Avary Holding (Shenzhen) Co.Limited(002938) (Shenzhen) Co., Ltd
Work report of the board of directors in 2021
The board of directors of Avary Holding (Shenzhen) Co.Limited(002938) (Shenzhen) Co., Ltd. (hereinafter referred to as "the company") is composed of seven directors. In 2021, the board of directors of the company will strictly comply with the company law, the Listing Rules of Shenzhen Stock Exchange and other laws and regulations, the articles of association, the rules of procedure for the general meeting of shareholders, the rules of procedure for the board of directors and other company systems, Earnestly perform the responsibilities of the board of directors entrusted by the general meeting of shareholders, strictly implement the resolutions of the general meeting of shareholders, actively promote the implementation of the resolutions of the board of directors, constantly standardize the corporate governance structure, and ensure the scientific decision-making and standardized operation of the board of directors.
In terms of the company's operation and management, the board of directors and all special committees diligently carried out various work, continuously strengthened the internal control management, actively offered advice and suggestions for the company's major decisions, promoted the company's business development, and completed the company's operation and management objectives. The work of the board of directors in 2021 is reported as follows: I. overview of the company's operation in 2021
2021 is a very unsettled year. Due to the strong infectivity of covid-19 virus variant strain and the different vaccination levels and vaccination rhythms of various countries, covid-19 epidemic has shown a repeated trend, increasing the uncertainty of the external environment. At the same time, there are serious bottlenecks in the global supply chain, increasing energy shortages, soaring commodity prices and rising inflationary pressure, It also makes the global economic recovery more difficult. Facing the complicated external situation, on the basis of doing a good job in epidemic prevention and control, the company continued to follow the business strategy of "stabilizing growth, adjusting structure, promoting innovation and controlling risks", adhered to rigorous production management and high-quality technical services, continued to provide services to first-class customers at home and abroad, and realized the stable growth of operating revenue. In 2021, the company achieved an operating revenue of 33.315 billion yuan, an increase of 11.60% over the previous year; The net profit attributable to shareholders of listed companies was 3.317 billion yuan, an increase of 16.75% over the previous year, and the budget target of the previous year was successfully completed.
The company's main operation and management work in 2021 is as follows:
1. On the basis of doing a good job in epidemic prevention and control, timely grasp the industrial development trend and achieve stable income growth. In 2021, in the face of repeated epidemic caused by virus mutation, the company remained vigilant and continued to do a good job in epidemic prevention and control in strict accordance with the provisions of the company and local governments, which was highly praised by the government. During the repeated epidemic in Shenzhen, in order to ensure the stable production of the company in the factory, the company actively responded to the call of the government and organized in-house vaccination and nucleic acid detection in conjunction with the street social health center. Up to now, the rate of the company's first dose of vaccination has reached 100%, and the rate of completing two doses of vaccination has reached 99.69%. Epidemic prevention work has been carried out in multiple dimensions, It ensures the company's ability to supply goods to customers and the stable growth of income. In 2021, the company realized an operating revenue of 33.315 billion yuan, an increase of 11.60% over the previous year.
In terms of various product lines, in 2021, the company's communication board business achieved a sales revenue of 21.983 billion yuan, basically the same as that of the previous year. Under the condition of maintaining stable revenue, the company increased the proportion of high value-added products by optimizing the product structure, and the gross profit margin of communication board business increased by 0.16 percentage points over the previous year; Affected by the rise of remote economy brought by the epidemic, and the company's new product Huai'an ultra-thin circuit board began mass production, the company's consumer electronics and computer board products, including tablet computers, achieved a sales revenue of 11.076 billion yuan in 2021, with a year-on-year increase of 43.57%. Facing the server upgrading market brought by the rapid growth of automotive electronics, cloud computing, 5g and other development, the company has continuously strengthened the technical research and development and market development of automotive electronic boards, high-speed server boards and other products in recent years, and this kind of business has developed rapidly. In 2021, the company's sales revenue of boards for automobile server and other products reached 256 million, an increase of 74.12% over 2020. It is expected that such products will continue to develop rapidly in the future and become one of the important performance growth points of the company.
2. Increase R & D and investment in new technologies and accelerate the implementation of new products
In 2021, the company's R & D will continue to take "new materials, new products, new processes, new equipment and new technologies" as the main axis and "light, thin and short, high and low, exquisite and smart" as the R & D direction. The R & D layout will be carried out in advance in 5g across 6G, AI, IOT, cloud, big data, edge computing, sensing technology and other application scenarios, so as to ensure the company's technical advantages in the industry. In 2021, the company invested 1.572 billion yuan in R & D, accounting for 4.72% of operating revenue. As of December 31, 2021, the company has obtained a total of 896 patents, including 403 in the mainland, 334 in Taiwan and 159 in the United States, 91% of which are invention patents. The company continued to promote industry university research cooperation. In 2021, the company continued to promote the construction of Guangdong Hong Kong big data image and communication application joint laboratory, and cooperated with Tsinghua University, City University of Hong Kong, Harbin Institute of Technology (Shenzhen), Southeast University, Yanshan University, Shenzhen University, Guangdong University of technology, Hebei University of technology Shenzhen International Innovation Research Institute of advanced electronic materials and others continued to implement technical project cooperation and talent project cooperation, further consolidate the basic research of advanced printed circuit boards, common key technology research and application technology research of emerging industries, and simultaneously promote the transformation of scientific research achievements, the cultivation of research talents, forward-looking technology and the layout of advanced industries. As of December 31, 2021, the company has carried out industry university research cooperation with more than 20 universities and research institutes.
In terms of the transformation of R & D achievements, the company has continuously launched new products in recent years, including SLP and 5g related products, which have been successfully mass produced, and further increased the pace of investment and construction, becoming a new performance growth point of the company and ensuring the industry-leading level of the company's product technology. In 2021, the company's miniled backlight products were successfully launched, and the two production lines in Huai'an park have been successfully put into operation. The company makes full use of the formed technical ability, process ability and management ability to steadily improve the yield of the production line. In 2021, miniled backlight became a new driving force for the company's revenue and profit growth. At the same time, the company's core competitiveness in technological innovation was further improved. In terms of automobile sectors, the company has successfully entered into relevant customers in the field of Shanxi Guoxin Energy Corporation Limited(600617) automobile, and relevant products have passed the certification and will be supplied in succession. In the future, the company will continue to develop forward-looking technology through close cooperation with first-class brand customers at home and abroad, master the trend and trend of product technology development, and continue to carry out technical layout in related products, including communication electronics, consumer electronics, automotive electronics, servers, smart home electronics, metauniverse and so on.
4. Actively expand production capacity and continuously increase the driving force for the development of the company
Facing the rapid development of the industry, in addition to keeping up with the market trend in technology research and development, the company also actively expands production capacity, so as to grasp the development opportunities of the industry and continuously increase the driving force for the development of the company.
In terms of flexible board, the company's raised investment project Huai'an flexible multilayer printed circuit board production expansion project has been invested; The soft board expansion investment plan planned by the company at the beginning of 2021 has also been put into operation, and the company's phase I investment plan of Taiwan Kaohsiung FPC project is also continuously promoted. The company's investment in soft board, capacity expansion and technological upgrading go hand in hand, consolidating the company's competitive strength in soft board. In terms of module assembly, the company's Indian park has been put into production in the second half of 2021, and the second phase of Shenzhen Second Park is also advancing as planned.
In terms of hard board, Qinhuangdao high-level HDI printed circuit board expansion project invested by the company has been invested in 2020; The company's Huai'an ultra-thin circuit board investment plan has been mass produced, and the production capacity is planned to be 93000 square meters / month; The investment plan of Huai'an comprehensive insurance Park (i.e. Huai'an first park) and the hard board transformation investment plan are being implemented as planned. After the project is put into operation, it will help the company obtain the market opportunities brought by the rapid development of servers and automotive electronics; The high-end HDI and advanced SLP carrier board intelligent manufacturing project of Huai'an New Park (i.e. Huai'an third park) is under construction as planned. After the completion of the project, the comprehensive competitiveness of the company in high-end HDI and SLP will be further enhanced. The company's investment in hard board enriches the company's product types and improves the company's competitive strength in hard board, which is conducive to improving the company's product structure. In addition, the company will continue to invest in advantageous projects according to the development trend of industry and technology, so as to add new momentum to the development of the company.
In the future, the company will continue to follow the business strategy of "stabilizing growth, adjusting structure, promoting innovation and controlling risks", take root in the mainland and serve the world, constantly make use of its own advantages in technology and management, use endogenous and extension means to deeply cultivate PCB and related industries, and further improve the product layout of one avery (one-stop supply), Enhance the global market share of high-end HDI and hard board high-end products, so as to consolidate and enhance the company's position in the PCB industry. At the same time, actively develop new materials, new products, new processes, new equipment and new technologies, optimize process management efficiency, improve customer service quality, strengthen cost competitiveness, ensure high satisfaction of existing customers and win new customer confidence, Continuously obtain the support and cooperation of new and old customers.
5. Optimize the organization and management structure and fully open the digital transformation
In 2021, the company optimized the organization and management structure, implemented the organization flat management, established the organization development department and professional committee, and created a "streamlined organization" to continuously stimulate the vitality of the organization and improve the management efficiency.
Over the past few years, the company has continued to promote the process of industry 4.0 and the construction of intelligent production and intelligent factory. The new production lines have a high level of intelligent production. At the same time, the company has continued to intelligentize the old production lines, realizing the continuous growth of operating revenue on the basis of maintaining a stable number of employees. In 2021, the company comprehensively launched the digital transformation, upgraded the digital strategy from the production side to the whole enterprise management side, established the digital transformation center, which is personally led by the general manager of the company, and set up the digital transformation Committee and intelligent manufacturing committee to run the digital transformation and upgrading through all levels of the company from top to bottom. In addition to intelligent manufacturing, in terms of human resources, finance Commerce and other departments implement digital transformation, improve management efficiency and decision-making accuracy, realize that the company's management can quickly respond to changes in the market and other external environments, and establish a competitive advantage of sustainable development.
6. Implement equity incentive plan and strengthen talent training and retention
In 2021, the company successfully implemented the Avary Holding (Shenzhen) Co.Limited(002938) 2021 restricted stock incentive plan, granting 10.045 million shares to 286 core technical (business) personnel of the company. Through the implementation of the equity incentive plan, the enthusiasm of the core technical (business) personnel of the company was fully mobilized and the interests of shareholders, the company and employees were effectively combined, It has played a positive role in improving the talent incentive mechanism of the company.
In 2021, the company will strengthen talent training and retention as an important work. In terms of employee training, we should pay attention to cultivating employees' multiple skills. In 2021, the company carried out 7011 courses, with a total of 521081 hours, 1866526 person times and 2658648 hours of training. The company also uses the online learning app Dingsheng e school to launch various courses for employees to learn, with a per capita learning time of 68H. By the end of 2021, the total number of online courseware of Dingsheng e college has reached 3649, the login rate of Dingsheng e college has reached 96.8%, and the learning rate has reached 73.3%. In terms of employee retention, the company attaches importance to promoting and improving various employee reward and punishment, reward and bonus systems, attaches importance to employees' sense of belonging, and actively transforms the environment of each park to provide employees with a better working environment and space.
7. Practice ESG development concept and pay attention to environmental protection, social responsibility and corporate governance
ESG development concept has always been the core concept of the company's development. Since its establishment, the company has emphasized environmental protection and social responsibility, and takes "developing science and technology, benefiting mankind, improving environmental protection and making the earth better" as the company's development mission.
Under the current "double carbon" goal, the company actively promotes low-carbon operation, sets the company's carbon neutralization goal, and promotes low-carbon operation from the aspects of energy transformation and energy efficiency improvement: in terms of energy transformation, the second Huai'an park officially opened Cecep Solar Energy Co.Ltd(000591) power generation in 2020, and has built Cecep Solar Energy Co.Ltd(000591) power generation area of 10300 square meters and annual power generation capacity of 2.1 million kwh, Carbon reduction 1068 tons; In January 2021, the Cecep Solar Energy Co.Ltd(000591) project of Huai'an first park was officially constructed
Completed and grid connected power generation has been realized. The completed Cecep Solar Energy Co.Ltd(000591) area is 4800 square meters and the annual power generation is 1.26 million kwh,
641 tons of carbon reduction; Photovoltaic power generation in Shenzhen No. 1 park is also expected to be completed and put into operation in 2022, and will be open to the public in the future
The company will continue to promote Cecep Solar Energy Co.Ltd(000591) power generation projects in other parks, and actively look for renewable energy partners
We will gradually increase the proportion of clean energy use through the purchase of green energy. In terms of energy efficiency improvement, the company actively
High energy efficiency equipment shall be selected and the process flow shall be continuously optimized to realize the reuse of heat energy and achieve the goal of energy saving.
In 2021, the board of directors of the company deliberated and approved the proposal of establishing " Avary Holding (Shenzhen) Co.Limited(002938) charitable foundation", which was not approved
In recent years, the company will use the fund to protect the environment, carry out vocational education, develop electronic technology and help vulnerable groups
Carry out public welfare activities in sports and responding to other public welfare needs, and practice corporate social responsibility.
2、 Analysis of main financial indicators
(I) analysis of changes in main operating data
In 2021, the company's operation was in good condition, and its operating revenue and profitability maintained a stable growth
The situation of the camp is as follows:
Main operating data in 2021
Unit: RMB 10000
