Shanghai Lonyer(SH:603003)2020-04-27 16:00Financial Performance - In 2019, the company achieved a net profit attributable to shareholders of RMB 6,549,132.51, a decrease of 89.69% compared to RMB 63,528,717.90 in 2018[7]. - The company's operating revenue for 2019 was RMB 13,497,955,666.43, down 15.83% from RMB 16,035,871,981.86 in 2018[23]. - The net cash flow from operating activities was negative RMB 130,858,552.89, a decline of 118.76% compared to RMB 697,631,331.33 in 2018[23]. - The company's net profit attributable to shareholders decreased significantly, with a non-recurring profit of CNY 51.16 million, including government subsidies of CNY 3.41 million and investment income from subsidiary disposal of CNY 12.10 million[24]. - Basic earnings per share decreased by 89.08% to CNY 0.0162 in 2019 from CNY 0.1483 in 2018[24]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of negative RMB 44,611,109.47 in 2019, a decrease of 1,405.98% compared to RMB 3,415,918.21 in 2018[23]. - The company achieved total operating revenue of RMB 13.498 billion in 2019, a decrease of 15.83% compared to the previous year[47]. - The company reported a significant increase in cash flow from investment activities, with net cash received from investment reaching RMB 3.967 billion, up 176.57%[50]. Assets and Liabilities - The total assets at the end of 2019 were RMB 5,941,296,451.57, an increase of 5.58% from RMB 5,627,374,062.93 at the end of 2018[23]. - The company's net assets attributable to shareholders decreased by 2.17% to RMB 3,899,058,118.98 at the end of 2019[23]. - The company's fixed assets increased by 73.27% to approximately 1.15 billion RMB due to the completion of the first phase of the data center project[37]. - The accounts receivable balance as of December 31, 2019, was RMB 128,139.90 million, with a bad debt provision of RMB 5,130.50 million, representing 20.70% of total assets[173]. - Total liabilities increased to CNY 1,918,581,105.78 in 2019, up from CNY 1,503,172,323.93 in 2018, representing a growth of approximately 27.6%[185]. Business Operations - The main business activities include data center (IDC) services and commodity trading, including oil and non-ferrous metal trading[33]. - The IDC business is a core strategic transformation area for the company, with the Beijing Jinhangwang project marking its initiation, aiming to provide internet infrastructure and cloud computing services[34]. - The company has established strong partnerships with major clients such as Sinopec and Glencore, which supports its commodity trading operations[39]. - The company aims to enhance its customized data center services, having received a confirmation letter for cabinet demand from Alibaba Group, indicating recognition from core market clients[39]. - The company is focused on risk management in its commodity trading business, employing various financial derivatives to hedge against market and liquidity risks[39]. Market and Industry Insights - In 2019, the total market size of China's IDC business reached approximately 122.8 billion RMB, representing a year-on-year growth of 29.8%, with projections indicating it will exceed 250 billion RMB by 2024[34]. - The average Brent crude oil price for 2019 was 64.21 USD/barrel, a decrease of 10.0% year-on-year, while the apparent consumption of refined oil in China was 330 million tons, up 1.4% year-on-year[35]. - The company anticipates weak demand for oil and metal products in the first half of 2020 due to the impact of the COVID-19 pandemic, but a recovery in demand is anticipated post-pandemic[85]. Shareholder and Dividend Information - The company implemented a share repurchase plan in 2019, with a total repurchase amount of RMB 95,246,500, which accounted for 1454% of the net profit for the year[7]. - The company plans to maintain a cash dividend policy of at least 15% of distributable profits in profitable years, with higher percentages for mature stages without major capital expenditures[91]. - The company reported a cash dividend of RMB 95.25 million in 2019, representing 1,454% of the net profit attributable to ordinary shareholders[96]. Corporate Governance and Management - The company’s financial report received a standard unqualified audit opinion from Da Hua Certified Public Accountants[6]. - The company has a diverse board with members holding various positions in other organizations, enhancing its governance structure[142]. - The independent directors have been in their roles since 2014 and 2015, contributing to the company's oversight[142]. - The company has maintained a stable management team with no significant changes in shareholding among directors and senior management[141]. Social Responsibility - The company donated 600,000 RMB to purchase approximately 5,000 sets of medical protective clothing for COVID-19 prevention in Wuhan[126]. - A total of 30,000 medical masks were donated to the Red Cross Society in Pudong New Area for frontline epidemic prevention efforts[126]. - The company aims to enhance its social responsibility management system and integrate social responsibility into all aspects of its operations[126].