RUIFENG CHEM(SZ:300243)2023-04-17 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥1.83 billion, a decrease of 1.45% compared to ¥1.86 billion in 2021[30]. - The net profit attributable to shareholders for 2022 was approximately ¥61.14 million, down 34.17% from ¥92.87 million in 2021[30]. - The net profit after deducting non-recurring gains and losses was approximately ¥47.03 million, a decline of 55.70% compared to ¥106.17 million in 2021[30]. - The net cash flow from operating activities was negative at approximately -¥8.62 million, a decrease of 107.76% from ¥111.14 million in 2021[30]. - The total assets at the end of 2022 were approximately ¥1.94 billion, an increase of 15.00% from ¥1.69 billion at the end of 2021[30]. - The net assets attributable to shareholders at the end of 2022 were approximately ¥935.49 million, up 4.64% from ¥894.04 million at the end of 2021[30]. - The basic earnings per share for 2022 were ¥0.26, a decrease of 35.00% from ¥0.40 in 2021[30]. - The diluted earnings per share for 2022 were ¥0.27, down 30.77% from ¥0.39 in 2021[30]. - The weighted average return on equity for 2022 was 6.70%, a decrease of 4.95% from 11.65% in 2021[30]. Production Capacity and Projects - The company is currently constructing several projects, including a 60,000-ton biodegradable polymer PBAT project and a 20,000-ton epoxy chloropropane project, which are nearing trial production[11]. - The company has increased its production capacity by 40,000 tons in recent years, which may lead to intensified competition in the ACR product market[10]. - The company has a comprehensive production capacity of 180,000 tons, with ACR products having an annual capacity of 70,000 tons, MBS impact modifiers also at 70,000 tons, and MC impact modifiers at 40,000 tons[41]. - The company is expanding into the engineering plastic additives sector, achieving a production capacity of 30,000 tons per year for engineering plastic additives through technical upgrades of existing MBS production lines[44]. - The company is preparing for trial production of a 60,000-ton biodegradable PBAT project, which is significantly influenced by the price fluctuations of BDO and related market policies[53]. Market and Competition - The company plans to expand its product offerings to include engineering plastic additives and biodegradable materials, although these new products may face market competition and demand uncertainties[13]. - The company aims to enhance its market share in the ACR sector through technological innovation and product optimization, while also striving to improve product quality in the MBS sector to compete with foreign enterprises[42]. - The PVC additives industry is in a mature development stage, with increasing market share concentration among leading companies due to stricter environmental regulations[42]. - The company has achieved breakthroughs in the research and development of new products such as ASA and ABS high rubber powder, entering new market segments[30]. - The company is focusing on expanding its engineering plastic additives business, which currently has a small market share but is a key area for growth[52]. Financial Management and Investments - The company will not distribute cash dividends, issue bonus shares, or increase share capital from reserves[15]. - The company reported a government subsidy of ¥2.36 million in 2022, which is closely related to its normal business operations[35]. - The company has conducted thorough feasibility studies for its investment projects, but acknowledges the risk of not achieving expected returns due to market or policy changes[11]. - The company has a dedicated legal department to manage accounts receivable and reduce bad debt risks through various collection measures[123]. - The company has established a special account for raised funds[166]. Research and Development - Research and development expenses increased by 49.22% to ¥6,432,838.58, reflecting increased investment in R&D activities[84]. - The company is developing high-toughness and high-transparency MBS resin to meet diverse customer needs, which is expected to enhance market influence[86]. - The company is also focusing on the development of PBAT polyester high-filling and high-melt-strength agents to align with national environmental policies and expand its market presence[86]. - The company has successfully completed pilot tests for PLA biodegradable materials, positioning itself to meet the growing demand for environmentally friendly products[45]. Risk Management - The company acknowledges potential risks from macroeconomic conditions, including the impact of the real estate market on customer demand[14]. - The company has implemented measures to mitigate raw material price fluctuations, including diversifying procurement channels and adjusting sales prices based on raw material costs[6]. - The company emphasizes strict safety management and environmental compliance to mitigate risks associated with hazardous materials used in production[9]. - The company is closely monitoring the macroeconomic environment, including the impact of the domestic real estate market on customer demand, to adjust its operational strategies accordingly[130]. Corporate Governance - The company has maintained a consistent leadership team with no reported changes in directors or senior management during the reporting period[148]. - The board includes independent directors, ensuring governance and oversight in decision-making processes[149]. - The company has established a comprehensive corporate governance system in accordance with regulatory requirements[199]. - The audit committee held five meetings during the reporting period, reviewing various internal audit reports and financial statements[171]. Shareholder Relations - The company reported a 26.50% investor participation rate in the 2021 annual general meeting held on June 13, 2022[145]. - The company proposed no cash dividends, no bonus shares, and no capital reserve conversion to share capital for the 2022 fiscal year, despite having a positive distributable profit of RMB 415,502,486.59[185]. - The company emphasizes the importance of protecting minority shareholders' rights and ensuring transparency in its profit distribution policies[182]. - The company plans to continue prioritizing cash dividends in accordance with relevant laws and regulations, while focusing on long-term shareholder value[186].