SVG(SZ:300331)2022-04-28 16:00Financial Performance - The company achieved operating revenue of 1,736.79 million yuan in 2021, an increase of 24.74% compared to the previous year[4]. - Operating profit was -376.91 million yuan, a decline of 792.49% year-on-year; net profit attributable to shareholders was -349.63 million yuan, down 761.95%[4]. - The decline in performance was primarily due to a significant drop in sales of high-margin products, particularly micro-prism reflective materials, affected by rising commodity prices and project delays caused by the pandemic[4]. - The parent company's net profit for 2021 was -134.17 million yuan, a decrease of 445.91% year-on-year, mainly due to underperformance of subsidiary Hua Risheng[5]. - The company made a substantial impairment provision of 309.62 million yuan for goodwill based on the performance of Hua Risheng[4]. - The net profit attributable to shareholders was -¥349,626,181.80 in 2021, a decrease of 761.95% from a profit of ¥52,817,506.16 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥380,039,999.21, compared to a profit of ¥9,649,500.81 in the previous year, marking a decline of 4,038.44%[20]. - The net cash flow from operating activities was ¥10,914,216.81, down 77.70% from ¥48,942,107.60 in 2020[20]. - The total assets at the end of 2021 were ¥3,591,159,026.01, an increase of 16.46% from ¥3,083,562,965.19 at the end of 2020[20]. - The net assets attributable to shareholders increased by 28.55% to ¥1,997,522,482.62 at the end of 2021, up from ¥1,553,864,246.08 in 2020[20]. - The basic earnings per share for 2021 was -¥1.4396, a decrease of 716.00% from ¥0.2337 in 2020[20]. - The weighted average return on equity was -20.47% in 2021, down from 3.45% in 2020, indicating a significant decline in profitability[20]. Revenue Breakdown - The consumption electronic materials segment saw revenue growth of 59.13%, reaching 573.64 million CNY, driven by increased orders for high-efficiency optical plates[63]. - The reflective materials segment reported a revenue decline of 16.00%, totaling 353.95 million CNY, primarily due to reduced demand in road engineering related to the pandemic[66]. - Domestic revenue accounted for 92.48% of total revenue, amounting to ¥1,606,202,782.26, with a year-on-year growth of 30.29%[86]. - The revenue from micro-nano optical products was ¥1,340,351,356.64, accounting for 77.17% of total revenue, with a significant year-on-year growth of 40.86%[84]. - The sales volume of micro-nano optical products increased by 46.39% to 22,888.63 million square meters in 2021, while production volume rose by 33.31% to 21,199.03 million square meters[89]. Investment and R&D - The company has invested in a micro-nano optical guide plate industrialization project, which has begun mass production, alleviating previous capacity constraints[36]. - The company is focusing on technological innovation in the micro-nano optical industry, developing multiple series of lithography machines and imprinting equipment[33]. - The company has invested in the field of nano-textured optical films, primarily applied in mid-to-high-end smartphone back panels, and has quickly entered the domestic market with brands like Huawei and Xiaomi[38]. - The company has established a robust R&D team with 15 PhDs and 63 Masters, contributing to multiple national projects and winning several national and provincial awards[70]. - The R&D investment amount for 2021 was ¥129,333,527.50, which is 7.45% of the operating revenue, up from 6.70% in 2020[100]. - Research and development expenses accounted for 15% of total revenue, reflecting the company's commitment to innovation[162]. Strategic Initiatives - The company has established a strategic cooperation framework with a leading packaging solutions provider to promote the development of environmentally friendly packaging materials[62]. - The company is actively developing capacitive touch solutions for large-sized smart terminal devices, with significant recognition from leading brands and manufacturers[37]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[162]. - The company plans to enhance marketing efforts for micro-prism products and promote environmentally friendly production processes to expand its market share in reflective materials[80]. - The company is committed to becoming a leading domestic and internationally recognized manufacturer of micro-nano functional devices and high-end intelligent equipment[139]. Governance and Management - The company has established a comprehensive governance structure, including a board of directors and various committees, to ensure compliance with legal and regulatory requirements[153]. - The company has maintained operational independence from its controlling shareholder, ensuring autonomy in business and financial matters[155]. - The company’s board of directors includes members with terms ending in 2024, indicating stability in leadership[158]. - The company has a diverse board with members aged between 37 and 74, ensuring a range of perspectives[159]. - The company has a clear structure for executive compensation, with no additional allowances for directors and supervisors[169]. Risks and Challenges - The company is facing significant financial risk due to large debt levels, with funding for projects like high-performance flexible touch screens relying on debt financing, necessitating careful financial planning[148]. - The company has a goodwill amount of ¥82.01 million remaining after multiple impairments, which poses a risk of further impairment if the performance of the acquired entity deteriorates[147]. - The company exports primarily in USD, exposing it to exchange rate fluctuations that could adversely affect profits, prompting the use of financial instruments for hedging[148]. - Increased environmental protection expenditures are anticipated due to stricter regulations, which may also present new market opportunities for the company[149]. Employee and Compensation - The total number of employees at the end of the reporting period is 2,773, with 306 in the parent company and 2,467 in major subsidiaries[182]. - The professional composition includes 2,071 production personnel, 112 sales personnel, 416 technical personnel, 41 financial personnel, and 133 administrative personnel[182]. - Employee compensation consists of basic salary, performance pay, and position pay for certain roles, with compliance to national labor laws for social insurance and housing fund contributions[184]. - The company adheres to a performance-based salary distribution mechanism, linking employee compensation to company performance and individual capabilities[183]. Shareholder Engagement - The company did not distribute any cash dividends or issue bonus shares for the fiscal year 2021, with a total distributable profit of ¥132,782,581.21[189]. - The company plans to hold its annual general meeting, demonstrating transparency and engagement with shareholders[173]. - The board has emphasized the importance of considering the interests of minority shareholders in decision-making processes[176].