Jalon(SH:688357)2022-03-09 16:00Financial Performance - The company's operating revenue for 2021 was CNY 877,645,727.41, representing a 94.36% increase compared to CNY 451,549,981.64 in 2020[21]. - The net profit attributable to shareholders increased by 116.22% to CNY 275,405,809.23 from CNY 127,370,724.24 in the previous year[23]. - The net profit after deducting non-recurring gains and losses rose by 125.02% to CNY 245,782,797.05, up from CNY 109,229,410.44 in 2020[23]. - The net cash flow from operating activities increased by 204.52% to CNY 387,777,067.99, compared to CNY 127,341,756.34 in the previous year[23]. - The total assets grew by 42.23% to CNY 1,681,652,249.15 from CNY 1,182,374,890.54 in 2020[23]. - The net assets attributable to shareholders increased by 25.62% to CNY 1,224,339,993.62, compared to CNY 974,606,512.80 at the end of 2020[23]. - Basic earnings per share reached CNY 4.76, a 116.36% increase from CNY 2.2 in the previous year[22]. - The weighted average return on equity was 24.16%, an increase of 10.29 percentage points from 13.87% in 2020[22]. Dividend Distribution - The company plans to distribute a cash dividend of 15.00 RMB per 10 shares, totaling approximately 86,990,769.00 RMB, which accounts for 31.59% of the net profit attributable to shareholders for the year 2021[6]. - The cash dividend policy prioritizes cash distribution, with a minimum of 80% cash dividend for mature companies without significant capital expenditure plans[188]. - The company's cash distribution conditions include positive distributable profits and sufficient cash flow, ensuring no impact on ongoing operations[188]. Research and Development - Research and development expenses accounted for 4.80% of operating revenue, up from 4.24% in 2020[22]. - The company reported a significant increase in R&D expenses, with a total of ¥42,145,074.20 in the current year, representing a 120.23% increase compared to ¥19,137,029.89 in the previous year[64]. - The company emphasizes R&D investment and has established a dual-driven R&D model combining independent and collaborative research, enhancing its innovation capabilities[41]. - The company has established joint laboratories with Nankai University and Dalian University of Technology to enhance R&D efforts in carbon capture and molecular sieve technology[62]. - The R&D team is composed of experienced professionals, contributing to the company's innovation and product development[75]. Market Position and Growth - The company attributed its revenue growth to the expanding market for molecular sieves and enhanced production capacity[23]. - The molecular sieve market was valued at $6.4 billion in 2020 and is projected to reach $8.49 billion by 2028, with a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028[54]. - The company is one of the leaders in the domestic molecular sieve industry, with a production scale that ranks among the top globally, continuously expanding its production capacity[44]. - The industrial gas market, where molecular sieves are essential, is expected to grow at a rate approximately 1.4 times that of GDP, indicating increasing demand for molecular sieves[44]. - The company is well-positioned to benefit from the growing demand for molecular sieves in both industrial and medical applications, driven by aging populations and increasing health awareness[50]. Corporate Governance - The board of directors and management have confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements[5]. - The company has established a complete governance structure, ensuring independent operation of the board of directors, supervisory board, and management team, promoting healthy and sustainable development[156]. - The company has implemented strict information disclosure practices, ensuring transparency and equal access to information for all shareholders[157]. - The company has not faced any issues regarding independence or operational autonomy from its controlling shareholders[158]. - The company has established a compensation and assessment committee under the board of directors to oversee the remuneration and evaluation of senior executives[200]. Risks and Challenges - The company has outlined potential risk factors in its operations, which are detailed in the management discussion and analysis section[5]. - The company faces risks related to product iteration, as competitors may introduce more efficient molecular sieves, potentially impacting market share[80]. - The company is exposed to raw material price fluctuations, which could adversely impact performance if sales prices do not adjust accordingly[83]. - The ongoing COVID-19 pandemic may affect the capacity release and market expansion of the company's overseas projects[87]. - The company is subject to macroeconomic risks that could impact its operations and financial performance[86]. Production and Capacity - The company has a total production capacity of 45,000 tons for molded molecular sieves and activated molecular sieves, positioning it favorably in the domestic market compared to peers[54]. - The company added 10,000 tons of molecular sieve raw powder capacity and 22,000 tons of molded molecular sieve capacity during the reporting period[134]. - The average capacity utilization rates for molecular sieve raw powder, activated powder, molded molecular sieve, and activated alumina were 106.45%, 79.37%, 89.10%, and 63.32% respectively[135]. - The company has developed molecular sieve products with a production capacity of 41,000 tons for raw powder and 42,000 tons for shaped molecular sieves as of December 31, 2021[74]. Employee and Management - The total number of employees in the parent company is 659, and in major subsidiaries, it is 63, resulting in a total of 722 employees[184]. - The company has established a salary policy that emphasizes performance-based distribution and aims to enhance employee motivation and innovation[185]. - The company has a training plan that includes targeted skills training for employees based on their positions and levels, as well as management training to improve leadership capabilities[186]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 6.6922 million RMB[171]. - The company has implemented a performance assessment mechanism for senior management to ensure accountability[200].