Baota Industry(SZ:000595)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was ¥174,767,013.87, a decrease of 14.71% compared to ¥204,908,810.90 in 2020[21]. - The net profit attributable to shareholders was -¥177,302,698.52, representing a decline of 1,741.14% from a profit of ¥10,803,619.31 in 2020[21]. - The total assets at the end of 2021 were ¥1,363,045,284.53, down 13.89% from ¥1,582,975,387.23 at the end of 2020[21]. - The net assets attributable to shareholders decreased by 18.94% to ¥753,797,782.52 from ¥929,924,269.01 in 2020[21]. - The company reported a basic and diluted earnings per share of -¥0.16, a significant drop from ¥0.01 in 2020[21]. - The weighted average return on equity was -21.08%, down 24.45% from 3.37% in 2020[21]. - Total revenue for 2021 was ¥174,767,013.87, a decrease of 14.71% compared to ¥204,908,810.90 in 2020[46]. - Revenue from the machinery manufacturing sector was ¥144,883,422.96, accounting for 82.90% of total revenue, down 20.52% from the previous year[46]. Shareholder Information - The company has a controlling shareholder, Ningxia State-owned Capital Operation Group, holding 29.33% of shares[19]. - Baota Industry's major shareholder, Baota Petrochemical Group, has committed to waive voting rights for 36 months post-restructuring[19]. - The largest shareholder, Baota Petrochemical Group Co., Ltd., holds 398,415,924 shares, representing 34.99% of total shares, with no changes in holdings during the reporting period[200]. - Ningxia State-owned Capital Operation Group Co., Ltd. holds 334,000,000 shares, accounting for 29.33% of total shares, with no changes in holdings during the reporting period[200]. - The company reported a decrease of 3,809,390 shares held by Baota Industrial Co., Ltd., which is in bankruptcy proceedings, resulting in a total of 18,985,393 shares held[200]. - The shareholder Hu Zuping holds 7,110,000 shares, representing 0.62% of total shares, with an increase of 1,958,900 shares during the reporting period[200]. Corporate Governance - The company has three independent directors on its board, ensuring a balanced governance structure[92]. - The company’s board of directors and management team are appointed through legal procedures, ensuring independence in personnel management[95]. - The company has a clear organizational structure independent of the controlling shareholder[96]. - The company has implemented a comprehensive internal control and compliance system, revising 86 internal control regulations across 28 modules[93]. - The company held 10 board meetings in 2021, reviewing 45 proposals, ensuring compliance with legal and regulatory requirements[92]. - The company emphasized the importance of timely and accurate information disclosure, adhering to regulatory requirements[92]. Operational Strategies - The company is expanding into high-end bearing markets and has begun construction on the "Northwest Bearing High-end Bearing Industry Base Project"[31]. - The company has implemented a centralized sales model to improve market share and has initiated strategies for high-end imported product localization[41]. - The company is focusing on key sectors such as rail transit to optimize its product structure and resource allocation[40]. - The company aims to implement a "specialized, refined, distinctive, and innovative" development strategy, enhancing its core technology and brand recognition[73]. - The company plans to strengthen party building, improve service quality, and enhance internal management in 2022[75]. Research and Development - The company has developed over 200 new products annually, many of which are industry-first or import-substituting products[36]. - R&D investment increased by 21.54% to ¥15,800,000.00, accounting for 9.04% of operating revenue[60]. - The number of R&D personnel increased by 2.94% to 175, with a significant increase in the proportion of personnel holding master's degrees[60]. - The company launched 49 new products in the bearing sector and completed several national and regional R&D projects[47]. Market Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[83]. - The company is set to launch two new products in Q3 2021, anticipated to contribute an additional 200 million RMB in revenue[83]. - The company is exploring potential mergers and acquisitions to strengthen its market position, with a budget of 500 million CNY allocated for this purpose[85]. Financial Management - The company has implemented a comprehensive budget management system to enhance financial control and performance assessment[47]. - Management expenses decreased by 40.61% to ¥53,790,072.62, primarily due to last year's debt restructuring costs and employee severance benefits[58]. - Financial expenses decreased by 86.89% to ¥3,176,149.62 as interest-bearing liabilities decreased[58]. - The company has maintained effective internal controls over financial reporting in all significant aspects according to the internal control evaluation[138]. Legal and Compliance - The company is involved in a lawsuit with Beijing Zhongronghuiya Asset Management Co., claiming 7.3841 million CNY for interest losses from April 3, 2018, to September 10, 2020[170]. - The company faced another lawsuit from Huaxin Technology (Yingkou) Co., which was dismissed, indicating no impact on current or future profits[170]. - The company has not faced any administrative penalties for environmental issues during the reporting period[145]. Employee Development - The company conducted 158 training sessions with 2,346 participants to enhance employee skills and innovation capabilities[42]. - Employee rights are protected through a structured salary and benefits system, promoting a fair and motivating work environment[147]. - The total number of employees at the end of the reporting period was 942, with 682 in production, 55 in sales, 69 in technical roles, 15 in finance, and 121 in administration[126].