AVICHM(SH:600765)2022-03-14 16:00Financial Performance - The company's operating revenue for 2021 reached ¥8,789,901,985.93, an increase of 31.23% compared to ¥6,698,164,989.34 in 2020[18]. - Net profit attributable to shareholders was ¥890,640,048.04, reflecting a significant growth of 159.05% from ¥343,807,842.18 in the previous year[20]. - The net cash flow from operating activities amounted to ¥1,517,593,549.52, up 130.48% from ¥658,436,313.59 in 2020[20]. - Basic earnings per share increased to ¥0.89, a rise of 140.54% compared to ¥0.37 in 2020[19]. - The weighted average return on equity rose to 11.05%, an increase of 5.58 percentage points from 5.47% in the previous year[19]. - The company's net assets attributable to shareholders reached ¥9,359,613,483.20, a growth of 39.45% from ¥6,711,656,205.45 at the end of 2020[20]. - Total assets increased by 25.65% to ¥19,684,745,604.80 from ¥15,666,335,776.58 in 2020[18]. - The total profit amounted to RMB 114,361,270, showing a significant year-on-year growth of 122.67%[33]. - Operating costs increased by 28.22% year-on-year, totaling RMB 6,299,958,019.27, primarily due to the rise in revenue[34]. Shareholder and Capital Structure - The company plans to distribute a cash dividend of 1.70 CNY per 10 shares, totaling 178,778,568.12 CNY, based on a total share capital of 1,051,638,636 shares as of the end of 2021[4]. - The company will increase its total share capital by 420,655,454 shares through a capital reserve transfer of 4 shares for every 10 shares held, resulting in a new total share capital of 1,472,294,090 shares[4]. - The company completed a private placement of 111,957,796 shares, raising a net amount of RMB 1,872,226,414.86[171]. - The total number of shares after the private placement is 1,051,638,636 shares[172]. - The proportion of restricted shares increased from 8.76% to 18.47% after the issuance[169]. - The company’s total number of ordinary shareholders increased from 36,358 to 37,561 during the reporting period[180]. Audit and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[3]. - The company has maintained the accuracy and completeness of the financial report as declared by its responsible personnel[3]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and results for the year ended December 31, 2021[195]. - The audit report was issued on March 11, 2022, by Dahuacpa, with partners Jiang Shan and Pan Hongwei responsible for the audit[200]. - The auditors evaluated the appropriateness of the going concern assumption used by management in preparing the financial statements[198]. Research and Development - Total R&D investment amounted to 346,450,498.25 yuan, which is 3.94% of the operating revenue, with no capitalized R&D expenditures[50]. - The company conducted 263 research projects and developed 4,006 new products, contributing to new economic growth points[52]. - The company plans to invest 100 million RMB in research and development to innovate new technologies in the upcoming year[90]. - The company has a total of 1,324 technical personnel among its employees, indicating a strong focus on technical expertise[110]. Market and Business Development - The company is actively pursuing new projects in emerging markets such as renewable energy and automotive sectors[27]. - The company aims to enhance its core competitiveness in the forging and casting industry, positioning itself as a leading platform for China's aerospace forging and casting business[72]. - The company plans to expand its hydraulic and environmental control business into the shipbuilding, weaponry, and electronics sectors, leveraging military technology to penetrate high-end civilian markets[72]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[90]. - New product development initiatives are underway, focusing on advanced aviation equipment and related technologies, which are expected to drive future growth[186]. Governance and Management - The company has established a robust corporate governance structure, holding 10 board meetings and 7 supervisory meetings during the reporting period[77]. - The company is committed to transparent information disclosure and has implemented various management systems to ensure compliance with regulatory requirements[79]. - The company has a clear plan for future governance and operational independence, with no significant risks identified[80]. - The company has established a performance evaluation mechanism for senior management based on operational performance and comprehensive assessments[119]. Environmental and Social Responsibility - The company has allocated 626.57 million yuan for energy-saving investments and 12.89 million yuan for environmental protection initiatives in 2021[126]. - The company has committed to rural revitalization efforts, exceeding the target of 19 initiatives set by the group for poverty alleviation and rural development[128]. - The company donated 100,000 yuan to build an aviation science popularization classroom in Huajian Town, Guizhou Province[129]. - AVIC Heavy Machinery and its partners were recognized as "Advanced Collectives in Poverty Alleviation" by Guizhou Province[129]. Risks and Challenges - The company faces risks from the global economic downturn and uncertainties in external demand, prompting strategies for supply-side reform and product structure adjustments[74]. - The company is addressing the risk of insufficient large forging equipment capacity by increasing fixed asset investments to enhance production capabilities[75]. - The management discussion and analysis section outlines potential challenges and risks the company may face in the future[7]. Related Party Transactions - The total amount of related party transactions reached CNY 8,296,591,134.20, with significant sales transactions amounting to CNY 2,911,117,083.44, accounting for 33.12% of similar transactions[151]. - The company has committed to managing related party transactions with a focus on fairness and transparency, ensuring that transactions are conducted at reasonable prices[140].