LMZ(SH:600249)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was CNY 717.53 million, an increase of 4.68% compared to CNY 685.43 million in 2020[21] - The net profit attributable to shareholders for 2021 was CNY 8.66 million, a decrease of 85.08% from CNY 58.05 million in 2020[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1.70 million, an increase of 79.86% compared to CNY 0.95 million in 2020[21] - The company's total assets at the end of 2021 were CNY 2.52 billion, a decrease of 1.27% from CNY 2.56 billion at the end of 2020[21] - The company reported a cash flow from operating activities of CNY -54.10 million in 2021, compared to CNY 15.79 million in 2020, indicating a significant decline[21] - The company's net assets attributable to shareholders at the end of 2021 were CNY 2.14 billion, a slight increase of 0.41% from CNY 2.13 billion at the end of 2020[21] - Basic earnings per share decreased by 85.12% to 0.0157 yuan per share compared to the previous year[23] - The weighted average return on equity fell to 0.41%, a decrease of 2.36 percentage points from the previous year[23] Revenue Breakdown - The operating income from the daily chemical segment reached CNY 142 million, with a focus on expanding online sales channels and optimizing marketing strategies[39] - Jiangsu Industrial Company reported an operating revenue of CNY 451 million, reflecting a growth of 5.76% year-on-year despite challenges in the hotel industry due to regional pandemic impacts[40] - Yikang Company generated an operating revenue of CNY 82.02 million, marking a 2.53% increase compared to the previous year, emphasizing the development of retail channels[43] - The revenue from daily chemical products reached ¥586.96 million, with a gross margin of 19.41%, down by 3.22 percentage points compared to the previous year[48] - The revenue from the pharmaceutical sector was ¥81.61 million, with a gross margin of 32.24%, down by 5.36 percentage points year-over-year[48] - The total revenue from online sales was ¥18.53 million, achieving a gross margin of 56.82%, which decreased by 5.02 percentage points year-over-year[48] - The total revenue from domestic operations was approximately ¥660.90 million, with a gross margin of 20.51%, down by 4.06 percentage points from the previous year[48] Research and Development - Research and development expenses amounted to CNY 11.74 million, showing a slight increase of 2.44% year-on-year, indicating ongoing investment in innovation[44] - The number of R&D personnel is 135, accounting for 9% of the total workforce[56] - The company is focused on R&D in traditional Chinese medicine, with two invention patents granted in 2021[72] Market and Competitive Landscape - The company has faced industry, market, and operational risks as detailed in the report[7] - The company faces increasing competition in the mature Chinese daily chemical industry, with intensified pressure from both domestic and imported products[96] - The ongoing COVID-19 pandemic has led to regional outbreaks, impacting subsidiaries like Jiangsu Industrial Company, particularly in the tourism and hotel sectors[96] Corporate Governance and Management - The company has established a strong governance structure with independent directors and a supervisory board in place[115] - The management team consists of experienced professionals with diverse backgrounds in finance, engineering, and management[115] - The company has maintained a stable shareholding structure, with no significant changes in the shareholdings of most directors and senior management during the reporting period[113] Strategic Initiatives - The company plans to use the undistributed profits for new product development, brand promotion, marketing investment, and supplementing daily working capital[5] - The strategic goal is to integrate daily chemical and pharmaceutical sectors to create a synergistic effect and drive growth[94] - The company aims to focus on product innovation and expand offline channels while optimizing online operations to enhance sales and brand influence in 2022[94] Social Responsibility - The company actively participated in social responsibility initiatives, including donating over 1 million yuan worth of products for flood relief efforts[151] - The company has successfully completed poverty alleviation tasks and is now focusing on rural revitalization efforts in targeted villages[153] - The company has established a quality education social practice base and promotes oral health knowledge to the public[152] Financial Management - The company has established a comprehensive internal control system that effectively ensures legal compliance, asset security, and the authenticity of financial reporting[143] - The company received a standard unqualified opinion in the internal control audit report for the 2021 financial report[145] - The total amount of guarantees provided by the company, excluding subsidiaries, was 2,500,000 RMB, which is 1.17% of the company's net assets[173] Employee Management - The total number of employees in the parent company and major subsidiaries is 1,509, with 466 in the parent company and 1,043 in subsidiaries[130] - The employee composition includes 859 production personnel, 128 sales personnel, 226 technical personnel, 44 financial personnel, 159 administrative personnel, and 93 others[130] - The company emphasizes a value-oriented compensation policy, where higher performance leads to higher pay[132]