Riyue HI(SH:603218)2022-04-26 16:00Financial Performance - The net profit attributable to the parent company for 2021 was ¥667,348,400.24, with the parent company achieving a net profit of ¥225,552,596.06[8]. - The proposed cash dividend is ¥2.5 per 10 shares, totaling ¥241,898,272.25 (including tax), which represents 36.25% of the net profit attributable to shareholders[9]. - The company plans to allocate 10% of the parent company's net profit, amounting to ¥22,555,259.61, to the statutory surplus reserve[8]. - The total distributable profit within the consolidated financial statements is ¥3,061,019,464.48 after adding undistributed profits from previous years[8]. - In 2021, the company's operating revenue was CNY 4,712,078,327.73, a decrease of 7.80% compared to 2020[30]. - The net profit attributable to shareholders was CNY 667,348,400.24, down 31.86% from the previous year[30]. - The net profit after deducting non-recurring gains and losses was CNY 561,869,747.47, a decline of 41.39% year-on-year[30]. - The net cash flow from operating activities increased by 27.56% to CNY 640,402,345.30[30]. - The company's total assets grew by 9.02% to CNY 11,345,495,410.18 at the end of 2021[30]. - The net asset attributable to shareholders increased by 4.69% to CNY 8,686,957,163.19[30]. - Basic earnings per share decreased by 45.24% to CNY 0.69[30]. - The weighted average return on equity fell by 13.61 percentage points to 7.84%[30]. Risk Management - The report includes a risk statement regarding forward-looking statements, indicating potential market condition impacts[10]. - The company has detailed various risks and countermeasures in the report, particularly in the section discussing future development[13]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[11]. - The company has not violated decision-making procedures for providing guarantees[11]. - The company is facing risks from rising raw material prices, which could impact cash flow and profit margins if costs cannot be passed on to customers[115]. Research and Development - The company invested a total of 184.04 million RMB in R&D during the reporting period, resulting in a total of 111 patents, including 47 invention patents[43]. - The company invested 18,403.88 million RMB in R&D in 2021, maintaining a stable investment to enhance its technological advantages[60]. - The number of R&D personnel is 233, accounting for 6.90% of the total workforce[86]. - The company did not capitalize any R&D expenses, maintaining a focus on independent innovation and product development[89]. - The company is committed to the research and development of ductile iron thick-section technology, aiming to enhance product performance to the level of forged shafts and expand into new markets such as nuclear waste storage[110]. Production and Capacity - The company maintained a production capacity utilization rate at a relatively high level, with total sales of 444,400 tons and production of 442,900 tons in 2021[43]. - The company plans to increase its casting capacity to over 600,000 tons with the construction of a new project that will add 132,000 tons of capacity[43]. - The company has an annual casting capacity of 480,000 tons and has completed the construction of a 100,000-ton precision machining project, with a 120,000-ton marine equipment key casting precision machining project expected to be completed by Q2 2022, leading to a total precision machining capacity of 220,000 tons[53]. - The company has established a stable customer base and is recognized as one of the top 300 key enterprises in China's casting industry, as well as being ranked among the top 100 comprehensive enterprises in the industry[53]. - The company is focusing on expanding its international market presence and adjusting its product structure to align with the trend of larger wind power equipment[111]. Environmental Compliance - The company reported a total discharge of 825 kg COD, 91.65 kg ammonia nitrogen, and 600 kg suspended solids from wastewater, adhering to the first-level discharge standards[174]. - The company’s total emissions of SO2 and NOX were reported at 31.67 tons and 3.16 tons respectively, with no exceedances noted[174]. - The company has established a wastewater treatment facility that meets the first-level discharge standards as per GB8978-1996[178]. - The company has conducted environmental monitoring for wastewater, waste gas, and noise at its facilities, with all pollutants meeting legal discharge standards[183]. - The company has implemented several projects to reduce carbon emissions, including a solar photovoltaic system expected to save approximately 5.13 million kWh annually[188]. Corporate Governance - The company held one annual general meeting during the reporting period, ensuring compliance with legal requirements and protecting the rights of all shareholders[124]. - The board of directors convened six times during the reporting period, with all members fulfilling their duties diligently and in accordance with regulations[123]. - The company maintained independence from its controlling shareholder in personnel, assets, finance, organization, and business aspects[123]. - The company has established a robust internal control system and improved information disclosure practices to enhance transparency[123]. - The company’s governance structure aligns with the requirements of the Company Law and relevant regulations, with no significant discrepancies noted[123]. Employee Management - The total number of employees in the parent company is 752, while the total number of employees in major subsidiaries is 2,627, resulting in a combined total of 3,379 employees[150]. - The employee composition includes 2,628 production personnel, 46 sales personnel, 233 technical personnel, 38 financial personnel, and 434 administrative personnel[150]. - The company aims to enhance its compensation system to align with market standards and improve employee motivation and retention[153]. - The company has established a comprehensive training system to support employee development across various skills and competencies[154]. - The company will regularly revise employee salary guidelines to maintain competitiveness and fairness internally[153]. Market Trends - The wind power industry is expected to see an average annual new installed capacity of over 50 GW during the 14th Five-Year Plan period, with a cumulative installed capacity target of at least 800 million kW by 2030[104]. - The injection molding machine market is recovering strongly post-pandemic, with significant demand driven by the automotive and home appliance sectors[107]. - The overall trend in the injection molding machine industry is positive, with growth driven by increased demand for plastic products across various sectors[107]. - The company is strategically shifting production capacity towards injection molding products in response to strong market demand[43]. Financial Management - The company has established measures to ensure that executive compensation is linked to the execution of return measures[200]. - The company has committed to not engaging in any competitive activities that may conflict with its business operations, ensuring protection of shareholder interests[194]. - The company has made commitments to ensure that the prospectus for its initial public offering does not contain false records or misleading statements[197]. - The company will not misuse its controlling position to interfere with management activities or infringe on company interests[200].