Kehua Holdings(SH:603161)2022-04-27 16:00Financial Performance - The net profit attributable to shareholders for 2021 was a loss of RMB 46,756,298.66, resulting in a cumulative undistributed profit of RMB 334,586,685.71 as of December 31, 2021[6]. - The company will not distribute cash dividends, issue bonus shares, or increase capital from reserves for the 2021 fiscal year due to the negative net profit[6]. - The company has reported a total of RMB 400,405,614.94 in undistributed profits at the beginning of the year, with cash dividends of RMB 16,808,400.00 distributed for the previous year[6]. - The company's operating revenue for 2021 was CNY 1,896,887,672.44, representing a year-on-year increase of 16.94% compared to CNY 1,622,153,523.64 in 2020[24]. - The net profit attributable to shareholders of the listed company was a loss of CNY 46,756,298.66, a decrease of 324.11% compared to a profit of CNY 20,862,718.00 in 2020[24]. - The basic earnings per share for 2021 was -CNY 0.35, a decrease of 318.75% from CNY 0.16 in 2020[25]. - The weighted average return on equity was -3.67%, down from 1.61% in 2020, indicating a significant decline in profitability[25]. - The company reported a significant decline in net profit in the fourth quarter, primarily due to delayed price adjustments by customers and inventory impairment provisions[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 84,562,619.00, compared to a profit of CNY 326,494.82 in 2020[24]. - The net cash flow from operating activities increased by 145.12% to CNY 297,872,970.34 from CNY 121,521,526.29 in the previous year[24]. Risk Management and Compliance - The company has detailed potential risks in its management discussion and analysis section, which investors are advised to review[9]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company has not faced any situations where more than half of the directors could not guarantee the report's authenticity[8]. - The company is monitoring external factors such as raw material prices and market conditions that could adversely affect its profitability[99]. - The company will mitigate foreign exchange risks by monitoring foreign currency transactions and may use forward foreign exchange contracts[99]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[121]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[183]. Corporate Governance - The board of directors and supervisory board members have all attended the board meeting, ensuring the report's authenticity and completeness[4]. - The company has not engaged in any mergers or acquisitions during the reporting period[109]. - The company’s board of directors and management team have remained consistent, which is expected to contribute to stable governance and strategic direction[110]. - The company has established a subsidiary management system to enhance support, guidance, and management of subsidiaries, ensuring compliance with the Company Law and improving corporate governance[148]. - The company has undergone changes in its board, with several directors and independent directors being elected or resigning during the reporting period[120]. - The company has implemented a long-term mechanism to prevent issues related to independent directors serving over six years, including regular training and compliance checks[151]. Research and Development - Research and development expenses for 2021 amounted to 66.56 million yuan, with 12 patent applications filed and 6 patents granted, including 5 invention patents[36]. - The company has successfully developed new products, including a collaboration with Daimler Group on electric vehicle motor products, and is supplying hybrid products to major automotive brands[36]. - The company has a strong focus on R&D capabilities and cost control, which are critical for maintaining its competitive edge in the automotive parts sector[90]. - The total R&D investment represented 3.51% of the operating revenue, highlighting the company's commitment to technological advancement[67]. - The company has 300 R&D personnel, accounting for 10.43% of the total workforce, indicating a strong focus on innovation[68]. Market and Industry Trends - The automotive industry, which the company operates in, saw a production and sales increase of 3.40% and 3.80% respectively in 2021, with new energy vehicle sales skyrocketing by 159.52%[38]. - Global automotive production reached 80.15 million units in 2021, marking a 3.13% increase year-on-year, while global sales rose by 4.96% to 82.68 million units[39]. - The company is focusing on expanding its product offerings beyond turbochargers to include other key automotive components, such as differential housings[43]. - The implementation of stricter environmental regulations is driving demand for turbochargers, presenting new market opportunities for the company[41]. - The company plans to expand its overseas market presence, particularly in Asia and Europe, while enhancing cooperation with existing international clients to increase its market share[95]. Financial Management - The company has established a flexible and effective compensation system, with production workers on a monthly salary and managerial staff on an annual salary linked to performance[134][135]. - The company emphasizes a stable cash dividend policy, prioritizing cash dividends over stock dividends, and plans to distribute dividends annually if conditions are met[138]. - The company has a cash dividend policy requiring at least 10% of the distributable profit to be distributed in cash annually, with a cumulative distribution of at least 30% over the last three years[139]. - The company will strengthen cost management and budget control to improve cash flow and maintain adequate cash reserves for daily operations[98]. - The company faces funding pressure as it relies on internal accumulation and bank loans for capital, which may not meet the needs for capacity expansion[97]. Environmental and Social Responsibility - The company is focused on green and sustainable development, implementing clean production practices and investing in necessary environmental protection equipment[168]. - The company has committed to distributing at least 10% of its distributable profits in cash dividends annually, ensuring a minimum of 30% distribution over the last three years[178]. - The company actively participated in poverty alleviation efforts by creating job opportunities and supporting local communities through donations[166]. - Environmental protection measures are in place, with all key pollutant discharge units operating in accordance with national laws and regulations[159]. - The company conducts regular environmental monitoring, including air and water quality assessments, in compliance with regulatory requirements[162]. Shareholder Relations - The company engages with minority shareholders to gather opinions before finalizing dividend proposals[140]. - The company has a commitment to not transfer or delegate shares held by major shareholders for a period of 36 months following the IPO[173]. - The company has a plan to gradually reduce shareholdings after the lock-up period, adhering to relevant regulations[175]. - The company reported a total guarantee amount of 35,000,000.00 RMB, which accounts for 2.81% of the company's net assets[188]. - The actual related party transaction amount with Chen Hongmin was 271,691.58 RMB, compared to the estimated amount of 300,000.00 RMB[184].