Inventronics (Hangzhou)(300582)2022-03-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,416,211,287.11, representing a 34.48% increase compared to ¥1,053,074,403.34 in 2020[22]. - The net profit attributable to shareholders for 2021 was ¥181,977,783.46, a 12.56% increase from ¥161,677,893.03 in 2020[22]. - The net profit after deducting non-recurring gains and losses was ¥162,879,518.78, up 15.01% from ¥141,616,219.01 in 2020[22]. - The company's total assets at the end of 2021 were ¥2,361,225,029.79, a 19.27% increase from ¥1,979,719,533.55 at the end of 2020[22]. - The net assets attributable to shareholders increased by 16.30% to ¥1,430,616,873.92 at the end of 2021 from ¥1,230,087,327.70 at the end of 2020[22]. - The basic earnings per share for 2021 was ¥0.62, a 10.71% increase from ¥0.56 in 2020[22]. - The diluted earnings per share for 2021 was also ¥0.62, reflecting a 12.73% increase from ¥0.55 in 2020[22]. - The net cash flow from operating activities for 2021 was ¥23,767,795.99, down 84.21% from ¥150,492,295.75 in 2020[22]. - The company reported a weighted average return on equity of 13.69% for 2021, slightly down from 14.12% in 2020[22]. - The company experienced a significant decrease in cash flow from operations, indicating potential liquidity challenges moving forward[22]. Dividend Distribution - The company plans to distribute a cash dividend of 0.79 RMB per 10 shares to all shareholders, based on a total of 296,667,279 shares[5]. - The total amount of cash dividends distributed in the current period was 23,436,715.04 CNY, which accounted for 100% of the total profit distribution[189]. - The proposed cash dividend distribution is CNY 0.79 per 10 shares, totaling CNY 23,436,715.04, based on 296,667,279 shares[192]. Risk Management - The company acknowledges risks including intensified market competition, fluctuations in raw material prices, and changes in the international economic situation[5]. - The company has established a risk management framework to address potential risks in its operations[5]. Governance and Compliance - The report emphasizes the importance of accurate financial reporting, with the responsible parties confirming the authenticity and completeness of the financial statements[4]. - The company has a comprehensive governance structure, with all board members present for the meeting to review the annual report[5]. - The company is committed to adhering to the disclosure requirements related to the LED industry chain as per the Shenzhen Stock Exchange guidelines[5]. - The financial report is subject to audit by KPMG Huazhen, ensuring compliance with regulatory standards[10]. - The company has established sound business supervision and internal control mechanisms for its overseas subsidiaries, mitigating significant impairment risks[99]. - The company has implemented strict internal controls to prevent insider trading and information leaks, maintaining investor trust[145]. Market Trends and Expansion - The global LED lighting market size grew from 59.26 billion in 2021, with a projected CAGR of 12.5% from 2021 to 2028[34]. - The global LED plant lighting market size increased from 1.68 billion in 2021, with an expected CAGR of 29.3% reaching 11.29 billion in 2020 to $34.17 billion by 2025, with a CAGR of 24.79% from 2021 to 2025[38]. - The company is focusing on expanding into new application areas such as smart lighting, plant lighting, and health lighting, aligning with market trends[36]. - The company has established overseas factories in Mexico and India to enhance global operational capabilities and meet market demands in North America, the Middle East, Africa, and India[49]. Research and Development - The company's R&D investment reached 77.99 million CNY in 2021, reflecting a year-over-year increase of 15.25%, with the addition of 1 invention patent and 8 utility model patents[66]. - The company has launched a new series of LED drivers specifically designed for plant lighting, including power levels of 320W, 680W, and 880W, which are now in mass production[88]. - The company has implemented NFC programming technology in its LED drivers, allowing for convenient parameter adjustments and data collection capabilities[89]. - The company has maintained a consistent R&D expenditure with no capitalized R&D expenses reported in the last three years[90]. Supply Chain and Production - The company employs a combination of pull and push supply chain management strategies to ensure raw material supply and maintain competitive pricing[47]. - The production model has shifted to a supply-driven approach due to raw material shortages, while actively managing supply and alternative sourcing[48]. - The company has successfully established a global marketing and service network covering over 100 countries, enhancing customer confidence and loyalty[53]. Employee and Management - The company has a performance-based compensation system to encourage employee efficiency and innovation[184]. - The total remuneration for directors, supervisors, and senior management in the reporting period amounted to CNY 10.8457 million[170]. - The company has established a comprehensive training system to enhance employee skills and career development[185]. - The total number of employees at the end of the reporting period was 968, with 347 in the parent company and 621 in major subsidiaries[183]. Strategic Initiatives - The company is actively pursuing opportunities for mergers and acquisitions to strengthen its market position[157]. - The company plans to continue focusing on the LED driver power business while exploring new applications in plant lighting, smart lighting, and health lighting[126]. - The company aims to enhance its global competitiveness and risk resilience by continuing to implement a globalization strategy, including establishing production bases in Asia-Pacific and North America[134].