Ellington(SH:603328)2022-04-12 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.68 RMB per 10 shares to all shareholders, based on the total share capital on the dividend distribution date [7]. - The board of directors has approved a profit distribution plan that does not involve capitalizing surplus reserves into share capital for the 2021 fiscal year [7]. - The company has cumulatively distributed cash dividends of ¥3.954 billion since its listing, exceeding 30% of the net profit attributable to shareholders each year [41]. - The company distributed a cash dividend of 1.00 yuan (including tax) for every 10 shares to all shareholders, totaling 99,844,261.1 yuan (including tax) for the 2020 profit distribution plan [194]. - The profit distribution plan was approved at the shareholders' meeting on June 2, 2021, with the implementation date set for June 17, 2021 [195]. Financial Performance - The company's operating revenue for 2021 was CNY 2,908,117,598.26, representing a 12.54% increase compared to CNY 2,583,994,444.94 in 2020 [24]. - Net profit attributable to shareholders decreased by 32.91% to CNY 150,607,764.04 from CNY 224,493,714.97 in the previous year [24]. - The net cash flow from operating activities fell by 42.54% to CNY 292,953,984.92, down from CNY 509,860,793.10 in 2020 [24]. - The total assets increased by 8.42% to CNY 4,617,201,205.66 compared to CNY 4,258,800,889.88 at the end of 2020 [24]. - Basic earnings per share decreased by 31.82% to CNY 0.15 from CNY 0.22 in 2020 [24]. - The weighted average return on net assets dropped by 1.89 percentage points to 4.50% from 6.39% in the previous year [24]. - The comprehensive gross profit margin was 13.51%, down 6.41 percentage points year-on-year [53]. - The total profit for the period was CNY 16,264.19 million, a decrease of 37.44% year-on-year [69]. - The company's total assets reached CNY 46.17 billion, with a debt-to-asset ratio of 27.04%, indicating strong capital strength [66]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period, including global economic fluctuations and raw material price volatility [9]. - The company has established a comprehensive risk management strategy to address potential risks in its operations [9]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties [9]. - The company has not faced any violations in decision-making procedures regarding external guarantees [9]. - The company emphasizes the importance of optimizing its capital structure and enhancing fund management to mitigate risks associated with global economic fluctuations [123]. Research and Development - R&D investment amounted to ¥95.4916 million, representing 3.28% of the company's total annual revenue, with 68 new core PCB products developed in areas such as servers and MINI LED [39]. - The company is focusing on R&D in areas such as low loss, embedded technology, and high-frequency applications [60]. - The company is investing in R&D and technology innovation to maintain competitive advantages, including establishing a central research institute and collaborating with universities [118]. - The company is investing 50 million RMB in R&D for new technologies aimed at enhancing product efficiency [154]. - Research and development investments increased by 10%, focusing on innovative technologies in the electronics sector [161]. Market Position and Strategy - The company has been recognized as one of the top 100 PCB manufacturers globally and in China, reflecting its strong market position and brand recognition [44]. - The company plans to continue focusing on expanding its market presence and enhancing product offerings in response to customer demand [27]. - The company is focusing on enhancing its market share through domestic and international market development, particularly in sectors like automotive electronics and renewable energy [116]. - The company plans to achieve a revenue growth target of 10%-30% for 2022, while controlling operating costs and expenses at reasonable levels [115]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 100 million RMB allocated for this purpose [154]. Corporate Governance - The company has established a fair, transparent, and effective performance evaluation and incentive mechanism for its directors, supervisors, and managers, aiming to attract and stabilize outstanding management and technical personnel [132]. - The company has completed the restructuring of its supervisory board, which now consists of 3 supervisors, including 2 shareholder supervisors and 1 employee supervisor, in compliance with legal requirements [132]. - The company maintains complete independence from its controlling shareholder, with no competition in the same industry, ensuring independent business operations and decision-making capabilities [136]. - The company has implemented strict internal controls and a financial accounting system, allowing for independent financial decision-making and management [137]. - The company has a structured remuneration policy based on actual performance and contributions of its directors and senior management [168]. Operational Efficiency - The company introduced multiple automated equipment, enhancing production efficiency and quality control, achieving an advanced level of automation in the industry [40]. - The overall automation level of the company has reached an advanced level in the industry, enhancing efficiency and product quality [61]. - The company aims to improve operational efficiency, targeting a 10% reduction in costs through process optimization [152]. - Operational efficiency improvements led to a 5% reduction in costs, contributing to higher profit margins [162]. - The company emphasizes the importance of cost control and efficiency improvements through lean production and resource optimization [118]. Employee Management - The company has a total of 12 directors and supervisors, with 5 of them receiving remuneration from related parties [144]. - The company has implemented a cash dividend policy, committing to distribute at least 20% of the distributable profits as cash dividends annually, barring special circumstances [192]. - The company plans to enhance employee skills through targeted internal training programs, focusing on technical, management, and operational competencies [190]. - The employee composition includes 3,056 production staff, 91 sales personnel, 846 technical staff, 31 financial staff, and 225 administrative staff [187]. - The company has not incurred any long-term or short-term borrowings since its establishment, reflecting a solid capital structure [66]. Environmental Compliance - The company has invested a total of 56.32 million RMB in environmental protection measures to ensure compliance with regulations and minimize environmental risks [124]. - The introduction of the first water pollutant discharge standards for the electronics industry is expected to positively impact PCB manufacturers by clarifying environmental regulations [48]. - The company has continuously improved its internal control system to meet the requirements of regulatory authorities and adapt to its management needs [200]. - The company has not disclosed any significant defects in its internal control during the reporting period [200]. - The company has postponed fundraising project construction to ensure quality and sustainable development, complying with regulatory requirements [184].