Financial Performance - For the year ended December 31, 2021, the total sales revenue was approximately RMB 1,462,235,000, an increase of 11.0% compared to RMB 1,317,660,000 for the year ended December 31, 2020[10]. - The net profit attributable to shareholders for the year ended December 31, 2021, was approximately RMB 51,518,000, a decrease of 1.8% from RMB 52,449,000 for the year ended December 31, 2020[20]. - Gross profit for the year ended December 31, 2021, was approximately RMB 166,180,000, an increase of 2.7% from RMB 161,784,000 in 2020[14]. - The gross profit margin decreased to approximately 11.4% for the year ended December 31, 2021, down from 12.3% in 2020[15]. - The group's revenue for the year ended December 31, 2021, was RMB 1,462,235,000, representing an increase of 10.9% compared to RMB 1,317,660,000 in 2020[43]. - The net profit for the year was RMB 51,883,000, a decrease of 1.7% from RMB 52,775,000 in 2020[43]. - The group reported a pre-tax profit of RMB 53,798,000, down from RMB 56,747,000 in the previous year[43]. - The company reported a total comprehensive income of RMB 53,953,000 for the year, compared to RMB 51,153,000 in 2020, indicating a growth of 5.5%[167]. Expenses and Costs - Research and development expenses for the year ended December 31, 2021, were approximately RMB 71,014,000, up from RMB 58,216,000 in 2020[9]. - Selling expenses increased by approximately 27.2% to about RMB 70,796,000 for the year ended December 31, 2021, compared to RMB 55,665,000 in 2020[16]. - Financial costs increased by approximately 29.5% to about RMB 17,657,000 for the year ended December 31, 2021, compared to RMB 13,638,000 in 2020, primarily due to increased bank borrowings[19]. - Employee compensation costs totaled approximately RMB 260,896,000, compared to RMB 212,538,000 in 2020, marking an increase of 22.7%[24]. - Distribution expenses increased to RMB 70,796,000 from RMB 55,665,000, reflecting a rise of 27.1%[165]. - Management expenses decreased slightly to RMB 55,412,000 from RMB 57,267,000, showing a reduction of 3.2%[165]. - The company reported a significant increase in depreciation and amortization expenses, rising to RMB 115,938,000 from RMB 98,876,000 in 2020[176]. Assets and Liabilities - As of December 31, 2021, total equity was approximately RMB 780,686,000, an increase from RMB 735,022,000 in 2020, representing a growth of 6.5%[21]. - Current assets amounted to RMB 1,061,593,000, up from RMB 925,309,000 in 2020, indicating a growth of 14.7%[21]. - The total liabilities were RMB 1,036,526,000, with current liabilities at RMB 998,194,000, which increased from RMB 861,675,000 in 2020, reflecting a rise of 15.9%[21]. - The group's total assets as of December 31, 2021, were RMB 1,817,212,000, compared to RMB 1,603,153,000 in 2020, reflecting a growth of 13.4%[43]. - Non-current assets increased to RMB 755,619,000 in 2021 from RMB 677,844,000 in 2020, representing an increase of approximately 11.5%[169]. - Current liabilities increased to RMB 998,194,000 in 2021, up from RMB 861,675,000 in 2020, which is an increase of approximately 15.9%[171]. - The company's total equity increased to RMB 780,686,000 in 2021 from RMB 735,022,000 in 2020, reflecting a growth of approximately 6.2%[171]. Strategic Initiatives - The company plans to establish production lines in Mexico and Serbia to serve the Americas and European markets, enhancing its competitive advantage[9]. - The company aims to strengthen its core technology advantages and improve production efficiency through increased automation and process enhancements[9]. - The company has established wholly-owned subsidiaries in Mexico and Serbia to produce and sell automotive parts molds, indicating a strategic expansion into the Americas and Europe[32]. - The company aims to enhance product quality and expand its customer base by leveraging its expertise in mold manufacturing and automation technologies[30]. - The company has invested significantly in automation equipment and is focused on improving production efficiency and reducing labor costs[30]. - The company is actively seeking new customers while maintaining its existing client base to mitigate risks associated with fluctuating growth rates and profit margins[34]. Corporate Governance - The company has a significant shareholder structure, with Masuda-san and Masuda Toshimitsu each holding 36.65% of the company's issued share capital, totaling 233,316,864 shares[63]. - The company has a public float of at least 25% of its total issued share capital as of the report date[72]. - The audit committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ending December 31, 2021[74]. - The company has adopted a code of conduct for securities trading by directors, which complies with the standards set out in the listing rules[73]. - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors, maintaining independence as per listing rules[85]. - The board held five meetings during the year to review business strategies and financial performance[85]. - The company is committed to high standards of corporate governance, aligning with the long-term interests of shareholders[83]. Risk Management - The company has implemented a risk management strategy to address financial risks, including foreign currency, interest rate, credit, and liquidity risks[36]. - The board is responsible for reviewing and maintaining adequate risk management and internal control systems to safeguard shareholder interests[117]. - The board believes that the existing risk management and internal control systems are robust and sufficient to protect the interests of shareholders and the group's assets[117]. - The group recognizes control over subsidiaries when it has the power to govern their financial and operating policies[190]. - The group reassesses control over an investee if any of the control factors change[190]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[132]. - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with disclosure requirements[132]. - The audit committee assists the board in overseeing the financial reporting process and the quality of financial disclosures[111]. - The company emphasizes transparency and timely disclosure of performance through interim and annual announcements[111]. - The company has established a framework for internal controls and financial reporting, which is monitored by the audit committee[74].
YUSEI(00096) - 2021 - 年度财报