Changhong Polymer(SH:605008)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,733,337,309.21, representing a 33.61% increase compared to ¥1,297,282,783.14 in 2020[24]. - The net profit attributable to shareholders for 2021 was ¥184,982,969.44, a decrease of 38.67% from ¥301,626,544.70 in 2020[24]. - The net cash flow from operating activities for 2021 was -¥61,351,373.28, a significant decline of 216.61% compared to ¥52,613,605.54 in 2020[24]. - The total assets increased by 49.91% to ¥3,420,325,637.27 at the end of 2021, up from ¥2,281,624,358.95 at the end of 2020[24]. - The basic earnings per share for 2021 was ¥0.29, down 40.82% from ¥0.49 in 2020[24]. - The company reported a decrease in net profit due to reduced government subsidies and asset write-offs[26]. - The increase in total assets was primarily due to the completion of the first phase of the PBAT project by the subsidiary Changhong Biological[26]. - The company generated new trade revenue of ¥311 million in 2021, contributing to the increase in operating revenue[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥199,452,283.99, a decrease of 26.05% from ¥269,719,676.28 in 2020[24]. - The weighted average return on net assets for 2021 was 10.40%, a decrease of 12.72 percentage points from 23.12% in 2020[24]. - In 2021, the company achieved a total revenue of 1.733 billion yuan, a year-on-year increase of 33.61%, with main business revenue of 1.410 billion yuan, up 10.06% from the previous year[34]. - The net profit for 2021 was 185 million yuan, with a tax-adjusted net profit of 199 million yuan, reflecting a decline compared to the previous year due to various factors including government subsidies and increased costs[34]. - The company achieved operating revenue of 1.733 billion RMB, a year-on-year increase of 33.61%[67]. - The net profit attributable to shareholders was 185 million RMB, a year-on-year decrease of 38.67%[67]. - The company’s basic earnings per share decreased by 40.82% to 0.29 RMB[67]. - The total assets amounted to 3.42 billion RMB, with total liabilities of 1.597 billion RMB, resulting in a debt-to-asset ratio of 46.70%[67]. Production and Capacity - The company produced 97,775.78 tons of SBS products and 16,882.93 tons of SEBS products in 2021, maintaining a high operating rate despite raw material price fluctuations[35]. - The PBAT project, with a capacity of 600,000 tons per year, completed its first phase of 120,000 tons per year in December 2021, generating revenue of 11.62 million yuan[44]. - The company’s designed production capacity is 195,000 tons per year, ranking third nationally, with plans to increase to 290,000 tons after the completion of new projects[65]. - The PBAT project has a planned capacity of 600,000 tons per year, with the first phase already completed at 120,000 tons per year[65]. - The company completed the construction of a 120,000 tons/year biodegradable thermoplastic plastic project in September 2021[139]. - The designed capacity for styrene thermoplastic elastomers in Ningbo is 195,000 tons/year, with a capacity utilization rate of 88.13%[138]. Market and Industry Trends - The demand for biodegradable plastics is expected to exceed 2 million tons in China by 2025, driven by government policies and environmental concerns[54]. - The TPES industry in China has significant growth potential, with increasing domestic production capabilities and a trend towards replacing imported products[53]. - The price of BDO (1,4-butanediol) remains high, impacting the cost of biodegradable materials, but new production capacities are expected to stabilize prices in the long term[48]. - The company is focusing on expanding its production capabilities in the biodegradable plastic sector, responding to the growing market demand and regulatory environment[56]. - The company is targeting a 22.29% increase in direct sales revenue, amounting to approximately CNY 354.96 million[146]. - The company is optimistic about the future market for biodegradable plastics, with many PBAT projects under construction nationwide due to supportive policies[174]. - The company faces risks from intensified market competition and potential oversupply in the PBAT market, which could impact overall profit margins[172]. Research and Development - Research and development expenses increased by 38.47% to 57.47 million RMB, reflecting a commitment to innovation[68]. - The total R&D expenditure was ¥57,466,358.90, accounting for 3.32% of total revenue[86]. - The number of R&D personnel is 63, accounting for 15% of the total workforce[89]. - The company added a significant number of R&D personnel in 2021 due to the establishment of a new subsidiary, Changhong Bio[90]. - New product innovations in 2021 include the ES series and CH series, which enhance product value and performance for downstream applications[122]. - The company is committed to developing new products, including the CH series, and enhancing product quality through a "3H" product strategy focusing on high-end quality, diversification, and terminal sales[163]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights[178]. - The company has not faced any significant regulatory issues requiring corrective actions during the reporting period[178]. - The company has held 4 shareholder meetings and 11 board meetings during the reporting period, ensuring compliance with governance regulations[178]. - The chairman of the board increased his shareholding from 10 million to 14 million shares during the reporting period, reflecting confidence in the company's future[185]. Strategic Initiatives - The company plans to adjust its product structure flexibly based on market demand and raw material prices, particularly in the biodegradable materials sector[52]. - The company aims to expand its industry scale and enhance competitiveness through the integration of high-quality targets in related industries, focusing on high-tech new material development[158]. - The company is leveraging the "Belt and Road" initiative to accelerate international product expansion[156]. - The management team highlighted plans for market expansion and potential mergers and acquisitions to strengthen the company's position[188]. - The company is actively pursuing the construction of a smart factory to improve production efficiency and management levels[163]. - The company is committed to sustainability initiatives as part of its long-term growth strategy[188]. Financial Management - The company reported a negative net cash flow from operating activities of 61.35 million RMB, indicating cash flow challenges[68]. - Accounts receivable increased by 68.97% to approximately 315.26 million, attributed to extended credit terms for key clients[93]. - Prepaid accounts increased by 117.56% to approximately 230.63 million, mainly due to inventory buildup based on raw material market prices[93]. - Inventory rose by 77.33% to approximately 246.84 million, driven by increased procurement costs and the operational launch of a subsidiary's infrastructure[93]. - Fixed assets increased by 116.78% to approximately 1.66 billion, primarily due to the first phase of the PBAT project with an annual capacity of 120,000 tons[96]. - Short-term borrowings increased by 52.19% to approximately 372.44 million, necessary for supplementing working capital for production operations[96]. - Long-term borrowings surged by 788.69% to approximately 648.00 million, mainly for financing fixed asset projects of subsidiaries[99]. - The company’s capital reserve decreased by 34.51% to approximately 348.23 million due to the transfer of capital reserves to increase share capital[102]. Management and Personnel - The company has appointed several executives in various positions, including Zhang Yan as the financial director of Ningbo Huamao Education Group since February 2006[200]. - The total remuneration for directors, supervisors, and senior management during the reporting period was consistent with actual payments received[200]. - The remuneration for independent directors is set at a pre-tax annual allowance of 50,000 RMB[200]. - The company has multiple executives holding positions in other companies, such as Tao Chunfeng serving as an executive director in several energy-related firms since 2017[200]. - The company has a diverse management team with members holding various roles across different organizations, enhancing its operational capabilities[200]. - The company has seen changes in its management team, with Ni Xiaoliang resigning as deputy general manager for personal reasons[200].