Lettall Electronic(SH:603629)2022-04-27 16:00Financial Performance - The net profit attributable to the shareholders of Jiangsu Lettall Electronic Co., Ltd. for the year 2021 was CNY 57.7183 million, with distributable profits amounting to CNY 288.8552 million as of the end of the reporting period[7]. - The company's operating revenue for 2021 was ¥1,804,495,655.47, representing a 9.52% increase compared to ¥1,647,616,189.74 in 2020[25]. - The net profit attributable to shareholders for 2021 was ¥57,718,261.85, a 24.50% increase from ¥46,358,842.82 in 2020[25]. - The net cash flow from operating activities for 2021 was ¥76,103,283.30, a significant recovery from a negative cash flow of ¥43,577,677.59 in 2020[25]. - The total assets at the end of 2021 were ¥3,136,694,923.27, a 42.84% increase from ¥2,195,912,776.70 at the end of 2020[25]. - The net assets attributable to shareholders at the end of 2021 were ¥1,577,092,607.89, reflecting a 56.36% increase from ¥1,008,639,370.76 at the end of 2020[25]. - The basic earnings per share for 2021 were ¥0.58, up 26.09% from ¥0.46 in 2020[25]. - The company reported a decrease of 19.55% in net profit attributable to shareholders after deducting non-recurring gains and losses, amounting to ¥32,694,092.00 in 2021 compared to ¥40,636,823.96 in 2020[25]. - The company received government subsidies amounting to ¥16,053,294.81 in 2021, compared to ¥7,717,881.00 in 2020[29]. - The weighted average return on net assets for 2021 was 5.56%, an increase of 0.90 percentage points from 4.66% in 2020[25]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 1.73 per 10 shares (including tax) and to increase capital by 4 shares for every 10 shares held[7]. - The company’s cash dividend policy stipulates that when the earnings per share are not less than 0.1 yuan, it will distribute dividends in cash, provided there are no major investment plans or cash expenditures[161]. - The company plans to implement a cash dividend policy where the minimum cash dividend ratio will be 80% if it is in a mature stage without significant capital expenditure arrangements[165]. - In the case of significant capital expenditures during the mature stage, the minimum cash dividend ratio will be 40%[165]. - For companies in a growth stage with significant capital expenditures, the minimum cash dividend ratio will be 20%[165]. - The profit distribution plan must be approved by more than half of the board of directors and then submitted to the shareholders' meeting for approval[163]. - The board of directors must provide a plan for the use of retained undistributed profits in the profit distribution proposal[166]. Corporate Governance and Compliance - The board of directors confirmed that all members attended the board meeting, ensuring the integrity of the report[5]. - The audit report issued by Tianjian Accounting Firm was a standard unqualified opinion, affirming the accuracy of the financial statements[6]. - The company has not reported any significant changes in the competitive landscape or measures taken to address potential conflicts with controlling shareholders[123]. - The company has not reported any related party transactions that would affect the independence of its operations[123]. - The company has established a governance structure that ensures compliance with relevant laws and regulations, enhancing transparency in information disclosure[181]. - The internal control audit report received a standard unqualified opinion, indicating effective internal control systems[176]. - The company maintains strict management and supervision over its subsidiaries to ensure accurate information flow and operational efficiency[175]. Research and Development - R&D expenses for the year amounted to CNY 87.61 million, a 30.49% increase, representing 4.86% of total revenue[41]. - The company submitted 12 patent applications and received 9 new patent authorizations during the reporting period[41]. - The company has a strong focus on R&D, with a dedicated technical engineering center and a mold design department, leading to rapid new product development[55]. - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing product efficiency[135]. Market Expansion and Strategic Initiatives - The acquisition of Jinning Microwave expanded the company's electronic components into the medical and defense sectors, establishing a platform for military product development[44]. - The company plans to continue exploring new business areas while maintaining its core operations to achieve sustainable growth[44]. - The company has signed strategic cooperation agreements with Hisense and TCL to establish factories in Mexico, indicating market expansion efforts[54]. - The company aims to expand into new markets, including white goods, rail transportation, and new energy vehicles, leveraging its experience in precision metal structure manufacturing[105]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[135]. Operational Efficiency and Production Capacity - The company has enhanced its production capacity, processing nearly 100,000 tons of steel annually and producing over 25 million LCD TV metal backplates[46]. - The company has 23 precision stamping production lines for LCD TV metal structural components, with an annual production capacity exceeding 25 million units[53]. - The company employs a "sales-driven production" model, organizing production based on customer orders and forecasts[50]. - The company’s production capabilities allow for the rapid response to customer needs, improving customer retention and satisfaction[54]. Environmental and Social Responsibility - The company complies with national and local environmental protection requirements, with all wastewater, waste gas, and noise emissions meeting standards[179]. - The company has passed the ISO 14001 environmental management system certification and will continue to optimize production processes to minimize pollutant emissions[180]. - The company emphasizes safety, environmental protection, and social benefits in its production processes, using environmentally friendly production techniques[181]. - The company is committed to fulfilling its social responsibilities and actively participates in social welfare initiatives[184]. Risks and Challenges - The company faced challenges such as rising raw material costs and a decline in the domestic TV market, but remains confident in its strategic planning and product development capabilities[44]. - The company acknowledges the impact of the COVID-19 pandemic and global economic uncertainties on its financial performance and operational results[9]. - The company faces risks from concentrated customer bases, with over 50% of sales coming from the top five clients[107]. - Raw material costs, particularly for galvanized sheets and aluminum profiles, account for 63% of direct material costs, impacting overall profit levels[109].