CATEC(SH:600879)2022-03-30 16:00Financial Performance - The company achieved a net profit of ¥101,154,123.03 for the year 2021, with a statutory surplus reserve of ¥10,115,412.30, resulting in a total distributable profit of ¥447,885,159.46[7]. - The company plans not to distribute profits for the year 2021, pending approval from the shareholders' meeting[7]. - The company has a total of ¥356,846,448.73 in undistributed profits at the beginning of the year[7]. - The company's operating revenue for 2021 was CNY 15,989,205,732.24, representing a 14.14% increase compared to 2020[24]. - The net profit attributable to shareholders of the listed company reached CNY 549,201,381.58, up 14.79% from the previous year[24]. - The basic earnings per share for 2021 was CNY 0.202, reflecting a 14.77% increase compared to 2020[25]. - The weighted average return on equity increased to 4.238% in 2021, up 0.44 percentage points from 2020[25]. - The net profit after deducting non-recurring gains for 2021 was CNY 489,440,388.01, a 20.85% increase from 2020[24]. - The company achieved a significant increase in net assets attributable to shareholders, reaching CNY 13,258,319,080.79, up 4.61% from the previous year[24]. Assets and Liabilities - The total assets at the end of 2021 were CNY 33,605,699,191.89, a 7.69% increase from the end of 2020[24]. - As of the end of 2021, total assets reached 33.606 billion yuan, a 7.69% increase from the previous year, with inventory accounting for 41.69% and accounts receivable for 18.30%[38]. - The company’s total liabilities at the end of 2021 were 19.490 billion yuan, a 9.20% increase from the previous year, with short-term borrowings making up 30.66% of total liabilities[38]. - The company's inventory balance as of December 31, 2021, was ¥14,032,478,043.37, with a provision for inventory impairment of ¥20,641,505.28, representing 41.69% of total assets[190]. - The debt-to-asset ratio increased to 58.00% from 57.20% in the previous year, indicating a slight rise in leverage[182]. Cash Flow and Financial Health - The net cash flow from operating activities decreased by 50.26% to CNY 239,119,604.30 in 2021[24]. - The company’s cash flow from operating activities was 2.39 billion yuan, indicating a continuous improvement in operating cash flow for three consecutive years[38]. - Cash and cash equivalents at the end of the period were 2,203,838,627.71 yuan, a decrease of 28.28% from the previous period due to increased cash flow used for debt repayment[74]. - The company’s cash interest coverage ratio dropped significantly by 58.05% to 1.25, due to increased labor costs and taxes, leading to reduced cash flow from operating activities[182]. - The company anticipates an increase in operational cash flow needs due to the expansion of its business scale, estimating a liquidity requirement of about 192 billion RMB for daily operations[127]. Research and Development - The company accelerated R&D in core technologies such as artificial intelligence and achieved engineering application of the landing vision/inertial combination navigation system[35]. - The company increased its R&D investment, leading to a rise in capitalized R&D expenses[62]. - The total R&D investment amounted to 890,139,236.56 yuan, representing 5.57% of operating revenue, with capitalized R&D accounting for 19.28% of total R&D expenditure[70]. - R&D expenses increased by 25.68% to 718.54 million RMB, indicating a strong focus on innovation[61]. - The company is committed to enhancing its research and development capabilities in the unmanned systems and high-end intelligent equipment sectors[85]. Market and Industry Outlook - The company is focusing on the aerospace electronics, unmanned systems, and high-end intelligent equipment industries to drive growth and innovation[88]. - The demand for high-end intelligent equipment is expected to grow several times during the "14th Five-Year Plan" period due to the push for smart governance and digital infrastructure[44]. - The market for unmanned transportation systems is projected to see several times growth during the "14th Five-Year Plan" period, driven by increasing logistics transportation needs[45]. - The company is focusing on high-quality development and innovation-driven strategies to strengthen its market position[88]. - The company identifies the potential for increased competition in the electric wire and cable industry, particularly in the high-end market segment[87]. Governance and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for providing guarantees[9]. - The company has established a clear governance structure with defined responsibilities among the shareholders' meeting, board of directors, and supervisory board[97]. - The company is committed to enhancing its governance structure and has completed a self-inspection report to improve its governance level[97]. - The company has not reported any significant litigation or arbitration matters for the year[147]. Risks and Challenges - The company faces various risks including market risk, financial risk, operational risk, competition risk in the wire and cable industry, and goodwill and inventory impairment risk[10]. - The company is addressing financial risks related to working capital turnover and increasing accounts receivable due to long production cycles[90]. - The company faces significant market risks due to intensified competition in weapon procurement and potential adjustments in equipment plans[90]. - The company recognizes the need to adapt to national industrial policy adjustments and the impacts of the ongoing COVID-19 pandemic on economic growth[90]. - The company faces risks of declining gross margins due to increased competition across various sectors and rising financial costs from financing operations[92]. Shareholder Information - The largest shareholder, China Aerospace Times Electronics Co., Ltd., holds 586,634,344 shares, accounting for 21.57% of total shares[167]. - The company’s total number of ordinary shareholders decreased from 171,954 to 163,309 during the reporting period[165]. - The company has a total of 10 major shareholders, with the top three being state-owned enterprises[169]. - The controlling shareholder is China Aerospace Science and Technology Corporation, which oversees multiple listed companies[171]. - The company has not reported any changes in shareholding for all directors and senior management during the reporting period[101].