KSHG(SH:605333)2022-04-28 16:00Financial Performance - The company achieved a total revenue of CNY 2,447,839,838.63 in 2021, representing a year-on-year increase of 59.86%[25]. - The net profit attributable to shareholders was CNY -1,056,223.78, a decline of 101.42% compared to the previous year[25]. - The net profit after deducting non-recurring gains and losses was CNY -2,462,082.58, down 103.74% year-on-year[25]. - The total assets at the end of 2021 reached CNY 2,924,346,684.37, an increase of 51.55% from the previous year[25]. - The net assets attributable to shareholders decreased by 3.77% to CNY 751,385,290.35 at the end of 2021[25]. - The company reported a negative cash flow from operating activities of CNY -208,977,337.47, a decline of 359.18% compared to the previous year[25]. - The basic earnings per share for 2021 was CNY -0.003, down from CNY 0.20 in 2020[25]. - The company achieved a total revenue of CNY 2,447,839,838.63 in 2021, representing a year-on-year growth of 59.86%[47]. - The company's total assets reached CNY 292,434.67 million by the end of 2021, an increase of 51.55% compared to the previous year[47]. - The net profit attributable to shareholders was CNY -105.62 million, a decline of 101.42% year-on-year[47]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[5]. - The company has engaged Lixin Certified Public Accountants for auditing services[21]. - The internal control audit for 2021 was conducted by Lixin Accounting Firm, confirming effective financial reporting controls with a standard unqualified opinion[133]. - The audit report confirms that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2021[184]. Market and Industry Trends - The automotive wiring harness industry is expected to benefit from the shift towards electric vehicles, with projections indicating that by 2025, around 20% of new car sales will be electric[40]. - The company is focusing on new materials and technologies, with plans to promote aluminum wire in high-voltage harnesses and advance low-voltage harness product validation for mass production in 2022[40]. - The company is actively pursuing smart manufacturing and has optimized its high-voltage harness production line, achieving full automation and improved efficiency[37]. - New energy vehicle production and sales surged by 169.5% and 167.5%, totaling 3.359 million and 3.334 million units respectively, indicating a strong market demand[40]. - The company has established stable partnerships with major automotive manufacturers, including Volkswagen, Daimler, and Ford, enhancing its brand influence in the automotive wiring harness sector[43]. Research and Development - The company increased its R&D personnel and investment significantly to enhance competitiveness and meet customer demands for new models[27]. - Research and development expenses increased by 54.24% to CNY 122,743,184.30, driven by the hiring of additional R&D personnel for new projects[49]. - The company has invested in a significant number of R&D personnel to enhance its capabilities in the automotive high and low voltage harness sector[66]. - The total R&D expenditure for the period was ¥122,743,184.30, accounting for 5.01% of operating revenue[64]. - The company has 456 R&D personnel, representing 8.85% of the total workforce[65]. Governance and Management - The company ensures the independence of its assets, personnel, finance, organization, and business from its controlling shareholders[104]. - The board of directors is elected according to legal procedures, and the composition meets regulatory requirements[103]. - The company has established a performance evaluation and incentive mechanism for directors, supervisors, and senior management[103]. - The company maintains a transparent voting process for shareholders, ensuring equal rights for all investors[102]. - The company has a diverse management team with varying backgrounds and experiences in different sectors[107]. Risks and Challenges - The company is exposed to raw material price fluctuations, particularly copper, which is subject to market demand and economic cycles; strategies are in place to mitigate these risks through pricing adjustments[95]. - The company faces risks related to declining product prices as automotive manufacturers may demand lower prices over time; competitive advantages in quality and cost control are being leveraged to maintain customer relationships[96]. - Ongoing challenges from the COVID-19 pandemic and semiconductor shortages are impacting the automotive industry, necessitating proactive measures to ensure operational continuity and supply chain resilience[98]. - The rapid pace of technological updates in the automotive industry poses risks in new product development, requiring close collaboration with clients and adherence to stringent certification processes[97]. Shareholder and Capital Structure - The largest shareholder, Cheng Sanrong, holds 262,000,000 shares, representing 65.34% of the total shares[172]. - The second-largest shareholder, Jin Chengcheng, holds 65,500,000 shares, accounting for 16.33% of the total shares[172]. - The top five customers contributed CNY 193,258.25 million in sales, accounting for 78.95% of total annual sales[62]. - The company has committed to not transferring shares for 36 months post-IPO by major shareholders and board members, ensuring stability in ownership[140]. - The company has not experienced any changes in control during the reporting period[175]. Environmental and Social Responsibility - The company implemented a rooftop photovoltaic power generation project with a capacity of 2.79 MW, generating approximately 2.8 million kWh annually to reduce carbon emissions[136]. - The company strictly adhered to environmental protection standards, with all emission indicators meeting national requirements in 2021[136]. - The company has a comprehensive employee welfare system, providing social security benefits including pension, medical, and housing funds[137]. Future Outlook - The company plans to initiate a non-public stock issuance to enhance production capacity and technology upgrades, aiming to reduce costs and improve efficiency[88]. - The company aims to expand its market share in high and low voltage wiring harnesses while optimizing its product and customer structure[89]. - Future outlook includes continued investment in technology and potential acquisitions to drive growth[200].