ECT(SZ:300679)2022-04-27 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2021, representing a year-on-year increase of 15%[25]. - The net profit attributable to shareholders was 150 million RMB, an increase of 20% compared to the previous year[25]. - In 2021, the company's operating revenue reached ¥3,245,720,418.35, representing a 25.20% increase compared to ¥2,592,481,522.44 in 2020[30]. - The net profit attributable to shareholders was ¥371,586,103.87, up 38.27% from ¥268,738,344.58 in the previous year[30]. - The net profit after deducting non-recurring gains and losses was ¥341,362,595.36, reflecting a 48.04% increase from ¥230,588,832.60 in 2020[30]. - The cash flow from operating activities was ¥518,698,472.75, which is a 17.74% increase from ¥440,561,912.26 in the previous year[30]. - Revenue from automotive connectors surged by 236.21% year-on-year, reaching ¥312,291,255.80[85]. - The company maintained a stable gross profit margin despite seasonal price adjustments, with overall profitability improving[89]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2023[25]. - The company has entered the supply chains of major smartphone brands such as Xiaomi, Huawei, and Samsung, establishing itself as a core supplier[61]. - The company has been recognized as one of the "Top 100 Electronic Component Enterprises in China" for seven consecutive years, ranking 40th in 2021[61]. - The company plans to continue expanding into different industries and customer bases, contributing to significant revenue growth in the automotive connector segment[99]. - The company plans to achieve the expected benefits from the projects by the end of 2022 and 2023 for various projects[141]. Research and Development - The company is investing 100 million RMB in R&D for innovative technologies in the next fiscal year[25]. - The company has developed a 5G array antenna prototype, applying for a utility model patent, aimed at enhancing market competitiveness[109]. - The company has completed the product development of a high-isolation WLAN antenna, which supports the latest Wi-Fi 6 technology and covers frequency bands from 2400MHz to 7125MHz[111]. - The company is developing a dual-channel coaxial connector for millimeter-wave applications, currently in the pilot stage, with intellectual property protection applied[111]. - The company aims to enhance its competitive edge through continuous R&D and the introduction of innovative products[115]. Risks and Challenges - The management highlighted potential risks including supply chain disruptions and market competition, urging investors to remain cautious[8]. - The company recognizes the risk of increased competition and the need for continuous investment in technology and product development to meet evolving customer demands in the fast-paced mobile terminal market[159]. - Increased risks from US-China trade tensions could create uncertainty for domestic smartphone manufacturers and affect trade relations with foreign clients[165]. Corporate Governance and Shareholder Relations - The company has established a comprehensive internal control system to enhance governance and ensure compliance with laws and regulations[183]. - The company has set up various channels for investor relations management to improve transparency and communication with investors[182]. - The company ensures independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance, complying with relevant regulations[184]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, linking their compensation directly to the company's operating performance[178]. Investment and Financial Management - The company reported a significant increase in investment, with total investments reaching ¥897,798,735.79, up 867.67% compared to the previous year[131]. - The company has increased its long-term equity investments, with a total of ¥499,149,509.16, accounting for 8.41% of total assets[127]. - The company has not incurred any idle raised funds for over two years[137]. - The total amount of raised funds is 1,859.6681 million CNY, with 274.1256 million CNY utilized in the current period and a cumulative utilization of 871.0793 million CNY[137]. Product Development and Innovation - New product development includes the launch of a next-generation connector technology expected to enhance data transfer speeds by 30%[25]. - The company has completed RF testing for 5G circuit boards, focusing on enhancing process capabilities[113]. - The company has developed qualified RF BTB products, achieving good market feedback and expanding its customer base[90]. - The company has invested heavily in automation and information technology, leading to a significant reduction in production costs[72]. Customer and Supplier Relations - Total sales amount from the top five customers reached ¥1,064,920,479.13, accounting for 32.81% of the annual total sales[105]. - The largest customer contributed ¥256,045,812.00, representing 7.89% of the annual sales[105]. - Total procurement amount from the top five suppliers was ¥439,715,767.26, which is 19.94% of the annual total procurement[105].