ST富润(600070) - 2021 Q4 - 年度财报

Financial Performance - In 2021, the company's operating revenue was ¥1,312,128,320.40, a decrease of 56.82% compared to ¥3,039,071,246.81 in 2020[22] - The net profit attributable to shareholders was -¥565,116,320.26, compared to -¥433,266,113.23 in the previous year[22] - The net cash flow from operating activities was -¥284,474,638.58, significantly lower than -¥44,592,224.67 in 2020[22] - The total assets decreased by 26.33% to ¥2,717,112,418.52 from ¥3,688,334,850.83 in 2020[22] - The net assets attributable to shareholders were ¥1,778,783,146.10, down 24.92% from ¥2,369,110,646.20 in the previous year[22] - The company reported a revenue of CNY 1,312.13 million in 2021, a decrease of 56.82% compared to the previous year[31] - The net profit attributable to shareholders was CNY -565.12 million, reflecting a significant decline from the previous year's profit[31] - The basic earnings per share for 2021 was CNY -1.12, compared to CNY -0.86 in 2020[23] - The weighted average return on equity decreased to -27.28% from -16.65% in the previous year, a drop of 10.63 percentage points[23] - The company's main business revenue decreased by 56.72% to CNY 130,092,890.00, primarily due to a decline in internet marketing services[53] - The overall performance indicates a strategic shift away from mask sales and traditional assets, emphasizing growth in information services and technology[54] Subsidiary Performance - Subsidiary Kasei Technology achieved revenue of 221.17 million yuan, a year-on-year increase of 319.21%, and net profit of 18.82 million yuan, an increase of 35.72 million yuan compared to the previous year[32] - Subsidiary Furen Shulian reported revenue of 5.31 million yuan, a year-on-year growth of 159.81%, while net profit was -3.25 million yuan, significantly reducing losses compared to the previous year[33] - The live e-commerce subsidiary, Tai Shu Yi Zhi, generated revenue of 27.67 million yuan but reported a net loss of 5.72 million yuan[33] - The total amount of accounts receivable amounted to RMB 1,215.19 million, with a provision for bad debts of RMB 255.94 million, resulting in a net book value of RMB 959.26 million[190] Investment and Strategic Focus - The company plans to increase investment in 5G communication-focused internet marketing to adapt to market changes[31] - The company is focusing on expanding its market presence in the fields of internet marketing and blockchain technology, leveraging its proprietary technologies[40] - The company is actively improving corporate governance and has initiated a share transfer plan to introduce strategic investors, with 1.7 billion yuan received so far from the transfer of 9% of shares[36] - The company is committed to enhancing operational governance and internal audit functions to ensure healthy operations[81] - The company aims to accelerate the exit from traditional internet marketing business to facilitate business transformation[80] Corporate Governance - The company is actively upgrading its monitoring platform to assist regulatory authorities in identifying illegal activities in live streaming[44] - The company has established a long-term mechanism to prevent the controlling shareholder from occupying the company's funds and harming the interests of the listed company[89] - The company strictly follows legal regulations for information disclosure, ensuring that disclosures are true, accurate, complete, timely, and fair[90] - The board consists of 9 directors, including 3 independent directors, meeting the requirements of the Company Law and relevant guidelines[88] - The supervisory board has 5 supervisors, including 2 employee representatives, complying with legal requirements[88] Risk Management - The company has highlighted various industry and market risks in its management discussion[10] - The audit report issued by Tianjian Accounting Firm includes emphasis on significant uncertainties regarding the company's ability to continue as a going concern[5] - The company has a significant risk related to accounts receivable, with a large balance that may not be recoverable due to clients' financial difficulties[82] - The company reported a fair value change gain of RMB 15.68 million on its financial asset holdings in Gansu Shangfeng Cement Co., Ltd., which had a book value of RMB 561.96 million as of December 31, 2021[186] Employee and Compensation - The company has implemented a restricted stock incentive plan, granting 15,225,386 shares at a price of RMB 3.29 per share[125] - The total compensation for the chairman, Zhao Linzhong, was reported as 114.60 million CNY for the year[95] - The total remuneration for directors, supervisors, and senior management amounted to 12.27 million yuan[104] - The company has established a salary and performance evaluation system for senior management, linking compensation to company performance[128] Legal and Compliance - The company received a warning letter from the China Securities Regulatory Commission regarding the integrity of its executives[151] - The company has not yet received full payment for the performance compensation from shareholders, with a shortfall of 83.6164 million yuan for 2019[84] - The board will continue to urge the promisor to fulfill the compensation obligations for the 2019 performance commitment, and if necessary, will take legal action to protect the interests of the company and all shareholders[85] - The company has not initiated recovery actions against performance commitments from Jiang Yougui and Fu Haipeng, leading to uncertainty regarding the actual recovery amounts[187] Future Outlook - The company plans to continue focusing on opportunities in 5G user development and government digital reform[81] - The company is in the process of transferring 9% of its shares, which may lead to a change in control, with 1.7 billion yuan received so far[83] - The company has faced delays in the registration of a new data technology company due to the slow progress of introducing strategic investors[83]