Yongguan New Material(SH:603681)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,840,048,136.62, representing a 59.07% increase compared to CNY 2,414,078,217.26 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 225,511,978.96, up 28.50% from CNY 175,501,135.23 in 2020[24]. - The net cash flow from operating activities decreased significantly by 94.39% to CNY 12,069,860.21 from CNY 215,180,894.16 in 2020[24]. - The basic earnings per share for 2021 was CNY 1.31, a 24.76% increase from CNY 1.05 in 2020[25]. - The diluted earnings per share rose by 14.29% to CNY 1.20 in 2021, compared to CNY 1.05 in 2020[25]. - The total assets increased by 38.60% to CNY 4,705,528,530.19 in 2021 from CNY 3,395,112,649.10 in 2020[24]. - The company's net assets attributable to shareholders grew by 42.68% to CNY 2,221,318,915.69 in 2021 from CNY 1,556,870,474.73 in 2020[24]. - The total profit amounted to CNY 251,339,200, reflecting a 28.50% increase compared to the previous year[68]. - The net profit after deducting non-recurring gains and losses was CNY 188,131,100, marking a significant growth of 56.79%[68]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares to all shareholders, pending approval at the shareholders' meeting[6]. - The company has proposed a three-year shareholder dividend return plan for 2021-2023[171]. - The company implemented a cash dividend policy, ensuring that at least 10% of the distributable profit is allocated as cash dividends annually, with a minimum of 20% of the distribution being cash if there are significant capital expenditures planned[198]. - The company achieved a net profit of ¥42,414,721.72 for the year 2021, with a profit distribution plan proposing a cash dividend of ¥2.00 per 10 shares, totaling ¥38,225,974.20 (including tax) to be distributed[199]. Risk Management and Compliance - The company has outlined potential risks in its future development strategy, which investors should be aware of[9]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not reported any violations of decision-making procedures regarding external guarantees[8]. - The company emphasizes the importance of the accuracy and completeness of the annual report, with all board members present at the meeting[4]. - The company is focused on risk management by utilizing hedging tools to mitigate raw material and exchange rate fluctuations[142]. - The company faces risks from raw material price fluctuations, which are influenced by upstream prices and market supply-demand dynamics, despite ongoing improvements in production technology[157]. - The company is exposed to exchange rate risks due to its reliance on USD for export sales, with plans to use foreign exchange derivatives for risk hedging[158]. Operational Developments - The company has established production bases in Vietnam and Shandong to mitigate the impact of US-China trade tensions and reduce transportation costs[37]. - The company has multiple projects underway, including an annual production capacity of 73.8 million square meters of water-based PVC adhesive products, which has already been put into production[38]. - The company is enhancing its management through the integration of data, information, and industrialization, improving overall efficiency and accuracy[39]. - The company is actively investing in research and development to foster innovation and expand its product offerings[36]. - The company is investing in smart manufacturing projects to enhance automation and efficiency, aiming for a three-year transformation towards automation[49]. - The company has initiated a project for intelligent manufacturing upgrades, with the first phase of the Jiangxi Yongguan intelligent manufacturing project already in operation[148]. Market and Product Strategy - The company operates in the adhesive products sector, focusing on various types of adhesive tapes and materials[17]. - The company is expanding into high-value adhesive products, including biodegradable tapes and specialty adhesives, to capture new market opportunities[54]. - The company aims to achieve breakthroughs in high-end adhesive products and seeks to replace imported products with domestic alternatives[105]. - The company is focusing on developing biodegradable tapes and expanding into mid-to-high-end sectors such as industrial, automotive, electronics, and medical fields[142]. - The company has developed an environmentally friendly biodegradable tape that achieved a decomposition rate of 62% within 64 days, meeting international standards[45]. Customer and Market Reach - The company serves over 26,000 customers across more than 110 countries, offering a total of 61 product categories and over 49,000 variants[46]. - The company has a low customer concentration, which enhances its risk resistance and market stability[62]. - The revenue from domestic sales reached RMB 111,788.66 million, representing a year-over-year increase of 38.54%[128]. - The revenue from overseas sales was RMB 266,274.34 million, showing a significant year-over-year increase of 67.86%[128]. Governance and Management - The company held five shareholder meetings during the reporting period, all of which complied with relevant laws and regulations[171]. - The company’s board of directors includes specialized committees such as the audit committee and the strategic committee, ensuring effective governance[185]. - The management team has undergone changes, with the recent passing of a board member, impacting future governance[176]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period was 5.5432 million yuan[179]. - The company’s board of directors has not faced any objections regarding its operations during the reporting period[185]. Research and Development - The company’s R&D expenses increased by 29.43% to CNY 138,314,099.23, indicating a strong commitment to innovation[69]. - The company is committed to research and development in high-performance fibers and composite materials, aiming to innovate within the industry[140]. - The company has increased its investment in new product technology development to enhance market competitiveness[86]. - The company is investing 100 million yuan in R&D for new technologies aimed at enhancing product efficiency[177]. Environmental and Social Responsibility - The company has invested CNY 123 million in environmental protection from 2015 to 2021, enhancing its compliance with environmental regulations[66]. - The company is committed to enhancing safety and environmental protection measures to mitigate associated risks[42]. - The company aims to promote environmentally friendly products, including biodegradable tapes, in line with national policies and market trends[141].