TROILA TECHNOLOGY(SH:600225)2021-04-28 16:00Financial Performance - In 2020, the company's operating revenue was CNY 1,082,401,808.57, a decrease of 8.54% compared to CNY 1,183,486,214.79 in 2019[26]. - The net profit attributable to shareholders of the listed company for 2020 was a loss of CNY 3,918,592,979.43, compared to a loss of CNY 912,300,649.89 in 2019[26]. - The net cash flow from operating activities in 2020 was CNY 513,058,683.50, a decrease of 75.93% from CNY 2,131,313,299.99 in 2019[26]. - As of the end of 2020, the net assets attributable to shareholders of the listed company were CNY -3,602,816,206.89, a decrease of 1,239.20% compared to CNY 316,257,119.77 at the end of 2019[26]. - Total assets at the end of 2020 were CNY 9,546,099,444.26, a decrease of 26.21% from CNY 12,935,988,151.38 at the end of 2019[26]. - The company reported a net profit attributable to shareholders of -3.46 billion RMB in Q4 2020, marking a significant decline compared to previous quarters[29]. - The company's basic earnings per share for 2020 was -4.19 RMB, a decrease from -0.98 RMB in 2019[27]. - The company reported a net profit attributable to ordinary shareholders of -3,918,592,979.43 RMB for the year 2020, with a profit margin of 0%[115]. Asset and Liability Management - The company reported a negative retained earnings of CNY -5,953,750,018.35 at the end of 2020, compared to CNY -157,634,306.97 at the beginning of the year[6]. - The company will not distribute profits or increase capital from reserves for the year 2020 due to negative retained earnings[6]. - The company’s total assets at the end of 2020 were 9.546 billion RMB, with a net asset of -3.314 billion RMB, indicating significant financial distress[50]. - The company has acknowledged the existence of significant uncertainties regarding its ability to continue as a going concern, as noted in the audit report[5]. - The company plans to sell part of its stake in Zhuolang Technology to improve its asset-liability structure and alleviate existing debt crises[55]. - The company has a total guarantee amount exceeding 50% of net assets, amounting to RMB 5,991,982,949[173]. Revenue Breakdown - In 2020, the company achieved operating revenue of 1.082 billion RMB, a decrease of 8.54% year-on-year, with real estate business revenue at 144 million RMB and information service business revenue at 938 million RMB[50]. - Revenue from the real estate sector decreased by 4.57% to ¥104,063,773.88, with a gross margin decrease of 11.81 percentage points[60]. - Revenue from information services decreased by 4.38% to ¥937,006,122.51, with a gross margin decrease of 2.03 percentage points[60]. - Total rental income from real estate properties during the reporting period amounted to RMB 2,430.00 million, with a total leased area of 193,000.00 square meters[88]. Operational Challenges - Total impairment provisions for the reporting period amounted to approximately 3.1 billion RMB due to the impact of the COVID-19 pandemic and economic downturn on the real estate sector[30]. - The real estate sector faced challenges with no new projects started in 2020, and a completion area of 57,270 square meters[52]. - The company faces a competitive environment in the real estate sector, with increasing land and financing costs leading to lower profit margins[98]. - Market risks include a slowdown in the overall growth of the real estate industry and challenges in inventory reduction due to varying demand across different property types[107]. Litigation and Compliance - The company is currently involved in significant litigation, including a case with China Construction Sixth Engineering Bureau regarding a construction contract dispute[139]. - Another ongoing lawsuit involves Jiangsu Nantong Second Construction Group, claiming RMB 98,312,600 for unpaid project fees[142]. - The company faced regulatory scrutiny, receiving a warning letter from Tianjin Securities Regulatory Bureau for information disclosure violations[161]. - The company plans to enhance compliance training for its board and management to improve information disclosure quality[161]. Strategic Initiatives - The company will actively adjust its industrial layout and optimize resource allocation to expand into new information technology services, including system integration and cloud computing[102]. - In 2021, the company aims to accelerate the bankruptcy restructuring process for itself and its nine subsidiaries, which will help improve its asset-liability structure and enhance profitability[103]. - The company plans to speed up the de-inventory of real estate projects through various commercial strategies, while also investing in smart city information technology services to align with national industrial policies[103]. Shareholder and Equity Information - The total number of ordinary shares increased to 935,492,615, with a slight decrease in restricted shares from 2,611,261 to 2,568,948[185]. - The company’s controlling shareholder's shares, totaling 274,102,592 shares (29.30% of total shares), were judicially frozen from August 8, 2019, to August 7, 2022[178]. - The company has completed the lifting of restrictions for 348,599 shares previously frozen due to legal disputes[194]. Research and Development - Research and development expenses increased by 29.90% to ¥94,140,864.21 from ¥72,469,125.96 year-on-year[57]. - The number of R&D personnel is 418, accounting for 47.39% of the total workforce[70]. - The company has no capitalized R&D expenditures, indicating a focus on immediate R&D expenses[70].