NWM(SH:603700)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,717,290,642.31, representing an 8.00% increase compared to CNY 1,590,152,353.41 in 2020[25]. - The net profit attributable to shareholders for 2021 was CNY 235,370,594.62, a decrease of 13.81% from CNY 273,091,001.84 in 2020[25]. - The net cash flow from operating activities increased by 27.02% to CNY 161,012,833.00 in 2021, compared to CNY 126,758,759.57 in 2020[25]. - The total assets at the end of 2021 were CNY 2,220,987,101.31, up 7.82% from CNY 2,059,923,483.00 at the end of 2020[25]. - The basic earnings per share for 2021 was CNY 1.16, down 13.43% from CNY 1.34 in 2020[26]. - The weighted average return on equity decreased by 4.68 percentage points to 15.48% in 2021 from 20.16% in 2020[26]. - The company reported a net profit of CNY 42,211,074.62 in Q1 2021, with total operating revenue of CNY 282,532,300.59 for the same quarter[28]. - The company received government subsidies amounting to CNY 16,269,979.20 in 2021, compared to CNY 19,070,858.24 in 2020[29]. Dividend and Share Repurchase - The company plans to distribute a cash dividend of 8 RMB per 10 shares, totaling approximately 161.64 million RMB, which represents 68.68% of the net profit attributable to shareholders for 2021[5]. - The total amount spent on share repurchases during the reporting period was approximately 26.60 million RMB, leading to a combined total of 188.25 million RMB for dividends and repurchases, accounting for 79.98% of the net profit attributable to shareholders[5]. - The company plans to distribute a cash dividend of 4 RMB per 10 shares, totaling approximately 81.3 million RMB for the year 2020[191]. - The cash dividend distribution policy states that at least 20% of the annual distributable profit must be distributed in cash if there are no major capital expenditure plans[188]. - The company has established a profit distribution policy that emphasizes reasonable returns to public shareholders and aims for consistency and stability in cash dividends[187]. Risks and Compliance - The company has not identified any significant risks that could materially affect its operations during the reporting period[7]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has not faced any violations of decision-making procedures in providing guarantees to external parties[7]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[6]. - The company is committed to enhancing corporate governance, ensuring compliance with relevant laws and regulations, and protecting shareholder rights[158]. Audit and Internal Control - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[4]. - Internal control evaluations have been conducted, confirming the effectiveness of the company's internal control systems without significant deficiencies[160]. - The internal control audit report issued by Lixin Accounting Firm provided a standard unqualified opinion, indicating effective internal control measures[199]. Research and Development - The company invested 62.68 million yuan in R&D, a year-on-year increase of 10.19%, and applied for 94 patents during the reporting period[39]. - Research and development expenses increased by 25% in 2021, totaling 150 million, reflecting the company's commitment to innovation[165]. - The company has established a comprehensive R&D and production management system, enhancing automation and efficiency in production[89]. Market and Industry Trends - The overall industry development in 2021 faced significant challenges, with a decline in revenue growth rates for the instrument manufacturing sector, showing a quarterly decreasing trend[46]. - The implementation of new pricing management measures for urban water supply in October 2021 is expected to take time to yield substantial benefits[49]. - The company anticipates a domestic demand for water meters to reach 1.3 billion units by 2023, with projected sales revenue of 151 million RMB[132]. - The smart water service market is projected to grow, addressing challenges such as water resource shortages and the need for enhanced supply system monitoring[133]. Strategic Initiatives - The company has formed strategic partnerships with leading technology firms to develop cutting-edge smart water technologies, laying a solid foundation for future growth in the smart water sector[88]. - The company is committed to high-quality development, emphasizing product quality and operational efficiency to foster sustainable growth[141]. - The company plans to enhance its market share by implementing differentiated marketing strategies and expanding into new markets, including residential water meter markets[143]. Employee and Management - The company has implemented a performance-based salary system for management and technical staff, with salaries based on local industry standards and performance evaluations[182]. - The total number of employees in the parent company is 994, while the total number of employees in major subsidiaries is 228, resulting in a combined total of 1,222 employees[181]. - The company has established a transparent performance evaluation and incentive mechanism for senior management to enhance governance[159].