GS(SH:601500)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 4,255,523,700.47, representing a 23.43% increase compared to CNY 3,447,718,251.29 in 2020[19] - The net profit attributable to shareholders of the listed company was CNY 11,610,406.55, a decrease of 87.24% from CNY 91,013,083.77 in the previous year[19] - The net cash flow from operating activities was negative CNY 62,132,288.58, a decline of 139.57% compared to CNY 157,034,837.26 in 2020[19] - The company reported a decrease of 174.33% in net profit attributable to shareholders after deducting non-recurring gains and losses, resulting in a loss of CNY 49,379,528.42[19] - The basic earnings per share for 2021 was 0.01 RMB, a decrease of 90.00% compared to 2020[22] - The company reported a net profit attributable to shareholders of -20.11 million RMB in Q4 2021, indicating a decline from previous quarters[23] - The weighted average return on net assets for 2021 was 0.29%, a decrease of 2.19 percentage points from 2020[22] - The gross profit margin for tires decreased by 2.75 percentage points to 9.59%[80] - Operating costs amounted to 3.832 billion RMB, reflecting a year-on-year increase of 27.68%[77] - The company achieved an operating revenue of 4.26 billion RMB in 2021, representing a year-on-year growth of 23.43%[73] Dividends and Capital Reserves - The company plans to distribute a cash dividend of CNY 0.8 per 10 shares, totaling CNY 85,983,733.36 based on the total share capital of 1,074,796,667 shares as of December 31, 2021[5] - The company intends to increase its capital reserve by converting 2 shares for every 10 shares held[5] Assets and Liabilities - The net assets attributable to shareholders at the end of 2021 were approximately 4.28 billion RMB, reflecting a 16.58% increase from the end of 2020[22] - The total assets at the end of 2021 reached approximately 8.91 billion RMB, marking a 16.78% increase from the end of 2020[22] - Cash and cash equivalents increased to ¥1,022,640,961.85, representing 11.48% of total assets, up 107.22% from the previous period[92] - Accounts receivable rose to ¥809,988,005.52, accounting for 9.09% of total assets, reflecting a 45.88% increase due to growth in foreign trade business[92] - Fixed assets reached ¥3,798,240,985.14, making up 42.63% of total assets, with a 42.51% increase attributed to project completion transfers[92] - Long-term borrowings increased to ¥1,166,310,875.84, representing 13.11% of total assets, up 39.90% due to increased bank project loans[92] Market and Sales Performance - The company achieved a total sales volume of 9.07 million tires in 2021, representing a year-on-year growth of 13.95%[32] - The company’s overseas market sales doubled year-on-year, driven by the development of large importers and traders in North America and Europe[39] - The company achieved a 10.8% year-on-year increase in domestic rubber tire production, totaling 89.91 million units in 2021[44] - The company reported a 16.2% year-on-year increase in tire exports, totaling 7.3 million tons in 2021[46] - Domestic revenue was 2.409 billion RMB, down 3.99% year-on-year, while international revenue surged by 102.09% to 1.798 billion RMB[80] Strategic Initiatives - The company launched its "5X Strategy" in 2021 to enhance its international layout and capitalize on domestic and international dual circulation development opportunities[33] - The company is advancing its digital transformation and smart manufacturing, with a focus on achieving a fully automated production process[43] - The company is committed to building a "5G Carbon Cloud Smart Factory" to integrate advanced technologies like 5G and digitalization into tire manufacturing, promoting energy savings and resource efficiency[143] - The company plans to establish five production bases and five R&D centers within the next ten years, aiming for a production capacity of over 50 million tires[60] - The company is increasing its investment in R&D for low rolling resistance and low noise green tires, aiming to enhance its competitive edge in the market[137] Innovation and Product Development - The company has accumulated 394 authorized patents, ranking among the top in China's tire industry for invention patents[38] - The company launched new generation safety tires, improving wear and heat generation performance by over 20% compared to similar products[37] - The company has developed a new type of tire that improves wear resistance by over 30% and achieves dual A-level performance in noise and wet grip[64] - The company launched the "Qianlima GA5" comfort and quiet tire series and the "Chitu" off-road tire series, enhancing user experience and gaining positive market feedback[65] - The company launched its first green tire, the Qianlima EV1, targeting the new energy vehicle sector[53] Corporate Governance - The company held 1 annual and 7 temporary shareholder meetings in 2021, ensuring equal treatment of all shareholders and compliance with legal requirements[155] - The board of directors consists of 7 members, including 3 independent directors, and has established specialized committees to enhance governance and decision-making processes[156] - The company emphasizes communication with investors and has designated personnel to manage investor relations, ensuring the protection of minority shareholders' rights[160] - The company established a comprehensive corporate governance structure and internal control system in accordance with relevant laws and regulations, ensuring the protection of shareholders' rights[161] Management Changes - In September 2021, Ms. Yu Xiufeng resigned as Vice General Manager due to reaching retirement age, and Mr. Zhang Gaorong resigned as Chief Financial Officer due to work adjustments[185] - Mr. Zhang Gaorong was appointed as Vice General Manager, and Ms. Jiang Jiehua was appointed as Chief Financial Officer in September 2021[185] - The company has seen changes in its senior management team, with several appointments and resignations throughout 2021 and early 2022[192] - The company continues to focus on maintaining a stable management structure amid personnel changes[192] Risks and Challenges - The company faces risks from increased international trade barriers, with a 17.08% anti-dumping tax rate applicable to tires produced in Thailand, but this is not expected to significantly impact operations[145] - Fluctuations in raw material prices, particularly natural rubber, could adversely affect profitability; the company aims to mitigate this through long-term contracts and strategic supplier relationships[149] - Currency exchange rate fluctuations, especially with USD, pose a risk to export revenues and procurement costs; the company plans to implement hedging strategies to mitigate these risks[151] - Ongoing pandemic risks could impact operations, logistics, and market demand; the company is enhancing its emergency management mechanisms to minimize these effects[152]