Precise(300442)2021-04-13 16:00Financial Performance - The company's operating revenue for the reporting period was CNY 459.49 million, a decrease of 28.21% compared to CNY 640.06 million in the same period last year[3]. - The net profit attributable to shareholders was CNY -227.26 million, a significant decline of 1,795.27% from CNY 13.41 million in the previous year[3]. - The basic earnings per share for 2020 was -¥2.27, a significant drop of 1,846.15% compared to ¥0.13 in 2019[20]. - The total assets at the end of 2020 amounted to ¥1,351,040,892.50, down 12.44% from ¥1,542,939,720.72 at the end of 2019[20]. - The company reported a net loss of ¥239,015,432.42 in 2020, compared to a profit of ¥7,829,928.45 in 2019, indicating a significant decline[200]. - The total comprehensive income attributable to the parent company's shareholders was a loss of ¥227,261,589.00 in 2020, compared to a profit of ¥13,405,626.62 in 2019[200]. Cash Flow and Financial Position - The cash flow from operating activities showed a net outflow of over CNY 49 million in the first half, but improved to a net inflow of over CNY 32 million in the second half[4]. - The net cash flow from operating activities for 2020 was -¥16,882,603.66, an improvement from -¥79,186,127.70 in 2019[20]. - The company's cash and cash equivalents increased by 64.79% compared to the beginning of the period, mainly due to increased borrowings[41]. - The company's cash and cash equivalents were reported at ¥1,920,825.32, a significant decrease from ¥6,532,136.47[195]. - The total cash inflow from financing activities increased by 25.56% to CNY 324,754,001.73[61]. Operational Developments - The company has completed the relocation of its production facilities, which is expected to enhance operational efficiency and reduce costs[4]. - The company has developed core technologies in liquid food packaging and is focusing on maintaining its competitive edge through innovation[8]. - The company is planning a major asset restructuring, including the acquisition of 100% equity in Runze Technology, which requires further board and shareholder approvals[5]. - The company has established a direct sales model for domestic sales and an import-export model for international sales, focusing on enhancing existing customer relationships[31]. - The company aims to enhance its competitiveness in the domestic high-end liquid food packaging machinery market, which is currently dominated by foreign manufacturers[84]. Market and Product Strategy - The company plans to focus on market expansion and new product development in the upcoming year[20]. - The company plans to increase R&D investment and improve product performance to capture potential market opportunities[85]. - The company is focused on continuous improvement and compliance with regulatory requirements set by the China Securities Regulatory Commission and Shenzhen Stock Exchange[97]. - The company has established partnerships with various educational institutions and industry experts to strengthen its market position and innovation capacity[158]. Risks and Challenges - The company faces risks related to increased accounts receivable, which may lead to bad debts and cash flow pressures, and is taking measures to enhance credit management[6]. - The company is exposed to risks from fluctuations in raw material prices, particularly for imported materials affected by the COVID-19 pandemic[9]. - The company acknowledges that the COVID-19 pandemic and macroeconomic conditions have negatively impacted its investment returns and operational profits[75]. Shareholder and Governance Matters - The company did not plan to distribute cash dividends or issue bonus shares, focusing instead on reinvestment[12]. - The company has established a profit distribution policy that prioritizes cash dividends over stock dividends, ensuring protection of minority investors' interests[96]. - The company has maintained a stable shareholding structure with no significant changes in the reporting period[146]. - The company has a complete internal control system, with 100% of the assets and operating income included in the evaluation range for internal control[178]. Legal and Compliance Issues - The company is currently involved in a lawsuit against Gu Kailun for performance compensation related to unmet profit commitments for the years 2018, 2019, and 2020[98]. - The company has initiated litigation against Gu Kailun regarding the performance compensation for 2019 and 2020 due to discrepancies in performance commitment execution[101]. - The company has not reported any significant deficiencies in internal controls, indicating a strong governance framework[180]. Research and Development - Research and development expenses increased by 74.65% to CNY 45,475,648.28, representing 9.90% of the annual revenue[59]. - The company has over 100 patents and a technical team of more than 100 personnel, emphasizing its commitment to innovation[43]. - The company has been involved in several technology innovation projects, including the "Aseptic Three-Side Sealed Paper-Aluminum Composite Material Filling Machine" and "WB II Fully Automatic Aseptic Soft Packaging Machine"[152]. Subsidiaries and Investments - The company has established a new subsidiary, Shanghai Puli Sheng Machinery Equipment Co., Ltd., which has not yet commenced operations[78]. - The company signed a new subsidiary, Shanghai Puli Sheng Machinery Equipment Co., Ltd., during the reporting period[53]. - The project for the fully automatic sterile brick filling production line was terminated due to reduced sales and the decision to adjust the business structure[70].