JSSS(SH:600220)2022-04-27 16:00Financial Performance - The net profit attributable to shareholders for 2021 was CNY 114,986,450.46, while the net profit for the parent company was CNY 136,550,382.70[5]. - The company achieved operating revenue of RMB 1.99 billion in 2021, a year-on-year increase of 1.02%[31]. - Net profit attributable to shareholders reached RMB 115 million, reflecting a significant growth of 622.50% compared to the previous year[31]. - The basic earnings per share rose to RMB 0.0645, an increase of 624.72% from RMB 0.0089 in 2020[21]. - The company reported a net cash flow from operating activities of RMB 669 million, a dramatic increase of 2,695.39% compared to RMB 24 million in 2020[21]. - The company’s weighted average return on equity increased to 5.59%, up 4.83 percentage points from the previous year[21]. - The company’s investment income increased by 68.64% to CNY 6,302,489.03 from CNY 3,737,269.00 in the previous year[47]. - The company reported a total comprehensive income of CNY 44,326,304.88 for 2021, compared to a loss of CNY 74,745,724.80 in 2020[192]. - The company’s net profit for 2021 was CNY 136,550,382.70, a significant increase from CNY 12,319,950.54 in 2020, representing a growth of approximately 1,107%[196]. Dividend and Profit Distribution - The total distributable profit at the end of the year was CNY 303,513,154.46 after accounting for the cash dividend of CNY 17,833,403.26 distributed for the previous year[5]. - The proposed cash dividend for 2021 is CNY 0.20 per 10 shares, amounting to a total of CNY 35,666,806.52 based on the total share capital of 1,783,340,326 shares[5]. - The remaining undistributed profit for the parent company after the dividend distribution is CNY 267,846,347.94, which will be carried forward to future years[5]. - The proposed cash dividend for 2021 is 0.20 RMB per 10 shares, totaling 35,666,806.52 RMB, which represents a cash dividend payout ratio of 31.02%[115]. Business Operations and Strategy - The company is focusing on digital and intelligent transformation, converting a weaving workshop into a high-efficiency IoT smart weaving workshop[32]. - The company plans to enhance its risk management capabilities through self-innovation and smart manufacturing[30]. - The company is preparing for the resumption of operations at its overseas subsidiary, Sunshine Ethiopia, which had been suspended since August 2020[80]. - The company aims to enhance its core competitiveness by focusing on technology innovation, quality management, and talent development[80]. - The company is committed to developing high-tech, high-value-added products to meet market demands and drive quality development[80]. Industry Trends and Challenges - The textile industry in China is transitioning from "capacity expansion" to "value growth," with a focus on technological upgrades and brand development[34]. - The textile industry faces challenges such as structural labor shortages and rising costs, which need to be addressed for sustainable development[36]. - The textile industry is expected to face complex development challenges in 2021, despite recovering from the impacts of the COVID-19 pandemic in 2020[70]. - Fluctuations in raw material prices, particularly wool and coal, pose significant risks to the company's operating costs and product demand[81]. - Labor costs have been on a continuous rise, impacting profit margins; the company is investing in automation to mitigate production costs[81]. Corporate Governance and Compliance - The board of directors and management have guaranteed the authenticity and completeness of the annual report[8]. - The company has implemented a robust corporate governance structure, ensuring compliance with relevant laws and regulations[84]. - The company held one annual general meeting and two extraordinary meetings during the reporting period, ensuring transparency and shareholder engagement[89]. - The company has established a system for managing insider information to prevent insider trading and ensure compliance[86]. - The company has not faced any penalties from securities regulatory authorities in the past three years[98]. Environmental Responsibility - The company has established wastewater treatment facilities to preprocess wastewater before connecting to centralized treatment plants, ensuring compliance with environmental standards[125]. - The company emphasizes sustainable development and energy conservation, aiming to minimize pollutant emissions[131]. - The company has obtained pollution discharge permits for its subsidiaries, ensuring compliance with local environmental regulations[128]. - Automatic online monitoring devices have been installed at all discharge outlets, with data connected to local environmental monitoring platforms[130]. - The company has developed emergency response plans for environmental incidents, with all plans filed with the Jiangsu Provincial Environmental Protection Department[129]. Related Party Transactions - The company engaged in related party transactions, with a total amount of 1,416.35 million RMB for purchasing raw materials, accounting for 2.35% of similar transactions[142]. - The company reported a related party transaction of 817.33 million RMB for wastewater treatment services, representing 78.28% of similar transactions[142]. - The company has established a strong relationship with related parties, ensuring fair market pricing for transactions, which enhances competitiveness[145]. - The company has maintained a focus on daily operational needs through related party transactions, ensuring no harm to minority shareholders[145]. Audit and Financial Reporting - The audit report confirmed that the financial statements fairly represent Jiangsu Sunshine's financial status as of December 31, 2021[174]. - The audit identified key audit matters, including the completeness of related party and related transaction disclosures, which were addressed through various audit procedures[175]. - The financial statements were prepared in compliance with the relevant accounting standards, ensuring transparency and accountability[176]. - The audit procedures included assessing the effectiveness of internal controls related to revenue recognition, which is critical for the company's financial reporting[178].