SAFETY(SH:603028)2022-05-23 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 same period last year, driven by enhanced brand competitiveness and increased sales orders in the steel wire rope and architectural design businesses[24]. - 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 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]. - The total revenue for the year reached 953.81 million, an increase of 220.11 million compared to the previous year, representing a growth of approximately 30.0%[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 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 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]. - Inventory rose by 22.97% to CNY 189,051,138.97, to meet development needs and expand production scale[71]. - The company's inventory at the end of 2021 was valued at RMB 189.05 million, accounting for 14.43% of 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 total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 2.9423 million yuan[119]. - 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 total number of ordinary shareholders as of the end of the reporting period is 13,779, down from 14,868 at the end of the previous month[175]. - The largest shareholder, Suzhou Wuzhong Rongtai Holdings Co., Ltd., holds 82,980,738 shares, representing 28.91% of the total shares[177]. 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[43]. - R&D expenses increased by 10.24% to CNY 29.03 million, indicating a focus on product innovation and competitiveness[54]. - The company is committed to increasing R&D efforts in the high-end steel wire rope sector to replace imported products and enhance core competitiveness[88]. - The company is focusing on new product development, with an investment of 30.35 million allocated for R&D initiatives[112]. Market and Industry Trends - The steel wire rope and rigging industry is experiencing a growing demand driven by the elevator industry, with a focus on installation, maintenance, and renovation services due to increasing elevator ownership and aging equipment[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]. - The company is focusing on market expansion in the elevator maintenance sector, which is projected to grow at approximately 10% annually, with an expected market size exceeding 80 billion yuan by 2025[49]. Operational Efficiency and Strategy - The company has implemented automation in production processes, enhancing efficiency and product quality consistency, which is crucial for meeting increasing business demands[49]. - The company is accelerating its smart transformation by promoting the planning and construction of digital factories, aiming to enhance production efficiency and stabilize product quality through automation and intelligence[90]. - The company aims to enhance its competitive strength by improving quality, cost, service, and intellectual property, while also upgrading talent and management systems[87]. - The company is exploring EPC (Engineering, Procurement, and Construction) project opportunities to improve project quality and management efficiency[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 undergo annual impairment testing, potentially impacting financial results if future performance does not meet expectations[96]. - The company remains vigilant regarding the ongoing pandemic risks, implementing strict prevention measures to ensure that production and operations are not adversely affected[97]. Governance and Compliance - The company has not reported any significant changes in its major shareholders or control structure that would affect its operational independence[106]. - The report includes a commitment to transparency in shareholder meetings and decision-making processes[106]. - The internal control system was evaluated as effective, with no major defects identified in financial reporting controls as of December 31, 2021[137]. - The company guarantees that its senior management will not hold positions in controlled entities, ensuring operational independence[148].