FRD(SZ:300602)2022-04-18 16:00Financial Performance - The company achieved operating revenue of CNY 3,058.01 million in 2021, an increase of 4.39% compared to the previous year[7]. - Net profit attributable to shareholders was CNY 30.09 million, a decrease of 85.59% year-on-year, while net profit after deducting non-recurring gains and losses was CNY -131.89 million, down 197.67%[7]. - The company reported a total revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15%[36]. - The net profit attributable to shareholders was RMB 150 million, an increase of 20% compared to the previous year[36]. - The company's operating revenue for 2021 was ¥3,058,008,673.79, representing a 4.39% increase from ¥2,929,338,604.14 in 2020[43]. - The net profit attributable to shareholders for 2021 was ¥30,093,934.50, a significant decrease of 85.59% compared to ¥208,891,497.88 in 2020[43]. - The net profit after deducting non-recurring gains and losses was -¥131,886,676.58 in 2021, a decline of 197.67% from ¥135,038,973.40 in 2020[43]. - The company reported a negative net profit attributable to shareholders in the fourth quarter of 2021, amounting to -¥112,525,572.20[47]. - The company achieved total operating revenue of CNY 305,800.87 million in 2021, a year-on-year increase of 4.39%, while net profit attributable to shareholders decreased by 85.59% to CNY 3,009.39 million[130]. Market Challenges - The decline in performance was attributed to rising costs of raw materials such as copper and aluminum, as well as decreased demand in terminal businesses due to trade conflicts and chip shortages[8]. - Future performance may be adversely affected by factors such as major fluctuations in raw material prices and loss of key customers[8]. - The company faced challenges such as reduced customer orders due to the US-China trade conflict and chip supply shortages, leading to a decline in production capacity utilization for mobile terminal products[130]. Customer and Market Expansion - The company is actively expanding its customer base and downstream markets, with ongoing production and delivery of orders from new clients[8]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[36]. - The company has a diverse client base, including major players in telecommunications, automotive, and renewable energy sectors, enhancing its market presence and brand recognition[128]. - The company has established multiple overseas sales offices to improve service quality and response speed for clients in various regions, including the US and Finland[128]. Research and Development - The company has allocated RMB 100 million for research and development in advanced materials technology for the upcoming fiscal year[36]. - The company is focused on enhancing its core competitiveness and managing the risks associated with goodwill from acquisitions[19]. - The company is committed to continuous R&D and quality control to maintain its market leadership and meet evolving customer needs[101]. - The number of R&D personnel increased by 17.26% to 1,080 in 2021, with a slight increase in the proportion of R&D staff to 16.88%[158]. - The company has developed high-performance conductive fabric products and is focusing on R&D projects such as communication base station thermal modules and high-performance wireless charging modules[123]. Product Development and Innovation - New product development includes the launch of a 5G communication device, expected to generate an additional RMB 200 million in revenue in 2022[36]. - The company has developed a GaN-based fast charger, which is compact and highly efficient[113]. - The company is advancing the research on liquid cooling plates for new energy vehicles, focusing on overcoming key technical challenges[152]. - The development of a high-performance temperature equalization plate for 5G terminals is on schedule, aimed at meeting high thermal consumption needs[152]. - The company has successfully launched sales of high-saturation magnetic induction iron-based nanocrystalline alloys, further enhancing market competitiveness[155]. Financial Position and Investments - The company's total assets increased by 17.93% to ¥5,529,342,533.80 at the end of 2021, up from ¥4,688,635,364.89 at the end of 2020[43]. - The company reported a net cash flow from operating activities of -28,026,349.63 yuan in 2021, a decrease of 107.56% compared to the previous year[159]. - The company has a remaining balance of RMB 15,951.32 million in its fundraising account, which is earmarked for specific investment plans[188]. - The company made a significant equity investment of ¥35,000,000.00 in Changzhou Jingtian New Materials Co., acquiring a 100% stake[174]. - The company raised a total of RMB 68,850 million through a non-public offering, with RMB 53,406.77 million utilized by the end of the reporting period[186]. Supply Chain and Production - The company has established a solid supplier management system to ensure the stable supply of high-quality raw materials[118]. - The production model is primarily "sales-driven production," ensuring that production plans align with order demands[119]. - The company has established long-term stable partnerships with a few international suppliers for rare raw materials, ensuring a reliable supply chain[71]. - The company plans to increase production capacity for components like connection pieces, liquid cooling plates, and battery composite materials to meet the growing demand in the electric vehicle sector[98]. Market Trends and Opportunities - The global EMI/RFI shielding materials market is projected to grow from $5.2 billion in 2013 to approximately $9.25 billion by 2023, with a CAGR of 5.7% from 2018 to 2023[60]. - The demand for electromagnetic shielding and thermal management solutions is expected to rise due to the increasing integration and miniaturization of electronic components in 5G devices, which have power consumption approximately 2.5-3 times that of 4G[72]. - The company is well-positioned to capitalize on the expanding market opportunities in 5G infrastructure and electric vehicle components, driven by technological advancements and market trends[74]. - The company is actively expanding into new fields such as electric vehicles, photovoltaics, and energy storage to enhance its risk resilience amid market uncertainties[98].