Shenzhen Lihexing (SZ:301013)2022-04-25 16:00Dividend and Capital Management - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total of 155,828,704 shares[4]. - The company will increase its capital reserve by converting 5 shares for every 10 shares held by shareholders[4]. - The total distributable profit for the year is RMB 306,907,629.19, with cash dividends accounting for 100% of the profit distribution[166]. - The company plans to distribute cash dividends of RMB 1 per 10 shares, totaling RMB 15,582,870.40, based on a total share capital of 155,828,704 shares as of December 31, 2021[167]. - The company will also increase its share capital by 5 shares for every 10 shares held, resulting in a total increase of 77,914,352 shares, raising the total share capital to 233,743,056 shares[167]. Financial Performance - The company's operating revenue for 2021 was ¥433,303,369.39, a decrease of 8.65% compared to ¥474,329,471.84 in 2020[5]. - The net profit attributable to shareholders for 2021 was ¥47,965,512.41, down 43.46% from ¥84,841,088.14 in 2020[5]. - The net profit after deducting non-recurring gains and losses was ¥37,405,597.80, a decline of 52.78% from ¥79,220,871.28 in 2020[5]. - The net cash flow from operating activities was negative at -¥51,912,285.80, a decrease of 207.07% compared to ¥48,485,549.29 in 2020[5]. - The total assets at the end of 2021 were ¥1,332,824,199.73, an increase of 67.70% from ¥794,755,575.32 at the end of 2020[5]. - The net assets attributable to shareholders at the end of 2021 were ¥932,332,715.84, up 54.45% from ¥603,634,107.01 at the end of 2020[5]. - The basic earnings per share for 2021 was ¥0.35, a decrease of 52.05% from ¥0.73 in 2020[5]. - The weighted average return on equity for 2021 was 6.25%, down from 15.11% in 2020, reflecting a decline of 8.86%[5]. Research and Development - The company is positioned in the specialized equipment manufacturing sector, focusing on intelligent manufacturing equipment, which is expected to see increased demand in various industries[30]. - The company aims to leverage its technological advantages in specific fields to achieve steady growth despite being smaller in scale compared to peers[33]. - The company focuses on the research, production, and sales of automation and intelligent equipment, aiming to become a leading provider of smart manufacturing solutions in the information and communication technology sector[35]. - The company's R&D investment in 2021 was CNY 44.45 million, accounting for 10.26% of total annual revenue, reflecting a commitment to technological advancement[51]. - The company reported a significant increase in R&D expenses, which rose by 63.70% to CNY 44.45 million, reflecting a focus on new technology development[66]. - The company completed the research and development of a fully automated testing platform for terminal board-level loading, enhancing product performance and competitiveness[67]. - The company completed the development of a terminal machine charging and current testing technology, enabling fast and wireless charging capabilities[67]. - The company has established a dedicated technology for the attachment of four-curved flexible screens, enhancing core technical capabilities in this area[67]. - The company increased its R&D personnel from 126 in 2020 to 169 in 2021, representing a growth of 34.13%[72]. - R&D expenditure in 2021 amounted to ¥44,454,916.94, which is 10.26% of the total revenue, up from 5.73% in 2020, marking an increase of 4.53 percentage points[72]. Customer and Market Strategy - Major clients include well-known companies such as Huawei, Honor, Foxconn, and TCL, indicating a strong customer base in the mobile smart terminal and OLED flexible screen sectors[35]. - The company plans to develop high-value-added medium and high-voltage products and high-frequency microwave products, with a focus on customized product offerings rather than merely increasing production capacity[35]. - The company aims to strengthen its core technology capabilities through ongoing research and development initiatives in various fields, including 5G technology[72]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[140]. - A strategic acquisition of a local competitor is in progress, which is expected to enhance the company's production capacity by 40%[140]. - The company plans to adopt a large customer strategy to enhance customer loyalty and satisfaction while developing standardized models for small and medium-sized clients[107]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operation of its board and committees[124]. - The board consists of 7 members, including 3 independent directors, and operates under established rules and regulations[127]. - The company maintains independence from its controlling shareholders, ensuring complete autonomy in operations and decision-making[132]. - The company emphasizes transparency and timely information disclosure, utilizing multiple platforms for investor communication[130]. - The company has implemented a comprehensive internal control system to enhance governance and operational efficiency[124]. - The company received a standard unqualified opinion on its internal control assurance report, with no significant deficiencies identified in non-financial reporting[176]. Employee Management - The total number of employees at the end of the reporting period is 786, with 622 from the parent company and 164 from major subsidiaries[162]. - The professional composition includes 443 production personnel, 68 sales personnel, 169 technical personnel, 15 financial personnel, and 91 administrative personnel[162]. - The company has established a competitive and incentive-based compensation management system to ensure employee benefits[163]. - The company actively engages in various activities to enhance employee satisfaction and sense of belonging[163]. - The company emphasizes employee training and development, aligning training goals with business development to enhance professional skills and adaptability[165]. Risks and Challenges - The company faces significant risks due to the continuous decline in revenue from major clients affected by U.S. government restrictions, which has led to a substantial decrease in procurement demand[108]. - The company is at risk of not achieving expected returns from its fundraising investment projects, which are critical to its main business operations[116]. - The company is involved in ongoing litigation with potential economic compensation risks, with the first lawsuit involving a claim of approximately 34.13 million yuan[112]. - The effective corporate income tax rate is 15% due to high-tech enterprise status, and any changes in tax incentives could negatively impact the company's performance[114]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year, targeting 1.65 billion RMB[140]. - The company plans to invest 100 million RMB in new technology development over the next two years to enhance product offerings[194]. - The company aims to improve its supply chain efficiency, targeting a reduction in costs by 15% over the next year[198]. - The management emphasized the importance of compliance with regulatory requirements in all business operations to mitigate risks[200].