Allied Machinery(SH:605060)2022-05-24 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, down 10 percentage points from 19.52% in 2020[23]. - The company's net assets attributable to shareholders increased by 100.45% to ¥1,875,761,400.89 at the end of 2021, compared to ¥935,764,708.53 at the end of 2020[23]. - Total assets grew by 108.29% to ¥2,267,354,638.15 in 2021 from ¥1,088,575,996.54 in 2020[23]. - The 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 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 total of ¥23,478,838.82 in non-recurring gains for 2021, compared to ¥4,147,562.46 in 2020[28]. - The company achieved operating revenue of 799 million yuan in 2021, an increase of 129 million yuan, representing a year-on-year growth of 19.21%[33]. Dividends and Shareholder Returns - 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]. Corporate Governance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm[5]. - The management has confirmed the authenticity, accuracy, and completeness of the annual report[9]. - The company has maintained a consistent governance structure with all board members present at meetings[9]. - The company has established a comprehensive corporate governance structure to protect shareholder rights and ensure fair information disclosure[156]. - The company emphasizes transparency and timely information disclosure to ensure all shareholders have equal access to information[108]. - 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 negatively impact operating performance if prices rise unexpectedly[102]. - Customer concentration remains high, with the top five customers accounting for a significant portion of revenue, which poses a risk if any major customer reduces orders[103]. - The company is exposed to foreign exchange risks due to a significant portion of overseas revenue being settled in USD, which could lead to exchange losses if the RMB appreciates[102]. 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 expand its business scope and enhance profitability[36]. - The acquisition of Liyuan Jinhai is expected to improve resource allocation and efficiency, enhancing the company's overall production capacity[37]. - The company is actively expanding its business scope by entering the hydraulic product market and enhancing production capabilities in wind power equipment components[79]. - The company plans to enhance production capacity and efficiency by investing in advanced equipment and expanding its production scale, aiming to lower production costs and improve market competitiveness[94]. 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 amounted to CNY 52,305,774.36, representing 6.55% of operating revenue, with no capitalized R&D costs[67]. - The company is committed to enhancing its R&D capabilities by attracting and training technical talent, aiming to develop more stable and efficient products to meet complex industry demands[98]. Environmental Responsibility - The company has passed the ISO14001 environmental management system certification, demonstrating its commitment to environmental protection[154]. - The company has constructed pollution control facilities including a bag filter dust collection system, water curtain spraying treatment system, and activated carbon adsorption system[149]. - The company has developed emergency response plans for environmental incidents, which will be submitted for regulatory approval[151]. - The company has a clear strategy for reducing carbon emissions and optimizing production processes to minimize pollutant discharge[154]. 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 company has a structured remuneration decision process based on the responsibilities and performance of directors and senior management, which is reviewed by the board and shareholders[123]. - The 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[123]. - The company has seen a change in senior management, with Li Junwen resigning from the position of Deputy General Manager due to personal reasons[124]. Market Position and Competitive Landscape - The mechanical equipment parts manufacturing industry is experiencing positive growth, with the company positioned to leverage its technological advantages in a competitive market[38]. - Domestic companies are gaining competitive advantages in the casting and machining industry, with fewer firms emerging as leaders in international competition due to improved technology and management practices[91]. - The company has established long-term stable partnerships with major global manufacturers, enhancing its market position[48]. - The company is focused on maintaining good investor relations and enhancing communication channels with investors to keep them informed about business developments[108].