RAYITEK(SH:688323)2022-03-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥318,815,848.56, a decrease of 8.95% compared to ¥350,161,598.49 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥56,050,404.79, down 4.25% from ¥58,536,675.34 in 2020[21]. - The net profit after deducting non-recurring gains and losses increased by 15.54% to ¥50,929,456.68 in 2021 from ¥44,079,433.26 in 2020[21]. - The cash flow from operating activities for 2021 was ¥78,383,334.26, a decrease of 13.17% compared to ¥90,268,599.40 in 2020[21]. - The total assets at the end of 2021 reached ¥1,746,480,857.12, reflecting a 50.46% increase from ¥1,160,790,503.21 at the end of 2020[22]. - The net assets attributable to shareholders increased by 45.16% to ¥881,965,321.67 at the end of 2021 from ¥607,595,860.27 at the end of 2020[22]. - The basic earnings per share for 2021 was ¥0.34, a decrease of 20.93% from ¥0.43 in 2020[23]. - The comprehensive gross profit margin for the year was 44.86%, a decrease of 0.70 percentage points year-on-year, indicating stable performance despite slight margin compression[101]. Dividend Policy - The company plans to distribute a cash dividend of 0.70 RMB per 10 shares, totaling 12,600,000 RMB, which represents 22.48% of the net profit attributable to shareholders for the year 2021[5]. - The company has not proposed any capital reserve transfer to increase share capital or bonus shares for the year 2021[5]. - The company has a cash dividend policy that stipulates a minimum of 10% of the distributable profit will be distributed as cash dividends if there are no major investment plans or cash payments[188]. - The company prioritizes cash dividends, with a minimum of 80% of the profit distribution in cash for mature companies without major expenditures[188]. - The board of directors must complete the dividend distribution within two months after the shareholders' meeting decision on the profit distribution plan[190]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 8.34% in 2021 from 6.60% in 2020, indicating a focus on innovation[23]. - Research and development expenses for the year were CNY 26.60 million, an increase of 15.17% year-on-year, focusing on high-performance polyimide materials for various applications[36]. - The company achieved a research and development investment of approximately ¥26.6 million in the current year, representing a 15.17% increase compared to ¥23.1 million in the previous year[69]. - The company has independently developed multiple series of formulations, becoming one of the most diverse suppliers of high-performance PI films[64]. - The company is currently developing several projects, including a high thermal conductivity film with a thermal conductivity rate exceeding 1500W/m.K, aimed at enhancing the efficiency of electronic products[71]. Market Position and Products - The company has developed several competitive products, including films for flexible displays and 5G communications, and is recognized by major domestic and international clients[40]. - The company is positioned in the high-performance PI film industry, which is characterized by complex preparation technology and high market demand, particularly for domestic production[52]. - The company has become one of the few domestic manufacturers to master the complete set of core technologies for high-performance PI films, successfully developing a variety of products that have gained recognition from major global companies[54]. - The flexible display market is expanding, with CPI films being adopted in various foldable electronic devices, indicating a significant increase in market demand and penetration[60]. - The company is focusing on high-performance polyimide (PI) films, which are evolving towards high-performance and multifunctional applications, including high-temperature insulation and environmental resistance[55]. Governance and Compliance - The company has not disclosed any special arrangements for corporate governance[8]. - The company adheres to strict information disclosure practices and insider trading prevention measures, ensuring transparency in operations[39]. - The company has established a robust mechanism for decision-making involving the shareholders' meeting, board of directors, and supervisory board[150]. - The company is committed to improving its governance structure in accordance with the Company Law and other regulations, ensuring the protection of shareholder interests[150]. - The company has established a comprehensive internal control system, maintaining effective financial reporting controls without significant deficiencies during the reporting period[196]. Risks and Challenges - The company has detailed various risks it may face in its operations, which can be found in the "Management Discussion and Analysis" section of the report[4]. - The company faces risks related to raw material price fluctuations, with a potential 1-3 percentage point decline in gross margin if key materials' prices rise by 10%[89]. - The company is exposed to market competition risks, as it operates on a smaller scale compared to international competitors, which may affect its operational performance[92]. - The company faced risks related to the COVID-19 pandemic, which could impact production, procurement costs, and project implementation timelines[94]. Financial Position - As of December 2021, the company had short-term borrowings of CNY 105 million and long-term borrowings of CNY 562.75 million, indicating a reliance on debt financing[91]. - The company's cash and cash equivalents at the end of the period were 202.87 million RMB, which is 11.62% of total assets, reflecting a 235.20% increase from the previous year[116]. - The company's long-term loans increased to ¥562,750,000, a 350.20% rise compared to ¥125,000,000 in the previous year, primarily due to loans for fixed asset projects[117]. - The total restricted assets amounted to ¥179,170,410.21, with fixed assets and intangible assets being pledged for loans[119]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 369, with 296 in the parent company and 73 in subsidiaries[183]. - The employee composition includes 190 production staff, 12 sales personnel, 73 technical staff, 9 financial staff, 37 administrative staff, and 48 engineering staff[183]. - The company has established a training program to enhance employee skills and management capabilities, ensuring alignment with operational needs[186]. - The total remuneration for core technical personnel at the end of the reporting period was 5.38 million RMB[170]. - The company has implemented a competitive salary structure based on various factors including job position and performance, ensuring timely payment of wages and benefits[185].