SEC(603988)2022-04-15 16:00Financial Performance - The company's operating revenue for 2021 was CNY 819,358,116.04, a decrease of 4.33% compared to CNY 856,405,784.42 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 39,938,107.38, representing a significant decline of 76.67% from CNY 171,214,258.74 in the previous year[20]. - The basic earnings per share for 2021 was CNY 0.17, down 76.71% from CNY 0.73 in 2020[21]. - The weighted average return on equity decreased to 5.92% in 2021, down 17.56 percentage points from 23.48% in 2020[21]. - The company's total assets at the end of 2021 were CNY 1,207,643,700.89, a decrease of 4.58% from CNY 1,265,545,670.26 at the end of 2020[22]. - The net cash flow from operating activities for 2021 was negative CNY 10,713,890.86, compared to positive CNY 74,586,889.83 in 2020[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 42,030,076.36, a decrease of 60.96% from CNY 107,660,598.41 in 2020[20]. - The company's net assets attributable to shareholders decreased by 21.80% to CNY 591,734,065.77 at the end of 2021 from CNY 756,683,996.64 at the end of 2020[22]. - The gross profit margin decreased from 29.14% in 2020 to 26.43%, a reduction of 2.71 percentage points[43]. - The total operating costs increased to CNY 760,228,225.02, up from CNY 737,805,792.16 in the previous year, reflecting a rise of 3.5%[193]. Cash Flow and Investments - The company has made efforts to enhance cash flow management, particularly in accounts receivable collection, to avoid inventory backlog[2]. - The net cash flow from operating activities was negative in Q1 at CNY -6,093,861.45, but improved significantly to CNY 28,962,772.27 in Q3, before dropping to CNY -40,114,873.79 in Q4[24]. - The investment cash flow net amount increased by 232.18% to RMB 190,653,210.92, indicating a strategic focus on investment activities[44]. - The company has invested a total of 182 million CNY in bank wealth management products using its own funds, with an additional 10 million CNY from raised funds[145]. - The total principal balance of entrusted wealth management that has not matured is 40 million CNY, with interest income totaling 3,362,038.60 CNY[146]. Operational Challenges - The company has indicated potential risks in its future operations, including industry and market risks, as detailed in the management discussion and analysis section[7]. - The overall economic environment in China showed an 8.1% GDP growth in 2021, with manufacturing value-added growth at 9.8%, indicating a challenging backdrop for the company[32]. - The company’s operating environment has been challenging, with the equipment manufacturing industry experiencing a 12.9% increase in added value year-on-year[35]. - The prices of key raw materials such as copper wire, silicon steel sheets, and steel remained volatile in 2021, impacting the company's operating costs[83]. - The ongoing global pandemic has created unprecedented challenges for the company's overseas operations, increasing the risk of commercial disputes[84]. Research and Development - The company holds a total of 53 valid patents, including 36 invention patents and 17 utility model patents, enhancing its technological capabilities[38]. - The company has focused on improving product quality through the implementation of the ISO quality management system and optimizing production processes[1]. - Research and development expenses for 2021 were CNY 26,820,633.19, a decrease of 7.5% from CNY 29,121,081.17 in 2020[194]. - The number of R&D personnel is 120, constituting 15.19% of the total workforce[58]. - The company is committed to technological innovation and automation upgrades to reduce production costs and improve product quality[3]. Market Position and Strategy - The company aims to optimize asset structure and balance development with operational quality to meet annual business goals despite external challenges[32]. - The company aims to become a leading manufacturer of large and medium-sized electric motors in China within the next five to ten years, establishing a global sales network[80]. - The electric motor industry is expected to maintain growth during the "14th Five-Year Plan" period, driven by technological innovation and market demand[78]. - The company plans to enhance its product line by focusing on high-efficiency, energy-saving, and environmentally friendly products[80]. - The company is actively integrating and laying out industrial resources to expand its international business and accelerate its globalization process[80]. Governance and Compliance - The board of directors consists of 7 members, including 3 independent directors, ensuring a balanced governance structure[87]. - The company adheres to strict information disclosure practices, ensuring timely and accurate communication with investors[89]. - The internal control system has been evaluated with no significant deficiencies reported, and the independent audit firm issued a standard unqualified opinion on the internal control effectiveness[123]. - The company has established a clear governance structure to ensure independent operation and management without interference from shareholders[132]. - The company has committed to ensuring that its controlling shareholders and related parties will not engage in any competitive activities with the listed company following the completion of the acquisition[131]. Shareholder Engagement - The annual shareholders' meeting had 15 attendees representing 89,132,100 shares, accounting for 49.6031% of the total voting shares[92]. - The company plans to distribute a cash dividend of CNY 0.565 per 10 shares, totaling CNY 13,288,800.00[5]. - The company has set a shareholder return plan for the next three years (2021-2023) to enhance future returns[103]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 3.0657 million yuan[100]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year, representing a 20% growth compared to the previous year[94].