Sinotec(SH:603121)2022-04-26 16:00Dividend Policy - The company plans to distribute a cash dividend of 2.00 CNY (including tax) for every 10 shares and to convert 3 shares from capital reserves for every 10 shares[6]. - The profit distribution policy requires that at least 20% of the distributable profit for the year must be distributed as cash dividends, with a cumulative cash distribution over the last three years not less than 30% of the average annual distributable profit[138]. - The company will retain undistributed profits for future operational needs and will not propose a cash distribution if it does not meet the established profit distribution policy[138]. - The independent directors are required to provide clear opinions on the profit distribution proposals and any adjustments to the profit distribution policy[137]. - The company must communicate with shareholders, especially minority shareholders, to gather their opinions before the annual general meeting on cash dividend proposals[138]. - The profit distribution policy can only be modified with a two-thirds majority vote from shareholders present at the meeting, following a review by the supervisory board[137]. - The supervisory board will oversee the execution of the profit distribution policy and the decision-making process by the board of directors[138]. - The company must disclose reasons for not proposing a cash distribution if it is profitable and has positive distributable profits[139]. Financial Performance - The company's operating revenue for 2021 was RMB 921,294,959.24, representing a 44.30% increase compared to RMB 638,442,969.56 in 2020[22]. - The net profit attributable to shareholders for 2021 was RMB 68,177,913.77, which is a 15.70% increase from RMB 58,928,691.82 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 55,633,816.63, reflecting a 21.31% increase from RMB 45,859,231.41 in 2020[22]. - The net cash flow from operating activities for 2021 was RMB 94,873,298.89, showing a decrease of 14.67% compared to RMB 111,182,883.35 in 2020[22]. - As of the end of 2021, the total assets amounted to RMB 1,578,730,547.64, a decrease of 1.69% from RMB 1,605,813,857.18 at the end of 2020[22]. - The net assets attributable to shareholders at the end of 2021 were RMB 1,154,942,603.80, which is a 3.23% increase from RMB 1,118,822,267.10 at the end of 2020[22]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[8]. - The company has disclosed potential risks in the management discussion and analysis section of the report[8]. - The annual report includes a forward-looking statement risk declaration, advising investors to be aware of investment risks[7]. - The company has not faced any substantial operational risks during the reporting period[8]. Governance and Compliance - The board of directors has confirmed the accuracy and completeness of the annual report, with all members present at the meeting[4]. - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[5]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company has not experienced any insider trading incidents during the reporting period, adhering to strict confidentiality protocols[97]. - The company maintains a governance structure that ensures clear responsibilities and effective checks and balances among its board, supervisory board, and management[95]. Research and Development - The company is actively engaged in research and development of new technologies to improve product efficiency and compliance with emission standards[22]. - The company emphasizes R&D in high-temperature metal materials and advanced casting technologies, maintaining a strong focus on innovation[45]. - The company has submitted multiple patent applications and is developing new materials to meet stringent future emission standards[46]. - The company is expanding its sensor division, focusing on pressure sensors and magnetic sensors for various applications, including automotive and industrial sectors[40]. Market Strategy - The company is focused on expanding its market presence and enhancing its product offerings in response to evolving industry standards[22]. - The company plans to explore potential mergers and acquisitions to strengthen its market position and drive growth[22]. - The company aims to expand its product offerings in high-margin and high-value areas, leveraging its proximity to R&D and market trends[34]. - The company is positioned as a leading supplier in the global turbocharger parts market, with a significant share in the EGR component segment[82]. Employee and Management - The company has a total of 1,612,847.95 hours of outsourced labor, with total payments amounting to 42,310,839.68 RMB[133]. - The company continues to invest in employee training to maintain its competitive advantage in the traditional automotive turbocharging sector[132]. - The company has implemented a performance management mechanism for senior management, linking evaluations to compensation, bonuses, promotions, and annual salary adjustments[144]. - The company has a structured approach to determining the remuneration of its senior management, considering industry standards and individual contributions[114]. Environmental Responsibility - The company faced an administrative penalty of 100,000 RMB due to environmental violations related to air pollution control measures[149]. - The company installed various air pollution control facilities, ensuring compliance with emission standards[150]. - The company adopted energy monitoring platforms and automated production lines to reduce energy consumption and carbon emissions[152]. Shareholder Commitments - The controlling shareholder, Huajian Investment, committed to not transferring or entrusting the management of shares held before the IPO for 36 months from the date of listing[161]. - The actual controller, Wu Huailai, made a similar commitment regarding his shares, with an automatic extension of the lock-up period if certain price conditions are met[162]. - Other natural person shareholders, including directors and senior management, committed to not transferring more than 25% of their shares annually during their tenure and for six months after leaving[163]. - The company has established measures to prevent conflicts of interest and competition from its controlling shareholders[172].