Securities code: Hebei Huatong Wires And Cables Group Co.Ltd(605196) securities abbreviation: Hebei Huatong Wires And Cables Group Co.Ltd(605196) Announcement No.: 2022028 Hebei Huatong Wires And Cables Group Co.Ltd(605196)
Announcement on annual profit distribution plan in 2021
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:
All shareholders will pay a cash dividend of 0.24 yuan (including tax) for every 10 shares.
The profit distribution is planned to distribute the profit of 2021 to all shareholders based on 506822098 ordinary shares, and the specific date will be specified in the announcement on the implementation of equity distribution. If the total share capital of the company changes before the equity registration date of equity distribution, the distribution proportion per share will remain unchanged, the total distribution will be adjusted accordingly, and the specific adjustment will be announced separately.
1、 Contents of profit distribution plan
According to the audit of the accounting firm, as of December 31, 2021, the net profit of Hebei Hebei Huatong Wires And Cables Group Co.Ltd(605196) Group Co., Ltd. (hereinafter referred to as "the company") attributable to the shareholders of the listed company in 2021 was RMB 11776781310. According to the resolution of the board of directors, the company plans to distribute in 2021 based on the total share capital as of December 31, 2021. The profit distribution plan is as follows:
1. The company plans to distribute cash dividends of 0.24 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 506822098 shares. Based on this calculation, the total cash dividends to be distributed are 1216373035 yuan (including tax), accounting for about 10.33% of the net profit attributable to the parent company of the listed company in 2021, and the remaining undistributed profits are carried forward to the next year.
2. If the total equity distribution of the company remains unchanged from the date of disclosure of the announcement to the date of implementation of the total equity distribution of the company, 2. If the proportion of the total equity distribution of the company remains unchanged from the date of implementation of the announcement. 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
(I) industry situation and characteristics of the company
As one of the largest supporting industries in the national economy, the wire and cable industry is known as the "blood vessel" and "nerve" of the national economy, and has a wide range of application industries. Therefore, the cable industry will have a good development momentum, which is an opportunity for the company. With the national industrial adjustment and the development of emerging industries such as rail transit, aerospace, Siasun Robot&Automation Co.Ltd(300024) , new energy vehicles and charging piles, big data and 5g communication, the demand for special cables with the functions of high temperature resistance, high strength bending resistance, extreme cold resistance, strong acid and alkali resistance is gradually increasing, and the use environment is becoming more and more complex, which is a challenge to the company's production and R & D speed. In order to comprehensively improve the company's core competitiveness, sustainable development ability and market share, and consolidate the leading position in the industry. On the one hand, the company invests heavily in cable research and development to speed up research and development, in order to achieve industry product leadership; On the other hand, actively promote the international industrial layout, invest in the construction of special cables, submarine cables, UHV cables and other fields, promote the extension and development of the industrial chain, provide standardized and differentiated products for customers at home and abroad through multi-channel sales modes such as direct sales, distribution and e-commerce, improve the market share of international Chinese products and enhance the overall profitability of the company's main business.
(II) development and operation of the company
The company is a manufacturer engaged in wire and cable R & D, production and sales. The company's leading products include medium and low voltage power cables represented by incoming lines, and electrical equipment cables represented by submersible pump cables, mining and general rubber sheathed flexible cables. The company always adheres to the enterprise spirit of "quality is as important as life and responsibility is more important than Mount Tai". Guided by science and technology and based on scientific management, the company continues to develop new products and expand market fields. At present, it has become a modern wire and cable manufacturing enterprise with a leading position in many subdivided fields. At present, the company is in the period of industrial upgrading and capacity expansion. In order to maintain a high market share, it must increase investment, expand capacity, strengthen innovation and R & D, maintain sustainable innovation ability and vigorously expand markets at home and abroad. As the wire and cable industry where the company is located is a capital intensive industry, and the company is in the stage of rapid development, it needs a lot of funds in promoting the process of the company's development strategy. Therefore, the profit distribution plan of the company is in line with the actual development of the company, which is conducive to reducing the financial burden of the company and realizing long-term development, and giving investors sustainable long-term investment return. (III) profitability and capital demand of the company
During the reporting period, the company achieved an operating revenue of 4.397 billion yuan; The net profit attributable to the shareholders of the listed company was 118 million yuan. In order to effectively promote the smooth realization of the company's strategic objectives and production and operation plans, ensure the long-term and sustainable development of the company, and enhance the company's ability to give long-term and sustainable returns to investors, the company needs to invest a lot of funds to ensure that the expectations are met. Therefore, the company's development requires a large amount of funds. (IV) reasons for the low level of cash dividends
The development of the company's main industry requires a large amount of funds. In order to ensure the normal operation of the company's existing business and the smooth construction of special cables, submarine cables, UHV and other projects, the company has put forward the profit distribution plan for 2021 under the condition of fully considering the company's current business performance and strategic needs and taking into account the needs of long-term sustainable development. The company believes that retained earnings can not only provide the company's anti risk ability, but also ensure the company's future dividend ability, and balance the return of shareholders and the sustainable development of the company, which is in line with the long-term interests of shareholders and future development plans of the company. Therefore, the dividend proportion of the company in 2021 is less than 30%. (V) purpose of retained undistributed profits
The retained undistributed profits of the company will be used to continue to develop the main business expenses of the company, the daily operation of the company and reserve cash for the repayment of short-term loans, which will help to ensure the normal operation of the company, expand the production scale of the company, improve the industrial chain, improve the comprehensive competitiveness of the company and return investors in the long term.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 14th meeting of the third board of directors and the 11th meeting of the third board of supervisors on April 15, 2022, deliberated and adopted the proposal on profit distribution plan in 2021, and agreed to submit the plan to the 2021 annual general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
The profit distribution plan complies with the requirements of the CSRC's guidelines for the supervision of listed companies No. 3 - cash dividends of listed companies, the guidelines for the self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 - standardized operation and the articles of association. It conforms to the actual situation of the company, will not damage the legitimate rights and interests of the majority of investors, and is also conducive to the sustainable development of the company. We agree to submit this proposal to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
The company's 2021 profit distribution plan matches the actual operation of the company, takes full account of the company's 2021 operation status, daily production and operation needs, future development capital needs and other comprehensive factors, is consistent with the company's development plan, is conducive to the company's normal operation and sustainable, healthy and stable development, is in line with the cash dividend policy determined in the articles of association, and has legitimacy, compliance and rationality, There is no situation that damages the interests of investors.
4、 Relevant risk tips
(I) analysis of the impact of cash dividends on earnings per share, cash flow status, production and operation of listed companies this profit distribution plan combines the company's development stage, future capital demand and other factors, and will not have a significant impact on the company's operating cash flow, normal operation and long-term development.
(II) description of other risks
The company's 2021 profit distribution plan needs to be submitted to the company's 2021 annual general meeting for deliberation and approval before implementation. Please pay attention to the investment risks.
It is hereby announced.
Hebei Huatong Wires And Cables Group Co.Ltd(605196) board of directors April 18, 2022
