2022-04-25-深交所-深中华B_2021年年度报告（英文版）_229页_2mb

Summary of Shenzhen China Bicycle Company (Holdings) Limited Annual Report 2021

1. Company Background: The company is involved in bicycle, lithium battery material, and gold jewelry business. Its main products are EMMELLE bicycles, electrical bicycles, lithium battery materials, and gold jewelry. It does not have a controlling shareholder after February 20, 2017.

2. Financial Highlights:

   • Revenue Growth: Increased by 40.21% ("Operation revenue") to 165 million yuan compared to 2020.
   • Net Profit: Net profit attributable to shareholders was negative (-1.99 million yuan), reflecting financial underperformance.
   • Cash Flow: Strong cash inflow from operating activities (+297.59%).
   • Core Business: Jewelry and gold segment dominates with 80.43% of revenue.

3. Key Business Developments:

   • The company focused on expanding jewelry supply chains and partnerships.
   • Ongoing non-public share issuance to address financial restructuring needs.
   • Legal issues arose from terminating agreements related to urban renewal.
   • Operations in the electric bicycle sector face challenges despite regulatory support.

4. Financial Risks:

   • A negative audit report indicates significant uncertainty about the company's ability to continue as a going concern.
   • High operating costs and expenses dragged down profitability despite revenue growth.

5. Market Position:

   • The jewelry business, supported by an established supply chain, became the core revenue driver.
   • The company aims to leverage partnerships and new business strategies to stabilize operations.

Conclusion: Shenzhen China Bicycle Company showed revenue growth in jewelry and gold but suffered a net loss. Financial restructuring and legal challenges remain key focal areas.