LEHUI International(SH:603076)2020-04-27 16:00Financial Performance - The net profit attributable to the parent company for 2019 was -24,813,581.09 RMB, indicating a loss for the year[5]. - The company's operating revenue for 2019 was approximately ¥753.77 million, a decrease of 22.36% compared to ¥970.88 million in 2018[20]. - The net profit attributable to shareholders was a loss of ¥24.81 million, marking a decline of 163.66% from a profit of ¥38.98 million in 2018[20]. - The basic earnings per share for 2019 was -¥0.33, down 163.46% from ¥0.52 in 2018[21]. - The weighted average return on equity decreased by 8.23 percentage points to -3.22% in 2019, compared to 5.01% in 2018[21]. - The company reported a significant asset impairment loss related to its German subsidiary Finnah, contributing to the decline in net profit[22]. - The company experienced a decrease in revenue primarily due to reduced project income from beer brewing equipment[22]. - The company's revenue for the reporting period was CNY 753.77 million, a decrease of 22.36% year-on-year[40]. Cash Flow and Assets - The net cash flow from operating activities reached ¥171.58 million, an increase of 231,938.48% from ¥73,947.84 in 2018[22]. - The company's total assets at the end of 2019 were approximately ¥1.97 billion, a slight decrease of 0.08% from ¥1.97 billion at the end of 2018[20]. - The net assets attributable to shareholders decreased by 4.41% to approximately ¥754.53 million at the end of 2019, down from ¥789.36 million at the end of 2018[20]. - The total assets of the company at the end of the reporting period were CNY 1.97 billion, with total liabilities of CNY 1.21 billion, resulting in equity attributable to shareholders of CNY 754.53 million[43]. Investment and Expansion - The company has invested in new projects, including the Ningbo Craft Valley and Shanghai Songjiang urban craft experience factory, which are currently in the investment phase and have not yet generated sales[32]. - The company reported a significant increase in prepayments, amounting to CNY 100.81 million, which is a 43.19% increase compared to the previous period, indicating strong order backlog[34]. - The company successfully expanded its overseas market, with revenue from African subsidiaries increasing by 187.26% to CNY 23.24 million in 2019[41]. - The company made a total equity investment of ¥139.84 million during the reporting period, including ¥114.84 million to Ningbo Craft Valley and ¥25 million to Nanjing Baolilong[69]. Risk Management - The company has outlined various risks in the report, which can be found in the section discussing operational conditions[7]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements[6]. - The company faces risks from the COVID-19 pandemic, which has impacted production and export operations, with potential for further escalation if the pandemic continues globally[83]. Governance and Compliance - The company has received a standard unqualified audit report from Zhonghua Accounting Firm[4]. - The company has established a performance incentive mechanism and plans to optimize its talent structure to enhance overall efficiency[82]. - The company has maintained complete operational independence from its controlling shareholder, Ningbo Lehui Investment Holding Co., Ltd., with no non-operational fund occupation[175]. - The company is committed to maintaining transparency and compliance with regulatory requirements, as evidenced by the detailed reporting of executive shareholdings and positions[159]. Shareholder Returns - The company will not distribute profits or increase capital reserves due to the negative net profit for 2019[5]. - The company plans to distribute at least 15% of the annual distributable profit in cash if conditions are met, with a cumulative cash distribution of at least 30% over the last three years[90]. - The company will not distribute dividends if it does not meet the conditions of having distributable profits after covering losses and legal reserves[90]. - The company has established a three-year shareholder return plan for 2020-2022, approved by the board and shareholders[93]. Environmental Responsibility - The company is committed to fulfilling its social responsibilities, including environmental protection and community engagement[126]. - The company achieved a significant environmental milestone by obtaining the "Zhejiang Province Corporate Social Responsibility Benchmark Enterprise (Environmental Protection)" honor in June 2019[130]. - The company has implemented an industrial waste and domestic waste classification system starting January 2019, enhancing its waste management practices[130]. - The company has a wastewater treatment station and various air pollution control devices, ensuring compliance with environmental standards[129]. Employee Management - The total number of employees in the parent company is 531, while the main subsidiaries have 509 employees, resulting in a combined total of 1,040 employees[167]. - The company has established a salary system that links employee income to the value they create, including basic salary, seniority salary, performance salary, and profit-sharing incentives[168]. - The training program includes personalized plans for different departments, focusing on new employee orientation, management skills for supervisors, and specialized technical training[169][170].