Suzhou Hengmingda Electronic Technology Co.Ltd(002947) : summary of 2021 Annual Report

Securities code: 002947 securities abbreviation: Suzhou Hengmingda Electronic Technology Co.Ltd(002947) Announcement No.: 2022-025 Suzhou Hengmingda Electronic Technology Co.Ltd(002947) summary of 2021 annual report I. important tips: the summary of this annual report is from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plan, Investors shall carefully read the full text of the annual report in the media designated by the CSRC. All directors attended the board meeting to consider this report. √ whether the plan for share capital increase is applicable □ whether the plan for share capital increase is not applicable □ whether the plan for share capital transfer is not applicable □ whether the audit opinion of the board of directors is applicable □ whether the plan for share capital transfer is not applicable √ whether the plan is applicable

The company's profit distribution plan for ordinary shares reviewed and approved by the board of directors is: Based on the total share capital of the company as of December 31, 2021

Based on 176130503 shares, the company plans to distribute cash dividends of RMB 2.00 (including tax) to all shareholders for every 10 shares, and plans to increase 3 shares with capital reserve to all shareholders for every 10 shares. From December 31, 2021 to the date of equity distribution and equity registration, if the total share capital of the company changes due to the conversion of convertible bonds into shares, share repurchase, equity incentive exercise, refinancing and listing of new shares, the company will adjust the total amount of distribution and the amount of conversion according to the principle of unchanged distribution proportion, The balance that does not exceed the "capital reserve - capital stock premium" at the end of the reporting period and the remaining undistributed profits are carried forward for subsequent annual distribution. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile

Stock abbreviation Suzhou Hengmingda Electronic Technology Co.Ltd(002947) stock code 002947

Shenzhen Stock Exchange

Contact person and contact information secretary of the board of directors securities affairs representative

Name: Jing Jingping, Li Zijing

Office address: 1568 shipaitaji Road, Bacheng Town, Kunshan City

Fax: 0512-36828275

Tel: 0512-57655668

E-mail [email protected]. [email protected].

2. Introduction to main business or products during the reporting period (I) main business and products of the company

The company is a science and technology enterprise specializing in providing high value-added precision functional devices and precision structural parts for consumer electronic products. With long-term accumulated technology R & D advantages, rich production experience, innovative production technology, high-precision and high-quality products and rapid response ability, the company can participate in the R & D of end brand customers' products, Provide customers with integrated solutions for the design and development, material selection, product trial production and testing, mass production, timely distribution, follow-up tracking services of consumer electronic functional devices, consumer electronic protection products, consumer electronic precision structural parts and other products. Products have been widely used in mobile phones, tablets, laptops, smart wearable devices and other consumer electronic products and their components. The company is a national high-tech enterprise. Through continuous improvement of production equipment, optimization of precision mold design and innovation of process flow, the company has realized the integrated operation of various process flows such as raw material compounding, die cutting, transfer and waste discharge, effectively improved the production efficiency of equipment, the utilization rate of raw materials and product yield, and reduced the production cost, Improved product quality and market competitiveness.

The company has a large number of high-quality customer resources. Its direct customers are mainly consumer electronics terminal brands, manufacturing service providers and component manufacturers in the upstream industrial chain. The products are finally applied to many well-known consumer electronics terminal brands.

During the reporting period, the overall prosperity of the company's consumer electronics industry was good, and the company's main business was carried out smoothly without major changes. (II) main business model of the company

1. Production mode

The company's products adopt the production mode of "production based on sales", that is, production is arranged according to sales orders. On the basis of comprehensively considering the order delivery date, demand quantity, transportation cycle and other factors, the company reasonably formulates the production plan in combination with the production capacity and raw material preparation. According to the production plan, the production department of the company specifically organizes and coordinates various resources in the production process, timely handles relevant problems in the execution of orders, and implements control over quality, output, cost, yield and other aspects to ensure the smooth completion of the production plan.

2. Procurement mode

The company has established a good cooperative relationship with major suppliers to ensure the timely supply of raw materials. The company strictly controls the procurement process and has formulated a perfect procurement management system. According to the procurement management system formulated by the company, the procurement department selects multiple qualified suppliers for inquiry, price comparison and negotiation at the same time, and determines the suppliers by integrating their product quality, delivery coordination and other factors. The procurement department arranges procurement according to the sales order and production plan, signs contracts with suppliers or issues orders. After the raw materials arrive at the company, the quality assurance department shall inspect the raw materials, handle the warehousing of the qualified raw materials, and replace or return the unqualified raw materials.

The company has established the list of qualified suppliers. After complete and strict review, the list of qualified suppliers is determined, and the suppliers are audited and evaluated once a year to ensure the quality of raw materials and the after-sales service ability of suppliers.

3. Sales model

The company's products adopt the sales mode of direct sales. The company signs a framework agreement on product sales with long-term cooperative customers, agreeing on terms such as supply mode, settlement mode and quality assurance; The customer sends an order to the company during actual purchase according to the demand, specifying the product specification, quantity, price, delivery date and other information. The supplier and the demander organize production, delivery, settlement and payment collection according to the framework agreement and the order.

3. Main accounting data and financial indicators (1) whether the company needs to retroactively adjust or restate the accounting data of previous years in recent three years □ yes √ no

Unit: Yuan

2021-2020 year-on-year increase or decrease 2019

Operating income (yuan): 1130169487.23 643623742.97 75.59% 584920985.36

Net profit attributable to shareholders of the listed company (yuan) 31264033.24 105033715.84 - 70.23% 165821807.95

Net profit attributable to shareholders of listed companies after deducting expenses of equity incentive plan 121267878.02 122679012.85 - 1.15% 165821807.95

Net profit attributable to shareholders of listed companies after deducting non recurring 78484191.30 76173930.23 3.03% 151502661.59 profit and loss (yuan)

Net cash flow from operating activities (yuan) -44800538.43 142958182.43 -131.34% 170185126.03

Basic earnings per share (yuan / share) 0.19 0.6615 - 71.28% 1.07

Diluted earnings per share (yuan / share) 0.19 0.6615 - 71.28% 1.07

Weighted average return on net assets: 2.19%, 8.50% - 6.31%, 15.10%

Year end 2021 year end 2020 year end increase or decrease over the previous year year end 2019 year end

Total assets (yuan): 2195187015.16 1660543910.87 32.20% 1355954261.82

Net assets attributable to shareholders of listed companies (yuan) 1710608949.66 1267821102.22 34.93% 1216710983.88

Note: the impact of 2020 equity incentive plan on the financial data in the reporting period:

On August 31, 2021, according to the performance appraisal results of 2020 and the company's future development plan, the company believes that it will be difficult to achieve the expected incentive effect by continuing to implement the 2020 incentive plan.

After the implementation of the first exercise / lifting of restrictions on sales of the 2020 equity incentive plan, the company terminated the implementation of the equity incentive plan and cancelled the stock options and restricted shares exercised / lifted for the second, third and fourth times. According to the relevant provisions of the accounting standards for business enterprises, the company will accelerate the exercise of the granted equity instruments, and the share based payment expenses recognized in the remaining waiting period after the termination of the company's equity incentive plan will be recognized in 2021.

(1) Impact of share based payment expenses on current profits

In 2021, due to the implementation and termination of the equity incentive plan, the amount of pre tax expenses recognized was 89.7778 million yuan, the amount of impact on the current net profit after tax was 90.038 million yuan, and the net profit attributable to the shareholders of the listed company after deducting the expenses of the equity incentive plan was 121.2679 million yuan.

(2) Presentation description of accelerated exercise part

The amount of expenses recognized by the company in 2021 due to the cancellation of incentive rights and interests for the second, third and fourth exercise / lifting of restrictions on sales is 74.4187 million yuan, including 64.1171 million yuan in non recurring profits and losses and 10.3016 million yuan in recurring profits and losses as accelerated exercise. (2) Quarterly main accounting data

Unit: Yuan

First quarter second quarter third quarter fourth quarter

Operating income 171663756.38 191307304.51 305618528.63 461579897.71

Net profit attributable to shareholders of listed company 17699986.13 15702678.75 - 53109097.12 50970465.48

Net profit attributable to shareholders of listed companies after deducting non recurring profits and losses of 12858195.47 9638826.19 18809649.38 37177520.26

Net cash flow from operating activities 5038286.24 15870716.28 15216427.80 - 80925968.75

Whether the above financial indicators or their total amount are significantly different from the financial indicators related to the quarterly report and semi annual report disclosed by the company □ yes √ No 4. Share capital and shareholders (1) number of ordinary shareholders and preferred shareholders with voting rights restored and shareholding of the top 10 shareholders

Unit: shares

Annual report disclosure voting at the end of the reporting period before the disclosure date of the annual report

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