TRIANGLE TYRE(SH:601163)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was CNY 8,954,386,534.49, representing a 4.91% increase from CNY 8,535,343,968.60 in 2020[16]. - Net profit attributable to shareholders decreased by 43.35% to CNY 600,406,918.38 from CNY 1,059,895,107.87 in the previous year[16]. - The net cash flow from operating activities fell by 64.95% to CNY 471,680,988.43, down from CNY 1,345,645,000.94 in 2020[16]. - Basic earnings per share decreased by 43.18% to CNY 0.75, compared to CNY 1.32 in 2020[16]. - The weighted average return on equity dropped to 5.46%, down from 10.13% in the previous year, a decrease of 4.67 percentage points[16]. - The total assets at the end of 2021 were CNY 16,738,781,984.91, a slight increase of 0.51% from CNY 16,653,519,724.13 in 2020[16]. - The net assets attributable to shareholders increased by 2.62% to CNY 11,145,136,308.02 from CNY 10,860,093,303.69 in 2020[16]. - The company achieved a revenue ranking of 21st in the global tire industry according to the "Tire Business" published in August 2021[56]. - The company reported a total of 426,874,642.71 CNY in R&D expenses, accounting for 4.77% of total operating revenue[78]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 2.3 yuan per 10 shares, totaling approximately 184 million yuan (before tax) based on a total share capital of 800 million shares as of December 31, 2021[3]. - For the 2021 fiscal year, the proposed cash dividend is 184 million RMB, which is 30.65% of the net profit attributable to shareholders[156]. - The company distributed cash dividends of 320 million RMB for the 2020 fiscal year, representing 30.19% of the net profit attributable to shareholders[156]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements related to future strategies and financial conditions[3]. - The company has detailed the existing risk matters in the report, specifically in section three[3]. - The company is implementing strategies to mitigate risks from raw material price fluctuations, particularly for natural and synthetic rubber[120]. - The company continues to navigate challenges posed by the COVID-19 pandemic, focusing on logistics efficiency and maintaining close communication with customers[122]. Corporate Governance - The company has established a scientific and standardized corporate governance structure, ensuring effective execution of internal systems and compliance with legal regulations[123]. - The board of directors and its committees operated in accordance with regulations, with all directors fulfilling their duties diligently and attending relevant meetings[123]. - The company maintained independence from its controlling shareholder, with no interference in decision-making processes, and minimal related party transactions that were conducted in compliance with regulations[126]. - The company has a complete and independent business operation capability, with no significant impact from potential competition with its controlling shareholder[127]. - The company has established a comprehensive corporate governance system in accordance with the Company Law and Securities Law, ensuring a well-structured and regulated operation[161]. Environmental and Sustainability Efforts - The company has implemented an ISO14001 environmental management system since May 1999 and has continuously improved its environmental performance[165]. - The company has been recognized as a pioneer in low-carbon green development in the tire industry and was designated as a green design demonstration enterprise by the Ministry of Industry and Information Technology in 2019[176]. - The company has committed to sustainable practices, emphasizing the use of low-carbon and environmentally friendly materials in tire production[110]. - The company has invested in the construction and renovation of environmental protection facilities over the years, enhancing treatment capacity and efficiency, and reducing emissions of dust, VOCs, ammonia nitrogen, and COD[176]. - The company has implemented energy-saving and carbon reduction measures across various processes, contributing to a new standard of "low carbon, green, environmentally friendly, and efficient" production in the tire industry[180]. Product Development and Innovation - The company launched over 160 new products during the reporting period, enhancing product series and performance[28]. - New product innovations included ultra-low rolling resistance tires that save over 5% in fuel consumption and high-mileage tires with a lifespan exceeding 600,000 kilometers[28]. - The company is committed to R&D in tire patterns and mechanical performance, focusing on new materials and technologies, including self-repairing and noise-reducing tires[114]. - The company has established a research and development strategy focusing on high-performance and specialized tires, with a dedicated international research team including 54 senior engineers and 115 engineers[91]. Market and Sales Performance - In 2021, the company produced 25.04 million tires, a year-on-year increase of 8.7%, and sold 24.04 million tires, a year-on-year increase of 1.7%[25]. - The company achieved a 24% increase in overseas sales of engineering tires, capitalizing on global market recovery despite shipping challenges[25]. - The company plans to continue expanding its product offerings and market reach, leveraging its established global marketing network covering over 180 countries[47]. - The company is focusing on digital transformation across various systems, including marketing, R&D, and supply chain management, enhancing production efficiency and management[31]. Challenges and Industry Trends - The company experienced a significant increase in raw material procurement costs, impacting profit margins and cash flow[19]. - The prices of key raw materials surged in 2021, with natural rubber up 24%, synthetic rubber up 44%, and carbon black up 49%, significantly impacting operating costs[28]. - The heavy-duty truck market faced challenges in 2021, with commercial vehicle production declining by 10.7% due to regulatory changes and market pressures[45]. - The global electric vehicle market saw a significant increase, with sales growing by 109% in 2021, indicating a shift in market demand that may benefit the tire sector[46]. Employee and Management Information - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 5.2482 million[146]. - The company has implemented a dual-track management mechanism for career development, enhancing employee promotion pathways[153]. - In 2021, the company conducted seven major training programs to improve employee skills and support its global brand strategy[153]. - The total number of employees is 5,386, with 3,806 in production, 219 in sales, 917 in technology, 100 in finance, and 344 in administration[153].