HNHS(SH:600156)2022-04-20 16:00Financial Performance - In 2021, the company's operating revenue was CNY 93,036.56 million, representing a 1.84% increase compared to CNY 91,353.87 million in 2020[19]. - The net profit attributable to shareholders was CNY -7,023.06 million, a decrease of 311.33% from CNY 3,323.23 million in the previous year[19]. - The total revenue amounted to 91,429.09 million, reflecting a 1.89% decrease year-over-year[39]. - The company's net profit and net assets were reported under both international and Chinese accounting standards, reflecting compliance with regulatory requirements[26]. - The company reported a net profit attributable to shareholders of -70.23 million in 2021, with a cumulative distributable profit of -93.68 million over the last three years[106]. - The total comprehensive income for the year was CNY -70,230,557.04, reflecting a significant decline in profitability[174]. - The net profit for 2021 was a loss of CNY 84,549,094.01, compared to a profit of CNY 19,440,560.76 in 2020, reflecting a significant decline[165]. Cash Flow and Assets - The net cash flow from operating activities was CNY -3,452.29 million, worsening from CNY -1,709.55 million in 2020[19]. - The total assets at the end of 2021 were CNY 126,661.16 million, a decrease of 1.19% from CNY 128,180.90 million in 2020[19]. - The company's cash and cash equivalents decreased to CNY 154,830,738.76 from CNY 205,814,303.25 at the end of 2020, representing a decrease of approximately 25%[170]. - The company's total liabilities as of December 31, 2021, were CNY 628,059,474.41, an increase from CNY 568,707,805.99 in 2020, which is an increase of approximately 10.5%[162]. - The company's long-term borrowings remained stable at 12,000,000 RMB, with no change from the previous year[65]. - The total current liabilities as of December 31, 2021, were CNY 430,315,330.53, compared to CNY 358,627,878.36 in 2020, reflecting an increase of approximately 19.9%[162]. Revenue Segmentation - The revenue from the textile production segment was CNY 8,277.94 million, with a gross margin of -22.79%, a decrease of 19.52 percentage points year-on-year[38]. - The pharmaceutical machinery segment reported revenue of CNY 2,957.74 million, with a gross margin of 58.99%, an increase of 9.82 percentage points year-on-year[38]. - The overseas sales revenue reached CNY 77,761.87 million, with a gross margin of 2.82%, reflecting a year-on-year increase of 1.13 percentage points[38]. - Domestic sales for the year reached 13,667.22 million, a decrease of 8.84% compared to the previous year[39]. - The trading business generated revenue of 97,992 million, an increase of 2.90% from the previous year, while the gross margin decreased by 0.44 percentage points to 2.65%[39]. Cost Management - The operating cost for the reporting period was CNY 89,630.44 million, reflecting a growth of 3.57% from CNY 86,538.13 million in the previous year[35]. - The gross profit margin for the main business decreased by 1.89 percentage points compared to the previous year[36]. - The textile production segment's total costs rose to 10,164.53 million, a 14.28% increase from the previous year, primarily due to higher labor and manufacturing expenses[46]. - The pharmaceutical machinery segment's costs increased to 1,212.99 million, reflecting a 48.72% rise year-over-year[46]. - The company saved approximately 15 million RMB in costs through effective cost control measures during the year[30]. Research and Development - The company’s R&D expenses increased by 35.00% to CNY 1,419.33 million from CNY 1,051.36 million in the previous year[35]. - The company plans to focus on technological breakthroughs and increase investment in research and development to address key technical challenges in the hemp industry[75]. - The company has established a training system that combines internal and external training tailored to different job positions[105]. Governance and Compliance - The company strictly adhered to the information disclosure management system, enhancing the management of insider information and ensuring compliance with regulations[83]. - The report indicates that there were no significant differences in corporate governance compared to regulatory requirements[83]. - The company has plans to continue enhancing its compliance and governance practices to safeguard shareholder interests[83]. - The audit committee held four meetings during the reporting period, with all proposals receiving unanimous approval[98]. - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, ensuring the protection of shareholders' rights[108]. Market and Strategic Outlook - The overall economic environment in 2021 showed a GDP growth of 8.1% in China, with a declining trend in growth rates throughout the year[32]. - The company plans to continue its investment strategy focusing on upgrading production capabilities and expanding market reach[66]. - The company intends to develop four major processing bases for hemp raw materials, spinning, weaving, and dyeing[74]. - The company’s management indicated a cautious outlook for 2022, emphasizing the need for strategic adjustments in response to market conditions[167]. Environmental and Social Responsibility - The company prioritizes employee welfare by ensuring timely payment of social insurance and providing health check-ups and recreational facilities[121]. - The company has developed emergency response plans for environmental incidents and conducts regular drills to enhance preparedness[117]. - The wastewater discharge from Dongma Company and Xuesong Company complies with national standards, with no exceedances reported[116]. Shareholder Information - The annual shareholder meeting held on April 20, 2021, resulted in all resolutions being passed unanimously[83]. - The company has not proposed any cash profit distribution plan for 2021 due to insufficient distributable profits[106]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 1.5088 million yuan[92].