Feymer(SH:688350)2022-03-14 16:00Financial Performance - The company reported a total distributable profit of RMB 336,177,878.06 as of December 31, 2021, with a proposed cash dividend of RMB 4.10 per 10 shares, amounting to a total of RMB 50,081,500.00, which represents 46.69% of the net profit attributable to shareholders [5]. - The company's operating revenue for 2021 was CNY 1,452,319,318.41, an increase of 27.98% compared to the previous year [22]. - The net profit attributable to shareholders was CNY 107,253,147.54, reflecting a growth of 2.23% year-on-year [24]. - The net cash flow from operating activities was CNY 96,049,135.99, down 41.99% year-on-year due to increased receivables and inventory costs [25]. - The total assets at the end of 2021 were CNY 1,847,893,883.47, an increase of 41.02% from the previous year [25]. - The net assets attributable to shareholders reached CNY 1,394,285,522.09, up 43.71% year-on-year [25]. - The basic earnings per share for 2021 were CNY 0.90, a decrease of 21.74% compared to 2020 [23]. - The company's total revenue for the reporting period was ¥1,438,371,917.94, representing a year-on-year increase of 27.97% [114]. - The company reported a significant increase in revenue for 2021, reaching a total of 1.5 billion RMB, representing a 20% growth year-over-year [168]. Dividend Policy - The total share capital of the company is 122,150,000 shares, and the cash dividend distribution is subject to approval at the shareholders' meeting [6]. - The company does not plan to issue bonus shares or convert capital reserves into share capital, focusing on cash dividends instead [5]. - The company's board of directors has approved the profit distribution plan, pending shareholder approval, reflecting a commitment to returning value to shareholders [6]. - The company maintains a cash dividend policy that ensures at least 10% of the distributable profits are allocated as cash dividends in profitable years [196]. - The company has a policy that mandates cash dividends to be at least 80% of the distributable profits if in a mature stage without major capital expenditures [197]. Research and Development - Research and development expenses accounted for 4.39% of operating revenue, slightly up from 4.28% in 2020 [23]. - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency [167]. - The total R&D expenditure for the year was ¥63,795,520.60, an increase of 31.30% compared to the previous year, with R&D expenditure as a percentage of operating income rising to 4.39% [80]. - The company has developed over 100 specifications of functional monomers and four categories of water-soluble polymers, enhancing its core industry chain [93]. - The company is focusing on developing high-performance paper strengthening agents to meet the increasing demands of the paper industry, where recycled paper fibers account for 70% of raw materials [63]. Market Expansion and Strategy - The company is exploring acquisition opportunities to enhance its product portfolio, targeting firms with revenues of $100 million to $500 million [167]. - Market expansion efforts have led to a 20% increase in market share in the Asia-Pacific region [167]. - The company plans to enter two new international markets by Q2 2024, aiming for a revenue contribution of $100 million [1]. - The company is actively constructing a project for an annual production capacity of 33,000 tons of water treatment and industrial water specialty chemicals, with trial production expected in Q2 2022 [42]. - The company aims to enhance its competitive edge by providing tailored solutions and maintaining cost competitiveness through large-scale manufacturing of core products [60]. Corporate Governance - The company has established a sound corporate governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management team, complying with relevant laws and regulations [152]. - The company actively engages with shareholders and investors through various communication channels, ensuring their rights are protected [152]. - The company has implemented measures to strengthen the management of insider information and ensure compliance with disclosure obligations [152]. - The company has not encountered any significant issues regarding independence from its controlling shareholders or related party competition [152]. - The company held its annual general meeting in April 2021, where all proposed resolutions were approved without any rejections [157]. Operational Efficiency - The company has reduced operational costs by 5%, resulting in improved profit margins [167]. - The company achieved a significant improvement in product yield and stability by transitioning to a continuous production method for quaternary ammonium salts, resulting in reduced impurities and energy consumption [73]. - The company is focusing on market expansion in the fields of membrane technology and wastewater treatment, with a strong competitive edge in the aluminum ore processing sector [85]. - The company has established a CRM system to digitize the entire sales process, supporting business expansion efforts [40]. - The company plans to implement a comprehensive digital development strategy to improve operational efficiency through various information management systems [147]. Risks and Challenges - The company has outlined various operational risks and corresponding mitigation strategies in the report, emphasizing the importance of risk management [4]. - The company faces risks related to core technology personnel turnover and potential R&D project failures, which could adversely affect operational performance [98]. - The company is exposed to foreign exchange risks, particularly from fluctuations in the RMB exchange rate, which could adversely affect profits as export business scales up [100]. - The company is classified as a key management enterprise under pollutant discharge permit regulations, facing increased scrutiny and potential penalties for environmental compliance [98]. - The company faces risks from macroeconomic fluctuations and extreme weather impacting supply chains [107]. Employee and Talent Management - The company has implemented a comprehensive talent training system, with 27 participants in the "Lingyun Plan" for senior management and 34 in the "Wutong Plan" for middle management [194]. - The total number of employees in the parent company and major subsidiaries is 778, with 566 in the parent company and 212 in subsidiaries [191]. - The company has a total of 48 employees with a master's degree or above, and 164 with a bachelor's degree [192]. - The company has established a performance evaluation system to enhance employee motivation and creativity, with a focus on salary, performance bonuses, and year-end bonuses for senior management [200]. - The company has initiated a new employee stock ownership plan, which will allocate 2.5% of shares to employees, enhancing retention and motivation [171].