LEO(SZ:002131)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥20,280,907,073.02, representing a 30.44% increase compared to ¥15,547,867,888.36 in 2020[29]. - The net profit attributable to shareholders for 2021 was -¥1,019,395,292.65, a decrease of 121.36% from ¥4,772,475,489.48 in 2020[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥1,470,470,910.03, a decline of 618.75% compared to ¥283,462,099.84 in 2020[29]. - The net cash flow from operating activities was -¥499,458,724.44, down 207.60% from ¥464,181,502.78 in 2020[29]. - Basic earnings per share for 2021 were -¥0.15, a decrease of 121.13% from ¥0.71 in 2020[29]. - The weighted average return on net assets was -8.22%, a drop of 53.33 percentage points from 45.11% in 2020[29]. - Total assets increased by 3.05% to ¥19,844,949,856.13 from ¥19,257,875,021.33[32]. - The company’s net assets attributable to shareholders decreased by 8.52% to ¥11,871,558,415.99 from ¥12,977,251,808.04[32]. - The company reported a significant goodwill impairment provision, impacting financial results and leading to discrepancies with previously disclosed quarterly reports[35]. - The company secured new contracts/orders worth approximately 42.3 billion CNY, a year-on-year increase of 37.4%[79]. Business Operations and Strategy - The company has been focusing on the research, production, and sales of micro and small water pumps and garden machinery products since its establishment[28]. - The company has expanded its business into industrial pumps and digital marketing through acquisitions since 2010[28]. - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company aims to shift its core competitiveness towards "digging customer needs and providing integrated solutions" as part of its five-year development plan[77]. - The company plans to enhance its manufacturing segment by increasing sales investment and expanding its international marketing team, including the establishment of a European product and after-sales service center[168]. - The company aims to explore new business opportunities in carbon neutrality, pumped storage, clean energy, and big data centers within the water pump sector[168]. Digital Marketing and Technology - The company's digital marketing services cover a complete service chain, including marketing strategy, media placement, and performance monitoring, positioning it among the leading firms in China's digital marketing industry[51]. - The company ranks 3rd in the 2021 annual digital marketing company rankings published by Internet Weekly[51]. - The digital marketing segment generated revenue of 1,618,746.89 million CNY, reflecting a year-on-year growth of 25.37%[72]. - The digital marketing business has shown significant results in short video and information flow sectors, strengthening the company's overall capabilities in traffic, data, media, and content[51]. - Liou Digital expanded its digital marketing services to include end-to-end solutions such as business consulting, data and traffic management, product design, and social e-commerce, aiming for a dual win in communication and performance[84]. - The company has established deep partnerships with major media platforms, achieving a total cooperation scale of over 10 billion RMB, serving top clients across various sectors including internet, finance, and e-commerce[89]. - The company is actively developing its own tools for marketing automation and efficiency, including the "Titan Engine" for automated ad placements and content customization[91]. Research and Development - The company increased its R&D investment, resulting in 84 new national patent recognitions, bringing the total to nearly 700 patents[82]. - The number of R&D personnel increased by 1.86% to 603 in 2021, accounting for 11.61% of the total workforce[129]. - The company’s R&D investment increased by 34.59% from 122,733,417.73 CNY in 2020 to 165,187,714.03 CNY in 2021, representing 0.81% of operating revenue[133]. - The company has developed a machine vision recognition software for object detection, enhancing the value extraction capabilities of short video platforms since its release in May 2021[126]. Market Trends and Risks - The market for small pumps is expected to continue growing due to increasing demand for drinking water and urbanization in the Asia-Pacific region[45]. - The global lawn mower market was valued at $31.56 billion in 2020, with a projected growth rate of 5.6% annually, expected to exceed $40 billion by 2025[46]. - The company faces market volatility risks due to its reliance on exports, which may be affected by global economic conditions and trade policies[172]. - Raw material price fluctuations pose a significant risk, as they constitute a large portion of the company's production costs[172]. - Labor shortages in the manufacturing sector may lead to increased labor costs, impacting the company's operational expansion[173]. - Changes in export tax rebate rates, which were primarily 9%, 10%, and 13% in 2021, could affect the company's sales gross margin and competitiveness[174]. Corporate Governance and Compliance - The company held one annual and two temporary shareholder meetings during the reporting period, discussing 20 proposals[191]. - The board of directors convened nine meetings, reviewing 39 proposals, ensuring compliance with legal and regulatory requirements[193]. - The company has established an internal audit system to ensure effective internal controls and financial oversight[196]. - Information disclosure practices are in place to ensure transparency and compliance with legal requirements, enhancing investor relations[197]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, and operations, ensuring autonomous business capabilities[198].