QRUNNINGCABLE(BJ:834682)2022-03-29 16:00Company Overview - Ningbo Qrunning Cable Co., LTD successfully listed on the Beijing Stock Exchange on November 15, 2021, marking a new development stage for the company[5]. - The company ranked 33rd in the "Top 100 Most Competitive Enterprises in China's Cable Industry" for 2021[6]. - The company is recognized as a provincial-level "Manufacturing Single Champion" for its special railway transportation cables[6]. - The company is a key drafter of the Zhejiang manufacturing group standard for cross-linked polyethylene insulated railway power cables rated at 35 kV[6]. - The company has completed the absorption merger of its wholly-owned subsidiary, Zhejiang Qiuguan Special Cable Co., Ltd., on December 17, 2021, which is expected to enhance resource integration and operational efficiency[84]. Financial Performance - The company's operating revenue for 2021 was ¥2,688,053,061.23, representing a 29.37% increase compared to ¥2,077,880,472.84 in 2020[25]. - The net profit attributable to shareholders was ¥82,011,714.15, a slight increase of 0.49% from ¥81,611,879.71 in the previous year[25]. - The gross profit margin decreased to 11.11% in 2021 from 12.69% in 2020[25]. - Total assets at the end of 2021 amounted to ¥1,921,379,025.55, reflecting a growth of 10.75% from ¥1,734,838,704.71 at the end of 2020[27]. - The total liabilities increased by 18.86% to ¥961,203,536.10 in 2021 from ¥808,674,929.41 in 2020[27]. - The company's debt-to-asset ratio was 50.03% at the end of 2021, up from 46.61% at the end of 2020[27]. - The net cash flow from operating activities was negative at -¥129,442,076.86 in 2021, a decline of 286.59% compared to ¥69,372,559.71 in 2020[29]. - The basic earnings per share decreased by 15.22% to ¥0.39 in 2021 from ¥0.46 in 2020[25]. - The company reported a total of 208,000,000 shares outstanding at the end of 2021, a 30.00% increase from 160,000,000 shares at the end of 2020[32]. Market and Competition - The competitive landscape in the cable industry is intensifying, with over 4,000 enterprises in the sector as of the end of 2020[11]. - The company recognizes the growing demand for high-voltage and special cables, which are expected to become major growth points in the industry[119]. - The company is facing intense competition in the low and medium voltage cable market, with over 12,770 companies in the industry, necessitating a focus on cost leadership and specialization in high-tech cables[131]. - The company's major customer, State Grid Corporation, contributed CNY 1,691,093,071.24, representing 62.94% of total sales[71]. Research and Development - The company participated in the formulation of seven national standards for cables and optical cables, which were approved and implemented starting November and December 2021[6]. - Research and development expenses increased by 34.25% to CNY 86,382,895.01, reflecting the company's commitment to innovation[63]. - The total number of patents owned by the company increased to 51, with 12 being invention patents, up from 44 and 11 respectively in the previous period[91]. - The company undertook 23 R&D projects during the reporting period, including the development of 26/35kV cross-linked polyethylene insulated low-halogen low-smoke flame-retardant B2 grade power cables, with 9 projects completed in 2021[92]. Social Responsibility and Community Engagement - The company donated ¥1.2 million to support the "Qiu Guan Public Welfare Assistance Action" project, benefiting approximately 80,000 people and helping 20 schools and 15 hospitals[107][108]. - The company has maintained its commitment to social responsibility, actively supporting rural development and community projects during the reporting period[108][109]. - The company was awarded the "Most Social Responsibility Award" by the China Social Welfare Foundation for its contributions during the reporting period[108]. Risk Management - The company faces significant risks due to fluctuations in copper prices, which account for over 80% of its main business costs[11]. - The company has not experienced significant changes in major risks during the reporting period[12]. - The company is aware of the risks associated with macroeconomic fluctuations that could impact investment policies in the power industry, but remains optimistic about stable growth in the Chinese economy[133]. - The company is committed to enhancing its operational management and risk control, including the implementation of a Manufacturing Execution System (MES) and the initial operation of the State Grid's IoT system[128]. Corporate Governance - The company has ongoing commitments to fulfill promises made during its public offering, with no violations reported as of the end of the reporting period[159]. - The company has established a framework for monitoring and reporting on its financial performance and market position[155]. - The company is committed to adhering to regulatory requirements and ensuring the integrity of its financial practices[155]. - There were changes in the board of directors, with two independent directors resigning and two new independent directors appointed[199][200]. Future Outlook - The company aims to enhance its core technology advantages in ultra-high voltage cables and become a professional, international system integration service provider[123]. - The company plans to achieve steady growth in operating efficiency by focusing on sales and optimizing its sales structure in 2022[124]. - The company is actively pursuing market expansion in renewable energy projects and specialized markets such as power generation and rail transportation[125]. - The company's future outlook includes potential market expansion and new product development strategies[197].