SGEG(SH:601616)2022-04-18 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of RMB 74,436,237.60, a decrease of 1.66% compared to 2020[4]. - The company's operating revenue for 2021 was RMB 1,004,696,405.97, reflecting a decline of 3.24% from the previous year[19]. - The net profit after deducting non-recurring gains and losses was RMB 59,146,417.50, down 11.38% from 2020[19]. - Cash flow from operating activities amounted to RMB 161,834,247.13, a decrease of 5.35% compared to the previous year[19]. - The company's total assets at the end of 2021 were RMB 3,036,815,044.40, down 7.49% from the end of 2020[19]. - The net assets attributable to shareholders decreased by 9.60% to RMB 2,381,141,851.57 at the end of 2021[19]. - Basic earnings per share for 2021 were 0.0851 yuan, an increase of 5.19% from 2020[20]. - The weighted average return on equity was 2.95% in 2021, up 0.09 percentage points from 2020[20]. - The gross profit margin decreased by 1.31% due to rising raw material costs[55]. - Sales expenses decreased by 15.99% to 55.74 million RMB, attributed to changes in sales models and reduced agency fees[54]. Shareholder Returns - The company repurchased 81,899,681 shares for a total amount of RMB 271,322,230.51, which is considered as cash dividends[4]. - The cash dividend amount accounted for 364.50% of the net profit attributable to shareholders in the consolidated financial statements[4]. - The company did not implement cash dividends or capital reserve transfers in 2021, with remaining undistributed profits carried forward to future years[5]. - The company implemented a cash dividend policy, distributing a total of RMB 85,871,200.34 (including tax) to shareholders, with a base of 858,678,509 shares[112]. - The company has a clear and transparent cash dividend policy, ensuring protection of minority shareholders' rights[113]. - Cumulative cash dividends from 2018 to 2020 amounted to 170,072,950.34 yuan, reflecting the company's commitment to shareholder returns[121]. Market and Business Strategy - The company expanded its marketing network, adding new business partners in cities such as Guangzhou, Shenzhen, and Beijing[29]. - The company is focusing on emerging business markets, making progress in sectors like renewable energy, medical, and environmental governance[30]. - The company is adapting to industry trends by providing intelligent products and specialized services in traditional sectors[30]. - The company is focusing on digital transformation, having completed the first phase of its smart factory construction and the implementation of an intelligent operation center[33]. - The company is actively developing new products, including the P/V series smart medium-voltage switchgear and the SCB series low-carbon energy-saving dry-type transformers[31]. - The company is expanding its market presence in the electric vehicle charging sector with the successful launch of the AEG Poros Legend series charging stations[32]. - The company aims to enhance its core product line and become a benchmark enterprise in digital development and intelligent manufacturing, focusing on "innovation and low carbon" strategies[74]. - The company plans to focus on market expansion and new product development in the upcoming fiscal year[189]. Research and Development - The company invested over 4% of its sales revenue in R&D, resulting in 29 new patents granted during the year[48]. - R&D expenses increased by 2.28% to 42.53 million RMB, reflecting a commitment to product innovation[54]. - The company reported a significant increase in research and development expenses, totaling CNY 42,527,159.69 in 2021, compared to CNY 41,577,479.26 in 2020[189]. - Research and development expenses for 2021 amounted to ¥13,088,392.71, which is a 24.7% increase from ¥10,507,504.36 in 2020[194]. Risk Management - The company has outlined various risk factors in the management discussion and analysis section of the annual report[6]. - The company faces risks related to macroeconomic conditions and industry competition, which may impact its operational performance[77]. - The fluctuation in raw material prices, such as copper and steel, significantly impacts product pricing and gross margins due to ongoing pandemic effects and policy adjustments[79]. - The company is actively monitoring raw material price changes and has implemented strategic reserves to mitigate adverse impacts on product pricing and operational performance[79]. Governance and Compliance - The company held one shareholders' meeting and five board meetings during the reporting period, ensuring compliance with governance regulations and protecting shareholder rights[84]. - The supervisory board conducted three meetings, maintaining oversight of financial and operational compliance to safeguard shareholder interests[85]. - The company has established effective communication mechanisms with investors, enhancing transparency and fostering a positive corporate image[85]. - The company actively implements internal control measures and has disclosed the Internal Control Evaluation Report as per regulations[86]. - The company has established a strict insider information management system to protect investor rights and ensure fair disclosure[86]. - The company plans to enhance its governance structure and risk control mechanisms in 2022 to improve operational standards[88]. - The company has revised multiple internal management systems, including the Investor Relations Management System and the Audit Committee Annual Report Work System[87]. Financial Position - The company's total equity decreased to RMB 2,527,338,731.10 from RMB 2,750,305,303.38, representing a decline of approximately 8.1%[185]. - Cash and cash equivalents were reported at RMB 546,935,608.21, down from RMB 910,701,103.67, a significant decrease of about 40%[183]. - The company reported a long-term investment of RMB 29,825,388.09, down from RMB 31,496,077.82, indicating a decrease of approximately 5.3%[183]. - Total liabilities were reported at RMB 509,476,313.30, down from RMB 532,409,786.65 in the previous year, indicating a reduction of about 4.5%[184]. - The company’s retained earnings decreased to RMB 210,436,011.95 from RMB 228,942,481.33, reflecting a decline of approximately 8.1%[185]. Community Engagement - The company actively participated in social responsibility initiatives, including disaster relief and educational support, enhancing its community engagement[122].