JUNZHENG(SH:601216)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥19.29 billion, representing a year-over-year increase of 30.39% compared to ¥14.80 billion in 2020[18]. - The net profit attributable to shareholders for 2021 was approximately ¥4.54 billion, a decrease of 5.79% from ¥4.82 billion in 2020[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 56.20% to approximately ¥4.28 billion in 2021 from ¥2.74 billion in 2020[18]. - The net cash flow from operating activities for 2021 was approximately ¥6.44 billion, an increase of 80.00% compared to ¥3.58 billion in 2020[18]. - The total assets at the end of 2021 were approximately ¥36.09 billion, reflecting a year-over-year increase of 7.16% from ¥33.68 billion at the end of 2020[18]. - The weighted average return on equity for 2021 was 21.06%, a decrease of 3.50 percentage points from 24.56% in 2020[19]. - The basic earnings per share for 2021 was ¥0.5376, down 5.78% from ¥0.5706 in 2020[19]. - The company achieved a revenue of 19.295 billion yuan, representing a year-on-year growth of 30.39%[26]. - The net profit attributable to shareholders reached 4.536 billion yuan, with a net profit excluding non-recurring items of 4.277 billion yuan[26]. - The total assets of the company increased to 36.092 billion yuan, marking a year-on-year growth of 7.16%[26]. Dividend Distribution - The company plans to distribute a cash dividend of 1.62 RMB per 10 shares, totaling approximately 1.37 billion RMB (including tax) based on a total share capital of 8,438,017,390 shares as of December 31, 2021[3]. - In 2021, the company distributed a cash dividend of 0.162 CNY per share, totaling 1,366,958,817.18 CNY to shareholders, with a net profit attributable to common shareholders of 4,536,074,324.33 CNY, resulting in a profit margin of 30.14%[172]. - The company reported a net profit attributable to common shareholders of 4,815,093,586.23 CNY in 2020, with a cash dividend of 0.30 CNY per share, reflecting a profit margin of 52.57%[172]. Audit and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[2]. - The company has ensured that all board members can guarantee the authenticity, accuracy, and completeness of the annual report[4]. - The company has confirmed that all board members attended the board meeting[2]. - The company has not reported any insider trading incidents or regulatory actions related to insider information during the reporting period[135]. - The company held 2 shareholder meetings, 8 board meetings, and 5 supervisory meetings during the reporting period, ensuring transparency and compliance with legal requirements[133]. - The company has revised its governance policies in line with the latest regulatory requirements, enhancing its internal control and management systems[133]. - The company reported no significant deficiencies in internal control during the reporting period, as confirmed by an independent audit[177]. Risk Management - The company has confirmed that there are no significant risks affecting its production and operations during the reporting period[5]. - The company has outlined various risks it may face in its production and operations, along with corresponding countermeasures[5]. - The company is proactively addressing industry policy risks by ensuring its equipment remains at the forefront of technology and efficiency[129]. - The company has conducted safety risk assessments and established a multi-level safety supervision system to reduce safety hazards and accident rates[130]. Production and Capacity - The production of polyvinyl chloride (PVC) was 855,700 tons, completing 102.08% of the annual plan, with a year-on-year increase of 1.39%[27]. - The company has a PVC production capacity of 800,000 tons, caustic soda capacity of 550,000 tons, and silicon iron capacity of 300,000 tons[33]. - The company’s PVC production capacity utilization rate reached 106.96% in 2021, with a designed capacity of 800,000 tons per year[98]. - The caustic soda project had a capacity utilization rate of 103.67% with a designed capacity of 550,000 tons per year[99]. - The company’s silicon iron project achieved a capacity utilization rate of 125.50% with a designed capacity of 300,000 tons per year[99]. Research and Development - Research and development expenses increased by 48.02% to 438.15 million RMB, driven by a focus on energy conservation and emission reduction technologies[44]. - The company emphasizes continuous technological innovation, with significant investments in R&D and collaboration with educational institutions to enhance its competitive edge[37]. - Research and development expenditures increased by 30%, totaling $150 million, to support new technology initiatives[144]. Environmental Sustainability - The company has committed to environmental sustainability, focusing on pollution prevention and resource recycling, with a total of 1,139.05 tons of sulfur dioxide emitted in 2021, well below the regulatory limit[181]. - The company has upgraded its pollution control facilities, ensuring that all emissions meet national standards and enhancing its clean production capabilities[182]. - The company achieved a 100% compliance rate for environmental impact assessments for new and modified projects, adhering to national regulations for waste management[183]. - The company has implemented an emergency response plan for environmental incidents, which has been filed with the local ecological environment bureau and includes regular drills and evaluations[184]. - The company has developed a self-monitoring plan for pollution emissions, and the monitoring results indicate that pollutant discharge concentrations meet national standards[185]. - The company has adopted ISO 14001 standards for its environmental management system and actively implements environmental protection laws and regulations[188]. Social Responsibility - The company donated 10 million yuan to local education foundations to support impoverished university students and improve educational conditions[193]. - The company contributed 180,000 yuan to local poverty alleviation foundations for infrastructure improvements in assisted areas[193]. - The company provided 83,000 yuan to the local Red Cross for educational support and health supplies for underprivileged children[193]. - The company emphasizes a commitment to sustainable development and social responsibility, aiming for harmonious growth with society[192]. - The company is actively involved in public welfare activities, including pandemic prevention efforts[192]. Strategic Initiatives - The company is investing 20.7 billion yuan in a new biodegradable plastic production project in Wuhai, with an annual capacity of 600,000 tons of BDO and 1 million tons of PBAT/PBS/PBT/PTMEG[28]. - The company aims to strengthen its existing energy and chemical industries while pursuing strategic investments and mergers in emerging industries[123]. - The company plans to continue promoting energy conservation and emission reduction efforts in 2022[192]. - The company is focused on clean and low-carbon transformation in the chlor-alkali chemical industry, optimizing production processes and improving energy utilization efficiency[94]. Employee Management - The total number of employees in the parent company and major subsidiaries is 5,852, with 3,410 in production, 239 in sales, 1,232 in technology, 201 in finance, and 770 in administration[166][167]. - The company has established a comprehensive compensation system based on market orientation, linking employee income to job positions, personal capabilities, and company performance[168]. - The company emphasizes a five-channel promotion system to support employee development and career growth[168]. - The company has implemented a systematic approach to training, targeting various employee groups to enhance overall organizational effectiveness[170]. Governance and Management - The company has established a centralized management model for its subsidiaries, ensuring compliance and effective oversight of financial and operational matters[175]. - The company has successfully launched its SAP information system and optimized other management systems, achieving integrated management across its subsidiaries[176]. - The total remuneration paid to all directors, supervisors, and senior management during the reporting period amounted to CNY 18.7459 million[147]. - The company’s remuneration for directors and senior management is based on their specific roles and contributions, with reference to industry and regional income levels[147].