Company Overview - Trigiant Group Limited is a major manufacturer in China for feeder series, optical cable series, and related products, focusing on research, development, and sales[9]. - The company expanded its telecommunications business by acquiring 65% of Jiangsu Trigiant Optical Communication Co., Ltd. in 2014 and later acquired the remaining interest in 2017[9]. - In 2018, Trigiant Group acquired 87.5% of Jiangsu Trigiant Sensing Technology Co., Ltd., making it a wholly-owned subsidiary[9]. - Major customers include China Mobile, China Unicom, China Telecom, and China Tower, as well as major telecom equipment manufacturers like ZTE and Huawei[10]. - The company introduced a new product line of flame-retardant soft cables in 2010, which has been well received by customers[9]. - Trigiant's registered trademark "Trigiant Technology" is recognized as a "famous trademark" in China by the State Administration for Industry and Commerce[9]. - The company has a strong focus on market expansion within the telecommunications industry, leveraging its established product lines[9]. Financial Performance - Trigiant Group's financial summary and performance metrics are detailed in the annual report, highlighting growth and strategic initiatives[3]. - Total revenue for 2021 was RMB 2,862,456 thousand, a slight decrease from RMB 2,873,078 thousand in 2020[43]. - The profit attributable to owners for 2021 was RMB 207,467 thousand, compared to a loss of RMB (139,364) thousand in 2020[43]. - Gross profit margin decreased to 14.8% in 2021 from 17.8% in 2020[43]. - The company reported a net cash inflow from operating activities of RMB 47,769 thousand in 2021, down from RMB 82,514 thousand in 2020[43]. - The inventory turnover days increased to 30 days in 2021 from 22 days in 2020[43]. - The group recorded a profit of approximately RMB 207.5 million for the year 2021, compared to a loss of RMB 139.4 million in 2020, marking a significant turnaround[55]. - Total revenue slightly decreased by approximately RMB 10.6 million to RMB 2,862.5 million, with the revenue from the flame-retardant soft cable series increasing by approximately RMB 262.1 million, offsetting declines in other product lines[59]. - The flame-retardant soft cable series accounted for about 42.3% of total revenue, with a year-on-year increase of 27.6% to approximately RMB 1,210.2 million[60]. - The revenue from the feeder series decreased by approximately 19.3% to about RMB 968.2 million, primarily due to delays in 5G equipment tenders[61]. - The average price of copper, a key raw material, surged by approximately 40.6% during the year, impacting overall gross profit which fell by about 17.1% to RMB 423.9 million[59]. - The overall gross margin for 2021 was approximately 14.8%, a decrease of 3.0 percentage points compared to 2020[59]. Product Development and Market Trends - The company is committed to continuous research and development of new technologies and products to enhance its market position[9]. - The company has successfully developed and launched multiple new products for 5G communication, including ultra-low loss feeder cables and optical-electrical hybrid cables for indoor 5G signal coverage[22]. - The demand for optical-electrical hybrid cables is expected to increase significantly as the construction of 5G and gigabit optical networks accelerates[29]. - The IoT market in China reached approximately CNY 2.14 trillion in 2020, with an expected growth rate of over 18% annually for the next three years[27]. - By the end of 2025, the number of 5G users in China is projected to exceed 830 million, making it the largest globally, with total 5G connections surpassing 800 million[28]. - The company aims to deepen cooperation with the three major telecom operators and actively participate in tenders from China Broadcasting, China Tower, and major equipment manufacturers to capture a significant share of the 5G construction boom[28]. - The company plans to establish its own technical sales system for millimeter-wave products and continue to enhance its technical capabilities in this area[31]. - The company aims to leverage the growing demand for small base stations, with a projected global market size of USD 25 billion over the next five years[51]. Governance and Corporate Structure - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors[129]. - The company has adopted the corporate governance code as its own governance code, ensuring compliance with the relevant rules[127]. - All independent non-executive directors confirmed their independence and have relevant experience in audit, accounting, and financial management[133]. - The company has established a corporate governance committee to review and recommend governance policies[127]. - The company aims to maximize shareholder interests through transparent governance practices[127]. - The roles of the Chairman and CEO are not separated, with Mr. Qian Lirong holding both positions since December 31, 2019, ensuring consistent leadership and effective strategic planning[139]. - The Audit Committee held four meetings during the year ended December 31, 2021, primarily reviewing the group's risk management and financial reporting processes[144]. - The company has a Nomination Policy in place since January 1, 2020, to enhance transparency and accountability in the director nomination process[150]. Environmental, Social, and Governance (ESG) Initiatives - The governance structure includes a board of directors responsible for overseeing environmental, social, and governance (ESG) matters, ensuring alignment with strategic growth[171]. - The ESG working group collects and analyzes data to monitor and evaluate the company's ESG performance, ensuring compliance with relevant laws and regulations[172]. - Key ESG issues identified include greenhouse gas emissions, waste management, water consumption, and energy consumption, which are prioritized based on stakeholder feedback[181]. - The company is committed to corporate social responsibility, integrating ESG considerations into decision-making processes to create value for shareholders[171]. - Total nitrogen oxides (NOX) emissions decreased from 17.05 kg in 2020 to 15.51 kg in 2021, representing a reduction of approximately 9.05%[195]. - Total greenhouse gas emissions increased from 7,418.36 tons CO2 equivalent in 2020 to 10,470.76 tons CO2 equivalent in 2021, marking an increase of about 41.5%[200]. - The company has established an environmental management system certified under GB/T24001–2016/ISO14001:2015 standards[189]. - The company received honors such as "Green Enterprise of Yixing City" and "Ecological Civilization Demonstration Unit of Yixing City" for its environmental protection efforts[190].
俊知集团(01300) - 2021 - 年度财报