ETERN(SH:600105)2022-04-25 16:00Financial Performance - The net profit for the parent company in 2021 was CNY 64,575,595.51, while the consolidated net profit attributable to the parent company's owners was CNY 120,656,333.41[6]. - The total distributable profit for shareholders at the end of 2021 was CNY 264,735,933.31 after accounting for the retained earnings and statutory reserve[6]. - The company's operating revenue for 2021 was approximately RMB 3.91 billion, an increase of 19.00% compared to RMB 3.29 billion in 2020[29]. - The net profit attributable to shareholders in 2021 was approximately RMB 120.66 million, a significant recovery from a loss of RMB 559.59 million in 2020[29]. - The basic earnings per share for 2021 was RMB 0.09, compared to a loss of RMB 0.43 per share in 2020[31]. - The weighted average return on equity for 2021 was 4.25%, a recovery from -20.51% in 2020[31]. - The net cash flow from operating activities in 2021 was negative at approximately RMB -785.10 million, a decline of 176.20% from RMB 1.03 billion in 2020[29]. - The company's net assets attributable to shareholders increased by 4.64% to approximately RMB 2.84 billion at the end of 2021, compared to RMB 2.71 billion at the end of 2020[29]. - The company reported a net profit increase of RMB 68.02 million in 2021, primarily due to improved project margins and reduced uncertainties from the pandemic[31]. - The total profit for the period was CNY 139.04 million, while the net increase in cash and cash equivalents was a negative CNY 724.76 million[110]. Business Strategy and Expansion - The company plans not to distribute profits or increase capital reserves in 2021 due to significant funding needs for business expansion and new project investments[7]. - The company is in a phase of rapid development and new business expansion, requiring substantial capital investment[7]. - The company plans to complete mass production of special application optical fibers in 2022, enhancing its product structure and market competitiveness[43]. - The company is actively exploring the Latin American market, focusing on Mexico and Panama as dual operational centers for expanding overseas sales[44]. - The company has secured multiple new projects with major clients, including NIO and Didi, establishing itself as an important member of their supply chains[50]. - The company plans to invest CNY 1.25 billion in establishing a wholly-owned subsidiary for high-end submarine cable production to meet the demand from offshore wind power and marine exploration[156]. - The company is focusing on expanding its market presence and enhancing its product offerings in response to changing market demands and conditions[156]. Audit and Compliance - The company has received a standard unqualified audit report from Asia-Pacific (Group) CPA[5]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[4]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity of the annual report[9]. - The company has not violated any decision-making procedures regarding external guarantees[9]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[9]. Market and Industry Trends - The information and communication industry is projected to grow at a compound annual growth rate (CAGR) of 10%, reaching 4.3 trillion yuan by 2025, with a significant increase in gigabit broadband users from 6.4 million in 2020 to 60 million by 2025[173]. - The demand for optical fiber and cable in China is expected to reach 261 million core kilometers in 2022, reflecting a year-on-year growth of 6.5%[180]. - The global optical fiber and cable market is anticipated to maintain a long-term sustainable growth, with a projected annual growth rate of 6.2% in 2021 and 7% in 2022[181]. - The market for optical chips used in 25G and above is projected to grow from $1.356 billion in 2019 to $4.340 billion by 2025, with a CAGR of 21.4%[185]. - The total automobile sales in China for 2022 are expected to reach 27.5 million units, with a 5% year-on-year growth, and the new energy vehicle sales are projected to reach 5 million units, growing by 42%[189]. - The global submarine cable market is projected to grow from 11.9 billion yuan in 2020 to 57.8 billion yuan by 2025, with a compound annual growth rate (CAGR) of 37%[199]. Research and Development - The company applied for 226 patents, including 65 invention patents, and authorized 149 patents, with 42 being invention patents[133]. - The company is focusing on expanding its R&D capabilities in high-speed optical chips, which are experiencing rapid growth and broadening application fields[184]. - The company achieved significant advancements in the automotive wiring harness sector, obtaining 31 patents related to new energy vehicle technologies[137]. - Research and development expenses decreased by 6.70% to CNY 155.89 million, reflecting a focus on cost management[112]. Subsidiary Performance - The net profit of Shanghai Jinting Automotive Wiring Co., Ltd. turned positive at CNY 100.28 million, recovering from a loss of CNY 32.99 million in the previous year due to improved market conditions[167]. - The net profit of Jiangsu Yongding Taifu Engineering Co., Ltd. increased by CNY 6.81 million to CNY 7.88 million, driven by the completion of several projects in Bangladesh[167]. - The company’s subsidiary Jiangsu Yongding Electric Co., Ltd. achieved a profit of CNY 180.37 million, recovering from a loss of CNY 586.28 million in the previous year due to increased sales from new and existing customers[167]. Cash Flow and Financial Management - The company reported a net cash flow from operating activities of negative CNY 785.10 million, a significant decline from the previous year's positive cash flow[115]. - Cash and cash equivalents decreased by 35.44% to 1,304,778,460.73 yuan, primarily due to payments for the Bangladesh project amounting to 581.13 million yuan[144]. - The company’s cash flow management improved, leading to a 71.17% decrease in receivables financing to 10,746,323.02 yuan[147].