Farasis Energy(SH:688567)2022-04-29 16:00Financial Performance - The company achieved a record revenue of 3.5 billion RMB in 2021, representing a year-on-year growth of 212.6%[3] - The company's operating revenue for 2021 was approximately CNY 3.50 billion, a 212.60% increase from CNY 1.12 billion in 2020[21] - The net profit attributable to shareholders for 2021 was approximately -CNY 952.72 million, compared to -CNY 331.00 million in 2020[21] - The net cash flow from operating activities for 2021 was CNY 233.24 million, a significant recovery from -CNY 943.86 million in 2020[21] - The total assets at the end of 2021 were approximately CNY 20.94 billion, reflecting a 35.80% increase from CNY 15.42 billion at the end of 2020[21] - The company's net assets attributable to shareholders decreased by 7.96% to approximately CNY 9.27 billion at the end of 2021[21] - The basic earnings per share for 2021 was -CNY 0.89, compared to -CNY 0.35 in 2020[23] - The company reported a quarterly operating revenue of CNY 1.54 billion in Q4 2021, with a net profit attributable to shareholders of -CNY 532.52 million[24] - The company experienced a significant increase in revenue in Q3 2021, reaching CNY 1.09 billion, compared to CNY 510.36 million in Q2 2021[24] Research and Development - Research and development expenses accounted for 15.47% of operating revenue in 2021, a decrease of 17.74 percentage points from 33.21% in 2020[23] - The company has increased its R&D investment in solid-state batteries, thermal runaway management, and energy storage, leading to higher R&D expenses in 2021[29] - The company has added 4 new core technologies during the reporting period, including "330wh/kg high energy density power battery technology" and "800V high voltage power battery technology," which are currently in the pilot testing stage[48] - The company has filed for 28 invention patents and obtained 12 during the reporting period, bringing the total number of applied patents to 98[51] - The company is developing new cathode materials with an expected total investment of 42 million yuan, currently in the pilot stage[54] - The new anode materials project has a total investment of 26 million yuan, also in the pilot stage, aiming for a battery density of 330Wh/kg[54] - The development of a new electrolyte system has been industrialized with an investment of 28 million yuan, improving fast charging and cycle performance[55] - The company is developing a big data monitoring platform for power batteries with an investment of 56 million yuan, achieving over 95% accuracy in identifying abnormal vehicles[55] Market Expansion and Strategy - The company signed a contract in Turkey to establish production capacity for the European market, indicating a global expansion strategy[3] - The company is exploring new markets in marine, electric aviation, and rail transportation[3] - The company has established an energy storage division in 2021, facing challenges in market development and competition as a new entrant in the energy storage market[80] - The company plans to expand its market presence through the development of high-performance materials and advanced battery technologies[54] - The company aims to ensure high-quality battery supply for strategic customers and plans to complete the second phase of Zhenjiang's production by Q2 2022[130] - The company plans to optimize its customer structure by expanding collaborations with domestic and international first-tier automakers[132] - The company is expanding production capacity in Wuhu and overseas to meet medium to long-term development needs[88] Competitive Landscape - The company ranked seventh in China's power battery installed capacity in 2021, with a market share of 1.69%, slightly up from ninth place the previous year[41] - The market share of soft-pack batteries is declining due to the rise of square and cylindrical battery technologies, with Tesla's 4680 cylindrical battery posing increased competition[84] - The company faces intensified competition in the battery market as subsidies decrease and standards rise, necessitating cost reductions and performance improvements[85] - The global top ten power battery companies accounted for a combined market share of 91.2% in 2021, indicating a high industry concentration[120] Sustainability and Social Responsibility - The company achieved carbon neutrality in its production processes at the Zhenjiang factory, receiving customer recognition for its environmental efforts[178] - The company has established an environmental management system certified by ISO 14001, with 13 environmental management regulations in place[184] - The company actively participates in social welfare activities, including donations of 21,000 yuan in materials to local schools and elderly care centers[189] - The company has implemented energy-saving measures that resulted in an annual electricity savings of 9 million kWh through various facility upgrades[186] - The company has integrated ESG practices into its daily operations, focusing on green energy and social responsibility[178] Governance and Management - The company has established a clear governance structure and effective internal control systems in compliance with regulatory requirements, enhancing governance levels and protecting investor rights[134] - The company has maintained independence from its controlling shareholders, with no significant adverse effects from any competitive activities[135] - The company has a remuneration and assessment committee responsible for evaluating the performance of directors and senior management[151] - The company has implemented strict management controls over subsidiaries, ensuring compliance with relevant regulations[175] - The internal control audit report for 2021 received a standard unqualified opinion[176] Future Outlook - The company provided guidance for Q4 2023, expecting revenue to reach between $1.6 billion and $1.8 billion, which would represent a growth of 20% to 30% compared to Q4 2022[141] - Overall, the company remains optimistic about future growth, citing strong demand and a robust pipeline of new products and services[141] - The company is considering strategic acquisitions to enhance its market position, targeting firms with a combined revenue of 500 million[142] - Future outlook remains positive, with management expressing confidence in achieving long-term growth targets despite market challenges[143]