Whirlpool (China) (SH:600983)2022-04-21 16:00Financial Performance - In 2021, Whirlpool (China) reported a net profit attributable to shareholders of -588,940,729.11 RMB, a significant decline compared to -149,701,660.11 RMB in 2020, representing a 293.41% increase in losses[4] - The company's total revenue for 2021 was 4,931,163,697.11 RMB, a slight decrease of 0.26% from 4,944,067,835.28 RMB in 2020[20] - Basic earnings per share for 2021 was -0.77 yuan, a decrease of 293.41% compared to -0.20 yuan in 2020[22] - The company reported a net profit of -5.889 billion yuan in 2021, compared to -1.497 billion yuan in 2020, indicating a significant increase in losses[23] - The net profit after deducting non-recurring gains and losses was CNY -667.98 million, down 105.09% from the previous year[52] - The company’s unallocated profits at the end of 2021 were 695,368,416.41 RMB, with 170,390,496.80 RMB available for distribution to shareholders[4] - The company plans not to distribute cash dividends or issue bonus shares for the 2021 fiscal year due to the reported losses[4] Cash Flow and Assets - The net cash flow from operating activities improved by 56.70%, reaching -343,878,911.90 RMB in 2021, compared to -794,260,315.40 RMB in 2020[20] - As of the end of 2021, the total assets of Whirlpool (China) were 5,952,640,949.98 RMB, down 15.12% from 7,013,158,653.76 RMB at the end of 2020[20] - The net cash flow from investing activities surged by 456.43% to 991,108,667.67 RMB from 178,120,298.82 year-on-year[54] - The net cash flow from financing activities was -15,244,014.64 RMB, showing a decrease of 75.79% compared to the previous year[66] - Total assets at the end of the reporting period were significantly impacted, with trading financial assets decreasing by 62.23% to 653,397,588.08 RMB[68] - Accounts receivable dropped by 70.61% to 86,999,037.81 RMB due to a decline in domestic sales revenue[68] Market and Product Development - Revenue for 2021 was approximately 49.31 billion yuan, showing a slight decline from 49.44 billion yuan in 2020, primarily due to the exit of the Sanyo brand and reduced domestic demand[22] - The company plans to enhance its product offerings in high-end washing machines, dryers, and dishwashers to meet diverse consumer demands[46] - The company launched new products including the Fresh Care+ series washing and drying set and the W11 series dishwasher, focusing on health technology and tailored for Chinese households[39] - The company aims to leverage its global supply chain advantages and innovate its management system for sustainable development[30] - The company plans to expand its product categories in kitchen appliances, particularly dishwashers and integrated stoves, to create new growth points[77] Strategic Initiatives and Management - The company plans to increase R&D investment and enhance domestic sales through brand integration and product quality improvements, aiming for better operational performance in 2022[23] - The company has improved internal operational efficiency through management reforms, including a focus on in-house production of components previously outsourced[35] - Whirlpool (China) aims to strengthen its competitive position through potential mergers and acquisitions[92] - The company is committed to a dual-brand strategy, focusing on high-quality growth in the Chinese market through online platforms and new retail models[77] - Following a change in control due to a takeover, the new management is committed to executing strategic plans to safeguard investor interests[80] Environmental and Social Responsibility - The company’s wastewater discharge from the Nankang Industrial Park was 145,681.245 tons, with chemical oxygen demand averaging 52.28 mg/L, all within permissible limits[125] - The company has established an emergency response plan for environmental incidents, detailing procedures and responsibilities for various potential environmental hazards[130] - The company completed a carbon assessment report in 2020 and is currently organizing the 2021 carbon assessment work, aiming to establish a carbon peak and carbon neutrality roadmap[134] - This report marks the company's 14th social responsibility report, detailing its commitment to social responsibility initiatives[135] Governance and Compliance - The company has established measures to maintain independence from its controlling shareholder, ensuring no conflicts of interest arise in operations[81] - The company received a notice of investigation from the China Securities Regulatory Commission due to suspected false disclosures in its 2015 and 2016 annual reports[101] - The company was penalized by the China Securities Regulatory Commission for the aforementioned issues, concluding the investigation[102] - The company has not faced any violations regarding guarantees during the reporting period[143] - The company has confirmed that there are no issues regarding the integrity and honesty of its management[145] Shareholder and Ownership Changes - Gree Electric Appliances acquired 51.10% of Whirlpool (China) shares, increasing its stake to 56.19% by the end of the reporting period[8] - The company underwent a change in shareholder structure due to the completion of a tender offer, leading to a re-election of the board of directors and supervisors[94] - The previous controlling shareholder, Whirlpool (China) Investment Co., Ltd., reduced its holdings by 238,362,839 shares, now holding 152,521,361 shares, which is 19.9% of the total share capital, making it the second-largest shareholder[168] - The actual controllers of the company are Liang Zhaoxian and Liang Huiqiang, who also control other companies, including a significant stake in Zojirushi Co., Ltd. (15.51%)[169] Employee and Training Initiatives - Approximately 500 students participated in the company's school-enterprise cooperation program, with a significant number choosing to remain with the company post-graduation[115] - The company implemented an online learning platform to enhance employee training, resulting in improved productivity and efficiency[114] - The employee composition includes 667 production staff, 497 sales personnel, 285 technical staff, 91 financial staff, and 114 administrative staff[112] - The company emphasizes a performance-based compensation policy, linking employee salaries to performance and capabilities to enhance internal efficiency[113]