Etron(SH:603380)2022-04-01 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥1.75 billion, representing a 35.88% increase compared to ¥1.29 billion in 2020 [24]. - Net profit attributable to shareholders increased by 37.33% to approximately ¥227.40 million from ¥165.59 million in the previous year [24]. - The basic earnings per share rose by 37.86% to ¥1.42, while diluted earnings per share also increased by the same percentage [25]. - The net profit after deducting non-recurring gains and losses increased by 45.43% to approximately ¥209.59 million [24]. - The company's total assets grew by 29.42% to approximately ¥1.78 billion from ¥1.38 billion in 2020 [24]. - The weighted average return on equity increased by 3.52 percentage points to 21.57% [25]. - The gross profit margin for the main business increased by 1.57 percentage points to 27.79% in 2021, with significant contributions from communication, consumer electronics, medical electronics, and automotive electronics products [66]. - The net cash flow from operating activities decreased by 51.17% to approximately ¥98.72 million, primarily due to increased material payments for inventory [26]. Dividend Distribution - The company plans to distribute a cash dividend of 1.90 CNY per 10 shares, totaling approximately 30,268,805.00 CNY, which represents 30.12% of the net profit attributable to shareholders [6]. - The total number of shares eligible for profit distribution is 159,309,500 after excluding shares held in the repurchase account [6]. - The company repurchased shares amounting to 38,221,931.00 CNY during the year, which is considered as part of the cash dividend distribution [6]. Risk Management - The report includes a detailed description of potential risks and countermeasures related to future developments [10]. - The company has strengthened its internal control framework, including internal audit and customer credit management systems, to improve risk management and operational compliance [43]. - The company faces risks related to macroeconomic fluctuations, with its performance closely tied to the overall economic environment [106]. - The ongoing COVID-19 pandemic has caused economic impacts and uncertainties, increasing the risk of a downturn in the company's future performance [111]. Corporate Governance - The board of directors and management have confirmed the accuracy and completeness of the financial report [4]. - The governance structure of the company is in compliance with relevant laws and regulations, ensuring the protection of minority shareholders' rights [113]. - The company has implemented measures to strengthen information disclosure, ensuring transparency and compliance with legal requirements [116]. - The company has maintained compliance with regulatory requirements, with no reported penalties from securities regulatory agencies in the past three years [131]. Research and Development - The company has established a research and development team of over 250 people to provide customized services, including product design and reliability analysis, to meet diverse customer needs [50]. - The company's R&D expenses increased by 46.81% to CNY 78,907,735.70, reflecting higher personnel costs and stock-based compensation [62]. - The company is investing $50 million in R&D for new technologies, focusing on AI and machine learning applications [125]. Market Expansion and Strategy - The company is focusing on expanding its electronic manufacturing services in sectors such as industrial control, IoT, and medical electronics [39]. - The company aims to leverage big data analytics for further improvements in management efficiency and quality control [39]. - The company is positioned to benefit from the growing demand in the EMS sector, particularly in medical and industrial control applications [88]. - The company plans to enter two new international markets by Q3 2024, aiming for a 20% increase in global sales [125]. Employee Management - The total number of employees in the parent company is 1,520, with a total of 1,696 employees across the parent and major subsidiaries [141]. - The company has established a new training system to enhance employee skills and ensure job matching [145]. - The company conducts annual salary adjustments based on performance, market data, and internal salary conditions [144]. Environmental Responsibility - The company has implemented a clean production strategy and energy-saving measures to achieve its goals of reducing energy consumption and greenhouse gas emissions [168]. - The company has established a waste management protocol, ensuring that solid waste is disposed of according to legal regulations and handled by qualified processing units [163]. - The company has actively promoted the concept of "green operation" and implemented measures to reduce pollution at the source [168]. Shareholder Engagement - The company actively engages with investors to enhance understanding and recognition, promoting positive interactions that protect investor interests [117]. - The company has a cash dividend policy that aligns with its articles of association and shareholder resolutions [151]. - The company approved the proposal for the 2021 Restricted Stock Incentive Plan and its summary [119].