康力电梯(002367) - 2021 Q4 - 年度财报

Important Notice, Table of Contents and Definitions The board of directors, supervisory board, and senior management guarantee the accuracy and completeness of the annual report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report, with no false records, misleading statements, or major omissions[5] - The company's 2021 profit distribution plan is to distribute a cash dividend of 3.00 Yuan (tax inclusive) per 10 shares to all shareholders, based on a total distributable share capital of 787,162,556 shares, with no bonus shares or capital reserve conversions[6] Company Profile and Key Financial Indicators The company's 2021 revenue increased by 20.79% to 5.17 billion Yuan, but net profit attributable to shareholders decreased by 16.44% to 405.55 million Yuan Key Accounting Data and Financial Indicators In 2021, the company's operating revenue increased by 20.79% to 5.17 billion Yuan, but net profit attributable to shareholders decreased by 16.44% to 405.55 million Yuan, with net cash flow from operating activities significantly down by 68.20% | Indicator | 2021 | 2020 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 5,169,911,298.44 | 4,280,120,000.54 | 20.79% | | Net Profit Attributable to Parent Company Shareholders (Yuan) | 405,548,976.09 | 485,359,977.78 | -16.44% | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Items) (Yuan) | 367,844,063.95 | 446,795,349.81 | -17.67% | | Net Cash Flow from Operating Activities (Yuan) | 251,576,966.64 | 791,175,461.48 | -68.20% | | Basic Earnings Per Share (Yuan/share) | 0.5153 | 0.6180 | -16.62% | | Weighted Average Return on Net Assets | 13.11% | 16.46% | -3.35% | | Total Assets (Yuan) | 7,062,623,483.30 | 6,284,335,213.37 | 12.38% | | Net Assets Attributable to Parent Company Shareholders (Yuan) | 3,214,300,858.27 | 3,011,545,301.43 | 6.73% | Quarterly Key Financial Indicators The company's 2021 operating revenue maintained growth across quarters, peaking in Q4, while net profit attributable to shareholders was highest in Q2, then declined in the subsequent two quarters, and operating cash flow fluctuated significantly | Indicator (Yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 879,194,040.21 | 1,355,864,556.88 | 1,370,761,406.48 | 1,564,091,294.87 | | Net Profit Attributable to Parent Company Shareholders | 58,518,198.06 | 159,826,004.26 | 96,409,904.29 | 90,794,869.48 | | Net Cash Flow from Operating Activities | -230,807,976.28 | 307,357,165.45 | -6,494,784.97 | 181,522,562.44 | Non-Recurring Gains and Losses Items and Amounts In 2021, the company's total non-recurring gains and losses amounted to 37.70 million Yuan, primarily from wealth management product income and government subsidies | Item | 2021 Amount (Yuan) | 2020 Amount (Yuan) | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -1,808,612.99 | -5,580,018.72 | | Government Subsidies Included in Current Profit/Loss | 20,703,151.69 | 15,242,421.19 | | Gains/Losses from Transactional Financial Assets, etc. | 28,778,670.75 | 34,492,594.96 | | Other Non-Operating Income and Expenses | -15,492.46 | 714,267.67 | | Other Non-Recurring Gains and Losses as Defined | -3,000,000.00 | -1,522,030.00 | | Total | 37,704,912.14 | 38,564,627.97 | Management Discussion and Analysis The company's 2021 revenue reached a record high, but net profit declined due to rising raw material costs and market competition, while it initiated a three-year management transformation Industry Overview In 2021, China's elevator industry grew due to urbanization and infrastructure investment but faced challenges from rising raw material prices and chip shortages, leading to intensified competition and increased industry concentration - Urbanization, infrastructure investment, and elevator installation in old buildings are driving continuous growth in China's elevator industry, with new infrastructure and urbanization offering significant development space[46] - Industry competition intensified, encompassing comprehensive strength in brand, price, technology, quality, and delivery capabilities, with leading brands benefiting from real estate centralized procurement and domestic brands increasing market share[47] - Demand for old elevator renovation is growing significantly, and digitalization and intelligent development are fostering new profit growth points through cloud services, big data, and IoT technologies[46] Main Business The company's core business involves R&D, production, sales, installation, and maintenance services for its "Kangli Elevator" brand, forming an integrated operation model focused on complete machines supported by key components and after-sales services - The company's main business integrates R&D, design, production, sales, installation, maintenance, renewal, and modification services for elevator and escalator products[49][51] - The company's sales model includes direct sales and agency, adopting an "order-based production" approach to provide customized products and services to clients[53] Core Competitiveness Analysis The company's core competitiveness stems from its strong brand, comprehensive product and service solutions, extensive market network, robust quality management, integrated R&D and manufacturing, and a stable, pragmatic talent team, with its brand value reaching 7.92 billion Yuan - Brand Advantage: The company has been consistently ranked among the "Global Elevator Manufacturers Top 10," with its brand value reaching 7.92 billion Yuan in 2021, ranking among the top Chinese elevator brands[59] - Technology and Product Advantage: The company operates an integrated development model focused on complete machine production, supported by key component manufacturing and after-sales services, with core key technologies under independent control[61] - Market and Channel Advantage: The company possesses a nationwide marketing network and after-sales service system, with direct sales and agency channels effectively complementing each other[61] Main Business Analysis In 2021, the company's operating revenue reached a record high, increasing by 20.79%, but net profit declined due to rising raw material costs and market competition; the company initiated a three-year systemic management transformation to enhance long-term competitiveness Overview In 2021, the company achieved operating revenue of 5.17 billion Yuan, a 20.79% year-on-year increase and a new historical high, but net profit attributable to the parent company was 405.55 million Yuan, a year-on-year decrease; the company initiated a three-year systemic management transformation to enhance overall competitiveness | Indicator | 2021 Amount (Ten Thousand Yuan) | Year-on-year Growth | | :--- | :--- | :--- | | Operating Revenue | 516,991.13 | 20.79% | | Total Profit | 46,565.08 | - | | Net Profit Attributable to Parent Company | 40,554.90 | - | - As of the end of 2021, the company's effective orders in hand amounted to 7.09 billion Yuan, with an additional 338 million Yuan in winning bids yet to be signed, maintaining stable order levels[68] - In 2021, the company launched a three-year systemic management transformation themed "Embarking on a Journey of Change, Achieving Phoenix-like Rebirth," aiming to solidify scientific management foundations, deliver customer value, and achieve rapid performance growth and high-quality enterprise development[71] Revenue and Cost In 2021, the company's main business revenue increased by 21.01%, while main business costs increased by 30.27%, leading to a 5.32 percentage point decrease in gross margin, primarily due to intensified market competition and significant increases in raw material prices | By Product | Operating Revenue (Yuan) | Year-on-year Change | Gross Margin | Gross Margin Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | | Elevators | 3,396,684,816.39 | 25.29% | 26.68% | -5.81% | | Escalators | 643,885,042.60 | 8.89% | 25.32% | -6.92% | | Components | 396,013,882.03 | 19.59% | 11.58% | -5.05% | | Installation and Maintenance | 675,592,490.53 | 14.29% | 25.23% | -1.97% | - The decrease in gross margin was primarily due to: 1) intensified market competition resulting from real estate industry regulations, leading the company to appropriately lower prices for some products; 2) significant increases in prices of major raw materials like steel, which raised procurement costs[101][104] | Item | Unit | 2021 | 2020 | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | | Elevator Sales Volume | Units | 33,756 | 25,605 | 31.83% | | Escalator Sales Volume | Units | 4,004 | 3,382 | 18.39% | Expenses In 2021, the company's various expenses increased to varying degrees, with financial expenses seeing a significant 164.52% year-on-year increase primarily due to higher bill discount interest | Expense Item | 2021 (Yuan) | 2020 (Yuan) | Year-on-year Change | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 468,987,148.41 | 411,617,806.01 | 13.94% | - | | Administrative Expenses | 179,807,027.64 | 160,512,921.36 | 12.02% | - | | Financial Expenses | 7,116,061.86 | 2,690,137.30 | 164.52% | Primarily due to increased bill discount interest in the current period | | Research and Development Expenses | 201,879,419.43 | 179,626,395.16 | 12.39% | - | | Income Tax Expense | 60,085,212.94 | 95,811,597.03 | -37.29% | Primarily due to reduced profit | Research and Development Investment In 2021, the company's R&D investment amounted to 201.88 million Yuan, a 12.39% year-on-year increase, representing 3.90% of operating revenue, with all R&D expenditures expensed | Indicator | 2021 | 2020 | Change Percentage | | :--- | :--- | :--- | :--- | | R&D Investment Amount (Yuan) | 201,879,419.43 | 179,626,395.16 | 12.39% | | R&D Investment as % of Operating Revenue | 3.90% | 4.20% | -0.30% | | Number of R&D Personnel (people) | 448 | 478 | -6.28% | | R&D Personnel as % of Total Employees | 8.56% | 9.66% | -1.10% | Cash Flow In 2021, the company's net cash flow from operating activities was 251.58 million Yuan, a significant 68.20% year-on-year decrease, primarily due to the impact of the real estate industry on sales collections and increased payments for goods, year-end bonuses, and deposits | Item | 2021 (Yuan) | 2020 (Yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 251,576,966.64 | 791,175,461.48 | -68.20% | | Net Cash Flow from Investing Activities | -83,435,019.99 | -217,854,725.32 | 61.70% | | Net Cash Flow from Financing Activities | -23,683,596.47 | -377,657,393.20 | 93.73% | | Net Increase in Cash and Cash Equivalents | 141,312,072.05 | 197,196,403.04 | -28.34% | - The significant decrease in net cash flow from operating activities was primarily due to the impact of the real estate industry on sales collections, and increased payments for goods, year-end bonuses, and bidding deposits[122] Outlook for Company's Future Development The company plans to deepen its core business over the next five years, enhancing efficiency through process reforms to become a leader in green intelligent elevators, aiming for after-sales service to account for no less than 15% of business by 2025 - Strategic Goal: Deepen new elevator business while accelerating layout in the after-sales service market, aiming for after-sales service to account for no less than 15% of business by 2025[150] - 2022 Operating Plan: Continuously deepen management transformation, advancing reforms in marketing, technology, supply chain, finance, and human resources to ensure rapid growth in performance and scale[156][157] - Major Risks: The company faces risks from macroeconomic cycles, intensified industry competition, raw material price fluctuations, accounts receivable recovery, and product quality[160][161][162][163][167] Corporate Governance The company maintains sound corporate governance, adhering to regulations and achieving an A rating in information disclosure, while also implementing equity incentive plans Basic Status of Corporate Governance During the reporting period, the company strictly complied with relevant laws and regulations, continuously improved its corporate governance structure and internal control system, and its governance practices met regulatory requirements, operating in a standardized manner across all aspects - The company's corporate governance practices comply with the normative documents of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, maintaining complete separation from the controlling shareholder in terms of business, personnel, assets, organization, and finance[173][176][182] - In 2021, the company's information disclosure work performed excellently, receiving an A rating in the Shenzhen Stock Exchange's listed company information disclosure assessment[180] Directors, Supervisors and Senior Management During the reporting period, Mr. Zhang Lichun, a director and deputy general manager, resigned due to retirement; the current board, supervisory board, and senior management team possess extensive industry experience, with total pre-tax compensation of 9.80 million Yuan in 2021 - On November 1, 2021, Mr. Zhang Lichun, a director and deputy general manager, resigned from all his positions in the company due to reaching the statutory retirement age[191] | Name | Position | Total Pre-tax Compensation from the Company (Ten Thousand Yuan) | | :--- | :--- | :--- | | Wang Youlin | Chairman, General Manager | 122.22 | | Shen Zhouqun | Director, Deputy General Manager, CFO | 123.52 | | Qin Chengsong | Deputy General Manager, Executive President of Frontline Operations Center | 123.52 | | Wu Xian | Deputy General Manager, Board Secretary | 123.52 | | Total | -- | 979.52 | Equity Incentive and Employee Stock Ownership Plans During the reporting period, the company continued to advance its 2020 stock option incentive plan, adjusting the exercise price and granting reserved options, with the first exercise period for initial grants vesting and the second employee stock ownership plan's first unlock period also vesting - The first exercise period for the initial grant of the 2020 stock option incentive plan vested, with 5.14 million options actually exercised at an exercise price of 6.93 Yuan/share[239][240] - 1.35 million reserved stock options were granted to 66 incentive recipients at an exercise price of 6.93 Yuan/share[238][239] - The first unlock period for the second employee stock ownership plan vested, with 405,000 shares unlocked and already reduced; as of the end of the reporting period, the plan held 945,000 remaining shares[247] Environmental and Social Responsibility The company is not a major polluter, has environmental protection facilities in place, and is actively pursuing green factory initiatives Significant Environmental Issues The company and its subsidiaries are not classified as key polluting units and received no environmental administrative penalties during the reporting period, having established and regularly maintained facilities for treating waste gas, wastewater, noise, and solid waste - The company and its subsidiaries are not classified as key polluting units by environmental protection authorities and received no environmental administrative penalties during the reporting period[263] - The company has constructed and operates pollution control facilities for waste gas, wastewater, noise, and solid waste, and has developed emergency response plans for environmental incidents[263][264][265][268] Significant Matters The company has no major litigation or arbitration, but faces overdue unrecovered amounts from wealth management products, for which impairment provisions have been made Significant Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters, but three lawsuits were filed due to overdue wealth management products, involving amounts of 110 million Yuan, 30 million Yuan, and 39 million Yuan, all currently in progress | Cause of Litigation | Amount Involved (Ten Thousand Yuan) | Progress | | :--- | :--- | :--- | | Purchase of Liangzhu Asset Stable and Far-Reaching Bill Investment Fund not redeemed | 11,000 | Case is currently in execution | | Purchase of Datong Yangming No. 18 Phase I Asset Management Plan not redeemed | 3,000 | Case opened in February 2022, no judgment yet | | Purchase of private equity fund issued by Shanghai Hualing Asset Management Company not redeemed | 3,900 | Case opened in July 2021, no judgment yet | Significant Contracts and Their Performance During the reporting period, the company had no major entrustment, contracting, leasing, or guarantee matters; it used its own funds to purchase wealth management products, with three private wealth management products totaling 179 million Yuan overdue and unrecovered, for which 159 million Yuan in impairment provisions have been made | Wealth Management Product Type | Amount of Wealth Management Transactions (Ten Thousand Yuan) | Unmatured Balance (Ten Thousand Yuan) | Overdue Unrecovered Amount (Ten Thousand Yuan) | Impairment Provision Made (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | 103,000 | 94,000 | 0 | 0 | | Brokerage Wealth Management Products | 5,000 | 5,000 | 0 | 0 | | Trust Wealth Management Products | 3,000 | 0 | 3,000 | 3,000 | | Other Categories | 14,900 | 0 | 14,900 | 12,900 | | Total | 125,900 | 99,000 | 17,900 | 15,900 | - As of the end of 2021, the company had three private wealth management products overdue and unrecovered, with a principal amount totaling 179 million Yuan; the company has cumulatively made impairment provisions of 159 million Yuan and initiated legal action for recovery[326][327] Share Changes and Shareholder Information The company's total share capital remained stable, with minor changes in restricted shares due to personnel changes, and it initiated a share repurchase plan Share Changes During the reporting period, the company's total share capital remained unchanged at 797,652,687 shares, with a slight increase in restricted shares from 34.25% to 34.30% due to the departure of a former director and senior executive - The company's total share capital remained unchanged during the reporting period, still at 797,652,687 shares[341] - Due to the departure of former director and senior management Mr. Zhang Lichun, 400,000 shares held by him were locked, leading to an increase in restricted shares and a corresponding decrease in unrestricted shares[341][346] Shareholders and Actual Controller Information As of the end of the reporting period, the company had 39,418 shareholders; the controlling shareholder and actual controller, Mr. Wang Youlin, held 44.96% of shares and acted in concert with Ms. Zhu Meijuan, while the company's first employee stock ownership plan was the second largest shareholder with 3.77% | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held (shares) | | :--- | :--- | :--- | :--- | | Wang Youlin | Domestic Natural Person | 44.96% | 358,591,306 | | Kangli Elevator Co., Ltd. - First Employee Stock Ownership Plan | Other | 3.77% | 30,084,286 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 3.19% | 25,474,841 | | Zhu Meijuan | Domestic Natural Person | 2.17% | 17,280,000 | - The company's controlling shareholder and actual controller is Mr. Wang Youlin, with no changes during the reporting period[353][356] Share Repurchase Information On November 4, 2021, the company disclosed a share repurchase plan to buy back shares using 30 million to 60 million Yuan through centralized bidding, at a price not exceeding 12 Yuan/share, with 3.89 million shares repurchased as of the end of the reporting period - The company plans to use 30 million to 60 million Yuan of its own funds to repurchase shares for implementing equity incentive or employee stock ownership plans[363] - As of the end of the reporting period, 3.89 million shares have been repurchased[363] Financial Report The company received a standard unqualified audit opinion for its 2021 financial statements, which show increased assets and revenue but decreased net profit and operating cash flow Audit Report Tianheng Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2021 financial statements, affirming that they fairly present the company's financial position and operating results in all material respects, with revenue recognition identified as a key audit matter - The audit opinion type is a standard unqualified opinion[374][375] - Revenue recognition is a key audit matter because revenue is a critical performance indicator, and there is an inherent risk of management manipulating the timing of revenue recognition to achieve specific targets[377][378][381] Financial Statements As of the end of 2021, the company's total assets were 7.06 billion Yuan, total liabilities were 3.85 billion Yuan, and the asset-liability ratio was 54.47%; for the full year, operating revenue reached 5.17 billion Yuan, net profit was 406 million Yuan, and net cash inflow from operating activities was 252 million Yuan Consolidated Balance Sheet As of December 31, 2021, the company's total assets reached 7.06 billion Yuan, a 12.38% increase from the beginning of the year, with current assets at 5.23 billion Yuan, and inventory, accounts receivable, and cash and cash equivalents accounting for a larger proportion; total liabilities were 3.85 billion Yuan, a 17.92% increase, primarily due to notes payable and contract liabilities | Item | December 31, 2021 (Yuan) | December 31, 2020 (Yuan) | | :--- | :--- | :--- | | Total Assets | 7,062,623,483.30 | 6,284,335,213.37 | | Inventory | 1,493,723,064.91 | 1,213,723,454.51 | | Accounts Receivable | 990,263,590.62 | 708,835,204.81 | | Cash and Cash Equivalents | 999,111,088.48 | 861,392,322.42 | | Total Liabilities | 3,847,256,318.39 | 3,262,536,476.48 | | Notes Payable | 1,028,665,472.88 | 666,511,106.46 | | Contract Liabilities | 1,171,845,511.90 | 1,136,435,691.91 | | Total Equity Attributable to Parent Company Owners | 3,214,300,858.27 | 3,011,545,301.43 | Consolidated Income Statement In 2021, the company achieved total operating revenue of 5.17 billion Yuan, a 20.79% year-on-year increase, but operating costs rose by 30.27% to 3.85 billion Yuan, outpacing revenue growth, while selling, administrative, and R&D expenses totaled 851 million Yuan, resulting in a net profit of 406 million Yuan, a 15.69% year-on-year decrease | Item | 2021 (Yuan) | 2020 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 5,169,911,298.44 | 4,280,120,000.54 | | Operating Cost | 3,854,458,711.24 | 2,968,437,407.99 | | Selling Expenses | 468,987,148.41 | 411,617,806.01 | | Administrative Expenses | 179,807,027.64 | 160,512,921.36 | | Research and Development Expenses | 201,879,419.43 | 179,626,395.16 | | Operating Profit | 467,825,333.33 | 582,547,177.89 | | Total Profit | 465,650,839.77 | 576,863,940.68 | | Net Profit | 405,565,626.83 | 481,052,343.65 | | Net Profit Attributable to Parent Company Shareholders | 405,548,976.09 | 485,359,977.78 | Consolidated Cash Flow Statement In 2021, the company's net cash flow from operating activities was 251.58 million Yuan, a significant 68.2% decrease from the previous year's 791.18 million Yuan, while net cash outflow from investing activities narrowed to 83.44 million Yuan, and net cash outflow from financing activities also significantly decreased to 23.68 million Yuan | Item | 2021 (Yuan) | 2020 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 251,576,966.64 | 791,175,461.48 | | Net Cash Flow from Investing Activities | -83,435,019.99 | -217,854,725.32 | | Net Cash Flow from Financing Activities | -23,683,596.47 | -377,657,393.20 | | Net Increase in Cash and Cash Equivalents | 141,312,072.05 | 197,196,403.04 | Notes to Consolidated Financial Statements The financial statement notes detail the composition and changes of each accounting item; as of the end of 2021, accounts receivable increased by 39.7% to 990 million Yuan due to business growth, other receivables increased by 94.8% to 92 million Yuan mainly due to increased bidding deposits, and notes payable increased by 54.3% to 1.03 billion Yuan, with impairment provisions made for some long-term equity investments and overdue wealth management products - Accounts receivable balance at year-end was 1.20 billion Yuan, with a book value of 990 million Yuan after deducting 210 million Yuan in bad debt provisions, representing a 39.70% increase from the beginning of the year[646] - Inventory book value at year-end was 1.49 billion Yuan, a 23.05% increase from the beginning of the year, with goods in transit accounting for the largest portion at 1.11 billion Yuan[687] - An impairment provision of 9.05 million Yuan was made for the long-term equity investment in Beijing Kangli Youlan Robotics Technology Co., Ltd[703][706]