Delian Group(SZ:002666)2022-04-12 16:00Financial Performance - The company reported a revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15%[15]. - The net profit attributable to shareholders was RMB 150 million, an increase of 10% compared to the previous year[15]. - The company's operating revenue for 2021 was ¥5,192,893,100.24, representing a 16.23% increase compared to ¥4,467,762,291.06 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥248,869,709.76, a 6.95% increase from ¥232,707,376.53 in 2020[20]. - The total profit for 2021 was ¥301,778,616.86, an increase of 5.76% compared to the previous year[44]. - The company reported a basic earnings per share of ¥0.33 for 2021, a 6.45% increase from ¥0.31 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥235,395,315.99, up 11.74% from ¥210,665,048.82 in 2020[20]. - The gross margin for the year was reported at 30%, reflecting improved operational efficiency[15]. - The company reported a significant increase in financial expenses by 95.88% to ¥24,987,618.06, primarily due to reduced exchange gains and increased discount interest[76]. Revenue Growth and Market Expansion - The company aims to achieve a revenue growth target of 12% for the fiscal year 2022[15]. - The company plans to expand its market presence by increasing its distribution channels by 20% in 2022[15]. - The automotive industry saw a production and sales increase of 3.4% and 3.8% respectively in 2021, with total production reaching 2,608.2 million vehicles[31]. - New energy vehicles achieved a production and sales growth of 160% in 2021, with a market share increase to 13.4%[32]. - The company continues to expand its automotive fine chemicals business, serving 56 major automotive manufacturers and focusing on the growing new energy vehicle market[33]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market share[15]. Research and Development - Research and development expenses accounted for 8% of total revenue, focusing on new product innovations in automotive parts[15]. - The company’s R&D investment totaled ¥100,933,275.19 in 2021, marking a 20.15% increase from the previous year[49]. - R&D investment rose to ¥100,933,275.19 in 2021, up 20.15% from ¥84,004,103.04 in 2020[79]. - R&D investment as a percentage of operating revenue increased to 1.94% in 2021 from 1.88% in 2020[80]. - The company has several ongoing R&D projects aimed at expanding its product market share, including high-performance lubricants and noise-reducing materials[78]. Supply Chain and Production - The company has initiated a new strategy to enhance supply chain management, aiming for a 15% reduction in costs by 2023[15]. - The company has established five major "贴厂基地" (贴厂 bases) across key automotive industry clusters in China, enhancing its service capabilities and reducing transportation costs[39]. - The company aims to become a specialized comprehensive supply and service platform in the automotive fine chemical sector, holding first-tier supplier qualifications from various domestic and international automotive manufacturers[40]. - The company has expanded its production capacity and storage capabilities, including the construction of a new production line for sealants and water-based spray damping materials[52]. - The company has established several new subsidiaries in 2021, including Changchun Delian Star Automotive Sales Service Co., Ltd. and Shenyang Delian Kaijun Automotive Sales Service Co., Ltd., each with a 100% ownership stake[72]. Cash Flow and Financial Management - The net cash flow from operating activities was negative at -¥69,761,908.69, a decline of 124.30% compared to ¥287,089,416.15 in 2020[20]. - Operating cash inflow totaled ¥5,254,443,287.69 in 2021, a 10.37% increase from ¥4,760,553,498.13 in 2020[81]. - Investment cash inflow decreased by 69.97% to ¥218,434,877.14 in 2021, primarily due to reduced returns from financial products[82]. - Financing cash inflow increased by 62.33% to ¥1,773,542,781.32 in 2021, mainly from increased borrowings[82]. - The company reported an investment income of ¥58,697,340.41, accounting for 19.45% of total profit[85]. Challenges and Risks - The company faces risks related to high customer concentration, with sales to the top five customers accounting for around 50% of total revenue[114]. - The company is exposed to raw material cost risks due to fluctuations in international oil prices, which can impact gross margins[115]. - The company anticipates that the ongoing pandemic may affect production and sales, particularly if major clients or production bases are impacted[115]. - The company faced challenges in the automotive aftermarket due to the COVID-19 pandemic, leading to a significant decrease in orders and unmet expected performance[100]. Corporate Governance and Compliance - The company held 5 shareholder meetings during the reporting period, ensuring compliance with relevant regulations and maintaining transparency in decision-making processes[118]. - The board of directors consists of 8 members, including 3 independent directors, who actively participate in training and decision-making to protect shareholder interests[119]. - The company has established a complete and independent financial accounting system, ensuring financial decisions are made independently and in compliance with regulations[123]. - The company has a dedicated internal audit department that reports directly to the board's audit committee, enhancing risk control and compliance[121]. - The company has implemented a robust internal control system to ensure orderly business operations and effective risk management[120]. Social Responsibility and Environmental Initiatives - The company actively engages in social responsibility, donating RMB 500,000 to upgrade the library of Shimen Experimental School[168]. - The company has implemented environmental protection measures, including the installation of VOCs treatment equipment and online monitoring systems since 2017[164]. - The company conducts regular environmental monitoring, including weekly and monthly tests for wastewater and air emissions[164]. - The company emphasizes safety production, conducting regular inspections and training to ensure a zero-accident environment[167]. Employee Management and Development - The total number of employees at the end of the reporting period was 963, including 99 at the parent company and 864 at major subsidiaries[147]. - The professional composition of employees includes 298 production personnel, 290 sales personnel, 82 technical personnel, 57 financial personnel, and 236 administrative personnel[148]. - The company has established a comprehensive training program to enhance employee skills and adapt to business development needs[150]. - The company has a structured salary policy aligned with job value and differentiated treatment based on technical capabilities[149].