UE(SH:603600)2022-04-29 16:00Financial Performance - The company achieved operating revenue of CNY 4.66 billion in 2021, a year-on-year increase of 35.67%[20]. - The net profit attributable to shareholders was CNY 181.33 million, a decrease of 22.01% compared to 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 139.11 million, down 29.73% year-on-year[20]. - The company's total assets at the end of 2021 were CNY 3.22 billion, an increase of 0.84% from the previous year[20]. - The company's net cash flow from operating activities was CNY 150.46 million, a decrease of 10.14% from 2020[20]. - The company's total operating costs increased by 43.78% to CNY 3,817,529,365.29, with material costs constituting 77.85% of total costs[95]. - The company's revenue from the furniture manufacturing industry was CNY 4,601,340,474.60, with a gross margin of 17.32%, reflecting a decrease of 4.44 percentage points compared to the previous year[91]. - The revenue from office chairs amounted to CNY 3,135,661,248.10, with a gross margin of 18.42%, down by 4.76 percentage points year-on-year[91]. - The company's sales expenses rose by 62.78% to RMB 161 million, driven by growth in cross-border e-commerce business[87]. - The company reported a significant increase in tax refunds received, which rose by 62.15% year-on-year to 309,886,918.23 CNY, linked to higher export volumes[101]. Governance and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the authenticity and completeness of the financial report[4]. - The company has confirmed that all board members attended the board meeting, ensuring governance transparency[4]. - The financial report is prepared in accordance with the Company Law and Securities Law of the People's Republic of China, ensuring legal compliance[11]. - The company has not faced any situations where more than half of the directors cannot guarantee the authenticity of the annual report[7]. - The company’s governance practices comply with relevant laws and regulations, ensuring transparency in decision-making[157]. - The company has established a relatively sound modern enterprise system and a complete corporate governance structure without major defects or irregularities during the self-inspection of governance issues for the years 2018, 2019, and 2020[196]. Risk Management - The report includes a risk statement, highlighting potential risks that investors should be aware of regarding future plans and strategies[6]. - The company is addressing the impact of rising raw material prices and currency appreciation through centralized procurement and hedging strategies[34]. - The company has not violated decision-making procedures for external guarantees, indicating compliance with regulations[7]. Research and Development - The company invested CNY 159.53 million in R&D during the reporting period, applying for 201 patents[28]. - The company invests over 3% of its sales revenue annually in research and development, focusing on ergonomic design and health-oriented technology[76]. - The company’s R&D expenses increased by 38.04% to RMB 159 million, reflecting a commitment to enhancing product development capabilities[88]. - The number of R&D personnel was 515, representing 6.47% of the total workforce[100]. Market Expansion and Strategy - The company is actively developing cross-border e-commerce, contributing to the overall growth of its sales revenue[32]. - The company is optimizing its global layout and expanding overseas production capacity, with a focus on localizing supply chains and reducing procurement costs[33]. - The company is committed to expanding its overseas production capacity, particularly in Vietnam and Romania, to mitigate international trade risks and enhance market share[141]. - The company aims to achieve a "number one or two" position in major markets by deepening customer relationships and expanding its sales team[141]. - The company plans to enhance its domestic market strategy by increasing brand investment and optimizing online and offline channels to capture consumer mindshare[140]. Environmental and Social Responsibility - The company has a strong commitment to environmental and social responsibility, as outlined in the report[5]. - The company is recognized as a national green supply chain management enterprise, emphasizing its commitment to sustainable practices[83]. - The company strictly complies with various environmental protection laws and regulations, ensuring that pollution control facilities operate normally and meet discharge standards[199]. - The company has developed green low-carbon design specifications for major components and structures, utilizing lightweight, modular, integrated, and intelligent design technologies[200]. Shareholder and Management Information - The company plans to distribute a cash dividend of RMB 2.20 per 10 shares based on the profit distribution plan for the year 2021, subject to approval at the annual shareholders' meeting[5]. - The total remuneration for the chairman and general manager, Zhang Jiayong, was 1.67 million CNY[159]. - The company’s independent directors received a total remuneration of 8.51 million CNY each[159]. - The company held four shareholder meetings in 2021, all resolutions were approved without any dissenting opinions[155]. Product Development and Innovation - The company has established a comprehensive supply chain management system, enhancing procurement efficiency and reducing risks through strategic partnerships with suppliers[71]. - The company is focusing on green and low-carbon transformation in line with national policies to optimize industrial structure and improve resource efficiency[109]. - The company aims to become a global leader in the "sitting health" system market, focusing on high-quality development and expanding its product categories in health furniture[136]. - The company plans to implement lean production and local supply chain development to optimize costs and enhance manufacturing capabilities[141].