SHIHUA(SH:688093)2022-04-28 16:00Financial Performance - The company's operating income for 2021 was CNY 425,404,856.30, representing a 29.32% increase compared to CNY 328,956,028.66 in 2020[21]. - The net profit attributable to shareholders for 2021 was CNY 184,281,253.25, a 42.94% increase from CNY 128,921,004.74 in 2020[21]. - The net cash flow from operating activities increased by 147.76% to CNY 182,843,520.70 in 2021, compared to CNY 73,797,238.94 in 2020[23]. - The company's total assets as of the end of 2021 were CNY 1,338,877,703.61, a 13.66% increase from CNY 1,178,001,303.84 at the end of 2020[21]. - The net profit after deducting non-recurring gains and losses was CNY 146,872,262.61 in 2021, a 19.11% increase from CNY 123,304,844.02 in 2020[21]. - The company's net assets attributable to shareholders increased by 14.27% to CNY 1,247,811,668.79 at the end of 2021, compared to CNY 1,091,993,471.28 at the end of 2020[21]. - The gross profit margin for the period was 61.27%, a decrease of 2.04 percentage points compared to the previous year[86]. - Operating costs increased by 36.51% year-on-year, reaching 164.76 million yuan, primarily due to rising raw material and labor costs[84]. R&D and Innovation - The R&D expenditure as a percentage of operating income increased to 7.17% in 2021 from 5.84% in 2020, reflecting a growth of 1.33 percentage points[22]. - R&D expenses for the year amounted to 30.49 million RMB, an increase of 58.83% compared to the previous year, accounting for 7.17% of total revenue[34]. - The total R&D investment for the year reached ¥30,488,044.69, a significant increase of 58.83% compared to ¥19,195,752.93 in the previous year[56]. - The company holds a total of 67 authorized patents, including 35 invention patents and 32 utility model patents[54]. - The company is currently developing several projects, including a waterproof and breathable material with a total investment of ¥787.68 million, of which ¥461.99 million has been invested to date[60]. - The company is developing a UV-curable adhesive with both pressure-sensitive and structural adhesive properties, currently in the laboratory stage[61]. - The company is focused on developing green and environmentally friendly composite functional materials to capture a larger market share in the future[51]. Market Position and Strategy - The company specializes in functional materials with applications in consumer electronics, wearable devices, new energy, smart cars, and medical electronics[41]. - The company has established a strong market position in the domestic functional materials sector, recognized for product performance and rapid response capabilities[48]. - The company aims to become a leading player in the functional materials sector, focusing on sustainable growth and continuous innovation[71]. - The company is actively pursuing new customer development, but the lengthy certification process poses a risk to its strategic expansion[74]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[137]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm[5]. - The company has confirmed that all directors can guarantee the authenticity, accuracy, and completeness of the annual report[9]. - The company has established specialized committees, including the Audit Committee and the Nomination Committee, to enhance governance[151]. - The internal control system has been implemented effectively, with no significant deficiencies reported during the reporting period[179]. - The company emphasizes fair cooperation with creditors and maintains regular communication to safeguard their interests[200]. Environmental and Social Responsibility - The company invested several million RMB in environmental protection during the reporting period, conducting over 200 hours of EHS leadership training to enhance environmental and safety awareness among employees[182]. - The company has implemented multiple environmental management procedures, including waste management and wastewater treatment protocols, to ensure compliance with environmental standards[190]. - The company has set annual energy-saving and emission reduction targets and promotes low-carbon living and green practices among employees[193]. - The company donated 1.5 million RMB to the University of Science and Technology of China over five years (2021-2025) to support the development of the School of Chemistry and Materials Science[183]. - The company organized a table tennis invitational tournament in November 2021 to promote sports and enhance community engagement[198]. Shareholder Returns and Capital Structure - The company plans to distribute a cash dividend of 1.20 RMB per 10 shares, totaling 20,640,000 RMB, which accounts for 11.20% of the net profit attributable to shareholders[5]. - The company will increase its total share capital by 68,800,000 shares through a capital reserve conversion, raising the total share capital to 240,800,000 shares[5]. - The company has not distributed bonus shares for the 2021 fiscal year[5]. - The cash dividend represents 11.20% of the net profit attributable to shareholders of the parent company for the year[163].