Wuhan Lin(SH:688667)2022-04-27 16:00Financial Performance - The company reported a standard unqualified audit opinion from Zhonghui Certified Public Accountants[5]. - The company's operating revenue for 2021 was CNY 834.68 million, representing a year-on-year increase of 9.48%[21]. - The net profit attributable to shareholders for 2021 was CNY 137.55 million, a decrease of 12.30% compared to the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 113.29 million, down 24.02% year-on-year[21]. - The net cash flow from operating activities reached CNY 41.38 million, showing a significant increase of 566.53% compared to the previous year[21]. - The company's total assets at the end of 2021 were CNY 1,766.62 million, an increase of 132.51% year-on-year[21]. - The net assets attributable to shareholders at the end of 2021 were CNY 1,406.42 million, up 255.25% from the previous year[21]. - The basic earnings per share for 2021 were CNY 2.84, a decrease of 29.88% year-on-year[22]. - The gross profit margin for the main business was 31%, reflecting a slight increase of 2.18 percentage points year-on-year[118]. - The company achieved operating revenue of 834.68 million yuan, a year-on-year increase of 9.48%[111]. Research and Development - The company plans to expand its research and development efforts to support its growing operational scale and funding requirements[5]. - Research and development expenses accounted for 12.12% of operating revenue, an increase of 5.90 percentage points compared to the previous year[22]. - The company achieved a significant increase in R&D investment, totaling ¥10,116.74 million in the current year, up 113.38% from ¥4,741.18 million in the previous year[75]. - The company has developed proprietary engine management systems, contributing to the localization of automotive power electronics control systems and beginning to replace imports in certain markets[62]. - The company has developed an EMS software platform that includes core technologies for hardware control, contributing significantly to product sales revenue[63]. - The company has focused on enhancing electromagnetic interference resistance in its ECU hardware design, ensuring robust performance across various vehicle models[65]. - The company has developed multiple export projects, achieving compliance with Euro V regulations for light commercial vehicles and light passenger vehicles, with a supply production value of RMB 349.46 million[87]. - The company has established R&D centers in Beijing and Optics Valley to attract high-end talent and enhance its R&D capabilities[76]. - The company has made progress in various R&D projects, including the optimization of calibration data for wide oxygen sensors and electronic throttle valves[79]. Market and Industry Trends - The company is actively expanding its market presence, particularly in the electric vehicle sector, leveraging existing customer resources[35]. - The market share of new energy vehicles in China increased to 13.4%, indicating a shift from policy-driven to market-driven growth[47]. - The automotive electronic control system industry is characterized by high technical barriers and long industrial cycles, making it a capital and labor-intensive sector[48]. - The transition towards hybrid vehicles is driven by increasingly stringent fuel consumption and emission standards, as internal combustion engines alone will struggle to meet future regulations[45]. - The automotive industry is experiencing a shift from policy-driven to market-driven growth in the new energy vehicle sector, indicating a sustainable future for electric vehicles[60]. - The company is focusing on the integration of electric, connected, and intelligent technologies, aligning with national plans to enhance smart connected vehicle infrastructure and achieve higher levels of automation by 2035[61]. Corporate Governance - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report, with no significant omissions or misleading statements[4]. - There are no special arrangements for corporate governance applicable to the company[8]. - The company has established a governance structure that includes a board of directors and various committees to ensure effective operation and decision-making[146]. - The company has confirmed that it will not distribute cash dividends for the 2021 fiscal year, pending shareholder approval[184]. - The company has a training plan that includes systematic training for new employees and professional skills training[180]. - The company has established a comprehensive governance structure, including a strategic committee, nomination committee, compensation and assessment committee, and audit committee, to ensure effective decision-making[196]. Risks and Challenges - The company is currently not profitable and has not achieved profitability since its listing[4]. - The company has outlined various risks and corresponding countermeasures in the management discussion and analysis section of the report[4]. - The company faces risks from core technology leakage due to limited protection measures compared to multinational EMS manufacturers[98]. - The company is exposed to risks from the lack of core component supply chains, such as automotive-grade chips and injectors, which could hinder its competitiveness[103]. - The company faced risks related to global chip supply shortages, impacting procurement and potentially leading to performance declines[110]. Talent and Human Resources - The company has a diverse team of core technical personnel, with varying years of experience in the industry[156]. - The number of R&D personnel increased to 428, representing 70.16% of the total workforce, up from 66.05% in the previous year[90]. - R&D personnel compensation totaled RMB 57.13 million, with an average salary of RMB 15.18 million, reflecting a significant increase from the previous year's average of RMB 11.64 million[90]. - The company emphasizes the importance of talent development and plans to optimize personnel structure and enhance training programs to ensure sustainable human resource development[144]. Product Development and Innovation - The company is focusing on transitioning its products towards electrification and connectivity, investing heavily in R&D for GDI passenger vehicles, electric vehicle VCU and MCU, and hybrid vehicle control systems[23]. - The company has developed a new GPF regeneration control strategy to meet the National VI emission regulations, which includes modules for estimating particulate matter content and regeneration demand calculation[65]. - The company has successfully launched multiple models of range-extended electric vehicles, showcasing its commitment to hybrid technology[65]. - The company has developed multiple chip replacement solutions to address supply chain issues, ensuring continued production capabilities[81]. - The company has achieved a technological lead in dual-fuel engine management systems, addressing various operational challenges associated with gas and gasoline fuel[93]. Customer and Market Engagement - The company’s revenue from the top five customers accounted for 64.79% of total revenue, highlighting a high customer concentration risk[100]. - The company has established a technical service advantage by diagnosing engine control system issues quickly, enhancing customer service efficiency[92]. - The company plans to launch multiple new electric vehicle models in the second half of 2022, expanding its market presence[86].