Eddie Precision(SH:603638)2022-04-29 16:00Financial Performance - In 2021, the company's operating revenue reached ¥2,683,957,096.37, an increase of 18.99% compared to ¥2,255,624,478.24 in 2020[23]. - The net profit attributable to shareholders was ¥469,761,712.53, a decrease of 8.97% from ¥516,077,211.55 in 2020[23]. - The net profit after deducting non-recurring gains and losses was ¥445,746,858.10, down 12.30% from ¥508,262,878.35 in 2020[26]. - The net cash flow from operating activities was ¥207,436,366.74, a decline of 38.00% compared to ¥334,587,363.71 in 2020[26]. - The company's total assets increased by 20.77% to ¥4,482,700,302.07 at the end of 2021, up from ¥3,711,912,271.13 at the end of 2020[26]. - The basic earnings per share decreased by 9.68% to ¥0.56 in 2021, compared to ¥0.62 in 2020[26]. - The weighted average return on equity dropped by 5.33 percentage points to 17.87% in 2021 from 23.2% in 2020[26]. - The company achieved operating revenue of 2,683.96 million RMB in 2021, representing a year-on-year growth of 18.99%[90]. - Operating profit for the year was 542.39 million RMB, a decrease of 9.36% compared to the previous year[90]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 445.75 million RMB, a decrease of 12.3% from the previous year[90]. Dividend Distribution - The company plans to distribute a cash dividend of 1.2 RMB per 10 shares, totaling approximately 100,987,020.24 RMB based on a total share capital of 841,558,502 shares as of December 31, 2021[6]. - The company plans to implement a three-year dividend return plan from 2021 to 2023[186]. - The company plans to distribute a cash dividend of RMB 2.50 per 10 shares, totaling RMB 33 million for the fiscal year ending June 30, 2015[194]. - For the fiscal year 2016, the company approved a cash dividend of RMB 3.00 per 10 shares, amounting to RMB 52.8 million[195]. - In 2017, the company declared a cash dividend of RMB 2.50 per 10 shares, totaling RMB 44 million, and increased total shares to 260,480,000 through a capital reserve conversion[198]. - The company announced a cash dividend of RMB 2.00 per 10 shares for the fiscal year 2018, totaling RMB 52.096 million, while increasing total shares to 385,510,400 through capital reserve conversion[199]. - For the fiscal year 2019, the company approved a cash dividend of RMB 1.70 per 10 shares, amounting to RMB 70.205 million, and increased total shares to 598,809,616[200]. - In 2020, the company declared a cash dividend of RMB 0.18 per share, totaling RMB 108.2 million, and increased total shares to 841,558,502 through capital reserve conversion[200]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[8]. - The company has not faced any substantial risks that could impact its production and operations during the reporting period[8]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[8]. - There are no violations of decision-making procedures regarding external guarantees[8]. - The company acknowledges risks related to macroeconomic cycles, market competition, and the need to maintain technological leadership to ensure future growth[156]. Corporate Governance - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[4]. - The company has established a comprehensive corporate governance structure to ensure compliance with legal regulations and protect the rights of minority shareholders[158]. - The company has undergone a board restructuring, electing new directors and supervisors during the reporting period[175]. - The company has maintained a consistent approach to remuneration based on its established compensation management system[175]. - The company has a diverse board composition, including independent directors with extensive industry experience[175]. - The company continues to focus on enhancing its governance structure to align with best practices in corporate management[175]. Research and Development - The company is committed to enhancing its R&D capabilities by collaborating with domestic and international research institutions to develop high-value, high-tech hydraulic products[42]. - The company has established a dedicated R&D team for industrial multi-axis robots and hard alloy products, aiming to diversify its product offerings[44]. - Research and development expenses increased by 27.09% to ¥133,872,377.22 from ¥105,340,455.13, emphasizing the company's commitment to R&D[104]. - The total R&D expenditure accounted for 4.99% of the operating revenue, indicating a strong focus on innovation[105]. - The company is focused on attracting external talent by offering competitive compensation and establishing clear career development pathways for core and key personnel[151]. - The company plans to strengthen its existing R&D department to ensure it remains at the forefront of hydraulic technology and product development[148]. Market Position and Strategy - The domestic excavator market is projected to experience steady growth, driven by ongoing fixed asset investment demand[34]. - The company aims to increase its market share in high-end hydraulic components, which are currently largely imported[36]. - The company is intensifying its marketing efforts in the hydraulic parts aftermarket and expanding its customer base in the main engine market by collaborating with well-known manufacturers[41]. - The company aims to adjust procurement and marketing strategies in response to fluctuations in raw material prices, particularly steel, to maintain gross margin stability[40]. - The company intends to launch multiple new products annually while enhancing its after-sales service system to increase product influence in existing markets[152]. - The company aims to deepen cooperation with well-known domestic excavator manufacturers and expand partnerships with domestic engineering machinery sales networks to strengthen its market position[152]. Employee Composition and Management - The company had a total of 2,496 employees, with 1,442 in the parent company and 1,054 in major subsidiaries[188]. - The employee composition includes 1,663 production and sales personnel, 365 technical staff, 22 financial personnel, and 305 administrative staff[188]. - The educational background of employees shows 30 with postgraduate degrees, 352 with bachelor's degrees, 661 with associate degrees, and 1,453 with other qualifications[190]. - The company acknowledges the need for a skilled workforce and plans to establish a comprehensive talent development system to foster a collaborative and innovative team[149]. - The company plans to enhance its internal talent development mechanism, focusing on training and expanding the scope of professional technical personnel, with a goal of improving management and sales team capabilities[151]. Sales and Market Trends - In 2021, excavator sales reached 342,784 units, a 4.6% increase from 2020, driving demand for hydraulic breakers and related products[47]. - The domestic hydraulic breaker market has seen a significant rise in competition, with domestic brands increasing their market share due to improved technology and production capabilities[53]. - The hydraulic breaker industry in China is experiencing significant growth, with domestic companies focusing on high-quality products and efficient after-sales service to expand market share[54]. - The hydraulic components industry in China has developed a specialized production system, meeting the needs of downstream industries, but faces a structural shortage of high-end hydraulic components[55][58]. - The market for high-end hydraulic components is dominated by a few companies like Bosch Rexroth and Kawasaki Heavy Industries, with domestic companies gradually breaking this monopoly[60]. - Recent years have seen a rapid increase in the market share of domestic high-end hydraulic components, driven by improved product quality and competitiveness[59]. Financial Health and Investments - The company's cash and cash equivalents decreased by 57.38% to ¥258,281,981.75, primarily due to funds used for equipment purchases[109]. - Accounts receivable financing increased by 52.82% to ¥204,270,061.01, attributed to the expansion of the company's sales scale[109]. - Inventory increased by 33.30% to ¥829,138,727.41, reflecting the growth in sales volume[109]. - The company's total assets include ¥641,586,551.43 in construction in progress, a 301.19% increase due to factory investments[109]. - Long-term borrowings increased by 260.16% to ¥180,166,328.19, primarily due to increased bank loans[110]. - The company's total equity increased by 40.54% to ¥841,558,502.00, resulting from capital reserves being converted into share capital[110].