Event: the company released 2021 annual report and 2022 quarterly report, 2021 income 4.49 billion yuan (year-on-year + 37.37%), return net profit 136 million yuan (year-on-year-24.67%), 2021Q4 realized income 1.421 billion yuan (year-on-year + 79.34%), return mother net profit 28 million yuan (year-on-year + 152.08%), 2022Q1 income 1.046 billion yuan (year-on-year + 23.76%), home net profit 45 million yuan (year-on-year + 58.80%).

Comments: high revenue growth of photovoltaic brackets, automotive connectors turn losses into profits. In terms of photovoltaic brackets, with Yueqing Yihua New Energy as the caliber, revenue in 2021 is about 2.336 billion yuan (year-on-year + 71.93%) and net profit is about 115 million yuan (year-on-year + 4.71%). Gross profit margin and net profit margin fell by 5.01pct and 3.16pct to 10.64% and 4.92%, respectively. The high increase in photovoltaic support revenue is in line with expectations, mainly due to the demand boom in the photovoltaic tracking support industry and the development of the company's major customers; the gross profit margin is partly affected by the rise in the price of raw materials, and the Q3 / Q4 gross profit margin has improved significantly in 2021 after the price renegotiation in May 2021. In terms of connectors, the revenue of connectors (including a small number of other businesses) in 2021 is about 2.234 billion yuan (+ 14.85% compared with the same period last year), and gross profit margin has declined due to the rise in raw materials. Among them, benefiting from the booming demand for automotive connectors and the volume of customer orders, according to Suzhou Yuanye caliber, the company's automotive connector revenue is about 77 million yuan (year-on-year + 105.03%), turning losses into profits (net profit reaching 4.07 million yuan), and net profit margin rose to 5.31%. In 2022, Q1 has an income of 1.046 billion yuan (year-on-year + 23.76%) and a net profit of 45 million yuan (+ 58.80% compared with the same period last year). The high growth of revenue performance is in line with expectations, and both gross profit margin and net profit margin have increased. Hunan Yihua, a loss-making subsidiary of Q2 in 2022, is expected to no longer be included in the statements of listed companies, which will have a positive impact on Q2 performance.

Risk tips: intensified competition in the industry, orders from major customers are not as expected, policy adjustment risks, raw material prices have risen sharply.