Luohe Letone Hydraulics Technology (BJ:832225)2022-05-31 16:00Financial Performance - The company's operating revenue for 2021 was RMB 331,564,472.03, representing a 16.12% increase compared to RMB 285,541,492.86 in 2020[29]. - The net profit attributable to shareholders for 2021 was RMB 30,141,132.83, a decrease of 27.49% from RMB 41,569,218.44 in 2020[29]. - The gross profit margin for 2021 was 25.78%, down from 34.01% in 2020[29]. - The net cash flow from operating activities for 2021 was RMB 54,506,572.05, reflecting a 61.87% increase from RMB 33,672,811.61 in 2020[32]. - The company's total assets increased by 31.63% to RMB 584,610,368.06 at the end of 2021, compared to RMB 444,124,341.76 at the end of 2020[30]. - The total liabilities at the end of 2021 were RMB 185,482,237.68, a 12.85% increase from RMB 164,362,409.18 at the end of 2020[30]. - The company's weighted average return on equity based on net profit attributable to shareholders was 8.16% in 2021, down from 15.92% in 2020[29]. - The company's gross margin decreased by 8.22 percentage points due to rising raw material costs, including increases of 16.73% for steel wire and 41.27% for rubber[51]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 23,823,644.53, down 7.14% compared to the preliminary report[36]. Investment and Expansion - The company plans to invest in a project to produce 40 million meters of industrial hoses annually, which will add 30 million meters of hydraulic hoses and 10 million meters of industrial pipes to its production capacity[13]. - The company invested CNY 62,410,083.01 in a new automated manufacturing project, with a completion rate of 59.88%[92]. - The company has a production capacity of approximately 19 million meters for its automated industrial hose manufacturing project, with parts already in production[51]. - The company is investing in a project to increase production capacity by 30 million meters of hydraulic hoses and 10 million meters of industrial hoses, which requires significant capital and time to implement[147]. Risks and Challenges - The company faced significant risks from rising prices of raw materials, including steel wire, rubber, and carbon black, which adversely affected its gross margin in 2021[14]. - The company is facing risks from international trade tensions and global pandemic impacts, which may affect raw material prices and operational costs[135]. - The company’s revenue from exports accounts for over 40% of its total revenue, making it vulnerable to changes in international trade policies and market conditions[12]. - The company is closely monitoring changes in export tax rebate policies, which could impact profitability, and is optimizing its export product structure accordingly[143]. - The company is facing risks from rising raw material prices, with significant increases in costs for steel wire, rubber, and carbon black, which could adversely affect operating performance[148]. Shareholder and Governance - The company's actual controllers hold a combined 45.07% of the shares, which poses a risk of concentrated control over business decisions[12]. - Major shareholders include Zhao Hongliang with 22,008,000 shares (27.05%) and Liu Xueping with 14,656,800 shares (18.02%), collectively holding 66.21% of shares among the top ten shareholders[167]. - The company has maintained its shareholder structure without any changes during the reporting period[172]. - The company has no instances of shareholders or related parties occupying or transferring company funds or assets during the reporting period[155]. - The company is enhancing governance by providing systematic training for board members and strengthening internal controls to comply with higher standards as a listed entity[140]. Research and Development - The company holds 17 invention patents and 7 utility model patents, demonstrating its strong R&D capabilities in the rubber and plastic products industry[45]. - R&D expenditure for the reporting period amounted to ¥13,587,709.29, representing 4.10% of total operating income, an increase from 3.92% in the previous year[107]. - The company has completed several R&D projects, including a high-density, high-pressure steel wire braided hose with a working pressure of 28-38MPa[111]. - The company has developed a multi-functional industrial hose that meets the standards of the China Rubber Industry Association, showcasing innovation in high-pressure applications[110]. - The company has established a collaboration with Qingdao University of Science and Technology to optimize the formulation of hydraulic rubber hoses, aiming to enhance product quality to meet or exceed domestic standards[112]. Environmental and Social Responsibility - The company is committed to environmental protection, ensuring that all pollutant emissions meet regulatory standards and investing in advanced environmental protection equipment[128]. - The company has achieved a B-level rating in environmental performance, reflecting its commitment to sustainable development[126]. - The company actively participates in charitable activities and has been recognized as an "Advanced Unit in Charitable Fundraising" by the local charity association[124]. - The company emphasizes compliance with laws and regulations, ensuring legal operations and contributing to local economic development through job creation and tax payments[125]. Employee Development - The total number of employees increased from 583 to 635, reflecting a growth of approximately 8.9%[196]. - The company emphasizes employee training through professional skill training and management culture practices, continuously improving overall employee skills[197]. - The company has established a comprehensive compensation and performance evaluation system tailored to different employee levels and positions, enhancing talent acquisition and long-term employee development[197]. - Various employee benefits include free meals, public rental housing for distant employees, and birthday gifts, aimed at increasing employee sense of belonging[197]. - The number of technical research and development personnel rose from 70 to 71, indicating a slight increase in focus on innovation[196].