| --- | --- | |-------------|-----------------------------------------------------------------------------------| | | | | | 中期報告 2020 | | NEE | | | 88 米 -1/5/ | 动 力 和 Ag 197 | | | 泉 北 電 氣 燙 展 股 份 有 限 公 司NOR THEAST ELECTRIC DEVELOPMENT C O. L TD. | | --- | --- | --- | |--------|----------------------------------------------------|-------| | | | | | 第一節 | 重要提示 | 2 | | 第二節 | 本公司基本情況 | 4 | | 第三節 | 主要財務資料和指標 | 6 | | 第四節 | 股份變動及股東情況 | 9 | | 第五節 | 董事丶監事丶高級管理人員情況 ……………………………………………………… | 13 | | 第六節 | 公司業務概要 . | 14 | ...

Financial Performance - The company's total operating revenue for 2019 was RMB 102.34 million, an increase of RMB 70.03 million compared to 2018[25]. - The profit attributable to shareholders was RMB -40.17 million, resulting in a loss per share of RMB -0.046[26][27]. - Total operating revenue for 2019 was 102,341 thousand RMB, an increase of 216.73% compared to 2018[49]. - Net profit attributable to shareholders was -40,166 thousand RMB, showing a significant loss compared to a profit of 14,596 thousand RMB in 2018[49]. - The company's total assets at the end of 2019 were 477,041 thousand RMB, a decrease of 5.56% from 2018[49]. - The net assets attributable to shareholders were -56,590 thousand RMB at the end of 2019, compared to 8,619 thousand RMB in 2018[49]. - Basic earnings per share for 2019 were -0.046 RMB, down from 0.02 RMB in 2018[49]. - The company reported a net loss of -4,965,656.38 RMB in Q1 2019, with total operating revenue of 14,500,346.70 RMB[53]. - In Q2 2019, the company achieved a net profit of 1,041,325.64 RMB, with total operating revenue of 30,663,411.83 RMB[53]. - The company experienced a net loss of -34,319,232.93 RMB in Q4 2019, despite total operating revenue of 30,241,116.30 RMB[53]. - The company reported a significant increase in hotel business revenue, generating over 61 million RMB in 2019 from new hotel operations[173]. - The company recorded a loss of RMB 40,133,000 for the year ending December 31, 2019, further emphasizing ongoing financial challenges[200]. Dividends and Shareholder Structure - The company plans not to distribute cash dividends or issue bonus shares, pending approval at the 2019 annual general meeting[24]. - The company did not report any significant changes in shareholding or shareholder structure during the year[24]. - The company plans to not distribute cash dividends, issue bonus shares, or convert reserves into share capital for the fiscal year[90]. - The net loss attributable to shareholders for the year was approximately RMB 40,166,000[117]. - The company reported a net loss attributable to shareholders of RMB 40,165,739.76 for the year 2019, with distributable profits at the end of the year amounting to RMB -2,059,319,937.47, leading to a recommendation of no cash dividends or stock bonuses[192]. Financial Management and Audit - The financial reports were prepared in accordance with both Chinese and international accounting standards, with unqualified audit opinions issued by the auditing firms[11]. - The board of directors and senior management have guaranteed the accuracy and completeness of the annual report[10]. - The audit committee has reviewed and confirmed the financial reports for the year[11]. - The company has acknowledged the importance of investor awareness regarding potential risks associated with forward-looking statements[12]. - The company has not reported any significant differences in net profit and net assets between domestic and international accounting standards for the reporting period[51]. - The company has not made any significant changes to its accounting policies or estimates compared to the previous year, maintaining consistency in financial reporting[193]. - The company has not reported any major accounting errors requiring retrospective restatement during the reporting period[195]. - The company received a non-standard audit opinion due to significant uncertainties regarding its ability to continue as a going concern, as highlighted by both domestic and overseas auditors[197][200]. Risks and Future Outlook - The company has outlined potential risks and measures in the "Future Development Outlook" section of the board report[12]. - The company is focusing on strategic development and market expansion as part of its future plans[12]. - The company is actively responding to the COVID-19 pandemic by restoring production in an orderly manner and enhancing operational efficiency[88]. - The company aims to optimize its industrial layout and deepen reforms to achieve innovation and improve quality and efficiency in 2020[88]. - The company has faced challenges due to the ongoing pandemic, impacting the travel, accommodation, and catering industries, leading to expected declines in revenue and profit[86]. - The company anticipates that the economic structure adjustment will negatively impact the power industry, particularly thermal power, affecting future performance[83]. - The company is focusing on brand building and resource optimization to enhance development quality and efficiency[87]. Asset and Liability Management - The company's total assets at the end of 2019 were 477,041 thousand RMB, a decrease of 5.56% from 2018[49]. - Total assets amounted to 477.39 million RMB in 2019, while total liabilities were 528.49 million RMB, resulting in a debt-to-asset ratio of 110.71%[60]. - The company's equity attributable to shareholders was negative at 51.11 million RMB in 2019, compared to a positive equity of 22.12 million RMB in 2018[60]. - The company’s current ratio was 44.36% in 2019, indicating a decrease in liquidity compared to previous years[60]. - The company’s net asset return rate was 0.00% in 2019, reflecting ongoing challenges in profitability[60]. - The company's cash and cash equivalents decreased by ¥10,196,570.58, marking a 113.36% decline from an increase of ¥76,315,876.46 in the previous year[145]. - The company's cash flow from operating activities for 2019 was 3,336.82 thousand RMB, recovering from a negative cash flow of -4,595.47 thousand RMB in 2018[49]. - The company's asset-liability ratio was 111% as of December 31, 2019, compared to 95% in 2018[110]. - The company’s current liabilities exceeded current assets by RMB 231,083,200.33 as of December 31, 2019, highlighting potential liquidity issues[197]. Operational Developments - The company completed a technical transformation project, significantly enhancing the manufacturing process of its closed busbar products, which improved market competitiveness[67]. - The company expanded into the hotel business, generating over 61 million RMB in revenue from this new segment in 2019[70]. - The company implemented measures to strengthen internal financial management and monitoring, which positively impacted financial risk prevention and operational performance[71]. - The company completed a technical transformation project at its subsidiary, improving manufacturing processes and enhancing product competitiveness[172]. - The subsidiary Fuxin Busbar completed a technical upgrade, which has positively impacted service income and profit levels[172]. - The company is transitioning from traditional manufacturing to modern service industries, leveraging management expertise in the hotel sector[173]. Legal and Compliance Issues - The company has been involved in significant litigation, including a case regarding a payment dispute amounting to 28.53 million yuan, which is currently under appeal[74]. - The company is currently facing ongoing litigation with potential compensation claims amounting to RMB 272 million, which could impact its financial stability[197]. - The company faced a court ruling for the enforcement of a debt claim amounting to RMB 48 million, part of a total debt of RMB 270 million, which raises concerns about liquidity and operational stability[191].

Financial Performance - The company's operating revenue for the reporting period was CNY 45,163,758.53, representing a 215.92% increase compared to CNY 14,296,160.44 in the same period last year[14]. - The net profit attributable to shareholders of the listed company was CNY -3,924,330.74, an improvement from CNY -14,119,432.82 year-on-year[14]. - The basic earnings per share for the reporting period was CNY -0.0045, an improvement from CNY -0.0162 in the same period last year[14]. - The net profit for the first half of 2019 was a loss of CNY 3,908,725.54, an improvement from a loss of CNY 14,472,647.63 in the same period of 2018[163]. - The total comprehensive income for the first half of 2019 was a loss of CNY -3,562,631.25, compared to a loss of CNY -14,110,212.01 in the same period of 2018[168]. - The company reported a gross operating profit of CNY -3,375,129.59 for the first half of 2019, compared to CNY -17,866,932.30 in the first half of 2018, showing a reduction in losses[161]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY -2,091,919.29, showing a reduction in cash outflow compared to CNY -5,163,724.31 in the previous year[14]. - Cash inflow from operating activities was 53,809,355.83 CNY in the first half of 2019, down from 82,882,950.35 CNY in the first half of 2018, reflecting a decrease of approximately 35%[179]. - Cash outflow from operating activities totaled 55,901,275.12 CNY in the first half of 2019, compared to 88,046,674.66 CNY in the same period of 2018, resulting in a net cash flow from operating activities of -2,091,919.29 CNY[181]. - The ending cash and cash equivalents balance as of the end of the first half of 2019 was 80,286,162.35 CNY, down from 3,390,727.00 CNY at the end of the first half of 2018[186]. - The company's cash and cash equivalents decreased to CNY 77,793.50 from CNY 131,150.21, a decline of approximately 40.5%[145]. Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 540,639,229.61, reflecting a 7.03% increase from CNY 505,113,480.52 at the end of the previous year[14]. - The company's total liabilities as of June 30, 2019, were RMB 522,085,480.90, resulting in a debt-to-asset ratio of 96%[84]. - Total current assets reached ¥194,169,983.08, compared to ¥183,133,550.94, marking an increase of about 6.0%[131]. - Total liabilities increased to CNY 522,085,480.90 as of June 30, 2019, up from CNY 482,997,100.56 at the end of 2018, representing an increase of approximately 8.5%[140]. - Non-current liabilities totaled CNY 111,276,507.08, a significant increase from CNY 82,770,287.50 at the end of 2018, indicating a growth of about 34.4%[140]. Shareholder Information - The total number of shares was 873,370,000, with 99.31% being unrestricted shares[17]. - The total number of ordinary shareholders at the end of the reporting period was 62,187, with the largest shareholder, Hong Kong Central Clearing Limited, holding 29.43% of shares, totaling 257,047,899 shares[21]. - The company did not purchase, sell, or redeem any of its own shares during the reporting period[24]. - There were no changes in the shareholding of directors, supervisors, and senior management during the reporting period[28]. - The largest shareholder, Hong Kong Central Clearing Limited, is an overseas legal entity[21]. Business Operations - The company’s main business focuses on the research, design, production, and sales of power transmission and transformation equipment, particularly closed busbars, which are crucial for enhancing power transmission efficiency[31]. - The company is facing increasing operational pressure due to structural adjustments in the macroeconomic environment and overcapacity in the power distribution equipment manufacturing industry[32]. - The company is actively optimizing its asset structure and has completed the sale of the loss-making subsidiary, New Northeast Electric (Jinzhou) Power Capacitor Co., Ltd.[35]. - The company is actively expanding its hotel dining services, which began operations in February 2019, contributing significantly to the revenue structure[44]. - The hotel dining service segment generated approximately RMB 28.90 million in revenue, with a gross margin of 60.77%[52]. Strategic Initiatives - The company is committed to enhancing operational management and optimizing industrial layout in response to the challenging business environment[32]. - The company aims to improve operational efficiency and core competitiveness to achieve business transformation and breakthroughs in the second half of 2019[70]. - The company is actively seeking strategic transformation opportunities to ensure sustainable development in the long term[69]. - The company has initiated a lawsuit against Shenyang High Voltage Switch Co., Ltd. for the return of equity transfer payments amounting to 16 million USD due to a breach of contract[39]. Miscellaneous - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[4]. - The company has no significant contingent liabilities as of June 30, 2019[86]. - There were no significant related party transactions during the reporting period[104]. - The company has established an audit committee under the board of directors in accordance with the listing rules[112].

Financial Performance - The company's total revenue for the year was RMB 32.31 million, a decrease of RMB 670,000 compared to 2017[15]. - Total revenue for 2018 was CNY 32,311,485.10, a decrease of 2.04% compared to 2017[35]. - The profit attributable to equity holders of the company was RMB 14.6 million[16]. - Net profit attributable to shareholders was CNY 14,596,076.43, a significant improvement from a loss of CNY 397,057,643.19 in 2017[35]. - Basic earnings per share for 2018 was CNY 0.020, recovering from a loss of CNY 0.450 in 2017[35]. - The net profit attributable to shareholders of the listed company was 14.6 million, marking a turnaround from a loss to profit[50]. - The company reported a significant reduction in non-recurring losses, with a net profit excluding non-recurring items of CNY -38,948,124.08[35]. - The company reported earnings per share of RMB 0.02, with a total share capital of 873,370,000 shares[78]. - The company reported a profit from the disposal of subsidiaries amounting to 34.69 million yuan during the reporting period[163]. - The company confirmed an asset disposal gain of 15.8 million yuan from the relocation of a subsidiary's new factory[163]. Cash Flow and Assets - The cash flow from operating activities showed a negative amount of CNY 4,595,466.11, a decline of 110.00% compared to the previous year[35]. - As of December 31, 2018, the company's cash and cash equivalents amounted to RMB 145,725,658.23, an increase from RMB 45,175,761.77 in 2017[88]. - Total assets at the end of 2018 reached CNY 505,113,480.52, an increase of 64.94% from the previous year[35]. - The company's total liabilities amounted to RMB 482,997,100.56, resulting in a debt-to-asset ratio of 95% as of December 31, 2018, down from 163.55% in 2017[100]. - The company reported a significant increase in cash and cash equivalents, with a net increase of CNY 76,315,876.46, compared to a decrease of CNY 14,080,468.44 in the previous year[143]. - Total revenue for the company reached 32,074,907.02, with a gross margin of 16.91%, reflecting a year-over-year decrease of 0.95% in revenue and an increase of 4.22% in gross margin[110]. Dividends and Shareholder Returns - The company plans not to distribute cash dividends or issue bonus shares, pending approval at the annual general meeting[14]. - The company will not distribute cash dividends or issue bonus shares for the fiscal year[77]. - The profit available for distribution to shareholders at year-end was -2,019,154,197.71 yuan, leading to a recommendation of no cash dividends, bonus shares, or capital reserve transfers[198]. Risks and Legal Matters - The company has outlined potential risks and measures in the "Future Development Outlook" section of the board report[13]. - The company is actively assessing legal risks related to a dispute with a partner, which may impact future financial reporting[40]. - The company is involved in ongoing litigation regarding employee settlement fees, with a claim of 28.53 million being contested[54]. - The company is also pursuing legal action to recover a 16 million USD equity transfer payment that has not been made by a partner[55]. - The company is involved in a lawsuit regarding a labor placement fee dispute, with a claim amounting to RMB 37,745,190[185]. - The court ruled that the company must pay RMB 24,990,000 and a penalty of RMB 124,950 within 15 days of the judgment[188]. - The company has recognized a liability of RMB 37,745,190 based on prudent financial principles related to the ongoing litigation[189]. - The company is also involved in a lawsuit with the National Development Bank, with a potential liability of RMB 272,627,700 recognized[192]. - A lawsuit regarding the return of equity transfer payments amounting to USD 16 million is currently pending in court[193]. - The company is awaiting the first-instance verdict for the equity transfer lawsuit, which is expected to have no negative impact on its consolidated profits[196]. Strategic Initiatives and Future Outlook - The company plans to continue focusing on market expansion and new technology development in the upcoming year[40]. - The company is focused on the research, design, production, and sales of power transmission and transformation equipment, which are critical for improving energy efficiency in power systems[47]. - The company plans to optimize its industrial layout and deepen reforms to achieve innovation and efficiency improvements in 2019[66]. - The company aims to adjust its product structure and accelerate the transition to modern service industries, improving overall layout and profitability[69]. - The company is actively pursuing the approval process for the issuance of new H-shares to enhance its core competitiveness and sustainable development capabilities[69]. - The company plans to maintain its capital structure strategy to ensure sustainable operations and optimize the debt-to-equity ratio for maximum shareholder returns[92]. - The company is seeking strategic transformation to ensure sustainable long-term development in promising industries[76]. Management and Governance - All directors attended the board meeting to discuss the report[11]. - The company guarantees the truthfulness, accuracy, and completeness of the annual report content[10]. - The financial report was audited by Ruihua Certified Public Accountants, receiving an unqualified opinion with emphasis of matter[12]. - The financial report was prepared in accordance with Chinese accounting standards[12]. - The company is actively addressing various adverse situations under the leadership of the board, optimizing industrial layout and strengthening management[50]. - The company enhanced internal financial management and monitoring to mitigate financial risks and improve operational performance[171]. - The company recruited five senior management personnel and over 20 skilled professionals to strengthen its human resources[172]. Accounting and Reporting - There were changes in accounting policies and estimates due to the revised financial reporting format issued by the Ministry of Finance on June 15, 2018[199]. - The company adjusted its financial statements to comply with the new reporting format as required for non-financial enterprises[199]. - There were no significant accounting errors that required retrospective restatement during the reporting period[200].