Rental Rates and Occupancy - The rental rate for the XJ Shaxi Hotel Supplies Expo City was recorded at 89.0% in 2021, down from 94.7% in 2020[13]. - The XJ Haotai Hotel Supplies City achieved a rental rate of 91.5% in 2021, compared to 93.9% in 2020[15]. - The occupancy rate for Shenyang Xinji Shaxixi Hotel Supplies Expo City was 45.6% in 2021, up from 40.9% in 2020[17]. - The occupancy rate for Xinjishi Dashi Furniture City remained at 100% in both 2021 and 2020[19]. - The occupancy rate for Shenyang Xinji Shaxixi International Home Furnishing Expo Center was 90.0% in 2021, an increase from 85.9% in 2020[21]. Financial Performance - For the year ended December 31, 2021, the company's revenue was approximately RMB 267.5 million, a decrease of RMB 20.4 million or 7% compared to RMB 287.9 million in 2020[25]. - The core profit for the year was approximately RMB 86.2 million, a decrease of RMB 2.5 million or 3% from RMB 88.7 million in 2020[25]. - Total revenue decreased by 7% from approximately RMB 287.9 million in 2020 to approximately RMB 267.5 million in 2021, primarily due to a reduction in rental income[33]. - Rental income for 2021 was approximately RMB 217.3 million, a decrease of about RMB 25.1 million or 10% compared to RMB 242.4 million in 2020, impacted by construction disruptions and COVID-19[37]. - Operating loss for 2021 was approximately RMB 221.1 million, compared to an operating profit of approximately RMB 118.9 million in 2020[46]. - The group reported a loss of RMB 214.925 million for the year ended December 31, 2021, compared to a profit of RMB 31.911 million in 2020, indicating a significant downturn in financial performance[49]. Assets and Liabilities - Total assets decreased from RMB 3,288.5 million in 2020 to RMB 3,100.7 million in 2021, a decline of approximately 5.7%[28]. - Total liabilities increased slightly from RMB 1,394.1 million in 2020 to RMB 1,420.9 million in 2021, reflecting a rise of about 1.9%[28]. - As of December 31, 2021, the group had net current assets of RMB 4.2 million, a significant improvement from net current liabilities of RMB 68.5 million as of December 31, 2020[65]. Strategic Initiatives - The company aims to maintain its position as a leading wholesale market for hotel supplies in China[13]. - The company aims to enhance brand influence and expand into international markets[25]. - The group aims to utilize the unutilized net proceeds by 2023 for various strategic initiatives, including property management and e-commerce development[57]. - The company plans to allocate approximately RMB 30 million (22.5%) of the unutilized net proceeds to establish a vertical e-commerce platform for the hotel supplies industry[54]. Corporate Governance - The company has implemented good corporate governance policies and measures, focusing on accountability, transparency, and independence[109]. - The board of directors consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a balanced composition[111]. - The independent non-executive directors are allowed to freely express their opinions to the board[126]. - The company has a diversity policy for board members, considering various factors such as gender, age, and industry experience[137]. Market Position and Industry Relations - The company has established itself as a leader in the hotel supplies industry in China, with over 2,000 members in the China Hotel Supplies Association (CHSA) since its founding in 2013[92]. - The group emphasizes the importance of industry alliances and collaborative development to strengthen brand loyalty within the industry[85]. - The management team is actively involved in various industry associations, which helps in networking and staying updated with industry trends[92][96]. Environmental and Social Responsibility - The company has implemented environmental protection measures and encourages employees to conserve energy and reduce waste[174]. - The company plans to disclose further details on its environmental, social, and governance performance in its upcoming report[174]. Employee and Director Management - The group’s employee count as of December 31, 2021, was approximately 204, down from 211 in 2020, with employee benefits expenses of RMB 29.3 million in 2021[73]. - The total remuneration for directors in 2021 amounted to approximately RMB 2.9 million, a decrease from RMB 3.8 million in 2020[113]. - The independent non-executive directors have disclosed their time spent on company affairs, confirming their capacity to contribute effectively[120]. Financial Controls and Compliance - The company has established a policy to prevent corruption and provides regular compliance training to maintain a healthy corporate culture and enhance compliance awareness[153]. - The internal audit function is responsible for analyzing the adequacy and effectiveness of the company's risk management and internal control systems[153]. - The external auditor's report confirms that there are no significant uncertainties that may affect the company's ability to continue as a going concern[153].
信基沙溪(03603) - 2021 - 年度财报