Financial Performance - The company's operating revenue for 2021 was approximately RMB 45.67 billion, a decrease of about 4.64% compared to 2020 [18]. - The net profit attributable to shareholders was a loss of approximately RMB 3.75 billion, a decline of 709.13% year-on-year [18]. - The net cash flow from operating activities was RMB 1.82 billion, down 41.63% from the previous year [18]. - The total assets at the end of 2021 were approximately RMB 51.33 billion, a decrease of 8.78% compared to the end of 2020 [18]. - The company reported a basic earnings per share of -RMB 2.74 for 2021, a decrease of 659.18% compared to 2020 [19]. - The weighted average return on net assets was -27.96%, a decrease of 32.57 percentage points from the previous year [19]. - In 2021, the company achieved total operating revenue of approximately RMB 45.02 billion, with a net profit attributable to shareholders of approximately -RMB 3.79 billion after deducting non-recurring gains and losses [26]. - The total amount of cash flow from operating activities for the entire year was significantly affected by the negative cash flow in Q3 and Q4, leading to a challenging financial position [22]. Market and Industry Trends - The global automotive industry continues to face significant uncertainties due to the COVID-19 pandemic, chip shortages, and international geopolitical conflicts, which may impact overall market performance and business development [5]. - The company remains optimistic about the automotive industry's role as a cornerstone of global manufacturing and is focused on long-term growth despite current challenges [10]. - The automotive industry is undergoing significant transformation towards electrification and intelligence, with increasing investments in key areas such as chip computing power and AI technology [27]. - The penetration rate of new energy vehicles in China reached 354.5 million units produced and 352.1 million units sold, with year-on-year growth of 159.5% and 157.5% respectively [27]. Strategic Initiatives and Acquisitions - The company completed the acquisition of high-quality assets from Takata, becoming the second-largest automotive safety supplier globally, enhancing its strategic goals in the automotive safety sector [9]. - The company is committed to integrating the assets of KSS and Takata, with a focus on restructuring and evaluating global operations to achieve a unified new entity [10]. - The company is actively expanding its domestic market presence by collaborating with various domestic brands and new energy vehicle manufacturers [26]. - The company has established a strategic partnership with Huawei for smart cockpit solutions, aiming for mass production in Q4 2022 [33]. Operational Challenges - The company has faced rising prices of bulk commodities and global shipping costs, which have impacted its operational strategies [10]. - The company faced significant impacts from the global pandemic and chip shortages, affecting both revenue and profit margins [20]. - The company reduced its workforce in the automotive safety division by approximately 8,500 employees compared to the end of 2020 as part of its restructuring efforts [26]. - The company is actively negotiating compensation plans with OEM clients and suppliers to address the impact of rising raw material and transportation costs [37]. Research and Development - Total R&D investment amounted to ¥3.09 billion, representing 6.76% of total revenue, with capitalized R&D accounting for 24.01% of the total [51]. - The company has over 5,000 patents globally, showcasing its strong capabilities in automotive safety and electronics technology [31]. - The company is actively developing integrated electric control modules to align with trends in automotive lightweighting and modularization [34]. - The company has implemented a global training program for production and operations personnel to improve integration and adapt to changes in the automotive industry [120]. Corporate Governance and Compliance - The company held a total of 10 board meetings during the reporting period, ensuring compliance with decision-making procedures and information disclosure obligations [89]. - The company has established an internal control management system and conducted a comprehensive evaluation of its effectiveness, confirming no significant defects in financial reporting controls [94]. - The company has not faced any penalties from securities regulatory authorities in the past three years, indicating compliance with regulations [108]. - The company has implemented a management system for insider information to enhance confidentiality and protect investor rights [93]. Shareholder and Investor Relations - The company distributed a cash dividend of 1.5 RMB per 10 shares (including tax), totaling 203,862,693.60 RMB based on a share base of 1,359,084,624 shares after excluding 9,000,000 shares in the repurchase account [121]. - The company did not propose a profit distribution plan for 2021 due to negative net profits attributable to the parent company [124]. - The company actively engaged with investors through various channels, fostering a culture of respect and communication [92]. - The company has maintained independence from its controlling shareholders in operations, assets, and finances, with no non-operational occupation of funds reported [88]. Environmental and Social Responsibility - The company is committed to green and low-carbon development, continuously improving energy resource utilization efficiency and reducing pollutant emissions [133]. - The company has implemented photovoltaic power generation projects, achieving a total photovoltaic power generation of 6,207 MWh, equivalent to a reduction of 3,787 tons of CO2 emissions [135]. - The company actively fulfills its corporate social responsibility, as detailed in its annual social responsibility report [136]. Future Outlook - The company aims to achieve a revenue target of 49 billion yuan for 2022, with a net asset return rate of 5% or a net profit margin of 2.5% [77]. - The company plans to improve its automotive safety business performance by enhancing communication with customers and suppliers, and optimizing production and inventory management [72]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies [105].