WSBE(SH:600421)2022-03-30 16:00Financial Performance - The net profit attributable to shareholders for 2021 was -8,863,738.32 CNY, a decrease of 189.13% compared to the previous year's profit of 9,945,240.71 CNY[6]. - The total operating revenue for 2021 was 130,352,941.98 CNY, representing a decline of 7.02% from 140,188,499.49 CNY in 2020[21]. - The net profit for the year was CNY -1.03 million, with a net profit attributable to shareholders of CNY -0.89 million[52]. - The company reported a net loss of CNY 425,116,766.11 for the year, compared to a loss of CNY 416,253,027.79 in the previous year[169]. - The net profit for 2021 was -7,353,201.31 RMB, compared to -2,567,768.15 RMB in 2020, indicating a decline in profitability[177]. - The company reported a comprehensive income of 9,945,240.71 RMB for the current period, contributing to a total owner's equity of 62,401,262.72 RMB[193]. Cash Flow and Assets - The net cash flow from operating activities was -6,119,029.16 CNY, showing a significant improvement from -31,692,194.55 CNY in 2020[21]. - The company's cash and cash equivalents decreased by 49.47% to 16,310,210.50 CNY compared to the previous year[70]. - The total assets at the end of 2021 were 121,014,776.97 CNY, a slight decrease of 0.32% from 121,397,457.22 CNY in 2020[21]. - Current assets totaled CNY 100,284,631.62, down from CNY 111,862,000.57 in the previous year, indicating a decrease of approximately 10.5%[167]. - Cash and cash equivalents decreased to CNY 16,310,210.50 from CNY 32,275,900.62, representing a decline of about 49.5%[167]. - The total liabilities rose to CNY 68,738,210.26 from CNY 58,996,194.50, marking an increase of about 16.5%[168]. Operational Efficiency - The company initiated lean production management to improve efficiency, optimizing site management and internal logistics, which resulted in a significant increase in output per unit area[32]. - The average price of steel purchased by the company increased by over 30% compared to the previous year, significantly raising production costs while product prices remained stable[35]. - The company reported a 31% reduction in the processing price of mold tables and a 7% reduction in mold processing prices through internal competition[33]. - The company is committed to lean production practices to improve efficiency and reduce costs, aiming to enhance overall management levels[82]. Market and Product Development - The company established a production base in Guangdong in 2021 to capitalize on the growing demand for PC molds in the region, which has seen a market shift towards localized supply[28]. - The company plans to expand its production bases in South China, Central China, and North China to capture opportunities in the building industrialization sector[78]. - The company aims to maintain an average monthly output of over 900 tons for PC molds, which are the main product and core business, to ensure profitability[79]. - The company is exploring strategic acquisitions to bolster its market position, with a budget of 100 million allocated for potential deals[94]. Governance and Compliance - The governance structure complies with regulatory requirements, ensuring independent operation of the board and management[86]. - The company maintains independence from its controlling shareholder, with no interference in decision-making or operations[90]. - The company has established a transparent performance evaluation and incentive mechanism for its board and management[88]. - The company has strengthened internal control systems to enhance risk management and operational efficiency[88]. Research and Development - The total R&D expenditure was 5,976,361.29 CNY, representing 4.58% of total revenue[64]. - The company intends to increase R&D investment to support the transformation and expansion into municipal road and bridge business, which is expected to be a growth point[80]. - The company has a total of 33 R&D personnel, making up 12.31% of the total workforce[65]. Challenges and Risks - The company faced challenges in cash flow due to increased competition and extended payment terms, leading to a tightening of working capital[36]. - The company recognizes the risk of intensified market competition in the prefabricated construction industry and plans to adjust product structure accordingly[83]. - The company faces risks from rising raw material prices, particularly steel, which may negatively impact short-term profitability[84]. - Accounts receivable have increased due to adjusted credit terms for long-term clients, posing potential operational risks if not managed properly[84]. Shareholder Information - The total number of ordinary shareholders increased from 8,604 to 11,026 during the reporting period, representing a growth of approximately 28.2%[143]. - The top ten shareholders held a total of 38,136,775 shares, accounting for 19.50% of the total shares[145]. - The company has no significant changes in the controlling shareholder or actual controller during the reporting period[150].