Hunan Aihua Group Co.Ltd(603989) : summary of annual report for 2021

Company code: Hunan Aihua Group Co.Ltd(603989) company abbreviation: Hunan Aihua Group Co.Ltd(603989) convertible bond Code: 113504 convertible bond abbreviation: Aihua convertible bond Hunan Aihua Group Co.Ltd(603989)

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、 The board of directors, board of supervisors, directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and integrity 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. 3、 All directors of the company attended the board meeting. 4、 Tianzhi International Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 5、 The profit distribution plan or the plan of converting accumulation fund into share capital in the reporting period adopted by the resolution of the board of directors

The company plans to distribute a discovery bonus of 3 yuan (including tax) to all shareholders for every 10 shares based on the total share capital registered on the equity distribution registration date minus the balance of shares in the company’s special repurchase account. As of April 1, 2022, the total share capital of the company is 400814733 shares. After deducting 2280043 shares of the company’s current repurchase account, the total cash dividend to be distributed is 119560407 yuan (including tax). The amount of share repurchase implemented by the company in 2021 is 5261617456 yuan (excluding stamp duty, transaction commission and other related expenses). In 2021, the total amount of repurchase and cash dividend to be distributed by the company accounted for 35.33% of the audited net profit attributable to shareholders of the parent company in 2021. Since the “Aihua convertible bonds” issued by the company in 2018 are in the stock conversion period, and the number of shares of the company held in the company’s special securities repurchase account may still change, the annual equity distribution of the company in 2021 shall be subject to the total share capital that can participate in the profit distribution on the equity registration date of the profit distribution plan, and the total distribution amount shall be adjusted according to the principle of unchanged distribution amount per share. This plan shall be submitted to the 2021 annual general meeting of shareholders of the company for approval.

Section II basic information of the company

1、 Company profile

Company stock profile

Stock abbreviation before stock exchange listing

A-share Shanghai Stock Exchange Hunan Aihua Group Co.Ltd(603989) Hunan Aihua Group Co.Ltd(603989) none

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

Name: AI Yan, Yang Xiang

Office address: taohualun East Road (south side of Zizhu Road) Yiyang taohualun East Road (south side of Zizhu Road)

Tel: 0737618389107376183891

E-mail [email protected]. xiang. [email protected]. 2、 Introduction to the company’s main business during the reporting period

According to the industry classification of Electronic Information Industry issued by the former Ministry of information industry, aluminum electrolytic capacitor manufacturing belongs to the “aluminum electrolytic capacitor” sub industry of electronic components and components manufacturing industry in the electronic components industry; According to the industry classification guidelines for listed companies issued by the CSRC, the company belongs to the “computer, communication and other electronic equipment manufacturing industry” (C39).

Electrode foil is the key raw material for aluminum electrolytic capacitor. According to the industrial classification of Electronic Information Industry issued by the former Ministry of information industry of the people’s Republic of China, the manufacturing of electrode foil belongs to the “aluminum foil material for capacitor” in the manufacturing industry of electronic component materials in the industry of special materials for electronic information products. According to the data of the information center of China electronic components industry association, it is estimated that the global demand for aluminum electrolytic capacitors will be about 151 billion in 2021, with a year-on-year increase of 14.7%. By 2025, it will reach 173 billion, and the five-year average growth rate from 2020 to 2025 will be about 5.6%. Development and forecast of global aluminum electrolytic capacitor market demand from 2018 to 2025

After decades of continuous efforts, China’s capacitor manufacturing industry has made breakthroughs in these years. The continuous localization of main core raw materials and production equipment has further highlighted the advantages of Chinese enterprises, and the penetration rate of domestic substitution of aluminum electrolytic capacitors has increased rapidly. In recent years, due to the superposition of covid-19 epidemic, tight supply of main raw materials and rising energy prices, the aluminum electrolytic capacitor industry has ushered in a reshuffle, and the customer resources and world production capacity continue to favor manufacturers with guaranteed scale, stable production and diversified product categories in China.

(I) main business, main products and uses of the company

The business scope of the company is the production and sales of aluminum electrolytic capacitors and aluminum foil; Manufacturing of equipment for producing capacitors; outbound investment. Since its establishment, the company has been engaged in the production and sales of the above products, and its main business has not changed.

According to the appearance structure of the products, at present, the company’s products mainly include welding needle type, welding chip, bolt type, lead type and vertical chip liquid aluminum electrolytic capacitors, and lead type, vertical chip and laminated chip solid aluminum electrolytic capacitors. Product examples are as follows:

The company’s products are widely used in industrial control, photovoltaic, vehicle mounted, intelligent Siasun Robot&Automation Co.Ltd(300024) , 5g communication, data processing center, power supply, lighting and other multi-dimensional application markets.

(II) business model of the company

The company always adheres to the development vision of “being a world-class national enterprise” and has built a business model of “design + production + sales”. With its complete industrial chain, large-scale intelligent manufacturing and differentiated brand strength, it has been affirmed by the global high-end market and customers. And continuously narrow the distance from the top three in the world in terms of market share. According to the data released by PAUMANOK publication Inc, the world’s largest passive electronic component industry market research and consulting service provider in 2019, the company climbed from the eighth in the world in 2013 to the fourth in the world in 2018.

3、 Main accounting data and financial indicators of the company

Main accounting indicators and data of recent 3 years

Unit: yuan currency: RMB

20212020 compared with 2019 of the previous year

Increase or decrease (%)

Total assets 523176314747434910830134 20.30382672225824

Net assets attributable to listed company shares 304914721905265784573082 14.72228535949709 East

Operating income 323409565209251660315267 28.51225438966478

The net profit of 4873288156638058055153 28.0533765052296 Dong attributable to the shares of listed companies belongs to the shares of listed companies

East’s net profit after deducting non recurring profit and loss of 3694453102931909806637 15.7828436425061

Net cash flow from operating activities: 2909365769626361114506 10.3715588768128

The weighted average net assets closed at 17.09 15.57, an increase of 1.52 percent and 15.59 percent

Profit rate (%) points

Basic earnings per share (RMB 1.22 0.97 26.10 0.87)

/ share)

Diluted earnings per share (RMB 1.21 0.97 25.22 0.86)

/ share)

2. Main accounting data by quarter in the reporting period

Unit: yuan currency: RMB

First quarter second quarter third quarter fourth quarter

(January March) (April June) (July September) (October December)

Operating income 67416149656839930759758665255085185347788727

The net profit attributable to the shareholders of the listed company 11277470795119163561971249661035613042444218 belongs to the shareholders of the listed company

Net profit after deducting non recurring profit and loss of 833463145210035891370105231163488050891859

Net cash flow from operating activities 10215979597260708775219413597703 – 314 Dbg Technology Co.Ltd(300735) 6

Description of differences between quarterly data and disclosed periodic report data

□ applicable √ not applicable

4、 Shareholders

1. Total number of ordinary shareholders, total number of preferred shareholders whose voting rights have been restored and special shares held at the end of the reporting period and the end of the month before the disclosure of the annual report

Total number of shareholders of voting shares and top 10 shareholders

Unit: shares

As of the end of the reporting period, the total number of ordinary shareholders (households) was 13398

The total number of ordinary shareholders at the end of the previous month before the disclosure date of the annual report (households) is 13464

By the end of the reporting period, the total number of preferred shareholders whose voting rights had been restored (households) was 0

Total number of preferred shareholders whose voting rights were restored at the end of last month before the disclosure date of the annual report (households) 0

Shareholding of top 10 shareholders

Holding pledge, mark or freeze

Limited condition

Name of shareholder: increase in the proportion of shares held at the end of the reporting period selling shareholder

(full name) number and nature of shares with reduction (%) pieces

Share status

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