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 reported a significant decline in operating profit by 59.19% to ¥67,176,628.87, impacted by rising raw material costs and pandemic-related disruptions [60]. - The company reported a net profit margin of 12% for 2021, up from 10% in 2020 [149]. Revenue and Growth - 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]. - Total revenue for 2021 reached ¥1,592,546,854.95, an increase of 17.17% compared to ¥1,359,149,249.46 in 2020 [69]. - 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% [69]. - 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 [69]. - The company provided a revenue guidance for 2022, projecting a growth rate of 10% to 12% [149]. Costs and Expenses - The total operating costs increased by 25.49% to ¥1,235,371,568.97, compared to ¥984,416,749.19 in 2020 [77]. - Financial expenses surged by 91.00% to ¥129,015,946.52, primarily due to increased borrowing and financing costs [85]. - Sales expenses increased by 28.83% year-on-year to ¥37,447,796.87 due to higher sales and reduced pandemic impact [84]. - Management expenses rose by 17.16% to ¥66,796,235.57, reflecting increased labor costs [85]. 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 plans to increase investment in research and development of cutting-edge information technology to improve its competitive edge in the financial services market [37]. - R&D expenses increased by 4.65% to ¥29,641,602.02, indicating ongoing investment in innovation [85]. - 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 [89]. Strategic Initiatives - 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 government self-service terminals [42]. - The company is actively developing a community smart retail system to enhance customer experience and operational efficiency [86]. Governance and Management - The company held 1 annual general meeting and 7 extraordinary general meetings during the reporting period, with the highest investor participation rate at 41.03% [144]. - The board of directors convened 9 meetings, consisting 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 [138]. - Independent directors provided numerous opinions and suggestions to improve the company's governance structure and internal control systems [140]. Asset Management - The company has a goodwill net value of 31,658.91 million yuan, with risks associated with potential impairment if acquisitions are not effectively integrated [126]. - The company is focused on optimizing its asset and business structure through strategic investments [115]. - The company reported a significant increase in accounts payable, which reached ¥523,364,333.6, accounting for 14.28% of total assets, up from 10.20% [102]. - The company’s total liabilities decreased by 6.04% in long-term borrowings, now at ¥64,822,500, which is 1.77% of total assets [101]. Dividend Distribution - The company plans to distribute a cash dividend of 0.10 yuan per 10 shares (including tax) based on a total of 528,943,475 shares [9]. - The total cash dividend, including other methods such as share repurchase, amounted to 42,621,962.75 CNY, representing 100% of the distributable profit [200]. - The company has a policy that mandates a minimum of 20% cash dividend distribution when significant capital expenditures are planned [200]. - The total distributable profit for the period was 184,793,991.01 CNY [200]. Market Position and Competition - The company has experienced a decline in the gross profit margin of some products due to increased market competition and a decrease in demand for cash-related equipment [8]. - 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 is exploring new business opportunities in the education technology sector, as indicated by the involvement of its executives in related companies [159]. - The company is likely to pursue further strategic partnerships and investments to bolster its growth trajectory in the coming years [162].