JSCQ(SH:688182)2022-04-06 16:00Financial Performance - The company reported a revenue of CNY 333.58 million in 2021, a decrease of 67.99% compared to CNY 1.04 billion in 2020[27]. - Net profit attributable to shareholders was CNY 87.50 million, down 67.15% from CNY 266.33 million in the previous year[27]. - The net profit after deducting non-recurring gains and losses was CNY 32.13 million, a decline of 92.02% compared to CNY 402.62 million in 2020[27]. - The company achieved operating revenue of CNY 333,582,985.63, a decrease of 67.99% compared to the previous year[126]. - The gross profit margin for the main business was 36.65%, down 18.22 percentage points year-on-year[128]. - The sales revenue of the company's main product, the filter, decreased by 70.58% in 2021 compared to 2020[109]. - The company's main business revenue decreased by 68.04% compared to the previous year, with a significant drop in filter products' revenue by 70.58%[137]. - The company faced significant risks due to international trade tensions, with sales to Huawei accounting for 68.50% of total revenue in 2021[123]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.80 RMB per 10 shares, totaling 32 million RMB, which represents 36.57% of the net profit attributable to shareholders for 2021[7]. - The company has not proposed any capital reserve fund transfers to increase share capital or stock dividends for the year[7]. Audit and Governance - The company has received a standard unqualified audit report from its accounting firm, ensuring the accuracy of its financial statements[6]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - The company has a clear commitment to transparency, with all board members present for the meeting to approve the report[6]. - The company does not have any special arrangements for corporate governance that would affect its operations[8]. - The company has established a strong governance framework with a dedicated supervisory board, enhancing accountability and oversight[188]. Research and Development - Research and development expenses accounted for 9.38% of revenue, an increase of 5.36 percentage points from 4.02% in 2020[27]. - The total R&D investment for the current year is ¥31,294,988.53, a decrease of 25.21% compared to the previous year's ¥41,843,325.10[87]. - The company completed 14 major R&D projects during the reporting period, achieving good progress in areas such as AF large dielectric and multiplexer design and development[97]. - The company has developed 73 invention patents and 81 utility model patents, indicating a strong focus on innovation[86]. - The company is focusing on R&D in microwave dielectric ceramic materials and components, with projects aimed at 5G communication and IoT[122]. Market Position and Customer Relationships - The company has established a customer base of hundreds, including major clients such as Huawei, Ericsson, and China Mobile, and has become a core supplier for Huawei since 2019[39]. - Revenue from the top five customers accounted for 87.35% of total revenue, with Huawei alone contributing 68.50%[111]. - The company's sales to its largest customer, Huawei and its controlled entities, accounted for 68.50% of total revenue, exceeding 50%[145]. - The company maintains stable cooperation with major clients such as Huawei and Ericsson, closely aligning with their market demands[106]. Production and Operational Efficiency - The company employs a "make-to-order" production model, ensuring that production is aligned with actual customer orders, which helps maintain quality and efficiency[43]. - The utilization rate of production capacity for microwave dielectric ceramic components was only 9.18% in 2021, primarily due to reduced orders related to 5G base station construction[118]. - The company has a high level of automation in its production processes, which reduces reliance on personnel skills and enhances production efficiency[79]. Risks and Challenges - The company has outlined potential risks in its management discussion and analysis section, advising investors to pay attention[5]. - The company faces risks from potential raw material price fluctuations, particularly for silver paste, PCB boards, and ceramic powders, which could impact production costs and gross margins[113]. - The company faces risks of further performance decline if the domestic 5G base station construction progresses slower than expected or if market competition intensifies[109]. - The ongoing COVID-19 pandemic has negatively impacted the progress of 5G infrastructure construction, potentially affecting the company's performance[124]. Future Outlook and Strategic Goals - The company aims to strengthen its position in the 5G base station filter market, anticipating increased demand in the coming years[171]. - The company is focused on developing miniaturized RF components to meet the demands of low-power and high-reliability applications[174]. - The company has a strategic goal to become a leader in the global electronic ceramics industry, capitalizing on opportunities in 5G communication and IoT[170]. - The company is actively developing new customers and products in the aerospace and national defense sectors, showing positive growth trends[73].