NSWRC(SH:600165)2020-06-05 16:00Financial Performance - In 2019, the company's operating revenue was CNY 265,756,858.64, a decrease of 51.86% compared to CNY 552,087,908.80 in 2018[20] - The net profit attributable to shareholders was CNY -44,952,125.08, a decline of 578.18% from CNY 9,400,612.25 in the previous year[21] - Basic earnings per share decreased by 571.43% to -0.066 CNY from 0.014 CNY in the previous year[22] - Diluted earnings per share also decreased by 571.43% to -0.066 CNY from 0.014 CNY in the previous year[22] - The weighted average return on equity dropped by 6.103 percentage points to -5.019% from 1.084% in the previous year[22] - The company achieved operating revenue of CNY 141.85 million, with a net profit of -CNY 39.89 million during the reporting period[39] - The company reported a total revenue for the reporting period of 14,795 million CNY, with no change compared to the previous year[159] - The company reported a pre-tax income of 332.04 million CNY, indicating a significant increase in profitability[159] Assets and Liabilities - Total assets rose by 3.07% to CNY 2,247,718,828.91 at the end of 2019, up from CNY 2,180,704,990.26 at the end of 2018[21] - The company's current assets totaled RMB 768,397,727.15, down from RMB 1,234,975,529.65 in the previous year, indicating a decrease of about 37.7%[199] - The total liabilities of the company were RMB 1,322,613,065.01, compared to RMB 1,187,502,624.12 in 2018, representing an increase of approximately 11.4%[200] - The company's long-term equity investments increased to RMB 593,509,448.88 from RMB 569,073,011.93, reflecting a growth of approximately 4.3%[200] Cash Flow - The cash flow from operating activities was CNY -47,799,953.98, showing an improvement from CNY -180,306,340.50 in 2018[21] - The net cash flow from operating activities was -CNY 47.80 million, an improvement of CNY 132.51 million compared to the previous year[58] - Investment activities resulted in a net cash outflow of -CNY 274.49 million, a decrease of 233.89% compared to the previous year[58] - Cash and cash equivalents increased by 125.18% to 168,139,487.04, primarily due to the registered capital received by the subsidiary Hengli New Materials[60] Shareholder Information - The total number of ordinary shareholders decreased from 31,956 to 30,643 during the reporting period[144] - The largest shareholder, Shanghai Zhongneng, holds 200 million shares, representing 29.20% of the total shares, with all shares pledged[146] - The company has a cash dividend policy that prioritizes cash distribution to protect investors' rights, with no dividends declared for 2019, 2018, and 2017[104] - The company has not proposed any cash profit distribution plans despite positive profits available for distribution to ordinary shareholders[105] Risks and Compliance - The company has detailed potential risks in its report, advising investors to be cautious and rational in their investments[5] - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[6] - The company received a standard unqualified audit report from its accounting firm, Xin Yong Zhong He[7] - The company is committed to fulfilling its information disclosure obligations as per relevant laws and regulations[107] Research and Development - Research and development expenses increased by 129.81% to CNY 1.64 million, representing 0.62% of total operating revenue[56] - The company has 19 patents related to its activated carbon production, including 15 utility model patents and 4 invention patents[30] - Ningxia Huahui has applied for 4 invention patents and 15 utility model patents, emphasizing its commitment to R&D innovation[68] Market and Sales - The sales model combines direct sales and distribution, with both domestic and international sales channels[30] - The company's domestic revenue decreased by 77.64%, while international revenue decreased by 39.12%[48] - The activated carbon industry in China is expected to grow due to increasing demand in water treatment, air purification, and pollution control[31] - The company plans to achieve a sales volume of 30,000 tons and sales revenue of 200 million RMB for activated carbon products in 2020[98] Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and promoting transparency in operations[174] - The board of directors includes experienced professionals with backgrounds in finance and management, enhancing corporate governance[158] - The company has maintained a stable shareholder structure with no significant changes in shareholding during the reporting period[157] Legal Matters - The company is involved in ongoing litigation concerning the performance compensation from the 2017 annual audit[107] - The company filed a lawsuit against Xu Xiaochun for compensation obligations related to the 2017 performance commitment, claiming a loss of RMB 157 million[116] - The company is contesting the arbitration ruling and has filed for its annulment in the Shanghai First Intermediate Court[120] Future Outlook - The company plans to expand its market presence in Asia, targeting a 25% growth in that region for 2020[121] - Future guidance estimates a revenue growth of 10% for 2020, projecting total revenue of 5,500 million[121] - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 300 million set aside for this purpose[121]