Huizhong(SZ:300371)2022-04-21 16:00Financial Performance - The company's operating revenue for 2021 was CNY 523,536,484.18, representing a 23.12% increase compared to CNY 425,210,340.96 in 2020[31]. - The net profit attributable to shareholders for 2021 was CNY 155,187,831.35, up 22.24% from CNY 126,950,878.87 in the previous year[31]. - The net profit after deducting non-recurring gains and losses was CNY 147,630,739.46, reflecting a 24.28% increase from CNY 118,791,184.47 in 2020[31]. - The total assets at the end of 2021 reached CNY 1,092,663,906.64, a 16.67% increase from CNY 936,570,166.76 at the end of 2020[31]. - The net assets attributable to shareholders increased by 15.11% to CNY 936,896,157.78 from CNY 813,884,515.61 in 2020[31]. - The basic earnings per share for 2021 was CNY 0.9276, which is a 21.57% increase compared to CNY 0.7630 in 2020[31]. - The diluted earnings per share rose by 22.49% to CNY 0.9276 from CNY 0.7573 in the previous year[31]. - The weighted average return on equity for 2021 was 17.79%, an increase from 16.64% in 2020[31]. - The net cash flow from operating activities decreased significantly by 85.73% to CNY 15,306,648.52 from CNY 107,274,515.91 in 2020[31]. - The company reported a total of 7,557,091.89 CNY in non-recurring gains and losses for 2021, with government subsidies contributing 4,541,323.81 CNY[37]. Market Strategy and Expansion - The company aims to increase market share and penetration in new markets by leveraging its brand, quality, and technology advantages in response to macroeconomic fluctuations[9]. - The company is actively exploring overseas markets to reduce the adverse effects of macroeconomic volatility on its operations[9]. - The company plans to gradually release new production capacity based on actual business needs and market conditions to mitigate sales risks[14]. - The company is focused on expanding its smart water and heating management systems through the integration of IoT technologies[25]. - The company plans to enhance its market presence through strategic initiatives aligned with government policies on energy efficiency and environmental sustainability[46]. - The introduction of the dual carbon policy provides significant market opportunities for the heating energy-saving industry, with a focus on enhancing technology R&D and service quality to meet market demands[47]. - The company is addressing risks from the COVID-19 pandemic by ensuring normal operations and providing remote services to clients[176]. - The company is leveraging opportunities in smart city initiatives to mitigate potential impacts from macroeconomic fluctuations[177]. Technological Innovation - The company has invested heavily in technology innovation, achieving full series product compatibility with NB-IoT and offering various wireless transmission methods[11]. - The company is committed to continuous product technology innovation and increasing research and development investments in IoT and big data applications[12]. - The company recognizes the potential risks associated with rapid technological advancements and aims to promote ultrasonic flow measurement technology in the water metering sector[11]. - The company has developed a full range of NB-IoT compatible products, addressing the risk of rapid technological advancements in wireless communication[179]. - The company is focused on developing new products and technologies, including IoT-enabled devices for remote monitoring and management[82]. - The company has completed the development of a SaaS platform for smart water and heating services, enhancing its service capabilities and efficiency[147]. - The company is working on a smart operation and maintenance management platform to reduce operational costs and improve service efficiency[148]. Product Development and Offerings - The company operates in the smart water and heating solutions sector, focusing on ultrasonic heat meters, water meters, and related management systems[41]. - The company provides a complete industrial chain service covering data collection, energy measurement, data analysis, solution design, and energy-saving services, with main products including ultrasonic heat meters, ultrasonic water meters, and ultrasonic flow meters[79]. - The company has launched smart water supply solutions that help identify leaks and improve water resource utilization, significantly enhancing management levels in the water industry[93]. - The company has developed new industrial water solutions, including explosion-proof flow meters and open channel flow meters[120]. - The company has established a service-oriented metering business model, providing comprehensive services including sales, installation, monitoring, and data analysis[131]. Financial Management and Risks - The company emphasizes the importance of maintaining tax incentives and government subsidies, which significantly impact profitability[16]. - The company faces market risks associated with expanded production capacity, particularly if market conditions change unfavorably after the new smart manufacturing workshop is operational[13]. - The company will enhance sales efforts to strengthen its core business and reduce the impact of potential changes in tax incentives or government subsidies[181]. - The company has established a comprehensive internal management structure, ensuring compliance with laws and regulations, and effective internal control processes[192]. - The company has maintained a stable cost of raw materials despite market pressures, ensuring effective cost management[129]. Research and Development - The company reported a research and development investment of 33.55 million yuan, an increase of 23.34% compared to the previous year[112]. - The number of R&D personnel increased to 109 in 2021, up 26.74% from 86 in 2020, with a higher proportion of master's degree holders at 27.59%[149]. - R&D investment amounted to ¥33,554,376.81 in 2021, representing 6.41% of operating revenue, slightly up from 6.40% in 2020[149]. - The company has increased its patent authorizations by 15, including 10 utility model patents and 5 design patents[112]. Customer Engagement and Service - The company has established 11 regional marketing service centers to provide comprehensive lifecycle services from pre-sales to after-sales[108]. - The company aims to enhance customer satisfaction and service quality through the establishment of a customer service center[109]. - The company has adopted a dual sales model combining direct sales and agency sales to cater to diverse customer needs across different industries and regions[104][105].