AEROSPACE POWER(SH:600343)2022-04-28 16:00Financial Performance - The company reported a net profit attributable to shareholders of -257.94 million RMB in 2021, a decrease of 1,034.14% compared to the previous year[19]. - Operating revenue for 2021 was 1.23 billion RMB, down 1.84% from 1.25 billion RMB in 2020[19]. - The company achieved a revenue of 1.18 billion RMB after deducting non-core business income, reflecting a growth of 2.36% year-over-year[19]. - The company reported a total revenue of 1.226 billion RMB for 2021, with a net profit attributable to the parent company of -258 million RMB[27]. - The basic earnings per share for 2021 was -0.404168 RMB, a decrease of 1,034.14% compared to 2020[21]. - The weighted average return on equity decreased by 13.86 percentage points to -12.76530% in 2021[21]. - The company experienced significant asset impairments due to the closure of the hydraulic pump business and rising raw material costs, leading to a substantial decline in gross profit margin[27]. - In Q4 2021, the company achieved a revenue of 440.19 million RMB, but reported a net loss of -189.16 million RMB attributable to shareholders[22]. - The company reported a revenue of 1,225.9986 million yuan, a decrease of 1.84% year-on-year[50]. - The net profit attributable to shareholders was -257.9423 million yuan, a significant decrease of 1034.14% compared to the previous year[50]. Cash Flow and Investments - The net cash flow from operating activities increased significantly to 192.29 million RMB, a rise of 2,551.67% compared to the previous year[19]. - The company recorded a net cash flow from operating activities of 258.61 million RMB in Q4 2021, indicating a recovery in cash generation[22]. - The net cash flow from operating activities was 192.2867 million yuan, a substantial increase of 2,551.68% compared to the previous year[50]. - The company incurred a net cash outflow from investing activities of -105.9683 million yuan, a decrease of 310.07% year-on-year[50]. - The net cash outflow from financing activities was -73.3034 million yuan, a significant decrease of 3,191.51% compared to the previous year[50]. Operational Challenges - The company faced external pressures from the pandemic, power restrictions, and intense market competition, impacting overall operational performance[27]. - The company experienced a decline in overall revenue from pump products due to a significant reduction in spare parts orders, impacting performance[40]. - The company is addressing investment risks related to the automotive torque converter project, which is nearing completion, while managing supply chain optimization due to chip shortages[103]. - The company faces cost pressures from rising raw material prices and plans to implement cost reduction strategies and negotiate price increases with customers[103]. Strategic Focus and Development - The company plans not to distribute cash dividends or issue bonus shares for 2021 due to the negative net profit, retaining profits for future operational and development needs[3]. - The company plans to continue focusing on high-quality development and deepening reforms in response to market challenges[27]. - The company aims to enhance its competitive edge by focusing on high-quality development through asset optimization and innovative enterprise construction[99]. - The company aims to enhance core technology capabilities in fluid machinery and develop automation and digitalization to transition from a single equipment manufacturer to a service provider[100]. - The company is exploring new strategies to optimize supply chain operations, which could lead to cost reductions and improved margins[118]. Research and Development - The company applied for a total of 72 patents during the reporting period, with 56 being invention patents, marking the first time that invention patents exceeded 70%[48]. - R&D expenses totaled ¥6,345.85 million, representing 5.18% of operating revenue[67]. - Capitalized R&D expenditures amounted to ¥998.33 million, contributing to the total R&D investment[67]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing product efficiency[121]. - Research and development investments are set to increase by 60.23%, aimed at fostering innovation and improving product offerings[118]. Market Trends and Opportunities - The chemical industry, relevant to the company's operations, saw a 30% increase in revenue in 2021, indicating a growing market opportunity[29]. - In 2021, China's industrial vehicle sales exceeded 1 million units for the first time, reaching 1.0994 million units, a year-on-year increase of 37.38%[36]. - The domestic market for industrial vehicles achieved sales of 783,600 units, up 26.67% year-on-year, while exports reached 315,800 units, increasing by 73.80%[36]. - The engineering machinery industry in China saw its revenue surpass 800 billion yuan in 2021, with a projected increase to 835.3 billion yuan in 2022[37]. - The demand for fire trucks in China was approximately 7,058 units in 2021, with water tank fire trucks remaining the primary vehicle type[33]. Governance and Compliance - The company’s financial statements received a standard unqualified audit report from Zhongxinghua Accounting Firm[3]. - The company has established a comprehensive governance structure and internal control system in accordance with relevant laws and regulations[155]. - The company maintained effective internal control over financial reporting as of December 31, 2021, according to the internal control audit report by Zhongxinghua Accounting Firm[154]. - The company has not reported any significant litigation or arbitration matters for the current year, indicating a stable legal standing[169]. Shareholder and Investor Relations - The total number of ordinary shareholders increased from 75,747 to 93,735 during the reporting period, indicating a growing investor interest[196]. - The controlling shareholder, Xi'an Aerospace Technology Industry Co., Ltd., holds 28.78% of the company's shares, with a total of 230,923,426 shares when considering both direct and indirect holdings[195]. - The company has not disclosed any strategic investors or general legal entities becoming top ten shareholders through new share placements[198]. - The company actively engages with investors through various communication channels to ensure transparency and informed decision-making[109].