Kingee Culture(SZ:002721)2022-04-29 16:00Business Operations and Changes - The company reported a significant change in its major business operations, with no alterations since its listing[26]. - The controlling shareholder changed in April 2020, with Haixin Assets becoming the major shareholder after acquiring 149,383,805 shares from the previous shareholder, Bikuang Longxiang[26]. - The company’s registered address has changed multiple times, with the current address being No. 11, 9th Floor, 69 Fuxing Road, Haidian District, Beijing[22]. - The company’s official website is www.king1.com.cn, providing access to its financial reports and other disclosures[22]. - The company has a dedicated board secretary and securities representative for investor relations, ensuring effective communication[22]. Financial Performance - The company's operating revenue for 2021 was ¥2,950,792,946.32, a decrease of 24.26% compared to ¥3,896,180,389.56 in 2020[29]. - The net profit attributable to shareholders for 2021 was -¥1,289,062,353.36, an improvement of 49.64% from -¥2,559,932,726.07 in 2020[29]. - The net cash flow from operating activities for 2021 was ¥403,528,080.56, a significant increase of 822.86% compared to -¥55,823,607.04 in 2020[29]. - The total assets at the end of 2021 were ¥9,054,901,259.51, down 12.19% from ¥10,311,633,010.64 at the end of 2020[29]. - The net assets attributable to shareholders at the end of 2021 were ¥1,123,694,358.78, a decrease of 54.01% from ¥2,443,346,795.31 at the end of 2020[29]. - The company reported a basic earnings per share of -¥1.35 for 2021, improving by 54.85% from -¥2.99 in 2020[29]. - The company experienced a net loss of -¥970,963,823.97 in the fourth quarter of 2021, contributing to the overall negative net profit for the year[33]. - Non-recurring losses for 2021 totaled -¥55,357,281.97, compared to a gain of ¥48,725,812.13 in 2020[34]. Market and Industry Insights - Domestic gold consumption in 2021 reached 1,120.90 tons, a year-on-year increase of 36.53%, and a growth of 11.78% compared to the pre-pandemic level in 2019[39]. - The production of raw gold in China for 2021 was 328.98 tons, a decrease of 9.95% year-on-year, with a reduction of 36.36 tons compared to 2020[39]. - The gold jewelry segment saw a significant year-on-year growth of 44.99%, with consumption reaching 711.29 tons[39]. - The company is focusing on multi-channel marketing strategies, including deepening existing channel construction and promoting new brand development[39]. Product Development and Innovation - The company is engaged in the development of diverse product categories, including cultural and creative precious metal crafts and various types of jewelry[41]. - The company’s innovative product designs are influenced by cultural themes, aiming to meet the evolving consumer preferences for customization and aesthetic value[39]. - The company launched a new light luxury brand "KINGEE" targeting younger demographics, enhancing its brand portfolio[48]. - The company has focused on product innovation, launching themed products related to space exploration and cultural heritage, which have been well-received by customers[57]. Corporate Governance and Management - The company maintains complete independence in business operations, personnel management, asset ownership, organizational structure, and financial operations, with no reliance on the controlling shareholder[104]. - The company has established an independent financial department with a complete accounting system, ensuring financial operations are separate from the controlling shareholder[104]. - The company has implemented a comprehensive governance structure that complies with the requirements set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[102]. - The company actively respects and protects the rights of stakeholders, promoting balanced interests among shareholders, employees, and society[102]. Shareholder Engagement and Meetings - The company held 7 shareholder meetings in 2021, ensuring equal treatment of all shareholders, particularly minority shareholders, through both in-person and online formats[102]. - The board of directors convened 13 meetings in 2021, with a composition of 9 members, including 3 independent directors, adhering to legal requirements[102]. - The supervisory board held 11 meetings in 2021, consisting of 3 members, including 1 employee representative, effectively overseeing the company's financial and managerial compliance[102]. Risk Management and Future Outlook - The company faces risks from macroeconomic conditions, raw material price fluctuations, market competition, strategic transformation, and pandemic impacts[98]. - The management team emphasized a focus on risk management and compliance to ensure sustainable growth in the future[119]. - The company is expected to provide further guidance on its future outlook and performance targets in upcoming communications[112]. Employee Relations and Training - The company emphasizes employee rights protection, providing timely labor remuneration and benefits, including holiday and birthday welfare[161]. - The company conducted 128 training sessions covering various business areas, with a total of 3,480 employees trained, achieving a coverage rate of 99%[145]. - The total number of employees at the end of the reporting period was 1,340, with 855 in sales and 73 in finance[142]. Legal and Compliance Matters - The company is currently involved in a lawsuit with an amount in dispute of 65.16949 million RMB, with the case still under first-instance trial[178]. - The company has a pending lawsuit against Beijing Jinyi Yue Jewelry Co., Ltd. for a total amount of 214.1917 million RMB, with only 7 million RMB paid to date[180]. - The company has not reported any significant accounting policy changes or errors in the current reporting period[172].