KNT(SZ:300225)2022-04-29 16:00Financial Performance - In 2021, the company experienced a significant increase in raw material procurement costs, leading to a substantial rise in operating costs and resulting in a loss for the year[4]. - The company's operating revenue for 2021 was CNY 857,959,380.90, a decrease of 3.05% compared to CNY 884,959,565.29 in 2020[28]. - The net profit attributable to shareholders for 2021 was a loss of CNY 110,660,928.76, representing a decline of 221.22% from a profit of CNY 91,285,666.66 in 2020[28]. - The net cash flow from operating activities was a negative CNY 210,413,189.29, down 240.54% from CNY 149,722,800.60 in the previous year[28]. - The total assets at the end of 2021 amounted to CNY 1,300,898,386.70, an 8.98% decrease from CNY 1,429,321,443.08 at the end of 2020[28]. - The net assets attributable to shareholders decreased by 9.75% to CNY 911,018,198.04 from CNY 1,009,415,970.09 in 2020[28]. - The basic earnings per share for 2021 was CNY -0.23, compared to CNY 0.19 in 2020, marking a decline of 221.05%[28]. - The company reported a total non-operating income of 12,786,672.54 in 2021, a decrease of 10.3% from 14,248,197.15 in 2020[34]. - Government subsidies recognized in the current period amounted to 6,136,768.28 in 2021, up 45.5% from 4,206,293.61 in 2020[34]. - The company experienced a significant increase in non-recurring losses, with a total of CNY 123,447,601.30 for 2021, compared to CNY 77,037,469.51 in 2020, reflecting a 260.24% increase[28]. Market and Industry Trends - The competitive landscape in the automotive coating market is intensifying, with a few companies, including the company, dominating the market[9]. - The company’s main business revenue is closely tied to the automotive industry, making it vulnerable to macroeconomic fluctuations[8]. - In 2021, the Chinese coatings industry produced approximately 38 million tons, with a revenue forecast exceeding 460 billion yuan, reflecting a 16% year-on-year growth[84]. - The price of raw materials for coatings has surged significantly, with key materials like titanium dioxide increasing by nearly 50% year-on-year, impacting overall production costs[85]. - The automotive repair paint market is expected to grow due to an increase in vehicle ownership, with the number of registered vehicles reaching 395 million in 2021, including 30.2 million cars[106]. Research and Development - The company has significantly increased its human resource expenditures by hiring several senior management personnel and core technical staff to support its dual-track strategy of "scientific research-driven and industrial transformation"[5]. - The company has developed a complete product system for cathodic electrophoretic paint, competing effectively with international brands in core technology and product performance[42]. - The company has 11 R&D personnel for cathodic electrophoretic coatings, with 3 invention patents and 6 utility model patents, indicating strong R&D capabilities[63]. - The company is focusing on R&D for functional new materials, including coatings for autonomous driving and aerogel insulation coatings, to enhance product value and competitiveness[76]. - The company established a joint research center with Fudan University to tackle technical challenges in resin, coatings, and related new materials, enhancing R&D capabilities and product technology[76]. Strategic Initiatives - The company aims to develop environmentally friendly coatings, with a target of 70% of total production by 2025, aligning with national sustainability goals[83]. - The company is transitioning from a traditional manufacturing profit model to a "full coating solution service provider," enhancing its integrated coating business[58]. - The company is actively expanding its presence in the passenger vehicle paint market, having established a wholly-owned subsidiary to optimize management and improve operational efficiency[100]. - The company aims to implement a dual-track strategy from 2022 to 2026, focusing on "research-driven and industrial transformation" to enhance technology development in new materials and expand its business through joint ventures and acquisitions[154]. - The company is committed to green production and environmental sustainability, increasing the proportion of water-based paints and improving production processes[169]. Operational Challenges - The company faces risks from fluctuating raw material prices, which have a significant impact on operating costs[7]. - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[29]. - The company emphasizes the importance of retaining talent and effective internal training to mitigate human resource risks[171]. - Potential risks include macroeconomic fluctuations affecting demand, rising raw material costs, and challenges in product development and market expansion[170]. Governance and Management - The company maintains independence from its controlling shareholders in terms of assets, business, personnel, finance, and organization, ensuring a complete business system and independent operational capability[186]. - The company has implemented a robust internal control system to ensure the normal operation of its production and management activities[186]. - The company emphasizes the importance of stakeholder interests, aiming for a balance among social, shareholder, corporate, and employee benefits[183]. - The company reported a change in financial leadership with the appointment of Sui Jingyuan as the new Chief Financial Officer on August 9, 2021, after the resignation of Yan Jiahua[195]. - The company emphasizes the importance of professional backgrounds in its leadership, with members having experience in major corporations like 3M and Kimberly-Clark[197].