mailyard(SH:600107)2022-04-28 16:00Financial Performance - In 2021, the company achieved a net profit of CNY 21,166,314.96, with a net profit attributable to shareholders of CNY 22,851,981.86, representing a decrease of 82.56% compared to 2020[6]. - The company's operating revenue for 2021 was CNY 485,541,077.78, an increase of 43.26% from CNY 338,918,564.50 in 2020[24]. - The net cash flow from operating activities was negative CNY 110,040,448.69, a decline of 246.22% compared to a positive cash flow of CNY 75,255,494.71 in 2020[24]. - The company's net assets attributable to shareholders increased to CNY 758,764,617.90, reflecting a growth of 3.24% from CNY 734,956,553.99 at the end of 2020[25]. - The company reported a net profit excluding non-recurring gains and losses of CNY 16,227,662.44, compared to a loss of CNY 27,182,935.01 in 2020[24]. - The basic earnings per share dropped by 83.33% to RMB 0.06 from RMB 0.36 in the previous year[26]. - The weighted average return on equity decreased by 16.52 percentage points to 3.06% from 19.58% in the previous year[26]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching CNY 16,227,662.44, compared to a loss of CNY 27,182,935.01 in the previous year[60]. Operational Challenges - The company faced increased production costs due to rising prices of raw materials and labor, impacting overall profitability[35]. - The company decided not to distribute profits for 2021 to address external macroeconomic pressures and rising operational costs[6]. - The company acknowledged potential industry and market risks in its annual report[10]. - The company is challenged by intense brand competition and rising labor costs, necessitating improvements in management and production efficiency[95]. Strategic Initiatives - The company plans to focus on enhancing liquidity to support future development amidst market uncertainties[6]. - The company is focusing on optimizing product structure and enhancing internal management to cope with competitive pressures[35]. - The company is investing in digital and intelligent manufacturing to improve production efficiency and product quality, with a focus on automation and IoT-based management across the supply chain[38]. - The company is enhancing its product design and development capabilities to better meet diverse consumer preferences and improve brand competitiveness[39]. - The company aims to strengthen its cultural and creative capabilities to enhance brand value and market influence[56]. - The company plans to enhance brand management and market share, focusing on improving product quality and customer experience[90]. Market Trends - The apparel industry is experiencing a recovery, with a reported 8.5% year-on-year increase in industrial added value for large-scale enterprises, indicating a positive market trend[43]. - In 2021, China's retail sales of clothing reached CNY 997.46 billion, a year-on-year increase of 14.2%[44]. - The domestic clothing market is experiencing a transformation driven by cultural confidence and the rise of domestic brands, presenting new opportunities for growth[44]. Governance and Compliance - The company has maintained a governance structure that complies with legal requirements, ensuring effective checks and balances among shareholders, the board, and management[98]. - The company actively maintains the rights of stakeholders, including shareholders, creditors, employees, consumers, suppliers, and customers, fostering sustainable and fair benefits for all parties involved[102]. - The company has established a transparent performance evaluation and incentive mechanism for senior management to enhance accountability and motivation[101]. - The company has not engaged in any significant related party transactions that would affect its independence[103]. Human Resources and Management - The company reported a total of 3,328 employees, with 2,020 in production, 982 in sales, and 235 in technical roles[140]. - The company has established a comprehensive human resources management system, covering recruitment, labor contracts, employee training, and performance evaluation[141]. - The company emphasizes employee training to enhance business skills and professional development, ensuring alignment with corporate needs[143]. Financial Management - The company has invested CNY 434 million in low to medium-risk financial products, with an outstanding balance of CNY 25 million[192]. - The company has consistently utilized self-owned funds for these investments, reflecting a conservative financial strategy[193]. - The company has not recognized any impairment provisions for entrusted wealth management products during the reporting period[196]. Leadership Changes - The company experienced management turnover with multiple resignations, including the board secretary and vice general manager, Chu Yuanyuan, on November 15, 2021[113]. - The company has seen significant changes in its executive team, impacting its operational continuity[113]. - The company appointed a new CFO, Zhang Yao, on October 29, 2021, following the resignation of Wang Zhongyang due to personal reasons[114]. Social Responsibility - The company actively fulfilled its corporate social responsibility during the reporting period, including donating epidemic prevention materials worth 30,000 yuan and providing volunteer services in the community[159]. - The company supported tenants by reducing rental fees during the pandemic to help them overcome difficulties[159]. - The company did not close stores, lay off employees, or reduce salaries during the pandemic, contributing to social stability[159].