Jiangsu Hongtian Technology(SH:603800)2022-04-29 16:00Financial Performance - The company's total revenue for 2021 was approximately CNY 1.175 billion, representing a 38.58% increase compared to CNY 847.68 million in 2020[21]. - The net profit attributable to shareholders of the listed company was negative CNY 35.60 million, a decrease of 920.15% from a profit of CNY 4.34 million in 2020[21]. - The net cash flow from operating activities was negative CNY 122.74 million, a decline of 277.92% compared to negative CNY 32.48 million in 2020[21]. - The total assets at the end of 2021 were approximately CNY 1.795 billion, an increase of 13.78% from CNY 1.578 billion at the end of 2020[21]. - The net assets attributable to shareholders of the listed company decreased by 4.29% to CNY 868.64 million at the end of 2021 from CNY 907.60 million at the end of 2020[21]. - The basic earnings per share for 2021 was negative CNY 0.17, a decrease of 950% from CNY 0.02 in 2020[22]. - The weighted average return on net assets was negative 4.01%, a decrease of 4.46 percentage points from 0.45% in 2020[22]. - The company achieved operating revenue of 1.175 billion RMB, a year-on-year increase of 38.58%[46]. - Net profit attributable to shareholders decreased to -34.04 million RMB, a decline of 884.22%[46]. - Operating costs rose to 1.031 billion RMB, reflecting a 46.73% increase due to rising raw material prices[47]. Research and Development - The company achieved a total of 159 patents by the end of 2021, including 12 invention patents, enhancing its competitive edge in the market[34]. - The company has focused on R&D investment, introducing new products such as cyclone desander and high-pressure ball valves, which have been recognized by domestic customers[34]. - Research and development expenses increased by 15.56% to 36.38 million RMB, driven by higher personnel costs[47]. - Research and development expenses totaled 36,379,351.91 yuan, representing 3.10% of total revenue[57]. - The number of R&D personnel is 147, making up 13.44% of the total workforce[58]. Market and Sales - The company is adapting to market demands by implementing various sales models, including direct sales and cooperative R&D sales, to enhance its market presence[35]. - The company’s domestic sales revenue reached 871.87 million RMB, a 59.10% increase year-on-year, while foreign sales were 271.73 million RMB, a 3.32% increase[50]. - The production volume of wellhead devices increased by 24.99%, while sales volume rose by 22.05%[51]. - The company has seen a significant increase in order intake compared to last year, but faced substantial losses due to rising raw material and labor costs, currency fluctuations, and intensified market competition[37]. Strategic Initiatives - The company is actively exploring new industries and markets, achieving initial success in the wind power and construction machinery sectors, with increasing product and service offerings[36]. - The company anticipates a recovery in the oil and gas market in 2022, driven by increased vaccination rates and a need to replenish oil inventories[33]. - The company established a production base in Vietnam, which has officially commenced operations, aiming to enhance its international presence and cater to the Southeast Asian market[36]. - The company acquired a controlling stake in Jiangsu Longsheng Drilling Machinery Co., Ltd., gaining proprietary multi-directional forging technology and capacity, strengthening its foothold in the forging market[36]. - The company has established a strategic alliance in the domestic oil engineering market, leveraging its advantages in engineering construction and drilling qualifications[75]. Governance and Compliance - The company held 1 annual general meeting and 4 extraordinary general meetings during the reporting period, ensuring compliance with legal requirements and allowing shareholders to exercise their voting rights[85]. - The board of directors consists of 9 members, including 3 independent directors, and held 7 meetings during the reporting period, ensuring effective governance[86]. - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with relevant laws and regulations[87]. - The company maintains complete independence from its controlling shareholder in terms of assets, personnel, finance, and operations, with no interference in decision-making[88]. - The company has established specialized committees, including an Audit Committee and a Strategic Committee, to enhance governance[101]. Environmental and Social Responsibility - The company has been recognized as a key pollutant discharge unit by the Suzhou Environmental Protection Bureau, with monitoring and compliance measures in place[121]. - Wastewater from the factory is recycled and treated, with no industrial wastewater discharge reported[121]. - The company has obtained ISO 45001 certification, ensuring compliance with safety production standards[129]. - The company has implemented energy-saving measures, including the elimination of outdated equipment and exploration of solar energy utilization, aiming for minimal energy consumption and maximum efficiency[131]. - The company actively participated in social responsibility initiatives, including a donation of 100,000 yuan for the maintenance of a historical site in Suzhou[133]. Financial Audit and Reporting - The financial audit confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2021[179]. - Key audit matters included revenue recognition, with management's internal controls evaluated for effectiveness[181]. - The company does not have any other significant shareholders with over 10% ownership besides the top ten listed[173]. - The company has not reported any significant accounting errors that would require correction during the reporting period[148]. - The company has implemented the new leasing standards starting January 1, 2021, affecting its financial statements significantly[146].