Oriental Ocean(002086)2023-04-28 16:00Financial Condition and Performance - The company reported a severe deterioration in financial condition, leading to insolvency, with management and operational controls failing to comply effectively, resulting in uncertain financial data [6]. - The annual audit firm issued an audit report with a disclaimer of opinion for the fiscal year 2022, indicating insufficient evidence to form an opinion on the financial statements [8]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves [11]. - The company's operating revenue for 2022 was ¥629,302,311.08, representing a 61.79% increase compared to ¥388,969,421.15 in 2021 [30]. - The net profit attributable to shareholders of the listed company was -¥1,584,905,386.54, a decrease of 57.96% from -¥1,003,357,160.46 in the previous year [30]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥898,841,849.70, which is an 11.04% increase in loss compared to -¥809,463,845.89 in 2021 [30]. - The cash flow from operating activities was -¥42,962,176.47, a significant decline of 246.09% from ¥29,408,960.11 in 2021 [30]. - The total assets at the end of 2022 were ¥2,001,961,772.53, down 24.56% from ¥2,653,744,389.81 at the end of 2021 [30]. - The net assets attributable to shareholders of the listed company were -¥1,167,981,506.01, a decrease of 384.54% from ¥410,480,873.58 in 2021 [30]. - The basic and diluted earnings per share were both -¥2.10, a decrease of 57.89% from -¥1.33 in 2021 [30]. - The company reported a total profit for the year of CNY -1,572,667,695.08, a decrease of 56.84% year-on-year [61]. - The company reported a significant decline in operational performance, with management indicating serious issues in financial and internal control systems [185]. Business Operations and Strategy - The company has not changed its main business since its listing, and there have been no changes in controlling shareholders [29]. - The company operates in a region with a first-class aquaculture water quality standard, but risks such as environmental pollution and natural disasters remain [10]. - The company is positioned in a competitive industry with increasing market demand for marine aquaculture and seafood processing, indicating potential for future growth [41]. - The company achieved a processing capacity of 58,000 tons/year for aquatic products and a modern cold storage capacity of 80,000 tons [45]. - The company is focused on sustainable development through technological innovation and industry transformation in both marine and health sectors [44]. - The company aims to leverage existing research technology, talent, and resources to enhance the construction of third-party medical testing laboratories and accelerate the development of in vitro diagnostics and precision medicine [117]. - The company plans to establish a dual business strategy focusing on marine and health industries, enhancing profitability and international competitiveness [118]. - The company will develop a comprehensive marine product supply chain, including breeding, ecological farming, deep processing, and sales, to become a leading enterprise in the national fishery sector [119]. Research and Development - The company has obtained a total of 61 medical device registration certificates and EU/UK access qualifications for its testing reagents [46]. - The company has established a marine technology demonstration base and a health breeding laboratory in collaboration with the Chinese Academy of Sciences [45]. - The company’s health division has developed platforms for immunology, mass spectrometry, and molecular technology, enhancing its product offerings [53]. - The company has established nine subsidiaries and two major R&D centers in China and the USA, focusing on four technology platforms [65]. - The company has seven national R&D platforms and nine provincial R&D platforms, enhancing its innovation capabilities [59]. - The company is actively involved in research and development, with over 70 professional technical personnel in the biomedicine and in-vitro diagnostic fields [70]. - The company is focusing on market expansion and product development, although specific new products were not detailed in the report [160]. Market and Sales - The company’s aquatic products are exported to countries including Japan, South Korea, the United States, and the EU [45]. - The company is actively developing new consumer channels and expanding e-commerce sales to increase product awareness [63]. - The in-vitro diagnostic segment generated ¥332,550,032.09, accounting for 52.84% of total revenue, with a remarkable growth of 175.01% year-over-year [72]. - The revenue from the marine aquaculture segment was ¥103,584,940.12, with a slight increase of 3.52% year-over-year [72]. - The company aims to enhance its online sales channel, targeting a 40% increase in e-commerce revenue by the end of 2023 [167]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years [167]. Financial Management and Governance - The company has established a comprehensive internal control management mechanism, but the implementation of related systems has not been effective [195]. - There are significant internal control deficiencies related to non-operating fund occupation and illegal guarantees, which have not been rectified [196]. - The company is committed to strengthening internal controls and risk management, with a focus on enhancing the approval processes and supervision of fund management systems [198]. - The company has received multiple approvals for self-developed diagnostic reagents and instruments, indicating a strong pipeline for future product offerings [147]. - The company has faced administrative penalties and market entry bans due to violations, impacting both the company and its executives [186]. - The company is facing scrutiny from regulatory bodies due to past false statements and failure to disclose significant litigation [185]. Management and Organizational Changes - The company experienced a management change with the resignation of the financial director on January 20, 2022, and the appointment of a new financial director on April 19, 2022 [159]. - The company appointed a new general manager on April 14, 2022, indicating a strategic shift in leadership [159]. - The company has expanded its management team with the hiring of three new vice presidents on September 28, 2022, to enhance operational efficiency [159]. - The board of directors has approved a new incentive plan aimed at aligning management performance with shareholder interests, with a budget of 10 million yuan [173]. - The company has proposed to increase the agenda for the 2021 annual general meeting, indicating ongoing engagement with shareholders [180]. Risks and Challenges - The company is exposed to exchange rate risks, particularly with the appreciation of the RMB, which could negatively impact processing fees and raw material costs, affecting gross margins [138]. - The company has a significant risk of disease transmission in its aquaculture operations, which could lead to substantial economic losses if not managed properly [140]. - The company is facing challenges such as resource occupation, environmental degradation, and weak infrastructure in the aquaculture sector [105]. - The company has faced cash flow shortages for three consecutive years, prompting a restructuring to address funding issues [131]. - The company faces risks related to the long R&D cycle for in vitro diagnostic reagents, which could impact the recovery of initial investments and future benefits if new products are not successfully developed and registered [132].