JSSS(SH:600220)2024-04-29 12:58Financial Performance - The net profit attributable to shareholders for 2023 was -100,076,386.04 yuan, while the parent company achieved a net profit of 17,021,151.85 yuan[5]. - The actual profit available for distribution to shareholders at the end of the year was 474,199,719.44 yuan after accounting for the cash dividend of 35,666,806.52 yuan distributed for the 2022 fiscal year[5]. - The company will not distribute cash dividends or issue bonus shares for 2023 due to the negative net profit and the auditor's opinion regarding significant uncertainties related to going concern[6]. - In 2023, the company achieved operating revenue of CNY 1.717 billion, a decrease of 13.86% compared to 2022[23]. - The net profit attributable to shareholders was a loss of CNY 100.08 million, a decline of 185.35% year-on-year[23]. - The company reported a net cash flow from operating activities of CNY 527.10 million, a significant improvement from a negative cash flow of CNY 115.07 million in 2022[23]. - The weighted average return on equity decreased to -4.87%, down 10.42 percentage points from 2022[24]. - The company’s total assets decreased by 14.40% to CNY 4.061 billion at the end of 2023 compared to the end of 2022[23]. - The company’s net assets attributable to shareholders decreased by 8.84% to CNY 1.967 billion at the end of 2023[23]. - The company’s operating profit was reported at a loss of CNY 83.53 million, a decrease of 155.39% year-on-year[30]. Business Operations - The textile main business experienced a decline in sales, revenue, and profitability during the reporting period[30]. - The company increased the provision for bad debts related to accounts receivable from Yangguang Apparel by CNY 88.61 million due to cautious considerations of customer repayment capabilities[30]. - The textile business achieved revenue of 1.427 billion RMB, a decrease of 16.64% year-on-year, with a gross margin of 23.82%, down 7.36 percentage points[31]. - Domestic sales reached 1.264 billion RMB, down 6.07% year-on-year, while foreign sales were 358 million RMB, a decrease of 36.84%[31]. - The thermal power business generated revenue of 194 million RMB, a decline of 2.71% year-on-year, with a gross margin of 4.33%, an increase of 23.15 percentage points[31]. - The company has not disclosed any new product developments or market expansion strategies in the current report[6]. - The company is currently in a phase of assessing its long-term development plans amidst macroeconomic uncertainties[6]. - The company plans to invest in photovoltaic new energy projects, with feasibility studies ongoing in Ningxia, but the project is currently on hold due to funding issues[32]. - The company has shut down its thermal power workshop in response to production cost considerations and local government planning requirements[33]. Risk Management and Internal Controls - The company has received a negative opinion in the internal control audit report for 2023, which may lead to risk warnings for its stock[10]. - The board of directors has emphasized the importance of risk management in light of the current economic environment and operational challenges[6]. - The company has committed to ensuring the accuracy and completeness of its financial reports, with all board members present during the meeting[9]. - The company plans to enhance governance and financial management to prevent related party fund occupation and improve internal controls[89]. - The company has implemented internal control measures to address significant deficiencies, including enhancing credit management and collection efforts for overdue receivables[130]. - The company has disclosed its internal control evaluation report, which aligns with the internal control audit report, indicating a negative opinion on internal controls[133]. Shareholder and Governance Matters - The company held one annual general meeting and four extraordinary meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[84]. - The company reported a total pre-tax remuneration of 283.28 million yuan for directors, supervisors, and senior management during the reporting period[96]. - The company appointed Lu Yu as the chairman and Gao Qinghua as the general manager on March 13, 2023, following the resignation of the previous chairman and general manager[98]. - The company has a new board composition with Lu Yu, Gao Qinghua, Wang Hongming, and Sun Yifan as non-independent directors, and Wang Rongchao, Yuan Wenxiong, and Jiang Ling as independent directors[98]. - The company has not reported any changes in shareholding for its directors and senior management during the reporting period[96]. - The company is focused on maintaining its governance structure by revising its articles of association and independent director system[93]. - The company has emphasized the importance of internal audits and control measures, reflecting a commitment to transparency and accountability[111]. Environmental and Social Responsibility - The company has set up pollution prevention facilities that meet relevant emission standards, with normal operation of environmental protection facilities during the reporting period[138]. - The company reported no environmental pollution incidents or major environmental issues during the reporting period[136]. - The company has committed to reducing carbon emissions through measures such as shutting down thermal power workshops[143]. - The company strictly adheres to national and local environmental protection laws and regulations, promoting sustainable development and minimizing pollutant emissions[142]. - The company has not disclosed a separate social responsibility or ESG report during the reporting period[143]. Related Party Transactions - The company has a substantial receivable from a related party amounting to approximately 988 million, with over 261 million overdue, posing a risk to cash flow[80]. - The company has provided a total of CNY 3 million in guarantees to Yangguang Group, with a maturity date of October 31, 2023[164]. - The company has reported a total of CNY 2,179,981,480.11 in related party transactions during the reporting period[161]. - The company has a total of CNY 1,031,549,028.20 in receivables from Yangguang Apparel, with a significant portion at risk of not being collected on time[161]. - The company has engaged in various related party transactions, including a total of 645,840 RMB for wastewater treatment services[153]. Audit and Compliance - The company’s financial statements received a qualified opinion due to insufficient evidence regarding the recoverability of accounts receivable[190]. - The audit report expresses a reserved opinion based on the inability to obtain sufficient evidence regarding certain transactions and the company's ongoing viability[195]. - Management is responsible for preparing financial statements in accordance with accounting standards and assessing the company's ability to continue as a going concern[198].