ZLC(SH:600818)2020-04-17 16:00Financial Performance - The company reported a net profit attributable to shareholders of -63,033,486.89 CNY for 2019, compared to a profit of 5,067,868.66 CNY in 2018, indicating a significant decline [5]. - Operating revenue for 2019 was 584,723,847.72 CNY, representing a 10.58% increase from 528,797,169.52 CNY in 2018 [20]. - The basic earnings per share for 2019 was -0.20 CNY, down from 0.02 CNY in 2018, reflecting a substantial decrease in profitability [20]. - The weighted average return on equity was -10.63% in 2019, a decrease of 11.38 percentage points from 0.75% in 2018 [20]. - The company reported a net cash flow from operating activities of 9,360,718.27 CNY, a decrease of 6.05% from 9,963,475.82 CNY in 2018 [20]. - The company reported a non-recurring loss of approximately ¥4.37 million in 2019, compared to a profit of ¥39.74 million in 2018 [24]. - The company reported a net loss of $75,772,820.40, a significant increase of 1,555.77% compared to the previous year, driven by reduced profits and increased provisions for bad debts [54]. - The total comprehensive income for the period was -$75,522,941.33, reflecting a 61.47% increase in losses compared to the previous year [54]. - The company reported a significant increase in long-term equity investments to ¥133,978,251.69 in 2019 from ¥124,907,790.73 in 2018, an increase of approximately 7.4% [131]. - The company reported a significant loss in other comprehensive income, totaling CNY -129,825.03 for the year [145]. Assets and Liabilities - The company’s total assets decreased by 11.13% to 916,970,347.24 CNY at the end of 2019, down from 1,031,784,519.97 CNY in 2018 [20]. - The company’s net assets attributable to shareholders decreased by 10.46% to 568,514,841.36 CNY at the end of 2019, down from 634,932,045.72 CNY in 2018 [20]. - The company’s total liabilities decreased to ¥332,946,295.41 in 2019 from ¥389,131,962.10 in 2018, a reduction of about 14.4% [132]. - Total current assets decreased to ¥104,719,230.69 in 2019 from ¥287,398,202.47 in 2018, a decline of approximately 63.5% [130]. - Total non-current assets increased to ¥812,251,116.55 in 2019 from ¥744,386,317.50 in 2018, an increase of approximately 9.1% [131]. - Total equity decreased to ¥584,024,051.83 in 2019 from ¥642,652,557.87 in 2018, a decline of about 9.1% [132]. - The company’s cash and cash equivalents at the end of the period decreased by 68.01% to $55,229,639.06, influenced by reduced bank loans and lease payments [52]. - Accounts receivable decreased by 56.15% to ¥15,106,843.80 from ¥34,449,692.14, attributed to increased impairment provisions [55]. - Inventory decreased by 54.39% to ¥19,578,555.60 from ¥42,923,266.98, due to inventory clearance and asset impairment provisions [55]. Investments and Projects - The company has invested heavily in high-altitude wind power projects, which may impact future financial performance due to the uncertainty of achieving expected power generation [7]. - The company plans to invest RMB 93 million in the construction of a 10 MW high-altitude wind power station in Jixi, Anhui Province [38]. - The company established a wholly-owned subsidiary with an investment of RMB 50 million to engage in the production and processing of rice paper products [38]. - The company terminated a planned investment of RMB 200 million in a life insurance company due to non-compliance with shareholder qualifications [38]. - The company plans to develop a large-scale cultural tourism complex in Shanghai, integrating shopping, entertainment, and leisure [33]. - The company is actively seeking potential partners to develop a large-scale, multifunctional cultural tourism service area near Shanghai Disneyland [67]. Market and Industry Trends - The total revenue from the bicycle manufacturing industry in China decreased by 4.15% year-on-year, with bicycle manufacturing revenue specifically declining by 0.73% [30]. - The production of two-wheeled bicycles in China fell to 39.62 million units in 2019, a decrease of 8.5% compared to the previous year [31]. - The overall profit margin in the bicycle manufacturing sector is expected to concentrate among larger, well-branded companies as market competition intensifies [32]. - The company anticipates growth in the sports consumption market, with a projected total scale of ¥1.5 trillion by 2020, focusing on cycling and fitness [64]. Corporate Governance and Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 30,383, an increase from 28,884 at the end of the previous month [90]. - The largest shareholder, Shanghai Zhonglu (Group) Co., Ltd., holds 39.98% of the shares, with a total of 128,530,734 shares, of which 85,660,734 shares are pledged or frozen [92]. - The company has no other significant shareholders holding more than 10% of the shares [95]. - The company has not proposed any cash dividend distribution plan for the reporting period, with a net profit attributable to ordinary shareholders of -63,033,486.89 RMB in 2019 [70]. - The company has not distributed any dividends in the last three years, with the last cash dividend being 0.50 RMB per share in 2018 [70]. Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 1,065, with 590 in production, 65 in sales, 47 in technical roles, 23 in finance, and 159 in administration [105]. - The company has no retired employees requiring financial support, indicating a streamlined workforce [105]. - The company’s compensation policy includes a salary system for senior management and a performance-based system for other employees [106]. - Total compensation for all directors, supervisors, and senior management amounted to 2.1012 million yuan [103]. Audit and Compliance - The audit report confirms that the financial statements fairly reflect the company's financial position and operating results for the year 2019 [117]. - There were no significant deficiencies in internal control reported during the audit period [119]. - The company has complied with the relevant auditing standards and ethical requirements throughout the audit process [124]. - The management is responsible for the preparation of financial statements in accordance with accounting standards, ensuring no material misstatements due to fraud or error [123].