LONGLI(SZ:300752)2022-04-26 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15%[16]. - The net profit attributable to shareholders was RMB 150 million, an increase of 20% compared to the previous year[16]. - The company's operating revenue for 2021 was ¥1,975,929,423.72, a decrease of 1.81% compared to ¥2,012,343,285.76 in 2020[21]. - The net profit attributable to shareholders was -¥106,944,910.01 in 2021, representing a decline of 346.10% from a profit of ¥43,456,139.63 in 2020[21]. - The net profit after deducting non-recurring gains and losses was -¥123,359,493.56, a decrease of 1,090.16% compared to ¥12,458,504.38 in 2020[21]. - The company reported a basic earnings per share of -¥0.540 in 2021, down 334.78% from ¥0.230 in 2020[21]. - The weighted average return on net assets was -11.95% in 2021, a decrease of 17.20% from 5.25% in 2020[21]. - The company reported a net loss of 4,010.10 million CNY for the year 2021 due to being in a ramp-up phase, indicating ongoing challenges in achieving profitability[114]. - The company reported a significant decrease in net cash flow from financing activities, down 87.18% due to the previous year's issuance of convertible bonds[89]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[16]. - The company aims for a revenue growth target of 20% for 2022, driven by new product launches and market expansion strategies[16]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[16]. - The company plans to expand its market presence through new product development and technology advancements in the LED display sector[106]. - The company is focusing on expanding its product offerings in the virtual reality sector and exploring applications of Mini-LED technology in the automotive industry[141]. Research and Development - The company has allocated RMB 100 million for research and development in 2022, focusing on OLED technology advancements[16]. - The company has a strong R&D team that supports product innovation and application expansion, enhancing its competitive edge[48]. - The company has established a comprehensive design and integration approach for next-generation display technologies, including Mini-LED and Micro-LED solutions[34]. - The company is focusing on the development of Mini-LED technology, which is gaining traction in various applications, including TVs and laptops, due to its cost advantages[123]. - The company plans to increase R&D investment in Mini-LED and Micro-LED technologies, focusing on enhancing product resolution and expanding application fields[126]. Product Development and Technology - New product development includes the launch of a Mini-LED display technology, expected to contribute an additional RMB 200 million in revenue in 2022[16]. - The Mini-LED backlight technology is gaining traction, with major companies like Apple and Samsung investing in its commercialization, indicating a promising market outlook[32]. - The company has made breakthroughs in Mini-LED technology for applications in automotive displays, tablets, laptops, monitors, and TVs, and has achieved mass production capabilities[34]. - The company’s Mini-LED display modules offer advantages in contrast, HDR display effects, power consumption, cost, and lifespan compared to traditional LED modules[36]. - The company is actively expanding into the smart wearable market, with expectations of significant growth in VR/AR spending, projected to reach $72.8 billion globally by 2024[58]. Financial Management and Governance - The company has established a comprehensive internal management and control system to improve governance and operational efficiency[146]. - The company has a clear governance structure with a board of 7 members, including 3 independent directors, ensuring compliance with legal requirements[149]. - The company has implemented strict employee management systems, ensuring all personnel are independently employed and compensated[155]. - The company has established a complete and independent financial accounting system, ensuring no shared bank accounts with shareholders or related parties[156]. - The company is committed to maintaining accurate and complete information disclosure, aligning with regulatory requirements[146]. Risks and Challenges - Risks identified include a 10% potential decline in product prices due to increased market competition[5]. - The company is facing increased competition in the LED backlight industry due to the rise of OLED technology and the impact of the COVID-19 pandemic[32]. - The company faces risks from intensified market competition and potential price declines in its main products due to external pressures[132][133]. - The reliance on imported raw materials poses a risk, particularly for high-end film materials and light guide plate plastics[137]. - The company is facing significant downward pressure on global economic growth due to the ongoing COVID-19 pandemic, which may adversely affect its operations and customer base[139]. Employee and Management Structure - The total number of employees at the end of the reporting period was 2,650, with 1,706 in the parent company and 944 in major subsidiaries[188]. - The company has a workforce composed of 2,046 production staff, 34 sales personnel, 410 technical staff, 23 financial staff, and 137 administrative staff[188]. - The company has expanded its management team with experienced professionals from various sectors[170]. - The company has a clear succession plan in place for its key management positions[168]. - The company has implemented a training program to enhance employee skills and knowledge, aligning with its annual goals and performance improvement[191]. Shareholder Relations and Dividends - The company decided not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the year 2021 due to negative net profit[196]. - The company emphasized the importance of cash dividends for investor returns and plans to adhere to relevant laws and regulations in future distributions[197]. - The total distributable profit for shareholders was CNY 183,475,237.7 for the consolidated financial statements and CNY 274,732,979.64 for the parent company[195]. - The company remains committed to fulfilling its profit distribution obligations while balancing development and investor returns[198].