XINGYE TECH.(002674)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,726,346,976.76, an increase of 18.21% compared to ¥1,460,440,505.08 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥181,310,919.79, representing a growth of 56.93% from ¥115,537,730.38 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥169,426,359.26, up 65.37% from ¥102,451,065.20 in 2020[20]. - The basic earnings per share for 2021 was ¥0.6212, a 58.87% increase from ¥0.3910 in 2020[20]. - The company's total assets at the end of 2021 were ¥3,307,169,863.45, a 7.06% increase from ¥3,089,073,627.58 at the end of 2020[21]. - The net assets attributable to shareholders increased by 7.86% to ¥2,300,125,427.67 at the end of 2021 from ¥2,132,531,117.02 at the end of 2020[21]. - The company reported a net cash flow from operating activities of ¥134,810,041.01, a decrease of 24.79% from ¥179,252,491.64 in 2020[20]. - The company reported a net profit of CNY 190,130,456.47 for the year 2021, with a distributable profit of CNY 544,170,913.12[196]. - The cash dividend proposed is CNY 87,558,883.20, which represents 100% of the total distributable profit[193]. - The company has a total of 291,862,944 shares, proposing a cash dividend of CNY 3.00 per 10 shares (including tax)[196]. Production and Capacity - The company has a production capacity of nearly 150 million square feet of cowhide leather annually, serving high-end domestic and international brands[33]. - The company has the capacity to produce nearly 1.5 million square feet of top-grain leather annually, benefiting from large-scale raw material procurement and strong bargaining power with suppliers[39]. - The company has an annual processing capacity of 3.2 million raw hides, ensuring compliance with environmental regulations and maintaining production capacity[42]. - The company's total production capacity remained at 14,720,000 square feet, with a capacity utilization rate of 70.53%, up from 66.27% in the previous year[79]. - The company sold 10,527.28 million square feet of top-grain leather, marking a 13.46% increase in sales volume year-on-year[62]. Research and Development - The company has established a dual R&D system, with a national-level technology center and product development teams in each division, focusing on innovative leather processing technologies and market trends[43]. - The company has received 94 authorized patents, including 67 invention patents, and has participated in the formulation of over 14 national and industry standards[44]. - Research and development expenses increased by 18.64% year-on-year, amounting to 50,030,602.28 CNY[72]. - The company completed the development of six new product projects, including high-end eco-friendly leather, which aims to enhance product quality and market competitiveness[92]. - The number of R&D personnel increased by 10.93% from 183 to 203, with R&D personnel now constituting 11.00% of the total workforce[94]. - The company introduced and developed 10 new technologies and materials, completing 6 projects aimed at improving clean production and green manufacturing levels[93]. Market and Sales - The company expanded its market channels by integrating online sales and live streaming, enhancing customer service and product development[51]. - The company's export sales reached 223 million yuan, with a year-on-year increase of 106.62% due to the return of orders from Southeast Asia[54]. - The revenue from the Guangdong region was 507 million yuan, showing a growth of 17.27% compared to the previous year[58]. - The gross profit margin for the leather industry was 25.29%, which increased by 5.68 percentage points compared to the previous year[60]. - The gross profit margin for direct sales was 25.44%, while for distribution sales it was 23.12%, showing an increase of 5.77 percentage points and 5.89 percentage points respectively compared to the previous year[84]. Environmental and Compliance - The company emphasizes environmental protection, implementing advanced wastewater treatment solutions and achieving compliance with local environmental standards[41]. - The natural leather industry aligns with national environmental policies, promoting circular economy development and addressing environmental issues[127]. - The company faces risks from stricter environmental regulations that may increase operational costs due to the need for enhanced pollution control measures[134]. Governance and Management - The company has a total of 7 board members, with 3 independent directors, ensuring compliance with governance standards[148]. - The company has implemented a robust internal audit system to oversee daily operations effectively[151]. - The company has established various specialized committees within the board to enhance governance and operational efficiency[148]. - The company has not reported any changes in the number of shares held by independent directors during the reporting period[170]. - The company has a strong leadership team with extensive experience in the leather industry, including the president, Sun Huiyong, who has over 20 years of management experience[168]. Financial Strategy and Investments - The company has not engaged in any significant asset or equity sales during the reporting period, indicating a stable asset base[121]. - The company has not utilized any fundraising during the reporting period, indicating a self-sustaining financial strategy[120]. - The company has invested 180 billion Indonesian Rupiah, equivalent to approximately 8,070,897.02 RMB, in its wholly-owned subsidiary, indicating ongoing investment in international markets[114]. - The total amount of financial liabilities reported was 0.00, suggesting no outstanding debts at the end of the reporting period[109]. Risks and Challenges - The fluctuation of raw material prices, particularly cowhide, poses a significant risk to the company's profitability[136]. - The company is exposed to exchange rate risks due to its reliance on imported raw materials, primarily settled in foreign currencies[137]. - Changes in fashion trends may reduce the demand for natural leather in footwear, prompting the company to diversify into bag and furniture leather markets[140]. - The impact of COVID-19 has led to a decline in global economic activity, affecting sales of leather products such as shoes and bags[142].