Jinling Sports(SZ:300651)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was CNY 547,287,624, representing a year-on-year increase of 21.87% compared to CNY 449,075,233 in 2020[5]. - The net profit attributable to shareholders for 2021 was CNY 26,038,103.8, a decrease of 13.45% from CNY 30,084,096.9 in 2020[5]. - The net profit after deducting non-recurring gains and losses was CNY 23,082,248.4, down 13.52% from CNY 26,690,639.9 in 2020[5]. - The cash flow from operating activities increased by 32.62% to CNY 115,549,169 in 2021, compared to CNY 87,129,775.4 in 2020[5]. - The total assets at the end of 2021 were CNY 1,252,908,919, reflecting a 27.79% increase from CNY 980,476,079 at the end of 2020[18]. - The net assets attributable to shareholders increased by 7.70% to CNY 739,262,953 at the end of 2021, compared to CNY 686,388,683 at the end of 2020[18]. - The basic earnings per share for 2021 were CNY 0.2022, a decrease of 13.48% from CNY 0.2337 in 2020[5]. - The diluted earnings per share for 2021 were CNY 0.2209, down 5.48% from CNY 0.2337 in 2020[5]. - The company reported a total revenue of CNY 245,927,395.02 in Q4 2021, with a net profit of CNY 3,148,754.12 attributable to shareholders[19]. - The company's total revenue reached ¥547,287,624.31, representing a 21.87% increase compared to ¥449,075,233.12 in the previous period[62]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total of 128,747,077 shares[4]. - The company has not issued any bonus shares, indicating a focus on cash dividends for shareholder returns[4]. - The company has a cash dividend of 1.00 yuan per 10 shares, totaling 12,874,707.70 yuan, which accounts for 3.86% of the total distributable profit of 333,523,710.81 yuan[157]. Market and Industry Outlook - The company operates in the sports equipment manufacturing industry, which saw a 15.84% year-on-year increase in revenue for large-scale enterprises in 2021[28]. - By 2035, the sports industry is projected to reach 4% of GDP, indicating substantial growth potential for the domestic sports goods manufacturing sector[29]. - The total scale of China's sports industry is expected to reach 5 trillion yuan by 2025, with the value-added proportion of GDP increasing to 2%[31]. - The urban consumer market is shifting from low-end to mid-to-high-end sports goods, with rural areas also developing new demand for mid-range products[29]. - The sports goods market is expected to continue stable growth due to rising disposable incomes and consumption upgrades among residents[29]. - The company aims to enhance brand promotion and market expansion while increasing investment in technology research and development to become a globally competitive sports equipment supplier[100]. Risks and Challenges - The company emphasizes the importance of risk awareness regarding potential profit decline and new product development not meeting expectations[4]. - The company has outlined various operational risks, including market risk and raw material price fluctuations, which could impact future performance[4]. - Risks include slower-than-expected growth in the consumer sports equipment market and potential declines in the number of sports events held domestically[41]. - The company faces risks related to profit decline due to high operational costs and competitive pressures, necessitating strategic sales and marketing efforts[103]. Research and Development - The company has a strong commitment to R&D, focusing on innovative applications and products to maintain its industry leadership[50]. - The company holds 142 patents, including 18 invention patents and 55 utility model patents, showcasing its strong R&D capabilities[55]. - Research and development expenses increased by 21.53% to 18,649,033.05 yuan in 2021, primarily due to higher salaries for R&D personnel[73]. - The company is focusing on the development of sports big data and artificial intelligence technology, enhancing its innovation capabilities[96]. - The company plans to develop multifunctional, intelligent, and entertainment-oriented sports equipment products, while expanding its product line to better meet market demands[100]. Corporate Governance and Compliance - The company has established a robust investor relations management system to ensure timely and accurate information disclosure[5]. - The company has a complete and independent production and operation system, with no reliance on controlling shareholders for business operations[119]. - The company has established a risk control management system involving the board's audit committee and internal audit department to enhance risk management capabilities[162]. - The internal control system has been continuously improved, ensuring compliance with relevant laws and regulations, and no significant internal control deficiencies were identified as of December 31, 2021[163]. Social Responsibility and Sustainability - The company emphasizes employee rights protection by providing comprehensive benefits, including health checks and festive bonuses[182]. - The company has established a solar photovoltaic power station with a capacity of 2.448MW, generating 242.87 million kWh annually, reducing standard coal consumption by 945 tons and CO2 emissions by 2,362.4 tons[184]. - The company is committed to sustainable development, with a focus on low consumption, low emissions, and high efficiency in its production processes[187]. - The company actively participates in social responsibility initiatives, maintaining good relations with local governments and contributing to community development[187]. Employee and Management Structure - The total number of employees increased from 4,429 in June 2019 to 4,935 in June 2022, indicating a growth of about 11.4%[125]. - The professional composition includes 551 production personnel, 55 sales personnel, 81 technical personnel, 14 financial personnel, and 46 administrative personnel[153]. - The company has implemented a multi-channel training mechanism to enhance employee skills in areas such as R&D, management, and marketing[155]. - The company has a policy of adjusting the existing salary system based on market conditions and employee capabilities[154]. Future Plans and Strategic Initiatives - The company plans to enhance its product line with new developments such as adjustable basketball hoops and modular football goals, aimed at expanding market offerings[74]. - The company intends to establish subsidiaries focused on sports flooring materials and sports equipment technology, which will help expand production capacity[104]. - The company plans to pursue mergers and acquisitions to expand production scale and enhance R&D capabilities, given the low market concentration in the sports equipment manufacturing industry[102]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[140].