Securities code: Swancor Advanced Materials Co.Ltd(688585) securities abbreviation: Swancor Advanced Materials Co.Ltd(688585) Announcement No.: 2022010 Swancor Advanced Materials Co.Ltd(688585)
Announcement of annual profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law. Important content tips:
No profit will be distributed this time, and the capital reserve will not be converted into share capital.
The company does not carry out cash dividend this year because it fully takes into account the development of the industry, the current operating performance of the company, the needs of production and operation, the demand for future capital investment and other factors.
The company's 2021 annual profit distribution plan has been deliberated and approved at the 16th meeting of the second board of directors and the 13th meeting of the second board of supervisors, and needs to be submitted to the 2021 annual general meeting for deliberation.
1、 Contents of profit distribution plan
Audited by KPMG Huazhen Certified Public Accountants (special general partnership), the net profit attributable to the shareholders of the listed company of Swancor Advanced Materials Co.Ltd(688585) (hereinafter referred to as "the company") in 2021 was 1257711614 yuan and that of the parent company was 6272800356 yuan.
After comprehensively considering the development of the industry, the company's current operating performance, production and operation needs and the demand for future capital investment and other factors, the company plans not to distribute profits or convert capital reserve into share capital in 2021, and the remaining undistributed profits will be accumulated to the next year.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of no profit distribution in 2021
In 2021, the company plans not to make profit distribution, which fully considers that the company is in the development period, the R & D projects and business scale are expanding, and the capital demand is large. In order to ensure the sustainable development and capital demand of the company, the company plans not to make profit distribution in 2021, nor to convert the capital reserve into share capital, and the remaining undistributed profits will be accumulated to the next year.
(I) industry situation and characteristics of the company
The company focuses on the R & D and production of high-performance industrial anti-corrosion and high-strength lightweight composite resin.
The application fields of vinyl ester resin in China have covered many industries such as chemical industry, metallurgy, food and pharmaceutical, environmental protection, electric power and energy, petroleum, construction, transportation, electronics and electricity, aerospace, medical equipment, sports equipment and so on. The global vinyl ester resin market is expected to continue to grow. The requirements of pipeline, storage tank and chemical industry for excellent heat resistance and corrosion resistance, as well as the increase of infrastructure investment and the repair of old infrastructure projects are the main factors driving the vinyl ester resin market. In addition, in new application fields, the stability of technical level will contribute to the large-scale application of products in relevant industries.
Benefiting from the impact of the global low-carbon transformation trend of new energy, the material market for wind power blades has developed rapidly in recent years, and the demand will continue in the future. At the same time, facing the trend of large blades and lightweight of wind power blades, wind power blade materials will develop in the direction of high performance, high strength and lightweight in the future. The concentration of wind power blade material industry is expected to be further improved due to factors such as capital investment and technology accumulation.
(II) development stage and business model of listed companies
The company's main business is the R & D, production and sales of new material products such as environmental protection, high-performance corrosion-resistant materials, materials for wind power blades and new composite materials. The company's main products include vinyl ester resin, special unsaturated polyester resin, pouring resin for wind power blades, hand paste resin, mold resin, adhesive, pultrusion resin for wind power blade girder, pouring hiver resin for wind power blades and ships, environment-friendly resin, safety materials for rail transit and other application series. It is a leading resin supplier for composite materials in China. Profitability and capital demand of listed companies
The net profit attributable to the parent company for the year is 12572156 yuan, and the net profit attributable to the parent company is 20277156 yuan. At present, the company is in the development stage. The company pays more attention to R & D and innovation, takes into account the production and operation scale and industrial chain layout, and has a large capital demand.
(III) reasons for not paying cash dividends
Fully considering that the company is currently in a period of rapid development and has a large demand for R & D investment and production and operation investment, in order to better safeguard the long-term interests of all shareholders and ensure the sustainable development and capital demand of the company. (IV) the exact purpose of retained undistributed profits of listed companies and expected earnings
The retained undistributed profits of the company will be transferred to the next year for R & D investment and expansion of production capacity to support the necessary operational needs of the company. The income level of the company's undistributed profits is affected by many factors, such as the macroeconomic situation and the level of asset interest rate.
3、 Decision making procedures performed by the company
（1） Convening, deliberation and voting of the board meeting
The company held the 16th meeting of the second board of directors on March 30, 2022, deliberated and passed the proposal on the company's profit distribution plan for 2021, fully considering the industry development, the company's current operating performance, production and operation needs, future capital investment needs and other factors, agreed to the profit distribution plan and agreed to submit the plan to the general meeting of shareholders for deliberation.
（2） Opinions of independent directors
The independent directors believe that the company's profit distribution plan for 2021 is formulated according to the actual situation of the company and meets the needs of the company's long-term development. There is no damage to the interests of the company and its shareholders, especially small and medium-sized shareholders, and there is no obvious unreasonable situation such as large shareholder arbitrage and relevant shareholders' abuse of shareholders' rights and improper intervention in the company's decision-making. The voting procedures of the board of directors of the company when considering the above proposals comply with relevant laws and regulations and the relevant provisions of the articles of association. We agree to the company's profit distribution plan for 2021 and agree to submit the profit distribution plan to the general meeting of shareholders for deliberation.
（3） Opinions of the board of supervisors
The board of supervisors believes that this plan fully considers the operation and financial status of the company, is conducive to the sustainable and stable development of the company, is in line with the interests of the shareholders of the company, and will not damage the interests of the majority of investors of the company. Comply with the company law, the securities law, the accounting standards for business enterprises, the guidelines for the supervision of listed companies No. 3 - cash dividends of listed companies, the articles of association and other relevant provisions. It is agreed to submit the plan to the 2021 annual general meeting of shareholders of the company for deliberation. 4、 Relevant risk tips
(I) this profit distribution plan combines the industry development, the company's current operating performance, production and operation needs, future capital investment needs and other factors, and will not have a significant impact on the company's operating cash flow, nor will it affect the company's normal operation and long-term development.
(II) the profit distribution plan can be implemented only after it is submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval. Please pay attention to investment risks.
It is hereby announced.
Swancor Advanced Materials Co.Ltd(688585) board of directors April 1, 2022
