BIO-CHEM(SH:603360)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was approximately CNY 1,006.26 million, representing a 34.25% increase compared to CNY 749.54 million in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 250.49 million, a 12.96% increase from CNY 221.75 million in 2020[22]. - The net profit after deducting non-recurring gains and losses was CNY 253.48 million, up 17.98% from CNY 214.84 million in 2020[22]. - The basic earnings per share increased to CNY 1.00, a rise of 17.65% compared to CNY 0.85 in the previous year[24]. - The diluted earnings per share also rose to CNY 0.99, reflecting a 16.47% increase from the previous year[24]. - The weighted average return on equity improved to 25.12%, an increase of 4.38 percentage points from 20.74% in 2020[24]. - The company reported a total revenue of 1.5 billion in 2021, representing a year-over-year growth of 15%[101]. - The company’s revenue reached 1,006.26 million yuan, a year-on-year growth of 34.25%, while the net profit attributable to shareholders was 250.49 million yuan, up 12.96%[89]. Cash Flow and Assets - The net cash flow from operating activities decreased by 32.57% to CNY 142.03 million from CNY 210.62 million in 2020[22]. - Total assets at the end of 2021 reached CNY 1,670.72 million, a 16.86% increase from CNY 1,429.70 million at the end of 2020[23]. - The company reported a significant increase in accounts receivable by 51.62% to ¥187,302,822.42 in 2021 from ¥123,535,361.89 in 2020[56]. - Inventory rose by 75.98% to ¥186,731,620.50 in 2021 from ¥106,110,749.77 in 2020, reflecting increased production capacity from the completion of the Songmu Island Phase III project[56]. - Fixed assets increased by 104.11% to ¥737,696,026.55 in 2021 from ¥361,426,530.34 in 2020, due to the completion and capitalization of the Songmu Island Phase III project[56]. Production Capacity and Operations - The company has over 40,000 tons/year of production capacity for isothiazolinone industrial biocides, solidifying its position as the largest producer in Asia[32]. - The company completed the construction of the third phase project at the Songmu Island subsidiary, which began trial production in September 2021[32]. - The production of CIT/MIT series products has a capacity of 12,000 tons, while MIT series products have a capacity of 2,000 tons[37]. - The company achieved an industrial biocide output of 41,208.71 tons, representing a year-on-year increase of 16.51%, with a capacity utilization rate of 101.56%[89]. - The completion of the third phase project at Songmu Island has added production capacity of 12,000 tons/year for CIT/MIT, 2,000 tons/year for MIT, 1,200 tons/year for OIT, and 2,500 tons/year for BIT, bringing the total industrial biocide capacity to 40,000 tons/year[73]. Research and Development - The company invested 40,031,669.69 RMB in R&D, reflecting a 40.12% increase from the previous year[41]. - Research and development expenditures over the past three years were 28.14 million yuan, 28.57 million yuan, and 40.03 million yuan, accounting for 3.23%, 3.81%, and 3.98% of operating income respectively, indicating a steady increase in both absolute and relative terms[87]. - The company has developed over 50 formula products, with more than 30 currently on sale, which have higher sales prices and gross profit margins compared to raw materials[88]. Market and Sales - Approximately 50% of the company's revenue comes from international clients, with major clients including global chemical giants such as Lanxess and Oshada[88]. - The company plans to continue seeking international partnerships to enhance brand recognition and expand its market share globally[88]. - The sales model is primarily direct sales, targeting technical service providers and industrial biocide traders[36]. Governance and Compliance - The company has established a comprehensive corporate governance structure in compliance with relevant laws and regulations, ensuring good investor relations and effective information disclosure[95]. - The company has maintained a focus on enhancing its internal control systems to improve governance quality[95]. - The company has not reported any significant changes in the competitive landscape or measures taken to address potential conflicts of interest with controlling shareholders[95]. - The company has not disclosed any significant related party transactions during the reporting period, indicating a focus on transparency[167]. Environmental Responsibility - The company reported a chemical oxygen demand (COD) wastewater discharge of 54 tons from its Songmu Island subsidiary, which met the environmental standards[136]. - The company’s Lushun subsidiary reported a COD wastewater discharge of 3.998 tons, also in compliance with environmental standards[138]. - The company has installed automatic monitoring facilities for pollutants at discharge points, with all monitored pollutants meeting discharge standards[144]. - The company has completed the environmental impact assessments for construction projects and has not faced penalties from regulatory authorities[145]. Risks and Challenges - The company faces risks related to environmental protection, safety production, raw material price fluctuations, and exchange rate volatility, which could impact operational performance[91][92]. - The company has acknowledged the existence of non-operating fund occupation by controlling shareholders and their affiliates[8]. - The company has reported a significant increase in freight costs, which rose by 98.95% year-on-year to approximately ¥51.65 million, indicating higher logistics expenses[47]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year, targeting 1.65 billion[101]. - The company anticipates continued growth in the domestic application market for isothiazolinone biocides, despite challenges from raw material price fluctuations and global pandemic impacts[85].