Huizhong(SZ:300371)2021-07-29 16:00Financial Performance - The company's operating revenue for the reporting period was ¥167,495,174.32, representing a 10.28% increase compared to ¥151,879,533.08 in the same period last year[30]. - The net profit attributable to shareholders was ¥46,237,403.55, up 15.26% from ¥40,114,924.37 year-on-year[30]. - The net profit after deducting non-recurring gains and losses was ¥41,920,895.22, reflecting a 13.52% increase from ¥36,927,123.94 in the previous year[30]. - The basic earnings per share increased to ¥0.2773, a rise of 13.97% compared to ¥0.2433 in the same period last year[30]. - The total assets at the end of the reporting period were ¥958,251,712.68, which is a 2.31% increase from ¥936,570,166.76 at the end of the previous year[30]. - The net assets attributable to shareholders increased to ¥831,181,701.40, up 2.13% from ¥813,884,515.61 at the end of the previous year[30]. - The company’s international business saw significant growth, with operating revenue reaching 6.62 million yuan, a year-on-year increase of 51.88%[87]. - The company achieved a net increase in cash and cash equivalents of -¥50,447,846.76, an improvement of 24.60% from -¥66,904,389.60 in the same period last year[97]. - The net cash flow from operating activities decreased dramatically by 2,603.59% to -¥32,864,203.66, compared to a positive cash flow of ¥1,312,684.38 in the previous year[97]. Market and Product Development - The company has invested heavily in the development of wireless communication technologies and has achieved full series product compatibility with NB-IoT, including multiple wireless transmission methods[10]. - The demand for intelligent metering instruments is increasing due to national initiatives in new infrastructure and smart cities[10]. - The company is focused on expanding its market presence in various industries, including industrial, water conservancy, petrochemical, thermal power, and steel[39]. - The company aims for smart water meter sales to account for 40% of total water meter sales during the 13th Five-Year Plan period, driven by national policies promoting smart metering[61]. - The company is actively involved in the ongoing promotion of policies such as "one household, one meter" and tiered water pricing to improve water management efficiency[61]. - The company has developed ultrasonic water meters capable of providing multiple data points, including cumulative flow, instantaneous flow, water temperature, and pressure[62]. - The company has successfully integrated NB-IoT technology with ultrasonic flow measurement products, expanding its range of wireless communication technologies[91]. Research and Development - The company invested CNY 15.30 million in R&D during the reporting period, an increase of 83.08% compared to the previous year[73]. - The company holds a total of 94 valid patents, including 6 invention patents, 58 utility model patents, and 30 design patents[74]. - The company has introduced 11 new patent authorizations, including 7 utility model patents and 4 design patents, during the reporting period[75]. - The company has also registered 19 new software copyrights, enhancing its technological capabilities[76]. - The company emphasizes continuous innovation in product technology and has increased R&D investment in IoT and big data applications[124]. Operational Risks and Challenges - The company reported a significant impact on its 2021 performance due to the ongoing COVID-19 pandemic, which may affect various industries globally[7]. - The company faces risks related to rapid technological advancements in communication technologies that may outpace its product development[10]. - The company is at risk of losing tax benefits and government subsidies, which currently play a significant role in its profitability[126]. - The company will gradually release new production capacity based on market conditions to avoid sales risks associated with expanded capacity[125]. Corporate Governance and Shareholder Relations - The company has established a stable dividend policy to protect shareholder rights, ensuring equal treatment for all shareholders and enhancing investor relations management[148]. - The company has implemented employee stock ownership plans, granting a total of 2,682,725 restricted stock units to 119 eligible employees, enhancing talent retention and motivation[85]. - Major shareholders are required to announce any share reductions three trading days in advance[154]. - The company committed to repurchase shares if the stock price remains below the latest audited net asset value for 20 consecutive trading days, with a repurchase price not exceeding 120% of the latest audited net asset value[155]. - The company has established measures to prevent any potential competition from major shareholders and their family members for a period of five years[154]. Social Responsibility and Community Engagement - The company actively participates in social welfare and rural revitalization initiatives, including donations to children's welfare institutions[150]. - The company emphasizes the importance of party building and social responsibility, integrating these efforts into its development strategy to promote healthy growth[147]. - The company provides various welfare benefits to employees, including health check-ups and cultural activities, fostering a supportive work environment[149].