SF Diamond(SZ:300179)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was CNY 416,894,538.48, representing a 30.90% increase compared to CNY 318,476,418.30 in 2020[15]. - The net profit attributable to shareholders for 2021 was CNY 92,027,743.47, a 22.23% increase from CNY 75,287,767.49 in 2020[15]. - The net profit after deducting non-recurring gains and losses was CNY 66,073,080.82, which is a significant increase of 57.12% compared to CNY 42,052,078.63 in 2020[15]. - The basic earnings per share for 2021 was CNY 0.1897, up 24.97% from CNY 0.1518 in 2020[15]. - The company's total revenue for 2021 was 416,894,538.48 CNY, with quarterly revenues of 91,457,939.84 CNY in Q1, 105,885,111.76 CNY in Q2, 113,638,796.20 CNY in Q3, and 105,912,690.68 CNY in Q4[17]. - The net profit attributable to shareholders for the year was 91,027,743.47 CNY, with quarterly figures of 22,602,461.04 CNY in Q1, 26,219,266.94 CNY in Q2, 21,790,080.02 CNY in Q3, and 21,415,935.47 CNY in Q4[17]. - The gross profit margin for the manufacturing sector improved to 52.89%, an increase of 4.10 percentage points from the previous year[51]. - The precision processing segment saw a significant revenue growth of 52.14%, with sales amounting to ¥159,004,271.92 in 2021, up from ¥104,512,913.01 in 2020[48]. - The company reported a total revenue of 1,255.7 million in 2021, showing a significant increase compared to 1,179.0 million in 2020, representing a growth of approximately 6.5%[92]. - The company experienced a net profit of 197.008 million in 2021, which is a notable increase from the previous year's profit of 194.57 million, indicating a growth of about 1.2%[92]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB in 2021, representing a year-over-year growth of 20%[101]. Cash Flow and Investments - The net cash flow from operating activities decreased by 33.64% to CNY 113,775,140.82 from CNY 171,454,712.01 in 2020[15]. - The company received government subsidies amounting to 13,097,862.46 CNY in 2021, which is a decrease from 21,071,734.13 CNY in 2020[21]. - The total investment amount for the reporting period was CNY 798,050,700, a decrease of 16.74% compared to the previous year's investment of CNY 958,510,000[68]. - Operating cash inflow decreased by 5.13% to ¥429,513,860.41, while operating cash outflow increased by 12.26% to ¥315,738,719.59[60]. - The company's cash and cash equivalents increased by 70,981,959.52, a decrease of 26.62% compared to the previous year[60]. - The company reported a total investment of 50 million yuan in the "Liangzhu Asset Stable and Far-reaching Note Investment Private Fund" product, which was established on January 4, 2019[160]. - As of December 31, 2021, the company had recognized an accumulated impairment provision of 40.0577 million yuan for the aforementioned investment due to risks associated with the fund[163]. - The company has initiated legal proceedings to recover the remaining investment principal of 49 million yuan, which has not been returned as per the agreement[161]. Market Position and Strategy - The company is positioned as a leading player in the domestic superhard materials market, but its global market share remains low, indicating potential for future growth[26]. - The demand for oil and gas extraction products is expected to increase due to rising oil prices and improved extraction technologies, benefiting domestic companies like the one in focus[27]. - The company plans to leverage the favorable policies for foreign investment in the oil and gas sector to enhance its market presence[27]. - The superhard materials industry is experiencing technological advancements and expanding applications, which could drive future revenue growth for the company[25]. - The company has identified opportunities for market expansion in high-end composite superhard materials, which are currently dominated by foreign competitors[26]. - The company plans to accelerate the commercialization of R&D results, maintaining high-intensity R&D investment to meet core customer needs with new product launches[75]. - The company aims to leverage the recovery in the oil and gas extraction market, focusing on a "big customer strategy" to convert policy benefits into operational performance[76]. - The company intends to enhance market expansion in precision processing, increasing market share of superhard tool products to support future performance growth[76]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its product portfolio[92]. - The company is expanding its market presence in Southeast Asia, with plans to enter three new countries by the end of 2022[101]. Research and Development - The company has been recognized as a "National-level Enterprise Technology Center" and has received multiple honors, highlighting its strong R&D capabilities[43]. - Research and development expenses increased by 33.12% to ¥45,077,976.22, primarily due to increased R&D investments[58]. - The number of R&D personnel rose by 9.35% to 117, with the proportion of R&D personnel increasing by 0.82 percentage points to 21.12%[59]. - R&D investment as a percentage of operating income was 10.81%, up from 10.63% in the previous year[59]. - The company is committed to advancing functional diamond application technology in collaboration with Zhengzhou University[77]. - The company obtained a total of 38 patents during the reporting period, including 37 in China and 1 in the United States[170]. - In April 2021, the company signed a technology transfer agreement with Zhengzhou University to acquire certain CVD diamond preparation technologies and commissioned the university for research and development of diamond optoelectronic functional devices[170]. Governance and Compliance - The company strictly adheres to relevant laws and regulations for information disclosure, ensuring timely and accurate communication with investors[84]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance, ensuring no interference in decision-making[85]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[83]. - The company has a complete legal governance structure and operates independently from its controlling shareholder[85]. - The company has established a fair and effective performance evaluation and incentive mechanism for senior management, combining basic annual salary with year-end performance assessment[84]. - The company has no unresolved governance issues and complies with the corporate governance standards set by regulatory authorities[82]. - The company has a dedicated financial department with an independent accounting system and financial management practices[86]. - The company respects and protects the legitimate rights and interests of stakeholders, promoting balanced interests among shareholders, employees, and society[84]. - The company has a structured remuneration decision process based on profitability and individual performance, ensuring alignment with shareholder interests[106]. - The board's commitment to transparency is reflected in the regular disclosure of meeting resolutions and decisions on their official website[109]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 35,294[181]. - The largest shareholder, Fang Haijiang, holds 28.61% of the shares, totaling 139,610,024 shares[182]. - The second-largest shareholder, Fu Yuxia, holds 7.01% of the shares, totaling 34,201,365 shares[182]. - The company has a total of 10 major shareholders, with the top three holding a combined 38.44% of the shares[182]. - The actual controller, Fang Haijiang, is also the chairman of the company[185]. - The company does not have any preferred shares or special voting rights arrangements[184]. - The company has a total of 5 shareholders holding more than 5% of the shares[185]. Environmental and Social Responsibility - The company is not classified as a key pollutant discharge unit and has not faced any administrative penalties for environmental issues during the reporting period[148]. - The company has taken no measures to reduce carbon emissions as it does not apply to its operations[148]. - There were no significant environmental issues reported, and the company has not been penalized for any violations[149]. - The company has fully complied with commitments made regarding non-competition and business opportunities during the reporting period[153]. Legal Matters - The company has frozen a total of 10.9 million shares of Rugao Rural Commercial Bank, accounting for 10.90% of its total share capital, as part of the asset recovery process[162]. - The company has maintained normal and orderly production and operational activities, indicating that the repayment risk will not impact its cash flow or operations[164]. - There were no significant lawsuits or arbitration matters reported during the year[165]. - The company has not engaged in any major penalties or rectification measures during the reporting period[166]. - There were no significant related party transactions reported in terms of daily operations or asset acquisitions[168].