SHENGYI ELECTRONICS CO.(SH:688183)2022-03-24 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,647,394,627.95, a slight increase of 0.38% compared to the previous year[23]. - Net profit attributable to shareholders decreased by 39.83% to CNY 264,273,119.32 in 2021[23]. - The net cash flow from operating activities fell by 49.73% to CNY 421,454,567.51[23]. - The basic earnings per share dropped by 50.00% to CNY 0.33[23]. - The total operating revenue was 3,647,394,627.95 RMB, a year-over-year increase of 0.38%[113]. - The net profit attributable to shareholders was 264,273,119.32 RMB, a decrease of 39.83% year-over-year[116]. - Operating cash flow net amount decreased by 49.73% to 421,454,567.51 RMB[113]. Dividend Distribution - The company plans to distribute a cash dividend of 1.60 CNY per 10 shares, totaling approximately 133.09 million CNY, which represents 50.36% of the net profit attributable to shareholders for 2021[6]. - In the previous year, the company distributed a cash dividend of 3.30 RMB per 10 shares (including tax), totaling 274,500,987.75 RMB[196]. Corporate Governance - The company has received a standard unqualified audit report from Huaxing Accounting Firm[5]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not experienced any violations of decision-making procedures regarding external guarantees[7]. - The company has not reported any special arrangements for corporate governance[7]. - The company has confirmed that all board members attended the board meeting[5]. - The company has established a governance structure to ensure efficient operations and compliance with relevant regulations[149]. - The audit committee held multiple meetings to review important financial reports and proposals, including the annual audit report and profit distribution plan[187]. Research and Development - Research and development expenses accounted for 5.20% of operating revenue, an increase of 0.9 percentage points from the previous year[23]. - The total R&D expenditure for 2021 was approximately ¥189.58 million, representing a 21.37% increase from the previous year, and accounting for 5.20% of total revenue[79]. - The company has invested over 30 years in R&D, resulting in 13 core technologies in the PCB manufacturing field, maintaining a strong competitive edge[70]. - The company is currently involved in significant R&D projects, including a high-isolation transceiver antenna array design for 5G communications, supported by national key R&D plans[71]. - The company has completed several key R&D projects, including a selective gold-plated composite surface treatment PCB with an investment of ¥16,000,000, achieving a cumulative investment of ¥11,886,733.38[83]. - The company has made significant advancements in 5G-related PCB technologies, with multiple projects completed in high-frequency and high-speed materials[83]. Market Position and Strategy - The company focuses on high-end applications in the PCB market, including communication, network, automotive, and consumer electronics sectors[42]. - The company is actively involved in the development of high-end server products, having passed multiple PCB product certifications for these products[58]. - The company is positioned to benefit from the growing applications of HDI technology in consumer electronics, particularly in smartphones and laptops[53]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a budget of 500 million RMB allocated for this purpose[165]. - The company aims to strengthen its international market presence and enhance its overseas marketing service network[145]. Operational Efficiency - The company aims to improve operational efficiency through lean TPM (Total Productive Maintenance) projects, focusing on cost reduction and efficiency enhancement across various processes[36]. - The company has implemented a comprehensive quality management system to enhance product quality and process control[34]. - The company emphasizes automation and digital transformation to enhance management and manufacturing capabilities, creating a virtuous cycle of improvement[98]. Risks and Challenges - The company faced challenges from rising raw material costs and a decrease in demand from telecommunications clients due to the adjustment of the 5G construction cycle[32]. - The company is exposed to macroeconomic risks due to uncertainties in international economic trends and potential impacts from trade tensions and the COVID-19 pandemic[109]. - The company faces risks related to technological innovation, as it operates in a technology-intensive industry where maintaining competitive advantages is critical[99]. Employee and Management - The total number of employees in the parent company is 4,028, with a combined total of 5,037 employees across the parent and major subsidiaries[191]. - The total remuneration for core technical personnel at the end of the reporting period was CNY 670.05 million[177]. - The company has established a competitive salary and incentive system, considering factors such as profitability and local living standards[192]. - The company emphasizes talent development as a key focus for 2021, implementing various training programs to enhance employee skills[195]. Financial Position - Cash and cash equivalents at the end of the period were 1,163,314,673.29 RMB, making up 18.10% of total assets, a significant increase of 636.68% compared to the previous period[132]. - Fixed assets reached 2,592,670,722.11 RMB, accounting for 40.33% of total assets, with a growth of 33.37% from the previous period[132]. - The total debt has been reduced by 10% to 300 million, improving the company's financial stability[171].