CRHIC(SH:600528)2022-03-28 16:00Financial Performance - The company's operating revenue for 2021 was CNY 27.16 billion, an increase of 11.80% compared to CNY 24.29 billion in 2020[21]. - The net profit attributable to shareholders for 2021 was CNY 1.86 billion, reflecting a growth of 1.66% from CNY 1.83 billion in 2020[21]. - The net profit after deducting non-recurring gains and losses was CNY 1.67 billion, up 8.43% from CNY 1.54 billion in 2020[21]. - The total assets at the end of 2021 reached CNY 49.18 billion, an increase of 11.28% from CNY 44.19 billion at the end of 2020[22]. - The basic earnings per share for 2021 was CNY 0.78, a decrease of 1.27% from CNY 0.79 in 2020[23]. - The weighted average return on equity for 2021 was 7.89%, down from 9.09% in 2020, a decrease of 1.2 percentage points[23]. - The cash flow from operating activities for 2021 was CNY 1.63 billion, a significant increase of 51.47% compared to CNY 1.07 billion in 2020[21]. - Operating costs rose to CNY 22.25 billion, reflecting a growth of 10.94% from CNY 20.06 billion year-on-year[82]. - The gross profit margin for the industrial manufacturing segment was reported at 17.98%, with a year-on-year increase of 10.93%[85]. - The gross profit margin for the main business was 17.92%, up by 0.63 percentage points year-on-year[86]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.45 per 10 shares, totaling RMB 322,124,980.26 based on a total share capital of 2,221,551,588 shares as of December 31, 2021[5]. - The company has a policy to distribute at least 10% of the available profit to shareholders as dividends, ensuring a stable return on investment[176]. Audit and Compliance - The company received a standard unqualified audit report from PwC Zhong Tian Certified Public Accountants[4]. - The company has not violated decision-making procedures for providing guarantees[7]. - The company has maintained a high standard of information disclosure, achieving zero discrepancies in its 90 disclosed documents and receiving an A rating for four consecutive years from the Shanghai Stock Exchange[138]. - The internal control audit report received a standard unqualified opinion, indicating effective internal controls[186]. Market Position and Growth Opportunities - The company signed new contracts worth CNY 468.05 billion in 2021, representing a year-on-year growth of 11.87%[32]. - The company is positioned to benefit from the expansion of urban rail transit in new first-tier cities, which continues to thrive despite a slowdown in major cities[52]. - The company anticipates better development opportunities in 2022 across sectors such as railways, highways, urban rail, municipal projects, and water conservancy, driven by favorable national policies[50]. - The company holds the leading market share in its sector, with comprehensive strength ranking first domestically and globally[51]. - The company is expected to see increased applications of its tunnel boring machines in large-scale water conservancy projects, as highlighted in national development plans[52]. Research and Development - Research and development expenses increased by 16.08% to ¥1.40 billion, up from ¥1.20 billion in the previous year, indicating a commitment to innovation[82]. - The company has completed 49 research projects during the reporting period, with significant advancements in TBM products and tunnel construction technologies[98]. - The company has developed four new types of rail transit vehicles, enhancing its capabilities in new rail transit technology[64]. - The company has introduced innovative tunneling technologies, including a new generation of multi-dimensional rock-breaking techniques[70]. - The company is committed to supporting the national "dual carbon" strategy and enhancing its research in green construction and resource utilization[124]. Environmental Compliance - The company has been proactive in managing environmental compliance, with specific subsidiaries identified as key polluters under local regulations[189]. - Seven subsidiaries have been placed under active regulatory monitoring due to their pollution levels, with no environmental incidents reported during the reporting period[188]. - All regulated units have developed emergency response plans for environmental incidents and filed them[200]. Governance and Management - The company has improved its governance structure, completing reforms as part of the state-owned enterprise reform action plan, and has established a transparent decision-making mechanism[137]. - The company actively engages with investors, organizing five conference calls and maintaining a "zero complaint" record since its restructuring[140]. - The company has established a robust internal control system that effectively covers major aspects of its operations, with no significant deficiencies reported during the reporting period[180]. - The company is optimizing its human resources structure and focusing on attracting top talent as part of its "14th Five-Year" development plan[164]. Strategic Initiatives - The company plans to achieve new contract value of 50 billion yuan and revenue of 28 billion yuan in 2022, with a cost target of 23 billion yuan[126]. - The company aims to enhance its comprehensive service capabilities and provide products and services with prominent comparative advantages[121]. - The company is focusing on technological innovation in its switch business, improving product quality, and expanding into new application areas[123]. - The company is expanding its engineering machinery business into new fields such as oil and gas pipelines and marine engineering[121].