Company code: Polyrocks Chemical Co.Ltd(688669) company abbreviation: Polyrocks Chemical Co.Ltd(688669) Polyrocks Chemical Co.Ltd(688669)
Summary of annual report 2021
Section I important tips
1 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 http://www.sse.com.cn./ The website carefully reads the full text of the annual report. 2. Major risk warning: the company has elaborated various risks and countermeasures that may be faced in the business process in this report. For details, see “section III Management Discussion and analysis” IV The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report without false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4 all directors of the company attend the meeting of the board of directors. 5 Lixin Certified Public Accountants (special general partnership) Issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
According to the proposal on the company’s profit distribution plan for 2021 adopted at the 39th meeting of the Fifth Board of directors of the company, the company’s profit distribution plan for 2021 is proposed as follows: Based on the total share capital of 93333334 shares on December 31, 2021, cash dividends of 1.4 yuan (tax included) will be distributed to all shareholders for every 10 shares, and a total cash dividend of 1306666676 yuan (tax included) will be distributed. The company’s cash dividends in this year accounted for 15.73% of the net profit attributable to shareholders of Listed Companies in 2022. No bonus shares will be given this year, and no capital reserve will be converted into share capital. The proposal still needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
A-share Shanghai Stock Exchange Polyrocks Chemical Co.Ltd(688669) Polyrocks Chemical Co.Ltd(688669) not applicable
Scientific innovation board
Profile of the company’s depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Mei Jingtian Kelly
Office address: Xiongxing industrial city, high tech Industrial Development Zone, Qingyuan City, Guangdong Province B6, Xiongxing industrial city, high tech Industrial Development Zone, Qingyuan City, Guangdong Province
Tel: 07633125887
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business during the reporting period (I) main business, main products or services 1 Main business of the company
The company is a green new material high-tech enterprise with core original technology and patents. Its main business is the R & D, production and sales of phosphorus chemical industry (flame retardant, phosphorus pentoxide, polyphosphate, etc.), modified plastics and products. The products are widely used in festival lighting, electronic appliances, wires and cables, automobiles, optical displays, medical and health care and other fields, and have established strategic cooperative relations with many well-known enterprises at home and abroad. During the reporting period, through extension or endogenous development, the company added phosphorus pentoxide, polyphosphate, construction mold base leasing business, hot-melt adhesive products, wire products and developed the end product market of diapers and sanitary napkins in Africa. Adhering to the concept of green environmental protection, energy conservation and high efficiency, the company actively expands various application scenarios of plastics horizontally, extends vertically along the upstream and downstream industrial chain, and excavates the green new material industry with high added value and in the gap between market supply and demand around the two main lines of chemical industry and plastics industry. 2. Main products of the company
The company’s main products are phosphorus chemical industry, modified plastic particles, plastic products and leasing business.
(1) Phosphorus chemical industry (halogen-free flame retardant)
During the reporting period, the company integrated the industrial chain of phosphorus pentoxide, the main raw material of phosphorus based flame retardants, through the acquisition of Longhua chemical. In addition to producing halogen-free flame retardants, phosphorus pentoxide is also widely used in phosphorus containing pesticides and phosphorus containing medicine, and can be used to manufacture optical glass to improve the dispersion coefficient and ultraviolet transmission ability of the glass; Another product of Longhua chemical is polyphosphate, which can be used to produce lithium hexafluorophosphate in battery electrolyte and pharmaceutical intermediates.
The flame retardant and halogen-free flame retardant products of REEs and RoHS meet the international standards of flame retardant and halogen-free. Phosphorus flame retardants are mainly used for fire-resistant coatings for steel structures of airports, high-speed railways and high-rise buildings; Nitrogen flame retardant is mainly used for elastomer, seal and fabric coating; Intumescent flame retardant is mainly used in electronic appliances such as heater, refrigerator, TV, microwave oven and automobile profiles.
During the reporting period, the company obtained the land use right of 120 mu in Chizhou, Anhui Province. At present, the first phase of Chizhou chemical new material production base is under construction. It is expected to build a production capacity of 50000 tons of halogen-free flame retardant within three years, further reduce costs and improve market share in large-scale production. During the reporting period, Qingyuan production base added 4000 tons of halogen-free flame retardant capacity, and the total capacity has reached 15000 tons. In addition, the company plans to carry out pilot test of aluminum hydroxide flame retardant this year. In the future, it will further expand the category of flame retardant – inorganic flame retardant and consolidate the leading position of halogen-free flame retardant in the industry.
(2) Modified plastic particles
Modified plastics refer to plastic products that improve the flame retardancy, light transmittance, strength and toughness of synthetic resin through filling, blending, reinforcement and other processing and modification on the basis of general resin.
Relying on flame retardant technology, the company has independently developed modified plastic particle products with flame retardant characteristics through the integration of flame retardant compound application technology and modified plastic preparation technology. The products have passed UL certification in the United States, and their key indicators such as flame retardant performance, flame retardant efficiency and stability are at the leading level among similar products. They are widely used in holiday lighting, electronic appliances, wires and cables, automobiles, LCD TVs, medical and health care and other fields, and are recognized by well-known enterprises Midea and Galanz. During the reporting period, the company added hot-melt bonding materials through the acquisition of PolyOne, mainly including functional polyolefin hot-melt adhesive particles and hot-melt adhesive film products. Functional Polyolefin hot melt rubber particles are mainly applicable to three fields: composite pipeline, composite sector and barrier packaging; Hot melt adhesive particle product system is mainly applicable to environmental protection household industry, such as aluminum-plastic board.
(3) Modified plastic products
Automobile sector (PP honeycomb sector) PE breathable film PS diffusion sector
Modified plastic products are based on plastic raw material particles, modified by adding specific modifying additives, and further processed into products through extrusion or tape casting, so as to improve the added value of products. During the reporting period, the company’s main modified plastic products include PE breathable film, PS diffusion sector and automobile profile. Among them, PE breathable membrane is used in the field of medical and health, with the characteristics of ventilation and waterproof, which can increase human comfort and isolate viruses and bacteria; PS diffusion sector is applied to direct backlight LCD TV sets, with good performance such as heat and fire resistance, dimensional stability, high light transmittance and mechanical strength. The company is the core supplier of PS diffusion sector for Samsung Electronics and LGE in Korea. The main products of automobile profiles include honeycomb board, fiberglass board, blow molding board, composite board, etc., which can be used for trunk, interior decoration, door, roof, underbody and other parts. They have entered the supply chain of passenger cars such as Volkswagen, Nissan, Chang’an and Jinlong.
(4) Leasing business
During the reporting period, the company added the leasing business of turnbuckle scaffold, galvanized steel pipe scaffold, PP Alloy Material formwork and circulating packaging box to provide safe and efficient design scheme and formwork leasing services for the construction unit. In addition, the company expects to carry out the leasing business of EPP incubators, plastic logistics boxes, etc. in 2022, to replace the disposable white foam boxes and disposable cartons to achieve the effect of energy conservation and emission reduction, and promote the development of green circular economy by means of leasing and selling. （2） Main business model
Adhering to the concept of taking customers as the center and creating value through science and technology, the company has an independent and complete R & D, procurement, production, sales and leasing system. Through continuous scientific research investment and product innovation, the company has formed a business model extending upstream and downstream of the industrial chain of “chemical raw materials + modified plastic particles + plastic products”.
1. R & D mode
The company takes the upstream and downstream application market of the industrial chain of “chemical raw materials + modified plastic particles + plastic products” as the research and development direction, closely follows the development trend of high-performance, multi-function and green in the new material industry, and adopts the mode of combining independent innovation and R & D and cooperative R & D for innovative development; In terms of independent innovation and R & D, the company continuously optimizes and upgrades the formula design, equipment transformation and production process of existing flame retardants, modified plastic particles and products, and promotes the expansion and iterative innovation of products in downstream applications; In terms of cooperative R & D, the company continued to carry out project cooperation with colleges and universities, carried out forward-looking new product development with the development trend of new material industry as the core, strengthened talent exchange and training between schools and enterprises, and provided guarantee for the company to reserve cutting-edge new material technology and intellectual property layout.
2. Procurement mode
The materials purchased by the company include main raw materials, auxiliary materials, office supplies, machinery and equipment and other materials. The company selects the delivery time, quality and cost of materials in the procurement process. All kinds of purchased materials must meet environmental protection regulations and customer needs. The company’s main raw materials, such as resin, are general-purpose products with sufficient market supply, and has established long-term cooperative relations with leading suppliers at home and abroad to ensure the effective supply of raw materials through batch procurement, long-term procurement, global procurement and other means.
3. Production mode
The company’s production mainly adopts the mode of “production based on sales”, that is, it plans and arranges production according to customer order requirements, and independently organizes production. From the specific process, the Sales Department of each business unit submits the customer’s order to the material control department, which issues the production order to the production department after accounting, and the production department replies to the product delivery date and organizes production according to the order and product requirements. Some customers have stable orders or high requirements for delivery response speed. For such customers, the company sets a certain amount of safety inventory according to product types and customer needs, and the customers give priority to shipping from inventory after placing orders.
4. Sales model
The company adopts the sales mode of “direct sales first, supplemented by distribution” and “combination of domestic sales and export sales”. Direct selling mode refers to the way that products are directly sold to customers outside China through Chinese channels or general trade export. Under the distribution mode, the company and domestic and foreign cooperative dealers are buyout distribution. After the company delivers the products, it will no longer continue to manage and control the products, and the risks and rewards of the products will be transferred to the dealers. Under the export mode, it is divided into general trade export, deep processing of imported materials, Chinese factory transfer and processing and export of imported materials. 5. Leasing business model
The company reduces the procurement cost through batch procurement of turnbuckle scaffolds. There are two main business modes: leasing or professional subcontracting. Leasing is to rent scaffolding, building temsectors and other materials based on daily rent; Professional subcontracting refers to providing one-stop services for the Construction Party of large-scale construction projects based on the contracted quantities, including providing customized scaffold construction scheme design, professional on-site management, labor dispatch services, etc. The company has set up material warehouses and logistics networks in many places throughout the country, and all materials are allocated nationwide to ensure timely delivery and convenient return. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
The company’s main business is the R & D, production and sales of phosphorus chemical industry, modified plastic particles and products. According to the industrial classification of national economy (GB / t47542017) and the guidelines for industrial classification of listed companies (revised in 2012), the industry of the company is rubber and plastic products industry (C29).
(1) Phosphorus chemical industry
Phosphorus chemical industry is a resource industry, which mainly uses phosphorus ore as raw material, and phosphorus ore resources are non renewable resources, which have been identified as strategic mineral resources in China. In July 2016, the national mineral resources planning (20162020) approved by the State Council included non-metallic mineral phosphorus in one of the 24 strategic minerals for the first time, and clearly pointed out that it was necessary to strengthen the utilization of medium and low-grade minerals and keep the total mining volume no more than 150 million tons / year. China’s phosphate rock output ranks first in the world all year round. The average grade of phosphate rock resources is relatively low. More than 70% of them are low-grade phosphate rocks (the content of phosphorus pentoxide is less than 20%). A large number of low-value products are exported, consuming a large number of non renewable phosphorus resources, while almost all high-purity and high value-added phosphorus chemical products rely on imports. In addition, the phosphorus chemical industry is a typical industry with high energy consumption (about 14000 degrees of power consumption per ton of yellow phosphorus) and high pollution, which is the focus of environmental protection inspectors. In recent years, with the supply side reform and strict supervision of environmental protection inspectors, many small-scale phosphate mining enterprises have stopped mining. China’s phosphate rock output decreased year by year from 2017 to 2020. On the other hand, the downstream of the demand side includes phosphate fertilizer, glyphosate, etc., and the overall demand is relatively rigid, With the gradual promotion of new energy vehicles, the demand for lithium iron phosphate batteries is expected to increase the consumption of phosphorus ore. In the medium and long term, the mismatch between supply and demand is likely to further push up the price of phosphate rock and yellow phosphorus. The general products of the whole phosphorus chemical industry chain are as follows:
The middle reaches of phosphorus chemical industry flame retardant is the main business of the company
