HMT(SH:603306)2022-04-28 16:00Financial Performance - In 2021, Huamao Technology achieved operating revenue of 1.206 billion yuan, a year-on-year increase of 27.01%[3] - The net profit for 2021 was 176 million yuan, with a year-on-year growth of 16.84% after excluding stock option expenses[3] - The company's total assets and net assets reached 3.114 billion yuan and 2.662 billion yuan respectively, both hitting record highs since its establishment[3] - The company's operating revenue for 2021 was approximately RMB 1.206 billion, an increase of 27.01% compared to RMB 949.5 million in 2020[25] - The net profit attributable to shareholders for 2021 was approximately RMB 176.1 million, a decrease of 12.39% from RMB 201 million in 2020[25] - The net profit after deducting non-recurring gains and losses was approximately RMB 132.1 million, down 30.55% from RMB 190.2 million in 2020[25] - The company's total assets at the end of 2021 were approximately RMB 3.114 billion, an increase of 12.75% from RMB 2.762 billion at the end of 2020[27] - The net assets attributable to shareholders at the end of 2021 were approximately RMB 2.662 billion, an increase of 8.32% from RMB 2.457 billion at the end of 2020[27] - The basic earnings per share for 2021 were RMB 0.571, a decrease of 12.15% compared to RMB 0.65 in 2020[27] - The diluted earnings per share for 2021 were RMB 0.563, down 13.38% from RMB 0.65 in 2020[27] - The weighted average return on equity for 2021 was 6.89%, a decrease of 1.36 percentage points from 8.25% in 2020[27] - The company reported a net cash flow from operating activities of approximately RMB 200.2 million, a decrease of 20.15% from RMB 250.7 million in 2020[25] - Quarterly revenue for Q4 2021 was approximately RMB 394.1 million, showing a strong performance compared to previous quarters[29] Business Expansion and Strategy - The company plans to accelerate the intelligent transformation of its passive safety production lines and incubate new technologies such as wearable smart protective airbags and lightweight automotive materials[5] - The company aims to achieve record high revenue in 2022 and expand its international business through overseas production base construction and talent recruitment[5] - Huamao Technology's strategic goals include deepening its layout in new material research and actively expanding international business[5] - The company’s growth strategy focuses on high-end, domestic, and new energy markets, particularly benefiting from the growth of new energy vehicle manufacturers like Tesla and BYD[4] - The company is currently testing 10 types of I resins in client import tests[40] - The company plans to raise up to 1.05 billion CNY through convertible bonds for expansion and new material R&D, including projects in Vietnam and Xiamen[40] - The company aims to enhance cost management and control by optimizing processes and implementing a flexible raw material procurement plan[105] - The company is accelerating the development of international business, with plans for overseas production base expansion and international client acquisition in 2022[105] - The company is incubating new technologies through its research institute, including wearable smart airbags and lightweight automotive materials, to create a "second growth curve"[105] - The company is actively expanding its photolithography materials production capacity, aiming for completion and trial production of its production base by Q2 2023[106] Investments and Joint Ventures - The company invested in a leading domestic photoresist enterprise, Xuzhou Bokan, and established a joint venture, Dongyang Huaxin, to enhance its position in the photoresist materials sector[4] - The company became the second-largest shareholder of Xuzhou Bokan, holding 26.21% of its shares, with photolithography revenue increasing by 177%[38] - The company holds a 26.73% equity stake in Xuzhou Bokan after converting a convertible loan and additional investment totaling 225.78 million RMB[91] - A joint venture, Dongyang Huaxin, was established with a registered capital of 280 million RMB, where the company holds a 40% stake[92] - The company established a wholly-owned subsidiary, Hainan Huamao Nenghe Technology Co., Ltd., with a registered capital of 150 million RMB[94] - The company’s investment in Xuzhou Bokan totaled 800 million RMB, including a 300 million RMB initial investment[95] Market and Industry Insights - In 2021, China's automotive production and sales reached 26.08 million and 26.275 million units, respectively, with year-on-year growth of 3.4% and 3.8%[41] - The passenger car market maintained a scale of over 20 million units, with production and sales of 21.408 million and 21.482 million units, reflecting year-on-year growth of 7.1% and 6.5%[43] - New energy vehicle sales exceeded 3.54 million units, with a market share of 13.4%, up from 8% the previous year, indicating a 60% year-on-year growth[43] - Chinese brand passenger cars sold 9.543 million units, achieving a market share of 44.4%, an increase of 6% year-on-year[43] - In 2021, automobile exports reached 2.015 million units, doubling year-on-year, with new energy vehicle exports reaching 310,000 units, a threefold increase[45] - The global automotive passive safety products market size was approximately $18 billion in 2021, expected to grow to over $25 billion by 2024[88] Research and Development - The company increased its R&D expenses to 57.17 million RMB, a rise of 23.52% year-on-year, reflecting a commitment to innovation[63] - The company employed 206 R&D personnel, making up 12.31% of the total workforce[78] - The company has established a wholly-owned subsidiary, Dongyang Huamao New Materials Technology Research Institute Co., Ltd., to enhance its R&D capabilities and technology reserves[101] - The company is focusing on expanding its international business to tap into new growth opportunities and customer resources[102] - The company is investing 50 million in R&D for new technologies aimed at enhancing operational efficiency[125] Corporate Governance and Management - The company has proposed to purchase liability insurance for its directors and senior management, enhancing risk management practices[118] - The company has implemented a stock option incentive plan to align management interests with shareholder value[118] - The company has established a salary structure for senior management that includes base salary, performance bonuses, and other allowances, adjusted based on market conditions and company performance[173] - The internal control system was reported to be effective, with no significant deficiencies noted during the reporting period[174] - The company has a structured approach to training, focusing on enhancing professional skills and compliance with legal regulations[153] Social Responsibility and Environmental Commitment - The company donated 200,000 yuan to support educational initiatives in impoverished areas as part of its social responsibility efforts[180] - The company has obtained ISO 14001 and ISO 45001 certifications, emphasizing its commitment to environmental management and occupational health and safety[177] - The company emphasizes employee training and development to enhance skills and maintain employee rights[179] Shareholder Engagement and Dividend Policy - A cash dividend of 1.148 yuan per 10 shares is proposed, totaling 35,245,862.25 yuan to be distributed to shareholders[9] - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profits to be distributed as cash dividends each year[157] - The company plans to distribute cash dividends amounting to at least 10% of the average distributable profit over the next three years (2022-2024) [163] - The board of directors must consider industry characteristics, development stage, operational model, profitability, and major capital expenditure plans when proposing dividend policies [164] - The company has established a policy to communicate with shareholders, especially minority shareholders, through various channels before the dividend proposal is reviewed [164]