DOUBLE ARROW(SZ:002381)2022-04-22 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,916,218,041.84, an increase of 5.80% compared to CNY 1,811,149,393.46 in 2020[24]. - The net profit attributable to shareholders of the listed company decreased by 52.82% to CNY 148,828,753.63 from CNY 315,417,604.33 in 2020[24]. - Basic earnings per share fell by 53.25% to CNY 0.36 from CNY 0.77 in 2020[24]. - The company's operating revenue for 2021 reached 1.916 billion yuan, a year-on-year growth of 5.80%, while operating profit decreased by 52.00% to 182.78 million yuan[53]. - The total revenue for Zhejiang Double Arrow Rubber Co., Ltd. in 2021 was 47,620.1 million CNY, representing an increase of 11.50% compared to the previous year[89]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which was CNY 115,377,963.04, down 61.39% from CNY 298,808,478.09 in 2020[24]. - The revenue from the hose and tape segment was ¥1,870,343,674.57, accounting for 97.61% of total revenue, with a year-on-year growth of 5.22%[60]. - The gross margin improved to 30% in 2021, up from 28% in 2020, due to cost optimization strategies[126]. Production and Capacity - The company has successfully implemented a "14th Five-Year" plan, with production capacity expected to double, reaching approximately 150 million square meters annually once all planned capacities are operational[4]. - The company has achieved a production capacity of 75 million square meters per year for conveyor belts, with a utilization rate of 96.73%[46]. - In 2021, the company produced 65.29 million square meters of various conveyor belts, an increase of 14.08% year-on-year, and sold 63.27 million square meters, up 8.88% year-on-year[53]. - The company plans to increase its conveyor belt production capacity to over 150 million square meters by the end of the 14th Five-Year Plan[96]. Market Position and Strategy - The company’s domestic market share is currently around 13%, with expectations to double this during the "14th Five-Year" period due to increased production capacity and market consolidation[5]. - The company focuses on product innovation and international expansion, aiming to enhance its market share and capacity in response to conveyor belt market demands[37]. - The company has established itself as a leading enterprise in the rubber conveyor belt sector, recognized as one of the top ten conveyor belt companies in China for several consecutive years[37]. - The company aims to enhance its market share by promoting new products and expanding sales channels, particularly in the long-distance conveyor belt projects[97]. - The company is actively developing smart material handling systems, integrating industrial internet technologies to enhance operational efficiency and support carbon neutrality goals[37]. Research and Development - The company holds 112 patents in rubber conveyor belt technology, indicating strong R&D capabilities[46]. - Research and development expenses in 2021 amounted to ¥58,867,402.93, an increase of 9.07% compared to ¥53,973,746.03 in 2020[74]. - The number of R&D personnel increased by 70.59% from 68 in 2020 to 116 in 2021, with R&D personnel accounting for 6.31% of the total workforce[74]. - The company is focusing on innovation and R&D to develop new products tailored to market demands, including specialized conveyor belts[96]. - The company plans to invest 700 million yuan to establish a second production base for conveyor belts in Zhejiang, focusing on smart manufacturing and project construction[54]. Challenges and Risks - The company faced challenges due to global pandemic impacts, inflation trends, and rising raw material prices, affecting its operations[34]. - The company is exposed to raw material price volatility, particularly for rubber and other key inputs, which could affect profitability if prices rise significantly[102]. - The company acknowledges macroeconomic instability as a risk, with potential impacts on demand for its products in coal, power, and steel industries, which are closely tied to economic fluctuations[101]. - The company faces risks from the ongoing COVID-19 pandemic, which may impact future export business due to global uncertainties[101]. Corporate Governance - The company maintained a strong governance structure, ensuring compliance with relevant laws and regulations, and received no administrative penalties during the reporting period[110]. - The board of directors consists of nine members, including three independent directors, meeting the legal requirements[111]. - The company has established an internal audit system to enhance operational control and ensure effective oversight of financial conditions[111]. - The company respects and protects the rights of all stakeholders, promoting balanced interests among shareholders, employees, and society[111]. Environmental and Social Responsibility - The company emphasizes a low-carbon approach in its design, manufacturing, and services to align with national policies and market trends[96]. - The company has implemented advanced energy management practices, including monthly energy consumption analysis, to support energy-saving initiatives[165]. - The company actively engages in social responsibility initiatives, including donations for education and poverty alleviation, contributing to community welfare[171]. - The company has set up a dedicated energy management team and established energy measurement management systems to enhance efficiency[165]. Employee Management - The total number of employees at the end of the reporting period was 1,836, including 565 at the parent company and 1,271 at major subsidiaries[145]. - The company has established a fair and competitive compensation management system, with performance-based salaries linked to KPI indicators[147]. - The training program for employees includes various aspects such as professional skills and production safety management, enhancing overall work efficiency[148]. - The company has not engaged in any labor outsourcing during the reporting period[149]. Future Outlook - Future outlook remains positive, with plans for continued growth and expansion in both domestic and international markets[121]. - In 2022, the company plans to increase R&D efforts to develop high-performance, environmentally friendly, and energy-saving products, aiming to improve market share and sustain stable growth[99]. - The company aims for a revenue guidance of 1.5 billion RMB for 2022, reflecting a growth target of 25%[126].