Financial Performance - The company reported a net profit of approximately 328 million RMB for the year 2021[5]. - The company's operating revenue for 2021 was CNY 3,282,337,588.29, representing a 68.42% increase compared to 2020[22]. - Net profit attributable to shareholders for 2021 was CNY 328,015,825.55, a 33.88% increase from the previous year[22]. - The basic earnings per share for 2021 was CNY 0.77, up 20.31% from CNY 0.64 in 2020[24]. - The total assets at the end of 2021 reached CNY 4,823,105,336.22, an increase of 83.36% compared to the end of 2020[22]. - The cash flow from operating activities for 2021 was CNY 227,163,702.16, a 39.67% increase from 2020[22]. - The total net assets attributable to shareholders at the end of 2021 were CNY 2,199,744,583.16, a 23.89% increase from the end of 2020[22]. - The diluted earnings per share for 2021 was CNY 0.76, reflecting an 18.75% increase from the previous year[24]. - The company achieved operating revenue of 3.282 billion yuan, a year-on-year increase of 68.42%, and a net profit attributable to shareholders of 328 million yuan, up 33.88% from the previous year[35]. Dividend Policy - The company plans to distribute a cash dividend of 2.26 RMB per 10 shares, totaling approximately 98.8 million RMB, which represents 30.12% of the net profit attributable to shareholders for 2021[5]. - The company does not plan to increase capital reserves or issue bonus shares for the current year[5]. - The company implements a cash dividend policy, ensuring that at least 10% of the distributable profit is allocated for cash dividends when conditions are met[158]. - In mature stages without significant capital expenditure, the minimum cash dividend proportion should reach 80% of the profit distribution[158]. - The company will review its shareholder return plan at least every three years to determine if modifications are necessary[165]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company’s financial report is guaranteed for authenticity and completeness by its board of directors and senior management[8]. - The company has not violated decision-making procedures for external guarantees[7]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not reported any significant changes in the composition of R&D personnel that would impact future development[88]. - The company has not disclosed any significant internal control deficiencies during the reporting period[173]. - The company has actively revised its internal control policies to adapt to changes in the external business environment[172]. Strategic Initiatives - The company completed the acquisition of Jinyuan Industrial in April 2021 to strategically secure pig iron resource supply and implement "short-process joint casting"[40]. - The company proposed a long-term strategic plan for "three park construction" to establish world-class manufacturing bases[42]. - The company is focusing on the feasibility analysis report for the use of funds raised from the convertible bond issuance, which is crucial for investor confidence[124]. - The company plans to expand its project construction cooperation framework, indicating a strategic move towards growth and development in new projects[124]. - The company is actively engaging in strategic planning for market expansion and new product development, positioning itself for future growth opportunities[124]. Market and Industry Trends - The white goods market showed stable growth, with air conditioner and refrigerator production increasing by 3.8% and decreasing by 0.3%, respectively[46]. - The engineering machinery sector saw a 37.4% year-on-year increase in forklift sales, reaching 1.099 million units[50]. - The automotive industry experienced a 3.4% increase in production and sales, with total vehicle production reaching 26.082 million units[51]. - The company has established a global marketing network with multiple branches, providing one-hour JIT service to enhance customer satisfaction[67]. Research and Development - Research and development expenses rose to ¥98,326,080.66, marking an increase of 11.07% from the previous year[70]. - The company has been recognized as a "High-tech Enterprise" and has established several research centers to bolster its innovation capabilities[66]. - The company has made significant breakthroughs in 3D printing technology for molds, enhancing its competitive edge in the industry[66]. - The company employs a "make-to-order" procurement model for raw materials like pig iron and scrap steel, ensuring strategic reserves based on future sales forecasts[56]. - The company is actively pursuing new product development initiatives to enhance its competitive edge in the market[130]. Environmental Responsibility - Shanxi Huaxiang Group's wastewater treatment includes a daily capacity of 600 tons, with all wastewater being reused after treatment[176]. - The company employs low-nitrogen combustion technology for its natural gas boilers, ensuring compliance with emission standards[179]. - The company has established an emergency response plan for environmental incidents, complying with national regulations[182]. - Environmental monitoring is conducted regularly by third-party agencies to ensure pollutant emissions meet standards[183]. - The company has implemented measures to reduce carbon emissions, although specific results are not disclosed[184]. Corporate Governance - The company has established effective internal control systems, ensuring compliance with regulatory requirements and optimizing governance mechanisms[172]. - The company has ensured that minority shareholders have ample opportunities to express their opinions and protect their legal rights[166]. - The company has outlined measures to stabilize its stock price post-listing, as detailed in the prospectus[194]. - The company will take responsibility for any losses incurred by investors due to non-fulfillment of commitments, including compensation for damages[198]. - The company has committed to ensuring that any profits gained from non-fulfillment of commitments will be returned to the issuer[198]. Employee Development - The company has established a multi-level training system to enhance employee skills and career growth, combining internal and external training methods[154]. - The company prioritizes strategic talent in its compensation distribution to ensure market competitiveness for core personnel[153]. - The company has implemented a restricted stock incentive plan in 2021, resulting in significant share increases for several executives, including 270,000 shares for each of the vice presidents[128]. - The company has a total of 5,514 employees, with 4,704 in the parent company and 810 in major subsidiaries[151].