天能重工(300569) - 2021 Q4 - 年度财报

Important Notice, Table of Contents, and Definitions This section provides crucial risk warnings regarding the company's operations and defines key terms used throughout the report for clarity Significant Risk Warnings The company explicitly outlines several core operational risks, including high reliance on national renewable energy policies, challenges from strategic transformation to wind farm operations and marine engineering manufacturing, volatile steel prices, intense market competition, rising financing costs, and the ongoing impact of the COVID-19 pandemic - Policy Change Risk: The wind power industry's development heavily relies on national support policies for feed-in tariffs, subsidies, and taxes; any policy change could impact the market demand for the company's tower products and the operating performance of new energy power stations[8] - Strategic Transformation Risk: The company's increased investment in wind farm operations and offshore wind power equipment manufacturing, new businesses significantly different from its original core operations, poses challenges in management, funding, technology, and talent[9] - Raw Material Price Volatility Risk: Steel, a primary raw material, presents a significant challenge to cost control due to price fluctuations; the company mitigates this through production-based sales, contract price adjustment mechanisms, and hedging[10] - Market Competition Risk: The domestic wind turbine tower industry's low concentration and intense competition result in generally low industry profit margins[14] - Rising Financing Cost Risk: Increased investment in wind farm development has significantly raised the company's capital requirements, with some projects utilizing higher-cost finance leases, leading to increased financial pressure[15] Definitions This section defines key terms used in the report, including company entities, controlling shareholder (Zhuhai Port), actual controller (Zhuhai SASAC), main products (wind turbine towers/tower tubes), and business-related technical units (MW), providing a foundation for understanding the report's content Company Profile and Key Financial Indicators This section provides the company's fundamental information and presents key accounting data and financial indicators for the reporting period Company Basic Information This section provides the company's basic business registration information, including stock code (300569), full Chinese and English names, registered and office addresses, and contact details for the Board Secretary and Securities Affairs Representative Key Accounting Data and Financial Indicators In 2021, the company's operating revenue grew by 19.16% to CNY 4.081 billion, but net profit attributable to shareholders decreased by 7.53% to CNY 395 million; net cash flow from operating activities turned negative, sharply declining by 211.08% to CNY -419 million, while total assets and net assets attributable to shareholders increased by 29.83% and 55.58% respectively, boosted by a private placement Key Financial Performance | Indicator | 2021 (CNY) | 2020 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,080,952,377.99 | 3,424,874,350.86 | 19.16% | | Net Profit Attributable to Shareholders | 395,404,335.86 | 427,584,013.95 | -7.53% | | Net Cash Flow from Operating Activities | -418,883,513.32 | 377,116,556.93 | -211.08% | | Basic Earnings Per Share (CNY/share) | 0.5441 | 0.6397 | -14.94% | | Weighted Average Return on Net Assets | 13.15% | 19.05% | -5.90% | | Total Assets | 9,871,831,329.09 | 7,603,468,408.43 | 29.83% | | Net Assets Attributable to Shareholders | 3,771,465,756.96 | 2,424,131,307.45 | 55.58% | Quarterly Financial Performance | Quarter | Operating Revenue (CNY) | Net Profit Attributable to Shareholders (CNY) | Net Cash Flow from Operating Activities (CNY) | | :--- | :--- | :--- | :--- | | Q1 | 320,190,756.60 | 64,158,676.28 | -125,346,447.02 | | Q2 | 680,123,642.22 | 90,218,252.40 | -43,246,734.36 | | Q3 | 1,191,416,472.46 | 125,941,479.19 | -231,241,719.93 | | Q4 | 1,889,221,506.71 | 115,085,927.99 | -19,048,612.01 | - Total non-recurring gains and losses for 2021 amounted to CNY 8.61 million, primarily comprising government grants of CNY 8.43 million and investment income and fair value changes from financial assets held for trading of CNY 3.93 million[44][47] Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, main operations, core competencies, financial performance, asset and investment status, and strategic outlook Industry Overview Guided by China's "3060" dual carbon strategic goals, the wind power industry continues to improve; despite onshore and offshore wind power entering grid parity, short-term construction scale may fluctuate, but declining LCOE due to technological advancements significantly enhances wind power's economic viability, ensuring a positive medium-to-long-term development trend and sustained market demand for the company - Guided by the "3060" dual carbon strategic goals, national policies strongly support the development of non-fossil energy sources like wind and solar power, aiming for non-fossil energy consumption to reach 20% by the end of the "14th Five-Year Plan" period, providing strong impetus for industry growth[53][54] - With larger wind turbines and technological advancements, the Levelized Cost of Electricity (LCOE) for wind power continues to decline, significantly improving its economic viability, ensuring the wind power market remains highly prosperous even after subsidies are phased out[55] Company's Main Businesses The company adheres to a "dual-driven" strategy, with main businesses including wind turbine tower manufacturing and sales, and new energy power generation project operations; in 2021, tower business (including marine engineering) sales reached 395,000 tons, with marine products accounting for nearly 30%, while new energy power generation operations held an grid-connected capacity of 481.8 MW, contributing CNY 488 million in revenue and CNY 178 million in profit, becoming a significant performance growth driver - The company adopts a "dual-driven strategy," with businesses covering wind turbine tower manufacturing and sales, as well as the development, investment, construction, and operation of new energy (wind and photovoltaic) power generation projects[59] Business Segment Performance | Business Segment | 2021 Performance | Key Indicators | | :--- | :--- | :--- | | Wind Turbine Tower Manufacturing | Sales of approximately 395,000 tons | Including approximately 118,800 tons of offshore wind turbine towers and monopiles | | New Energy Power Generation Operations | Revenue of approximately CNY 488 million, profit of approximately CNY 178 million | Total grid-connected capacity held approximately 481.8 MW (wind power 363.8 MW, photovoltaic 118 MW) | - As of March 31, 2022, the company's order backlog was approximately CNY 3.207 billion, with offshore wind turbine towers and monopiles accounting for approximately CNY 1.236 billion, or 38.5%[62] - The company has 13 production bases nationwide (including those under construction), with a total planned capacity of approximately 830,500 tons, and its extensive regional layout helps reduce transportation costs[71] Analysis of Core Competencies The company's core competencies are multifaceted: technologically, it holds 35 national patents and excels in high-end and offshore tower manufacturing; quality-wise, it possesses comprehensive domestic and international certifications; in terms of brand and customer relations, it maintains close ties with mainstream manufacturers and owners; its production capacity layout across 13 national bases effectively reduces costs; strategically, the "dual-driven" approach creates synergistic effects across the value chain; and its shareholder background, with controlling shareholder Zhuhai Port Group, provides strong financial and resource support - Technological Advantage: The company possesses technological barriers in offshore and high-end wind turbine tower manufacturing, holding 35 national utility model and invention patents, with core technologies in welding, rust removal, and coating processes[75][78] - Production Capacity Layout Advantage: The 13 production bases nationwide (including those under construction) have a combined capacity of approximately 830,500 tons, and their extensive regional distribution effectively reduces transportation costs and enhances customer stickiness[81] - Industrial Chain Expansion Advantage: The "dual-driven" strategy fosters mutual promotion between tower manufacturing and wind farm development, reducing industry volatility risks associated with a single business[82] - Shareholder Advantage: Controlling shareholder Zhuhai Port Group (under Zhuhai SASAC) provides strong financial backing, completing a private placement of approximately CNY 1 billion in 2021, empowering the company's development[83] Analysis of Main Business Operations This section deeply analyzes the company's operating performance; in 2021, total revenue grew by 19.16%, primarily driven by the 87.48% high growth in new energy power generation, yet the manufacturing segment's gross margin sharply declined by 8.96 percentage points due to rising raw material costs, dragging down overall net profit by 7.53%; concurrently, financial expenses surged by 44.88% year-on-year to support power station construction, and operating cash flow turned significantly negative due to changes in collection structure and increased procurement expenditures Revenue and Cost In 2021, total revenue reached CNY 4.081 billion, a 19.16% year-on-year increase, with manufacturing revenue at CNY 3.593 billion (+13.54%) and new energy power generation revenue at CNY 488 million (+87.48%); affected by rising steel prices, the manufacturing gross margin decreased by 8.96 percentage points from 25.72% to 16.76%, while the new energy power generation business gross margin increased to 71.01% Revenue and Cost by Segment | Industry/Product Segment | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | YoY Revenue Change | YoY Cost Change | YoY Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Manufacturing | 3,592,984,249.96 | 2,990,704,347.11 | 16.76% | 13.54% | 27.24% | -8.96% | | New Energy Power Generation | 487,968,128.03 | 141,469,092.87 | 71.01% | 87.48% | 55.88% | 5.88% | - Manufacturing costs for wind power equipment, such as tower tubes, increased by 27.29%, primarily due to rising raw material prices, especially steel, during the reporting period[98] Expenses In 2021, the company's three major expenses and R&D expenses varied; financial expenses saw the largest increase, rising by 44.88% year-on-year to CNY 167 million, mainly due to increased power station financing and convertible bond interest, while R&D expenses grew by 15.77% to CNY 107 million, reflecting the company's continuous investment in technological innovation Expense Breakdown | Expense Item | 2021 (CNY) | 2020 (CNY) | YoY Change | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 13,871,396.66 | 15,161,711.03 | -8.51% | Decrease in bidding service fees | | Administrative Expenses | 142,813,749.38 | 134,965,842.27 | 5.81% | Increased expenses due to new plant operation | | Financial Expenses | 167,062,215.15 | 115,308,251.53 | 44.88% | Increased power station financing and convertible bond interest expenses | | R&D Expenses | 106,613,472.52 | 92,092,548.72 | 15.77% | Increased investment in R&D efforts | Research and Development Investment In 2021, the company's total R&D investment was CNY 107 million, accounting for 2.61% of operating revenue; R&D activities focused on improving manufacturing processes for large-megawatt and offshore wind power equipment, completing key technology research such as segmented tower tubes, crack-resistant welding, and multi-wire welding, with R&D personnel increasing to 78 individuals, a 23.81% year-on-year growth R&D Investment Trends | Year | R&D Investment Amount (CNY) | R&D Investment as % of Operating Revenue | | :--- | :--- | :--- | | 2021 | 106,613,472.52 | 2.61% | | 2020 | 92,092,548.72 | 2.69% | | 2019 | 68,400,223.62 | 2.78% | - Key R&D projects aim to overcome manufacturing challenges for large-megawatt wind turbine towers, such as segmented tower tube technology for easier transportation, and multi-wire and root-pass-free welding processes to enhance efficiency and quality[109][112] Cash Flow In 2021, the company's net cash flow from operating activities was CNY -419 million, a significant year-on-year decrease of 211.08%, primarily due to a higher proportion of bank acceptance bills in received payments and increased cash outflows for material purchases; net cash flow from financing activities was CNY 950 million, growing by 62.79% year-on-year, benefiting from private placement and new power station financing Cash Flow Summary | Item | 2021 (CNY) | 2020 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -418,883,513.32 | 377,116,556.93 | -211.08% | | Net Cash Flow from Investing Activities | -274,228,061.46 | -1,099,690,491.34 | 75.06% | | Net Cash Flow from Financing Activities | 950,478,285.52 | 583,874,824.56 | 62.79% | | Net Increase in Cash and Cash Equivalents | 257,377,770.65 | -138,699,109.85 | 285.57% | - A significant discrepancy exists between net operating cash flow and net profit, primarily due to a higher proportion of bank acceptance bills in received payments, increased cash outflows for material purchases, and a CNY 416 million increase in year-end inventory[121] Analysis of Assets and Liabilities As of the end of 2021, the company's total assets reached CNY 9.872 billion, a 29.83% year-on-year increase; the asset structure significantly changed, with fixed assets increasing from 28.13% to 35.97% of total assets, mainly due to the capitalization of multiple wind power projects, while construction in progress sharply decreased from 17.48% to 3.36%; benefiting from private placement funds, the asset-liability ratio decreased from 67.63% to 61.41% Asset Structure Changes | Asset Item | Amount at 2021 Year-End (CNY) | % of Total Assets | Amount at 2020 Year-End (CNY) | % of Total Assets | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,455,381,632.84 | 14.74% | 725,468,999.63 | 9.54% | Increase in acceptance bills, guarantees, and other deposits | | Accounts Receivable | 2,344,399,030.47 | 23.75% | 1,710,890,197.61 | 22.50% | Due to increased product sales | | Inventories | 1,008,663,327.77 | 10.22% | 593,029,996.16 | 7.80% | Increase in outstanding orders at year-end | | Fixed Assets | 3,550,904,259.37 | 35.97% | 2,138,854,780.51 | 28.13% | Capitalization of multiple wind power projects and new Guangdong plant | | Construction in Progress | 331,391,622.47 | 3.36% | 1,329,413,486.58 | 17.48% | Capitalization of multiple wind power projects | - As of the end of the reporting period, the company had CNY 3.475 billion in restricted assets, primarily including CNY 970 million in pledged deposits, CNY 1.713 billion in mortgaged fixed assets, and a total of CNY 591 million in pledged accounts receivable and power station collection rights[131] Analysis of Investment Status During the reporting period, the company completed two significant fundraising initiatives; the CNY 700 million raised from convertible bonds issued in 2020 has been fully utilized, primarily for the Dezhou Wind Farm project and bank loan repayment, while nearly CNY 1 billion raised from a private placement to the controlling shareholder in 2021 has been entirely used for debt repayment; all raised funds were utilized as planned, effectively supporting project construction and optimizing the capital structure Funds Raised and Utilized | Fundraising Year | Fundraising Method | Total Funds Raised (CNY 10,000) | Used in Current Period (CNY 10,000) | Total Used (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | | 2020 | Issuance of Convertible Corporate Bonds | 69,040 | 5,987.41 | 69,068.83 | | 2021 | Private Placement of Shares | 99,689.59 | 99,689.48 | 99,689.48 | | Total | -- | 168,729.59 | 105,676.89 | 168,758.31 | - Raised funds were primarily invested in the "Dezhou Xintianneng Zhaohuzhen Wind Farm Project" and its second phase, as well as for repaying bank loans and other debts; all projects have reached 100% investment progress and achieved expected benefits[142] Outlook on Company's Future Development The company will continue to deepen its "dual-driven" strategy; in manufacturing, it will leverage existing and new marine engineering bases (Dongying, 200,000 tons/year) to vigorously develop offshore wind power and overseas markets; in new energy, it will continuously increase investment in wind and photovoltaic power station construction to expand operational scale; to support this development, the company plans to launch a new private placement in 2022, raising no more than CNY 2.07 billion - The company will continue to adhere to its "dual-driven strategy" of tower tube manufacturing and new energy power generation, deeply cultivating wind power tower tube manufacturing while actively expanding new energy development and utilization[159] - To align with offshore wind power development trends, the company has strategically established three marine engineering bases along the coast in Dalian, Jiangsu, and Guangdong, and plans to add a new 200,000-ton/year marine engineering base in Dongying in 2022 to advance its "Two Seas Strategy" (offshore wind power and overseas wind power)[164] - The company plans to further expand the operational scale of its new energy power generation business, focusing on increasing the holding capacity of wind power farms to establish them as stable cash flow and significant profit sources[165] - To support wind farm construction and factory technological upgrades, the company launched a new private placement of shares in 2022, intending to raise a total of no more than CNY 2.07 billion[167] Corporate Governance This section details the company's corporate governance structure, information on its directors, supervisors, and senior management, and its profit distribution policies Basic Status of Corporate Governance During the reporting period, the company strictly adhered to the "Company Law," "Securities Law," and other relevant laws and regulations, continuously improving its corporate governance structure; the company maintained independence from its controlling shareholder in business, personnel, assets, organization, and finance, with standardized operations of its three key bodies and true, accurate, and complete information disclosure, ensuring its actual governance status complies with regulatory requirements Information on Directors, Supervisors, and Senior Management During the reporting period, the company completed the re-election of its Board of Directors and Board of Supervisors in January 2021, with Mr. Ouhuisheng from controlling shareholder Zhuhai Port Group elected as the new Chairman; this section details the appointments, professional backgrounds, work experience, and remuneration of all directors, supervisors, and senior management, with the total pre-tax remuneration paid to them in 2021 amounting to CNY 7.0529 million - In January 2021, the company completed its board re-election, with Mr. Ouhuisheng (Chairman of Zhuhai Port Group) elected as the Chairman of the company's Fourth Board of Directors, and several other directors and supervisors also changed accordingly[215] Remuneration of Directors, Supervisors, and Senior Management | Name | Position | Total Pre-tax Remuneration from Company (CNY 10,000) | Receives Remuneration from Company's Related Parties | | :--- | :--- | :--- | :--- | | Ouhuisheng | Chairman | 0 | Yes | | Zheng Xu | Vice Chairman, General Manager | 80.55 | No | | Zhang Xinghong | Director, Deputy General Manager | 156.9 | No | | Gu Longjiang | CFO | 60.43 | No | | Fang Ruizheng | Deputy General Manager, Board Secretary | 60.43 | No | | Total | -- | 705.29 | -- | Profit Distribution and Capital Reserve to Share Capital Conversion The company's 2021 profit distribution plan proposes a cash dividend of CNY 1.50 (tax inclusive) per 10 shares to all shareholders, with no bonus shares or capital reserve to share capital conversion; based on a total share capital of 807 million shares, the total cash dividend amounts to CNY 121 million, representing 30.63% of the current period's net profit attributable to shareholders, and this plan complies with the company's articles of association and shareholder return plan Profit Distribution Plan | Item | Amount/Ratio | | :--- | :--- | | Dividend Per 10 Shares (CNY) (Tax Inclusive) | 1.50 | | Cash Dividend Amount (CNY) (Tax Inclusive) | 121,094,175.45 | | Distributable Profit (CNY) | 395,404,335.86 | | Total Cash Dividend as % of Total Profit Distribution | 100.00% | Environmental and Social Responsibility This section addresses the company's significant environmental issues and its active engagement in social responsibility and poverty alleviation initiatives Significant Environmental Issues The company and its subsidiary Qingdao Tianneng Heavy Industry are designated as key pollutant-discharging entities, with primary pollutants being particulate matter and VOCs from sandblasting and painting processes; the company has invested in and built exhaust gas treatment equipment and formulated emergency plans for environmental incidents, incurring no administrative penalties for environmental issues during the reporting period - The company is listed as a key pollutant-discharging entity, with primary pollutants being particulate matter, xylene, and VOCs, discharged through organized emissions; the company has invested CNY 4.5 million to build exhaust gas treatment equipment utilizing zeolite rotor + catalytic combustion technology, ensuring emissions meet standards[292][293] Social Responsibility and Poverty Alleviation The company actively fulfills its social responsibilities by continuously carrying out targeted poverty alleviation through its photovoltaic power station projects in Qinghai; in 2021, the company paid a total of CNY 5.004 million in poverty alleviation funds to 1,668 registered impoverished households in Gonghe County, Xinghai County, and Guinan County, Qinghai, contributing to local poverty eradication through an industrial poverty alleviation model - The company integrates industrial poverty alleviation with its development through its photovoltaic power station projects in Qinghai, continuously carrying out targeted poverty alleviation efforts[302][305] Poverty Alleviation Efforts | Indicator | Quantity/Status | | :--- | :--- | | Funds Invested | CNY 5.004 million | | Number of Registered Impoverished Individuals Helped to Escape Poverty | 1,668 individuals | | Type of Poverty Alleviation Project | Asset-based income generation | | Number of Poverty Alleviation Projects | 3 projects | Significant Matters This section details the fulfillment of the company's commitments, significant related party transactions, and the status of major contracts Fulfillment of Commitments During the reporting period, the company and relevant parties duly fulfilled all commitments; controlling shareholder Zhuhai Port Group pledged a 18-month lock-up period for its shares starting August 2, 2021, and committed to resolving horizontal competition issues with the listed company in wind farm operations within 5 years; former shareholders Zheng Xu and Zhang Shiqi have completed their share reduction commitments - Controlling shareholder Zhuhai Port Group committed not to transfer its shares in the company for 18 months from the completion date of share transfer registration (August 2, 2021)[316] - Regarding the overlapping wind farm operation business, controlling shareholder Zhuhai Port Group committed to resolving horizontal competition issues within 5 years from becoming the controlling shareholder, through asset injection or other legal means[203][319] Significant Related Party Transactions During the reporting period, the company engaged in several significant related party transactions; notably, purchase and sales transactions with Shanghai Fengling New Energy Co., Ltd., controlled by a relative of a shareholder holding over 5%, totaled CNY 181 million; additionally, the company's subsidiary conducted finance lease business totaling CNY 255 million with Zhuhai Ganghui Financial Leasing Co., Ltd., a subsidiary of the controlling shareholder; the company also privately placed CNY 1.001 billion in shares to controlling shareholder Zhuhai Port Group Related Party Transactions with Shanghai Fengling New Energy | Related Party | Related Transaction Content | Transaction Amount (CNY 10,000) | | :--- | :--- | :--- | | Shanghai Fengling New Energy Co., Ltd. | Related Sales (Tower tubes, etc.) | 6,582.86 | | Shanghai Fengling New Energy Co., Ltd. | Related Purchases (Concrete tower tubes) | 11,539.50 | | Total | -- | 18,122.36 | - The company's subsidiary engaged in sale-and-leaseback finance lease transactions totaling CNY 255 million with Zhuhai Ganghui Financial Leasing Co., Ltd., a subsidiary of the controlling shareholder[364] - The company conducted a private placement to controlling shareholder Zhuhai Port Group, raising CNY 1.001 billion[364] Significant Contracts and Their Fulfillment This section primarily discloses the company's significant guarantee status; during the reporting period, all company guarantees were for subsidiaries, with no illegal external guarantees; as of the end of the period, the total approved guarantee limit for subsidiaries was CNY 3.948 billion, with an actual guarantee balance of CNY 1.953 billion, accounting for 51.79% of the company's net assets - As of the end of the reporting period, the company's total actual guarantee balance for its subsidiaries was CNY 1.953 billion, representing 51.79% of the company's net assets[371][378] Share Changes and Shareholder Information This section details changes in the company's share capital and provides information on its shareholders and actual controller Share Changes During the reporting period, the company's total share capital significantly increased from 396 million shares to 797 million shares; the main reasons for the increase include: implementation of a "10-for-7" capital reserve to share capital conversion plan (increasing 280 million shares), private placement of new shares to the controlling shareholder (increasing 111 million shares), and stock option exercise and convertible bond conversion (totaling an increase of 10 million shares) - The company's total share capital increased from 396,314,905 shares to 797,386,255 shares, primarily due to: - Implementation of the 2020 profit distribution, converting capital reserves to increase 279,977,836 shares at 7 shares for every 10 shares held - Issuance of 111,356,603 new shares to specific investors (controlling shareholder) - Exercise of stock options and conversion of convertible bonds, totaling an increase of 9,736,911 shares[390][875] Shareholders and Actual Controller Information As of the end of 2021, the company had 37,520 shareholders; the controlling shareholder is Zhuhai Port Holdings Group Co., Ltd., with a 29.01% stake, and the actual controller is Zhuhai Municipal People's Government State-owned Assets Supervision and Administration Commission; the top three shareholders are Zhuhai Port Holdings Group (29.01%), Zheng Xu (13.76%), and Zhang Shiqi (7.18%) Top Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares Held at End of Reporting Period | | :--- | :--- | :--- | :--- | | Zhuhai Port Holdings Group Co., Ltd. | State-owned Legal Person | 29.01% | 231,316,952 | | Zheng Xu | Domestic Natural Person | 13.76% | 109,729,687 | | Zhang Shiqi | Domestic Natural Person | 7.18% | 57,253,872 | | Industrial Bank - Southern Xingrun Value One-Year Holding Period Mixed Fund | Other | 3.15% | 25,123,264 | - The company's controlling shareholder is Zhuhai Port Holdings Group Co., Ltd., and its actual controller is the Zhuhai Municipal People's Government State-owned Assets Supervision and Administration Commission[423][427] Preferred Shares Related Information This section clarifies the company's status regarding preferred shares Explanation of Preferred Shares During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[433] Bonds Related Information This section provides details on the company's convertible corporate bonds Convertible Corporate Bonds The company's "Tianneng Convertible Bonds" entered their conversion period during the reporting period; due to stock price fluctuations, equity distributions, and private placements, the conversion price underwent multiple adjustments, from an initial CNY 20.05/share down to CNY 7.91/share by year-end; as of the end of the period, a cumulative CNY 5.6827 million in bonds had been converted into 726,200 company shares, with CNY 694 million in bonds remaining unconverted - The conversion price of "Tianneng Convertible Bonds" underwent multiple adjustments during the reporting period, from an initial CNY 20.05/share, it was subsequently adjusted downwards due to equity distributions and private placements, finally settling at CNY 7.91/share[440] Convertible Bond Status | Convertible Bond Abbreviation | Total Issuance Amount (CNY) | Cumulative Conversion Amount (CNY) | Cumulative Converted Shares (shares) | Unconverted Amount (CNY) | % of Unconverted Amount to Total Issuance Amount | | :--- | :--- | :--- | :--- | :--- | :--- | | Tianneng Convertible Bonds | 700,000,000.00 | 5,682,700.00 | 726,188 | 694,317,300.00 | 99.18% | Financial Report This section presents the company's audited financial report, including the audit opinion and detailed financial statements Audit Report Woxin Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2021 financial statements, concluding that the financial statements fairly present the company's financial position and operating results in all material respects; key audit matters included "revenue recognition" and "allowance for doubtful accounts," for which auditors obtained sufficient and appropriate audit evidence through procedures such as internal control testing, detailed testing, and confirmations - The auditing firm issued a standard unqualified audit opinion, concluding that the financial statements fairly present the company's financial position, operating results, and cash flows[458][459] - Key audit matters were "revenue recognition" and "allowance for doubtful accounts"; for revenue recognition, auditors performed internal control tests, contract reviews, detailed tests, and confirmation procedures; for allowance for doubtful accounts, auditors assessed the reasonableness of the bad debt policy and evaluated the adequacy of the allowance through confirmations and post-period collection checks[461][465] Financial Statements This section includes the company's audited consolidated and parent company financial statements for 2021, comprising the balance sheet, income statement, cash flow statement, statement of changes in owners' equity, and detailed notes to the financial statements, which serve as the basis for analyzing the company's financial position and operating results Consolidated Balance Sheet This sub-section presents the company's consolidated financial position at the end of the reporting period Consolidated Income Statement This sub-section details the company's consolidated financial performance over the reporting period Consolidated Cash Flow Statement This sub-section outlines the company's consolidated cash inflows and outflows from operating, investing, and financing activities Consolidated Statement of Changes in Owners' Equity This sub-section illustrates the changes in the company's consolidated owners' equity during the reporting period Notes to Financial Statements This sub-section provides detailed explanations and breakdowns for the figures presented in the financial statements