Securities code: Guizhou Zhenhua E-Chem Inc(688707) securities abbreviation: Guizhou Zhenhua E-Chem Inc(688707) Announcement No.: 2022006 Guizhou Zhenhua E-Chem Inc(688707)
Announcement on 2021 annual profit distribution plan
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 completeness of its contents.
Important content tips:
Distribution ratio per share: cash dividend of RMB 0.25 per share (tax included).
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the total distribution unchanged, adjust the distribution proportion per share accordingly, and make a separate announcement on the specific adjustment.
The proportion of cash dividend in this year is 26.84%, and the main reasons for the proportion of cash dividend in this year is lower than 30% are: (1) the project construction is advancing in an orderly manner, the company has major capital expenditure arrangements and capital investment will continue to be strengthened; (2) With the expansion of business scale, the demand for working capital will continue to grow, and the company needs to invest a large amount of its own working capital to support the development of the company; (3) The company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
1、 Contents of profit distribution plan
According to the audit of zhongtianyun Certified Public Accountants (special general partnership), as of December 31, 2021, the net profit attributable to the parent company of Guizhou Zhenhua E-Chem Inc(688707) (hereinafter referred to as "the company") in 2021 was 41257922786 yuan, and the profit available for distribution at the end of the period was 33888259252 yuan. According to the resolution of the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 2.5 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 442934810 shares. Based on this calculation, the total cash dividend to be distributed is 11073370250 yuan (including tax). The company's cash dividends in this year accounted for 26.84% of the company's net profit attributable to the parent company in 2021. After this profit distribution, the remaining undistributed profits are accumulated and distributed in subsequent years. In 2021, the company did not give bonus shares and did not convert capital reserve into share capital.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan of the company in 2021 needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the net profit attributable to the shareholders of the listed company was 41257922786 yuan, the profit available for distribution at the end of the period was 33888259252 yuan, and the total cash dividend to be distributed by the listed company was 11073370250 yuan, accounting for 26.84% of the net profit attributable to the shareholders of the listed company this year. The specific reasons are as follows:
(I) industry situation and characteristics of the company
Benefiting from the vigorous development of new energy vehicle industry and the rise of energy storage market, the positive material industry of the company is currently in a rapid growth stage.
According to the research data of advanced lithium battery (GGII), the global shipment of ternary cathode materials reached 718000 tons in 2021, with a year-on-year increase of 70.95%, and the compound growth rate from 2017 to 2021 reached 48.66%; In 2021, the shipment of ternary cathode materials in China reached 422000 tons, with a year-on-year increase of 79.57%, and the compound growth rate from 2017 to 2021 was 41.25%. In the future, under the dual guidance of market and policy, the development of China Shanxi Guoxin Energy Corporation Limited(600617) automobile industry chain will be good for a long time. As the core components of new energy vehicles, power batteries and upstream cathode materials are expected to show a rapid growth trend.
(II) development stage of the company and its own business model
The implementation of the national "double carbon" strategy has brought significant development opportunities to the new energy industry and injected new momentum into the development of the company. In 2021, the company's sales revenue exceeded 5 billion yuan for the first time. By the end of 2021, the company had achieved an annual production capacity of 50000 tons of cathode materials. In addition, in 2021, the company successfully landed in the A-share market. With the help of the capital market, the company will get further development. As a member of the new energy industry chain, the company is currently in the stage of rapid development. Adhering to the concept of sustainable development, the company is committed to the vision of becoming a world-class cathode material enterprise, based on the real economy, and strive to contribute to the realization of the "double carbon goal".
(III) profitability and capital demand of the company
During the reporting period, the listed company achieved a profit of 41257922786 yuan, and the company distributed a total cash dividend of 11073370250 yuan in 2021, accounting for 26.84% of the net profit attributable to the shareholders of the parent company in the consolidated statements, which is in line with the relevant policies of the company in the dividend return plan for the next three years after the listing of the company. In recent years, with the rapid growth of the new energy industry, the company's profitability has also continued to grow. In order to achieve the company's strategic objectives, the company needs to continuously increase capital investment in project construction, R & D investment and working capital. (IV) reasons for the low level of cash dividends of the company
The company was successfully listed on the science and Innovation Board of Shanghai Stock Exchange in September 2021. The industry is in a period of rapid growth, and the low level of cash dividend is mainly due to: (1) the project construction is advancing in an orderly manner, the company has major capital expenditure arrangements, and the capital investment will continue to strengthen; (2) With the expansion of business scale, the demand for working capital will continue to grow, and the company needs to invest a large amount of its own working capital to support the development of the company; (3) The company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
For the retained undistributed profits, the company will continue to apply them to the development of its main business, actively promote the implementation of development strategy, support the continuous development of business, further improve the company's profitability, promote the continuous growth of the company's profitability, and strive to make the achievements of the company's development "return to shareholders, benefit employees and contribute to the society".
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 20th meeting of the 5th board of directors on April 7, 2022, deliberated and approved the proposal on the company's profit distribution plan in 2021, and agreed to submit the plan to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
After verification, we believe that the profit distribution plan for 2021 formulated by the company in combination with the actual situation, taking into account the sustainable development of the company and the long-term interests of all shareholders and other factors, complies with the relevant provisions of laws and regulations and the articles of association, and there is no situation that damages the interests of shareholders, especially small and medium-sized shareholders.
We agree to the proposal on the profit distribution plan for 2021 and agree to submit the proposal to the 2021 annual general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
On April 7, 2022, the 13th meeting of the 5th board of supervisors held by the company considered and approved the proposal on the company's profit distribution plan for 2021. The board of supervisors considered that the proposal was in line with the provisions of national laws and regulations and the articles of association, considered the company's future business development and capital needs, was in line with the actual situation of the company, and was conducive to safeguarding shareholders' rights and interests, especially the rights and interests of minority shareholders.
4、 Relevant risk tips
(I) this profit distribution plan fully considers various factors such as the company's current operating status, capital demand and future development, and will not have a significant impact on the company's operating cash flow, normal operation and long-term development.
(II) this profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Guizhou Zhenhua E-Chem Inc(688707) board of directors April 8, 2022
