Sunfar(SH:603938)2022-03-09 16:00Financial Performance - In 2021, the company's operating revenue reached CNY 1,598,867,245.93, a 58.89% increase compared to 2020[22]. - The net profit attributable to shareholders was CNY 335,655,634.57, representing a 244.76% increase from the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 332,015,672.93, up 265.06% year-on-year[22]. - The cash flow from operating activities was CNY 254,538,290.49, an increase of 41.37% compared to 2020[22]. - The company's total assets increased by 51.94% to CNY 2,321,698,098.77 at the end of 2021[22]. - Basic earnings per share rose to CNY 1.72, a 244.00% increase from the previous year[22]. - The weighted average return on net assets increased by 15.94 percentage points to 24.19%[22]. - The company achieved operating revenue of 1,598,867,245.93 RMB, a year-on-year increase of 58.89%[70]. - Net profit attributable to shareholders reached 33,565.56 million RMB, up 244.76% compared to the previous year[70]. - The company's total assets amounted to 232,169.81 million RMB, with net assets attributable to shareholders at 155,514.89 million RMB[70]. Dividends and Share Capital - The company plans to distribute a cash dividend of RMB 1.72 per 10 shares (including tax) and to increase capital by 4 shares for every 10 shares held[6]. - The company distributed a cash dividend of 0.8 yuan per 10 shares and issued 3 bonus shares for every 10 shares, resulting in a total cash distribution of 12,013,328.00 yuan and 45,049,980 bonus shares, increasing the total share capital to 195,216,580 shares[184]. - The total number of shares held by the company increased by 16,218,860 shares due to the bonus share distribution[184]. - The company reported a total of 61,649,200 shares before the distribution, which increased to 77,868,060 shares after the distribution[184]. - The company’s total share capital before the distribution was 150,166,600 shares[184]. Risk Management - The company has outlined various risks and countermeasures in its operations, which are detailed in the management discussion and analysis section[8]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[7]. - The company has a comprehensive risk management strategy in place, as detailed in the report[8]. - The company faces market competition risks, particularly in the trichlorosilane and high-purity tetrachlorosilane markets, which may affect sales prices and volumes[154]. - The company is exposed to raw material price fluctuation risks, which could impact product gross margins due to high raw material cost proportions[158]. - The company’s export revenue is significantly affected by exchange rate fluctuations, as a substantial portion of its income is settled in USD[159]. Production and Capacity - The company plans to increase production capacity in response to the growing demand for trichlorosilane products in 2022[31]. - The company plans to expand its production capacity for trichlorosilane to 50,000 tons per year and silicon tetrachloride to 20,000 tons per year, with construction nearing completion and expected trial production in Q3 2022[41]. - The company’s high-purity silicon tetrachloride production capacity reached 30,000 tons per year following the commissioning of the second phase project in May 2021, addressing supply-demand imbalances in the market[38]. - The company has a designed capacity of 6.5 million tons for trichlorosilane with a utilization rate of 94.60% and a designed capacity of 5.6 million tons for potassium hydroxide with a utilization rate of 129.37%[122]. - The company’s production capacity for electronic-grade dichlorodihydrosilane is 500 tons with a utilization rate of 7.07%[122]. - The company’s production capacity for electronic-grade trichlorosilane is 1,000 tons with a utilization rate of 8.90%[122]. Acquisitions and Investments - The company acquired 100% equity of Sanfu Nano Materials in July 2021, which significantly improved operational performance and contributed profits after previously struggling[37]. - The company acquired 100% equity of Tangshan Aoseya Chemical Co., Ltd. for 50.44 million RMB, which has become a wholly-owned subsidiary[132]. - The company plans to invest in the construction of a project with an annual production capacity of 73,000 tons of silane coupling agent products through its subsidiary Tangshan Sanfu New Materials Co., Ltd.[177]. - The company plans to increase its investment in its wholly-owned subsidiary, Sanfu Nano, by RMB 76.475 million, raising its registered capital to RMB 277 million[133]. - The company approved a proposal to invest in a 50,000 tons/year trichlorosilane project during the board meeting on October 8, 2021[198]. Research and Development - The company’s R&D expenses increased by 62.70% to 70,134,572.77 RMB, reflecting a commitment to innovation[71]. - The company’s total R&D investment was 701.35 million yuan, which is 4.39% of the operating revenue[88]. - The company employed 115 R&D personnel, making up 9.80% of the total workforce[89]. - The company organized 28 patent applications in 2021, including 5 invention patents, and has a total of 74 valid authorized patents[112]. - The company is committed to increasing R&D investment and attracting high-end talent to support its transformation and development[153]. Governance and Compliance - The company reported a standard unqualified audit opinion from Xinyong Zhonghe Accounting Firm[5]. - The company maintains an independent financial accounting department and has established a separate accounting system[174]. - The company has a complete and independent business system, ensuring no interference from controlling shareholders in its operations[174]. - The company has implemented a strict information disclosure management system to ensure timely and accurate communication with investors[170]. - The company’s independent governance structure complies with relevant laws and regulations, ensuring the protection of shareholders' rights[173]. Market and Industry Trends - In 2021, domestic photovoltaic installations reached 54.88 GW, with global installations at 160 GW, indicating a strong demand for trichlorosilane products[46]. - The global semiconductor market sales reached USD 397.9 billion in the first nine months of 2021, with a year-on-year growth of 24.6%[146]. - The trichlorosilane industry is expected to see increased demand due to the gradual release of 2.1 million tons of new polysilicon production capacity from 2022 to 2024[141]. - The company is focusing on the domestic market for electronic specialty gases, with significant potential for increased demand for domestic materials[48]. - The market for fumed silica is expected to grow steadily, driven by increasing demand across various industries[51]. Environmental and Safety Measures - The company is enhancing its environmental protection measures to comply with stricter regulations, which may increase operational costs in the short term[161]. - The company has a strategic focus on enhancing its safety and environmental management, with dedicated personnel overseeing these areas[187].