VEKEN TECHNOLOGY(SH:600152)2022-04-25 16:00Financial Performance - The net profit attributable to the parent company for 2021 was -127,176,282.86 CNY, while the consolidated undistributed profit was -149,329,853.95 CNY[5]. - The net profit based on the parent company’s perspective was 140,134,600.26 CNY, with undistributed profits amounting to 335,401,857.21 CNY[5]. - The board of directors proposed no profit distribution for 2021, citing the need to ensure the company's normal operations and sustainable development[5]. - The company’s financial condition does not meet the criteria for cash dividends, as stated in the report[5]. - The company reported a total of CNY 33,985,546.38 in non-recurring gains and losses for 2021, compared to CNY 112,569,880.45 in 2020[27]. - The company achieved a total revenue of CNY 2.075 billion in 2021, representing an 18.94% increase compared to the previous year[54]. - The net profit attributable to shareholders was a loss of CNY 127 million, a decrease of 358.79% year-on-year, primarily due to significant increases in raw material prices and depreciation costs[54]. - The company's total revenue for 2021 reached approximately ¥1.95 billion, with a gross profit margin of 11.29%, reflecting a year-on-year increase of 3.10 percentage points[61]. Assets and Liabilities - The total assets at the end of 2021 reached CNY 4,033,254,016.35, an increase of 27.18% from CNY 3,171,313,866.46 at the end of 2020[21]. - The company's net assets attributable to shareholders increased by 39.55% to CNY 1,985,846,678.69 at the end of 2021, up from CNY 1,423,075,857.02 at the end of 2020[21]. - The total amount of guarantees provided by the company (excluding guarantees to subsidiaries) during the reporting period was RMB 1,660,000,000[186]. - The total balance of guarantees at the end of the reporting period (excluding guarantees to subsidiaries) was RMB 830,000,000[186]. - The total amount of guarantees (including those to subsidiaries) was RMB 1,538,000,000, which accounts for 77.45% of the company's net assets[187]. Cash Flow - The cash flow from operating activities in 2021 was -CNY 235,772,360.91, a significant decline from CNY 29,606,382.59 in 2020, representing a decrease of 896.36%[21]. - Operating cash flow decreased significantly to -235,772,360.91 from 29,606,382.59, a change of -896.36%[75]. - Investment cash flow also declined to -455,065,212.36 from -96,657,838.79, indicating a substantial increase in cash outflow[75]. - Financing cash flow increased by 226.84%, reaching 614,948,511.53 compared to 188,149,596.11 in the previous period[75]. Market and Industry Trends - The global lithium-ion battery shipment volume increased by 91.0% in 2021, reaching 562.4 GWh[84]. - The domestic lithium-ion battery output grew by 106% in 2021, totaling 324 GWh[84]. - The lithium battery industry is experiencing increasing concentration, with a few leading manufacturers capturing a significant market share, leading to intensified competition[97]. - The lithium battery industry is significantly driven by the energy transition, with the demand for new clean energy sources increasing due to rapid economic development and environmental concerns in China[98]. - The global 3C digital market is expected to maintain a growth rate of 5-10% from 2021 to 2025, with global consumer lithium battery shipments projected to reach 110 GWh by 2025[99]. Research and Development - The company holds a total of 165 patents as of December 31, 2021, including 42 invention patents, 117 utility model patents, and 6 design patents[51]. - The R&D expenses for the year amounted to CNY 101.47 million, reflecting a 20.04% increase compared to the previous year[56]. - The company is focusing on high energy density and fast-charging lithium batteries, having completed the development of a 750Wh/L high energy density battery and a 720Wh/L fast-charging battery[51]. - The company is recognized as one of the top five 3C digital battery suppliers in China, leveraging over a decade of lithium battery production technology to provide customized battery solutions[40]. Governance and Compliance - The company established a dedicated investor relations department to ensure timely communication with shareholders and investors[122]. - The governance structure is continuously improved to promote sustainable and healthy development in compliance with relevant laws and regulations[122]. - The company has not engaged in any significant mergers or acquisitions during the reporting period[122]. - The company is committed to enhancing its governance structure to ensure compliance with the Company Law and Securities Law[122]. Strategic Initiatives - The company is actively pursuing strategic investments and partnerships to enhance its competitive edge in the market[129]. - The company is exploring mergers and acquisitions in the industry to rapidly elevate its position in niche markets and achieve leapfrog growth[103]. - The company plans to issue 19,000 million in investments with a floating rate of 3.15% in February 2022[193]. - The company is expanding its polymer lithium battery production capacity with a new project to produce 60 million units annually, addressing capacity bottlenecks and enhancing market share[110]. Related Party Transactions - The company engaged in daily related transactions with its controlling shareholder, Viko Holdings, with procurement amounting to RMB 4.86 million and sales of RMB 689.09 million in 2021[175]. - The company also had daily related transactions with its associate company, Viko Battery, with procurement of RMB 112.48 million and sales of RMB 539.33 million in 2021[177]. - The company reported a total of RMB 1,124.76 million in related transactions with its joint venture, Jiangxi Viko Battery[178]. Employee and Management Structure - The company employed a total of 2,566 staff, with 180 in the parent company and 2,386 in major subsidiaries[146]. - The workforce composition includes 1,693 production personnel, 52 sales personnel, 610 technical personnel, 33 financial personnel, and 178 administrative personnel[146]. - The company has implemented a competitive salary policy to attract top talent, ensuring salaries are linked to job value and performance[147]. - The management team includes experienced professionals with significant backgrounds in various sectors, enhancing strategic decision-making capabilities[131].