JINGCHENG MAC(SH:600860)2022-03-17 16:00Financial Performance - The net profit attributable to shareholders for 2021 was -23,282,271.43 yuan, with an undistributed profit at year-end of -687,333,700.32 yuan, resulting in no profit distribution for the year [6]. - The company's operating revenue for 2021 was approximately ¥1.18 billion, representing an increase of 8.67% compared to ¥1.09 billion in 2020 [27]. - The net profit attributable to shareholders for 2021 was approximately -¥23.28 million, a significant decrease from ¥156.43 million in 2020 [27]. - The net cash flow from operating activities for 2021 was approximately -¥32.69 million, compared to -¥27.91 million in 2020 [27]. - The total assets as of the end of 2021 were approximately ¥1.57 billion, a decrease of 8.03% from ¥1.71 billion at the end of 2020 [27]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥677.66 million, down 3.12% from ¥699.47 million at the end of 2020 [27]. - Basic earnings per share for 2021 was -0.05 CNY, a decrease from 0.34 CNY in 2020 [30]. - The weighted average return on equity decreased to -3.38% in 2021 from 30.13% in 2020, a decline of 33.51 percentage points [30]. - The company reported a significant decrease in investment cash inflow by 99.73% to ¥996,336.65, mainly due to the previous year's property transfer [90]. Acquisition and Restructuring - The company is in the process of acquiring 80% of Qingdao Beiyang Tianqing Shulian Intelligent Co., Ltd. to enhance its operational and profitability capabilities [8]. - The acquisition plan has undergone multiple board meetings and received conditional approval from the China Securities Regulatory Commission (CSRC) on December 15, 2021 [11]. - The company has successfully passed the restructuring review by the China Securities Regulatory Commission, enhancing its core competitiveness through the acquisition of intelligent manufacturing enterprise Beiyang Tianqing [41]. - The restructuring plan has undergone multiple approvals, with conditional approval granted by the China Securities Regulatory Commission (CSRC) on December 15, 2021 [106]. - The company is focused on enhancing its market position through strategic acquisitions and restructuring efforts [102]. - The company has been actively working on the restructuring despite the challenges faced, ensuring alignment with shareholder interests [106]. Operational Challenges and Responses - The company faced operational challenges due to the COVID-19 pandemic, including increased costs and market instability, which have heightened operational risks [12]. - The company has established a pandemic prevention mechanism to mitigate the adverse effects of COVID-19 on its operations [12]. - The company is focusing on governance improvements and operational efficiency to ensure sustainable development [38]. - The company will continue to implement COVID-19 prevention measures while ensuring smooth operations and maintaining relationships with customers, suppliers, and logistics partners [146]. Market and Product Development - The company plans to expand its market presence and invest in new product development, particularly in the LNG industry [27]. - The company is focusing on enhancing its production capabilities through the construction of intelligent production lines for composite gas cylinders [27]. - The company reported a significant increase in LNG storage tank market orders, contributing to revenue growth in the domestic market [38]. - The international market showed recovery, with demand for gas cylinders rebounding in the U.S. and increased recognition in the European market [38]. - The company is focusing on the development of high-pressure seamless gas cylinders, which are widely used in various industries, enhancing its market presence globally [50]. - The company aims to enhance its competitive advantage by optimizing its natural gas product structure and innovating operational models [114]. - The company plans to improve its product structure by exiting low-margin products and increasing the share of high-value products such as high-end cylinders and lightweight high-pressure cylinders [146]. Research and Development - The company reported a significant increase in R&D investment aimed at technological advancements in its product offerings [27]. - Research and development expenses remained stable at approximately ¥26.54 million, a slight decrease of 0.07% from the previous year's ¥26.56 million [68]. - The number of R&D personnel accounted for 7.2% of the total workforce, with 20 holding master's degrees [85]. - The company has invested CNY 50 million in R&D for new technologies aimed at improving operational efficiency [170]. - The company is committed to enhancing its R&D capabilities, increasing investment in technology development, and addressing key technical bottlenecks to improve product competitiveness [146]. Financial Management and Governance - The company has established a comprehensive internal management system to enhance risk prevention capabilities, ensuring compliance with external regulations and improving operational efficiency [41]. - The company has a structured remuneration decision-making process for its directors and senior management, based on annual assessment indicators [181]. - The company has maintained its commitment to corporate governance by ensuring that remuneration proposals are reviewed and approved by the board and shareholders [181]. - The board has ensured compliance with legal procedures and the effectiveness of submitted legal documents regarding transactions [199]. Future Outlook - The company aims to stabilize traditional markets while closely monitoring emerging market opportunities [146]. - The company plans to strengthen partnerships with large gas companies to develop a comprehensive service chain to meet increasing market demands [110]. - The LNG refueling station market is projected to expand significantly due to favorable policies related to carbon neutrality and clean energy [110]. - The company aims to enhance its independent innovation capabilities and expand market share in response to intensified competition in the gas storage and transportation market [121].