JinGuan Electric (SH:688517)2022-04-15 16:00Financial Performance - The company's operating revenue for 2021 was CNY 531,839,447.37, representing a 0.73% increase compared to CNY 527,959,266.7 in 2020[27]. - The net profit attributable to shareholders of the listed company decreased by 6.59% to CNY 69,147,206.88 in 2021 from CNY 74,028,497.47 in 2020[27]. - The net cash flow from operating activities dropped by 34.08% to CNY 16,144,883.93 in 2021, down from CNY 24,491,382.17 in 2020[27]. - The total assets increased by 23.49% to CNY 1,056,568,246.85 in 2021, compared to CNY 855,587,504.0 in 2020[27]. - The net assets attributable to shareholders of the listed company rose by 59.19% to CNY 712,553,971.18 in 2021 from CNY 447,610,753.7 in 2020[27]. - Basic earnings per share decreased by 19.94% to CNY 0.58 in 2021, down from CNY 0.73 in 2020[28]. - The diluted earnings per share also fell by 19.94% to CNY 0.58 in 2021, compared to CNY 0.73 in 2020[28]. - The basic earnings per share after deducting non-recurring gains and losses decreased by 24.76% to CNY 0.51 in 2021 from CNY 0.67 in 2020[28]. - The gross margin for the main business was 30.57%, down 4.16 percentage points from the previous year[115]. - Operating costs rose to ¥367,462,238.14, reflecting a 6.83% increase year-on-year[113]. Dividend Policy - The company plans to distribute a cash dividend of 4.20 CNY per 10 shares, totaling approximately 57.17 million CNY (including tax) based on a total share capital of 136,109,184 shares as of December 31, 2021[5]. - The company's cash dividend policy stipulates that during the mature stage without significant capital expenditure, cash dividends should account for at least 80% of profit distribution[185]. - In the mature stage with significant capital expenditure, cash dividends should account for at least 40% of profit distribution[185]. - For the growth stage with significant capital expenditure, cash dividends should account for at least 20% of profit distribution[185]. - The company must distribute at least 10% of the annual distributable profit in cash dividends over the next three years, with a cumulative minimum of 30% of the average annual distributable profit[188]. Governance and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm, ensuring the accuracy and completeness of the financial report[5]. - The board of directors has confirmed that all members attended the board meeting, ensuring governance and oversight[4]. - The company has not violated decision-making procedures for external guarantees, reflecting adherence to regulatory standards[7]. - The company has not disclosed any special arrangements for corporate governance, suggesting standard practices are in place[8]. - The company has established a robust internal control system to enhance risk management and operational compliance[142]. - The company has maintained a stable shareholding structure, with no changes in shareholdings for key personnel during the reporting period[147]. - The company has a governance structure in place that complies with the requirements for red-chip companies[145]. - The company has established a comprehensive governance structure, including a board of directors with various committees to enhance operational efficiency[197]. Research and Development - The company achieved a total of 26 patents in the development of surge arresters and resistors, and collaborated on projects that received significant awards[38]. - Research and development expenses accounted for 4.99% of operating revenue, a decrease of 0.61 percentage points compared to the previous year[32]. - The company is focused on technological innovation and the development of new products to ensure sustainable and stable growth[36]. - The company has a strong focus on R&D, with a dedicated team and partnerships with universities, enhancing its innovation capabilities in power distribution and control equipment[47]. - The company has developed a range of energy storage systems, including electrochemical storage battery systems and energy management systems, which are now in mass production[46]. - The company reported a total R&D expenditure of ¥26,547,706.58, a decrease of 10.26% compared to the previous year's ¥29,582,224.78[78]. - The company holds a total of 9 invention patents, 117 utility model patents, and 15 software copyrights as of December 31, 2021[76]. Market Position and Strategy - The company is recognized as a leading enterprise in China's lightning arrester industry, with advanced technology and a comprehensive product range covering AC and DC lightning arresters for ultra-high voltage applications[60]. - The company has a strong competitive advantage in the high-voltage lightning arrester sector, being one of the few domestic companies capable of supplying 1000kV AC and DC lightning arresters[103]. - The company is actively pursuing new technologies and products, including pressure-sensitive resistors, to serve the power industry and renewable energy sectors[45]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[157]. - The company plans to maintain its competitive advantage in the ultra-high voltage lightning arrester market while expanding into new product lines such as precision resistors and energy storage[136]. Risks and Challenges - The company has outlined potential risks in its management discussion and analysis section, advising investors to pay attention to these factors[4]. - The company faces risks from high customer concentration, with sales to major grid companies significantly impacting overall performance[105]. - The company is exposed to risks from rising raw material prices, which could impact production costs and profit margins[109]. - The domestic varistor industry is facing challenges in achieving technological parity with advanced foreign competitors, particularly in high-end production equipment[58]. Corporate Social Responsibility - The company donated 1 million yuan and delivered over 4,000 lightning arresters for disaster relief during the floods in Henan in July 2021[196]. - The company has not been classified as a key pollutant discharge unit by environmental protection authorities[198]. - No administrative penalties were incurred due to environmental issues during the reporting period, indicating compliance with environmental regulations[199]. - The company has implemented internal systems for waste management, water pollution control, and air pollution management[200].