Financial Performance - In 2021, the company's revenue was RMB 1,209,271,000, a slight increase from RMB 1,186,824,000 in 2020, representing a growth of approximately 1.4%[12] - The company reported a loss attributable to owners of RMB 26,817,000 in 2021, compared to a loss of RMB 27,697,000 in 2020, indicating a reduction in losses[12] - The company reported a loss attributable to shareholders of approximately RMB 36.46 million in 2021, an increase of 45% compared to a loss of RMB 25.16 million in 2020[20] - The gross profit for 2021 was RMB 248.14 million, down 8% from RMB 269.01 million in 2020, resulting in a gross margin of 20.5%, a decrease of 2.1 percentage points[20] - Revenue for the reporting period was approximately RMB 1,209.27 million, an increase of about 2% compared to RMB 1,186.82 million in 2020[23] - Revenue from gas generation was approximately RMB 802.18 million, a decrease of about 9% from RMB 877.51 million in 2020[23] - Revenue from liquefied natural gas (LNG) supply and gas transportation services was approximately RMB 181.88 million, an increase of about 124% compared to RMB 81.22 million in 2020[23] - Other income for the reporting period was approximately RMB 10.82 million, an increase of about 504% from RMB 1.79 million in 2020, mainly due to more government subsidies received[23] Assets and Liabilities - Total assets decreased to RMB 2,406,049,000 in 2021 from RMB 2,524,718,000 in 2020, a decline of about 4.7%[12] - The total liabilities decreased to RMB 1,124,019,000 in 2021 from RMB 1,206,225,000 in 2020, a reduction of approximately 6.8%[12] - The company’s total equity stood at RMB 1,282,030,000 in 2021, down from RMB 1,318,493,000 in 2020, reflecting a decrease of about 2.7%[12] - The group's total cash and bank deposits as of December 31, 2021, were approximately RMB 297.55 million, a decrease from RMB 511.83 million in 2020[26] - The group's total bank and other borrowings as of December 31, 2021, were approximately RMB 615.44 million, compared to RMB 607.80 million in 2020[26] - The debt-to-equity ratio as of December 31, 2021, was 48%, an increase from 46% in 2020[26] - The current ratio as of December 31, 2021, was approximately 1.03, compared to 1.01 in 2020, indicating a stable liquidity position[26] Operational Developments - The company successfully developed and launched two new air separation units with a capacity of 40,000 Nm3/h each, enhancing production capacity significantly[10] - The company reported a successful R&D in rare gas products, filling market gaps in aerospace and high-end electronics sectors[10] - The company has initiated 6 new technology projects and filed 5 patents and 2 software reports in 2021, reflecting a strong commitment to innovation[10] - The company aims to enhance its market competitiveness by focusing on high-value products and expanding its strategic layout across China[10] - The company plans to deepen cooperation with Hebei Iron and Steel Group in the steelmaking industry, leveraging its production service experience[10] - The company plans to enhance its oxygen production capacity through the construction of air separation units at the Tangshan plant, funded by the proceeds from its IPO[19] - The company aims to develop high-value specialty gases, including electronic gases and medical gases, to diversify its product offerings and improve profitability[19] Market and Strategic Outlook - The production target for 2022 includes 15.86 million tons of iron, 17.48 million tons of steel, and 16.91 million tons of steel products[1] - The company expects to gradually increase its production capacity utilization rates in the coming years, driven by new construction and relocation of facilities[1] - The steel industry in China benefited from a strong economic environment in 2021, with the steel price index increasing by 34.53% year-on-year[1] - The company has a priority right to acquire industrial gas assets from Hebei Iron and Steel Group if they are offered for sale, which is a key growth strategy[19] Employee and Management Information - The group employed a total of 369 employees as of December 31, 2021, a slight decrease from 370 employees in 2020[32] - The total employee cost for the group was approximately RMB 54.04 million for the year, compared to RMB 40.04 million for the year ended December 31, 2020[32] - The management team includes experienced professionals with backgrounds in finance and engineering, contributing to operational and strategic decision-making[67] - The company plans to continue attracting and retaining skilled personnel through competitive compensation and professional development programs[32] Corporate Governance - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[43] - The company has established a strong governance structure with independent non-executive directors overseeing board activities and providing independent opinions[62] - The board is responsible for guiding and supervising the company's affairs, ensuring effective internal controls and risk management[84] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[73] - The company has implemented appropriate insurance coverage for directors and senior officers against potential legal actions arising from company activities[86] Risk Management - The company faces operational risks, regulatory risks, and financial risks, including interest rate risk and credit risk[113] - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic goals, with a minimum annual review of the risk management and internal control systems[111] - The company has established internal control procedures in compliance with applicable Chinese laws and regulations, covering governance, operations, management, legal matters, finance, and auditing[113] - The board has reviewed the effectiveness of the risk management and internal control systems during the reporting period and deemed them sufficient and effective[118] Future Growth Strategies - The management has outlined future growth strategies that include market expansion and potential mergers and acquisitions to enhance competitive positioning[61] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[58] - The company is exploring potential acquisitions to enhance its product offerings and market reach[143] Environmental and Social Responsibility - The company has implemented environmental protection measures and encourages employees to conserve energy and reduce waste[198] - The group made charitable donations of approximately RMB 5,000 during the reporting period[156] - The company has been engaged in comprehensive and all-season ecological tourism resource development, greening and environmental protection, skiing, and sports training since its establishment[61]
CGII HLDGS(01940) - 2021 - 年度财报