SMEG(SH:600689)2021-04-20 16:00Financial Performance - The company's total revenue for 2020 was ¥945,417,541.82, a decrease of 30.97% compared to ¥1,369,543,327.65 in 2019[20] - The net profit attributable to shareholders for 2020 was -¥35,399,947.57, a decline of 531.67% from a profit of ¥8,200,687.11 in 2019[20] - The company's total profit for the year was CNY -31.24 million, a decline of CNY 43.72 million year-on-year[47] - The net profit attributable to shareholders was CNY -35.40 million, with a net profit excluding non-recurring items of CNY -3.38 million[47] - The company reported a significant loss from the disposal of non-current assets amounting to -¥11,410,536.07 in 2020[27] - The company reported a total comprehensive loss of CNY -34,830,187.03 in 2020, compared to a comprehensive income of CNY 9,741,592.42 in 2019[179] - The company reported a significant increase in investment income, totaling ¥10,145,897.08 in 2020, down from ¥20,063,528.39 in 2019[181] Assets and Liabilities - The company's net assets attributable to shareholders decreased by 8.19% to ¥426,690,529.97 at the end of 2020, down from ¥464,754,450.44 in 2019[20] - The total assets of the company decreased by 5.15% to ¥686,566,065.43 at the end of 2020, compared to ¥723,837,580.39 in 2019[20] - The total liabilities increased from ¥248.97 billion in 2019 to ¥260.14 billion in 2020, an increase of about 4.63%[172] - The company's retained earnings turned negative, dropping from ¥7.58 million in 2019 to -¥30.47 million in 2020[173] - The total equity attributable to shareholders decreased from ¥464.75 billion in 2019 to ¥426.69 billion in 2020, a decrease of approximately 8.18%[173] Cash Flow - The net cash flow from operating activities for 2020 was ¥37,823,493.08, compared to -¥25,423,806.69 in 2019[20] - The operating cash flow for 2020 was ¥37,823,493.08, a recovery from a negative cash flow of -¥25,423,806.69 in 2019[183] - The cash and cash equivalents at the end of 2020 were ¥291,621,677.51, an increase from ¥255,766,242.95 at the end of 2019[184] - The cash inflow from investment activities amounted to $399,504,243.81, an increase of 74.2% compared to $229,369,232.75 in the previous year[187] Revenue Segments - The company's security business revenue reached 210.55 million yuan, a slight increase of 4.60% year-on-year, primarily driven by the growth in human security services, which increased by approximately 7.65%[36] - The import and export trade business generated a total revenue of 697.56 million yuan, a decrease of 33.21% compared to the previous year, mainly due to the implementation of new revenue recognition standards and the poor performance of a subsidiary[42] - The property leasing segment reported revenue of approximately 27.79 million yuan, a slight decrease of 2.32% year-on-year, impacted by increased vacancy rates and rent reductions for eligible small and medium-sized enterprises[43] Operational Strategy and Management - The company plans not to distribute profits or increase capital due to negative retained earnings at the end of 2020, which amounted to -¥17,691,247.40[4] - The company is actively pursuing supply-side structural reforms, including the disposal of low-efficiency assets and the revitalization of existing resources, to improve overall profitability[44] - The company is focusing on risk prevention and control, executing 39 internal audits and 78 legal compliance reviews throughout the year to identify and mitigate operational risks[46] - The company has implemented a standardized management model in its security services, enhancing service quality and customer satisfaction[42] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 29,672, an increase from 28,303 in the previous month, representing a growth of approximately 4.85%[118] - The largest shareholder, Chongqing Light Textile Holdings (Group) Company, held 52,158,943 shares, accounting for 25.95% of total shares[120] - The company did not experience any changes in its total number of shares or shareholder structure during the reporting period[117] Legal and Compliance - The company faced a lawsuit regarding a contract dispute, with a claim for RMB 0.8928 million and RMB 0.9379 million in overdue interest losses[88] - The company has ongoing litigation related to land lease disputes, with a request for the return of land and payment of usage fees[88] - The company has not reported any penalties from securities regulatory agencies in the past three years[136] Audit and Financial Reporting - The financial statements were audited by Lixin Accounting Firm, confirming the accuracy of reported figures[76] - The company received a standard unqualified opinion from the auditing firm regarding its financial statements for the year ended December 31, 2020, indicating fair representation of its financial position[158] - The audit identified revenue recognition as a critical audit matter due to its impact on financial reporting[161] Employee and Management Structure - The company employed a total of 820 staff, with 19 in the parent company and 801 in major subsidiaries[136] - The total compensation for the board members and senior management during the reporting period amounted to CNY 3.78 million, with the highest individual compensation being CNY 975,100 for the Chairman[129] - The company has maintained a stable management structure with no changes in the board of directors or senior management during the reporting period[129]