De Xin Road Transportation(SH:603032)2021-04-26 16:00Financial Performance - The net profit attributable to shareholders for the year 2020 was -8,617,234.15 RMB, indicating a loss for the company [4]. - The total distributable profit available to shareholders as of December 31, 2020, was 341,785,419.88 RMB [4]. - The company reported a net profit of -7,646,880.61 RMB for the parent company in 2020, with a cumulative distributable profit of 343,986,636.63 RMB [4]. - The company's operating revenue for 2020 was ¥51,433,972, a decrease of 48.05% compared to ¥99,011,136 in 2019 [20]. - The net profit attributable to shareholders was -¥8,617,234, representing a decline of 220.60% from a profit of ¥7,145,045 in 2019 [20]. - The net cash flow from operating activities was -¥10,704,281, a decrease of 122.16% compared to ¥48,300,451 in 2019 [20]. - The basic earnings per share for 2020 was -¥0.05, down 225% from ¥0.04 in 2019 [21]. - The weighted average return on equity decreased to -1.27%, down 2.32 percentage points from 1.05% in 2019 [21]. - The total assets at the end of 2020 were ¥803,792,016.83, a decrease of 2.82% from ¥827,105,947.81 at the end of 2019 [20]. - The net assets attributable to shareholders at the end of 2020 were ¥673,425,016.78, a decrease of 1.20% from ¥681,615,293.31 at the end of 2019 [20]. - The company reported a total of ¥23,633,877.04 in non-recurring gains and losses for 2020 [26]. Dividend Policy - The company decided not to distribute cash dividends or issue bonus shares for the year 2020 due to its transformation phase and significant capital needs [4]. - The company plans to distribute at least 20% of its distributable profits as cash dividends in the next three years (2020-2022), contingent on meeting certain financial conditions [83]. - The cumulative cash distribution over three years will not be less than 30% of the average annual distributable profits during the same period [83]. - The company has implemented a cash dividend policy that prioritizes cash distributions when conditions are met, with a focus on maintaining shareholder interests [86]. - The company has established a dividend policy that considers industry characteristics, development stage, and significant capital expenditure plans when determining cash distribution [85]. Transformation and Strategy - The company is currently undergoing a transformation and development phase, which may impact future performance and strategies [5]. - The company plans to continue expanding its market presence in the transportation and logistics sector [29]. - The company aims to strengthen its core business in road transportation amidst market restructuring due to the pandemic [48]. - The company plans to leverage its strengths in capital operation and governance to expand into the lithium battery precision cutting mold business, forming a dual-core driving model of "road transportation + intelligent manufacturing" [47]. - The company aims to solidify its core business in road transportation by leveraging the "Belt and Road" initiative and enhancing urban-rural transportation integration [69]. Operational Performance - The company achieved a total operating revenue of CNY 51.43 million, a decrease of 48.05% compared to the previous year [48]. - The passenger volume was 241,200, down 72.87% year-on-year, while freight volume increased by 62.30% to 990 tons [48]. - The company completed a transportation turnover of 10.23 million ton-kilometers, a decrease of 72.37% year-on-year [48]. - The company implemented cost control measures, resulting in a 41.54% reduction in operating costs to CNY 44.65 million [50]. - The company reduced management expenses by 10.48% to CNY 44.03 million, optimizing its organizational structure and personnel positions [59]. Risks and Challenges - The company faces competition risks from railway transport, which may divert passengers from road transport, necessitating improvements in service quality and operational flexibility [77]. - Safety accident risks remain a significant concern, with the company implementing measures to mitigate potential incidents through internal controls and GPS monitoring [78]. - The company acknowledges potential performance decline risks due to relocation challenges and market adaptation periods [78]. - Due to the impact of COVID-19, there has been a decline in passenger flow and a reduction in bus service frequency, which may adversely affect the company's operational performance [79]. - The company is at risk of being delisted due to negative net profit and revenue below 100 million RMB, which may lead to trading suspension if financial metrics do not improve [79]. Governance and Compliance - The company has received a standard unqualified audit report from Lixin Accounting Firm [6]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management [6]. - The company has not violated decision-making procedures for external guarantees [5]. - The company has committed to providing accurate and complete information during transactions, ensuring no false statements or omissions were made [91]. - The company has established a long-term commitment to maintain transparency and compliance with relevant laws and regulations [92]. Social Responsibility - The company actively participates in social responsibility initiatives, including poverty alleviation efforts and educational support [130]. - The company provided a total of RMB 173,626.91 for various social responsibility initiatives, including low-income subsidies and disaster relief [134]. - A total of RMB 72,000 was distributed to 24 employees affected by the COVID-19 pandemic, providing each with RMB 300 [135]. - The company engaged 26 party members in a "consumption poverty alleviation" initiative, purchasing 30 units of local agricultural products for a total of RMB 6,000 [135]. - The company plans to continue its poverty alleviation efforts in 2021, aligning with the government's overall poverty alleviation implementation opinions [135]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 17,187, down from 20,024 at the end of the previous month [146]. - The company had a total of 160,008,000 ordinary shares outstanding, with 81,600,000 shares being restricted and released for trading on January 6, 2020 [141]. - The largest shareholder, Delixi Xinjiang Investment Group Co., Ltd., holds 81,600,000 shares, representing 51.00% of the total shares [148]. - Xinjiang Uygur Autonomous Region State-owned Assets Investment and Operation Co., Ltd. holds 19,764,050 shares, accounting for 12.35% of the total shares [154]. - The company does not have any strategic investors or general legal entities among the top 10 shareholders [149]. Employee and Management - The total pre-tax compensation for executives amounted to 2.3582 million yuan [159]. - The total number of employees in the parent company is 476, while the total number of employees in major subsidiaries is 75, resulting in a combined total of 551 employees [168]. - The company has established a scientific and efficient salary assessment system that links employee income with responsibilities, risks, and company performance [169]. - The company has a training system that emphasizes safety production, technical management, and compliance operations to ensure long-term development [170]. - The company has appointed a new independent director and a new deputy general manager during the reporting period [166]. Financial Assets and Investments - The company reported a total of 33,000 million yuan in financial assets, accounting for 41.05% of total assets as of December 31, 2020 [183]. - Investment income from financial products amounted to 11.52 million yuan for the year [183]. - Government subsidies recognized in other income totaled 19.77 million yuan, which significantly impacts the company's operating results [184]. - The company has entrusted wealth management with a total amount of RMB 58 million from the initial public offering and RMB 85.033 million from its own funds [113]. - The wealth management products have generated an annualized return of 3.80% and 3.70% respectively, with actual returns of RMB 28.18 million and RMB 48.66 million [116].