ZYSC(SH:600280)2022-04-27 16:00Financial Performance - The company achieved operating revenue of RMB 2.88 billion in 2021, a decrease of 9.50% compared to RMB 3.18 billion in 2020[22]. - The net profit attributable to shareholders was RMB 45.36 million, down 44.26% from RMB 81.38 million in the previous year[22]. - The basic earnings per share were RMB 0.04, a decrease of 42.86% from RMB 0.07 in 2020[23]. - The net profit attributable to the parent company was 45.36 million RMB, down from 81.38 million RMB in the previous year[32]. - The net profit after deducting non-recurring gains and losses was -201.83 million RMB, compared to -26.06 million RMB in the previous year[32]. - The company reported a net loss of CNY 610,332,825.81 for the year, an improvement from a loss of CNY 641,860,509.03 in 2020[194]. - Net profit for 2021 was CNY 46,417,196.39, a decline of 45.5% from CNY 85,036,118.01 in 2020[200]. Cash Flow and Assets - The company reported a net cash flow from operating activities of RMB 578.03 million, an increase of 862.28% compared to RMB 60.07 million in 2020[22]. - The cash flow from operating activities for the fourth quarter was 312.94 million RMB[26]. - The company's cash and cash equivalents at the end of the reporting period amounted to CNY 108,041,713.42, which is restricted as a guarantee deposit[77]. - The company's cash and cash equivalents decreased to CNY 513,954,044.56 from CNY 650,658,412.18, representing a decline of approximately 21.0%[193]. - The total assets at the end of 2021 were RMB 13.26 billion, a slight increase of 0.88% from RMB 13.14 billion in 2020[22]. - The company's total assets increased to CNY 9,879,918,734.17 in 2021, up from CNY 9,612,656,097.35 in 2020, representing a growth of 2.8%[198]. Operational Strategy - The company plans to focus on upgrading and renovating older department stores to strengthen its core retail business[6]. - The company is focusing on digital transformation and smart upgrades to improve operational management efficiency[41]. - The company is actively pursuing a strategy of brand enhancement and marketing events to boost sales and customer engagement[93]. - The company aims to upgrade its department stores and expand its product categories, with a focus on improving customer shopping experiences and increasing market share[92]. - The company is investing in technology innovations such as AI and big data to drive the transformation towards new retail models[91]. Real Estate and Retail Segments - The retail segment saw a stable performance with a year-on-year increase in operating revenue and gross profit margin[33]. - The real estate segment experienced a decrease in net profit due to reduced revenue recognition and increased land value tax provisions[33]. - The company's retail business accounted for 73.31% of total revenue, with the joint operation model contributing 39.10% of sales revenue[47]. - The company's real estate development revenue represented 14.55% of total revenue during the reporting period[50]. Corporate Governance - The company has established a comprehensive corporate governance structure in compliance with relevant laws and regulations, ensuring transparency and accountability[101]. - The company is committed to transparent information disclosure, ensuring that all shareholders have equal access to relevant information[103]. - The company has implemented measures to maintain independence from its controlling shareholder, ensuring that major decisions are made independently[105]. - The board of directors held nine meetings during the reporting period, fulfilling their duties diligently and in accordance with legal requirements[102]. Employee and Management Structure - The total number of employees in the parent company is 739, while the main subsidiaries employ 1,671, resulting in a total of 2,410 employees[124]. - The company has a strong management team with extensive experience in retail and investment sectors[110]. - The company has a training program focused on developing leadership and expertise through structured courses and project-based training[126]. Related Party Transactions - The company reported a total of 17,935.38 million RMB in receivables from various subsidiaries, with a significant portion related to daily operations[153]. - The company’s related party transactions were reviewed and approved at the 2021 first extraordinary general meeting, with related shareholders abstaining from voting[154]. - The company’s financial dealings with related parties did not impact its overall financial position negatively[153]. Risks and Challenges - The company faces risks from the COVID-19 pandemic, which has significantly impacted the retail sector, potentially leading to performance declines[97]. - The company has recognized a provision for inventory impairment of 48,156.54 million CNY against a total inventory value of 608,532.07 million CNY as of December 31, 2021[186]. - The company faces significant short-term repayment pressure due to high current liabilities relative to current assets[185]. Future Outlook - In 2022, the company will continue to prioritize its core retail business while expanding online sales through platforms like Douyin and video channels, enhancing marketing strategies[93]. - The company plans to enhance its operational performance by focusing on brand strength and optimizing store conditions, aiming for a more integrated management approach[92]. - The company aims to enhance asset management by disposing of idle and non-operating assets to promote cash flow recovery[96].