Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700)
Work report of the board of directors in 2021
In 2021, the board of directors of Changsha Dialine New Material Sci.&Tech.Co.Ltd(300700) (hereinafter referred to as "the company") conscientiously performed the duties of the board of directors entrusted by the general meeting of shareholders, diligently carried out various work, safeguarded the interests of shareholders and the company, and continuously improved the level of corporate governance in strict compliance with the company law, the securities law and other national laws and regulations and the articles of association, To promote the sustainable, healthy and stable development of the company. The work of the board of directors in 2021 is reported as follows:
1、 Operation and management of the company in 2021
1. Operation of the company during the reporting period
During the reporting period, the company carried out various work around the annual operation policy, and better controlled the company's operation cost and operation risk by continuously deepening operation and management innovation, standardizing the company's governance structure, and improving the internal control process and system. All key work was carried out in an orderly manner and achieved certain results.
In 2021, the company realized an operating revenue of 2707023 million yuan, an increase of 11.45% over the same period of last year; The operating profit was -850818 million yuan, a decrease of 301747% over the same period last year; The net profit attributable to shareholders of listed companies was -781223 million yuan, a decrease of 529501% over the same period of last year.
The main reasons for the large losses compared with the previous year: (1) due to the changes in the development structure of downstream industries far exceeding expectations, the increasing technical requirements of customers for products, the acceleration of product specification transformation, and the failure of timely and effective treatment of some products and main raw materials due to the changes in 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. Facing the adverse situation of sharp decline in operating performance, the company focuses on promoting the release of production capacity and fully improving the operating efficiency of assets. Through the joint efforts of the whole staff, the company's production equipment has been fully transformed and upgraded in the second half of 2021. The company's fund-raising project Zhuzhou Dale "industrialization project of diamond line with an annual output of 6 billion meters" has completed all equipment investment and gradually released production capacity. The construction of phase II plant of the company headquarters has been basically completed and partially put into use by the end of 2021, and the production capacity expansion has been carried out in an orderly manner. At the same time, the company has continuously increased investment in product R & D and technological transformation, and the quality of products has been steadily improved, which has laid a solid foundation for the continuous improvement and release of the company's production capacity. By the end of the reporting period, the production capacity of the company's diamond line has reached more than 800000 km / month, and it is expected that the production capacity will reach more than 1 million km / month in the first quarter of next year. The company has been deeply engaged in the diamond thread industry for more than ten years, and has a deep experience in brand and technical precipitation. In order to expand and strengthen the diamond line industry, in addition to the current expanded production capacity, the company still needs to further strengthen the in-depth cooperation with customers, prepare for the next production capacity expansion, and ensure that the company can provide customers with stable and scalable large-scale supply capacity, continuous and stable quality and continuous product upgrading capacity, so as to become a high-quality and stable supplier for customers.
After nearly two years of performance difficulties, the company has made a qualitative leap in technology, product quality and production capacity. In order to further consolidate and enhance the above foundation, ensure the stability of the company's talent team and better introduce excellent talents, the company launched employee equity incentive in December 2021, so as to boost the confidence of employees and help the company develop better in the future.
2. Research and development
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.
3. Market development
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 and expand the market share of Kaifang; 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.
4. Production and technology improvement
Facing the pressure of market competition, reducing costs is still the main means to improve product profitability. During the reporting period, the company continued to increase the automation technology transformation of production equipment. In the second half of 2021, the transformation and upgrading of production equipment have been fully completed, and the efficiency of production line has been steadily improved; At the same time, in the second half of 2021, all subsequent production lines of the company's fund-raising projects were put into place, and the model was upgraded from line 6 to line 8. After commissioning, the equipment capacity gradually began to be released.
In addition, the company strengthened the management and control of the production process, effectively improved the production efficiency of employees by using equipment automation and information management system, and laid a good foundation for production and operation in 2022.
5. Investment and construction
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.
7. Company operation and management
During the reporting period, the company made a series of management methods and management structure adjustments to meet the development needs of the enterprise under the new situation. First, improve performance appraisal and target responsibility management, strengthen departmental business cooperation and improve the overall implementation ability; Second, build a scientific internal control system, form a trinity control system of risk control, internal control and audit, comprehensively sort out and optimize the management process, and improve the operation and implementation efficiency and management standardization level of the company; Third, strengthen the construction of talent team, actively introduce high-quality talents, and meet the demand for talents for the continuous expansion of the company's scale; Fourth, actively promote the construction of enterprise informatization and continuously improve the level of enterprise informatization management. The company continued to strengthen its corporate governance structure, improve its internal processes and improve its management level in an all-round way. 2、 Daily work of the board of directors
1. Operation of the board of directors
In 2021, the board of directors of the company held 8 meetings, which discussed the following proposals and made resolutions:
Name of the meeting meeting time for deliberation of proposals
Proposal of the third board of directors on January 14, 2021 on proposing downward revision of the conversion price of convertible corporate bonds
Proposal on convening the first extraordinary general meeting of shareholders in 2021 at the 11th meeting
Proposal on downward revision of the conversion price of "Dale convertible bonds" issued by the third board of directors on February 2, 2021
Twelfth Meeting
Proposal on the work report of the general manager of the company in 2020
Proposal on the work report of the board of directors in 2020
Proposal on the company's 2020 financial final accounts report
Proposal on 2020 financial audit report of the company
Proposal on the company's 2020 annual report and its summary
Proposal on the special report on the deposit and use of the company's raised funds in 2020
Proposal on the special audit report on the occupation of the company's funds by the company's controlling shareholders and other related parties at the 13th meeting of the board of directors in 2020 on April 25, 2021
Proposal on the company's internal control self-evaluation report in 2020
Proposal on the company's 2020 profit distribution plan
Proposal on the company's reappointment of audit institutions in 2021
Proposal on establishing holding subsidiaries through foreign investment
Proposal on the company and its subsidiaries applying to the bank for comprehensive credit line in 2021
Proposal on the remuneration of directors and senior managers of the company in 2021
Proposal on convening the notice of the company's 2020 annual general meeting of shareholders and proposal on Amending the company's registration and management system for insiders
Proposal on the company's report for the first quarter of 2021 issued by the third board of directors on April 27, 2021
14th Meeting
Proposal on the company's 2021 semi annual report and its summary; proposal on the special report on the deposit and use of the company's 2021 semi annual raised funds
Proposal on closing investment projects with funds raised from public issuance of convertible corporate bonds and permanently replenishing working capital with surplus funds raised
