SHIHUA(SH:688093)2023-04-17 16:00Financial Performance - The company plans to distribute a cash dividend of 4.00 RMB per 10 shares, totaling 96,428,976 RMB (including tax), which represents 52.02% of the net profit attributable to shareholders for the year[6]. - The company's operating revenue for 2022 was CNY 462,294,182.65, representing an increase of 8.67% compared to CNY 425,404,856.30 in 2021[22]. - The net profit attributable to shareholders for 2022 was CNY 185,375,040.72, a slight increase of 0.59% from CNY 184,281,253.25 in 2021[23]. - The net cash flow from operating activities for 2022 was CNY 174,268,548.81, down by 4.69% from CNY 182,843,520.70 in 2021[23]. - The total assets at the end of 2022 were CNY 1,472,102,790.24, reflecting a growth of 9.95% from CNY 1,338,877,703.61 at the end of 2021[23]. - The gross profit margin for the year was 60.20%, a decrease of 1.07 percentage points compared to the previous year[84]. - The company reported a total revenue of 3,259.61 million RMB for the year 2022, with a significant increase in user data and product demand[62]. - The company achieved operating revenue of 462 million RMB, a year-on-year increase of 8.67%[34]. - The net profit attributable to shareholders reached 185 million RMB, growing by 0.59% year-on-year[34]. Research and Development - The company's R&D expenditure as a percentage of operating revenue was 6.98% in 2022, a decrease of 0.19 percentage points from 7.17% in 2021[24]. - Research and development expenses amounted to 32.27 million RMB, an increase of 5.84% compared to the previous year[35]. - The total R&D investment for the year was ¥32,268,520.20, an increase of 5.84% compared to the previous year[57]. - The company holds a total of 88 authorized patents, including 50 invention patents and 38 utility model patents[54]. - The company is focusing on developing high-performance conductive adhesive materials, with a target to achieve superior stability and conductivity across various thickness specifications[62]. - The company is developing structural adhesives for new energy vehicles, focusing on reliability, weather resistance, and low VOC emissions[62]. - The company is actively developing and selling recyclable and circular eco-friendly materials, replacing petroleum-based raw materials with bio-based alternatives[198]. Operational Strategy - The company has established a comprehensive "one body, two wings, innovation-driven" development strategy, focusing on high-end functional materials and building strong partnerships with well-known brands[47]. - The company primarily uses a "production based on sales" model, determining raw material procurement quantities based on production plans and inventory levels[41]. - The company is actively expanding into new markets and clients, although the process of client certification can be lengthy and complex[73]. - The company has established long-term stable relationships with major clients, ensuring product and technology leadership, which supports continuous stable growth in operating performance[69]. - The company is committed to continuous innovation in functional materials to meet evolving customer needs, with a focus on optimizing technology outcomes[72]. Market and Industry Trends - The functional materials industry is characterized by high research and development requirements, with significant barriers to entry due to the need for long-term accumulation of material research data and technological capabilities[45]. - The demand for high-end functional materials is expected to grow significantly, driven by advancements in technologies such as 5G, new energy, and flexible displays[49]. - The functional materials market is experiencing a new wave of technological breakthroughs, particularly in OLED display materials and thermal management materials[50]. - The company faces risks related to reliance on end brands and their supply chains, which could impact performance if significant changes occur[73]. - The functional materials industry is characterized by intense competition, with major players including 3M, Nitto, Tesa, and Henkel, alongside domestic manufacturers like Shihua Technology[114]. Governance and Compliance - The board of directors and senior management confirm the accuracy and completeness of the annual report[5]. - The company has received a standard unqualified audit report from the accounting firm[6]. - The company has established a comprehensive governance structure to ensure effective and stable operations, aligning with legal and regulatory requirements[123]. - The company has maintained compliance with legal and regulatory requirements during its shareholder meetings, ensuring transparency and governance[125]. - The company has no reported risks or dissenting opinions from the supervisory board during the reporting period[154]. Environmental and Social Responsibility - The company is committed to ESG principles, integrating them into its operations to promote long-term value and respond to national carbon reduction policies[121]. - The company invested approximately 14.04 million RMB in environmental protection during the reporting period[185]. - The company achieved mass production and sales of bio-based materials, effectively lowering the carbon emissions throughout the product lifecycle[199]. - The company has established an Environmental Safety Department to oversee the implementation and improvement of its environmental protection system[200]. - The company reduced carbon emissions by approximately 1,795 tons during the reporting period[198]. Shareholder and Management Information - The company plans to issue A-shares to specific targets in 2022, with multiple proposals approved during the shareholder meetings, indicating a strategic move for capital raising[127]. - The total remuneration for Chairman Gu Zhengqing was reported at 156.75 million yuan for the year, highlighting the company's investment in leadership[130]. - The company has a total of 1,258.27 million in overseas assets, accounting for 0.85% of total assets[106]. - The company has appointed Zhou Changsheng as the new CFO and Ji Yuwen as the new board secretary during the reporting period[135]. - The company has made strategic adjustments in its management team, which may impact future operational efficiency[135].