DLG EXPO(SH:600826)2021-04-16 16:00Financial Performance - In 2020, the company's operating revenue was approximately CNY 2.98 billion, a decrease of 44.52% compared to CNY 5.37 billion in 2019[22]. - The net profit attributable to shareholders was CNY 138.35 million, down 55.80% from CNY 313.02 million in the previous year[22]. - The basic earnings per share decreased by 55.82% to CNY 0.258 from CNY 0.584 in 2019[22]. - The weighted average return on equity fell to 3.52%, a decrease of 4.77 percentage points from 8.29% in 2019[22]. - The net cash flow from operating activities was negative CNY 73.80 million, a decline of 205.57% compared to a positive cash flow of CNY 69.90 million in 2019[22]. - The total assets at the end of 2020 were approximately CNY 4.56 billion, down 18.71% from CNY 5.61 billion at the end of 2019[22]. - The company's net assets attributable to shareholders decreased by 6.51% to CNY 3.71 billion from CNY 3.97 billion in 2019[22]. - The company reported a significant increase of 139.66% in the basic earnings per share after deducting non-recurring gains and losses, reaching CNY 0.139[22]. - The company achieved a net profit of 46.72 million yuan in the exhibition group, completing 133.26% of its performance commitment of 22.17 million yuan[66]. - The net profit attributable to the parent company for 2020 was 29.54 million, exceeding the performance commitment of 22.17 million[134]. Business Transition and Strategy - The company underwent a major asset restructuring in October 2020, shifting its main business focus from import-export trade to exhibition services[32]. - The company aims to strengthen its brand in the exhibition industry, becoming a recognized leader in the sector[32]. - The company is focusing on regional expansion, hosting the first South China International Industrial Expo in Shenzhen and collaborating on the second China (South China) International Robot and Automation Exhibition in Dongguan[66]. - The company aims to complete regional layout in at least ten major exhibition potential cities by 2025 as part of its "Exhibition China" strategy[108]. - The company plans to enhance its core competitiveness through the integration of "online and offline" exhibition models, leveraging technologies such as big data and virtual imaging[108]. - The company is committed to supporting national strategies and enhancing the quality of development by improving existing exhibitions and exploring new projects[110]. - The company is focused on both internal growth and external expansion, utilizing its platform advantages to seek acquisitions in the exhibition industry[109]. Event Management and Industry Impact - The company hosted significant events, including the World Artificial Intelligence Conference, attracting numerous global industry leaders[33]. - The 22nd China International Industry Fair (CIIF) in 2020 maintained an exhibition area of over 255,000 square meters, attracting 191,800 professional visitors, a 4.67% increase from the previous year[37]. - Nearly 500 new products and technologies were launched during the CIIF, representing a 66.67% increase compared to the previous year[37]. - The Shanghai International Advertising Festival in 2020 successfully transitioned to an online format, achieving significant engagement with over 2.6 million online viewers[40]. - The 2020 CIIF faced challenges due to the pandemic but successfully adapted to maintain its scale and influence in the industry[37]. - The World Artificial Intelligence Conference attracted over 240,000 attendees from more than 60 countries, featuring 303 exhibitors across a 20,000 square meter exhibition area[49]. Financial Management and Investments - The company aims to enhance its asset returns through financial asset management and investment management, which are significant profit sources[54]. - The company generated related financial income of 58.73 million yuan through active management of financial assets, maintaining a high level of returns despite overall market declines[71]. - The company is implementing the "Exhibition China" strategy to support regional development, aiming for multi-site layout in exhibition organization and management[112]. - The company plans to optimize its financial asset structure through secondary market operations, enhancing the ability to manage financial assets and funds[113]. - The company has a strategy to enhance investment returns through various financial means, providing solid funding support for its main exhibition business[113]. Risk Management and Challenges - The company has outlined potential risks in its future development strategies, which are detailed in the report[7]. - The company faces risks from market competition as foreign companies enter the domestic exhibition market, increasing competitive pressure[118]. - The company has a risk of operational disruption due to potential future outbreaks of COVID-19, which could impact the exhibition industry significantly[116]. - The company is focused on maintaining a stable management team to mitigate the risk of talent loss in a competitive industry[119]. Corporate Governance and Management Changes - The company held 11 board meetings and 4 shareholder meetings in 2020, approving multiple important proposals including asset restructuring and financial asset management[74]. - The company appointed Chen Huifeng as the new president and adjusted the senior management team to adapt to significant business changes following the approval of a major asset restructuring by the China Securities Regulatory Commission[200]. - The company announced the appointment of Zhou Wei and Zhou Jin as vice presidents, and Lou Mingming as the new financial director, reflecting a restructuring of the management team[200]. - The company’s board secretary, Yang Min, resigned due to retirement, indicating a transition in key management roles[200]. Community Engagement and Employee Welfare - The company reported a total investment of over 12 million yuan in poverty alleviation efforts[164]. - The company donated 380,000 yuan to the "Donghao Lansheng Group Mutual Aid Fund" to support employees facing severe health issues[164]. - The company implemented a comprehensive COVID-19 prevention plan, ensuring a safe working environment for employees[165]. - The company organized annual health check-ups for employees to promote early diagnosis and treatment[167]. - The company maintained a focus on employee welfare, providing financial assistance to retired employees during traditional holidays[167]. Shareholder Information and Equity Structure - The company issued 115,278,607 new shares at a price of 10.05 RMB per share, totaling 1,158.55 million RMB for the asset swap transaction[173]. - The largest shareholder, Shanghai Lansheng Group Co., Ltd., holds 41.17% of the shares, totaling 220,658,920 shares[182]. - The total number of shares held by the top ten shareholders accounts for a significant portion of the company's equity, with the largest three shareholders alone holding over 65%[182]. - The actual controller of the company is the Shanghai State-owned Assets Supervision and Administration Commission, which oversees the management of state-owned assets[187].