SSI(SZ:002742)2025-04-25 18:10Financial Performance - The company's operating revenue for 2024 was ¥1,195,718,179.72, a decrease of 41.10% compared to ¥2,030,233,466.71 in 2023[6]. - The net profit attributable to shareholders for 2024 was -¥650,130,617.85, representing a decline of 43.82% from -¥452,046,680.05 in 2023[6]. - The basic earnings per share for 2024 was -¥1.50, down 42.86% from -¥1.05 in 2023[6]. - The total assets at the end of 2024 were ¥2,626,041,333.84, a reduction of 31.63% from ¥3,841,158,437.01 at the end of 2023[6]. - The company's cash flow from operating activities for 2024 was -¥47,018,889.30, an improvement of 8.87% compared to -¥51,594,597.21 in 2023[6]. - The company's net assets attributable to shareholders at the end of 2024 were -¥411,810,939.89, a decrease of 219.27% from ¥345,287,512.91 at the end of 2023[6]. - The company's total revenue for 2024 was ¥1,195,718,179.72, representing a year-on-year decrease of 41.10% from ¥2,030,233,466.7 in 2023[42]. - The construction materials and chemicals segment generated ¥544,051,627.22, accounting for 45.50% of total revenue, down 47.53% from ¥1,036,797,546.46 in 2023[45]. - The pharmaceutical segment contributed ¥625,260,185.91, which is 52.29% of total revenue, reflecting a decrease of 35.31% from ¥966,477,588.69 in 2023[45]. - Domestic revenue was ¥953,817,087.21, making up 79.77% of total revenue, a decline of 45.36% from ¥1,745,760,779.90 in 2023[45]. Internal Control and Audit - The company reported a significant internal control deficiency in areas such as related party transactions, fund management, and information disclosure, which has affected the reliability of its financial reporting[4]. - The company's financial report has received a qualified audit opinion from Tianjian Accounting Firm, indicating potential issues in financial accuracy[4]. - The company's financial reporting and internal control deficiencies have been detailed in the 2024 Internal Control Self-Assessment Report[4]. - The internal control system has been improved to adapt to changing external environments and internal management requirements[112]. - San Sheng Co. failed to maintain effective internal control over financial reporting as of December 31, 2024, according to the internal control audit report[116]. - The internal control audit report issued by the accounting firm contains a negative opinion due to significant internal control deficiencies related to related party transactions and fund management[117]. - The company reported two significant defects in financial reporting internal controls during the evaluation period[115]. Business Strategy and Development - The company has expanded its business into the pharmaceutical manufacturing sector, acquiring 100% of Baikang Pharmaceutical in June 2016 and 60% of Chunrui Chemical in June 2017[19]. - The pharmaceutical manufacturing industry is a key focus for the company, aligning with national policies aimed at enhancing healthcare and economic development[32]. - The company has completed a full industry chain layout in pharmaceutical research and development, intermediates, active pharmaceutical ingredients, and formulations through diversification strategies and acquisitions[33]. - The company operates primarily in the construction materials sector, heavily influenced by macroeconomic conditions and infrastructure investments[30]. - The company's diversified strategy has effectively reduced operational risks associated with macroeconomic cycles, enhancing overall business stability[36]. - The company has established a dual-driven business model of "construction materials and chemicals + pharmaceutical manufacturing," effectively reducing the impact of raw material price fluctuations[41]. - The company aims to strengthen its innovation capabilities and improve economic efficiency and core competitiveness through ongoing research and development efforts[44]. Environmental Compliance - San Sheng Co. strictly complied with multiple environmental protection laws and standards in 2024, including the Air Pollution Prevention and Control Law and the Water Pollution Prevention and Control Law[120]. - The company reported a total emission of 2.689 tons of particulate matter, which is within the regulatory limits set by the relevant standards[121]. - The company achieved a total phosphorus discharge of 2.22 t/a, adhering to the standard of ≤40 mg/L[123]. - The company has set a target to reduce total nitrogen emissions to 1.36 t/a in the upcoming year[123]. - The company plans to enhance its wastewater treatment capacity to further lower COD levels to 21.0 t/a[123]. - The company is focusing on improving its air quality management by reducing VOCs emissions by 10% in the next fiscal year[123]. - The company has implemented automatic online monitoring systems for waste gas and wastewater treatment facilities to ensure compliance with national and industry standards[127]. Governance and Management - The company has maintained a stable leadership team with no resignations or dismissals reported during the current term[89]. - The current board includes professionals with backgrounds in engineering, finance, and management, enhancing the company's strategic capabilities[90][92][93]. - The independent directors bring diverse expertise, contributing to robust governance and strategic oversight[90][91]. - The company is committed to maintaining transparency and accountability in its operations, as evidenced by the structured reporting of management changes[88]. - The total pre-tax remuneration for directors, supervisors, and senior management in the reporting period amounted to CNY 597.46 million[99]. - The remuneration for the chairman, Yan Huan, was CNY 48.28 million, while the total remuneration for the general manager, Zhang Zhiqiang, was CNY 115.88 million[98]. - The company has established a performance-oriented compensation system, including base salary, performance bonuses, and incentives to motivate employees[107]. Legal and Financial Issues - The company is facing significant financial pressure and has applied for bankruptcy reorganization[79]. - The company is involved in a legal dispute regarding a loan of 100 million, with a total repayment obligation of 61.485 million, including principal and interest[153]. - The company has been under administrative supervision multiple times since 2020 due to non-operating fund occupation and irregular guarantees[139]. - The company has incurred a financial cost of RMB 38.78 million due to the occupation of funds calculated until November 5, 2024[139]. - The company is currently in discussions regarding the repayment strategy for the outstanding loan[138]. - The company has recognized a provision for expected liabilities amounting to RMB 1,524.04 million related to SSC Construction PLC's debts[139]. - The company has been involved in multiple legal disputes regarding loans and guarantees, impacting its financial position and liquidity[195].