SKSHU(SH:603737)2022-04-29 16:00Financial Performance - The net profit attributable to the parent company's shareholders for 2021 was -416.89 million CNY, indicating a loss [4]. - The board of directors proposed not to distribute profits for 2021 due to the negative net profit and the company's focus on rapid development [4]. - The company is in a phase of significant investment for business growth, which impacts short-term profitability [4]. - In 2021, the company's operating revenue reached ¥11.43 billion, a 39.37% increase compared to ¥8.20 billion in 2020 [18]. - The net profit attributable to shareholders was -¥416.89 million in 2021, a decrease of 183.08% from ¥501.77 million in 2020 [18]. - The net profit after deducting non-recurring gains and losses was -¥561.98 million, down 232.99% from ¥422.58 million in 2020 [18]. - The total assets increased by 36.12% to ¥12.38 billion at the end of 2021, compared to ¥9.09 billion at the end of 2020 [18]. - The basic earnings per share for 2021 was -¥1.11, a decline of 181.62% from ¥1.36 in 2020 [19]. - The weighted average return on net assets was -18.71% in 2021, a decrease of 43.77 percentage points from 25.06% in 2020 [19]. - The net cash flow from operating activities for 2021 was ¥484.55 million, a 5.95% increase from ¥457.35 million in 2020 [18]. Risk Management and Governance - The company has detailed various risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks [6]. - The company has a comprehensive governance structure with all board members present at the meeting [3]. - The audit report issued by the accounting firm was a standard unqualified opinion, ensuring the financial report's reliability [3]. - There are no non-operating fund occupations by controlling shareholders or related parties reported [5]. - The company ensures compliance with corporate governance regulations, maintaining independence from its controlling shareholder in personnel, assets, finance, and operations [124]. - The board of directors and supervisory board operate independently, adhering to legal and regulatory requirements during meetings and decision-making processes [124]. Environmental and Social Responsibility - The report includes a section on environmental and social responsibility, highlighting the company's commitment to these areas [5]. - The company is committed to sustainable development and production operations, which may affect future financial performance [4]. - The company is responding to national "dual carbon" policies by promoting ecological and sustainable development initiatives [32]. - The company is classified as a key pollutant discharge unit and obtained a pollution discharge permit in October 2021, with all monitored pollutants meeting the discharge standards [166]. - The company has implemented various pollution control facilities, including a wastewater pre-treatment system with a capacity of 200 m³/d, operational since May 2007 [186]. Product Development and Market Expansion - The company launched 241 new product projects and upgraded 577 existing products during the reporting period [27]. - The company is focusing on cost control and risk management to gradually improve net profit margins [26]. - The company is expanding its online retail presence, including mainstream platforms like Taobao and JD, as well as emerging channels like Douyin and Kuaishou [28]. - The company achieved a production capacity increase at its Hebei factory, forming a five-region supply network to reduce transportation costs [30]. - The company has developed nearly 10,000 products to meet comprehensive green building material needs, covering various fields such as interior and exterior wall coatings, waterproofing, insulation, and flooring [40]. Research and Development - Research and development expenses increased by 30.94% to CNY 271.08 million, reflecting the company's commitment to enhancing R&D investment [53]. - The company has established over 500 authorized patents and participated in the formulation of 88 national and industry standards [40]. - The company has made substantial breakthroughs in multiple green projects, including inorganic thermal insulation paste and solvent-free polyurethane waterproof coatings [87]. - The company is actively promoting integration of production, education, and research, collaborating with several domestic and international chemical enterprises and research institutions [87]. Employee Engagement and Training - The total number of employees in the parent company is 1,639, while the total number of employees in major subsidiaries is 8,700, resulting in a combined total of 10,339 employees [149]. - In 2021, the company conducted 191 training sessions, serving 9,058 trainees, focusing on enhancing industry skills and professional qualifications [152]. - The company has implemented a training plan that includes leadership and management development, with partnerships with universities for talent cultivation [151]. Financial Management and Capital Structure - The company has not proposed any cash profit distribution plans despite having positive distributable profits for the parent company [155]. - The total capital reserve increased from 182,211,986 to 255,077,661, representing a growth of approximately 40% [131]. - The company has a total of 72,865,675 shares that were subject to capital reserve conversion, indicating a significant equity management strategy [131]. Compliance and Transparency - The company has disclosed all necessary information in accordance with the Shanghai Stock Exchange rules, ensuring transparency and fairness [125]. - The company has not faced any penalties from securities regulatory authorities in the past three years [138]. - The company is committed to transparency and compliance, as evidenced by its detailed reporting on management and governance practices [134].