HIGHLY(SH:600619)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥15.77 billion, representing a 42.41% increase compared to ¥11.07 billion in 2020[24]. - The net profit attributable to shareholders for 2021 was approximately ¥322.93 million, a significant increase of 98.71% from ¥162.51 million in 2020[24]. - The net cash flow from operating activities for 2021 was approximately ¥415.94 million, reflecting a 20.50% increase from ¥345.19 million in 2020[24]. - The total assets at the end of 2021 were approximately ¥21.10 billion, which is a 41.13% increase compared to ¥14.95 billion at the end of 2020[24]. - The basic earnings per share for 2021 was ¥0.34, up 78.95% from ¥0.19 in 2020[26]. - The weighted average return on equity for 2021 was 6.18%, an increase of 2.54 percentage points from 3.64% in 2020[26]. - The company reported a net profit of ¥190.25 million in Q4 2021, with a quarterly operating revenue of approximately ¥3.86 billion[29]. - The company achieved operating revenue of 15.769 billion RMB, a year-on-year increase of 42.41%[37]. - Net profit attributable to shareholders reached 323 million RMB, a year-on-year growth of 98.71%[37]. Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling approximately 162.66 million RMB, which represents 50.37% of the net profit attributable to ordinary shareholders for the year 2021[7]. - The company distributed a cash dividend of CNY 1.50 per 10 shares, totaling CNY 132,495,038.25 (including tax) to shareholders[162]. - The company has maintained a consistent cash dividend policy prioritizing investor returns while ensuring sustainable development[163]. Acquisitions and Investments - The company completed the acquisition of a 60% stake in Haili Marelli, integrating automotive air conditioning compressor and system businesses into its operations[40]. - The company acquired a 60% stake in Haier Marelli, making it a subsidiary, and initiated a "100-day plan" for business integration and management[168]. - The company invested in 25 major projects focused on transformation, smart manufacturing, and internationalization during the reporting period[41]. - The company plans to invest CNY 48 million to establish a new subsidiary for automotive parts production, with a registered capital of CNY 30 million[94]. Research and Development - The total R&D investment for the period was approximately ¥787.32 million, accounting for 4.99% of operating revenue, with capitalized R&D expenses making up 7.48% of the total[69]. - The company is committed to increasing R&D investment and enhancing the output of invention patents to foster a culture of technological innovation[111]. - The company has a strong emphasis on R&D, with advanced facilities and a high-quality team, enabling it to maintain a competitive edge in technology integration[50]. Market Position and Strategy - The company maintained its leading position in the non-self-supplied sector of the air conditioning compressor market, with a production volume of 26.34 million units, a 1% increase year-on-year[37]. - The company is focusing on expanding its automotive parts business, particularly in electric vehicle components, to capitalize on the growing market[48]. - The company aims to enhance its management capabilities and integrate resources to support high-quality development in its "14th Five-Year" strategic plan[41]. - The company aims to sell 27 million rotary compressors and 39 million refrigeration compressor motors in 2022, targeting growth above market rates for non-household air conditioning compressors and light commercial compressors[111]. Risks and Challenges - The company has identified several risks including industry environment risk, technology risk, merger integration risk, foreign exchange risk, raw material price risk, and goodwill impairment risk[11]. - The company faces risks from industry competition, particularly in the new energy vehicle market, and potential fluctuations in global automotive production and sales[116]. - The company is closely monitoring foreign exchange risks due to the strengthening of the RMB against the USD, which has impacted its export business[116]. - The company faced rising costs for key raw materials such as electrolytic copper, electrical steel, and aluminum, which significantly impacted the profit margins of its main products, including air conditioning compressors and automotive parts[119]. Governance and Compliance - The company has strengthened internal governance and institutional construction to ensure effective management and compliance with legal regulations[124]. - The company maintains independence from its controlling shareholder, Electric Holdings, in terms of assets, personnel, finance, and operations[124]. - The company has established a transparent and independent hiring process for senior management, ensuring compliance with legal requirements[124]. - The audit committee held several meetings throughout the year, including discussions on financial reports and internal control audits[153]. Environmental Responsibility - The company has established wastewater and air pollution control facilities, ensuring compliance with environmental standards and regulations[178]. - The company has not faced any administrative penalties for environmental issues during the reporting period[184]. - The company has actively promoted clean energy usage, with four subsidiaries utilizing rooftop areas to build photovoltaic power stations[188]. - Highly Group's compressor products are designed to reduce carbon emissions at the source, aligning with the trend of energy electrification and enhancing energy efficiency[188]. Employee Management - The total number of employees in the parent company is 40, while the main subsidiary has 9,611 employees, resulting in a total of 9,813 employees[157]. - The company implements a performance-based salary system for management and administrative staff, with annual performance bonuses tied to company performance and board objectives[158]. - The company offers various employee benefits, including paid leave, social insurance, and supplementary medical insurance[158]. - The company conducts both internal and external training programs to enhance employee skills, including initiatives for high-skilled talent development[159].