SLC(SZ:002106)2022-03-30 16:00Financial Performance - The company reported a total revenue of 705,816,160, with a cash dividend of 1.00 yuan per 10 shares (including tax) for all shareholders[11]. - In 2021, the company's operating revenue reached ¥7,682,304,459.54, representing a 13.79% increase compared to 2020[36]. - The net profit attributable to shareholders was ¥491,128,434.89, up 12.10% from the previous year[36]. - The net profit after deducting non-recurring gains and losses was ¥453,934,937.30, an increase of 18.08% year-on-year[36]. - The net cash flow from operating activities significantly rose by 164.91% to ¥638,928,506.89[36]. - The gross profit margin for electronic components decreased by 1.78% to 14.20% in 2021, attributed to a higher proportion of lower-margin products sold in the second half of the year[68]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB in 2021, representing a year-on-year growth of 25%[158]. - The gross margin for 2021 was reported at 35%, an increase from 30% in 2020, indicating improved cost management[158]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2021, representing a year-over-year increase of 15%[198]. - The gross profit margin improved to 35%, up from 32% in the previous year, indicating better cost management and pricing strategies[198]. Market and Competitive Landscape - The company is facing risks due to the COVID-19 pandemic, global trade protectionism, and supply shortages of raw materials, which may impact its operational performance and market demand for large-sized capacitive touch screens[25]. - The company is experiencing increased competition in the large-sized capacitive touch screen market due to new entrants and the promotion of embedded touch display structures by panel manufacturers[25]. - The company is under pressure from competitors in the large-size touchscreen market due to the increasing promotion of On-Cell and In-Cell structures by display panel manufacturers[148]. - The global demand for ITO conductive glass is expected to decline in 2022 due to increased competition and a shift towards color TFT-LCD panels[129]. - The global notebook computer shipments reached 246 million units in 2021, a 19.4% increase from 2020, but are projected to decrease by 3.3% in 2022[132]. - The company faces intensified price competition as new entrants emerge in the touch screen market, particularly in the mid to low-end segments[135]. Research and Development - The company focuses on developing new products and technologies such as ultra-hard AR coating, AOFT structure, and invisible metal mesh capacitive touch screens to enhance its competitive advantage in the large-sized capacitive touch screen market[26]. - The company is actively researching and developing new products like Mini LED to create new business and profit growth points[26]. - The company has applied for and was granted a total of 381 patents, including 372 patents in mainland China, 6 invention patents in Taiwan, and 3 PCT invention patents in the United States[62]. - Research and development expenses increased by 14.90% to CNY 314,727,488.18, driven by investments in new products and technologies[86]. - The company plans to deepen long-term cooperation with customers to cultivate new business and profit growth points[77]. - The company is committed to enhancing its competitive advantage in the large-size capacitive touchscreen market by developing new products and improving production management[144]. Operational Strategies - The company aims to increase production efficiency and product yield while reducing production costs to strengthen its position in the global market for large-sized capacitive touch screens[26]. - The company is committed to enhancing its supply chain management and recruiting production line workers to ensure stable production and delivery of products[26]. - The company plans to optimize production processes and improve yield rates and efficiency, with a focus on mass production of new products like ultra-hard AR coating and metal mesh invisible structure touchscreens[139]. - The company will ensure funding for capacity expansion and technological upgrades, with a focus on the Chongqing new display panel R&D center project funded through a private placement[142]. Risk Management - The company plans to closely monitor exchange rate trends and engage in foreign exchange derivatives trading to mitigate currency risks[27]. - The company faces significant exchange rate fluctuation risks due to its export trade primarily settled in USD, which may lead to increased foreign exchange gains and losses[150]. - To mitigate exchange rate risks, the company will closely monitor exchange rate trends and engage in foreign exchange derivative transactions as needed[150]. Subsidiaries and Investments - The company has a full subsidiary, Chongqing Laibao Technology Co., Ltd., and a controlling subsidiary, Zhejiang Laibao Technology Co., Ltd.[17]. - The company established a wholly-owned subsidiary, Chengdu Laibao Display Technology Co., Ltd., with a total investment of CNY 250 million for a TFT-LCM project[78]. - The subsidiary Lai Bao Technology (Hong Kong) Co., Ltd. reported a net profit of CNY 8,429,958.04, contributing significantly to the company's overall performance[121]. - Chongqing Lai Bao Technology Co., Ltd. generated a net profit of CNY 401,493,591.58, reflecting strong operational performance in manufacturing and sales[121]. Management and Governance - The company has established a robust internal control system to ensure compliance with regulatory requirements, enhancing governance standards[159]. - The company’s board includes independent directors, ensuring compliance with governance standards[173]. - The company has maintained a consistent leadership team since 2019, contributing to operational stability[173]. - The total number of shares held by senior management reflects a commitment to aligning interests with shareholders[173].