Suzhou Longjie(SH:603332)2022-04-25 16:00Financial Performance - Suzhou Longjie achieved a net profit of CNY 36,940,988.46 for the year 2021, with a proposed cash dividend of CNY 3.0 per 10 shares and a capital reserve increase of 4 shares for every 10 shares held[6]. - The company's operating revenue for 2021 was approximately CNY 1.072 billion, representing a year-on-year increase of 21.90% compared to CNY 879.5 million in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 36.94 million, a 3.17% increase from CNY 35.81 million in 2020[22]. - The basic earnings per share for 2021 was CNY 0.31, reflecting a 3.33% increase from CNY 0.30 in 2020[22]. - The net profit after deducting non-recurring gains and losses was CNY 15.75 million, up 75.21% from CNY 8.99 million in 2020[22]. - The net cash flow from operating activities for 2021 was CNY 114.11 million, a decrease of 28.96% compared to CNY 160.63 million in 2020[22]. - The total assets at the end of 2021 were approximately CNY 1.637 billion, an increase of 10.21% from CNY 1.486 billion at the end of 2020[22]. - The weighted average return on equity for 2021 was 2.74%, an increase of 0.1 percentage points from 2.64% in 2020[23]. Corporate Governance - The board of directors has confirmed that all members attended the board meeting, ensuring governance compliance[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[8]. - There are no violations of decision-making procedures regarding external guarantees, indicating sound corporate governance practices[8]. - The company has established a robust corporate governance structure, complying with relevant laws and regulations, ensuring effective operation of the shareholders' meeting, board of directors, and supervisory board[86]. - During the reporting period, the company held one shareholders' meeting and five board meetings, all conducted in accordance with legal and regulatory requirements[86]. - The company reported no significant legal violations or irregularities during the reporting period, maintaining compliance with corporate governance standards[88]. Risk Management - The company has outlined potential risks in its management discussion, advising investors to be aware of investment risks[7]. - The report includes a detailed description of potential risks that the company may face, emphasizing transparency in risk management[8]. - The company faced multiple challenges during the reporting period, including the impact of COVID-19, global supply chain disruptions, and rising raw material prices, leading to a weakened market and intensified competition[30]. - The company’s product portfolio includes differentiated polyester filament and PTT fibers, with potential risks of sales and profit margin declines due to changing market demands and increased competition[83]. - Fluctuations in raw material prices, particularly PET and PTT chips, significantly affect production costs, with PET chip prices being volatile and PTT chip prices remaining relatively stable[84]. Research and Development - The company focuses on differentiated products, with a strong emphasis on R&D, resulting in the successful development of high-value polyester fibers, including ultra-realistic animal fur fibers and eco-friendly recycled fibers[35]. - The company holds over 60 national patents and has been recognized as a high-tech enterprise, contributing to the establishment of multiple national and industry standards[36]. - Research and development expenses increased by 7.09% to CNY 48,036,920.22, attributed to higher direct investment and personnel costs[40]. - The company has a dedicated team for new product development, focusing on innovation and intellectual property management[95]. - The company plans to enhance its product innovation capabilities by increasing R&D investment and developing high-value-added products such as super-simulated and high-performance fibers[79]. Market and Competitive Position - The polyester fiber industry experienced a slowdown in production growth and investment, with increased market concentration and significant fluctuations in raw material prices due to external factors like the pandemic and geopolitical conflicts[32]. - The overall market for polyester fibers is expected to improve in the second half of the year, driven by seasonal demand and economic recovery[33]. - The company’s PTT fiber maintains a leading market share, showcasing its competitive advantage in the differentiated fiber market[34]. - The company is committed to continuous product innovation and improvement, aligning its offerings with market demands and trends[37]. Financial Management - The company has established a comprehensive internal control system, ensuring the reliability of financial reporting and the safety of assets[116]. - The internal control audit concluded that the company maintained effective financial reporting internal controls in all significant aspects[116]. - The company has committed to enhancing its governance structure and improving the quality of its public company status[116]. - The company has a structured salary system where the annual salary for directors and supervisors is proposed by the Compensation and Assessment Committee and approved by the board[97]. - The performance-based salary for senior management is determined based on the assessment results from the Compensation and Assessment Committee[97]. Shareholder Relations - The company plans to submit the profit distribution proposal to the 2021 annual shareholders' meeting for approval, reflecting a commitment to shareholder returns[6]. - The cash dividend policy stipulates that at least 20% of the distributable profit should be distributed in cash if there are no major investment plans or cash expenditures[111]. - The company has maintained a consistent shareholding structure with no changes in the number of shares held by key executives[91]. - The total number of common shareholders as of the end of the reporting period is 10,906, an increase from 7,274 at the end of the previous month[144]. Environmental Responsibility - The company has implemented various environmental protection measures, including the installation of waste gas treatment systems and wastewater treatment facilities[120]. - The company has achieved significant energy savings by converting to LED lighting and using high-efficiency motors in production lines[121]. - The company has received a pollution discharge permit and has not faced any environmental pollution disputes or incidents during the reporting period[119].