Grace(SH:603256)2022-04-25 16:00Financial Performance - The company's consolidated net profit for 2021 was RMB 124,258,842.39, with a profit distribution plan proposing a cash dividend of RMB 0.984 per 10 shares, amounting to a total distribution of RMB 87,022,008.00, representing a distribution ratio of 70.03%[6] - The company's operating revenue for 2021 was CNY 808,159,530.55, representing a 30.23% increase compared to CNY 620,574,333.68 in 2020[27] - The net profit attributable to shareholders for 2021 was CNY 124,258,842.39, a 6.13% increase from CNY 117,078,791.90 in 2020[27] - The net cash flow from operating activities decreased by 25.66% to CNY 111,460,067.21 in 2021 from CNY 149,935,687.64 in 2020[27] - The total assets at the end of 2021 were CNY 2,469,666,904.37, an increase of 11.17% from CNY 2,221,506,507.79 at the end of 2020[27] - The basic earnings per share for 2021 was CNY 0.14, up 7.69% from CNY 0.13 in 2020[27] - The weighted average return on equity for 2021 was 8.28%, an increase of 0.19 percentage points from 8.09% in 2020[27] - The company reported a significant increase in financial expenses, up 605.93% to 23.29 million yuan, primarily due to increased interest costs[118] - The total operating cost for the current period is 518,232,028.13 CNY, a 31.07% increase compared to the previous year's total of 395,396,048.21 CNY[128] Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[8] - The company has received a standard unqualified audit report from KPMG Huazhen, ensuring the authenticity and completeness of the financial report[5] - The board of directors has confirmed that all members attended the board meeting, ensuring proper governance and oversight[5] - The company operates under the supervision of the China Securities Regulatory Commission and adheres to the regulations set forth by the Shanghai Stock Exchange[19] - The company has established a comprehensive governance structure, with a dedicated board secretary and securities affairs representative to ensure effective communication with stakeholders[22] Market and Industry Trends - The GDP of China grew by 8.1% in 2021, significantly higher than the government's target of 6%[38] - The electronic information manufacturing industry in China saw a 15.7% increase in added value in 2021, ranking 6th among 41 major industries, marking the highest growth rate in nearly a decade[62] - The global smartphone market is anticipated to recover further with the development of 5G and foldable smartphone technologies, alongside economic growth[70] - The demand for high-end electronic fabrics is expected to continue growing, with a focus on thinner and higher functionality products[153] - The PCB industry in China grew from $29.73 billion in 2017 to $34.8 billion in 2020, with a compound annual growth rate (CAGR) of 5.4%, surpassing the global average growth rate[154][156] Product Development and Innovation - The company is focused on expanding its market presence and enhancing its product offerings in the electronic materials sector[18] - The company has shifted from relying on imported high-end raw materials to self-developing high-end electronic yarn products, effectively reducing production costs and enhancing supply chain control[46] - The company has established nine ongoing research projects focused on new products and technologies to enhance market share and product quality[139] - The company applied for 10 new invention patents during the reporting period, focusing on high-frequency and IC packaging substrate production methods[140] - The company aims to enhance its product offerings in high-end applications, including IC packaging substrates and high-frequency substrates, to meet customer needs and gain market favor[196] Challenges and Risks - The company emphasizes the importance of risk awareness regarding forward-looking statements related to its operational and strategic plans, advising investors to consider investment risks[7] - The company faces challenges from ongoing trade tensions and fluctuating market demands, necessitating flexible management and precise control strategies[40] - The global economic environment remains complex, with supply chain disruptions and rising commodity prices impacting the electronic fabric industry[51] Employee and Operational Management - The company has implemented an employee stock ownership plan to enhance employee engagement and commitment to the company's goals[44] - The company is committed to cultivating specialized talent to improve management capabilities and operational efficiency, ensuring a solid foundation for future growth[48] - The company has a professional management and technical team with an average industry experience of over 20 years, enhancing operational efficiency[110] Financial Position and Cash Flow - The net cash flow from investment activities in 2021 was -712,638,316.09 CNY, a year-on-year increase in net outflow of 859,570,429.29 CNY due to increased investments in construction projects and structured deposits[144] - The net cash flow from financing activities in 2021 was 136,063,384.85 CNY, showing a slight year-on-year increase of 1,923,879.22 CNY[144] - As of the end of the reporting period, cash and cash equivalents decreased by 58.35% to 291,637,840.11 CNY, primarily due to the use of raised funds[145] - Accounts receivable increased by 31.55% to 251,541,310.21 CNY, attributed to increased sales[145] - Long-term borrowings rose by 40.36% to 501,399,723.07 CNY, indicating increased financing for operations[147] Production and Capacity - The company specializes in the production and sales of high-end electronic-grade glass fiber cloth and ultra-fine yarn, achieving integrated production since 2021[55] - The design capacity for electronic yarn is 7,200 tons with a utilization rate of 60.65%[175] - The design capacity for electronic cloth is 13,200 million meters with a utilization rate of 98.87%[175] - The company successfully launched the ultra-fine electronic yarn project in 2021, achieving full production capacity by Q3 2021[176] Strategic Goals - The company plans to increase market share by innovating products and expanding into high-end markets, particularly in sectors like 5G, AI, and new energy vehicles[47] - The company aims to leverage scale and technological advantages to reduce procurement costs and control manufacturing expenses, contributing to sustainable development[200] - The strategy includes increasing production capacity for high-end products and accelerating new product development to capture more market share and replace imports[200]