Lier Chemical (SZ:002258)2022-03-04 16:00Financial Performance - The company reported a total revenue of 5.268 billion CNY for the year 2021, representing a year-on-year increase of 20%[6]. - The net profit attributable to shareholders reached 1.052 billion CNY, an increase of 25% compared to the previous year[6]. - The company's operating revenue for 2021 was ¥6,494,251,256.27, representing a 30.70% increase compared to ¥4,968,747,823.74 in 2020[33]. - The net profit attributable to shareholders for 2021 was ¥1,072,386,632.75, a 75.17% increase from ¥612,208,873.95 in 2020[33]. - The net profit after deducting non-recurring gains and losses for 2021 was ¥1,063,471,931.26, up 82.23% from ¥583,603,687.46 in 2020[33]. - The net cash flow from operating activities for 2021 was ¥1,317,229,894.38, an increase of 46.52% compared to ¥899,001,364.24 in 2020[33]. - The basic earnings per share for 2021 was ¥2.0416, a 74.87% increase from ¥1.1675 in 2020[33]. - The diluted earnings per share for 2021 was ¥1.9469, up 72.77% from ¥1.1269 in 2020[33]. - The total assets at the end of 2021 were ¥10,232,167,212.33, a 20.90% increase from ¥8,463,205,858.12 at the end of 2020[33]. - The net assets attributable to shareholders at the end of 2021 were ¥4,977,230,721.13, a 25.29% increase from ¥3,972,556,171.06 at the end of 2020[33]. Market Expansion and Strategy - The company is focusing on expanding its market presence, particularly in the agricultural chemicals sector, aiming for a 15% growth in market share by 2023[6]. - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach, with a budget of 500 million CNY earmarked for this purpose[6]. - The company has established long-term strategic partnerships with top international agrochemical firms such as Corteva, BASF, and Syngenta, ensuring a stable customer base and good reputation[51]. - The company is actively pursuing environmental compliance projects, including a new pesticide pilot research project approved in 2021[69]. - The company plans to enhance its product development capabilities and expand its market presence through strategic alliances and technological advancements[92]. - The company aims to achieve a market expansion strategy targeting new geographical regions to increase its customer base[194]. Research and Development - The company has allocated 200 million CNY for research and development in 2022, targeting advancements in eco-friendly chemical solutions[6]. - New product development efforts have led to the introduction of 10 innovative chemical products in 2021, contributing to a 30% increase in sales from new products[6]. - The total R&D investment for 2021 was ¥262,736,823.59, a 32.04% increase from ¥198,978,245.35 in 2020[109]. - Research and development expenses rose by 31.37% to ¥247,090,973.21 in 2021 from ¥188,091,142.28 in 2020[108]. - The company is focusing on new product development, including L-草铵膦 and new flame retardants, to create new profit growth points[109]. Environmental and Regulatory Compliance - The company is actively pursuing environmental compliance projects, including a new pesticide pilot research project approved in 2021[69]. - Environmental regulations are becoming stricter, requiring increased investment in environmental protection measures[163]. - The company has a total of 8 environmental permits and licenses, with several expiring in 2023 and 2024, necessitating timely renewals[72]. Supply Chain and Production - The company follows a comprehensive procurement system for raw materials and production equipment, ensuring efficient supply chain management[63]. - The production process for glyphosate involves multiple chemical synthesis steps, ensuring high-quality output[60]. - The production capacity for the main product, raw materials, is designed at 48,550 tons/year with a utilization rate of 74.89%[66]. - The production capacity for formulations is designed at 43,820 tons/year with a high utilization rate of 98.12%[66]. - The energy procurement price constitutes over 30% of total production costs, indicating a significant cost factor for the company[66]. Financial Management and Governance - The company has established an independent audit department with 4 dedicated auditors to oversee internal controls, project management, and financial status[182]. - The company maintains complete independence from its controlling shareholders in terms of business operations, personnel, assets, and financial management[183]. - The company has a well-established organizational structure that operates independently without subordination to controlling shareholders[183]. - The company emphasizes timely and accurate information disclosure, maintaining open communication with investors and regulatory bodies[179]. - The company has established a comprehensive governance structure in compliance with relevant laws and regulations, ensuring effective decision-making and communication with investors[172]. Risk Factors - The company faces risks related to raw material price fluctuations and environmental regulations, which may impact future profitability[6]. - The company anticipates risks from market competition and raw material price fluctuations, which could impact sales and profitability[163]. - The company has implemented measures to mitigate risks associated with foreign exchange fluctuations and customer payment delays[135].