Guangshen Railway(SH:601333)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was CNY 20,206,156,783, representing a 23.59% increase compared to CNY 16,349,365,706 in 2020[18]. - The net profit attributable to shareholders for 2021 was a loss of CNY 973,119,082, which is a 74.43% increase in loss compared to a loss of CNY 557,875,873 in 2020[18]. - The net cash flow from operating activities for 2021 was CNY 1,002,468,547, down 24.97% from CNY 1,336,173,449 in 2020[19]. - The total assets at the end of 2021 were CNY 37,403,422,526, an increase of 1.69% from CNY 36,780,451,862 at the end of 2020[19]. - The basic earnings per share for 2021 was (CNY 0.14), a 75.00% increase in loss compared to (CNY 0.08) in 2020[20]. - The company reported a decrease in net assets attributable to shareholders, which was CNY 27,241,949,775 at the end of 2021, down 3.37% from CNY 28,192,839,252 at the end of 2020[19]. - The company reported a significant increase in operating costs, which rose by 18.92% to RMB 21.261 billion, compared to RMB 17.878 billion in the previous year[31]. - The company reported a significant increase in credit impairment losses, totaling RMB 40,612,916, compared to RMB 358,384 in 2020[190]. - The total operating costs increased to RMB 21,614,986,429, up 18.5% from RMB 18,212,838,473 in the previous year[190]. - The company reported a total revenue of CNY 16,510,960,708 from sales, up from CNY 13,273,524,914 in 2020, reflecting a growth of 24.5%[195]. Corporate Governance - The board of directors proposed not to distribute profits for the year 2021, nor to increase capital reserves by issuing new shares[3]. - The company has continuously improved its corporate governance structure since its listing in 1996, ensuring compliance with regulatory requirements[73]. - The board of directors consists of 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors[72]. - The company has established specialized committees, including an audit committee and a compensation committee, to oversee critical governance functions[100]. - The independent directors have expressed their independent opinions on various matters, including the fairness of a capital increase plan and the profit distribution proposal for 2020, ensuring compliance with regulations and protection of minority shareholders' interests[98]. - The company has a structured approach to its audit process, with recommendations made to ensure timely completion and quality of the annual report audit[101]. - The company has established a board diversity policy, considering various factors such as gender, cultural background, and professional experience in selecting board members[121]. - The company has not faced any administrative penalties due to environmental issues during the reporting period, indicating compliance with environmental regulations[140]. Risk Management - The company has detailed potential risks in the "Board Report" section of the annual report[5]. - The company faces risks related to macroeconomic conditions, regulatory changes, and market competition, which may impact its performance[53]. - The company has implemented a robust internal control and risk management framework to ensure accurate financial reporting and compliance with regulations[137]. - The company has actively trained employees on risk management and internal control systems to enhance overall awareness and compliance[138]. - The company has a comprehensive internal control system that includes risk management measures across various operational aspects since 2006, in compliance with international standards and regulations[138]. Future Plans and Strategies - The company plans to expand its railway operation services, which have become a new growth point since 2009, as more high-speed railways are completed in the Guangdong-Hong Kong-Macao Greater Bay Area[17]. - The company plans to focus on high-quality development and enhance service capabilities while navigating the uncertainties in the economic environment for 2022[26]. - The company aims to enhance service quality and innovate management and technology to become a leading railway transport service provider[51]. - The company plans to achieve a passenger volume of 51 million and a cargo volume of 21.15 million tons in 2022[52]. - The company intends to implement structural reforms in freight transport, increasing the frequency of domestic and international freight trains[52]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 2 billion RMB earmarked for potential deals[80]. - The company plans to expand its service network by adding 200 kilometers of new railway lines in the next fiscal year[83]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 193,087[160]. - Public shareholding amounts to 4,454,085,700 shares, which is 62.88% of the total share capital, with a market value of approximately RMB 9.977 billion based on a closing price of RMB 2.24 per A share[168]. - The largest shareholder, China Railway Guangzhou Group Co., Ltd., holds 2,629,451,300 shares, accounting for 37.12% of total shares[161]. - HKSCC NOMINEES LIMITED holds 1,467,668,629 shares, representing 20.72% of total shares, with 50,612,330 A shares and 1,417,056,299 H shares[161]. Audit and Compliance - The company reported a standard unqualified audit opinion from PwC Zhongtian[2]. - The financial statements have been audited and fairly reflect the company's financial position as of December 31, 2021[174]. - The audit committee held six meetings during the reporting period, with all members achieving a 100% attendance rate[126]. - The company has maintained a continuous service of 14 years for domestic auditors and 19 years for international auditors, complying with regulatory requirements for auditor rotation[129]. - The company has not made any changes to accounting policies or estimates, nor has it corrected any significant accounting errors during the reporting period[152]. Employee and Compensation Information - The total pre-tax compensation for the executives during the reporting period amounted to 414.80 million yuan[79]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 4.148 million[89]. - The company has a total of 161 employees with a postgraduate degree and 5,192 with a bachelor's degree, indicating a diverse educational background among its workforce[104]. - The company's compensation policy links employee salaries closely to economic performance and individual performance, with total salary and benefits paid to employees detailed in the financial statements[105].