SHD(SH:600630)2022-04-27 16:00Financial Performance - In 2021, the company reported a net profit attributable to shareholders of -304,599,710.80 CNY, compared to -294,189,458.31 CNY in 2020, indicating a continued loss [6]. - The total revenue for 2021 was 2,949,499,275.48 CNY, a decrease of 9.36% from 3,254,042,817.21 CNY in 2020 [18]. - The net cash flow from operating activities was 75,483,811.28 CNY, down 60.15% from 189,418,328.08 CNY in the previous year [18]. - The company's total assets at the end of 2021 were 2,369,031,122.02 CNY, a decline of 9.80% from 2,626,494,109.33 CNY in 2020 [18]. - The net assets attributable to shareholders decreased by 20.15% to 1,218,990,363.78 CNY from 1,526,692,340.71 CNY in 2020 [18]. - The basic earnings per share for 2021 were -0.72 CNY, compared to -0.69 CNY in 2020, reflecting a 4.35% decline [18]. - The company plans not to distribute profits for the 2021 fiscal year due to the reported net loss [6]. - The company reported a decrease in the weighted average return on net assets to -22.16% in 2021 from -17.56% in 2020 [18]. - The company reported a weighted average return on equity (ROE) of -25.41% for 2021, down from -18.28% in 2020 [20]. - The company achieved a total revenue of 2,949.5 million RMB in 2021, a decrease of 9.4% compared to the previous year [25]. - The net profit attributable to shareholders was -304.6 million RMB, a year-on-year decline of 3.5% [25]. - The company reported a significant decrease of 60.15% in net cash flow from operating activities, totaling 75.48 million RMB [39]. - The company achieved a total revenue of CNY 2.82 billion, a decrease of 10.68% year-on-year, with a gross margin of 19.34%, down by 1.40 percentage points [46]. Business Operations - The company plans to enhance its e-commerce business by exploring new channels such as Douyin live streaming and accelerating its licensing business [25]. - The company is actively expanding its overseas supply chain and has invested in projects like the ESSEQARO coffee project in Ethiopia [25]. - The main business segment, brand sales, generated 1.35 billion RMB, down 5.92% year-on-year, while foreign trade sales reached 1.40 billion RMB, a decline of 7.31% [34]. - The company's main business revenue decreased by 10.68% to 2.82 billion RMB, with a corresponding cost reduction of 9.10% to 2.27 billion RMB [40]. - The gross margin for the main business was 19.34%, down 1.40 percentage points year-on-year [40]. - The company has established a multi-brand strategy, focusing on enhancing brand influence and expanding market share through various channels [33]. - The company continues to invest in product innovation, launching new series such as the "Thermal Elastic" line to support brand transformation [33]. - The company operates a comprehensive supply chain management system, integrating business flows, information flows, logistics, and capital flows to enhance responsiveness [33]. - The company is focusing on expanding its brand portfolio, including partnerships with international brands like Disney, to enhance market presence [67]. Cost Management - The company implemented cost control measures, resulting in a significant reduction in operating costs across various segments [49]. - The total operating cost for the reporting period was CNY 2,275,254,456.43, a decrease of 9.10% compared to CNY 2,503,000,641.97 in the previous year [54]. - The cost of knitted apparel was CNY 736,467,471.17, accounting for 32.37% of total costs, down 9.05% from CNY 809,716,229.98 in the previous year [51]. - The cost of home textiles was CNY 86,459,069.44, representing 3.80% of total costs, a decrease of 15.78% from CNY 102,660,930.84 year-on-year [51]. - The import and export business cost was CNY 1,067,086,606.63, making up 46.90% of total costs, a slight decrease of 0.66% from CNY 1,074,213,300.50 [51]. - Domestic trade costs increased by 37.41% to CNY 259,667,915.64, which accounted for 11.41% of total costs, compared to CNY 188,979,323.19 in the previous year [51]. Innovation and Development - The company has applied for 2 invention patents and received 6 invention patent authorizations in 2021, reflecting its commitment to innovation [25]. - The company aims to enhance its innovation capabilities through breakthroughs in e-commerce, brand expansion overseas, new offline business models, foreign trade advancements, digital transformation, talent development, and strengthening brand competitiveness [86]. - The company is focusing on training programs to enhance employee skills in brand marketing and quality inspection [130]. Governance and Compliance - The company has established a robust internal control system with 40 internal control regulations to improve risk management and ensure stable operations [91]. - The company adheres to legal and regulatory requirements for corporate governance, ensuring fair treatment of all shareholders, especially minority shareholders [91]. - The company emphasizes transparency in information disclosure, ensuring timely and accurate communication with all stakeholders [91]. - The company has not encountered any issues with related party transactions or misuse of funds by controlling shareholders during the reporting period [91]. - The company has established specialized committees, including the Audit Committee and the Nomination Committee, to enhance governance [117]. Environmental Responsibility - The company has implemented a wastewater treatment process combining biochemical and physical-chemical methods, achieving reuse standards for production [141]. - The company’s air pollution control measures include installing a "water spray + water cooling + electrostatic oil removal" system on shaping machines [141]. - The company has a comprehensive environmental monitoring plan in place, complying with the requirements of its pollution discharge permit [144]. - The company’s emissions of VOCs were recorded at 0.65 mg/m³, significantly below the standard limit of 80 mg/m³ [138]. Legal and Regulatory Matters - The company is involved in a significant arbitration case from 2013, with a total amount of $6,376,028.01 USD at stake [180]. - The company has reported a major lawsuit involving claims against related parties, with amounts totaling 5,738,425.2 USD and additional arbitration fees of 11,896.2 GBP [179]. - The company has no current risk of delisting or bankruptcy proceedings [177]. - The company reached a settlement with ICT Company, paying a total of RMB 47.5 million, including RMB 14,803,647.82 already paid, with the balance settled by January 31, 2022 [182].