DDN(002263)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,673,681,589.09, representing a 10.91% increase compared to ¥1,509,076,837.25 in 2020[22]. - The net profit attributable to shareholders for 2021 was ¥243,263,795.22, a 37.49% increase from ¥176,937,119.86 in 2020[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥236,352,218.41, up 37.42% from ¥171,987,295.57 in 2020[22]. - Basic earnings per share for 2021 increased by 44.44% to ¥0.13 from ¥0.09 in 2020[22]. - The diluted earnings per share increased by 44.44% to CNY 0.13 from CNY 0.09 in the previous year[23]. - The weighted average return on equity rose to 9.63%, up from 7.64% in the previous year, an increase of 1.99%[23]. - Total assets at the end of 2021 were CNY 2,961,545,794.85, representing a 9.06% increase from CNY 2,715,614,830.53 at the end of 2020[23]. - Net assets attributable to shareholders increased by 10.11% to CNY 2,648,331,061.01 from CNY 2,405,067,265.79 in the previous year[23]. - The company reported a net profit attributable to shareholders of CNY 88,306,107.55 in Q4 2021, a significant increase compared to previous quarters[26]. - The company achieved operating revenue of CNY 1,673.68 million, a year-on-year increase of 10.91%[47]. Cash Flow and Financial Position - The net cash flow from operating activities decreased by 45.50% to ¥179,584,641.75 from ¥329,522,138.38 in 2020[22]. - Operating cash inflow decreased by 2.20% to ¥1,484,781,243.02, while cash outflow increased by 9.80% to ¥1,305,196,601.27, resulting in a net cash flow of ¥179,584,641.75, down 45.50% year-on-year[69]. - Investment cash inflow dropped significantly by 99.90% to ¥90,217.88, primarily due to the absence of cash recovery from investments compared to the previous year[71]. - Financing cash inflow rose by 15.97% to ¥257,850,761.98, with net cash flow from financing activities increasing by 84.74% to ¥52,060,647.83[70]. - Cash and cash equivalents increased by ¥220,607,981.49, but the net increase decreased by 48.10% compared to the previous year[71]. - Total assets at the end of 2021 amounted to ¥943,831,930.35, with cash and cash equivalents accounting for 31.87% of total assets, up from 26.62% at the beginning of the year[72]. - Inventory increased by 35.43% to ¥226,882,943.89, attributed to year-end raw material stocking[72]. - Short-term borrowings rose by 39.83% to ¥41,512,401.20, reflecting increased financing needs[73]. - The company reported a significant increase in accounts receivable, which rose to ¥95,238,373.30, representing 3.22% of total assets[72]. Business Strategy and Market Position - The company has shifted its main business focus from traditional plastic films to new materials, aligning with national strategic development plans[33]. - The high-function film industry is expected to grow at over 20% annually from 2021 to mid-2023, indicating strong market potential[33]. - The company is positioned in the new materials industry, which is expected to have a market scale of trillions in the future[38]. - The company aims to enhance its core competitiveness by focusing on high-tech research and development, production, and sales of films and new materials, emphasizing innovation and energy optimization[83]. - In 2022, the company plans to accelerate the development of differentiated products and improve market competitiveness, with a focus on technical innovation and quality supervision[84]. - The company is actively pursuing market expansion strategies, including potential mergers and acquisitions to strengthen its competitive position[99]. Research and Development - The company has developed a joint laboratory with the Chinese Academy of Sciences and Zhejiang University to enhance its R&D capabilities[40]. - Research and development expenses increased by 28.55% to ¥37,823,120.42 compared to the previous year[64]. - R&D investment increased by 28.55% to ¥37,823,120.51 in 2021, representing 2.26% of operating revenue, up from 1.95% in 2020[67]. - The company completed several new product development projects, including MLCC release polyester film and new matte high elongation polyester film, aimed at enhancing product competitiveness[65]. - The company successfully developed ultra-thin capacitor films with a thickness of 2.0 microns, meeting or exceeding national standards[66]. Risk Management - The company emphasizes the importance of risk awareness for investors regarding operational goals and performance commitments[6]. - The company has detailed potential risk factors affecting future development in the management discussion section[6]. - The company faces risks from intensified market competition, which may lead to decreased net profits and impact operational performance[86]. - Fluctuations in raw material prices due to global economic conditions and oil supply-demand changes pose a risk to the company's profitability and procurement strategies[86]. - The company emphasizes safety production management to mitigate risks associated with high-temperature production processes and automated equipment[87]. Corporate Governance - The company maintains a complete and independent operational structure, ensuring no interference from controlling shareholders in decision-making processes[92]. - The company has established a robust internal control system and governance structure, complying with relevant laws and regulations[90]. - The board of directors includes specialized committees such as the audit, nomination, compensation, and strategy committees to enhance decision-making[90]. - The company has a clear and independent business operation plan, with self-sufficient financial accounting and personnel management systems[92]. - The company emphasizes fair and timely information disclosure to protect the rights of all shareholders[91]. - The governance structure of the company aligns with legal and regulatory requirements, ensuring no significant discrepancies[91]. Shareholder Relations - The company conducted multiple investor communications, including a conference call on December 1, 2021, with participation from nine institutional investors discussing operational strategies and future plans[88]. - The annual shareholder meeting on May 20, 2021, had an investor participation rate of 28.02%[94]. - The first extraordinary shareholder meeting in 2021 was held on September 8, with a participation rate of 27.96%[94]. - The company has not reported any objections from directors regarding company matters during the reporting period[110]. Legal Matters - The company is involved in a lawsuit concerning a loan agreement amounting to 36 million yuan (approximately $5.5 million) with Ningbo Haodao Xinzhi Investment Partnership[144]. - The first-instance judgment ruled against the claims of Ningbo Haodao, stating that the guarantee was ineffective, but the company must bear 50% of the guarantee fault compensation responsibility[146]. - The total amount involved in the litigation is 41.97 million yuan (approximately $6.4 million), which has not formed a provision for liabilities[145]. - The company has actively pursued legal action to confirm the invalidity of the guarantee contract related to the loan of 24 million yuan (approximately $3.7 million)[148]. - The litigation process has been ongoing since 2018, with multiple appeals filed by both parties[146]. Employee Management - The total number of employees at the end of the reporting period was 722, with 102 in the parent company and 620 in major subsidiaries[117]. - The professional composition includes 406 production personnel, 29 sales personnel, 184 technical personnel, 19 financial personnel, and 84 administrative personnel[117]. - The company emphasizes the importance of employee training, establishing a systematic training framework focusing on new employee onboarding and skill enhancement[120]. - The company aims to provide competitive and fair compensation, including benefits such as social insurance and team activities to attract and retain talent[119]. Environmental and Social Responsibility - The company emphasizes social responsibility and aims to build trust with investors while pursuing harmonious development with society[130]. - The company has not conducted any poverty alleviation or rural revitalization work during the reporting year[133]. - There were no administrative penalties related to environmental issues during the reporting period, and the company is not classified as a key pollutant discharge unit[130].