Guirenniao(SH:603555)2020-04-29 16:00Financial Performance - In 2019, the company reported a net profit of -1,018,558,230.28 CNY, with a net profit attributable to shareholders of -1,018,107,330.46 CNY[6]. - The total revenue for 2019 was 1,581,478,301.94 CNY, representing a decrease of 43.77% compared to 2,812,460,499.91 CNY in 2018[21]. - The company's total assets decreased by 17.31% to 3,930,336,891.53 CNY from 4,753,026,357.48 CNY in 2018[22]. - The net assets attributable to shareholders fell by 68.02% to 489,243,631.52 CNY from 1,529,693,373.89 CNY in 2018[22]. - The net cash flow from operating activities was -535,998,195.75 CNY, a decline of 195.80% compared to 559,482,271.76 CNY in 2018[21]. - The company's basic earnings per share for 2019 was -1.62 CNY, a decrease from -1.09 CNY in 2018[23]. - The net profit attributable to shareholders for Q4 2019 was -852.03 million CNY, a significant decline compared to previous quarters[25]. - The company reported asset impairment and credit impairment losses of 828.90 million CNY during the reporting period, leading to substantial losses for shareholders[23]. - The weighted average return on equity for 2019 was -89.04%, a decrease of 54.44 percentage points from 2018[23]. - The company reported a significant decline in cash and cash equivalents, down 82.88% to ¥25,265,392.16 due to reduced main business collections[81]. - The company reported a net loss of 1,018.56 million RMB for 2019, marking two consecutive years of losses[128]. Operational Challenges - The company does not plan to distribute profits or increase capital reserves for the year[6]. - The company has received a qualified audit opinion from Da Xin Accounting Firm regarding its 2019 financial statements[5]. - The management has indicated that future operational outlooks are based on current conditions and do not constitute performance commitments[8]. - The company has acknowledged the existence of non-operating fund occupation by controlling shareholders and related parties[8]. - The company is facing significant risks as detailed in the report, which should be reviewed by investors[8]. - The company faced significant liquidity challenges, leading to delays in executing various operational strategies and negatively impacting supply chain and brand marketing[47]. - The company is actively negotiating debt restructuring, with 5.96% of "14 Guirenniao" bondholders and 34% of PPN bondholders having signed debt settlement agreements[56]. - The company is facing significant uncertainties regarding its ability to continue as a going concern due to its financial situation[128]. - The company has been facing severe liquidity issues, limiting its financing channels and affecting its debt repayment capabilities[198]. Market Position and Strategy - The company operates under multiple brands, including "Guirenniao," "AND1," and "PRINCE," with AND1 having opened 12 direct stores and 1 franchise store[31]. - The company has established flagship stores for PRINCE on Tmall and JD.com but has not yet launched physical stores for this brand[31]. - The company is focusing on expanding its presence in lower-tier cities, where domestic brands have significant growth potential due to price sensitivity[37]. - The company anticipates higher sales in the second half of the year, driven by the introduction of higher-priced autumn and winter products[37]. - The company plans to enhance its core brand operations and expand its multi-brand strategy, including investments in AND1 and PRINCE brands to enter the mid-to-high-end market[107]. - The company aims to improve cash flow by intensifying collection efforts on overdue accounts and optimizing its operational model to reduce costs[108]. - The company will focus on expanding online sales channels, including Tmall and Douyin, to boost inventory turnover and sales conversion rates[108]. - The company is actively seeking external funding and investors to resolve liquidity issues and improve asset quality[109]. Inventory and Supply Chain Management - The company has established stable relationships with multiple suppliers for shoe materials, ensuring quality and delivery timelines through rigorous supplier management[33]. - The company outsources the production of sports apparel and accessories, maintaining strict control over quality, production progress, and costs through a comprehensive supplier management system[33]. - The company's inventory balance at the end of the reporting period was 455.25 million RMB, with risks of high inventory levels due to intense competition in the sportswear market[113]. - The company's inventory turnover rate for the period was 1.73, with inventory turnover days increasing to 207.72 days from 94.89 days in the previous year[94]. - The company recognized a credit impairment loss of 407 million yuan on accounts receivable at the end of the reporting period[50]. - Inventory increased due to the inability to timely sell goods from original distributors, resulting in an inventory write-down loss of 150 million yuan[50]. Corporate Governance and Compliance - The company has established a comprehensive governance structure that complies with relevant laws and regulations, ensuring effective operation and risk control[178]. - The independent directors actively participated in board meetings and provided professional opinions on significant matters, contributing to sound decision-making[179]. - The company has committed to improving compliance with legal and regulatory requirements following the disciplinary action[135]. - The company has a dedicated investor relations team to manage communications and maintain good relationships with stakeholders[180]. - The company has implemented a salary policy that includes performance-based adjustments and incentives to retain talent and reduce turnover[174]. - The company has established various committees including a strategic development committee and an audit committee to ensure proper governance and oversight[180]. Shareholder Information - The number of ordinary shareholders increased from 23,703 to 26,770 during the reporting period[153]. - Guirenniao Group (Hong Kong) Limited holds 479,115,000 shares, accounting for 76.22% of total shares, with 474,420,000 shares pledged[155]. - The actual controller of Guirenniao Group and Guirenniao Investment is the Lin family, indicating a close relationship among major shareholders[161]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest shareholder having over 76%[155]. - The company has no other significant shareholders holding over 10% of shares[162]. - The company does not have any preferred shares outstanding[163]. Debt and Financial Obligations - The company faced overdue debts totaling 1,147 million RMB, including 500 million RMB from a non-public bond and 647 million RMB from a corporate bond, leading to asset freezes[115]. - The company issued "14 Guiren Bird" bonds with a total amount of RMB 800 million in 2014, with a current balance of RMB 646.938 million and an interest rate of 7%[192]. - The company failed to pay the principal and interest of the "14 Guiren Bird" bonds on time since December 3, 2019, leading to a suspension of trading on the Shanghai Stock Exchange[192]. - The company's credit rating was downgraded from AA to A on June 21, 2019, and further downgraded to BBB on November 15, 2019, with a negative outlook[195][196]. - The company plans to address debt risks through asset disposals and stabilizing operations, including selling subsidiary equity and other assets[197]. Employee and Management Information - The company employed a total of 4,057 staff, with 3,435 in the parent company and 622 in major subsidiaries[173]. - The total remuneration for directors, supervisors, and senior management amounted to 8.4476 million yuan in 2019[170]. - The company has a training plan aimed at enhancing employee skills and promoting internal talent development through various training programs[175].