Kitech(SZ:300995)2022-04-15 16:00Financial Performance - In 2021, the company's overall operating performance declined significantly compared to the previous year, primarily due to a sharp increase in raw material prices, leading to a decrease in gross profit margin [6]. - The company's operating revenue for 2021 was ¥319,887,134.09, a decrease of 11.32% compared to ¥360,706,196.29 in 2020 [21]. - The net profit attributable to shareholders for 2021 was ¥32,330,476.09, down 61.53% from ¥84,047,062.55 in the previous year [21]. - The net profit after deducting non-recurring gains and losses was ¥26,984,060.24, a decline of 61.99% compared to ¥70,990,533.24 in 2020 [21]. - The net cash flow from operating activities was ¥31,269,026.97, which represents a decrease of 55.55% from ¥70,352,846.82 in the previous year [21]. - Basic earnings per share for 2021 were ¥0.43, down 67.67% from ¥1.33 in 2020 [21]. - The total assets at the end of 2021 were ¥808,293,944.50, an increase of 62.59% from ¥497,151,486.44 at the end of 2020 [21]. - The net assets attributable to shareholders at the end of 2021 were ¥642,449,676.80, up 77.34% from ¥362,273,789.87 at the end of 2020 [21]. - The company reported a weighted average return on equity of 6.09% for 2021, down from 26.24% in 2020 [21]. - The company reported a non-operating income of CNY 5,346,415.85 in 2021, a decrease of 59% from CNY 13,056,529.31 in 2020 [28]. Revenue Growth and Sector Performance - Excluding the protective products sector, the company's operating revenue grew by 29.24% compared to 2020, with specific growth in office furniture (133.50%), electronics and electromechanical products (131.53%), automotive parts (18.26%), and household appliances (17.97%) [6]. - In Q4 2021, the operating revenue was ¥94,287,252.45, with a quarter-on-quarter increase, while net profit decreased due to impairment of protective equipment and litigation compensation [23]. - The automotive parts industry is projected to see a shift towards lightweight materials, with a target of reducing vehicle weight by at least 25% by 2035 [35]. - The demand for high-performance modified nylon and polypropylene in the baby products sector is expected to grow due to new regulations and increasing consumer demand [35]. - The home appliance industry in China achieved a total sales revenue of 760.3 billion yuan in 2021, marking a year-on-year increase of 3.48%, while the revenue of large-scale home appliance enterprises reached 1.7351 trillion yuan, up 15.54% [36]. Cost and Pricing Dynamics - The company's operating costs rose by 7.64% to CNY 238.27 million, driven by increased raw material prices [73]. - The average price of PA6 increased from 10.49 CNY/kg in the first half to 12.02 CNY/kg in the second half, while PA66 rose from 25.02 CNY/kg to 27.70 CNY/kg [60]. - In 2021, the company faced significant increases in raw material prices due to global inflation, with energy procurement costs accounting for over 30% of total production costs [62]. Research and Development - Research and development expenses amounted to CNY 15.44 million, representing 4.83% of operating revenue, a slight increase from 4.76% in the previous year [73]. - The company is actively involved in research and development of new materials and technologies to maintain competitive advantages in the polymer composite market [46]. - The company is developing new products, including biodegradable composite materials with a degradation rate of over 60% within 90 days [90]. - The company has developed several patented technologies, including a high-flow low-extraction anti-static polypropylene composite material, which meets market demands for electronic products [62]. Corporate Governance and Management - The company has established a governance structure that includes a board of directors, supervisory board, and management team to ensure compliance and effective management [177]. - The company has a board of directors consisting of seven members, including three independent directors, ensuring compliance with governance standards [131]. - The company implemented a performance evaluation and incentive mechanism for directors and senior management, combining basic salary with performance-based compensation [132]. - The company has established an independent audit department with 2 auditors to oversee financial management and internal controls [136]. Social Responsibility and Compliance - The company actively participates in community welfare, donating 566,000 CNY to enhance local fire rescue capabilities [195]. - The company supports education initiatives, providing scholarships for employees' children to alleviate financial burdens [195]. - The company has not reported any environmental penalties during the reporting period, indicating compliance with environmental regulations [193]. - The company emphasizes social responsibility, focusing on low-carbon, environmentally friendly, and energy-saving principles to become a well-known materials supplier [193]. Employee and Talent Management - The total number of employees at the end of the reporting period was 376, with 219 in production, 47 in sales, and 57 in technical roles [168]. - The company has established a talent strategy that includes training programs to enhance employee skills and career development, ensuring compliance with labor laws [194]. - The company promotes a culture of collaboration and mutual support among employees, fostering a cohesive and motivated workforce [179]. Financial Management and Cash Flow - The company reported a significant focus on cash management and financial risk mitigation strategies [164]. - The company reported a year-end cash and cash equivalents balance of CNY 82.05 million, a decrease of 34.87% compared to the previous year [74]. - The net increase in cash and cash equivalents was negative at -¥43,928,138.44, indicating cash management issues during the reporting period [93]. - The company has established a specialized account for managing and using raised funds, adhering to regulatory requirements to protect investor interests [184].