Company code: 688151 company abbreviation: Huaqiang technology Hubei Huaqiang Technology Co., Ltd
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes 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 should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2 major risk tips
The company has described in detail various risks and countermeasures that the company may face in the process of operation in this report. Please refer to "IV. risk factors" in "section III Management Discussion and analysis" of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. The audit report issued by the general accounting firm (Daxin) has no qualified opinion for the general accounting firm. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
The company held the 15th meeting of the first board of directors on March 25, 2022 and passed the proposal on profit distribution plan in 2021. Audited by Daxin Certified Public Accountants (special general partnership), as of December 31, 2021, the distributable profit of the parent company at the end of the period was RMB 29135215030.
The company plans to distribute a cash dividend of 3.35 yuan (including tax) to all shareholders for every 10 shares based on the total share capital registered on the date of equity distribution. As of December 31, 2021, the total share capital of the company is 34450000000 shares. Based on this calculation, the total cash dividend to be distributed is 11540750000 yuan (including tax). The company's cash dividends accounted for 36.04% of the net profit attributable to shareholders of the parent company in this year. If the total share capital of the company changes from the date of disclosure of the profit distribution plan in 2021 to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged, adjust the distribution proportion per share accordingly, and announce the specific adjustment separately.
The profit distribution plan needs to be submitted to the 2021 annual general meeting for deliberation and approval. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
RMB common stock (a) Shanghai Stock Exchange Huaqiang technology 688151 is not applicable
(1) Kechuang board
Company depositary receipts profile
□ applicable √ not applicable
Contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Zhao Xiaofang song Yan
Office address: No. 499, Donglin Road, pianyuan, Yichang District, China (Hubei) free trade zone
Tel: 07176347288
E-mail [email protected]. [email protected].
2. Introduction to the company's main business in the reporting period
（1） Main business, main products or services
1. Main business conditions
The company is a professional anti chemical military enterprise in China, focusing on the field of special protection. It mainly produces individual protective equipment and collective protective equipment, so as to improve the survival and combat ability of all Chinese services and arms under the condition of nuclear, chemical and biological threats; At the same time, relying on technical advantages, we will actively explore the market of civilian products such as medical packaging and medical devices. During the reporting period, the company's main business is the R & D, production and sales of special protective equipment, pharmaceutical packaging and medical device products.
2. Main products or services
(1) Personal protective equipment
The company's personal protective equipment is mainly gas suits and gas masks. The company is a professional manufacturer of breathable anti-virus clothing in our army. It undertakes or participates in the development of China's first, second and third-generation breathable anti-virus clothing, grasps the key technology of the whole process of R & D and production, and provides reliable equipment in active service for our army. The gas masks produced by the company are the special gas masks for the latest generation of chemical warfare soldiers of our army. At the same time, they can also be used to equip sectorau troops to reduce the impact of altitude reaction on combat effectiveness.
(2) Collective protective equipment
The company's collective protective equipment mainly includes cooperative supporting products and surrender army products. Among them, cooperative supporting products are divided into prefilters, air inlet components, particle filters, filter absorbers, poison filtering and ventilation devices according to different functions, which are supplied to other military industrial units for installation and integration. Surrender army products include large-scale collective protective systems, which are directly supplied to military forces.
(3) Pharmaceutical packaging and medical devices
Medical packaging and medical device products mainly include medical butyl rubber stopper, multi-layer coextrusion film, medical mask, medical protective clothing, etc. The pharmaceutical butyl rubber stopper products of the company include conventional rubber stopper, film covered rubber stopper and rubber components for pre filling and sealing syringes. The company takes the lead in realizing the intellectualization of the production process of medicinal butyl rubber stopper in China, and has established long-term cooperative relations with many pharmaceutical enterprises. Since the outbreak of covid-19 epidemic, the company has become the covid-19 vaccine matching rubber stopper of biological products research institutes in Beijing, Wuhan, Chengdu and Lanzhou under Sinopharm group
As the core supplier of covid-19 vaccine, covid-19 vaccine has been successfully launched and put into mass production.
The company's medical device business includes medical disposable protective clothing, disposable medical mask, medical surgical mask, medical protective mask and other medical protective products. The company has been placed under the State Council's response to the joint prevention and control system of New Coronavirus pneumonia, and the medical materials guarantee group has been listed under the normalization of epidemic prevention and control.
（2） Main business model
3. Procurement mode
The company has established standardized procurement work, supplier management and other processes to carry out procurement according to annual, monthly and temporary procurement demand plans. The materials qualified for bidding procurement shall be purchased through bidding. The suppliers of key and important materials shall be selected from the list of qualified suppliers. The materials purchased in general batches for products shall be purchased through inquiry and price comparison. The priced special materials shall be purchased directly from multiple sources or single source according to the number of qualified suppliers. The procurement of strategic materials and specific suppliers shall be implemented through cooperation and negotiation.
According to the importance, the company's suppliers are divided into five categories: key and important suppliers of military products, general suppliers of military products, suppliers of key and important materials of civil products, suppliers of general materials of civil products and other suppliers. The company implements classified management on the development, tracking and evaluation, rewards and punishments, changes, etc. of suppliers, and regularly evaluates the quality level, price level, delivery ability and after-sales service ability of suppliers, The evaluation results shall be used as the adjustment basis for the list of qualified suppliers and the reference basis for the distribution of supply proportion.
4. Production mode
The company's military products production shall be carried out in strict accordance with military standards, and the military representative shall implement real-time supervision. The company conducts centralized and centralized scheduling of military products, arranges production according to order requirements, and purchases plans, production plans and outsourcing plans (if necessary) after making sales contracts with customers or receiving customer orders, and organizes production according to the delivery order plan.
Civil products mainly adopt the production mode of setting production by sales and appropriate inventory. According to the requirements of the market department, the production is organized according to the market demand, so as to quickly respond to the customer's order demand.
5. Sales model
The company's products can be divided into military products and civil products according to the type of end customers, and the sales mode is different.
Military products mainly include five modes: open bidding, invitation bidding, competitive negotiation, single source and inquiry. The company's projects and products are mainly single source and competitive negotiation.
In terms of civil products, the company adopts market-oriented sales and direct sales mode, mainly expanding business through self built sales team and directly connecting with end customers. The company follows up the needs of potential customers and becomes a qualified supplier after passing the customer verification and investigation. After signing the contract, the company processes the order information and executes the approved order. In addition, the company collects customer opinions and gives information feedback to improve the quality of products and services.
（3） Industry situation
1. Development stage, basic characteristics and main technical threshold of the industry
(1) Special protection industry
① Development stage of the industry
With the steady growth of the military industry, China's special protective equipment industry has achieved rapid development. China has focused on building a national defense and army commensurate with China's international status and national security and development interests, further narrowing the gap with the world's advanced military level, and the scale of national defense expenditure has maintained a steady growth, providing a solid guarantee for the fundamentals of China's military industry. At the same time, with the successive implementation of various measures of military reform, the organization and management system is further optimized, the military needs to ensure the improvement of combat effectiveness while reducing redundant personnel, the demand for advanced military equipment is further enhanced, and the proportion of equipment cost shows a continuous upward trend.
At this stage, the international nuclear, chemical and biological threat is still serious. Although the international community has signed the Treaty on the prohibition of nuclear weapons, some countries have not participated, and there are still cases of continuously improving the quality of nuclear weapons or developing low yield nuclear weapons; The Convention on the prohibition of chemical weapons has been in force for many years, but the destruction of chemical weapons has not ended. In recent years, there have been many non war uses of chemical agents, and biological threats, including infectious diseases, still exist. As an important part of military nuclear, chemical and biological protection, special protection has become an important factor of national strategic security. With the prominence of nuclear, chemical and biological threats and the increasing importance of special protective equipment, confined spaces, personnel and equipment should have basic nuclear, chemical and biological defense capabilities.
In the field of civilian products, special protective equipment has played an important role in dealing with public events such as 2003 SARS, 2015 Tianjin Port Co.Ltd(600717) "8.12" explosion, and 2020 COVID-19 epidemic. With the growing awareness of personal self-protection and health, the demand for national emergency rescue has increased rapidly, and the demand for civil products market has shown a rapid growth trend.
② Basic features
China has built a modern and complete military industrial system. The military industry has become an important material and technological foundation of national defense modernization, the backbone of weapon development and production, an important part of the national scientific and technological innovation system and advanced manufacturing industry, and an important driving force for social development and scientific and technological progress.
The special protection industry mainly deals with CBRN threats such as chemical agents, biological warfare agents, radioactive substances and nuclear threats. In addition to dealing with the operational use scenarios of traditional nuclear, chemical and biological weapons, special protection gradually extends to secondary nuclear and chemical hazards, nuclear, chemical and biological terrorism, nuclear and chemical accidents, natural disasters, sudden epidemics and other scenarios, such as Tianjin Port Co.Ltd(600717) "8.12" explosion, Wenchuan earthquake, covid-19 epidemic, etc, It is widely used in public safety and emergency rescue to provide protection capability for urban ordinary public security forces and equipment. Civil air defense equipment is also an important application of special protection. Civil air defense equipment is used in the field of real estate industry, urban rail transit and other underground space protection with different protection levels.
③ Technical threshold of special protection industry
The special protective equipment that the company has undertaken is specially innovative and advanced in terms of technical route, protection time, performance index, intelligence and information technology. Some products are equipped with active equipment for the army, which can guarantee the viability of the army's nuclear and biochemical threats, and participate in the military's pre research and major scientific research projects, laying the foundation for research and development and accumulation of technology for the next generation of equipment.
(2) Pharmaceutical packaging and medical device industry
① Development stage of the industry
The pharmaceutical packaging industry is closely related to the overall development of the pharmaceutical industry. With the growth of global population and the acceleration of social aging, the global pharmaceutical product market maintains a rapid growth trend.
In recent years, with the development of economy and society and the improvement of residents' income level, Chinese residents' health awareness has gradually improved. According to the national statistical bulletin on the development of Medical Security published by the National Medical Security Bureau, in 2019, the total medical expenses of employees participating in medical insurance increased by 15.3% year-on-year, and the per capita medical expenses increased by 12.4% year-on-year; In 2020, affected by covid-19 epidemic and other factors, relevant expenses decreased to a certain extent. Excluding the special factors of covid-19 epidemic, as far as the overall trend is concerned, the growth of China's medical expenses continues to be faster than the growth of national GDP, the financial subsidies for medical treatment have increased steadily, and the absolute personal health expenditure has increased year by year. In addition to the large population base, it not only provides broad space for the future development of the pharmaceutical industry, but also brings new opportunities to the upstream pharmaceutical packaging material industry. ② Basic features
The pharmaceutical rubber stopper industry is closely related to the downstream pharmaceutical industry. Pharmaceutical butyl rubber stopper is widely used in injections, vaccines, biological agents and antibiotics
