TKD(SH:603738)2022-04-28 16:00Financial Performance - The net profit attributable to the parent company for 2021 was CNY 244,627,462.73, with retained earnings at CNY 207,152,886.37 by year-end[6]. - The company's operating revenue for 2021 was CNY 1,240,654,491.33, representing a year-on-year increase of 96.64%[23]. - The net profit attributable to shareholders for 2021 was CNY 244,627,462.73, a significant increase of 533.54% compared to the previous year[25]. - The net cash flow from operating activities for 2021 was CNY 349,222,330.43, reflecting a year-on-year growth of 133.51%[25]. - The total assets at the end of 2021 reached CNY 2,113,243,091.47, which is a 53.33% increase from the end of the previous year[25]. - The basic earnings per share for 2021 was CNY 1.35, up 486.96% from CNY 0.23 in 2020[24]. - The weighted average return on equity for 2021 was 20.68%, an increase of 15.64 percentage points compared to the previous year[24]. - The company reported a net profit of CNY 75,551,708.10 in Q3 2021, showing strong quarterly performance[29]. - The company achieved operating revenue of 1,240.65 million yuan, an increase of 96.64% year-on-year[33]. - The net profit attributable to shareholders reached 244.63 million yuan, a year-on-year growth of 533.54%[33]. Profit Distribution - The proposed profit distribution plan includes a cash dividend of CNY 3.80 per 10 shares (tax included) and a capital reserve transfer of 4 shares for every 10 shares held[6]. - The board of directors has fully considered the company's operational situation and investor return needs in the profit distribution plan[6]. - The company emphasizes a stable cash dividend policy, prioritizing cash dividends over stock dividends, with a minimum cash distribution of 20% of distributable profits if no major investments are planned[167]. - The company plans to distribute dividends within two months after the shareholders' meeting, ensuring the protection of minority shareholders' rights[164]. - The company has a clear and complete decision-making process for profit distribution, ensuring the protection of minority shareholders' rights[175]. Risk Management - The company has detailed potential risks in the report, urging investors to be cautious[9]. - The report emphasizes the importance of the company's future plans and development strategies while cautioning investors about risks[7]. - The company faces risks related to new customer development as it aims to expand production capacity and optimize customer structure[122]. - The company must continuously invest in R&D to keep up with the rapid technological advancements in the downstream industry[120]. - The company is exposed to product quality risks, which could lead to returns or recalls if products do not meet performance standards[121]. - The company has a significant risk of investment loss if sales volumes do not meet expectations due to high upfront R&D costs[120]. - The company is at risk of tax policy changes that could affect its high-tech enterprise status and related tax benefits[123]. - The company faces currency exchange risks due to a high proportion of exports and imports settled in Japanese yen and US dollars[126]. Research and Development - R&D expenses for the year amounted to 57.94 million yuan, constituting 4.67% of operating revenue[36]. - The company is committed to continuous R&D investment to enhance its technological capabilities and maintain its market leadership in the quartz crystal industry[45]. - The company has accumulated 133 patents, including 12 invention patents, as of December 31, 2021[70]. - The company is committed to developing high-precision, high-reliability microchip products to capture opportunities in emerging industries like IoT and 5G[118]. - The company has strengthened its R&D capabilities and industrialization levels, significantly increasing its market share in the frequency control device sector[64]. Market Expansion - The company plans to continue expanding its market presence and investing in new product development to sustain growth[25]. - The company expanded its customer base and market penetration, focusing on sectors such as 5G, smart wearables, and automotive electronics[37]. - The company is actively pursuing new product development and market opportunities in response to domestic substitution trends and emerging applications[33]. - The company has established partnerships with major clients such as ZTE, Siemens, and Foxconn, and is actively expanding into automotive electronics and industrial terminals to capture market opportunities[39]. - The company is focusing on enhancing its production efficiency through comprehensive quality management and the implementation of advanced information systems, which has improved product quality and customer satisfaction[41]. Corporate Governance - The company has conducted 11 board meetings and 10 supervisory meetings during the reporting period, ensuring compliance with governance standards[130][131]. - The company is committed to maintaining independence from its controlling shareholder in operations and decision-making processes[131]. - The company has established independent financial management systems, including a separate accounting system and independent bank accounts, ensuring autonomous financial decision-making[134]. - The management team is composed of independent personnel, with all senior executives receiving compensation directly from the company, ensuring operational independence[134]. - The company has a clear governance structure, with a board of directors, supervisory board, and management team operating independently[134]. Environmental and Social Responsibility - The company has implemented a comprehensive environmental protection system and has not faced any penalties for environmental violations since its establishment[136]. - The company actively engages in social responsibility initiatives and plans to increase support for public welfare projects in the future[136]. - The company has achieved multiple certifications, including ISO 14001:2015 for environmental management and QC 080000:2017 for hazardous substance control[191]. - The company has provided financial assistance to impoverished households and has hired employees from impoverished areas[192]. Employee Management - The total number of employees in 2021 was 2,359, with 1,739 in production, 340 in technical roles, and 51 in sales[157]. - The company has a performance-based salary structure, with performance bonuses linked to project completion and individual contributions[158]. - Employees can earn a performance bonus of 15%-20% due to improvements in production efficiency and quality from innovations[160]. - The training program includes various skill development initiatives, ensuring a high-quality talent pool for the company's growth[162]. Future Outlook - Overall, the company remains optimistic about future growth, driven by innovation and market expansion strategies[140]. - Future guidance indicates a cautious outlook, with expectations for gradual recovery in revenue growth[137]. - The company plans to continue investing in research and development to innovate and improve product offerings[137].