Financial Performance - The Group recorded revenue of approximately RMB295.8 million in 2021, representing a decrease of 22.1% year on year compared to RMB379.6 million in 2020[18]. - Profit attributable to equity shareholders of the Company was approximately RMB7.3 million in 2021, down from approximately RMB50.9 million in 2020[18]. - Total revenue decreased from approximately RMB379.6 million in 2020 to approximately RMB295.8 million in 2021, representing a decrease of approximately 22.1%[46]. - Gross profit decreased from approximately RMB116.9 million in 2020 to approximately RMB70.6 million in 2021, representing a decrease of approximately 39.6%[44]. - Overall gross profit margin decreased by approximately 6.9% in 2021 compared to 2020, mainly due to lower selling prices and higher raw material costs[44]. - Other income decreased from approximately RMB6.5 million in 2020 to approximately RMB3.9 million in 2021, representing a decrease of approximately 39.7%[48]. - Selling and distribution expenses decreased from approximately RMB9.7 million in 2020 to approximately RMB9.0 million in 2021, representing a decrease of approximately 7.5%[51]. - Administrative expenses increased from approximately RMB41.3 million in 2020 to approximately RMB47.1 million in 2021, representing an increase of 14.2%[53]. - Finance costs decreased from approximately RMB9.8 million in 2020 to approximately RMB9.4 million in 2021, representing a decrease of approximately 4.0%[55]. - Income tax expense decreased from approximately RMB12.4 million in 2020 to approximately RMB1.6 million in 2021, mainly due to a decrease in pre-tax profit[55]. - Profit for the year decreased from approximately RMB50.9 million for the year ended 31 December 2020 to approximately RMB7.3 million for the year ended 31 December 2021[57]. Production and Sales - The Group experienced a record high national monthly production of heavy trucks at 175,000 units in the first half of 2021, followed by a record low of less than 37,000 units in the second half[18]. - Single vehicle sales of the Group amounted to RMB2,025 in 2021, slightly higher than in 2020[18]. - Revenue from sales of heavy trucks' decorative components decreased from approximately RMB332.4 million in 2020 to approximately RMB269.2 million in 2021, representing a decrease of approximately 19.0%[39]. - Revenue from sales of passenger vehicles' decorative components decreased from approximately RMB47.1 million in 2020 to approximately RMB26.6 million in 2021, representing a decrease of approximately 43.6%[42]. - The sales of heavy trucks are anticipated to show an upward trend in 2022 due to the full switch to new emission standards[31]. Assets and Liabilities - Total assets as of December 31, 2021, were RMB572.3 million, down from RMB625.9 million in 2020[13]. - Total liabilities decreased to RMB305.6 million in 2021 from RMB355.8 million in 2020[13]. - Total equity as of December 31, 2021, was RMB266.7 million, slightly down from RMB270.1 million in 2020[13]. - Cash and cash equivalents of the Group were approximately RMB62.5 million and RMB56.6 million as at 31 December 2021 and 2020, respectively[57]. - Bank and other loans increased from approximately RMB96.0 million as at 31 December 2020 to approximately RMB133.8 million as at 31 December 2021[57]. - Gearing ratio as at 31 December 2020 and 2021 were 35.6% and 50.2%, respectively[57]. - Inventories decreased from approximately RMB78.5 million as at 31 December 2020 to approximately RMB60.2 million as at 31 December 2021, representing a decrease of approximately 23.2%[59]. - Prepayment for acquisitions of property, plant and equipment decreased from approximately RMB9.9 million for the year ended 31 December 2020 to approximately RMB6.3 million for the year ended 31 December 2021, representing a decrease of approximately 36.8%[62]. - Capital expenditures were approximately RMB49.9 million for the year ended 31 December 2021, compared to approximately RMB36.9 million in 2020[67]. - Capital commitments in respect of property, plant and equipment contracted for approximately RMB16.0 million as at 31 December 2021, down from approximately RMB26.5 million in 2020[67]. Management and Governance - Mr. Hou Jianli is the controlling shareholder, executive director, chairman, CEO, and general manager of the company[101]. - The company has a strong focus on research and development in material science, with several important scientific research projects hosted by its directors[94]. - The company is expanding its board with experienced independent non-executive directors to enhance governance and oversight[89][99]. - The company aims to leverage the expertise of its directors in various fields, including law, education, and finance, to drive strategic initiatives[89][99][94]. - The company is committed to maintaining high standards of corporate governance through its independent committees[89][94]. - The Company has appointed three Independent Non-executive Directors, representing more than one-third of the Board, ensuring adequate control and balance[144]. - The Audit Committee's primary duties include making recommendations on the appointment of external auditors and overseeing internal control procedures[152]. - The Company encourages Directors to participate in professional development courses related to corporate governance and compliance[141]. - The Company has established clear written terms of reference for each Board Committee, approved by the Board[146]. - The Company has adopted the Corporate Governance Code as the basis for its governance practices, with a deviation regarding the roles of chairman and CEO being held by the same individual, Mr. Hou Jianli[122]. Future Outlook - Looking ahead to 2022, the heavy truck market is expected to shift from incremental competition to stock competition, with potential growth in sales due to policy support[25]. - The Group plans to promote dual wheel drive for passenger and commercial vehicles while expanding its market presence[25]. - The Group aims to enhance its Tianrui Excellent Management System Project (TES) to standardize management practices across the organization[25]. - For 2022, the Group plans to expand new customer bases and enhance product development with existing customers to improve core competitiveness[77]. - New projects obtained include rearview mirror and bumper assembly, with the Standard Operating Procedure (SOP) successfully implemented[77]. - The Group aims to focus on standardization, automation, informatization, and systematic construction to boost sales revenue growth and improve management systems[80]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion[112]. - New product launches are expected to contribute an additional 200 million in revenue, with a focus on innovative technologies[112]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[112]. - A recent acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[112]. - The company is investing 50 million in R&D for new technologies aimed at improving product quality and reducing costs[112]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 15% by 2025[112].
天瑞汽车内饰(06162) - 2021 - 年度财报