GRANDLAND GROUP(SZ:002482)2023-04-28 16:00Financial Performance - The company reported a negative audited net asset value for 2022, triggering delisting risk warnings according to the Shenzhen Stock Exchange regulations[5]. - The company has faced continuous operating capability uncertainties as indicated in the 2022 audit report[5]. - The company has experienced negative net profits for the last three accounting years, both before and after deducting non-recurring gains and losses[5]. - The company's operating revenue for 2022 was ¥3,563,727,754.69, a decrease of 55.66% compared to ¥8,036,388,718.56 in 2021[24]. - The net profit attributable to shareholders was -¥5,311,067,932.22, showing a slight improvement of 4.96% from -¥5,588,058,530.22 in the previous year[24]. - The cash flow from operating activities was -¥900,342,599.70, a marginal improvement of 0.49% compared to -¥904,796,362.24 in 2021[24]. - The total assets at the end of 2022 were ¥10,785,958,108.61, down 33.50% from ¥16,218,959,279.97 at the end of 2021[24]. - The net assets attributable to shareholders were -¥4,771,588,377.25, a significant decline of 1,009.29% from ¥524,757,928.74 in 2021[24]. - The basic and diluted earnings per share for 2022 were both -¥3.45, an improvement of 5.22% from -¥3.64 in 2021[24]. - The company reported a decrease in new orders and project commencement rates due to the debt default of Evergrande Group, impacting overall performance[25]. - The company experienced a net loss of -¥4,875,151,891.51 in the fourth quarter, contributing significantly to the annual loss[29]. Operational Challenges - The company has been under pre-restructuring since May 30, 2022, with uncertainty regarding its ability to enter formal restructuring[6]. - The company has faced significant liquidity pressure due to the debt default of its largest client, leading to a substantial decline in new orders[54]. - The company has experienced a decline in operational scale due to debt defaults from its largest client and several real estate companies, leading to increased financial and operational pressure[41]. - The company is currently undergoing a pre-restructuring process due to its inability to repay due debts, with a temporary administrator appointed by the court[59]. - The company has faced multiple lawsuits due to financial difficulties, impacting its operational stability[105]. - The company acknowledges macroeconomic risks that could adversely affect demand for public building decoration services[101]. - The company is experiencing competitive pressures in the architectural decoration sector, with many firms enhancing their capabilities and entering the capital market[102]. Strategic Initiatives - The company aims to enhance its core business focus on the entire chain of architectural decoration, improving specialization and scale[100]. - The company is promoting technological innovations, including modular and mass-produced building products, to adapt to new industry trends[100]. - The company plans to launch the GT Modular Interior Decoration System 1.0 in 2023, which is based on three structural systems and includes various modular products[50]. - The company aims to develop integrated photovoltaic wall technology and aging-friendly renovation technology, which are expected to impact future growth positively[78]. - The company is focusing on smart and low-carbon transformation in its construction practices, particularly in public infrastructure and affordable housing[100]. - The company has established a project management academy to cultivate a competitive project management team, enhancing its operational capabilities[52]. - The company aims to expand its market presence and enhance its technological innovation in the construction decoration industry[138]. - The company plans to continue its investment in research and development for new products and services in the construction industry[140]. Governance and Compliance - The company has a board of directors consisting of nine members, including three independent directors, with a term of three years[114]. - The company has established various internal regulations to ensure compliance with laws and regulations, including rules for board meetings and independent director duties[115]. - The company has implemented a comprehensive internal control system covering key areas such as financial reporting, related party transactions, and project management[120]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, ensuring a complete and independent business system[125]. - The company has a dedicated internal control center reporting directly to the audit committee of the board, enhancing the effectiveness of internal control management[121]. - The company actively manages investor relations and has established a structured information disclosure system to ensure timely and accurate communication with investors[123]. - The company has committed to not engaging in any business that competes with its controlling shareholders, ensuring operational independence[126]. - The company has established a performance management system for evaluating the remuneration of senior management[152]. Research and Development - The company has developed over 400 national patents and software copyrights, showcasing its strong capabilities in technological innovation and research and development[50]. - The company completed 8 R&D projects and 22 utility model patent projects in 2022, focusing on innovative technologies such as prefabricated decoration and BIM applications[57]. - R&D investment decreased by 53.37% to ¥112,246,470.35 in 2022 from ¥240,699,449.29 in 2021, while the R&D investment as a percentage of revenue increased to 3.15% from 3.00%[78]. - The number of R&D personnel dropped by 41.55% to 384 in 2022 from 657 in 2021, with a significant reduction in all educational backgrounds[78]. Social Responsibility and Environmental Commitment - The company emphasizes a commitment to environmental protection, utilizing eco-friendly materials to reduce carbon emissions[177]. - The company has implemented ISO14001 environmental management system certification to ensure compliance with environmental regulations[180]. - The company actively pursues social responsibility alongside economic benefits, promoting a harmonious balance of economic, social, and ecological outcomes[178]. - The company has engaged in discussions regarding the performance and compensation of senior management for the year 2021[160]. - The company has actively engaged in social responsibility initiatives, organizing 17 volunteer service groups with a total of 127 participants, serving over 20,000 citizens since 2022[184]. Future Outlook - Future outlook includes leveraging new technologies and expanding into new markets to drive revenue growth[138]. - The company plans to continue its investment in research and development for new products and services in the construction industry[140]. - Future outlook indicates a projected revenue growth of 25% for 2023, driven by new product launches and market expansion strategies[149]. - The company aims to enhance its compliance and risk management framework, with a budget increase of 30% for the compliance department in 2023[149].