Work report of the board of directors in 2021
2021 is the first year of the 14th five year plan. In the face of the repeated impact of covid-19 epidemic and the complex and changeable economic situation, the company has overcome the impact of multiple adverse factors such as the sharp rise in the price of bulk raw materials, dual control of energy consumption and export restrictions, actively taken effective measures, paid close attention to epidemic prevention and control and production and operation, actively responded to the great changes in the market, seized the development opportunities of the industry, and comprehensively launched transformation and upgrading. The company’s business situation has been fundamentally improved, The withdrawal of other risk warnings for stocks has laid a solid foundation for the sustainable development of the company.
During the reporting period, the board of directors of the company strictly complied with laws and regulations, self regulatory rules of Shenzhen Stock Exchange and relevant provisions of the articles of association, earnestly performed various duties of the board of directors, strictly implemented various resolutions of the general meeting of shareholders, and all directors performed their duties faithfully and diligently, effectively protecting the interests of the company and all shareholders.
1、 Main operations in 2021
(I) main business indicators
During the reporting period, the prosperity of chemical and chemical fertilizer industries continued to improve, and the market price of leading products rose sharply. The company achieved an operating revenue of 1854406213424 yuan, a year-on-year increase of 34.33%; The total profit was 224381866122 yuan, a year-on-year increase of 844.01%; The net profit attributable to the shareholders of the listed company was 156902623642 yuan, a year-on-year increase of 125501%.
During the reporting period, the output of urea products was 1.4896 million tons and the sales volume was 1.4844 million tons; The output of PVC products is 755300 tons and the sales volume is 801700 tons; The output of diammonium phosphate is 1427100 tons and the sales volume is 1322100 tons.
(II) production and operation
1. Seize opportunities, strengthen and supplement the chain, and promote industrial upgrading
(1) Consolidate the basic chemical industry chain, and the key technical transformation projects are put into operation smoothly and effective. In response to the national energy conservation and emission reduction policy, the company continued to further promote energy management, focused on the key links of energy conservation and consumption reduction, and carried out the technical transformation project of new lithium bromide units of insurance powder, so as to achieve a significant reduction in power consumption. All departments of the company are closely linked and carefully operated. The upgrading and expansion project of PVC and caustic soda in Yihua, Inner Mongolia and the reconstruction project of calcium carbide furnace in Yihua, Qinghai have been successfully completed and increased production and efficiency.
(2) Extend the fine chemical industry chain, and key investment projects are put into operation or started in turn. The annual output of 20000 t / a trimethylolpropane (TMP) and its supporting device project were completed and put into operation in the first half of the year, which enhanced the company’s competitiveness in the field of polyols; The construction of new biodegradable materials (PBAT) with an annual output of 60000 tons / year has been rapidly promoted, and the market prospect is expected to be broad in the future; The TPO project with an annual output of 1000 tons / year, in which the company holds 34% shares, was put into operation as scheduled, the green environmental protection material industry achieved a good start, and the company’s comprehensive competitiveness in the field of fine chemicals was further strengthened.
(3) Expand the phosphorus chemical industry chain and join hands with Ningbo Bangpu to seize the new energy track.
Relying on its own phosphorus chemical business and resource advantages and basic chemical supporting capacity, the company actively joins hands with the leading enterprises in the new energy industry chain, and jointly establishes Yichang Bangpu Yihua new materials Co., Ltd. with Contemporary Amperex Technology Co.Limited(300750) subsidiary to build an integrated battery material supporting chemical raw material project, seize the development opportunities of new energy market, optimize and upgrade the layout of phosphorus chemical industry chain, and improve the company’s market competitiveness and sustainable profitability.
2. Focus on the main business, peel off the auxiliary business and improve the operating results
(1) On the one hand, focusing on the opportunity of the national chemical fertilizer production and operation, the company will actively adjust the production strategy and ensure the stable operation of the main chemical fertilizer industry. On the one hand, the company will actively respond to the opportunity, ensure the stable operation of the main chemical fertilizer industry in the reporting period, and strengthen the production and management of chemical fertilizer products in a timely manner.
(2) In order to optimize the industrial layout, the company accelerated the disposal of assets and transferred 18.5% of the equity of Leibo Huarui Mining Co., Ltd. by means of public listing. Divest inefficient assets, reduce asset losses, and transfer the equity of Hunan Yihua to Yihua group; Xiangxi chemical applied for bankruptcy liquidation to reduce the operating burden of the company.
3. Consolidate the foundation, technological progress and promote the development of enterprises
During the reporting period, the company comprehensively promoted technological progress, made major breakthroughs in tackling key problems in the chromaticity of trimethylolpropane, successfully produced pentaerythritol micro powder products, significantly improved the phosphorus yield of phosphorus compound fertilizer, and completed small-scale trials of calcium carbide pentaerythritol, TMP and neopentyl glycol. In the whole year, 34 patents were authorized. The new green manufacturing technology of acetylene hydrochlorination homogeneous complex catalyst cooperated by Wanshan Yinhe and Guizhou University won the first prize of technical invention awarded by Guizhou Provincial People’s Government in 2021. The wet process phosphoric acid and high-value utilization and engineering application project of companion resources cooperated by Yihua fertilizer industry and Wuhan University of Engineering won the first prize of technical invention awarded by Hubei Provincial People’s Government in 2021. Yihua fertilizer, Wanshan Yinhe, Qinghai Yihua, Xinjiang Tianyun, Inner Mongolia Yihua and Shengke environmental protection have successfully passed the application and review of high-tech enterprises.
4. Stick to the bottom line, safety and environmental protection, and ensure continuous control
The company earnestly implements the safety production policy of “safety first, prevention first and comprehensive treatment”, takes legal compliance as the bottom line of safety production and environmental protection, pays attention to the “three Simultaneities” of new project construction, and re issues the expired safety production license and pollutant discharge license; Promote professional safety and environmental protection management and further deepen the interview mechanism; Increase investment in safety and environmental protection rectification, do a good job in risk hierarchical control and hidden danger investigation and treatment through risk identification and analysis, eliminate hidden dangers of safety and environmental protection, and ensure production safety and environmental risks are controllable; The level of environmental protection management has been continuously improved, the environmental housekeeper has played an active role, and the online monitoring platform has been put into operation; Give full play to the role of safety committee, environmental protection committee and special committee, strengthen the evaluation and implementation of all staff safety production responsibility system, and realize the overall control of safety and environmental protection.
2、 Main business
During the reporting period, the overall structure of the company’s business has not changed significantly. The composition of main business in 2021 is as follows:
Unit: Yuan
Product name operating revenue operating cost gross profit margin operating revenue over operating cost over gross profit margin over the same period of last year
Urea 316453855363205986128155 34.91% 65.60% 26.48% 20.13%
Fine chemical products 192880256455152679408178 20.84% 166.09% 136.35% 9.96%
PVC 624302431951506599340939 18.85% 39.91% 24.71% 9.89%
Diammonium phosphate 428089568918306306373792 28.45% – 6.41% – 28.25% 19.19%
3、 Board meetings
In 2021, the board of directors of the company held 14 meetings by means of communication voting, as follows:
1. On February 25, 2021, the 38th meeting of the ninth board of directors of the company was held by means of communication voting. The proposal on investing in the construction of biodegradable new materials project, the proposal on changing some senior managers and the proposal on convening the first extraordinary general meeting of shareholders in 2021 were considered and adopted.
2. On April 13, 2021, the 39th meeting of the ninth board of directors of the company was held by means of communication voting, and the proposal on external guarantee and the proposal on convening the second extraordinary general meeting of shareholders in 2021 were deliberated and adopted.
3. On April 28, 2021, the 40th meeting of the ninth board of directors of the company was held by means of communication voting, which deliberated and adopted the 2020 annual report and summary, the 2020 work report of the board of directors, the 2020 internal control self-evaluation report, the risk assessment report on Hubei Yihua Chemical Industry Co.Ltd(000422) Group Finance Co., Ltd., the 2020 profit distribution and capital reserve conversion to share capital plan Proposal on prediction of daily connected transactions in 2021, proposal on renewing the appointment of accounting firm, proposal on convening the 2020 annual general meeting of shareholders, report of the first quarter of 2021, proposal on external guarantee, proposal on applying for cancellation of other risk warnings of the company’s stock transactions.
4. On June 23, 2021, the 41st meeting of the ninth board of directors of the company was held by means of communication voting, which deliberated and adopted the proposal on the proposed public transfer of 18.5% equity of Leibo Huarui Mining Co., Ltd., the proposal on capital increase to joint-stock subsidiaries, the proposal on external guarantee, the proposal on capital increase to wholly-owned subsidiaries by means of debt to equity swap Measures for the administration of information disclosure of debt financing instruments, proposal on the appointment of securities affairs representatives, proposal on the convening of the third extraordinary general meeting of shareholders in 2021.
5. On August 13, 2021, the 42nd meeting of the ninth board of directors of the company was held by means of communication voting, which deliberated and adopted the 2021 semi annual report, the summary of 2021 semi annual report and the risk assessment report on Hubei Yihua Chemical Industry Co.Ltd(000422) Group Finance Co., Ltd. 6. On August 17, 2021, the 43rd meeting of the ninth board of directors of the company was held by means of communication voting, and the proposal on related party transaction of agreed transfer of equity of Hunan Yihua Chemical Co., Ltd. was considered and adopted.
7. On August 20, 2021, the 44th meeting of the ninth board of directors of the company was held by means of communication voting, and the proposal on related party transactions for capital increase to participating subsidiaries was deliberated and adopted. 8. On September 24, 2021, the 45th meeting of the ninth board of directors of the company was held by means of communication voting. The proposal on financial leasing of the subsidiary Inner Mongolia Yihua Chemical Co., Ltd., the proposal on external guarantee, the proposal on the proposed application for bankruptcy liquidation of the subsidiary and the proposal on convening the fourth extraordinary general meeting of shareholders in 2021 were considered and adopted.
9. On October 27, 2021, the 46th meeting of the ninth board of directors of the company was held by means of communication voting, and the proposal on external guarantee and the proposal on convening the fifth extraordinary general meeting of shareholders in 2021 were deliberated and adopted.
10. On October 29, 2021, the 47th meeting of the ninth board of directors of the company was held by means of communication voting, and the report of the third quarter of 2021 was reviewed and adopted.
11. On November 19, 2021, the 48th meeting of the ninth board of directors of the company was held by means of communication voting, and the proposal on planning to participate in the bidding of land use right was deliberated and adopted.
12. On November 24, 2021, the 49th meeting of the ninth board of directors of the company was held by means of communication voting, and the proposal on foreign investment was deliberated and adopted.
13. On December 6, 2021, the 50th meeting of the ninth board of directors of the company was held by means of communication voting. The proposal on increasing the estimated amount of daily connected transactions in 2021, the proposal on Amending the articles of association and the proposal on convening the sixth extraordinary general meeting of shareholders in 2021 were considered and adopted.
14. On December 28, 2021, the 51st meeting of the ninth board of directors of the company was held by means of communication voting. The proposal on external guarantee, the proposal on Amending the articles of association and the proposal on convening the first extraordinary general meeting of shareholders in 2022 were considered and adopted. 4、 Production and operation plan for 2022
Focusing on the company’s “14th five year plan”, the company will firmly hold the bottom line of safety and environmental protection, continue to deepen reform, accelerate the improvement of governance system, and strive to achieve the output of 2.8 million tons of chemical fertilizer products, 1.76 million tons of chemical products and 19 billion yuan of operating revenue by 2022 through comprehensively strengthening management, multi-party cooperation and complementarity, multi-point fund-raising and diversified talent training. It plans to focus on the following work:
(I) stick to the bottom line of development and realize the upgrading of safety and environmental protection
In terms of safety and environmental protection, the company will continue to strengthen the implementation of responsibilities, strengthen rectification, promote the standardization of safety production, innovate safety management means, and seriously pursue accountability, so as to ensure that there are no fatal accidents throughout the year, the injury rate per thousand people is controlled within 0.35, all kinds of emissions are stable and up to standard, and zero environmental emergencies.
(II) focus on transformation and upgrading and start project construction operations
1. Accelerate the technological transformation and upgrading of traditional industries
Invest in the 550000 T / a ammonia alcohol project in tianjiahe area of yaojiagang chemical park, Yichang City, to ensure the supply of synthetic ammonia, methanol and other raw materials required for the production of chemical fertilizer and chemical plants in yaojiagang Park, and implement the national requirements for energy conservation and environmental protection.
2. Realize the implementation of fine phosphorus chemical projects
Taking Yichang Bangpu Yihua New Material Co., Ltd. as the main body, promote the implementation of iron phosphate precursor, nickel sulfate, sulfuric acid, wet process phosphoric acid, refined phosphoric acid, supporting purified gypsum temporary storage yard and purified gypsum comprehensive utilization project.
3. Strive to put the environmental protection new material project into operation
Seize the opportunity of rapid development of degradable plastics industry, fully promote the construction of 60000 T / a PBAT degradable material project, and strive to put into operation before the end of 2022.
(III) build a platform system to form a support for scientific and technological innovation
Vigorously support the construction of its own R & D system, ensure R & D investment, vigorously introduce high-quality talents, promote internal R & D and external R & D cooperation, increase the integration of “industry, University, research and application”, carry out R & D cooperation with colleges and universities, and promote technology reserve and new product development.
