NBJF(SH:603997)2022-03-30 16:00Financial Performance - In 2021, the company achieved operating revenue of approximately ¥16.83 billion, a year-on-year increase of 6.99% compared to ¥15.73 billion in 2020[22]. - The net profit attributable to shareholders was approximately ¥126.37 million, a significant recovery from a loss of ¥258.23 million in 2020[22]. - The net cash flow from operating activities was approximately ¥718.91 million, a decrease of 11.24% from ¥809.93 million in 2020[22]. - The company's total assets decreased by 6.45% to approximately ¥16.21 billion from ¥17.33 billion in 2020[22]. - The basic earnings per share improved to ¥0.12 from a loss of ¥0.26 in 2020[22]. - The company reported a weighted average return on equity of 2.87%, an increase of 8.75 percentage points compared to -5.88% in 2020[22]. - The gross profit margin improved by 0.58 percentage points to 14.14% in 2021, despite high raw material prices and chip shortages[33]. - The company's main business revenue increased by 7.31%, while the main business cost rose by 6.45%, driven by a recovery in operations and increased order volume[81]. - The total revenue for the automotive parts segment was approximately ¥14.40 billion, representing a year-over-year increase of 6.45%[91]. Dividends and Shareholder Returns - The company distributed a cash dividend of 0.18 CNY per share in the first half of 2021, totaling 196,886,405.16 CNY, which accounted for 155.80% of the net profit attributable to shareholders for the year[5]. - The company will not distribute cash dividends, issue bonus shares, or increase capital from reserves for the year 2021[5]. - The cash dividend distribution plan for the first half of 2021 is set at 0.18 CNY per share, totaling 196,886,405.16 CNY based on 1,093,813,362 shares[199]. - The cash dividend distribution was implemented on September 13, 2021[200]. Audit and Compliance - The company received a standard unqualified audit report from Rongcheng Accounting Firm[4]. - The board of directors and supervisory board members confirmed the authenticity, accuracy, and completeness of the annual report[3]. - The company has no non-operating fund occupation by controlling shareholders or related parties[7]. - The company has no violations in decision-making procedures for providing guarantees[7]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors through designated platforms[161]. - The company has implemented an insider information management system to enhance confidentiality and protect investor rights[161]. Market and Industry Trends - In 2021, the global automotive market faced challenges such as chip shortages and rising raw material prices, impacting production[31]. - The automotive production in China saw a year-on-year increase of 3.4%, with sales rising by 3.8% in 2021[31]. - In 2021, the global automotive production was approximately 73.4 million units, with a reduction of about 10.2 million units due to chip shortages[46]. - The production and sales of new energy vehicles reached 3.545 million and 3.521 million units, respectively, representing a year-on-year growth of 160% and a market share of 13.4%[47]. - The automotive parts industry is shifting towards product integration and modularization to improve production efficiency and vehicle performance[125]. - The trend in the automotive parts industry is moving from low-end production to high-end and refined products, with domestic high-end products increasingly replacing imports[125]. Research and Development - The company has a robust R&D system, focusing on comfort, safety, and ergonomics, which helps maintain its international technological leadership in product development[56]. - Research and development expenses increased by 25.73% to 321 million RMB, reflecting the company's commitment to innovation[80]. - The company invested a total of ¥377.83 million in R&D, which is 2.24% of total operating revenue, with 14.94% of this investment being capitalized[95]. - The company has developed a sleep-style headrest, successfully applied in Volkswagen's Magotan model, showcasing its innovation in response to market demands[57]. - The company is focusing on enhancing its digital capabilities by establishing a digital benchmark factory, which will improve interconnectivity across the supply chain[146]. Strategic Initiatives and Partnerships - The company focused on enhancing management efficiency and reducing costs while strategically investing in emerging businesses for future growth[32]. - The company established a joint venture for commercial vehicle seat manufacturing with FAW Harbin, which commenced production in October 2021[36]. - The company launched a new product, the hidden electric air vent, which achieved mass production by the end of 2021 and is expected to become a new profit growth point[39]. - The company has established long-term partnerships with major automotive manufacturers, including Audi, BMW, and Tesla, providing leading products and comprehensive solutions[55]. - The company completed the acquisition of Grammer in 2019, enhancing its global production, sales, and R&D network, solidifying its leading position in niche markets[66]. Governance and Management - The board of directors consists of 9 members, including 3 independent directors, ensuring a balanced governance structure[160]. - The company has established four specialized committees under the board: Strategy Committee, Audit Committee, Compensation and Assessment Committee, and Nomination Committee[160]. - The company emphasizes investor relations management, providing multiple channels for communication, including a dedicated investor email and hotline[161]. - The total pre-tax remuneration for the chairman is CNY 155.18 million, while the general manager received CNY 99.52 million, reflecting performance-based adjustments[167]. - The current management team includes experienced professionals with extensive backgrounds in various sectors, enhancing the company's operational capabilities[171]. Challenges and Risks - The company faces risks from macroeconomic fluctuations, as its products are closely tied to the automotive industry's performance[147]. - The company is addressing potential raw material price volatility, which constitutes approximately 70% of production costs[149]. - The ongoing COVID-19 pandemic poses risks to the automotive industry's recovery and stability[156]. - The integration of Grammer post-acquisition presents challenges due to differences in operational management systems[154].