SINO-HIGH(SZ:301076)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was ¥342,031,413.67, representing an increase of 18.80% compared to ¥287,902,279.19 in 2020[17]. - The net profit attributable to shareholders for 2021 was ¥66,294,263.47, a decrease of 7.25% from ¥71,478,301.56 in 2020[17]. - The net profit after deducting non-recurring gains and losses was ¥61,084,689.62, down 9.43% from ¥67,447,666.70 in 2020[17]. - The company's total assets increased by 133.30% to ¥1,093,960,706.38 at the end of 2021, compared to ¥468,899,974.12 at the end of 2020[17]. - The net assets attributable to shareholders rose by 159.17% to ¥1,013,272,465.60 at the end of 2021, up from ¥390,974,847.75 at the end of 2020[17]. - The basic earnings per share for 2021 was ¥1.03, a decrease of 14.17% from ¥1.20 in 2020[17]. - The weighted average return on equity for 2021 was 11.77%, down from 20.17% in 2020, indicating a decline of 8.40%[17]. - The company reported a net cash flow from operating activities of ¥75,560,864.86, an increase of 4.05% from ¥72,622,855.19 in 2020[17]. - In 2021, the company achieved a total revenue of 342.03 million yuan, representing an 18.80% increase compared to the previous year[72]. - The company's operating costs for 2021 were 232.56 million yuan, an increase of 38.06% year-on-year, primarily due to increased sales volume and rising raw material prices[72]. - The net profit for 2021 was 66.29 million yuan, a decrease of 7.25% compared to the previous year, although the decline showed improvement compared to the first three quarters of 2021[72]. Market Position and Strategy - The company is positioned to benefit from national policies supporting the PEEK industry, with increasing demand from emerging markets like China and India[29]. - The company has established long-term partnerships with major global PEEK manufacturers, enhancing its market competitiveness and bargaining power[32]. - The company has developed high-tech products like ITF, which reduce volatile emissions and expand applications in food packaging[39]. - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[153]. - Jiangsu Xinhang aims to leverage its experienced management team, which includes professionals with extensive backgrounds in chemical engineering and production management, to drive future growth[154]. - The company plans to explore potential mergers and acquisitions to further enhance its market position and expand its product portfolio[153]. - Jiangsu Xinhang's strategic focus includes the development of new technologies to meet evolving market demands and customer needs[153]. - The company is actively monitoring market trends to identify opportunities for growth and expansion in both domestic and international markets[156]. Research and Development - The company has established a strong independent R&D system and collaborates with top universities and research institutions, enhancing its continuous innovation capabilities[55]. - The company has increased its R&D investment to enhance existing product processes and develop new products with market potential[117]. - The company is currently in the small trial stage for several R&D projects aimed at developing new products and improving environmental sustainability[86]. - The company has allocated 100 million yuan for R&D in advanced materials technology, aiming to enhance product performance and sustainability[162]. Risk Management - The company highlighted risks including uncertainties from the COVID-19 pandemic, fluctuations in gross margin, and potential delays in new projects generating benefits[4]. - The company has acknowledged the need for investors to be aware of the differences between plans, forecasts, and commitments, highlighting the importance of risk awareness[4]. - The company has implemented a comprehensive risk management strategy to address uncertainties related to the COVID-19 pandemic and market competition[124]. - The company has a clear risk assessment strategy to identify and manage potential internal and external risks[193]. Corporate Governance - The company held seven board meetings during the reporting period, adhering strictly to relevant laws and regulations[134]. - The company conducted five supervisory board meetings, ensuring compliance and protecting the rights of shareholders[135]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, organization, and business operations[139]. - The company has established an independent financial accounting system and does not share bank accounts with its controlling shareholder[142]. - The company has established a transparent information disclosure system, ensuring equal access to information for all shareholders[137]. - The board of directors is responsible for information disclosure, with the chairman being the primary responsible person[198]. Production and Operations - The company has a designed capacity of 8,000 tons per year for aromatic ketone products, with an actual utilization rate of 105.1%[62]. - The company has developed proprietary technologies and holds 9 patents, including 4 invention patents, enhancing its competitive edge in the aromatic ketone sector[62]. - The company has a flexible production arrangement that allows it to adapt to customer orders and reduce dependency on specific downstream industries[68]. - The company maintains a quality management system throughout the production process, with multiple inspections of raw materials and finished products to ensure high quality[58]. - The company has implemented various internal control measures across procurement, production, sales, and financial management to enhance operational efficiency[197]. Employee Management - The company has a total of 256 employees, with 181 in production roles and 35 in technical positions[180]. - The educational background of employees includes 2 with master's degrees, 29 with bachelor's degrees, and 41 with associate degrees[181]. - The company has established a comprehensive and fair compensation management system to align employee interests with corporate goals[182]. - Training programs are in place to enhance employee skills and improve overall productivity, including a system for cultivating university graduates[183]. Financial Management - The company has a total of CNY 30,842,040 in unused raised funds, which are stored in a dedicated account for cash management[105]. - The company has implemented a cash management plan using idle funds for investment projects[177]. - The company plans to utilize part of the idle raised funds and self-owned funds for cash management[150]. - The company has a remaining balance of CNY 2,988.37 million in its fundraising account, with CNY 28,000 million temporarily idle for cash management[109]. Profit Distribution - The company reported a profit distribution plan of 5.00 RMB per 10 shares (including tax) and a capital reserve increase of 3 shares for every 10 shares held[4]. - The company plans to distribute a cash dividend of 5 RMB per 10 shares, totaling 39,800,000 RMB, which represents 100% of the distributable profit[185]. - The distributable profit for the year is reported at 273,025,732.02 RMB, with no other forms of cash distribution[185].