CHANGHAI(SZ:300196)2022-04-20 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,506,397,405.59, representing a 22.71% increase compared to CNY 2,042,508,062.79 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 572,409,161.57, a significant increase of 111.46% from CNY 270,692,609.43 in 2020[24]. - The net cash flow from operating activities reached CNY 598,002,891.49, up 37.99% from CNY 433,361,680.37 in the previous year[24]. - Basic earnings per share for 2021 were CNY 1.40, an increase of 112.12% compared to CNY 0.66 in 2020[24]. - The total assets at the end of 2021 amounted to CNY 4,696,931,988.26, reflecting a 21.11% increase from CNY 3,878,174,862.74 at the end of 2020[24]. - The company reported a weighted average return on equity of 17.75% for 2021, up from 9.68% in 2020[24]. - The net profit after deducting non-recurring gains and losses was CNY 489,139,159.49, a 93.26% increase from CNY 253,093,483.14 in 2020[24]. - The company recorded a total of CNY 83,270,002.08 in non-recurring gains for 2021, compared to CNY 17,599,126.29 in 2020[30]. - The fourth quarter of 2021 saw operating revenue of CNY 673,108,557.96, with a net profit of CNY 151,556,124.34 attributable to shareholders[27]. Market and Industry Trends - In 2021, the glass fiber and products industry achieved a total operating revenue of 124.4 billion yuan, a year-on-year increase of 21.4%, and a total profit of 23.14 billion yuan, up 95.5% year-on-year[35]. - The total production of glass fiber yarn in mainland China reached 6.24 million tons in 2021, growing by 15.2% year-on-year, with an average growth rate of 8.8% over the past two years[36]. - The total production of pool kiln yarn in 2021 was 5.8 million tons, an increase of 15.5% year-on-year, with 15 new or refurbished kilns added, contributing an additional capacity of 902,000 tons[38]. - The total production of glass fiber reinforced composite products was approximately 5.84 million tons in 2021, reflecting a year-on-year growth of 14.5%[45]. - Exports of glass fiber and products reached 1.683 million tons in 2021, a significant increase of 26.6% year-on-year, with export value rising to $3.058 billion, up 49.3%[50]. - The fiberglass and products industry achieved a total revenue of 124.4 billion yuan in 2021, representing a year-on-year growth of 21.4%[72]. - The total profit for the industry reached a record 23.14 billion yuan, with a year-on-year increase of 95.5%[72]. - The overall industrial sales profit margin for fiberglass and products was 18.6%, the highest in history[59]. Production Capacity and Expansion - The company is expanding its production capacity with a new production line for 100,000 tons of alkali-free fiberglass, enhancing market share and competitiveness[68]. - Two out of five new production lines for thin felt have been completed, with the remaining three to be built based on market demand[68]. - The company’s subsidiary has completed a project for 100,000 tons of unsaturated polyester resin, which is currently in testing and will enhance product competitiveness[68]. - The company is constructing a production line with an annual capacity of 100,000 tons of alkali-free glass fiber, which is expected to enhance production capacity and meet market demand[83]. - The company plans to build five new production lines for thin felt products, aiming for an annual production capacity of 1 billion square meters, to strengthen its market share[84]. - The company is investing in a 600,000-ton high-performance glass fiber intelligent manufacturing base to enhance its industry competitiveness and product structure[85]. Risk Management and Compliance - The company emphasizes the importance of adapting to macroeconomic fluctuations, particularly in sectors like construction materials, rail transportation, petrochemicals, and automotive manufacturing, which are closely tied to national economic policies[6]. - The company is actively monitoring exchange rate fluctuations, particularly the USD/RMB rate, to mitigate risks associated with foreign exchange losses in its export business[8]. - The company has implemented strict environmental protection measures and is committed to complying with increasingly stringent regulations, which may impact operational costs and financial performance[9]. - The company acknowledges the potential impact of macroeconomic uncertainties on its sales, particularly in overseas markets, which could lead to reduced orders and sales difficulties[6]. - The company is focused on improving its dynamic response capabilities to uncertainties by refining its business structure and management practices[7]. - The company is committed to continuous improvement in production efficiency and management to adapt to changing market conditions[7]. - The company has established a governance structure that complies with relevant laws and regulations, enhancing operational and regulatory risk management[92]. Corporate Governance and Management - The company’s financial report has been verified for accuracy and completeness by its board of directors and management, ensuring transparency in its financial disclosures[4]. - The company has a robust independent board structure, with three independent directors out of nine total board members, enhancing decision-making processes[166]. - The company has maintained a high level of attendance at board meetings, with no directors missing consecutive meetings[195]. - The audit committee conducted meetings to review the 2020 annual report and the 2021 quarterly reports, ensuring compliance with regulatory requirements[200]. - The company has implemented strict information disclosure practices, ensuring that all stakeholders have equal access to relevant information[169]. - The company has established a dedicated account for managing raised funds, ensuring compliance with regulatory requirements[129]. - The company has a structured approach to remuneration decision-making, ensuring alignment with performance metrics[193]. Research and Development - The company is committed to talent development, increasing R&D efforts, and expanding the R&D team to support high-quality growth[91]. - The company's R&D investment amounted to ¥103,301,573.31 in 2021, representing 4.12% of total revenue, a slight increase from 4.10% in 2020[110]. - The number of R&D personnel increased to 263 in 2021, up by 6.05% from 248 in 2020, although the proportion of R&D staff to total employees decreased from 16.81% to 11.39%[110]. - The company is in the R&D phase for multiple innovative projects aimed at enhancing product performance and economic benefits, including high-strength glass fiber and new resin types[110]. - The company aims to enhance its R&D capabilities and core competitiveness by focusing on product technology upgrades and exploring new materials and processes[150]. Shareholder Engagement - The annual shareholders meeting had a participation rate of 4.47% on May 7, 2021, and the first extraordinary shareholders meeting had a participation rate of 2.97% on June 1, 2021[175]. - The second extraordinary shareholders meeting had a participation rate of only 0.03% on August 9, 2021[175]. - The company held multiple investor communication sessions, including a conference call on August 21, 2021, to discuss its financial performance and market outlook, emphasizing a strong demand for its products[162]. - The company plans to strengthen investor relations management to enhance the quality of information disclosure, ensuring timeliness and accuracy[153]. Future Outlook - The company plans to achieve a 25% growth in 2022 based on the analysis of 2021 performance and market conditions[149]. - The company is focusing on expanding its market presence in the automotive lightweight materials sector, where the current composite material application ratio in domestic vehicles is only 8%-12% compared to 20%-30% internationally[76]. - The company plans to expand its market presence in the wet-laid felt segment and eliminate technological barriers to enhance competitiveness[145]. - Continuous fiber composite materials are expected to become a core product for the company, driven by their advantages in weight reduction and performance over traditional materials[147]. - The overall glass fiber industry is expected to enter a new development stage, supported by the "14th Five-Year Plan" and increasing market demand[140].