Gian(SZ:300709)2022-03-31 16:00Financial Performance - The company reported a cash dividend of 1.80 RMB per 10 shares (including tax) based on a total of 155,173,793 shares, with no bonus shares issued[6]. - The company's operating revenue for 2021 was CNY 2,404,113,167, representing a 53.70% increase compared to CNY 1,564,126,479 in 2020[19]. - The net profit attributable to shareholders for 2021 was CNY 183,899,702.92, a 29.64% increase from CNY 141,851,354.28 in 2020[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 37.46% to CNY 72,281,589.90 from CNY 115,585,599.10 in 2020[19]. - The net cash flow from operating activities for 2021 was CNY 187,713,609.46, a significant increase of 989.25% compared to a negative cash flow of CNY -21,109,135.91 in 2020[19]. - The total assets at the end of 2021 were CNY 3,581,268,722.70, reflecting a 9.51% increase from CNY 3,270,131,331.85 at the end of 2020[19]. - The net assets attributable to shareholders increased by 36.67% to CNY 2,337,276,613.69 at the end of 2021 from CNY 1,710,166,509.70 at the end of 2020[19]. - The company reported a basic earnings per share of CNY 1.33 for 2021, up 29.13% from CNY 1.24 in 2020[19]. - The company achieved operating revenue of ¥2,404,113,167.09, a year-on-year increase of 53.70%[51]. - The net profit attributable to shareholders reached ¥183,899,702.92, up 29.64% compared to the previous year[51]. Market Trends and Industry Insights - The MIM market is expected to reach CNY 14.14 billion by 2026, driven by the growth of consumer electronics and wearable devices[29]. - In 2022, global foldable smartphone sales are expected to reach approximately 18.3 million units, driven by major brands like Samsung, Huawei, and Xiaomi entering the market[30]. - The global smartwatch shipment volume was about 194 million units in 2020, representing a year-on-year growth of 26%, and is projected to reach 510 million units by 2023, with a compound annual growth rate of 38% over three years[30]. - The MIM industry is experiencing significant changes as large assembly manufacturers and listed companies are increasingly integrating vertically into the MIM sector, enhancing competitive dynamics[31]. - The MIM industry is closely tied to economic growth, with demand for consumer electronics, automotive products, and medical services driving market opportunities[36]. Research and Development - R&D investment amounted to ¥17,583.43 million, reflecting a growth of 17.83% year-on-year[51]. - The company holds 23 invention patents, 143 utility model patents, and 9 design patents as of December 31, 2021, indicating strong R&D capabilities[48]. - The company is focusing on diversifying its MIM product materials, expanding applications to titanium alloys, cobalt-based alloys, tungsten alloys, and other materials to meet market demands for lightweight and diversified products[37]. - The company aims to enhance its technical capabilities in micro-powder injection molding and co-injection molding, which will allow for smaller, more precise MIM products and the combination of different materials[38]. - The company is actively developing high-performance small modulus gears to meet the growing demand in sectors like robotics and micro transmission[79]. - The company is focused on upgrading its MIM production lines to meet customer demands and improve production efficiency, particularly in the fast-evolving consumer electronics sector[125]. Acquisitions and Partnerships - The company completed a 60% acquisition of Antixin, integrating it into the consolidated financial statements, enhancing collaboration in acoustic R&D and Bluetooth technology[53]. - The company established a wholly-owned subsidiary, Suzhou Yiyan Intelligent Technology Co., Ltd., with a registered capital of 5 million RMB on July 28, 2021[73]. - The company acquired 60% of Shenzhen Antixin Technology Co., Ltd. for a total of 180 million RMB, with payments of 30 million RMB and 60 million RMB made on February 8 and March 11, 2021, respectively[72]. - Antixin contributed 380,123,743.27 RMB to the company's consolidated revenue, accounting for 15.81% of the total annual revenue[74]. - The company is expanding its customer base in the consumer electronics and smart home sectors, successfully supplying precision transmission components for various applications[53]. Governance and Management - The company has established a performance evaluation and incentive mechanism for directors and senior management, linking their compensation to the company's performance[139]. - The company maintains independent operations in business, personnel, assets, institutions, and finance, ensuring no reliance on the controlling shareholder[141]. - The company has a complete production system and related facilities, independently owning all necessary assets for its operations[142]. - The company has established a financial department with dedicated accounting personnel, ensuring an independent financial accounting system[142]. - The company held 6 shareholder meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders, in decision-making processes[137]. Risk Management - The management discussion section outlines potential risks in the company's operations and corresponding mitigation strategies[6]. - The company is addressing risks related to macroeconomic fluctuations and market volatility, particularly in the consumer electronics sector, which could impact sales and profitability[126]. - The company recognizes the risks of new product development and process changes, emphasizing the need for increased R&D investment and collaboration with academic institutions to enhance technological capabilities[128]. - The company faces risks of declining gross margins due to factors such as increased competition, fluctuations in raw material and labor costs, and changes in downstream industry profitability[131]. Shareholder Engagement and Profit Distribution - The profit distribution plan for 2021 includes a cash dividend of ¥1.80 per 10 shares, totaling ¥27,931,282.74, and a capital reserve increase of 2 shares for every 10 shares held, resulting in an increase of 31,034,758 shares[186]. - The cash dividend distribution represents 100% of the total distributable profits[184]. - The company has established a clear and complete profit distribution policy, which requires approval from the board of directors and the shareholders' meeting[182]. - The company has implemented a stock incentive plan, with a total of 18,274 restricted stocks to be repurchased and canceled due to the departure of certain incentive targets[188]. - The company has a significant capital expenditure plan, indicating a growth phase while maintaining a minimum cash dividend ratio of 20%[184].