SUNNY OPTICAL(HK:02382)2022-04-21 23:38Financial Performance - In 2021, Sunny Optical Technology reported revenue of RMB 37,496.9 million, a slight decrease of 1.3% from RMB 38,001.8 million in 2020[11]. - The gross profit for 2021 was RMB 8,736.2 million, resulting in a gross profit margin of 23.3%, up from 22.9% in 2020[11]. - Profit for the year increased to RMB 5,055.9 million, representing a growth of 2.3% compared to RMB 4,940.3 million in 2020[11]. - Earnings per share (basic) rose to RMB 4.57, compared to RMB 4.46 in the previous year[11]. - For the year ended December 31, 2021, the Group's revenue slightly decreased by approximately 1.3% to approximately RMB 37,496.9 million[20]. - Profit for the year attributable to owners of the Company increased by approximately 2.4% to approximately RMB 4,988.0 million[20]. - Basic earnings per share increased by approximately 2.4% to approximately RMB 456.52 cents[20]. - The net profit for the year ended December 31, 2021, was approximately RMB 5,055.9 million, representing an increase of approximately 2.3% compared to the previous year, with a net profit margin of approximately 13.5%[85]. - The profit attributable to owners of the Company for the year ended December 31, 2021, was approximately RMB 4,988.0 million, reflecting an increase of approximately 2.4% year-over-year, with basic earnings per share at approximately RMB 456.52 cents[86]. Assets and Liabilities - Non-current assets increased to RMB 10,784.5 million, up from RMB 9,808.6 million in 2020[11]. - Total assets reached RMB 38,773.8 million, an increase from RMB 35,438.1 million in 2020[11]. - The current ratio improved to 2.4 times, compared to 1.9 times in 2020, indicating better short-term financial health[11]. - The gearing ratio decreased to 15.6%, down from 16.8% in 2020, reflecting a reduction in financial leverage[11]. - Current assets as of December 31, 2021, were approximately RMB 27,989.3 million, an increase from approximately RMB 25,629.5 million as of December 31, 2020[91]. - Total assets as of December 31, 2021, were approximately RMB 38,773.8 million, representing an increase of approximately 9.4% compared to the previous year[91]. Research and Development - Sunny Optical Technology continues to focus on R&D and expanding its product offerings in optoelectronic applications, including handsets and vehicle imaging systems[6]. - The Group continued to boost R&D investment, achieving continuous breakthroughs in emerging businesses[16]. - R&D expenditure for the Group was approximately RMB 2,642.2 million, an increase of approximately 5.7% from the previous year, accounting for approximately 7.0% of total revenue[74]. - The Group is committed to enhancing its R&D capabilities and strengthening cooperation with top global high-tech companies to lay a solid foundation for development in new fields[39]. - The Group aims to leverage its technological and patent advantages to become a world-renowned optoelectronic enterprise[26]. - The Group plans to enhance R&D investments in key technologies and improve product integration and technical content[146]. Market Position and Strategy - The Group's three main products, namely handset lens sets, handset camera modules, and vehicle lens sets, achieved global No. 1 market shares[17]. - The Group's vehicle modules and LiDAR products recorded outstanding performance in technological innovation and product delivery during the year[17]. - The smartphone market is becoming saturated, with weak consumer demand affecting new demand driven by smartphone replacements[26]. - The Group has maintained a leading position in the vehicle field in terms of technological innovation and product performance[34]. - The Group aims to strengthen its position in the optoelectronic industry and become a "Hundred-Year-Old Brand"[13]. - The Group actively deepened business layout in the AIoT sector and enhanced cooperation with well-known customers in niche markets[17]. Corporate Governance - The board of directors consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[153]. - The company is committed to maintaining excellent corporate governance elements to promote effective accountability and maximize shareholder benefits[181]. - For the year ended December 31, 2021, the company complied with all mandatory disclosure requirements and adopted most recommended best practices of the Corporate Governance Code[182]. - The board is responsible for setting the company's missions and values, formulating strategic directions, and monitoring corporate performance[184]. - The board currently comprises seven directors, including three executive directors and four independent non-executive directors, ensuring a balanced composition[189]. Employee and Talent Management - The Group had 24,664 full-time employees as at 31 December 2021, with a competitive salary and welfare system established to attract and retain talent[139]. - The Company will strengthen its talent team by focusing on attracting and retaining skilled personnel[148]. - Continuous professional development is provided to all Directors to keep their knowledge and skills updated[199]. Sustainability and ESG - The Group was included in the FTSE4Good Index and Hang Seng ESG 50 Index in 2021, reflecting its commitment to sustainable development[25]. - The Group's ESG rating was raised from "BBB" to "A" by MSCI in November 2021[25]. - The Group's commitment to new business investments has allowed it to seize development opportunities in emerging markets and rapidly develop new growth points[41]. Financial Management and Investment - The Group's funding strategy relies on net cash from operating activities, bank borrowings, and debt financing to meet short-term working capital needs[90]. - The Group's capital expenditure amounted to approximately RMB 2,588.9 million for the year ended 31 December 2021, financed by internal resources and bank borrowings[95]. - The Group's financial policy remains prudent, focusing on capital preservation and fixed-income projects to ensure financial stability and improved returns[117]. - The Group's investments for the year amounted to approximately RMB 2,588.9 million, primarily for property, plant, equipment, and new product production settings[116]. Awards and Recognition - The Group received multiple awards, including the "Best Delivery Award" from ZTE Corporation and the "2021 Excellent Supplier Award" from Wingtech Technology Co., Ltd[142]. - The Moody credit rating of the Company was upgraded from "Baa2" to "Baa1"[142].