Willfar(SH:688100)2022-02-27 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥1.83 billion, representing a 26.03% increase compared to ¥1.45 billion in 2020[37]. - Net profit attributable to shareholders was approximately ¥341.44 million, a 24.02% increase from ¥275.31 million in 2020[37]. - The net cash flow from operating activities reached approximately ¥245.65 million, reflecting a 30.27% growth from ¥188.57 million in 2020[37]. - The company's total assets increased by 12.99% to approximately ¥3.71 billion at the end of 2021, compared to ¥3.28 billion at the end of 2020[37]. - Basic earnings per share rose to ¥0.68, a 21.43% increase from ¥0.56 in 2020[37]. - The company's operating costs amounted to 1,187,967,423.88 CNY, reflecting a year-on-year increase of 28.19%[147]. - The comprehensive gross profit margin for 2021 was 34.93%, a decrease of 1.1 percentage points from 2020[151]. - The company's revenue from the smart utility IoT sector reached ¥1,818,455,297.49, representing a year-on-year increase of 26.15%[152]. - The gross margin for the smart utility IoT sector was 34.78%, a decrease of 1.07 percentage points compared to the previous year[152]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 2.6 CNY per 10 shares, totaling 130 million CNY, which represents 38.07% of the net profit attributable to shareholders[7]. - The profit distribution plan has been approved by the board and is pending approval from the annual shareholders' meeting[7]. - The company does not plan to increase capital reserves or issue bonus shares[7]. Research and Development - The R&D expenditure as a percentage of operating revenue was 9.69%, up from 8.95% in 2020, indicating a focus on innovation[37]. - The company has established a three-tier R&D organizational structure to support core technology and product development, integrating independent and collaborative R&D models[65]. - The company achieved a research and development investment of 177 million yuan, a year-on-year increase of 36.51%, with R&D expenses accounting for 9.69% of revenue, up 0.74 percentage points year-on-year[90]. - The company has obtained 70 software copyrights in the development of its smart cloud platform, focusing on smart parks, water management, gas management, and energy consumption information collection[85]. - The company has been recognized as a high-tech enterprise and a "little giant" in Hunan Province, reflecting its innovation capabilities[27]. Market Expansion and Strategy - Willfar Information Technology Co., Ltd. reported a significant expansion in its sales network, covering over 30 provinces and 2,800 cities in China, serving nearly 100,000 enterprises[27]. - The company is focused on supporting the national "dual carbon" goals and aims to provide low-carbon, efficient IoT solutions for energy management[62]. - The company is actively expanding into smart city markets, including smart water management and smart fire safety, to drive future growth[126]. - The company aims to grow its IoT business, with a target of reaching over 100 billion yuan in output value for 10 IoT enterprises by the end of 2023, as part of the national plan[75]. Technological Advancements - Willfar's advanced metering infrastructure (AMI) is a crucial component of the digital grid, enabling user engagement and supporting grid operations[27]. - The company is leveraging advanced technologies such as 5G, NB-IoT, and LoRa for improved communication and data collection in its energy solutions[27]. - The company launched the V3.0 version of its smart fire cloud platform, which enables real-time proactive detection of fire hazards, transitioning from passive supervision to active monitoring[92]. - The company’s WFET-1900 energy controller has been recognized as reaching international advanced levels and won the 2021 Hunan Province Instrumentation Industry Innovation Product Award[92]. Risks and Challenges - The company has detailed potential risks in the annual report, which can be found in the "Management Discussion and Analysis" section[5]. - Financial risks are present due to fluctuations in the prices of electronic components and raw materials, which could adversely affect operating performance[138]. - The company faces risks related to core competitiveness due to increasing market competition in the IoT sector[137]. Corporate Governance - The company has confirmed that all board members attended the board meeting[6]. - The company has not violated any decision-making procedures for external guarantees[11]. - The company has stated that there are no special arrangements for corporate governance[11]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[11]. Awards and Recognition - The company has been recognized with multiple industry awards, including the first prize in Hunan Province's Science and Technology Progress Award for two consecutive years[122]. - The company has received recognition in the capital market, being included in the Shanghai Stock Exchange's new generation information technology index[61]. - The company has been recognized as a national "specialized and innovative" small giant enterprise and has received multiple industry awards, including the first prize of the Hunan Provincial Science and Technology Progress Award for two consecutive years[91].