TSC(SZ:000877)2022-03-21 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥169.98 billion, an increase of 4.83% compared to the previous year[15]. - The net profit attributable to shareholders for 2021 was approximately ¥12.53 billion, a decrease of 3.53% year-on-year[15]. - The net profit after deducting non-recurring gains and losses for 2021 was approximately ¥4.95 billion, an increase of 248.02% compared to the previous year[15]. - The net cash flow from operating activities for 2021 was approximately ¥28.43 billion, a decrease of 27.38% year-on-year[15]. - The total assets at the end of 2021 were approximately ¥285.06 billion, an increase of 10.14% compared to the end of 2020[15]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥75.95 billion, a decrease of 0.70% compared to the end of 2020[15]. - The company reported a weighted average return on equity of 16.08% for 2021, down from 18.19% in 2020[15]. - In the fourth quarter of 2021, the operating revenue was approximately ¥51.06 billion, with a net profit attributable to shareholders of approximately ¥4.16 billion[17]. - The company recognized non-recurring gains from the disposal of non-current assets amounting to approximately ¥97.41 million in 2021[18]. - The company reported a total revenue of 10,480 million, with 2,000 million attributed to the secretary and legal advisor roles[98]. - The net profit attributable to the parent company for 2021 was approximately 1.13 billion CNY, while the consolidated net profit was about 12.53 billion CNY[126]. - The total revenue for Xinjiang Tianshan Cement Co., Ltd. in 2021 was approximately ¥60.57 billion, with a net profit attributable to shareholders of ¥6.12 billion[127]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 3.30 CNY per 10 shares to all shareholders, based on a total of 8,663,422,814 shares[4]. - The company aims to distribute cash dividends of no less than 50% of the net profit attributable to the parent company's shareholders for the fiscal year 2022[76]. - The company has a cash dividend policy that aims to enhance shareholder returns, with 100% of the profit distribution allocated to cash dividends for the reporting period[125]. - The company plans to distribute cash dividends of ¥2.86 billion, which represents 50.85% of the net profit attributable to shareholders after excluding the transitional period adjustments[127]. Acquisitions and Mergers - The company has completed the acquisition of 100% equity in Zhonglian Cement, 99.93% in Southern Cement, 95.72% in Southwest Cement, and 100% in China Materials Cement[5]. - The company completed the acquisition of China United Cement Group Co., Ltd. for approximately 2.20 billion yuan, resulting in a 100% ownership stake[61]. - The company completed the acquisition of Southwest Cement Co., with a transaction value of CNY 16,088,579,000, representing 95.72% of the total shares[62]. - The company also finalized the acquisition of China National Materials Cement Co., with a total transaction value of CNY 11,319,488,200, which accounted for 100% of the shares[62]. - The company has completed several mergers and acquisitions, including the absorption of Huzhou Lijiaxiang Southern Cement Co., Ltd., which had no significant impact on overall operations[71]. - The company has increased its asset scale and production capacity significantly through the acquisition of 100% equity in Zhonglian Cement and other subsidiaries, leading to substantial growth in operating performance compared to the previous year[72]. Market Position and Industry Overview - The company is the largest cement producer in China, with clinker, ready-mixed concrete, and aggregate production capacities ranking first nationally, covering 25 provinces[26]. - The cement industry generated revenue of 1,075.4 billion yuan in 2021, an increase of 7.3% year-on-year, while total profit was 169.4 billion yuan, showing a slight decline but remaining at a historically high level[22]. - The national concrete production in 2021 was 3.293 billion cubic meters, reflecting a year-on-year increase of 6.9%[22]. - The aggregate industry produced 19.7 billion tons in 2021, a slight decrease of 1.0% year-on-year, indicating a stable high-level operation[23]. - The company has a strong market presence across 25 provinces in China, which helps mitigate operational fluctuations due to regional demand changes[35]. - The eastern region contributed 41.68% of total revenue, with CNY 70.84 billion, reflecting a growth of 7.31%[39]. - The company has a clinker production capacity of 330 million tons and a production volume of 260 million tons, with ready-mixed concrete capacity of 420 million cubic meters and a production volume of approximately 100 million tons, and aggregate capacity of 190 million tons with a production volume of approximately 126 million tons[30]. Operational Efficiency and Cost Management - The company maintained a stable performance by focusing on high-quality development, optimizing production and management processes, and enhancing cost competitiveness through refined management practices[31]. - The company operates primarily through self-production and direct sales, with an exploration of online e-commerce sales channels[30]. - The company has established a comprehensive management model that includes "three precision management" principles, enhancing operational efficiency and risk management[33]. - The company is facing rising cost pressures due to increased prices of raw materials and transportation, and it plans to establish long-term partnerships with strong suppliers to mitigate these risks[85]. - The company's major raw material costs for cement and clinker amounted to ¥21,577,113,826.23, accounting for 26.46% of total operating costs, a decrease of 3.52% compared to the previous year[44]. - The main energy costs for cement and clinker reached ¥43,483,839,353.34, representing 53.31% of total operating costs, an increase of 8.46% year-on-year[44]. Research and Development - Research and development expenses increased by 136.79% to ¥1,793,293,922.14, primarily due to new R&D projects[50]. - The total R&D investment for 2021 was ¥2,767,673,980.28, a significant increase of 999.51% compared to ¥251,718,363.47 in 2020[52]. - The R&D investment accounted for 1.63% of operating revenue, up from 0.16% in the previous year, indicating a strategic focus on innovation[52]. - The company has completed several R&D projects aimed at improving production efficiency and reducing costs, including a new cement quantitative batching device and a novel raw material batching process[51]. - The company has developed 116 types of specialty cement products, making it the largest producer of such products in China[39]. - The company has been recognized as a technology innovation demonstration enterprise, highlighting its commitment to R&D and innovation[39]. Environmental Responsibility and Sustainability - The company has implemented energy-saving and carbon-reduction technologies, responding to national policies on carbon neutrality and energy consumption control[25]. - The company is committed to digital transformation and sustainable practices, aligning with national goals for a low-carbon economy[25]. - The company is advancing its digital transformation with smart manufacturing initiatives, including the implementation of intelligent production lines and digital management systems[35]. - The company has implemented sustainable practices, including the disposal of hazardous waste and urban waste, with an annual disposal capacity of 4.07 million tons[35]. - The company is committed to sustainable development by exploring effective resource utilization and implementing clean energy projects, such as solar and wind power, to alleviate cost pressures[85]. - The company is adapting to the higher demands for green development in the cement industry due to carbon peak and carbon neutrality policies, increasing its environmental protection investments[86]. - The company is fostering a carbon reduction culture across its entire supply chain and lifecycle, focusing on digital benchmarking to meet ecological protection targets[86]. - The company has implemented environmental protection measures in compliance with multiple laws and standards, ensuring all cement production facilities have valid pollution discharge permits[138]. - The company has established internal governance rules to address identified issues, including the creation of a board secretary work guideline[137]. Governance and Compliance - The company has established a comprehensive governance structure, ensuring accountability and transparency[4]. - The company has a dedicated investor relations team to address inquiries and provide support[7]. - The company emphasizes the importance of deepening party building and integrating it with business operations to enhance overall governance[81]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, and operations, adhering to legal requirements[90]. - The company has established an independent financial management system, ensuring no interference from the controlling shareholder in financial decisions[91]. - The board of directors consists of 9 members, including 3 independent directors, and has held 18 meetings, maintaining compliance with governance standards[89]. - The supervisory board comprises 5 members, with 2 employee supervisors, and has convened 8 meetings, ensuring oversight of the company's operations[89]. - The company has a clear organizational structure with independent operational departments[91]. - The company has a complete procurement, production, and sales system that operates independently[91]. - The company has a stable board of directors, with all current members serving until December 2024[97]. Future Outlook and Strategic Initiatives - The company aims to enhance its market position through strategic management and operational efficiencies, leveraging its strong brand reputation and technological capabilities[26]. - The company is focusing on optimizing and upgrading its core business, with a strong emphasis on energy-saving and emission-reduction technology transformations[78]. - The company is actively pursuing digital transformation and the development of a digital factory and industrial internet pilot projects[80]. - The company plans to leverage the "water + cement" business model as a new profit growth point amid industry challenges[75]. - The company is exploring potential acquisitions to enhance market presence, with a budget of 200 million CNY allocated for this purpose[100]. - Future guidance estimates a revenue growth of 10-15% for 2022, driven by increased demand in the construction sector[100]. - The company aims to enter two new regional markets in 2022, which are expected to contribute an additional 100 million CNY in revenue[100]. - The company is committed to reducing emissions and improving environmental performance across its operations[156]. - The company plans to enhance its market expansion strategy by focusing on new product development and technological advancements[156]. - The company is committed to sustainability and aims to align its operations with national environmental regulations and standards[168].