SHD(SH:600630)2023-04-27 16:00Financial Performance - In 2022, the company's operating revenue was CNY 2,194,362,212.92, a decrease of 25.60% compared to CNY 2,949,499,275.48 in 2021[21] - The net profit attributable to shareholders was CNY -522,182,282.03, compared to CNY -304,599,710.80 in the previous year[21] - The company's total assets decreased by 28.12% to CNY 1,702,880,678.15 from CNY 2,369,031,122.02 in 2021[22] - The company's net assets attributable to shareholders decreased by 42.82% to CNY 696,957,925.03 from CNY 1,218,990,363.78 in 2021[22] - The company reported a total revenue of 2.19436 billion yuan in 2022, a decrease of 25.60% compared to the previous year[33] - The net profit attributable to shareholders was a loss of CNY 52.22 million, an increase in loss of 71.43% year-on-year[45] - The basic earnings per share for 2022 was -1.23 yuan, compared to -0.72 yuan in 2021[23] - The company faced a significant decline in operating profit, which was -509.87 million yuan, down 68.15% from the previous year[33] - The weighted average return on equity decreased to -54.51% in 2022, down 32.35 percentage points from 2021[23] Cash Flow and Investments - The net cash flow from operating activities increased by 37.31% to CNY 103,645,104.52 from CNY 75,483,811.28 in 2021[22] - The company reported a net cash flow from operating activities of -98.99 million yuan[26] - The net cash outflow from investment activities decreased, with cash expenditure on construction projects reduced[65] - The net cash outflow from financing activities increased significantly, primarily due to higher cash repayments of loans[65] - Accounts receivable decreased by 38.34% to ¥172,442,994.50 from ¥279,688,159.76, attributed to enhanced collection efforts[66] - Prepayments decreased by 78.01% to ¥101,840,735.55 from ¥463,210,998.37, due to adjustments in settlement methods[66] Operational Changes and Strategies - The company closed inefficient self-operated stores to improve operational quality and reduce costs[31] - The company implemented a comprehensive reform plan to enhance operational efficiency and adapt to market changes[30] - The company aims to enhance its product development capabilities, focusing on functional, comfortable, and fashionable designs[42] - The company is expanding its international trade business, targeting markets in Europe, Japan, Australia, and Southeast Asia[38] - The company has established a multi-brand strategy, enhancing the image of its well-known brands such as "Sanqiang" and "Hailuo"[40] - The company plans to adjust production based on market demand, particularly for protective clothing and masks, in response to changing market conditions[52] - The company plans to continue focusing on product development and market expansion despite recent sales declines[58] Market and Industry Trends - The textile industry is expected to face challenges in 2023, with a projected contraction in export scale due to a high base in 2022[36] - In December 2022, China's knitted product exports were USD 8.907 billion, a year-on-year decline of 15.44%[35] - The retail sales of clothing, shoes, and textiles in China fell to CNY 1,300.34 billion, a decrease of 6.45% year-on-year[34] - The company reported a significant decline in revenue from the Southwest region, which fell by 38% year-on-year, while the North China region saw a 17% increase[80] Research and Development - The company applied for 7 invention patents and obtained 1 authorized invention patent during the reporting period[31] - The company's R&D expenses amounted to CNY 30.18 million, down 26.37% from the previous year[46] - The number of R&D personnel is 59, accounting for 4.5% of the total workforce[63] - Research and development investments increased by 18%, focusing on innovative technologies in the textile industry[103] Governance and Compliance - The company has established a performance evaluation system that aligns annual goals with employee incentives to boost productivity[92] - The company maintains a transparent information disclosure process, ensuring all shareholders have equal access to information[92] - The company did not report any significant differences in governance compared to regulations set by the China Securities Regulatory Commission[94] - The company has not faced any objections from directors regarding company matters during the year[115] - The company has not reported any violations or penalties against its directors, supervisors, senior management, or controlling shareholders during the reporting period[164] Environmental and Social Responsibility - The company invested 3.06 million yuan in environmental protection during the reporting period[133] - The company has implemented pollution prevention measures, including advanced wastewater treatment processes and emission control technologies[135] - The total wastewater generated in 2022 was 267,000 m³, meeting the discharge standards with minimal impact on the surrounding water environment[136] - The company made a total contribution of 94.77 million yuan to public welfare projects, primarily donating living supplies to frontline medical staff during the pandemic[141] - The company implemented a 6-month rent reduction for small and micro enterprises and individual businesses in response to government initiatives[142] Legal and Financial Matters - The company has not faced any delisting risks or bankruptcy restructuring issues during the reporting period[156] - The company has not reported any instances of non-standard audit opinions from its auditors[154] - The company is required to pay approximately $6.5 million and corresponding interest losses to ICT Company as per the arbitration ruling[160] - The company reached a settlement with ICT Company, paying a total of RMB 47.5 million, which includes previously paid amounts, with the final payment completed by January 28, 2022[160] - The company has no outstanding court judgments or significant debts that remain unpaid during the reporting period[165] Shareholder and Capital Structure - The total number of ordinary shareholders as of the end of the reporting period is 56,851, an increase from 54,259 at the end of the previous month[179] - The largest shareholder, Shanghai Textile (Group) Co., Ltd., holds 127,811,197 shares, representing 30.08% of the total shares[182] - The company has no changes in share capital structure during the reporting period[178] - There are no significant changes in the company's major contracts or cash asset management[176]