Sanfu Technology(SH:688359)2022-04-21 16:00Financial Performance - The company achieved operating revenue of CNY 375,651,261.18 in 2021, representing a year-on-year growth of 31.00% due to the recovery from the COVID-19 pandemic and expanded sales scale[25]. - The net profit attributable to shareholders was CNY 53,090,281.31, an increase of 6.22% compared to the previous year[25]. - The net profit after deducting non-recurring gains and losses was CNY 38,538,623.37, showing a decrease of 15.46% year-on-year[25]. - The company's net cash flow from operating activities was negative at CNY -27,350,948.00, a decline of 184.14% compared to the previous year[25]. - The total assets at the end of 2021 were CNY 643,472,609.51, an increase of 76.26% compared to the end of 2020[25]. - The net assets attributable to shareholders reached CNY 546,279,062.50, reflecting a growth of 91.27% year-on-year[25]. - Basic earnings per share for 2021 were CNY 0.64, down 11.11% from CNY 0.72 in 2020[26]. - The main business income from electronic chemicals was ¥251,132,747.59, up 56.29% year-on-year[121]. - The main business cost increased to ¥252,873,562.31, reflecting a year-on-year growth of 52.39%[126]. - The gross profit margin for the main business decreased by 8.05 percentage points to 31.53%[121]. Dividend and Capital Management - The company plans to distribute a cash dividend of 1.75 CNY per 10 shares, totaling 16,131,500 CNY (including tax), representing a cash dividend payout ratio of 30.39% for the year 2021[6]. - The company does not plan to increase capital reserves or issue bonus shares in the current profit distribution plan[6]. Audit and Governance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no significant omissions or misleading statements[5]. - The audit report issued by Huaxing Accounting Firm confirms a standard unqualified opinion for the financial statements[5]. - The company has established a governance structure compliant with the requirements of the Company Law and the Shanghai Stock Exchange, including a board of directors and specialized committees[183]. - The company has maintained a clear and effective internal control system to enhance governance and protect investor rights, ensuring compliance with legal regulations[183]. Research and Development - The R&D investment accounted for 5.17% of operating revenue, a slight decrease of 0.16 percentage points compared to the previous year[26]. - Research and development expenses totaled ¥19,413,925.37 this year, an increase of 27.11% compared to ¥15,273,679.31 last year[81]. - The company is currently working on eight research projects, with total expected investments ranging from ¥520,000 to ¥2,520,000 for each project[87]. - The company has focused on developing a nickel-free chemical copper stabilizer, with a budget of CNY 1,300,000 and a final cost of CNY 1,296,480.41, meeting increasing environmental demands[14]. - The company has established a comprehensive talent cultivation and incentive mechanism, attracting a large number of excellent R&D and management talents, which supports continuous innovation and development[103]. Market and Industry Trends - The global PCB market is projected to grow from USD 65.22 billion in 2020 to USD 86.33 billion by 2025, with significant demand driven by new energy vehicles and 5G technology[41]. - The sales volume of new energy vehicles in China is expected to exceed 2.4 million units in 2021, a year-on-year increase of over 70%[41]. - The surface engineering chemicals industry is recognized as a strategic emerging industry, receiving significant support from national policies to enhance competitiveness and promote green development[145]. - The domestic market for PCB electronic chemicals is still largely dominated by international giants, indicating potential for growth in local production capabilities[148]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the management discussion and analysis section[4]. - The company anticipates challenges in global economic recovery due to ongoing pandemic impacts and supply chain issues, which may affect future performance[40]. - The company faces risks related to raw material price fluctuations, which could negatively impact gross margins and total profits if prices rise significantly[110]. - The company faced risks from market demand fluctuations due to various macroeconomic factors, including the COVID-19 pandemic and trade tensions[115]. Strategic Initiatives - The company plans to continue expanding its market presence and enhancing product development capabilities in the upcoming years[25]. - The company aims to enhance its R&D capabilities through the establishment of the Sanfu Research Institute, targeting industry-leading standards[49]. - The company is focusing on expanding its market presence and enhancing product development in the chemical industry, supported by national policies[142]. - The company aims to increase the localization rate of its products, particularly in high-difficulty areas like PCB specialized chemicals, to reduce dependency on foreign suppliers[148].