HYATECH(SH:688510)2022-05-27 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 cash dividend payout of RMB 25,838,260.80 (including tax)[6]. - The company's operating revenue for 2021 was approximately CNY 312.64 million, representing a year-over-year increase of 3.82% compared to CNY 301.12 million in 2020[22]. - The net profit attributable to shareholders decreased by 59.48% to CNY 24.27 million from CNY 59.90 million in the previous year[22]. - The basic and diluted earnings per share fell by 70.97% to CNY 0.09, down from CNY 0.31 in 2020[23]. - The net profit after deducting non-recurring gains and losses dropped by 89.6% to CNY 5.47 million compared to CNY 52.55 million in 2020[22]. - The company's total assets increased by 12.58% to CNY 1.36 billion from CNY 1.21 billion in 2020[22]. - The weighted average return on equity decreased by 11.2 percentage points to 2.55% from 13.75% in 2020[23]. - The net assets attributable to shareholders increased by 2.21% to CNY 960.63 million from CNY 939.82 million in 2020[22]. - The overall gross profit margin decreased to 31.49%, down 13.71 percentage points from the previous year[75]. - The net profit attributable to the parent company was 24.27 million RMB, a decline of 59.48% year-on-year[79]. 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 ¥51,257,251.58, representing a 65.95% increase year-on-year, with R&D expenses accounting for 16.4% of operating revenue, up from 10.26%[54][55]. - The number of R&D personnel increased to 99, accounting for 23% of the total workforce, up from 21% in the previous year[63]. - R&D personnel compensation totaled 2,281.27 million RMB, with an average salary of 23.04 million RMB, reflecting an increase from 20.10 million RMB in the prior year[63]. - The company has applied for a total of 110 patents, including 57 invention patents, with 23 new patent applications during the reporting period[51]. Operational Challenges - The company faced challenges due to the ongoing impact of the pandemic, changes in exchange rates, and increased costs related to product delivery and raw materials[23]. - The decline in profit was primarily due to increased R&D investment, higher costs in domestic aviation business, and the impact of medical procurement policies[33]. - The company faces risks from increased competition in the aviation engine parts manufacturing sector due to potential new entrants[76]. - Fluctuations in the USD/RMB exchange rate could impact the company's performance, as foreign sales accounted for 28.94% of total revenue[77]. Market Outlook - The Chinese aviation market is projected to receive 9,084 aircraft over the next 20 years, valued at approximately 1.4 trillion USD, indicating strong long-term demand for aviation engine components[36]. - The market for aviation engines in China is expected to deliver a total of 15,000 units over the next 20 years, with a market value of 260 billion USD[36]. - The orthopedic implant market in China is projected 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 positioned as a midstream supplier in the aviation industry chain, primarily providing finished components[41]. Strategic Initiatives - 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 plans to invest 83,237.40 million RMB in expanding the capacity of key components for aircraft engines, with 6,968.14 million RMB already invested in the reporting period[114]. - The company aims to increase its actual supply share to over 50% from 35% in the partnership with Safran for blade procurement, with delivery volumes expected to return to pre-pandemic levels by 2022[123]. - The company plans to enhance production efficiency and quality management, focusing on strategic customer needs and new product development[129]. Governance and Compliance - The company has received a standard unqualified audit report from the accounting firm Tianye[5]. - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report[4]. - The company has established a governance structure that operates effectively in accordance with relevant laws and regulations, enhancing the fairness and rationality of board decisions[134]. - The company has not encountered any significant differences in governance compared to regulations set by the China Securities Regulatory Commission[134]. - The company has implemented a robust supplier management system to foster long-term partnerships based on mutual benefit and quality assurance[187]. Social Responsibility - The company donated materials worth 0.42 million yuan for pandemic relief and 9.6 million yuan to support rural revitalization efforts in Sanmenxia, Henan Province[180]. - The company actively participates in social responsibility initiatives, including donations and support for community welfare during the COVID-19 pandemic[172]. - The company has established a comprehensive environmental management system, including regulations for hazardous waste management and pollution control[177]. Employee and Management - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 5.2764 million RMB[149]. - The company has a structured approach to determining the remuneration of senior management based on performance assessments and company profitability[149]. - The company has seen a change in the financial director position due to personal reasons, with Huang Qin being appointed following a job adjustment[150]. - The company has maintained a stable management team with no significant changes in shareholding or remuneration during the reporting period[139].