Stock Code: Beijing Bayi Space Lcd Technology Co.Ltd(688181) stock abbreviation: Beijing Bayi Space Lcd Technology Co.Ltd(688181) Announcement No.: 2022013 Beijing Bayi Space Lcd Technology Co.Ltd(688181)
Announcement of 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 note: the company will not make profit distribution in 2021, and the capital reserve will not be converted into share capital. The company will not make profit distribution this year because it takes full account of the company’s current operating performance, production and operation needs, future capital investment needs and other factors. The profit distribution plan has been deliberated and approved at the 14th meeting of the 4th board of directors and the 12th meeting of the 4th board of supervisors, and needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
1、 Contents of profit distribution plan
According to the audit of Zhitong Certified Public Accountants (special general partnership), as of December 31, 2021, the distributable profit of the parent company at the end of the period was 49170749198 yuan. In accordance with the company law of the people’s Republic of China, the guidelines for the supervision of listed companies No. 3 – cash dividends of listed companies, the guidelines for the self-discipline supervision of companies listed on the science and Innovation Board of Shanghai Stock Exchange No. 1 – standardized operation, the Beijing Bayi Space Lcd Technology Co.Ltd(688181) articles of Association (hereinafter referred to as the “company charter”) and other relevant provisions, and on the basis of comprehensive consideration of the company’s financial situation, future business development needs and the interests of investors, Fully considering that the company is currently in a period of rapid development and the continuous expansion of its business scale, it needs large capital investment in R & D investment, new project implementation, share repurchase, etc., in order to better safeguard the long-term interests of all shareholders, the company will not make profit distribution in 2021, and the capital reserve will not be converted into share capital.
This profit distribution plan needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
2、 Description of no profit distribution in 2021
The company’s intention not to make profit distribution in 2021 is based on the comprehensive consideration of industry development, the company’s development stage, its own business model and capital demand. The specific reasons are described below.
(I) industry characteristics and development of the company
The company belongs to the manufacturing industry of electronic special materials and is at the upstream of the display material industry chain. Liquid crystal display materials are technology intensive products, and the industry is constantly upgrading with the trend of low cost and high performance. The company needs to invest a lot of money to continuously develop new technologies and update technical standards, so as to continuously optimize product performance and cost performance. With the joint efforts of Chinese liquid crystal display material enterprises, the localization rate of liquid crystal display materials is also increasing. The company needs to continue to invest various resources including capital and manpower, continuously expand the production scale and reduce the production cost, so as to enhance the core competitiveness of the company. Therefore, on the whole, with the rapid development of the industry and the continuous growth of demand, the company needs to leave enough funds to deal with the development and competition of the industry.
(II) development stage of the company and its own business model
The company’s main business is the R & D, production and sales of liquid crystal display materials. In recent years, the downstream demand continues to grow, the business scale of the company continues to expand, and the demand for production capacity and capital is also increasing.
In order to reduce the risk of the company’s dependence on a single product, the company will increase investment layout in semiconductor materials, medicine and other fields. These measures will strengthen the company’s core competitiveness, further expand business areas and create greater value for shareholders.
(III) profitability and capital demand of the company
In 2021, the company realized an operating income of 88678385763 yuan, a net profit attributable to the shareholders of the listed company of 20670759843 yuan, and a net profit of 21096197094 yuan from the parent company. At present, the company is in a period of rapid development. 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.
In 2022, the company will continue to increase investment in upgrading existing products and R & D of new products, and further enhance R & D strength by expanding R & D team. The company also continues to increase investment and construction in new projects. The construction of Shanghai Advanced Materials R & D project, Zhejiang Shangyu electronic materials base project and Hebei 800 million pharmaceutical advanced pharmaceutical intermediates and APIs project all require large capital investment. At the same time, the company repurchases some RMB common shares (A shares) issued by the company with its own funds through the trading system of Shanghai stock exchange through centralized bidding trading, and the total amount of repurchased funds shall not be less than 50 million yuan (inclusive),
No more than RMB 100 million (inclusive). For details, please refer to the website of Shanghai Stock Exchange (www.sse. Com. CN.) on March 1, 2022 Announcement on the plan of repurchasing shares of the company by means of centralized bidding transaction (Announcement No.: 2022005).
In this process, the company needs more funds to ensure the realization of the above objectives.
(IV) reasons for the company’s failure to pay cash dividends
This profit distribution plan takes into account the company’s business development plan and current development stage. On the basis of consolidating the existing display material business, the company plans to increase the construction of new projects with large investment scale. At the same time, it also leads to an increase in short-term capital expenditure in R & D investment and share repurchase. Therefore, considering the future development of the company and the long-term interests of all shareholders, The company plans not to distribute profits in 2021.
(V) purpose of retained undistributed profits of the company
At the end of 2021, the retained undistributed profits of the company will be accumulated and rolled over to the next year for R & D investment, new project implementation and construction, share repurchase and daily operation. The company will continue to actively implement the company’s profit distribution policy in strict accordance with the requirements of relevant laws and regulations, the articles of association and other relevant provisions, and in combination with the company’s development stage, operation, cash flow and other factors, share the achievements of the company’s development with investors, and better safeguard the long-term interests of all shareholders.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 14th meeting of the 4th board of directors on April 19, 2022, deliberated and passed the proposal on the profit distribution plan of 2021, agreed to the profit distribution plan and agreed to submit the proposal to the 2021 annual general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
All independent directors of the company believe that the company’s non distribution of profits and non conversion of capital reserve into share capital in 2021 is a comprehensive consideration based on the company’s current operating performance, production and operation needs, future capital investment needs and the long-term interests of all shareholders. Its decision-making procedures are legal, in line with relevant laws and regulations, the relevant provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange, the relevant provisions of the articles of association, the actual situation of the company and the needs of long-term development planning; There is no situation that damages the interests of the company and all shareholders, especially minority shareholders. It is agreed to submit the plan to the 2021 annual general meeting of shareholders of the company for deliberation. (III) opinions of the board of supervisors
At the 12th meeting of the 4th board of supervisors held on April 19, 2022, the company deliberated and adopted the proposal on profit distribution plan for 2021. The board of supervisors believes that the company’s profit distribution plan for 2021 complies with the requirements of relevant laws and regulations and the articles of association, the decision-making procedure is legal and standardized, takes full account of the company’s normal operation and long-term development, does not harm the interests of minority shareholders, conforms to the current operation status of the company, and is conducive to the sustainable development of the company.
4、 Relevant risk tips
(I) this profit distribution plan 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) 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.
It is hereby announced.
Beijing Bayi Space Lcd Technology Co.Ltd(688181) board of directors April 21, 2022
