A-Zenith(603389)2022-04-25 16:00Financial Performance - In 2021, the company reported a net profit attributable to shareholders of -66,834,881.92 RMB, a decrease of 499.91% compared to the previous year[4]. - The total operating revenue for 2021 was 275,957,624.10 RMB, down 11.53% from 311,920,901.31 RMB in 2020[21]. - The net cash flow from operating activities was -27,419,014.24 RMB, representing a decline of 165.28% compared to 42,002,827.33 RMB in 2020[21]. - The net profit attributable to the shareholders of the listed company was a loss of RMB 66.83 million, with a loss of RMB 85.22 million after deducting non-recurring gains and losses[28]. - The basic earnings per share for 2021 was -0.25 yuan, a decrease of 516.67% compared to 2020[22]. - The weighted average return on equity was -10.44% in 2021, a decrease of 12.96 percentage points from the previous year[22]. - The company reported a cash flow from operating activities of RMB -54.62 million in the first quarter of 2021[23]. - The net cash flow from operating activities dropped significantly by 165.28% to -CNY 27,419,014.24, primarily due to increased inventory purchases and reduced government subsidies[61]. - The net loss for 2021 was CNY 67,760,770.54, compared to a net profit of CNY 12,438,362.80 in 2020[200]. Assets and Liabilities - The company's total assets increased by 2.03% to 853,608,268.18 RMB at the end of 2021, compared to 836,622,724.24 RMB at the end of 2020[21]. - The net assets attributable to shareholders decreased by 10.77% to 599,391,180.65 RMB at the end of 2021, down from 671,724,889.70 RMB at the end of 2020[21]. - Total liabilities reached RMB 255,704,216.43, up from RMB 172,234,130.50, marking an increase of around 48.5%[193]. - Cash and cash equivalents were reported at RMB 88,968,706.17, down from RMB 141,438,584.13, reflecting a decrease of approximately 37.1%[191]. - Accounts receivable slightly decreased to RMB 28,976,650.27 from RMB 29,837,839.70, a reduction of about 2.9%[191]. - Inventory increased to RMB 198,960,252.71 from RMB 187,595,855.70, indicating a growth of approximately 6.8%[191]. Revenue and Sales - The company achieved operating revenue of 275.96 million yuan, a decrease of 11.53% compared to the same period last year[58]. - The company reported a total revenue of RMB 275.96 million in 2021, a decrease of 11.53% compared to the previous year[28]. - The company opened 9 new stores and closed 27 underperforming stores, including 6 direct-operated and 21 dealer-operated stores[29]. - Revenue from the company's custom furniture business reached 53.33 million yuan, representing a year-on-year growth of 44.28%[31]. - The company's revenue in the Yangtze River Delta region increased significantly, with Shanghai's revenue at 68.67 million yuan, a year-on-year increase of 19.79%[32]. - The East China region accounted for 69% of total sales, with revenue of CNY 182,804,482.40, down 11.39% year-on-year[64]. Operational Challenges - The company faced significant operational risks as detailed in the management discussion and analysis section of the report[8]. - In the first half of 2021, the company experienced a revenue growth of 27.93%, but faced significant challenges in the second half due to the resurgence of COVID-19, impacting sales activities[28]. - The company faced increased credit impairment losses and asset impairment losses compared to the previous year[28]. - The company acknowledges potential risks from the recurring COVID-19 pandemic, which could affect various operational aspects including procurement and sales[99]. Strategic Initiatives - The company is focusing on high-end customization and deepening its presence in the Yangtze River Delta region as part of its strategic initiatives[28]. - The company has launched over 100 new products, with more than 30 already available in stores, focusing on high-quality and stylish new offerings[30]. - The company aims to build a comprehensive home design service platform, focusing on high-quality development and enhancing design service capabilities to meet the growing demand for personalized home solutions[89]. - The company plans to launch the Maxform sub-brand targeting younger consumers, emphasizing eco-friendliness, simplicity, and modern design, while also developing the AZ1865 series in collaboration with top designers to blend Eastern and Western aesthetics[91]. - The company will enhance customer experience by upgrading retail stores and integrating high-end custom furniture with overall space design, transitioning to a lifestyle-oriented shopping model[93]. Research and Development - Research and development expenses totaled CNY 14,384,378.25, accounting for 5.21% of total revenue[71]. - The total number of R&D personnel was 141, representing 11.8% of the total workforce[73]. - The company has received multiple quality awards, including being recognized as a leading enterprise in the furniture industry in 2021[57]. Governance and Management - The company has a structured compensation decision-making process based on performance evaluations[111]. - The total compensation for all directors, supervisors, and senior management during the reporting period amounted to 5.7039 million yuan[111]. - The company has implemented a performance-based compensation policy, reducing fixed salary proportions and increasing sales performance-linked compensation[125]. - The company has established a training program focusing on practical skills and multi-level talent development, utilizing both on-site and remote teaching methods[126]. Environmental and Community Engagement - The company has established a pollution control mechanism, ensuring compliance with air quality standards and reducing VOC emissions through the use of water-based paints[135]. - The company invested 3.68 million CNY in upgrading its waste gas treatment systems to meet local environmental standards[139]. - The company actively participates in ecological initiatives, utilizing solar energy and promoting green factory construction[136]. - The company has committed to maintaining a good relationship with local communities and prioritizes hiring qualified local residents[141]. Shareholder Information - The total number of common shareholders as of the end of the reporting period is 9,973, an increase from 9,567 at the end of the previous month[168]. - The top ten shareholders hold a total of 168,480,000 shares, representing 64.12% of the total shares[170]. - Shanghai Yazhen Investment Co., Ltd. is the controlling shareholder, with a 60% stake, while the actual controllers hold 20% each[171]. - The company has repurchased a total of 1,285,380 shares, representing 0.49% of the total share capital, as part of its share repurchase plan[178].