GATD(SH:688239)2022-03-15 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 138.94 million yuan in 2021, with a distributable profit of 125.71 million yuan after statutory surplus reserve allocation[9]. - A cash dividend of 2 yuan per 10 shares (including tax) is proposed, totaling 28 million yuan, which accounts for 22.27% of the distributable profit for the year[9]. - In 2021, the company achieved operating revenue of CNY 959.78 million, a year-on-year increase of 43.11%[31]. - The net profit attributable to shareholders was CNY 138.94 million, representing a 91.13% increase compared to the previous year[31]. - The net profit after deducting non-recurring gains and losses was CNY 123.94 million, up 76.25% year-on-year[31]. - The total profit for the year was 155,914,600 RMB, which is an increase of 88.31% compared to the previous year[46]. - The operating profit for the year was 156,543,100 RMB, reflecting an increase of 86.80% from the previous year[46]. - The company reported a significant increase in other income, which rose by 127.32% to approximately 28.85 million RMB, primarily from government subsidies[185]. - The gross profit margin for the forging industry improved by 3.90 percentage points, reaching 33.15%[188]. Operational Highlights - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[13]. - The company has received a standard unqualified audit report from Da Xin Accounting Firm[8]. - The board of directors has approved the profit distribution plan during the 14th meeting of the fourth board session[9]. - The company had a total order backlog of 1.22 billion RMB at the end of the reporting period, providing a solid foundation for operations in 2022 and beyond[47]. - The company reported a negative net cash flow from operating activities of CNY -53.32 million, a decrease of 143.30% year-on-year[33]. - The cash flow from operating activities showed a net outflow of 31,944,226.98 RMB in the third quarter[36]. - The company achieved significant advancements in the manufacturing of large complex shaped ring forgings, integrating advanced material application technology with unique process technology, resulting in a strong competitive edge with 19 authorized patents[96]. Research and Development - Research and development expenses accounted for 5.07% of operating revenue in 2021, slightly down from 5.09% in 2020[33]. - The company has undertaken 33 research projects, including 2 national-level projects and 24 self-initiated projects, leading to breakthroughs in new materials and processes, with some projects entering mass production[51]. - The company has developed proprietary technologies for high-temperature alloys, titanium alloys, and aluminum alloys, achieving stable rolling and forming of mainstream aerospace materials such as GH4169, GH4141, and 718plus[90]. - The company is focusing on the development of new materials and manufacturing processes for aerospace applications, aiming for domestic leadership in technology[115]. - The company has completed the optimization of forging process parameters for new alloy components, facilitating the production of a new batch of products[117]. - The company has developed key technologies for low-stress control in the entire process of difficult-to-deform material ring forging, with 17 authorized patents enhancing its competitive position[96]. Market Position and Strategy - The company is positioned within the "high-end equipment manufacturing industry," specifically in the aerospace sector, which is classified as a key emerging industry in China[67]. - The company is actively participating in the development of key military aviation engine components, aiming to secure a leading position in the military aviation market[85]. - The company has established long-term agreements with major international aerospace manufacturers, which are critical for maintaining profitability and business development[155]. - The company is positioned as a major supplier of high-quality ring forgings for mainstream aircraft engine manufacturers in the Asia-Pacific region, focusing on high-end applications[81]. - The company is committed to enhancing its ring forging technology to meet the increasing demands for high-temperature and high-pressure applications in next-generation aircraft engines[72]. Risks and Challenges - The company has detailed various risks faced during operations in the report, emphasizing the importance of risk awareness for investors[6]. - The company faces high industry entry barriers due to stringent requirements for material quality and performance, with only a few domestic firms capable of producing high-performance ring forgings[73]. - The company is facing risks related to the cancellation or inability to renew supplier qualifications with international aerospace engine manufacturers, which could impact customer retention[153]. - The company is subject to U.S. export regulations, which could hinder its international business operations if trade policies change unfavorably[183]. - The company has a tax rate benefit of 15% due to its high-tech enterprise status, and a loss of this benefit could reduce net profit by CNY 12.93 million[173]. Customer and Supplier Dynamics - The procurement of raw materials is mainly dictated by end customers, with significant clients including GE Aviation, Collins Aerospace, and Safran, who specify suppliers and pricing[66]. - Sales revenue from the top five customers accounted for 46.68% of total sales during the reporting period, indicating a high customer concentration risk[156]. - The total procurement amount from the top five suppliers is ¥46,253.66 million, which is 60.60% of total annual procurement[197]. - The company does not rely on a single customer or a few customers, maintaining a stable customer base[196]. Innovation and Technology - The company has established an intelligent manufacturing simulation laboratory to optimize the production process of complex-shaped forgings, ensuring precise forming and metallurgical quality[94]. - The company has developed a digital integration management technology that enhances automation and information levels in ring forging production, aligning with high-end equipment manufacturing trends[100]. - The company has developed key technologies for the design and manufacturing of intermediate blanks for complex-shaped ring forgings, addressing critical technical challenges in the industry[94]. - The company has made significant progress in the development of precision manufacturing technology for aerospace engine components, with several projects reaching advanced stages[116].