On February 12, Ningbo Joyson Electronic Corp(600699) issued a reply announcement to the inquiry letter on matters related to the 2021 annual performance forecast, and the company comprehensively explained the operating losses in 2021. According to the previous performance forecast, the company expects to realize the net profit attributable to the shareholders of the listed company in 2021 from -3.18 billion yuan to -3.78 billion yuan, of which the provision for impairment of goodwill has an impact on the net profit attributable to the shareholders of the listed company of 2 billion yuan to 2.5 billion yuan.
As for the main reason for the operating loss in the whole year and the fourth quarter of 2021, Ningbo Joyson Electronic Corp(600699) said that due to the impact of the epidemic and the global chip shortage, the operating revenue of the company's automobile safety business decreased to a certain extent. It is expected that the annual revenue will be 45.6 billion yuan, about 2.3 billion yuan less than that in 2020 and about 16.1 billion yuan less than that in 2019 before the epidemic, greatly reducing the company's gross profit; 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 have gradually increased since the second quarter, especially since the third quarter. The raw material cost of the company's automobile safety business accounts for about 70% of the operating cost, resulting in a decrease of about 560 million yuan in the company's gross profit compared with 2020, In particular, the raw materials carried forward into operating costs in the fourth quarter were mainly purchased in the third quarter, and the purchase price was relatively high, resulting in a decrease in gross profit of about 310 million yuan in the fourth quarter; Affected by the structural imbalance of global transportation capacity and other objective factors, the relevant transportation costs rose sharply year-on-year in 2021, resulting in a decrease of about 390 million yuan in the company's gross profit compared with 2020; Under the influence of covid-19 mutant strain and supply chain fluctuation, the company lost about 600 million yuan due to the shutdown of some factories in Romania and Hungary in Europe, Mexico and Brazil in North America, India and Malaysia in Asia Pacific and the unscheduled temporary production scheduling adjustment of customers, and about 460 million yuan in the fourth quarter.
In addition, the company also made a detailed description of the goodwill impairment. The company said that it updated the profit forecast of the company's automobile safety business in the next five years and communicated with a third-party professional organization on the goodwill impairment test of the company's automobile safety business in 2021, taking full account of the adverse effects of the lower expected growth of downstream industries, the weak economy of some countries and the decline of the company's operating income affected by the scale effect, Some supporting data were obtained. After preliminary calculation, the company believes that the historical acquisition of KSS holdings, Inc. The formed long-term asset group with goodwill shows signs of impairment at the end of 2021.
In view of the decline in performance, the company actively took various measures to slow down and reduce the impact of external factors, and improved its performance by focusing on stabilizing supply, controlling expenditure, improving efficiency and transferring costs. First of all, the company strengthened communication with customers, improved the matching degree between production and inventory management and orders, and realized the balance between production and sales on the premise of fully coordinating production capacity. By the end of 2021, the rising trend of global inventory has been effectively curbed; Secondly, the company strengthens supplier management, improves the toughness of supply chain management, gives full play to the advantages of automotive electronics business entities in the electronic field and automotive safety business entities in metal parts, and cooperates with procurement to control procurement costs and reduce supply chain interruption and other related risks; Thirdly, the company improves internal management efficiency in production, logistics and procurement, optimizes systems and processes, strictly controls costs and expenses, and optimizes the capital expenditure structure. In 2021, the company's sales expenses, management expenses and other four expenses decreased by about 1.7 billion yuan, which effectively alleviated the pressure of cash flow; Finally, strengthen the optimization of personnel and management structure, promote global employee planning through restructuring and downsizing, continuous investment in automation and production line balance (management improvement), and actively transfer production from high-cost countries / regions to low-cost countries / regions.
It is worth noting that the introduction of strategic investors by the company's automobile safety division has been carried out smoothly. The second phase of strategic investor advanced manufacturing fund, Hefei Jianheng new energy and Feixi industrial investment have completed the capital contribution, with a total capital increase of 2.5 billion yuan. With the completion of the introduction of war investment, the company will have more abundant financial support, cultivate and mass produce a new generation of non-traditional safety constraint solutions and related products, promote the global resource integration of automobile safety business, optimize asset allocation, help improve the company's automobile safety business, especially the industrial chain layout in Hefei, and grasp the development opportunities of new energy and intelligent driving vehicles, Further improve the market share of the company's automobile safety business and promote the long-term sustainable development of the company's automobile safety business.
