WAZAM(SH:603186)2022-03-17 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,619,685,625.18, representing a year-over-year increase of 58.47% compared to CNY 2,284,080,702.23 in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 238,221,435.45, a significant increase of 90.24% from CNY 125,220,335.59 in 2020[22]. - The net cash flow from operating activities reached CNY 275,489,646.76 in 2021, up 66.86% from CNY 165,105,541.20 in 2020[22]. - The total assets of the company at the end of 2021 were CNY 5,097,521,057.77, reflecting a 47.02% increase from CNY 3,467,203,049.55 in 2020[22]. - The basic earnings per share for 2021 was CNY 1.68, an increase of 82.61% compared to CNY 0.92 in 2020[24]. - The weighted average return on equity for 2021 was 15.36%, an increase of 4.51 percentage points from 10.85% in 2020[24]. - The company's operating cash flow increased by 66.86% to RMB 275.49 million, indicating improved operational efficiency[63]. - The gross margin for functional composite materials improved by 0.12 percentage points, reflecting better cost management[65]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2021, representing a year-over-year growth of 20%[133]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 5.00 RMB per 10 shares to all shareholders, subject to approval at the annual general meeting[6]. - The company’s cash dividend policy emphasizes reasonable returns to investors, ensuring that the profit distribution does not exceed the cumulative distributable profit[155]. - During the reporting period, the company distributed a total cash dividend of 39,772,687.36 yuan, based on 142,045,312 shares, at a rate of 2.80 yuan per 10 shares[156]. - The company confirmed that the cash dividend policy aligns with its articles of association and shareholder resolutions, with clear standards and procedures in place[157]. Corporate Governance - The company has established a governance structure comprising a shareholders' meeting, board of directors, supervisory board, and management, ensuring compliance with legal and regulatory requirements[122]. - The board of directors consists of 7 members, including 3 independent directors, and has established various committees to support scientific decision-making and ensure compliance[123]. - The supervisory board, comprising 3 members, effectively oversees the company's major matters, financial status, and compliance of directors and senior management[123]. - The company actively respects and protects the rights of stakeholders, including employees, customers, suppliers, and creditors, fostering positive communication for sustainable development[124]. - The company strictly adheres to information disclosure obligations as per the Securities Law and Shanghai Stock Exchange regulations, ensuring transparency and fairness in its disclosures[125]. - The company has established a comprehensive insider information management system to ensure confidentiality and compliance with regulations[125]. - The company’s governance structure complies with regulatory requirements, with no major discrepancies noted[125]. Risk Management - The company has detailed potential risk factors in the report, which investors should review[8]. - The company must monitor raw material price fluctuations influenced by futures prices, capacity utilization, supply-demand conditions, and environmental policies to mitigate risks and enhance profitability[117]. - Currency exchange rate fluctuations impact the company's overseas business, requiring constant monitoring of macroeconomic conditions and strategic pricing adjustments for international products[118]. - The company faces increasing market competition risks due to higher customer concentration and personalized product demand, necessitating deeper understanding of end-user needs and proactive R&D efforts[116]. Research and Development - The company increased R&D investment, achieving a 68% year-on-year increase in small sample production capacity and a 142% increase in total testing volume, enhancing its technical capabilities[40]. - The company emphasizes R&D capabilities as a core driver of growth, establishing a national enterprise technology center and collaborating with universities and research institutions[50]. - The company has focused on developing high-speed materials, achieving batch delivery to major communication terminal customers with improved performance and reliability[80]. - The company has developed a series of high-frequency electronic materials for power amplifiers, covering a full range of products to meet the needs of large terminal communication customers[81]. - The company has made breakthroughs in high thermal conductivity metal-based substrates, achieving batch shipments in automotive electronics and power control sectors[82]. - The company has developed low Dk and low Df HDI materials, with Mid Loss products completing certification and performing well in PCB and terminal applications[82]. - The company has increased its investment in R&D for composite materials, focusing on lightweight, high-strength, and environmentally friendly products to meet the demands of 5G and carbon neutrality[84]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development to sustain growth in the coming years[31]. - The company is actively expanding its overseas market presence by establishing subsidiaries in regions like Japan[55]. - The company is focusing on expanding its market presence through strategic investments and the establishment of new subsidiaries[95][96]. - The company plans to expand its market presence, focusing on new product development and technological advancements[132]. - The company is focusing on developing new materials and products in the electronic materials and composite materials sectors, aiming to become a leading solution provider in various segments[107]. Environmental Compliance - The company achieved compliance with wastewater discharge standards, with COD measured at 245 mg/L against a standard of 500 mg/L[166]. - The company has completed low-nitrogen modifications for 4 out of 5 boilers, ensuring NOx emissions below the 50 mg/m3 threshold[168]. - The company has established an emergency response plan for environmental incidents, complying with national guidelines and conducting annual training for employees[172]. - The company implemented a self-monitoring scheme for environmental protection, including regular water quality sampling and waste gas monitoring[173]. - The company faced administrative penalties for environmental issues, including a fine of 100,000 yuan for improper waste storage and a fine of 130,000 yuan for exceeding organic waste emissions[174]. Financial Oversight - The company reported a total guarantee amount of RMB 1,029,261,166.80, which accounts for 62.03% of its net assets[198]. - The total amount of guarantees provided to subsidiaries during the reporting period was RMB 1,129,821,220.58[198]. - The audit committee consists of Chen Lianyong, Yang Qingjun, and Zhang Jizhou, ensuring financial oversight[144]. - The audit committee reviewed the company's 2021 semi-annual report, affirming that the financial report accurately reflected the company's operational status[146]. - The company has not faced any penalties from securities regulatory authorities in the past three years[140]. Employee Development - The company conducted over 435 training sessions in 2021, covering 1,743 employees, achieving a training coverage rate of 80.92%, an increase of nearly 5% from the previous year[152]. - The company established a new position system and multi-channel career development framework to enhance organizational capability and employee retention[151]. - The company initiated the "Kunlun Project" to enhance internal talent development, involving a six-month training program with four stages[152]. - The company emphasizes the importance of project bonuses to motivate employees and retain talent amid ongoing market changes[151].