Nine Company 689009 2021 Annual Report Notes

Original link: https://ljf.com/2022/05/22/1097/

Explanation of the company’s main accounting data and financial indicators for the first three years at the end of the reporting period
1. In 2021, the company realized an operating income of 9,146,053,600 yuan, an increase of 3,143,312,200 yuan over the same period of the previous year, an increase of 52.36%, and a net profit attributable to shareholders of the listed company of 410,598,800 yuan, an increase of 337,125,600 yuan over the same period of the previous year, an increase of 4,588.84 %, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 256,187,100, an increase of RMB 204,925,600 or 399.76% over the same period of the previous year. The main reasons are as follows:

(1) In 2021, the company’s main business has developed steadily, and its main products such as smart electric scooters have achieved steady year-on-year growth; at the same time, smart electric two-wheelers and all-terrain vehicle products have achieved good results in the market, and the company’s sales capabilities have been continuously improved. Sales channels Continuous expansion, driving operating income growth. At the same time, the increase in operating income led to a substantial increase in the net profit attributable to shareholders of the listed company and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses compared with the same period of the previous year;

(2) The impact of non-recurring gains and losses in 2021 on the company’s net profit attributable to shareholders of listed companies is RMB 154.4116 million, mainly due to the investment income generated by the company’s foreign exchange hedging business, investment income from wealth management products and other non-current financial assets. Gains from changes in fair value from investments, etc., increased by RMB 132,200,000 year-on-year.

2. The net cash flow from operating activities decreased compared with the same period of last year, which was mainly due to the advance stocking at the end of the current period, the increase in inventory, the increase in prepaid supplier purchases for the lock-up of goods and the increase in export tax rebates receivable.

3. Benefiting from the growth of the company’s net profit, related indicators such as earnings per share and weighted average return on equity increased year-on-year.

4. In 2021, the company invested RMB 503,514,500 in research and development, an increase of RMB 41,326,700 compared with the same period of the previous year. The proportion of research and development investment in the operating income was 5.51%, a decrease of 2.19 percentage points compared with the same period of the previous year, mainly because the operating income increased by 52.36% year-on-year.

Business situation discussion and analysis

1. The operating performance reached a new high, and the company’s profitability continued to increase
During the reporting period, the company realized an operating income of RMB 9,146,053,600, a year-on-year increase of 52.36%, and a net profit attributable to owners of the parent company of RMB 410,598,800, a year-on-year increase of 458.84%.

2. The growth rate of multiple business segments is obvious, and the market competitiveness is steadily improved
(1) Smart electric balance bikes and scooters: maintain a leading position and flourish. In 2021, the company’s smart electric balance bikes and scooters will continue to leverage the competitive advantages of products and brands and maintain continuous growth. In particular, the field of electric scooters has grown significantly. In 2021, the ToC retail products of scooters will achieve revenue of 4.408 billion yuan, and the micro-travel products of ToB shared scooters and accessories will achieve revenue of 1.716 billion yuan.

(2) Intelligent electric two-wheeled vehicle: the business is advancing by leaps and bounds, and it is blooming everywhere
In 2021, the company will sell 420,000 smart electric two-wheelers, with a sales scale of 1.2 billion yuan, and 1,700+ exclusive stores in China, covering 600+ cities.

(3) All-terrain vehicle: Emerging business has achieved results, showing hard power
In 2021, the all-terrain vehicle will be officially put into the market, which will bring good revenue to the company, with a sales volume of 20,000 units and a sales scale of 560 million yuan.

(4) Intelligent service robot: the business is gradually expanding, and the target market continues to advance
In 2021, the company’s service robots will officially enter the stage of commercialization, with sales revenue of more than 21 million yuan.

3. Continuous investment in R&D and upgrade of intellectual property protection
As of the end of the reporting period, the company has authorized 1,830 domestic patents, obtained 115 copyrights, 964 trademark rights, and 478 overseas authorized patents. In March 2022, the Beijing Municipal Science and Technology Commission recognized Ninebot (Beijing) Technology Co., Ltd., a wholly-owned subsidiary of the company, as “Beijing Design Innovation Center. After years of technological innovation and accumulation, the company has strong independent research and development capabilities. The technical level is in the leading position in the industry.

Main business

The company is an innovative enterprise focusing on the field of intelligent short-distance transportation and service robots. The company’s main business is the design, research and development, production, sales and service of various intelligent short-range mobile devices, adhering to the vision of “simplifying the movement of people and things, making life more convenient”. After years of deep cultivation and development in the professional field, the company has accumulated advantages in intelligent technology innovation, industrial design, supply chain management, brand establishment and other aspects. Two-wheeled vehicles, all-terrain vehicles, intelligent service robots and other categories of rich product structure.

Main Products and Services

(1) Intelligent electric balance car and scooter product series
According to the product form, the intelligent electric balance car can be divided into the No. 9 balance car series, the No. 9 balance car Nano, the intelligent electric one-wheeled balance car, and the intelligent electric balance wheel.

(2) Intelligent electric two-wheeled vehicle product series
In the field of electric two-wheelers, the company is committed to the development of domestic electric vehicle intelligence and global motorcycle electrification.

(3) All-terrain vehicle product series
The all-terrain vehicle has extremely high off-road performance and can be driven on off-road. It is also a vehicle that integrates practical, entertainment, sports and other multi-purpose functions.

(4) Service robot product series
Service robots have always been the focus of the company’s product areas. On the basis of the accumulation of intelligent electric balance car technology, the company independently develops service robot products and robot motion platforms.

(5) Other products
The company actively develops children’s products, and has successively released the No. 9 children’s bicycle, the No. 9 balance car Nano, and the No. 9 children’s electric scooter E series/C series/A series.

Industry situation

1. According to the report of the Boston Consulting Group, the global smart scooter market is expected to reach 50 billion US dollars, of which the European and American markets can reach 15 billion US dollars in 2025, and the Chinese market will reach 8 billion US dollars.

2. According to the “2022 White Paper on China’s Two-Wheeled Electric Vehicle Industry” released by iResearch, the cumulative sales of electric two-wheeled vehicles in China in 2021 will reach 41 million units. It is estimated that the sales of electric two-wheelers in China will reach 45 million units in 2022, with a year-on-year growth rate of 9.8%. Due to policy requirements such as energy conservation and emission reduction, carbon peaking, huge population and diversified green travel needs, timely distribution and shared motorcycles are growing. Under the influence of factors such as promotion, the electric two-wheeler market still has great growth potential.

3. According to the forecast of AlliedMarket, the global all-terrain vehicle market will reach a scale of 14.1 billion US dollars in 2025 with a compound annual growth rate of 7.8%.

4. Since 2016, the average annual growth rate of the global service robot market has reached 23.8%, and it is expected to reach US$12.526 billion in 2021. By 2023, the global service robot market is expected to exceed US$20.1 billion, and the market size of upstream and downstream related industries will also increase. Synchronized growth.

During the reporting period, the company’s operating income from outside China was 4,445,966,200 yuan, accounting for 48.61% of the company’s operating income, and international business accounted for a relatively high proportion.

Industry risk

The policy prohibits the risk of self-balancing vehicles and scooters on the road. Because the company’s main products, electric self-balancing vehicles and scooters, do not meet my country’s motor vehicle safety standards, and are not included in non-motor vehicle products.

In the directory, currently Beijing, Shanghai, Taiyuan, Nanjing, Ningbo, Guangzhou, Kunming, Fujian, Jiangsu, Changzhou, Shenzhen, Ganzhou, Jiujiang, Zhangye, Nanning, Yangquan City, Tianjin City, Hainan Province, Shaoyang City, Weifang City, Xuchang City, Chenzhou City, Shiyan City, Xi’an City, Zhangjiajie City, Xiamen Special Economic Zone, Wuhan City, Yangzhou City, Luliang City and other regions have restrictions on electric balance vehicles , regulations for electric scooters on the road.

Main operating conditions during the reporting period

During the reporting period, the company achieved operating income of 9,146,053,600 yuan, a year-on-year increase of 52.36%; realized a net profit attributable to shareholders of the listed company of 410,598,800 yuan, a year-on-year increase of 458.84%, and realized a net profit attributable to owners of the parent company after deducting non-recurring gains and losses. 256,187,100 yuan, a year-on-year increase of 399.76%.

At the end of the reporting period, the company’s total assets were 7.672 billion yuan, a year-on-year increase of 17.00%, and the owner’s equity attributable to the parent company was 4.275 billion yuan, a year-on-year increase of 15.64%.

The subsidy for the establishment of stores for the electric two-wheeled vehicle series offset the operating income, resulting in a year-on-year decrease in gross profit margin. [Shouldn’t the subsidy be considered an expense? 】

Description of main business by industry, product, region and sales model

By product

(1) Electric balance car & electric scooter achieved operating income of RMB 6,405,471,500 during the reporting period, a year-on-year increase of 21.72%, accounting for 70.04% of the total operating income. This series of products accounted for a relatively high proportion of operating income and maintained continuous and steady growth during the reporting period.

(2) Electric two-wheeled vehicles & electric treadmills achieved operating income of RMB 1,334,345,600 during the reporting period, a year-on-year increase of 208.84%, accounting for 14.59% of the total operating income. Mainly, the company actively expands sales channels to achieve rapid sales growth with its unique product design.

The company’s main sales customers

The sales of the top five customers amounted to RMB 4,139,259,000, accounting for RMB 2,952,944,600 in total annual sales, accounting for 32.29% of total annual sales. (Xiaomi Group)

significant equity investment

In order to cooperate with the company’s strategic development plan, promote the company’s development in the fields of intelligent short-distance transportation, artificial intelligence, Internet of Things, robotics, etc.

Strategic layout in the field of cutting-edge technology, integrating upstream and downstream resources of the industrial chain, enhancing industrial synergy, exploring and developing new business growth points, enhancing the company’s sustainable competitiveness and industry leadership, expanding the company’s investment channels, and obtaining investment returns, 2021 On March 31, the company’s wholly-owned subsidiary No. 9 (Hainan) Holdings Co., Ltd. (hereinafter referred to as “Hainan Holdings”) signed an agreement with Qianhai Qingyan Huashan Investment Management (Shenzhen) Co., Ltd. (hereinafter referred to as “Qingyan Huashan Investment”). “Hainan Yilai Venture Capital Center Partnership (Limited Partnership) Limited Partnership Agreement” to jointly establish Hainan Yilai Venture Capital Center Partnership (Limited Partnership) (hereinafter referred to as “Hainan Yilai Fund”). Hainan Yilai Fund has a total investment of RMB 201 million, of which Hainan Holdings, as a limited partner, has subscribed for a capital contribution of RMB 200 million, which is invested with the company’s own funds. Hainan Yilai Fund will mainly invest in equity investment in high-tech projects with high growth potential in cutting-edge technology fields such as intelligent short-distance transportation, artificial intelligence, Internet of Things, robotics and other frontier technology fields, as well as venture capital fund shares in related fields. As of December 31, 2021, Hainan Holdings has made a paid-in capital contribution of RMB 200 million, and the paid-in shareholding ratio is 99.75%.

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