GONGJIN(SH:603118)2022-04-14 16:00Financial Performance - The net profit attributable to the parent company for 2021 was CNY 395,560,531.20, with a year-end distributable profit of CNY 937,454,746.85[6]. - The proposed cash dividend distribution is CNY 1.50 per 10 shares, totaling CNY 118,819,999.80, which accounts for 30.04% of the net profit attributable to the parent company[6]. - The company's operating revenue for 2021 was ¥10,808,249,363.33, representing a 22.24% increase compared to ¥8,841,982,631.52 in 2020[24]. - The net profit attributable to shareholders for 2021 was ¥395,560,531.20, a 14.08% increase from ¥346,729,990.00 in 2020[24]. - The net cash flow from operating activities for 2021 was ¥411,162,291.69, up 23.60% from ¥332,649,121.12 in 2020[24]. - The total assets at the end of 2021 were ¥9,767,281,561.97, an 11.80% increase from ¥8,736,535,541.50 at the end of 2020[24]. - The basic earnings per share for 2021 was ¥0.51, reflecting a 13.33% increase from ¥0.45 in 2020[27]. - The weighted average return on net assets for 2021 was 8.16%, an increase of 0.56 percentage points from 7.60% in 2020[27]. - The company reported a total of ¥79,641,180.50 in non-recurring gains and losses for 2021, compared to ¥72,802,383.88 in 2020[31]. - The company achieved a total revenue of 1,080,824.94 million yuan in 2021, representing a year-on-year growth of 22.24%[36]. - Net profit attributable to shareholders reached 39,556.05 million yuan, with a year-on-year increase of 14.08%[36]. Business Operations and Strategy - The company is focused on long-term development and investor returns, as reflected in its profit distribution plan[6]. - The company is investing in automation and information systems to enhance operational efficiency and drive talent development[35]. - The company aims to optimize its asset structure by divesting non-core businesses, focusing on high-end manufacturing capabilities in the communication sector[42]. - The company is focusing on 5G product development, having completed the R&D of 5G integrated base stations and achieved commercial contracts in the transportation sector[44]. - The company plans to expand its market presence by entering the Haining High-tech Industrial Park for the production of network communication products and IT servers[43]. - The company aims to support the digital transformation of society through its investments in automation and information technology[49]. - The company has established a wholly-owned subsidiary, Suzhou Microelectronics, to expand into the sensor business, enhancing its product structure and economic efficiency[66]. - The company has applied for 106 patents during the reporting period, including 28 patents in the 5G sector, demonstrating its commitment to innovation[71]. - The company has established a production technology research institute and developed a 2021-2025 automation plan to enhance operational efficiency[49]. Governance and Compliance - The company maintains a strong commitment to transparency and accuracy in its financial reporting, as confirmed by the audit report from Asia-Pacific (Group) CPA[5]. - The company has a robust governance structure with all board members present at the meeting[5]. - The company emphasizes strict compliance with legal regulations and internal governance for managing insider information and investor relations[146]. - The company has established a robust investor relations management system to ensure equal access to information for all investors[145]. - The company has not faced any major changes in competition or conflicts of interest with its controlling shareholders[148]. - The company is committed to maintaining independence in its operations, assets, and financial management despite the presence of controlling shareholders[148]. - The company has received awards for its governance practices, reflecting its commitment to protecting the interests of all shareholders, especially minority shareholders[138]. Employee Engagement and Development - The company invested CNY 22.02 million in talent development, conducting 3,300 training sessions with 373,000 participants in 2021[48]. - Human resource costs increased by CNY 140 million in 2021, reflecting the company's commitment to employee engagement and retention[48]. - The company launched its first employee stock ownership plan and an incentive plan covering nearly 600 core management and technical personnel[48]. - The company has established a diversified performance-driven compensation system to enhance employee value realization[189]. - The training program aims to standardize and normalize development, fostering a learning organization to attract and retain talent[190]. - The company’s compensation is determined based on operational goals, financial indicators, industry position, and individual responsibilities[167]. Market and Industry Trends - The global broadband access equipment market revenue reached USD 16.3 billion in 2021, growing by 12% year-on-year, driven by PON infrastructure spending[57]. - In 2021, the number of 5G base stations in China reached 1.425 million, with a net increase of 650,000, accounting for over 60% of the global total[58]. - The integrated circuit industry in China achieved a sales revenue of CNY 1,045.83 billion in 2021, marking an 18.2% year-on-year growth[61]. - The packaging and testing industry sales in China reached CNY 276.3 billion in 2021, with a year-on-year growth of 10.1%[63]. Risk Management - The report includes forward-looking statements regarding future development strategies and financial conditions, emphasizing the importance of investor awareness of risks[7]. - The company has detailed various risks faced in production and operations, along with corresponding countermeasures in the management discussion section[10]. - The company recognizes the risks associated with innovation and market entry in new business areas, which may involve high investment and longer payback periods[133]. - The company will continue to strengthen its supply chain management to mitigate risks from raw material price fluctuations, which could impact gross margins[134]. - The ongoing COVID-19 pandemic presents uncertainties that could affect the company's operations, but it will leverage its supply chain advantages to stabilize business performance[136]. Shareholder and Management Information - The chairman and a director, Wang Dawei and Tang Fonan, reduced their holdings by 7,750,000 shares each, resulting in year-end holdings of 172,013,303 shares[158]. - The total pre-tax remuneration for Wang Dawei and Tang Fonan was 370,100 RMB each for the reporting period[158]. - The total pre-tax remuneration for the general manager, Hu Zumin, was 1,445,000 RMB for the reporting period[158]. - The total compensation for all directors, supervisors, and senior management at the end of the reporting period amounted to RMB 11,062,558.50[167]. - The company has maintained a consistent leadership structure with no new appointments or departures reported during the period[166]. - The company has not reported any new strategies or significant market expansions during the reporting period[164].