Financial Performance - Revenue for the year ended December 31, 2021, was RMB 2,936,604 thousand, a decrease of 25.3% from RMB 3,931,492 thousand in 2020[12] - The company reported an operating loss of RMB (610,213) thousand, compared to an operating profit of RMB 227,416 thousand in the previous year, representing a decline of 368.3%[12] - The net loss attributable to shareholders was RMB (717,191) thousand, a significant drop from a profit of RMB 49,660 thousand in 2020, marking a decrease of 1,544.2%[12] - Basic loss per share was RMB (13.54), down from earnings of RMB 0.94 per share in 2020, reflecting a decline of 1,540.4%[12] - Gross profit for 2021 was approximately RMB 363 million, down 69.2% from RMB 1.180 billion year-on-year[28] - Shareholders recorded a loss of approximately RMB 717 million for the year[28] - The gross profit margin fell to 12.4%, down 17.6 percentage points from 30.0% in 2020[15] - The EBITDA for the year was approximately RMB -432 million, compared to RMB 408 million in the previous year, resulting in an EBITDA margin of -14.7%[75] Assets and Liabilities - Total non-current assets increased by 17.9% to RMB 4,998,483 thousand from RMB 4,240,975 thousand in 2020[12] - Current liabilities rose by 50.7% to RMB 7,793,243 thousand, compared to RMB 5,170,292 thousand in the previous year[12] - Total liabilities increased by 6.4% to RMB 8,001,514 thousand from RMB 7,517,750 thousand in 2020[12] - Total equity decreased by 16.6% to RMB 3,746,396 thousand from RMB 4,494,627 thousand in the previous year[12] - The total assets as of December 31, 2021, were approximately RMB 11.748 billion, with current assets accounting for about 57.5% of total assets, a decrease of RMB 1.021 billion compared to the previous year[81] - The total liabilities amounted to approximately RMB 8.002 billion, with current liabilities making up about 97.4% of total liabilities, an increase of RMB 2.623 billion from the previous year[82] - The equity total was approximately RMB 3.746 billion, a decrease of RMB 749 million compared to December 31, 2020, with a basic and diluted loss per share of RMB 0.1354[83] - As of December 31, 2021, the total borrowings and USD bonds amounted to approximately RMB 5.146 billion, an increase of RMB 661 million from December 31, 2020[77] Operational Highlights - In 2022, the company signed new overseas drilling equipment orders totaling RMB 1.626 billion, an increase of 122% compared to 2020[17] - The electric fracturing service business secured new orders worth RMB 800 million, with a year-on-year increase in operational volume of 24%[17] - The offshore wind power segment achieved revenue of RMB 600 million, successfully delivering the largest and heaviest Qingzhou III booster station in Asia[17] - The company completed over 5,400 fracturing operations during the period, a 24% increase year-on-year, with 4,700 operations related to shale gas[40] - The company achieved sales of RMB 1.019 billion from equipment and engineering services in the fracturing segment, a decrease of 24% compared to the previous year[40] - The company has an order backlog of approximately RMB 1.675 billion for drilling and related products as of February 28, 2022[37] - The company has an order backlog of approximately RMB 290 million for fracturing equipment and services as of February 28, 2022[42] Workforce and Management - The company reduced its workforce to 2,838 employees, a decrease of 25.8% from the beginning of the year, while increasing the proportion of professional technical personnel by 4%[22] - The company appointed Jiang Fuhua as President starting January 1, 2022, who has extensive experience in project and research management[102] Corporate Governance - The company reported a commitment to high levels of corporate governance to enhance shareholder value and accountability[108] - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its governance practices[110] - The board emphasizes the importance of good corporate governance practices in maintaining and enhancing shareholder value and investor confidence[109] - The company has a diverse board with independent non-executive directors bringing extensive experience from various sectors, including finance and management[98][99][100] - The company is focused on maintaining effective internal controls and shareholder accountability as part of its governance framework[108] - The company has a strong emphasis on risk management and compliance within its corporate governance practices[105] - The board includes members with advanced degrees in finance and economics, enhancing its strategic decision-making capabilities[99][102] - The company has a dedicated legal and compliance team to oversee governance and regulatory matters[105] Risk Management - The company has established a risk management framework based on a "three lines of defense" model to enhance internal controls and risk management effectiveness[178] - The risk management and internal control systems have been reviewed and deemed effective and adequate by the board and audit committee as of December 31, 2021[186] - The company has made significant improvements in risk management, including the establishment of a risk management evaluation mechanism[182] - The internal audit department conducts regular oversight and special inspections on significant projects to ensure compliance and effective management[188] - The company has implemented a whistleblowing channel for employees to report fraudulent activities directly to the audit department[190] Shareholder Rights - Shareholders' rights are protected by presenting independent resolutions for significant matters at the shareholders' meeting[195] - Special shareholders' meetings can be convened upon request by shareholders holding at least 10% of the paid-up capital[196] - New proposals at the shareholders' meeting must be submitted in writing according to the company's procedures[198] - Shareholders must submit inquiries to the board in written form[199] - The company generally does not handle verbal or anonymous inquiries[200]
宏华集团(00196) - 2021 - 年度财报