COSMOS(SZ:300856)2023-04-19 16:00Business Operations - The company operates independently in the daily chemical raw materials sector, with a complete supply, production, sales, and R&D chain[2]. - The company has no significant competition or unfair related transactions with shareholders, ensuring independent business operations[2]. - The company has established several wholly-owned subsidiaries, including Suqian Kesi Chemical Co., Ltd. and Anhui Shengnuobe Chemical Technology Co., Ltd.[63]. - The company is focused on the development of new chemical products, particularly in the personal care and household goods sectors, which are regulated by the FDA[63]. - The company is actively researching and developing new sunscreen agents, including AVB and OCT, which are recognized for their high absorption rates and safety[63]. Governance and Compliance - The company adheres to strict information disclosure obligations, ensuring transparency and timely communication with investors[20]. - The board of directors and management team are fully employed and compensated according to labor laws and company policies[1]. - The company has a structured approach to governance, aligning with legal and regulatory requirements without significant discrepancies[20]. - The company has a dedicated audit committee that reviews financial reports and compliance matters regularly[17]. - The company has appointed independent directors to enhance governance and oversight[7]. - The company has a supervisory board consisting of three members, ensuring compliance with legal and regulatory requirements[35]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards[49]. - The company has established a structured governance framework to protect shareholder rights and ensure transparent operations[48]. Financial Performance - The company reported a strong performance in 2022, with total revenue reaching CNY 1.5 billion, representing a year-on-year growth of 15%[66]. - The net profit for the year was CNY 300 million, an increase of 20% compared to the previous year[66]. - The company achieved a total revenue of CNY 1,764.82 million in 2022, representing a year-on-year growth of 61.85%[142]. - The net profit attributable to shareholders reached CNY 388.14 million, marking a significant increase of 192.13% compared to the previous year[142]. - The gross profit margin improved to 36.66% due to price adjustments and increased production capacity utilization[142]. - Revenue from cosmetic active ingredients and raw materials accounted for 81.65% of total revenue, with a remarkable growth of 97.14% year-on-year[143]. - The synthetic fragrance segment saw a decline in revenue by 10.54%, contributing 16.36% to total revenue[143]. - The company's international market presence is strong, with 88.83% of revenue generated from overseas sales, a growth of 74.98% year-on-year[145]. Risk Management - The company faces risks from raw material price fluctuations, which could impact profitability, and has implemented measures to mitigate these risks[33]. - Currency exchange rate fluctuations pose a risk to the company's export revenues, which are primarily denominated in USD and EUR, and the company has engaged in forward foreign exchange transactions to manage this risk[34]. - Environmental protection risks are present due to waste emissions during production, and the company must comply with increasingly stringent environmental regulations[34]. - The company has implemented comprehensive safety measures to mitigate risks associated with hazardous chemicals in its production processes[41]. - The company highlighted potential risks and countermeasures in the "Future Development Outlook" section of the management discussion and analysis[57]. Research and Development - Continuous investment in R&D will be prioritized, with a focus on developing new products and processes in the cosmetic raw materials and synthetic fragrance sectors[32]. - The company is investing CNY 50 million in R&D for new technologies aimed at improving product efficacy and sustainability[66]. - The number of R&D personnel increased by 44.68% to 272 from 188 in the previous year[185]. - The company filed 20 new patent applications and obtained 31 patents during the reporting period, including 12 invention patents[157]. - The company is currently in the laboratory research phase for several new products, including enhanced sunscreen agents and physical sunscreen agents[153]. Market Strategy - The company has a clear strategy for future growth, focusing on market expansion and new product development[2]. - The company will increase market development efforts, focusing on collaboration with leading domestic cosmetic companies and exploring feasibility for establishing subsidiaries or warehouses in emerging markets[29]. - The company aims to expand its market presence through strategic partnerships and acquisitions in the chemical industry[63]. - The company is focusing on enhancing the safety of fragrance and flavor technology and prioritizing environmentally friendly production techniques[96]. - The company plans to expand its market presence by improving operational systems and increasing market supply capabilities[112]. Environmental and Social Responsibility - The company is committed to environmental and social responsibility, as outlined in its annual report[58]. - The company has obtained various environmental and safety certifications, ensuring compliance with industry regulations[116]. - The company has implemented advanced pollution treatment systems, including RTO thermal incinerators and wastewater treatment processes, to comply with stricter environmental regulations[121]. - The company has a waste incineration capacity of 5,000 tons/year for hazardous waste, significantly reducing disposal pressure and costs[121]. Future Outlook - The company has set a revenue target of CNY 1.8 billion for 2023, indicating a growth forecast of 20%[66]. - The company plans to utilize raised funds for various projects, including the construction of a daily chemical raw material project and the development of personal care products[193]. - The company aims to expand its market share by continuously exploring overseas markets and enhancing its product offerings[155]. - The company is exploring opportunities for growth in international markets, particularly in Asia and Europe[63].