日出东方(603366) - 2021 Q4 - 年度财报

Glossary This section provides definitions for key terms used throughout the report Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key financial performance over the last three years Company Information This chapter outlines the company's basic corporate information, including contact details, stock listing on the Shanghai Stock Exchange (603366.SH), and information disclosure channels - The company's Chinese name is Sunrise East Holdings Co., Ltd., with stock abbreviation Sunrise East, listed on the Shanghai Stock Exchange under stock code 603366[15][20] Key Accounting Data and Financial Indicators for the Past Three Years In 2021, the company experienced significant growth in operating revenue and net profit, despite a substantial decrease in net cash flow from operating activities due to increased inventory Key Accounting Data for the Past Three Years | Major Accounting Data | 2021 | 2020 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4.206 billion yuan | 3.543 billion yuan | 18.71% | | Net Profit Attributable to Shareholders of Listed Company | 213 million yuan | 170 million yuan | 24.92% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 174 million yuan | 117 million yuan | 48.63% | | Net Cash Flow from Operating Activities | 139 million yuan | 430 million yuan | -67.56% | | Asset Situation | End of 2021 | End of 2020 | Period-End vs. Prior Period-End Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 3.597 billion yuan | 3.344 billion yuan | 7.55% | | Total Assets | 6.276 billion yuan | 6.208 billion yuan | 1.10% | Key Financial Indicators for the Past Three Years | Major Financial Indicators | 2021 | 2020 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.2656 | 0.2126 | 24.93% | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (yuan/share) | 0.2156 | 0.1464 | 47.27% | | Weighted Average Return on Net Assets (%) | 6.12% | 5.23% | Increased by 0.89 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 5.01% | 3.60% | Increased by 1.41 percentage points | Key Quarterly Financial Data for 2021 (Unit: Yuan) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 710,029,294.32 | 1,141,438,353.56 | 1,002,978,179.05 | 1,351,112,658.79 | | Net Profit Attributable to Shareholders of Listed Company | -21,377,260.06 | 56,195,871.32 | 26,492,808.98 | 151,198,771.98 | | Net Cash Flow from Operating Activities | -195,477,290.83 | 139,745,304.48 | -164,868,482.18 | 360,025,389.45 | - Total non-recurring gains and losses in 2021 amounted to 38.4082 million yuan, primarily from government subsidies (31.9078 million yuan) and entrusted wealth management income (28.1044 million yuan)[29][30] Management Discussion and Analysis Management discusses the company's operational performance, industry landscape, core competencies, and outlines future development strategies and associated risks Discussion and Analysis of Operations In 2021, the company advanced its "horizontal and vertical" strategy in smart home appliances and clean energy, enhancing operational efficiency and market competitiveness through strategic initiatives - The company continued to advance its "horizontal and vertical" strategy: "horizontal" focuses on smart home appliances centered on kitchen and bathroom, while "vertical" focuses on clean energy for power, heating, and hot water[31] - The company's three major brands, Sunrain, Himin Solar, and Shuaikang, continued brand building through CCTV advertising, program sponsorship, and national team endorsements to enhance brand influence[31][32] - The first phase of the company's Lianyungang heat pump manufacturing base commenced operations in June 2021, establishing two major heat pump manufacturing bases in Lianyungang and Shunde, increasing production capacity[33] - The company implemented an equity incentive plan and cultivated a core management team using partner and Amoeba mechanisms to stimulate organizational vitality[33] Industry Overview During the Reporting Period This section reviews the solar thermal, air energy, and kitchen appliance industries, highlighting clean energy opportunities, robust air energy growth, and a dynamic integrated stove market - Solar thermal utilization industry: In 2021, the total newly added solar collector systems reached 27.052 million square meters, a slight year-on-year increase, with vacuum tube types accounting for 73.7% and flat plate types for 26.3%[34] - Air energy industry: In 2021, total sales of air source heat pumps reached 15.7 billion yuan, a year-on-year increase of 31.9%, with domestic sales growing by 16.4% and export sales by 102.3%[35] - Kitchen appliance industry: In 2021, traditional kitchen appliance retail volume decreased by 9%, while retail value increased by 2%, with the integrated stove market showing strong performance, retail volume growing by 28% and retail value by 41%[36] Company Business During the Reporting Period The company operates in water heaters, clean energy heating, kitchen appliances, and water purification under three brands, leveraging multi-brand, engineering, channel, innovation, and multi-base capabilities - The company primarily engages in the R&D, production, and sales of water heaters (solar, air energy, electric, gas), clean energy heating, kitchen appliances, and water purification products[37] - Core competencies include: - Multi-brand operation: Owning three well-known brands—Sunrain, Himin Solar, and Shuaikang—with clear positioning - Engineering capabilities: Leading engineering capabilities in clean energy applications, successfully implementing over 20,000 projects - Omni-channel management: Sales network fully covering national urban and rural markets and over 100 countries and regions overseas - Professional innovation: Strong competitiveness in air source heat pump technology, multi-energy complementary solutions, and healthy kitchen products - Multi-base layout: Possessing multiple R&D and manufacturing bases in Lianyungang, Shunde, Luoyang, Yuyao, Tibet, and other locations[41][42][44][45][46] Key Operating Performance During the Reporting Period In 2021, operating revenue grew by 18.71% and net profit by 24.92%, driven by strong air energy and electric water heater sales, despite declining gross margins and significantly reduced operating cash flow Changes in Key Income Statement and Cash Flow Statement Items in 2021 | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,205,558,485.72 | 3,542,740,925.35 | 18.71 | | Operating Cost | 2,964,592,590.46 | 2,430,981,837.42 | 21.95 | | Selling Expenses | 799,774,307.99 | 658,707,875.52 | 21.42 | | Research and Development Expenses | 154,808,777.43 | 116,262,902.50 | 33.15 | | Net Cash Flow from Operating Activities | 139,424,920.92 | 429,790,397.28 | -67.56 | | Net Cash Flow from Investing Activities | 38,283,438.20 | 345,147,082.45 | -88.91 | Main Business by Product | Product Category | Operating Revenue (Yuan) | Year-on-Year Change in Operating Revenue (%) | Gross Margin (%) | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Solar Water Heaters | 1,701,032,184.67 | 3.96 | 28.22 | Decreased by 2.01 percentage points | | Air Energy | 605,682,644.69 | 120.38 | 21.34 | Decreased by 3.23 percentage points | | Kitchen Appliances | 888,412,497.82 | 24.70 | 37.08 | Decreased by 1.18 percentage points | | Electric Water Heaters | 509,656,914.18 | 61.23 | 31.36 | Increased by 3.06 percentage points | | Wall-mounted Boilers | 36,836,646.54 | -77.96 | 27.74 | Decreased by 0.68 percentage points | Production and Sales Volume of Main Products | Main Products | Production Volume (units/sets) | Sales Volume (units/sets) | Year-on-Year Change in Production Volume (%) | Year-on-Year Change in Sales Volume (%) | | :--- | :--- | :--- | :--- | :--- | | Solar Water Heaters | 1,156,388 | 1,163,220 | 25.72 | 29.42 | | Air Energy | 114,224 | 105,863 | 66.10 | 56.58 | | Kitchen and Bathroom Products | 843,455 | 826,395 | 35.09 | 19.56 | | Electric Water Heaters | 686,176 | 671,623 | 2.27 | -2.42 | - Total R&D investment was 155 million yuan, accounting for 3.68% of operating revenue, with expensed R&D investment increasing by 33.15% year-on-year, primarily due to increased investment in new product development[58][49] Performance of Major Holding and Participating Companies (Unit: Million Yuan) | Company Name | Main Business | Total Assets | Net Assets | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Sunrain | Solar water heater R&D and sales | 518.4245 | 189.0229 | 10.1994 | | Himin Solar | Solar water heater R&D and sales | 610.4712 | 273.4750 | 68.3814 | | Guangdong Air Energy | Air energy product production, sales | 311.5930 | 142.8079 | 11.0910 | | Shuaikang Electric | Kitchen appliance R&D, production, sales | 1,023.2610 | 233.9127 | 31.7622 | Company's Discussion and Analysis of Future Development The company will continue its "horizontal and vertical" strategy, focusing on consumer upgrades and green energy, with 2022 plans emphasizing marketing, R&D, production, and mechanism innovation, while addressing key risks - The company's development strategy continues to focus on 'horizontal and vertical': horizontally expanding home appliance business centered on kitchen and bathroom scenarios, and vertically deepening heat energy business centered on clean thermal energy[72] - 2022 Operating Plan: - Marketing: Strengthen channel construction, focus on segmented markets, and enhance brand influence - R&D: Deepen air energy technology, develop 'Solar+' solutions, and develop products around 'integrated healthy kitchens' - Production: Promote smart factory construction, reduce costs, and improve quality - Mechanisms: Continuously advance organizational reform and mechanism innovation to stimulate organizational vitality[73][74][75][76] - Key risks faced by the company include: macroeconomic uncertainty, the impact of real estate regulation policies on the kitchen appliance business, and cost pressure from rising raw material prices[77] Corporate Governance This section details the company's governance structure, emphasizing regulatory compliance, independence from controlling shareholders, and diligent performance by its board, supervisors, and senior management Explanation of Corporate Governance Related Matters The company maintains a robust corporate governance structure, ensuring independence from its controlling shareholder and diligent performance of duties by its board, supervisors, and senior management - The company's corporate governance structure is sound, operating strictly in accordance with laws and regulations such as the 'Company Law' and 'Securities Law', maintaining 'five separations' from its controlling shareholder in terms of personnel, assets, finance, organization, and business[81] Brief Introduction to Shareholders' Meetings In 2021, the company held 4 shareholder meetings and 10 board meetings, approving key matters and ensuring committees fulfilled their decision-making and oversight responsibilities - A total of 4 shareholders' meetings were held in 2021, approving important proposals such as the '2020 Annual Report', '2020 Annual Profit Distribution Plan', and '2021 Restricted Stock Incentive Plan (Draft)'[82][85] - A total of 10 board meetings were held during the reporting period, reviewing proposals related to the company's operations, finance, investments, and equity incentives[99][100] Information on Directors, Supervisors, and Senior Management This section details the appointments, shareholding changes, and remuneration of directors, supervisors, and senior management, highlighting equity incentive-driven share increases and personnel transitions Shareholding Changes and Remuneration of Some Directors and Senior Management | Name | Position | Shares Held at Year-End | Change in Shares During the Year | Reason for Change | Total Pre-tax Remuneration (Million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Xu Xinjian | Chairman | 9,969,576 | 0 | - | 1.00 | | Wan Xuchang | Director, General Manager | 1,114,600 | 400,000 | Equity Incentive | 1.00 | | Sun Mingyang | Director, Deputy General Manager | 450,000 | 450,000 | Equity Incentive | 1.00 | | Li Jun | Deputy General Manager | 1,794,000 | 840,000 | Equity Incentive | 1.00 | | Chen Ronghua | Deputy General Manager | 1,364,600 | 620,000 | Equity Incentive | 1.00 | | Total | / | 17,703,676 | 3,780,000 | / | 10.33027 | Employee Information of Parent Company and Major Subsidiaries at the End of the Reporting Period As of the reporting period, the company had 4,710 employees, predominantly in sales and production, and implemented a restricted stock incentive plan in 2021 to motivate core personnel Employee Professional Structure | Professional Category | Number of Employees | Proportion | | :--- | :--- | :--- | | Production Personnel | 1,633 | 34.7% | | Sales Personnel | 2,279 | 48.4% | | Technical Personnel | 491 | 10.4% | | Financial Personnel | 70 | 1.5% | | Administrative Personnel | 237 | 5.0% | | Total | 4,710 | 100% | - The company implemented a restricted stock incentive plan in 2021, granting 22.9 million restricted shares to 497 incentive recipients at 2.22 yuan/share[115] Environmental and Social Responsibility The company actively pursues environmental and social responsibilities, focusing on carbon reduction through research centers and new energy projects, alongside disaster relief and community support initiatives Environmental Information The company actively responds to "dual carbon" goals by establishing carbon neutrality research centers and a new photovoltaic subsidiary to promote clean energy and reduce emissions - Sunrain established the clean thermal energy industry's first carbon neutrality research center, aiming to tackle carbon emission reduction standard challenges in solar thermal utilization, air source heat pumps, and other fields[125] - The company established Jiangsu Sunrise East Photovoltaic Co., Ltd., participating in county-wide (district, city) rooftop distributed photovoltaic projects to achieve carbon reduction and emission reduction through clean energy utilization[125] Social Responsibility Work The company actively fulfills social responsibilities through various public welfare funds, including disaster relief efforts and "Sunshine Bathroom" and "Warm Campus" projects benefiting vulnerable groups and schools - In response to major disasters such as the heavy rainfall in Henan, the company immediately launched donation plans and carried out emergency relief work[126] - Sunrain continued to promote the 'Sunshine Bathroom' project to assist people with disabilities; Himin Solar launched the 'Warm Campus' project, donating water purification and hot water systems to 5 schools in Guizhou, Jiangsu, Sichuan, and other regions, benefiting over 2,000 teachers and students[126] Significant Matters This section covers the fulfillment of commitments, significant related-party transactions, and major contracts and guarantees, including performance compensation and financial assistance from the controlling shareholder Fulfillment of Commitments The controlling shareholder fulfilled its non-compete commitment, and the performance compensation for the Shuaikang Electric acquisition was fully paid in 2021 - The performance commitment for the acquisition of Shuaikang Electric was not met, and the performance compensation party was required to pay the company 81.50 million yuan in compensation[147] - The company received the full performance compensation of 81.50 million yuan on July 22, 2021, and the related performance commitment compensation obligations have been fulfilled[148] Significant Related-Party Transactions A significant related-party transaction involved the controlling shareholder, Sunrain Holdings, providing up to 500 million yuan in interest-free financial assistance until November 2023 - The company's controlling shareholder, Sunrain Holdings, provided interest-free financial assistance totaling no more than 500 million yuan to the company, with a term until November 17, 2023[149] Major Contracts and Their Fulfillment The company's external guarantees are limited to subsidiaries, with a manageable balance of 22 million yuan, and it also engaged in entrusted wealth management using its own funds - As of the end of the reporting period, the total guarantee balance for subsidiaries was 22 million yuan, accounting for 0.60% of the company's net assets[152] Overall Entrusted Wealth Management (Unit: Yuan) | Type | Source of Funds | Amount Incurred | Unmatured Balance | Overdue Unrecovered Amount | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 861,000,000 | 0 | 0 | | Brokerage Wealth Management Products | Own Funds | 150,000,000 | 50,000,000 | 0 | | Private Equity Fund Products | Own Funds | 244,339,703.42 | 128,758,813.81 | 0 | | Securities Investment Products | Own Funds | 84,132,974.25 | 0 | 0 | Share Changes and Shareholder Information This section details changes in the company's share capital, primarily due to an equity incentive plan, and provides an overview of its shareholders and actual controller Changes in Share Capital The company's total share capital increased from 800 million to 822.9 million shares due to the 2021 restricted stock incentive plan, with the new shares being restricted - The company's total share capital increased from 800 million shares to 822.9 million shares, with the newly added 22.9 million shares being restricted shares[161] - The change in share capital was due to the company completing the registration of restricted stock grants on October 12, 2021, granting 22.9 million restricted shares to 497 incentive recipients[162][165] Shareholders and Actual Controller Information As of year-end 2021, the company had 39,740 shareholders, with Sunrain Holdings as the controlling shareholder and Mr. Xu Xinjian as the actual controller Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End | Proportion (%) | | :--- | :--- | :--- | | Sunrain Holdings Group Co., Ltd. | 462,000,600 | 56.14 | | Wu Dianhua | 11,998,800 | 1.46 | | Xu Xinjian | 9,969,576 | 1.21 | | Jiangsu Yueliangshen Management Consulting Co., Ltd. | 4,738,565 | 0.58 | | GF Fund - Agricultural Bank of China - GF CSI Financial Asset Management Plan | 3,489,681 | 0.42 | - The company's controlling shareholder is Sunrain Holdings Group Co., Ltd., and the actual controller is Mr. Xu Xinjian[173][175] Preferred Shares Related Matters The company has no preferred shares Preferred Shares Related Matters The company has no preferred shares - During the reporting period, the company had no preferred shares[179] Bonds Related Matters The company has no bonds, corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds Bonds Related Matters The company has no bonds, corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - During the reporting period, the company had no bond-related matters[181] Financial Report This section presents the audited financial statements, including the auditor's opinion, key financial data, and detailed notes on accounting policies and significant items Audit Report Rongcheng Certified Public Accountants issued a standard unqualified audit opinion on the 2021 financial statements, identifying revenue recognition as a key audit matter due to its significance and inherent risk - The auditing firm issued a standard unqualified audit opinion[183] - Revenue recognition was identified as a key audit matter because revenue is one of the company's key performance indicators, and there is an inherent risk of management manipulating the timing of revenue recognition to achieve specific targets or expectations[185][186] Financial Statements The financial statements show a slight increase in total assets, a decrease in total liabilities due to reduced short-term borrowings, growth in owner's equity, and a significant decline in operating cash flow for 2021 Consolidated Balance Sheet Summary (Unit: Yuan) | Item | December 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 6,275,874,737.33 | 6,207,804,589.89 | | Total Current Assets | 2,093,578,397.85 | 2,315,134,626.45 | | Total Non-Current Assets | 4,182,296,339.48 | 3,892,669,963.44 | | Total Liabilities | 2,592,529,634.04 | 2,803,827,324.25 | | Total Current Liabilities | 2,420,738,275.05 | 2,640,587,015.88 | | Total Non-Current Liabilities | 171,791,358.99 | 163,240,308.37 | | Total Owner's Equity | 3,683,345,103.29 | 3,403,977,265.64 | | Total Owner's Equity Attributable to Parent Company | 3,596,917,715.53 | 3,344,304,714.44 | Consolidated Income Statement Summary (Unit: Yuan) | Item | 2021 Annual | 2020 Annual | | :--- | :--- | :--- | | Total Operating Revenue | 4,205,558,485.72 | 3,542,740,925.35 | | Total Operating Cost | 4,157,226,374.75 | 3,445,844,324.03 | | Operating Profit | 225,368,879.96 | 210,683,914.09 | | Total Profit | 214,816,104.93 | 199,371,458.19 | | Net Profit | 214,592,228.29 | 173,155,936.11 | | Net Profit Attributable to Parent Company Shareholders | 212,510,192.22 | 170,114,749.23 | Consolidated Cash Flow Statement Summary (Unit: Yuan) | Item | 2021 Annual | 2020 Annual | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 139,424,920.92 | 429,790,397.28 | | Net Cash Flow from Investing Activities | 38,283,438.20 | 345,147,082.45 | | Net Cash Flow from Financing Activities | -313,140,165.90 | -472,006,903.54 | | Net Increase in Cash and Cash Equivalents | -137,508,984.13 | 298,139,025.35 | Company Basic Information The notes detail the company's background, accounting policies (including revenue recognition, financial instruments, and goodwill impairment), new leasing standards, segment information, related-party transactions, and contingent liabilities - The company primarily engages in the R&D, production, and sales of water heaters, kitchen appliances, clean energy heating, and water purification products, operating under three main brands: Sunrain, Himin Solar, and Shuaikang[242] - Revenue recognition policy: For distributor mode, outright purchase products are recognized upon shipment; e-commerce revenue is recognized upon order completion or receipt of platform settlement statements; export sales are recognized after customs declaration; heating and photovoltaic engineering projects are recognized based on performance progress[316] - The company adopted the new leasing standards starting January 1, 2021, and made corresponding adjustments to its accounting policies[332] - The company is divided into seven reporting segments based on its internal organizational structure: solar water heaters, air energy, water purifiers, photovoltaics, kitchen appliances, electric water heaters, and wall-mounted boilers[620]