Zhejiang Yingfeng Technology (SH:605055)2022-04-27 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of 83.24 million yuan, with retained earnings at the end of the year amounting to 357.88 million yuan[6]. - The company's operating revenue for 2021 was CNY 1,261,684,395, representing a 61.82% increase compared to CNY 779,660,526 in 2020[22]. - Net profit attributable to shareholders of the listed company increased by 3.23% to CNY 83,243,350 in 2021, up from CNY 80,642,486 in 2020[22]. - The net profit after deducting non-recurring gains and losses decreased by 23.34% to CNY 61,473,845 in 2021, compared to CNY 80,191,785 in 2020[22]. - The net cash flow from operating activities increased by 134.77% to CNY 287,638,679 in 2021, up from CNY 122,521,459 in 2020[22]. - Total assets at the end of 2021 were CNY 2,115,305,403, a 31.34% increase from CNY 1,610,508,896.80 at the end of 2020[22]. - Basic earnings per share for 2021 were CNY 0.19, down 13.64% from CNY 0.22 in 2020[23]. - The weighted average return on equity decreased by 3.82 percentage points to 7.70% in 2021, compared to 11.52% in 2020[23]. Dividend Policy - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year, focusing on long-term sustainable development[6]. - The company plans to retain undistributed profits to ensure sufficient liquidity for normal operations and to invest in research and development, rather than distributing cash dividends[119]. - There are no plans for cash profit distribution or stock dividends for the current year due to operational risks and rising costs[119]. Research and Development - The company invested 50.10 million yuan in R&D during the reporting period, maintaining a continuous growth trend, and holds 12 invention patents and over 60 utility model patents[36]. - R&D expenses increased by 57.98% to CNY 50.10 million, indicating a focus on innovation and product development[51]. - The company aims to enhance its R&D capabilities by developing high-quality textile dyeing technologies and functional textile dyeing technologies, aiming to maintain its technological advantage in the industry[80]. Market and Competitive Position - The company attributed the revenue growth to the launch of the "1.31 billion meters high-end fabric intelligent green dyeing project"[24]. - The company is focusing on enhancing market share and product profit margins by adjusting product structure and expanding its customer base[37]. - The textile dyeing industry showed resilience in 2021, with production volume and export scale improving compared to pre-pandemic levels[38]. - The company is actively responding to market challenges, including high raw material prices and global economic uncertainties, to stabilize its growth[39]. Environmental Management - The company has established a water reuse facility with a wastewater reuse rate exceeding 60%[44]. - The company has invested in pollution control technologies, including a closed-loop system for exhaust gas treatment, which reduces energy consumption during production[125]. - The company has established an emergency response plan for environmental incidents, with plans registered with the local environmental protection bureau[129]. - The company has been proactive in adopting advanced dyeing and environmental protection equipment to promote energy conservation and emission reduction[133]. Governance and Management - The company has established a sound governance structure, with effective internal controls and compliance with legal regulations, ensuring independent operation from its controlling shareholders[89]. - The company has maintained transparency in information disclosure, ensuring timely and accurate reporting of significant events and changes[90]. - The company has a diverse management team with extensive experience in the textile and dyeing industry, indicating strong leadership capabilities[97]. - The company has a structured remuneration decision process for directors and senior management, with the board of directors making the final decisions[103]. Risks and Challenges - The company faces risks from intense competition in the dyeing industry, characterized by a high number of small enterprises and low industry concentration[83]. - Fluctuations in raw material and energy prices significantly impact the company's operational costs, which could adversely affect its business if not managed effectively[83]. - The ongoing COVID-19 pandemic poses risks to consumer confidence and may disrupt production, sales, procurement, and logistics, affecting overall performance[86]. Shareholder Information - The largest shareholder, Zhejiang Zheyu Holdings Group Co., Ltd., holds 218,273,684 shares, representing 49.61% of total shares[174]. - The company completed a public offering of 80 million shares, increasing total shares from 360 million to 440 million[166]. - Major shareholders can only transfer up to 25% of their shares annually after the lock-up period ends[144]. - The company will announce any share reduction plans 15 trading days in advance and comply with disclosure obligations[145].