SHTD(SH:600647)2022-11-02 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of 5,862,887.80 CNY, a decrease of 49.87% compared to the previous year[6]. - The total operating revenue for 2021 was 97,252,902.02 CNY, representing an increase of 784.15% from 10,999,545.53 CNY in 2020[23]. - The basic earnings per share for 2021 was 0.0421 CNY, down 49.94% from 0.0841 CNY in 2020[24]. - The company reported a net profit of 5,449,866.65 CNY from its main operations in 2021[6]. - The company reported a significant decline in net profit due to the absence of gains from the fair value changes of its investment in Ningbo Tongli Renhe Investment Partnership, which was held in the previous year[34]. - The company achieved operating revenue of 97.25 million yuan in 2021, with a net profit of 5.86 million yuan, resulting in a basic earnings per share of 0.04 yuan[34]. - The comprehensive income for the year was CNY 5,862,887.80, compared to CNY 11,695,170.63 in the previous year, indicating a decrease of about 49.8%[164]. - The company reported a net profit attributable to shareholders of approximately 16.74 million RMB, a decrease of about 1.67 million RMB due to changes in tax estimates[102]. - The company reported a fair value change loss of ¥10,980,000 and realized investment income of ¥13,500,000 during the reporting period[52]. Cash Flow and Liquidity - The net cash flow from operating activities was 70,835,171.73 CNY, a significant improvement from -19,681,086.35 CNY in 2020[23]. - The company experienced a cash flow from operating activities of 238.77 million yuan in the fourth quarter, following negative cash flows in the earlier quarters[34]. - Cash received from sales of goods and services increased by 100.53% to CNY 505,625,079.79, driven by increased property sales and trade business[49]. - The company reported a 380.21% increase in cash received from investment recoveries, totaling CNY 103,500,000.00[49]. - The company reported a net increase in cash and cash equivalents of CNY 174,993,523.55, compared to CNY 4,717,504.43 in the previous year[154]. - The ending balance of cash and cash equivalents was CNY 439,260,152.43, up from CNY 264,266,628.88 at the end of 2020[154]. - Total cash inflow from operating activities was CNY 509,870,023.26, compared to CNY 256,381,601.23 in 2020, reflecting a growth of approximately 99%[153]. - Cash inflow from investment activities included CNY 103,500,000.00 from recovered investments, a substantial increase from CNY 21,553,188.50 in 2020[155]. Assets and Liabilities - The company's total assets increased by 4.99% to 529,687,001.55 CNY at the end of 2021, compared to 504,521,343.65 CNY at the end of 2020[23]. - The company's monetary assets at the end of the reporting period amounted to ¥439,260,152.43, representing 82.93% of total assets, an increase of 66.22% compared to the previous period[50]. - The company's inventory decreased by 46.56% to ¥35,730,132.97, attributed to the cost of property sales in Guangzhou[50]. - Total liabilities increased to ¥196,929,585.15 in 2021 from ¥177,561,268.46 in 2020, reflecting an increase of approximately 10.5%[138]. - The company's total liabilities were ¥163,279,729.51 in 2021, an increase from ¥137,999,108.38 in 2020, which is an increase of about 18.4%[143]. - The total owner's equity reached ¥332,757,416.40 in 2021, compared to ¥326,960,075.19 in 2020, reflecting an increase of approximately 1.7%[138]. Revenue Recognition and Accounting Policies - The company adjusted its revenue recognition method for construction material trade from "gross method" to "net method," leading to discrepancies in reported operating revenue[27]. - The company has implemented a new revenue recognition method for its building materials trading business, changing from gross to net presentation, which affected revenue reporting[103]. - The company identified revenue recognition as a key audit matter due to inherent risks of manipulation to meet specific targets[127]. - The company follows specific accounting policies for revenue recognition and other transactions based on actual operational characteristics[180]. Corporate Governance and Management - The company maintains a clear governance structure, ensuring independence from its controlling shareholder and compliance with legal regulations[60]. - The company has established a comprehensive internal control system, including regulations for shareholder meetings and management of insider information[63]. - The company emphasizes investor relations management through various communication channels, enhancing transparency and investor understanding[64]. - The board of directors has set up performance evaluation standards and incentive mechanisms for management personnel, promoting transparency in appointments[66]. - The company has established a performance evaluation system for senior management, with a compensation and assessment committee responsible for salary policies and performance evaluations[95]. - The company held four board meetings during the year, with all directors attending in person or via communication methods[77]. Market and Industry Conditions - The construction materials industry is experiencing increased demand due to ongoing industrialization and urbanization in China, which is expected to drive future growth[35]. - The company is facing intense competition in the construction materials sector, characterized by low profit margins due to high industry homogeneity and low concentration[35]. - The company faces market risks due to a slowdown in China's economic growth and potential declines in market demand for building materials[58]. Future Plans and Strategies - The company plans to expand its investment, asset management, and trade businesses in 2022 to increase sales revenue[57]. - The company will continue to actively explore new business opportunities to ensure sustainable and stable development[56]. - The company aims to enhance its financial management to mitigate financial risks associated with increased funding needs from trade operations[58]. Employee and Shareholder Relations - The company has a cash dividend policy that requires a minimum of 10% of the distributable profit to be distributed as cash dividends if there are no major investment plans[86]. - The company aims to distribute at least 30% of the average annual distributable profit over the last three years in cash dividends[86]. - The company has a structured training system to enhance employee capabilities and promote overall development[85]. - The total number of ordinary shareholders increased from 8,850 to 9,638 during the reporting period[111].