TODAYTEC(SZ:300743)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was ¥541,746,016.86, representing a 28.95% increase compared to ¥420,130,953.51 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥26,000,874.86, a 14.48% increase from ¥22,711,299.20 in 2020[20]. - The gross profit margin for thermal transfer ribbons decreased to 22.71% in 2021 from the previous year, despite a revenue increase of 28.08%[73]. - The company's overseas revenue reached ¥353,590,531.78, making up 65.27% of total revenue, with a year-on-year growth of 34.23%[71]. - The revenue from thermal transfer ribbons accounted for ¥510,492,365.06, which is 94.23% of total revenue, with a year-on-year growth of 28.08%[71]. - The company reported a total operating revenue of ¥541,746,016.86 in 2021, representing a year-on-year increase of 28.95% compared to ¥420,130,953.51 in 2020[71]. - The company achieved a total of 1.5 billion in the last fiscal year, representing a 20% year-over-year growth[152]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach 1.875 billion[152]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥21,565,927.99, a decline of 144.89% compared to ¥48,043,326.36 in 2020[20]. - Operating cash inflow increased by 28.36% to ¥604,352,073.85, while operating cash outflow surged by 48.04% to ¥625,918,001.84, resulting in a net cash flow of -¥21,565,927.99[86]. - Investment cash inflow decreased by 5.63% to ¥509,476,129.22, while investment cash outflow decreased by 15.56% to ¥500,115,461.09, leading to a net cash flow of ¥9,360,668.13[86]. - The company reported a substantial increase in investment, with a total investment amount of ¥56,444,843.44, reflecting a 227.92% increase year-over-year[97]. - The company plans to raise up to ¥172 million through the issuance of convertible bonds, with ¥66.25 million allocated for technology upgrades in thermal transfer coating equipment[67]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders, based on a total of 138,164,877 shares[4]. - The profit distribution plan for 2021 includes a cash dividend of 1.5 RMB per 10 shares, totaling 20,724,731.55 RMB (including tax) based on a share capital of 138,164,877 shares[181]. - The cash dividend total represents 100% of the profit distribution amount, indicating a strong commitment to returning value to shareholders[180]. Research and Development - The company has accumulated extensive R&D experience and technical expertise in the thermal transfer ribbon field, establishing a competitive advantage both domestically and internationally[43]. - The company has established a balanced R&D system focusing on green, widely applicable, and specialized high-end thermal transfer ribbon products[65]. - Research and development investments have increased by 30%, totaling 150 million, to drive innovation in product development[152]. - The company is developing new technologies aimed at improving product quality and market share, including a new coating process for wax-based carbon tapes[82]. - The company continuously explores new formulas, processes, and materials for thermal transfer ribbons to expand product varieties and application fields[43]. Market and Industry Insights - The company operates in the thermal transfer ribbon industry, which is part of the broader electronic equipment manufacturing sector[29]. - The demand for thermal transfer ribbons is driven by the rapid development of barcode recognition technology across various industries, including IoT and smart manufacturing[30]. - The market for thermal transfer ribbons is characterized by a dealer sales model, where distributors play a crucial role in reaching end-users[41]. - The demand for thermal transfer ribbons is expected to grow rapidly due to advancements in information technology and the need for industrial upgrades in China[44]. - The company is a leading domestic enterprise in the thermal transfer ribbon industry, having developed barcode printing thermal transfer ribbons and participated in national standard formulation[43]. Corporate Governance and Management - The management team emphasizes the importance of accurate financial reporting, with the management team ensuring the report's authenticity and completeness[3]. - The management team is committed to transparency, with all board members present for the report's review[4]. - The company has improved its internal control and governance structure to ensure effective decision-making and operational compliance[68]. - The company has established a transparent performance evaluation and incentive mechanism for its directors and senior management[134]. - The company has implemented innovative incentive programs, such as the TUP incentive plan, to boost employee performance and efficiency[127]. Strategic Initiatives and Future Plans - The company has developed a five-year strategic plan (2021-2025) focusing on product series and global localization strategies[114]. - The company plans to achieve a main business revenue of 2 billion yuan and a net profit of 200 million yuan by 2025, focusing on increasing the sales volume of mid-to-high-end products and improving product structure[116]. - The company intends to expand production capacity by accelerating project construction and potentially acquiring competitors to enhance operational efficiency[121]. - The company aims to strengthen its research and development capabilities, particularly in mid-to-high-end products, to ensure its wax-based carbon ribbon products remain world-leading[120]. - The company is actively engaging in foreign exchange hedging with financial institutions to mitigate the risks associated with significant currency fluctuations[128]. Risk Management - The report includes a detailed discussion on potential risks and countermeasures that the company may face in the future[4]. - The company acknowledges the risks of goodwill impairment if the performance of TTS and TPS does not meet expectations or if market conditions worsen[128]. - The company is facing challenges from increasing international trade protectionism and trade friction, particularly in the context of US-China trade policies[127]. - The company is closely monitoring international developments and adjusting strategies to address potential impacts on overseas sales[127]. Employee and Organizational Structure - The total number of employees at the end of the reporting period is 515, with 297 in the parent company and 218 in major subsidiaries[174]. - The company has a total of 324 production personnel, 58 sales personnel, 69 technical personnel, 18 financial personnel, and 46 administrative personnel[174]. - The company has a structured decision-making process for remuneration, with shareholders approving director compensation and the board determining senior management pay[159]. - The company conducts internal and external training to enhance employee skills and adaptability, fostering a sense of belonging among employees[176]. Acquisitions and Expansion - The company acquired 100% equity of TTS and TPS companies for £470.58 million, which was fully paid on May 10, 2021, and included in the consolidated financial statements from May 31, 2021[93]. - The company plans to enhance its domestic market development efforts to improve its resilience against international trade risks[127]. - A strategic acquisition of a local tech firm is anticipated to enhance the company's product offerings and increase market competitiveness[152].