WOLONG ELECTRIC(600580)2024-06-25 13:48Share Issuance and Capital Changes - The company issued 422,798,480 shares at a price of 4.20 yuan per share, increasing the registered capital to 1,110,527,236 yuan[8] - In 2015, the company issued 178,372,350 shares at 8.97 yuan per share, raising the registered capital to 1,288,899,586 yuan[8] - In 2018, the company granted 4.51 million restricted shares to 29 incentive targets at 4.79 yuan per share, increasing the registered capital by 4,510,000 yuan[8] - The company repurchased and canceled 250,000 restricted shares in 2019, reducing the registered capital by 250,000 yuan[8] - In 2019, the company received 8,052,000 yuan in new registered capital from 215 incentive targets, increasing the total registered capital to 1,301,211,586 yuan[8] - In 2020, the company received 6,731,000 yuan in new registered capital from incentive targets, raising the total registered capital to 1,307,942,586 yuan[8] - In 2021, the company received 976,000 yuan in new registered capital from incentive targets, increasing the total registered capital to 1,308,918,586 yuan[8] - In 2021, the company received 6,434,000 yuan in new registered capital from incentive targets, raising the total registered capital to 1,315,352,586 yuan[8] - The company received 73,348,800 yuan from the first grant of restricted stock in 2021, with the total registered capital remaining at 1,315,262,586 yuan[9] Financial Reporting and Accounting Policies - The company's financial statements are prepared in accordance with the "Enterprise Accounting Standards" and the relevant regulations of the China Securities Regulatory Commission[11] - The company's fiscal year runs from January 1 to December 31[13] - The company's consolidated financial statements include all subsidiaries, with adjustments made for non-uniform accounting policies and periods[15] - The company's consolidated financial statements reflect the financial position, operating results, and cash flows of the entire group, using uniform accounting policies[15] - The company's consolidated financial statements include adjustments for non-controlling interests, with minority shareholders' shares separately listed in the consolidated balance sheet and income statement[15] - The company's consolidated financial statements are prepared based on the financial statements of the company and its subsidiaries, with necessary adjustments for non-uniform accounting policies and periods[15] - The company's audit report was issued by ShineWing Certified Public Accountants with an unqualified opinion[37] - The company's internal control audit report, issued by ShineWing Certified Public Accountants, received a standard unqualified opinion and was published on the Shanghai Stock Exchange website on April 30, 2022[42] Business Operations and Market Focus - The company's main business includes R&D, manufacturing, sales, and installation of motors, generators, drives, and other electrical equipment[9] - The company is actively promoting the upgrade of high-efficiency and energy-saving motor products, targeting industries such as marine, electric aviation, new energy vehicles, and e-bikes[21] - The company is committed to green production, reducing emissions, and controlling pollution, contributing to environmental improvement[21] - The company's overall operating performance remained stable, with significant year-on-year growth in revenue from motor and control businesses, and maintained profitability at a normal level[110] - The company achieved breakthroughs in the new energy vehicle sector, securing key clients such as XPeng, Geely, Wuling, and Vitesco, and expanded business with leading manufacturers in the commercial vehicle sector like Yutong, Sany, Weichai, and Geely Commercial[110] - The company secured its first batch of orders in the electric aviation sector, signed product development agreements with several high-quality industry enterprises, and led the drafting of airworthiness standards for electric aircraft propulsion systems[110] - The company plans to focus on digital transformation and low-carbon trends in 2022, aiming to shift from motor manufacturing to providing motor power system solutions and full lifecycle service solutions[110] - The company will actively develop a product matrix for green transportation, industrial, life, and energy sectors, emphasizing high-efficiency, low-carbon products and technologies[110] - The company implemented a digital transformation strategy focusing on "factory digitization" and "management digitization"[96] Financial Performance and Metrics - Total revenue for Q1 2021 was 2,988,140,630.85 yuan, Q2 was 3,756,031,132.38 yuan, Q3 was 3,733,479,419.87 yuan, and Q4 was 3,220,056,560.68 yuan[77] - Net profit attributable to shareholders in Q1 2021 was 131,601,741.27 yuan, Q2 was 287,007,363.25 yuan, Q3 was 250,608,871.36 yuan, and Q4 was 318,598,355.14 yuan[77] - Non-recurring net profit attributable to shareholders in Q1 2021 was 129,795,901.69 yuan, Q2 was 220,066,184.57 yuan, Q3 was 203,311,014.76 yuan, and Q4 was -112,563,451.96 yuan[77] - Revenue for 2021 reached RMB 13,697,707,743.78, a 9.01% increase compared to 2020[102] - Net profit attributable to shareholders was RMB 987,816,331.02, up 13.96% year-over-year[102] - Operating cash flow increased by 20.90% to RMB 1,480,317,913.96 in 2021[102] - Basic earnings per share rose 14.15% to RMB 0.7593 in 2021[102] - Non-recurring net profit attributable to shareholders decreased by 34.39% to RMB 440,609,649.06[102] - Total assets grew by 5.74% to RMB 22,012,647,245.40 at the end of 2021[102] - Weighted average ROE increased by 0.63 percentage points to 12.51% in 2021[102] - Revenue increased by 9.01% to RMB 13,697,707,743.78 in 2021 compared to the previous year[126] - Industrial motor and drive segment revenue grew by 6.62% to RMB 7,886,772,193.17, with a gross margin decrease of 2.06 percentage points[127] - Daily-use motor and control segment revenue surged by 27.87% to RMB 3,594,545,191.56, with a slight gross margin increase of 0.04 percentage points[127] - Electric transportation segment revenue soared by 76.59% to RMB 667,975,098.29, but gross margin decreased by 1.35 percentage points[127] - R&D expenses increased significantly by 28.33% to RMB 514,695,902.53 in 2021[126] - Operating cash flow increased by 20.90% to RMB 1,480,317,913.96 due to enhanced cash flow management[138] - The company achieved operating revenue of 13.698 billion yuan, a year-on-year increase of 9.01%, and net profit attributable to the parent company of 988 million yuan, a year-on-year increase of 13.96%[141] - Net cash flow from operating activities was 1.48 billion yuan, a year-on-year increase of 20.90%[141] - Revenue for the year reached 13.698 billion yuan, an increase of 1.133 billion yuan compared to the previous year, representing a growth of 9.01%[158] - Operating costs for the year amounted to 10.531 billion yuan, an increase of 1.039 billion yuan compared to the previous year, representing a growth of 10.95%[158] - R&D expenses increased by 28.33% to 514.7 million yuan, driven by increased investment in R&D[161] - Total R&D investment reached 787.7 million yuan, accounting for 5.75% of total revenue, with 39.98% of R&D investment being capitalized[161] - The company plans to achieve 16.078 billion yuan in revenue and 1.205 billion yuan in net profit attributable to parent company owners in 2022[176] Subsidiaries and Investments - The company has subsidiaries including SIR S.p.A, Wolong Electric Nanyang Explosion Protection Group, and Wolong Electric Group Liaoning Rongxin Electric Drive[39] - The company follows specific accounting treatments for adding or disposing of subsidiaries, including adjustments to consolidated financial statements and recognition of gains or losses[41] - The company established a joint venture, Shunyun Interconnection, in September 2021, holding 60% indirect control[132] - The company completed the transfer of 100% equity of Hangzhou Research Institute for 415 million yuan[144] - The company established several new subsidiaries in 2021 focusing on photovoltaic power generation and motor industry-related businesses[183] - Nanyang Explosion-proof Motor Group, a wholly-owned subsidiary, achieved 3.528 billion yuan in revenue and 851.8592 million yuan in net profit[184] Environmental and Social Responsibility - The company's subsidiary, Wolong Lighthouse, achieved a 100% compliance rate for waste gas and wastewater emissions, with an environmental equipment downtime rate of ≤5% and an inspection pass rate of ≥95%[45] - Wolong Lighthouse reported a blood lead abnormality rate of ≤2.5% and a blood lead exceedance rate of ≤1% for occupational health[45] - The company's environmental facilities operate normally, with emissions meeting the "Battery Industry Pollutant Emission Standards" GB30484-2013[46] - Wolong Lighthouse conducts third-party environmental emission index testing monthly, with all data meeting standards, and has an online monitoring system for wastewater emissions[45] - The company's environmental protection facilities were installed in all pollutant-generating processes, with regular maintenance ensuring compliance with emission standards[46] - Wolong Lighthouse completed an environmental impact assessment for a project producing 420,000 high-power UPS power supplies, 400,000 communication sealed power supplies, and 400,000 sealed maintenance-free automotive batteries in May 2008[47] Financial Liabilities and Assets - The company's financial liabilities are classified at initial recognition as either measured at fair value through profit or loss or measured at amortized cost[18] - Financial liabilities can be designated as measured at fair value through profit or loss if the designation eliminates or significantly reduces accounting mismatch[35] - Financial assets measured at amortized cost include notes receivable, accounts receivable, and long-term receivables, initially measured at fair value with transaction costs included in the initial recognition amount[35] - Financial assets measured at fair value through other comprehensive income (debt instruments) include receivables financing and other debt investments, with fair value changes recognized in other comprehensive income[35] - Financial assets measured at fair value through other comprehensive income (equity instruments) include other equity investments, with fair value changes recognized in other comprehensive income[35] - Financial assets measured at fair value through profit or loss include trading financial assets and derivative financial assets, with fair value changes recognized in profit or loss[35] - Financial liabilities measured at fair value through profit or loss include trading financial liabilities and derivative financial liabilities, with fair value changes recognized in profit or loss[35] - Long-term loans decreased by 39.14% to 1.8 billion yuan, reflecting improved financial management[165] - Restricted assets at the end of the reporting period totaled 2,168,453,366.24 yuan, a slight decrease from 2,184,001,202.02 yuan at the beginning of the period[166] - Pledged accounts receivable increased to 198,943,852.70 yuan from 115,853,969.25 yuan, a 71.7% increase[166] - Pledged long-term equity investments rose to 361,500,000.00 yuan from 330,000,000.00 yuan, up 9.5%[166] - Mortgaged assets decreased to 930,548,484.71 yuan from 1,088,428,394.02 yuan, down 14.5%[166] - Restricted cash increased to 279,783,449.27 yuan from 232,056,531.85 yuan, up 20.6%[166] - Prepayments decreased by 40.0% to 271,827,936.80 yuan from 453,078,884.33 yuan[180] - Intangible assets increased by 299.80 million yuan, primarily due to internal R&D contributions of 210.98 million yuan[192] - Prepayments decreased mainly due to a reduction in prepaid material costs[189] - Other receivables increased due to the addition of receivables from the disposal of old factory premises in Nanyang[189] - Development expenditure rose as a result of increased R&D investment[189] - Long-term loans decreased due to the company's efforts to reduce loan scale[189] - Minority shareholders' equity increased due to higher profits from subsidiaries and additional investments by minority shareholders[189] - Investment properties decreased following the sale of equity in Hangzhou Research Institute[189] - Other non-current financial assets increased due to a rise in the fair value of the company's non-current financial assets[189] Market and Industry Trends - The global water pump market size was approximately RMB 415.9 billion in 2021, with a projected CAGR of 4.5% from 2022 to 2028[97] - The global low-voltage motor market for pumps was approximately 2.46 billion in 2020, with a projected CAGR of 4% through 2025[114] - The global market for air compressors and refrigeration compressors was nearly 2.6 billion, or 22% of the total low-voltage motor market[114] - China's coal production reached a record high of 4.07 billion tons in 2021, a 4.7% increase year-on-year, with further significant growth expected in 2022[115] - The global oil and chemical industry achieved a record profit of $1.16 trillion in 2021, with a profit margin of 8.03%, the highest in nearly a decade[115] - Global air conditioner production reached 185 million units in 2021, with China accounting for 83.2% of the market share[147] - The global electric tool market size was approximately 30.7 billion USD in 2020, with a projected CAGR of 4.2% to reach 40.9 billion USD by 2027[147] - China's new energy vehicle sales reached 3.5 million units in 2021, a year-on-year increase of 159%, with domestic sales accounting for 3.15 million units, a year-on-year increase of 179%[148] - The domestic market for new energy vehicles is expected to exceed 5 million units in 2022, with local demand estimated at 4.7-4.8 million units and exports exceeding 300,000 units[148] Corporate Governance and Internal Controls - The company's subsidiaries are managed and controlled in accordance with the "Company Law" and the company's articles of association, with a focus on improving governance and operational efficiency[28] - The company does not have any significant risk disclosures or violations of decision-making procedures for external guarantees[38] - The company's internal control system was evaluated as effective, with no significant deficiencies in financial reporting internal controls as of December 31, 2021[57] - The company's senior management was granted a total of 830,000 restricted shares during the reporting period, with an exercise price of RMB 7.40 per share[55] - The company's cash dividend policy is clearly defined in the Articles of Association, with no adjustments made during the reporting period[51] - The company plans to distribute a cash dividend of 1.5 yuan per 10 shares (tax included) based on the total share capital after deducting shares held in the repurchase account as of the 2021 profit distribution record date[61] Production and Sales Metrics - The production volume of industrial motors and drives was 2.883 million kW, with a year-on-year increase of 1.48%, and sales volume was 2.840 million kW, with a year-on-year increase of 3.50%[143] - The production volume of daily-use motors and controls was 5.831 million units, with a year-on-year increase of 8.43%, and sales volume was 5.891 million units, with a year-on-year increase of 6.67%[143] - The production volume of electric transportation products was 677,000 kW, with a year-on-year increase of 46.85%, and sales volume was 673,000 kW, with a year-on-year increase of 61.00%[143] R&D and Innovation - The company has 1,583 R&D personnel, accounting for 10.70% of the total workforce[162] - The company has established R&D centers in China, Europe, and Japan, and a central research institute in Shanghai, focusing on leading technologies in motor and control fields[157] - The company's motor and control business has a significant competitive advantage, with global leadership in high-voltage drive solutions, new energy vehicle drive motors, and high-end home motors[157] Supply Chain and Procurement - Raw material costs for industrial motors and drives accounted for 75.55% of total costs, up 1.89 percentage points from the previous year[129] - The company's top five suppliers accounted for 24.44% of total annual procurement, with no related party transactions[160] - Top 5 customers sales amounted to 1,599.14 million yuan, accounting for 11.67% of total annual sales, with no related party sales[187] Global Market Presence - The company's revenue in the Americas region grew by 24.67% to RMB 1,547,558,447.84, but gross margin decreased by 3.13 percentage points[127] - The company's revenue in the Asia-Pacific region (excluding China) increased by 14.32% to RMB 1,009,827,349.32, with a gross margin decrease of 2.45 percentage points[127] - The company's global sales network covers China, Asia-Pacific, Europe, and the Americas, with strong brand influence and market competitiveness[157] - Overseas assets totaled 5,994.91 million yuan, representing 27.23%