SITONG(SH:603838)2022-04-14 16:00Financial Performance - The company achieved a net profit of RMB 15,702,514.85 for the year 2021, with a distributable profit of RMB 254,601,554.75 at year-end [5]. - Revenue for 2021 was RMB 378,010,133.52, representing a 29.18% increase compared to RMB 292,627,320.44 in 2020 [21]. - The net profit attributable to shareholders was RMB 32,233,805.96, a significant recovery from a loss of RMB 4,873,927.30 in 2020 [21]. - The company reported a cash flow from operating activities of RMB 70,022,533.21, up 22.93% from RMB 56,959,425.28 in the previous year [21]. - Basic earnings per share increased to CNY 0.1007 from a loss of CNY 0.0166 in the previous year, marking a significant recovery [23]. - Non-recurring gains for 2021 amounted to CNY 29,063,244.88, a significant increase from a loss of CNY 422,256.91 in 2020 [29]. - The company achieved operating revenue of 378.01 million yuan, a year-on-year increase of 29.18% [47]. - The net profit attributable to shareholders was 32.23 million yuan, marking a turnaround from a loss to profit [45]. Asset Management - Total assets decreased by 17.70% to RMB 1,163,914,182.15 at the end of 2021, down from RMB 1,414,170,735.22 in 2020 [22]. - The company’s net assets attributable to shareholders increased by 2.44% to RMB 1,084,290,256.07 at the end of 2021 [22]. - The company transferred 100% equity of Guangdong Dongwei New Materials Co., Ltd. for ¥380 million, enhancing asset liquidity [78]. - The cash and cash equivalents decreased by 56.89% to ¥42,330,119.36 due to the purchase of financial products [75]. - The total assets decreased significantly, with long-term equity investments dropping by 93.83% to ¥3,588,067.56 [75]. Sales and Market Strategy - The company is focusing on expanding domestic sales channels, which contributed to the increase in domestic product sales revenue [24]. - The company strengthened market marketing efforts, focusing on foreign trade exports and maintaining cooperation with major clients, while optimizing the structure of domestic and foreign sales [35]. - Domestic product sales revenue reached 93.66 million yuan, a significant increase of 85.49% compared to the previous year [48]. - Export product sales revenue was 281.50 million yuan, up 17.16% year-on-year [48]. - The company is adapting to consumer demand for high-quality, personalized ceramic products, emphasizing innovation and brand building in a competitive market [38]. Research and Development - Research and development expenses increased by 73.72% to 17.21 million yuan, reflecting a focus on innovation [47]. - The company increased R&D investment in new technologies and processes, leading in high-temperature reinforced ceramic technology, and collaborated with universities for applied technology development [35]. - The total R&D expenditure for the period was ¥17,206,697.29, accounting for 4.55% of the operating revenue [69]. - The number of R&D personnel is 152, representing 10.07% of the total workforce [70]. Operational Challenges - The company faces risks from fluctuations in raw material prices, which significantly impact operating costs, particularly for materials like porcelain clay and chemicals [88]. - The company is exposed to exchange rate risks due to a high proportion of exports, with foreign sales primarily settled in USD, leading to potential uncertainties in profitability [89]. - The feasibility of the "Guangdong Sitong Marketing Network Construction Project" is under review due to changes in market conditions and rising operational costs influenced by the global pandemic [90]. - The "New Annual Production of 20 Million Daily Ceramics Project" is delayed, with only 10 million pieces remaining to be constructed, affected by slow municipal road changes and rising international shipping costs [90]. Corporate Governance - The company has established a compensation and assessment committee to evaluate senior management based on operational performance and industry salary levels [127]. - The company has a monitoring system in place for the remuneration of directors and senior management [106]. - The company has maintained compliance with relevant laws and regulations regarding executive compensation [106]. - The company has a clear structure for the roles and responsibilities of its board members and management [106]. Investment and Financial Products - The company engaged in wealth management, with a total of CNY 319,040,000 in bank financial products from raised funds and CNY 416,000,000 from self-owned funds [159]. - The structured deposit products are designed to provide investors with returns based on underlying market fluctuations [166]. - The company aims to enhance its market presence through the introduction of new structured deposit products [165]. - The company is focusing on expanding its structured deposit offerings to enhance customer engagement and retention [176]. Shareholder Information - The total shares held by directors and senior management decreased from 90,635,564 to 71,310,548, a reduction of 19,325,016 shares, representing a decrease of approximately 21.35% [99]. - The total remuneration for directors and senior management during the reporting period amounted to 352.16 million yuan [99]. - The company has seen significant turnover in shareholdings among senior management, indicating potential strategic shifts or personal financial decisions [97]. Compliance and Risk Management - The company has established a long-term commitment to manage related party transactions in a fair and reasonable manner, adhering to market principles [141]. - The company has implemented strict reporting and auditing processes for its subsidiaries to ensure timely and accurate information disclosure [129]. - The company has committed to ensuring the independence of its personnel, assets, and financials, as well as maintaining operational independence since July 23, 2021 [139].