JinJi(SZ:300798)2023-04-24 16:00Financial Performance - The main business revenue of Jiangsu Jinji Industrial Co., Ltd. decreased year-on-year due to stable demand in the downstream dyeing industry and locked sales prices at the beginning of the reporting period[3]. - The net profit significantly declined year-on-year due to increased main business costs caused by rising raw material prices amid the impact of the Russia-Ukraine conflict and other unexpected events[3]. - The company's operating revenue for 2022 was ¥900,383,709.56, a decrease of 9.37% compared to ¥993,470,872.82 in 2021[23]. - The net profit attributable to shareholders for 2022 was ¥7,578,279.76, representing an 85.55% decline from ¥52,438,791.03 in 2021[23]. - The cash flow from operating activities showed a net outflow of ¥10,447,871.87 in 2022, a significant decrease of 122.42% compared to a net inflow of ¥46,595,755.76 in 2021[23]. - Basic earnings per share dropped to ¥0.0181 in 2022, down 86.08% from ¥0.13 in 2021[23]. - The total profit amounted to 989.55 million yuan, down 84.05% year-on-year[38]. - The company reported a decrease in net profit after deducting non-recurring gains and losses to ¥5,206,384.48 in 2022, down 90.06% from ¥52,378,148.04 in 2021[23]. - The company achieved operating revenue of 90,038.37 million yuan, a year-on-year decrease of 9.37%[38]. - The total cash dividend amount is RMB 8,355,013.32, which accounts for 100% of the total profit distribution[170]. Risks and Challenges - The company faces various risks, including macroeconomic risks, industry policy changes, and raw material price risks, which may impact future operations[5]. - The company emphasizes the importance of risk awareness regarding future operational plans and performance forecasts, indicating that these do not constitute substantial commitments to investors[3]. - The company reported a net profit of -¥11,294,718.79 in Q4 2022, contrasting with positive profits in the first three quarters[25]. - Financial risks have increased due to the need for substantial cash flow to service convertible bonds and ongoing project investments[122]. - The company faces risks from macroeconomic fluctuations and plans to adjust strategies accordingly to mitigate impacts[116]. - The company is also addressing safety production risks due to the nature of its raw materials and production processes, implementing measures to enhance operational safety[117]. Research and Development - The company developed 4 new products, including Reactive Red QD and Reactive Orange FCW, with production processes meeting design quality requirements[42]. - R&D expenses for the year were 3,239.22 million yuan, accounting for 3.60% of the company's operating revenue[42]. - The company is advancing several R&D projects, including the CRG active dye, which aims to improve dye strength and reduce wastewater discharge[82]. - The active yellow HF-3RX project has completed pilot testing and is moving to mass production, targeting improved dye yield and reduced wastewater[85]. - The company is committed to establishing a national-level R&D center to enhance product performance and optimize production processes[114]. Environmental Management - The company has invested in environmental protection facilities and monitoring systems to effectively manage waste and comply with national environmental policies[120]. - The company has a wastewater treatment system with a capacity of 800 tons/day, utilizing advanced treatment processes, achieving over 95% efficiency in pollutant removal[182]. - The company has received administrative penalties totaling CNY 200,000 for exceeding emissions standards, but these incidents did not significantly impact operations[180]. - The company has implemented a new wastewater treatment agent, BWG, to enhance biochemical treatment effectiveness, resulting in all wastewater meeting discharge standards during the reporting period[182]. - The company has adhered to the "Three Simultaneities" principle in its construction projects, ensuring pollution control measures are integrated into project design and execution[183]. Governance and Management - The governance structure is compliant with legal requirements, ensuring independent operation from major shareholders[126]. - The company maintains a clear separation of assets and operations from its controlling shareholders, ensuring independence in financial and operational matters[127]. - The management team remains consistent, with key executives serving until at least 2025[132]. - The board of directors underwent significant changes, with 8 members leaving and 9 new members appointed on May 5, 2022, marking a complete renewal of the board[135]. - The company has appointed 3 independent directors in the new board, ensuring compliance with governance standards[136]. Market and Sales Strategy - The company plans to enhance brand building and product image to improve competitiveness[40]. - The company aims to increase R&D efforts and accelerate project construction to optimize its industrial layout[40]. - The company plans to expand its marketing network and strengthen its international presence, targeting major customer locations for sales network development[114]. - The company is in the trial production phase for disperse dyes, which have a higher annual market demand than reactive dyes[113]. - The company aims to leverage its existing resources to achieve the projected revenue growth by 2025, focusing on strategic investments and market expansion[134]. Employee and Training Initiatives - The total number of employees at the end of the reporting period was 684, with 430 in production, 30 in sales, 73 in technical roles, 10 in finance, and 141 in administration[163]. - The company conducted 10 training sessions focused on 6S, TPM, quality management, and employee capability enhancement, with 722 participants[167]. - The company has engaged external experts for ongoing safety and environmental training, conducting 8 sessions with 402 participants[167]. - The company’s training plan includes targeted programs for new employees, management skills, and emergency response training[165]. - The company has a structured decision-making process for determining the remuneration of its board members[152]. Investment and Financial Management - The company raised a total of RMB 231,043,400 from the public offering of 41.78 million shares at an issue price of RMB 5.53 per share, with a net amount of RMB 184,854,700 after deducting various fees[98]. - The company reported a net interest income of RMB 1,591,380 from the raised funds during the reporting period[99]. - The total amount of unused raised funds was RMB 34,783,300, which is allocated for cash management[101]. - The company has not reported any significant mergers or acquisitions during the reporting period[130]. - The company has not made any significant equity sales during the reporting period[108].