ZPEC(SH:603637)2022-04-21 16:00Dividend Distribution and Share Repurchase - The company plans to distribute a cash dividend of 1.2 RMB per 10 shares, totaling approximately 28.64 million RMB, which represents 86.80% of the net profit attributable to shareholders for the year[7]. - The total amount spent on share repurchase during the year was approximately 36.36 million RMB, which is considered as part of the cash dividend distribution[7]. - The company has a policy to distribute at least 20% of the distributable profits as cash dividends when profits are positive and cumulative distributable profits are also positive[152]. - The company has maintained a cash dividend policy, distributing at least 20% of the annual distributable profit as cash dividends[150]. - The company plans to distribute a cash dividend of 1.2 yuan (including tax) for every 10 shares, totaling approximately 28,642,305.24 yuan (including tax) based on a total share count of 238,685,877 shares after accounting for repurchased shares[156]. - In 2021, the total cash dividend amounted to 65,002,130.96 yuan, representing 86.80% of the net profit attributable to shareholders in the consolidated financial statements[156]. - The independent directors are responsible for reviewing and providing opinions on the proposed profit distribution plans before they are submitted to the shareholders' meeting[153]. - The company has not made any adjustments to its profit distribution policy during the reporting period, ensuring stability and transparency in its dividend policy[157]. - The company aims to enhance shareholder returns by ensuring that the profit distribution policy aligns with investor expectations and operational needs[157]. - The company has implemented a share repurchase program amounting to 36,359,825.72 yuan, which is considered part of the cash dividend for the year[156]. Financial Performance - The company's operating revenue for 2021 was ¥1,100,056,235.41, representing a year-on-year increase of 0.35% compared to ¥1,096,207,910.35 in 2020[25]. - Net profit attributable to shareholders was ¥74,889,693.87, reflecting a 15.00% increase from ¥65,124,147.05 in 2020[25]. - The basic earnings per share for 2021 was ¥0.31, up 14.81% from ¥0.27 in 2020[26]. - The weighted average return on equity increased to 9.25%, up from 8.25% in 2020, marking an increase of 1.00 percentage points[26]. - The cash flow from operating activities was ¥195,079,278.29, a significant recovery from a negative cash flow of -¥135,675,481.34 in 2020[25]. - Total assets at the end of 2021 reached ¥1,422,126,642.85, an increase of 2.69% from ¥1,384,887,186.43 at the end of 2020[25]. - The company achieved an annual revenue of ¥1,100,056,235.41, representing a year-on-year growth of 0.35%, and a net profit attributable to shareholders of ¥74,889,693.87, which is a 15% increase year-on-year[39]. - The company reported a net profit margin of 12%, up from 10% in the previous year[124]. - Total assets increased by 18% year-over-year, reaching 3 billion RMB[125]. Operational Highlights - The company ranked 9th among the top performers in terms of per-acre efficiency in the technology service industry in Zhejiang Province for 2021[37]. - The company was recognized as one of the top 100 competitive enterprises in Ningbo, ranking 35th in 2021[37]. - The company achieved a net profit of ¥24,790,355.09 in the fourth quarter of 2021, contributing to a total annual net profit growth[29]. - The engineering general contracting revenue reached ¥972,557,900, reflecting a growth of 0.19% compared to the previous year, while the engineering design revenue was ¥108,047,600, marking a 3.45% increase[39]. - The company successfully completed the installation and construction work for the EPC project of the Guangdong Petrochemical 20 million tons/year heavy oil processing project, with the project nearing completion[40]. - The company signed design service framework agreements with key clients including Sinopec and Zhejiang Petrochemical, and secured significant projects such as the Tianjin South Port 120,000 tons/year ethylene project[44]. - A total of 14 R&D projects were completed in 2021, along with 28 business construction projects and 14 software development projects, enhancing the company's technological capabilities[45]. - The company maintained a zero-accident safety record in ongoing projects, highlighting its commitment to quality and safety in operations[47]. Research and Development - The company received 1 invention patent and 4 utility model patents during the reporting period, indicating a focus on innovation and intellectual property[45]. - Research and development expenses increased by 2.55% to ¥35,275,115.99 compared to the previous year[68]. - The company has developed the LS-ZHSR technology, achieving a sulfur recovery rate of 99.98% and SO2 emission concentration of less than 10 mg/Nm³[61]. - The company is focused on technological innovation in areas such as low-carbon and digital solutions, contributing to its competitive edge in the petrochemical sector[63]. - The company is increasing R&D investment in technologies such as intelligent storage solutions and digital factory construction to enhance competitiveness[105]. Market and Economic Environment - The international oil price increased by approximately 53% throughout 2021, impacting the investment landscape in the petrochemical sector[49]. - In 2021, China's crude oil refining capacity increased by 378 million tons, a growth of 66% from 2010 to 2021, with an average annual growth rate of 4.69%[50]. - The global refinery capacity utilization rate reached 78% in 2021, expected to peak at 80% in 2022 and 2023, but projected to decline to 77% by 2025 due to slower demand growth[51]. - The company is positioned to benefit from the implementation of environmental protection policies and the shift towards low-carbon development in the petrochemical industry[54]. - The company recognizes the challenges posed by the global economic situation, including rising oil prices and the need for structural reforms in the petrochemical engineering sector[92]. Corporate Governance - The company adheres to strict governance practices, ensuring compliance with relevant laws and regulations while maintaining operational independence from its controlling shareholder[110]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with regulations and protecting shareholder rights[111]. - The supervisory board has 3 members, with 2 shareholder supervisors and 1 employee supervisor, actively overseeing financial reports and management performance[112]. - The company has implemented strict insider information management to prevent insider trading and enhance transparency in information disclosure[112]. - The company is committed to improving its corporate governance structure and internal control mechanisms for sustainable development[112]. - The company has engaged external legal counsel to ensure the legality of its shareholder meetings and decisions[116]. - The company has taken measures to ensure the independence of its operations and assets from controlling shareholders[112]. - The company is focused on maintaining the rights and interests of all shareholders, particularly minority shareholders[111]. Risk Management - The company has not identified any significant risks that could adversely affect its future development strategy or ongoing operations[11]. - The company has not faced any violations of decision-making procedures regarding external guarantees[10]. - The company faces policy risks due to its reliance on the petrochemical industry and will actively monitor national policies to adapt its investment strategies accordingly[102]. - The company acknowledges the potential for significant fluctuations in operating performance due to the long-term nature and complexity of its engineering contracting business[102]. - The company faces risks from high customer concentration, primarily serving major state-owned enterprises like Sinopec and PetroChina, which could impact performance if economic conditions worsen[106]. Employee and Social Responsibility - The company has implemented measures to ensure employee welfare, including competitive salaries and timely social security contributions[173]. - The company has actively participated in public welfare activities, including disaster relief, blood donation, and educational support, benefiting society[176]. - The company emphasizes internal and external training, having trained over 1,100 personnel through various methods[148]. - The company has a structured approach to employee compensation, linking departmental compensation to output and performance metrics[147]. Future Outlook - The company provided a future outlook with a revenue guidance of 1.5 billion RMB for the next quarter, representing a 25% increase compared to the current quarter[126]. - New product launches are expected to contribute an additional 300 million RMB in revenue over the next fiscal year[125]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 200 million RMB allocated for potential deals[125]. - The company plans to expand into new business areas while maintaining its focus on existing projects, emphasizing customer service and project management efficiency[94]. - The company aims to enhance its core competitiveness and create differentiated advantages by leveraging its location in Ningbo, a major petrochemical base, to explore new market opportunities[97].