JHM(SH:603078)2022-03-14 16:00Financial Performance - The company achieved operating revenue of CNY 792,144,497.76 in 2021, an increase of 40.50% compared to the previous year[21]. - The net profit attributable to shareholders was CNY 56,507,706.01, a decrease of 2.90% year-on-year[21]. - The gross profit margin was 22.15%, down by 3.67 percentage points from the previous year[28]. - The company reported a net cash flow from operating activities of CNY -49,311,873.67, worsening by 433.95% compared to the previous year[21]. - The total assets at the end of 2021 were CNY 2,248,281,468.76, an increase of 13.07% from the end of 2020[21]. - The company’s basic earnings per share decreased by 8.09% to CNY 0.2883 in 2021[22]. - The operating cost increased by 47.45% to CNY 616,646,016.92, impacting overall profitability[28]. Dividend and Share Capital - The company plans to distribute a cash dividend of 0.9 CNY per 10 shares, totaling 17,637,501.69 CNY (including tax) based on the share capital as of December 31, 2021[4]. - The company will increase its share capital by 3 shares for every 10 shares held, resulting in a total increase of 58,791,672 shares, bringing the total share capital to 254,763,913 shares[4]. - The cash dividend distribution policy allows for a minimum of 80% cash dividends during mature phases without major expenditures, and 40% if there are significant spending plans[145]. - The board must consider the company's sustainable operation capability and investor returns when proposing profit distribution plans, ensuring compliance with legal and regulatory requirements[146]. Industry and Market Position - The company operates in the microelectronics sector, focusing on high-purity reagents and electronic chemical materials[11]. - The company has been focusing on market expansion and product structure adjustment to increase the proportion of high-value-added products in the semiconductor and flat panel display industries[28]. - The company is positioned to become a competitive international manufacturer of wet electronic chemicals with G5 product capabilities upon the completion of the Zhenjiang base[36]. - The wet electronic chemicals industry is expected to maintain a double-digit growth rate, with the market size projected to exceed ¥10.5 billion by 2020[35]. - The company’s products are critical for processes in flat panel displays, semiconductors, LEDs, and solar energy, indicating a strong market demand and growth potential[37]. Research and Development - The company holds 104 patents, including 39 invention patents and 64 utility model patents, showcasing its strong R&D capabilities[38]. - R&D expenses increased by 19.26% to ¥36,215,561.31, driven by an increase in research samples[46]. - The company has established a stable cooperative relationship with Nanjing University for joint R&D, enhancing its technological edge[38]. - The company is focused on R&D in new materials and technologies to improve its competitive position in the market[94]. Risk Management - The company emphasizes that future plans and strategic developments mentioned in the report do not constitute a commitment to investors, highlighting potential investment risks[5]. - The company has detailed potential industry and operational risks in the report[7]. - The company faces risks from fluctuations in the prices of key raw materials, which include basic chemical materials such as hydrofluoric acid and isopropanol, potentially impacting production operations[110]. - Environmental protection and safety production risks are present, with potential increases in environmental governance costs and the possibility of accidents affecting operations[112]. Governance and Compliance - The company maintains a robust governance structure, ensuring compliance with laws and regulations, and promoting independent operations of its board and management[114]. - The company has established independent financial management systems, ensuring proper accounting practices and financial decision-making[117]. - The company has not reported any new product launches or technological developments in the current period[121]. - The company has not engaged in any cash asset management or entrusted loan activities during the reporting period[183]. Customer and Supplier Relationships - The company has established stable partnerships with major clients in various sectors, including BOE, China Electronics Rainbow, and Tongwei Solar[36]. - The company’s procurement process includes strict supplier selection to ensure quality and price stability of raw materials[74]. - The company has established stable relationships with downstream customers, allowing for rapid response to new product development needs[79]. Employee and Management Structure - The company employed a total of 579 staff members, including 400 in the parent company and 179 in major subsidiaries[140]. - The workforce composition includes 345 production personnel, 32 sales personnel, 95 technical personnel, 15 financial personnel, and 92 administrative personnel[140]. - The company has implemented a performance-based salary system, linking compensation closely to performance evaluations[142]. - The company emphasizes comprehensive training for employees, focusing on improving skills and professional capabilities[143].