SAFETY(SH:603028)2022-04-19 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 56,959,998.76 in 2021, representing a 5.93% increase compared to RMB 53,771,703.59 in 2020[5]. - Total revenue for 2021 was RMB 915,557,320.35, marking a 21.99% increase from RMB 750,499,585.72 in 2020[22]. - The company's operating revenue increased by 21.99% compared to the previous year, driven by enhanced brand competitiveness and increased sales orders in the steel wire rope and architectural design businesses[24]. - The company reported a net profit attributable to shareholders of CNY 22,979,344.69 in Q4 2021, with a total annual net profit of CNY 56,959,000.76[26]. - Basic earnings per share decreased by 8.33% to CNY 0.22, while diluted earnings per share also decreased by 8.33% to CNY 0.22[24]. - The total revenue for the year reached 953.81 million, an increase of 220.11 million compared to the previous year[112]. Cash Flow and Assets - The net cash flow from operating activities decreased by 73.53% to RMB 13,535,200.79 in 2021, down from RMB 51,132,097.21 in 2020[22]. - The net cash flow from operating activities decreased by 73.53% year-on-year, primarily due to increased cash payments for raw materials and services[25]. - The company's total assets increased by 11.95% to RMB 1,309,758,709.16 at the end of 2021, compared to RMB 1,169,918,832.79 at the end of 2020[23]. - The ending inventory value as of December 31, 2021, was RMB 189.05 million, representing 14.43% of the total assets[198]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.60 per 10 shares, totaling RMB 17,222,400.00, subject to shareholder approval[5]. - The company has a cash dividend policy that mandates at least 20% of the distributable profit to be distributed as cash dividends if the company is profitable[134]. - The cash dividend distributed was CNY 0.075 per share, totaling CNY 16.56 million (including tax) for the year 2020[173]. - The total number of ordinary shareholders as of the end of the reporting period is 13,779, down from 14,069 at the end of the previous month[175]. Research and Development - The company has invested in R&D, holding a total of 86 patents, including 31 invention patents and 55 utility model patents, with its wholly-owned subsidiary Jianfeng Rigging holding 47 patents[42]. - R&D expenses increased by 10.24% to approximately CNY 29.03 million, indicating a focus on product innovation[54]. - The company is increasing its investment in R&D for new product development, particularly in specialized steel wire ropes for various applications[82]. - The number of R&D personnel is 132, accounting for 16.73% of the total workforce[68]. Market and Industry Trends - The steel wire rope and rigging industry is experiencing strong demand driven by the elevator industry, with growth expected due to urbanization and aging population trends[81]. - The construction design industry in China is projected to grow at a compound annual growth rate of 6.1%, reaching a market size of 676.45 billion yuan by 2023[84]. - The market for elevator wire ropes in China continues to grow due to significant demand from the existing stock, despite a slowdown in the real estate sector[34]. Operational Efficiency and Production - The company achieved a production volume of 71,718.98 tons for steel wire ropes and rigging, representing a year-on-year increase of 20.92%, while sales volume rose by 17.95% to 68,809.95 tons[47]. - The company actively expanded production capacity to meet customer demand, resulting in steady growth in sales of steel wire ropes and accessories in 2021[2]. - The company has implemented automation in its production lines, enhancing manufacturing efficiency and product quality consistency through the introduction of industrial robots[49]. Strategic Initiatives and Future Plans - The company plans to continue focusing on technology research and development to maintain its competitive edge in the market[24]. - The company is focusing on the development of high-end steel wire rope processing and aims to replace imported steel wire ropes with domestic alternatives[88]. - The company is exploring EPC (Engineering, Procurement, and Construction) project opportunities to enhance project quality and management[88]. - The company is strategically expanding into emerging markets while maintaining its existing market share in traditional sectors[88]. Risk Management - The company has outlined potential risks in its management discussion and analysis section, advising investors to be cautious[9]. - The company is exposed to raw material price volatility risks, as the prices of essential materials like wire and industrial filament have fluctuated significantly, potentially impacting performance if product prices do not align with raw material costs[92]. - The company recognizes the risk of goodwill impairment from the acquisition, which will be tested annually for impairment, potentially impacting current profits if future performance does not meet expectations[96]. Corporate Governance - The company held its annual general meeting on May 18, 2021, where 8 proposals were approved without any dissenting votes[106]. - The company has not reported any significant changes in the competitive landscape or measures taken to address potential impacts from competitors[106]. - The company guarantees the independence of its financial department and accounting system, ensuring no shared bank accounts with controlled entities[149]. Environmental and Social Responsibility - The company actively implements environmental protection measures, including real-time monitoring and management of hazardous waste through the Jiangsu Province Hazardous Waste Dynamic Management System[141]. - The company emphasizes social responsibility by ensuring legal tax compliance and actively participating in charitable activities, enhancing its corporate image[143].