PRET(SZ:002324)2022-03-14 16:00Financial Performance - The company reported a total revenue of 1,008,022,377 RMB for the year 2021, with a cash dividend of 0.50 RMB per 10 shares distributed to all shareholders[6]. - The company's operating revenue for 2021 was ¥4,870,775,031.76, representing a 9.52% increase compared to the adjusted revenue of ¥4,447,542,055.08 in 2020[26]. - The net profit attributable to shareholders of the listed company for 2021 was ¥23,748,168.59, a significant decrease of 94.00% from the adjusted net profit of ¥395,705,691.36 in 2020[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥39,394,321.56 in 2021, marking a decline of 111.53% from the adjusted profit of ¥341,717,989.53 in 2020[26]. - The net cash flow from operating activities was -¥136,484,707.78 in 2021, a decrease of 133.00% compared to ¥413,595,841.18 in 2020[26]. - The basic earnings per share for 2021 was ¥0.0235, down 93.98% from ¥0.4683 in 2020[29]. - The total assets at the end of 2021 were ¥4,617,289,096.57, reflecting a 4.71% increase from ¥4,409,489,360.25 at the end of 2020[29]. - The net assets attributable to shareholders of the listed company decreased by 3.50% to ¥2,603,782,705.88 at the end of 2021 from ¥2,698,277,553.12 at the end of 2020[29]. - The company reported a total of ¥1,476,647,315.59 in operating revenue for Q4 2021, contributing to a total annual revenue growth[32]. - In 2021, the company achieved a global revenue of 4.871 billion yuan, an increase of 9.52% year-on-year, while net profit attributable to shareholders decreased by 94.00% to 23.7482 million yuan due to rising raw material costs[88]. Business Operations and Strategy - There were no changes in the company's main business operations since its listing, indicating stability in its strategic direction[25]. - The company has maintained a consistent growth trajectory, with no significant changes in major shareholders during the reporting period, reflecting strong governance[25]. - The company has established itself as a leading player in the modified materials industry, providing automotive materials to top manufacturers such as BMW, Mercedes-Benz, and Volkswagen[43]. - The company has a production capacity of 2,000 tons for LCP resin, 3 million square meters for LCP film, and 150 tons for LCP fiber, making it the only company globally with a complete LCP production chain[45]. - The company has no new construction capacity under development, with all existing capacities fully operational[58]. - The company plans to focus on its core business and optimize its asset structure following the sale of Zhenxing Chemical[97]. - The company is focusing on the automotive materials market, particularly in the context of the rapid growth of the new energy vehicle industry, which is projected to account for 20% of total new car sales by 2025[163]. - The company is committed to enhancing operational efficiency and implementing mergers and acquisitions to strengthen its market position against competitors like BASF and Dupont in the automotive materials sector[157]. Research and Development - The company holds 8 authorized invention patents and has applied for 16 additional patents related to TLCP technology, showcasing its strong R&D capabilities[45]. - The company has established partnerships with major universities for R&D, enhancing its technological capabilities and innovation potential[46]. - Research and development expenses increased by 16.77% to 248,542,687.31 yuan in 2021 compared to 212,839,015.59 yuan in 2020[116]. - The number of R&D personnel increased by 18.18% to 247 in 2021, with a higher proportion of staff holding bachelor's degrees[119]. - The company is actively involved in the development of new materials for 5G applications, highlighting the advantages of its LCP materials in this field[183]. - The company is enhancing its product development in high-performance engineering materials and electronic chemicals, including LCP resin materials, to meet the demands of 5G communication and semiconductor industries[158]. Market Trends and Challenges - The modified materials industry in China saw a production increase of 6.2% in 2021, with a total output of 21.93 million tons, driven by demand in sectors like new energy vehicles and 5G communications[41]. - The high-tech manufacturing industry in China saw a significant growth rate of 20.1% year-on-year from January to September 2021, surpassing the industrial added value growth rate by 8.3 percentage points[42]. - The average prices of key raw materials such as PP and ABS increased significantly, with PP averaging 8.32 in the first half and 8.04 in the second half, and ABS averaging 13.92 and 14.60 respectively[55]. - Energy procurement costs account for over 30% of the total production costs, indicating a significant impact on overall profitability[56]. - The company is facing risks from raw material price fluctuations, particularly due to the correlation with international crude oil prices, which have risen significantly in 2021[176]. Sustainability and Environmental Commitment - The company focuses on energy conservation and environmental protection, producing low-odor, low-VOC modified composite materials through optimized formulations and improved processes[82]. - The company became one of the first members of the Carbon Neutral Action Alliance, emphasizing its commitment to resource recycling and environmental sustainability[85]. - The company aims to increase the application ratio of high-strength, high-rigidity continuous fiber-reinforced modified materials in automobiles to achieve lightweighting and reduce energy consumption[85]. Strategic Partnerships and Acquisitions - The company signed a share transfer agreement to transfer 50,703,116 shares to Hengxin Huaye at a price of 13.23 yuan per share, establishing a long-term strategic partnership to enhance its capabilities in high-end electronic materials for smart vehicles and 5G communication[90]. - The company acquired all LCP business-related assets from Nantong Haidi for 9.2281 million yuan, enabling it to produce both I and II type LCP materials, making it the only company in China with two LCP synthesis technology paths[91]. - The company has entered into strategic cooperation with Dongni Electronics to promote the application of LCP materials in electronic communications, leveraging each other's strengths in R&D, production, and sales[93]. - The company is currently assessing the impact of the pandemic on its long-term operations and profitability[188]. Intellectual Property and Risk Management - The company has established measures to protect its intellectual property, including multiple patents and a management system to prevent technology leaks[177]. - The company is actively managing foreign exchange risks related to the fluctuation of the RMB against the USD, which affects its imported raw materials[178]. - The company has established a comprehensive risk control system for its derivative investments, ensuring compliance with relevant laws and regulations[144].