EBEM(SH:603002)2023-04-19 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥3.02 billion, a decrease of 32.12% compared to ¥4.45 billion in 2021[22]. - Net profit attributable to shareholders increased by 48.65% to approximately ¥556.78 million from ¥374.56 million in the previous year[22]. - Basic earnings per share rose by 51.22% to ¥0.62, while diluted earnings per share also increased to ¥0.62[23]. - The net cash flow from operating activities significantly decreased by 85.27% to approximately ¥49.63 million from ¥337.00 million in 2021[22]. - Total assets decreased by 21.02% to approximately ¥3.60 billion from ¥4.56 billion in 2021[22]. - The company's net assets attributable to shareholders increased by 17.99% to approximately ¥2.46 billion compared to ¥2.08 billion in 2021[22]. - The weighted average return on equity rose to 24.99%, an increase of 6.50 percentage points from 18.49% in 2021[23]. - Non-recurring gains and losses amounted to approximately ¥420.21 million in 2022, significantly impacting net profit[27]. - The cash flow from operating activities showed a negative trend in the last two quarters, indicating potential liquidity challenges[24]. - The gross profit margin for the main business was 8.69%, a decrease of 5.47 percentage points year-on-year[94]. Investment and Projects - The company plans to invest in projects such as the second phase of Zhuhai Hongchang Electronic Materials Co., Ltd. and an annual production of 80,000 tons of electronic-grade functional epoxy resin[13]. - The company plans to raise up to RMB 150,000,000.00 through a non-public offering of A-shares, with the funds allocated to various projects including the expansion of production capacity for epoxy resin and copper-clad laminates[37][39]. - The company is constructing a project with a total investment of CNY 779.25 million, aiming for an annual production capacity of 140,000 tons of liquid epoxy resin to meet market demand in the electronics sector[43]. - The second phase of the project has a construction period of 24 months and is expected to enhance the company's competitive edge in the market[43]. - The third phase of the project, with a total investment of CNY 420.99 million, aims to produce 80,000 tons of electronic-grade functional epoxy resin, further expanding the company's production capacity[45]. Market and Industry Trends - The epoxy resin market demand was weak in 2022 due to sluggish end-market demand, new capacity coming online, geopolitical conflicts, and rising global inflation[64]. - The global smartphone shipment volume in 2022 was approximately 1.21 billion units, a year-on-year decrease of 11.3%, while China's smartphone market shipment volume was about 286 million units, down 13.2% year-on-year[66]. - The copper-clad laminate (CCL) industry is experiencing a stable competitive landscape, with increased production capacity and technological advancements driven by the growth of 5G and artificial intelligence[65]. - The new energy vehicle market in China saw production and sales of 7.058 million and 6.887 million units in 2022, respectively, marking a year-on-year growth of 96.9% and 93.4%, further increasing the demand for copper-clad laminates[155]. Research and Development - The company has established a research and development center for electronic-grade epoxy resin, holding 38 invention patents and 85 non-patented technologies as of the end of 2022[119]. - The company has developed new resin products, including a new generation of polyether resin for high-temperature and high-humidity applications, which is currently in the evaluation stage with end customers[50]. - The company is actively pursuing the development of halogen-free phosphorus-containing polyether resin, which has already received domestic patent authorization in the first half of 2022[50]. - The company has completed product optimization and application evaluation for its ultra 5G resin, with plans for customer evaluation and certification in 2023[50]. - Eight new products were developed in the epoxy resin segment during the reporting period, with a total of 20 ongoing research projects[105]. Governance 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 has a commitment to maintaining high standards of financial reporting and governance, as evidenced by the attendance of all board members at the meeting[4]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective decision-making and oversight[166]. - The company held 2 shareholder meetings and 9 board meetings during the reporting period, ensuring compliance with governance protocols[167][169]. - The company published 4 periodic reports and 60 temporary announcements in 2022, maintaining transparency and accuracy in information disclosure[171]. Shareholder Relations and Remuneration - The company plans to implement a shareholder return plan for the next three years (2022-2024) as part of its future strategy[176]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period was 12.83 million yuan[182]. - The company emphasizes the importance of maintaining harmonious investor relations through multiple communication channels[174]. - The company has a cash dividend policy that prioritizes cash dividends, with a minimum distribution of 30% of the distributable profits for the year, provided that the company has positive distributable profits and sufficient cash flow[200]. Risks and Challenges - The company's overall performance has been impacted by geopolitical conflicts and global inflation, leading to reduced demand in the epoxy resin and copper-clad laminate markets[30]. - The company faces risks from fluctuations in raw material prices and changes in downstream industry demand, particularly in the epoxy resin and copper-clad laminate sectors[160]. - The company is addressing risks related to high customer concentration in the copper-clad laminate business, focusing on diversifying its customer base and optimizing product structure[163].