Securities code: Changchun Engley Automobile Industry Co.Ltd(601279) securities abbreviation: Changchun Engley Automobile Industry Co.Ltd(601279) Announcement No.: 2022003 Changchun Engley Automobile Industry Co.Ltd(601279)
Announcement on 2021 profit distribution plan
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Distribution ratio per share: cash dividend of 0.1 yuan (including tax) for every 10 shares.
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement. If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the distribution proportion unchanged, adjust the total distribution per share accordingly, and announce the specific adjustment separately. Brief reasons for the cash dividend ratio of less than 30% in this year: considering the characteristics of the company's industry, development stage, its own business model, profitability and future capital expenditure arrangement, it is necessary to accumulate appropriate retained earnings for the company's daily business turnover and strategic development needs, improve the overall value of the company and help to realize the long-term return of shareholders.
1、 Contents of profit distribution plan
Audited by PricewaterhouseCoopers Zhongtian Certified Public Accountants (special general partnership), the net profit attributable to the shareholders of the parent company of Changchun Engley Automobile Industry Co.Ltd(601279) (hereinafter referred to as "the company") in 2021 was 148610729 yuan, the statutory surplus reserve was 7412487 yuan, the distributable profit of the current period was 141198242 yuan, and the undistributed profit of previous years was 1209143793 yuan. As of December 31, 2021, The company's profit available for distribution at the end of the period was 1350342035 yuan. According to the resolution of the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 0.1 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 1494253157 shares. Based on this calculation, the total cash dividend to be distributed is 1494253157 yuan (including tax). Cash dividends accounted for 10.05% of the net profit attributable to shareholders of listed companies this year.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the company realized a net profit of 148610729 yuan attributable to the shareholders of the listed company, of which the parent company realized a net profit of 74124872 yuan, the accumulated undistributed profit of the parent company was 335118179 yuan, and the cash dividend to be distributed was 1494253157 yuan, accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. The specific reasons are as follows:
(I) industry situation and characteristics of the company
The automobile industry has become an important pillar industry in China's national economy, and parts, as the upstream industry of the automobile industry, is an important part of the whole automobile industry chain. In recent years, driven by the steady growth of the automobile industry, the overall development of the parts market tends to be good. The regional concentration of China's auto parts industry is high, and most of them form a complete supporting system with the vehicle manufacturing industry. The characteristics of industrial development include two aspects: large industrial space and continuous growth; The competition pattern is scattered, and the average scale of enterprises is small. With the transformation of vehicles from traditional fuel to new energy, vehicle manufacturers have put forward new requirements for technological innovation and process optimization for parts suppliers. The long-term development momentum of the parts industry remains unchanged, and there are still great development opportunities. (II) development stage of the company and its own business model
After years of efforts, relying on the in-depth understanding and rich experience of lightweight materials, and relying on good manufacturing and design capabilities, the company's core technical capabilities have been continuously improved, the industrial scale has been continuously expanded, and the overall industry is in the stage of rapid breakthrough. The company will continuously upgrade its core competitiveness, take market development as the guidance, support and cooperate with vehicle manufacturers in their strategic layout of production capacity in their centralized distribution areas, vigorously improve the level of R & D and production technology, comply with the trend of industrial automation, and improve the efficiency of management and production and operation.
(III) profitability and capital demand of the company
In 2021, the company realized an operating revenue of 45953914 million yuan, a decrease of 8.45% over the same period of last year; The total profit in the same period of the previous year was 24.207 million yuan, a decrease of 16.04% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was 148610700 yuan, a decrease of 10.05% over the same period of last year. With the construction and implementation of raised investment projects, the expansion of the company's production scale and the continuous growth of business, the company has a large demand for working capital in market development, R & D and production.
(IV) reasons for the low level of cash dividends of the company
Focusing on the company's business development strategy, in the next few years, the company still needs capital investment in new product R & D, market development and capacity improvement, so as to strengthen the company's competitiveness and fully realize the goal of maximizing the interests of the company and shareholders.
Considering the characteristics of the company's industry, development stage, its own business model, profitability and future capital expenditure arrangement, it is necessary to accumulate appropriate retained earnings for the company's daily business turnover and strategic development needs, improve the overall value of the company and realize the long-term return of shareholders.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
The undistributed profits retained by the company will be used for the development of the company's core business, supplement the working capital required for operation, support product R & D and market expansion, enhance the company's anti risk ability and core competitiveness, realize the sustainable, healthy and stable development of the company and create greater value for investors.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
At the fifth meeting of the Fourth Board of directors held on March 28, 2022, the company deliberated and adopted the proposal on profit distribution plan for 2021 with 7 affirmative votes, 0 negative votes and 0 abstention votes, which needs to be submitted to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
The company's profit distribution plan for 2021 complies with the relevant provisions of the articles of association and the actual situation and development needs of the company. Fully consider the company's current profitability, cash flow, business development needs, capital needs and other factors, and ensure the reasonable return of shareholders, which is conducive to the healthy, sustainable and stable development of the company. Therefore, it is agreed that the plan and the distribution plan shall be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
The board of supervisors believes that the company's profit distribution plan for 2021 complies with the requirements of relevant laws and regulations and the articles of association, and comprehensively considers the company's business status, future development planning and capital needs. Its decision-making procedures are legal and compliant, which is conducive to the sustainable development of the company and the long-term interests of shareholders.
4、 Relevant risk tips
The profit distribution plan has comprehensively considered the future development of the company and the long-term interests of shareholders, and will not have a significant impact on the company's cash flow and production and operation.
The profit distribution plan can only be implemented after being submitted to the general meeting of shareholders for deliberation and approval.
Please make rational judgment and pay attention to investment risks.
It is hereby announced.
Changchun Engley Automobile Industry Co.Ltd(601279) board of directors March 30, 2022
