Huada(SH:603358)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was CNY 4,716,577,077.85, representing a 14.10% increase compared to CNY 4,133,828,977.69 in 2020[13]. - Net profit attributable to shareholders increased by 56.38% to CNY 358,326,122.26 in 2021 from CNY 229,140,061.34 in 2020[13]. - The net cash flow from operating activities decreased by 38.12% to CNY 337,264,556.08 in 2021, down from CNY 544,994,505.63 in 2020[13]. - Basic earnings per share rose to CNY 0.82, a 12.33% increase from CNY 0.73 in 2020[15]. - The weighted average return on equity increased by 3.94 percentage points to 12.36% in 2021, compared to 8.42% in 2020[15]. - Total assets at the end of 2021 were CNY 5,650,513,811.06, an 11.22% increase from CNY 5,080,368,602.57 at the end of 2020[13]. - The net assets attributable to shareholders increased by 8.02% to CNY 3,010,884,902.80 at the end of 2021 from CNY 2,787,302,574.76 at the end of 2020[13]. - The company reported a net profit of CNY 121,134,529.56 in Q4 2021, with a total operating revenue of CNY 1,546,595,159.62 for the same quarter[16]. - Non-recurring gains and losses amounted to CNY 62,709,074.99 in 2021, significantly higher than CNY 15,077,969.52 in 2020[21]. - The fair value of trading financial assets increased by CNY 2,364,343.38 during the year, impacting profits by CNY 5,216,912.60[22]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 3 RMB per 10 shares, totaling 131,712,000 RMB, which accounts for 36.76% of the net profit attributable to shareholders for 2021[3]. - The total unallocated profit retained for future distribution is 756,702,455.74 RMB[3]. - The company implemented a cash dividend policy to ensure stable returns to shareholders, with the last distribution based on a total share capital of 313,600,000 shares[122]. - The company has a clear and effective cash dividend policy that aligns with its articles of association and shareholder resolutions[124]. Research and Development - The company invested 168.93 million yuan in R&D, accounting for 3.58% of its revenue, and developed 1,078 new products[24]. - The total R&D expenditure for the period was CNY 168,928,104.53, accounting for 3.58% of operating revenue[56]. - The company employed 155 R&D personnel, representing 6.2% of the total workforce[56]. - The company applied for 15 patents and obtained 11 patents, including 1 invention patent, bringing the total to 134 patents[24]. Risk Management and Compliance - The company reported no significant risks that could materially affect its operations during the reporting period[4]. - The company has a comprehensive risk management strategy in place to address potential future risks[4]. - The company has maintained a standard unqualified audit opinion from Zhongxinghua Accounting Firm[3]. - The company has established a comprehensive internal control system that meets the requirements set by the China Securities Regulatory Commission, effectively preventing major operational risks[128]. - The company has not disclosed any significant defects in its internal control during the reporting period[129]. Market Position and Partnerships - The company established partnerships with key clients such as Tesla and Great Wall Motors, enhancing its market position and order share[25]. - The company has established stable partnerships with major domestic automakers, including SAIC Volkswagen and Dongfeng Honda, enhancing its competitive edge[39]. - The automotive parts industry in China saw production and sales growth of 3.4% and 3.8% respectively in 2021, benefiting the company[28]. - The automotive industry faces challenges such as raw material cost fluctuations and chip shortages, but the demand for new energy vehicles is expected to drive stable growth in sales[82]. Governance and Management - The company’s governance structure complies with modern enterprise systems and the requirements of the Corporate Governance Code for listed companies[94]. - The company’s board of directors and senior management have undergone changes, with significant shareholding adjustments noted for several members[98]. - The company’s independent directors include professionals with backgrounds in education and finance, enhancing governance[106]. - The company’s management team has a diverse background in automotive parts manufacturing and marketing[106]. - The company is focusing on enhancing talent acquisition, training, and management capabilities to support its expanding business scale[92]. Financial Strategy and Investments - The company has a financial strategy that includes expanding its revenue streams through various business activities and investments in financial products[164]. - The company made long-term equity investments of CNY 51,000,000 in Jiangsu Hengyi Industrial Technology Co., Ltd.[77]. - The company has invested 47,500.00 thousand RMB in bank wealth management products using idle raised funds, with no overdue amounts[164]. - The total amount of entrusted financial management is 110,000,000.0 RMB, with actual income of 1,668,383.5 RMB[165]. Operational Efficiency - The company is focusing on enhancing its production management through ERP and MES systems to improve efficiency and reduce costs[42]. - The company has expanded its production bases across multiple cities, including Jiangsu and Guangdong, to reduce transportation costs and improve competitiveness[42]. - The company’s operational strategies include performance-based compensation to align management incentives with company goals[107]. Inventory and Cash Management - The company's inventory increased by 32.84% compared to the previous period, amounting to CNY 1,348,160,281.65[73]. - The company has not reported any overdue receivables from its wealth management investments, indicating effective cash management[164]. - The company recognizes revenue from automotive parts sales upon delivery and customer acceptance, which is a critical performance indicator[196]. Shareholder Information - The total number of ordinary shareholders increased from 9,297 to 10,394 during the reporting period[175]. - The largest shareholder, Chen Jinghong, holds 53.25% of the shares, totaling 233,787,410 shares, with 16,000,000 shares pledged[177]. - The second-largest shareholder, Ge Jianghong, holds 6.99% of the shares, totaling 30,695,689 shares, with 14,000,000 shares pledged[177].