Allied Machinery(SH:605060)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥798,785,373.05, representing a year-over-year increase of 19.21% compared to ¥670,074,039.49 in 2020[22]. - The net profit attributable to shareholders decreased by 4.01% to ¥160,587,579.02 in 2021 from ¥167,290,534.53 in 2020[22]. - The basic earnings per share for 2021 was ¥0.70, down 24.73% from ¥0.93 in 2020[23]. - The weighted average return on equity decreased to 9.52% in 2021, a decline of 10 percentage points from 19.52% in 2020[23]. - The net cash flow from operating activities increased by 28.45% to ¥191,490,922.83 in 2021, compared to ¥149,081,770.90 in 2020[22]. - The total assets grew by 108.29% to ¥2,267,354,638.15 at the end of 2021, up from ¥1,088,575,996.54 at the end of 2020[22]. - The net assets attributable to shareholders increased by 100.45% to ¥1,875,761,400.89 in 2021 from ¥935,764,708.53 in 2020[22]. - The net profit after deducting non-recurring gains and losses was ¥137,108,740.20, a decrease of 15.96% from ¥163,142,972.07 in 2020[22]. - The company reported a non-recurring gain of ¥23,478,838.82 in 2021, compared to ¥4,147,562.46 in 2020[28]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 3.34 per 10 shares, totaling approximately RMB 80.16 million to shareholders[6]. - The profit distribution plan for 2021 is subject to approval at the annual shareholders' meeting, with the record date set for June 17, 2021, and the payment date on June 18, 2021[140]. - The total remuneration for the chairman was 1.27 million yuan, while the vice chairman received 736,600 yuan, indicating a structured compensation framework for executives[114]. - Total remuneration for directors, supervisors, and senior management in 2021 amounted to 6.7541 million yuan, with independent directors receiving a total of 270,000 yuan in allowances[123]. Corporate Governance - The company has established a comprehensive corporate governance structure, including a board of directors and various committees to ensure effective decision-making and oversight[106]. - The company emphasizes transparency and timely information disclosure to ensure all shareholders have equal access to information[108]. - The company has maintained a consistent governance structure, with no major discrepancies from regulatory requirements[109]. - The company has not reported any significant changes in the competitive landscape or related party transactions that would affect its independence[109]. - The company has implemented strict internal controls to manage insider information and ensure compliance with relevant laws and regulations[108]. Risk Management - The company has described potential risks in the management discussion and analysis section of the report[8]. - The company faces risks from raw material price fluctuations, particularly for castings, pig iron, scrap steel, and other materials, which could adversely affect operating performance if prices rise unexpectedly[102]. - Customer concentration remains high, with the top five customers accounting for a significant portion of revenue, posing risks if major clients reduce their purchases[103]. Strategic Initiatives - The company established a subsidiary, Zhejiang Mingde, to enhance production capacity in high-precision mechanical components, addressing capacity bottlenecks and expanding production scale[34]. - The company invested in hydraulic components by acquiring a stake in Suzhou Liyuan, aiming to enter the hydraulic product market and enhance profitability[36]. - The company is actively expanding its business scope by entering the hydraulic products market and enhancing production capabilities in wind power equipment components[79]. - The company aims to enhance its production capacity and market share in precision component manufacturing through increased capital investment and collaboration with existing global Fortune 500 clients[94]. Environmental and Social Responsibility - The company has established a dust removal system, water curtain spraying system, and activated carbon adsorption system for air pollution control[149]. - The wastewater treatment includes an emergency water pool system and rainwater pool system, effectively managing wastewater discharge[149]. - The company has passed the ISO14001 environmental management system certification, demonstrating its commitment to environmental protection[154]. - The company has engaged in social responsibility initiatives, including donations to support students from impoverished families[159]. Research and Development - The company's R&D expenses increased by 28.50% to 52 million RMB, indicating a strong focus on innovation[52]. - The total R&D expenditure for the period was CNY 52,305,774.36, accounting for 6.55% of operating revenue, with no capitalized R&D expenditures[67]. - The number of R&D personnel is 150, accounting for 9.55% of the total workforce[68]. - The company emphasizes the importance of technological innovation and plans to enhance its R&D capabilities by attracting and training skilled professionals[98]. Acquisitions and Investments - The company completed the acquisition of 90% of Liyuan Jinhai for 99 million RMB, enhancing its casting capacity and overall efficiency[81]. - The company has committed to compensating for any losses exceeding 10% of the investment amount in Suzhou Liyuan, which corresponds to a 14.74% equity stake held by Haining Hongde[175]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies[117]. Financial Management - The company has not engaged in any cash asset management or entrusted loans during the reporting period[191]. - The company’s cash management includes investments in bank wealth management products totaling CNY 325 million, with a remaining balance of CNY 530 million[190]. - The company has not reported any overdue amounts related to its financial management activities[190]. Employee and Management Structure - The total number of employees in the parent company is 582, while the main subsidiaries employ 988, resulting in a total of 1,570 employees[134]. - The professional composition includes 1,224 production personnel, 30 sales personnel, 162 technical personnel, 29 financial personnel, and 125 administrative personnel[134]. - The company has maintained a stable leadership team with no significant turnover aside from the recent resignation[124].