JCF(SZ:000420)2022-05-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,580,154,587.89, representing a 43.22% increase compared to CNY 2,499,714,527.34 in 2020[24]. - The net profit attributable to shareholders was a loss of CNY 129,223,717.74, an improvement of 44.61% from a loss of CNY 233,288,434.13 in the previous year[24]. - The net cash flow from operating activities increased by 65.59% to CNY 168,886,089.53, up from CNY 101,987,965.01 in 2020[24]. - The total assets at the end of 2021 were CNY 8,772,528,997.54, a slight increase of 0.97% from CNY 8,688,283,108.42 at the end of 2020[24]. - The net assets attributable to shareholders decreased by 4.48% to CNY 2,962,765,800.86 from CNY 3,101,743,007.81 in 2020[24]. - The basic earnings per share for 2021 were -CNY 0.0596, an improvement of 44.61% from -CNY 0.1076 in 2020[24]. - The weighted average return on equity was -4.25%, an improvement from -8.06% in the previous year[24]. - The company reported a net profit before and after deducting non-recurring gains and losses, both of which were negative for the last three accounting years[24]. Market and Product Insights - The company’s viscose filament yarn export volume reached 94,487 tons in 2021, marking a year-on-year increase of 70.45%[38]. - The global production capacity of viscose filament yarn is approximately 280,000 tons, with China accounting for over 75% of this capacity[38]. - The apparent consumption of viscose staple fiber in 2021 reached 3.6 million tons, with a year-on-year growth of 8% in yarn production and 7% in fabric production[38]. - The carbon fiber market demand is expected to grow significantly, driven by the transition to green energy and the maturity of the carbon fiber industry chain[38]. - The company is actively extending its product line into the carbon fiber sector, which is anticipated to bring substantial market opportunities[38]. - The company has maintained its leading position in the viscose filament yarn industry, becoming the largest manufacturer globally due to its technological and quality advantages[50]. Production and Capacity - The company has an annual production capacity of approximately 80,000 tons for viscose filament yarn, with a utilization rate of 84.07%[42]. - The production capacity for viscose staple fiber is designed at 120,000 tons per year, with an actual utilization rate of 88.38%[46]. - The company is actively expanding its carbon fiber production, with a planned annual capacity of 600 tons for small tow carbon fiber and 12,000 tons for carbon fiber composite products[42]. - The company has acquired a 49% stake in Jilin Baojing, focusing on the research, production, and sales of large tow, low-cost carbon fiber[42]. Cost and Pricing - The average price of viscose filament cotton pulp increased by 4.31% year-on-year to 8,064 RMB/ton, while viscose staple fiber pulp rose by 31.67% to 6,286 RMB/ton[45]. - The company faced increased production costs due to rising prices of raw materials and energy, impacting the profitability of the viscose fiber industry[38]. - The company reported a significant increase in raw material costs, with over 16% rise in material costs due to global commodity price fluctuations[45]. Research and Development - The company has a stable and strong R&D team, with nearly 60 years of experience, supporting continuous product upgrades and cost control[53]. - The company is increasing R&D investment to enhance the technological content and added value of viscose fiber products while actively transitioning to carbon fiber new materials[98]. - New product development initiatives are underway, with an investment of 500 million yuan allocated for R&D in advanced fiber technologies[125]. Corporate Governance and Compliance - The company is committed to improving its governance structure and ensuring compliance with relevant laws and regulations to protect investor rights[108]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, and operations, ensuring a clear and independent operational framework[109]. - The company has established communication channels with investors through various means, including phone and email, to improve transparency and trust[170]. Environmental and Safety Management - The company emphasizes environmental protection and has integrated energy-saving and emission-reduction efforts into its operational agenda, ensuring compliance with relevant regulations[171]. - The company has implemented emergency response plans for environmental incidents as required by environmental protection departments[167]. - The company has implemented measures to strengthen safety management and risk control following a significant production safety incident in February 2021, including comprehensive inspections and emergency response training[173]. Employee and Remuneration Policies - The company emphasizes a performance-based compensation policy, linking employee pay to work efficiency and individual performance[147]. - The total pre-tax remuneration for directors, supervisors, and senior management amounted to 1.03 million yuan[133]. - The company has implemented a salary structure that reflects the importance and risk of each position[131]. Strategic Initiatives and Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 10% to 12% based on market expansion strategies[125]. - The company plans to raise funds for a 12,000-ton carbon fiber composite materials project, which is expected to enhance market expansion and improve performance returns for investors[97]. - A strategic acquisition of a local competitor is in progress, expected to enhance production capacity by 30%[125].