CHINA SATCOM(SH:601698)2022-04-28 16:00Financial Performance - In 2021, China Satellite Communications achieved a net profit attributable to shareholders of 572,304,982.46 RMB, with a year-end distributable profit of 1,943,683,375.83 RMB[6]. - The company's operating revenue for 2021 was approximately ¥2.63 billion, a decrease of 2.81% compared to 2020[23]. - Net profit attributable to shareholders increased by 17.09% to approximately ¥572.30 million in 2021[23]. - Basic earnings per share rose by 17.10% to ¥0.1431 in 2021, while diluted earnings per share remained the same[24]. - The net cash flow from operating activities increased by 11.01% to approximately ¥2.27 billion in 2021[23]. - Total assets at the end of 2021 were approximately ¥19.11 billion, reflecting a 4.48% increase from the previous year[23]. - The net profit after deducting non-recurring gains and losses was approximately ¥526.77 million, an increase of 28.25% compared to 2020[23]. - The company reported a net asset attributable to shareholders of approximately ¥12.01 billion at the end of 2021, up 3.64% from 2020[23]. - The net profit for the fourth quarter of 2021 was approximately ¥198.58 million, showing a strong performance in that period[26]. - The company achieved a revenue of 2.634 billion CNY and a net profit of 572 million CNY in 2021, representing a year-on-year growth of 17.09%[34]. - As of the end of 2021, total assets reached 19.108 billion CNY, with net assets of 12.006 billion CNY and a debt-to-asset ratio of 17.44%[34]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.29 RMB per 10 shares, totaling 116,000,000.00 RMB, to shareholders[6]. - The company reported a profit distribution plan approved by the board on April 23, 2021, and confirmed by the shareholders' meeting on May 27, 2021[6]. - The company has a profit distribution policy in place as per its articles of association, considering future development needs[6]. - The company distributed a cash dividend of 0.025 CNY per share, totaling 100 million CNY based on a total share capital of 4 billion shares[145]. - The company reported a positive net profit available for distribution to shareholders, but did not propose a cash profit distribution plan[147]. Research and Development - The company applied for 24 patents throughout the year, indicating a strong focus on innovation and technology development[37]. - The company’s R&D expenses decreased by 17.21% to CNY 72.196 million compared to the previous year[64]. - The total R&D investment amounted to ¥148,582,878.91, representing 5.64% of total revenue, with 51.41% of the R&D costs capitalized[71]. - The company is investing CNY 500 million in R&D for new technologies in satellite communication[121]. - The company plans to continue its investment in research and development to drive innovation in satellite communication technologies[196]. Market Expansion and Strategy - The company is advancing its "12361" development strategy, focusing on satellite operation services, industry system integration, and comprehensive information services[35]. - The company successfully entered the Maldives video market and signed contracts with the largest pay-TV operator in South Asia, enhancing its international market presence[39]. - The company is focusing on developing integrated information services for industries such as marine and aviation[53]. - The company is actively pursuing digital, networked, and intelligent development strategies to improve its core competitiveness[59]. - Market expansion plans include entering three new international markets by Q3 2022[121]. - The company is considering strategic acquisitions to enhance its service offerings in the telecommunications sector[121]. Governance and Management - The company held one shareholders' meeting, ten board meetings, and five supervisory meetings during the reporting period to enhance governance and decision-making processes[109]. - The company has improved information disclosure quality, ensuring the accuracy and timeliness of reports to protect shareholder interests[110]. - The company maintains independence from its controlling shareholder, ensuring no infringement on company assets or shareholder rights[111]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to CNY 1,192.67 million[116]. - The company continues to focus on maintaining a strong governance framework with independent oversight from its board members[116]. Risks and Challenges - There were no significant risks impacting the company's operations during the reporting period[8]. - The company faces risks including potential declines in market prices due to oversupply in international satellite resources and reduced demand from overseas users[105]. - Risks associated with overseas operations include impacts from the pandemic, trade relations, and local regulatory changes that could adversely affect business performance[106]. - The company has established a satellite communication system with multiple satellites to mitigate risks associated with potential major faults in satellite operations[107]. Environmental and Social Responsibility - The company donated 700,000 yuan for targeted poverty alleviation efforts in Yangxian County during the reporting period[159]. - The company implemented measures to reduce carbon emissions, including the renovation of the hot water system at the Beijing Earth Station to utilize solar energy[157]. - The company has developed and implemented an environmental management system in accordance with national standards[156]. - The company has committed to high-quality green development and actively practices corporate environmental responsibility[155]. Related Party Transactions - The company reported a total of 997,631,986.39 RMB in related party transactions, accounting for 55.33% of similar transactions[194]. - The procurement of rockets from China Academy of Launch Vehicle Technology amounted to 166,000,000.00 RMB, representing 9.21% of similar transactions[193]. - The company engaged in a significant transaction with China Academy of Space Technology for satellite construction, totaling 713,480,647.85 RMB, which is 39.57% of similar transactions[193]. - The company has ongoing related party transactions with various entities, including a service provision to China Academy of Space Technology amounting to 2,177,358.48 RMB, which is 0.08% of similar transactions[194]. Audit and Compliance - The audit report for the financial statements was issued by Zhongxinghua Accounting Firm with a standard unqualified opinion[5]. - The company has appointed Zhongxinghua Accounting Firm as its auditing agency for the 2021 fiscal year, with an audit fee of 800,000 RMB[188]. - The internal control audit will also be conducted by Zhongxinghua Accounting Firm, with a fee of 250,000 RMB[188]. - The internal control self-evaluation report for 2021 was approved by the board of directors, confirming the effectiveness of the internal control system[152].