GETM(SH:600232)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was approximately RMB 1.24 billion, representing a 3.44% increase compared to RMB 1.20 billion in 2018[21]. - The net profit attributable to shareholders was RMB 25.69 million, a slight increase of 1.17% from RMB 25.39 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses decreased significantly by 87.74% to RMB 2.62 million from RMB 21.40 million in 2018[21]. - The cash flow from operating activities showed a negative net amount of RMB 66.86 million, compared to a positive RMB 95.23 million in 2018[21]. - Basic earnings per share remained stable at CNY 0.07, with diluted earnings per share also at CNY 0.07, showing no change compared to the previous year[23]. - The net profit attributable to shareholders for Q1 2019 was CNY 6.89 million, while Q2 and Q3 saw profits of CNY 8.81 million and CNY 7.88 million respectively, with a significant drop to CNY 2.12 million in Q4[26]. - The weighted average return on equity increased to 2.24%, up 0.06 percentage points from the previous year[23]. - The company reported a decrease of 83.33% in basic earnings per share after excluding non-recurring gains and losses, dropping to CNY 0.01 from CNY 0.06 in the previous year[23]. - The company achieved operating revenue of RMB 1,240,315,014.38, an increase of 3.44% year-on-year[44]. - The net profit attributable to the parent company was RMB 25,690,002.71, reflecting a year-on-year growth of 1.17%[44]. - The total operating revenue for 2019 was CNY 1,240,315,014.38, an increase of 3.4% from CNY 1,199,088,085.28 in 2018[191]. - The total operating costs for 2019 were CNY 1,170,163,730.97, up from CNY 1,125,654,203.49 in 2018, reflecting a growth of 3.9%[191]. - Net profit for 2019 was CNY 38,063,262.29, a decrease of 5.7% compared to CNY 40,355,340.28 in 2018[192]. - The total comprehensive income for 2019 was CNY 38,063,262.29, compared to CNY 40,355,340.28 in 2018, reflecting a decrease of 5.7%[192]. Assets and Liabilities - Total assets increased by 5.65% to RMB 1.86 billion at the end of 2019, up from RMB 1.76 billion at the end of 2018[22]. - The net assets attributable to shareholders decreased by 2.57% to RMB 1.11 billion from RMB 1.14 billion in 2018[22]. - Total liabilities increased to ¥691,997,514.04 from ¥578,182,410.70, indicating a rise of around 19.7%[186]. - Current liabilities amounted to ¥664,743,554.97, up from ¥574,928,839.15, which is an increase of approximately 15.6%[186]. - Long-term liabilities totaled ¥27,253,959.07, significantly higher than ¥3,253,571.55 in 2018, showing a substantial increase[186]. - Shareholders' equity decreased to ¥1,167,345,958.07 from ¥1,181,803,957.03, reflecting a decline of about 1.2%[186]. Research and Development - Research and development expenses surged by 110.60% to approximately CNY 10.71 million, indicating a strong focus on innovation[50]. - The company's R&D expenses increased significantly to CNY 10,712,381.69, up from CNY 5,086,582.79 in the previous year, marking a growth of 110.5%[191]. - The company plans to increase R&D investment in 2020, focusing on the development of intelligent textile machinery and energy-efficient injection molding machines[81]. Market and Industry Position - The textile machinery segment is positioned as a competitive advantage, with the company holding a leading position in the industry after acquiring the UK-based MAKIE, enhancing its technological capabilities[30]. - The textile machinery industry is characterized by high competition and technological barriers, with a trend towards automation and smart manufacturing[30]. - The company maintains a market share of over 85% in the hemp and silk spinning machinery sector, with a focus on technological innovation[39]. - The global demand for machinery is projected to reach USD 37.5 billion by 2021, with an annual growth rate of 5.6%[33]. - The company is actively expanding into the new energy battery materials sector, with key products including ternary lithium battery cathode materials and lithium manganese oxide battery materials[47]. Corporate Governance and Compliance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company emphasizes the importance of environmental protection and plans to invest in clean production and resource recycling initiatives[83]. - The company has implemented measures to enhance internal control management, including stricter management of company seals and a commitment to improve compliance with internal control systems[104]. - The company has received a warning letter from the Zhejiang Securities Regulatory Bureau regarding compliance issues, emphasizing the need for timely disclosure of investment progress[103]. - The company has maintained its auditor, Tianjian Accounting Firm, for 20 years, with an audit fee of 108,000 RMB[98]. - The company has established a performance appraisal mechanism that focuses on strategic orientation and job competency models[169]. - The company has a structured assessment method for determining the remuneration of directors and senior management based on annual performance evaluations[153]. Social Responsibility - The company donated 1 million RMB to the Zhoushan Charity Association for COVID-19 prevention efforts, fulfilling its social responsibility[85]. - The company has engaged in various social responsibility activities, contributing a total of 661,574.90 RMB to charitable causes in 2019[114]. - The company actively participates in social welfare activities, focusing on charitable donations and cultural education[123]. Employee and Management - The company has a total of 2,571 employees, with 477 in the parent company and 2,094 in major subsidiaries[156]. - The employee composition includes 2,171 production personnel, 60 sales personnel, 160 technical personnel, 45 financial personnel, and 135 administrative personnel[156]. - The company adheres to a competitive salary policy, which includes a basic annual salary, performance-based salary, and special rewards[157]. - The management team includes experienced professionals with extensive backgrounds in textile machinery and related industries[152]. - The management's assessment of expected credit losses for accounts receivable is based on historical data and forward-looking estimates[176]. Environmental Impact - The company invested a total of 2.658 million yuan in environmental protection measures, including 1.455 million yuan for wastewater treatment management and 0.828 million yuan for paint waste gas treatment[127]. - The company implemented a 1500M3/D wastewater reuse system, achieving a daily output of 1500 tons, resulting in annual savings of approximately 1.98 million yuan from reduced water and sewage fees[129]. - The company reported actual emissions of 23.68 tons of COD, 0.68 tons of NH3-N, 0.1 tons of SO2, and 2.75 tons of NOX, all within the regulatory limits[124]. - The company has not experienced any major environmental pollution incidents in recent years, adhering to ISO14000 environmental management standards[124]. - The LNG supply technology transformation project has reduced SO2 and particulate matter emissions by nearly 100%, CO2 emissions by 60%, and NOX emissions by 50%[127].