Comens Materials(SZ:300200)2022-04-08 16:00Financial Performance - The company's operating revenue for 2021 was approximately CNY 1.10 billion, representing a 14.58% increase compared to CNY 959.68 million in 2020[28]. - The net profit attributable to shareholders for 2021 was CNY 159.19 million, a decrease of 31.56% from CNY 232.58 million in 2020[28]. - The net profit after deducting non-recurring gains and losses was CNY 147.79 million, down 35.18% from CNY 228.01 million in 2020[28]. - The basic earnings per share for 2021 was CNY 0.37, a decline of 32.73% compared to CNY 0.55 in 2020[28]. - The total assets at the end of 2021 amounted to CNY 2.15 billion, reflecting a 3.58% increase from CNY 2.07 billion at the end of 2020[28]. - The net assets attributable to shareholders at the end of 2021 were CNY 1.82 billion, an increase of 2.03% from CNY 1.78 billion at the end of 2020[28]. - The cash flow from operating activities for 2021 was CNY 175.86 million, a decrease of 33.76% from CNY 265.48 million in 2020[28]. - The company reported quarterly revenues of CNY 293.61 million, CNY 269.14 million, CNY 281.06 million, and CNY 255.75 million for Q1 to Q4 respectively[30]. - The company’s weighted average return on equity for 2021 was 8.80%, down from 13.46% in 2020[28]. - The company’s operating profit was 179.60 million CNY, a decrease of 86.75 million CNY, reflecting a decline of 32.57% year-on-year[86]. - The company achieved a net profit of ¥159,185,249.92 for the year 2021, with the parent company net profit at ¥138,575,220.82[197]. Market and Competitive Landscape - The company faces risks related to market competition and product iteration, particularly from new entrants and established multinational corporations in high-end markets[11]. - The competitive landscape is shifting towards stronger brand concentration as traditional fuel vehicle manufacturers accelerate their transition to electric vehicles[45]. - The polyurethane adhesive market is becoming increasingly concentrated, yet remains competitive with new entrants and multinational companies dominating high-end products[147]. - The company is focusing on the development and promotion of solvent-free products, as the solvent-based product market is declining while the solvent-free market is expanding[147]. Research and Development - The company is committed to increasing R&D efforts in solvent-free products, responding to market trends and regulatory demands for safer and more environmentally friendly options[11]. - The company has increased its R&D investment in developing low VOC emission technologies and biodegradable adhesive products in line with national environmental strategies[39]. - R&D investment for the company was ¥63.56 million, accounting for 5.78% of total revenue, with 61 R&D personnel, 34.43% of whom hold master's degrees or higher[80]. - The company has applied for 161 invention patents, of which 140 have been granted, and 53 utility model patents, with 43 granted[80]. - The company achieved mass production of water-based polyurethane adhesives, solidifying its position in the automotive adhesive market[113]. Product Development and Innovation - The company launched multiple functional adhesive products in response to the rising demand for import substitution, achieving performance comparable to similar imported products[38]. - The automotive adhesive segment saw a significant increase in the proportion of new energy vehicle adhesives and composite bonding adhesives, with some products becoming bestsellers[40]. - The company actively developed environmentally friendly products, including water-based polyurethane adhesives and PUR adhesives, to meet the growing demand for eco-friendly solutions in the automotive industry[41]. - The company is developing several new products, including high-strength polyurethane structural adhesives and solvent-free products, to enhance market competitiveness and meet industry demands[112]. - The company has successfully launched specialized adhesives for the pharmaceutical packaging sector, gaining wide recognition and establishing strategic partnerships[92]. Strategic Initiatives - The company plans to enhance its strategic procurement practices to mitigate risks associated with raw material price volatility and supply shortages[7]. - The company aims to optimize its management structure and resource allocation in response to the complexities arising from business expansion[10]. - The company is focusing on expanding its product range and enhancing competitiveness through continuous innovation and adaptation to market demands[39]. - The company will implement a strategic procurement plan to improve purchasing efficiency and reduce costs amid high raw material prices, leveraging bulk material procurement and standardizing processes[140]. - The company is committed to enhancing information technology and digitalization to establish efficient and replicable organizational processes[143]. Governance and Management - The company adheres to governance standards and regulations, ensuring independent operations from its controlling shareholder[153][155]. - The company’s board of directors includes members with extensive backgrounds in engineering and economics, enhancing governance and strategic direction[163][164]. - The company has maintained a consistent governance structure with no changes in the voting rights of shareholders[160]. - The total remuneration paid to directors, supervisors, and senior management in 2021 amounted to CNY 9.4023 million[175]. - The company emphasizes a fair and transparent compensation policy, linking employee performance bonuses to annual business goals[187]. Financial Policies and Dividends - The company has a policy of prioritizing cash dividends, especially when the accumulated undistributed profits are positive[192]. - The company proposed a cash dividend of RMB 1.50 per 10 shares, based on a total share capital of 425,490,833 shares after deducting 33,600 restricted shares[198]. - The company plans to distribute at least 10% of the annual distributable profit as cash dividends, with a cumulative distribution of at least 30% over the last three years[192]. - The company will not distribute dividends until previous years' losses are covered and 10% of the net profit is allocated to statutory surplus reserves[190]. Risks and Challenges - The company reported a significant increase in raw material prices due to factors such as global pandemic impacts and upstream supplier maintenance, which has led to cost pressures on product margins[7]. - The company faces risks from volatile raw material prices, which could impact product costs and profit margins, necessitating close monitoring and strategic procurement[144]. - There is a risk of goodwill impairment related to the acquisition of Wuhan Huasen, which could negatively impact the company's profits if future performance does not meet expectations[150]. - The company recognizes the risk of failing to keep pace with technological advancements in the adhesive market, which could affect its competitive edge and R&D success rates[145].