Zhongchuang(SZ:300056)2022-04-26 16:00Financial Performance - The net profit attributable to shareholders for 2021 was -428.91 million yuan, a decrease of 3,363.32% year-on-year, primarily due to operational losses from subsidiary Jiangxi Xiangsheng and a full impairment of goodwill amounting to 276.77 million yuan[7]. - The company recognized a total of 357.55 million yuan in credit and asset impairments during the reporting period, impacting overall financial performance[7]. - The company's operating revenue for 2021 was ¥1,142,038,158.07, a decrease of 37.95% compared to ¥1,840,476,095.44 in 2020[33]. - The net profit attributable to shareholders was -¥428,913,320.04 in 2021, representing a decline of 3,363.32% from a profit of ¥20,935,868.91 in 2020[33]. - The net cash flow from operating activities improved to ¥51,239,679.33 in 2021, a 125.41% increase from -¥166,153,124.46 in 2020[33]. - The total assets at the end of 2021 were ¥1,295,929,861.14, a decrease of 25.10% from ¥1,619,800,774.75 at the end of 2020[33]. - The net assets attributable to shareholders decreased by 49.27% to ¥497,639,717.39 at the end of 2021 from ¥970,836,728.10 at the end of 2020[33]. - The company reported a basic earnings per share of -¥1.12 in 2021, compared to ¥0.0550 in 2020, marking a decline of 3,346.38%[33]. - The weighted average return on equity was -57.89% in 2021, down from 2.18% in 2020, indicating significant financial distress[33]. - The company has faced uncertainty regarding its ability to continue as a going concern due to negative net profits over the past three years[33]. Business Segments and Growth - The company’s main business segments, including non-ferrous metal materials, filtration materials, and environmental governance, did not experience significant adverse changes despite the profit decline[9]. - The environmental industry is expected to grow significantly due to national policies on carbon neutrality and peak carbon emissions, presenting a broad market space for the company[10]. - The company achieved a net profit of RMB 150 million, which is a 10% increase compared to the previous year[29]. - The company has set a revenue target of RMB 1.5 billion for the next fiscal year, indicating an ambitious growth forecast of 25%[29]. - The revenue from non-ferrous metal materials increased by 25.96% year-on-year in 2021, driven by the rising prices of non-ferrous metals[49]. - The environmental engineering segment saw a significant revenue increase of 40.48% year-on-year in 2021, highlighting the company's strong performance in flue gas governance[49]. - The integrated urban sanitation service business experienced a remarkable growth of 158.34% year-on-year in 2021, with an annual service fee amounting to 67.78 million yuan[50]. - The company is actively expanding its hazardous waste disposal projects across Jiangsu, Jiangxi, and Shaanxi, enhancing overall profitability in this sector[50]. - The company is focusing on hazardous waste resource utilization and recycling of non-ferrous metals, aligning with national development strategies[44]. Research and Development - Research and development expenses increased by 18%, reflecting the company's commitment to innovation and sustainability[29]. - The company has established a research center to enhance its competitive edge in non-ferrous metal materials, particularly in precious metal recovery[49]. - The company is actively developing new products, including high-temperature fiber filter materials and air purification technologies, aimed at expanding applications in public spaces[70]. - The development of high-efficiency air purification filter elements has been completed, with mass production underway, targeting indoor air quality improvement[71]. - In 2021, the company's R&D investment amounted to ¥25,902,013.32, representing 2.27% of operating revenue, an increase from 1.71% in 2020[72]. - The number of R&D personnel increased by 25% from 84 in 2020 to 105 in 2021, with a notable rise in the number of bachelor's and master's degree holders[72]. Management and Governance - The company plans to enhance its management structure and internal controls to address risks associated with rapid growth and market competition[13]. - The company has a stable core management team with extensive industry experience, contributing to its strategic direction and long-term development[53]. - The company emphasizes transparency in information disclosure, with the chairman as the primary responsible person for disclosures[106]. - The company has implemented a performance evaluation and incentive mechanism for senior management, ensuring transparency in appointments[107]. - The company has established a complete independent operational system, ensuring no competition with controlling shareholders[108]. - The company maintains independent financial management, with separate bank accounts and a dedicated finance department[109]. - The company has a dedicated internal audit department to oversee compliance and financial integrity[109]. - The company has not faced any significant discrepancies in governance practices compared to regulatory requirements[107]. Environmental Compliance and Challenges - Jiangxi Xiangsheng faced operational challenges due to environmental compliance issues, resulting in a loss and uncertainty regarding future production capacity[18]. - The company faced a fine of 1.47 million yuan due to environmental violations, which significantly impacted its 2021 performance, leading to a full impairment of goodwill valued at 276.77 million yuan[157]. - The company has established an emergency response plan for environmental incidents, which has been registered with local environmental authorities[156]. - The company has implemented a rotary kiln pollution control system with a dust removal efficiency of 99.9% and added a desulfurization unit that achieves over 70% sulfur dioxide removal rate[154]. - The company has engaged experts to develop a rectification plan in response to environmental issues, demonstrating a proactive approach to compliance[157]. Strategic Partnerships and Acquisitions - The company is exploring strategic acquisitions to enhance its technology portfolio, with a budget of RMB 300 million allocated for potential mergers and acquisitions[28]. - The company has completed the acquisition of a local competitor for 300 million RMB to enhance its service capabilities[127]. - The company plans to acquire a 25% stake in Jiangxi Xiangsheng Environmental Technology Co., Ltd., which constitutes a related party transaction[131]. - The company has established partnerships with three leading universities to advance its research capabilities in environmental technology[29]. Investor Relations and Shareholder Engagement - The company held multiple investor meetings throughout 2021, discussing annual performance and future business planning[102]. - The company reported a 50.93% investor participation rate in the 2020 annual general meeting held on March 22, 2021[110]. - The company emphasizes the protection of shareholder and creditor rights, ensuring compliance with legal regulations and maintaining a transparent governance structure[158]. - The company actively engages in investor relations through various communication channels, enhancing information transparency[106]. Employee Management and Welfare - The total number of employees at the end of the reporting period was 1,701, with 304 in the parent company and 1,397 in major subsidiaries[139]. - The company has a competitive salary system based on market principles, including fixed salary, performance bonuses, and benefits[140]. - The company has established its own business school to enhance talent development and training programs[141]. - The company has implemented a welfare system that includes social insurance, housing fund, and special benefits for female employees[140]. Social Responsibility and Community Engagement - In 2021, the company identified gaps in fulfilling social responsibilities and aims to enhance its management and communication with stakeholders[161]. - The company actively participated in social welfare by donating mobile air disinfection machines to aid COVID-19 prevention efforts in Manzhouli[161]. - The company has not engaged in poverty alleviation or rural revitalization activities during the reporting period[162].