SINOMACH-HE(601399)2022-04-22 16:00Financial Performance - The company's operating revenue for 2021 was CNY 9,508,218,107.33, representing a 7.75% increase compared to CNY 8,824,448,386.89 in 2020[14]. - The net profit attributable to shareholders for 2021 was CNY 394,477,546.92, which is a 16.98% increase from CNY 337,212,903.02 in 2020[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 200,823,901.23, showing a significant increase of 133.82% compared to CNY 85,888,389.31 in 2020[14]. - The total profit amounted to 503 million yuan, marking a year-on-year increase of 10.62%[22]. - The basic earnings per share increased to 0.0543 yuan, up 17.03% compared to the previous year[16]. - The company reported a significant increase in non-recurring gains and losses, totaling 193,653,645.69 yuan for the year[20]. - The net profit for 2021 was reported as -¥10,641,093,752.42, an improvement from -¥10,781,759,116.77 in 2020[196]. - The net profit for the year was 419,856,346.20, an increase from 352,563,394.42 in the previous year, representing a growth of approximately 19.1%[199]. Cash Flow and Assets - The net cash flow from operating activities for 2021 was CNY 596,870,486.56, a recovery from a negative cash flow of CNY -1,118,033,131.38 in 2020[14]. - The net cash flow from operating activities for Q4 was 396,267,547.95 yuan, indicating strong operational cash generation[18]. - Cash and cash equivalents at the end of the period amounted to ¥7,505,990,996.60, accounting for 26.70% of total assets, a decrease of 2.42% compared to the previous period[53]. - The company's total assets reached ¥28,110,501,024.89 in 2021, compared to ¥27,477,973,307.98 in 2020, showing an increase of approximately 2.3%[193]. - Total current assets increased to ¥20,029,664,234.22 in 2021, up from ¥19,300,722,467.45 in 2020, representing a growth of approximately 3.8%[191]. - The company's cash and cash equivalents decreased to ¥7,505,990,996.60 in 2021 from ¥7,692,097,860.22 in 2020, a decline of approximately 2.4%[191]. Research and Development - Research and development expenses increased by approximately 0.69 billion RMB, a growth of 23.97%, driven by increased investment in mechanical equipment R&D and manufacturing[36]. - The mechanical equipment R&D and manufacturing segment generated approximately 3.97 billion RMB in revenue, with a gross margin of 11.01%, up 1.53 percentage points year-on-year[39]. - Research and development expenses increased to ¥358,304,788.31 in 2021, compared to ¥289,022,976.12 in 2020, marking a growth of 24.0%[197]. - The company has a total of 1,149 R&D personnel, making up 13.95% of the total workforce[50]. Market Expansion and Contracts - The company achieved a total contract turnover of 10.138 billion yuan, a year-on-year increase of 5.9%[22]. - The company signed multiple high-end casting and forging orders, including projects with major groups like Baowu and China Nuclear Engineering[22]. - The company expanded into new markets, securing projects in Turkey and Kyrgyzstan, achieving significant international growth[22]. - The company signed multiple contracts for the manufacturing of metallurgical complete equipment, nuclear technology equipment, and large petrochemical containers, enhancing its market share in key projects[27]. - The company is actively pursuing reforms to complete its state-owned enterprise reform tasks and improve its corporate governance structure[77]. Corporate Governance and Compliance - The company maintains a robust corporate governance structure, ensuring compliance with legal requirements and protecting shareholder rights[84]. - The company completed 88 information disclosure tasks during the reporting period, ensuring all shareholders had equal access to information[87]. - The company emphasizes transparency and has implemented systems to prevent insider trading, enhancing shareholder rights[87]. - The company’s governance structure is aligned with the regulations set by the China Securities Regulatory Commission, with no significant discrepancies reported[87]. - The company has established specialized committees under the board of directors to enhance governance[104]. Environmental and Social Responsibility - The company invested 25.04 million yuan in energy-saving and environmental protection initiatives in 2021, implementing projects to reduce emissions from various manufacturing processes[128]. - The company achieved a reduction of 20,000 tons in carbon emissions in 2021 through improved energy management and the elimination of outdated production technologies[129]. - The company is actively involved in the "Belt and Road" initiative, focusing on infrastructure projects in Cambodia, Bangladesh, Laos, and Pakistan[130]. - The company allocated a total of 10.6998 million yuan for targeted poverty alleviation projects in the Chaotian District, focusing on various aspects of rural revitalization[133]. Legal Matters - The company is involved in multiple lawsuits regarding patent infringements, claiming damages of 50 million yuan against Yantai Taihai Manur Nuclear Equipment Company[147]. - The company has successfully recovered all principal and penalty amounts from Tangshan Zhonghou Company following a favorable court ruling[148]. - The company is actively pursuing legal actions to protect its intellectual property rights and recover financial losses[147]. - There are no significant litigation or arbitration matters reported for the year[143]. Related Party Transactions - The company reported a total of 6,000,000 RMB in related party transactions, with the largest transaction amounting to 4,985.85 RMB, representing 0.62% of similar transaction amounts[153]. - The total revenue from related party transactions amounted to 5,478.87 million, representing 68% of the total transactions recorded[154]. - The company has maintained a consistent pricing strategy based on market value agreements across all related party transactions, ensuring transparency and fairness[155]. - The financial data indicates a stable relationship with related parties, with no significant fluctuations in transaction values year-over-year[154].