JIANGNAN CHEMICAL(002226)2022-03-28 16:00Financial Performance - Revenue in 2021 increased by 65.39% to RMB 6.48 billion compared to the previous year[28] - Net profit attributable to shareholders surged by 135.58% to RMB 1.05 billion in 2021[28] - Operating cash flow decreased by 26.48% to RMB 645.29 million in 2021[28] - Basic earnings per share rose by 135.57% to RMB 0.3974 in 2021[28] - Total assets grew by 5.93% to RMB 15.28 billion at the end of 2021[28] - Non-recurring gains and losses amounted to RMB 511.14 million in 2021, primarily due to government subsidies and asset disposal gains[34] - The company's weighted average return on equity increased to 13.07% in 2021, up from 7.29% in 2020[28] - Fourth-quarter revenue in 2021 was RMB 2.86 billion, the highest among all quarters[33] - Net profit attributable to shareholders in Q4 2021 was RMB 531.20 million, significantly higher than other quarters[33] - Revenue reached 6.481 billion yuan, a year-on-year increase of 65.39%[46] - Net profit attributable to shareholders of the listed company was 1.053 billion yuan, a year-on-year increase of 135.58%[46] - Total assets amounted to 15.285 billion yuan, an increase of 5.93% compared to the beginning of the period[46] - The civil explosives industry accounted for 84.89% of total revenue, with a year-on-year growth of 73.01%[51] - Blasting engineering services revenue reached 3.295 billion yuan, a year-on-year increase of 133.46%[51] - Domestic sales accounted for 94.76% of total revenue, with a year-on-year increase of 56.72%[51] - Direct sales accounted for 93.56% of total revenue, with a year-on-year increase of 71.66%[53] - Civil explosive products revenue reached 1,571,544,635.37 yuan, a year-on-year increase of 14.00%, with a gross margin of 49.52%[54] - Wind power generation revenue was 820,635,385.30 yuan, up 7.12% year-on-year, with a gross margin of 52.13%[54] - Blasting engineering services revenue surged to 3,294,827,900.00 yuan, a 133.46% year-on-year increase, with a gross margin of 25.17%[54] - Domestic revenue accounted for 6,141,438,416.82 yuan, a 56.72% year-on-year increase, with a gross margin of 34.63%[54] - Industrial explosives and products had a licensed capacity of 375,500 tons, with a utilization rate of 95.03%[54] - Industrial detonating cord capacity reached 16 million meters, with a 100.00% utilization rate[54] - Digital electronic detonators had a capacity of 36.7 million units, with a utilization rate of 35.23%[54] - The company's top five customers accounted for 969,317,072.29 yuan in sales, representing 14.96% of total annual sales[70] - The company's top five suppliers accounted for 555,996,672.50 yuan in purchases, representing 15.72% of total annual purchases[70] - The company's sales expenses increased by 42.80% to 103,252,298.46 yuan in 2021, mainly due to expanded consolidation scope[72] - The company's R&D expenses surged by 143.33% to 153,710,214.33 yuan in 2021, reflecting increased investment in technological innovation[72] - Operating cash inflow increased by 56.46% to RMB 5.63 billion in 2021, while operating cash outflow rose by 83.22% to RMB 4.98 billion[76] - Net cash flow from operating activities decreased by 26.48% to RMB 645.29 million in 2021[76] - Net cash flow from investing activities turned positive at RMB 76.20 million in 2021, compared to a negative RMB 199.88 million in 2020[76] - Net cash flow from financing activities improved to a negative RMB 401.37 million in 2021 from a negative RMB 640.65 million in 2020[78] - Cash and cash equivalents increased by 738.35% to RMB 311.67 million in 2021[78] - Asset disposal income reached RMB 340.58 million, accounting for 23.79% of total profit in 2021[81] - Monetary funds increased by 12.32% to 1,883,134,577.20 yuan, accounting for 12.32% of total assets, up by 0.86% compared to the beginning of the year[82] - Accounts receivable increased by 17.78% to 2,717,898,110.74 yuan, accounting for 17.78% of total assets, up by 3.06% compared to the beginning of the year[82] - Fixed assets decreased by 40.78% to 6,233,826,929.20 yuan, accounting for 40.78% of total assets, down by 3.90% compared to the beginning of the year[82] - Short-term borrowings increased by 3.30% to 503,667,197.33 yuan, accounting for 3.30% of total assets, up by 1.46% compared to the beginning of the year[82] - Long-term borrowings increased by 20.21% to 3,089,584,071.31 yuan, accounting for 20.21% of total assets, up by 1.47% compared to the beginning of the year[82] - Trade receivables financing increased by 2.57% to 393,236,243.02 yuan, accounting for 2.57% of total assets, up by 0.59% compared to the beginning of the year[84] - Prepayments increased by 2.79% to 426,022,314.10 yuan, accounting for 2.79% of total assets, up by 1.98% compared to the beginning of the year[84] - Other payables decreased by 2.20% to 335,633,134.91 yuan, accounting for 2.20% of total assets, down by 2.36% compared to the beginning of the year[84] Business Operations and Strategy - The company's main business shifted from solely civil explosives to a dual focus on civil explosives and new energy after a major asset restructuring in 2018[24] - The company's non-operating income from changes in fair value of financial assets and liabilities, and investment income from disposal of financial assets amounted to RMB 95,266,000[36] - The civil explosives industry saw a 1.50% decrease in production and a 1.49% decrease in sales of industrial explosives in 2021, with mixed explosives production increasing by 5.90%[39] - The average price of ammonium nitrate, a key raw material for industrial explosives, rose to RMB 3,283 per ton in Q4 2021, marking a significant increase from the previous quarters[39] - National fixed asset investment (excluding rural households) reached RMB 544,547 billion in 2021, a 4.9% year-on-year increase[39] - China added 47.57 GW of wind power capacity in 2021, with onshore wind accounting for 30.67 GW and offshore wind for 16.90 GW[39] - The national wind power generation reached 652.6 billion kWh in 2021, a 40.5% year-on-year increase, with an average utilization rate of 96.9%[39] - The company plans to focus on safety development, optimize industrial structure, and promote the construction of a modern civil explosives industry chain in response to the "14th Five-Year Plan" for civil explosives industry safety development[39] - The company will enhance cost control and operational efficiency in its new energy projects to mitigate potential adverse impacts on financial performance[41] - The company's civil explosive business covers over ten provinces and regions in China, with a strategic focus on Xinjiang, and has expanded internationally to countries such as Namibia, Congo (DRC), and Mongolia[42] - The company completed a major asset restructuring, with the acquired company, Northern Blasting, expanding its international business to Namibia, Congo (DRC), and Mongolia[42] - The company's new energy subsidiary, DunAn New Energy, has signed wind and solar investment agreements with governments in over 20 provinces and regions in China, with a cumulative installed capacity of 960 MW and 100 MW under construction by the end of 2021[42][44] - DunAn New Energy has established a comprehensive new energy management information platform, leveraging big data analysis to improve operational efficiency and power generation efficiency[42] - The company's engineering service revenue reached 3,294,827,900 yuan in 2021, a year-on-year increase of 133.46%[44] - The company has obtained 1 construction method from the China Blasting Association and led the drafting of the industry standard for smooth blasting engineering construction organization design[44] - The company has achieved key breakthroughs in the "underground tunnel charging vehicle" project, realizing mechanized charging in underground environments and reducing personnel on-site[44] - The company has established a comprehensive safety management system and is recognized as a national safety culture construction demonstration enterprise[44] - The company has strengthened its cost control strategy, optimizing resource allocation and improving operational capabilities[44] - The company has expanded its overseas development platform through the acquisition of Northern Blasting, gaining access to mature international blasting service projects and a professional overseas team[44] - The company completed the acquisition of Northern Blasting, Guangxi Jinhua, and Qinghua Automotive, enhancing its market expansion and risk resistance[46] - The new energy sector achieved a cumulative grid-connected power generation of 1.973 billion kWh, a year-on-year increase of 9.93%[50] - The company invested 627.9 million yuan in the construction of the 100MW wind power project in Gansu Guazhou[50] - The company operates 10 hazardous goods transportation subsidiaries, with a total of 172 specialized vehicles in Xinjiang Tianhe Transportation Co., Ltd.[56] - The company upgraded its mining engineering construction qualification to Level 2, effective until January 24, 2026[56] - The company achieved zero serious production safety accidents in 2021, maintaining a stable safety record[58] - The company completed 15 safety technology transformation projects in 2021, enhancing the intelligent and intrinsic safety levels of production lines[60] - The company's overseas projects in Congo (DRC), Namibia, and Mongolia operated smoothly, with no significant changes in local policies[61] - The company's raw material costs for hazardous production in 2021 were 637,557,670.17 yuan, accounting for 15.08% of operating costs, a 15.09% increase year-over-year[66] - The company completed the acquisition of 100% equity in Northern Blasting Technology Co., Ltd. and other related entities, with new shares listed on September 30, 2021[67] - The company's subsidiary, Fujian Zhangzhou Jiuyijiu Chemical Co., Ltd., acquired a 51% stake in Fujian Huafei Blasting Engineering Co., Ltd. in July 2021[69] - The company invested 157,501,331.20 yuan during the reporting period, a significant increase of 12,595.32% compared to the same period last year[88] - The company acquired Beibao Technology for 823,810,633.20 yuan, holding 100.00% of the shares, with the investment funded through the issuance of shares[88] - The company acquired Guangxi Jinhua for RMB 2.834 billion, accounting for 90% of the total transaction[90] - The acquisition of Qinghua Automobile was completed for RMB 319.45 million, representing 65% of the total transaction[90] - The company acquired Northern Mining Investment for RMB 300.05 million, accounting for 49% of the total transaction[94] - The acquisition of Northern Mining Services was completed for RMB 8.234 million, representing 49% of the total transaction[94] - The company's initial investment in Xuefeng Technology was RMB 208 million, with a fair value change of RMB 95.266 million during the reporting period[99] - The total fair value of the company's investment in Xuefeng Technology at the end of the reporting period was RMB 291.183 million[99] - The company raised RMB 9.545 billion through a non-public stock issuance in September 2016, with RMB 5.344 million used in the current period[101] - The cumulative amount of raised funds used by the company reached RMB 9.607 billion, with 72.46% of the funds having changed their intended use[101] - The company's total investment in securities amounted to RMB 208 million, with a fair value change of RMB 95.266 million during the reporting period[99] - The company's total fair value of securities at the end of the reporting period was RMB 291.183 million[99] - Total raised funds from the non-public issuance amounted to RMB 976.8 million, with net proceeds of RMB 954.54 million after deducting issuance costs of RMB 22.26 million[103] - Cumulative use of raised funds reached RMB 960.74 million by the end of 2021, with the raised funds account fully closed[103] - The "Mining Engineering General Contracting and Mine Ecological Restoration Project" by Anhui Jiangnan Blasting Engineering Co., Ltd. achieved 100% investment progress with RMB 222.719 million invested[104] - The "Mine Blasting Engineering Integration Project" by Xinjiang Tianhe Blasting Engineering Co., Ltd. also achieved 100% investment progress with RMB 284.45 million invested[104] - The "Smart Factory Project for Civil Explosives" reached 57.28% investment progress with RMB 293.92 million invested, falling short of the planned schedule due to policy-related relocation[107] - The "Dangerous Chemical Logistics Transportation Capacity Expansion Project" by Xinjiang Tianhe Transportation Co., Ltd. achieved 44.22% investment progress with RMB 126.458 million invested, delayed due to slow progress in related ground station construction[107] - The "Intelligent Production Line Technical Transformation Project" at Xinjiang Tianhe Chemical Co., Ltd. achieved 71.88% investment progress with RMB 273.541 million invested[107] - The "Ganquanbao Sand and Gravel Aggregate Field Construction Project" in Urumqi Midong District exceeded the planned investment by 0.14%, with RMB 1.51209 billion invested[107] - The "Digital Civil Explosives Industry Chain Project" achieved 100% investment progress with RMB 246.875 million invested[107] - The "Supplementary Working Capital" project achieved 100% investment progress with RMB 496.308 million invested[107] - The completion time of the company's hazardous chemical logistics transportation capacity expansion project was delayed from June 2019 to October 2020, and the project was completed by the end of 2020[109] - The intelligent production line technical transformation project of Xinjiang Tianhe Chemical Co., Ltd. was delayed from March 2020 to December 2020 due to climate and COVID-19 impacts, and was completed by the end of 2020[109] - The Ningguo branch's second-phase demonstration project of unmanned powdered emulsion explosive production line did not meet profit expectations due to market factors, product price adjustments, and increased production costs from rising ammonium nitrate prices[109] - The intelligent factory construction project of Anhui Hengyuan Jiyan Chemical Co., Ltd. did not meet profit expectations due to increased production costs from rising ammonium nitrate prices[109] - The Ganquanbao sand and gravel aggregate field construction project in Midong District, Urumqi, did not meet profit expectations due to incomplete capacity release and lower-than-expected product sales[109] - The company terminated several fundraising projects in 2019, including mining engineering and ecological restoration projects, and used the remaining funds to permanently supplement working capital[109] - The company used 40,000 million yuan of idle fundraising funds to temporarily supplement working capital in 2018, with the funds fully returned by May 2019[111] - The company used 40,000 million yuan of idle fundraising funds to temporarily supplement working capital in 2019, with 2,860 million yuan returned by October 2019[111] - The "Civil Explosives Smart Factory Project" was completed with a surplus of 24.63 million yuan, partly due to optimized storage and logistics efficiency[111] - The hazardous chemical logistics transportation capacity expansion project of Xinjiang Tianhe Transportation Co., Ltd. was completed with a surplus of 16.33 million yuan, as the existing transportation capacity met daily production needs[111] - The "Wulumuqi Midong District Ganquanbao Sand and Gravel Aggregate Field Construction Project" has been completed, with a remaining raised fund (including interest) of 0.57 million yuan, mainly due to interest from the raised fund account[113] - The total interest from the raised fund account is 74.40 million yuan, primarily generated from the net amount of the 2016 private placement raised funds deposited in the company's Hangzhou Bank Hefei Branch account[113] - The "Ningguo Branch Unmanned Powder Emulsion Explosive Production Line Phase II Demonstration Project" has been completed, with a remaining raised fund (including interest) of 1,692.35 million yuan, saved through various cost-saving measures[113] - The "Anhui Hengyuan Jiyan Chemical Co., Ltd. Intelligent Factory Construction Project" has been completed, with a remaining raised fund (including interest) of 1,770.97 million yuan, saved through process optimization and equipment reuse[113] - The company will focus on extending the industrial chain by developing integrated service models in core markets such as Xinjiang and Anhui, including production, sales, distribution, and blasting services[139] - The company is advancing the construction of its civil explosive technology innovation center, conducting research on underground mixing truck systems, intelligent storage systems, and industrial explosive production line monitoring systems[141] - The company plans to strengthen safety management by increasing safety technology upgrades and investments, and enhancing safety and environmental management teams[141] - The company aims to optimize state-owned property rights by gradually improving the equity structure of subsidiaries and strengthening the control and management efficiency of state-owned property[141] - The company faces safety risks due to the inherent characteristics of civil explosive products,