YJFC(SH:600265)2022-04-26 16:00Financial Performance - The net profit attributable to shareholders for 2021 was -26,982,975.51 RMB, with an ending retained earnings of -431,557,952.86 RMB[5] - The parent company's net profit for 2021 was -13,935,195.37 RMB, with an ending retained earnings of -399,601,910.99 RMB[5] - Due to negative retained earnings, the board proposed no profit distribution for 2021 and no capital increase from reserves[5] - The company has faced continuous operating losses for three consecutive years, leading to a "ST" risk warning on its stock[8] - The company’s audited net profit for 2020 was negative, and its revenue was below 100 million RMB, resulting in a "delisting risk warning" on its stock[8] - The company is under scrutiny for its ability to continue as a going concern, as indicated by the audit report highlighting significant uncertainties[4] - The company’s stock is at risk of termination if it fails to meet specific financial reporting criteria in the upcoming year[9] - The net profit attributable to shareholders was a loss of CNY 26,982,975.51, a decrease from a loss of CNY 18,394,294.27 in 2020[25] - The net cash flow from operating activities was a negative CNY 49,362,858.83, a decline of 256.44% compared to the previous year[25] - The basic earnings per share for 2021 was -CNY 0.21, compared to -CNY 0.14 in 2020[26] - The weighted average return on equity was -93.19%, down from -61.33% in the previous year[26] - The company reported a cumulative undistributed profit of -43,155.80 thousand RMB and a net profit attributable to shareholders of -26,983.0 thousand RMB for 2021[165] - The cash flow from operating activities was -49,362.9 thousand RMB, indicating significant operational challenges[165] Revenue and Sales Growth - The company's operating revenue for 2021 was CNY 137,029,110.46, representing a 170.39% increase compared to the previous year[25] - The company reported a significant increase in sales of timber and chemical products, contributing to the revenue growth[27] - Domestic sales reached 126.03 million yuan, a year-on-year increase of 258.38%, while overseas sales amounted to 3.39 million yuan, a year-on-year increase of 100%[42] - The company achieved operating revenue of 137.03 million yuan, an increase of 170.39% year-on-year[67] - The sales revenue from the top five customers was 62,923,800 CNY, making up 45.60% of total annual sales, with related party sales contributing 9,593,500 CNY or 6.95%[78] Operational Challenges and Risks - The company faced challenges due to rising raw material prices and uncertainties in the real estate and furniture markets[35] - The company has detailed potential risks in its report, urging investors to exercise caution[10] - The company is actively expanding into the high-end decorative panel market, integrating with 成都缇尚's business to mitigate risks associated with the declining demand for construction decoration boards[38][39] - The company recognizes risks from fluctuating raw material prices and aims to enhance its procurement management and supply chain flexibility[107] - The company is aware of the potential impact of industry policy adjustments on operations and will adapt accordingly[108] Investments and Strategic Initiatives - The company invested nearly 4 million yuan in technological transformation, enhancing the annual production capacity of veneer products to 50,000 cubic meters, with total production and processing of various man-made boards reaching 55,799.59 cubic meters, a year-on-year increase of 405.74%[36] - The company established a new investment platform, 景林科技, with a total investment of 80 million yuan, holding a 51% stake, which aims to invest in forestry-related industries[37] - The company plans to invest in projects aligned with the local government's "14th Five-Year Plan," aiming to enhance its product structure and competitiveness[65] - The company plans to enhance production technology and product environmental standards, aiming to increase brand awareness and market share[89] - The company will invest in technological upgrades and expand production capacity for high-end artificial boards and high-profit forest chemical products[97] Corporate Governance and Management - The company held its first extraordinary general meeting of shareholders in 2021 on May 5, where resolutions included the election of directors and independent directors[115] - The total remuneration for directors and senior management during the reporting period amounted to CNY 2.31 million[118] - The company reported no significant differences in governance compared to regulations set by the China Securities Regulatory Commission[114] - The company’s board includes independent directors and supervisors to enhance governance and oversight[122] - The company has a remuneration scheme for directors and senior management based on performance and economic indicators[124] Environmental and Social Responsibility - The company invested CNY 525,000 in environmental protection initiatives in 2021, including upgrades to dust removal systems and boiler modifications[149] - The company has established a dedicated department for environmental management and has received recognition as an advanced unit for emissions compliance[150] - The company actively participated in local community support activities, including disaster relief efforts, enhancing its social responsibility profile[152] - The company implemented measures to strengthen poverty alleviation efforts in the Warmli Village, focusing on sustainable agricultural practices and community engagement[153] - The company aims to develop Warmli Village into a prosperous and harmonious new rural area, emphasizing ecological and cultural revitalization[154] Debt Management and Financial Stability - The company resolved debt issues, with creditors waiving 300 million yuan and 190 million yuan in debts, enhancing operational and risk resistance capabilities[43][44] - The company signed a debt transfer and offset agreement, transferring a debt of 220 million RMB to Tibet Fuheng, which will be used to offset part of its debt[180] - Tibet Fuheng agreed to unconditionally waive 30 million RMB of the company's debt principal and all corresponding interest from January 27, 2021, to December 31, 2021[180] - After the debt waiver, the company's remaining debt to Tibet Fuheng will be 0 RMB, effective immediately without any conditions[180] Audit and Compliance - The company received a non-standard audit report highlighting significant doubts about its ability to continue as a going concern, indicating potential financial instability[164] - The company has appointed Zhongshun Zhonghuan Accounting Firm as the new auditor for the 2021 financial report, replacing Xinyong Zhonghe Accounting Firm[172] - The remuneration for the new auditor is set at 550 thousand RMB, consistent with the previous auditor's fee[171] - The company did not receive any penalties from securities regulatory agencies in the past three years[127] - The company has not reported any major accounting errors or changes in accounting policies for the year[170]