BAOSHENG SCI(SH:600973)2025-03-14 12:00Financial Performance - The company reported a net loss of ¥206,199,330.22 as of December 31, 2024, leading to no profit distribution for the year [7]. - The company has a negative retained earnings balance, which influenced the decision to not distribute profits or increase capital reserves [7]. - The company's operating revenue for 2024 reached ¥46.36 billion, an increase of 5.85% compared to ¥43.80 billion in 2023 [22]. - The net profit attributable to shareholders was a loss of ¥299.86 million, a significant decline from a profit of ¥31.02 million in 2023, representing a decrease of 1,066.53% [22]. - The cash flow from operating activities showed a net outflow of ¥862.82 million, a decrease of 169.55% compared to a positive cash flow of ¥1.24 billion in 2023 [22]. - Basic earnings per share for 2024 were -¥0.22, down from ¥0.02 in 2023, reflecting a decrease of 1,200% [23]. - The weighted average return on equity was -8.37%, a decrease of 9.20 percentage points from 0.83% in 2023 [23]. - The total assets decreased by 6.93% to ¥20.84 billion from ¥22.39 billion in 2023 [22]. - The net assets attributable to shareholders decreased by 9.16% to ¥3.41 billion from ¥3.75 billion in 2023 [22]. - The company reported a net profit attributable to shareholders of -CNY 300 million, primarily due to credit impairment losses related to accounts receivable [60]. - The average net profit over the last three fiscal years was -¥70,608,899.88, with no cash dividends or share buybacks reported [130]. Governance and Compliance - The board of directors and supervisory board members attended the meeting, ensuring governance compliance [5]. - The audit report issued by DaXin Accounting Firm confirmed the financial statements' accuracy and completeness [6]. - The company has disclosed 72 announcements in 2024, ensuring transparency and compliance with regulatory requirements [97]. - The board of directors consists of 11 members, including 4 independent directors, and has held 7 meetings during the reporting period [95]. - The supervisory board, comprising 5 members, has conducted 5 meetings to oversee the company's operations and ensure compliance [96]. - The company is committed to maintaining investor relations through regular reports and announcements, ensuring fair treatment of all investors [97]. - The company is enhancing its internal control systems to improve risk management and operational compliance [98]. - The company has not reported any changes in shareholding for its board members during the reporting period [103]. - The company continues to emphasize the importance of corporate governance and transparency in its operations [105]. Market and Industry Analysis - The company is facing industry and market risks, which are detailed in the section discussing future development strategies [9]. - The market size of China's wire and cable industry increased from CNY 0.99 trillion in 2018 to CNY 1.20 trillion in 2023, with an average annual growth rate of approximately 4.1% [41]. - It is projected that the market size will reach CNY 1.35 trillion in 2024, representing a year-on-year growth of 13% [41]. - The demand for high-voltage and ultra-high-voltage cables is expected to grow significantly due to the upgrade of the national grid and the rapid development of renewable energy projects [47]. - The electric power cable market is expected to maintain stable growth, driven by increasing electricity demand and infrastructure development [46]. - The Chinese wire and cable industry is highly fragmented with over 10,000 companies, leading to intense competition, especially in the medium and low voltage power cable sector [92]. Strategic Initiatives and Future Plans - The company plans to focus on improving operational efficiency and exploring new market opportunities to recover from the current financial downturn [30]. - The company aims to enhance its core competitiveness through innovation and transformation, aligning with the "14th Five-Year Plan" and the "Five Modernizations" strategy [56]. - The company is committed to a market-oriented approach, precise management, and green transformation as part of its development strategy [90]. - The company intends to use up to 260 million yuan of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months [185]. - The company is focusing on optimizing its production processes to meet modern factory development requirements and market demands [183]. Environmental and Sustainability Efforts - The company invested ¥5,908,100 in environmental protection during the reporting period [134]. - The company has established an environmental protection mechanism and is committed to sustainability [134]. - The company has implemented a self-monitoring scheme for environmental emissions, ensuring compliance with national and local environmental standards [145]. - The company has a total of 3 online environmental monitoring devices in operation, contributing to real-time pollution tracking [137]. - The company has received project approvals for significant expansions, including an annual production of 800,000 boxes of 5G communication high-speed network cables, completed in December 2022 [139]. Legal and Regulatory Matters - The company is involved in four lawsuits related to a commercial dispute with Shenzhen Evergrande Materials Equipment Co., with a total claim amount of RMB 616.54 million [162]. - In January 2024, the company faced regulatory warnings due to insufficient disclosure regarding major lawsuits, leading to a commitment to enhance legal compliance and training for executives [165]. - The company plans to report significant events to regulatory authorities monthly and improve its information disclosure practices [166]. Research and Development - The company established five new innovation platforms, including a postdoctoral research station and an engineering research center, enhancing its R&D capabilities [33]. - The company applied for 74 patents, including 21 inventions, and received 62 patent authorizations, with 13 being inventions [57]. - Total R&D expenses amounted to ¥700,225,919.83, which is 1.51% of total revenue [75]. Shareholder and Ownership Structure - The total number of ordinary shareholders as of the end of the reporting period is 108,215, an increase from 75,933 at the end of the previous month [189]. - The largest shareholder, Baosheng Group Co., Ltd., holds 437,406,433 shares, representing 31.9% of the total shares [191]. - The company has not reported any changes in its total share capital or share structure during the reporting period [188]. - There are no reported changes in the shareholding structure of the controlling shareholder or actual controller [194].