OKE(SH:688308)2022-03-29 16:00Financial Performance - The company's operating revenue for 2021 was CNY 990,388,668.41, representing a 41.04% increase compared to CNY 702,209,076.78 in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 222,222,319.07, a significant increase of 106.82% from CNY 107,448,625.38 in 2020[22]. - The basic earnings per share for 2021 was CNY 2.22, reflecting a 55.24% increase from CNY 1.43 in 2020[23]. - The company's total assets at the end of 2021 were CNY 1,932,960,339.85, up 19.19% from CNY 1,621,708,390.81 at the end of 2020[22]. - The net cash flow from operating activities for 2021 was CNY 159,532,716.57, an increase of 26.97% compared to CNY 125,646,440.49 in 2020[22]. - The company reported a net profit margin of 22.44% in 2021, an increase of 7.14% compared to the previous year[33]. - The revenue from CNC tools reached CNY 455.20 million in 2021, a year-on-year growth of 50.14%, with sales volume increasing by 43.11%[33]. - The revenue from hard alloy products was ¥532,270,827.13, with a gross margin of 24.53%, an increase of 1.77 percentage points[85]. - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 15% year-over-year growth[131]. Research and Development - Research and development expenses accounted for 4.95% of operating revenue in 2021, up from 4.72% in 2020[23]. - The company increased its R&D investment by 47.88% in 2021, launching 35 new projects and adding nearly 2,000 new CNC blade products[34]. - The company achieved a significant increase in R&D investment, totaling ¥48,980,257.38, which represents a 47.88% growth compared to the previous year[56]. - The company has a diverse R&D team, including 1 PhD, 1 Master's degree holder, and 53 Bachelor's degree holders, with a total of 166 personnel[67]. - The company is focusing on optimizing coating technologies to enhance cutting performance and tool longevity, catering to customer needs[53]. - The company is developing multiple projects, including a grooving tool with an expected total investment of ¥1,800,000, which has already seen cumulative investments of ¥4,177,355.53[59]. - The company has developed a comprehensive technology system for hard alloy manufacturing and tool production, enhancing its competitive edge in the market[69]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures for providing guarantees[7]. - The company has not proposed any stock bonus or capital reserve conversion plan[5]. - The company has established a fair and scientific compensation and performance evaluation system to protect employee rights and promote mutual growth[152]. - The company has a structured decision-making process for profit distribution, requiring independent directors' opinions and monitoring by the supervisory board[157]. - The company has established a sound corporate governance structure, ensuring effective checks and balances among the board of directors, supervisory board, and management[187]. Market Strategy and Expansion - The company is focusing on enhancing cutting efficiency and high-temperature performance of CNC blades to meet increasing demands from the mechanical processing industry[50]. - The company aims to achieve industry-leading levels in various product categories, including high-performance cutting tools for aerospace and automotive applications[61]. - The company plans to deepen its domestic market presence and accelerate overseas market expansion, including opening overseas tool stores and promoting its own brand[117]. - The company is transitioning from a simple tool supplier to a key partner in providing comprehensive cutting solutions for user enterprises[51]. - The company is dedicated to achieving "import substitution" and moving towards "export substitution" in its market strategy[116]. Social Responsibility and Environmental Impact - The company has been recognized with multiple honors for its contributions to social responsibility and community support, including tax contributions exceeding 40 million RMB[169]. - The company has created over 800 jobs and provided employment opportunities for over 10 disabled individuals, contributing to local economic development[169]. - The company is committed to building a green factory and promoting energy-saving practices through digital and automated production systems[168]. - The company has implemented a waste management system to classify and store solid waste, promoting recycling and reducing environmental impact[177]. - The company has adopted energy-saving measures, including centralized control of air conditioning and lighting to reduce electricity consumption and carbon emissions[179]. Risks and Challenges - The company faces risks from intense competition in the CNC tool manufacturing sector, particularly from imported brands that dominate the market[74]. - Rapid expansion may lead to management inefficiencies and increased operational costs if the company does not enhance its management capabilities[75]. - The company faced risks related to raw material price fluctuations, particularly tungsten carbide, which constitutes approximately 86% of raw materials[76]. - The company is exposed to macroeconomic risks that could impact the demand for its products in various industries[80]. Employee and Management Structure - The company has 603 employees in the parent company as of the end of the reporting period[150]. - The total number of employees in the company is 866, with 568 in production, 74 in sales, 160 in technology, and 64 in management[151]. - The company has increased its R&D personnel from 94 to 160, representing a growth rate of 70.21%, with R&D personnel now accounting for 18.48% of the total workforce[68]. - The company continues to focus on retaining key talent through competitive remuneration packages[139]. Financial Management - The company has a robust financial management system, with no instances of overdue bank loans, ensuring the protection of creditor rights[187]. - The company reported a total remuneration of RMB 452.01 million for all directors, supervisors, and senior management personnel during the reporting period[139]. - The total remuneration for core technical personnel at the end of the reporting period was RMB 259.25 million[140].