J-Yuan Trust (SH:600816)2021-04-29 16:00Financial Performance - The company reported a net profit of -673.8 million RMB for 2020, with a distributable profit at the end of the year of -940.36 million RMB, leading to no profit distribution for the next year [2]. - The company has experienced significant losses for three consecutive years, raising substantial doubts about its ability to continue as a going concern [3]. - Total revenue for 2020 was CNY 298.22 million, a decrease of 37.63% compared to 2019 [14]. - Net profit attributable to shareholders for 2020 was a loss of CNY 6.74 billion, representing a 68.75% increase in loss compared to 2019 [14]. - The net cash flow from operating activities for 2020 was CNY 477.28 million, down 32.14% from 2019 [14]. - Basic earnings per share for 2020 were CNY -1.2320, a decline of 68.74% compared to CNY -0.7301 in 2019 [15]. - The weighted average return on equity for 2020 was -158.10%, a decrease of 116.55 percentage points from 2019 [16]. - The net profit attributable to the parent company was -6,738.00 million yuan, representing a year-on-year decline of 68.75% [31]. - The company reported a significant loss in 2020, with the net asset attributable to the parent company potentially being negative, which could trigger delisting indicators [77]. - The net loss for 2020 was CNY 8,231,214,883.52, compared to a loss of CNY 5,261,870,871.92 in 2019, indicating a worsening of 56.2% [151]. Assets and Liabilities - Total assets at the end of 2020 were CNY 19.93 billion, a decrease of 4.14% from the end of 2019 [14]. - The net assets attributable to shareholders at the end of 2020 were CNY 892.91 million, down 88.30% from the end of 2019 [14]. - The total liabilities increased to CNY 18,331,531,691.34 in 2020, up from CNY 12,454,564,918.86 in 2019, representing a significant increase of approximately 47.06% [147]. - The total equity attributable to shareholders was CNY 965,870,096.02 in 2020, down from CNY 7,696,310,896.75 in 2019, a decrease of 87.5% [150]. - The company reported a significant increase in expected liabilities, which rose to CNY 2,311,485,041.24 from CNY 1,049,699,790.08 in 2019, an increase of 120.5% [150]. - The company recorded a balance of overdue inherent business liabilities of RMB 6.628 billion as of December 31, 2020 [72]. - The total value of restricted assets at the end of the reporting period was ¥9,732,685,445.94, primarily due to litigation freezes [45]. Risk Management and Compliance - The company is currently engaged in risk resolution efforts related to trust projects and is taking measures to reach settlements with holders of guarantee letters [3]. - The company has established a professional team to enhance risk management and compliance mechanisms in response to regulatory requirements [30]. - The company is actively promoting restructuring and risk resolution efforts, with stock trading suspended from March 31, 2020, and resumed on June 1, 2020 [34]. - The company has strengthened its litigation management in response to numerous lawsuits arising from previous trust business commitments [35]. - The company has implemented multiple measures to strengthen internal control and risk management, including the elimination of offline approval processes and enhancing compliance education for key personnel [36]. - The company has established a compliance risk management system to ensure effective execution of internal regulations and enhance compliance awareness among employees [58]. - The company has implemented corrective measures for internal control deficiencies, focusing on compliance and risk management to prevent future issues [133]. Legal Issues - As of December 31, 2020, the company faced 50 lawsuits related to guaranteed commitments, with a total principal amount of RMB 18.491 billion [72]. - The company has accrued a provision for expected liabilities amounting to RMB 2.240 billion for lawsuits pending in the second instance [74]. - The audit report indicates a significant uncertainty regarding the company's ability to continue as a going concern due to ongoing legal issues and financial losses [76]. - The company is in negotiations for restructuring and risk resolution with relevant parties [72]. - The company has not recognized expected liabilities for lawsuits that have not been adjudicated or have not entered judicial proceedings [75]. Governance and Management - The company has established a three-year shareholder return plan for 2017-2019, which was approved in a shareholder meeting [63]. - The company has a total of 4,000.00 million RMB in guarantees for Tianjin Wanan Petrochemical Technology Co., with the guarantee period also ending on April 9, 2022 [92]. - The company has a guarantee of 25,000.00 million RMB for Tianjin Hongyuan Wangneng Petrochemical Technology Co., with the guarantee period ending on December 18, 2022 [92]. - The company has not proposed any cash profit distribution plans despite having positive distributable profits during the reporting period [65]. - The company has not engaged in any share repurchase activities that would count as cash dividends [65]. - The company has not disclosed any significant related party transactions or changes in major contracts during the reporting period [88]. - The company has maintained compliance with governance regulations, holding a shareholder meeting that approved all proposed resolutions [125]. Employee and Management Compensation - The total pre-tax remuneration for senior management during the reporting period amounted to 1,140.6 thousand RMB [113]. - The total actual remuneration for all directors, supervisors, and senior management in 2020 amounted to 11.406 million yuan [118]. - The remuneration for executive directors and supervisors is set at a monthly allowance of 6,000 yuan, with performance-based pay linked to company performance [118]. - The company follows a unified salary and performance evaluation system for all registered directors and supervisors, ensuring equal pay for equal positions [118]. - The company has a comprehensive performance evaluation system for senior management, which influences their remuneration based on annual performance [118]. Financial Reporting and Accounting - The company’s financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy [173]. - The company’s accounting period is defined as January 1 to December 31, covering a full fiscal year [174]. - The company classifies financial instruments based on the business model and cash flow characteristics at initial recognition [180]. - The company assesses expected credit losses for financial instruments, categorizing them into three stages based on credit risk changes since initial recognition [189]. - The company recognizes impairment losses for financial assets measured at fair value through other comprehensive income in current profit or loss [189].