Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 9,536.1 million, an increase of approximately 16.0% compared to the previous year[6]. - Gross profit was RMB 1,871.8 million, with a gross profit margin of 19.6%[6]. - Profit attributable to equity shareholders for the year was RMB 708.5 million, reflecting an increase of approximately 30.3%[6]. - Revenue from domestic business increased by approximately 5.4%, while overseas revenue surged by approximately 46.8% compared to the prior year[6]. - The company's gross profit margin decreased from 26.9% in 2017 to 19.6% in 2021, while the net profit margin decreased from 11.9% to 7.4% during the same period[12]. - The company reported net cash from operating activities of RMB 526.7 million in 2021, a significant increase from RMB 140.9 million in 2020[12]. - The return on equity (ROE) improved from 5.9% in 2020 to 7.2% in 2021[12]. - The Group's operating income for the year ended December 31, 2021, was approximately RMB 9,536.1 million, representing an increase of 16.0% compared to RMB 8,221.5 million in 2020[48]. - Gross profit for the year was approximately RMB 1,871.8 million, reflecting a growth of approximately 13.6% from RMB 1,648.0 million in 2020[46]. - Net profit attributable to equity shareholders was approximately RMB 708.5 million, up approximately 30.3% from RMB 543.7 million in 2020[46]. Revenue Breakdown - In 2021, the Company's revenue increased by 16.0% to RMB9,536.1 million from RMB8,221.5 million in 2020[27]. - The optical fibre and optical fibre preforms segment contributed approximately RMB2,918.5 million, a decrease of 1.2% year-on-year, while the optical fibre cables segment generated RMB3,920.8 million, an increase of 19.3%[29]. - Overseas revenue reached RMB3,086.3 million, up 46.8% from 2020, accounting for approximately 32.4% of total revenue, the highest level in history[30]. - Revenue from the optical fibres and optical fibre preforms segment was approximately RMB2,918.5 million, a decrease of 1.2% from RMB2,953.0 million in 2020, accounting for 30.6% of the Group's revenue[48]. - Revenue from the optical fibre cables segment increased by 19.3% to approximately RMB3,920.8 million from RMB3,287.5 million in 2020, accounting for 41.1% of the Group's revenue[48]. - Other products and services contributed approximately RMB2,696.8 million, an increase of 36.1% from RMB1,981.0 million in 2020, accounting for 28.3% of the Group's revenue[48]. International Expansion - In 2021, the company achieved overseas business revenue of RMB 3,086.3 million, accounting for over 30% of total operating income for the first time[17]. - The company acquired YOFC Poliron in Brazil and progressed with the construction of an optical cable production facility in Poland, enhancing its international capacity layout[43]. - The company plans to enhance its overseas production capacity and build localized supply and service capabilities in response to internationalization strategies[90]. - The company completed the acquisition of YOFC Poliron in 2021, enhancing its presence in Brazil and Latin America[186]. - The company’s overseas communication network engineering projects in Peru and the Philippines met milestone goals on schedule, receiving recognition from local operators and customers[188]. Market Trends and Demand - The demand for optical fibre and cable is expected to grow globally, with a forecasted growth rate exceeding 8% in 2022, the highest since 2017[25]. - The total demand for optical fiber and cable globally exceeded 500 million fiber km in 2021, with an expected growth rate of over 8% in 2022, the highest since 2017[97]. - The demand for FTTH (Fiber to the Home) is expected to grow rapidly in regions with low penetration rates, such as Southeast Asia and Latin America, driving the need for optical fiber and cable construction projects[97]. - The centralized procurement by China Mobile in October 2021 announced a demand size of approximately 143 million fiber km, a 20% increase from 119.2 million fiber km in 2020[99]. - The global optical fibre and cable industry is projected to maintain steady growth, with total demand for optical fibre expected to exceed 600 million fibre km by 2024[106][107]. Cost Management and Profitability - The average price of optical fibre and cable decreased by over 30% compared to 2020, putting pressure on the Company's profit margins[29]. - The Group's cost of sales for the year was approximately RMB7,664.2 million, an increase of 16.6% from RMB6,573.5 million in 2020, accounting for 80.4% of the Group's revenue[49]. - The Company aims to strengthen its cost-leader advantage for common optical fibre and cable products while leveraging technology and R&D for high-end multi-mode and specialty optical fibre products[35]. - The Company plans to continue optimizing its cost structure and adjusting its product mix to enhance overall profitability[29]. - The company aims to improve OVD and VAD process levels for single-mode products and leverage PCVD process advantages for niche market segments[189]. Research and Development - Research and development expenses increased by 14.1% to RMB473.2 million from RMB414.6 million in 2020, mainly due to increased salary expenses for R&D personnel[50]. - The company aims to strengthen its technological innovation and smart manufacturing capabilities to enhance core competitiveness in diversified businesses[37]. - The company is committed to sustainable development and achieving its strategic goals outlined in the "14th Five-Year Plan"[37]. - The company has received multiple awards for technological inventions, including the National Technological Invention Award, reflecting its commitment to research and development[144]. - The company emphasizes the importance of timely development of new technologies and products to maintain competitive advantages in the evolving optical fiber and cable market[196]. Governance and Leadership - The board includes members with extensive experience in the telecom and cable industries, enhancing the company's strategic direction[129]. - The company has a strong governance structure with experienced supervisors overseeing the performance of directors and senior management[154]. - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[151]. - The independent directors bring a wealth of experience from various industries, which may contribute to strategic decision-making and market expansion efforts[147][149]. - The company aims to leverage the expertise of its board members to navigate regulatory environments and enhance corporate governance practices[149]. Employee and Social Responsibility - The company prioritizes talent development and employee feedback, providing growth opportunities through performance management systems[199]. - The company actively engages in social responsibility initiatives, contributing to education, disaster relief, and community care[199]. - The Group arranged external training courses and seminars to enhance employees' professional knowledge and skills[77][80]. - The company conducts annual customer satisfaction surveys to gather feedback and improve product and service quality[198]. - The company aims to enhance its environmental, social, and governance performance based on stakeholder surveys conducted during the year[200].
长飞光纤光缆(06869) - 2021 - 年度财报