HENGTONG TECH.(SZ:300374)2022-03-24 16:00Financial Performance - The company reported a net loss attributable to shareholders of 361.03 million yuan in 2021, a significant decline of 2,660.54% compared to a profit of 14.10 million yuan in 2020[6]. - Operating revenue decreased by 57.40% to 422.40 million yuan in 2021, down from 991.43 million yuan in 2020[21]. - The net cash flow from operating activities was -79.26 million yuan, a decline of 1,022.88% compared to -7.06 million yuan in 2020[21]. - Basic and diluted earnings per share were both -1.47 yuan, a decrease of 2,550.00% from 0.06 yuan in 2020[21]. - Total assets at the end of 2021 were 3.12 billion yuan, a decrease of 3.37% from 3.23 billion yuan at the end of 2020[21]. - The net assets attributable to shareholders decreased by 23.68% to 1.17 billion yuan from 1.54 billion yuan in 2020[21]. - The company reported a net profit of 11,252,162.13 yuan for 2021, an increase from 10,688,260.04 yuan in 2020, representing a growth of approximately 5.3%[28]. - The company received government subsidies amounting to 11,826,046.02 yuan in 2021, slightly down from 13,448,173.03 yuan in 2020[27]. - The company reported a loss of 1,268,009.77 yuan from the disposal of non-current assets in 2021, contrasting with a gain of 381,329.61 yuan in 2020[27]. - The company reported a significant increase in contract assets, rising from 11.02% to 14.60% of total assets, attributed to completed but unsettled payments[78]. Strategic Initiatives - The company is currently undergoing a strategic transformation from extensive to high-quality operations, which has temporarily reduced order volumes[6]. - The company aims to enhance its industry position and operational performance to achieve high-quality development in the future[6]. - The company aims to increase the proportion of prefabricated buildings in new constructions to over 25% by 2022, as part of the national policy to promote green building practices[33]. - The company is recognized as a first batch prefabricated building industrial base by the Ministry of Housing and Urban-Rural Development, focusing on becoming a globally competitive enterprise in the prefabricated building sector[34]. - The company plans to integrate the entire prefabricated building industry chain, enhancing its capabilities in technology consulting, product R&D, and intelligent manufacturing[34]. - The company is committed to advancing smart construction and digitalization in the building industry, aligning with national development goals for the "14th Five-Year Plan"[33]. - The company aims to improve production efficiency and automation through industrialized construction methods, significantly enhancing project delivery speed[40]. - The company is actively adjusting its business strategies to seek new growth opportunities in the prefabricated building sector[51]. - The company plans to enhance strategic collaboration and innovation in prefabricated building technology, aiming to become a leading intelligent building technology group[93]. - The company intends to actively engage in EPC (Engineering, Procurement, and Construction) business to better coordinate design, manufacturing, and construction processes[94]. Research and Development - The company emphasizes research and development in prefabricated building technology, with a dedicated design and R&D center established[48]. - The company has achieved a performance improvement of over 30% in physical and mechanical properties of new fiber cement boards through the exploration of new broadleaf pulp fiber and sanding powder[71]. - The company is focusing on the development of environmentally friendly wall panels using waste materials such as slag and fly ash, aiming to lower raw material costs and enhance market competitiveness[72]. - The R&D investment for new products and technologies in 2021 was CNY 200 million, representing 13% of total revenue[129]. - The company is investing 50 million RMB in R&D for new technologies aimed at enhancing product efficiency[121]. Operational Efficiency - The company has implemented a centralized procurement model to optimize purchasing processes and reduce costs[42]. - The company aims to reduce operational costs by 8% through efficiency improvements in the supply chain[121]. - The company is focused on enhancing its operational efficiency through strategic procurement practices[197]. - The company plans to improve its project management and risk assessment to mitigate the risk of delayed receivables, which could impact cash flow and operational capacity[96]. - The company is committed to timely and sufficient disclosure of any inability to fulfill commitments due to objective reasons beyond its control[200]. Corporate Governance - The company has established an independent financial department with a complete financial management system, ensuring independent financial decision-making[107]. - The company maintains independent asset ownership, with all assets completely independent of the controlling shareholder[106]. - The company has a governance structure that includes a board of directors, supervisory board, and independent directors to ensure effective checks and balances[106]. - The company has a clear organizational structure with defined roles and responsibilities for each department, ensuring independent operational activities[106]. - The company has actively engaged in risk prevention and control measures, including educational initiatives on integrity and compliance[154]. Market Expansion - The company is focusing on expanding its market presence and enhancing its product offerings in the prefabricated construction sector[116]. - The company plans to expand its market presence in the prefabricated construction sector, targeting a 20% increase in market share by 2023[127]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[127]. - The company has set ambitious growth targets for the upcoming fiscal year, aiming for a revenue increase of at least 15%[116]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[121]. Employee Management - The total number of employees at the end of the reporting period was 477, with 210 in the parent company and 267 in major subsidiaries[144]. - The company conducted 14 training sessions in 2021, training a total of 838 participants, and plans to hold 19 training sessions in 2022 with a target of 1,978 participants[147]. - The company has a diverse professional composition, with 158 production personnel, 24 sales personnel, and 151 technical personnel[145]. - The company has established a comprehensive salary management system to motivate employees based on their responsibilities and performance[146]. - The company plans to enhance its employee training programs, focusing on various professional areas to improve overall competency and support sustainable development[147]. Social Responsibility - The company is committed to fulfilling social responsibilities and aligning with national policies on poverty alleviation and rural revitalization[168]. - The company has been involved in rural revitalization projects, utilizing green prefabricated components to improve living conditions in rural areas[167]. - Five prefabricated construction components were recognized as new technology products for rural revitalization by an expert review committee[167]. - The company has been recognized for its leadership in prefabricated construction products and technology development, contributing to economic benefits while fulfilling social responsibilities[163]. Risk Management - The company faces risks from fluctuations in raw material prices, particularly steel, which could affect profit margins if prices continue to rise[96]. - The company is implementing measures to monitor material price fluctuations and establish a pricing mechanism to mitigate the impact of raw material costs[97]. - The company is enhancing its safety management systems to prevent production and quality risks, ensuring a stable operational environment[98]. - The company is undergoing a transformation period, focusing on high-quality projects and improving operational efficiency to address the risk of declining performance due to high debt and receivables[99].