Company code: 688210 company abbreviation: Tonglian precision Shenzhen oceanwide Tonglian Precision Manufacturing Co., Ltd. 2021 Annual Report
To shareholders
Dear shareholders
In recent years, the epidemic has continued to spread and recur all over the world, superimposed on marginal political conflicts, followed by supply chain crisis, energy crisis and inflation crisis. The road of world economic recovery is full of hardships and twists and turns. However, when the seeds break through the earth, they will not go there. They will not consider whether they encounter wind and rain or sunshine. They have to choose to work hard. Adhering to this belief, through unremitting efforts, the company has achieved counter trend growth in uncertainty and completed the milestone goal of listing on the science and innovation board.
In 2021, despite the impact of core shortage and exchange rate fluctuations, the company's profitability fluctuated, and the net profit attributable to the owner of the parent company was 4743730123 yuan, a year-on-year decrease of 30.94%. However, the company abides by the business philosophy of "integrity, innovation, pragmatism and diligent thinking", actively responds to various risks in operation, and the overall operation is relatively stable and healthy. The details are as follows:
1. The company maintains strategic concentration and market sensitivity, pays close attention to customer needs and market development and changes, and takes timely measures to ensure business stability and risk prevention. During the reporting period, the company's operating income was 35453362545 yuan, an increase of 5.42% over the previous year; The net cash flow from operating activities was 7910747271 yuan, a year-on-year increase of 140.01%; The asset liability ratio was 25.18%, a decrease of 8.27 percentage points over the previous year.
2. Focusing on its main business, the company consolidated its core competitiveness and further increased its R & D investment. During the reporting period, the R & D investment of the company was 4154125609 yuan, an increase of 31.41% over the previous year, accounting for 11.72% of the operating revenue, mainly focusing on the R & D of customized feed, the application of new materials such as titanium alloy, magnetic materials and mixed dual materials, the R & D of processes such as chromizing and high-strength welding, and the automation of the whole process. In addition, the company has obtained 8 new authorized patents and applied for 12 new patents.
3. The company continues to increase the investment in production equipment. On the one hand, the company complies with the needs of customers' new product lines, adds precision injection molding, laser cutting, CNC and other equipment, and arranges large-scale production capacity, providing customers with diversified process choices and solutions, which further enhances the stickiness of customers of the company; On the other hand, the post-processing process of some MIM products is changed from outsourcing to self-made, which not only improves the production efficiency and yield, but also enhances the company's precision manufacturing capacity.
4. Relying on the internal automation R & D force, gradually realize the upgrading of customized product production process from single process automation to full process automation and intelligence, improve efficiency and enhance profitability. Digitalization and informatization upgrading of operation management system, further optimize resource allocation and effectively improve operation efficiency.
5. With the help of Dongfeng, which is "specialized and innovative", the company successfully landed on the science and Innovation Board of Shanghai Stock Exchange and passed a milestone of extraordinary significance in the process of development.
All the past is a prelude! As a recruit in the capital market, I also know that listing is only a node in the process of enterprise development, and becoming a public company also means that I will bear more responsibilities. Here, with this first shareholder letter after listing, I hope to let you know more about Tonglian precision, a company based on MIM and committed to precision manufacturing, its persistence and value, its tomorrow and future.
Zhu Ziyun: "if one heart is right, everything will be right." The same is true of enterprises. Only by adhering to their original intention can they continuously absorb the source of strength for stable, sustainable and healthy development and become an important force with long-term value and promoting national development and social progress. For UnionPay precision, precision manufacturing is the "positive" we adhere to, and process innovation is the "fundamental" we adhere to.
The consumer electronics industry has the characteristics of rapid product and technology change. In recent years, new consumer end products such as TWS, folding screen mobile phones, smart glasses and e-cigarettes have emerged one after another, and the stock market space is broad. In addition, the downstream fields of MIM applications are still expanding. Due to the wide application range of applicable materials, with the continuous maturity of the industry, MIM is also accelerating its penetration into automotive, medical and other sophisticated fields. At the same time, higher technical barriers and greater research and development difficulties. Under the trend of transforming the development logic into the two wheel drive of R & D and sales, MIM enterprises with strong R & D ability will seize the first opportunity in the product upgrading iteration.
In addition, in the past few years of focusing on MIM, we found that MIM is very open and has strong vitality. MIM is a "near net shape" technology for parts and components, which integrates plastic forming technology, polymer chemistry, powder metallurgy technology and metal materials. On the one hand, due to the high degree of integration with new materials, MIM natural drive manufacturers have increased their investment in new materials and their applications. On the other hand, MIM post-treatment process almost covers the manufacturing process of mainstream applications. Therefore, in the field of precision manufacturing, MIM can not only break through the manufacturing limitations of traditional processes and complement each other, but also be an ideal R & D field for new materials and their applications. It can provide a realistic basis for cutting into the upstream industry, but also help to solve the pain points and difficulties of precision manufacturing technology from the source. Moreover, MIM belongs to additive manufacturing, which is homologous with 3D printing, an important development direction of manufacturing technology in the future, which is conducive to the company's advancement from precision manufacturing to ultra precision manufacturing.
In the future, we will continue to make intensive efforts in the field of precision manufacturing. Adhere to the principle of seeking truth from facts and formulate a forward-looking and effective development strategy to ensure that the whole company works in the right direction. On the premise of accurately grasping the macroeconomic development trend, industry development direction, industrial policy and dynamics, make full use of internal and external resources, and explore the development route with the characteristics of unified precision, so as to grasp the initiative of future development. Looking ahead, our priorities are as follows:
1. We will continue to increase investment in research and development and strengthen the construction of core technological capabilities
The company will continue to focus on the innovation and iteration of materials, processes and equipment, increase R & D investment and strengthen the construction of core technical capacity. Specifically, it includes the following aspects: first, continuously increase the investment in the bottom research of material properties and parameters, so as to master more customized feeding blending technology, improve the ability of self-made and self-developed feeding, and provide a more solid practical possibility for the independent development of feeding. The second is to superimpose the continuous in-depth analysis and Research on the basic technology of manufacturing process, and continuously extend and expand the boundary of material application. In addition, to meet the needs of customers, expand the large-scale production capacity of other manufacturing processes with common and synergistic effects with MIM process, such as precision injection molding, CNC and laser cutting. Through the mutual nourishment between MIM and other manufacturing processes, the company continues to enrich its product line and expand the application field of its products. Third, strengthen the research on cutting-edge technologies such as 3D printing, enrich technical reserves, and accelerate the transformation and implementation of relevant research results, so as to cultivate and expand new business growth points.
Fourth, take the realization of the intellectualization of the whole process as the focus of R & D investment. On the basis of realizing the automation of single process, continue to promote the linkage automation of multiple processes and continuously improve the production efficiency and yield.
2. Continue to adhere to the strategy of serving key customers and deepen the cooperative relationship with customers
The company will continue to adhere to the strategy of serving key customers and continuously deepen the cooperative relationship with customers. On the one hand, the company will continue to cultivate its existing major customers. While doing a deep job in existing businesses and products, the company will "follow the route of" old customers and new products "and carry out a new business layout around the strategic needs of existing major customers. On the other hand, with the good reputation and reputation in the industry established by innovative technical solutions, rapid response and high-quality delivery, the company brings relevant mature experience and resources to new customers and new fields, so as to create more value in the process of serving more customers.
3. Accelerate the implementation of raised investment projects and optimize the allocation of resources
Accelerate the construction of the company's raised investment projects in Changsha, Hunan, and gradually put into operation according to customer needs. At present, the company's plants are mainly distributed in the leased plants located in Longhua, Pingshan and Huizhou in Shenzhen, and the site utilization rate is close to the limit. With the implementation and operation of the raised investment project, it can not only supplement the production capacity of the company's existing product line and form synergy; It also helps the company to introduce talents and technical resources from nearby colleges and universities, and further enrich the company's talent and technical reserves.
4. Improve the utilization rate of funds and prevent financial risks
The company will deepen cooperation with professional institutions, make full use of relevant financial instruments in the market that meet the needs of the company, improve the utilization efficiency of temporarily idle funds, reduce financial expenses, reduce exchange losses and prevent financial risks.
"The tree that embraces comes from the slightest bit; the platform of nine floors starts from the tired soil." With the continuous of black swan and grey rhinoceros and the increasing uncertainty of the external environment, we will continue to adhere to integrity-based and innovation as the road, with a view to stability and long-term development.
Finally, I sincerely thank all shareholders for their confidence in the long-term and stable development of the company and their trust and tolerance to the management of the company!
Yang Hu, chairman of Shenzhen oceanwide Tonglian Precision Manufacturing Co., Ltd., April 29, 2022
Important tips
1、 The board of directors, board of supervisors, directors, supervisors and senior managers of the company guarantee the authenticity and accuracy of the contents of the annual report
Integrity, no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 2、 The company is not profitable and has not achieved profit when it is listed □ yes √ no III. Major Risks suggest that the company has described in detail the relevant risks that it may face in the process of production and operation in this annual report. For details, please refer to the relevant contents in Section III, IV and "risk factors" of this report. 4、 All directors of the company attended the board meeting. 5、 Tianzhi International Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 6、 Yang Hu, the person in charge of the company, hou can, the person in charge of accounting, and Hou cansheng, the person in charge of accounting organization (Accounting Supervisor)
Note: ensure that the financial report in the annual report is true, accurate and complete. 7、 The profit distribution plan for the reporting period or the plan for converting accumulation fund into share capital adopted by the board of directors is as follows: 1 The company plans to distribute profits based on the total share capital registered on the date of equity distribution, and plans to distribute a cash dividend of 2 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 80000000 shares. Based on this calculation, the total cash dividend to be distributed is 1 Shanghai Pudong Development Bank Co.Ltd(600000) 000 yuan (including tax). The company's cash dividend accounts for 33.73% of the net profit attributable to the shareholders of the parent company in this year. After this profit distribution, the remaining undistributed profits are accumulated and distributed in future years. 2. The company plans to increase 4 shares for every 10 shares to all shareholders with capital reserve. As of December 31, 2021, the total share capital of the company is 80000000 shares, which is calculated to add a total of 32000000 shares. After the capital reserve is converted, the total share capital of the company is 112000000 shares. 3. In 2021, the company did not send shares. 4. If the total share capital of the company changes before the date of equity distribution and equity registration, the company plans to keep the total distribution unchanged and adjust the distribution proportion per share accordingly. The company's profit distribution plan for 2021 has been deliberated and approved at the 14th meeting of the first board of directors, and needs to be submitted to the company's 2021 annual general meeting for deliberation and approval. 8、 Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable IX. risk statement of forward-looking statements √ applicable □ not applicable
This report involves forward-looking statements such as future plans and does not constitute the company's substantive commitment to investors. Please pay attention to investment risks. 10、 Whether there is any non operational occupation of funds by the controlling shareholders and their related parties no Xi. Whether there is any external guarantee in violation of the specified decision-making procedures no XII. Whether more than half of the directors cannot guarantee the authenticity, accuracy and completeness of the annual report disclosed by the company no XIII. Others □ applicable √ not applicable
catalogue
Section 1 interpretation Section 2 company profile and main financial indicators 10 section III Management Discussion and Analysis Section IV corporate governance Section V environment, social responsibility and other corporate governance 66 section VI important matters Section VII changes in shares and shareholders 96 Section VIII preferred shares Section IX corporate bonds 105 section x financial report one hundred and six
1、 Financial statements containing the signatures and seals of the person in charge of the company, the person in charge of accounting work and the person in charge of accounting organization (Accounting Supervisor).
Catalogue of documents for future reference II. The original audit report with the seal of the accounting firm and the signature and seal of the certified public accountant.
3、 The originals of all company documents and announcements publicly disclosed on the designated information disclosure media of the company during the reporting period.
Section I interpretation
1、 Interpretation in this report, unless the context otherwise requires, the following words have the following meanings: Interpretation of common words
The company, the company and Tonglian refer to Shenzhen oceanwide Tonglian Precision Manufacturing Co., Ltd
Precision and oceanwide unification
Oceanwide United Precision Manufacturing Co., Ltd. refers to Shenzhen oceanwide United Precision Manufacturing Co., Ltd
