East material science and technology last year net profit of 341 million yuan, proposed to issue 1.4 billion yuan convertible bonds to increase the main business

On March 30, East Material Technology disclosed its 2021 annual results report, saying that in 2021, the company achieved operating revenue of RMB 3.234 billion, up 71.92% year-on-year; net profit attributable to shareholders of the listed company of RMB 341 million, up 94.27% year-on-year; net profit attributable to shareholders of the listed company of RMB 314 million, up 116.16% year-on-year; basic Earnings per share: RMB0.40; proposed cash dividend of RMB1.00 (including tax) for every 10 shares to all shareholders.

Regarding the reasons for the change in performance, East Material Science and Technology indicated that the company closely focused on the overall work policy of "innovation-driven transformation and structural adjustment for growth" formulated by the board of directors at the beginning of the year, continued to optimize the product structure, accelerated investment in industrialization projects, promoted quality improvement, cost reduction and efficiency increase, and strictly controlled the expenses during the period, and the overall operating capacity and comprehensive profitability were significantly improved.

The overall operating capacity and comprehensive profitability have been greatly improved.

In terms of project construction, Dongcai Technology's "20,000 tons per annum of optical grade polyester base film for OLED display technology project" has been converted to solid state and achieved mass production; "5,200 tons per annum of special resin materials for high frequency and high speed printed circuit boards industrialization project", "100 million square meters per annum of functional resin materials for high speed printed circuit boards industrialization project" and "100 million square meters per annum of functional resin materials industrialization project" have been completed.

The "Annual Production of 100 million square meters of functional film materials industrialization project" and "Annual Production of 60,000 tons of special epoxy resin and intermediates project" are at the trial stage; "Annual Production of 20,000 tons of high performance polyester base film for MLCC and PCB project.

The construction progress of major projects such as "20,000 tons per annum of high performance polyester base film for MLCC and PCB", "20,000 tons per annum of optical grade polyester base film for new display technology project" and "special functional polyester film project" is basically in line with expectations.

At the same time, the Company further strengthened the system maintenance and upgrading of existing production equipment, enhanced safety management and process control at production sites, and effectively enhanced the scale of production capacity and production delivery capability.

In 2021, East Material Technology successfully completed the non-public issue of A shares in 2020, raising RMB767 million in capital, making the asset and liability structure more reasonable and significantly improving its overall financial strength and debt servicing capability.

The holding subsidiary, Shandong Elmont, acquired 100% equity interest in Shandong Dongrun for RMB 36 million to further expand the scale of production capacity, enrich the product structure and improve the layout of the company's industrial chain in the electronic materials segment.

In the future, Dongcai Technology will focus on the development of optical film materials, environmental protection flame retardant materials, electronic materials and other series of products based on new insulating materials, focus on the demand for new materials in new energy, new display, 5G communication and other fields for technology reserve, project cultivation and industrial investment, and strive to build Dongcai Technology into a world-renowned innovative new materials production service provider.

By 2022, the company aims to achieve a revenue of over RMB 5 billion.

East Material Science and Technology has also disclosed its plan to publicly issue convertible bonds to raise a total of not more than RMB 1.4 billion, which will be used for the construction of East Material Science and Technology Chengdu Innovation Centre and Production Base Project (Phase I), East Material Science and Technology Chengdu Innovation Centre and Production Base Project (Phase II), 25,000 tons per annum of optical grade polyester base film for polarizer, 20,000 tons per annum of Optical Grade Polyester Base Film for Ultra-Thin MLCC Project and Supplementary Working Capital.