Autel(SH:688208)2022-04-25 16:00Financial Performance - The company reported a distributable profit of RMB 980,908,752.93 as of December 31, 2021, with a proposed cash dividend of RMB 1 per 10 shares, totaling RMB 45,094,662.50, which accounts for 10.28% of the net profit attributable to shareholders for the year [8]. - The company has not yet achieved profitability since its listing [7]. - The company's operating revenue for 2021 was CNY 2,253,712,738.59, representing a 42.84% increase compared to CNY 1,577,775,103.90 in 2020 [28]. - The net profit attributable to shareholders for 2021 was CNY 438,736,178.92, a slight increase of 1.31% from CNY 433,059,747.13 in 2020 [28]. - The net cash flow from operating activities for 2021 was negative CNY 144,829,604.97, a decrease of 125.41% compared to CNY 569,985,749.91 in 2020 [28]. - The company's total assets at the end of 2021 were CNY 4,201,425,559.54, a 32.33% increase from CNY 3,175,006,281.46 at the end of 2020 [28]. - The basic earnings per share for 2021 was CNY 0.97, a decrease of 1.02% from CNY 0.98 in 2020 [28]. - The weighted average return on equity for 2021 was 16.60%, down from 19.76% in 2020, indicating a decrease of 3.16 percentage points [28]. - The gross profit margin for the year was reported at 57.65%, a decrease of 5.18% compared to the previous year, primarily due to currency appreciation and rising international freight costs [44]. Research and Development - Research and development expenses accounted for 23.19% of operating revenue in 2021, an increase of 5.20 percentage points from 17.99% in 2020 [30]. - The company has applied for a total of 1,805 patents and software copyrights, with 1,192 granted as of the end of the reporting period [45]. - The company has established a research and development team of over 100 people in the ADAS system product field, focusing on advanced driving assistance technologies, including MIMO antenna arrays and intelligent adaptive target detection algorithms [50]. - The company has developed competitive TPMS and ADAS diagnostic tools, leveraging its core technology in automotive intelligent diagnostics [68]. - The company has launched new products in the smart charging detection series, securing orders from multiple countries including the UK, Singapore, and Germany [128]. - The company has filed 612 new patent applications during the reporting period, with 461 patents granted, reflecting strong innovation capabilities [107]. - The company’s ADAS calibration software now covers over 95% of global vehicle models, including new brands like Tesla and Maserati [102]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new technologies and products [28]. - The company is actively combining online and offline marketing strategies, leveraging video live streaming to enhance brand promotion and product sales, particularly for its second brand OTOFIX and ADAS calibration equipment [51]. - The company is focusing on digital transformation by integrating IoT, cloud computing, and AI to enhance diagnostic and repair efficiency through smart diagnostic tools [65]. - The company is expanding its product offerings in response to the increasing complexity of automotive electronic systems, emphasizing continuous R&D innovation in strategic areas [58]. - The company aims to become a leader in the new energy vehicle aftermarket services by capitalizing on its global operational experience and brand recognition [81]. - The company is positioned to benefit from the increasing demand for charging infrastructure as the penetration of electric vehicles rises globally [198]. Operational Risks and Governance - The company has detailed various operational risks and corresponding countermeasures in the report, emphasizing the importance of risk awareness for investors [9]. - The company received a standard unqualified audit report from Tianjian Accounting Firm [7]. - There are no non-operating fund occupations by controlling shareholders or related parties reported [12]. - The board of directors was fully present at the meeting, ensuring governance compliance [7]. - The company does not plan to increase capital reserves or issue bonus shares [8]. - The company has not disclosed any special arrangements for corporate governance [12]. Supply Chain and Production - To mitigate semiconductor shortages, the company has strengthened strategic partnerships with core suppliers, ensuring supply security and maintaining cost competitiveness amid global supply chain challenges [52]. - The company is planning to enhance supply chain resilience by establishing self-built factories in key sales regions [156]. - The company aims to improve delivery flexibility and shorten delivery cycles through partnerships with contract manufacturers in Europe and North America [156]. - The company employs a "production based on sales" model, adjusting production plans according to sales forecasts and material supply [74]. Financial Management - The total cost for the current period is 927,599,122.85 CNY, representing a 59.32% increase compared to 582,221,513.07 CNY in the same period last year [170]. - Direct materials accounted for 89.52% of total costs this period, increasing from 87.19% in the previous year, with a current amount of 830,346,361.60 CNY, up 63.56% year-over-year [170]. - The company's sales expenses increased by 41.20% to 237,610,261.99 CNY, primarily due to higher employee compensation and advertising costs [179]. - The company reported a significant increase in financial expenses, up 344.44% to 62,421,438.61 CNY, mainly due to foreign exchange losses [179]. Future Outlook - The global sales of new energy vehicles are projected to reach 11 million units by 2025, with a penetration rate of 11% [83]. - By 2030, global sales are expected to rise to 30 million units, achieving a penetration rate of 28% [85]. - The Chinese automotive aftermarket is anticipated to reach a scale of 1.7 trillion yuan by 2025, driven by increasing vehicle ownership and aging vehicles [86]. - The anticipated growth in the European market is expected to reach 3 million electric vehicles sold in 2022, with a year-on-year growth rate of 46% [199].