HHI(SH:601226)2022-04-21 16:00Financial Performance - In 2021, the net profit of Huadian Heavy Industries Co., Ltd. was CNY 234.09 million, with a surplus reserve of CNY 23.41 million and a profit distribution of CNY 30.03 million from the previous year[6]. - The proposed cash dividend for 2021 is CNY 0.85 per 10 shares, totaling CNY 99.20 million, which accounts for 32.71% of the net profit attributable to the parent company[6]. - As of December 31, 2021, the undistributed profits reached CNY 1.20 billion, an increase from CNY 1.02 billion at the beginning of the year[6]. - The company's operating revenue for 2021 was ¥10,329,027,185.67, representing a 15.97% increase compared to ¥8,906,415,451.80 in 2020[27]. - Net profit attributable to shareholders of the listed company reached ¥303,264,101.74, a significant increase of 213.60% from ¥96,704,596.30 in the previous year[27]. - The net cash flow from operating activities increased by 37.22% to ¥657,312,566.28, driven by improved management of receivables and expanded sales scale[30]. - Basic earnings per share rose to ¥0.2626, reflecting a growth of 213.74% compared to ¥0.0837 in 2020[27]. - The total assets of the company at the end of 2021 were ¥10,665,487,229.91, marking a 21.46% increase from ¥8,781,329,714.32 at the end of 2020[27]. - The weighted average return on net assets increased to 7.90%, up by 5.26 percentage points from 2.64% in 2020[27]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which grew by 260.13% to ¥246,510,349.41[27]. - The company achieved a net profit of ¥155,165,011.31 in Q4 2021, following a net loss of ¥14,047,074.40 in Q1 2021[29]. - The company signed new sales contracts totaling 7.329 billion yuan and achieved operating revenue of 10.329 billion yuan with a net profit of 303 million yuan in 2021[39]. - The company reported a total revenue of 20.21 billion in 2021, indicating a strong performance in the wind power sector[81]. - The total profit reached 346 million RMB, showing a significant year-on-year growth of 174.93%[192]. - The net profit for the period was 303 million RMB, reflecting a remarkable increase of 213.60% compared to the previous year[192]. Business Development and Strategy - The company is focusing on developing emerging businesses such as offshore wind power, hydrogen energy, and smart port machinery to align with national energy development trends[10]. - The offshore wind power sector is entering a "grid parity" development phase, with favorable provincial subsidy policies in Guangdong, Shandong, and Zhejiang[10]. - The release of the "Hydrogen Energy Industry Development Medium- and Long-Term Planning (2021-2035)" indicates significant market potential for hydrogen energy in the national energy system[10]. - The company is facing risks related to traditional business areas due to national policies limiting coal consumption and coal power capacity growth[10]. - The company aims to become a global leading system solution service provider, with a strategic development goal of "1386" and "3128" for the 14th Five-Year Plan[46]. - The company is actively expanding its overseas market presence, signing contracts for offshore wind power projects in Vietnam, marking its first entry into the international offshore wind market[40]. - The company is focused on enhancing the integration of information technology with the construction industry, aiming for significant advancements in digitalization, networking, and intelligence within the sector[69]. - The company is exploring strategic partnerships and potential acquisitions to bolster its market position in the renewable energy sector[94]. - The company is actively pursuing market expansion strategies, including the development of a new feeding equipment and conveying system[90]. Research and Development - The company added 206 new authorized patents during the reporting period, including 12 invention patents, and completed key national renewable energy technology projects[43]. - The company has established four R&D centers and a postdoctoral research station, with R&D personnel accounting for approximately 18.45% of total employees, resulting in 814 patents, including 123 invention patents[167]. - The company has successfully developed and implemented 31 key technologies, with 11 reaching or partially reaching international leading levels, and 17 achieving international advanced levels[167]. - The company is focusing on market expansion with new products such as a closed coal yard fire protection system and a high-pile foundation installation system for shallow waters[38]. - A significant focus on R&D is evident with the introduction of a variety of new products, such as a testing pipeline and a mobile dust removal device[96][102]. - The company reported a new product development pipeline with over 200 new patents filed in 2021, indicating strong innovation capabilities[181]. Industry Trends and Market Conditions - The hydrogen energy industry in China is rapidly developing, with significant policy support and a focus on producing "green hydrogen" from renewable energy sources[64]. - The hydrogen energy sector is currently in a cultivation and development phase, with ongoing projects to secure renewable energy resources for future business expansion[64]. - The offshore wind power industry is expected to reach a total installed capacity of 71 million kilowatts by 2035, with a further increase to 132 million kilowatts by 2050[70]. - The coal-fired power sector is expected to undergo significant upgrades, with a target to reduce average coal consumption to below 300 grams per kilowatt-hour by 2025[66]. - The energy structure adjustment in China is leading to a decline in traditional coal-fired power investments, impacting related material handling systems[65]. - The domestic noise and vibration control industry comprises approximately 500 companies, with leading positions held by firms like Beijing Luchuang and Sichuan Zhengsheng[60]. - The company is actively involved in the comprehensive energy efficiency improvement and flexibility transformation of coal-fired power plants, aligning with national policies for cleaner and more efficient energy production[52]. Environmental and Safety Standards - The company maintained a stable safety and environmental protection record, with no incidents affecting safety targets or negative environmental events reported during the year[41]. - The new Noise Pollution Prevention Law, effective from June 5, 2022, expands the scope of noise pollution control to include industrial noise, with increased penalties for violations[60]. - The company has developed advanced noise control technologies and products, positioning itself as a leading solution provider in the industrial noise control sector[108]. - The noise control business targets comprehensive noise management in gas and coal-fired power plants, addressing various noise sources effectively[109]. - The company has developed a comprehensive prevention and control system for coal transportation at thermal power plants, achieving international advanced technology status[187]. Human Resources and Management - As of December 31, 2021, the company employed 2,005 staff, including 412 management personnel, 370 technical personnel, and 734 production personnel, with 1,100 holding a bachelor's degree or higher[175]. - The average industry experience of senior management exceeds 20 years, providing a solid foundation for understanding business models and managing risks[175]. - The management team has undergone some adjustments, with new appointments made in 2021, ensuring that production and operations continue to run smoothly[175]. - The company has a reasonable talent structure, with a significant number of employees holding intermediate or higher professional titles, including 23 senior engineers[175]. Future Outlook - Future outlook includes a commitment to research and development, with significant investments planned for new technologies in the energy sector, particularly in heat recovery systems[61]. - The company provided a forward guidance of 10% revenue growth for the next fiscal year, driven by new product launches and market expansion[183]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[184]. - The company aims to enhance energy efficiency and promote hydrogen energy technology in line with national energy security strategies and the "3060" carbon goals[171].