HSSM(SZ:002290)2023-07-17 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,268,832,965.66, representing a 24.50% increase compared to CNY 1,822,307,287.44 in 2020[19] - The net profit attributable to shareholders for 2021 was CNY 81,975,951.20, a significant increase of 48.83% from CNY 55,080,118.89 in 2020[19] - The net cash flow from operating activities reached CNY 110,866,912.67, up by 30.42% from CNY 85,004,403.61 in the previous year[19] - The basic earnings per share for 2021 was CNY 0.33, reflecting a 43.48% increase from CNY 0.23 in 2020[19] - The net profit after deducting non-recurring gains and losses for 2021 was CNY 74,568,732.88, a 34.49% increase from CNY 55,446,389.81 in 2020[19] - Total revenue for the year was approximately CNY 2.27 billion, with a quarterly breakdown of CNY 516.45 million in Q1, CNY 609.77 million in Q2, CNY 519.52 million in Q3, and CNY 623.09 million in Q4[23] - Net profit attributable to shareholders for the year was CNY 82.94 million, with quarterly figures of CNY 34.77 million in Q1, CNY 30.77 million in Q2, CNY 14.60 million in Q3, and CNY 1.83 million in Q4[23] Assets and Liabilities - The total assets at the end of 2021 amounted to CNY 1,634,854,623.94, which is a 12.89% increase from CNY 1,448,142,513.88 at the end of 2020[20] - The net assets attributable to shareholders increased to CNY 527,996,006.87, a rise of 19.68% compared to CNY 441,173,386.92 at the end of 2020[20] - The company's long-term borrowings amounted to ¥415,000,000.00, representing 25.38% of total liabilities[63] - The total cash and cash equivalents increased by 171.59%, reaching ¥10,475,938.18, primarily due to the rise in net cash flow from operating activities[62] Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.00 per 10 shares, with no bonus shares issued[4] - The company did not propose any cash dividend distribution plan during the reporting period, with total cash dividends amounting to 0 yuan[118] - The company plans to maintain a cash dividend ratio of no less than 40% of the annual profit distribution for the years 2018-2020[148] - The company will distribute at least 10% of the distributable profit in cash if it achieves profitability and has positive cumulative distributable profits[148] Research and Development - Research and development expenses increased by 24.54% year-on-year, totaling ¥74,793,459.17, which is 3.30% of operating revenue[56] - The number of R&D personnel rose by 41.22% to 185, with R&D personnel now constituting 23.57% of the total workforce[57] - The company plans to optimize its product structure and enhance core competitiveness through increased R&D investment in 2022[77] Market Position and Strategy - The company is positioned as one of the largest manufacturers of decorative composite materials for home appliances in China, with a focus on high-quality production and strong customer relationships[31] - The company has established long-term stable supply relationships with major clients including LG, Samsung, and Panasonic, enhancing customer loyalty and brand recognition[31] - The company aims to leverage its competitive advantages and service capabilities to ensure product chain stability and foster mutual growth with clients[32] - The company plans to enhance its product series and optimize design solutions to increase product value and strengthen its market position[32] Risks and Challenges - The company faces potential risks in 2022, including industry competition, raw material price fluctuations, and exchange rate risks[4] - The company is exposed to exchange rate fluctuations, particularly as foreign sales are primarily settled in USD, potentially affecting net profit[80] - The company faces risks from intensified industry competition and fluctuations in raw material prices, which could impact production costs[79] Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability in its operations[84] - The board of directors consists of 9 members, including 3 independent directors, representing one-third of the total board[85] - The company maintains independence from its controlling shareholder in terms of business operations, personnel, assets, and finances, ensuring a complete and independent business system[89] - The company has implemented an internal audit system to effectively control daily operations and major matters[87] - The company has established a dedicated investor relations management system to enhance communication with investors[88] Environmental Compliance - The company operates a wastewater treatment system with a daily processing capacity of 100 tons, which has been functioning normally since its establishment[136] - The company has developed an emergency response plan for environmental incidents, which has been registered with the local environmental protection bureau[138] - The company actively participates in special governance actions as per the China Securities Regulatory Commission's announcements[132] - The company has not reported any significant environmental pollution incidents or violations[135] Shareholder Information - The total number of shares increased from 242,712,330 to 247,812,330 due to the issuance of 5.1 million restricted stock units at a price of CNY 3.91 per share[193] - The total number of shareholders increased from 14,367 to 15,092 during the reporting period[195] - The largest shareholder, Shenzhen Zhongke Chuang Asset Management Co., Ltd., holds 31.34% of the shares, with 77,667,917 shares frozen[195] - The actual controller Zhang Wei holds 77.6679 million shares, which are currently under judicial freeze[200] Legal Matters - The actual controller Zhang Wei was sentenced to life imprisonment and fined a total of RMB 12.17 million for multiple crimes, including leading a criminal organization and fraud[160] - The company reported a judgment of 35,000 million yuan in a debt transfer contract dispute with Qihua Meida Commercial Factoring (Shenzhen) Co., which is currently in court[156] - The company is involved in a case where it is required to pay 635.22 million yuan plus overdue interest in a housing lease dispute with Shenzhen Donghai Group Co., which has been settled[158]