Chongqing Qianli Technology(SH:601777)2021-04-09 16:00Financial Performance - The net profit attributable to the parent company for 2020 was ¥58,103,794.46, resulting in a total distributable profit of -¥3,044,426,693.79 at year-end [7]. - Due to the negative distributable profit, the company will not distribute profits for 2020, including cash dividends and stock dividends [7]. - The company's operating revenue for 2020 was approximately ¥3.64 billion, a decrease of 51.18% compared to ¥7.45 billion in 2019 [27]. - The net profit attributable to shareholders of the listed company was a loss of approximately ¥6.33 billion, compared to a loss of ¥4.40 billion in 2019, representing a 44.11% increase in loss [27]. - The net cash flow from operating activities was approximately ¥234.61 million, a significant improvement of 120.75% compared to a negative cash flow of ¥1.13 billion in 2019 [27]. - The total assets at the end of 2020 were approximately ¥17.94 billion, a decrease of 7.56% from ¥19.41 billion at the end of 2019 [27]. - The basic earnings per share for 2020 was ¥0.04, recovering from a loss of ¥3.58 per share in 2019 [27]. - The weighted average return on equity increased to 1.88% in 2020, up 93.49 percentage points from -91.61% in 2019 [27]. - The company reported a significant non-recurring loss of approximately ¥6.39 billion in 2020, compared to a non-recurring loss of ¥286.87 million in 2019 [34]. - The net profit attributable to shareholders in Q4 2020 was approximately ¥3.50 billion, a recovery from losses in the previous three quarters [29]. - The company’s net assets attributable to shareholders increased by 267.14% to approximately ¥10.08 billion at the end of 2020 [27]. - The company recorded a net cash flow from operating activities of approximately ¥87.85 million in Q4 2020, following positive cash flow in the second and third quarters [29]. Challenges and Risks - The company faced significant challenges and risks in its future development, as outlined in the report [10]. - The company faced a significant impairment loss of ¥21.37 billion due to the bankruptcy reorganization, affecting various assets including inventory and fixed assets [40]. - The company faces risks from potential market demand suppression due to the COVID-19 pandemic and international trade tensions affecting export profitability [118]. Sales and Revenue - Revenue from the transportation sector was approximately $2.96 billion, showing a year-over-year decrease of 45.69% [55]. - The motorcycle and parts segment generated revenue of approximately $2.56 billion, with a year-over-year decline of 3.28% [55]. - Domestic sales accounted for approximately $1.52 billion, reflecting a year-over-year decrease of 49.28% [55]. - The company produced 1,584 fuel vehicles, a decrease of 91.01% compared to the previous year, while sales were 1,966 units, down 91.14% [56]. Investments and Acquisitions - The company achieved a substantial investment income of approximately ¥9.23 billion, a dramatic increase of 2,855.37% compared to the previous year [48]. - The company’s total assets increased by ¥48.56 billion due to the acquisition of a 50% stake in a real estate company, which included an increase in inventory by ¥22.36 billion and investment properties by ¥24.88 billion [40]. - The company acquired a 50% stake in Chongqing Runtian Real Estate with an estimated value of RMB 137.11 million, compensating for debts of RMB 137 million [92]. Research and Development - Total R&D expenditure amounted to approximately $148.34 million, representing 4% of total revenue [65]. - The company is focusing on battery swapping technology, which can reduce battery replacement time to under 2 minutes, enhancing efficiency and user experience [97]. - The company is committed to improving battery technology and smart applications in its products, aiming to meet the growing demand for electric and intelligent machinery [111]. Environmental Compliance - The company has established independent wastewater treatment stations at its motorcycle and automobile production bases, ensuring compliance with the "Rain and Sewage Diversion" principle [166]. - The company has implemented pollution prevention facilities that are fully operational and in compliance with environmental assessment requirements [179]. - The company is recognized as an "environmentally friendly enterprise" by the Chongqing Environmental Protection Bureau [186]. Corporate Governance - The company appointed Tianheng Accounting Firm as the auditor for the 2020 financial year, with a remuneration of CNY 2,100,000 [136]. - The internal control audit will also be conducted by Tianheng Accounting Firm, with a fee of CNY 1,250,000 [137]. - The company has not encountered any significant accounting errors during the reporting period [135]. - The company has not faced any risks of suspension or termination of listing [138]. Shareholder and Equity Changes - The total number of ordinary shares increased from 1,313,757,579 to 4,527,931,300 shares due to a capital reserve conversion plan, with a ratio of 10 shares increasing by approximately 24.997 shares [195]. - The company reported a significant increase in restricted shares, totaling 2,249,550,000 shares, as part of its restructuring plan [196]. - The restructuring investors, Manjianghong Fund and Chongqing Jianghehui, acquired 1,349,550,000 shares and 900,000,000 shares respectively from the capital increase [199].