RAYNEN(603933)2022-03-25 16:00Financial Performance - In 2021, the company's operating revenue reached ¥2,085,366,418.19, representing a 39.30% increase compared to ¥1,496,989,207.58 in 2020[22]. - The net profit attributable to shareholders was ¥85,684,321.36, a significant increase of 240.44% from ¥25,169,060.03 in the previous year[22]. - The basic earnings per share rose to ¥0.4258, up 240.37% from ¥0.1251 in 2020[23]. - The weighted average return on equity increased to 8.07%, up 5.63 percentage points from 2.44% in 2020[23]. - The net cash flow from operating activities was negative at -¥42,592,117.41, a decline of 171.63% compared to ¥59,462,991.95 in 2020[22]. - The total assets at the end of 2021 were ¥1,970,769,622.79, reflecting a 35.00% increase from ¥1,459,850,940.68 in 2020[22]. - The company reported a significant increase in net profit excluding non-recurring items, reaching ¥75,857,687.03, a 674.16% increase from ¥9,798,708.69 in 2020[22]. - The company achieved operating revenue of 2,085.37 million yuan, a year-on-year increase of 39.30%[32]. - Net profit attributable to shareholders reached 85.68 million yuan, up 240.44% year-on-year, while net profit after deducting non-recurring gains and losses was 75.86 million yuan, an increase of 674.16%[32]. Dividend Distribution - The proposed profit distribution plan for 2021 is to distribute a cash dividend of RMB 1.30 per 10 shares, totaling RMB 27,412,086.00 based on the total share capital of 210,862,200 shares[5]. - The company has established a clear cash dividend policy in accordance with relevant regulations, ensuring transparency and compliance[154]. - The company has a complete decision-making process for profit distribution, requiring board approval before presenting to the shareholders' meeting[156]. Audit and Compliance - The company received a standard unqualified audit report from Huaxing Accounting Firm, ensuring the financial report's authenticity and completeness[4]. - The company has established a robust internal control system, with an audit conducted by Huaxing Accounting Firm to assess the effectiveness of financial reporting controls[126]. - The internal control audit report issued by Huaxing Accounting Firm provided a standard unqualified opinion, confirming the effectiveness of the internal control system[164]. - The company has not engaged in any competitive business with its controlling shareholder, maintaining a complete and independent business system[128]. - The company has not reported any dissenting opinions from the supervisory board regarding risk during the reporting period[150]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[167]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[7]. - The company emphasizes that forward-looking statements do not constitute substantial commitments to investors, highlighting investment risks[6]. - The company faces risks from macroeconomic fluctuations and the impact of COVID-19 on its downstream industries, which could indirectly affect its operating performance[114]. - The company has a high supplier concentration risk in its IC distribution business, relying on major suppliers like Microchip Technology and Infineon[115]. - The company is exposed to foreign exchange risks due to its IC distribution business and foreign currency borrowings, which could affect its profitability[116]. - The company is increasing its accounts receivable, which poses a risk of cash flow pressure if economic conditions worsen or if clients fail to repay[117]. Research and Development - The company invested 77.57 million yuan in R&D for manufacturing, a 75.20% increase year-on-year, accounting for 12.73% of manufacturing revenue[32]. - The company maintained a high level of R&D investment, with R&D expenses amounting to CNY 88.26 million, an increase of 67.84% year-on-year[72]. - Total R&D investment accounted for 4.23% of operating revenue, with no capitalized R&D expenses[84]. - The company is actively developing new products, including the RV12 series inverter and the X series motion control PLC, to enhance market competitiveness[36]. - The company aims to enhance its R&D capabilities and expand its product offerings in industrial automation control, targeting high-growth segments[57]. Subsidiaries and Acquisitions - The company operates multiple subsidiaries, including Fujian Huirida Technology Co., Ltd. and Shenzhen Yiwei Automation Technology Co., Ltd.[12]. - The company acquired 100% of Qidian Electric and 65% of Shenzhen Yiwei, enhancing its strategic layout in the industrial automation sector[79]. - The company has added two subsidiaries in 2021: a wholly-owned subsidiary, Qidian Electric, and a controlling subsidiary, Shenzhen Yiwei, with integration plans underway[162]. - The company’s subsidiary, Fujian Huirida, generated revenue of RMB 8,929.11 million with a net profit of RMB 765.62 million[100]. - The company’s subsidiary, Shanghai Beino, achieved revenue of RMB 31,321.24 million and a net profit of RMB 2,145.98 million[100]. Market Position and Strategy - The company is focusing on expanding its presence in the automotive semiconductor market, leveraging partnerships with major manufacturers like BYD and Great Wall Motors[37]. - The company is positioned to benefit from the increasing demand for low-voltage frequency converters as part of the green and energy-saving development strategy[105]. - The company aims to expand its IC distribution business by deepening its presence in existing markets such as industrial control, consumer electronics, and automotive electronics, while also exploring new sectors like new energy vehicles and photovoltaic inverters[112]. - The company is focusing on enhancing its technical support services to strengthen its position in the IC distribution market[107]. - The company plans to enhance its knitting and sewing control systems, particularly in the full-form control system market, to maintain its industry-leading position[110]. Governance and Management - The company has established independent financial management systems and tax compliance, ensuring financial autonomy[128]. - The company’s board members attended all meetings, with no instances of absenteeism reported[141]. - The board of directors consists of 7 members, including 3 independent directors, and held 8 meetings in 2021 to enhance decision-making mechanisms[125]. - The company has seen changes in its management team, with departures due to personal reasons[138]. - The company’s management team includes individuals with extensive experience in various sectors, including technology and finance, enhancing its strategic capabilities[133]. Environmental and Social Responsibility - The company has passed the ISO14001 environmental management system certification, ensuring compliance with environmental regulations and effective waste management[167]. - The company has implemented measures to reduce carbon emissions, including promoting green office practices and establishing a paperless office system[169]. - The company actively fulfills its social responsibility and adheres to business ethics, enhancing risk prevention capabilities through improved corporate governance and internal controls[170]. - The company plans to publish its 2021 Social Responsibility Report concurrently with its annual report on the Shanghai Stock Exchange[170]. Shareholder Relations - The company’s total shareholding structure indicates that Hong Kong Ruijie holds 100% of Ruineng Industrial, which in turn holds 64.21% of the company[134]. - The company’s major shareholders have agreed to limit their share reduction to a maximum of 10% of the total share capital within two years after the lock-up period[174]. - The company’s other major shareholder has committed to a maximum reduction of 5% of the total share capital within the same timeframe[175]. - The company has retained Huaxing Accounting Firm for its financial and internal control audits for the 2021 fiscal year[187].