Financial Performance - The Group recorded revenue of approximately RMB155.5 million for the year ended 31 December 2021, representing a decrease of approximately 24.7% compared to RMB206.7 million in 2020[6]. - Loss attributable to owners of the Company decreased from approximately RMB219.0 million in 2020 to approximately RMB100.5 million in 2021, representing a decrease of approximately 54.1%[6]. - The Group's revenue decreased by 24.7% to approximately RMB155.5 million in 2021 compared to the previous year[20]. - Loss attributable to owners of the Company decreased by 54.1% to approximately RMB100.5 million in 2021[20]. - The Group incurred a loss of approximately RMB100,528,000 for the year ended 31 December 2021[183]. - As of 31 December 2021, the Group had net current liabilities of approximately RMB1,071,627,000 and net liabilities of approximately RMB1,047,797,000[183]. - The Group's bank borrowings amounted to approximately RMB163,312,000 and bonds of approximately RMB638,180,000, which are subject to renewal or repayment within the next twelve months[183]. - There is a material uncertainty regarding the Group's ability to continue as a going concern, dependent on successful negotiations with creditors[183]. - The consolidated financial statements have been prepared on a going concern basis, contingent on the Group's ability to meet its liabilities as they fall due[183]. Revenue Breakdown - Sales of shoes, clothes, and others contributed approximately RMB125.6 million in revenue for 2021, down from RMB191.4 million in 2020[6]. - Sales of fabrics contributed approximately RMB29.9 million in revenue for 2021, an increase from RMB15.2 million in 2020[6]. - The total revenue from shoes, clothes, and others was RMB125.6 million, accounting for 80.8% of total revenue in 2021[33]. - Sales of shoes and clothes decreased by approximately 34.4% from RMB191.4 million in 2020 to RMB125.6 million in 2021[30]. - The sales of fabric products increased from approximately RMB15.2 million in 2020 to approximately RMB29.9 million in 2021, representing a 96.4% increase[30]. Cost and Profitability - The gross profit margin for the Group's products improved to approximately 2.3% in 2021, compared to a gross loss margin of approximately 6.0% in the previous year[6]. - The Group's cost of sales decreased by 30.6% from approximately RMB219.0 million in 2020 to approximately RMB151.9 million in 2021[34]. - The gross profit for 2021 was approximately RMB3.6 million, with a gross profit margin of 2.3%, compared to a gross loss of approximately RMB12.3 million and a gross loss margin of 6.0% in 2020[39]. - Other income decreased by 48.4% from approximately RMB40.8 million in 2020 to approximately RMB21.1 million in 2021, primarily due to a decline in net foreign exchange gains[44]. - Selling and distribution expenses decreased by 58.9% from approximately RMB7.4 million in 2020 to approximately RMB3.0 million in 2021[44]. - General and administrative expenses decreased by 66.6% from approximately RMB101.3 million in 2020 to approximately RMB33.8 million in 2021[44]. - Finance costs decreased by 46.2% from approximately RMB127.0 million in 2020 to approximately RMB68.3 million in 2021[44]. Market and Business Outlook - The Group's fabrics business showed signs of recovery in 2021, following the recovery of domestic demand for textile products in China[7]. - The economy of Korea, a major overseas market for the Group, is projected to grow approximately 4% in 2021, aiding the recovery of local consumption markets[7]. - Management plans to closely monitor sales markets and adjust sales strategies as necessary to maintain normal operations[7]. - The Group is focused on maintaining financial performance, financial position, and cash flow to ensure ongoing operations[7]. Corporate Governance - The Company has adopted the Corporate Governance Code as its own code of corporate governance, ensuring compliance throughout the year ended December 31, 2021[74]. - The Board comprises three executive Directors and three independent non-executive Directors, maintaining compliance with the Listing Rules regarding independent Directors[75]. - The Company emphasizes continuous professional development for Directors to keep their knowledge and skills updated[109]. - The Board is responsible for leadership and control of the Company, overseeing strategic decisions and performance, while delegating day-to-day management to executive Directors and senior management[86]. - The Company established a Regulatory Compliance Committee to ensure adherence to relevant regulations[123]. - The Nomination Committee consists of three independent non-executive Directors, focusing on board structure and director appointments[124]. - The Company will continue to review and enhance its corporate governance practices to meet the requirements of the Corporate Governance Code[77]. Internal Control and Audit - The Company appointed Elite Partners Risk Advisory Services Limited as the Internal Control Adviser to enhance internal controls and ensure timely escalation of significant financial issues[173]. - The Group's internal control system is designed to ensure reliability of financial reporting and compliance with applicable laws and regulations[195]. - The Audit Committee reviews the independent auditor's independence and effectiveness of the audit process annually[198]. - The Board is responsible for maintaining an adequate internal control system to safeguard shareholder investments and Company assets[195]. Employee and Workforce - The Group's workforce increased to 83 employees as of December 31, 2021, compared to 55 employees in the previous year[69]. - The Company is committed to staff training and development, emphasizing a learning and sharing culture within the organization[69].
满地科技股份(01400) - 2021 - 年度财报