Securities code: Polyrocks Chemical Co.Ltd(688669) securities abbreviation: Polyrocks Chemical Co.Ltd(688669) Announcement No.: 2022030 Polyrocks Chemical Co.Ltd(688669)
Announcement of profit distribution plan for 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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Distribution ratio per share: RMB 0.14 per share (tax included)
The profit distribution is based on the total share capital on the date of equity distribution registration, and the specific date will be specified in the announcement of equity distribution implementation.
If the total share capital of the company changes before the equity registration date of equity distribution, it is planned to maintain the distribution proportion unchanged and adjust the total distribution accordingly, and the specific adjustment will be announced separately.
Brief reasons for the cash dividend of less than 30% in 2021: in order to further enhance the company’s strength, the retained undistributed profits will be used for the company’s subsequent product R & D, market development and business development, so as to enhance the company’s ability to give investors long-term and sustainable returns.
1、 Contents of profit distribution plan
According to the audit of Lixin certified public accountants, the parent company realized a net profit of 339901671 yuan in 2021, plus the undistributed profit of 28789262211 yuan at the beginning of the year, minus the paid common stock dividend of 1866666681 yuan and the withdrawal of statutory surplus reserve of 396984580 yuan. The undistributed profit at the end of the year was 26865512621 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 listed company plans to distribute a cash dividend of 1.4 yuan (including tax) to all shareholders for every 10 shares. As of April 25, 2022, the total share capital of the company is 93333334 shares. Based on this calculation, the total cash dividend to be distributed is 1306666676 yuan (including tax). The company’s cash dividends in this year accounted for 15.73% of the net profit attributable to shareholders of Listed Companies in 2021.
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 due to the conversion of convertible bonds into shares / share repurchase / share incentive grant share repurchase and cancellation / major asset restructuring share repurchase and cancellation, the company plans to maintain the distribution proportion per share unchanged and adjust the total distribution accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan needs to be submitted to the 2021 annual general meeting 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 at the consolidation level in 2021 was 8307584107 yuan, and the cumulative undistributed profit of the listed company was 46962268793 yuan; The accumulated undistributed profit of the parent company in 2021 was 26865512621 yuan. The total cash dividend to be distributed by the company is 1306666676 yuan, accounting for 15.73% of the net profit attributable to shareholders of the listed company this year, less than 30%. The specific reasons are described below.
(I) industry situation and characteristics of listed companies
The company’s industry is rubber and plastic products industry. The modified plastic industry has a high degree of marketization. The production and operation of enterprises are carried out in a market-oriented way. The competent government departments carry out industrial macro-control, and the industry associations organize self-discipline and standardization. Plastic modification is an important way to create new materials. Through plastic modification, a limited variety of single plastic products have evolved into tens of millions of new materials, which has greatly broadened the application field of plastics. With the advent of 5g era, 5g intellectualization, Internet of vehicles and other new industries need to invest a lot of electronic and electrical products, which will indirectly promote the use of modified plastics. Modified plastics usher in important development opportunities from the upstream auxiliary industry to the downstream product industry, and also force enterprises in the industry to accelerate the pace of innovation, focusing on the R & D investment of modified plastic products, production process innovation Continue to increase investment in intelligent production and manufacturing, further improve the core competitiveness of enterprises and help enterprises improve their market share
(II) development stage and business model of listed companies
Combined with the more and higher requirements of modern society for plastic materials, single component plastic is difficult to meet people’s requirements for the diversification of plastic materials, so the plastic industry needs to constantly broaden the plastic application market and keep up with the needs of modern society. At present, due to the stage of rapid development and expanding market share, the company needs to invest a lot of funds in R & D and innovation, industrialization implementation, capacity construction and market expansion of products involved in the upstream and downstream industrial chain.
(III) profitability and capital demand of listed companies
The year-on-year growth rate of the company’s operating revenue in 2021 was 32.08%, the net profit attributable to the shareholders of the listed company decreased by 47.67% year-on-year, the company’s revenue level continued to increase, and the production capacity and sales volume continued to expand. Combined with the current industry characteristics, development stage and business model of the company, the company must invest a large amount of its own funds to maintain rapid development, and also retain a certain proportion of funds to ensure the smooth implementation of the strategic plan and the unpredictability of the market.
(IV) reasons for the low level of cash dividends of listed companies
The total cash dividend to be distributed by the company in 2021 is 1306666676 yuan (including tax), accounting for 15.73% of the net profit attributable to the shareholders of the listed company this year.
Based on safeguarding the legitimate rights and interests of investors, taking into account the needs of the company’s sustainable and stable development, and considering the long-term interests of shareholders, comprehensively consider the overall strategic layout and capital needs of the company to ensure the sustainable and stable development of the company’s operation.
(V) the exact purpose and expected income of the retained undistributed profits of the listed company. The retained undistributed profits of the company will be transferred to the next year, mainly for capacity expansion, R & D investment, etc. The income level related to retained undistributed profits of the company is affected by many factors, such as macroeconomic situation, changes in asset quality, asset interest rate and so on.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 39th meeting of the 5th board of directors on April 28, 2022, deliberated and passed the proposal on the company’s profit distribution plan in 2021, agreed to the profit distribution plan and agreed to submit the plan to the company’s 2021 annual general meeting for deliberation.
(II) opinions of independent directors
The profit distribution plan for 2021 proposed by the board of directors of the company is formulated based on the actual situation of the company, taking into account the reasonable return to investors and the needs of the sustainable development of the company, without harming the interests of the company and its shareholders, especially medium and small shareholders, in line with the Listing Rules of Shanghai Stock Exchange science and innovation board, the articles of association and relevant laws and regulations, and maintaining the continuity of the company’s profit distribution policy.
We unanimously agree on the company’s profit distribution plan for 2021. And agreed to submit the proposal to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
The company held the 23rd Meeting of the 5th board of supervisors on April 28, 2021, at which the proposal on the company’s profit distribution plan in 2021 was deliberated and adopted. The board of supervisors believes that this profit distribution plan of the company combines the actual situation of the company, takes full account of the company’s profitability, cash flow, shareholder return and other factors, is in line with the interests of the company and shareholders, does not damage the interests of minority shareholders, and will not affect the normal operation of the company. Agree to the profit distribution and plan and submit the plan to the 2021 annual general meeting of shareholders of the company for deliberation.
(IV) the relevant authorization matters are the smooth implementation of the company’s profit distribution in 2021. The company requests the authorized management to go through the formalities of approval, registration, filing, approval and settlement in Shanghai Branch of China Securities Depository and Clearing Co., Ltd. for the company’s profit distribution in 2021.
4、 Relevant risk tips
(I) this profit distribution is formulated based on the actual situation of the company, taking into account the reasonable return to investors and the needs of the company’s sustainable development, and will not have an adverse impact on the company’s operating cash flow and production and operation.
(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.
Polyrocks Chemical Co.Ltd(688669) board of directors April 29, 2022
