HIFICHEM(SZ:300758)2022-04-24 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares to all shareholders, based on a total share capital of 405,333,448 shares as of April 22, 2022[4]. - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares, totaling RMB 81,066,689.60, which represents 100% of the total profit distribution amount[193]. - The total number of shares for the dividend distribution is based on 405,333,448 shares, excluding 4,903,922 shares in the repurchase account[193]. - The cash dividend policy aligns with the company's sustainable profitability and financial health, ensuring normal operations and long-term development[195]. - The company has established a transparent decision-making process for dividend distribution, ensuring the protection of minority shareholders' rights[192]. - The stock incentive plan includes a mechanism for adjusting the number of shares based on changes in total share capital before the dividend distribution date[194]. - The company’s independent directors have fulfilled their responsibilities in the decision-making process regarding the cash dividend policy[192]. Financial Performance - The company's operating revenue for 2021 was CNY 1,346,896,198.64, representing a 33.58% increase compared to CNY 1,008,303,495.18 in 2020[5]. - The net profit attributable to shareholders for 2021 was CNY 179,971,838.62, a 2.57% increase from CNY 175,456,345.20 in 2020[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 9.54% to CNY 153,034,582.24 in 2021 from CNY 169,176,481.36 in 2020[5]. - The net cash flow from operating activities increased by 72.44% to CNY 161,080,545.05 in 2021, compared to CNY 93,411,946.87 in 2020[5]. - The total assets at the end of 2021 were CNY 2,631,345,275.90, a 36.20% increase from CNY 1,932,006,921.00 at the end of 2020[5]. - The net assets attributable to shareholders at the end of 2021 were CNY 1,717,258,776.67, up 39.86% from CNY 1,227,864,246.16 at the end of 2020[5]. - The company reported a basic earnings per share of CNY 0.46 for 2021, down 14.81% from CNY 0.54 in 2020[5]. - The company's total operating revenue for 2021 reached ¥1,346,896,198.64, representing a year-on-year increase of 33.58% compared to ¥1,008,303,495.18 in 2020[69]. - The revenue from pigments accounted for 73.80% of total revenue in 2021, amounting to ¥994,075,265.38, with a year-on-year growth of 45.26%[69]. - The gross profit margin for the fine chemicals segment was 31.61%, with a decrease of 3.85% compared to the previous year[70]. Risk Management - The company emphasizes the importance of understanding the risks associated with future development strategies and operational plans, which are subject to market conditions and uncertainties[3]. - The company has detailed potential risk factors and countermeasures in the annual report, encouraging investors to pay attention to these aspects[3]. - The company is facing environmental risks due to its operations in the fine chemical industry, with potential penalties for failing to meet environmental standards, which could increase operational costs[125]. - Safety production risks are present due to the use of flammable and corrosive materials, despite the company's commitment to safety management and compliance with regulations[127]. - The company is exposed to market risks from fluctuations in raw material prices, which could increase operational costs and affect profitability[128]. - The ongoing global COVID-19 pandemic may impact the company's export business, prompting measures to ensure employee safety and maintain production stability[130]. Research and Development - The company has established R&D centers in Shanghai and Anshan, focusing on the development of high-performance organic pigments and dyes[26]. - The company is focusing on the development of new materials, including special nylon and polyimide, targeting industries such as automotive lightweighting and 5G communications[32]. - The company is actively involved in the replacement of lead-chromate pigments, with its high-performance organic pigments gaining traction in various industries[31]. - The company has made significant progress in R&D innovation, aligning with national carbon reduction strategies, and has applied for patents for some of the results[45]. - The company has developed a strong technological foundation in high-performance organic pigments and is actively applying for patents to protect its core technologies[129]. - The company has established a strong R&D team and has over 100 patented and non-patented technologies, enhancing its core competitiveness in the market[57]. - The company's R&D personnel increased from 207 in 2020 to 246 in 2021, representing an 18.84% growth[80]. - R&D expenditure amounted to ¥81,733,200.44 in 2021, which is 6.07% of operating revenue, up from 5.08% in 2020[80]. Strategic Initiatives - The company aims to strengthen industry integration and enhance technological innovation to transition from a pigment power to a pigment strong country[29]. - The company anticipates increased demand for organic pigments in the coatings and plastics sectors, driven by economic growth and rising living standards[28]. - The company completed a 29% equity acquisition in Shaoxing Shangyu Xinli Chemical Co., Ltd., increasing its ownership to 80%, enhancing its competitive advantage in the benzimidazolone pigment sector[41]. - The company acquired 65% of Jining Jintailihua Chemical Technology Co., Ltd., which has an annual production capacity of 15,000 tons for catalytic hydrogenation products[41]. - The company is expanding its product line and optimizing its business layout through strategic investments and partnerships[42]. - The company has completed the construction of a pilot line for special polyurethane products, achieving sales at the tonnage level with two companies in Germany and the USA[44]. - The company is actively exploring market opportunities to gradually release production capacity as demand increases[106]. - The company plans to focus on the development of new materials and the lead-free pigment replacement market, aiming to accelerate technology upgrades and market expansion[118]. - The company aims to become an international leader in high-performance organic pigments and new materials, leveraging its ammonia oxidation technology chain[117]. Governance and Management - The company has a clear and independent governance structure, ensuring no interference from controlling shareholders in its operations[147]. - The company emphasizes investor relations management, adhering to established principles and ensuring good interaction with investors[146]. - The company has a complete and independent personnel and compensation management system, with no overlap of financial personnel in other companies controlled by shareholders[149]. - The company has a dedicated audit committee that effectively fulfills its responsibilities during the reporting period[139]. - The company maintains an independent financial accounting department with a complete accounting system, ensuring independent financial decision-making[150]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[138]. - The company has established a comprehensive performance evaluation and incentive mechanism for directors and senior management, which is effective and aligns with the company's actual situation[141]. - The company has a stable management team with all current directors and supervisors being re-elected on June 30, 2021[160]. - The management team includes professionals with extensive experience in finance, engineering, and market operations, enhancing the company's operational capabilities[165][166]. Employee and Compensation - The company employed a total of 1,922 staff members, with 1,341 in the parent company and 581 in major subsidiaries[185]. - The company has established a comprehensive internal training system to enhance employee skills and overall management[188]. - The company has a well-defined compensation policy aimed at motivating employees based on performance and contributions[186]. - The total pre-tax remuneration for the chairman and general manager, Xu Huixiang, is 99.19 million CNY[176]. - The total pre-tax remuneration for the vice chairman and general manager, Wang Xianfeng, is 69.80 million CNY[176]. - The total pre-tax remuneration for the vice chairman, Qi Xuebo, is 52.85 million CNY[176]. - The total pre-tax remuneration for the director, Zhang Zhiqun, is 47.12 million CNY[176]. - The total pre-tax remuneration for the board secretary and vice general manager, Yu Xingchun, is 40.08 million CNY[176]. Investments and Acquisitions - The company completed a capital increase investment of ¥145,000,000 in Shangyu Xinli, acquiring a 29% stake, with an expected investment return of ¥26,265,994.19[95]. - A new establishment investment of ¥7,000,000 was made in Tiancai Materials, acquiring a 60% stake, with a reported loss of ¥1,086,661.34[95]. - The company acquired a 65% stake in Jining Jintailihua Chemical Technology Co., Ltd. for ¥195,000,000, with an investment return of ¥6,813,248.20[96]. - The total amount of significant equity investments during the reporting period was ¥347,000,000[96]. - The company has committed to using the raised funds for specific projects, with a total of ¥40,946.42 million directly invested in these projects in 2021[104]. - The company has an unused fundraising balance of 130.8976 million yuan as of December 31, 2021, all of which is stored in a dedicated fundraising account[108]. Operational Efficiency - The company is committed to enhancing its operational efficiency and cost control, achieving significant improvements in management and profitability[40]. - The company employs a "sales-driven production" strategy, adjusting production plans based on sales forecasts and existing orders[49]. - The company has successfully controlled the production of core intermediates, enhancing the quality stability of high-performance organic pigments and allowing for personalized product offerings[60]. - The direct materials cost accounted for 66.22% of the total operating costs, amounting to approximately 609.99 million, which is a 41.54% increase year-on-year[74]. - The company reported a 57.12% increase in sales expenses, totaling approximately 50.54 million, primarily due to higher employee compensation and stock incentive costs[78]. - Research and development expenses increased by 59.55% to approximately 81.73 million, driven by increased R&D investment and personnel costs[78]. Market Position and Sales Strategy - The company is positioned for future growth with a focus on expanding its product offerings and market reach through strategic initiatives[164]. - The company's export sales reached approximately 143.66 million, showing a year-on-year increase of 30.76%[72]. - The direct sales model generated approximately 624.30 million, reflecting a growth of 32.96% compared to the previous year[72]. - The sales volume in the fine chemicals sector increased by 64.70% to 13,580.73 tons, while production volume rose by 61.96% to 16,907.76 tons[72]. - The revenue from high-performance organic pigment products grew by 45.26%, contributing significantly to the increase in production and inventory levels[72]. - The company’s sales strategy includes direct sales to large chemical manufacturers and partnerships with overseas distributors for small and medium clients[52].