Financial Performance - The total electricity generation from solar power plants owned by the company in China for the year was approximately 867,275 MWh[27]. - Revenue from continuing operations in solar power generation in China fell by RMB 254.2 million or 28.1% to RMB 650.2 million in 2021, primarily due to the absence of gains from the sale of target companies recognized in 2020[38]. - The gross profit from continuing operations decreased by RMB 151.1 million or 33.7% to RMB 296.8 million in 2021[41]. - Other income from continuing operations decreased by RMB 8.3 million or 18.4% to RMB 36.9 million in 2021, mainly due to a reduction in interest income from electricity subsidies[42]. - The loss from continuing operations increased by RMB 268.6 million or 44.5% to RMB 872.5 million in 2021[56]. - The financial expenses for continuing operations decreased by RMB 184.2 million or 23.7% to RMB 592.9 million in 2021, primarily due to a reduction in interest on bank and other borrowings[50]. - The company reported a loss of RMB 745,613,000 for the year ended December 31, 2021, with total equity attributable to owners of the company recording a deficit of RMB 974,319,000[135]. - Current liabilities exceeded current assets by RMB 979,616,000 as of December 31, 2021, a decrease of RMB 2,059,444,000 compared to RMB 3,039,060,000 on December 31, 2020[135]. - The company faced significant challenges in obtaining additional financing due to its net current liabilities and capital deficit situation[135]. - The auditor issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2021, due to uncertainties regarding the company's ability to continue as a going concern[135]. Asset Sales and Transactions - The company sold 100% equity of Jingneng Photovoltaic (Jiangxi) Co., Ltd. for RMB 670 million, which was approved by shareholders on July 13, 2021[23]. - The company completed the sale of 7 solar power plants in China to China Power Investment Xinjiang Energy Chemical Group for an undisclosed amount, with the agreement approved on December 13, 2021[14]. - The company completed the sale of its LED business segment, which is now classified as discontinued operations[23]. - The company completed the sale of 11 target companies for a total consideration of RMB 641.42 million in 2019[70]. - The sale of six target companies was completed for a total consideration of RMB 181.14 million in 2020[75]. - The company entered into a conditional sale agreement for the 100% equity of Jinko Solar (Jiangxi) Co., Ltd. for RMB 670 million[77]. - The company completed the transfer of shares for three target companies from the first sale agreement, with the total consideration amounting to RMB 537.6 million[82]. - The second sale agreement involved the sale of 100% equity in two target companies for a total consideration of RMB 414.7 million[83]. - The company announced a third sale agreement involving the sale of 100% equity in a target company for a total consideration of RMB 14.4 million[88]. - The company is set to sell 100% equity in four target companies for a total consideration of RMB 889.6 million under the 2022 sale agreement[94]. Corporate Governance - The company has been focusing on improving its corporate governance practices to enhance overall performance and accountability[106]. - The board of directors is responsible for overseeing the company's strategic development and financial performance[109]. - The company has adopted a standard code of conduct for securities trading by its directors, ensuring compliance with necessary standards[110]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balance of power and authority[114]. - All independent non-executive directors have extensive academic, professional, and industry expertise, providing independent opinions on the group's business strategy and performance[115]. - The board held a total of 7 meetings during the year, with all executive directors attending all meetings[120]. - Independent non-executive directors serve a term of three years, with two directors having served for over nine years, yet still considered independent[117]. - The company provides training for all directors to ensure they understand their responsibilities and comply with corporate governance codes[119]. - The board has established committees including the Audit Committee, Remuneration Committee, and Nomination Committee, with defined roles and responsibilities[124]. - Directors are required to be re-elected at least every three years during the annual general meeting[123]. Risk Management - The company has established a two-part enterprise risk management framework, consisting of a risk management structure and risk management procedures[153]. - The management is responsible for identifying and continuously monitoring strategic, operational, financial, reporting, and compliance risks[157]. - The internal audit function is outsourced to a third-party professional internal control consultant to ensure independence in the review of risk management procedures[158]. - The company has implemented a clear internal control policy and procedures to delineate responsibilities and accountability across departments[162]. - The board has reviewed the risk management and internal control procedures, considering resources, staff qualifications, experience, and training adequacy[164]. - Management has identified significant risk factors and regularly monitors changes, with a risk register in place to assess potential impacts and likelihood[165]. - An independent review of the internal audit function was completed, covering transactions from January 1, 2021, to December 31, 2021, with recommendations to be followed up by management[166]. - The audit committee and board have not identified any deficiencies in the risk management and internal control systems[167]. - The internal control system was deemed effective as of December 31, 2021, with ongoing enhancements planned to align with industry best practices[168]. Employee and Management - The company has 1,101 employees as of December 31, 2021, including 1,008 from discontinued operations[90]. - The company’s executive director, Mr. Wang Yu, has over 24 years of management experience in various financial and investment roles[181]. Future Outlook - The company aims to become a leading global provider of low-carbon energy solutions by optimizing its asset and liability structure[14]. - The company is actively seeking various clean energy resources to establish a solid foundation for its growth as a leading low-carbon energy solutions provider[24]. - The company expects that if proposed measures are successfully implemented, the uncertainty regarding going concern may be removed in the auditor's report for the year ending December 31, 2022[142]. - The company is currently negotiating with creditors regarding a potential one-time early repayment and a proposal to waive part of the outstanding principal and all accrued interest[145].
顺风清洁能源(01165) - 2021 - 年度财报