Champion Asia(SH:603386)2022-04-14 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,726,901,374.99, representing a 32.01% increase compared to CNY 2,065,746,952.43 in 2020[20]. - Net profit attributable to shareholders of the listed company reached CNY 207,406,883.11, a significant increase of 72.74% from CNY 120,065,676.46 in the previous year[20]. - The basic earnings per share for 2021 was CNY 0.92, up 70.37% from CNY 0.54 in 2020[21]. - The weighted average return on equity increased to 16.55%, up 5.29 percentage points from 11.26% in 2020[21]. - The net cash flow from operating activities was CNY 220,297,185.00, reflecting a 43.81% increase from CNY 153,181,684.70 in 2020[20]. - The total assets at the end of 2021 were CNY 3,389,316,471.96, a 13.45% increase from CNY 2,987,446,948.14 at the end of 2020[20]. - The net assets attributable to shareholders of the listed company increased to CNY 1,456,624,660.89, a 30.08% rise from CNY 1,119,771,930.39 in 2020[20]. - The company's operating profit for 2021 was 224.66 million yuan, an increase of 95.59 million yuan from 2020[58]. - The total profit for the company in 2021 was 222.13 million yuan, up by 94.95 million yuan compared to 2020[58]. Business Expansion and Strategy - The company plans to continue expanding its business and optimizing its product structure to enhance revenue and profitability[22]. - The company expanded its overseas business, with overseas orders growing by 46.38% compared to the same period in 2020[32]. - The company has established a wholly-owned subsidiary in Japan to expand its business in Japan and Southeast Asia[32]. - The company aims to enhance its product technology and quality while accelerating product structure upgrades and innovations in the PCB sector[104]. - The company plans to increase production capacity by 800,000 to 1,000,000 square meters through the Zhuhai Fushan Industrial Park PCB project, expected to start trial operations in the second half of 2022[107]. - The company is focusing on deep integration in business, assets, personnel, and culture with its subsidiaries to expand its product line and strategic layout[96]. Research and Development - Research and development investment amounted to CNY 135.42 million, accounting for 4.97% of operating revenue[33]. - The company added 54 new patents during the reporting period, including 12 invention patents[33]. - The company is committed to internal talent training programs to enhance employee skills and adapt to market conditions[163]. - The management highlighted a commitment to research and development, allocating a substantial budget to innovate and improve existing technologies[136]. Environmental Compliance and Management - The company is committed to environmental compliance, investing in facilities to manage pollution, but faces risks from potential environmental incidents and increasing regulatory requirements[118]. - The company reported a total wastewater discharge of 123 tons per year, with a chemical oxygen demand (COD) of 62.76 mg/L, exceeding the limit of 80 mg/L[187]. - The company has implemented solid waste treatment measures, ensuring that all solid waste is either recycled or safely disposed of, with no external discharge[188]. - The company has a dedicated team for environmental management, ensuring compliance with environmental regulations and standards[193]. - The company has established an emergency response plan for environmental pollution incidents to enhance its ability to handle public crises and ensure public safety[197]. Corporate Governance - The company held 1 extraordinary and 1 annual shareholders' meeting during the reporting period, ensuring all shareholders could exercise their rights and review key matters[124]. - The board of directors increased from 8 to 9 members, with 3 independent directors, following the completion of the board's term and election procedures[125]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making or operational activities[128]. - The company has established a performance evaluation system for senior management, linking their compensation to the achievement of operational goals[174]. - The company has a structured process for determining the remuneration of its directors and supervisors, which is linked to their performance and the company's operational results[141]. Risk Management - The company faces risks from raw material price fluctuations, as direct raw materials account for a significant portion of operating costs, impacting future profitability[111]. - The company is exposed to macroeconomic risks, as PCB demand is closely linked to the performance of downstream industries like consumer electronics and automotive electronics[112]. - The company acknowledges increasing market competition, with a need to continuously improve technology and production management to maintain competitiveness[114]. - The company is preparing for potential relocation risks associated with the Shenzhen Mutailei leased factory, which may impact production and delivery timelines[116]. Shareholder Returns - The profit distribution plan for 2021 proposes a cash dividend of RMB 4.00 per 10 shares (including tax) and a capital reserve conversion of 4 shares for every 10 shares held[5]. - The company has a clear and transparent decision-making process regarding its cash dividend policy[169]. - The company’s cash dividend distribution is subject to the approval of the board of directors and the shareholders' meeting[167]. - The company distributed a cash dividend of 0.22 RMB per share in 2020, totaling 49,355,373.76 RMB, which represents 41.11% of the net profit attributable to shareholders[168]. Employee and Management Changes - The company appointed Lei Yiping as the new CFO effective December 27, 2021, following the resignation of the previous CFO Wang Qiang due to personal reasons[138]. - The management team includes experienced professionals with extensive backgrounds in the electronics and technology sectors[134]. - The company has undergone changes in its board members, with several resignations and new appointments, including the election of Yang Zhichao as a director and the appointment of Lei Yiping as the financial director[142].