SHENHUA HOLDINGS(SH:600653)2022-03-30 16:00Financial Performance - The net profit attributable to the parent company for 2021 was ¥41,339,186.24, a significant recovery from a loss of ¥755,591,522.33 in 2020, representing a 105.47% increase[5]. - Operating revenue for 2021 reached ¥7,097,882,961.37, reflecting a 2.90% increase compared to ¥6,898,070,442.10 in 2020[19]. - The net cash flow from operating activities was ¥429,737,976.91, up 8.47% from ¥396,195,117.61 in the previous year[19]. - The total assets decreased by 20.07% to ¥4,191,085,684.77 at the end of 2021, down from ¥5,243,290,054.41 in 2020[19]. - The net assets attributable to shareholders increased by 6.92% to ¥1,175,375,300.67 at the end of 2021, compared to ¥1,099,320,074.73 in 2020[19]. - Basic earnings per share for 2021 were ¥0.0212, a turnaround from a loss of ¥0.3882 per share in 2020, marking a 105.46% improvement[20]. - The weighted average return on equity increased by 54.37 percentage points to 3.648% in 2021, compared to -50.722% in 2020[20]. - The company reported a net profit of ¥140,909,253.55 for 2021, a significant recovery from a net loss of ¥681,620,010.37 in 2020[173]. - The gross profit margin improved to approximately 16.0% in 2021, compared to a negative margin in the previous year[173]. Business Segments - In 2021, the company's automotive sales revenue reached 6.56 billion RMB, a year-on-year increase of 7.38%, with a gross profit of 614 million RMB, up 34.27%[25]. - The company sold 16,723 BMW vehicles in 2021, representing a 4.37% increase year-on-year, while its self-owned brand sales dropped by 50.18% to 3,021 units[25]. - The automotive sales segment generated revenue of ¥6.88 billion, reflecting a year-on-year growth of 4.04%[44]. - The company operates four main business segments: automotive consumption services, renewable energy, real estate, and financial services[34]. - The real estate segment achieved a commercial property turnover rate exceeding 47%, with the Xiangshui International residential project nearly sold out[28]. Cash Flow and Investments - The company’s operating cash flow net amount was 0.43 billion RMB, up 8.47% compared to the previous year, attributed to higher cash receipts from sales[41]. - The company’s investment activities generated a net cash inflow of 0.47 billion RMB, a substantial increase of 130.12% year-on-year, mainly due to significant returns from the disposal of wind farm equity[41]. - The net cash flow from operating activities increased by 8.47% to ¥429,737,976.91 compared to ¥396,195,117.61 in the same period last year, primarily due to higher cash receipts from sales[54]. - The net cash flow from investing activities surged by 130.12% to ¥473,480,467.31, up from ¥205,758,179.01, mainly due to the recovery of funds from the disposal of wind farm equity investments[54]. Risks and Challenges - The company faces risks including economic and policy risks, intensified industry competition, and financing and financial risks, as detailed in the management discussion section[7]. - The company faces significant macroeconomic challenges, including demand contraction and supply shocks, impacting its automotive consumption business[77]. - The ongoing chip supply shortage, which began in 2021, is expected to continue into the second half of 2022, potentially affecting production capabilities[77]. Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and maintaining transparency in information disclosure[80]. - The board of directors and supervisory board are functioning independently, adhering to established rules and regulations to ensure effective oversight[81]. - The company held its annual general meeting on June 25, 2021, where key resolutions, including the election of directors and approval of financial reports, were passed[83]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to 5.2449 million yuan[84]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[88]. - The company plans to divest from non-core assets, including real estate and photovoltaic projects, to focus on its main automotive business and improve overall profitability[73]. - The forecast for China's total automobile sales in 2022 is 27.5 million units, with a 5.4% year-on-year growth, and new energy vehicles are projected to reach 5 million units, a 42% increase[72]. Legal and Compliance - The company is currently involved in significant litigation matters, including a case where it is seeking a total of RMB 21,973,731.31 from two defendants for various fees and compensation related to a terminated contract[118]. - The company has not faced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[110]. - The company has not reported any shareholding changes among its directors and supervisors during the reporting period[84]. Employee and Training - The total number of employees in the parent company and major subsidiaries is 1,902, with 58 in the parent company and 1,844 in subsidiaries[97]. - The company conducted training for 257 participants, totaling 2,045 hours in 2021, aimed at enhancing employee skills and management capabilities[99].