Financial Performance - In 2021, the company achieved a net profit of CNY 210,882,370.79, representing a 105.69% increase compared to CNY 102,526,540.95 in 2020[4]. - The operating revenue for 2021 was CNY 5,086,837,939.49, a 65.50% increase from CNY 3,073,687,238.21 in 2020[23]. - The net cash flow from operating activities was CNY 212,958,582.93, recovering from a negative cash flow of CNY -185,491,203.66 in 2020[23]. - The total assets at the end of 2021 amounted to CNY 7,884,981,221.96, reflecting a 48.85% increase from CNY 5,297,414,008.63 at the end of 2020[23]. - The company's net assets attributable to shareholders reached CNY 1,945,954,928.46, a 10.50% increase from CNY 1,761,045,264.21 in 2020[23]. - Basic earnings per share for 2021 were CNY 0.73, up 108.57% from CNY 0.35 in 2020[24]. - The company reported a decrease of 40.41% in net profit after deducting non-recurring gains and losses, amounting to CNY 46,251,879.06 in 2021[23]. - Operating costs increased to CNY 4,721,889,066.68, reflecting a rise of 69.39% year-on-year, driven by higher raw material and energy prices[53]. - The gross profit margin decreased, with the overall gross profit margin for the main business at 6.97%, down 2.00 percentage points from the previous year[58]. Production and Sales - In 2021, the company achieved a sales revenue of 5.086 billion RMB, a year-on-year increase of 65.5%[30]. - The company produced 672,000 tons of various steel wires, up 39.35% from the previous year, and sold 649,800 tons, an increase of 33.64%[30]. - The production of tire cord steel wire was 350,900 tons, a growth of 19.08%, while sales reached 347,200 tons, up 16.94%[30]. - In 2021, the company achieved a production volume of 1.0358 million tons of tire cord steel, representing a year-on-year increase of 10.80%, with an export volume of 135,100 tons, up 17.23%[34]. - The company completed the acquisition and integration of Shengtong Steel Cord, launching a dual-brand operation model with "Daye" and "Shengtong," enhancing market influence and competitive advantage[32]. Market and Industry Trends - The steel cord industry in China reached a production volume of 2.7332 million tons in 2021, a year-on-year growth of 10.80%, with exports increasing by 46.22% to 581,800 tons[38]. - The overall output of rubber skeleton materials in China reached a historical high of 4.7334 million tons in 2021, with a 12.56% increase, and exports rose by 29.79% to 1.379 million tons[33]. - The domestic market for tire cord steel has become a major supplier for the world's top 20 tire manufacturers, with foreign brand market share declining[35]. - The tire cord steel wire industry in China is expected to maintain steady growth, with increasing production capacity and market opportunities[90]. - International competition in the tire cord steel wire market is intensifying, with foreign companies establishing operations in China to capitalize on lower manufacturing costs[92]. Innovation and Technology - The company was recognized as a smart manufacturing benchmark enterprise by the Shandong Provincial Department of Industry and Information Technology[31]. - The company's technology center was recognized as a national enterprise technology center in 2021[31]. - The company is focusing on high-performance tire cord steel, with a significant technological advancement in ultra-high strength products, filling a gap in the industry[34]. - The company aims to enhance its competitive position in the rubber skeleton materials industry through strategic acquisitions and operational improvements[32]. - The company has implemented a flexible production system, allowing for the customization of products to meet diverse client specifications, thereby improving production efficiency[51]. Corporate Governance - The company strictly adheres to the Company Law and relevant regulations, ensuring independent operations of the board and management, protecting the rights of all shareholders, especially minority shareholders[102]. - The board of directors and supervisory board actively participate in decision-making processes, ensuring the prudence and scientific nature of major decisions[103]. - The company has established a robust investor relations management system, enhancing communication with investors through various channels, including the Shanghai Stock Exchange's "E Interaction" platform[104]. - The company has implemented an insider information management system, ensuring compliance with regulations regarding the disclosure of significant information[104]. - The company has a comprehensive information disclosure policy, ensuring equal access to information for all shareholders[104]. Environmental Responsibility - The company operates key pollutant discharge units in Shandong Province, with major pollutants including waste gas, wastewater, and solid waste[143]. - Actual emissions of particulate matter from the Zhucheng plant were between 2.3-9 mg/m³, well below the standard of 10 mg/m³[145]. - Wastewater from the Zhucheng plant had a COD level of 29.2 mg/L, significantly lower than the standard limit of 500 mg/L[144]. - The company has implemented a new VOC treatment process using zeolite rotary concentration and CO catalytic combustion, ensuring compliance with emission standards[145]. - The company has established a hazardous waste storage facility and signed contracts with qualified third-party organizations for regular disposal of hazardous waste[144]. Employee and Management - The company has a total of 4,663 employees at the end of the reporting period, with 2,906 in the parent company and 1,757 in major subsidiaries[127]. - The company emphasizes performance-oriented compensation management to enhance employee motivation and satisfaction[129]. - The company has established a training plan to improve team efficiency and meet employee training needs, focusing on management skills and production system training[130]. - The company has implemented equity incentives for several executives, which contributed to the changes in shareholdings during the reporting period[110]. - The company’s management team includes individuals with extensive experience in various sectors, enhancing operational effectiveness[115]. Shareholder Information - The total number of shares held by the board members at the beginning of the year was 181,762,860, which increased to 182,791,360 by the end of the year, reflecting a change of 1,028,500 shares[110]. - The largest shareholder, Dou Yong, holds 111,384,000 shares, representing 38.41% of the total shares[181]. - The company has a total of 546,500 shares held by shareholder Zheng Hongxia that are subject to trading restrictions[185]. - The company has not experienced any changes in its controlling shareholder during the reporting period[188]. - The company reported a total of 3,164,500 restricted shares granted under the incentive plan, representing 1.09% of total shares[171].
大业股份(603278) - 2021 Q4 - 年度财报