GSMG(SH:600543)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was approximately RMB 140.40 million, representing a 5.53% increase compared to RMB 133.04 million in 2020[21]. - The net profit attributable to shareholders for 2021 was a loss of approximately RMB 98.70 million, a significant decrease from a profit of RMB 1.86 million in 2020, marking a decline of 5,407.35%[21]. - The basic earnings per share for 2021 was -0.31 RMB, compared to 0.01 RMB in 2020, reflecting a decrease of 3,200%[21]. - The weighted average return on equity for 2021 was -8.79%, down from 0.16% in 2020, a reduction of 8.95 percentage points[21]. - The total revenue excluding non-core business income was CNY 126,312,518.08[29]. - The company's total sales revenue for 2021 was approximately 482.72 million RMB, reflecting a decline of 36.58% compared to the previous year[69]. - The net loss for 2021 was CNY 103,068,747.26, compared to a net loss of CNY 3,052,426.71 in 2020[198]. Cash Flow and Assets - The net cash flow from operating activities for 2021 was approximately RMB 29.56 million, a recovery from a negative cash flow of RMB -15.95 million in 2020[21]. - The company reported a net cash flow from operating activities of CNY 31,457,935.08 in the fourth quarter, primarily due to a significant increase in sales of biodegradable materials[29]. - The total assets at the end of 2021 were approximately RMB 1.20 billion, a decrease of 11.56% from RMB 1.36 billion at the end of 2020[21]. - The company's cash and cash equivalents increased to CNY 240,064,083.57, up 5.6% from CNY 227,462,292.37 in 2020[189]. - Accounts receivable decreased to CNY 41,022,759.69, a decline of 35.6% from CNY 63,660,586.43 in 2020[189]. - The company's total equity decreased to CNY 1,051,173,096.14, down 8.9% from CNY 1,154,241,843.40 in 2020[191]. Revenue Breakdown - The revenue from the wine business was CNY 48,271,996.96, a decline of 36.58% compared to the previous year[28]. - The revenue from the pharmaceutical business was CNY 13,886,457.37, down 19.87% year-on-year[28]. - The revenue from biodegradable materials and products surged to CNY 64,154,063.75, marking a significant increase of 119.76%[28]. - Revenue from wine decreased by 36.58% to CNY 48,271,996.96, while revenue from degradable materials and products increased by 119.76% to CNY 64,154,063.75[40]. Costs and Expenses - Operating costs rose significantly by 56.48%, reaching CNY 106,748,777.98, up from CNY 68,219,789.48 in the same period last year[39]. - The company achieved a 39.61% increase in management expenses, totaling CNY 37,725,767.13, compared to CNY 27,021,798.13 in the previous year[39]. - The gross margin for degradable materials was -20.51%, indicating high production costs and contributing to overall losses[43]. - The company reported a significant increase in sales expenses, totaling CNY 43,178,863.20 in 2021, compared to CNY 41,628,096.80 in 2020[197]. Market and Production Insights - The wine production in China decreased to 268,000 tons in 2021, a year-on-year decline of 29.1%, reflecting a challenging market environment[30]. - The production volume of finished wine decreased by 10.29% to 1,439 thousand liters, while sales volume dropped by 28.22% to 1,259 thousand liters[49]. - The company has a production capacity of 20,000 tons for biodegradable polyester new materials (PBAT), which has commenced operations[32]. - The company plans to significantly increase R&D investment in degradable materials and products in 2022[41]. Governance and Compliance - The company held 5 board meetings during the reporting period, complying with the Company Law and Articles of Association[103]. - The company strictly adhered to information disclosure obligations, ensuring timely, accurate, and complete information dissemination to all shareholders[104]. - The company has implemented measures to respect and protect the rights of stakeholders, including creditors and employees[104]. - The company has made continuous improvements to its governance structure in line with modern corporate governance standards[102]. Strategic Initiatives - The company plans to enhance its market presence by focusing on core products and expanding its product line through customized offerings[71]. - The company aims to enhance its market presence by optimizing product structure and expanding its sales channels, including online platforms like Tmall and JD.com[96]. - The company is committed to a dual-driven strategy of "wine + new materials" to achieve high-quality development and market expansion[94]. - The company plans to strengthen its brand image through increased marketing efforts and targeted promotions via social media and its app[96]. Risks and Challenges - The company faced significant risks as detailed in the management discussion and analysis section of the annual report[7]. - The fluctuation in raw material prices, especially for 1,4-butanediol (BDO), poses a risk to the production and profitability of the biodegradable polyester new materials[99]. - The company faces risks from market competition, particularly from imported wines due to decreasing tariffs, which could impact domestic sales[98].