QuakeSafe Technology(SZ:300767)2022-03-20 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥670.33 million, representing a 15.48% increase compared to ¥580.49 million in 2020[17]. - The net profit attributable to shareholders decreased by 45.58% to ¥87.46 million in 2021 from ¥160.72 million in 2020[17]. - The net cash flow from operating activities was negative at ¥182.85 million, a decline of 251.62% compared to ¥120.60 million in 2020[17]. - Basic earnings per share fell by 45.60% to ¥0.4337 in 2021 from ¥0.7972 in 2020[17]. - Total assets increased by 39.33% to ¥2.06 billion at the end of 2021, up from ¥1.48 billion at the end of 2020[17]. - The net assets attributable to shareholders rose by 15.82% to ¥1.28 billion at the end of 2021, compared to ¥1.11 billion at the end of 2020[17]. - The company reported a weighted average return on equity of 7.01% in 2021, down from 15.48% in 2020[17]. - The company faced a significant decline in net profit, with a decrease in net profit excluding non-recurring gains and losses by 40.87% to ¥80.36 million in 2021[17]. - The company reported a total of CNY 7.10 million in non-recurring gains and losses for 2021, down from CNY 24.81 million in 2020[24]. - The net profit for 2021 was CNY 87.46 million, a decrease of CNY 73.25 million or 45.58% compared to the previous year, primarily due to increased competition and rising raw material costs[60]. Market Position and Growth - The construction industry, particularly in seismic isolation technology, is expected to grow significantly due to increased government support and regulations, positioning the company favorably in a burgeoning market[28]. - The company is one of the few in China that provides comprehensive seismic isolation solutions, differentiating itself from competitors who primarily focus on manufacturing and sales[30]. - The company anticipates a substantial increase in market space for seismic isolation technology following the enforcement of new regulations starting September 2021[28]. - The company aims to capture more market share nationwide as relevant laws and regulations improve and product standards are enhanced[44]. - The demand for seismic isolation technology is driven by China's high seismic activity, with 41% of the territory and over half of the cities located in areas with a seismic intensity of 7 or above[44]. - The company is actively expanding its market presence, particularly outside Yunnan, which has seen a significant increase in project volume[61]. Research and Development - The company has a strong R&D capability, with a focus on improving production processes and a significant accumulation of core technologies in rubber formulation and damping device production[50]. - The company has led the development of multiple local and national standards, with 37 technical standards in total, including 2 national standards and 5 industry standards[52]. - The company's R&D expenses reached CNY 23.90 million, an increase of CNY 8.08 million or 51.08% year-on-year, reflecting a commitment to enhancing core competitiveness[63]. - The company has developed various energy-dissipating devices, including viscous dampers and metallic yield dampers, to enhance structural earthquake resistance[36]. - The company is developing a monitoring system for seismic rubber bearings, which aims to enhance product quality and market competitiveness[63]. Operational Challenges - The company has acknowledged the uncertainty regarding its ability to continue as a going concern, as indicated in the audit report[17]. - The company faced challenges in project construction due to the COVID-19 pandemic, leading to temporary work stoppages[101]. - The additional pile foundation engineering for the project increased the construction time by 6 months, impacting the overall project timeline[101]. Corporate Governance - The company has a total of 9 board members, including 4 independent directors, complying with legal and regulatory requirements[135]. - The board held 9 meetings during the reporting period, adhering to relevant laws and regulations without any violations[135]. - The company has established a robust investor relations management system to enhance communication and ensure fair access to information for all investors[140]. - The company has a clear ownership of assets, including land, factories, and equipment, with no instances of fund or asset occupation by shareholders[149]. - The company has established a sound corporate governance structure and internal control system in compliance with relevant laws and regulations[199]. Employee and Talent Management - The workforce increased from 523 employees at the end of 2020 to 917 employees by the end of 2021, indicating significant growth in human resources[120]. - The company emphasizes the importance of attracting and retaining high-end talent to support its rapid business growth[128]. - The employee training program aims to enhance professional skills and align with the company's development goals[184]. Financial Management - The company has implemented a step-by-step payment policy based on supply progress to adapt to market conditions and client needs[43]. - The company has a comprehensive compensation policy that includes social insurance and housing funds for employees[183]. - The company has utilized a maximum of RMB 200 million of idle raised funds for cash management, investing in low-risk financial products[109]. - The total investment income from cash management activities in 2021 amounted to RMB 4.0372 million, with all principal amounts recovered without any overdue[110]. Future Outlook - The company is committed to maintaining stable R&D investment to ensure timely product and technology updates[127]. - The company is focused on expanding its market presence and enhancing its product offerings through new technology development[170]. - The company is actively pursuing opportunities for mergers and acquisitions to strengthen its market position[170]. - Future outlook includes a commitment to innovation and improving operational efficiency to drive growth[170].