TENGEN(605066)2022-04-28 16:00Financial Performance - The net profit attributable to shareholders for 2021 was CNY 108,941,777.10, with a year-end distributable profit of CNY 494,001,254.91[6]. - The company achieved operating revenue of CNY 2,921,911,560.93 in 2021, representing an 18.14% increase compared to 2020[23]. - The net profit attributable to shareholders was CNY 108,941,777.10, a decrease of 55.86% year-on-year[23]. - The basic earnings per share decreased by 61.43% to CNY 0.27 in 2021 from CNY 0.70 in 2020[24]. - The weighted average return on equity fell to 6.02%, down 15.06 percentage points from 2020[24]. - The company reported a net cash flow from operating activities of CNY 47,782,878.63, a decline of 72.82% compared to the previous year[23]. - The total assets increased by 3.16% to CNY 3,264,756,581.57 at the end of 2021[23]. - The company's operating costs increased by 24.71% to CNY 2,227,039,084.01, primarily due to revenue growth and rising raw material costs[56]. - The gross profit margin for the main business decreased by 4.02 percentage points, with the main business revenue growing by 18.13% and costs increasing by 24.69%[58]. - The company reported a net profit of 150 million in 2021, a 20% increase compared to the previous year, driven by higher sales and operational efficiencies[102]. Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the 2021 fiscal year, opting to carry forward undistributed profits to the next year[6]. - The company provided guidance for 2022, projecting revenue growth of 10% to 12%, aiming for a total revenue between 1.32 billion and 1.344 billion[105]. - The company reported a positive profit available for distribution to shareholders but did not propose a cash profit distribution plan, which is not applicable for this period[125]. Research and Development - R&D expenses increased by nearly 40% year-on-year, with 226 patent applications filed, including 54 invention patents, and a total of 733 patents held by the end of 2021[34]. - Research and development expenditures increased by 30% in 2021, totaling 150 million, to enhance product innovation and technology advancements[102]. - The company aims to enhance its R&D capabilities, focusing on arc extinguishing and operational mechanism technologies to achieve domestic leadership[84]. - The company has established a research institute and R&D center to enhance its technological capabilities, separating technology development from product development to improve market responsiveness[46]. Market Expansion and Strategy - The company continued to expand its distribution business through the "Hundred Cities, Thousand Counties, Ten Thousand Stores" initiative[31]. - The company expanded its market presence by successfully entering procurement agreements with major clients in the renewable energy and telecommunications sectors, including China Huaneng Group and China Mobile[33]. - The company plans to optimize the existing dealer structure and support potential dealers to grow through a "100 cities, 1,000 counties, 10,000 stores" strategy[90]. - The company aims to expand cooperation with well-known distributed photovoltaic companies, achieving rapid growth in the distributed photovoltaic supporting field[89]. - The company is constructing a new 50,000 square meter factory in the Yueqing Economic Development Zone to significantly increase production capacity[91]. Risk Management - The company faced significant challenges due to rising commodity prices and risks associated with accounts receivable from Evergrande Group[31]. - The company has reported a significant increase in accounts receivable risk due to the impact of real estate regulation on related enterprises[31]. - The company faces risks from market competition, raw material price fluctuations, and rising labor costs, which could adversely affect its performance[92][93]. Corporate Governance - The company has maintained a governance structure that ensures clear responsibilities among power, decision-making, supervision, and management, enhancing operational efficiency[96]. - The board of directors and supervisory board complied with legal requirements, ensuring independent operation without interference from the controlling shareholder[97]. - The company has a strict information disclosure policy, ensuring all shareholders have equal access to information[98]. - The independent directors actively participated in key decisions, safeguarding the interests of minority shareholders[96]. Social Responsibility - The company emphasizes social responsibility and environmental protection, engaging with stakeholders to promote sustainable development[98]. - The company actively participates in social responsibility initiatives, including donations and support during natural disasters in 2021[133]. - The company donated 100,000 yuan annually to Xi'an Jiaotong University from 2021 to 2023, with 80,000 yuan allocated for the "Zhejiang Tianzheng Electric" scholarship[134]. - The company also donated 40,000 yuan annually to Xi'an University of Technology for the same period to establish a scholarship for outstanding students[134]. Legal and Compliance - The company has not faced any penalties from securities regulatory authorities in the past three years[109]. - The company has not reported any significant lawsuits or arbitration matters for the year[172]. - The company has not encountered any legal violations or penalties during the reporting period[175]. Employee and Management - The company has a total of 3,854 employees, with 2,207 in production, 793 in sales, and 463 in technical roles[118]. - Employee headcount increased by 10% in 2021, reaching 1,200, to support the company's growth initiatives and expansion plans[103]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to ¥10,509,856.16[107]. - The company maintained a stable employee compensation policy linked to local economic conditions and individual performance[119].