Financial Performance - For the year ended December 31, 2020, the reported loss attributable to shareholders was RMB 235.3 million, an increase of approximately 211% compared to the reported loss of RMB 75.6 million in 2019[16]. - The basic and diluted loss per share for continuing operations was RMB 21.68, compared to RMB 7.20 in 2019, while the total loss per share (including discontinued operations) was RMB 24.15, compared to RMB 8.05 in 2019[16]. - The company's total comprehensive loss attributable to shareholders increased from approximately RMB 75.6 million for the year ended December 31, 2019, to about RMB 235.3 million for the year ended December 31, 2020[78]. - For the year ended December 31, 2020, the company's revenue decreased by approximately RMB 130.2 million or 42.6% to about RMB 175.3 million from approximately RMB 305.5 million for the year ended December 31, 2019[66]. - The plywood product sales revenue decreased by approximately RMB 131.6 million or 43.1% to about RMB 173.9 million for the year ended December 31, 2020[66]. - The gross loss increased from approximately RMB 24.3 million for the year ended December 31, 2019, to a gross loss of RMB 113.8 million for the year ended December 31, 2020, with a gross loss margin rising from about 7.9% to approximately 64.9%[69]. - The net impairment loss on financial assets increased from approximately RMB 11.4 million for the year ended December 31, 2019, to about RMB 61.9 million for the year ended December 31, 2020[75]. - The total loss for the year ended December 31, 2020, was approximately RMB 24.0 million, compared to a loss of RMB 8.0 million for the year ended December 31, 2019, reflecting a significant decrease in revenue of about RMB 10.0 million[79]. Business Operations - In 2020, the company faced significant challenges due to COVID-19, leading to factory closures and production halts, but capacity was restored to reasonable levels by March 2020[17]. - In Q2 2020, the company experienced a decrease in demand from export customers for plywood products, resulting in negative profit margins, but management implemented customized solutions to retain key customers[17]. - The company anticipates continued operating losses for the fiscal year 2021, although signs of recovery are emerging as plywood product prices have successfully increased, reducing negative profit margins[17]. - In the second half of 2020, the company decided to close its wood biomass pellet business and lease out some factories to generate rental income, streamline operations, and save costs[17]. - The company has terminated its wood biomass pellet operations due to rising production and delivery costs, as well as decreased demand influenced by local government measures promoting natural gas usage[49]. - The company plans to enhance plywood sales prices and gross margins while exploring opportunities in the mid-to-low-end plywood market and furniture supply chain development[58]. - The company is focusing on optimizing and diversifying its plywood business to capitalize on domestic opportunities in China as demand recovers[60]. Financial Position and Liquidity - The current ratio as of December 31, 2020, was approximately 1.6, down from approximately 4.6 as of December 31, 2019, indicating a decline in liquidity[88]. - The debt-to-equity ratio increased to approximately 34.2% as of December 31, 2020, compared to 14.8% as of December 31, 2019, primarily due to a decrease in equity resulting from the net loss[89]. - Cash and cash equivalents decreased from approximately RMB 51.0 million as of December 31, 2019, to approximately RMB 5.8 million as of December 31, 2020, mainly due to property, plant, and equipment purchases of approximately RMB 16.1 million[86]. - Trade receivables decreased from approximately RMB 174.5 million as of December 31, 2019, to approximately RMB 88.9 million as of December 31, 2020, primarily due to reduced revenue and an additional impairment provision of approximately RMB 73.6 million[84]. - Inventory decreased from approximately RMB 82.7 million as of December 31, 2019, to approximately RMB 47.2 million as of December 31, 2020, mainly due to a reduction in estimated selling prices and a decrease in work-in-progress and finished goods[83]. Corporate Governance - The board consists of eight directors, including five executive directors and three independent non-executive directors[170]. - The company has implemented corporate governance principles in accordance with the applicable code provisions[169]. - The board of directors confirmed compliance with the corporate governance code regarding director training, with all directors participating in ongoing professional development[174]. - The audit committee, chaired by Mr. Guo Weicheng, consists of independent non-executive directors and serves as a communication bridge among directors, external auditors, and management[181]. - The remuneration committee, led by Ms. Lao Yuyi, is responsible for reviewing and approving the remuneration policies for all directors and senior management[182]. - The nomination committee, chaired by Mr. Cao Zhaobai, reviews the policy for nominating directors and ensures compliance with corporate governance standards[186]. - The risk management committee, chaired by Mr. Zhang Ayang, reviews the group's risk management and internal control systems[188]. Future Plans and Financing - The company plans to raise approximately HKD 54.5 million (approximately RMB 45.9 million) through the issuance of 779,520,000 new shares at a price of HKD 0.07 per share[97]. - The proceeds from the public offering will be allocated as follows: HKD 20 million for creditor payments, HKD 33.5 million (approximately RMB 28.3 million) for repaying bank loans, and HKD 1 million for working capital[97]. - The group aims to complete the creditor plan by the third quarter of 2021 and the proposed restructuring by the end of 2021[98]. - The company is actively seeking additional financing from major shareholders to meet short-term liquidity needs[98]. - The company plans to utilize its properties for long-term leasing to generate recurring rental income following the termination of the wood biomass pellet business[65]. Employee and Shareholder Information - The total salary and related costs provided to employees amounted to approximately RMB 12.2 million for the year ended December 31, 2020[139]. - As of December 31, 2020, the company had 153 employees in Hong Kong and mainland China[139]. - Major shareholders hold significant interests, with Mr. Kuo Ming Choi holding 30.77% of the total share capital[158]. - The company has a stock option plan that allows for the issuance of up to 72 million shares, with a maximum of 1% of issued shares allowed to be granted in any 12-month period[152].
大森控股(01580) - 2021 - 年度财报