SMEG(SH:600689)2023-04-27 16:00Financial Performance - In 2022, the company's operating revenue reached ¥1,033,664,834.74, an increase of 18.13% compared to ¥875,049,815.52 in 2021[19] - The net profit attributable to shareholders was -¥12,915,738.83, a decrease of 209.36% from a profit of ¥11,809,970.13 in 2021[19] - The company's total assets increased by 3.90% to ¥800,221,561.81 at the end of 2022, compared to ¥770,167,488.40 at the end of 2021[19] - The basic earnings per share for 2022 was -¥0.06, a decline of 200.00% from ¥0.06 in 2021[20] - The weighted average return on equity decreased by 5.72 percentage points to -2.99% in 2022 from 2.73% in 2021[20] - The company reported a total loss of 10.55 million RMB in profit for the year, a decrease of 176.81% compared to the previous year[30] - The total profit for the year was -10.55 million RMB, a decrease of 24.28 million RMB year-on-year[38] - The net profit attributable to the parent company's owners was approximately -12.92 million RMB, with a net profit of -1.41 million RMB after excluding non-recurring gains and losses[38] - The company reported a significant increase in sales expenses, which rose to ¥44,265,314.87 in 2022 from ¥23,395,299.53 in 2021, an increase of 89.0%[162] - The net profit for 2022 was a loss of CNY 15,071,601.33, compared to a profit of CNY 13,727,242.38 in 2021, indicating a significant decline in profitability[166] Cash Flow and Assets - The cash flow from operating activities was ¥28,486,052.80, a significant recovery from -¥19,338,330.69 in 2021[19] - Cash flow from operating activities was 32.54 million RMB in Q4, showing recovery after a negative cash flow in Q3[23] - The net cash flow from operating activities was CNY 28,486,052.80, a recovery from a negative cash flow of CNY -19,338,330.69 in the previous year[168] - Cash and cash equivalents rose to ¥316,251,167.83, compared to ¥289,094,398.63 in 2021, representing an increase of approximately 9.4%[157] - The company reported cash inflows from investment activities totaling CNY 667,518,980.53, compared to CNY 552,398,934.08 in 2021, showing a growth of approximately 20.83%[169] - The cash outflow for investment activities was CNY 660,629,920.88, resulting in a net cash flow from investment activities of CNY 6,889,059.65, down from CNY 10,722,590.40 in 2021[169] Revenue Segments - The import and export trade segment generated revenue of 749.13 million RMB, up 19.59% year-on-year, with a profit of 2.76 million RMB, an increase of 124.03%[28] - The security service segment reported revenue of 262.73 million RMB, a growth of 19.00%, but profit decreased by 10.06%[29] - The property leasing segment's revenue was 22.58 million RMB, down over 20% year-on-year, with a profit of 7.95 million RMB[30] - The textile product segment generated revenue of CNY 522,437,117.16, with a gross profit margin of 6.24%, reflecting a year-on-year increase of 3.26 percentage points[41] Strategic Initiatives - The company plans to focus on risk management and strategic adjustments in response to market challenges, as detailed in the management discussion section[6] - The company aims to stabilize operations and enhance service quality to improve customer satisfaction and reduce turnover rates in its property leasing segment[30] - The company is actively pursuing asset revitalization and has successfully completed the transfer of equity in Shanghai Yindun Electronic Information Technology Co., Ltd., achieving a transaction price higher than the assessed value[31] - The company aims for qualitative improvement and reasonable quantitative growth in 2023, focusing on internal growth and external development strategies[57] - The company plans to enhance brand building in security services and stabilize core customers while expanding service offerings[57] Governance and Compliance - The board of directors consists of 7 members, with independent directors making up over one-third, ensuring compliance with governance regulations[64] - The company held 2 shareholder meetings during the reporting period, approving 15 resolutions to safeguard shareholder rights[64] - The company has established a robust internal control system in accordance with relevant regulations, ensuring effective risk management and compliance[67] - The company disclosed 52 interim announcements and adhered to information disclosure regulations, ensuring transparency and equal access to information for all shareholders[69] - The company has a structured approach to assess the annual performance targets for senior management based on relevant regulations[82] Environmental and Social Responsibility - The company invested 5.55 million RMB in environmental protection during the reporting period[107] - The company did not face any administrative penalties related to environmental issues during the reporting period[109] - The company contributed a total of 0.1625 million RMB to public welfare projects, benefiting 32 individuals[111] Legal Matters - The company has been involved in a legal dispute regarding a land lease contract, with a court ruling in favor of the opposing party, which the company is appealing[115] - The company signed the handover document on April 13, 2023, regarding the overall land and housing transfer, which does not affect the ongoing retrial application to the Shanghai High People's Court[116] Financial Position - The total equity at the end of 2022, including minority interests, was CNY 425,584,761.27, down from CNY 426,690,529.97 in 2021, marking a decrease of about 0.26%[176] - The retained earnings at the end of 2022 were reported at CNY -31,579,526.02, worsening from CNY -30,473,757.32 in 2021, reflecting an increase in accumulated losses[177] - The total owner's equity at the beginning of 2022 was CNY 438,500,500.10, which reflects the company's financial position before the reported losses[175] - The company’s financial performance in 2022 highlights the necessity for new strategies to improve profitability and restore equity levels[178]