ST花王(603007) - 2021 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2021 was ¥166,221,467.09, a decrease of 70.94% compared to ¥572,030,486.72 in 2020[21]. - The net profit attributable to shareholders of the listed company was -¥592,789,279.50, compared to -¥51,934,060.69 in the previous year[21]. - The company's basic earnings per share for 2021 was -1.78 CNY, a significant decline from -0.15 CNY in 2020[22]. - Net profit attributable to shareholders decreased by 1041.43% year-on-year, primarily due to a 70.94% drop in operating revenue[23]. - The weighted average return on equity fell to -73.47% in 2021, down 68.77 percentage points from 2020[22]. - The company reported a significant decline in gross margin for ecological landscape projects, with a gross margin of -99.48%[47]. - The company's operating revenue decreased by 70.94% to ¥166,221,467.09 compared to ¥572,030,486.72 in the same period last year[43]. - The company's main business revenue and costs decreased by 70.97% and 25.12% respectively compared to the previous year, primarily due to fewer new orders and significant project delays[48]. - The gross profit margin declined significantly, with major projects like the Tangshan Bay tourism project and the Yangzhou Qinzheng cultural industry park reporting reduced income compared to previous confirmations[49]. Cash Flow and Assets - The cash flow from operating activities was ¥272,700,273.16, a significant improvement from -¥130,522,833.01 in 2020[21]. - The net cash flow from operating activities increased by 308.93% year-on-year, attributed to improved collection efforts and delayed supplier payments[24]. - The net cash flow from investment activities improved by 22.05%, attributed to the absence of large external investments during the reporting period[44]. - The net cash flow from financing activities decreased by 255.29%, primarily due to reduced bank loans resulting from the controlling shareholder's weakened guarantee capability[44]. - The company's monetary funds decreased by 68.15% to 54.93 million RMB, primarily due to the repayment of bank loans[60]. - The company reported a significant decrease in trading financial assets, with a current balance of 0.00 and a change of -503,103.99, impacting profits by -24,301.35[71]. - The total assets decreased by 27.74% to ¥2,657,216,404.91 at the end of 2021, down from ¥3,677,482,394.84 at the end of 2020[21]. - The company reported a total of 9,654.79 million RMB in non-operating fund occupation from controlling shareholders, with a provision for bad debts of 4,827.40 million RMB[157]. Operational Challenges - The company faced significant financial challenges, as indicated by the drastic decline in both revenue and net profit[21]. - The company faced challenges in project execution due to a lack of new orders and delays in existing projects, impacting revenue generation[22]. - The company reported a significant increase in impairment provisions for subsidiaries, contributing to a large rise in net losses[23]. - The company faced challenges due to a decrease in new orders and delays in project commencement, impacting revenue generation[44]. - The company has acknowledged the risks associated with its future development in the report[7]. - The company faced risks related to strategic transformation and upgrading, with potential short-term declines in profitability due to increased competition in the ecological construction sector[85]. Management and Governance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[6]. - The audit report issued by Zhonghui Certified Public Accountants included a reserved opinion, which the company has addressed in detail[5]. - The company has established a transparent performance evaluation and incentive mechanism for its board members and senior management[94]. - The company has established specialized committees within the board, including audit, nomination, compensation, and strategy committees[107]. - The company has a structured approach to evaluating the performance of its directors and senior management, linking compensation to individual contributions and company performance[102]. - The company has made adjustments in its management team, with several directors and independent directors resigning due to personal reasons or strategic arrangements[104]. Strategic Initiatives - The company aims to achieve carbon neutrality through the development of landscaping and ecological restoration projects, aligning with national carbon peak and neutrality goals[37]. - The company is actively integrating industry resources and collaborating with top universities and research institutions to create a full industry chain from planning to operation[38]. - The company is focused on capital operation to improve asset structure and enhance profitability[81]. - The company plans to enhance project collection efforts while managing supplier payments to stabilize operations[24]. - The company is exploring new product development and digital applications in landscape construction, including recycling waste building materials[84]. Shareholder Relations - The company held three shareholder meetings during the reporting period, ensuring compliance with legal requirements and enhancing participation from minority shareholders[91]. - The company maintains independence from its controlling shareholder in business operations, personnel, assets, and finances, ensuring a complete independent business system[91]. - The company has established a diversified investor communication mechanism to ensure effective engagement with shareholders and protect their rights[136]. - The company has a cash dividend policy that mandates at least 10% of distributable profits to be distributed as cash dividends if the company is profitable[116]. Compliance and Internal Control - The company has established a comprehensive internal control management system, including governance, procurement, sales, human resources, and investment management[122]. - The company's internal control audit report for 2021 received a negative opinion from the auditing firm Zhonghui, indicating significant deficiencies in internal controls[123]. - The board of directors has identified the major deficiencies and is actively promoting the implementation of corrective measures to address these issues[125]. - The company emphasizes a commitment to environmental responsibility, promoting a "five transformations" concept in green design, which includes humanization, localization, low carbon, longevity, and intelligence[132].