GSMG(SH:600543)2022-06-13 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 net assets for 2021 was -8.79%, down from 0.16% in 2020, a reduction of 8.95 percentage points[21]. - 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 net assets attributable to shareholders at the end of 2021 were approximately RMB 1.07 billion, down 8.42% from RMB 1.17 billion at the end of 2020[21]. - The company reported a significant reduction in long-term borrowings, down 88.66% to 73.15 million RMB, as a result of repaying bank loans[62]. - The net profit was CNY -103,068,747.26, reflecting a substantial loss compared to the previous year[40]. - The company reported a net profit decline, with retained earnings dropping to CNY 153,235,769.90 from CNY 251,931,428.61 in 2020, a decrease of 39%[191]. Cash Flow and Investments - 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 net cash flow from operating activities in Q4 was CNY 31,457,935.08, primarily due to a significant increase in sales of degradable materials[29]. - Cash flow from operating activities increased by CNY 45,505,909.81, mainly due to improved collection of receivables[41]. - Investment cash flow increased by CNY 66,125,831.19, a growth of 940.15%, primarily from the recovery of financial investments[41]. - The company reported a 95.29% decrease in investment income, down to CNY 345,205.46 from CNY 7,323,862.91 in the previous year[39]. Revenue Breakdown - The revenue from wine decreased by 36.58% to CNY 48,271,996.96, while the revenue from degradable materials surged by 119.76% to CNY 64,154,063.75[28]. - The company's revenue for the reporting period was CNY 140,401,040.26, representing a 5.53% increase compared to CNY 133,039,355.94 in the previous year[39]. - The company's revenue excluding non-core business income was CNY 126,312,518.08[29]. - The revenue from biodegradable materials and products increased by 119.76% from 29.19 million yuan to 64.15 million yuan, contributing 45.69% to total revenue[51]. Operational Challenges - 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 gross margin for degradable materials was -20.51%, indicating high production costs and contributing to overall losses[43]. - The overall wine production in China decreased by 29.1% in 2021, reaching a record low of 268,000 tons[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 reported a fourth-quarter loss of CNY 71,144,436.22, mainly due to fixed asset impairment losses of CNY 48,296,100 and losses from the disposal of grape planting bases[29]. Market and Product Development - The company has developed over 200 products across seven major series, including dry red, dry white, ice wine, and brandy[31]. - The company launched new products, including 4 customized products online and 12 offline, aimed at expanding market sales[36]. - The company plans to significantly increase R&D investment in degradable materials and products in 2022[41]. - 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]. 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 established effective performance evaluation and incentive mechanisms for directors and senior management, linking their compensation to overall business performance[103]. - The company strictly adhered to information disclosure obligations, ensuring timely, accurate, and complete information dissemination to all shareholders[104]. - The company actively engaged in investor relations, reflecting a commitment to transparency and fair treatment of all shareholders[104]. - The company has made progress in enhancing its governance structure in line with modern corporate governance standards[102]. Social Responsibility and Sustainability - The company is committed to sustainability, with plans to reduce carbon emissions by 40% over the next five years[110]. - The company emphasizes its commitment to social responsibility, aiming to create value for shareholders, provide opportunities for employees, and fulfill its obligations to society[139]. - The company is actively involved in poverty alleviation and rural revitalization efforts, ensuring that previously impoverished populations do not fall back into poverty[139]. - The company has implemented energy-saving initiatives aimed at reducing carbon emissions, promoting a green office culture among employees[138].