YouFa(SH:601686)2022-04-15 16:00Financial Performance - The company's revenue for 2021 was ¥66,866,023,311.15, representing a 38.10% increase compared to ¥48,418,704,741.08 in 2020[28]. - The net profit attributable to shareholders for 2021 was ¥614,090,581.91, a decrease of 46.28% from ¥1,143,027,046.86 in 2020[28]. - The operating cash flow for 2021 was ¥811,250,279.82, showing a significant increase of 152.55% compared to ¥321,223,142.48 in 2020[28]. - The total assets at the end of 2021 were ¥15,868,517,167.08, a 33.98% increase from ¥11,844,220,413.49 in 2020[31]. - The basic earnings per share for 2021 was ¥0.43, down 51.69% from ¥0.89 in 2020[32]. - The weighted average return on equity for 2021 was 10.26%, a decrease of 18.00 percentage points from 28.26% in 2020[32]. - The company achieved total operating revenue of CNY 66,866,023,311.15, representing a year-on-year increase of 38.10%[65]. - Operating costs amounted to CNY 65,174,247,182.52, reflecting a year-on-year increase of 41.18%[65]. - Net profit attributable to shareholders was CNY 61,409.06 million, a decrease of 46.28% compared to the previous year[65]. - Earnings per share decreased by 51.69% to CNY 0.43[65]. Dividends and Shareholder Returns - The company distributed a cash dividend of RMB 0.15 per share, totaling RMB 215.84349 million based on a total share capital of 1,438,956,600 shares[7]. - The company's profit distribution policy remains unchanged during the reporting period, ensuring continuity and stability in shareholder returns[170]. - The profit distribution plan for the first three quarters of 2021 proposed a cash dividend of RMB 1.5 per 10 shares, totaling RMB 215.84349 million (including tax) to be distributed to shareholders[170]. Operational Highlights - The company maintained a stable production and sales scale despite significant challenges in the welding steel pipe industry due to fluctuating steel prices and the ongoing impact of the COVID-19 pandemic[47]. - In 2021, the company sold 12.0669 million tons of various steel pipes, a year-on-year increase of 1.72%[49]. - The company achieved operating revenue of 66.866 billion RMB, a year-on-year growth of 38.10%[49]. - The company has maintained its position as the top producer in the industry for 16 consecutive years, enhancing its market share and brand advantage[56]. - The company has established over 400 core distributors nationwide, facilitating a robust sales network[59]. Research and Development - The company has received more than 190 patents and completed over 2,000 innovation projects, showcasing its commitment to R&D[63]. - Research and development expenses surged to 241.46 million RMB, a significant increase of 308.26% year-on-year[68]. - The company plans to continue expanding its research and development efforts, particularly in subsidiaries, to enhance product offerings and market competitiveness[68]. - The company is investing in new technology development, allocating 50 million for R&D initiatives aimed at enhancing product efficiency and sustainability[143]. Strategic Initiatives - The company launched new projects, including Jiangsu Youfa Steel Pipe and Tangshan Youfa New Building Materials, which are expected to add over 3 million tons of annual steel pipe production capacity[51]. - The company is actively expanding into high-tech, high-value-added special pipe fields through strategic partnerships, including a collaboration with Huludao Steel Pipe Industrial Co., Ltd.[54]. - The company has initiated a project to explore terminal sales channel construction through the acquisition of Sichuan Yungang Lian, with phase one already operational[54]. - The company plans to issue 2 billion RMB in convertible bonds to support the acceleration of new projects[54]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 300 million earmarked for potential targets[143]. Risk Management - The company reported no significant risks that materially affected its operations during the reporting period[9]. - The company faces macroeconomic volatility risks that could impact its operations and market demand[118]. - The company faces risks of decreased orders and slower payment collection due to macroeconomic fluctuations, potentially leading to a decline in operating profit for the year[120]. - Raw material costs, primarily steel strips and zinc ingots, account for over 90% of the company's main business costs, with significant price volatility impacting cash flow and inventory management[120]. Governance and Compliance - The company has a standard unqualified audit report issued by Lixin Certified Public Accountants[5]. - The company adheres to strict governance practices, ensuring independent operation of the board and compliance with legal regulations[124]. - The board consists of 9 members, including 3 independent directors, meeting the requirement of at least one-third independence[124]. - The company has established a robust information disclosure system, ensuring timely and accurate communication with shareholders[124]. - The company has implemented necessary adjustments to its internal management controls in accordance with relevant laws and regulations[182]. Environmental Sustainability - The company is committed to environmental sustainability, with initiatives such as solar photovoltaic power generation across all factory rooftops[54]. - The company has maintained normal operations for all major environmental protection facilities, ensuring compliance with environmental standards[198]. - The company achieved a 100% compliance rate for the operation of environmental protection facilities and the main facilities, as well as a 100% discharge compliance rate[199]. - The company has implemented a variety of air pollution control technologies, including bag dust removal and wet scrubbing processes, which are functioning normally across multiple facilities[198]. Employee Management - The total number of employees in the parent company and major subsidiaries is 14,389, with 2,683 in the parent company and 11,706 in subsidiaries[163]. - The company conducted over 3,000 internal training sessions in 2021, with more than 140,000 participants, focusing on various aspects including corporate culture and operational skills[168]. - The company has a salary structure consisting of basic salary and performance pay, adhering to national laws and regulations for employee social insurance[167]. - The company’s employee education levels include 1 PhD, 29 Master's degrees, and 596 Bachelor's degrees among its workforce[166].