Huijin(SZ:300368)2022-04-21 16:00Financial Performance - The net profit attributable to shareholders decreased by 59.85% compared to the same period last year, primarily due to an increase in financing costs and a significant rise in procurement costs caused by the pandemic and raw material price hikes [5]. - The net profit attributable to shareholders decreased by 59.85% to approximately ¥25.91 million in 2021 from ¥64.53 million in 2020 [27]. - The basic and diluted earnings per share fell by 59.60% to ¥0.0490 in 2021 from ¥0.1213 in 2020 [26]. - The company’s operational performance has been adversely affected by the pandemic and rising costs, leading to a cautious outlook for future business expansion [5]. - The company reported a net profit of approximately ¥1.30 million in Q1 2021, which increased to ¥10.58 million in Q2, but dropped to ¥5.71 million in Q3, and then rose to ¥8.04 million in Q4 [29]. - The company reported a net loss of 2,296,300 for the current period, reflecting challenges in financial performance [107]. - The company reported a total revenue of 10,637.4 million yuan for the year 2021, with a net profit of 6,512.96 million yuan, indicating a strong financial performance [116]. - The company reported a total revenue of 509.08 million for the year 2021 [177]. Revenue and Costs - The company's operating revenue for 2021 was approximately ¥1.59 billion, representing a 17.17% increase compared to ¥1.36 billion in 2020 [27]. - The total operating cost of the company was ¥1,235,371,568.97, which increased by 25.49% compared to ¥984,416,749.19 in 2020 [76]. - The revenue from the information technology data center surged by 103.82% to ¥606,413,261.60, compared to ¥297,518,601.55 in 2020 [72]. - The supply chain business revenue decreased by 25.62% to ¥333,765,438.63, down from ¥448,732,343.07 in the previous year [70]. - The information technology comprehensive solution business generated ¥1,014,501,500.86, accounting for 63.70% of total revenue, with a year-on-year growth of 48.30% [70]. - The gross profit margin for the information technology comprehensive solution business was 13.10%, a decrease of 10.45% from the previous year [72]. Assets and Liabilities - The total assets at the end of 2021 were approximately ¥3.66 billion, a 3.59% increase from ¥3.54 billion at the end of 2020 [26]. - The total liabilities at the end of 2021 were not disclosed, but the net assets attributable to shareholders decreased by 1.07% to approximately ¥904.69 million from ¥914.49 million in 2020 [26]. - The company has a net asset value of 1,603,747,480 yuan and generated an operating income of 333,942,525 yuan from its subsidiary in supply chain management [118]. - Cash and cash equivalents decreased from CNY 303,558,522.65 (8.57%) at the beginning of 2021 to CNY 269,048,372.0 (7.34%) at the end of 2021, a decrease of 1.23% [99]. - Accounts receivable increased from CNY 1,228,743,492.0 (34.71%) to CNY 1,688,997,378.0 (46.09%), an increase of 11.38% due to increased sales and delayed collections [100]. - Inventory decreased from CNY 415,319,798.72 (11.73%) to CNY 251,646,484.4 (6.87%), a decrease of 4.86% primarily due to the recognition of contract performance costs [100]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 0.10 yuan per 10 shares (including tax) based on a base of 528,943,475 shares, with no bonus shares issued [9]. - The total cash dividend, including other methods such as share repurchase, amounted to 42,621,962.75 CNY, representing 100% of the total profit distribution [200]. - The distributable profit for the period was 184,793,991.01 CNY, indicating a strong capacity for dividend distribution [200]. - The cash dividend distribution reflects the company's commitment to shareholder returns despite ongoing investments [200]. Research and Development - The company has achieved significant R&D results, with many protected by patents and software copyrights, but risks exist regarding technology leakage and loss of core technical personnel [9]. - The company holds 326 patents, including 65 invention patents, 214 utility model patents, and 47 design patents, indicating a strong focus on R&D and innovation [48]. - The company is committed to increasing R&D investment to enhance product lines and improve market competitiveness in response to declining margins in traditional banking equipment [129]. - Research and development (R&D) expenditure amounted to CNY 29.64 million, representing 1.86% of total operating revenue, a decrease from 2.08% in the previous year [89]. - The number of R&D personnel decreased by 28.70% to 77, with a notable decline in the proportion of personnel holding master's degrees, down 14.29% [88]. Business Expansion and Strategy - The company is expanding into new business areas such as smart manufacturing, data centers, and supply chain management, but faces uncertainty regarding market acceptance and industry understanding [8]. - The company is focusing on enhancing its smart banking solutions and expanding into non-banking sectors, including retail and public services, to diversify its product offerings [37]. - The company aims to expand its non-banking business sectors, including new retail self-service terminals and smart document management systems, to diversify its market presence [42]. - The company plans to focus on digital infrastructure and smart city solutions as key business areas for growth in 2022, leveraging opportunities in domestic digitalization [121]. - The company is actively seeking opportunities for mergers and acquisitions to bolster its market position [149]. Governance and Management - The company held 1 annual general meeting and 7 extraordinary general meetings during the reporting period, ensuring shareholder rights were upheld with a participation rate of 41.03% at the first extraordinary meeting [144]. - The board of directors convened 9 meetings, with a composition of 9 members including 3 independent directors, complying with relevant laws and regulations [136]. - The company maintains independence from its controlling shareholder, with no interference in decision-making or operational activities, and has signed a commitment to avoid competition [138]. - The company has a diverse management team with extensive backgrounds in finance, investment, and technology, enhancing its strategic capabilities [156]. - The company is committed to improving its corporate governance by appointing independent directors with significant industry experience [161]. Risks and Challenges - The company is facing risks related to the integration of acquired businesses and the realization of expected synergies, which could adversely affect operational performance [6]. - The company faces risks related to technology leakage and the loss of key technical personnel, which could adversely affect its operations [130]. - The company has experienced a decline in the gross margin of some products due to increased market competition and a decrease in demand for cash-related equipment [8]. Operational Efficiency - The company emphasizes the importance of enhancing its organizational structure and talent development to support rapid business growth [39]. - The company is focused on optimizing its group management capabilities to enhance competitiveness and operational efficiency [62]. - The company is strategically positioned to leverage its management expertise for future expansion and operational efficiency [160].