M&S ELECTRONICS(688311)2022-04-22 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 134,431,782.79 for the year 2021, with a distributable profit of RMB 93,022,942.29 as of December 31, 2021[8]. - The proposed cash dividend is RMB 3.6 per 10 shares (including tax), totaling RMB 41,064,906.96, which represents 30.55% of the net profit attributable to shareholders[8]. - The company's operating revenue for 2021 was approximately CNY 475.79 million, representing a 12.42% increase compared to CNY 423.23 million in 2020[31]. - The net profit attributable to shareholders for 2021 was approximately CNY 134.43 million, a 25.58% increase from CNY 107.05 million in 2020[31]. - The net cash flow from operating activities for 2021 was approximately CNY 78.19 million, up 13.17% from CNY 69.09 million in 2020[31]. - The company's total assets at the end of 2021 were approximately CNY 2.51 billion, an increase of 17.66% from CNY 2.14 billion at the end of 2020[31]. - The company's net assets attributable to shareholders at the end of 2021 were approximately CNY 1.78 billion, an increase of 8.17% from CNY 1.64 billion at the end of 2020[31]. - The basic earnings per share for 2021 were CNY 1.18, an increase of 8.26% compared to CNY 1.09 in 2020[34]. - The company reported a weighted average return on net assets of 7.78% in 2021, down from 10.66% in 2020[34]. Operational Risks and Governance - The company has detailed various operational risks in the report, which can be found in the "Management Discussion and Analysis" section[5]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[13]. - The company does not have any special arrangements for corporate governance[10]. - The company has not violated decision-making procedures for external guarantees[13]. - The company emphasizes that forward-looking statements do not constitute a substantive commitment to investors and advises caution regarding investment risks[12]. - The company has established a comprehensive quality management system compliant with ISO9001:2008 and other standards, ensuring quality control throughout the product lifecycle[93]. - The company has maintained compliance with governance regulations, with no significant discrepancies noted in its governance practices[161]. Research and Development - Research and development expenses accounted for 13.15% of operating revenue in 2021, slightly down from 13.19% in 2020[34]. - The company has established a robust R&D system and a strong research team, ensuring continuous innovation in satellite application technologies[46]. - The R&D model is based on independent development, with dedicated centers for satellite navigation and communication, focusing on market-driven product development[53]. - Total R&D investment reached ¥62,549,678.21, an increase of 12.06% compared to the previous year, with R&D expenses accounting for 13.15% of operating revenue[77]. - The company applied for 49 new intellectual property rights this year, with 41 granted, including 4 invention patents and 31 utility model patents[77]. - The company has focused on R&D in advanced technologies such as millimeter-wave power synthesis and low-complexity wireless image transmission systems[82]. Market and Product Development - The company plans to continue expanding its market presence and invest in new product development[31]. - The company plans to enhance its business strategy by focusing on satellite navigation and communication while exploring new applications in civilian products[43]. - The company is focusing on the satellite communication sector, which is still in its early stages in China, and has developed a range of products across various platforms[93]. - The company aims to expand its market presence in the civilian sector, leveraging technologies accumulated in the defense sector, particularly in satellite navigation and communication[152]. - The company is actively exploring low Earth orbit satellite systems, which are expected to stimulate various IoT industries and enhance market competitiveness[152]. Financial Management and Investments - The total liabilities increased by 51.21% due to new bank loans for fixed assets[134]. - The company reported a 79.23% increase in undistributed profits, amounting to 300,295,822.42 RMB[134]. - The company has a total of 510,350,220.40 RMB in restricted assets, primarily due to long-term loan pledges[137]. - The total amount of equity investment by the company during the reporting period was 190.6492 million yuan[141]. - The ongoing construction project in Chengdu has incurred a total investment of 457.448 million yuan, accounting for 94.02% of the budget[142]. Shareholder Engagement and Corporate Governance - The company actively engages with shareholders and investors through various channels, ensuring fair treatment and protection of their rights[161]. - The company held its first extraordinary general meeting of 2021 on May 6, 2021, with all resolutions passed without any objections[161]. - The company has established specialized committees, including an audit committee, nomination committee, compensation and assessment committee, and strategic committee[186]. - The company confirmed compliance with corporate governance and shareholder meeting resolutions[199]. - Minority shareholders had sufficient opportunities to express their opinions and their legal rights were adequately protected[199]. Challenges and Risks - The company faces risks related to core competitiveness, including potential failures in technology development and the impact of personnel changes on core technology protection[96]. - The company is exploring international markets but faces challenges due to limited sales channels and understanding of foreign market practices[100]. - The company is exposed to foreign exchange risks due to the presence of USD-denominated funds, which may impact its financial results[101]. - There is a potential risk of inventory impairment if the company cannot effectively control costs or if there are significant fluctuations in raw material prices[100].