SSI(SZ:002742)2022-04-27 16:00Financial Performance - The company reported a significant increase in revenue, with a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[1]. - The company's operating revenue for 2021 was ¥2,489,145,222.21, a decrease of 2.37% compared to ¥2,549,509,857.65 in 2020[21]. - The net profit attributable to shareholders for 2021 was -¥333,437,976.48, representing a decline of 554.05% from a profit of ¥73,436,772.60 in 2020[21]. - The company's total revenue for 2021 was ¥2,489,145,222.21, a decrease of 2.37% compared to ¥2,549,509,857.65 in 2020[54]. - The construction materials segment generated revenue of ¥1,583,309,655.22, down 14.38% from ¥1,849,300,071.48 in the previous year, accounting for 63.61% of total revenue[55]. - The pharmaceutical segment achieved revenue of ¥867,146,237.43, an increase of 30.41% from ¥664,916,596.01 in 2020, representing 34.84% of total revenue[55]. - The company reported a significant increase in financial pressure due to tightening liquidity and rising financing costs, impacting overall profitability[50]. Market and Growth Strategies - The company has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[1]. - The company is positioned as a major player in the global chemical raw material and pharmaceutical formulation production markets, with China accounting for 20% of the global pharmaceutical sales market[39]. - The company has implemented an internationalization strategy, with overseas projects beginning to yield results[41]. - The company is actively pursuing international expansion, particularly in Africa, to diversify its market presence and reduce business risks[89]. Research and Development - Investment in new product development increased by 25%, focusing on innovative materials and technologies in the construction sector[1]. - The company has invested in R&D, establishing a pharmaceutical research center that supports new drug development and has a complete drug R&D system[44]. - The company filed 11 patent applications and participated in the formulation of 8 national industry standards during the reporting period, enhancing its innovation capabilities[51]. - The company aims to strengthen its research and development capabilities, particularly in extending product life cycles and promoting original research[88]. Corporate Governance and Internal Controls - Internal control deficiencies were identified, with the actual controller having significant influence over the company's operations, which may pose risks[1]. - The company has committed to enhancing its corporate governance practices to address identified risks and improve transparency[1]. - The company reported a significant internal control deficiency related to the misuse of funds by major shareholders, with corrective measures planned for implementation by April 18, 2022[128]. - The company plans to strengthen internal control management and improve the internal audit department's functions to prevent future issues[129]. - The company has implemented measures to prevent non-operating fund occupation by major shareholders and related parties, including strengthening management systems and internal controls[135]. Environmental and Social Responsibility - The company has initiated comprehensive environmental remediation efforts, including the installation of dust reduction and solid waste disposal equipment, to ensure sustainable operations[51]. - The company has established a self-monitoring plan in compliance with environmental regulations[146]. - The company conducts at least one emergency drill for environmental incidents annually[147]. - The company has implemented a waste classification system, with wastewater categorized into five types for proper treatment[144]. - The company has not conducted any poverty alleviation or rural revitalization work during the reporting period[152]. Legal and Compliance Issues - The accounting firm Tianjian has issued a non-standard audit report, highlighting significant uncertainties related to the company's ongoing operations[162]. - The company has not reported any environmental accidents during the reporting period[149]. - The company is involved in ongoing litigation with amounts exceeding 1 billion, indicating potential future cash inflows[170]. - The company has successfully resolved disputes with several construction firms, resulting in favorable outcomes and payments received[169]. Leadership and Management Changes - The company experienced changes in its board of directors, with multiple resignations including the chairman and general manager on August 25, 2021[101]. - The company appointed Xiang Liping as the chairman and general manager on November 26, 2021[102]. - The company has been actively adjusting its management team to enhance operational efficiency[101]. - The management team includes professionals with backgrounds in finance, engineering, and pharmaceuticals, indicating a diverse skill set[105][106]. Employee and Shareholder Engagement - The company has established a performance-oriented compensation system to motivate employees, which includes base salary, performance bonuses, and incentives[123]. - The company ensures shareholder rights by providing both in-person and online voting options for shareholders[150]. - The company maintains investor relations through regular disclosures and a dedicated investor hotline[151]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to 358.88 million CNY[114].