POWER HF(605100)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,354,287,631.56, a decrease of 14.92% compared to ¥1,591,818,233.64 in 2020[23]. - Net profit attributable to shareholders was ¥163,834,912.53, down 14.03% from ¥190,561,273.83 in the previous year[23]. - Basic earnings per share decreased by 48.86% to ¥1.35 from ¥2.64 in 2020[24]. - The weighted average return on equity fell by 7.66 percentage points to 9.01% from 16.67% in 2020[24]. - The company reported a net profit of ¥34,164,518.07 in Q4 2021, showing a decline compared to previous quarters[28]. - The main business revenue was CNY 1,333.42 million, a decline of 14.81% compared to the previous year[70]. - The operating costs amounted to CNY 1,090.03 million, reflecting a decrease of 13.24% year-on-year[69]. - The company achieved operating revenue of CNY 1,354.29 million, a decrease of 14.92% compared to the same period last year[68]. - The net profit attributable to shareholders was CNY 163.83 million, down 14.03% year-on-year[68]. Dividend and Capital Plans - The proposed profit distribution plan includes a cash dividend of 6.50 RMB per 10 shares, totaling approximately 78.9 million RMB, which represents 48.16% of the net profit attributable to shareholders for 2021[5]. - The company plans to increase its total share capital from 121,380,000 shares to 169,932,000 shares through a capital reserve transfer of 4 shares for every 10 shares held[5]. Audit and Compliance - The company has received a standard unqualified audit report from Da Xin Certified Public Accountants[4]. - The report indicates that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The internal control audit report issued by DaXin Accounting Firm confirmed the effectiveness of the financial reporting internal control as of December 31, 2021, with a standard unqualified opinion[164]. Risk Management - The company has outlined potential risks in the management discussion and analysis section, which investors should be aware of[8]. - The company recognizes the ongoing risks posed by the COVID-19 pandemic, which may impact production and market demand, and is implementing measures to stabilize the supply chain[126]. - The company is also aware of macroeconomic risks that could affect its performance and is focusing on market expansion and product diversification to enhance resilience[127]. - The company faces a high concentration risk from core customers, which significantly impacts its revenue and could lead to performance decline or losses if contracts are terminated or if there are adverse changes in the industry[128]. Product Development and Market Strategy - The company expanded its product diversification by launching core components for light trucks, with mass supply starting in the second half of 2021, covering 2L-5L series products[36]. - The company signed a cooperation agreement with Fuke Ke (Shanghai) Trading Co., Ltd. to develop high-end silicone oil shock absorbers for commercial vehicles, with multiple products currently undergoing customer testing[37]. - The company developed new diesel engine models in collaboration with Leiwo Heavy Industry, covering power ranges of 80-120 horsepower, with mass supply starting in the second half of 2021[40]. - The company is focusing on expanding its high-end power product offerings to enhance its competitive edge in the high-end power market[107]. Research and Development - Research and development expenses totaled 447.58 million RMB, representing 3.30% of operating revenue, with no capitalized R&D expenditures[82]. - The company has 81 R&D personnel, accounting for 8.79% of the total workforce, with a diverse educational background[83]. - The company is actively increasing its R&D investment in lightweight and low-carbon technologies to align with national carbon reduction strategies[105]. Environmental Management - The company has implemented a robust environmental management system in compliance with ISO 14001:2015 standards, ensuring all environmental management activities are legal and compliant[174]. - The company constructed two wastewater treatment stations, achieving 100% compliance in emissions during the reporting period[169]. - The company has a comprehensive emergency response plan for environmental incidents, regularly conducting drills to ensure effective control of environmental pollution risks[171]. Corporate Governance - The total remuneration for the board members and senior management during the reporting period amounted to CNY 416.88 million[140]. - The chairman and general manager, Xu Huadong, received a total remuneration of CNY 100.00 million[140]. - The company has a structured approach to determining remuneration based on annual operational goals and industry standards[148]. - The company has not faced any penalties from securities regulatory authorities in the past three years[149]. Market Trends and Industry Insights - The commercial vehicle market saw a decline in sales, with heavy-duty truck sales down 13.8% year-on-year and light-duty truck sales down 4%[44]. - The total sales of various diesel engines in China reached 6.1084 million units in 2021, a year-on-year decrease of 3.10%[96]. - The penetration rate of new energy commercial vehicles is steadily increasing, although traditional diesel engines remain dominant in heavy-duty applications due to their operational requirements[108]. Social Responsibility - The company donated a total of 123,800.00 yuan to families of local impoverished students during the reporting period[180]. - The company emphasizes employee rights protection, adhering to labor laws and providing various social insurances and benefits[177].