Kaili Catalyst & New Materials (SH:688269)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was CNY 158,933.00 million, representing a 51.05% increase compared to CNY 105,218.20 million in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 16,255.55 million, a growth of 54.34% from CNY 10,532.35 million in the previous year[22]. - The net profit after deducting non-recurring gains and losses increased by 46.24% to CNY 14,355.59 million in 2021 from CNY 9,816.57 million in 2020[24]. - The company's total assets reached CNY 115,557.64 million at the end of 2021, a 126.80% increase from CNY 50,952.37 million at the end of 2020[22]. - The net assets attributable to shareholders increased by 151.90% to CNY 84,203.40 million in 2021 from CNY 33,427.73 million in 2020[24]. - Basic earnings per share for 2021 were CNY 1.99, up 32.67% from CNY 1.50 in 2020[23]. - The company's main business income from homogeneous and heterogeneous catalysts grew by 54.08% to RMB 158,022.95 million, with a notable increase in sales volume of precious metal catalysts by 34.43%[110]. - The gross profit margin for the main business decreased by 1.01 percentage points to 16.19%[109]. - The company reported a net profit of RMB 16,255.55 million for the year 2021, with a total distributable profit of RMB 20,436.67 million[193]. Research and Development - The company invested 5,060.01 million RMB in R&D during the reporting period, resulting in 26 new patents, including 25 invention patents[34]. - The company has established a special R&D team in collaboration with Fudan University for the preparation of functional mesoporous carbon-supported precious metal catalysts[34]. - The company has actively expanded its industrial chain layout and increased R&D investment in fine chemicals, basic chemicals, and environmental new energy sectors[34]. - The company has developed multiple low-content precious metal catalysts, enhancing its competitive advantage and reducing user costs[34]. - The company achieved a total R&D investment of ¥5,060.01 million in the reporting period, representing a 51.69% increase compared to ¥3,335.82 million in the previous year[58]. - R&D investment accounted for 3.18% of total revenue, slightly up from 3.17% in the previous year[58]. - The company has developed a series of catalytic synthesis technologies, including over 30 types of catalysts for pharmaceutical and pesticide intermediates, some of which have been authorized for downstream customer use[53]. - The company is actively collaborating with universities and research institutions to enhance its R&D capabilities, which is critical for sustainable development in the catalyst industry[46]. Market Strategy and Expansion - The company plans to continue expanding its market presence and enhancing its product offerings in the catalyst sector[24]. - The company is positioned within the strategic emerging industries, particularly in the new materials sector, as highlighted in national development plans[42]. - The company is leveraging national major technology research plans that include multiple catalyst materials and technologies, providing growth opportunities in the catalyst field[44]. - The company is focusing on enhancing its research and development capabilities and increasing collaboration with universities and research institutions to mitigate technological risks[93]. - The company aims to improve production efficiency by over 25% through optimization of production processes[64]. - The company plans to focus on domestic demand for basic chemical precious metal catalysts, targeting key products such as platinum-alumina catalysts and palladium-alumina catalysts, to achieve import substitution and address critical supply issues[156]. - The company is committed to achieving China's dual carbon goals by developing catalysts for industrial wastewater treatment and air purification, as well as hydrogen fuel cell catalysts with low platinum content[157]. - The company will strengthen its market position through direct sales and an enhanced sales team, while also expanding into international markets to become a globally recognized enterprise[159]. Corporate Governance - The company has established a comprehensive governance structure, including a board of directors and various committees, to ensure effective decision-making and compliance with regulations[161]. - The company strictly adhered to relevant laws and regulations, ensuring shareholder interests and proper corporate governance without significant defects[162]. - The company has a stable management team with no significant changes in shareholding among directors and senior management[166]. - The report highlights the importance of management's shareholding as a governance mechanism[166]. - The company has established a board of directors that complies with legal requirements, with independent directors making up one-third of the board[198]. - The board has implemented rules to enhance decision-making processes and improve the quality of major investment decisions[199]. - The company has set up an audit committee to oversee internal controls and ensure compliance with financial regulations[199]. Financial Health and Risks - The company has not yet achieved profitability since its listing[4]. - The company is facing risks related to the concentration of downstream customers, particularly in the pharmaceutical sector, which could impact overall revenue if new synthesis processes emerge[95]. - The company benefits from a preferential corporate income tax rate of 15% as a high-tech enterprise, but future compliance with relevant standards is crucial to maintain this advantage[99]. - The company has reported a significant increase in employee compensation liabilities, totaling 2,647.79 million, a 2.29% rise, due to year-end bonuses not yet paid[129]. - The company has no reported risks identified by the supervisory board during the reporting period[186]. Operational Efficiency - The company has actively optimized production processes to improve production efficiency and stability, responding effectively to fluctuations in precious metal raw material prices[35]. - The company is focusing on enhancing its research and development capabilities and increasing collaboration with universities and research institutions to mitigate technological risks[93]. - The company is investing in advanced catalytic materials and technology innovation centers, with construction progress accelerating in the ongoing projects[128]. - The company is actively improving the automation and intelligence of its production processes to increase scale, efficiency, and stability[86]. Employee and Management Compensation - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to RMB 720.94 million[176]. - The total remuneration for core technical personnel at the end of the reporting period amounted to RMB 280.84 million[176]. - The remuneration policy for directors and senior management is based on their roles and responsibilities, approved by the board of directors[175]. - The company emphasizes innovation in its compensation policy, linking R&D personnel's performance to innovation outcomes[189]. - The company has a structured training program aimed at enhancing employee skills and safety awareness, with a focus on continuous improvement[190].