AURORA(SH:600666)2022-04-22 16:00Financial Performance - The company reported a net profit attributable to shareholders of -¥483 million for the year 2021, resulting in no profit distribution or capital reserve transfer to share capital[8]. - The company's operating revenue for 2021 was RMB 699,693,403.08, an increase of 34.67% compared to RMB 519,555,616.47 in 2020[30]. - The net profit attributable to shareholders of the listed company was a loss of RMB 483,122,435.32, improving from a loss of RMB 684,915,831.55 in 2020[31]. - The net cash flow from operating activities was RMB 27,626,865.53, compared to a negative cash flow of RMB 36,630,657.85 in 2020[31]. - The total assets decreased by 11.09% to RMB 2,624,881,306.89 from RMB 2,952,180,363.25 in 2020[31]. - The basic earnings per share for 2021 was -0.39, an improvement from -0.56 in 2020[32]. - The company experienced a reduction in asset impairment losses, contributing to the improved net profit[33]. - The company reported a net profit attributable to shareholders for Q4 2021 of -324,789,777.26 RMB, reflecting a decline compared to previous quarters[36]. - The company reported a significant increase in sales expenses by 47.69% to ¥9,457,889.65, primarily due to higher sales commissions and after-sales service costs[56]. - The company reported a total of 258,545,551.03 RMB in recovered occupied funds, with an outstanding amount of 352,296,638.33 RMB yet to be recovered[174]. Legal and Regulatory Issues - As of December 31, 2021, the company has recognized a provision for liabilities amounting to ¥46.83 million related to 512 lawsuits from small and medium investors[6]. - The company is currently involved in multiple lawsuits, with some accounts and assets frozen, and is actively seeking to reach settlements with creditors[14]. - The company received a qualified audit opinion due to uncertainties surrounding litigation and guarantee matters, impacting the financial statements[6]. - The company has outstanding debts totaling RMB 92.7 million to Longjiang Bank, which have not been repaid due to liquidity issues[103]. - The company is currently involved in multiple debt disputes, including a loan of RMB 372.34 million that has been declared due by Guangfa Bank[101]. - The company has provided guarantees for loans totaling RMB 100 million to Shanghai Aijian Trust without following internal approval processes[98]. - The company is facing risks of asset freezes due to debt disputes, although the frozen assets do not significantly impact operations[103]. - The company has been named in multiple lawsuits concerning guarantee responsibilities, with ongoing legal proceedings[191]. - The company is involved in significant litigation matters, including a lawsuit against Hangzhou Zunyan regarding a trust investment agreement due to losses from an early termination of the trust plan[190]. - The company has disclosed its litigation status in a public announcement, detailing the cumulative litigation matters over the past year[191]. Corporate Governance - The board of directors has established four specialized committees: the Strategy Committee, Nomination Committee, Compensation and Assessment Committee, and Audit Committee, which operate according to relevant regulations[111]. - The company has implemented measures to enhance internal control systems, including the revision of the seal management system to prevent similar internal control deficiencies from occurring again[111]. - The company emphasizes investor relations management, utilizing various communication channels to ensure all shareholders have equal access to information[113]. - The independent directors have actively participated in training to better understand their rights, obligations, and responsibilities, ensuring compliance and promoting the company's overall interests[112]. - The company has made efforts to improve corporate governance and enhance competitiveness through continuous training for directors, supervisors, and senior management[113]. - The company has established a decision-making process for related party transactions to ensure fairness and compliance with legal regulations[174]. - The company has committed to rectifying issues raised by regulatory bodies, including a corrective action report submitted in January 2022[133]. Market and Operational Strategy - The company plans to expand its sales of sapphire products and related equipment, which contributed to the revenue growth[33]. - The sapphire material market is experiencing growth, particularly in consumer electronics, with increasing demand for sapphire materials in smartwatches and other devices[45]. - The company is actively seeking to improve its governance structure and has implemented measures to enhance team performance and cultural development[43]. - The company plans to continue developing new sapphire crystal growth equipment to improve automation and overall performance[46]. - The company is focusing on reducing production costs by locating crystal growth enterprises in regions with lower electricity costs[84]. - The company is actively investing in the development of new materials and technologies related to sapphire and semiconductor substrates[82]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 100 million allocated for this purpose[126]. Financial Health and Risks - The company’s net assets at the end of 2021 were negative, which will lead to a risk warning for delisting under the Shanghai Stock Exchange rules[12]. - The company faces potential bankruptcy liquidation risks if creditors file for auction or reorganization in court[16]. - The company has a significant inventory balance of 494 million yuan, with a provision for inventory depreciation at 35.92% of the inventory book value[95]. - The company is actively seeking new financing channels to alleviate debt risks and ensure stable business operations[89]. - The company is monitoring raw material and electricity price fluctuations, which significantly affect production costs[93]. - The company is facing risks from intensified market competition in the sapphire materials sector, with potential impacts on market share[92]. Employee and Management - The company has a total of 1,215 employees, with 879 in production, 15 in sales, 160 in technical roles, 44 in finance, and 117 in administration[144]. - The company emphasizes training programs to enhance employees' professional skills and overall quality[147]. - The company is committed to talent development, focusing on improving the quality and capabilities of its technical and management teams[88]. - The total remuneration paid for outsourced labor during the reporting period amounted to CNY 1,398,594.40[148]. - The company has established a differentiated assessment mechanism for its remuneration system, aligning it with long-term development goals[145]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to grow by 10% to 1.32 billion[125]. - New product launches are anticipated to contribute an additional 200 million in revenue over the next fiscal year[126]. - The company plans to distribute dividends primarily in cash, with a minimum of 10% of the distributable profit for the year, and aims for cumulative cash distributions over the last three years to be at least 30% of the average annual distributable profit[176]. - The company is committed to maintaining operational stability during the transition period of the board of supervisors[121].