Zhejiang Huada New Materials (SH:605158)2022-04-21 16:00Financial Performance - The company achieved a total operating revenue of RMB 8,506,026,617.11 in 2021, representing a 39.42% increase compared to RMB 6,100,999,980.93 in 2020[22]. - The net profit attributable to shareholders of the listed company was RMB 147,889,380.30, a decrease of 46.26% from RMB 275,212,693.01 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 137,500,611.66, down 46.96% from RMB 259,256,779.08 in 2020[22]. - The net cash flow from operating activities was RMB 231,451,554.34, a decline of 39.30% compared to RMB 381,335,333.15 in the previous year[22]. - Total assets increased by 25.21% to RMB 3,221,690,222.97 at the end of 2021, up from RMB 2,572,983,379.64 at the end of 2020[23]. - The net assets attributable to shareholders of the listed company rose to RMB 2,014,718,707.35, reflecting a 2.52% increase from RMB 1,965,179,327.05 in 2020[23]. - The company achieved a total sales volume of 1.4673 million tons and a revenue of 8.506 billion RMB, representing a year-on-year growth of 39.42%[33]. - The net profit for the year was 148 million RMB, with a significant decrease in earnings per share, which fell by 54.10% to 0.2892 RMB per share[24]. - The weighted average return on equity decreased to 7.46%, down from 19.80% in the previous year, reflecting a decline of 12.34 percentage points[24]. - The cost of goods sold increased by 44.78% to CNY 7,951,719,972.90, indicating rising production costs[60]. - Revenue increased by 33.5% year-over-year, mainly driven by higher product sales prices[61]. Production and Capacity Expansion - The company produced 669,200 tons of colored coated sheets and 1,441,000 tons of hot-dip aluminum-zinc plates during the reporting period[33]. - The company is expanding its production capacity with a new project to produce 350,000 tons of hot-dip aluminum-zinc plates, which has already entered trial production[34]. - A new project for producing 1.6 million tons of high-performance metal decorative panels is under development, with preliminary market research and feasibility studies completed[34]. - The production volume of hot-dip galvanized aluminum plates was 1,441,013.39 tons, an increase of 3.49% compared to the previous year[63]. Research and Development - Research and development expenses rose by 40.85% to CNY 286,076,752.76, reflecting a commitment to innovation[60]. - The total R&D expenditure for the period was CNY 286,076,752.76, accounting for 3.36% of operating revenue[73]. - The company has 117 R&D personnel, representing 12.59% of the total workforce[74]. - In 2021, the company initiated 15 independent R&D projects, completing 12, resulting in 5 new technologies and 4 new products[75]. - The company added 1 invention patent and 1 utility model patent during the reporting period, with 18 new national patent applications, including 7 invention patents[38]. Market and Sales - The total revenue from foreign exchange reached 34.4 million USD, marking a year-on-year increase of 39.84%[33]. - In 2021, the company achieved significant growth in sales revenue and foreign trade export, maintaining its position as the top exporter in Fuyang District, Hangzhou[36]. - The company actively expanded its domestic sales regions and utilized the "Belt and Road" initiative to develop markets in emerging countries[35]. - The company exports to over 40 countries and regions, with a strong presence in East China and Southeast Asia, South Asia, West Asia, Eastern Europe, and South America[45]. Risk Management and Compliance - The company has acknowledged potential risks in its future development plans, urging investors to be cautious[7]. - The company has maintained compliance with decision-making procedures regarding external guarantees[8]. - The company has established a comprehensive internal control system to ensure effective operation and compliance with regulations, enhancing governance and risk management[125]. - The company has no instances of fund occupation by controlling shareholders or related parties, ensuring financial integrity[129]. Environmental and Social Responsibility - The company was recognized as a "Green Low-Carbon Factory" in Hangzhou in 2021[176]. - The company invested approximately 480,000 yuan in a water reuse project, which is expected to reduce wastewater discharge by 90,000 tons annually[185]. - The company achieved a 100% operational rate for all environmental protection facilities, with online monitoring systems installed at wastewater and VOCs emission points[179]. - The company reported that its pollutant emissions were below the permitted limits, with no environmental pollution incidents occurring during the reporting period[176]. - The company donated a total of 294,200 CNY to 21 families in difficulty and 300,000 CNY to the Fuchun Education Fund in Hangzhou during the reporting period[189]. - The company was awarded the title of "Hangzhou Employment Poverty Alleviation Caring Enterprise" for its contributions to social responsibility in 2021[188]. Governance and Management - The management team consists of experienced professionals with diverse backgrounds in various industries, enhancing the company's strategic capabilities[137]. - The company has maintained a stable leadership structure with no significant changes in the board of directors during the reporting period[138]. - The company held its third extraordinary general meeting on October 15, 2021, approving the election of a new board of directors and supervisory board[139]. - The company has established a clear organizational structure with independent operational entities, ensuring effective governance and decision-making processes[130]. - The company has established specialized committees under the board, including an audit committee and a strategic investment committee[153]. Shareholder and Equity Management - The total number of shares held by Chairman Shao Mingxiang increased from 15,490,000 to 20,137,000, a change of 4,647,000 shares due to equity distribution[135]. - The total pre-tax remuneration for Shao Mingxiang was 1.9198 million yuan, while Shao Mingxia, the General Manager, received 1.6798 million yuan[135]. - The company has a cash dividend policy that ensures a minimum of 10% of the distributable profit is paid out as cash dividends annually for the first three years post-IPO[167]. - The company plans to maintain a minimum of 20% cash distribution in any combined cash and stock dividend distribution[168]. Future Outlook - The company recognizes the need to adapt to rapid changes in market demand due to advancements in new material technologies to maintain its competitive position[115]. - Future guidance suggests a positive outlook for revenue growth driven by increased demand for innovative materials[141].