Lushan New Materials(SH:603051)2023-04-28 16:00Financial Performance - The company's operating revenue increased by 54.63% to CNY 2.62 billion in 2022, driven by strong sales of solar film products[19]. - Net profit attributable to shareholders decreased by 33.74% to CNY 74.85 million, while net profit excluding non-recurring gains and losses fell by 48.17% to CNY 53.22 million[19]. - The weighted average return on equity dropped to 6.42%, down 9.75 percentage points from the previous year[19]. - The company reported a significant increase in total assets, rising by 82.56% to CNY 2.49 billion, primarily due to new share issuance and business expansion[19]. - Cash flow from operating activities showed a negative net amount of CNY -691.36 million, largely due to increased working capital needs[19]. - Basic and diluted earnings per share fell by 46.95% to CNY 0.87, reflecting the decline in net profit[19]. - The company achieved a revenue of 2.618 billion yuan, representing a year-on-year growth of 54.63%[28]. - The company reported a non-recurring profit of 21.63 million yuan for the reporting period, compared to 10.29 million yuan in the previous year[24]. Dividend Policy - The company plans to distribute a cash dividend of 4.0 RMB per 10 shares, totaling approximately 37.33 million RMB, which represents 49.87% of the net profit attributable to shareholders for 2022, amounting to 74.85 million RMB[5]. - The cash dividend distribution will account for 49.87% of the net profit attributable to ordinary shareholders in the consolidated financial statements[183]. - The company has established a stable profit distribution policy, ensuring that cash dividends will not be less than 10% of the distributable profits for the year if there are no major investment plans[174]. - In the case of significant capital expenditures, the cash dividend ratio will be at least 40% for mature companies with major expenditures[175]. - The company has not proposed any stock dividends for the year 2022, focusing solely on cash dividends[183]. - The cash dividend policy has been executed in accordance with the company's articles of association and shareholder resolutions, ensuring transparency and protection of minority shareholders' rights[179]. - The company has outlined a three-year shareholder return plan for 2022-2024 to enhance dividend distribution transparency[177]. Corporate Governance - The company has established a governance structure that includes a board of directors with 5 members, ensuring compliance with legal requirements and protecting shareholder rights[135]. - The company has implemented measures to prevent the controlling shareholder from occupying company funds, enhancing financial governance[158]. - The company has a total of 668 employees, with 324 in production, 53 in sales, 108 in technology, 18 in finance, and 165 in administration[170]. - The company has established an investor relations management system, with the board secretary designated as the responsible person for investor communications[138]. - The company is committed to improving its governance structure in accordance with the Company Law and Securities Law, promoting sustainable and high-quality development[138]. - The company has received high-tech enterprise certification, which provides a 15% corporate income tax rate benefit, but risks losing this status after the certification period ends[130]. - The company has not faced any objections from directors regarding company matters during the year, indicating a unified board[162]. Research and Development - The company has implemented a restricted stock incentive plan, which contributed to increased expenses in 2022[21]. - The company is actively pursuing research and development in new markets, including optoelectronic displays, lithium batteries, and hydrogen fuel cells[32]. - The company has developed differentiated products for various applications, including solar cell packaging and high-barrier packaging for food and pharmaceuticals[64]. - The company is investing in new technologies, with a budget of 100 million yuan dedicated to R&D for advanced materials[149]. - The company is increasing investment in R&D to enhance product competitiveness, focusing on differentiated products in solar cell packaging films and planning to launch OCA optical adhesive film production in the second half of 2023[123]. - The company has established multiple research and development platforms, enhancing its technological innovation capabilities[62]. - The company has a focus on technological development, as indicated by the appointment of a new chief engineer and the establishment of a technology center[145]. Market Expansion and Strategy - The company is committed to international expansion, with plans to strengthen its brand influence and competitive advantage in global markets[121]. - The company is exploring market expansion opportunities, particularly in the Guangzhou Economic and Technological Development Zone[144]. - The company aims to enhance its market share in the solar cell encapsulation film sector, leveraging the growing demand driven by global carbon neutrality goals[120]. - The company is actively exploring new markets in fields such as optoelectronics and lithium batteries, aiming to expand its product applications[64]. - The company is focused on establishing a multi-level financing system to support strategic development and reduce financing costs[39]. - The company plans to issue convertible bonds to raise funds for increasing production capacity by 90 million square meters for POE film and 90 million square meters for white EVA film[29]. - The company is committed to developing new adhesive materials for lithium batteries and hydrogen fuel cells, aligning with the growing demand in the new energy sector[123]. Environmental and Social Responsibility - The company invested 11.03 million yuan in environmental protection during the reporting period[193]. - The company reduced carbon emissions by 1,472 tons through the construction of solar photovoltaic power stations on suitable rooftops[197]. - The company has established an emergency response plan for environmental incidents, with no incidents reported during the reporting period[196]. - The company’s pollution prevention facilities operated well, ensuring stable compliance with emission standards[195]. - The company made a total donation of 472,000 yuan for public welfare projects during the reporting period[198]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, particularly petrochemical resins, which could impact gross margins and profitability if costs rise significantly[129]. - The company is aware of potential risks from changes in industrial policies and downstream industry fluctuations, particularly in solar energy and construction sectors[127]. - The company has outlined potential risks in its future development, which are detailed in the management discussion and analysis section of the report[6]. Production Capacity and Operations - The company has established a production capacity of 300 million square meters per year for solar cell encapsulation films[101]. - The production capacity for functional polyolefin hot melt adhesive particles has reached 100,000 tons per year[101]. - The company plans to expand its production capacity for hot melt films by 18,000 million square meters, expected to be completed by March 2025[100]. - Continuous optimization of production facilities has led to improved production efficiency and product quality, with significant results in technological transformation and cost reduction[35]. - The company has established production bases in Guangzhou and Jiangsu, enhancing its capacity to cover domestic and international markets[68]. Employee and Management - The company has a comprehensive training program aimed at enhancing employee skills and aligning personal development with corporate growth[173]. - The company emphasizes a competitive and fair compensation structure, with performance evaluations influencing salary adjustments[172]. - The total remuneration for all directors, supervisors, and senior management was 7.1041 million yuan[153]. - The company has implemented a competitive salary policy that includes both fixed and variable components for employees[171]. - The company has 4 employees with doctoral degrees and 37 with master's degrees, indicating a diverse educational background among staff[170].