公牛集團：公牛集團2021年年度報告（英文版）.PDF

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1、Annual Report 2021 1/251 Stock Code:603195 Stock Name:Gongniu Group 公牛集團股份有限公司公牛集團股份有限公司 GONGNIU GROUP CO.,LTD.Annual Report 2021 April 2022Annual Report 2021 2/251 Important Notes 1.The Board of Directors(or the“Board”),the Supervisory Committee as well as the directors,supervisors and senior manag

2、ement of Gongniu Group Co.,Ltd.(hereinafter referred to as the“Company”)hereby guarantee that the contents of this Report are true,accurate and complete and free of any misrepresentations,misleading statements or material omissions,and collectively and individually accept legal responsibility for su

3、ch contents.2.All the directors of the Company attended the board meeting for the review of this Report.3.Pan-China Certified Public Accountants LLP has issued an independent auditors report with unmodified unqualified opinion for the Company.4.Ruan Liping,the Companys legal representative,Zhang Lin

4、a,the Companys Chief Financial Officer,and Luo Yuebo,head of the Companys financial department(equivalent to financial manager)hereby guarantee that the financial statements carried in this Report are true,accurate and complete.5.Final dividend plan approved by the Board of Directors As audited by P

5、an-China Certified Public Accountants LLP,net profit attributable to shareholders of the Company as the parent stood at RMB2,780,360,732.66 for 2021,and the cumulative distributable profit of the Company as the parent was RMB3,726,954,923.09 as at 31 December 2021.The 2021 final dividend plan is as

6、follows:Based on the total share capital at the record date of the dividend payout,the Company intends to pay a cash dividend of RMB24(tax inclusive)per 10 shares to shareholders.According to the total share capital of 601,180,520 shares at the date when this Report was authorized for issue,the tota

7、l cash dividend payout is expected to be RMB1,442,833,248.00,accounting for 51.89%of the net profit attributable to the listed companys shareholders during 2021.Where any change occurs to the total share capital at the record date of the dividend payout due to a repurchase of restricted shares,etc.,

8、the cash dividend per share shall remain the same while the total payout amount shall be adjusted accordingly.The final dividend plan is subject to final approval by the general meeting of shareholders.6.Risk warning regarding forward-looking statements Applicable Not applicable Any plans,developmen

9、t strategies and other forward-looking statements mentioned in this Report shall not be considered as promises to investors.Investors and those concerned shall be sufficiently aware of the risks and understand the differences between plans and forecasts and promises.7.Indicate whether any of the con

10、trolling shareholder or its related parties occupied the Companys capital for non-operating purpose.N/A Annual Report 2021 3/251 8.Indicate whether the Company provided any guarantee for any external party in violation of the prescribed decision-making procedure.N/A 9.Indicate whether over half of t

11、he directors refused to guarantee the truthfulness,accuracy and completeness of this Report.N/A 10.Major risk warning The Company has described the possible risks in this Report.For further information,please refer to contents under the heading“Possible risks”under Item VI(IV)in“Part III Management

12、Discussion and Analysis”.11.Other information Applicable Not applicable Annual Report 2021 4/251 To Shareholders The year 2021 saw recurrent waves of the COVID-19 pandemic and a volatile business environment.Amid a complex external environment and numerous difficulties,we accepted the challenges,for

13、ged ahead and achieved steady growth in operating results.Thus,our operating revenue increased 23.22%year on year to RMB12.385 billion and the net profit attributable to our shareholders amounted to RMB2.78 billion,up 20.18%from the previous year.Stay true to original aspiration and show resilience

14、Amid the difficult market conditions of 2021,we remained true to our original aspiration,focused on improvements in products and services,and devoted ourselves to the attainment of higher performance in all aspects of our operation.We demonstrated our resilience through various achievements,includin

15、g the steady development in various businesses,the further enhancement of product market share,brand recognition and reputation while further consolidating our industry leadership with adaptors and wall switches,the rapid growth of LED lighting,domestic electrical appliances and low-voltage electric

16、als.Consequently,we laid the foundation for our long-term sustainable development.Innovation and growth fueled by ecosystem synergy We strengthened the ecosystem synergy of products and channels by centering on the two segments in 2021,namely the smart home ecosystem and new energy.With home lightin

17、g as the core,we further expanded our offering of LED lighting products and developed smart solutions that integrate healthy lighting,professional lighting effect and smart control,doing so in an effort to bring consumers a healthier,smarter and more comfortable lighting experience.A string of house

18、hold products was launched for household electricity consumption scenarios.Moreover,to provide a broader range of high-quality products and services,we extended our service scope from inside the house to the courtyard and aimed at the smart security segment.We increased our market presence in electr

19、ic connection for new energy and developed multiple related products such as charging plugs and charging points.Given the trend of consumption upgrading and one-stop shopping among young people,we constantly evolved the channel system by embracing change and proactive innovation.With reliance on the

20、 Companys edges in powerful channel management and Annual Report 2021 5/251 multicategory integration,we upgraded our physical stores and established a network of exclusive centers and stores for multicategory integrated sales covering wall switches,LED,bathroom heaters,low-voltage electrical produc

21、ts and smart clothes drying racks.As a result,strong sales performance was attained.In response to the trend among industry channels to pursue the business side and the emergence of invisible channels,the Company put much effort in top corporate customers and has currently established a solid partne

22、rship with many top real estate and home decoration enterprises.In addition,the Company embraces new trends as it explores new paths and platforms for online e-commerce channels and overseas online channels.Driven by technological innovation and empowered by digital and intelligent transformation Ov

23、er the past year,we have persisted with a“professional and dedicated”attitude and increased R&D investments to enhance our hard power.Specifically,R&D and operation headquarters were established in Shenzhen and Shanghai to carry out hardware and software R&D,industrial design and IoT platform constr

24、uction,through which the Company won many international and domestic design awards during the year,including five iF Design Awards,and the Design Intelligence Award.Meanwhile,we were granted 470 patents.We employed our R&D achievements as the means to propel business reform.We actively embraced digi

25、tal transformation to empower the production and sales system.With the support of the information technology,we have enhanced the fine management capabilities of channels and sales with higher efficiency.Substantial improvements in operating capacity have been achieved through the promotion of a lea

26、n,automatic,digital and smart supply-chain system.BBS was constantly deepened and capability was cultivated to go further We also applied the Bull Business System(BBS)to a larger part of the Group during 2021.Through the introduction of a series of lean management tools,our lean management capabilit

27、ies in innovative growth,cost reduction and efficiency improvement and risk control have been improved with excellent results,providing a strong guarantee for the Group to go further”.Systematic strengthening of ESG efforts In 2021,we strengthened our ESG efforts to promote social welfare by investi

28、ng more than RMB32 million in public-welfare programs with respect to culture and education,health and hygiene,helping the poor and those in need.When Hong Kong was hit by the Annual Report 2021 6/251 pandemic,we promptly organized a task group to offer our help,donated more than 20,000 pieces of pr

29、oducts in various categories and supported the construction of Hong Kongs makeshift hospitals and efforts to fight the pandemic.Meanwhile,we continued to optimize the corporate governance structure,promoted the implementation of measures related to“carbon neutrality and carbon emission peak”and ensu

30、red the deeper implementation of the ESG strategy.This year,we have disclosed our first ESG report.We have accumulated experience in product,marketing,supply chain and branding through 27 years of development.And we will continue to build comprehensive competitive edges in pursuit of sustainable gro

31、wth,and repay shareholders with better results.As always,we will take vigorous actions and forge ahead towards the goal of“Becoming a Leader in the International Civil Electric Industry”.The Board of Directors of Gongniu Group Co.,Ltd 11 April 2022 Annual Report 2021 7/251 Contents Part I Definition

32、s.8 Part II General Information of the Company and Key Financial Indicators.10 Part III Management Discussion and Analysis.15 Part IV Corporate Governance.45 Part V Environmental and Social Responsibility.71 Part VI Significant Events.76 Part VII Changes in Ordinary Shares and Information about Shar

33、eholders.98 Part VIII Relevant Information of Preference Shares.110 Part IX Relevant Information of Corporate Bonds.111 Part X Financial Statements.111 Documents available for reference The financial statements for the year ended 31 December 2021 signed and stamped by the legal representative,the Ch

34、ief Financial Officer,and the head of the financial department The Independent Auditors Report for the year ended 31 December 2021 stamped by the CPA firm,as well as signed and stamped by the relevant certified public accountants The originals of all the Companys documents and announcements disclose

35、d on newspapers and websites designated by CSRC during the Reporting Period Annual Report 2021 8/251 Part I Definitions I Definitions The expressions in the left column in the table below refer to the contents in the right column unless otherwise specified.Definitions of frequently used terms The“Co

36、mpany”,“Gongniu”,or“we”refers to Gongniu Group Co.,Ltd.Reporting Period refers to The period from 1 January 2021 to 31 December 2021 Liangji Industrial refers to Ningbo Liangji Industrial Co.,Ltd.,the Companys controlling shareholder Xiaozhou Investment refers to Shenzhen Xiaozhou Investment Co.,Ltd

37、.,the Companys shareholder Hillhouse Daoying refers to Zhuhai Hillhouse Daoying Investment Partnership(Limited Partnership),the Companys shareholder Ninghui Investment refers to Ningbo Ninghui Investment Management Partnership(Limited Partnership),the Companys shareholder Suiyuan Investment refers t

38、o Ningbo Suiyuan Investment Management Partnership(Limited Partnership),the Companys shareholder Bowei Investment refers to Anji Bowei Enterprise Management Partnership(Limited Partnership),the Companys shareholder Qiyuanbao refers to Ningbo Qiyuanbao Investment Management Partnership(Limited Partne

39、rship),the Companys shareholder Cixi Gongniu refers to Cixi Gongniu Electrics Co.,Ltd.Shanghai Gongniu refers to Shanghai Gongniu Electrics Co.,Ltd.Ningbo Gongniu refers to Ningbo Gongniu Electrics Co.,Ltd.Banmen Electric Appliance refers to Ningbo Banmen Electric Appliance Co.,Ltd.Gongniu Photoelec

40、tric refers to Ningbo Gongniu Photoelectric Technology Co.,Ltd.Gongniu Precision refers to Ningbo Gongniu Precision Manufacturing Co.,Ltd.Gongniu Digital refers to Ningbo Gongniu Digital Technology Co.,Ltd.Bull International Trading refers to Ningbo Bull International Trading Co.,Ltd.Xingluo Trading

41、 refers to Ningbo Xingluo Trading Co.,Ltd.Electric Sales refers to Ningbo Gongniu Electric Sales Co.,Ltd.Bull HK refers to Bull International Trading(HK)Limited Gongniu Low Voltage refers to Ningbo Gongniu Low Voltage Electric Co.,Ltd.Baidi Electrics refers to Shanghai Baidi Electrics Co.,Ltd.Hangni

42、u Hardware refers to Hangzhou Hangniu Hardware and Electrical Co.,Ltd.Liangniu Hardware refers to Hangzhou Liangniu Hardware and Electrical Co.,Ltd.Feiniu Hardware refers to Hangzhou Feiniu Hardware and Electrical Co.,Ltd.Niuweiwang Trading refers to Suzhou Niuweiwang Trading Co.,Ltd.Cixi Libo refer

43、s to Cixi Libo Electric Co.,Ltd.Yaoyang Trading refers to Yichang Yaoyang Trading Co.,Ltd.Huantian Trading refers to Hubei Huantian Technology Co.,Ltd.Jianke Trading refers to Changde Jianke Trading Co.,Ltd.Chenhao Electronic refers to Beijing Chenhao Electronic Technology Co.,Ltd.Dalitek refers to

44、Dalitek Intelligent Technology(Shanghai)Inc.Hainan Dacheng refers to Hainan Dacheng Supply Chain Management Co.,Ltd.Domestic Electrical Appliance refers to Ningbo Gongniu Domestic Electrical Appliance Co.,Ltd.The“Articles of Association”refers to The Articles of Association of Gongniu Group Co.,Ltd.

45、The“Company Law”refers to The Company Law of the Peoples Republic of China The“Securities Law”refers to The Securities Law of the Peoples Republic of China A-stock refers to RMB-denominated ordinary stock Annual Report 2021 9/251 CSRC refers to China Securities Regulatory Commission The Ministry of

46、Finance refers to The Ministry of Finance of the Peoples Republic of China STA refers to The State Taxation Administration of the Peoples Republic of China Sinolink Securities refers to Sinolink Securities Co.,Ltd.PCCPA or the“Independent Auditor”refers to Pan-China Certified Public Accountants LLP

47、RMB RMB000 RMB0,000 RMB00,000,000 refers to Expressed in the Chinese currency of Renminbi Expressed in thousands of Renminbi Expressed in tens of thousands of Renminbi Expressed in hundreds of millions of Renminbi II Terminology Civil electrical appliances refers to Products that are typically purch

48、ased at the discretion of consumers and are suitable for use at home,in the office and on other occasions for power connection,transmission,storage,conversion,control and other functions,such as adaptors,wall switches and sockets,circuit breakers,distribution boxes,LED lamps,etc.Adaptors refers to P

49、roducts that are produced in accordance with GB/T 2099.3-2015 Plugs and Socket-outlets for Household and Similar Purposes-Parts 2-5:Particular Requirements for Adaptors,GB/T 2099.7-2015 Plugs and Socket-outlets for Household and Similar Purposes-Parts 2-7:Particular Requirements for Extension-cord S

50、ockets and GB/T 2099.1-2008 Plugs and Socket-outlets for Household and Similar Purposes-Part 1:General Requirements,as well as similar foreign standards,and are commonly referred to as adaptors in the Company.Consumers or peer companies often call adaptors socket-outlets,power strips,portable socket

51、s,extension-cord sockets,or power converters.PDU refers to Power Distribution Unit.PDU is an electric connection product suitable for power distribution at the data center end that can make power distribution more orderly,reliable,safe,professional and beautiful and make power supply maintenance mor

52、e convenient and reliable.Wall switches and sockets refers to Wall switches and wall sockets.Specifically,a wall switch refers to a device mounted on the wall for switching on/off the current of one or more circuits and is commonly used to control the on/off status of lighting lamps.A wall socket,al

53、so known as a fixed socket,is an electrical accessory mounted on the wall,with a socket inserted with a pin of a plug and installed with terminals for connecting soft cables and hard wires,and is often used to provide a power supply interface for electrical products.Smart ecosystem refers to A novel

54、,intelligent household appliance network that builds an interconnected smart home ecosystem.LED lighting refers to Light sources that are produced using light-emitting diodes(such as LED bulb lamps),or luminaries that are produced using LED as a light source.No-main-lamp lighting refers to A lightin

55、g design style and lighting without the main light source,that is,a lighting design technique through which downlights,spotlights,light belts,track lights and other luminaries are used to create a light(light and shadow)atmosphere in a point-line-surface combination manner.Charging plugs refers to P

56、ortable chargers that are suitable for AC charging of new energy vehicles and special protectors used to connect household sockets and electric vehicles,with such functions as over-voltage and under-voltage protection,over-current protection and leakage protection.Charging points refers to Fixed cha

57、rging devices for AC charging of new energy vehicles that often require special wiring and installation in garages and special parking spaces,with such functions as over-voltage and under-voltage protection,over-current protection,leakage protection,insulation detection,Annual Report 2021 10/251 ele

58、ctricity billing,timed charging and reserved charging.Digital accessories refers to Accessories that are used directly or indirectly in the use of digital products,such as USB cables,chargers and portable chargers.Circuit breakers refers to A mechanical switching device that can connect,carry and di

59、sconnect the current both under normal circuit conditions and under specified abnormal circuit conditions.They are also known as automatic switches and are widely used in households,factories and other distribution circuits.Embedded products refers to Products that are embedded in objects such as fu

60、rniture and used to provide solutions for power supply,electricity consumption,lighting and signal transmission.Distribution,delivery,visit and sales refers to A sales model in which specialized vehicles are used to provide retail stores with goods distribution,goods delivery,visit services and door

61、-to-door sales on a regular basis along a fixed planned route.BBS refers to Bull Business System Part II General Information of the Company and Key Financial Indicators I Corporate Information Company name in Chinese 公牛集團股份有限公司 Abbr.公牛集團 Company name in English GONGNIU GROUP CO.,LTD.Abbr.GONGNIU Leg

62、al representative Ruan Liping II Contact Information Board Secretary Securities Representative Name Liu Shengsong Jin Xiaoxue Address Tower 20,Baoshi Plaza,487 Tianlin Road,Xuhui District,Shanghai Tower 20,Baoshi Plaza,487 Tianlin Road,Xuhui District,Shanghai Tel.021-33561091 021-33561091 Fax 021-33

63、561091 021-33561091 E-mail address III General Company Information Registered address East Zone of Guanhaiwei Town Industrial Park,Cixi City,Zhejiang Province Changes of registered address N/A Office address Tower 20,Baoshi Plaza,487 Tianlin Road,Xuhui District,Shanghai Zip code 201103 Company websi

64、te http:/ Email address IV Media for Information Disclosure and Place where this Report Is Lodged Media and websites where this Report is disclosed China Securities Journal,Shanghai Securities News,Securities Daily,and Securities Times Stock exchange website where this Report is disclosed http:/ Pla

65、ce where this Report is lodged The Securities Department of the Company Annual Report 2021 11/251 V Stock Profile Stock profile Class of stock Stock exchange Stock name Stock code Formerly used stock name A-stock Shanghai Stock exchange Gongniu Group 603195/VI Other Information Domestic CPA firm app

66、ointed by the Company Name Pan-China Certified Public Accountants LLP Office address Block B,China Resources Building,1366 Qianjiang Road,Jianggan District,Hangzhou Accountants writing signatures Qian Zhongxian,and Chen Hui Sponsor that exercised supervision over the Company in the Reporting Period

67、Name Sinolink Securities Co.,Ltd.Office address 23/F,Zizhu International Plaza,1088 Fangdian Road,Pudong New District,Shanghai Representatives writing signatures Du Chunjing,and Feng Bing Supervision period From 6 February 2020 to 31 December 2022 VII Key Financial Information for the Past Three Yea

68、rs(I)Key accounting information Unit:RMB Key accounting information 2021 2020 2021-over-2020 change(%)2019 Operating revenue 12,384,916,337.51 10,051,128,834.05 23.22 10,040,439,724.07 Net profit attributable to the listed companys shareholders 2,780,360,732.66 2,313,430,074.14 20.18 2,303,722,676.4

69、4 Net profit attributable to the listed companys shareholders before exceptional gains and losses 2,632,476,489.56 2,221,818,427.52 18.48 2,223,572,707.11 Net cash generated from/used in operating activities 3,014,326,741.14 3,437,202,711.65-12.30 2,297,332,006.05 31 December 2021 31 December 2020 C

70、hange of 31 December 2021 over 31 December 2020(%)31 December 2019 Equity attributable to the listed companys shareholders 10,755,751,576.63 9,137,392,569.09 17.71 5,551,303,841.96 Total assets 15,473,904,666.62 12,437,541,574.38 24.41 7,416,562,760.11 Annual Report 2021 12/251 (II)Key financial ind

71、icators Key financial indicator 2021 2020 2021-over-2020 change(%)2019 Basic earnings per share(RMB/share)4.63 3.89 19.02 4.27 Diluted earnings per share(RMB/share)4.63 3.89 19.02 4.27 Basic earnings per share before exceptional gains and losses(RMB/share)4.39 3.73 17.69 4.12 Weighted average return

72、 on equity(%)28.28 26.87 Up by 1.41 percentage points 52.36 Weighted average return on equity before exceptional gains and losses(%)26.77 25.81 Up by 0.96 percentage point 50.54 Explanations about the key accounting and financial information for the past three years:Applicable Not applicable VIII Ac

73、counting Data Differences under Chinas Accounting Standards for Business Enterprises(CAS)and International Financial Reporting Standards(IFRS)and Foreign Accounting Standards(I)Differences in net profit and equity attributable to the listed companys shareholders under CAS and IFRS Applicable Not app

74、licable(II)Differences in net profit and equity attributable to the listed companys shareholders under CAS and foreign accounting standards Applicable Not applicable(III)Reasons for accounting data differences above Applicable Not applicable IX Key Financial Information for 2021 by Quarter Unit:RMB

75、Q1(January-March)Q2(April-June)Q3(July-September)Q4(October-December)Operating revenue 2,574,274,208.31 3,245,498,210.56 3,192,748,363.27 3,372,395,555.37 Net profit attributable to the listed companys shareholders 606,926,576.50 814,485,351.00 784,888,414.96 574,060,390.20 Net profit attributable t

76、o the listed companys shareholders before exceptional gains and losses 558,179,910.56 762,665,900.61 774,913,239.77 536,717,438.62 Net cash generated from/used in operating activities 355,943,367.97 1,235,659,159.38 581,991,433.98 840,732,779.81 Indicate whether any of the quarterly financial data i

77、n the table above differs from what have been disclosed in the Companys past periodic reports.Applicable Not applicable X Exceptional Gains and Losses Applicable Not applicable Unit:RMB Annual Report 2021 13/251 Item 2021 Notes(if applicable)2020 2019 Gain or loss on disposal of non-current assets-9

78、,714,625.18 -669,979.13-3,929,202.33 Exceptional tax rebates,reductions and exemptions given with ultra vires approval,in lack of official approval documents or for other reasons Government grants through profit or loss(exclusive of government grants consistently given in the Companys ordinary cours

79、e of business at fixed quotas or amounts as per governmental policies or standards)388,196,973.94 126,164,339.75 65,476,712.73 Capital occupation charges on non-financial enterprises that are recognized in profit or loss 8,121,324.51 407,671.23 1,032,715.90 Gain equal to the amount by which investme

80、nt costs for the Company to obtain subsidiaries,associates and joint ventures are lower than the Companys enjoyable fair value of identifiable net assets of investees when making investments Gain or loss on non-monetary asset swaps Gain or loss on assets entrusted to other entities for investment or

81、 management 171,623,256.63 166,225,979.47 105,161,168.16 Allowance for asset impairments due to acts of God such as natural disasters Gain or loss on debt restructuring Restructuring costs in staff arrangement,integration,etc.Gain or loss on the over-fair value amount as a result of transactions wit

82、h distinctly unfair prices Current profit or loss on subsidiaries obtained in business combinations involving entities under common control from the period-begin to combination dates,net Gain or loss on contingencies that do not arise in the Companys ordinary course of business Annual Report 2021 14

83、/251 Gain or loss on fair-value changes on held-for-trading and derivative financial assets and liabilities&income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments(exclusive of the effective portion of hedges that arise in the Companys ordi

84、nary course of business)11,107,836.63 -114,631,050.00-129,159.06 Reversed portions of impairment allowances for receivables and contract assets which are tested individually for impairment Gain or loss on loan entrustments Gain or loss on fair-value changes in investment property of which subsequent

85、 measurement is carried out using the fair value method Effects of all adjustments required by taxation,accounting and other applicable laws and regulations on current profit or loss Income from charges on entrusted management Non-operating income and expense other than the above-327,898,293.86 RMB2

86、95 million was paid for the fine imposed by the anti-trust decision Zhe Shi Jian An(2021)No.4.-47,932,397.93-73,067,799.01 Other gains and losses that meet the definition of exceptional gain/loss 2,739,167.53 1,014,971.00 Less:Income tax effects 96,291,397.10 38,967,887.77 14,394,467.06 Non-controll

87、ing interests effects(net of tax)Total 147,884,243.10 91,611,646.62 80,149,969.33 Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Pub

88、licExceptional Gain/Loss Items:Applicable Not applicable XI Items Measured at Fair Value Applicable Not applicable Unit:RMB Annual Report 2021 15/251 Item Opening balance Closing balance Change in the period Effect on current profit Held-for-trading financial assets 2,863,300,000.00 5,926,600,000.00

89、 3,063,300,000.00 Derivative financial assets 27,159,170.00 3,613,050.00-23,546,120.00 Total 2,890,459,170.00 5,930,213,050.00 3,039,753,880.00 XII Other Information Applicable Not applicable Part III Management Discussion and Analysis I Discussion and Analysis on Operations Amid a complex business

90、environment in 2021,the Company achieved steady growth in operating results.For the year,operating revenue increased 23.22%year on year to RMB12.385 billion and the net profit attributable to the Companys shareholders amounted to RMB2.78 billion,up 20.18%from the previous year.In 2021,the Company co

91、ntinued to strengthen BBS and improve its own operating capability.It maintained robust growth in core advantageous businesses of adaptors and wall switches and sockets,accelerated business development with respect to new energy and the smart ecosystem,and successfully launched a string of new produ

92、cts to the market,demonstrating a strong growth momentum.In 2021,the Bull brand was once again among the“Chinas 500 Most Valuable Brands”released by World Brand Lab,with an increase of RMB1.852 billion in brand value compared with 2020,reaching RMB17.634 billion.In addition,the Company and its subsi

93、diaries,Ningbo Gongniu,Gongniu Photoelectric and Gongniu Digital,were certified as high-tech enterprises again in the year.Meanwhile,the Company was honored as“National Industry-Education Integration Enterprise”by the National Development and Reform Commission and the Ministry of Education,granted t

94、he“AAAAA Good Standardizing Practice Certificate”by the China Association for Standardization,and recognized as Top 100 Manufacturing Enterprises of Zhejiang Province,First Batch of Cloud Enterprises in Manufacturing Industry of Zhejiang Province,Seventh Batch of Enterprises in Zhejiang Province for

95、 Big Data Demonstrative Application and Advanced Entity of Quality Management in Zhejiang Province in 2021.In 2021,the Company achieved sound results in the following aspects:(I)With deep insight into user needs,the Company continued to launch innovative products such as smart and ecosystem-based ho

96、me appliances and new energy-based electrical products.In 2021,the Company firmly captured the major trends of consumption upgrade,intelligent transformation,and new energy.With deep insight into user needs,it continued to launch innovative products such as smart and ecosystem-based home appliances

97、and new energy-based electrical products.Throughout the year,up to five design awards were earned at home and abroad.As of the date of this report,the Company has won a total of 51 design awards at home and abroad,including the Red Dot Award(Germany),the iF Award(Germany),the IDEA Award,the Red Star

98、 Design Award(China),the Annual Report 2021 16/251 AWE Award,and the Design Intelligence Award.In addition,technical strengths were further enhanced,with 470 new patents and 13 new software copyrights granted in 2021.As of the date of this report,the Company boasts 1,956 valid patents and 41 softwar

99、e copyrights.1.The electric connection business In 2021,the electric connection business continued with individualized innovation with regard to electricity consumption scenarios according to user needs and actively expanded into the sectors of industrial electric power distribution and new energy-b

100、ased electric connection.The business recorded revenue of RMB6.413 billion in the year,an increase of 15.58%year on year.With user needs as its core,the Company further strengthened the individualized innovation of adapters in electricity consumption scenarios to highlight the idea of better homes t

101、hrough space and function integration.Track sockets were launched and topped the Tmall chart within three months.A new electric connection technology platform was built to offer a new comprehensive solution for the electricity usage scenarios in different functional areas.According to users diverse

102、needs for temporary electricity usage,the Company introduced retractable power strips in 2021,providing users with a safe,comfortable comprehensive solution for subdivided scenarios through a range of functions,including automatic pop up,access to electricity on both sides,a nearly 360-degree rotati

103、on,being retractable for 10,000 times,wireless charging,and anti-collision and anti-pinch protection.Based on the insights into users need for smart electricity usage,the Company released the safe core product series that integrated the protection and monitoring of power supplies to improve the sock

104、ets overall protection of electrical equipment and achieve it in a digital and visible way.In addition,focusing on young consumers yearning for individual expression and a better life,the Company launched the retro power strip series that gained popularity and recognition.Under the wave of new infra

105、structure,the Company focused on industrial electric power distribution with green technology and energy conservation,smart interconnection,and safety and reliability at its core.A range of electric connection products suitable for data centers,such as PDU,busbar,and industrial connector,was launche

106、d to provide customers with a comprehensive solution for smart power distribution for data centers.In 2021,the Company captured the trend of new energy and gave full play to its electric connection technology and brand advantage to gain breakthroughs in new energy electric connection.With technology

107、 innovation to address the pain points in usage,it launched a variety of portable chargers for new energy vehicles and household AC charging points,which received wide appreciation for their excellent technology,vehicle-grade quality,and innovative appearance and experience design.Specifically,the p

108、ortable charger won the German Design Award-Gold 2021.Furthermore,by leveraging its hardware channels,the Company continued to develop rooted businesses such as electrical tape and wire reels,thereby achieving accurate inbound marketing,enhancing channel and customer royalty,and systematically arran

109、ging electric connection products.2.The smart electrical lighting business Annual Report 2021 17/251 In the smart electrical lighting business,the Company focuses on the process before household decoration is completed(referred to as pre-decoration),providing wall switches and sockets,LED lighting,b

110、athroom heaters,circuit breakers,and smart door locks to meet consumers upgraded needs for whole-house smart home appliances.In 2021,the business reported revenue of RMB5.551 billion,an increase of 36.90%year on year.(1)Wall switches and sockets In 2021,the Companys wall switches and sockets continu

111、ed to lead the decorative products.The product layout was optimized under the strategy of improvement in basic,upgrade in middle-end,and breakthrough in high-end,and the construction of different product systems was deepened according to the differentiated needs of customers in different channels.Th

112、e revenue generated from wall switches and sockets in 2021 increased by 29.55%year on year.Following the successful release of the PIANO series of decorative switches,the Company directed its planning to the combination of intelligence,material/technology,and industrial design to produce high-end,hi

113、gh-tech products.Based on the arrangement in the Bull Smart Single-fire Switch,it developed and launched the Light Smart Wireless Remote Control Switch in 2021,which allows remote control at home without rewiring and accessing the Internet.As large panels have become the industry trend,the Company m

114、ade active efforts in differentiated decorative large panels within mainstream price segments.At the same time,with a focus on electrical installation experience,it carried out a new platform design and creatively used the IPD(integrated product development)idea and the BPD(trending production creat

115、ion)methodology to connect demand management,project initiation,development,and other critical processes and stages,thereby managing the whole process of product development.With the development of different e-commerce platforms,the Company closely followed the trend of channels to identify the chan

116、ges in the needs of consumers on different platforms and actively conduct product planning and layout.A specific series of products aimed at mainstream e-commerce platforms were launched in 2021.In addition,in response to the needs of ToB customers,platform-based modular structure design was further

117、 strengthened to improve product flexibility and scalability.Market competitiveness continued to rise by matching the differentiated needs of different customers in the business market with a portfolio of basic,high-end,and smart products.(2)LED lighting Adhering to the positioning of eye-caring,and

118、 oriented to meet the needs for light in space and behavior,the Company has continued to push forward the research of light and the innovation and application of optical design.From developing technologies such as anti-surge,visible flicker-free,and high-quality lamp bead to exploring the needs of s

119、ubdivided groups and in different application scenarios,the Company is committed to providing consumers with a comfortable,healthy light environment.In 2021,revenue from LED lighting increased by 38.53%year on year.Annual Report 2021 18/251 The decorative lighting segment responded to consumption up

120、grades by making greater efforts in smart products.More than 10 types of light smart decorative lamps,such as X16 Dawn and X18 Ultra,were launched in 2021,allowing users to control them from mobile phones via Bluetooth.In addition,these lamps ensured even,smooth dimming by setting professional dimmi

121、ng curves and using ultra-high-precision dimming chips.Keeping up with market trends,the basic lighting segment continued to enrich products for different scenarios in order to meet the needs for diverse,high-quality lighting.A variety of products were developed and launched,such as the High-Brightn

122、ess Cylindrical Light,PB01 Office Flat Light,XB01 Linear Light,and those for fire emergency,forming a matrix product layout with different levels,covering households,industries,offices,hotels,hospitals,supermarkets,department stores,and franchises.To let consumers experience eye-caring lighting more

123、 closely,Gongniu expanded its mobile lighting segment in 2021,striving to maximize the lighting experience.Based on the surveys and insights of the user research team,the newly-released Bull Eye-caring Desk Lamp SR Pro creatively used optical subtraction and triple anti-glare technologies to offer l

124、ighting experience that is“eye-friendly and ghosting-free”.The product received positive feedback from consumers and won the German Design Award-Winner.In addition,the Company contributed to industrial regulations by jointly drafting the group standard,the Specifications for Evaluating the Subtracti

125、on Effect of Table Lamps for Paper Task,with the China Household Electrical Appliances Research Institute.With a focus on consumers upgraded needs for minimalist decoration and smart lighting effects,Gongniu established the smart commercial lighting team striving for a comfortable lighting environme

126、nt for each family.A modular lighting product design integrated with a simple,delicate,and light luxury style reshaped the household space lighting experience.The Company launched a range of no-main-lamp lighting products such as downlights,magnetic lamps,and liner lamps,which are suitable for reces

127、sed and surface mounted scenarios,and provided multiple lighting solutions to meet the needs for basic,key,and decorative lighting functions.As an active promoter of the anti-flicker idea,the Company equipped its lighting products with the anti-surge technology to address current instability,conveyi

128、ng its brand philosophy of care,trust,and companionship to consumers.(3)Other products To meet consumers needs for one-stop shopping during pre-decoration and give full play to its brand and channel advantages,the Company incubated and launched bathroom heaters,smart door locks,smart clothes drying

129、racks,smart curtain machines,and other smart ecosystem products.In this respect,operating revenue recorded a year-on-year increase of 139.56%in 2021.Continuously expanding the definitions of heating and cooling appliances,the Company aimed to build a healthy home environment in terms of temperature,

130、humidity,purity,freshness,and atmosphere and to upgrade it with smart technologies.As a result,a range of products such as bathroom heaters,coolers,ventilating fans,and ceiling fan lights was launched.Annual Report 2021 19/251 In 2021,the Companys smart ecosystem products were launched one after ano

131、ther and made a good start.In terms of smart door locks,new series of handle-type smart locks such as ZA,X50,K,and ZB as well as new series of automatic smart locks such as X70 and QA01 were launched in 2021.Those with WIFI and Bluetooth were all connected to the Bull Smart Home app,improving user e

132、xperience from software and hardware.The Company established the ability to integrate research,production,and sales,deepened the vertical supply chain ability,and completed an over-1,000-square-meter laboratory specialized for smart door locks to fully practice its quality-first philosophy.As an imp

133、ortant entrance for smart control of home scenarios,smart door locks laid the foundation for the Companys strategy in smart home ecology.Smart clothes drying racks and smart curtain machines were introduced in several series,whose differentiated layout was quickly completed through platform-based de

134、velopment.Focusing on users needs for light effects and quality,the Company continued to optimize the control system of Bull Smart Home,further improving the convenience,safety,and stability of the Bull Smart Home app from the perspective of users.It accelerated the development of smart modules and

135、Bull Cloud,expanded the openness of the mid-office in the business line,and deepened the partnership with Alibaba,Baidu,JD,Xiaomi,and other Internet of Things platforms that support the voice control of a range of mainstream smart speakers,thereby quickly improving the product strengths and technolo

136、gical capabilities of the Companys smart products.To further enhance its competitiveness in smart lighting control technology,the Company invested in Dalitek Intelligent Technology(Shanghai)Inc.in 2021.Dalitek introduced smart lighting control to China at an earlier period.It provides smart control

137、system solutions in lighting,hotel room,and smart home for hotels,office buildings,and houses with fine decoration,and has completed various benchmark projects for high-end hotels.The smart lighting control system is its core advantage.Based on Daliteks lighting control capabilities,Gongniu will com

138、bine its smart industry research to create a smart home ecosystem with no-main-lamp lighting products as the core.In terms of circuit breakers,in 2021,the Company started from user needs to keep innovating,developing,and manufacturing based on the existing technology platforms.Its product lines were

139、 enriched by launching narrow body leakage protectors,upgraded home terminal distribution boxes,busbars,and double-handle integrated circuit breakers with leakage protection.The revenue generated from circuit breakers in 2021 increased by 52.16%year on year.3.Digital accessories In 2021,the Companys

140、 digital accessories generated revenue of RMB373 million,a year-on-year decrease of 10.79%,primarily due to the impact of the time-to-market of new products and changes in online and offline consumer traffic.As an extension of the Companys electric connection business,the digital accessories segment

141、 has been actively promoting product innovation and upgrades in digital fast charging and new energy storage,laying the foundation for future sustainable development.Adhering to the philosophy of providing consumers with exquisite,stylish,and young high-quality third-party digital accessories,the Co

142、mpany closely followed the industry trend and accelerated the improvement of the fast charging product layout,with the release of a range of products suitable for Annual Report 2021 20/251 mobile phones and laptops.At present,the layout of fast charging products with power segments of 18W to 100W ha

143、s been completed,and a widely applicable,standardized charger power platform has been launched,effectively improving product standardization,stability,and safety.Meanwhile,the Company provided consumers with higher-quality charging products by further upgrading the overcharge protection technology t

144、o better extend battery life and reduce charging power consumption.In addition,product opportunities in the new energy sector were continuously explored.In terms of outdoor energy storage,the Company conducted in-depth research on critical technologies such as battery pack management and low power-c

145、onsumption,high-efficiency fast chargers and inverters and gave full play to its advantages in strong electric connection and digital fast charging.It launched outdoor portable chargers with power segments of 300W,600W,and 1000W that meet the national safety standard of 220V sine wave AC output and

146、the need for 60WPD two-way fast charging.Compatible with various digital devices,these products provided consumers with safer,more convenient electricity usage in outdoor leisure and entertainment scenarios.In response to the widely differing product performance and quality,and under the principle o

147、f electricity safety,the Company actively participated in the formulation of national and industry standards as well as enterprise certification to promote industrial progress.It has established channels for technology exchange with China Electronics Standardization Institute,China Electronic Energy

148、 Saving Technology Association,China Communications Standards Association,and China Quality Certification Centre,and joined the National Electronic Safety Standardization Technical Committee.In 2021,the Company participated in the revision or drafting of more than 10 national or industry standards a

149、s the major drafter.These documents include Audio/Video,Information and Communication Technology Equipment-Part 1:Safety Requirements,Audio/Video,Information and Communication Technology Equipment-Part 2:Explanatory Information related to IEC 62368-1,Technical Requirements and Testing Methods for Po

150、wer Adapters for Multimedia Equipment,Technical Specifications of DC Power Adapter for Vehicle Use,Technical Requirements for Wireless Noise-canceling Headphones,General Specifications for Hand Wearable Products-Smart Bracelets,General Specifications for Hand Wearable Products-Smart Watches,and Perf

151、ormance Specifications for Lithium-ion Battery and Battery Packs for Distributed Energy Storage-Part 1:Home Energy Storage.As its product quality received ongoing recognition from the market and the industry,the Company was granted honors such as Leader of Charger Enterprise Standards and Full Membe

152、r of China Communications Standards Association.(II)Channel integration and lean marketing were fully promoted,with the expansion of all channels,including e-commerce and ToB,accelerated In 2021,the Company continued to promote marketing reforms according to the changes in consumer needs,further est

153、ablishing the ToC and ToB marketing systems and clarifying the synergy and complementarity strategies of channels including offline hardware,decoration,digital,and online e-commerce.The hardware channel was primarily for the sales of electric connection products such as adaptors,as well as circuit b

154、reakers and light source-related lighting products.Serving as a shared Annual Report 2021 21/251 channel for all categories in smart electrical lighting,the decoration channel focused on the sales of domestic decorative products,including wall switches and sockets,LED lighting,circuit breakers,bathr

155、oom heaters,smart door locks,smart clothes drying racks,and smart curtain machines.The digital channel was primarily for the sales of digital accessories.In terms of the consumer-side decoration channel,to meet the needs for one-stop purchase during pre-decoration,the Company further pushed forward

156、a specialized and comprehensive decoration channel,introducing a range of electrical lighting products such as Bull wall switches and sockets,LED lighting,circuit breakers,domestic electrical appliances,and smart door locks.At present,more than 18,000 retail stores have been developed.Meanwhile,lean

157、 marketing was further deepened in the decoration channel.Dealer operation quality was enhanced by establishing and improving the refined management and empowerment system as well as by initiating the lean market planning for dealers.With a focus on sales outlets and hypermarkets,precision advertisi

158、ng was maintained,along with various new forms of digital marketing,to further improve brand power.For the consumer-side hardware channel with traditional advantages,the Company further cultivated super sales outlets to improve the efficiency and output of a single store.In addition,with the help of

159、 dealers across China,it developed supermarkets and convenient stores,entered online delivery platforms,government-enterprise platforms,and B2B centralized procurement platforms,and acquired major customers such as trading companies and office supply stores to continuously increase sales channels an

160、d optimize the market structure.For the consumer-side digital channel,a range of forms was introduced,including mobile phone repair stores,digital accessories stores,small supermarket and convenient stores,the points mall,and the gifts channel.The Company prioritized to improve the operation quality

161、 of terminal outlets,using CRM digital tools,innovating the mini-app product management system,and upgrading the model of distribution,delivery,visit and sales to manage digital channel operation in real-time,efficient manner.For business-side channels,the Company established three independent refin

162、ed development systems with decoration enterprises,engineering projects,and fine-decoration houses at the core.Business-side organization capability was rapidly improved by introducing professionals.Meanwhile,life cycle management covering research and development,production,delivery,and after-sales

163、 was enhanced according to customer needs,thereby continuously fostering expertise in business-side development and services.Specifically,regarding domestic decoration,the Company leveraged its multi-category product portfolio to rapidly develop the domestic and industrial decoration markets.A stabl

164、e partnership was established with more than 120 national and regional well-known decoration companies and platforms such as Shengdu,Yenova,and KE holdings,covering more than 10,000 decoration enterprise outlets.Revenue generated from business-side channels in 2021 increased by 175.20%year on year.T

165、he Company actively promoted the e-commerce strategy of all-category,all-channel digital marketing,created new benchmark stores for new categories,strengthened the exploration and Annual Report 2021 22/251 integration of specialized dealer resource,and strove to improve the produce planning capabili

166、ties of the e-commerce channel.In terms of products,the increasingly-segmented changes in consumer needs were monitored and examined in real time.As a result,products were accurately positioned to meet and create the different needs of online consumers.In 2021,a range of trending new products such a

167、s rack sockets,retro power strips,and new energy charging plugs was launched.In terms of marketing,online brand communication,product recommendation,and inbound marketing were carried out holistically on Douyin,Xiaohongshu,Bilibili,and other digital platforms.A closed loop of resources inside and ou

168、tside these websites was completed by helping them achieve scale increment,marketing innovation,and brand building.According to the data of Info Master,the market shares of the Companys converters and wall switches and sockets on Tmall remained the first in 2021.In 2021,revenue generated from the e-

169、commerce channel increased by 31.82%year on year.(III)Ongoing efforts were made to promote a lean,automated,and digital supply chain as well as the transformation and upgrade to smart manufacturing in order to build a high-quality,low-cost,and efficient green supply chain In 2021,with ongoing adhere

170、nce to the philosophy of lean and flexible manufacturing,the Company continued to improve the levels of factory lean,automation,and informatization,and intensified smart and green manufacturing capabilities to further enhance quality and cost advantages.It continued to promote lean improvement.The c

171、onverter factory adopted the 3P methodology to complete relocation with minimal downtime,transfer and upgrade its manufacturing system,and quickly reached the planned operation level.The wall switch and socket factory pushed forward regional/all-channel inventory sharing to build a channel logistics

172、 model of logistics center+nationwide cloud warehouse,reducing the average delivery time from seven to three days,transforming to a supply chain driven by market needs.The LED lighting segment continued to push forward the building of lean factories,with more than 60 lean lines built and renovated i

173、n 2021,achieving flexible production.With the mission of building a fast-response lean and flexible factory,the digital factory carried out OEE(Overall Equipment Efficiency)improvements.As a result,production efficiency and yield were effectively raised through SMT(Surface Mount Technology)program o

174、ptimization,innovative application of through-hole reflow process,SMED(Single-minute Exchange of Die)research,and PCB assembly optimization.The domestic electrical appliance factory used the 3P tool methodology to creatively build U-shaped production lines of ceiling fan lamps and clothes drying rac

175、ks.The new energy electric connection factory built a new production workshop and continued to improve product quality by combining new product BPD improvements and lean improvements such as Standard Work and PSP quality foolproof and upgrades.The smart door locks segment innovated the lean manufact

176、uring model of large line to Y-shaped line to achieve a human-efficiency ratio far outperforming the industry.Aiming at cost reduction,the hardware factory continued to explore the integration of in-mold riveting technology and process.The overall equipment OEE reached a high level through abnormal

177、fast processing,and material and labor costs dropped further through material cost reduction,mold development,and equipment technical transformation,as well as the advancement of Annual Report 2021 23/251 production processes such as head and tail material welding and unitization.Through lean tools

178、such as BMS,SMED,TPM,and DM,the molding factory reduced the turnover inventory of injection molded parts by 40%,shortened the delivery cycle by 50%,and built a range of industry-leading models such as direct delivery with leveling logistics,plastic spray integration,and energy management.The Company

179、 firmly promoted automation upgrade and transformation to improve product efficiency.In 2021,the converter factory explored the opportunities for automation expansion.Its robot hand application technology gained breakthroughs in testing,welding,assembly,and material supply.A total of 214 automation

180、equipment was introduced to considerably improve equipment flexibility and availability.The wall switch and socket factory continued to promote automation applications,with the proportion of automated production capacity further increased.Its labor efficiency and output per capita rose by 23.6%and 2

181、8%,respectively.It continued to deepen quality management reform,verified AI+visual and AI+automatic testing,carried the first automatic detection of product appearance defects and switch feel,and established an online quality inspection system.The LED lighting factory introduced automatic plug-ins

182、and inspected the product lines,increasing production efficiency by 52%.It also improved its electronic manufacturing capabilities by introducing multi-automatic riveting machines and automatic plug-in machines.The digital factory focused on developing highly flexible robot hands and visual position

183、ing technology and promoted their applications in electronic factories.By introducing robot hand plug-ins and dispensing,automatic online testing,and automatic conformal coating,it built the first DIP automation benchmark line,increasing the maximum single product efficiency by 62%.The molding facto

184、ry built an automatic injection molding factory with a scale of more than 1,000 units by introducing automatic code wheels,automatic packing,CCD,AGV,and self-developed robot hands.In the meantime,all factories continued to increase investment in informatization to build digital factories.In 2021,the

185、 converter factory completed the online information system for direct delivery and strove to develop a direct delivery model for finished products.The wall switch and socket factory completed a multi-system collaborative smart delivery system which connected ERP(Enterprise Resource Planning,PLM(Prod

186、uct Life-cycle Management),WMS(Warehouse Management System),and QMS(Quality Management System)based on MES(Manufacturing Execution System),increasing the single order delivery rate by 60%,reducing the inventory sluggish rate by 94%,and passing the on-site acceptance of the provincial digital factory

187、 project.With MES at the core,the molding factory integrated ERP,PLM,and other software and hardware systems to build a digital smart factory with integration of design and manufacturing,automation of production and processing,transparent production process,and precise logistics control.The hardware

188、 factory strove to create a fully digital hardware supply system by initiating a system to collect digital factory data.(IV)Intensive efforts were made to build the Bull Business System(BBS),push forward innovation in organization and business processes,and strengthen the digitization of a whole-ind

189、ustry chain In recent years,Gongniu has deeply studied world-leading business management methods and aimed to build the Bull Business System(BBS)to reduce costs,improve efficiency,and promote Annual Report 2021 24/251 organizational change as well as achieve business innovation and growth,and implem

190、ent strategic goals.This philosophy has become an important methodology and operation system for the Company to drive growth.In 2021,by improving its practices,the Company gained considerable improvements in QDC(quality,delivery,cost)indicators,created 12 best practices as the lean benchmark,exporte

191、d 21 Gongniu fundamental methodologies,developed 10 black-belt and 546 green-belt talents,and increased lean transformation from two points to three points.As a result,the Companys business management continued to rise.Currently,the BBS has empowered the entire value chain covering research and deve

192、lopment,manufacturing,and sales.Starting from the strategic deployment of goal-driven breakthroughs,the Company used the BBS methods(such as 3P rapid self-production,BPD trending product development,and lean marketing)to help enhance the competitiveness of core business and incubate strategic new bu

193、sinesses rapidly.In the meantime,the BBS was used to empower newly-acquired companies to help them fit in and develop in order to better gain strategic synergy.To further develop its business,the Company set up the Pearl River Delta Center in Shenzhen and the Shanghai Center in Shanghai in 2021,two

194、cities with intensive technology and talents.The development and innovation,as well as business development of the smart and new energy segments,were carried out to solidify the foundation of strategic new businesses.The Company continued to strengthen its teams by carrying out the ability developme

195、nt plan based on the Bull Leadership Model for management talents at all levels.Meanwhile,with a large number of outstanding talents joining the Company,it strengthened the incentives in the restricted equity incentive scheme for core management and technical backbones as well as in the equity owner

196、ship scheme for special talents.By doing so,it integrated the interests of shareholders and the Company and the personal interests of the core team,thereby better attracting and retaining talents that contribute to organizational development.In the meantime,the Company continued to vigorously push f

197、orward a digital whole-industry chain and firmly promote process management,process digitalization,and data asset management.In addition to the aforementioned digitization of the supply chain,MRO(Maintenance Repair and Operations)came into operation in 2021.The first regional cloud warehouse pilot w

198、as successfully run and began to expand across the country.Digital marketing tools continued to empower dealers and outlets,with CRM+AI management achieved in all hardware and digital channels.Moreover,the Company further deepened and optimized the e-commerce middle-office system and strengthened th

199、e coordination with external e-commerce platforms and their warehouse platforms in order to improve e-commerce operation efficiency and boost the sustainable development of online business.II Introduction of the Industry where the Company Operates during the Reporting Period 1.Development stage and

200、periodic characteristics of the industry According to the Guidelines for the Industry Classification of Listed Companies revised by the CSRC in 2012,the business of the Company is assigned to“Manufacturing Industry of C38 Electric Machine and Equipment”.Besides,according to the Industry Classificati

201、on of National Economy(GB/T Annual Report 2021 25/251 4754-2017)issued by the National Bureau of Statistics,the main type of the Companys business is assigned to“Manufacturing Industry of C38 Electric Machine and Equipment”.Among them,adaptors,wall switches and sockets,and digital accessories are al

202、l assigned to the specific type of“3899 Other Not Classified Manufacture of Electric Machine and Equipment”.LED lighting is assigned to the specific type of“3872 Manufacture of Lighting Devices”.With the continuous increase of the resident discretionary income and consumption level in China,industri

203、es such as household appliances,consumer electronics,real estate and fixtures grow continuously and rapidly,promoting the market demand for products in electric connection,electrical lighting and digital accessories.Nowadays,China is the main producing base of adaptors across the world.The brands of

204、 wall switches and sockets in Chinas market are nationally leading as well as internationally famous.In the field of lighting,China has become the workshop of the world with products sold to around 220 countries and regions.Comprehensively,electric connection products with adaptors as the core and e

205、lectrical lighting products with wall switches and sockets and LED lighting as the core have entered the mature period of industrial development.Among them,new energy electricity,household intelligence and household ecosystem have become the new development trend.The consumer electronics industry re

206、presented by smart phones and digital accessory industry both increase rapidly.Products of electric connection,smart electrical lighting and digital accessories all have close connection to peoples lives with no obvious characteristics of industry cycle and regions.Among them,products of electric co

207、nnection and smart electrical lighting have been affected by some factors including cessation of business in major retail terminal end outlets(such as hardware stores,specialized markets and so on)and the reduction of housing fixtures during the Spring Festival.Therefore,the first quarter always has

208、 the fewer sales volume all over the year.2.The Companys position in the industry The Company is specialized in the civil electrical industry,and has been recognized as one of the“Top 100 Manufacturing Enterprises of Zhejiang Province”for a few consecutive years.Since its establishment in 1995,the r

209、eputation of the Bull brand has increased constantly and its sales volume has always been leading.In 2021,the brand was once again among the“Chinas 500 Most Valuable Brands”released by World Brand Lab,with a brand value of RMB17.634 billion.The Company always adheres to the operating philosophy of“B

210、e Professional and Concentrated,Strive for No.1 and Go Further”.According to the data provided by Info Master,in 2021,the Companys products such as adaptors and wall switches and sockets had the No.1 online sales volume in Tmall market.In June 2021,the Company successively launched new products such

211、 as new energy vehicle charging plugs and charging points for e-commerce platforms,with the sales volume in a leading position among third-party brands.III Principal Activities of the Companys Business during the Reporting Period 1.Principal activities Annual Report 2021 26/251 During the Reporting

212、Period,the Company focused on three areas:electric connection,smart electrical lighting and digital accessories.The main products of electric connection are adaptors(power strips),new energy vehicle charging plugs/points,data center PDU,busbars and so on.The products of smart electrical lighting mai

213、nly include wall switches and sockets,LED lighting,circuit breakers,bathroom heaters,smart door locks,smart clothes drying racks,smart curtain machines and so on.The products of digital accessories mainly include mobile equipment chargers such as phones,portable chargers,outdoor portable chargers an

214、d so on.The Company adheres to the vision of“Becoming a Leader in the International Civil Electric Industry”,the mission of“providing safe and comfortable electricity experience for customers”and the development philosophy of“be professional,concentrated and go further”.Since its establishment in 19

215、95,the Company has always adhered to the guidance of consumer demand and the base of product quality.The Company started to from the segmentation of power strips,constantly promoting the innovation of functions,technology and design,and developing batches of new products popular among consumers.Focu

216、sing on innovation,the Company has the comprehensive advantages of product R&D,marketing,supply chain and branding.After years of developing and expanding,the Company has formed three major business segments:electric connection,smart electrical lighting and digital accessories.Besides,it has also fo

217、rmed sustainable business layout in the fields of civil electrical industry and lighting.Facing the consumers upgrading demand for smart and ecosystem-based household products,and the consumer trend of green and low carbon products,the Company set the strategic goal of“Smart Ecosystem+New Energy Str

218、ategy”in 2021.Besides,the Company has constantly built firmer competitive edge in line with the trends of the times to achieve the business goal and vision.2.Business models (1)Procurement model:The procurement business of the Company mainly includes the procurement of operating supplies including c

219、opper,silver,aluminum,tin,plastic granule,paper pulp,Electric Connection Smart Electrical Lighting Digital Accessories Annual Report 2021 27/251 etc.,and the procurement of non-operating supplies such as IT materials,administrative supplies and so on.The Company has established a procurement strateg

220、y with quality as the core.It has selected the main supplier through the mechanism of strict supplier entrance and regular examination and inspection.Besides,the Company established strategic cooperating relationships with the main suppliers to ensure the quality and delivery.The Company has set up

221、a procurement sharing platform with professional personnel at the group level.It improves the ability of negotiating prices and debasing procurement costs through central procurement.Furthermore,the Company has optimized and improved the suppliers management system,ERP system,manufacturing and stora

222、ge system,etc.Meanwhile,it has improved the management of procurement and constantly improved the procurement efficiency.The Company has performed central procurement of bulk raw materials such as copper,silver,aluminum,tin,plastic granules,paper pulp and so on.In addition,the Company has locked the

223、 trading price through ways such as forward hedging to reduce the uncertain risk brought by the price fluctuation in spot market of raw materials.(2)Production model:The Company has adopted the manufacturing model of“Market Forecast+Safe Inventory”.Products are mainly self-made.Some new products and

224、 supporting products have been made by adopting the OEM manufacturing mode.Every factory is responsible for the production of corresponding products and parts.They have ensured product quality,efficient management and on-time delivery at the same time.Meanwhile,the Company has constantly promoted th

225、e innovation of manufacturing mode.It has ensured the product quality,improved the flexible manufacturing efficiency and reduced cost by continuously improving the level of specialization,automation and informatization.(3)Sales model:The Company has established online and offline integrated sales mo

226、del through omnichannel.The offline sales model is mainly based on distribution and partially based on direct selling.The Company has promoted the innovative offline sales mode of“distribution,delivery,visit and sales”in the field of civil electrical appliances and implemented refined management of

227、channels.Through efficiently organizing and transferring dealer resources around the country,and long-term accumulation,the Company has established distribution network with 1.1 million retail stores covering national urban and rural areas.The online channel has covered the mainstream e-commerce pla

228、tforms through direct selling+distribution,with which we have made every effort to build the flagship stores into a brand promotion window.The Company has actively implemented digital marketing to realize“diversion outside the online channel and sales inside the channel”with the help of each traffic

229、 inlet.At the same time,the Company has accelerated the development strength of ToB channels such as decoration and engineering projects.Besides,it has actively explored overseas markets to speed up the global layout.IV Analysis on Core Competitiveness during the Reporting Period Applicable Not appl

230、icable The Company has always adhered to the core values of“Honest,Faithful,Professional and Concentrated”.It has gradually established strong and comprehensive competitive edges through continual and comprehensive innovation and reform in product development,quality control,channel Annual Report 20

231、21 28/251 development,marketing and supply chain construction.During the Reporting Period,the Companys core edges were continuously strengthened.(I)The Company has established an edge of innovative product development based on consumer demand,enabling constant product launches.For long,the Company h

232、as attached great importance to research on consumer demand and the innovation of product planning and research.It has always viewed the promotion of consumer experience as the primary goal in product research.The Company has established an integrated innovation system and teams of forward research,

233、product planning and research.It has created and applied all kinds of new technologies,materials and crafts.Through the constant superposition of micro innovation,the Company has promoted a batch of products of electric connection,smart electrical lighting and digital accessories with new and differ

234、ent characteristics in the aspects of design,performance,technology and function,which are popular among consumers.For years,the Company has participated in drafting 93 national standards,industry standards and association standards.It is the vice chairman unit of the Electrical Accessories and Hous

235、ehold Controller Branch of the China Electrical Equipment Industry Association.It is also the vice chairman unit of the National Technical Committee for Standardization of Electrical Accessories.Whats more,it is the first electrical enterprise in the industry to draft the“Made in Zhejiang”standard a

236、nd attain certification.As of the date of this report,the Company holds 1,956 valid patents.During the Reporting Period,the Company has applied for 451 patents and been granted 470 new patents.At the same time,the Company is a national industrial design center approved by the Ministry of Industry an

237、d Information Technology of the Peoples Republic of China.It is also a unit of national postdoctoral workstation.(II)The Company has always adhered to the philosophy of winning through high quality and put in place an efficient quality control system.Since its founding,the Company has aimed to manuf

238、acture high-quality products.The idea of winning through high quality has gained support among all in the Company.The Company has established a good brand image and reputation on the market with reliable product quality.In the aspects of selecting raw materials,procurement,research and production pr

239、ocess control,product testing and after-sales service,the Company has established a comprehensive and perfect quality management system of product planning-product design-procurement-production in batch quantity-post-sale strictly in line with the national standards,related laws and regulations,and

240、enterprise standards.In order to ensure the highly efficient operation of the quality management system,the Company has been equipped with more than 900 professional personnel in quality management,experiment testing,analysis and quality control.It has also had more than 7,000 sets of testing equipm

241、ent for experiment and production line automation,and established 10 high-standard laboratories for R&D,development and quality testing in the industry.The related laboratories have acquired CNAS National Laboratory Certification,UL WTDP Laboratory Certification and other product certificates such a

242、s CCC,VDE,UL,NF,CE,and so on.It assures solid resources for management and control of product quality.Annual Report 2021 29/251 With long-term accumulation,the Company has formed an efficient and systematic quality management and control system.It has achieved the management system certification of

243、IS09001,ISO14001 and OHSAS18001.Besides,it has been successively awarded 20 prizes related to quality such as“National Qualified Products of Stable Quality”,“Products with Reliable Quality”,“Demonstration Enterprise of Export Quality and Safety in China”,“Famous Brand Products in Zhejiang”and“Ningbo

244、 Mayor Quality Award”.(III)The Company always adapts itself to market changes.Supported by the offline marketing network of more than 1.1 million outlets covering urban and rural areas,as well as a professional online marketing network,the Company has established a marketing system featuring coordin

245、ative online and offline channels in the civil electrical industry.The Company has implemented an innovative offline sales model featuring“distribution,delivery,visit and sales”in the civil electrical industry.In China,it has already developed more than 750,000 hardware channel retailers(including h

246、ardware stores,grocery stores,office supplies stores,supermarkets and so on),more than 120,000 specialized decoration and lamp decoration retailers,and more than 250,000 digital accessories channel retailers.These channels have expanded the selling points to stores,large market places,professional m

247、arkets in urban and rural areas,forming an offline marketing network hard to be duplicated.At the same time,the Company has established a professional e-commerce direct selling operational team and an online distributor system with strong ability.Nowadays,the Company has comprehensively entered the

248、leading e-commerce platforms such as Tmall,Taobao,JD.com,Vipshop,Pinduoduo,and so on.It has efficiently explored dozens of online authorized distributors,actively implemented digital marketing and achieved“diversion outside the online channel and sales inside the channel”with the help of each traffi

249、c inlet.”According to the data provided by Info Master,in 2021,the Companys products of adaptors and wall switches and sockets had the largest market share in Tmall.The high quality coordinated development between offline and online channels has helped the Company establish a comprehensive,multileve

250、l and stereoscopic marketing network,which is the advantage of the Company to maintain sustainable development and competitiveness in the industry.Simultaneously,the Company has always adhered to the refined management of channels for years,developing established systems in the aspects of developmen

251、t,management,operation,and so on.It has had the advantage of exploring new channels.(IV)The Company has put in place an integrated branding model with selling point promotion as the core,making“Bull”a household name.The Company has adhered to the branding model with selling point promotion as the co

252、re.Over the past 20 years,the Company has made constant efforts to support the distributors to put the brand of Bull in retail stores and put advertising resources such as display inside and outside the stores,in so doing the brand of Bull has been disseminated to cities,towns and counties.It has fo

253、rmed a simple,efficient and unique branding model.With an increasingly strong presence,Bull has become a household name.Meanwhile,the Company has constantly enriched the brand connotation and improved the brands Annual Report 2021 30/251 penetration and stickiness among different consumers with the

254、help of diversified,intelligent and young new products and the Internet new media promotion.During the Reporting Period,the Bull brand was once again among the“Chinas 500 Most Valuable Brands”released by World Brand Lab.It has come out in front in the light industry group in 2021 China Brand Value E

255、valuation Information launched by China Council for Brand Development.(V)The Company boasts a supply chain system featuring advanced manufacturing technologies and automation,helping it stay competitive with respect to quality,efficiency and cost.The Company has regarded manufacturing technology as

256、the important carrier of core competitiveness in the supply chain.It has been equipped with a professional mold factory.The factory has designed,developed and manufactured all kinds of high-precision mold for the Companys diversified products by adopting high-precision tolerance grade technology,adv

257、anced automatic pouring technology and 3D print technology.At the same time,the factory has adopted manipulator technology and post processing free technology to achieve automation of injection molding production and molding integration as well as to greatly improve the product quality,production ef

258、ficiency and production innovation.At the same time,the Company has established a dust free electronic factory which has adopted 3D image analysis technology and phase shifting AOI technology.The factory has also been equipped with an independently developed four-axis manipulator.It has ensured the

259、quality of PCBA board products through image comparison after firing,greatly supporting the Companys manufacturing of digital accessories,lighting and smart products.The Company has constantly improved the fine,automatic and smart manufacturing level and established an industrial automatic team of i

260、ntegrated research,design and manufacturing.The independent development and design,and the assembly application capability of automatic devices and smart assembly devices have constantly improved.The flexible production mode of“man-machine integration”has been promoted rapidly.With the help of a lea

261、ding automatic stereoscopic warehouse and smart sorting shipment system,the Company has achieved the mechanization and automation of warehouse work,which greatly improves the speed of distribution and delivery,and the customer response ability.The automatic stereoscopic warehouse has efficiently con

262、nected the front-end automatic production.The smart manufacturing system for the whole process of feedstock-production-storage-shipment has been established,providing solid support for the sustainable development of the Companys business.(VI)The Company has established the Bull Business System(BBS)w

263、ith innovation and growth as the core,driving growth and breakthroughs to create a stream of business growth points.The Company has continuously summarized and iterated,and built the unique Bull Business System(BBS)by importing and extracting the essence of advanced management modes at home and abro

264、ad,and combining it with its own best experience.It has also established a whole value chain of R&D,manufacturing and marketing with value creation as the core,innovation increase as the key point and cost reduction,efficiency increase as the base.Gongniu BBS takes“empowering everyone and Annual Rep

265、ort 2021 31/251 every business of Gongniu in pursuit of faster,higher and further growth”as the mission.It has constantly strengthened the system development and promoted the ability internalization.Focusing on the Companys strategic goal,Gongniu has fully used the BBS instrumental methodology mode(

266、such as 3P quick self-manufacturing,BPD development of popular products,fine marketing and so on).Gongniu BBS has driven the Company to constantly make breakthrough to promote the development of new business,and facilitate the cost reduction and efficiency increase of the traditional business,and th

267、e innovation development.It has also promoted the achievement of high performance objectives,creating a stream of business growth points for the Company.V Major Operations during the Reporting Period For the Reporting Period,the Company recorded operating revenue of RMB12.385 billion,up 23.22%year-o

268、n-year;and a net profit attributable to its shareholders of RMB2.78 billion,up 20.18%year-on-year.(I)Analysis of Principal Operations 1.Changes in consolidated income statement and cash flow statement items Unit:RMB Item 2021 2020 Change(%)Operating revenue 12,384,916,337.51 10,051,128,834.05 23.22

269、Cost of sales 7,808,540,666.84 6,018,606,539.57 29.74 Selling expense 560,187,002.80 517,846,532.13 8.18 Administrative expense 427,615,556.97 430,706,547.54-0.72 Finance costs-87,842,281.32-35,737,486.54 Not applicable R&D expense 471,015,016.82 401,181,690.28 17.41 Net cash generated from/used in

270、operating activities 3,014,326,741.14 3,437,202,711.65-12.30 Net cash generated from/used in investing activities-1,588,987,931.15-4,249,591,758.14 Not applicable Net cash generated from/used in financing activities-700,808,446.71 1,925,600,149.55-136.39 The change in operating revenue was primarily

271、 driven by the steady growth in the traditional core business and the fast growth in new businesses in the year.The change in cost of sales was primarily driven by the increased costs along with the increased revenue.The change in selling expense was primarily driven by the increased advertising and

272、 marketing expenses.No significant change occurred to administrative expense.The change in finance costs was primarily driven by the increased interest income from bank deposits in the year.The change in R&D expense was primarily driven by the increased R&D investments.The change in net cash generat

273、ed from/used in operating activities was primarily driven by the increased procurement amount as a result of the rising prices of bulk materials.The change in net cash generated from/used in investing activities was primarily driven by the decreased purchases of financial products in the year.The ch

274、ange in net cash generated from/used in financing activities was primarily driven by the arrival of raised funds last year.Particulars about any significant change to the Companys business nature,profit composition or sources in the current period.Applicable Not applicable 2.Revenue and cost analysi

275、s Applicable Not applicable In 2021,the Company continued to implement individualized innovation in electricity scenarios and develop products based on customer demands for its electric connection business,and the business Annual Report 2021 32/251 saw steady growth as a result.For the smart electri

276、cal lighting business,the Company actively expanded new product categories and accelerated the construction of a smart home ecosystem with no-main-lamp lighting as the core,which resulted in rapid growth in the business.The revenue from the digital accessories business showed a slight decline,primar

277、ily driven by the time-to-market of the new products and the change in online and offline traffics.(1)Principal operations by operating division,product category,operating segment and sales model Unit:RMB Principal operations by operating division Operating division Operating revenue Cost of sales G

278、ross profit margin(%)YoY change in operating revenue(%)YoY change in cost of sales(%)YoY change in gross profit margin(%)Civil electrical appliances 12,336,870,690.29 7,790,762,754.47 36.85 23.11 29.70 Decrease by 3.21 percentage points Principal operations by product category Operating division Ope

279、rating revenue Cost of sales Gross profit margin(%)YoY change in operating revenue(%)YoY change in cost of sales(%)YoY change in gross profit margin(%)Electric connection products 6,413,208,065.02 4,300,354,553.32 32.95 15.58 27.33 Decrease by 6.18 percentage points Smart electrical lighting product

280、s 5,550,984,279.10 3,218,338,798.71 42.02 36.90 39.62 Decrease by 1.13 percentage points Digital accessories 372,678,346.17 272,069,402.44 27.00-10.79-16.11 Increase by 4.63 percentage points Principal operations by operating segment Operating division Operating revenue Cost of sales Gross profit ma

281、rgin(%)YoY change in operating revenue(%)YoY change in cost of sales(%)YoY change in gross profit margin(%)Domestic 12,059,354,004.16 7,536,455,016.87 37.51 22.71 28.91 Decrease by 3.00 percentage points Overseas 277,516,686.13 254,307,737.60 8.36 43.06 58.41 Decrease by 8.89 percentage points Note:

282、Electric connection products include adaptors,electrical tape,new energy vehicle charging plugs/points,wire coil and couplers.Smart electrical lighting products include wall switches and sockets,LED lighting,circuit breaker,bathroom heaters,smart door locks,smart clothes drying racks,smart curtain m

283、achines and other smart ecosystem products.Digital accessories include digital accessories,digital gift boxes and outdoor portable chargers.The performance of the Companys principal businesses by operating division,product category,operating segment and sales model:For electric connection products,t

284、he revenue amounted to RMB6,413 million,up 15.58%year on year,while the cost of sales stood at RMB4,300 million,up 27.33%year on year.Supported by the brand advantage and the hardware channel advantage,the electric connection business,as the Companys core business,maintained a steady growth.Annual R

285、eport 2021 33/251 For smart electrical lighting products,the revenue amounted to RMB5,551 million,up 36.90%year on year,while the cost of sales stood at RMB3,218 million,up 39.62%year on year.In this business,the Company accelerated the development of new business and decoration channels were expand

286、ed during the Reporting Period,achieving strong growth in all operations.For digital accessories,the revenue amounted to RMB373 million,decrease 10.79%year on year,while the cost of sales stood at RMB272 million,decrease 16.11%year on year.This was mainly derived from the impact of time-to-market of

287、 the new products and the change in online and offline traffics.(2)Output and unit sales analysis Applicable Not applicable Primary products Unit Output Unit sales Inventory YoY change in output(%)YoY change in unit sales(%)YoY change in inventory(%)Electricity connecting products 0,000 pieces 54,62

288、6.38 53,465.18 3,433.70 29.94 21.48 61.67 Smart electrical lighting products 0,000 pieces 71,632.68 66,935.42 7,798.60 43.45 28.30 136.37 Digital accessories 0,000 pieces 3,070.48 3,361.83 268.73-17.26-2.50-55.73 Notes:In the current period,the inventories of electric connection products and smart e

289、lectrical lighting products both showed a significant increase compared with last year,mainly due to the strategic re-stocking due to strong sales this year.In contrast,the inventory of digital accessories showed a substantial decrease compared with last year,mainly due to product transition and opt

290、imization of inventory management.(3)Execution of significant purchase or sales contracts Applicable Not applicable(4)Cost analysis Unit:RMB By operating division Operating division Cost category 2021 As%of total costs in 2021(%)2020 As%of total costs in 2020(%)Change in amount(%)Note Civil electric

291、al appliances Direct materials 6,440,815,836.34 82.48 4,621,904,048.89 76.79 39.35 Direct labor cost 494,515,730.18 6.33 451,436,344.13 7.50 9.54 Manufacturing expense 855,431,187.95 10.96 933,363,840.19 15.51-8.35 Notes:The cost of direct materials increased during 2021 compared to 2020,primarily d

292、riven by the rising prices of bulk materials.(5)Changes to the consolidation scope due to changed ownership in principal subsidiaries in the Reporting Period Applicable Not applicable Annual Report 2021 34/251 (6)Significant changes to the business scope or product or service range in the Reporting

293、Period Applicable Not applicable(7)Major customers and suppliers A.Major customers Sales to the top five customers stood at RMB1,592.7148 million,accounting for 12.86%of the total annual sales.Sales to the related-parties among the top five customers stood at RMB0,accounting for 0%of the total annua

294、l sales.Indicate whether sales to a single customer accounted for over 50%of the total sales,there was any new customer in the top five customers,or the Company heavily relied on a few number of customers in the Reporting Period.Applicable Not applicable B.Major suppliers Purchases from the top five

295、 suppliers stood at RMB2,261.6093 million,accounting for 22.23%of the total annual purchases.Purchases from the related-parties among the top five suppliers stood at RMB0,accounting for 0%of the total annual purchases.Indicate whether purchases from a single supplier accounted for over 50%of the tot

296、al purchases,there was any new supplier in the top five suppliers,or the Company heavily relied on a few number of suppliers in the Reporting Period.Applicable Not applicable Other information:N/A 3.Expense Applicable Not applicable Item 2021 2020 Amount of change Change(%)Selling expense 560,187,00

297、2.80 517,846,532.13 42,340,470.67 8.18%Administrative expense 427,615,556.97 430,706,547.54-3,090,990.57-0.72%R&D expense 471,015,016.82 401,181,690.28 69,833,326.54 17.41%Finance costs-87,842,281.32-35,737,486.54-52,104,794.78 Not applicable(1)Selling expense increased primarily driven by the incre

298、ased advertising and marketing expenses.(2)R&D expense increased primarily driven by the increased R&D investments.(3)Finance costs decreased primarily driven by the increased interest income from bank deposits in the year.4.R&D investments (1)R&D investments Applicable Not applicable Unit:RMB Expen

299、sed R&D investments in the current period 471,015,016.82 Capitalized R&D investments in the current period Total R&D investments 471,015,016.82 Total R&D investments as%of operating revenue 3.80 Capitalized R&D investments as%of total R&D investments (2)R&D personnel Applicable Not applicable Number

300、 of R&D personnel 1,431 R&D personnel as%of total employees 11.56 Educational background of R&D personnel Educational background Number of employees Doctoral degree 1 Annual Report 2021 35/251 Masters degree 76 Bachelors degree 783 Junior colleges 512 Senior high school and below 59 Age structure of

301、 R&D personnel Age Number of employees Below 30(exclusive)411 30-40(inclusive of 30 and exclusive of 40)826 40-50(inclusive of 40 and exclusive of 50)182 50-60(inclusive of 50 and exclusive of 60)12 60 and beyond (3)Other information Applicable Not applicable The Company,as a national industrial des

302、ign center and a national postdoctoral workstation,has always attached importance to product development and technological innovation.By establishing a leading scientific research innovation platform and innovating mechanism,the Company focuses on the research of industry basic and key common techno

303、logies to continuously improve product development and technological innovation capability.Meanwhile,with great emphasis on cultivation and introduction of talents of R&D and product planning as well as adhering to market demand-oriented principle,the Company continues to strengthen the insight and

304、research on the potential consumer demands and scenario-based requirements,constantly expands the areas by launching products that meet consumer demands to lead the industry development.In addition,the Company continues reinforcing the construction of the standardization system and the strategic lay

305、out of intellectual property rights,and constantly promotes open innovation to set an excellent example with respect to innovation capability.(4)Reasons for any significant change to the composition of R&D personnel and the impact on the Company Applicable Not applicable 5.Cash flows Applicable Not

306、applicable Item 2021 2020 Amount of change Change Net cash generated from/used in operating activities 3,014,326,741.14 3,437,202,711.65-422,875,970.51-12.30%Net cash generated from/used in investing activities-1,588,987,931.15-4,249,591,758.14 2,660,603,826.99 62.61%Net cash generated from/used in

307、financing activities-700,808,446.71 1,925,600,149.55-2,626,408,596.26-136.39%(1)Net cash generated from operating activities decreased primarily driven by the increased procurement amount as a result of the rising prices of bulk materials.(2)Net cash used in investing activities decreased primarily

308、driven by the decreased purchases of financial products in the year.(3)Net financing cash inflow last year changed to outflow in the current year primarily driven by the arrival of raised funds last year.Annual Report 2021 36/251 (II)Significant changes in profit incurred by non-core business Applic

309、able Not applicable(III)Analysis of assets and liabilities Applicable Not applicable 1.Assets and Liabilities Unit:RMB Item Closing amount As%of closing total assets(%)Opening amount As%of opening total assets(%)Change(%)Note Held-for-trading financial assets 5,926,600,000.00 38.30 2,863,300,000.00

310、23.02 106.98 Derivative financial assets 3,613,050.00 0.02 27,159,170.00 0.22-86.7 Notes receivable 750,723.35 0.00 Not applicable Receivables financing 927,023.00 0.01 161,562.83 0.00 473.78 Other receivables 195,924,505.99 1.27 126,043,394.07 1.01 55.44 Inventories 1,376,987,122.60 8.90 788,240,06

311、0.31 6.34 74.69 Other current assets 1,126,520,898.44 7.28 2,741,389,939.38 22.04-58.91 Right-of-use assets 18,809,799.71 0.12 Not applicable Long-term prepaid expense 17,750,835.99 0.11 3,150,000.00 0.03 463.52 Deferred income tax assets 116,456,369.78 0.75 66,903,177.28 0.54 74.07 Notes payable 2,

312、333,774.75 0.02 Not applicable Accounts payable 1,701,686,564.14 11.00 1,285,822,466.71 10.34 32.34 Contract liabilities 437,999,921.93 2.83 333,741,780.65 2.68 31.24 Other payables 430,813,760.10 2.78 219,091,086.62 1.76 96.64 Other current liabilities 56,939,989.86 0.37 43,285,234.93 0.35 31.55 Cu

313、rrent portion of non-current liabilities 673,911,937.53 4.36 Not applicable Long-term borrowings 160,037,333.33 1.29-100 Lease liabilities 5,089,837.39 0.03 Not applicable Other non-current liabilities 46,125,187.50 0.30 28,037,156.40 0.23 64.51 Annual Report 2021 37/251 Treasury shares 80,711,540.0

314、0 0.52 46,728,594.00 0.38 72.72 Other comprehensive income 7,537,390.37 0.05 28,863,769.91 0.23-73.89 Retained earnings 6,010,878,918.97 38.85 4,431,669,986.31 35.63 35.63 Other notes:Held-for-trading financial assets increased primarily driven by the increased closing balance of financial products

315、with increased floating income.Derivative financial assets decreased primarily driven by the decreased carrying closing amount of floating income of hedges.Notes receivable increased primarily driven by the increased closing balance of trade acceptance notes receivable.Receivables financing increase

316、d primarily driven by the increased closing balance of bank acceptance notes receivable.Other receivables increased primarily driven by the increased closing balance of security deposit payments.Inventories increased primarily driven by the strategic re-stocking at the end of the year.Other current

317、assets decreased primarily driven by the decreased closing balance of structured deposits held.Right-of-use assets increased primarily driven by the adoption of the new accounting standard for leases.Long-term prepaid expense increased primarily driven by the new addition of the equity incentives th

318、at had been granted to awardees under the special talent stock ownership plan but were not yet amortized.Deferred income tax assets increased primarily driven by the closing accrued deductible temporary differences arising from sales discounts.Notes payable increased primarily driven by the increase

319、d closing balance of notes payable.Accounts payable increased primarily driven by the increased procurement in the year.Contract liabilities increased primarily driven by the increased closing amount of advancements from customers.Other payables increased primarily driven by the increased closing ba

320、lance of accrued sales discounts.Other current liabilities increased primarily driven by the increased output VAT to be written off.Current portion of non-current liabilities increased primarily driven by the increased current portion of long-term borrowings.Long-term borrowings decreased primarily

321、driven by the transfer of long-term borrowings to the current portion of non-current liabilities.Lease liabilities increased primarily driven by the adoption of the new accounting standard for leases.Other non-current liabilities increased primarily driven by the increased repurchase obligations of

322、restricted shares that were over one year.Treasury shares increased primarily driven by the increased equity incentives.Other comprehensive income decreased primarily driven by the decreased net gain(exclusive of tax)recognized on futures contracts for hedging purposes.Retained earnings increased pr

323、imarily driven by the increased profit in the year.2.Overseas assets Applicable Not applicable 3.Major restricted assets as at the period-end Applicable Not applicable 4.Other information Applicable Not applicable(IV)Industry Environment Analysis Applicable Not applicable For details,see“(I)Industry

324、 landscape and trends”under“VI Outlook Discussion and Analysis”of Part III Management Discussion and Analysis”.Annual Report 2021 38/251 (V)Investments made Equity investments in other entities Applicable Not applicable 1.Significant equity investments Applicable Not applicable 2.Significant non-equ

325、ity investments Applicable Not applicable For details,see“(2)Changes in significant constructions in progress in the current period”under“22.Construction in progress”in“VII Notes to the Consolidated Financial Statements”of“Part X Financial Statements”.3.Financial assets measured at fair value Applic

326、able Not applicable For details,see“XI Items Measured at Fair Value”in“Part II Corporate Information and Key Financial Information”.4.Progress on any major asset restructuring in the Reporting Period Applicable Not applicable(VI)Sale of significant assets and equity investments Applicable Not applic

327、able(VII)Principal subsidiaries Applicable Not applicable 1.Principal subsidiaries Unit:RMB0,000 Full name of subsidiary Principal activities Registered capital Total assets Net assets Operating revenue Net profit Ningbo Gongniu Electrics Co.,Ltd.Household appliances manufacturing;manufacturing of m

328、echanical and electrical equipment;manufacturing of distribution switch control equipment;lighting apparatus manufacturing;general merchandising of hardware products;electrical materials manufacturing;manufacturing of electronic components and electromechanical components and equipment;manufacturing

329、 of intelligent home consumption equipment;communication equipment manufacturing;network equipment manufacturing;IoT equipment manufacturing;technical services,technical development,technical consulting,technical communication,technical transfer,and technical promotion(business activities shall be c

330、onducted independently in accordance with laws with the business license,except the items that require approval in accordance with laws).Items permitted:Import and export of products;and import and 10,000 408,822.28 141,799.30 397,884.87 134,317.07 Annual Report 2021 39/251 export of technologies(bu

331、siness activities that require approval in accordance with laws shall be subject to the approval by relevant authorities.Specific business items are indicated on the approval results).Ningbo Gongniu Precision Manufacturing Co.,Ltd.Manufacturing,processing and sales of mold,plastic products,hardware

332、accessories,and electronic components.10,000 84,080.80 14,783.30 277,083.95 3,508.58 Ningbo Gongniu Electric Sales Co.,Ltd.General merchandising,retailing and online sales of electrical materials,electronic products,hardware products,household appliances,communication apparatus,lamps,and articles of

333、 everyday use;import and export businesses of self-owned and commissioned goods and technologies(excluding those limited or prohibited by state laws and regulations).(business activities that require approval in accordance with laws shall be subject to the approval by relevant authorities)10,000 186,086.35 8,271.96 1,170,818.39 26,553.98 2.New subsidiaries Unit:RMB0,000 Full name of subsidiary Pri