Financial Performance - Revenue for the year reached RMB 10,645.3 million, an increase of 38.6% compared to RMB 7,679.9 million in the previous year[5] - Gross profit was RMB 2,064.9 million, reflecting a growth of 35.1% from RMB 1,528.5 million[5] - EBITDA increased by 21.6% to RMB 1,192.8 million, up from RMB 980.5 million[5] - Net profit for the year was RMB 307.0 million, a significant rise of 75.0% from RMB 175.4 million[5] - Profit attributable to owners of the company surged by 90.3% to RMB 218.9 million, compared to RMB 115.0 million in the prior year[5] - Basic earnings per share increased by 82.1% to RMB 13.46, while diluted earnings per share rose by 81.9% to RMB 13.37[5] Assets and Liabilities - Total assets grew by 26.2% to RMB 19,802.2 million, up from RMB 15,694.8 million[5] - Total liabilities increased by 50.2% to RMB 12,191.6 million, compared to RMB 8,115.8 million[5] - The debt-to-equity ratio rose to 84.9%, compared to 47.4% in the prior year[5] - The company's debt-to-asset ratio was 28.0% as of December 31, 2021, compared to 22.9% in the previous year[26] Sales and Production - Total sales volume for the company reached 1,077,600 tons, a 22.1% increase year-on-year, with sales of radial tire steel cord rising by 20.4% to 851,400 tons[9][10] - The sales volume of truck radial tire steel cord increased by 15.5% to 504,600 tons, while passenger car radial tire steel cord sales rose by 28.3% to 346,800 tons[10] - The overall annual production capacity for radial tire steel cord increased by 18.0% to 942,000 tons, with Jiangsu and Shandong plants increasing capacity by 14.4% and 29.7%, respectively[11] Market and Economic Context - The Chinese economy grew by 8.1% in 2021, supporting the domestic tire replacement market demand, with the number of vehicles in China increasing by approximately 7.5% to 302 million[8] - In 2021, the sales volume of radial tire steel cord in China increased by 9.7% to 607,000 tons, driven by strong demand, despite a slight decline in the second half due to GDP growth slowdown and power restrictions[11] - The overseas market saw a significant increase of approximately 58.8% in sales volume to 244,400 tons, as tire manufacturers resumed normal production levels after temporary shutdowns in 2020[11] Research and Development - Research and development expenses rose by RMB 30.3 million or 27.9% to RMB 138.8 million, reflecting the company's commitment to enhancing production technology and product diversity[21] - The company has a strong focus on research and development in new technologies related to tire manufacturing[37] Corporate Governance - The company is committed to maintaining high standards of corporate governance, including transparency and accountability[83] - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[85] - The audit committee, remuneration and management development committee, and nomination committee have been established to comply with corporate governance codes[83] Employee Relations - The group employed approximately 7,800 full-time employees, an increase from about 7,100 employees as of December 31, 2020[34] - Employee costs, including directors' remuneration, amounted to RMB 909 million for the year ended December 31, 2021, down from RMB 1,048.7 million in 2020[34] - The group contributed RMB 14.9 million to the labor union for employee benefits, compared to RMB 13.2 million in 2020[34] Environmental Commitment - The company reported that 30% of its sales came from green products and solutions, highlighting its commitment to sustainable development[132] - The company aims to enhance its environmental performance through continuous monitoring and compliance with national standards[150] - The company has committed to four environmental protection pledges, including compliance with environmental laws and continuous improvement of environmental management systems[176] Climate Change Initiatives - The company aims to achieve a clean energy usage ratio of 30% by 2025 and full carbon neutrality by 2050[193] - The company has implemented energy-saving projects, including upgrading to high-efficiency synchronous permanent magnet motors and replacing lighting with energy-efficient LED systems[191] - The company is actively developing low-carbon skeleton materials to improve energy efficiency and reduce climate impact[190] Future Outlook - The group anticipates a cautious optimism for the industry outlook in 2022, despite challenges such as automotive chip shortages and rising raw material costs[36] - The group plans to invest resources to increase production capacity and improve product quality, focusing on high-end product development[36]
兴达国际(01899) - 2021 - 年度财报