TIANSHENG(SZ:300169)2022-04-25 16:00Financial Performance - The company reported a loss for the year, primarily due to intensified market competition, resulting in decreased sales volume and prices, alongside rising raw material and energy costs, which compressed gross margins [4]. - The company recognized credit impairment losses of CNY 39.15 million, goodwill impairment losses of CNY 28.71 million, intangible asset impairment losses of CNY 18.35 million, and inventory write-down losses of CNY 27.62 million [4]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a growth of 15% year-over-year [19]. - The company's operating revenue for 2021 was ¥761,001,952.17, a decrease of 14.83% compared to ¥893,503,343.74 in 2020 [23]. - The net profit attributable to shareholders was -¥164,090,770.94, an improvement of 42.36% from -¥284,696,789.06 in the previous year [23]. - The net cash flow from operating activities was -¥24,966,307.47, a significant decline of 379.72% compared to -¥5,204,347.46 in 2020 [23]. - The total assets at the end of 2021 were ¥1,588,686,186.01, down 8.14% from ¥1,729,466,473.59 at the end of 2020 [23]. - The net assets attributable to shareholders decreased by 26.76% to ¥453,351,346.46 from ¥619,022,209.27 in 2020 [23]. - The company reported a basic earnings per share of -¥0.50, improving by 42.53% from -¥0.87 in 2020 [23]. - Total revenue for 2021 was ¥761,001,952.17, a decrease of 14.83% compared to ¥893,503,343.74 in 2020 [55]. - Manufacturing revenue accounted for ¥742,588,977.34, representing 97.58% of total revenue, down 14.68% year-over-year [55]. - Revenue from foam materials and applications was ¥638,087,097.24, making up 83.85% of total revenue, a decline of 13.29% from the previous year [55]. - Domestic sales reached ¥690,036,642.52, which is 90.67% of total revenue, down 14.19% year-over-year [55]. - The company reported a significant increase in other business revenue, which rose by 103.41% year-over-year, primarily due to policy impacts [58]. - The company’s foreign sales were ¥70,965,309.65, representing 9.33% of total revenue, a decrease of 20.61% compared to the previous year [55]. Strategic Initiatives - The company plans to issue shares to specific investors, pending approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission [6]. - The company does not plan to distribute cash dividends, issue bonus shares, or convert reserves into share capital [7]. - The company anticipates that new products will gain market recognition, which is expected to enhance sales performance and profitability [4]. - New product development efforts have led to the introduction of three innovative materials, expected to capture a 5% market share in the next two years [19]. - The company is expanding its market presence, targeting an increase in sales in Southeast Asia, aiming for a 30% growth in that region [19]. - A strategic acquisition of a local competitor is anticipated to enhance production capacity by 25% and reduce operational costs by 10% [19]. - The company plans to focus on the development of rubber foam products and aims to enhance product technology content to improve competitiveness and profitability [35]. - The company is committed to developing high-end products with international advanced levels in the polymer foam materials industry [35]. - The company aims to enhance its market share and profitability by increasing the development of mid-to-high-end rubber and plastic new products [93]. - The company is expanding its product offerings in post-processing products, targeting industries such as home appliances, automotive parts, and new energy vehicles, aiming to provide one-stop solutions to increase customer loyalty and market share [94]. Research and Development - The company has invested 50 million CNY in R&D for new technologies, focusing on sustainable materials and production processes [19]. - The company focuses on polymer foaming technology research to maintain technological leadership and develop alternative markets and new applications [37]. - New product developments include UV anti-adhesive tape and EMI electromagnetic shielding materials, both in small batch trial production stages, aimed at enhancing product competitiveness [66]. - The company is expanding its product line with new acoustic materials and sound barriers, currently in trial production, to improve market competitiveness [67]. - The R&D team saw a significant shift in age demographics, with a 35.29% increase in personnel under 30 years old [68]. - R&D investment amounted to ¥15,759,559.32 in 2021, representing 2.07% of operating revenue, up from 1.98% in 2020 [68]. Market and Industry Position - The company operates in an industry without overcapacity, sustained decline, or technological substitution issues [4]. - The structural foam materials market is primarily dominated by PVC and PET, with PVC being the most widely used due to its mature applications [35]. - The market for rail transportation is expected to grow significantly, driven by urbanization and green transportation policies, providing substantial opportunities for the company [40]. - The company aims to increase its market share in the transportation infrastructure sector, particularly in sound barrier products, by leveraging its technological and industrial advantages [95]. Governance and Compliance - The company has established a sound internal control system to enhance governance levels [105]. - The company strictly adheres to information disclosure regulations, providing timely and accurate information to all shareholders [106]. - The company respects the rights of stakeholders and promotes balanced interests among shareholders, employees, and society [107]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal and regulatory requirements [106]. - The company operates independently from its major shareholders, with no competition in business and a complete R&D, production, and sales system [108]. - The company has independent financial and auditing departments, maintaining separate bank accounts and fulfilling tax obligations independently [109]. - The company has established a KPI performance evaluation system for senior management, ensuring transparency and compliance with legal regulations [106]. Risk Management - The company faces risks related to the loss of core technical personnel, which could impact its competitive position in the polymer foaming industry, and is implementing measures to retain talent [98]. - The company is expanding its international market presence, which involves risks related to geopolitical factors and local regulations, and is enhancing its management of overseas operations [100]. - The company is enhancing its risk control systems to adapt to the challenges posed by its expanding operational scale and to ensure stable and healthy growth [99]. Employee and Management Structure - The total number of employees at the end of the reporting period is 746, with 97 in the parent company and 649 in major subsidiaries [135]. - The employee composition includes 510 production personnel, 60 sales personnel, 35 technical personnel, 28 financial personnel, 37 administrative personnel, 15 human resources personnel, 32 management personnel, and 29 others [135]. - The company has a total of 480 employees with education below college level, while there are 1 PhD, 21 Master's, 137 Bachelor's, and 107 Associate's degree holders [136]. - The company’s management team includes individuals with extensive experience in finance and technology sectors [120]. - The average age of the current board members is approximately 48 years, indicating a blend of experience and youthful leadership [114]. Financial Transactions and Shareholder Relations - The company plans to issue up to 95,323,700 shares at a price of 5.56 RMB per share, aiming to raise a total of 52,999,980 RMB for working capital [194]. - The company has no significant related party transactions or financial dealings with related financial companies during the reporting period [182][183]. - The company has committed to ensuring that its subsidiaries will not suffer losses due to tax payment responsibilities [166]. - The company has not reported any major events or violations regarding the provision of guarantees during the reporting period [191]. - The company has established a framework to ensure that any competitive business activities are ceased or transferred to unrelated third parties to avoid conflicts [164].