Financial Performance - For the fiscal year ending December 31, 2021, the automotive parts business generated sales revenue of approximately RMB 226 million, with evaporators, condensers, and compressors contributing approximately RMB 40 million, RMB 21 million, and RMB 145 million respectively[14]. - The supply chain management business, which commenced operations in March 2021, reported revenue of approximately RMB 101 million for the fiscal year ending December 31, 2021[15]. - The company reported a revenue of approximately RMB 32.7 million for the year ended December 31, 2021, a decrease of about RMB 31.1 million or 48.7% compared to RMB 63.8 million in the same period last year[28]. - The company recorded a loss attributable to owners of the company of approximately RMB 18.6 million, an increase of about RMB 13.4 million compared to a loss of RMB 5.2 million in the previous year[17]. - The group's gross profit for the year ended December 31, 2021, was approximately RMB 5.0 million, a decrease of about RMB 4.6 million compared to RMB 9.6 million for the year ended December 31, 2020, with a gross margin of approximately 15.2%[31]. - Other income, gains, and losses for the year ended December 31, 2021, were approximately RMB 4.5 million, a decrease of about RMB 7.5 million from RMB 12.0 million for the year ended December 31, 2020[33]. - The impairment losses on trade receivables, other receivables, and other assets increased to approximately RMB 5.7 million for the year ended December 31, 2021, from RMB 0.6 million for the year ended December 31, 2020[34]. - Selling and distribution costs decreased by approximately 30.0% to about RMB 1.4 million for the year ended December 31, 2021, compared to RMB 2.0 million for the year ended December 31, 2020[35]. - Administrative expenses decreased by approximately 20.5% to about RMB 20.6 million for the year ended December 31, 2021, from RMB 25.9 million for the year ended December 31, 2020[36]. - The group reported a loss attributable to owners of the company of approximately RMB 18.6 million for the year ended December 31, 2021, compared to a loss of RMB 5.2 million for the year ended December 31, 2020[40]. - The net current assets decreased from approximately RMB 134.4 million as of December 31, 2020, to approximately RMB 102.3 million as of December 31, 2021[42]. - Capital expenditures for the year ended December 31, 2021, were approximately RMB 7.3 million, significantly lower than RMB 49.1 million for the year ended December 31, 2020[47]. Business Strategy and Development - The company aims to expand its market share in the Yangtze River Delta region and enhance the influence of the "Shuanghua" brand across various industry sectors[8]. - The company is focusing on integrating resources and optimizing internal personnel structures to develop a high-standard, intelligent, one-stop supply chain service platform[8]. - The company plans to explore new development opportunities and profit growth points through acquisitions, investments, joint ventures, and strategic alliances in areas such as computing services, energy conservation, environmental protection, and innovative technologies[9]. - The company is committed to adjusting its automotive parts business structure to mitigate risks and focus on higher value-added and profitable products[14]. - The company is actively pursuing a diversified business strategy to maximize asset and business efficiency amid a complex international and domestic environment[9]. - The company aims to enhance the reputation of its "Shuanghua" cold chain brand by expanding its supply chain and urban distribution services, particularly in the Yangtze River Delta region[22]. - The company intends to diversify its business by expanding into other potential goods, services, or technology supply chain services through acquisitions, investments, or strategic alliances[26]. - The company is committed to continuously assessing market conditions and adjusting its strategies and business plans to achieve sustainable development[20]. Supply Chain Management - The company has successfully established its supply chain management entity, Shanghai Shuanghua Supply Chain Management Co., Ltd., and obtained the necessary operational certifications for food storage and transportation services[15]. - The company is leveraging its expertise in ventilation and refrigeration systems to enhance its supply chain management services[15]. - The company is focusing on the layout of refrigerated vehicles and special vehicle businesses to create operational synergies and seize opportunities in the cold chain logistics sector[23]. - The company has obtained food operation and road transport operation permits, enabling it to expand its food supply and urban distribution services[22]. Environmental and Social Responsibility - The company is committed to environmental sustainability and promotes green practices within its operations[78][79]. - The company has adopted ESG reporting principles, focusing on materiality, quantification, balance, and consistency in its disclosures[171][172]. - The company actively engages in social welfare activities, contributing to balanced social development[175]. - The company prioritizes high-quality products and services, supply chain management, and employee development as critical factors for sustainable growth[181]. - The company has implemented measures to improve energy efficiency and reduce emissions through technological upgrades in production processes[174]. - The company is committed to continuous improvement in environmental and social performance for the benefit of future generations[175]. - The company generated approximately 3,043,716 kWh of electricity in 2021, a significant increase from 715,520 kWh in 2020, reflecting the operational commencement of its cold storage and cold chain business[193]. - The total greenhouse gas emissions amounted to approximately 303.6 tons of CO2 equivalent, with an emission density of about 92.9 kg CO2 equivalent per ten thousand yuan of revenue[188]. - The wastewater treatment facility has a processing capacity exceeding 100 tons per day, ensuring compliance with water quality standards set by relevant authorities[187]. - The company produced approximately 14.6 tons of solid waste from manufacturing processes, which includes scrap materials and defective products, all managed according to regulatory standards[189]. - The company’s cleaning wastewater discharge is approximately 0.91 tons per day, while the gas inspection wastewater discharge is about 0.73 tons per day[183]. - The particulate matter emission concentration from the welding process is approximately 6.05 mg/m3, which complies with the national air pollution discharge standards[185]. - The company has implemented energy management measures to enhance energy efficiency and reduce consumption in future operations[194]. - The company has established CO2 reduction targets and is promoting low-carbon commuting among employees[188]. - The company’s packaging usage decreased from 35 tons in 2020 to 5 tons in 2021, indicating a significant reduction in packaging material consumption[193]. - The company has engaged a qualified environmental technology firm to monitor pollutant emissions and ensure compliance with local environmental regulations[186]. - The company has set mid to long-term energy-saving and emission reduction targets in response to national energy conservation policies[196]. Corporate Governance - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse governance[92]. - The company has maintained high standards of corporate governance, adhering to all provisions of the Corporate Governance Code during the year[136]. - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors, with six board meetings held during the year[137]. - The company has established a nomination committee to identify suitable candidates for the board, ensuring a transparent and formal process for appointing new directors[144]. - The nomination committee held two meetings this year to review the composition of the board and senior management, with full attendance from its members[155]. - The company has a strong management team with over 20 years of experience in accounting, taxation, and auditing[134]. - The management team includes professionals with extensive backgrounds in finance and investment banking, enhancing strategic decision-making capabilities[131]. - The company is committed to transparency and accountability in its operations, as evidenced by its adherence to corporate governance codes[136]. - The board has authorized management to implement corporate strategies and policies, requiring management to report to the board before making decisions or commitments[151]. - The company ensures that all directors comply with the established code of conduct for securities trading[149]. - The chairman and CEO roles are not separated, with Mr. Zheng Ping holding both positions throughout the year[143]. - The board has established a diversity policy aimed at enhancing company performance and optimizing leadership structure, focusing on various diversity categories including gender, age, race, and professional experience[157]. - The board composition includes 3 executive directors, 1 non-executive director, and 3 independent non-executive directors, with a gender distribution of 3 males and 4 females[158]. - The company achieved measurable goals in board diversity, including at least one director with accounting qualifications and at least one director from a different gender[159]. - The remuneration committee held two meetings to review the compensation packages for executive directors and senior management[161]. - The audit committee conducted four meetings to review the company's financial reports and internal control systems, ensuring compliance with applicable accounting standards[162][164]. - The company has implemented a risk management and internal control system, which was reviewed twice a year, confirming its effective operation without significant violations[168]. Employee Relations - As of December 31, 2021, the company employed a total of 66 full-time employees, with a turnover rate of 52.9% for the year[200]. - The company recorded a turnover rate of 20.7% for employees under 30 years old and 22.9% for those aged 30 to 50[200]. - The company emphasizes the importance of employee health and safety as a key component of sustainable development, providing a fair, safe, and healthy working environment[175]. - The company encourages employees to conserve water in factories, offices, and dormitories[197].
双桦控股(01241) - 2021 - 年度财报