XUSHENG(SH:603305)2022-03-22 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 413,224,671.48 RMB for the year 2021, with a net profit of 423,213,136.48 RMB for the parent company after a 10% statutory surplus reserve of 42,321,313.65 RMB[6]. - The company's operating revenue for 2021 was CNY 3,023,370,745.07, representing an 85.77% increase compared to CNY 1,627,502,741.28 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 413,224,671.48, a 24.16% increase from CNY 332,817,213.33 in 2020[24]. - The company's operating profit was CNY 466,760,734.32, up 20.45% from the previous year[61]. - Net profit reached CNY 412,539,196.41, reflecting a growth of 23.97% year-on-year[61]. - The total assets at the end of 2021 were CNY 8,177,779,462.02, an increase of 78.09% compared to CNY 4,592,050,088.29 at the end of 2020[24]. - The basic earnings per share for 2021 was CNY 0.92, up 19.48% from CNY 0.77 in 2020[25]. - The diluted earnings per share for 2021 was also CNY 0.92, reflecting a 19.48% increase from CNY 0.77 in 2020[28]. - The weighted average return on equity for 2021 was 12.09%, a decrease of 0.44 percentage points from 12.53% in 2020[28]. Profit Distribution - The proposed profit distribution plan includes a cash dividend of 1.2 RMB per 10 shares, totaling 53,644,617.84 RMB (including tax), and a capital reserve conversion of 4 shares for every 10 shares held, increasing the total share capital to 625,853,875 shares[7]. - The company plans to maintain the distribution and conversion ratios unchanged, adjusting the total cash dividend and the number of shares accordingly if there are changes in the total share capital before the distribution date[7]. - The cash dividend distribution must not be less than 10% of the distributable profit for the year[161]. - The company aims for a minimum cash dividend ratio of 80% during mature stages without significant capital expenditures[161]. - The company will only distribute dividends if the annual or semi-annual distributable profit is positive and cash flow is sufficient[161]. - The independent directors are responsible for reviewing and providing opinions on the profit distribution proposals[164]. - The company will ensure that the profit distribution policy is transparent and compliant with regulations[164]. Research and Development - R&D expenses reached RMB 129.27 million, accounting for 4.28% of revenue, with successful developments in large structural components and material innovations to meet high-performance requirements[36]. - Research and development expenses increased by 124.47% to CNY 129,273,552.45, indicating a strong commitment to innovation[62]. - The company is actively expanding its R&D in body structure components and integrated products, focusing on advanced manufacturing technologies[104]. - The company has received 11 invention patents and 151 utility model patents as of the end of 2021, showcasing its technological advancements[57]. - The number of R&D personnel is 441, accounting for 14.93% of the total workforce[79]. Market Position and Strategy - The company has established a strong client base among global automotive manufacturers, focusing on customized product development to meet specific client needs[47]. - The company is recognized as a leading player in the precision aluminum alloy component sector, with rapid revenue growth and a strong competitive position[52]. - The company has established a strong competitive advantage in the precision aluminum alloy automotive parts sector, particularly in the electric vehicle market[54]. - The company has developed a comprehensive customer base, including Tesla, Polaris, and CATL, enhancing its market position[58]. - The automotive lightweighting trend is expected to drive significant growth, with a target of 6.4 million new energy vehicles in China by 2025[53]. - The company aims to leverage the rapid development of the new energy vehicle industry to enhance its competitive advantage in the automotive parts sector[97]. - The company plans to focus on the blue ocean market of automotive lightweighting, targeting Europe, North America, and Asia-Pacific for market expansion[100]. Risks and Challenges - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a substantive commitment to investors, urging caution regarding investment risks[8]. - The company faces risks from fluctuating raw material prices, particularly for alloy aluminum, which could impact production costs and profit margins[110]. - The overall gross margin decreased in 2021 due to rising raw material prices, highlighting potential future risks to profitability[112]. - The company acknowledges the risk of increased competition in the aluminum alloy components market for electric vehicles, which could affect its market position and financial performance[109]. Corporate Governance - The company held 4 shareholder meetings during the reporting period, with all meetings attended by legal representatives to ensure the protection of shareholder rights[115]. - The board of directors consists of 6 members, including 3 independent directors, and held 11 meetings during the reporting period[115]. - The supervisory board, comprising 3 members, conducted 10 meetings to oversee major company matters and ensure compliance with legal requirements[115]. - The company has established a long-term mechanism to enhance corporate governance and promote healthy development[118]. - The company is committed to maintaining equal treatment of all shareholders, particularly minority shareholders, ensuring they can fully exercise their rights[115]. Environmental Responsibility - The company has been included in the "Ningbo City 2022 First Batch of Ecological Environment Supervision Law Enforcement Positive List," demonstrating its commitment to environmental responsibility[178]. - The company has adopted new environmental protection technologies and increased investment in environmental protection, improving its green image[178]. - The company has implemented energy-saving measures in power supply and distribution to reduce carbon emissions, contributing positively to energy consumption reduction[179]. - The company’s waste management includes recycling general solid waste and proper disposal of hazardous waste, ensuring minimal environmental impact[177]. - The company has established an energy management organization and a dedicated energy-saving management team to monitor and optimize energy consumption, including monthly management of energy usage per unit for key equipment[181]. Employee Development - The company reported a total of 2,953 employees, with 1,891 in production, 495 in technical roles, and 530 in administrative positions[155]. - The company has established a competitive compensation system based on industry standards and annual performance, ensuring alignment with its strategic goals[156]. - The company conducted training programs aimed at enhancing employee skills and supporting its development strategy, covering various levels from new hires to senior management[159]. - The company has enhanced its talent development initiatives to boost employee engagement and organizational efficiency[108].