Geron(002722)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥3,149,629,670.31, representing a 33.08% increase compared to ¥2,366,805,499.78 in 2020[22]. - The net profit attributable to shareholders for 2021 was ¥128,263,531.67, a significant increase of 281.07% from ¥33,658,514.72 in 2020[22]. - The net profit after deducting non-recurring gains and losses was ¥120,653,717.83, reflecting a 370.55% increase compared to ¥25,641,004.32 in 2020[22]. - The basic earnings per share for 2021 was ¥0.73, up 284.21% from ¥0.19 in 2020[22]. - The company's total assets at the end of 2021 were ¥3,018,220,999.34, a slight increase of 0.70% from ¥2,997,320,589.33 at the end of 2020[23]. - The net assets attributable to shareholders increased by 5.83% to ¥2,009,276,060.18 at the end of 2021, compared to ¥1,898,534,333.16 at the end of 2020[23]. - The net cash flow from operating activities for 2021 was ¥158,424,758.69, a decrease of 43.71% from ¥281,440,242.59 in 2020[22]. - The weighted average return on equity for 2021 was 6.57%, an increase of 4.80 percentage points from 1.77% in 2020[22]. - Total revenue for 2021 reached ¥3,149,629,670.31, representing a year-on-year increase of 33.08% compared to ¥2,366,805,499.78 in 2020[56]. - Revenue from stainless steel decorative plate processing accounted for 75.57% of total revenue, with a year-on-year growth of 34.11% from ¥1,774,681,181.07 to ¥2,380,073,338.86[56]. - Domestic sales contributed ¥3,031,107,789.98, making up 96.24% of total revenue, with a year-on-year increase of 32.71%[56]. Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares (including tax) to all shareholders[4]. - The company distributed a cash dividend of RMB 175,477,162 (including tax), amounting to RMB 1.00 per share for every 10 shares held, as approved in the 2020 annual general meeting[143]. - The total distributable profit for the year is reported at 660,061,373.63 yuan[145]. - The company did not propose a cash dividend distribution plan for the reporting period, despite having positive distributable profits[144]. Research and Development - The company reported a significant focus on the research and development of new products and technologies, particularly in the stainless steel decorative materials sector[21]. - The company has established a comprehensive research system for textile carding equipment, recognized as a "Needle Cloth Product R&D Center" by the China Textile Machinery Association, and holds dozens of patents[47]. - Research and development expenses rose to ¥24,056,006.49, marking a 30.54% increase year-over-year, reflecting the company's commitment to enhancing product competitiveness[71]. - The company is in the implementation phase for several key R&D projects, including the development of specialized needle cloth for non-cotton fibers and high-end combing rollers[68]. - The company has established a collaborative R&D center with Nanjing University to enhance its product development capabilities in stainless steel surface treatment and nano-coating technology[51]. - The company plans to continue its investment in research and development to support future growth initiatives[122]. Market and Business Strategy - The company’s main business segments include the development, production, and sales of textile combing equipment and stainless steel decorative materials[21]. - The company is engaged in the production and sales of textile combing equipment and stainless steel decorative panels, indicating a focus on specialized manufacturing sectors[32]. - The company aims for a 2022 revenue target of CNY 3,172.94 million and a net profit target of CNY 130.14 million[98]. - The company plans to enhance its high-end stainless steel decorative board projects and optimize its industry layout to improve overall asset returns[98]. - The company intends to explore new business opportunities in hydrogen energy and lithium battery-related core components[98]. - The company will focus on digital transformation to enhance organizational capabilities and operational efficiency[98]. - The company plans to actively expand its overseas market share, particularly in the textile carding equipment sector[95]. Risk Management - The company has identified risks related to raw material price fluctuations and liquidity, which may impact future performance[5]. - The company faces risks from raw material price fluctuations, particularly in stainless steel and special steel, which significantly impact production costs[99]. - Liquidity risk is a concern due to significant capital requirements for project development; the company plans to diversify funding sources and enhance risk control to mitigate this risk[100]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments due to macroeconomic uncertainties[5]. - The company is expanding its scale, which increases the complexity of group management and poses risks to operational control[99]. - The company faces risks related to human resources as it expands its business and needs to attract and retain talent through competitive compensation and promotion mechanisms[100]. Governance and Compliance - The company has a comprehensive governance structure, including a board of directors and supervisory board, ensuring accountability and transparency[4]. - The company has established a robust internal control system and governance structure in compliance with relevant laws and regulations, ensuring operational transparency[105]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements for board composition[106]. - The company has implemented a performance evaluation mechanism and talent management strategies to meet its multi-level talent needs[100]. - The company emphasizes the importance of a strong corporate culture to enhance employee commitment and alignment with business goals[100]. - The company has established various committees within the board to effectively oversee strategic, audit, and compensation matters, with independent directors leading most committees[106]. - The company has maintained a consistent internal control framework that meets the requirements set by regulatory authorities[148]. - The company has committed to fair and transparent practices in related party transactions to protect the interests of shareholders[170]. - The company has established a clear ownership structure, ensuring that all assets are under its control and independently operated[172]. Employee and Social Responsibility - The total number of employees at the end of the reporting period was 2,216, with 1,501 in production, 128 in sales, 176 in technology, 85 in finance, and 326 in administration[139]. - The company has established a scientific compensation and performance management system, with performance assessment targets set according to job characteristics[141]. - The company conducts annual health check-ups for employees to ensure their physical well-being and has improved health check standards[162]. - The company actively engages in social responsibility initiatives, including funding local schools and supporting community infrastructure projects[166]. - The company has established employee mutual aid and assistance funds to support employees in financial difficulties[162]. - The company organizes numerous technical exchange meetings annually to foster collaboration and innovation within the industry[164]. Environmental Responsibility - The company has established relevant environmental protection systems and measures for waste gas, wastewater, solid waste, and noise control, which are operating well[157]. - The company has passed environmental impact assessments for its construction projects and received approval from local authorities[159]. - The company has installed online automatic detection equipment at pollutant discharge outlets, connected to the national environmental protection platform[159]. - The company reported no administrative penalties due to environmental issues during the reporting period[159]. - The company implements clean production practices and adheres to environmental regulations to minimize negative impacts on society and the environment[165].