IDEAL(SZ:002740)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was ¥841,981,877.10, a decrease of 44.40% compared to ¥1,514,315,524.37 in 2020[24]. - The net profit attributable to shareholders for 2021 was -¥771,881,728.25, an improvement of 50.47% from -¥1,558,563,087.37 in 2020[24]. - The net cash flow from operating activities was -¥24,381,835.36, showing a 35.07% improvement from -¥37,552,214.31 in 2020[24]. - The total assets at the end of 2021 were ¥2,133,099,422.69, a decrease of 19.31% from ¥2,643,520,347.50 at the end of 2020[24]. - The company's net assets attributable to shareholders decreased by 84.83% to ¥137,883,127.26 in 2021 from ¥908,790,294.37 in 2020[25]. - The basic and diluted earnings per share for 2021 were both -¥1.70, an improvement of 50.44% from -¥3.43 in 2020[24]. - The company reported a total retail sales of gold and silver jewelry in China of ¥3,041 billion in 2021, with a year-on-year increase of 29.8%[34]. - Total revenue for the reporting period reached ¥822,143,241.59, with a gross margin of 12.97%[39]. - The revenue from franchise sales dropped by 66.52% to ¥119.45 million, accounting for 14.19% of total revenue[62]. - The revenue from distribution sales decreased by 40.38% to ¥542.88 million, representing 64.48% of total revenue[62]. - The revenue from self-operated sales fell by 28.09% to ¥159.81 million, making up 18.98% of total revenue[62]. - The gross profit margin for the jewelry industry was 14.77%, down by 5.50% from the previous year[64]. Corporate Governance - The company is currently in a state without a controlling shareholder, as of November 10, 2021[23]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a fair and transparent election process[100]. - The company has established a complete and independent corporate governance structure, complying with relevant laws and regulations[104]. - The company maintains a fully independent business operation, with no reliance on shareholders for design, sales, or procurement[104]. - The financial department operates independently, adhering to accounting standards and regulations, with a complete financial accounting system[105]. - The company has a clear asset ownership structure, with no guarantees provided for shareholder debts[105]. - The company has established a strong presence in the market with its subsidiaries and partnerships, indicating potential for market expansion[119]. - The company is committed to corporate governance, as evidenced by the election of independent directors and the establishment of a supervisory board[114][119]. Risk Management - The company has acknowledged the existence of major defects in the internal control over financial reporting[7]. - The management has outlined potential risks and countermeasures in the future development outlook section of the report[8]. - The company emphasizes the importance of risk awareness for investors regarding forward-looking statements and plans[8]. - The company faces risks from fluctuating raw material prices and the impact of COVID-19 on traditional retail[92]. - The company has experienced cash flow issues leading to overdue debts and multiple litigation cases[93]. - The company is currently in a pre-restructuring phase, with the risk of bankruptcy liquidation if the restructuring plan is not successfully implemented[95]. Legal Matters - The company is taking legal actions against former shareholders of a subsidiary that is undergoing bankruptcy restructuring[93]. - The company is currently undergoing bankruptcy reorganization, with a court decision for pre-reorganization and a management team appointed to oversee the process[194]. - The company has ongoing litigation involving amounts such as 645.88 million yuan related to a contract dispute, which has been adjudicated but remains unexecuted[195]. - The company has reported a total of 4,157.7 million in judgments from various legal disputes, indicating significant financial implications[199]. - The company is currently dealing with a legal case involving 10.22 million related to a franchise agreement[200]. Operational Changes - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year[9]. - The company has closed 220 stores during the reporting period, resulting in a total revenue loss of ¥27,926.39 million from these closures[46]. - The company is focusing on expanding its market presence in East China, South China, and Southwest China while maintaining a high-density layout in core regions[58]. - The company is exploring potential mergers and acquisitions to strengthen its market position[111]. - The company is expanding its online presence through live streaming on platforms like Douyin, with plans for further investment in 2022[91]. Internal Control and Compliance - The company identified two significant internal control deficiencies related to financial reporting during the reporting period[159]. - The company has implemented measures to strengthen the collection of historical accounts receivable and control the generation of new accounts receivable[156]. - The company is currently in the process of rectifying identified internal control deficiencies, with ongoing efforts to enhance the quality of accounts receivable management[156]. - The company has improved its financial reporting processes, ensuring that the 2021 performance forecast data aligns closely with audited figures[161]. Employee and Management - The total number of employees at the end of the reporting period was 405, with 416 employees receiving salaries during the period[148]. - The company has a training plan aimed at improving employee skills and management quality, focusing on jewelry marketing, management, design, and processing[151]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[153]. - The company has a total of 206 sales personnel, 42 finance personnel, and 5 technical personnel among its employees[148]. Future Outlook - The company has set a performance guidance for the next fiscal year, aiming for a revenue growth of approximately 10%[111]. - The company plans to enhance product lines for both wedding and daily wear, focusing on online consumer adaptation[90]. - The company is committed to sustainable practices and aims to reduce its environmental impact through innovative solutions[111]. - The company plans to strengthen internal controls over inventory management, including tracking inventory aging and timely evaluation of inventory impairment[186].