HYATECH(SH:688510)2022-04-26 16:00Financial Performance - The net profit attributable to ordinary shareholders for 2021 was RMB 24,271,104.15, with a proposed cash dividend of RMB 1 per 10 shares[6]. - As of December 31, 2021, the company's distributable profits amounted to RMB 110,364,632.53, with no profit distribution in 2020[6]. - The total number of shares for dividend distribution is 258,382,608, leading to a total proposed cash dividend of RMB 25,838,260.80 (including tax)[6]. - The company's operating revenue for 2021 was approximately ¥312.64 million, representing a year-over-year increase of 3.82% compared to ¥301.12 million in 2020[22]. - The net profit attributable to shareholders decreased by 59.48% to ¥24.27 million from ¥59.90 million in the previous year[22]. - The basic and diluted earnings per share fell by 70.97% to ¥0.09 from ¥0.31 in 2020[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses dropped by 89.6% to ¥5.47 million from ¥52.55 million in 2020[22]. - Operating profit decreased to 21.53 million yuan, down 68.44% compared to the previous year[33]. - The company reported a total revenue of 10,120 million RMB for the year, with a net profit of 3,108 million RMB, indicating a significant decline compared to the previous year[60]. Operational Risks and Challenges - The company has outlined various operational risks and corresponding countermeasures in the report[4]. - The company has not yet achieved profitability since its listing[4]. - The company faced challenges due to the ongoing impact of the pandemic, changes in exchange rates, and increased costs related to raw materials and external procurement[23]. - The company is exposed to risks related to quality control and raw material price fluctuations, which could adversely affect profitability[71]. - The company anticipates increased competition in the aviation engine component manufacturing sector due to potential market entry by new players[72]. Research and Development - Research and development expenses accounted for 16.4% of operating revenue, an increase of 6.14 percentage points from 10.26% in 2020[23]. - R&D investment totaled approximately ¥51.26 million in 2021, a significant increase of 65.95% year-on-year, representing 16.4% of total revenue[54][55]. - The number of R&D personnel increased to 99, representing 23% of the total workforce, up from 21% in the previous year[63]. - The total compensation for R&D personnel rose to 2,281.27 million RMB, with an average salary of 23.04 million RMB, compared to 20.10 million RMB last year[63]. - The company is focusing on research and development of new technologies to enhance product offerings and improve market competitiveness[129]. Strategic Partnerships and Collaborations - The company signed a strategic cooperation agreement with China Aviation Engine Corporation on January 29, 2021, to establish a long-term partnership[44]. - The company has established stable partnerships with major clients in the aviation engine and medical device sectors, ensuring ongoing business growth[65]. - The company aims to increase its international business share from 35% to over 50% in the supply of blades to Safran, with blade delivery volumes expected to return to pre-pandemic levels by 2022[111]. Market Outlook and Expansion - The Chinese aviation market is expected to receive 9,084 aircraft over the next 20 years, valued at approximately 1.4 trillion USD[36]. - The demand for aviation engine components in China is projected to reach 15,000 units over the next 20 years, with a market value of 260 billion USD[36]. - The orthopedic implant market in China is expected to reach 50.5 billion yuan by 2023, with a compound annual growth rate of 14.2% from 2019 to 2023[39]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2023[132]. Corporate Governance and Management - The company emphasizes a strong governance structure, ensuring fair decision-making and compliance with legal requirements[170]. - The company has a structured decision-making process for remuneration, involving the compensation and assessment committee and the board of directors[137]. - The company has a diverse board with members holding positions in various other organizations, enhancing its governance and strategic oversight[134]. - The company held three shareholder meetings during the reporting period, with all resolutions legally valid and properly disclosed[125]. Environmental and Social Responsibility - The company achieved zero wastewater discharge through its internal treatment processes, ensuring compliance with environmental standards[164]. - The company donated materials worth 0.42 million yuan for pandemic relief and 9.6 million yuan for rural revitalization efforts in Sanmenxia, Henan Province[168]. - The company actively participates in social responsibility initiatives, including donations and support for community welfare during the COVID-19 pandemic[160]. Future Commitments and Strategies - The company plans to invest 100 million in R&D over the next two years to drive innovation and improve product offerings[132]. - The company is committed to enhancing ESG practices and transparency in its operations, aligning with regulatory requirements[160]. - The company has outlined its strategy for market expansion and potential mergers and acquisitions in its future plans[189].