held on March 29, 2021[100]. - The company has implemented measures to reduce carbon emissions by improving production lines, resulting in decreased energy and water consumption per ton of product[126]. Market Position and Industry Trends - The company is the largest natural rubber producer in China, with a leading plantation area and management level in the industry[26]. - In 2021, the company processed 190,000 tons of rubber, a year-on-year increase of 33.8%[26]. - Global natural rubber production in 2021 was approximately 13.812 million tons, a year-on-year increase of 1.6%[28]. - Global natural rubber consumption in 2021 reached about 14.079 million tons, a year-on-year increase of 8.7%[29]. - The company is a major supplier of natural rubber to the top ten tire manufacturers globally, highlighting its significant market position[33]. Environmental Management - The company has implemented a zero discharge policy for wastewater at certain processing plants, ensuring all treated wastewater is reused[114]. - The company has established a comprehensive environmental management system, with specific measures for pollution control and compliance with environmental regulations[114]. - All 16 rubber processing plants have established complete wastewater and waste gas treatment facilities, operating continuously during production[120]. Legal and Compliance Issues - The company is involved in multiple lawsuits, with claims totaling approximately RMB 106.25 million related to overdue capital contributions from Hainan Huayang Investment Group[142]. - A lawsuit against Hong Kong Davi Limited seeks RMB 30 million in damages for delayed transfer of 100% equity in Davi Natural Rubber (Yunnan) Co., Ltd.[142]. - The company has reported potential impacts on current and future profits due to ongoing litigation, with actual effects dependent on court rulings[142]. - The company received a corrective measure order from the China Securities Regulatory Commission on January 17, 2022, requiring a detailed rectification plan[143]. Employee Engagement and Training - The total number of employees in the parent company and major subsidiaries is 16,214, with 10,527 in production, 1,315 in technology, and 4,088 in administration[102]. - The company conducted 1,588 training sessions in 2021, including 5 sessions on party history education with 558 participants[104]. - The company achieved a "zero" infection target for over 16,000 employees during the pandemic in 2021[128]. - The company organized training for 1,588 employees in 2021, including 5 sessions of party history education with 558 participants[128]. Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 25% based on current market trends and user acquisition strategies[84]. - The company plans to enhance rubber plantation management and increase production capacity through mechanization and high standards for rubber garden construction[67]. - The company anticipates that the automotive and tire industries will experience recovery growth in 2022, leading to a slight increase in global natural rubber consumption[64]. - In 2022, the company aims for a revenue growth of 15% year-on-year, targeting a production of 116,000 tons of dry rubber and a trade volume of 1.4 million tons[67].