Zhejiang Zhengguang Industrial Co.Ltd(301092)
Financial statement report of 2021
1、 Overall operation of the company in 2021
In 2021, Zhejiang Zhengguang Industrial Co.Ltd(301092) (hereinafter referred to as “the company”) achieved an operating income of 45134415890 yuan at the consolidation level, a decrease of 8.71% over the same period of the previous year; The total profit was 8434938114 yuan, a decrease of 44.89% over the same period last year; The net profit was 7367334064 yuan, a decrease of 42.18% over the same period last year.
2、 Audit of the company’s financial report in 2021
The financial statements of the company in 2021 have been audited and verified by Tianjian Certified Public Accountants (special general partnership), and an unqualified audit report of tianjianshen [2022] No. 3048 standard was issued on April 21, 2022. The audit opinion of the accountant is: we have audited the financial statements of Zhejiang Zhengguang Industrial Co.Ltd(301092) (hereinafter referred to as Zhejiang Zhengguang Industrial Co.Ltd(301092) company), including the consolidated and parent company’s balance sheet as of December 31, 2021, the consolidated and parent company’s income statement, consolidated and parent company’s cash flow statement, consolidated and parent company’s statement of changes in owner’s equity and notes to relevant financial statements in 2021. In our opinion, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all material aspects, and fairly reflect the consolidated and parent company’s financial position of Zhejiang Zhengguang Industrial Co.Ltd(301092) company as of December 31, 2021, as well as the consolidated and parent company’s operating results and cash flow in 2021.
3、 Main financial data and indicators in 2021
Unit: RMB
Increase and decrease of the project from 2021 to 2020
Operating income 4513441589049441765820 – 8.71%
Total profit 843493811415306541564 – 44.89%
Net profit 736733406412742644826 – 42.18%
Net profit attributable to ordinary shareholders of the company: 736733406412742644826 – 42.18%
Amount of non recurring profit and loss 7015705433872708864 – 81.88%
Net profit attributable to ordinary shareholders of the company after deducting non recurring profits and losses of 6665763521, 8869935962 – 24.85%
Net cash flow from operating activities 503270854710241964620 – 50.86%
Total assets 16446211828549209700067 234.21%
Analysis of main change reasons:
1. The total profit decreased by 44.89% compared with the previous year, mainly due to the increase in raw material prices, the decrease in gross profit, the increase in sales expenses and management expenses, and the decrease in operating profit in the current period.
2. The net profit in 2021 decreased by 42.18% compared with the previous year, mainly due to the decrease of net profit caused by the decrease of total profit.
3. The amount of non recurring gains and losses decreased by 81.88% over the previous year, mainly due to the net income of 456345 million yuan of non recurring investment real estate expropriation and relocation compensation in 2020.
4. The net cash flow from operating activities decreased by 50.86% over the previous year, mainly due to the increase in the price of raw materials and the increase in the cash received by the company for the sale of goods and the provision of labor services over the previous year; The cash paid to and for employees by the company increased compared with the previous year.
5. Total assets increased by 234.21%, mainly due to the availability of funds raised by the company’s listing and the increase of monetary funds and trading financial assets.
4、 Analysis of financial status, operating results and cash flow
1. Composition and changes of main assets
Unit: RMB
Increase and decrease range of the project at the end of 2021 and the beginning of 2021
Monetary capital 818782391628536682889 859.13%
Trading financial assets 430922602741 Fujian Zhangzhou Development Co.Ltd(000753) 425420598%
Notes receivable 1045448047997704119 4.79%
Accounts receivable 63850709707689966928 – 16.97%
Receivables financing 885379987510747955 73.35%
Prepayment 284893405186570979 52.70%
Other receivables 3 Tunghsu Optoelectronic Technology Co.Ltd(000413) 342412966535 – 87.57%
Inventory 1129920776510159749345 11.22%
Assets held for sale 2479232034-
Other current assets 1099640870447790467 145.57%
Investment in other equity instruments 120000000 0.00%
Investment real estate – 2627823791 – 100.00%
Fixed assets 1081796942812188922192 – 11.25%
Construction in progress 3012240213974158616 209.21%
Right to use assets 73977201-
Intangible assets 947330220973523820 – 2.69%
Deferred income tax assets 320194052273591814 17.03%
Other non current assets 14 Tech Semiconductors Co.Ltd(300046) 16500042 – 13.33%
Description of major changes:
(1) Monetary capital and trading financial assets increased significantly over the previous year, mainly due to the availability of funds raised by the company on the market and part of them used to buy bank financial management.
(2) Accounts receivable financing increased by 73.35%, mainly due to the fact that the company received more bank acceptance bills at the end of the period and planned to pay for raw materials and other funds.
(3) The prepayment increased by 52.7% over the previous year, mainly due to the large increase in the price of raw materials over the previous year.
(4) Other receivables decreased by 87.57% over the previous year, mainly due to the recovery of government compensation receivable at the end of 2020 in 2021.
(5) The increase in assets held for sale is mainly due to the fact that the assets were listed in the demolition plan by the government at the end of 2021. The demolition is expected to be carried out in the first half of 2022. The assets were listed in investment real estate last year.
(6) Other current assets increased by 145.57% over the previous year, mainly due to the increase of input tax retained in the payment of issuance expenses.
(7) The construction in progress increased by 209.21% over the previous year, mainly due to the continuous development of raised investment projects.
(8) The increase of use right assets is mainly due to the change of accounting policies in 2021.
2. Composition and changes of main liabilities
Unit: RMB
Increase and decrease range of the project at the end of 2021 and the beginning of 2021
Short term loan 1926699035850000000 126.67%
Notes payable 5131327111052805200 – 51.26%
Accounts payable 40927670744496714400 -8.98%
Advance payment 139203100166204368 – 16.25%
Contract liabilities 677860733512112841 32.37%
Payroll payable 18177817331752028578 3.75%
Tax payable 2748429551505184730 – 81.74%
Other payables 404321875753226808 – 46.32%
Other current liabilities 8812189844285957 98.98%
Estimated liabilities – 977000000 – 100.00%
Description of major changes:
(1) Short term borrowings increased by 126.67% over the previous year, mainly due to the increase of working capital in Ningbo Zhengguang’s production and operation.
(2) Notes payable decreased by 51.26% over the previous year, mainly due to the good capital situation during the reporting period and the reduction of bill expenditure.
(3) Contract liabilities increased by 32.37% over the previous year, mainly due to the increase in advance payment.
(4) The tax payable decreased by 81.74% compared with the previous year, mainly due to the decrease of total profit in 2021 compared with the previous year.
(5) Other payables decreased by 46.32% over the previous year, mainly due to the transfer of freight payable and lump sum fee to accounts payable.
(6) Other current liabilities increased by 98.98% over the previous year, mainly due to the increase in advance payment. (7) The decrease in estimated liabilities is mainly due to the provision of compensation for compensation disputes between government demolition and tenants in the previous year.
3. Composition and changes of owner’s equity
Unit: RMB
Increase and decrease range of the project at the end of 2021 and the beginning of 2021
Share capital 1333333340010000000000 33.33%
Capital reserve
