AURORA(SH:600666)2022-05-17 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 reported a decrease in net assets attributable to shareholders by RMB 311,367,284.33, primarily due to negative net profit [31]. - The company achieved operating revenue of ¥699,693,403.08, an increase of ¥180,137,786.61, representing a year-on-year growth of 34.67% [55]. - The net profit attributable to shareholders was -¥483,122,435.32, a year-on-year improvement of ¥201,793,396.23 [55]. Litigation and Legal Risks - 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 facing litigation risks, with some accounts and assets already frozen by judicial authorities [14]. - The actual controller's shares are under judicial freeze due to debt disputes, posing a risk of change in actual control [15]. - The company will continue to monitor the situation regarding potential bankruptcy risks as it faces multiple lawsuits [16]. - The company has received a total of 567 lawsuits from investors, with ongoing communication efforts to reach settlements [105]. - 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 outstanding debts totaling RMB 92.7 million to Longjiang Bank, which have not been repaid due to liquidity issues [103]. - The company is actively seeking resolutions for its debts and is in discussions with creditors to minimize adverse impacts [100]. - The company is negotiating with creditors to resolve litigation issues that may affect operational stability [94]. - The company is involved in multiple lawsuits, with claims totaling 114,900.00 CNY, 163,550.00 CNY, and 269,976.07 CNY for unpaid goods [196]. Operational Challenges and Strategies - The company is facing challenges from the pandemic and power usage policies but managed to stabilize operations through strategic focus and customer collaboration [41]. - The company plans to enhance its market presence through the development of new sapphire products and expansion of sales channels [33]. - The company is focusing on expanding its sapphire crystal production capacity in regions with lower electricity costs to enhance profit margins [84]. - The company aims to divest ineffective assets to reduce performance drag and improve profitability [189]. - The company is actively seeking to resolve litigation matters and improve communication with creditors to mitigate the impact of lawsuits on operations [189]. Research and Development - The company has obtained over 30 patent authorizations during the reporting period, enhancing its technological innovation capabilities [52]. - Total R&D investment reached ¥75,999,814.91, representing 10.86% of operating revenue [72]. - The company reduced R&D expenses by 40.85% to ¥33,027,858.98, reflecting a strategic adjustment in project investments [56]. - The company emphasizes its technological R&D capabilities, enhancing automation levels and product quality through innovation [54]. - The company is investing in new materials and technologies, particularly in the semiconductor and optical sectors, to stay competitive [82]. 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 made continuous improvements to its corporate governance structure and internal management systems in accordance with relevant laws and regulations [110]. - 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 deepen their understanding of their rights and responsibilities, ensuring compliance with governance standards [112]. - The company has not reported any significant differences in governance practices compared to the regulations set by the China Securities Regulatory Commission [113]. Financial Management - 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 has implemented measures to manage raw material and electricity price fluctuations, which significantly impact production costs [93]. - The company has implemented a transparent competitive mechanism for procurement, fostering long-term partnerships with quality suppliers [167]. - The company has a commitment to maintain its operational capabilities while ensuring long-term development through its profit distribution strategy [176]. Market Trends and Opportunities - 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 anticipates new development opportunities in sapphire crystal growth equipment and substrate sales due to the expanding Mini-LED and Micro-LED markets [84]. - The large-scale commercialization of 5G technology is driving upgrade demands in smart devices, including smartphones and smart cars, creating a diverse and customized product landscape [85]. - The company is focusing on optimizing product structure and revitalizing idle assets, enhancing business layout to meet customer demands in the consumer electronics sector [41]. - The company is actively exploring investment opportunities in the sapphire crystal growth sector, driven by increased interest from investors [84].