WLY(SZ:002434)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was ¥5,475,006,450.50, a decrease of 9.73% compared to ¥6,064,883,536.23 in 2020[28]. - The net profit attributable to shareholders for 2021 was -¥747,477,238.38, representing a decline of 221.09% from ¥617,283,605.32 in 2020[28]. - The net cash flow from operating activities was ¥144,228,646.17, down 83.68% from ¥883,573,771.11 in the previous year[28]. - The total assets at the end of 2021 were ¥10,002,630,392.00, a decrease of 13.63% from ¥11,580,861,176.59 at the end of 2020[28]. - The net assets attributable to shareholders decreased by 20.12% to ¥5,312,616,445.25 from ¥6,650,763,683.63 in 2020[28]. - The basic earnings per share for 2021 was -¥0.57, a decline of 221.28% compared to ¥0.47 in 2020[28]. - The weighted average return on net assets was -12.60%, down 22.25% from 9.65% in the previous year[28]. - The company reported a net profit attributable to shareholders of CNY -74,747.72 million, marking its first loss since its listing in 2010, impacted by goodwill impairment of CNY 94,445.07 million[77]. - The gross profit margin for automotive parts manufacturing was 16.56%, a decrease of 2.60% from the previous year[90]. Market Trends and Challenges - The automotive market in China saw a production and sales increase of 3.4% and 3.8% respectively in 2021, with total production reaching 26.08 million vehicles[44]. - The sales of new energy vehicles in China surged by 159.5% in 2021, with production reaching 3.55 million units[44]. - The commercial vehicle market faced challenges in 2021, but long-term growth is expected due to increased infrastructure investment and regulatory compliance[47]. - The government implemented a 20% reduction in subsidies for new energy vehicles compared to 2020, while public transport vehicles received a 10% subsidy reduction[49]. - The introduction of the National VI emission standard for heavy diesel vehicles starting July 1, 2021, aims to enhance energy conservation and reduce emissions in the commercial vehicle sector[51]. - The company faces risks related to market competition, talent acquisition, and fluctuations in raw material prices[7]. Product Development and Innovation - The company focuses on the development and production of automotive transmission and new energy vehicle drive systems, including manual and automatic transmissions, hybrid systems, and electric drive systems[53]. - The company has invested in R&D to develop new technologies and products that align with industry trends, enhancing its competitive edge[53]. - The company is advancing the mass production of the pure electric vehicle ECVT drive system project, aimed at enhancing market competitiveness in the electric vehicle sector[111]. - The DHT dual-motor hybrid system project has completed prototype vehicle verification and is also moving towards mass production[111]. - The company is developing a series of AMT automatic transmission products for heavy trucks, currently undergoing road testing verification[111]. - The company has increased its focus on developing EV reducers and related products, aiming to enhance market presence and sales in the future[64]. Sales and Distribution - The company has established strong partnerships with major domestic automotive manufacturers, ensuring a stable supply chain and market presence[57]. - The company has implemented a comprehensive sales and service system to enhance customer relationships and market management[58]. - The sales volume of automotive transmissions decreased by 15.35% year-on-year to 1,334,018 units, while EV reducer sales dropped by 58.23% to 1,853 units[61]. - The domestic sales in the reporting period were 1,335,871 units, reflecting a decrease of 15.47% compared to the previous year[64]. - The total sales amount from the top five customers reached RMB 3,863,806,114.51, accounting for 70.57% of the annual total sales[103]. Research and Development - Research and development (R&D) expenses amounted to RMB 349,803,876.98, reflecting a year-on-year increase of 6.35%[107]. - The number of R&D personnel increased by 10.98% to 465 in 2021 compared to 419 in 2020[110]. - Total R&D investment reached RMB 376,858,389.84, which is 6.88% of operating revenue, up from 5.96% in the previous year[114]. - The capitalized R&D investment decreased by 16.54% to RMB 27,054,512.86, with the capitalization rate dropping to 7.18%[114]. Strategic Initiatives - The company aims to become a world-class automotive parts supplier, focusing on customer-centric values and enhancing core competitiveness[151]. - The company is actively exploring new business areas to create additional revenue and profit growth points[89]. - The company is committed to increasing sales of cast products in the engineering machinery, gearbox, machine tool, and agricultural machinery sectors, aiming for significant growth over 2021 levels[162]. - The company is enhancing its strategic product portfolio to align with the trends of energy efficiency, electrification, and intelligence in automotive powertrains, focusing on improving R&D capabilities, particularly in electronic control software and hardware development[163]. Governance and Compliance - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations, which supports sustainable growth[184][186]. - The company emphasizes transparency in information disclosure, ensuring all stakeholders have equal access to relevant information[193]. - The company maintains independence from its controlling shareholder, ensuring no conflicts of interest affect its operations[194]. - The company has established a clear asset ownership structure, with independent production and operational facilities[197]. Future Outlook - Future outlook indicates a strong commitment to expanding market presence and enhancing product offerings, with specific growth targets set for the upcoming fiscal year[179]. - The company plans to enhance product quality and performance to meet world-class standards, while also improving operational efficiency through a comprehensive management system[159]. - The company is considering strategic mergers and acquisitions to enhance its market position and operational capabilities[179].