Ningxia Younglight Chemicals (SZ:000635)2022-04-27 16:00Business Operations - The company reported a significant change in its main business operations, shifting to the manufacturing of basic chemical raw materials and chemical products, including hazardous chemicals and lime production [16]. - The company has undergone several changes in its main business focus over the years, adapting to market demands and regulatory requirements [16]. - The company plans to continue expanding its production capabilities in the chemical sector, focusing on non-hazardous chemical manufacturing [16]. - The company has not made any significant acquisitions or mergers during the reporting period, focusing instead on internal growth strategies [16]. - The company is currently in the process of rebuilding its official website to enhance communication and information dissemination [13]. Financial Performance - The company's operating revenue for 2021 was ¥2,294,978,165.85, an increase of 17.38% compared to ¥1,955,140,585.69 in 2020 [19]. - The net profit attributable to shareholders was ¥4,294,957.73, a decrease of 93.83% from ¥69,588,426.26 in 2020 [19]. - The net profit after deducting non-recurring gains and losses was -¥12,383,820.32, a decline of 121.12% compared to ¥58,641,084.60 in 2020 [19]. - The net cash flow from operating activities increased by 67.13% to ¥147,448,011.22 from ¥88,223,953.81 in 2020 [19]. - The total assets at the end of 2021 were ¥3,055,844,326.25, a decrease of 2.50% from ¥3,134,204,218.65 at the end of 2020 [19]. Production Capacity and Market Trends - The company plans to construct a new project with an annual production capacity of 300,000 tons of calcium carbide, which includes the installation of four 40.5MVA closed calcium carbide furnaces [31]. - The domestic calcium carbide production capacity was approximately 41.5 million tons, with a net decrease of 1.7 million tons in 2021 [31]. - The company’s calcium carbide production capacity is currently 100,000 tons, primarily for self-use in PVC production [31]. - The company reported a significant increase in PVC market prices, which reached historical highs before a rapid decline [34]. - The company has an annual PVC production capacity of 260,000 tons, including 40,000 tons of PVC paste resin [37]. Cost and Pricing Factors - The average procurement price of electricity coal increased by 76.45% year-on-year, reaching 410.90 yuan [49]. - The average procurement price of raw salt increased by 11.59% year-on-year, reaching 273.90 yuan [50]. - The average price of calcium carbide increased significantly, with the average procurement price rising to 5,142.92 yuan in the second half of the year [48]. - The total operating cost increased by 30.99% to ¥1,504,518,957.33, with raw material costs for PVC rising by 32.82% [72]. Environmental and Safety Compliance - The company has achieved 100% compliance in hazardous waste disposal and wastewater discharge standards [59]. - The company has focused on safety and environmental protection, achieving full compliance in environmental facility operation rates [59]. - The company is currently applying for environmental impact assessments for its projects, including a 300,000-ton calcium carbide technical reform project [52]. - The company has identified risks related to safety production, quality, and environmental protection, and has established measures to mitigate these risks [110]. Governance and Management - The company has established a corporate governance mechanism with independent directors and a supervisory board to effectively oversee management [195]. - The board of directors consists of 8 members, all of whom are currently serving [139]. - The current chairman of the board is Zhang Hua, who has been in position since April 18, 2019 [139]. - The general manager, Tian Shaoping, has been in position since May 22, 2018 [139]. - The company has independent directors, including Wang Bin and Lu Wanming, both currently serving [139]. Shareholder Relations and Dividends - The company did not distribute cash dividends or bonus shares for the reporting period [3]. - The company did not propose a cash dividend distribution plan for the 2021 fiscal year, opting to retain profits for operational needs and future development [187]. - The company has been actively communicating about its production and sales conditions, including the impact of energy control policies on its operations [118]. Research and Development - The company has not disclosed any new product or technology developments in the provided data [89]. - The number of R&D personnel increased by 280.00% to 19, with a significant rise in the number of personnel holding a bachelor's degree [79]. - Research and development expenses dropped by 56.89% to CNY 598,200.68, reflecting a reduction in R&D projects [77]. Future Outlook and Strategic Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on current market trends and product demand [141]. - New product launches are expected to contribute an additional 300 million RMB in revenue, with a focus on innovative chemical solutions [141]. - The company plans to implement a new supply chain management system to reduce lead times by 20% [141]. - The company aims to improve its gross margin from 35% to 40% through cost optimization strategies [141].