SCAM(SZ:300554)2022-04-24 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥248.45 million, a decrease of 3.84% compared to ¥258.38 million in 2020[20]. - The net profit attributable to shareholders for 2021 was a loss of approximately ¥75.01 million, representing a decline of 474.48% from a profit of ¥20.03 million in 2020[20]. - The company reported a basic earnings per share of -¥0.8013 for 2021, a decline of 474.44% from ¥0.2140 in 2020[20]. - The weighted average return on equity was -14.03% for 2021, a decrease of 17.79% compared to 3.76% in 2020[20]. - The company's total revenue for 2021 was approximately ¥248.45 million, a decrease of 3.84% compared to ¥258.38 million in 2020[49]. - The revenue from superhard material products accounted for 97.74% of total revenue, totaling approximately ¥242.83 million, down 3.72% from ¥252.21 million in 2020[49]. - The company reported a non-recurring net profit of -80.96 million yuan, down 588.42% year-on-year[42]. - The company achieved operating revenue of 248.45 million yuan, a year-on-year decrease of 3.84%[42]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to approximately ¥103.26 million, an increase of 975.04% compared to a negative cash flow of ¥11.80 million in 2020[20]. - The total assets of the company decreased by 17.34% to approximately ¥765.84 million at the end of 2021, down from ¥926.51 million at the end of 2020[20]. - The company's net assets attributable to shareholders decreased by 13.86% to approximately ¥495.16 million at the end of 2021, compared to ¥574.86 million at the end of 2020[20]. - The company's cash and cash equivalents decreased by CNY 48,914,162.70, showing a 12.96% improvement compared to the previous year[63]. - The inventory increased by 4.56% to CNY 91,915,783.14, mainly due to an increase in finished products and raw materials[66]. Market and Industry Trends - The photovoltaic industry saw a record installation of 55 GW in 2021, with expectations to reach 75-90 GW in 2022, indicating strong market growth[31]. - The demand for diamond wire, used in cutting silicon materials, is projected to reach 100 million kilometers in 2022, reflecting increased demand in the photovoltaic sector[31]. - The semiconductor industry has shown remarkable growth, and the company anticipates strong sales for its diamond tools used in this sector[83]. - The company aims to enhance its market share in silicon slicing wire and expand into new applications such as magnetic materials and glass cutting[83]. Research and Development - The company has accumulated 72 authorized patents, including 18 invention patents, and has 18 additional patents under application[35]. - R&D investment reached ¥24.21 million, accounting for 9.75% of revenue, reflecting a 39.89% increase year-on-year despite revenue decline[47]. - The R&D department is currently working on 5 new patents, focusing on advanced materials technology[110]. - The company plans to launch several new products, including a high-precision diamond cutting blade, which is expected to enhance market competitiveness and revenue[59]. Strategic Initiatives - The company plans to enhance cost control and expand into the semiconductor market to improve its competitive position[5]. - The company aims to improve product quality and reduce manufacturing costs through ongoing technological upgrades and talent acquisition[47]. - The company plans to replace imported equipment with domestic silicon wafer cutting equipment to enhance production capacity and market share[46]. - The company has established a new subsidiary, Jiangsu Sanjing Semiconductor Materials Co., Ltd., focusing on diamond tools for semiconductor wafer processing[37]. Governance and Compliance - The company has implemented a robust internal control system and governance structure, ensuring compliance with relevant laws and regulations[92]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards[93]. - The company actively engages with investors through various channels, enhancing communication and transparency[96]. - The company has established an independent financial accounting department with a standardized financial accounting system, ensuring independent financial decision-making[99]. Shareholder and Remuneration Policies - The company emphasizes a stable profit distribution policy, prioritizing cash dividends over stock dividends when conditions allow[130]. - The company reported a total distributable profit of 108,055,296.72 CNY, with a cash dividend amount of 0 CNY, resulting in a cash dividend ratio of 0.00%[135]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 491.57 million RMB[115]. - The company aims to align executive bonuses with the achievement of annual operational goals and assessment plans[113]. Risks and Challenges - The company acknowledges potential risks in its future development and encourages investors to be aware of these risks[5]. - The company faces risks related to rising raw material prices, which have increased significantly since the second half of 2020, impacting profit margins[87]. - The competitive landscape in the diamond wire industry is intensifying, which may lead to price and margin pressures[85]. Employee and Operational Insights - The total number of employees at the end of the reporting period was 691, with 162 in the parent company and 529 in major subsidiaries[126]. - The company implemented a salary adjustment plan for 2021 based on operational performance and employee capabilities, aiming to enhance recruitment efficiency[127]. - The training plan for the year was completed successfully, focusing on improving skills in various areas including production management and quality control[129].