HNHS(SH:600156)2020-04-09 16:00Financial Performance - In 2019, the company reported a total revenue of CNY 1,038.24 million, representing a 2.10% increase compared to CNY 1,016.86 million in 2018[21]. - The net profit attributable to shareholders was CNY -56.69 million in 2019, a significant decline of 305.32% from CNY 27.61 million in 2018[21]. - The company's net cash flow from operating activities was CNY -66.13 million, worsening by 159.57% compared to CNY -25.48 million in 2018[21]. - The total assets at the end of 2019 were CNY 1,103.05 million, an increase of 5.96% from CNY 1,040.99 million at the end of 2018[21]. - The net assets attributable to shareholders increased to CNY 688.19 million, up by 5.88% from CNY 649.98 million in 2018[21]. - The basic earnings per share for 2019 was CNY -0.141, a decrease of 305.24% from CNY 0.0687 in 2018[22]. - The weighted average return on equity was -8.48% in 2019, a decrease of 12.82 percentage points from 4.34% in 2018[22]. - The company reported a net profit of -56.69 million yuan for 2019, with a three-year cumulative distributable profit of -115.65 million yuan[83]. - The company will not distribute dividends for 2019 due to negative average distributable profits over the past three years[83]. Operational Challenges - The company faced significant operational challenges, as indicated by the negative net profit and cash flow figures[21]. - The company has outlined potential risks in its operations, which investors should consider[7]. - The textile industry faces challenges such as slowing domestic demand and rising costs, with significant impacts from international trade tensions[76]. - The company faces risks including market demand decline, exchange rate fluctuations, and raw material supply shortages due to reduced planting areas[81]. Revenue and Sales Growth - The company achieved an annual revenue of 1,038.24 million RMB in 2019, representing a year-on-year growth of 2.1%[30]. - Sales on the North American Amazon platform for men's clothing reached 1.2 million USD, a 90% increase year-on-year[32]. - The total import and export volume for 2019 was 125 million USD, reflecting a year-on-year growth of 6.49%[35]. - The revenue from overseas sales is 82,202.59 million RMB, a 5.22% increase compared to the previous year, while domestic sales revenue is 19,917.35 million RMB, a decrease of 10.69%[45]. Research and Development - Research and development expenses increased by 57.03% to 808.47 million RMB, compared to 514.84 million RMB last year[39]. - The company developed over 130 new woven fabric products, with three winning the China Popular Fabric Excellence Award[31]. - R&D expenses increased by 57.03% to 8.08 million yuan, primarily due to increased investment in the "hemp project" by a subsidiary[60]. - The proportion of R&D personnel to total employees was 7.49%, with a total of 131 R&D staff[62]. Cash Flow and Financial Position - The company reported a non-operating income of 4.28 million RMB in 2019, with significant contributions from government subsidies[25]. - The company's investment activities generated a net cash flow of -11,574.15 million RMB, a decline of 174.30% compared to 15,577.17 million RMB in the previous year[39]. - The company reported a total comprehensive income of CNY -6,349,891.28 for the year, indicating a decrease compared to the previous year's comprehensive income[187]. - The total cash and cash equivalents at the end of the year stood at 119,076,237.44 RMB, down from 288,984,667.91 RMB at the beginning of the year, indicating a cash depletion of 169,908,430.47 RMB[177]. Inventory and Production - Yarn production increased by 15.76% and sales increased by 23.24% compared to the previous year, with a production-sales ratio of 87.72%, up 5.33% from the previous period[50]. - Fabric production and sales decreased by 29.89% and 59.47% respectively, with a production-sales ratio of 88.28%, down 70.32% from the previous period[50]. - The company reported a net inventory value of 188 million yuan as of December 31, 2019, after accounting for a provision for inventory impairment of 115 million yuan[151]. - The company’s total inventory as of December 31, 2019, was valued at 303 million yuan[151]. Governance and Compliance - The company has appointed Xinyong Zhonghe Accounting Firm with an audit fee of 420,000 CNY for a four-year term[94]. - The audit report provided a standard unqualified opinion on the financial statements, indicating no significant issues were found[149]. - The company has not encountered any major accounting errors that require correction during the reporting period[93]. - The company actively fulfilled social responsibilities, ensuring employee safety and health, and paid all taxes in full[101]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 30,333, a decrease from 37,365 at the end of the previous month[116]. - Hunan Huasheng Group Co., Ltd. held 162,104,312 shares, representing 40.31% of the total shares, with 20,000,000 shares pledged[118]. - The top five customers generated sales of 438.5 million yuan, accounting for 42.94% of total annual sales[56]. - The top five suppliers accounted for 28.99% of total annual purchases, with a total procurement amount of 284.64 million yuan[58]. Employee and Management - The company has a total of 1,749 employees, with 1,300 in production, 74 in sales, 131 in technology, 34 in finance, and 210 in administration[134]. - The total pre-tax remuneration for the reporting period amounted to 2.398 million yuan, with the highest individual remuneration being 39.91 million yuan for an employee supervisor[126]. - The company has established a training system that combines internal and external training for employees[136]. - The company strictly adheres to the laws and regulations regarding remuneration policies, ensuring that employee compensation is based on market levels and annual performance assessments[135].