QCEC(SH:600218)2022-03-25 16:00Financial Performance - In 2021, the company's operating revenue reached CNY 5,508,197,839.47, an increase of 23.61% compared to CNY 4,455,989,703.12 in 2020[20] - The net profit attributable to shareholders was CNY 152,104,404.48, representing a decrease of 11.78% from CNY 172,422,114.63 in the previous year[20] - The net cash flow from operating activities was CNY 259,700,896.43, down 40.16% from CNY 433,957,095.24 in 2020[20] - Basic earnings per share decreased to CNY 0.39, down 17.02% from CNY 0.47 in 2020[21] - The weighted average return on equity was 6.14%, a decrease of 2.04 percentage points from 8.18% in the previous year[21] - The operating cost increased to CNY 4,927,903,394.46, reflecting a growth of 26.25% year-on-year[37] - The company's revenue from internal combustion engines reached ¥5,311,735,315.26, a decrease of 10.33% compared to the previous year, with a gross margin of 10.33%, down by 1.40 percentage points[40] - Revenue from plastic pipes was ¥102,705,616.27, reflecting a decline of 11.66% year-over-year, with a gross margin of 11.66%, down by 5.88 percentage points[40] - The automotive segment generated revenue of ¥54,644,924.85, an increase of 3.82% year-over-year, with a gross margin of 3.82%, up by 1.01 percentage points[40] Assets and Liabilities - The total assets at the end of 2021 amounted to CNY 6,051,047,418.23, a 32.96% increase from CNY 4,550,907,806.74 in 2020[20] - The company's net assets attributable to shareholders increased by 39.36% to CNY 3,041,387,922.00 from CNY 2,182,460,463.01 in 2020[20] - The company's total liabilities reached ¥2,947,164,680.02, up from ¥2,296,583,512.66, marking a growth of around 28%[181] - Owner's equity increased to ¥3,103,882,738.21, compared to ¥2,254,324,294.08 in 2020, showing a significant rise of about 38%[181] - The total current assets reached ¥4,604,402,363.76, compared to ¥3,228,193,049.39 in 2020, representing an increase of approximately 43%[184] Cash Flow - The company reported a net cash flow from operating activities of -198.47 million RMB in Q1 2021, followed by positive cash flow in Q2 and Q4, indicating fluctuations in cash management[23] - Cash flow from operating activities decreased by 40.16% year-on-year, amounting to ¥259,700,896.43[51] - Cash flow from investing activities showed a slight decrease of 1.16%, totaling -¥399,542,379.69[52] - Cash flow from financing activities increased significantly, with a net amount of ¥699,233,448.61, compared to -¥12,845,400.00 in the previous year[52] Investments and Projects - The company completed a non-public offering of 66.84 million shares at a price of 11.22 RMB per share, raising a total of 750 million RMB, with a net amount of 740.34 million RMB[28] - The total investment for the Phase II project of the National VI engine intelligent manufacturing construction is 401 million RMB, with 300 million RMB funded from the raised capital, expected to achieve an annual production capacity of 150,000 National VI engines[29] - The green casting upgrade project has a total investment of 313.8 million RMB, with 250 million RMB from the raised capital, aiming for an annual production capacity of 600,000 engine blocks and covers[30] - The hydrogen fuel cell intelligent manufacturing project has a total investment of 136 million RMB, with 100 million RMB from the raised capital, expected to produce 20,000 square meters of proton exchange membranes and 2,000 fuel cell power systems annually[30] Market Position and Strategy - The company maintained a strong market position in the small and medium power diesel engine segment, covering power ranges from 10-280 kW[34] - The company’s market share improved through product innovation and cost advantages, with a focus on customer needs and market expansion[30] - The company is actively expanding its sales and service network across Southeast Asia and Europe[33] - The company is facing challenges due to rising raw material prices, which have impacted the growth rate of operating costs exceeding that of operating revenue[38] Research and Development - Research and development expenses rose to CNY 181,118,258.58, marking a 7.31% increase from the previous year[37] - The total R&D expenditure was ¥181,118,258.58, accounting for 3.29% of total revenue, indicating a focus on innovation[49] - The company plans to continue investing in R&D to drive future growth and innovation[188] Corporate Governance - The company has established a transparent performance evaluation and incentive mechanism for senior management, with annual salaries comprising basic, performance, and tenure-based incentives[104] - The company strictly adheres to the requirements of the Company Law and relevant regulations, ensuring a sound corporate governance structure and effective internal controls[68] - The board of directors is composed of qualified members, with established committees that support scientific decision-making and governance[69] - The company has implemented a transparent performance evaluation and incentive mechanism for its directors and senior management[71] Environmental Initiatives - The company has implemented a wastewater treatment system that meets national standards, saving approximately 1.1 million CNY in water costs annually[111] - The company has achieved a reduction of approximately 235.80 tons of CO2 emissions and 90 tons of standard coal through various energy-saving initiatives[111] - The company has received multiple awards for its environmental efforts, including "Anhui Province Circular Economy Demonstration Enterprise" and "Anhui Province Water-Saving Enterprise"[114] Shareholder Information - The company plans to distribute a cash dividend of CNY 1.05 per 10 shares, totaling CNY 45,737,991.50[5] - The proposed cash dividend for 2021 is ¥1.05 per 10 shares, amounting to a total distribution of ¥45,737,991.50, which represents 30.07% of the net profit attributable to shareholders[101] - The company has a cash dividend policy that emphasizes stable and sustainable returns to investors, with a minimum cash dividend ratio of 20% when cash flow allows[95][96]