ZHEJIANG SHIBAO(SZ:002703)2022-03-27 16:00Profit Distribution and Financial Performance - The company reported a profit distribution plan of no cash dividends, no bonus shares, and no capital reserve conversion into shares[6]. - The company does not plan to distribute cash dividends for the reporting period, reflecting a focus on reinvestment[6]. - The board decided not to distribute cash dividends for the fiscal year 2021, opting instead to retain profits for operational needs and to offset previous losses[143]. - The company plans to roll over the undistributed profits from 2021 to meet future operational funding and profit distribution needs[142]. - The net profit attributable to shareholders of the listed company decreased by 16.38% to ¥34,156,323.88 in 2021 from ¥40,845,971.97 in 2020[31]. - The company's total revenue for the reporting period was RMB 1,177,915,845.96, representing a year-on-year increase of 6.88%[47]. - The gross profit from main business activities was RMB 216,657,158.84, a decrease of RMB 28,106,445.37 compared to the previous year, resulting in a gross profit margin of 19.49%[47]. - The net profit attributable to shareholders was RMB 34,156,323.88, reflecting a year-on-year decline of 16.38%[53]. - The company reported a significant loss of approximately 22.8 million yuan for Jilin Shibao, indicating challenges in that subsidiary[81]. Risks and Challenges - The company faces risks related to industry fluctuations, particularly due to the dependence on the automotive industry's performance, which is influenced by macroeconomic cycles and national policies[8]. - The company is exposed to risks from raw material price fluctuations, which significantly impact production costs and profit margins[13]. - The company has a high proportion of accounts receivable, which poses a risk of bad debts if collection efforts are unsuccessful or if customers face financial difficulties[14]. - The company acknowledges the potential impact of international political and economic changes on its overseas market expansion efforts[15]. - The company has experienced a notable increase in accounts receivable, which may further rise with the expansion of its business scale[14]. Market and Product Development - The company has achieved qualification as a global supplier for Daimler Group's commercial vehicle chassis components and steering systems, indicating successful overseas market expansion[15]. - The company is committed to expanding its overseas market presence while solidifying its domestic market base[15]. - The company emphasizes the importance of continuous technological innovation to meet the evolving demands of automotive manufacturers for safety, intelligence, and energy efficiency[10]. - The company aims to enhance the safety and comfort of automotive driving, focusing on intelligent driving solutions and products for leading global automotive groups[86]. - The company plans to accelerate the transformation and upgrading of products and technologies, particularly in the fields of intelligent driving and autonomous driving steering products[87]. Research and Development - Research and development expenses amounted to RMB 80,484,534.57, up 21.93% year-on-year, accounting for 6.83% of total revenue[48]. - The company's R&D investment amounted to ¥80,484,534.57, a 21.93% increase from ¥66,006,925.33 in 2020, representing 6.83% of operating revenue[65]. - The number of R&D personnel increased by 13.82% to 346 in 2021, with a proportion of 21.15% of total employees[65]. - The company has launched an electric power steering system that operates independently of the engine, significantly reducing fuel consumption and environmental pollution[162]. - The company is a leading developer of hydraulic and electric power steering systems in China, with ongoing research in intelligent steering technologies for smart and autonomous vehicles[41]. Governance and Management - The company maintains a governance structure that meets the regulatory requirements of both mainland China and Hong Kong, ensuring transparency in financial reporting and risk control[42]. - The management team includes Zhang Baoyi as general manager, Tang Haohan as vice general manager, and Zhang Lanjun as the financial officer, all serving until June 30, 2024[112]. - The company has a diverse board of directors with members holding various significant positions and experiences in the industry[99][100][103]. - The total number of shares held by the management team remains stable, indicating confidence in the company's future performance[98]. - The company has not reported any significant changes in shareholding among the board members during the period[98]. Employee and Talent Management - The total number of employees at the end of the reporting period was 1,636, with 1,449 from major subsidiaries and 187 from the parent company[135]. - The professional structure included 1,050 production staff, 421 technical staff, 57 sales staff, 31 financial staff, and 77 administrative staff[135]. - The company established a flexible talent introduction and incentive policy to attract external talent[135]. - The company emphasizes employee training and development to ensure personnel reserves meet business needs[137]. Internal Control and Compliance - The internal audit department conducted quarterly reviews of internal controls, covering financial, operational, compliance, and risk management aspects[150]. - The company maintained effective internal control over financial reporting as of December 31, 2021, according to the external auditor's assessment[152]. - No significant internal control deficiencies were identified during the reporting period[153]. - The company emphasizes compliance with relevant laws and regulations regarding profit distribution policies[142]. - The board's decision-making process regarding profit distribution is compliant and transparent, ensuring protection of minority shareholders' rights[141]. Financial Position and Investments - The total assets at the end of 2021 were ¥2,075,458,857.18, reflecting a 5.02% increase from the end of 2020[31]. - The net assets attributable to shareholders of the listed company increased by 2.54% to ¥1,376,837,284.22 at the end of 2021[31]. - The total loans and borrowings increased to ¥171,780,000.00, up by ¥64,980,000.00 from the previous year[70]. - The company has invested RMB 88 million in bank wealth management products, with an outstanding balance of RMB 62.7 million[191]. - The company has no significant litigation or arbitration matters during the reporting period[180].