Securities code: Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700) securities abbreviation: Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700) Announcement No.: 2022060 Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700) 2021 annual report summary I. important tips the summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. Objection statement of directors, supervisors and senior managers
Name, title, content and reason
Risk warning of objection statement of directors, supervisors and senior managers: except for the following directors, other directors personally attended the meeting of the board of directors to consider this annual report
Name of director not present in person position of director not present in person reason for not attending the meeting name of the entrusted person
The audit opinion of Tianzhi International Certified Public Accountants (special general partnership) on the company's financial report this year is: standard unqualified opinion. Changes of accounting firm during the reporting period: the accounting firm of the company was changed from Tianzhi international accounting firm (special general partnership) this year. Tips of non-standard audit opinions □ applicable √ not applicable when the company is listed and is not profitable at present □ applicable √ not applicable to the profit distribution plan of ordinary shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors □ applicable √ not applicable. The company plans not to distribute cash dividends, bonus shares or convert accumulation fund into share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700) stock code Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Zhou Jiahua
Office address: No. 108, Huanlian Road, Changsha high tech Development Zone
Fax: 073184115848
Tel: 073189862900
E-mail [email protected].
2. Introduction to main business or products during the reporting period
(I) main business, main products and uses
The company is a high-tech enterprise specializing in the R & D, production and sales of diamond lines in China. The company is committed to becoming a world-class comprehensive service provider of hard and brittle material processing consumables. The company's products are diamond wires, which are mainly used for cutting hard and brittle materials such as crystalline silicon and sapphire. Silicon wafers are mainly used in Cecep Solar Energy Co.Ltd(000591) photovoltaic industry; Sapphire sheet is mainly used as LED lighting equipment substrate, consumer electronics and other industries. Since its establishment, the company's main business and products have not changed.
With the rapid growth of photovoltaic and sapphire application market and the changes of technology upgrading and updating, diamond wire cutting technology has basically replaced the traditional inner and outer circle and mortar cutting technology and become the mainstream technology in the field of hard and brittle material cutting with its comprehensive advantages of fast cutting speed, high machining accuracy, low cutting loss, high efficiency and environmental protection. After years of technological innovation and market development, the company has developed into a leading professional diamond wire manufacturing enterprise in China. The diamond wire manufacturing industry has no obvious cyclical and seasonal characteristics.
(II) main business models
1. Procurement mode
The raw materials needed by the company include diamond, steel wire, nickel, palladium, etc. The company has established a supplier evaluation management system, held a comprehensive assessment of raw and auxiliary material suppliers once a year, mainly scoring suppliers in terms of quality, delivery date, price and service, and established a dynamic list of qualified suppliers. For materials with long-term needs such as conventional raw and auxiliary materials and general materials, the procurement department selects them from the list of qualified suppliers, At the same time, bidding is also adopted to select suppliers for bulk materials and equipment. At present, the company has established long-term and stable cooperative relations with major suppliers.
2. Production mode
The company's products are designed and produced according to the requirements of customer orders. The company basically implements the production mode of setting production according to sales, that is, order driven production mode. Customers' different cutting materials, types of equipment and cutting processes have different requirements for the specifications of the company's diamond line products. Therefore, the company's products have some characteristics of customized production. The company determines the production rhythm through market demand, prepares annual, quarterly and monthly production plans according to the sales plan, and then organizes production.
3. Sales model
According to the market characteristics and the particularity of products, the company generally adopts the direct sales mode, and a small amount adopts the sales mode of distribution and agent sales. The two types of sales models of the company are highly complementary and have a good effect on market expansion and customer maintenance.
(III) market position of the company
Since its listing, the company has continued to expand its production, rapidly increased its production and marketing scale and rapidly increased its market share. The company has become one of the world's well-known mainstream suppliers of diamond line products. By virtue of the company's accumulated technical advantages in diamond line products for many years, the company's products have developed and extended to broader application fields such as magnetic materials, semiconductors, ceramics, graphite and stone, and maintain a certain leading advantage. In the future, with the continuous introduction of the company's innovative products and the continuous improvement of the company's production capacity, the sales scale and market share of the company's products are expected to expand continuously and steadily.
(IV) main performance drivers
During the reporting period, the company achieved an operating revenue of 2707023 million yuan, an increase of 11.45% year-on-year; The net profit attributable to the shareholders of the listed company was -781223 million yuan. Main factors affecting performance changes: (1) due to the change of downstream industrial development structure far exceeding expectations, customers' increasing technical requirements for products, accelerating the transformation of product specifications, and some products and main raw materials failed to be effectively handled in time due to the change of downstream customers' demand, resulting in the increase of inventory falling price reserves and affecting the performance of the current period; (2) In order to cope with downstream changes, the company has carried out technical upgrading and transformation of some original production equipment, resulting in an increase in the provision for equipment impairment; (3) Affected by the change of customer market environment, some customers have a long collection cycle due to their own business reasons, and the provision for bad debt reserves of accounts receivable has increased; (4) In 2021, Zhuzhou Dale, a wholly-owned subsidiary of the company, obtained the qualification of high-tech enterprise, and the income tax rate was adjusted from 25% to 15%. Due to the change of tax rate, the deferred income tax assets recognized in the previous period were remeasured, resulting in the decrease of deferred income tax assets, the increase of income tax expenses in the current period and the corresponding decrease of profits; (5) There are new cooperation projects in the reporting period of the company. As the project has not yet entered the stage of large-scale operation, it is still in a state of loss.
In view of the current decline in business performance, the company has focused on increasing investment in technology. First, it has accelerated the technical upgrading of the original equipment and optimized the product production process; Secondly, accelerate the production progress of raised investment projects, rapidly increase equipment output and release production capacity under the continuous good trend of external orders. In addition, based on the rapid increase of production capacity, strengthen market development, deepen cooperation with customers, and gradually achieve the goal of "stable quality and continuous large-scale supply capacity" to serve customers. In addition to the development of existing fields, the company is also strengthening the research and development of new businesses and new products, further expanding the application fields of diamond line products, such as the upgrading of processing methods in traditional fields such as graphite and stone, and providing systematic solutions. At present, it is in the early stage of industrialization. It is expected that large-scale industries will be formed in the next 1 or 2 years to provide new profit growth points for the subsequent operation of the company.
In 2021, the following work will be carried out:
1. Continue to increase R & D investment and accelerate the release of production capacity.
In 2021, the company invested 17.31 million yuan in R & D expenses, an increase of 12.04% over the previous year, accounting for 6.39% of operating revenue. In order to ensure the continuous improvement of technical ability and market competitiveness, although the company still faces the pressure of sharp decline in performance during the reporting period, the company's investment in R & D continues to increase, providing a strong driving force for the sustainable development of the company. In combination with the market demand and development trend, the company first concentrated resources to solve the technical difficulties of existing products, while strengthening the standardization of technology research and development and process technology management, realizing the ability to provide customers with large-scale products of sustainable and stable quality. During the reporting period, according to the requirements of the market for "thin line" of products, the company's 38 micron chip line products have been successfully developed and used in the market on a large scale; In the second half of 2021, the company has successfully developed 35 micron diamond wire products; At the same time, diamond wire products with tungsten wire instead of carbon steel wire as bus have been successfully developed and applied to customers in batch. Secondly, in terms of new product research and development, the company continued to focus on providing comprehensive consumables for the processing of hard and brittle materials such as photovoltaic, sapphire, magnetic materials and precision ceramics. During the reporting period, some new products achieved large-scale sales, such as grinding and polishing materials, stone material cutting lines, tungsten wire ropes, etc. In order to further improve equipment production efficiency and reduce costs, the company completed the technical transformation and upgrading of some production equipment in the second half of 2021. For example, the mainstream model of the production line was upgraded from 6-line machine to 8-line machine. At the same time, 10-15 line models were also developed, creating good conditions for further production expansion. During the reporting period, the company applied for 5 patents and authorized 7.
2. Improve internal operation and management and comprehensively improve operation efficiency.
Due to the increasingly fierce market competition and the transmission of the pressure of cost reduction in the industrial chain, during the reporting period, the company focused on capacity improvement, product quality, cost and stable delivery. Firstly, the company combed and optimized the management process, which improved the operation efficiency and management standardization level of the company; Secondly, taking the project business unit as the main body, the company has established an assessment mechanism focusing on profit objectives, and strengthened the implementation of capacity improvement and cost reduction measures.
3. Strengthen talent introduction and team building, and enhance incentive and guidance.
During the reporting period, the company continued to promote talent and team building in accordance with the proposed human resources plan. During the reporting period, on the one hand, the company trained a large number of management and training talents through school recruitment, on the other hand, it expanded the talent team through internal incentive policies, and strengthened team integration and mutual promotion through the timely adjustment of the company's salary and assessment system, so as to lay a talent foundation for the long-term development of the company. Human resources upgrade and optimize the organizational structure according to the organizational format, constantly consolidate the organizational talent echelon, and further expand technology R & D, production management and reserve management talents; In order to effectively stimulate the innovation of technical personnel, the company has established a set of perfect talent incentive mechanism, comprehensively using the methods of salary and welfare, performance and qualification evaluation, corporate culture and business philosophy guidance, and strive to create conditions to attract, cultivate and retain talents; Innovate the performance management mechanism of employees and middle and senior executives to ensure that the business objectives are aligned up and down, and accelerate the talent iteration and hematopoietic process. In addition, the company launched employee equity incentive in December 2021 to boost employees' confidence and ensure the stability of the company's talent team, so as to help the company develop better in the future.
4. Strengthen market development, deepen customer cooperation and broaden product application fields.
In 2021, the marketing market will continue to focus on the goal of customer demand orientation, and implement differentiated market promotion and management: the strategic core key customers will adopt the team marketing method to integrate the company's technology, quality and marketing resources to meet the needs of customers in an all-round way; The customer's industrial layout changes and adopts the cross regional sales mode of business manager. During the reporting period, the "thin line" of slicing line was continuously promoted, and 40 um and 38 um products were put into the market in batches one after another; The product process of Kaifang line has been continuously optimized and improved, the stability of product quality has been further strengthened, and the "thin line" of silicon Kaifang and sapphire line has been actively promoted, so as to enhance the competitive advantage of the company's products in the market; At the same time, the company has increased the substitution and upgrading of processing methods in traditional fields, and expanded the market demand for new products, such as stone processing, so as to realize the extension of the company's products in relevant fields.
5. Accelerate infrastructure investment and provide space for capacity expansion.
Focusing on the good development trend of photovoltaic, sapphire and magnetic materials in the future, especially the rapid growth trend of photovoltaic in the future, diamond lines will face broad development space in the future. The company has continued to invest in capacity expansion in recent years. First, in the second half of 2021, Zhuzhou Dale raised capital investment project has been completed and gradually released production capacity. By the end of 2021, the construction of phase II plant of Changsha Dale company headquarters has been completed and partially put into use. The completion of phase II plant construction of the company's headquarters has provided a solid foundation for the company's later capacity expansion and the R & D and production of new products.
6. Safety and environmental governance
During the reporting period, the company continued to attach great importance to safety and environmental governance, with no major industrial accidents and no fire and environmental safety accidents throughout the year. In terms of environmental protection treatment, the company continues to ensure and increase the investment in relevant facilities and earnestly fulfill the social responsibility of environmental protection. At the same time, the company continues to optimize the wastewater treatment process through technological upgrading, significantly reduce the generation of wastewater and the cost of wastewater treatment. 3. Main accounting data and financial indicators (1) whether the company needs to retroactively adjust or restate the accounting data of previous years in recent three years □ yes √ no
Unit: Yuan
By the end of 2021, by the end of 2020, by the end of 2019 compared with the end of last year
reduce
total assets
