LGWH(SH:601599)2021-03-26 16:00Financial Performance - The company’s operating revenue for 2020 was approximately ¥1.69 billion, a decrease of 44.24% compared to ¥3.04 billion in 2019[22]. - The net profit attributable to shareholders was a loss of approximately ¥1.02 billion, compared to a loss of ¥965.75 million in 2019[22]. - The cash flow from operating activities was negative ¥156.04 million, a decline of 143.40% from ¥359.53 million in 2019[25]. - The textile business revenue decreased by 24.94% to ¥192.54 million, with international revenue dropping by 32.05% to ¥69.34 million[24]. - The company recognized impairment losses totaling approximately ¥766.53 million in 2020 due to the impact of the pandemic on the film industry[24]. - Basic earnings per share for 2020 were -¥1.14, compared to -¥1.08 in 2019[23]. - The weighted average return on equity was -96.53% for 2020, down from -46.10% in 2019[23]. - Total assets at the end of 2020 were approximately ¥3.82 billion, a decrease of 29.18% from ¥5.39 billion at the end of 2019[22]. - The company’s net assets attributable to shareholders decreased by 65.82% to approximately ¥536.53 million at the end of 2020[22]. Corporate Governance - The company received a standard unqualified audit report from the accounting firm Tianye[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by the board of directors and senior management[8]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company emphasizes the importance of maintaining good communication and cooperation with creditors to protect their legal rights[148]. - The company has committed to maintaining its independence and avoiding conflicts of interest with related parties[132]. - The company has undergone changes in accounting policies in accordance with national standards, impacting financial reporting[134]. - The company has a comprehensive mechanism for monitoring compliance and legality of the actions of directors and executives[194]. Risk Management - The company has detailed potential risks in the report, which investors should review[7]. - The company emphasizes the importance of investor awareness regarding future plans and associated risks[6]. - The company faces risks related to the ongoing COVID-19 pandemic, which may affect its film production activities and overall business performance[119]. - The company is exposed to regulatory risks in the film industry, which could impact production and distribution processes[120]. - The company is addressing risks in its film segment by clarifying the situations of its subsidiaries, Century Long Dragon and Tianyi Film[109]. - The company is monitoring exchange rate fluctuations that may impact both costs and revenues due to its reliance on imported materials and export activities[124]. - The company is preparing for potential disruptions from local government urban planning that may affect its production facilities[124]. Strategic Initiatives - The company plans to negotiate with clients for returning unbroadcasted dramas to mitigate losses in the film segment[24]. - The company aims to enhance product quality through stringent supplier selection and quality control measures in its manufacturing processes[42]. - The company aims to invest several hundred million yuan over the next three years to establish a film special effects base, emphasizing the integration of film and technology[109]. - The company plans to optimize the film creation ecosystem and promote the production of high-quality cultural works[107]. - The company intends to focus on high-value, high-tech, and high-quality products in the textile sector, aiming to enhance its brand recognition and core competitiveness[108]. - The company is focused on expanding its cultural and media investments through strategic appointments and board restructuring[179]. Legal Matters - The company has not disclosed any significant litigation or arbitration matters reported for the year[137]. - The company is involved in multiple civil lawsuits with various amounts, indicating ongoing legal challenges that may impact financial performance[138][139][140]. - The company reported a civil lawsuit involving an investment amount of 10,000,000, which has been mediated but the defendant has not complied with the agreement[138]. - Another civil lawsuit related to an investment amount of 1,500,000 is also in mediation, with the defendant failing to meet repayment obligations[138]. Environmental Responsibility - The company adheres to environmental protection policies and continuously improves its technology to minimize pollution[149]. - The company is listed as a key pollutant discharge unit in Suzhou, focusing on wastewater and general solid waste management, with no major environmental violations reported during the reporting period[150]. - The company has achieved ISO14001 environmental management system certification, ensuring compliance with environmental laws and regulations[158]. - The company’s wastewater treatment meets the Class B standard of the Urban Wastewater Treatment Plant Pollutant Discharge Standard, with specific limits for COD, BOD5, and total nitrogen[152]. Shareholder Information - The company will not distribute cash dividends for the year 2020, nor will it increase capital from reserves or distribute bonus shares, pending shareholder approval[5]. - The profit distribution plan for 2020, which includes no capital reserve transfer to increase share capital or distribution of bonus shares, was approved by the board on March 26, 2021[128]. - The company reported a net profit attributable to shareholders of -965,747,540.66 RMB for 2019, indicating a continued trend of losses[130]. - The company has a total of 30,155 ordinary shareholders at the end of the reporting period, a decrease from 31,048 at the end of the previous month[163]. Management and Workforce - The company employed a total of 3,013 staff, with 2,633 in sales, 182 in production, and 62 in technical roles[188]. - The company has established a comprehensive compensation policy that emphasizes systematic, market-oriented, and incentive-based principles[189]. - The training program for 2020 focused on enhancing core competitiveness through various training courses, including onboarding and professional skills training[190]. - The company has a total of 131 employees with a bachelor's degree or higher, while 2,687 employees have less than a college degree[188].