FENGYUAN(SZ:002805)2022-05-10 16:00Financial Performance - In 2021, the company's operating revenue reached ¥803,047,710.89, representing a 124.78% increase compared to ¥357,263,903.73 in 2020[18]. - The net profit attributable to shareholders was ¥53,090,239.10, a significant turnaround from a loss of ¥29,202,999.58 in 2020, marking a 281.80% increase[18]. - The revenue from lithium battery cathode materials accounted for 68.70% of total revenue in 2021, up from 36.84% in 2020, indicating a strategic shift in the company's main business focus[18]. - The basic earnings per share increased to ¥0.33 in 2021, compared to a loss of ¥0.20 per share in 2020, reflecting a 265.00% improvement[18]. - The total assets of the company at the end of 2021 were ¥1,816,825,158.45, a 64.12% increase from ¥1,106,987,046.01 at the end of 2020[18]. - The company reported a quarterly revenue of ¥256,224,986.15 in Q4 2021, showing a consistent growth trend throughout the year[23]. - The company achieved total revenue of ¥803,047,710.89 in 2021, representing a year-on-year growth of 124.78%[60]. - The net profit attributable to shareholders reached ¥53,090,239.10, marking a significant increase of 281.80% compared to the previous year[60]. - The lithium battery cathode materials business accounted for 68.70% of total revenue, with sales amounting to ¥551,671,885.98, reflecting a growth of 303.30%[65]. - The oxalic acid business generated revenue of ¥251,375,824.91, which is a 14.02% increase year-on-year[65]. Strategic Development - The company is focused on the development of lithium battery materials, which are critical for the growing electric vehicle market[13]. - The company aims to enhance its market position through the expansion of its product offerings in the lithium battery sector[13]. - The company is actively exploring mergers and acquisitions to strengthen its competitive edge in the chemical industry[12]. - The company has established a strategic cooperation agreement with the Chinese Academy of Sciences to jointly build a research institute for high-energy lithium battery materials[12]. - The company is committed to improving its financial reporting accuracy and transparency, as stated by its management team[4]. - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[130]. - The company plans to strengthen cooperation with key clients, including BYD, and is actively exploring international markets, having established an office in South Korea[109]. - The company is actively exploring new technologies, including cobalt-free and lithium-free cathode materials, to capture emerging market opportunities[56]. Research and Development - The company has increased its investment in research and development, ensuring sufficient funding for technological development[52]. - The company has formed a research team led by Chief Technology Officer Jin Youcheng, focusing on cutting-edge technology research[52]. - The company has established a provincial-level engineering technology research center for oxalic acid, improving its innovation capabilities[50]. - The company has applied for a total of 113 patents, with 71 patents granted, including 32 invention patents[62]. - The company has acquired 4 patents in the field of cathode materials, including a lithium battery cathode material mixing drying device and a lithium battery cathode material production crucible[51]. - The company is applying for 3 additional patents related to high-nickel ternary composite materials and their preparation methods[52]. - The company has introduced advanced pilot testing equipment for cathode materials, significantly supporting its R&D efforts and enhancing its independent innovation capabilities[53]. - The company is committed to increasing R&D investment to maintain its technological advantage and meet evolving market demands[114]. Production Capacity and Market Trends - The production capacity of lithium iron phosphate (LFP) materials is expected to reach 100,000 tons by the end of 2022, with ongoing expansions at multiple bases[32]. - The company has a total production capacity of 100,000 tons per year for industrial oxalic acid, refined oxalic acid, and oxalic acid derivatives, maintaining a leading market share in the industry[36]. - The lithium battery market is projected to exceed 1,450 GWh by 2025, with a compound annual growth rate of over 43%[29]. - The company plans to expand its lithium iron phosphate production capacity to 100,000 tons by the end of 2022, and the ternary material capacity to approximately 15,000 tons[60]. - The current production capacity for cathode materials is 17,000 tons, with a utilization rate of 37.46%, while an additional 33,000 tons of capacity is under construction[54]. - The company has successfully entered the qualified supplier system of CATL in January 2022, expanding its customer base to include major players like BYD and Penghui Energy[56]. Financial Management and Governance - The company has established a clear and independent governance structure, with distinct roles and responsibilities among the shareholders' meeting, board of directors, and management[122]. - The company has a complete and independent management system for employee management and social security, separate from shareholders[123]. - The company has maintained transparency in its remuneration practices as per the resolutions passed in the shareholders' meeting[136]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 24.69 million[137]. - The company has established a performance assessment mechanism for senior management to enhance their responsibilities and protect shareholder interests[136]. - The company has not engaged in any related party transactions that would compromise its asset independence[123]. - The company has a robust asset ownership structure, with all assets legally documented and free from shareholder encumbrances[123]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit, with total emissions of 1.73 tons of oxalic acid production waste gas, which is compliant with local standards[165]. - The company has implemented two sets of SCR (Selective Catalytic Reduction) devices for denitrification in its oxalic acid production, and has replaced coal-fired boilers with gas boilers[166]. - The company has established a self-monitoring plan for emissions, regularly publishing results to ensure transparency and public oversight[169]. - The company has implemented strict environmental protection measures, ensuring compliance with local pollution discharge standards for organized and unorganized emissions[167]. - The company has maintained effective operation of all pollution control facilities, ensuring compliance with environmental regulations[166]. - The company has a robust waste management system, ensuring proper treatment and disposal of solid waste according to national standards[169]. Risk Management - The company faces various risk factors in its daily operations, which are detailed in the management discussion section of the report[5]. - The company is facing risks related to raw material price fluctuations, which could impact its operating performance despite having a robust procurement management system[112]. - The competitive landscape in the lithium battery cathode materials sector is intensifying, with new entrants and existing companies expanding capacity, posing risks to the company's market position[114]. - The company emphasizes the importance of adapting to changes in national policies regarding the new energy vehicle industry, which could significantly affect product sales[114]. Shareholder Engagement - The company actively engages with shareholders, holding one annual general meeting and five extraordinary meetings to ensure transparency and protect minority shareholders' rights[171]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[178]. - The commitment includes a restriction on transferring or entrusting shares for 36 months from the date of the company's stock listing[178]. - The company has implemented measures to ensure fair and legal related party transactions, avoiding conflicts of interest[179].