Securities code: 600699 securities abbreviation: Ningbo Joyson Electronic Corp(600699) Announcement No.: pro 2022-004 Ningbo Joyson Electronic Corp(600699)
About Shanghai Stock Exchange in 2021
Reply and announcement of inquiry letter on matters related to performance forecast
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important note: Ningbo Joyson Electronic Corp(600699) (hereinafter referred to as "the company" or " Ningbo Joyson Electronic Corp(600699) ") the main reason for the estimated operating loss in the fourth quarter and the whole year of 2021 is that the company's operating revenue has decreased significantly compared with that before the epidemic, superimposed with the increase of operating cost per unit revenue, resulting in a significant decrease in gross profit. After analyzing and comparing the company's own business characteristics with the situation of the same industry, the large losses in the fourth quarter and the whole year of 2021 are in line with the characteristics and actual situation of the company's industry, and there is no case of using improper profit adjustment to damage the interests of investors. The company conducted impairment test on goodwill in accordance with the relevant provisions of the accounting standards for business enterprises, and no provision for impairment was made for goodwill in each period over the years. In 2021, due to the reduction of regional income forecast related to automobile safety business and the significant increase of pre tax discount rate, the provision for impairment of goodwill was 2 billion yuan to 2.5 billion yuan. The provision for impairment of goodwill in the above periods was sufficient and reasonable. The company believes that the early acquisition decision has been prudent, and the directors, supervisors and senior managers have earnestly fulfilled the obligation of diligence. In view of the decline in performance, the company is currently actively taking various cost reduction and efficiency enhancement management measures to slow down and reduce the impact of external factors on the company's operation and improve its future performance in terms of stabilizing supply, controlling expenditure, improving efficiency and transferring costs.
After the provision for goodwill impairment is made this time, the book value of the remaining goodwill is about 4.53 billion yuan to 5.03 billion yuan, mainly concentrated in China and the Asia Pacific region. The company will continue to conduct impairment test on goodwill in a timely manner in accordance with the relevant provisions of the accounting standards for business enterprises and fully consider the macro environment, industrial policies, actual operating conditions and future business planning, so as to ensure the authenticity and fairness of the company's financial statements.
On January 28, 2022, the company received the inquiry letter on matters related to Ningbo Joyson Electronic Corp(600699) performance forecast (szgh [2022] No. 0108) (hereinafter referred to as the "inquiry letter") from Shanghai Stock Exchange (hereinafter referred to as "Shanghai Stock Exchange"). After receiving the inquiry letter, the company actively organized relevant departments to implement the questions mentioned in the inquiry letter one by one. The replies to the questions related to the inquiry letter are as follows:
Question 1: the company disclosed in the third quarterly report of 2021 that the net profit attributable to the shareholders of the listed company was 18.0523 million yuan. The amount of advance loss disclosed this time, excluding the impact of asset impairment, still produced a large annual loss. The company is requested to make supplementary disclosure: (1) the specific reasons for the company's losses and the corresponding amount of losses; (2) Analyze the main factors causing the company's large loss in the fourth quarter, such as the situation of the contract industry and the company's business characteristics, and check whether there is any situation that improper profit adjustment is used to damage the interests of investors.
Company reply:
Question 1 (1) specific reasons for the company's loss and the corresponding loss amount.
Affected by the repeated global covid-19 epidemic, the rise of raw material prices and transportation costs and the fluctuation of vehicle specification chip supply chain, the company expects to achieve a net profit attributable to shareholders of listed companies (hereinafter referred to as "net profit attributable to parent") of - 3.18 billion yuan to - 3.78 billion yuan in 2021. After deducting the impact of the provision for impairment of goodwill of 2 billion yuan to 2.5 billion yuan on the net profit, the company expects an operating loss of - 1.18 billion yuan to - 1.28 billion yuan in 2021. The specific reasons and corresponding loss amount are as follows:
1. Due to the covid-19 epidemic and the global chip shortage, the operating revenue of the company's automobile safety business decreased to a certain extent, resulting in a decrease of about 2.3 billion yuan in the company's operating revenue in 2021 compared with 2020. During 2021, due to the shock of the global automobile supply chain system, the prices of main raw materials in the world of the company's automobile safety business gradually increased from the second quarter, In particular, the rising trend has intensified since the third quarter, resulting in a decrease of about 560 million yuan in the company's gross profit compared with 2020; At the same time, due to the continuous spread of the global epidemic in 2021, the structural imbalance of global transport capacity and other objective factors, the relevant transportation costs increased significantly year-on-year in 2021, resulting in a decrease in the company's gross profit of about 390 million yuan compared with 2020. In total, the above effects led to a decrease of about 950 million yuan in the company's gross profit compared with 2020. The company's gross operating expenses and management expenses decreased by about RMB 16.1 billion compared with those of the previous four years, although the company's gross operating expenses decreased by about RMB 4.0 billion, and the company's operating expenses and management expenses decreased by about RMB 16.1% compared with those of the previous four years, The total decrease is about 1.7 billion yuan, but it still can not offset the impact of the decline in gross profit on net profit, which is the main reason for the company's operating losses in 2021.
2. Affected by the repeated global covid-19 epidemic and the fluctuation of supply chain, the company shut down some factories in Romania and Hungary in Europe, Mexico and Brazil in North America, India and Malaysia in Asia Pacific and temporary production scheduling adjustment unplanned by customers, Fixed labor costs and related expenses (such as employee wages, depreciation of fixed assets and amortization of intangible assets) are still inevitable. Unlike the government forced shutdown in 2020, the company did not receive the forced shutdown order from the local government in 2021. The company recognized the shutdown loss in 2021 as a recurring loss in accordance with relevant accounting standards, As a result, the total net profit of the company in 2021 decreased by about 600 million yuan.
3. According to relevant accounting standards, the company made provision for impairment of goodwill of relevant asset groups of the automobile safety division, resulting in a decrease of 2 billion yuan to 2.5 billion yuan in the company's net profit in 2021.
To sum up, after excluding the impact of goodwill impairment, the company expects that the main reasons for the loss in 2021 are the sharp decline in operating income compared with that before the epidemic, the sharp rise in operating costs per unit income caused by the rise in upstream raw material prices and transportation costs, and the loss of shutdown of some regional bureaus and factories under the influence of the epidemic.
Question 1 (2) analyze the main factors causing the company's large loss in the fourth quarter, such as the situation of the contract settlement industry and the business characteristics of the company, and check whether there is any situation that the improper profit adjustment is used to damage the interests of investors. 1、 Overview of net profit attributable to parent company in the fourth quarter of 2021
The company expects the net profit attributable to the parent in the first three quarters of 2021 and the fourth quarter of 2021 and the net profit attributable to the parent after deducting the impairment of long-term assets (including goodwill) as shown in Table 1 below:
Unit: 100 million yuan
2021 2021
Total of projects (Unaudited) from the first quarter to the fourth quarter
Third quarter
Net profit attributable to parent company: 0.2 - 32 ~ - 38 - 31.8 ~ - 37.8
Effect of deducting goodwill impairment - 20 ~ 25
Total 0.2 - 12 ~ - 13 - 11.8 ~ - 12.8
Table 1 net profit attributable to parent company in the first three quarters and the fourth quarter of 2021 (Unaudited)
2、 The main reasons for the decline of performance in the fourth quarter of 2021 (I) in the second half of 2021, the global automobile supply chain system is still in a period of shock. As shown in the relevant report of IHS (Note 1) in Figure 1, the prices of propylene, aluminum, hot-rolled steel sheet and copper, the main raw materials upstream of the company's automobile safety business, have remained at an all-time high level since the third quarter of 2021.
According to the characteristics of industry production cycle, public 1 IHS (Aisin Huamai, NYSE Stock Code: info) is one of the most authoritative automobile industry consulting companies in the world. It provides services to more than 50000 government and enterprise customers in more than 140 countries around the world. Its professional service field of automobile industry covers all major automobile markets in the world and is a leading automobile manufacturer in the world, Suppliers provide whole industry chain consulting services from product planning, marketing to after-sales market. IHS prediction is an important basis for the formulation of future production plans by major car companies around the world.
The raw materials carried forward into operating costs by the company in the fourth quarter of 2021 are mainly purchased in the third quarter of 2021, and the purchase price is relatively high, while the raw material cost of the company's automobile safety business accounts for about 70% of the operating cost, resulting in an increase of about 310 million yuan in the operating cost of the company in the fourth quarter of 2021; On the other hand, when the price of raw materials rose, the company also actively negotiated with downstream customers about the price increase of products. As the price increase of the above products had not been agreed in the fourth quarter, the company's operating revenue did not increase synchronously, resulting in a decrease of about 310 million yuan in the fourth quarter.
Figure 1 price trend of propylene, aluminum, hot rolled steel sheet and copper
(II) in the fourth quarter of 2021, affected by the havoc of covid-19 mutant strain and the fluctuation of supply chain, some factories of the company were shut down in Romania and Hungary in Europe, Mexico and Brazil in North America, India and Malaysia in Asia Pacific and other countries, During the shutdown period, fixed labor costs and related expenses (such as employee wages, depreciation of fixed assets and amortization of intangible assets) are still inevitable, resulting in a decrease in the company's net profit of about 460 million yuan in the fourth quarter of 2021. (III) influenced by the completion of the syndicated loan of the main body of automobile safety business in the fourth quarter, the reduction of the syndicated loan in advance and the one-time inclusion of the unrecognized financing expenses into the current profit and loss and other exchange losses, the company's financial expenses in the fourth quarter (IV) are to further improve the core competitiveness and meet the demand for mass production and delivery of new projects, The amortization of new R & D expenses and R & D capitalization expenses of the company's automobile safety business in the fourth quarter reduced the net profit by about 100 million yuan. (V) in the fourth quarter of 2021, the new management expenses reduced the net profit by about 70 million yuan. Among them, the new restructuring cost of automobile safety business due to organizational structure adjustment and personnel streamlining is about 40 million; The main body of automobile safety business completed the refinancing of syndicated loans and the introduction of strategic investors in the fourth quarter, and confirmed that the total relevant intermediary expenses were about 30 million yuan. 3、 Analysis on the situation of the same industry in the fourth quarter
In recent years, the global automotive safety products market as a whole has shown a relatively stable supply pattern. According to the 2020 annual report of Autoliv, the top three global automotive safety parts suppliers Autoliv, Junsheng safety system and ZF Trina Solar account for about 80% of the overall global automotive safety market share, and Autoliv accounts for about 42%. Up to now, ZF Trina Solar has not disclosed its operating data in the second half of 2021. Therefore, olif is selected as the company in the same industry for analysis.
Affected by the recovery of sales volume of the downstream automobile industry since the fourth quarter of 2021, the operating revenue of Junsheng safety system and Autoliv, a comparable company in the same industry, showed an upward trend in the fourth quarter (as shown in the figure below).
First quarter to fourth quarter of 2021
Single quarter operating income
(unit: 100 million yuan)
two hundred
150.00 144.68 130.49 136.75
100.00 90.77 119.19
50.00 81.25 70.28 81.00
-
Q1 Q2 Q3 Q4
Autoliv win-win safety system
At the same time, due to the rise of upstream raw material prices and the increase of logistics costs, the gross profit margin of Autoliv in the fourth quarter decreased by 1.3 percentage points compared with the first three quarters; The gross profit margin of Junsheng security system in the fourth quarter decreased by 1.2 percentage points compared with that in the first three quarters. There is little difference in the change trend of the gross profit margin between the two in the fourth quarter of 2021, but there are great differences in the performance of net profit. The loss of Junsheng security system in the fourth quarter increased month on month, and the profit of Autoliv increased month on month, The main reasons are: (1) Junsheng safety system and Autoliv's automobile safety industry belong to the heavy asset industry, with a relatively high proportion of fixed costs. The scale of operating income directly affects the performance of gross profit margin. Since Junsheng safety system has a larger decline in income than before the epidemic, it has failed to play a scale effect since the epidemic, In 2021, the gross profit margin is only maintained at about 9%, which is quite different from the gross profit margin of about 18% in Autoliv; (2) Although the operating revenue of Junsheng security system increased month on month in the fourth quarter, with the impact of covid-19 epidemic and the rapid rise of raw material prices, the month on month growth rate of operating costs in the fourth quarter was higher than that of operating revenue. Superimposed on the growth of one-time expenses such as restructuring and financing, the company finally increased its month on month loss in the fourth quarter of 2021.
