Xinxunda(SZ:300518)2025-04-24 16:20Financial Performance - The company's net profit attributable to shareholders for 2024 was -316.19 million RMB, a decrease of 23.88% compared to the same period last year, primarily due to business restructuring and significant asset impairment losses [4]. - The total operating revenue for 2024 was 161.27 million RMB, down 35.53% from 2023, mainly due to the strategic shift from "live e-commerce" to "direct e-commerce sales" [4]. - The company's operating revenue for 2024 was ¥161,272,827.35, a decrease of 35.53% compared to ¥250,168,474.76 in 2023 [21]. - The net profit attributable to shareholders for 2024 was -¥316,193,672.59, representing a 23.88% decline from -¥255,232,286.46 in 2023 [21]. - The cash flow from operating activities for 2024 was -¥125,135,862.39, a significant decrease of 144.28% compared to -¥51,225,729.04 in 2023 [21]. - The total assets at the end of 2024 were ¥1,074,500,328.28, down 34.12% from ¥1,630,917,172.20 at the end of 2023 [21]. - The basic earnings per share for 2024 was -¥1.59, a decrease of 24.22% from -¥1.28 in 2023 [21]. - The company's net assets attributable to shareholders decreased by 30.29% to ¥779,447,192.92 at the end of 2024 from ¥1,118,177,411.75 at the end of 2023 [21]. - The company reported a significant increase in non-operating income from government subsidies, amounting to ¥1,083,123.19 in 2024 compared to -¥609,334.59 in 2023 [28]. Strategic Developments - The company plans to enhance its self-operated food brand business and develop a multi-brand, multi-channel strategic layout in the future [6]. - The company will focus on adapting to industry regulations and market changes by transitioning to specialized live streaming services, enhancing overall service capabilities and operational efficiency [6]. - The company has established a new energy industry fund in collaboration with local government resources to accelerate its new energy business layout and strengthen core competitiveness [6]. - The company is in a transformation process, with the new energy business not yet generating significant revenue, but it is seen as a strategic upgrade and a second growth point [49]. - The company is actively exploring new retail and direct sales business models across multiple platforms and channels, investing significantly in brand operation and marketing [47]. - The company is committed to enhancing its lithium mining and processing capabilities, with ongoing construction of a processing plant and talent acquisition to support operations [89]. - The company anticipates that the dual business model of e-commerce and new energy will provide strong momentum for future growth [90]. Market Trends - In 2024, global sales of new energy vehicles reached 18 million units, with a market penetration rate of 25%, driving a 35% increase in demand for power batteries [33]. - China's new energy storage installed capacity reached 184.2 GWh in 2024, representing a year-on-year growth of 147.5%, highlighting the significant growth potential of the energy storage market [33]. - The online retail market in China saw a total retail sales of consumer goods reach 487.895 billion yuan in 2024, with a year-on-year growth of 3.5% [35]. - The online retail sales reached 155.225 billion yuan, growing by 7.2% year-on-year, with physical goods online retail sales at 130.816 billion yuan, up 6.5% [35]. Operational Changes - The company has shifted its strategy from price competition to improving service quality and user experience in the e-commerce sector [36]. - The company has decided to cease other bulk trading and "back-to-back settlement" businesses to mitigate operational risks associated with these activities [41]. - The company has established stable and deep cooperation with multiple suppliers in the supply chain, focusing on developing new product series in various categories such as snacks, prepared dishes, and beverages [44]. - The company plans to enhance its technology team and information systems to ensure data security and improve operational efficiency [39]. Governance and Compliance - The company emphasizes that future plans and strategic developments mentioned in the report do not constitute a substantive commitment to investors, highlighting the need for risk awareness [7]. - The company has established a governance structure to ensure effective management and compliance with legal requirements [165]. - The company is committed to enhancing its governance structure and ensuring equal rights for all shareholders, particularly minority shareholders [100]. - The company has a total of 7 directors, including 3 independent directors, complying with legal and regulatory requirements [101]. - The company has established a supervisory board with 3 supervisors, including 1 employee supervisor, meeting legal requirements [102]. - The audit committee consists of 3 members, responsible for reviewing financial reports and internal controls [101]. - The company has ensured that the board will not fall below the legal minimum number of members following these resignations [110]. Risks and Challenges - The company continues to face uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profits over the past three years [21]. - The company faces risks related to the loss of core personnel, which could impact its competitive advantage if not addressed through effective talent retention and recruitment strategies [91]. - The company is exposed to internet industry policy risks, particularly in its live streaming business, which could adversely affect performance if regulatory changes occur [92]. - Fluctuations in raw material prices could negatively impact profitability, prompting the company to monitor market trends and optimize procurement strategies [96]. - The lithium battery materials market is experiencing high demand, but any slowdown could lead to decreased sales and profitability, necessitating proactive market development efforts [96]. Internal Controls and Audit - The internal control system has been further improved and optimized to effectively prevent operational risks [142]. - The company has established a comprehensive internal control system, including key management regulations such as the Board Meeting Rules and Financial Management System [143]. - The internal control evaluation report indicates that the company maintains effective financial reporting internal controls as of December 31, 2024 [151]. - The internal control audit report issued a standard unqualified opinion, confirming no significant defects in non-financial reporting [151]. - The company has taken measures to address the issues raised in the non-standard audit report, including enhancing internal controls and compliance training for key personnel [187]. Legal Matters - The company received a warning from the China Securities Regulatory Commission regarding regulatory measures against the company and several individuals [123]. - The company and its actual controller, Wu Chenghua, were fined and warned by the China Securities Regulatory Commission [124]. - The company has initiated litigation against both Shanghai Yuan Yuan and Shanxi Huahong to recover unpaid amounts, with the court freezing assets worth CNY 12.3 million related to the case against Shanghai Yuan Yuan [145]. - The company has reported a total of 2,700.41 million yuan involved in litigation as the plaintiff, with a first-instance judgment already made [192]. Employee and Management Changes - The company experienced a change in its board of directors, with independent director Liu Yuqi resigning on July 11, 2024, due to personal work reasons [110]. - Non-independent director Chen Gong also resigned from his position on July 11, 2024, but will continue to serve as a vice president [111]. - General manager Yan Ming resigned on June 21, 2024, and will not hold any position in the company thereafter [112]. - The company has appointed Wang Fabin as a new director on July 11, 2024, following a work transfer [114]. - The company has appointed Qiu Lu as the acting financial director on August 9, 2024, due to a work transfer [114]. Future Commitments - The company has a profit distribution commitment to distribute at least 15% of the distributable profits achieved in the last three years in cash, subject to no major investment plans or cash expenditures [172]. - The company’s board can propose mid-term cash distributions based on the company's funding needs [172]. - The company has committed to ensuring the accuracy and completeness of its prospectus, with a promise to repurchase shares if any misleading statements or omissions are found [170]. - The company has established a long-term commitment to fulfill all promises made regarding independence and compliance [159].