HUASHENG(605180)2022-04-25 16:00Dividend and Share Capital - The company plans to distribute a cash dividend of 10 RMB per 10 shares, totaling 100 million RMB (including tax) based on a total share capital of 100 million shares as of December 31, 2021, resulting in a cash dividend payout ratio of 55.43%[6]. - The company intends to increase its share capital by 3 shares for every 10 shares held, raising the total share capital from 100 million to 130 million shares[6]. - The company will increase its total share capital to 130 million shares by distributing 3 additional shares for every 10 shares held, using capital reserves[128]. - The company’s cash dividend policy requires that at least 10% of the annual distributable profit be distributed in cash, and the cumulative cash distribution over the last three years must be at least 30% of the average annual distributable profit[124]. - The company’s cash dividend ratio will vary based on its development stage, with a minimum of 80% for mature stages without major capital expenditures[125]. - The board of directors will consider industry characteristics, development stage, and operational needs when proposing cash dividend policies[125]. - The total distributable profit as of December 31, 2021, is RMB 361,924,845.85, with a net profit attributable to shareholders of RMB 180,408,690.23 for the year[127]. - The company emphasizes continuous and stable returns to investors while ensuring sustainable development[127]. Financial Performance - The company achieved operating revenue of CNY 642,617,939.96 in 2021, representing a 74.22% increase compared to the previous year[27]. - Net profit attributable to shareholders reached CNY 180,408,690.23, a growth of 67.77% year-over-year, primarily due to a significant increase in sales of sealing materials[28]. - The net cash flow from operating activities was CNY 30,639,685.94, a decrease of 62.37% from the previous year, mainly due to increased cash payments for materials and semi-finished products[28]. - Total assets at the end of 2021 amounted to CNY 1,239,596,428.89, up 138.35% from the end of the previous year, driven by funds raised from a public stock issuance and increased inventory and accounts receivable[28]. - The net assets attributable to shareholders increased to CNY 1,143,958,956.69, reflecting a 137.37% growth year-over-year, attributed to capital raised from stock issuance and increased net profit[28]. - Basic earnings per share rose to CNY 1.97, a 37.76% increase compared to the previous year, driven by the growth in net profit[26]. - The weighted average return on equity decreased to 20.20%, down 4.55 percentage points from the previous year[27]. - The company reported quarterly revenues of CNY 152,216,672.69, CNY 182,261,226.01, CNY 159,442,310.40, and CNY 148,697,730.86 for Q1, Q2, Q3, and Q4 respectively[29]. - The net profit attributable to shareholders for the fourth quarter was CNY 29,988,900.67, showing a decline compared to earlier quarters[30]. Research and Development - The company holds 22 core technology patents, including 11 invention patents, and has participated in the formulation of over 10 national and industry standards[52]. - The company is actively involved in R&D projects, including high-strength water pool materials and new yacht materials, enhancing its technological advantages[52]. - Research and development expenses increased by 80.75% to 22.19 million yuan, reflecting a commitment to innovation[61]. - The company has developed several new products, including anti-static reinforced duct fabric and flame-retardant environmentally friendly materials[106]. - The company has a strong focus on R&D, with multiple patents related to composite materials and production processes[106]. Market and Competitive Position - The company continued to expand both domestic and international markets, utilizing online communication to overcome restrictions from the pandemic, and maintained a good growth momentum in business scale[37]. - The company focused on product innovation and development of new technologies to meet specialized, differentiated, and customized market demands[37]. - The industry faced challenges in 2021, with a 13.3% decline in revenue for large-scale enterprises in the industrial textile sector, while the company managed to grow its revenue significantly[39]. - The company operates in a textile industry cluster in Haining, Zhejiang, enhancing its competitive advantage[58]. - The company faces market competition risks, requiring continuous improvement in product R&D and quality to maintain its competitive advantage[91]. Governance and Compliance - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, including rules for shareholder meetings and board operations[131]. - The company is committed to optimizing its governance structure and improving internal control mechanisms to enhance overall operational efficiency[98]. - The company held 4 shareholder meetings during the reporting period, ensuring compliance with relevant laws and regulations[99]. - The board of directors convened 8 meetings, adhering to the company's articles of association and procedural rules[100]. - The supervisory board held 8 meetings, ensuring independent oversight of the board's operations and company finances[100]. - The company strictly follows information disclosure obligations, ensuring transparency and timely communication with shareholders[100]. - The company has not reported any significant deficiencies in internal control during the reporting period[132]. Environmental Responsibility - The company has implemented environmental protection measures, including the installation of pollution control facilities, to ensure compliance with environmental standards[135]. - The company has conducted third-party monitoring of pollutant emissions, with results meeting the required standards[136]. - The company has undertaken a low-nitrogen transformation project for its natural gas boiler to effectively reduce nitrogen oxide emissions[138]. - The company has replaced some diesel forklifts with new energy forklifts to further decrease carbon emissions[138]. - The company donated 100,000 yuan to local charitable initiatives during the reporting period[139]. Shareholder Structure and Commitments - 华生投资 holds 1,781.25 million shares, accounting for 17.81% of the company[107]. - 华册投资 holds 375.00 million shares, representing 3.75% of the company[107]. - The controlling shareholder commits to not reducing their holdings of the issuer's shares for 36 months from the date of the issuer's stock listing[148]. - The controlling shareholder must disclose their reduction plan 15 trading days prior to the first sale, including the number of shares, source, time, method, price range, and reason for reduction[146]. - The company has committed to ensuring that the prospectus does not contain any false records, misleading statements, or major omissions, and will bear legal responsibility for its authenticity, accuracy, and completeness[166]. - The company has signed commitments to optimize investment returns and protect the rights of investors, particularly minority shareholders, by not transferring benefits unfairly or engaging in unrelated investments[171]. - The company will disclose any failure to fulfill commitments and apologize to shareholders and the public if it does not meet its obligations[173]. Audit and Financial Reporting - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team, including the CEO and accounting head[5]. - The company has appointed Tianjian Accounting Firm as the auditor for the 2021 fiscal year, with an audit fee of 600,000 RMB[180]. - There were no significant lawsuits or arbitration matters reported for the year[181]. - The company has not engaged in any significant related party transactions during the reporting period[183].