Funeng Technology is about to release its 2021 annual report. According to the performance report released on February 27, the net profit loss attributable to the company was 974.2 million yuan, a year-on-year decrease of 194.32%.
Explanation of operating results and financial conditions in the performance bulletin announcement:
1. Operating conditions
The company’s operating income for the year was 3,403,410,138.44 yuan, an increase of 203.97% over the same period of the previous year, but the company’s losses further expanded. In 2021, the company’s net profit attributable to owners of the parent company is -974,211,363.83 yuan, and the net profit attributable to owners of the parent company after deducting non-recurring gains and losses is -1,284,709,494.81 yuan.
The main factors affecting the changes in the company’s operating conditions during the reporting period are as follows:
(1) After the previous accumulation, the projects of many of the company’s customer OEMs entered the mass production stage this year. Among them, the company supplies power batteries for important customers Daimler EQS, EQA, EQB and other models. At the same time, GAC Group’s customers’ purchases from the company also increased significantly. Therefore, the company’s sales revenue in 2021 will increase by 203.97% compared with 2020.
(2) Affected by the long-term trend of the industry and sales strategy, the price of the company’s power battery products will drop in 2021. The reasons for the price drop are mainly brought by the following aspects:
① The technical iteration of the power battery industry, the advancement of manufacturing processes, and the decline of subsidies have combined to cause the average market price of power batteries to decline in the past few years.
②The company negotiated pricing with customers based on the market trend of raw materials from 2018 to 2020 in the early stage, and the sales price was lower. From 2018 to 2020, the market prices of major raw materials such as cathode materials and anode materials showed a downward trend. In the early stage, the company negotiated with customers to determine the sales price of products in 2021 based on the market trend of raw materials at that time, and the pricing was relatively low.
③ In order to maintain good customer relationship, the company cooperates deeply with more favorable prices. For new customers that the company focuses on developing or major customers with strategic significance, in order to promote the cooperation of customers, the company will provide certain price concessions. With the increasingly close cooperation between the company and customers, with good product performance advantages and enhanced customer stickiness, the company’s product prices have returned to normal. (3) In 2021, due to the new era of rapid development of the global new energy vehicle industry, the demand for raw materials for power batteries has increased, the raw material prices of the company’s main products have risen sharply, and the cost of materials has increased. Failed to increase in time with the rising trend of power battery material prices. At present, the price of most customer products has been adjusted.
(4) Fixed assets have increased, and the scale effect has not yet fully manifested. In 2021, the company’s Zhenjiang Phase I and Phase II factories have been converted into fixed assets and put into use. The investment in new production line equipment is large, which will bring a large increase in depreciation. Due to the ramping up of production capacity and other reasons, the production capacity has not been fully released, and the scale effect is temporary. not fully manifested.
(5) In 2021, due to factors such as the expansion of the company’s business scale and the increase in sales revenue, the expenses during the period will increase more. The company’s sales revenue increased significantly this year, mainly because the accrued quality assurance fund increased compared with 2020; in order to further cultivate and attract talents, the company implemented a restricted stock incentive plan in the second half of this year, and the expenses during the period were paid for by the new shares of the incentive plan; The construction of the company’s Zhenjiang Phase II and Phase III production bases has resulted in higher expenditures and a decrease in bank deposits, so interest income has decreased compared with 2020.
(6) In order to maintain the leading level of technology in the industry, the company has always attached importance to the research and development of products, technologies and processes, and continued to increase investment in research and development. In 2021, the company will invest more in research and development in the fields of solid-state batteries, thermal runaway management, and energy storage, which will lead to an increase in research and development costs.
(7) In 2021, during the ramp-up of the company’s production capacity, the provision for depreciation of inventories due to defective products, etc., will lead to an increase in asset impairment losses in the current period.
2. Financial status
At the end of the reporting period, the company’s total assets were 20,919,011,037.01 yuan, an increase of 35.68% over the beginning of the reporting period, mainly due to the increase in inventories and fixed assets. As of December 31, 2021, the company’s financial position is relatively stable, with an asset-liability ratio of 55.72%, which is at the industry average level.
Funeng Technology‘s main business: Funeng Technology is a provider of overall technical solutions for new energy vehicle power battery systems and a manufacturer of high-performance power battery systems. The company’s main products are cells, modules and battery packs for ternary soft pack power batteries, covering battery systems for pure electric vehicles, battery systems for hybrid electric vehicles and plug-in hybrid electric vehicles, and 48V micro-hybrid battery systems. The application field is mainly new energy passenger vehicles, and also covers new energy special vehicles, electric motorcycles, etc.
The stock has been rated by 4 institutions in the past 90 days, with 3 buy ratings and 1 overweight rating; the average institutional target price in the past 90 days is 59.5.
This article is compiled by Securities Star Data Center based on public research report data, and does not constitute investment opinions or suggestions. If you have any questions, please contact us.Return to Sohu, see more
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