CHERVON-AUTO(SH:603982)2022-04-27 16:00Financial Performance - The company reported a total distributable profit of RMB 416,227,020.33 as of December 31, 2021, with a proposed cash dividend of RMB 0.74 per share, resulting in a total cash dividend distribution of RMB 14,905,181.16[6]. - The cash dividend payout ratio for the year 2021 was 12.23%[6]. - The company's total revenue for 2021 reached ¥1,614,885,555.25, representing a 16.53% increase compared to 2020[23]. - The net profit attributable to shareholders was ¥121,872,353.77, a slight increase of 0.76% from the previous year[23]. - The net profit after deducting non-recurring gains and losses decreased by 19.95% to ¥89,829,199.29[23]. - The total profit for 2021 was 127.49 million RMB, a decrease of 4.65% compared to the previous year, while the net profit attributable to shareholders increased by 0.76% to 121.87 million RMB[33]. - The company's total revenue for the reporting period reached RMB 1,614,885,555.25, representing a year-on-year increase of 16.53%[56]. - The company's net profit remained stable compared to the previous year, but the net profit attributable to shareholders, after deducting non-recurring gains and losses, declined[54]. Audit and Governance - The company has received a standard unqualified audit report from Deloitte Huayong Accounting Firm[5]. - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[4]. - There are no violations of decision-making procedures regarding external guarantees[9]. - The company has not reported any instances of more than half of the directors being unable to guarantee the authenticity of the annual report[9]. - The company has established a robust internal control system, revising various management regulations to ensure proper transaction approvals[112]. - The company has no instances of fund occupation by controlling shareholders or related parties, maintaining financial independence[112]. - The company emphasizes accurate and timely information disclosure, adhering to principles of fairness and transparency[112]. - The company has established a commitment to fulfill its information disclosure obligations in accordance with relevant laws and regulations[199]. Research and Development - The company invested 124.71 million RMB in R&D in 2021, accounting for 7.72% of its operating revenue, focusing on large die-casting technology[35]. - The company's research and development expenses rose by 51.06% to RMB 124,710,894.95, reflecting increased investment in new projects[56]. - The company has developed high-strength, high-thermal-conductivity aluminum alloy materials and various advanced manufacturing technologies to support future business growth[51]. - The company has a strong synchronous design and development capability, allowing it to participate in early-stage product development with clients[53]. Market and Product Development - The company plans to focus on traditional business upgrades, transmission systems, and new energy vehicles as growth points[100]. - The company is expanding its production bases in Nanjing, Ma'anshan, and Hungary to support its growth in electric motor and battery components[100]. - The company aims to enhance its competitive position by leveraging its technological advantages in manufacturing and design capabilities[48]. - The company is focusing on expanding its market presence and enhancing product offerings in the new energy vehicle sector[61]. - The company plans to expand its market share in automatic transmission products, aiming for exponential growth within the next three years[101]. Environmental Compliance - The company is classified as a key pollutant discharge unit, with emissions including nitrogen oxides, sulfur dioxide, and particulate matter, all treated to meet national standards[163]. - The highest concentration of nitrogen oxides was reported at 36 mg/m3, well below the standard of 180 mg/m3, while sulfur dioxide was detected at 54 mg/m3 against a standard of 80 mg/m3[165]. - The company’s wastewater treatment system ensures that chemical oxygen demand and suspended solids are within regulatory limits, with chemical oxygen demand recorded at 126.7 mg/L against a standard of 500 mg/L[166]. - The company has achieved ISO 14001 environmental management system certification, ensuring compliance with environmental regulations[173]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[173]. Employee and Community Engagement - The company provides various employee benefits, including annual health check-ups and holiday bonuses, to promote employee welfare[178]. - Annual training programs are implemented to enhance employee skills and management capabilities, including technical and management training[146]. - The company engages in community support initiatives, including educational assistance programs for underprivileged students[180]. Shareholder and Financial Management - The company has a cash dividend policy that mandates at least 20% of the distributable profit to be distributed as cash dividends, with a minimum of 12.23% for the year 2021[150]. - The proposed cash dividend for 2021 is CNY 0.74 per share, amounting to a total of CNY 14,905,181.16 (including tax) based on a total share capital of 201,421,367 shares[150]. - The company aims to maintain a stable and continuous profit distribution policy, prioritizing cash dividends over stock dividends[148]. - The company has implemented a stock incentive plan, with specific details disclosed in temporary announcements[156]. - The company will ensure timely disclosure of information regarding any share reduction operations[187]. Strategic Acquisitions and Investments - The company completed a strategic acquisition of a competitor for $300 million, enhancing its product portfolio[120]. - The company plans to issue convertible bonds and has committed to not reducing its holdings in the company's stock for six months following the issuance[200]. - The company has identified potential acquisition targets to enhance its technology portfolio, with an estimated investment of $H million[193]. Risk Management - The company has detailed potential risks in the report, which investors are advised to review[9]. - The company faced challenges due to rising raw material prices and international shipping costs, impacting profitability despite revenue growth[25]. - The company expects to complete the construction of its Anhui Ma'anshan production base by the end of 2022, facilitating capacity expansion[102].