Securities code: Shanghai Tianyong Engineering Co.Ltd(603895) securities abbreviation: Shanghai Tianyong Engineering Co.Ltd(603895) Announcement No.: 2022026 Shanghai Tianyong Engineering Co.Ltd(603895)
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 tips:
Distribution ratio: cash dividend of 0.10 yuan (including tax) for every 10 shares of a shares.
Based on the total share capital registered on the equity distribution registration date, the specific date will be specified in the equity distribution implementation announcement.
The reason why the cash dividend ratio of this year is less than 30% is mainly to support the company’s long-term strategic development. The company plans to expand the capacity construction of lithium battery equipment, expand lithium battery intelligent equipment, photovoltaic intelligent equipment, automobile manufacturing, logistics storage, digital chemical plant and other businesses, and the amount of newly signed and intended orders is increasing, which provides strong support for the company’s sustainable development, A certain profit shall be reserved for investment capital and daily production and operation.
1、 Contents of profit distribution plan
Audited by Tianzhi International Certified Public Accountants (special general partnership), the company’s 2021 annual financial report shows that the net profit attributable to the shareholders of the parent company in 2021 is 721765579 yuan, the company has withdrawn 10% of the statutory surplus reserve of 157114808 yuan, the distributable profit of that year is 348490771 yuan, and the distributable profit at the end of the reporting period is 9478092254 yuan. Based on the above situation, in accordance with the company law and the articles of association and other provisions, and through the resolution of the board of directors, the profit distribution plan proposed by the company is as follows:
Based on the total share capital on the registration date of dividends and dividends, cash dividends of 0.10 yuan (including tax) are distributed to all shareholders for every 10 shares, with a total of 1080800 yuan (including tax); In this year, the capital reserve will not be converted into shares and bonus shares will not be given. The remaining undistributed profits are carried forward to the following years.
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
1. Industry situation and characteristics of the company
The main market segment of the company is the intelligent equipment industry, and the downstream industries are mainly traditional vehicles, new energy vehicles, new energy lithium battery manufacturers, digital chemical plants, etc. According to the data, by 2021, China’s lithium battery equipment market had reached 57.5 billion yuan, an increase of more than 100% year-on-year in 2020, mainly due to the rapid development of power field and the booming production and sales of new energy vehicles. With the surge in demand for power batteries, the lithium battery equipment market has ushered in a new round of high growth. Secondly, with the development of downstream industries, the demand structure of lithium battery market has changed, and product transformation and equipment renewal have further expanded the market demand of lithium battery equipment. In recent years, the transformation and upgrading of key industries in the national economy, the cultivation and growth of strategic emerging industries and the constraints of energy, resources and environment have put forward higher requirements for the intelligent manufacturing equipment industry and provided a huge market space. In the next 5-10 years, China’s intelligent manufacturing equipment industry will usher in an important period of strategic opportunities for development.
2. Development stage of the company and its own business model
At present, the company is in the growth stage. According to the company’s overall business development strategic plan, the company has a large expenditure on R & D investment, expanding the capacity construction of lithium battery equipment, expanding lithium battery intelligent equipment, photovoltaic intelligent equipment, automobile manufacturing, logistics storage, digital chemical plant and other businesses, and the amount of newly signed and intended orders is increasing, which provides a strong support for the company’s sustainable development, and a certain profit should be reserved for investment capital and daily production and operation.
According to the needs of customers with different characteristics, the whole time span of the project from early research and development to production and then to the final installation and commissioning is long. In addition to the long accounting period, the time for the company to receive customers’ funds is also relatively long. The company usually adopts the payment period method of 3-3-3-1. When the customer pays the deposit, the company has begun to invest in R & D and production and manufacturing preparation, including the establishment of R & D team and the purchase of various materials and processed parts. In addition, the increase of business orders in recent years, so the company has a great demand for funds.
3. Profitability and capital demand of the company
As of December 31, 2021, the total assets of the company according to the consolidated statements are 145673997115 yuan, and the total net assets are 59994653812 yuan. In 2021, the operating income was 50376094777 yuan, a year-on-year decrease of 0.62%; The total profit was -44539745 yuan, a year-on-year increase of 116.95%; The net profit attributable to the shareholders of the company was 721765579 yuan, a year-on-year decrease of 40.86%; The net cash flow from operating activities is -18042070945 yuan. The amount of newly signed orders is on the rise, and the company is expected to have a large capital demand in the future.
4. Reasons for the low cash dividend level of the company
Based on the long-term interests of shareholders and in combination with the company’s overall business development strategic plan, the board of directors of the company puts forward
2021 annual profit distribution plan with cash dividend of 0.10 yuan (including tax) for 10 shares. The profit distribution plan of the company is in line with the actual situation of the company, which is conducive to reducing the financial burden of the company and realizing the overall operation and development strategic planning of the company. It not only meets the cash dividend return to investors, but also ensures the capital demand for the subsequent development of the enterprise. 5. The exact purpose of retained undistributed profits of listed companies and expected earnings
The retained undistributed profits of the company are mainly used to develop the main business and supplement the production and operation funds of the company, so as to improve the profitability of the company, maintain the sustainable and stable development of the company and better repay investors, which is in line with the future development of the company and the long-term interests of shareholders.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 22nd Meeting of the second board of directors on April 29, 2022. The proposal on the company’s profit distribution plan in 2021 was considered and approved by 7 votes in favor, 0 votes against and 0 abstentions, and agreed to submit the proposal to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
The independent directors believe that the board of directors of the company has carefully considered the current operation and capital demand of the company’s business development, balanced the current capital demand and future development investment of the company, took into account the immediate and long-term interests of shareholders, and used the remaining undistributed profits at the end of the year for order expansion and business cost investment. The plan takes into account the development status and sustainable operation ability of the company, which is conducive to making the company’s main business bigger and stronger. On the basis of expanding the production scale and increasing the market share, the plan further improves the product quality and R & D ability, improves the industry status of the company, and better reports back to the majority of investors.
The proposal has fulfilled the necessary deliberation procedures and complies with the provisions of the company law, the guidelines for the supervision of listed companies No. 3 – cash dividends of listed companies, the guidelines for cash dividends of listed companies of Shanghai Stock Exchange and other relevant laws and regulations, as well as the articles of association. We agree to the proposal and agree to submit it to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The board of supervisors believes that the plan conforms to the principle of profit distribution and better protects the interests of shareholders on the premise of ensuring the normal operation and long-term development of the company. Considering the characteristics of the company’s industry, development stage, its own business model, profitability and future capital expenditure arrangement, and from the perspective of balancing the company’s current capital demand and future development investment, shareholders’ short-term cash dividend return and medium and long-term return, this profit distribution scheme is conducive to the company’s main business to become bigger and stronger, and on the basis of expanding production scale and increasing market share, Further improve the product quality and R & D capability, improve the industry status of the company, and better repay the majority of investors. The proposal has fulfilled the necessary deliberation procedures and complies with the provisions of the company law, the guidelines for the supervision of listed companies No. 3 – cash dividends of listed companies, the guidelines for cash dividends of listed companies of Shanghai Stock Exchange and other relevant laws and regulations, as well as the articles of association. We agree to the proposal and agree to submit it to the general meeting of shareholders for deliberation.
4、 Risk tips
This profit distribution plan combines the company’s business operation, future development capital demand and other factors, and will not have a significant impact on the company’s operating cash flow, and will not affect the company’s normal operation and long-term development. The profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of the company for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Shanghai Tianyong Engineering Co.Ltd(603895) board of directors April 30, 2022
