TONGLI RISHENG(SH:605286)2022-03-18 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,295,668,368.04, representing a 31.24% increase compared to CNY 1,749,210,357.60 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 150,694,195.01, a 2.55% increase from CNY 146,947,850.10 in 2020[24]. - The total assets at the end of 2021 amounted to CNY 1,999,470,513.02, a 75.20% increase from CNY 1,141,278,818.17 in 2020[24]. - The basic earnings per share for 2021 was CNY 0.94, down 19.66% from CNY 1.17 in 2020[25]. - The weighted average return on equity for 2021 was 11.56%, a decrease of 10.06 percentage points from 21.62% in 2020[25]. - The company achieved a historical high in revenue of 2.296 billion RMB, representing a growth of 31.24% compared to the previous year[38]. - The company reported a significant increase in sales in the North, East, and South China regions, driven by higher business volumes[60]. - The company achieved a net profit of 150,694,195.01 RMB in 2021, indicating a focus on maintaining a reasonable and stable dividend level to support long-term development[142]. Cash Flow and Dividends - The company plans to distribute a cash dividend of 1.2 RMB per 10 shares, totaling 20,160,000 RMB, which accounts for 13.38% of the net profit attributable to shareholders for 2021[6]. - The net cash flow from operating activities for 2021 was -CNY 134,920,135.18, a decrease of 205.79% compared to CNY 127,532,574.32 in 2020[24]. - The cash dividend policy requires a minimum distribution of 30% of the average distributable profit over the last three years, with adjustments possible based on actual conditions[140]. - The retained undistributed profits will be used for raw material procurement, working capital, and major project expenditures[143]. - The company is in a growth phase and has significant funding needs, which impacts the cash dividend distribution strategy[142]. Corporate Governance - The board of directors has confirmed that all members attended the board meeting[4]. - The company has established a risk management framework to address business, financial, and internal audit risks effectively[41]. - The company emphasizes communication with minority shareholders to gather opinions on dividend proposals prior to the shareholders' meeting[139]. - The company has maintained independence from its controlling shareholder in terms of personnel, assets, business, and finance, ensuring effective governance and decision-making processes[104]. - The board of directors operates independently and adheres to legal and regulatory requirements, ensuring effective oversight of the company's operations and management[105]. Audit and Compliance - The company has received a standard unqualified audit report from Tianheng Accounting Firm[5]. - The company has established a robust internal control system to enhance governance and operational efficiency[106]. - An independent audit by Tianheng Accounting Firm confirmed the effectiveness of the internal control system with a standard unqualified opinion for the 2021 financial report[148]. - The company has not reported any significant deficiencies in its internal control during the reporting period[147]. - The company has not faced any penalties from securities regulatory agencies in the past three years[120]. Risk Management - The company has established strong partnerships with renowned international elevator manufacturers such as Schindler, Otis, Kone, and Hitachi, leveraging its solid R&D capabilities and stable product quality[100]. - The company faces risks from raw material price fluctuations, which could impact product costs and profit margins[99]. - The company is also exposed to risks from a potential slowdown in the elevator industry growth due to macroeconomic factors and real estate market conditions[99]. - The company has implemented comprehensive safety production management systems, but risks remain due to the expansion of business scale and aging production equipment[101]. Research and Development - The company emphasizes research and development, collaborating closely with well-known elevator manufacturers to shorten the product development cycle[40]. - The company increased its R&D expenses by 44.55% to 69,764,094.19 RMB, reflecting a commitment to innovation[54]. - The company has developed a strong independent research and development capability, focusing on core technologies and new product innovations[40]. - The number of R&D personnel is 201, making up 11.36% of the total workforce[71]. Market Position and Strategy - The elevator industry in China is expected to maintain steady growth driven by urbanization and demand for modernization of old buildings[42]. - The company aims to leverage its strengths through external mergers and acquisitions to enter faster-growing markets[82]. - The company is focusing on enhancing its flexible supply capabilities and improving R&D technology to meet the growing demand for elevator components[92]. - The company plans to consolidate its competitive advantage in the elevator business and steadily increase market share through high-quality and efficient service[93]. Social Responsibility - The company has actively engaged in social responsibility, donating over 1.5 million RMB to local charities and supporting community development initiatives[153]. - The company has established a "Sanli Foundation" to provide financial assistance to employees in need, demonstrating commitment to employee welfare[153]. - The company rewarded 18 students with a total of 24,000 RMB in scholarships for academic achievements in 2021[154]. Shareholder Engagement - The company held its 2021 annual shareholders' meeting on May 20, 2021, with 62,730,984 shares represented, accounting for 37.34% of the total voting shares[108]. - The first extraordinary shareholders' meeting in 2021 took place on September 6, 2021, with 114,264,676 shares represented, which is 68.01% of the total voting shares[109]. - The company aims to ensure transparency and compliance in its shareholder meetings and decision-making processes[108][109]. Future Outlook - Overall, the company remains optimistic about future growth, with a strategic focus on sustainability and innovation[114]. - The company plans to improve governance and management efficiency to provide institutional guarantees for sustainable and stable development[171]. - The company will accelerate the implementation of fundraising projects to achieve expected benefits as soon as possible after the funds are in place[172].