WTJX(BJ:830839)2022-05-31 16:00Corporate Achievements and Recognition - In March 2021, the company obtained the Equipment Manufacturing Qualification Certificate from the Central Military Commission, allowing it to independently undertake military equipment business, enhancing its competitiveness in the military sector[5]. - In September 2021, the company was recognized as a "Specialized, Refined, Characteristic, and Innovative 'Little Giant' Enterprise" by the Ministry of Industry and Information Technology, valid for three years from July 1, 2021, to June 30, 2024[6]. - The company has been recognized for its research and development capabilities, which are essential for meeting military equipment procurement standards[5]. - The company is recognized as a high-tech enterprise with a focus on developing proprietary technologies and patents in hydraulic cylinder production[45]. Financial Performance - The company's operating revenue for 2021 was CNY 335,626,283.33, representing a 5.58% increase compared to CNY 317,889,137.69 in 2020[30]. - The net profit attributable to shareholders for 2021 was CNY 42,660,494.59, a decrease of 29.39% from CNY 60,413,505.17 in 2020[30]. - The gross profit margin for 2021 was 26.14%, down from 30.27% in 2020[30]. - Total assets increased by 11.13% to CNY 527,718,275.93 in 2021, compared to CNY 474,882,248.86 in 2020[32]. - Total liabilities rose by 43.95% to CNY 111,694,668.38 in 2021, up from CNY 77,592,823.35 in 2020[32]. - The company's cash flow from operating activities for 2021 was CNY 29,807,503.10, a significant increase of 1,535.84% from CNY 1,822,152.16 in 2020[34]. - The weighted average return on equity for 2021 was 10.30%, down from 22.45% in 2020[30]. - The company's inventory turnover rate for 2021 was 2.91, down from 3.74 in 2020[34]. Customer and Market Dynamics - The top five customers accounted for 63.40% of the company's sales, indicating a high customer concentration risk[14]. - The company has established strong relationships with specialized vehicle manufacturers and coal mining equipment manufacturers, which are crucial for maintaining its market position[14]. - Revenue from overseas sales of special dump truck cylinders increased by 103.65%, while revenue from military equipment cylinders grew by 155.66%[50]. - The coal mining industry saw a record coal production of 4.13 billion tons in 2021, with a year-on-year growth of 5.7%, driving demand for mining equipment[58]. - Sales of excavating machinery reached 342,800 units in 2021, reflecting a year-on-year growth of 4.6%, despite a market adjustment in the latter part of the year[59]. Research and Development - The company emphasizes continuous technological innovation and product development to maintain its competitive edge in the industry[14]. - The company's R&D expenses increased by 8.4% in 2021, with 6 new utility model patents granted, focusing on electric cylinders and other high-end products[51]. - The company participated in 12 R&D projects during the reporting period, with 9 completed and 3 ongoing, focusing on new products and applications in hydraulic cylinders[100][101]. - The company intends to maintain R&D investment to meet market demands, including the development of hydraulic components for wind power and military applications[116]. Risks and Challenges - The company faces risks from fluctuating raw material prices, particularly steel, which significantly impacts production costs[14]. - The company faced challenges from rising costs of raw materials and logistics, impacting production and profitability[49]. - The company recognizes the uncertainty in economic conditions that may impact the demand for hydraulic products, linked to macroeconomic trends[118]. - The company has a significant accounts receivable risk but maintains strong relationships with major clients, minimizing default risk[123]. Employee and Governance - The total number of employees increased from 354 to 432, with a net addition of 78 employees during the reporting period[180]. - The company implemented a stock incentive plan, with 675,000 shares (15% of total restricted stock) released from restrictions in May 2021[179]. - The company has established a robust internal control management system to ensure compliance with legal and regulatory requirements[193]. - The governance structure of the company is deemed effective, providing adequate protection and equal rights to all shareholders[194]. Shareholder and Capital Management - The total number of unrestricted shares increased from 16,594,000 (20.98%) to 29,743,500 (24.79%) during the reporting period[149]. - The total share capital rose from 79,100,000 to 120,000,000 shares, reflecting a significant increase in equity[149]. - The company plans to distribute a cash dividend of 1.5 per 10 shares and no stock bonus or capital increase[166]. - The company has returned 8,000,000 RMB of temporarily idle raised funds to the dedicated account as scheduled[160].