Jiangyin Electrical Alloy (300697)2022-03-18 16:00Financial Performance - The company's operating revenue for 2021 was ¥2,173,856,528.84, representing a 35.32% increase compared to ¥1,606,486,263.39 in 2020[19]. - The net profit attributable to shareholders decreased by 7.97% to ¥106,335,522.14 in 2021 from ¥115,544,471.04 in 2020[19]. - The net cash flow from operating activities was negative at -¥90,081,604.59, a decline of 320.90% compared to -¥21,401,996.75 in 2020[19]. - The total assets increased by 12.79% to ¥1,443,279,520.45 at the end of 2021 from ¥1,279,618,193.23 at the end of 2020[19]. - The basic earnings per share decreased by 7.78% to ¥0.320 in 2021 from ¥0.347 in 2020[19]. - The weighted average return on equity was 11.90% in 2021, down from 13.23% in 2020[19]. - The company achieved a net profit attributable to shareholders of 106,335,522.14 CNY for the year 2021, with the parent company reporting a net profit of 146,749,539.75 CNY[157]. - The total cash dividend distributed is 53,248,000 CNY, with a distribution of 1.60 CNY per 10 shares (including tax)[155]. Market and Industry Outlook - The company’s future development outlook includes a discussion of potential major risks it may face[4]. - The company’s copper processing industry is experiencing growth, with China's copper material production reaching 2,123.5 million tons in 2021, a 3.78% increase year-on-year[31]. - During the 14th Five-Year Plan period, fixed asset investment in the power sector is expected to exceed 6 trillion yuan, driving steady growth in demand for copper processing materials[36]. - By 2025, China's automotive production scale is projected to reach approximately 35 million units, with new energy vehicles accounting for over 20% of sales, leading to an estimated copper consumption of 130,370 tons in the automotive sector, reflecting an average annual growth rate of 11.6%[37]. - The demand for copper in the power industry accounts for 46% of total copper consumption in China, with transformers, generators, and electrical wires being the primary demand components[42]. - The copper processing industry in China is experiencing a steady growth phase, with the country being the largest producer, consumer, and exporter of copper processing materials globally[37]. Production and Capacity - The company has an annual production capacity of 23,200 tons for copper busbars, positioning it as a leading manufacturer in the industry[50]. - The company is expanding its production capacity by an additional 20,000 tons through technological upgrades and facility expansions[72]. - The company secured a total of 9,200 tons of contracts for electrified railway contact lines and supporting cables, accounting for 33.06% of the total market demand in this segment[71]. - The company achieved a production plan adherence rate increase of 15% and reduced the product production cycle by 15%, resulting in a timely order delivery rate of 95%[74]. Research and Development - The company holds a total of 52 patents, including 9 invention patents, and has 5 high-tech products recognized by Jiangsu Province[73]. - Research and development expenses for 2021 amounted to CNY 31,187,355.65, an increase of 14.26% compared to the previous year[92]. - The number of R&D personnel increased by 27.27% from 66 in 2020 to 84 in 2021, with R&D personnel now making up 13.00% of the total workforce[94]. - The company is currently developing high-performance copper busbars for fast-charging battery packs, aiming for a dielectric strength of over 3000VAC and a leakage current of less than 0.5mA[93]. - Ongoing projects include the development of a 300KW electric vehicle rotor copper bar, which aims to improve energy efficiency and increase vehicle range[93]. Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and maintaining a clear separation from its controlling shareholder[118][119]. - The board of directors consists of five members, including two independent directors, ensuring compliance with governance standards and active participation in management decisions[120]. - The company has developed a performance evaluation and incentive mechanism for senior management, linking their compensation to the company's operational performance[120]. - The company emphasizes the importance of investor relations management, ensuring transparency and protecting the rights of all shareholders, especially minority shareholders[121]. - The company operates independently from its controlling shareholders in terms of assets, personnel, finance, organization, and business, maintaining a complete business system[122]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report, particularly concerning future operational risks[4]. - The company maintains a robust operation due to effective implementation of raw material hedging, mitigating the impact of raw material price fluctuations[39]. - The company has implemented hedging strategies for long-term orders to manage the risks associated with raw material price volatility, although future challenges remain if procurement and inventory management are not maintained[115]. Employee Management - The company has a total of 646 employees, with 478 in production, 84 in technical roles, and 26 in sales[151]. - The company has established a comprehensive training program to enhance employee skills and ensure alignment with business development needs[153]. - The company respects employee rights and provides a safe working environment, adhering to labor laws and improving employee welfare systems[168]. Environmental Responsibility - The company has established an environmental management system in compliance with GB/T 24001-2016/ISO 14001:2015 standards to ensure sustainable production practices[166]. - The company implemented measures to reduce carbon emissions, including the installation of photovoltaic power generation devices and energy-saving equipment updates[166]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[166]. Shareholder Relations - The company maintains a cash dividend policy that aligns with its articles of association, ensuring the protection of minority shareholders' rights[154]. - The company has established a commitment to maintain a consistent and reasonable cash dividend policy that aligns with its long-term interests and sustainable development[175]. - The company has ensured communication with minority shareholders regarding profit distribution plans through various channels[180]. Legal and Compliance - The company has not reported any significant differences in its governance practices compared to regulations set by the China Securities Regulatory Commission[121]. - The company has a comprehensive internal control system to ensure compliance with relevant laws and regulations, with no reported violations during the period[167]. - The company has not faced any bankruptcy reorganization matters during the reporting period[188].