ZLC(SH:600818)2022-04-19 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of CNY 37,121,329.50, a decrease of 61.39% compared to CNY 96,133,553.22 in 2020[4]. - The company's operating revenue for 2021 was CNY 722,118,127.08, down 1.67% from CNY 734,397,436.23 in 2020[17]. - The basic earnings per share for 2021 was CNY 0.12, a decline of 60% from CNY 0.30 in 2020[17]. - The net cash flow from operating activities was negative CNY 33,865,849.94 in 2021, compared to positive CNY 10,797,380.05 in 2020[17]. - The total assets at the end of 2021 were CNY 930,296,132.12, a decrease of 2.52% from CNY 954,386,311.94 at the end of 2020[17]. - The company's net assets attributable to shareholders increased by 5.75% to CNY 682,568,875.40 at the end of 2021, up from CNY 645,447,545.90 at the end of 2020[17]. - The weighted average return on equity decreased to 5.59% in 2021, down 10.46 percentage points from 16.05% in 2020[17]. - The company reported a total comprehensive income of RMB 24,084,014.20 for 2021, compared to RMB 83,141,017.91 in 2020[139]. - The company reported a net profit attributable to shareholders for the year was approximately 37.14 million RMB, with quarterly profits of 1.26 million RMB, 19.20 million RMB, 2.75 million RMB, and 13.91 million RMB respectively[18]. Revenue and Sales - The company achieved operating revenue of 722.12 million yuan, a decrease of 1.67% compared to the previous year[30]. - The revenue from bicycles and children's vehicles was 541.83 million yuan, down 6.38% year-on-year[32]. - The electric bicycle segment generated revenue of 122.16 million yuan, an increase of 58.38% compared to the previous year[32]. - The company produced 3,995,206 bicycles and children's vehicles, with a sales volume of 3,994,612 units, reflecting a decrease of 4.60% in production and 4.63% in sales year-on-year[34]. - The company has actively engaged in e-commerce and live streaming sales, with e-commerce revenue accounting for about 70% of total sales[23]. Costs and Expenses - Manufacturing raw material costs increased by 52.09% year-on-year, totaling 52,059,667.72, accounting for 92.20% of total costs[35]. - Labor costs in the manufacturing sector decreased by 24.49% year-on-year, amounting to 2,704,562.51, representing 4.79% of total costs[35]. - The company reported a significant reduction in financial expenses by 62.87%, attributed to decreased bank loans[30]. - Research and development expenses increased by 28.94% to 35.34 million yuan, indicating a focus on innovation[30]. - The company experienced a significant increase in sales expenses, which were RMB 31,900,007.88 in 2021, compared to RMB 41,478,299.38 in 2020, indicating a shift in marketing strategy[138]. Investments and Future Plans - The company plans to promote high-altitude wind power technology development to contribute to China's "2030 carbon peak" and "2060 carbon neutrality" goals[21]. - The company signed a strategic cooperation agreement with China Energy Construction Group to collaborate in the field of high-altitude wind power generation technology[22]. - The company plans to develop a large-scale cultural tourism complex in its advantageous geographical location near Shanghai Disneyland[28]. - The company is exploring equity investments in potential IPO candidates to maximize shareholder value[62]. - The company is focusing on expanding its service industry while stabilizing its manufacturing sector to maximize shareholder value[21]. Shareholder and Governance - The company plans to distribute a cash dividend of CNY 0.66 per 10 shares, totaling CNY 21,215,562.06, which represents 57.15% of the 2021 net profit[4]. - The company has not conducted a capital reserve transfer for the year 2021, opting to retain profits for future distribution[4]. - The company’s chairman, Chen Shan, has held various significant positions in governmental and industry associations, enhancing the company's influence[68]. - The company has a total of 11 directors and supervisors, with the highest individual compensation being 741,600 yuan for Zhang Jianjun[70]. - The company has established an audit committee to enhance governance and oversight functions[75]. Risks and Challenges - The company has indicated that there are risks associated with the commercialization of high-altitude wind power generation, particularly regarding the performance of the Jixi high-altitude wind power project[6]. - The company is facing uncertainties regarding the commercial viability of its high-altitude wind energy projects[63]. - The company has not reported any major deficiencies in internal controls during the reporting period, reflecting effective management oversight[82]. Audit and Compliance - The financial statements for the year ending December 31, 2021, were audited and deemed to fairly reflect the company's financial position and operating results[121]. - The audit report must highlight any significant uncertainties regarding the company's ability to continue as a going concern if applicable[128]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring accurate financial reporting[160]. - The audit identified key audit matters, including the confirmation of revenue recognition and the fair value of financial assets, which require significant management judgment[127]. Employee and Workforce - The total number of employees in the parent company is 186, while the main subsidiaries employ 527, resulting in a total of 713 employees[77]. - The company has implemented various training programs, including new employee training and specialized certifications[79]. - The company’s compensation policy includes a salary system for senior management and a performance-based system for other employees[78].