京威股份(002662) - 2021 Q4 - 年度财报

Important Notice, Table of Contents and Definitions This section provides essential preliminary information and definitions for the annual report Important Notice The company's board and management affirm the report's accuracy, supported by an unqualified audit opinion, with no profit distribution planned for 2021 - ShineWing Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion for the company's financial report[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[7] Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance metrics Key Accounting Data and Financial Indicators In 2021, operating revenue and net profit declined, but core business profitability improved, while operating cash flow decreased and total assets contracted | Indicator | 2021 | 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 3,508,914,273.05 | 3,754,078,111.18 | -6.53% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 102,107,123.27 | 112,531,009.65 | -9.26% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) (CNY) | 104,675,628.78 | 65,096,741.12 | 60.80% | | Net Cash Flow from Operating Activities (CNY) | 497,484,892.31 | 802,309,399.11 | -37.99% | | Basic Earnings Per Share (CNY/share) | 0.07 | 0.08 | -12.50% | | Total Assets (CNY) | 4,715,585,974.00 | 5,154,395,189.59 | -8.51% | | Net Assets Attributable to Shareholders of Listed Company (CNY) | 3,268,238,432.94 | 3,166,131,309.67 | 3.22% | Quarterly Key Financial Indicators The company's 2021 quarterly operating revenue remained relatively stable, but Q4 net profit attributable to shareholders experienced a significant loss of CNY 203 million, contrasting sharply with the profitability of the first three quarters | Indicator (CNY) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 817,401,596.11 | 925,446,329.50 | 853,889,699.28 | 912,176,648.16 | | Net Profit Attributable to Shareholders of Listed Company | 78,107,016.94 | 108,506,554.01 | 118,758,242.25 | -203,264,689.93 | Non-recurring Gains/Losses and Amounts In 2021, the company's total non-recurring gains/losses amounted to -CNY 2.57 million, a significant decrease from CNY 47.43 million in 2020, primarily due to a shift from gains to losses on disposal of non-current assets | Item (CNY) | 2021 Amount | 2020 Amount | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -20,670,726.40 | 4,989,364.13 | | Government Grants Recognized in Current Profit/Loss | 5,778,230.51 | 53,984,976.85 | | Other Non-operating Income and Expenses | 14,706,933.41 | -4,421,849.78 | | Total | -2,568,505.51 | 47,434,268.53 | Management Discussion and Analysis This section provides management's perspective on the company's operations, financial condition, and future outlook Industry Overview In 2021, China's automotive industry ended a three-year decline with production and sales growth, driven significantly by new energy vehicles, despite ongoing challenges like chip shortages and rising raw material prices - In 2021, China's automobile production and sales reached 26.082 million and 26.275 million vehicles respectively, representing YoY increases of 3.4% and 3.8%, ending a three-year decline since 2018[33] - New energy vehicles emerged as the industry's biggest highlight, with production and sales increasing 1.6 times YoY, achieving a market share of 13.4%, indicating a shift from policy-driven to market-driven development[33] Principal Business The company's core business involves R&D, production, and sales of interior and exterior trim parts for mid-to-high-end passenger vehicles, operating on a "production-to-order" model, with exterior trim product output growing by 23.24% in 2021, while interior trim products saw declines in both output and sales - The company is a Sino-German joint venture specializing in integrated manufacturing of passenger vehicle interior and exterior trim systems, providing supporting R&D and services for mid-to-high-end passenger vehicles[38] | By Component Category | Output (Current Period) | Output (Prior Period) | YoY Change | Sales Volume (Current Period) | Sales Volume (Prior Period) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Exterior Trim Products | 89,466,910 | 72,594,436 | 23.24% | 86,355,578 | 82,593,665 | 4.55% | | Interior Trim Products | 23,481,354 | 28,599,434 | -17.90% | 24,391,273 | 30,842,769 | -20.92% | Core Competitiveness Analysis The company's core competencies include comprehensive multi-material molding and surface treatment technologies, a stable base of high-quality clients, a nationwide production layout, advancements in intelligent manufacturing, refined management, talent development, and a robust technological innovation system - The company possesses comprehensive multi-material molding and surface treatment technologies within the industry, with domestic leadership particularly in bright anodizing of aluminum alloys and aluminum profile extrusion technologies[45] - The client base is stable and high-quality, including mainstream OEMs such as FAW-Volkswagen, BMW Brilliance, Beijing Benz, Jaguar Land Rover, and Volvo, and has established partnerships with leading new energy vehicle manufacturers[46] - The company has established production bases in multiple locations nationwide (Changchun, Yantai, Qinhuangdao, Wuxi, Chengdu, Foshan), strategically located near major clients to enhance service efficiency and reduce costs[47] Principal Business Analysis During the reporting period, the company's operating revenue decreased by 6.53% to CNY 3.509 billion, and net profit attributable to shareholders decreased by 9.26% to CNY 102 million, primarily due to the pandemic, automotive chip shortages, and significant credit and asset impairment losses, though cost and expense reductions largely aligned with revenue decline through refined management Revenue and Cost Exterior trim products are the company's primary revenue source, accounting for 80.16% of total revenue with a slight 1.59% decrease, while interior trim products and other products/services saw significant declines of 19.17% and 25.15% respectively, resulting in an overall gross margin of 27.14% with high customer concentration from the top five clients accounting for 59.16% of total sales | By Product | Operating Revenue (CNY) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Exterior Trim Products | 2,812,572,690.09 | 80.16% | -1.59% | | Interior Trim Products | 345,449,423.41 | 9.84% | -19.17% | | Other Products and Services | 350,892,159.55 | 10.00% | -25.15% | - The combined sales amount from the company's top five clients accounted for 59.16% of the total annual sales, indicating a high degree of customer concentration[62] - The combined procurement amount from the company's top five suppliers accounted for 28.20% of the total annual procurement[62] Expenses During the reporting period, the company's expense structure significantly changed, with selling and R&D expenses increasing by 46.61% and 43.13% respectively due to higher payroll and increased investment in new products and R&D, while financial expenses sharply decreased by 59.59% primarily due to repayment of shareholder loans | Expense Item | 2021 (CNY) | 2020 (CNY) | YoY Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 121,792,983.29 | 83,075,371.23 | 46.61% | Increased payroll, new customer acquisition, and new product mass production leading to higher packaging and sorting service fees | | Financial Expenses | 41,179,180.32 | 101,894,783.92 | -59.59% | Repayment of shareholder loans, resulting in reduced interest expenses | | R&D Expenses | 201,006,041.62 | 140,439,240.28 | 43.13% | Increased R&D investment and additional R&D projects | R&D Investment In 2021, the company's total R&D investment reached CNY 201 million, a 43.13% increase YoY, raising its proportion of operating revenue from 3.74% to 5.73%, with R&D personnel increasing by 31.07%, focusing on lithium battery project development and automotive component process improvement and automation upgrades | Indicator | 2021 | 2020 | Change Percentage | | :--- | :--- | :--- | :--- | | R&D Investment Amount (CNY) | 201,006,041.62 | 140,439,240.28 | 43.13% | | R&D Investment as % of Operating Revenue | 5.73% | 3.74% | 1.99% | | Number of R&D Personnel (persons) | 464 | 354 | 31.07% | - The company is establishing a lithium battery project to expand product categories and drive growth in automotive aluminum alloy components[66] Cash Flow In 2021, the company's net cash flow from operating activities significantly decreased by 37.99% to CNY 497 million, primarily due to rising raw material prices, increased payroll, and reduced government subsidies, while net cash flow from investing activities was -CNY 132 million, a 254% decrease, mainly due to increased asset investments | Item (CNY) | 2021 | 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 497,484,892.31 | 802,309,399.11 | -37.99% | | Net Cash Flow from Investing Activities | -132,340,222.35 | -37,384,322.33 | -254.00% | | Net Cash Flow from Financing Activities | -545,732,585.46 | -559,611,298.96 | 2.48% | | Net Increase in Cash and Cash Equivalents | -181,146,833.40 | 206,053,546.82 | -187.91% | Analysis of Assets and Liabilities As of the end of 2021, the company's total assets were CNY 4.716 billion, a 8.51% decrease YoY, with a shift in asset structure showing a decrease in cash and bank balances and an increase in accounts receivable and inventories, while short-term borrowings increased on the liability side | Key Asset Item | 2021 Period-end Amount (CNY) | Proportion of Total Assets | 2020 Period-end Amount (CNY) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 243,825,467.01 | 5.17% | 437,417,248.09 | 8.48% | -3.31% | | Accounts Receivable | 750,508,109.15 | 15.92% | 708,709,479.55 | 13.73% | 2.19% | | Inventories | 712,293,762.23 | 15.11% | 605,972,452.74 | 11.74% | 3.37% | | Fixed Assets | 1,819,173,514.99 | 38.58% | 1,964,155,945.23 | 38.06% | 0.52% | Investment Status Analysis During the reporting period, the company's most significant investment activity was the initiation of a lithium battery project, a fixed asset investment with CNY 59.48 million invested in the current period, and the project remains under construction - The company is undertaking a significant non-equity investment, specifically the construction of a lithium battery project in Qinhuangdao, aiming to enter the new energy lithium battery industry[78][79] Analysis of Major Holding and Participating Companies The company's primary profit contributors are wholly-owned subsidiaries Qinhuangdao WKW and Wuxi WKW, collectively generating over CNY 340 million in net profit, with joint venture Qinhuangdao WKW Faurecia also performing well with CNY 169 million in net profit, while some equity-invested new energy vehicle manufacturers like Shenzhen Wuzhoulong and Jiangsu Kawei are in significant loss | Company Name | Company Type | Net Profit (Million CNY) | | :--- | :--- | :--- | | Qinhuangdao WKW | Subsidiary | 25,303.27 | | Wuxi WKW | Subsidiary | 8,818.31 | | Changchun WKW | Subsidiary | 4,536.14 | | Qinhuangdao WKW Faurecia | Joint Venture | 16,875.86 | | Shenzhen Wuzhoulong | Associate Company | -10,920.45 | | Jiangsu Kawei | Associate Company | -12,877.03 | Outlook for Company's Future Development The company plans to strengthen core technology R&D and intelligent manufacturing, align with new energy vehicle trends, and prioritize the lithium battery project's production, while acknowledging risks including macroeconomic and industrial policy, financial (accounts receivable, inventory, gross margin, goodwill impairment), and operational (raw material price fluctuations, market competition, customer concentration) - The company plans to drive growth in automotive aluminum alloy components through the development of its new core business, lithium battery products, to achieve overall scale expansion and improved profitability[87] - Key tasks for 2022 include optimizing interior and exterior trim product processes, continuously reducing costs and increasing efficiency, and prioritizing the smooth production of the Qinhuangdao lithium battery project[88][89] - The company faces major risks including industrial policy risk, accounts receivable bad debt risk, inventory impairment risk, gross margin fluctuation risk, goodwill impairment risk, raw material price fluctuation risk, and customer concentration risk[90][92][93][94][96] Corporate Governance This section details the company's governance structure, compliance, and operational mechanisms Basic Status of Corporate Governance The company asserts its governance structure strictly complies with relevant laws and regulations, with no significant discrepancies between actual governance and regulatory requirements, maintaining standardized operations across shareholder meetings, board and supervisory board functions, major shareholder relations, stakeholder engagement, investor relations, and information disclosure - The company's actual corporate governance situation complies with the requirements of normative documents on corporate governance issued by the China Securities Regulatory Commission, with no significant discrepancies[100][102] Information on Directors, Supervisors, and Senior Management During the reporting period, independent director Mr. Li Jieli resigned for personal reasons, and Mr. Guo Qing was elected as the new independent director; the report details the tenure, professional background, and compensation of all directors, supervisors, and senior management, with Chairman and General Manager Mr. Li Jingyu's total pre-tax compensation in 2021 amounting to CNY 828,100 - During the reporting period, independent director Li Jieli resigned due to personal work reasons, and the company elected Guo Qing as the new independent director[110][111] | Name | Position | Total Pre-tax Compensation from Company (Million CNY) | | :--- | :--- | :--- | | Li Jingyu | Chairman, General Manager | 0.8281 | | Chen Shuangyin | Director | 1.6394 | | Bao Lina | Director, Deputy General Manager, Board Secretary | 1.478 | | Wen Tingting | Director, Deputy General Manager, Head of Finance | 1.2495 | | Wang Lihua | Deputy General Manager | 1.3969 | Construction and Implementation of Internal Control System During the Reporting Period The company has established and effectively implemented an internal control system, with its 2021 Internal Control Self-Evaluation Report indicating no significant or material internal control deficiencies, further corroborated by a standard unqualified internal control audit report from the accounting firm - The company's "2021 Internal Control Self-Evaluation Report" indicates no significant or material internal control deficiencies[140] - The accounting firm issued a standard unqualified audit report on the effectiveness of the company's financial reporting internal controls as of December 31, 2021[144] Environmental and Social Responsibility This section outlines the company's commitment and performance regarding environmental protection and social responsibilities Major Environmental Issues The company's subsidiaries Changchun WKW, Wuxi WKW, and Qinhuangdao WKW are designated as key pollutant discharge units, with detailed disclosures on their emissions, pollution control facilities, and permits; notably, Qinhuangdao WKW received an administrative penalty of CNY 1.72 million for environmental violations during the reporting period - The listed company and its subsidiaries, Changchun WKW, Wuxi WKW, and Qinhuangdao WKW, are designated as key pollutant discharge units by environmental protection authorities[151] - Subsidiary Qinhuangdao WKW was fined CNY 1.72 million for violating regulations such as the Solid Waste Law and Environmental Impact Assessment Law, including failure to timely file hazardous waste management plans, not establishing management ledgers, and constructing new production lines without prior approval; the company stated that rectification has been completed[158] Social Responsibility Performance The company prioritizes social responsibility, focusing on production safety, employee rights, supplier and customer interests, and environmental protection, with regular safety training and drills at production bases, protection of employee development rights through recruitment and training, provision of occupational health checks, and upgrades to exhaust gas treatment systems at multiple subsidiaries to reduce emissions - The company's subsidiaries organized multiple safety production training sessions, fire drills, and emergency drills during the reporting period to enhance employee safety awareness and emergency response capabilities[162][163][164][165][166][167] - The company emphasizes employee development and occupational health, conducting campus recruitment, internal training, and regular occupational hazard factor monitoring and employee health examinations[168][173] - Multiple subsidiaries upgraded their exhaust gas treatment facilities, such as Qinhuangdao WKW replacing its UV+activated carbon unit with a more efficient catalytic combustion unit, and Chengdu WKW upgrading its paint shop exhaust gas treatment system to RCO, effectively reducing VOCs emissions[179][180] Significant Matters This section covers important events and their fulfillment, including commitments, related party transactions, and significant contracts Fulfillment of Commitments The commitments made by the company's major shareholders, Beijing Zhonghuan Investment and WKW AG, regarding avoiding horizontal competition and regulating related party transactions during the company's initial public offering are still being fulfilled normally - The commitments made by the company's major shareholders regarding avoiding horizontal competition and regulating related party transactions are long-term effective and currently being fulfilled normally[185] Significant Related Party Transactions The most significant related party transaction during the reporting period was the company's repayment of the entire CNY 618 million loan to shareholder Zhonghuan Investment, resulting in no outstanding payables to related parties at period-end | Related Party | Relationship | Reason for Transaction | Period-start Balance (Million CNY) | Amount Repaid in Current Period (Million CNY) | Period-end Balance (Million CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhonghuan Investment | Shareholder | Loan | 61,800 | 61,800 | 0 | Significant Contracts and Their Fulfillment As of the end of the reporting period, the company's actual guarantee balance for its subsidiaries totaled CNY 545 million, representing 16.68% of the company's net assets, with all guarantees provided to consolidated subsidiaries and no instances of irregular external guarantees | Guarantee Status | Amount (Million CNY) | | :--- | :--- | | Total Approved Guarantee Limit for Subsidiaries in Current Period | 100,000 | | Total Actual Guarantee Balance for Subsidiaries at Period-end | 54,500 | | Proportion of Total Actual Guarantees to Company's Net Assets | 16.68% | Changes in Share Capital and Shareholder Information This section details changes in the company's share capital and provides information on its shareholders and actual controllers Changes in Share Capital During the reporting period, the company's total share capital remained unchanged at 1.5 billion shares, with the vast majority being unrestricted shares - The company's total number of shares remained unchanged during the reporting period at 1,500,000,000 shares[217] Shareholders and Actual Controller Information As of the end of 2021, the company had no controlling shareholder or actual controller; Beijing Zhonghuan Investment Management Co., Ltd. is the largest shareholder with 30.40% stake, followed by WKW AG with 18.87%, and the largest shareholder, Zhonghuan Investment, has a high proportion of its equity pledged - Due to the expiration of the "Joint Control Agreement" between shareholders in March 2018 and its non-renewal, the company is currently in a state without a controlling shareholder or actual controller[221][222] | Shareholder Name | Shareholder Type | Shareholding Percentage | Shares Held at Period-end | | :--- | :--- | :--- | :--- | | Beijing Zhonghuan Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 30.40% | 456,000,000 | | WKW AG | Overseas Legal Person | 18.87% | 283,045,687 | - The largest shareholder, Zhonghuan Investment, has pledged over 80% of its shares in the company, with a total pledged financing amount of CNY 240 million, used to support the development of the listed company[225] Financial Report This section presents the company's audited financial statements and related notes Audit Report ShineWing Certified Public Accountants issued a standard unqualified audit opinion on the company's 2021 financial statements, with key audit matters identified as revenue recognition, impairment of other receivables (primarily equity transfer payments), impairment of long-term equity investments (mainly related to new energy vehicle associate companies), and goodwill impairment testing - The audit opinion type is standard unqualified[233][235] - Key audit matters include: - Revenue recognition - Impairment of other receivables (receivables from equity transfer payments) - Impairment of long-term equity investments (associate companies Wuzhoulong and Changchun New Energy) - Goodwill impairment testing[237][238][239][240][241] Notes to Consolidated Financial Statements The financial statement notes provide detailed explanations of each accounting item's composition and changes, highlighting that the top five accounts receivable comprise 43.99% of the total, significant bad debt provisions exist for large equity transfer receivables, long-term equity investments in Shenzhen Wuzhoulong and Jiangsu Kawei are fully impaired, goodwill impairment testing resulted in a CNY 26.91 million impairment charge this period, and financial expenses significantly decreased due to shareholder loan repayment Accounts Receivable At period-end, the carrying value of accounts receivable was CNY 751 million, a slight increase from the beginning of the period, with the top five accounts receivable by debtor totaling CNY 331 million, accounting for 43.99% of the total - The top five accounts receivable by debtor at period-end collectively accounted for 43.99% of the total accounts receivable period-end balance[448] Other Receivables At period-end, the carrying value of other receivables significantly decreased to CNY 41.41 million, primarily due to high bad debt provisions for large equity transfer payments, including full provisions for CNY 560 million from Beijing Zhiyun and CNY 20 million from Jiangsu Kawei, and a CNY 100 million provision for CNY 126.5 million from Wuxi Hongyi | Entity Name | Nature of Payment | Period-end Balance (CNY) | Bad Debt Provision Period-end Balance (CNY) | | :--- | :--- | :--- | :--- | | Beijing Zhiyun Asset Management Co., Ltd. | Equity Transfer Payment | 560,000,000.00 | 560,000,000.00 | | Wuxi Hongyi Business Management Co., Ltd. | Equity Transfer Payment | 126,500,000.00 | 100,010,900.00 | | Jiangsu Kawei Automobile Industry Group Co., Ltd. | Equity Transfer Payment | 20,000,000.00 | 20,000,000.00 | Long-term Equity Investments At period-end, the carrying value of long-term equity investments was CNY 308 million, with investments in associate companies Shenzhen Wuzhoulong and Jiangsu Kawei fully impaired, while the investment in Changchun New Energy remained unimpaired, and joint ventures Qinhuangdao WKW Faurecia and Wuxi Biya performed well, contributing positive investment income - Long-term equity investment in associate company Shenzhen Wuzhoulong incurred an impairment charge of CNY 9.0507 million this year, with cumulative impairment fully recognized[477][478] - Long-term equity investment in associate company Jiangsu Kawei was fully impaired in prior years[479][480] Goodwill The company performed an impairment test on goodwill arising from the acquisition of Jilin Huayi; the recoverable amount of the asset group containing goodwill was found to be lower than its carrying value, resulting in a goodwill impairment charge of CNY 26.91 million in 2021, with the period-end carrying value of goodwill at CNY 61.61 million - After conducting an impairment test on the Jilin Huayi asset group, a goodwill impairment provision of CNY 26,914,667.04 was recognized in the current period[517][518] Financial Expenses In 2021, financial expenses amounted to CNY 41.1792 million, a significant 59.59% decrease from CNY 101.8948 million in the previous year, primarily due to the repayment of CNY 618 million in loans to shareholder Zhonghuan Investment, which led to a substantial reduction in interest expenses - Financial expenses for the current year significantly decreased compared to the previous year, primarily due to the repayment of CNY 618 million in loans to shareholder Zhonghuan Investment, resulting in reduced interest expenses[586]