TONGDA STOCK(SZ:300321)2022-04-22 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥520.07 million, an increase of 27.19% compared to ¥408.88 million in 2020[21]. - The net profit attributable to shareholders decreased by 84.36% to approximately ¥3.17 million in 2021, down from ¥20.28 million in 2020[21]. - The net profit after deducting non-recurring gains and losses was approximately -¥607,094 in 2021, a decline of 103.73% compared to ¥16.29 million in 2020[21]. - The weighted average return on net assets was 0.51% in 2021, down from 3.17% in 2020[21]. - The company's main business revenue for 2021 was CNY 520,065,387.98, an increase of 27.19% compared to CNY 408,878,937.52 in 2020[51]. - The company achieved a net profit of CNY 3,172,674.07 for the year 2021, with a distributable profit of CNY 2,855,406.66[143]. - The cash dividend distribution plan for 2021 was approved, with a total cash dividend of CNY 2,841,600, distributed at CNY 0.32 per 10 shares[143]. Cash Flow and Assets - The net cash flow from operating activities surged by 962.02% to approximately ¥45.98 million in 2021, compared to ¥4.33 million in 2020[21]. - The total assets at the end of 2021 were approximately ¥735.15 million, a decrease of 0.99% from ¥742.49 million at the end of 2020[21]. - The company reported a significant increase in cash inflow from operating activities, totaling ¥447,204,809.46 in 2021, up 45.95% from ¥306,414,662.08 in 2020[68]. - The company achieved a total cash and cash equivalents increase of ¥60,416,266.67 in 2021, a turnaround from a decrease of ¥64,088,858.85 in 2020, marking a 194.27% improvement[68]. - The company's inventory increased significantly by 6.63%, from ¥71,261,750.94 at the beginning of 2021 to ¥119,294,475.61 at the end of the year[73]. Production and Sales - The company operates on a sales-driven production model, aligning production plans with customer demand established through annual agreements[38]. - The company's revenue from synthetic leather manufacturing reached CNY 1,584.66 million in 2021, an increase of 18.62% compared to 2020[56]. - The production volume of synthetic leather was CNY 1,678.77 million square meters, up 25.40% year-on-year[56]. - The inventory level increased by 48.83% to 286.83 million square meters, attributed to proactive stockpiling based on market forecasts[56]. - The company's revenue from the East China region was CNY 218,317,804.11, representing a year-on-year increase of 57.14%[53]. Research and Development - The company’s R&D expenses for 2021 were CNY 17,204,807.00, a decrease of 16% from CNY 20,482,397.97 in 2020[47]. - The company completed several R&D projects aimed at enhancing the environmental production capabilities of synthetic leather[64]. - The company is currently developing several new products, including high-performance antibacterial synthetic leather and UV-sensitive color-changing synthetic leather, aimed at enhancing product competitiveness and environmental sustainability[65]. - The company has committed to investing 100 million RMB in research and development for new technologies over the next two years[166]. Market and Competitive Position - The company is recognized as one of the largest ultra-fine fiber synthetic leather manufacturers in China, holding 19 national invention patents and various quality certifications[35]. - The market for synthetic leather in China remains stable, with significant growth potential for high-end products like ultra-fine fiber leather[31]. - The company aims to become a global leader in ultra-fine fiber supply, focusing on innovation and sustainable materials[35]. - The company has established long-term stable partnerships with well-known clients, including BMW, LV, and Adidas, ensuring a solid foundation for growth[41]. Governance and Management - The board of directors consists of nine members, including three independent directors, ensuring compliance with relevant laws and regulations[101]. - The company has a governance structure that does not include differential voting rights, ensuring equal voting power among shareholders[109]. - The company has maintained a stable leadership structure, with many members serving in their roles for several years, ensuring continuity in governance[119]. - The company has implemented a performance-based remuneration system for senior management, aligning incentives with company performance[124]. - The company reported a resignation of key executives, including the chairman and CFO, due to personal reasons, effective December 8, 2021[110]. Risks and Challenges - The company faced increased production costs due to the replacement of coal-fired boilers with natural gas boilers, as well as rising raw material prices[4]. - The company highlighted potential risks including fluctuating macroeconomic conditions, rising raw material prices, and stricter environmental regulations[4]. - The company acknowledges risks from macroeconomic conditions, raw material price fluctuations, and environmental regulations, and plans to implement measures to mitigate these risks[88][89][90]. Future Outlook - The company plans to enhance high-value product sales and brand market share while focusing on sustainable development in the microfiber industry for 2022[80]. - The company has set a future revenue target of 1.5 billion RMB for the next fiscal year, indicating an expected growth rate of 25%[162]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in sales from this region by 2023[164].