TOREAD(SZ:300005)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,242,687,502.74, representing a 36.23% increase compared to CNY 912,175,256.51 in 2020[18]. - The net profit attributable to shareholders for 2021 was CNY 54,465,219.85, a significant turnaround from a loss of CNY 274,908,896.46 in 2020, marking a 119.81% improvement[18]. - The net profit after deducting non-recurring gains and losses was CNY 18,952,631.56, compared to a loss of CNY 312,132,014.74 in the previous year, reflecting a 106.07% increase[18]. - The company's cash flow from operating activities was CNY 31,464,616.47, a 125.23% increase from a negative cash flow of CNY 124,688,307.03 in 2020[18]. - Basic earnings per share for 2021 were CNY 0.0616, up 119.80% from a loss of CNY 0.3111 per share in 2020[18]. - Total assets at the end of 2021 amounted to CNY 2,525,100,360.20, a 5.22% increase from CNY 2,399,790,259.61 at the end of 2020[18]. - The net assets attributable to shareholders were CNY 2,162,419,799.58, reflecting a 2.47% increase from CNY 2,110,234,233.93 in 2020[18]. - The company reported a quarterly revenue of CNY 584,376,683.06 in Q4 2021, which was the highest among the four quarters[20]. - The weighted average return on equity for 2021 was 2.55%, a significant recovery from -11.97% in 2020[18]. Market Position and Strategy - The outdoor products segment saw a significant increase in sales, driven by a 30.8% year-on-year growth in outdoor product sales in China's online retail market[29]. - The company has established a leading position in brand building, marketing management, product R&D, and supply chain management within the outdoor products industry[30]. - The government has introduced policies to support the development of outdoor sports, which is expected to benefit the outdoor products industry[31]. - The company was recognized with the "Annual Technology Innovation Brand Award" and "Annual Technology Outdoor Clothing Design Award" for its commitment to innovation[34]. - The company was selected as the only outdoor products enterprise in the second batch of national consumer goods standardization pilot projects, highlighting its leadership in standardization[34]. - The company implemented a digital transformation strategy (Digital 2.0) to enhance operational efficiency and align sales with R&D and supply resources[33]. - The outdoor sports market in China is expected to continue growing, with a projected increase in the participation rate in sports activities to 38.5% by 2025[31]. - The company has maintained a low proportion of export sales, minimizing the impact of changes in international trade policies on its operations[32]. Product Development and Innovation - The company emphasizes continuous product innovation and development to meet diverse market demands and improve core competitiveness[41]. - The company has developed a chip business focused on Mini/Micro LED display driver IC design and module production, with current main products being Mini LED display driver ICs and modules[46]. - The company has launched over 30 rapid response product projects during the pandemic, including marketing products related to significant events such as "100th Anniversary of the Communist Party" and "Space Exploration"[61]. - The company has successfully integrated a dual-track R&D and ordering model of futures and flexible quick response products, ensuring efficient achievement of order meeting targets[61]. - The company has completed market research for high-altitude outdoor tents, focusing on user needs and competitive analysis, with plans to apply findings to mass production[104]. - A new high-performance outdoor fabric has been developed, featuring water resistance, durability, and environmental friendliness, with a focus on enhancing user experience[104]. - The company is working on a lightweight cold-resistant boot that incorporates aerospace-grade antibacterial technology, with prototypes in testing[105]. Sales and Distribution - The company has established a comprehensive marketing network consisting of online and offline sales channels, with a focus on enhancing member engagement and increasing purchase conversion rates through various digital platforms[43]. - The company has increased brand promotion investments, emphasizing the new brand spirit of "Bravely Explore," which aims to strengthen connections with young consumers and enhance brand vitality[45]. - The company opened 111 new stores and closed 324 stores during the reporting period, resulting in a total of 786 chain stores by the end of 2021[60]. - The outdoor products segment accounted for 99.92% of total revenue, with revenue from outdoor apparel reaching CNY 907.68 million, which is 73.04% of total revenue[69]. - The company reported a gross margin of 40.40% for the outdoor products sector, an increase of 6.26% compared to the previous year[72]. - The North China region generated CNY 541.55 million in revenue, accounting for 43.58% of total revenue, with a significant year-on-year growth of 74.84%[70]. Research and Development - The company holds a total of 26 patents as of the end of the reporting period, reflecting its focus on technology innovation and intellectual property protection[51]. - Research and development expenses increased by 3.57% to CNY 43,763,422.82 in 2021 compared to CNY 42,256,732.56 in 2020[84]. - The total R&D investment for 2021 was ¥43,763,422.82, accounting for 3.52% of operating revenue, a decrease from 4.63% in 2020[106]. - The number of R&D personnel increased by 21.70% to 129 in 2021, with a higher proportion of personnel holding bachelor's degrees at 54[106]. - The company is committed to increasing R&D investment to maintain technological leadership and improve product market share[151]. Governance and Management - The company adheres to legal regulations and has improved its governance structure, ensuring equal rights for all shareholders, particularly minority shareholders[158]. - The company maintains independence from its controlling shareholder in terms of business operations, personnel, assets, and finances, with no reliance on the controlling shareholder's enterprises[161]. - The company has established an independent financial department and a complete financial accounting system, ensuring it can make independent financial decisions[162]. - The company held its first extraordinary general meeting on January 15, 2021, with an investor participation rate of 14.75%[163]. - The company has a performance-based remuneration system linked to annual operating results and individual performance evaluations[180]. - The total remuneration paid to directors, supervisors, and senior management in 2021 amounted to CNY 20.17 million[181]. - The company is committed to maintaining a robust governance structure with independent directors to ensure transparency and accountability[174]. Future Outlook - The company plans to expand its outdoor products and chip business, focusing on brand building and market share growth[142]. - The company aims to enhance product development and supply chain efficiency to improve overall profitability[143]. - The strategy includes exploring smart outdoor products and integrating AR/VR technologies into their offerings[142]. - The company intends to optimize its channel layout and enhance online sales through strategic partnerships with e-commerce platforms[143]. - The company’s financial guidance for the next fiscal year anticipates a revenue growth of approximately 20%[168]. - The company is likely to pursue new strategies for market expansion and product development, leveraging the expertise of its newly appointed management team[176].