HAITIAN INT'L(HK:01882)2022-04-14 09:31Financial Performance - For the fiscal year ending December 31, 2021, the company's sales revenue reached RMB 16,018.3 million, an increase of 35.7% compared to 2020[15]. - The company's net profit attributable to shareholders was RMB 3,052.0 million, representing a growth of 27.8% year-on-year[15]. - Domestic sales amounted to RMB 11,088.2 million, a year-on-year increase of 33.9%, while export sales rose by 40.1% to RMB 4,930.1 million[16][17]. - The gross profit margin for the year was 32.2%, slightly down from 34.2% in the previous year[15]. - Gross profit for 2021 was RMB 5,151.1 million, up 27.5% from RMB 4,040.3 million in 2020, with a gross margin of 32.2%[25]. - The company's revenue for the year ended December 31, 2021, reached RMB 16,018.3 million, an increase of 35.7% compared to RMB 11,800.1 million in 2020[22]. - The total revenue for the year ended December 31, 2021, was RMB 16,018,272 thousand, representing a 35.5% increase from RMB 11,800,052 thousand in 2020[151]. - The operating profit for the same period was RMB 3,596,659 thousand, up 25.2% from RMB 2,873,194 thousand in 2020[151]. - The net profit attributable to shareholders for the year was RMB 3,051,968 thousand, an increase of 27.8% compared to RMB 2,388,016 thousand in 2020[151]. - The basic earnings per share for the year was RMB 1.91, compared to RMB 1.50 in the previous year, reflecting a growth of 27.3%[151]. Sales and Market Expansion - The Mars series energy-saving injection molding machines generated sales of RMB 10,944.0 million, a growth of 33.2% year-on-year[18]. - The Changfeiya electric series and Jupiter series injection molding machines saw significant sales growth of 44.3% and 54.8%, reaching RMB 2,077.5 million and RMB 2,017.3 million respectively[19]. - The company achieved a milestone by exporting over 10,000 units for the first time in 2021, with a notable increase in market share in North America, South America, Southeast Asia, and parts of Europe[17]. - The overall demand in downstream industries increased due to the company's continuous product iterations and custom models[18]. - The company plans to enhance its global market share and strengthen its marketing system and incentive mechanisms[21]. Dividends and Shareholder Returns - The company declared a second interim dividend of HKD 0.95 per share for the fiscal year, totaling HKD 0.95 for 2021, down from HKD 1.64 in 2020[15]. - The company declared a second interim dividend of HKD 0.95 per share, with total dividends for the year amounting to HKD 0.95 per share[23]. - The company declared a second interim dividend of HKD 0.95 per share, totaling approximately RMB 1,233,292,000[91]. Research and Development - Research and development expenses related to R&D activities amounted to RMB 209.7 million, an increase from RMB 154.4 million in 2020[26]. - The company aims to launch new environmentally friendly products, including biodegradable materials, to address sustainability concerns[21]. Financial Position - Cash and cash equivalents, along with time deposits and restricted bank deposits, totaled RMB 3,592.6 million, RMB 3,012.5 million, and RMB 87.9 million, respectively, as of December 31, 2021[29]. - The company's net cash position reached RMB 4,532.0 million as of December 31, 2021, down from RMB 5,000.6 million in 2020, indicating a stable financial condition with no net capital debt ratio reported[30]. - As of December 31, 2021, the company's financial assets measured at fair value and recognized in profit or loss amounted to RMB 6,153.4 million, an increase from RMB 4,604.9 million in 2020[30]. - Total assets increased to RMB 26,153,315 thousand in 2021, up from RMB 23,391,860 thousand in 2020, representing an increase of approximately 11.9%[147]. - Total liabilities increased to RMB 10,218,305 thousand in 2021 from RMB 8,605,824 thousand in 2020, marking a rise of 18.7%[151]. - The company’s total cash flow from financing activities showed a net cash inflow, indicating a positive financing position despite high dividend payouts[159]. Corporate Governance - The company has a strong governance structure with multiple independent non-executive directors overseeing key committees such as the audit and remuneration committees[41][42]. - The board includes members with diverse backgrounds in finance, accounting, and management, enhancing the company's strategic decision-making capabilities[41][42]. - The company emphasizes the importance of quality control and customer service, as evidenced by the roles of its directors in these areas[41]. - The independent non-executive directors contribute to the company's compliance and risk management efforts, ensuring adherence to regulatory standards[41][42]. - The company has a commitment to maintaining high standards of corporate governance through the appointment of qualified independent directors[41][42]. - The board's composition reflects a balance of experience and expertise, which is crucial for navigating the complexities of the financial landscape[41][42]. - The company adopted a new corporate governance code effective January 1, 2022, to ensure compliance with governance standards[51]. - The company has established a business ethics framework to promote integrity and ethical standards among employees and partners[48]. Environmental, Social, and Governance (ESG) - The company established a three-tier ESG governance structure in 2021 to enhance investment value and sustainable returns[46]. - The board is responsible for overseeing ESG-related matters and risk assessments[47]. - The ESG Executive Committee, led by Executive Director Zhang Jianfeng, reviews the company's ESG strategy and performance[47]. - The ESG Working Group supports the development of ESG goals and plans across various departments[47]. - The company emphasizes high-quality, internationally competitive products as part of its mission to equip China and the world[46]. - The company implemented a clean technology strategy, achieving energy savings of up to 60% compared to conventional hydraulic injection molding machines[48]. - The company is committed to exploring potential opportunities in the upstream and downstream industries to enhance clean technology investments and applications[48]. - The company aims to provide high cost-performance, environmentally friendly products while improving its ESG management and performance[48]. Risk Management - The audit committee, consisting of three independent non-executive directors, reviews the financial reporting procedures and internal controls, ensuring compliance with accounting principles[63]. - The board has reviewed the effectiveness of the risk management and internal control systems, deeming them effective and sufficient[68]. - The internal control department has been established since 2012 to assist the board in maintaining and reviewing risk management and internal control systems[71]. - The company has a credit risk policy ensuring sales are made to reputable customers, with credit periods ranging from 15 days to 36 months[96]. - The company faces foreign exchange risk due to sales in international markets, with less than 10% of procurement costs denominated in foreign currencies[94]. Shareholder Information - The company reported a total of 1,596,000,000 shares issued as of December 31, 2021[44]. - The market capitalization as of December 31, 2021, was HKD 34,553,400,000[44]. - Major shareholders include Tianfu Capital Limited with 27.18% and Premier Capital Management (PTC) Ltd. with 20.69% of total shares[115]. - The company’s major shareholders include Zhang Jingzhang and Zhang Jianming, each holding approximately 32.46% of the company’s shares[111]. Audit and Compliance - The financial statements were audited by PwC, which has been the auditor since the company was listed in December 2006[130]. - Key audit matters included the impairment provision for trade receivables and inventory write-down provisions[135]. - Management applied a simplified approach to measure expected credit losses for trade receivables[137]. - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[142]. - The audit committee is tasked with overseeing the financial reporting process of the group[142]. Capital Expenditures and Investments - Capital expenditures for the year 2021 totaled RMB 848.0 million, a decrease from RMB 925.8 million in 2020[31]. - The company reported a significant increase in investments in property, plant, and equipment, which reached RMB 4,366,451 thousand in 2021, compared to RMB 3,914,165 thousand in 2020, reflecting a growth of approximately 11.6%[147]. - The group purchased servo systems and components from Ningbo Haitian Drive Co., Ltd. for a total amount of RMB 1,022.6 million during the fiscal year ending December 31, 2021[123]. - The group entered into a framework agreement with Ningbo Haitian Intelligent Technology Co., Ltd. for the purchase of intelligent products and services, amounting to RMB 1.4 million as of December 31, 2021[123]. - The group purchased CNC lathes and machining centers from Haitian Precision Engineering for approximately RMB 43.0 million during the fiscal year ending December 31, 2021[124]. Employee and Director Information - The company provides comprehensive support for employees, including a healthy and safe working environment and quality employee accommodations[48]. - The company emphasizes the importance of training for newly appointed directors regarding their statutory and regulatory responsibilities as listed company directors[67]. - Total remuneration for senior management (excluding directors) for the year ended December 31, 2021, was RMB 6,103 thousand[109]. - The board of directors consists of five executive directors, two non-executive directors, and four independent non-executive directors[52]. Miscellaneous - Charitable donations made by the company during the year amounted to RMB 41.5 million[99]. - The company has no existing share option plans as of the report date[102]. - The company had no significant contingent liabilities as of December 31, 2021, consistent with the previous year[128]. - There were no major acquisitions or disposals of subsidiaries or associates during the year[128].