PRCO(SZ:002225)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was ¥4,377,856,310.18, an increase of 4.88% compared to ¥4,174,177,333.37 in 2020[6]. - The net profit attributable to shareholders decreased by 72.10% to ¥83,753,556.85 from ¥300,139,490.64 in 2020[6]. - The net profit after deducting non-recurring gains and losses was ¥70,259,732.96, down 74.93% from ¥280,284,284.41 in the previous year[6]. - The net cash flow from operating activities was negative at -¥189,510,272.93, a decline of 139.20% compared to ¥483,444,068.81 in 2020[6]. - The total assets at the end of 2021 were ¥7,069,820,760.96, representing a 12.88% increase from ¥6,262,929,799.08 at the end of 2020[6]. - The company's weighted average return on equity decreased to 2.94% from 10.42% in 2020, a drop of 7.48%[6]. - The gross profit margin for refractory materials decreased to 18.74%, down 7.41% from the previous year[46]. - The company reported a total shareholding of 263,220,277 shares at the beginning of the period, with a reduction of 15,122,966 shares, resulting in an ending total of 248,097,311 shares[102]. Dividend Policy - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares (including tax) to all shareholders, with no bonus shares issued[4]. - The cash dividend accounted for 100% of the total profit distribution amount, with a distributable profit of 1,001,885,757.96 CNY (approximately 154 million USD)[128]. - The company has a clear and stable cash dividend policy that aligns with its strategic goals and supports sustainable development[127]. - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed annually, with a differentiated approach based on the company's development stage[190]. Research and Development - The company reported a significant focus on research and development for new high-temperature materials, aiming to enhance product offerings and market competitiveness[12]. - The company has established a dual technology R&D center, enhancing its research capabilities and global marketing strength[28]. - The company has a strong R&D capability, with its main products having independent intellectual property rights and meeting the requirements of large-scale cement kilns and refining furnaces[32]. - The company completed several key R&D projects aimed at enhancing product quality and market competitiveness, including new magnesium-carbon composite materials[57]. - Research and development expenses rose by 7.66% to ¥189,166,523.39, representing 4.32% of operating revenue[58]. Market Presence and Expansion - The company has subsidiaries in various regions, including Serbia, the United States, and Vietnam, indicating a broad market presence and potential for expansion[11]. - The company has established magnesium raw material and processing bases in Tibet, Qinghai, and Xinjiang, with production lines gradually coming online since the end of 2020[31]. - The company has established a strong international presence with 10 subsidiaries or offices in countries such as the USA, Russia, and India[38]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and enhance operational efficiencies[146]. - The company plans to expand its market presence through strategic partnerships and potential acquisitions in the coming years[144]. Operational Efficiency and Challenges - The company is actively responding to national industrial policies by upgrading automation and phasing out outdated production processes[29]. - The refractory materials industry faced challenges such as low profit margins and intense competition, impacting overall profitability[28]. - The company has faced significant cost pressures due to rising prices of raw materials like magnesia and alumina, which have increased substantially compared to 2019 and 2020[34]. - The company maintains a "sales-driven production" model, effectively controlling raw material inventory and procurement costs[33]. - The company is committed to enhancing operational efficiency and ensuring the achievement of its strategic goals through effective management practices[86]. Environmental Compliance and Sustainability - The company has complied with various environmental protection laws and standards, ensuring all emissions meet local and national regulations[140]. - The company has established a comprehensive waste management system, ensuring that all industrial waste is recycled and hazardous waste is disposed of legally[150]. - The company has set a target to reduce overall emissions by 10% over the next three years as part of its sustainability strategy[144]. - The company has implemented new pollution control measures, resulting in a reduction of sulfur dioxide emissions to 0.3274 tons/year at Zhengzhou Huawei refractory materials plant[145]. - The company has established a comprehensive environmental risk management system, including regular drills and assessments to minimize potential environmental damage[163]. Governance and Management - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements and future operational goals[4]. - The board of directors consists of 9 members, including 3 independent directors, and operates in compliance with legal regulations and the company's articles of association[93]. - The company maintains complete independence from its controlling shareholder, with no instances of fund occupation or interference in operations[94]. - The company has established a robust investor relations management system, utilizing multiple channels for communication, including online meetings and direct interactions with investors[95]. - The company has implemented a remuneration decision-making process that requires approval from the board and shareholders[112]. Employee Engagement and Social Responsibility - The total number of employees at the end of the reporting period was 4,569, with 1,255 in the parent company and 3,314 in major subsidiaries[124]. - The company provided assistance to local charities, donating 100,000 yuan to the Puyang City Hero Association and 110,000 yuan to support rural revitalization efforts in 2021[179]. - The company implemented a comprehensive training program, with over 3,200 employees trained and more than 23,000 hours of education provided in 2021[177]. - A total of 4,457 employees received COVID-19 vaccinations by the end of December 2021, ensuring health and safety during the pandemic[178]. - The average employee salary increased by 6% in 2021 compared to 2020, following a 7% increase in 2020 compared to 2019[175].