EBEM(SH:603002)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was CNY 4,452,711,902.10, representing a 77.81% increase compared to CNY 2,504,199,868.15 in 2020[26]. - The net profit attributable to shareholders for 2021 was CNY 374,561,519.66, a 67.17% increase from CNY 224,061,830.36 in 2020[26]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 370,032,649.45, which is a 152.17% increase compared to CNY 146,737,074.94 in 2020[26]. - The company's total assets at the end of 2021 were CNY 4,555,618,143.56, a 32.19% increase from CNY 3,446,147,032.29 at the end of 2020[26]. - The basic earnings per share for 2021 was CNY 0.41, up 64.00% from CNY 0.25 in 2020[26]. - The weighted average return on equity for 2021 was 18.49%, an increase of 5.53 percentage points from 12.96% in 2020[26]. - The net cash flow from operating activities for 2021 was CNY 337,004,808.81, a slight increase of 4.77% from CNY 321,651,598.10 in 2020[26]. - The company achieved operating revenue of 4.45 billion RMB, an increase of 77.81% year-on-year[96]. - Net profit reached 374.56 million RMB, up 67.17% compared to the previous year, with earnings per share of 0.41 RMB[96]. - The total assets of the company increased to 4.56 billion RMB, a year-on-year growth of 32.19%[96]. - The company's weighted average return on equity was 18.49%, an increase of 5.53 percentage points year-on-year[96]. Dividend Distribution - The proposed profit distribution plan for 2021 is to distribute a cash dividend of RMB 2.90 per 10 shares, totaling approximately RMB 262.12 million, which accounts for 69.98% of the net profit attributable to shareholders of RMB 374.56 million[6]. - The company has confirmed that there are no risks related to the inability of the majority of directors to guarantee the authenticity and completeness of the annual report[8]. Audit and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the authenticity and completeness of the financial report[5]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[8]. - The company emphasizes that forward-looking statements regarding future plans do not constitute substantive commitments to investors, highlighting the importance of investment risk awareness[7]. - The company published 4 periodic reports and 75 temporary announcements in 2021, maintaining transparency and accuracy in information disclosure[187]. - No significant internal control deficiencies were found during the reporting period, with all identified general deficiencies addressed in a timely manner[187]. - The company has updated its internal control systems, ensuring compliance with relevant regulations and improving governance practices[187]. Research and Development - The company is focused on developing electronic-grade epoxy resins, which meet high purity and performance stability requirements for the electronics industry[16]. - The company has applied for a total of 10 patents across various new resin developments, indicating a strong focus on innovation in the 5G materials sector[51]. - The company has established a research and development center for electronic-grade epoxy resin in 2013 and holds 28 invention patents as of the end of 2021[136]. - The company launched 6 new products during the reporting period and has 20 ongoing R&D projects, with 7 newly initiated[117]. - The company has 141 R&D personnel, making up 22.89% of the total workforce, with 9 invention patents applied for and 2 granted during the reporting period[116][117]. Market and Industry Trends - The epoxy resin market has seen increased demand due to the rise in downstream electronic terminal products and wind turbine blade installations, leading to a price increase and robust demand[65]. - The copper-clad laminate industry is experiencing a stable competitive landscape, with significant demand from sectors such as consumer electronics, communication equipment, and automotive electronics[66]. - The global PCB market value reached $65.22 billion in 2020 and is expected to increase to $86.33 billion by 2025, with China's PCB market projected to grow from $35.05 billion in 2020 to $46.04 billion in 2025[166]. - As of the end of 2021, China had built and activated 1.425 million 5G base stations, establishing the world's largest 5G network, which will drive demand for high-frequency and high-speed copper-clad laminates[167]. - In 2021, domestic production and sales of new energy vehicles reached 3.545 million and 3.521 million units, respectively, representing a year-on-year growth of 160%[168]. Corporate Governance - The company held 3 shareholder meetings during the reporting period, ensuring compliance with legal requirements and allowing all shareholders, especially minority shareholders, to exercise their voting rights[184]. - The board of directors convened 12 times, with independent directors actively participating and providing valuable insights on related party transactions and profit distribution plans[184]. - The supervisory board met 5 times, overseeing the legality and compliance of the company's operations and management[184]. - The company revised its articles of association during the 2021 first extraordinary general meeting, with over two-thirds of voting rights in favor[192]. - The 2020 annual general meeting approved 13 proposals, all receiving more than half of the voting rights in favor, including the annual financial report and related party transactions[192]. Production and Operations - The company is constructing a new epoxy resin production project with a planned annual capacity of 140,000 tons, following the approval of investment project registration[45]. - The production of epoxy resin is primarily automated, with a focus on planned production based on sales forecasts, while copper-clad laminates are produced based on specific customer orders[77]. - The company has a designed capacity of 15.5 million tons per year at its Zhuhai plant, with a capacity utilization rate of 90.32%[142]. - The company is expanding its production applications in the high-frequency and high-speed product sectors to strengthen its competitive advantage[174]. Financial Management - The total operating cost for the period was CNY 3,803,287,113.84, representing an 80.87% increase compared to CNY 2,102,827,934.36 in the same period last year[108]. - The cost of epoxy resin was CNY 2,494,450,888.15, accounting for 65.59% of total costs, while the cost of copper-clad laminates/semi-cured sheets was CNY 1,308,836,225.69, accounting for 34.41%[108]. - The company reported a gross margin of 14.58% for its main business, a decrease of 1.45 percentage points compared to the previous year[103]. - The company has a stable supply of high-quality raw materials from leading manufacturers, ensuring consistent product quality and performance[95]. - The company’s epoxy resin business benefits from a direct sales model, allowing for quick adjustments to pricing based on raw material costs and market conditions[81]. Environmental and Safety Standards - The company is committed to high environmental standards and is focused on developing high-end, green, and environmentally friendly products[132]. - The company has invested in safety and environmental protection measures in response to national policies on carbon neutrality and safety production[131]. - The company is committed to environmental safety and compliance, which may increase operational pressures and costs[176].