SCAC(SH:900908)2022-03-25 16:00Financial Performance - The company's operating revenue for 2021 was CNY 6,664,189,491.23, representing a 36.32% increase compared to CNY 4,888,662,506.77 in 2020[23]. - The net profit attributable to shareholders was CNY 1,771,707,582.74, a significant increase of 192.03% from CNY 606,691,868.34 in the previous year[24]. - The net cash flow from operating activities reached CNY 1,377,706,272.09, marking a 237.06% increase compared to CNY 408,743,199.39 in 2020[24]. - The total assets of the company at the end of 2021 were CNY 9,300,488,421.59, which is a 49.65% increase from CNY 6,214,957,737.22 in 2020[24]. - The net assets attributable to shareholders increased to CNY 6,864,775,657.24, reflecting a 33.54% growth from CNY 5,140,749,296.66 in the previous year[24]. - Basic earnings per share increased by 192.05% to CNY 1.5321 compared to CNY 0.5246 in the previous year[25]. - The weighted average return on equity rose to 29.51%, an increase of 17.13 percentage points from 12.39% in the previous year[25]. - Total revenue for Q4 2021 reached CNY 1,998,186,411.88, with net profit attributable to shareholders at CNY 628,184,331.76[27]. Operational Highlights - The company reported a significant increase in revenue and net profit due to increased production and rising product prices as the domestic economy recovered from the pandemic[25]. - The company completed key projects on schedule, including a 200,000 tons/year vinyl chloride project and a PVC special resin upgrade project, which began production in the second half of 2021[37]. - The company is advancing its digital transformation by leveraging industrial internet and big data analytics to enhance operational efficiency[37]. - The company is focusing on R&D in three main areas: chlorine and hydrogen chloride new products, special resins, and polyether polyols[37]. - The company has established a strong international sales platform and maintains a high market share in the domestic dichloroethane market[44]. Cost and Revenue Management - Operating costs amounted to RMB 4.54 billion, reflecting an 11.89% increase year-on-year[47]. - The gross profit margin for the industrial sector increased by 16.30 percentage points to 39.90%[50]. - The gross profit margin for chlor-alkali products was 41.70%, an increase of 20.21 percentage points compared to the previous year[50]. - The company’s sales revenue from the Chinese market was RMB 6.26 billion, with a gross profit margin of 32.10%[50]. - The company aims to optimize its product sales structure and enhance profitability by integrating marketing resources and adopting a differentiated marketing strategy for its PVC products[77]. Research and Development - Research and development expenses rose to RMB 169.90 million, marking a 40.52% increase year-on-year[47]. - The number of R&D personnel was 164, making up 16.50% of the total workforce, with a significant portion holding master's degrees[61]. - The company is actively pursuing the development of high-end polyether products through integrated research on epoxy propane and polyurethane, expanding into new material synthesis and application fields[79]. - The company is focusing on technology innovation, particularly in new products and processes related to chlorine and hydrogen chloride, specialty resins, and polyether polyols[107]. Environmental and Safety Compliance - The company achieved a 100% industrial waste gas treatment rate and a 100% industrial wastewater treatment rate in 2021[143]. - The company received the title of "Green Factory" from the Ministry of Industry and Information Technology at the end of 2021[151]. - The company implemented a VOCs 2.0 governance plan to further reduce VOCs emissions, with ongoing projects for wastewater and waste gas treatment[152]. - The company has a comprehensive emergency response plan for environmental incidents, with no major pollution accidents reported in 2021[148]. - The company is committed to green low-carbon manufacturing, aiming to establish itself as a leader in digitalization within the chemical industry[103]. Governance and Management - The company has established independent financial, personnel, and operational structures, ensuring no interference from the controlling shareholder[113]. - The company has a diverse management team with extensive experience in various sectors, including finance, technology, and operations[117][118]. - The board includes independent directors with backgrounds in academia and industry, enhancing governance and strategic oversight[117][118]. - The company has maintained its leadership structure without significant changes in personnel during the reporting period[116]. - The company has implemented a salary and performance evaluation system for senior management[139]. Financial Audit and Compliance - The audit report confirmed that the financial statements fairly present the company's financial position as of December 31, 2021, in accordance with accounting standards[195]. - Key audit matters included the recognition of sales revenue, which is critical for assessing the company's financial performance and involves various internal controls[197]. - The management is responsible for ensuring the financial statements are free from material misstatement due to fraud or error, emphasizing the importance of internal controls[200]. - The audit procedures included testing the effectiveness of internal controls related to revenue recognition and verifying sales contracts and invoices[198]. Market and Industry Trends - The demand for caustic soda products is expected to grow rapidly due to new urbanization and consumption upgrades in China[102]. - The chlor-alkali industry in China is seeing a clearer layout, with 81% of the caustic soda production capacity concentrated in North China, Northwest, and East China regions[101]. - The domestic caustic soda production capacity is primarily concentrated in North China, Northwest China, and East China, which together account for 81% of the total capacity[75]. - The company is set to launch the 200,000 tons/year vinyl chloride project and the PVC specialty resin upgrade project, with the Guangxi Qinzhou project expected to commence operations in Q4 2022[106].