Kersen(SH:603626)2022-04-27 16:00Financial Performance - The company achieved operating revenue of 4.15 billion RMB in 2021, a year-on-year increase of 19.61% compared to 3.47 billion RMB in 2020[31]. - Net profit attributable to shareholders was 369 million RMB, a significant recovery from a loss of 47.62 million RMB in 2020[31]. - The company generated a net cash flow from operating activities of 321.78 million RMB, representing a 198.41% increase from 107.83 million RMB in 2020[31]. - The basic earnings per share (EPS) for 2021 was 0.7112 RMB, compared to a loss per share of 0.1028 RMB in 2020[24]. - The company's total assets at the end of 2021 were 6.03 billion RMB, slightly up by 0.07% from 6.03 billion RMB at the end of 2020[23]. - The net assets attributable to shareholders increased by 43.17% to 2.99 billion RMB at the end of 2021, up from 2.09 billion RMB at the end of 2020[23]. - The company reported a net profit of 232.60 million RMB from the disposal of non-current assets in 2021[27]. - The company's revenue for the reporting period reached ¥4,147,039,115.35, representing a year-on-year increase of 19.61% from ¥3,467,021,449.85[51]. - Operating costs increased to ¥3,388,595,799.34, up 16.77% from ¥2,902,062,605.33, indicating rising material costs[51]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 20% year-over-year growth[109]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the annual report[8]. - The company plans to reduce investment in the smartphone sector to mitigate operational risks and avoid intense competition[32]. - The company faces increasing competition from similar firms with advanced technology and strong financial backing, which could impact its market position[98]. - Rising labor costs and the need for continuous R&D investment pose risks to the company's operational performance[99]. Corporate Governance - The company guarantees the authenticity, accuracy, and completeness of the annual report, with no false records or misleading statements[9]. - The audit report issued by Zhongshen Yatai Certified Public Accountants is a standard unqualified opinion[9]. - The company has implemented strict information disclosure practices, ensuring compliance with legal regulations and maintaining transparency for investors[105]. - There were no significant differences in corporate governance compared to regulations set by the China Securities Regulatory Commission[105]. - The company has maintained the independence of its operations, with no reported conflicts of interest from controlling shareholders[105]. - The company’s governance structure includes independent directors and a supervisory board, ensuring checks and balances within the management[108]. Research and Development - The company has over 260 authorized patents, including more than 60 invention patents, reflecting its strong R&D capabilities and commitment to innovation[42]. - Research and development expenses rose by 15.38% to ¥234,642,003.17, reflecting the company's commitment to innovation[51]. - The company has accumulated multiple patents and built a strong R&D team, but risks related to talent retention and technology leakage remain[101]. Environmental Compliance - The company has established wastewater treatment facilities using Fenton + A/O and MBR membrane processes to ensure compliance with discharge standards[142]. - The company has implemented air pollution control measures, including electrostatic oil mist adsorption and bag dust removal methods, with annual third-party monitoring confirming compliance with national standards[142]. - The company reported no exceedances in pollutant discharge, with total emissions of COD at 56 tons and SS at 7 tons, significantly below the regulatory thresholds of 500 tons and 400 tons respectively[141]. - The environmental monitoring results for water, noise, and waste gas were all qualified, indicating compliance with national and local environmental regulations[148]. Strategic Initiatives - The company has established a strategic partnership with major medical device companies such as Medtronic and Johnson & Johnson, focusing on precision manufacturing for surgical instruments[79]. - The company plans to expand its product offerings in the electric vehicle sector, capitalizing on the increasing penetration of new energy vehicles[81]. - The company is actively pursuing upstream core industries to provide comprehensive "turnkey" services, significantly lowering clients' procurement costs[48]. - The company is exploring partnerships with other tech firms to enhance its service offerings and expand its customer base[109]. Shareholder Relations - The company reported a total of 151,424,063 shares held by directors and senior management at the end of the reporting period, a decrease of 320,000 shares due to stock incentive repurchase[108]. - The total pre-tax remuneration for directors and senior management amounted to 6.285 million yuan, with the highest individual remuneration being 186,000 yuan for the chairman[108]. - The company has implemented a cash dividend policy prioritizing cash distribution, with a minimum of 30% of the average distributable profit over the last three years to be distributed in cash[130]. - The company aims for a minimum cash dividend ratio of 80% for mature stages without major capital expenditures, and 40% with such expenditures[130]. Market Trends - Global smartphone shipments reached 1.3548 billion units in 2021, a year-on-year increase of 5.7%, indicating a recovery in the market[74]. - The global PC shipments increased by 14.8% to 348.8 million units in 2021, marking three consecutive years of growth[75]. - The global minimally invasive surgical instruments market is projected to grow from $20.1 billion in 2019 to $32.7 billion by 2025, with a compound annual growth rate (CAGR) of 8.5%[78]. - The electric vehicle market is rapidly growing, with major players like Tesla and BYD, and the company aims to provide structural components for both vehicle manufacturers and battery producers[90]. Employee Management - The company reported a total of 4,112 employees, with 1,963 in the parent company and 2,149 in major subsidiaries[125]. - The employee composition includes 1,691 production personnel, 89 sales personnel, 1,450 technical personnel, 26 financial personnel, and 856 administrative personnel[125]. - The company has a competitive salary policy, positioning employee compensation above the regional average, which supports sustainable growth[126]. - The company recruits over 100 fresh graduates annually from domestic universities to cultivate a strong technical talent pool through its "Eagle Plan"[128].