DALIAN INSULATOR(SZ:002606)2022-04-21 16:00Financial Performance - The company's operating revenue for 2021 was ¥934,066,843.48, representing a 7.41% increase compared to ¥869,660,280.91 in 2020[6]. - The net profit attributable to shareholders for 2021 was ¥156,672,192.81, a significant increase of 47.81% from ¥105,996,264.59 in 2020[6]. - The net profit after deducting non-recurring gains and losses was ¥143,439,072.08, up 49.73% from ¥95,796,915.77 in 2020[6]. - Basic and diluted earnings per share for 2021 were both ¥0.36, reflecting a 38.46% increase from ¥0.26 in 2020[6]. - The total assets at the end of 2021 were ¥1,720,840,612.36, a 10.64% increase from ¥1,555,299,168.95 at the end of 2020[21]. - The net assets attributable to shareholders increased by 24.38% to ¥1,348,304,071.45 at the end of 2021, compared to ¥1,083,992,825.72 at the end of 2020[21]. - The company achieved operating revenue of CNY 934.07 million, a year-on-year increase of 7.41%[53]. - Net profit attributable to shareholders reached CNY 156.67 million, up 47.81% compared to the previous year[47]. - The company reported a total of RMB 888,310,757.86 in operating revenue from its subsidiaries[100]. - The company reported a revenue of 600 million RMB from the production and sales of insulators, with a net profit of approximately 28.5 million RMB[101]. Cash Flow and Investments - The company's cash flow from operating activities showed a net outflow of ¥36,409,237.55, a decline of 161.54% compared to a net inflow of ¥59,159,295.63 in 2020[6]. - The net cash flow from operating activities decreased by 161.54% to -¥36,409,237.55 in 2021, primarily due to increased cash payments for goods and services[69]. - The net cash flow from investment activities dropped by 616.17% to -¥79,958,899.70, attributed to increased cash payments for construction and external investments[71]. - The net cash flow from financing activities increased by 366.11% to ¥181,639,874.48, mainly due to increased funds raised from a private placement and repayment of bank loans[71]. - The total investment amount for the reporting period was ¥118,530,000.00, a dramatic increase of 4037.67% compared to the previous year[83]. - The company has invested CNY 112.93 million in the establishment of Jiangxi Da Ci, with a 54.36% stake, also in partnership with the local government[86]. - The company reported a total investment of CNY 711.87 million in various projects, with ongoing investments in the porcelain insulator sector[86]. Shareholder Information - Dalian Insulator Group reported a cash dividend of RMB 0.36 per 10 shares (including tax) for all shareholders, with no bonus shares issued[5]. - The company reported a total shareholding of 29,608,100 shares at the end of the reporting period, with an increase of 27,538,200 shares due to private placement[144]. - The total distributable profit for the parent company was RMB 347,065,104.24, after accounting for legal reserves and dividends[183]. Governance and Management - The company’s financial report is guaranteed to be true, accurate, and complete by the board of directors and management, ensuring accountability for any misrepresentation[4]. - The company’s board of directors includes all members present for the meeting to review the annual report, indicating strong governance practices[5]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal and regulatory requirements[129]. - The supervisory board is composed of 3 members, including one employee representative, meeting legal standards[130]. - The company has established an independent financial department with a complete accounting system, ensuring financial decisions are made independently[141]. - The company has a robust governance structure, with specialized committees under the board of directors to support decision-making[129]. - The company is committed to improving governance and compliance with regulatory standards to enhance operational transparency and efficiency[127]. - The company has established a remuneration and performance assessment committee to oversee the compensation of senior management[160]. - The company has implemented a performance-based salary system, combining basic and performance wages to incentivize employees[177]. Market Position and Strategy - The company operates in the electrical machinery and equipment manufacturing industry, focusing on the production of insulators, which are critical for power transmission[29]. - The company has established stable business partnerships with nearly 100 countries, becoming the largest manufacturer of porcelain insulators in China[36]. - The company is positioned to benefit from the ongoing high demand in the power grid industry, particularly in the high-end insulator segment driven by ultra-high voltage construction[33]. - The company aims to enhance its production technology and expand its scale to mitigate competition risks and maintain market share[116]. - The company plans to enhance its market position by focusing on technological innovation and equipment upgrades, aiming to reduce costs and improve efficiency[104]. - The company aims to expand its business into new energy and smart grid sectors while maintaining its core insulator business[106]. - The company will continue to improve its sales strategy, focusing on key projects from State Grid and Southern Grid, and expanding into emerging markets like Thailand and Saudi Arabia[107]. Research and Development - The company has a strong research and development capability, continuously increasing investment in R&D and talent development[44]. - R&D investment has been increased, resulting in 12 new utility model patents and the development of new products[50]. - Research and development expenses increased by 22.29% to CNY 56,232,845.75, driven by higher salaries and outsourced R&D[65]. - The number of R&D personnel rose by 14.38% to 167, with the proportion of R&D staff increasing to 13.72% of the total workforce[66]. - The company completed significant R&D projects aimed at improving product strength and performance, including studies on different firing temperatures and glaze effects[66]. Risks and Challenges - The company is facing potential risks related to the ongoing pandemic[110]. - The company faced uncertainties in its operating environment due to the COVID-19 pandemic, impacting material turnover and supply chain efficiency[111]. - Fluctuations in raw material prices, including steel and chemical materials, pose a significant risk to the company's cost structure[117]. - High customer concentration leads to weaker bargaining power and substantial accounts receivable, which could impact cash flow if sales do not convert to cash promptly[118]. - Quality issues in insulation products could result in severe operational impacts, including returns and potential loss of bidding qualifications with major clients[119]. - The company is exposed to foreign exchange risks due to its international sales, primarily settled in USD[120]. Environmental Compliance - The company has implemented measures to ensure compliance with environmental protection standards, with no significant environmental violations reported[200]. - The company reported a nitrogen oxide emission concentration of 191 mg/m3, which is below the regulatory limit of 500 mg/m3[200]. - The company’s benzene emission concentration was recorded at 0.274 mg/m3, significantly below the standard of 40 mg/m3[200]. - The company has a total of 8 organized emission outlets for industrial furnace flue gas, with a maximum emission concentration of 21.5 mg/m3 for particulate matter[200].