Huarui Precision(SH:688059)2022-03-17 16:00Financial Performance - The company reported a distributable profit of RMB 292,351,330.77 as of December 31, 2021, with a proposed cash dividend of RMB 12 per 10 shares, resulting in a total cash distribution of approximately RMB 52.81 million, representing a cash dividend payout ratio of 32.53%[6]. - The company has not yet achieved profitability since its listing, indicating ongoing investment and growth strategies[4]. - The company's operating revenue for 2021 was CNY 485.48 million, representing a year-on-year increase of 55.51%[23]. - The net profit attributable to shareholders for 2021 was CNY 162.35 million, an increase of 82.41% compared to 2020[23]. - The net cash flow from operating activities reached CNY 206.10 million, up 104.17% from the previous year[23]. - The company's total assets as of the end of 2021 were CNY 1.15 billion, an increase of 85.88% compared to the end of 2020[23]. - The basic earnings per share for 2021 was CNY 3.85, a 42.59% increase from CNY 2.70 in 2020[24]. - The company's net assets attributable to shareholders increased by 116.26% to CNY 889.21 million by the end of 2021[23]. - The company's operating profit for 2021 was 181.02 million yuan, reflecting a growth of 73.91% year-over-year[35]. - The total profit reached 186.86 million yuan, marking an increase of 82.78% compared to the previous year[35]. Research and Development - Research and development expenses accounted for 5.13% of operating revenue in 2021, down from 6.33% in 2020[24]. - The company obtained a total of 13 new patents in 2021, including 7 invention patents, enhancing its product competitiveness[35]. - The company is focusing on enhancing the high-speed cutting performance of CNC blades to meet the increasing demand for efficient processing[47]. - Continuous research and development efforts are being made in cutting tools for difficult-to-machine materials, particularly in the aerospace sector[47]. - The company has developed 42 unique hard alloy substrate grades, enhancing product range coverage[49]. - The company has designed over 60 different groove structures for various machining applications, improving cutting efficiency and tool life[50]. - The company is currently in the pilot stage for multiple projects, including a new series of general-purpose milling tools and a new generation of cutting tools for the automotive industry[59]. - The company aims to enhance its competitive advantage by developing innovative milling tools and optimizing existing production processes[59]. - The company has invested $50 million in R&D for new technologies, focusing on AI and machine learning applications[139]. Market Expansion and Sales - The company plans to expand its market presence and enhance product offerings, focusing on the development of new technologies and products in the cutting tool sector[7]. - The company has built a nationwide sales network covering over 20 provinces and cities, focusing on major CNC blade distribution centers in South China, East China, and North China[41]. - The company is focusing on expanding its market presence in general processing, automotive, and aerospace sectors[59]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in sales in that region[141]. - Market expansion efforts led to a 20% increase in international sales, now accounting for 40% of total revenue[139]. Operational Integrity and Governance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the accuracy and completeness of its financial statements[5]. - The company's board of directors and management have confirmed the authenticity and completeness of the annual report, taking legal responsibility for its contents[4]. - The company has outlined various operational risks and corresponding mitigation strategies in its management discussion and analysis section[4]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[8]. - The company has implemented internal control systems in compliance with relevant regulations, enhancing operational efficiency and governance standards[173]. Environmental and Social Responsibility - The company has integrated ESG factors into its governance structure and established an environmental protection department to oversee safety and environmental management[176]. - The company has implemented a dual prevention mechanism for safety risk control and hidden danger investigation, conducting daily, weekly, and monthly inspections[177]. - The company has established an environmental management system in compliance with relevant laws, including ISO 14001, to ensure effective environmental governance[188]. - The company generated a donation of 380,000 yuan to the charity in August 2021 for pandemic relief efforts[196]. Shareholder and Financial Policies - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profit for the year, or a cumulative distribution of at least 30% of the average annual distributable profit over the last three years since listing[166]. - The company will consider a cash dividend ratio of at least 80% for mature stages without major capital expenditures, and at least 40% if there are significant expenditures[167]. - The company has established a comprehensive decision-making mechanism for profit distribution, ensuring independent directors' opinions are included and small shareholders have opportunities to express their views[170]. - The company has a three-year dividend return plan for shareholders from 2021 to 2023[131]. Employee Management and Development - The total number of employees in the parent company is 552, with 361 in production, 46 in sales, 91 in technical roles, 11 in finance, and 43 in administration[160]. - The company has implemented a competitive salary policy to enhance employee motivation and engagement, aligning with national labor laws[161]. - The company has developed an annual training plan focusing on management and sales personnel to improve skills and core competencies[162]. - The company has conducted thorough training needs assessments to ensure effective employee development[162].