Arctech Solar(SH:688408)2022-05-31 16:00Financial Performance - The company's operating revenue for 2021 was ¥2,415,358,785.16, a decrease of 22.80% compared to ¥3,128,604,673.41 in 2020[22]. - The net profit attributable to shareholders of the listed company was ¥15,032,252.95, down 94.73% from ¥285,491,339.46 in the previous year[22]. - The net cash flow from operating activities was ¥123,495,122.32, a decline of 69.72% compared to ¥407,843,044.05 in 2020[22]. - The total assets at the end of 2021 were ¥5,163,200,726.16, an increase of 10.71% from ¥4,663,594,460.98 at the end of 2020[22]. - The basic earnings per share for 2021 was ¥0.11, a decrease of 95.63% from ¥2.52 in 2020[23]. - The company reported a net loss attributable to shareholders after deducting non-recurring gains and losses of ¥36,701,967.60 in 2021[22]. - The total equity attributable to shareholders of the listed company decreased by 1.69% to ¥2,440,278,940.73 at the end of 2021[22]. - The overall gross margin for the reporting period was 11.74%, a decline of 9.08 percentage points compared to the previous year, while the net profit margin was 0.65%, down 8.48 percentage points[31]. Dividend and Profitability - The company plans to distribute a cash dividend of RMB 0.3 per 10 shares, totaling RMB 4,071,464.40, which accounts for 27.08% of the net profit attributable to shareholders in the consolidated financial statements for the year 2021[6]. - The company has not yet achieved profitability since its listing[4]. - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[5]. Operational Risks and Governance - The company has detailed various operational risks and corresponding countermeasures in the report[4]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[8]. - There are no violations of decision-making procedures regarding external guarantees[9]. - The company does not have any special arrangements for corporate governance[7]. - The report includes forward-looking statements regarding future plans and strategies, which do not constitute a commitment to investors[7]. - The company has a comprehensive risk statement applicable to forward-looking statements[7]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 4.98% in 2021 from 3.61% in 2020, reflecting a growth of 1.37 percentage points[23]. - Research and development expenses amounted to 120.24 million CNY, an increase of 6.57% year-on-year, representing 4.98% of total revenue[34]. - The company has filed multiple patents related to BIPV systems and has collaborated with Tongji University to develop BIPV technical standards[45]. - The company has introduced innovative products such as the "Sky II" tracking system, which significantly improves stability and has been well received in the market[36]. - The company has developed a wind tunnel laboratory, becoming the first photovoltaic enterprise globally to possess such a facility, enhancing product safety and reliability[66]. Market Expansion and Strategy - The company is focused on expanding its market presence and enhancing its technology capabilities through R&D investments[21]. - The company plans to continue expanding its market presence and investing in new technologies to enhance competitiveness in the renewable energy sector[29]. - The company is actively pursuing market expansion strategies, targeting over 40 countries for its photovoltaic bracket business[155]. - The company is advancing its local production projects in India, Brazil, and Saudi Arabia to mitigate tariff impacts and meet local demands[110]. - The company aims to enhance its core competitiveness in the bracket business and BIPV (Building Integrated Photovoltaics) sector, despite challenges in the photovoltaic industry due to rising upstream polysilicon prices[167]. Supply Chain and Cost Management - The company experienced a decrease in gross margin due to rising prices of polysilicon, components, and international shipping costs, which affected overall revenue and net profit[25]. - The average price of steel used in procurement increased by 32.78% year-on-year, contributing to a significant rise in costs despite a 22.80% drop in revenue[33]. - The company employs a mixed procurement model, combining order-based and material preparation procurement to minimize inventory costs while managing steel price volatility[48]. - The company has seen a 52.72% reduction in outsourced galvanizing costs, reflecting improved cost management strategies[121]. Corporate Governance and Management - The company emphasizes transparency and timely information disclosure, adhering to legal requirements to ensure all investors have equal access to information[179]. - The company has established a monitoring mechanism through its supervisory board to oversee financial and operational compliance, safeguarding the interests of shareholders[177]. - The company has a diverse management team with members holding various indirect stakes through employee stock ownership platforms, including Wang Cheng at 0.1443%[188]. - The company’s management structure includes a significant number of independent directors, enhancing governance[191]. Innovation and Technology - The company has developed an AI-based photovoltaic tracking control technology that can improve power generation performance by up to 7%[74]. - The company has introduced AI algorithms and AI trackers to enhance power generation efficiency, reflecting its commitment to technological advancement[67]. - The company has completed the hardware and software development of cleaning robots for photovoltaic components, addressing issues related to dust and heat spots that affect power generation[88]. - The company has launched the BIPV Smart Roof series, which integrates photovoltaic components, enhancing load-bearing capacity and waterproofing while meeting various construction requirements[78]. Challenges and Risks - The company faces risks from high raw material and logistics costs, which have significantly increased and may compress profit margins[106]. - The pandemic has caused delays in project construction and increased logistics costs, adversely affecting sales revenue recognition[111]. - International trade protection policies have negatively impacted the company's overseas sales, particularly in the U.S. market[110]. Shareholding and Executive Compensation - The total shares held by the company decreased from 53,302,283 to 52,580,385, a reduction of 721,898 shares, representing a decrease of approximately 1.35%[185]. - The total pre-tax compensation for the executives amounted to 888.9 million CNY during the reporting period[185]. - The remuneration scheme for directors and supervisors is proposed by the Compensation and Assessment Committee and approved by the board[193].