LMZ(SH:600249)2020-04-16 16:00Financial Performance - In 2019, the company reported a net profit attributable to shareholders of -53,805,394.54 RMB, a significant decline compared to a profit of 21,719,714.74 RMB in 2018[20]. - The company's operating revenue for 2019 was 1,186,674,091.12 RMB, representing a decrease of 4.66% from 1,244,728,370.00 RMB in 2018[20]. - The company faced significant challenges, as indicated by a net profit loss of -119,500,060.56 RMB after deducting non-recurring gains and losses[20]. - The basic earnings per share for 2019 was -0.10 CNY, a decrease from 0.04 CNY in 2018[22]. - The net profit attributable to shareholders for Q1 2019 was 47,339,110.07 CNY, but the company reported losses in Q2 (-19,266,438.74 CNY), Q3 (-20,274,082.87 CNY), and Q4 (-61,603,983.00 CNY)[23]. - The net profit after deducting non-recurring items for the year was -76,066,339.80 CNY, indicating a significant loss compared to previous years[24]. - The company reported a net profit of -26.38 million yuan for the fiscal year 2019[104]. - In 2019, the company did not distribute any cash dividends, reflecting a net loss of -53.81 million yuan[105]. Cash Flow and Assets - The net cash flow from operating activities increased to 88,800,489.03 RMB, a substantial rise of 369.84% compared to 18,900,054.92 RMB in 2018[21]. - The total assets of the company at the end of 2019 were 2,693,598,246.18 RMB, reflecting a growth of 6.40% from 2,531,502,988.92 RMB at the end of 2018[21]. - The company reported a total cash flow from operating activities of 8,040,862.19 CNY in Q1, which increased to 54,466,904.23 CNY in Q2, but turned negative in Q3 with -25,928,893.64 CNY, before recovering to 52,221,616.25 CNY in Q4[24]. - The company recorded a total of 2,000,000 CNY in deferred tax assets being reversed due to uncertainties regarding future taxable income[25]. - The company reported a 669.20% increase in other receivables, amounting to 646.15 million yuan, due to the transfer of paper and real estate company debts[58]. - The total current assets amounted to ¥1,924,846,831.74, an increase from ¥831,017,005.66 in 2018, representing a growth of approximately 131%[193]. Operational Efficiency - The company has outlined future plans for sustainable development, emphasizing the importance of new product development and brand promotion[5]. - The company completed a major asset restructuring, selling 84.62% of its stake in the paper company and 80% in the real estate company, resulting in a cash inflow of CNY 587 million[42]. - Research and development expenses increased by 26.65% to CNY 14,252,402.08, reflecting the company's commitment to innovation[44]. - The company maintained its leading position in the hotel toiletries market, adding over 30 high-end hotel clients[40]. - The company focused on the "big consumption, big health" industry, with a strategic shift towards core business areas after divesting from the paper and real estate sectors[39]. - The company emphasized the development of new sales channels, including e-commerce platforms and social retail, to enhance market reach[40]. Revenue Breakdown - Industrial manufacturing revenue was CNY 1,154,499,352.65, with a gross margin of 17.47%, reflecting a year-over-year decrease of 4.25% in revenue and a decrease of 0.79% in cost[46]. - The revenue from commercial trade was CNY 7,049,370.96, with a gross margin of 18.80%, showing a significant year-over-year decline of 17.08% in revenue and 21.07% in cost[47]. - Real estate and property management revenue decreased by 54.82% year-over-year to CNY 2,373,160.97, with a gross margin of 30.23%[47]. - The company’s revenue from daily chemical products reached ¥723,023,531.19, with a gross margin of 22.04%, reflecting a year-over-year increase of 5.32%[75]. - The revenue from pharmaceuticals was ¥108,927,853.61, achieving a gross margin of 38.84%, with a year-over-year increase of 1.43%[75]. Shareholder and Governance - The company’s cash dividend policy remains unchanged during the reporting period, with decisions made by the board based on profitability and funding needs[101]. - The company has committed to maintaining the independence of its operations and protecting the rights of all shareholders[110]. - The company has a policy to consider its industry characteristics and development stage when proposing differentiated cash dividend policies[103]. - The company’s board of directors is responsible for proposing any adjustments to the profit distribution policy, which must be approved by the shareholders' meeting[102]. - The company has established a performance evaluation management system to optimize the compensation management framework[155]. - The company has a clear governance structure, ensuring responsibilities among its power, decision-making, supervisory, and management bodies are well-defined[159]. Environmental and Social Responsibility - The company has established a wastewater treatment plant with a designed daily processing capacity of 60,000 tons, while the actual daily discharge is approximately 10,000 tons, meeting national environmental standards[125]. - The company has donated over CNY 3 million in cash and materials to support COVID-19 relief efforts, demonstrating its commitment to social responsibility[122]. - The company is a vice-chairman unit of the China Oral Care Products Industry Association, contributing to the drafting of industry standards for traditional Chinese medicine toothpaste[122]. - The company has not encountered any situations that would lead to a risk of suspension or termination of its listing[116]. - The company has established an environmental monitoring plan and complies with self-monitoring regulations[130].