Longi(SH:601012)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 reached approximately ¥80.93 billion, representing a 48.27% increase compared to ¥54.58 billion in 2020[17]. - Net profit attributable to shareholders was approximately ¥9.09 billion, a 6.24% increase from ¥8.55 billion in the previous year[17]. - The net cash flow from operating activities was approximately ¥12.32 billion, reflecting an 11.87% increase from ¥11.01 billion in 2020[17]. - The total assets of the company at the end of 2021 were approximately ¥97.73 billion, an increase of 11.53% from ¥87.63 billion in 2020[17]. - The net assets attributable to shareholders increased to approximately ¥47.45 billion, a growth of 35.16% compared to ¥35.11 billion in 2020[17]. - The company reported a net profit excluding non-recurring gains and losses of approximately ¥8.83 billion, an increase of 8.39% from ¥8.14 billion in 2020[17]. - The company's operating revenue reached ¥80.93 billion, a year-on-year increase of 48.27%[49]. - Operating costs amounted to ¥64.59 billion, reflecting a year-on-year increase of 56.98%, primarily due to increased sales of components and rising freight costs[49]. - The gross profit margin in the photovoltaic industry decreased by 4.43 percentage points to 20.19%[51]. - The diluted earnings per share for 2021 was 1.69 RMB, an increase of 4.97% compared to the previous year[19]. Dividends and Capital Distribution - The company plans to distribute a cash dividend of 2.6 yuan (including tax) for every 10 shares and to increase capital by 4 shares for every 10 shares held[3]. - The company’s total share capital will be adjusted accordingly if there are changes before the equity distribution date[3]. Audit and Compliance - The company has received a standard unqualified audit report from PwC Zhongtian[2]. - There are no non-operating fund occupations by controlling shareholders or related parties[4]. - The company has implemented measures to maintain the independence of its operations from its controlling shareholders[104]. - The company has not reported any significant changes in competition with its controlling shareholders or related parties[104]. - The company has not experienced any insider information leaks or insider trading during the reporting period, ensuring compliance with regulations[104]. - The company has not faced any penalties from securities regulatory agencies in the past three years[119]. Market Strategy and Growth - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge[10]. - The company is focusing on the development of new products, particularly in the solar energy sector, to meet growing market demand[10]. - The company aims to achieve sustainable growth through strategic acquisitions and collaborations in the renewable energy sector[10]. - The company achieved a leading market share in 2021, with component sales surpassing global totals from 2020, further solidifying its market position[27]. - The company is actively pursuing hydrogen energy solutions, having established Xi'an Longi Hydrogen Energy Technology Co., with a production capacity of 500 MW[32]. - The company is expanding its market presence in Southeast Asia, aiming for a 30% market share by 2025[115]. - The company is actively pursuing market expansion through strategic partnerships and new project developments in the renewable energy sector[200]. Research and Development - The company invested CNY 4.394 billion in R&D, accounting for 5.43% of its revenue, and holds a total of 1,387 authorized patents[28]. - The company’s R&D investment in 2021 was 4.394 billion yuan, a year-on-year increase of 69.55%[43]. - The company has accumulated 1,387 patents by the end of 2021, with several core technologies and products leading the industry[44]. - The company has established partnerships with several clean energy firms to enhance its operational capabilities and market reach[10]. - The company has formed strategic partnerships with research institutions to enhance its R&D capabilities and foster innovation in photovoltaic technology[43]. Environmental Initiatives - The company aims to reduce greenhouse gas emissions by 60% by 2030, using 2020 as a baseline, and has initiated a "zero-carbon factory" project in Baoshan, Yunnan[33][34]. - The company plans to establish Baoshan Longi as the first "zero-carbon factory" by 2023, aiming for zero greenhouse gas emissions through green power procurement and energy-saving upgrades[155]. - The company has implemented a comprehensive environmental management system and strictly adheres to environmental regulations across all subsidiaries[153]. - The company actively participates in international initiatives for carbon reduction, being the first in China to join RE100, EV100, EP100, and SBTi[155]. Supply Chain and Production - The company has ongoing construction for a 20 GW monocrystalline silicon wafer production line with a total investment of ¥8.06 billion[73]. - The company is currently preparing for the construction of a 10GW monocrystalline battery project in Qujing, with a focus on expanding production capacity[198]. - The company has signed long-term procurement contracts for silicon materials totaling 112,800 tons, with a contract period from January 2020 to December 2022[196]. - The company has completed production for the 10GW monocrystalline silicon rod project in Tengchong and the 10GW monocrystalline silicon rod and wafer project in Qujing[198]. Risk Management - The company has established a foreign exchange management system to mitigate some currency fluctuation risks, but significant RMB exchange rate volatility could impact international market competitiveness and financial performance[96]. - The company is facing international trade friction risks, with the U.S. and India imposing tariffs on solar products, which may impact the development of the photovoltaic industry[92]. - The company is at risk of supply chain instability due to rapid changes in product specifications and logistics challenges exacerbated by the pandemic, which could lead to increased costs and order fulfillment issues[97]. - The company emphasizes the importance of effective internal control and risk management as it expands its global operations, facing challenges in localization and resource integration[95]. Corporate Governance - The company maintains a governance structure that complies with legal requirements, ensuring independent operations and protecting shareholder rights[100]. - The board of directors consists of 9 members, including 4 external directors, ensuring a diverse and experienced leadership team[102]. - The company has established a performance evaluation mechanism for senior management, combining short-term and long-term incentives[138]. - The company has identified issues in its governance structure, including the need to elect new independent directors due to the board's delayed re-election[141]. Employee and Community Engagement - The company donated 5 million yuan to improve educational conditions at a local school in Shaanxi province as part of its poverty alleviation efforts[158]. - The company contributed a total of 10.7556 million yuan in pandemic relief funds and medical supplies to various regions, including overseas[158]. - The total number of employees in the parent company is 5,530, and in major subsidiaries, it is 44,437, resulting in a total of 49,967 employees[130]. - The company implemented a salary, position, and performance optimization project during the reporting period to enhance human resource foundations for future business development[131]. Financial Management - The company has invested a total of $17.3 billion in bank wealth management products using its own funds, with no overdue amounts reported[188]. - The company has authorized a new guarantee limit of up to $80 million for its subsidiaries, effective until December 31, 2021, to enhance operational flexibility[185]. - The company has consistently achieved full recovery of returns from its financial products, indicating strong financial management practices[193].