FFEC(SH:600203)2022-04-28 16:00Financial Performance - In 2021, the company's net profit attributable to the parent company was -233,802,538.78 yuan, with an ending undistributed profit of -246,021,387.83 yuan[6]. - The company reported a net profit of 67,021,167.62 yuan for the parent company, with an initial undistributed profit of 152,875,152.26 yuan[6]. - The company's operating revenue reached RMB 18.63 billion in 2021, a year-on-year increase of 42.96%[25]. - The net profit attributable to shareholders was a loss of RMB 233.80 million, compared to a profit of RMB 9.95 million in 2020, representing a decline of 2,450.51%[25]. - The basic earnings per share were -0.4998 yuan, a decrease of 2,392.66% from 0.0218 yuan in 2020[26]. - The total assets increased by 49.24% to RMB 12.26 billion at the end of 2021 compared to RMB 8.21 billion at the end of 2020[25]. - The company reported a net cash flow from operating activities of RMB 75.30 million, a decrease of 70.79% from RMB 257.82 million in 2020[25]. - The weighted average return on equity was -11.30%, a decrease of 11.77 percentage points from 0.47% in 2020[26]. - The company’s net profit attributable to shareholders was -234 million RMB, a significant decline compared to the previous year[50]. Strategic Development - The company plans not to distribute dividends or transfer capital reserves to increase share capital, considering the overall strategic development needs[6]. - The company plans to focus on core business development and aims to turn losses into profits as a primary goal for 2022[34]. - The company aims to enhance its customer, product, and business structures to create new profit growth points while reducing low-efficiency and low-margin businesses[84][85]. - The company plans to accelerate product upgrades in its core business areas, focusing on high-growth IoT products and enhancing its manufacturing capabilities for mid-to-high-end smartphones[88]. - The company will strengthen its position in the ODM industry by expanding its product offerings into industrial, IoT, and automotive electronics, aiming for a robust hardware traffic platform[90]. Research and Development - The company invested 299 million RMB in R&D during the reporting period, with over 100 new product development projects initiated[48]. - The company is focusing on high-margin products, increasing the proportion of high-efficiency and high-color-rendering surface-mounted products[35]. - The company will increase its R&D investment in the communications sector to maintain a technological edge in the competitive 5G landscape[94]. - Research and development investments increased by 30%, focusing on innovative technologies and product enhancements[117]. Market and Sales Performance - The mobile terminal shipment exceeded 33 million units, a year-on-year growth of 15%, with significant contributions from brand clients like MOTO[34]. - The global LED market size reached 17.65 billion USD in 2021, with a year-on-year growth of 15.4%[40]. - The domestic smartphone shipment in China reached 340 million units in 2021, a year-on-year increase of 15.9%[39]. - The production and sales of mobile phones increased by 20.65% and 15.28% respectively, driven by market expansion efforts[58]. Governance and Compliance - The company has received a standard unqualified audit report from Huaxing Accounting Firm[5]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[5]. - The company has established specialized committees, including strategy, nomination, compensation and assessment, and audit, to oversee major investment decisions and executive performance[101]. - The company has implemented strict procedures for related party transactions, ensuring fairness and transparency, with independent directors reviewing significant transactions[102]. - The company has strengthened its governance structure in compliance with relevant laws and regulations, enhancing operational standards[104]. Risks and Challenges - The company faced significant challenges in 2021, including component shortages and rising procurement costs, leading to a decline in gross margins[33]. - The company outlined potential risks in its future development discussions, which are detailed in the management analysis section[10]. - The company faces risks from macroeconomic fluctuations, with the ongoing COVID-19 pandemic impacting global markets and leading to a significant decline in market demand[92]. Shareholder and Financial Management - The company has a comprehensive strategy for maintaining long-term shareholder interests, focusing on cash flow and strategic development[6]. - The company has not reported any instances of more than half of the directors being unable to guarantee the authenticity of the annual report[10]. - The company has established a performance-based salary system, linking employee income directly to performance to boost motivation and creativity[136]. - The company has a cash dividend policy ensuring a minimum payout ratio of 30% of the distributable profits from the last three years[167]. Future Outlook - Future outlook remains cautiously optimistic, with an emphasis on leveraging existing resources and capabilities to drive growth[112]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[117]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of 500 million CNY allocated for this purpose[117]. - The management team emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2030[117].