Shanghai YanPu(SH:605128)2022-04-21 16:00Financial Performance - The company's operating revenue for 2021 was ¥826,507,388.30, representing a 4.38% increase compared to ¥791,820,274.34 in 2020[24]. - The net profit attributable to shareholders for 2021 was ¥70,481,085.46, a decrease of 13.24% from ¥81,235,233.05 in 2020[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥60,484,879.85, down 22.98% from ¥78,534,886.49 in 2020[24]. - The cash flow from operating activities for 2021 was ¥100,150,785.73, a decline of 17.24% compared to ¥121,013,483.21 in 2020[24]. - Basic earnings per share (EPS) decreased by 29.60% to CNY 0.88 in 2021, down from CNY 1.25 in 2020[26]. - Total assets increased by 4.01% to CNY 1,421,127,845.54 at the end of 2021, compared to CNY 1,366,285,723.21 at the end of 2020[25]. - The weighted average return on equity (ROE) decreased by 5.42 percentage points to 6.96% in 2021, down from 12.38% in 2020[26]. - The gross profit margin for the automotive parts segment decreased by 5.29 percentage points to 17.27% due to rising costs[62]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a growth of 15% year-over-year[128]. - The company reported a net profit of 150 million CNY, a 20% increase compared to the last fiscal year[129]. Dividend Policy - The company plans to distribute a cash dividend of RMB 8 million (including tax) to shareholders, at a rate of RMB 1 per 10 shares based on a total share capital of 80,000,000 shares as of December 31, 2021[6]. - The company does not plan to increase capital reserves into share capital[6]. - The company aims to maintain a consistent and reasonable cash dividend policy while considering long-term interests and sustainable development[154]. - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profit to be distributed as cash dividends if conditions are met[154]. - In 2021, the company distributed a cash dividend of RMB 0.625 per share, totaling RMB 50 million, based on a total share capital of 80 million shares[156]. - The cash dividend distribution was completed on May 20, 2021[157]. Corporate Governance - The board of directors has ensured the authenticity, accuracy, and completeness of the annual report[4]. - The company has established a governance structure that complies with legal requirements, including independent directors and regular board meetings[117]. - The total number of shares held by executives at the beginning of the year was 47,620,000, which decreased to 46,020,000 by the end of the year, reflecting a reduction of 1,600,000 shares[126]. - The total pre-tax remuneration for executives during the reporting period amounted to 425.79 million yuan[126]. - The company did not receive any penalties from securities regulatory authorities in the past three years[136]. - All board resolutions were passed unanimously during the meetings held in 2021[138]. - The company has established specialized committees, including audit, nomination, compensation, and strategic committees, to enhance governance[140]. Risk Management - The company has detailed potential risks in the report, particularly in the section discussing future developments[8]. - The company faces risks from fluctuating raw material prices, particularly steel, which could adversely affect cost control and profit margins[106]. - The company anticipates potential risks from market competition and economic cycles affecting the automotive industry[100]. - The company is exposed to risks from high customer concentration, which could lead to decreased order volumes if existing customers face operational challenges[110]. - The company has taken measures to mitigate the impact of the ongoing COVID-19 pandemic, but uncertainties remain regarding its effects on production and consumer demand[109]. Research and Development - Research and development expenses rose by 25.56% to RMB 29,949,840.62, indicating a commitment to enhancing product technology and innovation[59]. - The company plans to develop new products such as electric leg rest seats and high-strength angle adjusters, aiming to improve product technology in lightweight and automated components[57]. - The company has a technical team of nearly 150 professionals dedicated to product industrialization capabilities, enhancing its competitive edge in the market[48]. - The company has achieved a total of 77 utility model patents, with plans to continue applying for more in the future, indicating a strong focus on innovation[49]. - The company plans to establish a research and development center in Huangshan to attract high-quality research talent and enhance its innovation capabilities[99]. Market Position and Strategy - The company is positioned in the automotive parts industry, which is crucial for the sustainable development of the automotive sector[36]. - The automotive parts industry in China has seen significant growth, driven by increasing vehicle ownership and demand for new car sales, contributing to a robust market environment[38]. - The company aims to leverage partnerships with global platforms to enter the supply chains of major international automotive manufacturers, potentially increasing order volumes[57]. - The company plans to focus on expanding its market presence and enhancing product development strategies in the upcoming year[63]. - The company aims to increase its market share in the automotive seat components market and has entered the evaluation and negotiation stages with new clients such as Webasto and TENNECO[95]. Environmental and Social Responsibility - The company has not faced any administrative penalties related to environmental issues[163]. - The company produces minimal pollutants, primarily domestic sewage, noise, and solid waste, with effective measures in place to mitigate environmental impact[163]. - The company has committed to maintaining compliance with various shareholder and management commitments without any reported violations[168]. Internal Control and Compliance - The internal control system has been continuously improved to enhance decision-making efficiency and ensure compliance and asset safety[161]. - The internal control audit report issued by the accounting firm provided a standard unqualified opinion[162]. - The company reported no significant internal control deficiencies during the reporting period[161].