ADD(SH:603089)2022-04-21 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,610,663,736.51, representing a 41.57% increase compared to CNY 1,137,747,546.02 in 2020[23] - The net profit attributable to shareholders of the listed company decreased by 42.99% to CNY 62,653,682.11 from CNY 109,899,215.36 in the previous year[23] - The net profit after deducting non-recurring gains and losses increased significantly by 432.09% to CNY 23,073,280.27 from CNY 4,336,356.82 in 2020[23] - The cash flow from operating activities showed a negative net amount of CNY -31,766,344.26, a decrease of 136.81% compared to CNY 86,309,844.03 in 2020[23] - The total assets of the company increased by 22.96% to CNY 2,217,558,867.31 at the end of 2021, up from CNY 1,803,520,557.68 at the end of 2020[23] - The net assets attributable to shareholders of the listed company increased by 2.59% to CNY 1,049,847,161.57 from CNY 1,023,370,353.88 in the previous year[23] - Basic earnings per share were CNY 0.28, down 46.15% from CNY 0.52 in the previous year[25] - The weighted average return on equity was 6.06%, a decrease of 7.10 percentage points compared to the previous year[25] Revenue and Sales Growth - The company's operating revenue for the reporting period was CNY 1,610,663,736.51, an increase of 41.57% compared to the same period last year, driven by downstream market demand and gradual capacity release[25] - The company achieved a sales revenue of 30.71 million yuan from rubber shock absorber products in 2021, reflecting a continuous increase in sales as production capacity is released[37] - The company reported a quarterly revenue increase, with Q4 revenue reaching CNY 484,364,949.23, up from CNY 328,788,756.81 in Q1[28] - Revenue from other automotive parts surged by 158.26%, attributed to increased sales of rubber shock-absorbing products[67] Investment and Expansion - The company has invested 218 million yuan in the construction of a new project to produce 5 million rubber shock absorber products annually, enhancing its product variety to meet market demand[37] - The company is expanding its domestic market presence by collaborating with multiple automotive parts brand platform operators, leveraging the growing demand in the domestic aftermarket due to increasing vehicle ownership and age[35] - The company is establishing overseas logistics centers in North America to strengthen its global direct sales network and provide faster services to international customers[36] - The company has invested 227 million RMB in the construction of the Zhengyu Intelligent Manufacturing Park, which is currently in the infrastructure phase[92] Research and Development - Research and development expenses increased by 44.17% to 76,975,999.52 CNY, driven by new product development efforts[62] - The company has established a CNAS-certified R&D and testing center for shock absorbers, enhancing its product development capabilities and testing standards[38] - The company has a total of 360 R&D personnel, representing 10.91% of the total workforce, highlighting its commitment to research and development[78] - Total R&D investment accounted for 4.78% of operating revenue, indicating a strong focus on innovation[77] Market Strategy - The company aims to enhance its product structure and focus on high-end products like air suspension systems, which are gaining traction in the market[107] - The company plans to implement a "client-sharing development strategy" to expand its mid-to-high-end product offerings and focus on high-tech, high-value products[109] - The company plans to enhance its market share by focusing on a "dual circulation" strategy, emphasizing both domestic and international markets[112] - The international market strategy includes deepening customer service for three main categories: well-known auto parts importers, international auto parts groups, and industry peers in shock absorbers and seals[112] Risk Management - The company faces risks from a prolonged global economic downturn, which could slow the growth of global vehicle ownership and impact sales[114] - Currency fluctuation risks are present due to the company's reliance on exports, primarily denominated in USD and EUR, which could lead to significant exchange losses[115] - Raw material price volatility poses a risk, as the company relies on various materials, and failure to adjust product prices could negatively impact profitability[116] - Trade barriers in importing countries could adversely affect the company's export business and competitiveness in overseas markets[117] Corporate Governance - The company is committed to improving its corporate governance structure and internal control mechanisms to ensure compliance and protect shareholder interests[126] - The company has established a strategic committee to guide long-term planning and decision-making[143] - The company has independent directors serving in various capacities across multiple organizations, enhancing governance and oversight[134] - The company has implemented a performance evaluation mechanism for senior management, combining fixed and performance-based compensation to enhance accountability and operational stability[159] Environmental Responsibility - The company has established a comprehensive environmental management system certified by a third party, ensuring compliance with environmental laws and regulations[173] - Ningbo Hongyu has implemented measures to reduce carbon emissions, including the gradual elimination of high-energy-consuming equipment and the use of clean energy[174] - The company conducts annual inspections of wastewater, waste gas, and noise to ensure compliance with environmental standards[172] - Ningbo Hongyu was fined 200,000 yuan for exceeding air pollutant discharge standards and has since rectified the issue, ensuring compliance with environmental regulations[170] Employee Welfare and Training - Ningbo Hongyu emphasizes the importance of employee welfare, providing competitive salaries and various benefits, including social insurance and paid leave[176] - The company has implemented a training program tailored to different job categories and levels, enhancing employee skills and performance[152] - The total hours of outsourced labor amounted to 637,878, with total payments for outsourced labor reaching 1,608.17 million yuan[153] Shareholder Relations - The company plans to distribute cash dividends of 0.1 yuan per share for the 2021 fiscal year, totaling approximately 22,249,980.20 yuan, subject to shareholder approval[155] - The company has established a clear and transparent cash dividend policy, ensuring the protection of minority shareholders' rights[156] - The company reported a positive profit available for distribution to shareholders but did not propose a cash profit distribution plan, which is not applicable for this period[158]