VEICHI(SH:688698)2022-04-17 16:00Financial Performance - The company has not achieved profitability since its listing, indicating ongoing financial challenges [4]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a 15% year-over-year growth [20]. - The company's operating revenue for 2021 reached ¥818,874,970.50, representing a year-on-year increase of 43.10% [30]. - Net profit attributable to shareholders increased by 44.76% to ¥126,744,948.12, while the net profit after deducting non-recurring gains and losses rose by 37.20% to ¥113,746,436.98 [33]. - The company's total assets grew by 17.95% to ¥1,268,557,476.93, and net assets attributable to shareholders increased by 13.53% to ¥866,325,597.34 [30]. - The basic earnings per share rose to ¥0.70, a 7.69% increase compared to the previous year [30]. - The company's cash flow from operating activities decreased by 44.22% to CNY 30.07 million from CNY 53.91 million in the previous year [170]. - The company's total operating revenue for 2021 reached approximately ¥789.74 million, representing a year-on-year increase of 40.94% [174]. Dividend and Capital Management - The company plans to distribute a cash dividend of 1.76 RMB per 10 shares, totaling approximately 31.68 million RMB, which represents 25% of the net profit attributable to shareholders for 2021 [6]. - The company has not proposed any capital reserve transfer to increase share capital or bonus shares for 2021 [6]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties [7]. - There are no violations of decision-making procedures regarding external guarantees [9]. Research and Development - The company is investing in R&D, allocating 10% of its revenue towards developing new technologies and products [20]. - Research and development expenses accounted for 9.28% of operating revenue, slightly up from 9.21% in 2020 [30]. - The total R&D investment for the year reached ¥75,970,993.96, an increase of 44.09% compared to ¥52,723,012.06 in the previous year [121]. - The company has developed high-frequency injection control technology and various motion control algorithms, establishing a strong technical position in the industry [141]. - The company has obtained a total of 124 authorized patents, including 28 invention patents, enhancing its competitive edge in the industry [44]. Market Expansion and Strategy - The company has provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12% [20]. - Market expansion plans include entering two new international markets by Q3 2022, aiming for a 5% market share in each [20]. - The company is exploring potential acquisitions to enhance its product offerings and market presence, with a budget of 300 million CNY allocated for this purpose [20]. - The company is actively pursuing market expansion strategies through the introduction of new products and technologies, aiming to enhance its competitive edge in the industry [106][109]. Operational Efficiency - The gross margin improved to 35%, up from 30% in the previous year, reflecting better operational efficiency [20]. - The company has implemented cost-cutting measures that are projected to save approximately 50 million CNY annually [20]. - The company has maintained a stable cost structure, with direct materials accounting for 88.11% of total costs [181]. - The direct material costs as a percentage of operating costs decreased from 86.86% in 2020 to 84.46% in 2021, highlighting potential improvements in cost management [154]. Risks and Governance - The report includes a detailed discussion of various risks, including core competitiveness, operational, financial, industry, and macroeconomic risks [4]. - The company has confirmed that all board members attended the board meeting, ensuring governance compliance [5]. - The report does not indicate any special arrangements for corporate governance [9]. - The company faced risks from high market concentration, with foreign brands holding a significant market share in the low-voltage inverter and servo system sectors [164]. Product Development and Innovation - The company has developed a unique IGBT control method that achieves reliable control across multiple voltage levels (220V to 1140V) and current ratings (3A to 1200A) [106]. - The company has filed several patents for new technologies, including methods for motor angle error correction and speed control, indicating ongoing innovation [100]. - The company is focusing on expanding its product line, with new products such as AC series inverters and servo drivers being developed [100]. - The company has launched new servo system products, including the V7E series servo motors and SD710 and SD700-NA servo drives, contributing to new revenue growth [45]. Customer and Market Insights - User data indicates a growth in active users, reaching 500,000, which is a 25% increase compared to the previous year [20]. - The company's overseas product sales revenue reached 71.36 million yuan in 2021, representing 9.04% of total operating income, with plans for gradual expansion in international markets [155]. - The top five customers contributed 18.53% of the total annual sales, with no significant reliance on any single customer [186]. Financial Health and Liabilities - Accounts receivable increased by 47.54% to 227.68 million yuan at the end of the reporting period, necessitating strict management to mitigate potential bad debt risks [160]. - The company's total amount of other current liabilities increased by 64.77% to 155,913,157.82 RMB, mainly due to business growth leading to the recognition of unexpired bank acceptance bills [200]. - The company’s cash management strategy involved purchasing structured deposits and large bank certificates of deposit with raised funds from the previous year [195].