Modern Avenue Group Co.Ltd(002656) : financial statement report of 2021

Modern Avenue Group Co.Ltd(002656)

Financial statement report of 2021

Modern Avenue Group Co.Ltd(002656) (hereinafter referred to as “the company”) has issued a qualified audit report on the 2021 annual financial report of the company through the audit of China audit Zhonghuan Certified Public Accountants (special general partnership) (hereinafter referred to as “China audit Zhonghuan”). According to the audit of zhongzhonghuan, in addition to the possible impact of the matters described in the “basis for forming qualified opinions”, the attached financial statements are prepared in accordance with the accounting standards for business enterprises in all major aspects, and fairly reflect the financial position of your company on December 31, 2021 and the operating results and cash flow of your company in 2021. The relevant contents of the company’s financial statements in 2021 are reported as follows:

1、 Operating results of the company in 2021

In 2021, the company realized an operating revenue of 38522544430 yuan, a decrease of 24.75% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was -2070627758 yuan, a decrease of 382.97% over the same period last year. The main reasons for the change of net profit attributable to shareholders of Listed Companies in 2021 over the previous year are as follows:

1. The operation of the subsidiary Wuhan Yueran Heart Network Technology Co., Ltd. changed, and the operating revenue and profit declined.

2. According to the accounting standards for business enterprises and relevant accounting policies, at the end of 2021, the company made a comprehensive inventory and impairment test of assets that may have signs of impairment (including accounts receivable, other accounts receivable, long-term accounts receivable, inventory, etc.), and then made an impairment provision.

3. After the reporting period, the company received the civil judgment numbered “(2021) Yue min Zhong No. 498” issued by the Guangzhou intermediate people’s Court on the above case. The final judgment was that Guangzhou liancafu was liable for 30% of the debts of huayuanli company under the loan contract involved, The International Bank of Macau is responsible for 70% of the amount not recovered.

In 2021, the company adjusted the impact on the balance sheet date according to the best estimate according to the judgment result of (2021) yueminzhong No. 498 issued by Guangzhou high court. The amount included in non operating income in 2021 is 23.99 million yuan.

In 2021, the operating cost was 16104500152 yuan and the gross profit was 22418044278 yuan; Gross profit margin

58.19%, up 11.02% from 47.18% in 2020. In 2021, taxes and surcharges were 289844416 yuan, sales expenses 16243474186 yuan, administrative expenses 7297255900 yuan, financial expenses 350995275 yuan, asset impairment loss -6338097707 yuan, investment income 304236578 yuan, other income 91810940 yuan, and operating profit -3617201049 yuan.

2、 Financial position of the company at the end of 2021

1. Asset structure

At the end of 2021, the total assets were 111042087721 yuan, of which the current assets were 70582627143 yuan, accounting for 63.56% of the total assets.

Current assets decreased by 30320640181 yuan compared with the end of 2020, of which monetary funds decreased by 26717939747 yuan; Notes receivable decreased by 22484528 yuan; Accounts receivable decreased by 4014996438 yuan; Prepayment increased by 101805004 yuan; Other receivables increased by 4111122040 yuan; Inventory decreased by 861773003 yuan; Other current assets increased by 783626491 yuan.

Non current assets are 40459460578 yuan, mainly distributed in other equity instrument investment, investment real estate, fixed assets, construction in progress, use right assets, intangible assets, long-term deferred expenses, deferred income tax assets and other non current assets.

2. Debt structure

At the end of 2021, the total liabilities were 35991702996 yuan, including current liabilities of 20771077408 yuan and asset liability ratio of 32.41%.

Current liabilities decreased by 7222475901 yuan compared with the end of 2020, including accounts payable decreased by 1960914786 yuan, contract liabilities decreased by 1911 Anhui Fengyuan Pharmaceutical Co.Ltd(000153) yuan and other accounts payable decreased by 4820038828 yuan.

The non current liabilities are 15220625588 yuan, of which the lease liabilities increase by 4718662221 yuan and the estimated liabilities decrease by 5461345720 yuan.

3. Shareholders’ equity

At the end of 2021, the total shareholders’ equity was 75050384725 yuan, and the shareholders’ equity attributable to the parent company was 74951496724 yuan. The undistributed capital of the company is RMB 13107519851, of which the undistributed capital reserve is RMB -2198519851, and the undistributed capital reserve is RMB 234585500, of which the undistributed capital reserve is RMB -21985100, of which the undistributed capital reserve is RMB 21985100.

3、 Cash flow of the company in 2020

1. Cash flow from operating activities

The net cash flow from operating activities in 2021 was 16267287640 yuan, an increase of 33475378328 yuan compared with -17208090688 yuan in the same period of last year. Among them, the cash inflow from operating activities was 59682041982 yuan, an increase of 2774660369 yuan compared with 56907381613 yuan in the same period of the previous year, and the cash outflow from operating activities was 43414754342 yuan, a decrease of 30700717959 yuan compared with 74115472301 yuan in the same period of the previous year. Mainly due to the significant decrease of restricted funds in the reporting period, and the decrease of cash paid for goods and services and other cash paid related to operating activities compared with the previous period.

2. Cash flow from investing activities

The net cash flow from investment activities in 2021 was -24274706838 yuan. Among them, the cash paid for investment is 24000000000 yuan, and the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets is 631070024 yuan.

3. Cash flow from financing activities

The net cash flow from financing activities in 2021 was -1301442837 yuan. Among them, the cash inflow from financing activities is 1000000 yuan and the cash outflow from financing activities is 1401442837 yuan, which is mainly the cash paid for increasing lease liabilities during the reporting period according to the new lease standards.

4. Impact of exchange rate changes on cash and cash equivalents

The impact of exchange rate changes on cash equivalents in 2021 is -414860992 yuan.

5. Net increase in cash and cash equivalents

The net increase in cash and cash equivalents in 2021 was -9723723027 yuan.

Modern Avenue Group Co.Ltd(002656) board of directors April 26, 2022