YNYW(SH:600725)2022-04-25 16:00Financial Performance - In 2021, the total profit of the company was CNY 16.05 million, with a net profit attributable to shareholders of CNY 16.05 million, and an undistributed profit of CNY -2.806 billion[3]. - The company's operating revenue for 2021 was CNY 1.697 billion, representing a 23.39% increase compared to CNY 1.375 billion in 2020[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 7.30 million, a significant increase of 350% from CNY 1.62 million in 2020[17]. - The company's total assets at the end of 2021 were CNY 492.11 million, reflecting a 13.34% increase from CNY 434.19 million at the end of 2020[17]. - The basic earnings per share for 2021 was CNY 0.013, unchanged from the previous year, while the diluted earnings per share was also CNY 0.013[19]. - The weighted average return on net assets was 4.94%, slightly down from 5.19% in 2020[19]. - The company did not propose any profit distribution for the year 2021[3]. - The company achieved total sales revenue of RMB 1.697 billion in 2021, representing a year-on-year increase of 23.42% from RMB 1.375 billion in 2020[28]. - The total profit for the year was RMB 16.048 million, remaining stable compared to the previous year[30]. - The net profit after deducting non-recurring items reached RMB 7.2984 million, a significant increase of 350% compared to RMB 1.622 million in the previous year[30]. Operational Highlights - The significant increase in operating revenue and net profit is attributed to an increase in trade volume in 2021[19]. - The total procurement volume for the year was 1.1686 million tons, including 747,200 tons of coal and 87,800 tons of coke[28]. - The company maintained a low asset-liability ratio of approximately 30%, with total assets amounting to RMB 492 million[30]. - The company successfully relocated its headquarters to Kunming and established a wholly-owned subsidiary in Qujing to expand local market operations[25]. - The company implemented a monitoring mechanism for accounts receivable to ensure the safety of funds and timely collection[25]. - The company faced challenges in trade operations due to market price fluctuations and supply shortages but adapted by diversifying trade channels[27]. - The company received government subsidies amounting to RMB 16.192 million, which were closely related to its normal business operations[23]. - The company successfully recovered RMB 22.34 million previously frozen by the court, enhancing its financial stability[26]. Cash Flow and Financial Management - The net cash flow from operating activities decreased by 7.75% to CNY 18,465,010.69 compared to the previous year[33]. - The gross profit margin for the main business increased by 0.52 percentage points to 2.52%[36]. - The operating cost for 2021 was CNY 1,654,330,833.86, reflecting a year-on-year increase of 22.84%[33]. - The net cash flow from financing activities decreased by 41.99% to CNY 4,403,434.55 compared to the previous year[33]. - The company reported a significant reduction in investment activities, with a net cash flow of -CNY 342,497.81, down 151.06% year-on-year[33]. - Cash received from sales and services increased significantly, driven by a rise in trade business volume during the reporting period[48]. - Accounts receivable at the end of the period increased by 56.03% compared to the previous period, mainly due to a significant increase in trade business volume[49]. - Inventory decreased by 54.88% compared to the previous period, primarily due to sales of purchased inventory[51]. Strategic Initiatives and Future Outlook - The company plans to inject high-quality assets as per the restructuring plan, although this is subject to various uncertainties[5]. - The company anticipates ongoing challenges in trade operations due to increased competition, market price fluctuations, and insufficient transportation capacity[60]. - The company aims to enhance its operational capabilities and optimize its business model while seeking trade growth under controlled risk conditions[61]. - The 2022 operational goals include improving financial budget management, exploring various operational methods, and ensuring compliance with regulations[62]. - The company plans to carefully select target assets for injection in accordance with national industrial policies to support its transformation and high-quality development[63]. - The company plans to expand its market presence and invest in new product development to drive future growth[75]. - The management highlighted a focus on enhancing user data analytics capabilities to improve customer engagement and retention[75]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the market[75]. - Future guidance indicates a projected revenue growth of 15% year-over-year for 2022[75]. Governance and Compliance - The company has ensured the accuracy and completeness of the annual report, with no significant omissions or misleading statements[6]. - The company held one annual general meeting and five extraordinary general meetings during the reporting period to ensure shareholder rights[65]. - The board of directors convened 13 meetings, ensuring compliance with regulations and effective decision-making processes[66]. - The company maintained a 100% response rate to investor inquiries on the Shanghai Stock Exchange interactive platform[67]. - The company strictly adhered to the Shanghai Stock Exchange disclosure rules, ensuring accurate and timely information disclosure without any regulatory penalties[67]. - The controlling shareholder, Yunnan Energy Investment Group, committed to avoiding competition with the company for five years starting from September 9, 2019, through various integration measures[68]. - The company has implemented a robust investor relations management system to facilitate communication with investors[67]. - The company has not engaged in any insider information violations during the reporting period[67]. Management and Organizational Changes - The company underwent a board restructuring, with several new appointments including the election of He Juanjuan as Chairman and Wei Zhongxiong as General Manager[85]. - The company reported changes in its supervisory board, with new elections held during the second and fifth extraordinary general meetings of 2021[85]. - The company experienced resignations from key positions, including the departure of the former Chairman Chen Jialin and General Manager Fan Jian[86]. - The company has seen a significant turnover in its management team, indicating potential strategic shifts[86]. - The company is focused on enhancing its economic efficiency indicators as part of its remuneration assessment for directors and senior management[84]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 32,615, a decrease from 32,687 in the previous month[127]. - The largest shareholder, Yunnan Energy Investment Group Co., Ltd., holds 357,258,744 shares, representing 28.99% of the total shares[129]. - The company has not disclosed any significant changes in its share capital structure during the reporting period[125]. - The company has not reported any overdue amounts in its entrusted financial management activities, with a total amount of 40,000,000 RMB in non-principal floating income products[121]. Audit and Internal Controls - The internal control system was continuously monitored, with no significant defects found during evaluations[101]. - The internal control audit report received a standard unqualified opinion, indicating no significant issues were found[104]. - The company has identified revenue recognition as a key audit matter due to inherent risks associated with management's manipulation to meet specific targets[144]. - The management is responsible for ensuring the financial statements are free from material misstatement due to fraud or error, emphasizing the importance of internal controls[146]. Environmental and Legal Compliance - The company has no environmental penalties or additional environmental information to disclose, adhering strictly to relevant laws and regulations[106]. - The company has maintained a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[116]. - There are no significant litigation or arbitration matters reported for the year[116].