Shanghai Baolijia Chemical (301037)2023-04-26 16:00Financial Performance - In 2022, the company's net profit significantly decreased compared to 2021 due to fluctuations in raw material prices, despite an increase in operating revenue and product sales[4]. - The company's operating revenue for 2022 was ¥3,162,880,650.02, an increase of 6.32% compared to ¥2,974,838,701.52 in 2021[28]. - The net profit attributable to shareholders decreased by 88.63% to ¥5,737,154.48 from ¥50,451,374.64 in the previous year[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,633,095.57, down 82.12% from ¥42,701,730.12 in 2021[28]. - Basic and diluted earnings per share fell by 91.26% to ¥0.0573 from ¥0.6555 in 2021[28]. - The gross margin declined as the increase in unit costs outpaced the rise in product prices during the first half of 2022[4]. - The company reported a quarterly revenue of ¥614,216,268.51 in Q4 2022, down from ¥907,865,506.80 in Q3 2022[30]. - The net profit attributable to shareholders in Q3 2022 was -¥22,635,586.21, indicating a significant loss compared to profits in the first two quarters[30]. - The company received government subsidies amounting to ¥4,459,692.87 in 2022, down from ¥9,873,528.17 in 2021[34]. Operational Strategy - The company plans to control inventory effectively and increase the proportion of current production and sales[6]. - The company aims to enhance internal management efficiency and optimize existing product technology to reduce costs and increase efficiency[6]. - The company will increase R&D efforts to promote high value-added products, aiming to improve overall gross margin[6]. - The company is focusing on developing special coatings, including elastic and high-gloss coatings, leveraging the synergy between acrylic emulsions and thickeners[41]. - The company plans to enhance its service capabilities for premium clients by offering personalized solutions, responding to the increasing market concentration[55]. - The company aims to expand its business in textile and packaging emulsions while maintaining stability in its main products related to construction and waterproofing[55]. - The company is actively expanding its market presence and enhancing its product structure to improve operational efficiency and sustainability[72]. Market and Industry Insights - The main business of the company is the research, production, and sales of water-based acrylic emulsions, classified under the chemical raw materials and chemical products manufacturing industry[39]. - The company anticipates continued growth in demand for water-based acrylic emulsions in various sectors, including construction and industrial coatings, due to increasing environmental awareness[41]. - The procurement cost of raw materials, including butyl acrylate and styrene, accounts for about 60%-65% of the overall cost of acrylic emulsions, significantly impacting the company's gross margin and profitability[43]. - The prices of key raw materials such as butyl acrylate and styrene experienced significant fluctuations in 2022 due to geopolitical conflicts and monetary policy changes, affecting the overall profitability of the industry[45]. - The company is expanding its applications of acrylic emulsions into emerging fields such as printing, logistics, detergents, cosmetics, and pharmaceuticals, driven by its non-toxic and environmentally friendly characteristics[41]. - The company achieved a production capacity of 507,100 tons in 2022, positioning it as a leading player in the water-based acrylic emulsion industry[53]. Research and Development - The company has established independent research institutes in Shanghai and Beijing to strengthen its R&D capabilities and improve product offerings[52]. - The company has developed multiple patented technologies, including a low formaldehyde, no formaldehyde textile emulsion[58]. - The company is in the mass production stage for its functional emulsions and textile emulsions[58]. - The company is committed to quality control and market share expansion in the textile industry[58]. - The company is focusing on developing high-performance products such as waterproof emulsions and low surface energy adhesives to enhance market competitiveness[94]. - The company has allocated a budget of 100 million RMB for research and development of new technologies in 2023[171]. Risk Management - The company acknowledges various risks, including safety and environmental risks, raw material price volatility, and accounts receivable risks[6]. - The company focuses on risk management by conducting regular risk identification activities and optimizing production processes to enhance safety and efficiency[75]. - To mitigate raw material price fluctuation risks, the company plans to optimize procurement costs and stockpile materials when prices are favorable[139]. - The company is enhancing cash flow management to address liquidity risks, including measures to improve accounts receivable collection and reduce reliance on commercial acceptance bills[141]. Governance and Compliance - The company has a governance structure in place with independent directors and a supervisory board, ensuring compliance with regulations[166]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with governance standards[149]. - The company has established and strictly implements the "Information Disclosure Management Measures" to ensure the accuracy and timeliness of information disclosure[153]. - The company respects and maintains the legitimate rights and interests of stakeholders, achieving a balance among social, shareholder, company, and employee interests[154]. - The company has not reported any penalties from regulatory agencies for its directors and supervisors in the past three years[178]. Employee and Compensation - The total number of employees at the end of the reporting period was 640, with 66 in the parent company and 574 in major subsidiaries[194]. - The company implemented a performance-based compensation system to enhance employee productivity and align with corporate goals[195]. - The total remuneration for directors, supervisors, and senior management in 2022 amounted to 8.4409 million yuan[182]. - The average remuneration for senior management was approximately 0.73 million yuan[182]. - The company emphasizes attracting and retaining talent, particularly in technical roles, through competitive benefits[195]. Future Outlook - The company plans to continue expanding its production capacity in the chemical sector to meet growing market demand[112]. - The company aims to enhance profitability and optimize capacity layout, focusing on inventory management and increasing the proportion of current production and sales[133]. - The company has set a performance guidance for the upcoming fiscal year, aiming for a revenue growth of approximately 10%[166]. - The company anticipates a revenue growth target of 15% for the next fiscal year, driven by increased demand in the chemical sector[171].