Times Electric(688187)2022-03-29 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 4.5 per 10 shares, totaling RMB 637,306,610.40, which represents 31.59% of the net profit attributable to shareholders in 2021[4] - The total cash dividend for 2021, including the interim dividend, accounts for 63.17% of the net profit attributable to shareholders[4] - The company's board of directors has approved the profit distribution plan, which is subject to approval at the 2021 annual shareholders' meeting[4] - 2021 semi-annual cash dividend: RMB 4.5 per 10 shares[152] - 2021 annual cash dividend: RMB 4.5 per 10 shares, totaling RMB 637,306,610.40, accounting for 31.59% of net profit attributable to shareholders[153] - Total cash dividends for 2021 (including semi-annual dividends) accounted for 63.17% of net profit attributable to shareholders[153] Financial Performance - Revenue for 2021 was RMB 15,121,167,406, a decrease of 5.69% compared to 2020[17] - Net profit attributable to shareholders in 2021 was RMB 2,017,694,796, down 18.49% year-on-year[17] - Total assets at the end of 2021 reached RMB 44,150,745,227, an increase of 30.37% compared to the end of 2020[17] - Basic earnings per share decreased by 22.75% to 1.63 yuan per share in 2021 compared to 2020[18] - Weighted average return on equity decreased by 3.27 percentage points to 7.56% in 2021[18] - Q4 2021 operating income reached 6,595,142,928 yuan, the highest among all quarters[21] - Net profit attributable to shareholders in Q4 2021 was 815,356,483 yuan, a significant increase from previous quarters[21] - Company's total revenue in 2021 was RMB 15.121 billion, a decrease of 5.69% year-on-year, mainly due to a decline in rail transit equipment product revenue[71] - Net profit attributable to the parent company in 2021 was RMB 2.018 billion, a decrease of 18.49% year-on-year, primarily due to a decline in revenue and changes in product sales structure[71] - Rail transit equipment product revenue in 2021 was RMB 12.252 billion, a decrease of 11.80% year-on-year, mainly due to reduced investment budgets from major clients like the National Railway Group[74] - Emerging equipment product revenue in 2021 was RMB 2.572 billion, an increase of 35.31% year-on-year, with significant growth in new energy vehicle electric drive systems (up 171.32%)[74] - Gross profit in 2021 was RMB 5.102 billion, a decrease of 14.50% year-on-year, mainly due to changes in product sales structure[74] - Total assets as of December 31, 2021, were RMB 44.151 billion, an increase of 30.37% year-on-year, primarily due to the A-share IPO raising RMB 7.555 billion[71] - Net cash flow from operating activities in 2021 was RMB 2.150 billion, an increase of 23.06% year-on-year, mainly due to reduced cash payments for goods and services[73] - Net cash flow from financing activities in 2021 was RMB 6.975 billion, compared to a net outflow of RMB 545 million in the previous year, mainly due to the A-share IPO[73] - R&D expenses in 2021 were RMB 1.690 billion, an increase of 0.19% year-on-year, remaining relatively stable[72] - Rail transit equipment business revenue decreased by 11.80% to RMB 12.25 billion, with a gross margin decrease of 2.52 percentage points to 36.99%[76] - Emerging equipment business revenue increased by 35.31% to RMB 2.57 billion, but gross margin decreased by 2.10 percentage points to 20.05%[76] - Mainland China revenue decreased by 5.22% to RMB 14.44 billion, with a gross margin decrease of 3.89 percentage points to 34.59%[76] - Semiconductor device production increased by 125.90% to 1,319,072 units, while sales increased by 110.62% to 1,104,433 units[77] - Direct material costs for rail transit equipment decreased by 2.62% to RMB 8.77 billion, accounting for 87.56% of total costs[79] - Direct labor costs for rail transit equipment increased by 58.75% to RMB 376.68 million, accounting for 3.76% of total costs[79] - Top 5 customers accounted for 63.40% of total sales, with the largest customer, CRRC Group, contributing 40.36% of total sales[81][82] - Top 5 suppliers accounted for 32.99% of total procurement, with the largest supplier, CRRC Group, contributing 25.49% of total procurement[84][85] - Sales expenses decreased by 5.18% to RMB 1.05 billion, mainly due to a decrease in product quality assurance provisions[87] - R&D expenses increased slightly by 0.19% to RMB 1.69 billion, remaining relatively stable compared to the previous year[88] - Operating cash flow increased by 23.06% YoY to RMB 2.15 billion, mainly due to a decrease in cash paid for goods and services and other operating activities[89] - Investment cash flow was -RMB 6.014 billion, compared to -RMB 630 million in the same period last year, primarily due to a decrease in cash received from investment recoveries[89] - Financing cash flow was RMB 6.975 billion, compared to -RMB 545 million in the same period last year, mainly due to the receipt of funds from the A-share IPO[89] - Monetary funds increased by 60.26% YoY to RMB 8.219 billion, accounting for 18.62% of total assets[90] - Trading financial assets increased by 103.09% YoY to RMB 7.58 billion, accounting for 17.17% of total assets[90] - Accounts receivable financing increased by 101.57% YoY to RMB 2.91 billion, accounting for 6.59% of total assets[90] - Overseas assets amounted to RMB 1.525 billion, accounting for 3.45% of total assets[92] - Long-term equity investments increased by 11.06% YoY to RMB 611.73 million[95] Corporate Governance - The company has no significant risks related to non-operational fund occupation by controlling shareholders or their affiliates[5] - The company has no violations in decision-making procedures for external guarantees[6] - The company has no instances where more than half of the directors cannot guarantee the authenticity, accuracy, and completeness of the annual report[6] - The company has no special arrangements in corporate governance[5] - The company strictly complies with corporate governance regulations and continuously improves its governance and operational management levels[104] - The 2020 Annual General Meeting approved several key resolutions, including the annual report and financial statements, and the decision not to distribute profits for 2020[106] - The 2021 First Extraordinary General Meeting approved the expected daily related-party transactions for 2021-2023 and the 2021 interim profit distribution plan[108] - The company's executive team, including the Chairman and Vice Chairman, did not receive any compensation from the company during the reporting period, with their remuneration being sourced from affiliated entities[110] - The General Manager received a total pre-tax compensation of 1.4987 million yuan during the reporting period[110] - Independent non-executive directors received varying levels of compensation, with the highest being 270,300 yuan and the lowest being 119,000 yuan[110][111] - The company's employee supervisors received compensation ranging from 56,760 yuan to 143,390 yuan[111] - The company's Vice Presidents and other senior executives received compensation ranging from 88,330 yuan to 116,510 yuan[111][112] - The company's core technical personnel, such as the Deputy General Managers of subsidiary companies, received compensation ranging from 36,350 yuan to 112,980 yuan[112] - The company's financial and engineering executives received compensation ranging from 94,990 yuan to 103,020 yuan[112] - The company's international R&D center head received a compensation of 1.1298 million yuan[112] - The company's subsidiary executives in the UK and Shanghai received compensation of 782,700 yuan and 1.1298 million yuan respectively[112] - Total pre-tax compensation for executives in 2021 amounted to 2,266.52 million[113] - The "Times Electric 1号资管计划" holds 4,598,422 shares, representing 2.07% of the total shares[114] - The "Times Electric 3号资管计划" holds 4,609,837 shares, representing 2.06% of the total shares[114] - Li Donglin has been serving as the Chairman and Executive Director since July 2018[115] - Liu Ke'an has been serving as the Vice Chairman and Executive Director since September 2020[115] - Shang Jing has been serving as the Executive Director and General Manager since September 2020[115] - Yan Wu, born in 1967, holds a bachelor's and master's degree from Northwestern Polytechnical University and has been with CRRC Zhuzhou Institute since 1992, currently serving as Executive Director, Vice President, Board Secretary, and General Counsel[116] - Zhang Xinning, born in 1964, holds a bachelor's and master's degree from Beijing Jiaotong University and has been the Chief Engineer of CRRC since 2015, currently serving as a Non-Executive Director[116] - Chen Jinrong, born in 1958, holds a bachelor's degree in accounting and a master's degree in business, and has been an Independent Non-Executive Director since 2005, with extensive experience in accounting and financial reporting standards[116] - Pu Bingrong, born in 1947, holds a master's degree in human settlement planning science and has been an Independent Non-Executive Director since 2005, with extensive experience in corporate governance[116] - Liu Chunru, born in 1971, holds a bachelor's degree in engineering and an MBA from Tsinghua University, and has been an Independent Non-Executive Director since 2008, with a background in asset valuation[116] - Chen Xiaoming, born in 1963, holds a bachelor's and master's degree in law and has been a lawyer since 1988, currently serving as an Independent Non-Executive Director[116] - Gao Feng, Independent Non-Executive Director, holds a Ph.D. in Electrical Engineering from the University of Washington and has extensive experience in energy and grid research[117] - Li Lue, Supervisor, has a Master's degree in Business Administration from Kunming University of Science and Technology and has held various financial leadership roles within the company[117] - Pang Yiming, Employee Representative Supervisor, has a long history with the company, including roles in manufacturing and market management[117] - Zhou Guifa, Employee Representative Supervisor, holds a Ph.D. in Engineering from Tongji University and has been recognized as a Chief Design Expert and Scientist by CRRC[117] - Geng Jianxin, Independent Supervisor, holds a Ph.D. in Accounting from Renmin University of China and has served as a professor and academic committee chair at the university[117] - Senior management profiles including key executives such as Niu Jie, Tan Yongneng, Yan Changqi, Gong Tong, and Yu Kang, detailing their educational backgrounds and career progression within the company[118] - Niu Jie's role as Vice President and Party Committee Secretary since 2018, with extensive experience in marketing and management roles since 2005[118] - Tan Yongneng's background in electrical technology and human resources, currently serving as the company's Discipline Inspection Commission Secretary and Administrative Director[118] - Yan Changqi's expertise in mechanical manufacturing and his current position as Vice President, with a history of managing various business units including the railway division[118] - Gong Tong's specialization in power traction and drive control, currently holding the position of Vice President with a focus on urban rail and new industry development[118] - Yu Kang's mechanical and electronic engineering background, currently serving as Vice President with experience in manufacturing and general management roles[118] - Liu Zehua has been serving as the company's Vice President and CFO since March 2020[119] - Mei Wenqing has been serving as the company's Vice President and Chief Engineer since November 2, 2020[119] - Yi Weihua has been serving as the company's Vice President since November 2, 2020[119] - Cao Weichen has been serving as the company's Vice President since November 2, 2020[119] - Li Peng has been serving as the company's Vice President since February 23, 2022[119] - Wang Yeliu, born in 1982, holds a Master's degree in Business Administration from Central South University and is currently the Vice President of Hunan CRSC[121] - Zhu Hongjun, born in 1971, holds a Master's degree in Vehicle Engineering from Lanzhou Jiaotong University and is currently the Vice President of Baoji CRRC Times[121] - Zhang Dongfang, born in 1980, holds a Bachelor's degree in Electrical Engineering and Automation from East China Jiaotong University and is currently the Vice President of CRRC Times Electric[121] - Lü Yang, born in 1982, holds a Master's degree in Control Theory and Control Engineering from Chongqing University of Posts and Telecommunications and is currently the Vice President of Ningbo CRRC Times[121] - Liu Liangjie, born in 1982, holds a Bachelor's degree in Electrical Engineering from Zhejiang University and is currently the Director of the UK R&D Center[121] - Zhang Dinghua, born in 1979, holds a Ph.D. in Control Science and Engineering from Central South University and is currently the Vice President of CRRC[121] - Zhang Min has been serving as the Deputy General Manager of Shanghai CRRC SMD since July 2021[123] - He Wen has been the Deputy General Manager of the company's Equipment Technology Division since March 2020[123] - Liu Yongjiang has been the Director of the Rail Transit Technology Center since November 2020[123] - Liu Yong has been the Director of the Data and Intelligent Technology Center since November 2020[123] - Li Donglin has been the Chairman and Party Secretary of CRRC Zhuzhou Institute since May 2018[125] - Liu Ke'an has been the Director and General Manager of CRRC Zhuzhou Institute since August 2020[125] - Shang Jing has been the Vice Chairman of Zhuzhou Guochuang Rail Technology Co., Ltd. since June 2020[125] - Zhang Xinning has been the Chief Engineer of CRRC since June 2015[125] - Li Lue has been the Deputy General Manager and CFO of CRRC Zhuzhou Institute since May 2019[125] - Tan Yongneng has been the Chairman of Shanghai CRRC Hange Ship and Marine Engineering Co., Ltd. since July 2021[125] - Total remuneration for directors, supervisors, and senior management at the end of the reporting period was RMB 1,737.32 million[130] - Total remuneration for core technical personnel at the end of the reporting period was RMB 796.21 million[130] - Xu Shaolong resigned as Vice President and core technical personnel due to work transfer on January 25, 2022[131] - Li Peng was appointed as Vice President on February 23, 2022, following the approval at the 19th meeting of the 6th Board of Directors[131] - The 8th meeting of the 6th Board of Directors on March 30, 2021, approved 23 proposals including the 2020 annual financial report and profit distribution plan[132] - The 9th meeting of the 6th Board of Directors on April 9, 2021, reviewed and approved the company's internal control evaluation report and audit reports for the past three years[132] - The company held 10 board meetings in 2021, with all directors attending each meeting either in person or via teleconference[135] - The board approved the 2021 Q1 financial review report and unaudited performance announcement for the period ending March 31, 2021[134] - The board approved the 2021 interim financial report and performance announcement for the period ending June 30, 2021[134] - The board approved the 2021 Q3 report on October 29, 2021[134] - The audit committee reviewed and approved the 2020 annual report and proposed the appointment of the 2021 audit firm on March 26, 2021[140] - The audit committee reviewed and approved the 2021 interim financial report and performance announcement on August 9, 2021[140] - The audit committee reviewed and approved the 2021 Q3 report and 2021 audit plan on December 23, 2021[140] - The strategic committee reviewed the 2020 annual strategic committee work report and 2021 investment budget on March 30, 2021[138] - The board approved the 2021 semi-annual profit distribution plan on October 12, 2021[134] - The board approved the 2021-2023 annual routine related-party transactions on August 31, 2021[134] - Total number of employees in the parent company and major subsidiaries is 7,733, with 3,513 in the parent company and 4,220 in major subsidiaries[148] - Number of technical personnel is 4,560, including 2,728 R&D personnel[148] - Number of employees with a master's degree or above is 1,521, and 4,717 with a bachelor's degree[148] - Overseas employees total 501 as of December 31, 2021[148] - The company has established a salary determination and growth mechanism linked to market conditions and corporate performance[148] - The company's salary policy emphasizes incentives for scientific and technical talents[148] - The company's board of directors has a diversified policy, considering factors such as gender, age, cultural background, and professional experience[146] - The nomination committee is responsible for identifying suitable candidates for board and senior management positions[145] - The risk control committee held two meetings in 2021 to review risk strategies and internal control reports[143] - The remuneration committee held two meetings in 2021 to