BROS(SH:601339)2022-04-26 16:00Financial Performance - In 2021, the company achieved a revenue of ¥7,774,077,153.45, representing a 26.73% increase compared to ¥6,134,557,248.06 in 2020[23] - The net profit attributable to shareholders was ¥1,370,780,511.95, a significant increase of 274.47% from ¥366,054,425.04 in the previous year[23] - The net profit after deducting non-recurring gains and losses reached ¥1,318,484,767.08, up 358.72% from ¥287,425,427.89 in 2020[23] - The net cash flow from operating activities was ¥1,453,063,618.95, reflecting a 19.55% increase from ¥1,215,437,188.44 in 2020[23] - By the end of 2021, the net assets attributable to shareholders amounted to ¥8,993,197,324.78, a 13.94% increase from ¥7,892,836,824.33 at the end of 2020[23] - Basic earnings per share rose to ¥0.93, a 272% increase compared to ¥0.25 in 2020[26] - The weighted average return on equity improved to 16.24%, an increase of 11.64 percentage points from 4.60% in 2020[26] - The total operating revenue for 2021 reached 7.77 billion RMB, representing a 26.73% increase compared to the previous year[64] - The net profit for 2021 was 1.37 billion RMB, reflecting the company's strong financial performance[64] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of ¥5 per 10 shares, totaling ¥736,999,996, based on a total share capital of 1,473,999,992 shares after accounting for repurchased shares[6] - The company plans to implement a shareholder return plan for the next three years (2021-2023)[119] - The total remuneration payable to all directors, supervisors, and senior management at the end of the reporting period was 8.3633 million yuan[135] - The actual remuneration received by all directors, supervisors, and senior management at the end of the reporting period was also 8.3633 million yuan[135] Operational Highlights - The company achieved a total sales volume of 241,779.56 tons of yarn in 2021, with a year-on-year increase of 11.76%[68] - The company achieved a total sales revenue of ¥2.57 billion from the sale of grey fabric during the reporting period[38] - The company’s revenue from its Vietnam factory reached 4.283 billion yuan, a year-on-year increase of 16.42%, with a net profit of 939 million yuan, up 310.04% compared to the previous year[54] - The company plans to expand its production capacity in Vietnam to meet increasing downstream customer demands[38] - The company’s overseas sales revenue was approximately 4.71 billion RMB, with a gross margin of 29.78%[67] Research and Development - Research and development expenses totaled ¥155,094,673.42, representing 2.00% of operating income, with no capitalized R&D expenditures[76] - The company launched 5 new color card series and received 3 patent authorizations during the reporting period, showcasing its innovation capabilities[59] - The company plans to continue increasing R&D investment to maintain its innovation leadership in the industry[103] - The company invested 100 million RMB in R&D for new technologies aimed at improving production efficiency[129] Market and Industry Trends - The textile industry in China saw a total revenue of 5.1749 trillion yuan in 2021, with a year-on-year growth of 12.3% and a profit total of 267.7 billion yuan, increasing by 25.4%[49] - In 2021, China's textile and apparel exports reached 315.5 billion USD, marking an 8.4% year-on-year increase, with apparel exports growing by 24%[50] - The gross profit margin for the cotton spinning industry was 25.95%, an increase of 15.37 percentage points year-on-year[65] - The gross margin improved to 35%, up from 32% in the previous year, due to cost control measures[129] Risk Factors and Challenges - The company faces risks from macroeconomic fluctuations, market competition, and volatility in raw material and labor costs, with cotton costs comprising 60%-70% of production costs[104][105] - The company is facing operational risks due to significant fluctuations in cotton prices, which may impact its business performance if production costs rise without corresponding price adjustments[107] - The ongoing COVID-19 pandemic continues to negatively impact the company's overseas procurement and sales operations due to limited shipping capacity and strict domestic pandemic control measures[108] Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8] - The company has not violated any decision-making procedures for providing guarantees[8] - The company emphasizes the importance of timely and accurate information disclosure, publishing 75 announcements in 2021 to protect investor rights[115] - The company has maintained effective internal control over financial reporting as of December 31, 2021, according to an evaluation by Tianjian Accounting Firm[115] Environmental Responsibility - The company has established a comprehensive environmental risk emergency mechanism, ensuring efficient response to pollution incidents[181] - The company utilizes advanced testing instruments for environmental monitoring, ensuring compliance with discharge standards[182] - No administrative penalties were imposed on the company during the reporting period for environmental issues[183] - The company adheres to environmental impact assessment regulations for all new, modified, and expanded projects[180] Strategic Plans and Future Outlook - The company plans to raise up to 1 billion RMB through a non-public offering of A-shares to fund the expansion of its 390,000 spindle yarn project in Vietnam, enhancing its capital strength and production capacity[111][112] - The company aims to maintain its position as a global leader in the color spinning industry, focusing on technological innovation as a core competitive advantage[98] - The company plans to expand its market presence through strategic acquisitions and partnerships in the textile industry[91] - The company provided a revenue guidance for 2022, expecting a growth rate of 10% to 12%[129]