SGP(SH:603586)2022-04-27 16:00Financial Performance - The net profit attributable to the parent company's shareholders for 2021 was -50,717,188.37 yuan, while the parent company achieved a net profit of 8,999,013.00 yuan[6]. - The company's operating revenue for 2021 was approximately ¥1.39 billion, representing an increase of 8.26% compared to ¥1.29 billion in 2020[24]. - The net profit attributable to shareholders was a loss of approximately ¥50.72 million, a decrease of 131.09% from a profit of ¥163.11 million in 2020[24]. - The basic earnings per share for 2021 was -¥0.26, down 131.71% from ¥0.82 in 2020[25]. - The weighted average return on equity decreased to -2.43% in 2021, down 9.99 percentage points from 7.56% in 2020[25]. - The net cash flow from operating activities was approximately ¥82.95 million, a decline of 76.37% from ¥351.06 million in 2020[24]. - The total assets at the end of 2021 were approximately ¥2.75 billion, an increase of 5.20% from ¥2.61 billion at the end of 2020[24]. - The net assets attributable to shareholders decreased by 7.64% to approximately ¥2.00 billion at the end of 2021 from ¥2.17 billion at the end of 2020[24]. - The company reported a total of ¥10.87 million in government subsidies recognized as non-operating income in 2021, compared to ¥22.94 million in 2020[30]. - The company incurred a loss of approximately ¥95.58 million from fair value changes in financial assets and liabilities in 2021[31]. Dividend and Profit Distribution - Due to the loss in 2021, the company plans not to distribute cash dividends, issue new shares, or convert capital reserves into share capital[6]. - As of December 31, 2021, the company's distributable profits amounted to 589,888,842.41 yuan[6]. Risk Management - The company has detailed potential risks in the management discussion and analysis section of the report[9]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[7]. - The company faces significant risks related to raw material price fluctuations, particularly in steel, which can impact production costs and profit margins[104]. - The company is actively managing risks related to currency exchange losses due to the appreciation of the RMB against the USD, which could adversely affect its financial performance[104]. - The company is addressing the risks associated with high shipping costs and resource shortages in the international shipping market, which could affect export trade[105]. Corporate Governance - The company has not faced any issues with more than half of the board members being unable to guarantee the authenticity, accuracy, and completeness of the annual report[8]. - The company has established a strict quality control system to mitigate risks associated with potential product quality issues, which could lead to substantial losses[103]. - The company is committed to enhancing its corporate governance structure and internal management mechanisms to support its expanding operations[102]. - The company has implemented measures to strengthen compliance awareness among senior management and key personnel to improve governance and information disclosure[104]. - The company has a structured remuneration and performance assessment system for its directors and senior management[124]. - The company has established specialized committees, including a strategy committee and an audit committee, to enhance governance[132]. Research and Development - R&D investment increased steadily in 2021, leading to the successful development of new friction material formulas for commercial vehicles, with multiple models supplied to Daimler[39]. - The company achieved certification for its high-speed railway brake pads, marking a significant step in product diversification and enhancing its bidding qualifications[37]. - The company has developed over 260 brake friction material formulas and possesses an independent R&D system for these materials[61]. - The company is focused on optimizing its management processes to adapt to the complexities arising from its scale expansion and increased operational demands[104]. Market and Sales - The company engaged with 40 new or existing customers through video conferences, resulting in sales revenue of 25.74 million yuan from 2 new customers and 11 new projects from existing customers in 2021[36]. - The company is positioned as a leading player in the domestic friction materials industry, benefiting from the steady growth of global and domestic automotive ownership[46]. - The company primarily operates in the foreign AM market, which is its main source of sales revenue and profit, focusing on ODM products[57]. - The company exports products to over 70 countries and regions, establishing long-term partnerships with major automotive parts companies[61]. - The company aims to enhance its market competitiveness by optimizing product and technology structures, focusing on customer needs, and developing high-value brake products[97]. Environmental Responsibility - The company has a total emission of 24.022 tons of particulate matter and 6.527 tons of volatile organic compounds (VOCs) in 2021[1]. - The company has implemented pollution control facilities including a wastewater treatment station, oil fume purification devices, and dust collectors to ensure compliance with emission standards[158]. - The company has adopted measures to reduce carbon emissions, including replacing old equipment with energy-efficient alternatives and enhancing green planting[166]. - The company has maintained normal operation of its pollution treatment facilities, ensuring that emissions continue to meet regulatory standards[159]. Employee Welfare and Development - The company has established a comprehensive health protection system, providing regular health check-ups and safety insurance for employees[168]. - The company has invested 1.4167 million yuan in employee welfare programs, including support for marriage, funerals, and education[168]. - The company has implemented a training program to enhance employee skills and align training with business needs[141]. - The company has a structured approach to employee development, including skill competitions and cultural activities to enhance workplace morale[169]. Shareholder and Financial Management - The company plans to use idle funds for cash management and has authorized futures trading limits for 2021[129]. - The company has confirmed that all production and operational activities are running normally despite the bond issuance situation[196]. - The company will continue to assess its financing plans based on strategic development and funding needs[196]. - The company has not reported any major litigation or arbitration matters during the fiscal year[187]. - The company has not faced any delisting risk or related warnings[186].