Valin Precision(SH:603356)2022-03-14 16:00Financial Performance - The net profit attributable to the parent company's shareholders for 2021 was CNY 2,028,708.07, with a year-end undistributed profit available for distribution of CNY 315,785,966.24 after accounting for legal reserves and previous distributions[6]. - The company achieved operating revenue of RMB 2.34 billion in 2021, representing a year-on-year growth of 16.84%[25]. - The net profit attributable to shareholders of the listed company was RMB 2.03 million, a decrease of 97.25% compared to the previous year[25]. - The company reported a net cash flow from operating activities of RMB -51.50 million, a significant decline from RMB 1.53 million in 2020[25]. - The weighted average return on equity decreased to 0.26% in 2021, down from 9.73% in 2020[26]. - The company reported a significant decline in the sales and production of wind power brake products, with a decrease of 47.89% in production and 47.47% in sales[47]. - The company reported a net loss of 3,732,000 in the latest financial period[87]. - Total revenue for the year was 53,857,500, showing a significant increase compared to the previous year[87]. - The company reported a total revenue of 1.33 billion in 2021, reflecting a year-over-year increase of 15%[90]. - The company’s total assets reached 80 billion, with net assets of 72.126 billion, and operating revenue of 29.212 billion, resulting in a net profit of 911.64 million[64]. Dividend Policy - The company plans not to distribute cash dividends or issue new shares for the 2021 fiscal year, focusing on funding for business expansion and new project investments[6]. - The company has a cash dividend policy, stating that at least 10% of the distributable profits will be distributed in cash if conditions are met[113]. - The company plans not to distribute cash dividends, stock dividends, or capital reserve transfers to share capital for the 2021 fiscal year due to significant funding needs for business expansion and new project investments[115]. - The cash dividend policy stipulates that for mature companies without major capital expenditures, cash dividends should account for at least 80% of profit distribution; for those with major expenditures, at least 40%[114]. Business Strategy and Expansion - The company is currently in a rapid development phase, requiring significant capital investment for daily operations and new business ventures[6]. - The company is actively pursuing new business opportunities and market expansion strategies to enhance growth prospects[6]. - The company plans to expand its business into photovoltaic and wind power accessory products, with new subsidiaries established for this purpose[33]. - The company plans to expand its market presence and invest in new product development to drive future growth[186]. - The company is focusing on enhancing its technological capabilities and exploring potential mergers and acquisitions to strengthen its competitive position[186]. - The company is actively transforming and expanding into new directions, focusing on photovoltaic support manufacturing and sales, with a strategic partnership established with China General Nuclear Power Group in early 2022[72]. Risk Management - The company has detailed potential risks in its report, advising investors to be cautious regarding future plans[10]. - The company has a comprehensive risk disclosure section in its report, highlighting its commitment to transparency and investor awareness[10]. - The company faces risks from customer concentration, as a significant portion of sales is dependent on core clients, which could impact operations if their conditions worsen[75]. - The company is exposed to raw material price fluctuations, particularly in steel and cast iron, which could adversely affect profit margins[75]. - The company emphasizes strict quality control to mitigate risks associated with product quality issues that could lead to recalls or legal liabilities[76]. Corporate Governance - The company held three shareholder meetings during the reporting period, all in compliance with relevant laws and regulations[83]. - The board of directors and supervisory board meetings were conducted according to regulations, ensuring effective governance and protection of shareholder interests[81]. - The company amended its articles of association, which was approved in the second extraordinary general meeting of 2021[81]. - The company has not faced any major differences in governance compared to regulations set by the China Securities Regulatory Commission[81]. - The company has established a robust internal control system to enhance decision-making efficiency and ensure compliance with legal regulations, which has been evaluated positively in the internal control report[120]. Research and Development - Research and development expenses increased by 6.78% to 36.52 million RMB, reflecting the company's commitment to product innovation[42]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency[90]. - New product development initiatives are underway, focusing on innovative technologies to improve operational efficiency[87]. - The company plans to enhance its research and development capabilities by increasing investment in innovation and developing new products with a focus on energy efficiency and environmental protection[73]. Environmental Responsibility - The company is committed to environmental protection, implementing an environmental management system (ISO14001:2015) and actively engaging in energy-saving and carbon reduction initiatives[128]. - The company has implemented various energy-saving projects to reduce carbon emissions, including upgrading old equipment and utilizing renewable energy sources[129]. - The company emphasizes compliance with labor laws and has established a comprehensive employee social insurance management system to protect employee rights[130]. Employee Relations - The total number of employees in the parent company and major subsidiaries is 1,209, with 328 in the parent company and 881 in subsidiaries[108]. - The company has a competitive salary and benefits policy, providing annual performance bonuses based on employee performance and company results[109]. - The company emphasizes employee training, implementing a comprehensive training system to enhance employee skills across all levels[111]. - The company is dedicated to enhancing employee satisfaction and health, fostering a harmonious labor relationship[130]. Financial Oversight - The audit report for the 2021 financial statements was issued by Xinyong Zhonghe Accounting Firm, confirming the accuracy and completeness of the financial data[5]. - The audit opinion confirms that the financial statements fairly reflect Hualing Precision's financial position and operating results for the year ended December 31, 2021[169]. - The company has maintained compliance with accounting standards and has provided adequate disclosures in its financial reporting[174].