QSY Tech(SZ:300437)2022-03-07 16:00Financial Performance - The company reported a total revenue of RMB 259,063,097 for the year 2021, with a cash dividend of RMB 1.00 per 10 shares distributed to shareholders [5]. - The company's operating revenue for 2021 was ¥1,637,922,414.58, representing a 32.37% increase compared to ¥1,237,387,447.26 in 2020 [18]. - The net profit attributable to shareholders in 2021 was ¥90,057,328.22, a significant turnaround from a loss of ¥373,063,087.37 in 2020, marking a 124.14% improvement [18]. - The net profit after deducting non-recurring gains and losses was ¥83,154,045.67 in 2021, compared to a loss of ¥378,312,564.63 in 2020, reflecting a 121.98% increase [18]. - The net cash flow from operating activities increased by 65.31% to ¥326,537,270.53 in 2021, up from ¥197,529,211.08 in 2020 [18]. - The total assets at the end of 2021 were ¥3,584,419,971.31, a decrease of 18.31% from ¥4,387,774,793.05 at the end of 2020 [18]. - The net assets attributable to shareholders increased by 32.89% to ¥1,625,282,086.74 at the end of 2021, compared to ¥1,223,050,081.13 at the end of 2020 [18]. - The company reported a basic earnings per share of ¥0.4013 in 2021, a significant increase from a loss of ¥1.7088 in 2020, representing a 123.48% improvement [18]. - The company achieved a production capacity of 16000 tons/year for DTPMP and 130000 tons/year for chloromethane, with a 24.15% and 31.40% increase in production capacity respectively, reaching full production by December 2021 [66]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year 2021, representing a year-over-year growth of 15% [176]. Research and Development - The company emphasizes its focus on research and development, particularly in water treatment technologies, to enhance its market position [4]. - The company has formed a strong R&D team, including experts from the Chinese Academy of Sciences and experienced professionals, to enhance its technological capabilities and industry competitiveness [36]. - The company plans to increase R&D investment to develop new types of green and environmentally friendly water treatment chemicals, thereby expanding its product range and application scope [35]. - The R&D department has made advancements in eco-friendly technologies, with a budget increase of 40% for 2022 to support innovation [176]. - The company has developed a new ultrasonic anaerobic biological treatment technology for high-concentration phenol/ammonia wastewater, aiming to significantly shorten the treatment process time and broaden the application range of existing technologies [96]. - The project for polypropylene acid scale inhibitors has completed part of its products, achieving higher effective content and better stability, which is expected to enhance market share [96]. - The company has successfully completed the development of a zero discharge technology for high-salinity organic wastewater, which is anticipated to strengthen its core competitiveness in the industrial wastewater treatment sector [96]. - The company is focusing on enhancing its core technology and competitive edge through innovative research and development projects [96]. Market Position and Strategy - The company is positioned as a leading enterprise in the water treatment agent industry, with a diverse product range and strong customer relationships [29]. - The demand for water treatment agents is expected to continue growing due to increasing global water scarcity and environmental regulations [30]. - The company aims to establish itself as a key production base in the domestic water treatment industry, focusing on the production and sales of water treatment chemicals while enhancing its core competitiveness [35]. - The company has successfully completed the expansion project for an annual production capacity of 180,000 tons of water treatment chemicals, increasing its design capacity to 270,000 tons per year, which will enhance product structure and significantly boost output [34]. - The company plans to expand its market presence by entering three new provinces in 2022, aiming for a market share increase of 10% in those regions [176]. - A strategic acquisition of a local competitor is in progress, expected to enhance the company's market position and increase annual revenue by approximately 200 million RMB [176]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective checks and balances among the shareholders, board of directors, and management [149]. - The board of directors consists of 9 members, including 3 independent directors, meeting the requirements set by laws and regulations [151]. - The company has an independent financial department and a sound financial management system, ensuring financial independence from the controlling shareholder [161]. - The company actively respects and protects the rights of stakeholders, promoting balanced interests among shareholders, employees, and society [155]. - The company has established a robust information disclosure system, ensuring equal access to information for all shareholders [157]. - The company has maintained compliance with the Company Law and regulatory rules, ensuring timely and efficient decision-making processes [192]. - The independent directors actively fulfilled their responsibilities, ensuring the protection of the company's overall interests and the legal rights of all shareholders, especially minority shareholders [191]. Operational Efficiency - The company has established a dynamic monitoring industrial internet platform to enhance operational efficiency and reduce resource consumption [42]. - The company is advancing the "Water Cloud Trace" industrial internet platform to enhance its water treatment services through smart technology [82]. - The company has implemented a new gas protection system for the production of HEDP, enhancing raw material utilization [64]. - The company is focused on continuous online production processes to improve product stability and efficiency [65]. - The company has implemented a performance incentive system to encourage innovation and improve R&D efficiency, focusing on the conversion of scientific research achievements into economic benefits [69]. Challenges and Risks - The company faces challenges with rising raw material costs and increased competition in the water treatment agent market [30]. - The company faces risks from fluctuations in raw material and product prices, which can impact gross margins and profitability due to significant price volatility during the reporting period [137]. - Increased environmental regulations may raise operational costs, affecting project profitability, as the company must comply with stricter standards [139]. - The company is exposed to international trade risks, including potential trade barriers and tariffs that could adversely affect export operations and market expansion [140]. - Currency exchange rate fluctuations pose a risk to profitability, as a significant portion of export revenue is denominated in USD, and recent volatility in the RMB/USD exchange rate could impact financial performance [142]. Employee Development - The total number of employees at the end of the reporting period is 962, with 72 from the parent company and 890 from major subsidiaries [198]. - The company emphasizes employee development through various training programs, including pre-job training, on-the-job training, and management training [200]. - Training initiatives are designed to align with company strategy and employee needs, focusing on practical and value-driven content [200]. - Continuous employee stock ownership plans are in place to foster a sense of responsibility and mission among the management team and key personnel [199].