Financial Performance - For the year ended December 31, 2021, the Group recorded revenue of approximately RMB 36,540,000, representing an increase of approximately RMB 682,000 or 1.9% compared to RMB 35,858,000 in 2020[15] - The Group's newly launched CNC machine tool optical mechanical products have not yet entered large-scale production, contributing to the modest revenue increase[15] - The gross profit margin improved to 6.39% in 2021, up from 1.3% in 2020, primarily due to reduced cost of sales[34] - The loss attributable to shareholders for the year was approximately RMB 4,034,000, a decrease of approximately RMB 4,462,000 compared to the loss of RMB 8,496,000 in 2020[41] - Current assets increased to approximately RMB 18,338,000 as of December 31, 2021, up by approximately RMB 2,866,000 from RMB 15,472,000 in 2020[42] - Current liabilities rose to approximately RMB 31,328,000, an increase of approximately RMB 1,679,000 from RMB 29,649,000 in 2020[43] - As of December 31, 2021, the Group had net liabilities of approximately RMB 44,001,000, compared to RMB 39,967,000 in 2020[44] - The Group's bank balances and cash amounted to approximately RMB 10,703,000 as of December 31, 2021, compared to RMB 10,147,000 in 2020[44] Market Conditions - The overall economic growth rate in China is expected to continue slowing down, presenting challenges for the Group[21] - Competition and production costs are anticipated to increase, further complicating the market landscape for the Group[21] - The Group aims to explore business opportunities in intelligent control systems for industrial uses despite the challenging market conditions in 2022[25] Corporate Governance - The Board consists of 7 Directors, including 4 executive Directors and 3 independent non-executive Directors[80] - The remuneration policies for Directors are determined by the Remuneration Committee and require shareholder approval[63] - The Board did not recommend the payment of a final dividend for the year ended December 31, 2021, similar to 2020[73] - The Company did not enter into any arrangements enabling Directors, Chief Executives, and Supervisors to hold interests in shares or debentures of the Company during the year[171] Employee Information - As of December 31, 2021, the Group had 11 employees, an increase from 10 employees in 2020[54] - The headcount analysis shows a total of 11 employees in 2021, with 3 in sales and marketing, 2 in production, 5 in finance and administration, and 1 in procurement[62] Risk Management - As of December 31, 2021, the Group faced liquidity risk with net current liabilities of approximately RMB 12,990,000[122] - The Group's maximum exposure to credit risk as of December 31, 2021, is based on the carrying amount of recognized financial assets[111] - The Group reviews the recoverable amount of trade and other debtors at each reporting period to ensure adequate impairment losses are made for irrecoverable amounts[112] - The Group's credit risk has significantly decreased due to adequate impairment losses recognized on receivables[118] Shareholding Structure - As of December 31, 2021, Mr. He Keng holds 370,000,000 Domestic Shares, representing approximately 74% of the total issued share capital of the Company[168] - The total number of Domestic Shares held by substantial shareholders is 1,110,000,000, which constitutes a significant portion of the company's shareholding structure[178] - RuiYuan Robot acquired a total of 370,000,000 Domestic Shares, representing 74% of the entire issued share capital of the Company as of December 31, 2021[187] Business Operations - The Group's major business includes the design, manufacture, and sales of CNC machine tools, optical and mechanical products, and sales of controller systems for electronic equipment[107] - The largest customer accounted for 50% of sales, while the five largest customers combined represented 99% of total sales[192] - The largest supplier contributed to 70% of purchases, with the five largest suppliers combined accounting for 100% of total purchases[192] Compliance and Regulations - The Group complied with all applicable laws and regulations during the year ended December 31, 2021[71] - There are no specific environmental standards or requirements for conducting the Group's business according to the relevant laws of the PRC/Hong Kong[200]
瑞远智控(08249) - 2021 - 年度财报