Zhejiang Xinao Textiles (SH:603889)2022-04-25 16:00Financial Performance - In 2021, the company's operating income reached ¥3,445,495,030.12, representing a 51.57% increase compared to ¥2,273,166,650.16 in 2020[23]. - The net profit attributable to shareholders was ¥298,274,587.90, a significant increase of 96.93% from ¥151,460,739.57 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥284,114,229.23, which is an increase of 182.02% compared to ¥100,741,352.65 in 2020[23]. - The company's total assets increased by 21.49% to ¥3,972,757,585.80 at the end of 2021, up from ¥3,269,904,934.26 at the end of 2020[23]. - The net assets attributable to shareholders rose to ¥2,717,728,026.53, reflecting a 7.45% increase from ¥2,529,264,252.96 in 2020[23]. - Basic earnings per share increased by 93.33% to CNY 0.58 in 2021 from CNY 0.30 in 2020[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses grew by 180% to CNY 0.56 per share in 2021 from CNY 0.20 in 2020[24]. - The weighted average return on equity rose to 11.44% in 2021, an increase of 5.22 percentage points compared to 6.22% in 2020[24]. Cash Flow and Dividends - The company reported a net cash flow from operating activities of -¥120,996,154.73, a significant decrease from ¥301,469,704.13 in 2020[23]. - The company plans to distribute a cash dividend of ¥3.00 per 10 shares, totaling approximately ¥153,523,916.40, which accounts for 51.47% of the net profit for the year[6]. - The cash flow from operating activities turned positive in the fourth quarter of 2021, reaching CNY 257,743,005.83[27]. - The net cash flow from financing activities improved to CNY 180,394,238.49, compared to -CNY 123,059,107.03 in the previous year[83]. Production and Sales - The production of fine wool yarn reached 14,000 tons, a year-on-year increase of 45.59%, while sales reached 13,400 tons, up 35.67% year-on-year[37]. - The company achieved a historical high in production and sales volume, maintaining a high capacity utilization rate for fine wool yarn during the reporting period[47]. - The domestic wool textile market has recovered, with the internal sales proportion exceeding 60%, an increase of 6 percentage points compared to 2020[50]. - The company's revenue from wool textile enterprises increased by 8.7% year-on-year during the first 11 months of the reporting period, with an average profit margin of nearly 4%, up by 2 percentage points[54]. Market Strategy and Expansion - The company plans to continue expanding its market presence and enhancing its product offerings in the coming years[34]. - The company is expanding its product offerings in sustainable yarns, with a focus on biodegradable and recyclable materials, enhancing its competitive edge in the market[46]. - The company has adopted a dual sales strategy, balancing domestic and international sales, and has developed a stable and high-quality customer base[58]. - The company has expanded its market presence by establishing offices in over 20 countries and regions, enhancing its ability to capture market trends[61]. Research and Development - Research and development expenses increased by 32.93% to CNY 95.79 million, reflecting a focus on innovation[66]. - The total R&D expenditure for the year 2021 was CNY 95,794,452.51, accounting for 2.78% of the operating revenue[79]. - The company employed 374 R&D personnel, representing 9.97% of the total workforce[80]. - R&D efforts focused on new technologies and products for wool/cashmere knitting yarn, targeting outdoor sports and sustainable fashion markets[81]. Environmental and Social Responsibility - The company has received approval for a new project to add 6,000 tons of wool and 12,000 tons of functional fiber processing capacity, with environmental impact assessments completed[153]. - The company has maintained a zero-penalty record for environmental violations during the reporting period[158]. - The company has established emergency response plans for environmental incidents and conducts regular training to enhance response capabilities[156]. - The company actively creates job opportunities and adheres to legal and ethical standards, promoting a culture of honesty and social responsibility[173]. Corporate Governance - The company has established a modern corporate governance structure, including a board of directors with 9 members and various specialized committees, to ensure compliance and promote healthy development[108]. - The independent directors actively participated in board meetings, providing valuable insights for improving corporate governance[109]. - The company has implemented a registration management system for insider information to ensure compliance with regulations and protect shareholder interests[110]. - The company has maintained a stable leadership structure with no significant changes in shareholding among directors and senior management[113]. Risk Management - The company faces risks from macroeconomic fluctuations and raw material price volatility, which could impact its production and sales stability[103]. - The company employs a prudent procurement strategy to mitigate raw material price volatility, including timely locking in raw material prices based on sales orders and historical data[105]. - The company continues to monitor market trends and adjust its strategies accordingly to navigate the challenges posed by raw material price volatility and exchange rate fluctuations[105].