Financial Performance - The company's revenue for the year ended December 31, 2021, was approximately RMB 1,363,645 thousand, representing an increase of about 19.4% compared to the previous year[8]. - The net profit attributable to equity shareholders of the company was approximately RMB 246,088 thousand, a decrease of about 2.4% year-on-year, resulting in earnings per share of approximately RMB 0.27[8]. - The total revenue of the company increased from approximately RMB 1,142.1 million in 2020 to about RMB 1,363.6 million in 2021, primarily due to the rise in revenue from railway fastening system products[16]. - The revenue from railway fastening system products reached approximately RMB 1,006.7 million, accounting for 73.8% of the total revenue, an increase of about 21.2% from RMB 830.6 million in 2020[14]. - The operating costs increased by approximately 28.7% from RMB 736.6 million in 2020 to about RMB 947.6 million in 2021, mainly due to increased sales volume of railway fastening system products and rising raw material costs[17]. - The gross profit from railway fastening system products increased from approximately RMB 345.8 million in 2020 to about RMB 363.6 million in 2021, although the gross margin decreased from 41.6% to 36.1% due to rising steel prices[14]. - The net profit attributable to the parent company decreased by approximately 2.4% from RMB 252.2 million in 2020 to RMB 246.1 million in 2021, with a net profit margin dropping from 22.5% to 18.2%[20]. - The total operating revenue for 2021 reached RMB 1,363,645,231.39, an increase of approximately 19.4% compared to RMB 1,142,057,595.92 in the previous year[196]. - The total comprehensive income for 2021 was RMB 248,475,774.33, a decrease of 3.3% from RMB 257,037,266.58 in the previous year[198]. Assets and Liabilities - Non-current assets amounted to RMB 1,296,395 thousand, while current assets totaled RMB 1,925,586 thousand[7]. - Total liabilities included non-current liabilities of RMB 225,466 thousand and current liabilities of RMB 635,634 thousand[7]. - As of December 31, 2021, the total assets of the group were approximately RMB 3,222.0 million, an increase of about RMB 324.0 million or approximately 11.2% compared to December 31, 2020, primarily due to an increase in accounts receivable[25]. - The total liabilities of the group as of December 31, 2021, were approximately RMB 861.1 million, an increase of about RMB 75.5 million or approximately 9.6% compared to December 31, 2020, mainly due to an increase in accounts payable and bank borrowings[26]. - The total equity of the group as of December 31, 2021, was approximately RMB 2,360.9 million, an increase of about RMB 248.5 million, primarily due to an increase in net profit for the year[26]. - The capital debt ratio of the group as of December 31, 2021, was 9.1%, compared to 13% in the previous year[26]. Market and Economic Environment - The overall economic environment in China showed resilience, with GDP surpassing RMB 110 trillion, despite the challenges posed by the pandemic[8]. - In 2022, the expected economic growth rate in China is projected to slow down to around 4.5% due to the impact of the pandemic and the easing of monetary policies[9]. - The company continues to monitor market trends and adjust strategies accordingly to maintain growth and stability[8]. - The management remains optimistic about future performance, focusing on enhancing operational efficiency and exploring new market opportunities[8]. Production and Operations - The company implemented strict pandemic prevention measures to ensure employee safety and minimize operational disruptions caused by COVID-19[8]. - The company adjusted its production and operational strategies to mitigate the impact of the pandemic, achieving stable performance throughout the year[8]. - The company aims to maintain its leading position in the railway fastening market by enhancing product quality and expanding its sales network for railway sleepers[10]. - The company plans to actively broaden its customer base for welding wire products, promoting business diversification and high-quality development[10]. - The company will continue to leverage opportunities in the railway construction sector to ensure the safety, stability, and efficiency of railway operations[12]. Research and Development - The company's R&D expenses increased from approximately RMB 42.3 million in 2020 to RMB 44.6 million in 2021, accounting for 3.7% and 3.3% of total revenue respectively[19]. - The company is focused on the development of new products and technologies to maintain its competitive edge in the market[40]. - The company has established a procurement control procedure to ensure that suppliers meet quality standards, with a focus on maintaining a stable supply chain[164]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. - The board of directors consists of nine members, including three independent non-executive directors, ensuring compliance with listing rules[90]. - The supervisory board confirmed that the company's internal control systems are effective and have not identified any significant deficiencies in design or execution[78]. - The company has established a nomination committee that meets at least once a year to review the board's structure and diversity[101]. Environmental, Social, and Governance (ESG) - The company has obtained ISO 14001:2015 certification for its environmental management system, demonstrating compliance with international standards[130]. - The company reported a total greenhouse gas emissions of 1,160.31 tons in 2021, a decrease from 1,911.06 tons in 2020, indicating a significant reduction in direct emissions[133]. - The company is committed to community contributions and environmental protection through various initiatives, including charitable activities and community investments[125]. - The company has implemented measures to control dust emissions during the casting production process, including the use of dust collection systems[136]. Employee Management - The company employed a total of 1,364 employees as of December 31, 2021, an increase from 1,315 employees in 2020[150]. - The company emphasizes the importance of employee welfare, providing various benefits and holiday gifts to enhance the quality of life for employees[149]. - The company provided training to approximately 95% of employees in 2021, with an average training duration of about 6 hours per employee[159]. - Employee turnover rate decreased to approximately 8% in 2021 from 10% in 2020, with 103 employees leaving the company[152]. Shareholder Information - As of December 31, 2021, the total share capital of the company was RMB 448,920,000, divided into 897,840,000 shares, including 673,380,000 domestic shares and 224,460,000 H shares, with a par value of RMB 0.50 per share[38]. - The total number of shares held by major shareholders is approximately 63.80% of the total issued share capital[58]. - The company has a diverse shareholder base, including institutional investors such as Jiao Yin International Securities Co., Ltd., which holds 33,669,000 shares, representing 15.00% of the total[64]. - The company confirmed that public shareholding is at least 25%, complying with listing rules[73].
翼辰实业(01596) - 2021 - 年度财报