HSST(SZ:000707)2022-03-09 16:00Financial Performance - The company's operating revenue for 2021 was ¥3,063,760,181.45, representing a 71.66% increase compared to ¥1,784,818,189.65 in 2020[23]. - The net profit attributable to shareholders in 2021 was ¥422,620,026.76, a significant turnaround from a loss of ¥480,371,219.23 in 2020, marking a 187.98% increase[23]. - The net cash flow from operating activities reached ¥583,163,424.13, up 576.58% from ¥86,192,767.86 in the previous year[23]. - Basic earnings per share improved to ¥0.9105 from a loss of ¥1.035 in 2020, reflecting a 187.97% increase[23]. - The company's total revenue for 2021 reached CNY 3.064 billion, a significant increase of 71.66% from the previous year, with net profit attributable to shareholders rising by 187.98% to CNY 423 million[44][45]. - The company's operating cash inflow increased by 145.83% to approximately CNY 2.36 billion in 2021, compared to CNY 960.82 million in 2020[63]. - The net cash flow from operating activities surged by 576.58% to CNY 583.16 million in 2021, up from CNY 86.19 million in 2020[63]. - The company reported a significant improvement in profits compared to the previous year, attributed to asset optimization and reduced liabilities[148]. Assets and Liabilities - The total assets at the end of 2021 were ¥2,186,967,451.68, a decrease of 27.88% from ¥3,032,609,512.77 at the end of 2020[24]. - The company's asset-liability ratio improved to 73.06%, a decrease of 36.69% compared to the beginning of the year, while net assets increased by 303.03% to CNY 589 million[44]. - The company's total assets decreased by 27.88% to CNY 2.187 billion, primarily due to significant asset restructuring[44][45]. - The company completed a major asset sale in 2021, significantly reducing its debt burden and turning its net assets positive[33]. - The company reduced its interest-bearing debt by 1.538 billion RMB, leading to an annual decrease in financial expenses of about 60 million RMB[166]. - The company reported a total outstanding debt of 79,264,930.81 yuan related to a lawsuit involving a bank and an investment company[176]. Production and Sales - The company achieved a production capacity of 1.1 million tons per year for both soda ash and ammonium chloride, with utilization rates of 97.68% and 98.93% respectively[34]. - In 2021, the company produced 1,074,477 tons of soda ash, an increase of 2.72% compared to 2020, and 1,088,180 tons of ammonium chloride, up 3.50% year-on-year[44]. - The average selling price of soda ash in the second half of 2021 was CNY 2,117.37 per ton, reflecting a 56.07% increase due to market fluctuations[51]. - The average selling price of ammonium chloride rose to CNY 1,034.16 per ton in the second half of 2021, marking a 55.54% increase year-on-year[51]. - The company reported a significant increase in sales of its main products, soda ash and ammonium chloride, due to favorable market conditions, achieving the best production levels in recent years[166]. Research and Development - Research and development expenses decreased by 43.33% from ¥108,486,532.36 in 2020 to ¥61,474,089.46 in 2021, indicating a reduction in R&D investment[59]. - The proportion of R&D expenditure to operating revenue fell to 2.01% in 2021 from 6.08% in 2020, a decrease of 4.07 percentage points[61]. - The number of R&D personnel increased by 9.60% to 217 in 2021, compared to 198 in 2020[61]. - The company completed several key R&D projects, including the efficient utilization of waste heat from the ammonia synthesis system, aimed at reducing steam consumption and improving economic benefits[60]. - New product development initiatives are underway, with an investment of 50 million yuan allocated for R&D in innovative technologies[108]. Market and Industry Outlook - The company anticipates that the soda ash industry will experience cyclical fluctuations, influenced by macroeconomic recovery post-COVID-19[86]. - The company is exploring opportunities in downstream sectors such as photovoltaic glass and compound fertilizers, while also tracking developments in new technologies like sodium batteries[88]. - The company plans to produce and sell 1.0774 million tons of soda ash and 1.0882 million tons of ammonium chloride in 2022, with an expected total sales revenue of 3.158 billion yuan[88]. Governance and Management - The company has established a relatively complete corporate governance structure, ensuring compliance with relevant laws and regulations[95]. - The participation ratio of investors in the 2021 annual general meeting was 26.06%[100]. - The company has a board of directors with a mix of genders, including 2 female independent directors[102]. - The company has maintained a stable management team with no new appointments or resignations reported[102]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.57 million[115]. Environmental and Safety Management - The company operates 121 sets of environmental protection facilities, including three desulfurization and four denitrification units, ensuring stable and compliant emissions[143]. - The company has established a strict environmental protection management system and completed upgrades to pollution control facilities[148]. - The company successfully completed the safety production standardization construction, achieving zero fatalities and zero new occupational diseases during the year[148]. - A total of 1,847 employees received safety skills enhancement training, including those in high-risk industries[149]. Strategic Initiatives - The company plans to exit the real estate sector and upgrade its ammonia production facilities[83]. - The company is focusing on sustainability initiatives, committing to reduce carbon emissions by 30% by 2025[106]. - The company has committed to continuous improvement in safety standards and production efficiency, with a focus on cost reduction and operational excellence[167].